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Vesuvius India net sales fell 8% to Rs 205.57 crore in Q1CY20 compared to Q1CY20. The company operating margins decreased 250 bps to 12.4% leading to 23% decrease in operating profits to Rs 25.57 crore. Cost of material consumed as a percentage of net sales (net of stock adjustment) increased 40 bps to 37.8%, purchase of stock in trade was down 90 bps to 19.1%, employee benefit expenses was up 110 bps to 8.5% and other expenses increased 170 bps to 22.1%.
Other income decreased 7% to Rs 6.15 crore compared to Rs 6.64 crore. Interest cost was nil. Depreciation was up 4% to Rs 6.76 crore. PBT was down 25% to Rs 24.96 crore.
Effective rate of taxes was down 1000 bps to 25%. PAT reported was down 14% to Rs 18.65 crore.
Consequent to the nationwide lockdown announced on 24th March 2020, the operations of the company were disrupted. However, consequent to the partial relaxations in lockdown and due to the permissions received from the authorities, level of operations has improved. The company is expected to gradually ramp up its operations to full scale depending on the lifting of lockdown restrictions and increase in customer demand.
Performance for the year ended December 2019
For year ended December 2019, net sales fell 4% to Rs 887.04 crore. The company operating margins decreased 230 bps to 13.6%. As a result operating profits fell 18% to Rs 120.73 crore.
Other income rose 28% to Rs 29.23 crore. Interest cost nil. Depreciation fell 5% to Rs 26.5 crore. PBT was down 13% to Rs 123.41 crore.
Effective tax rate was down 400 bps to 31%. PAT reported was down 8% to Rs 85.55 crore.
The scrip is currently trading at Rs 883
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