Ador Welding the welding consumable and equipment major has registered 7% fall in standalone sales to Rs 139.78 crore. Lower sales together with 160 bps contraction in operating profit margin to 7.5% the operating profit was down by sharp 23% to Rs 10.50 crore. The PBT was down by 30% to Rs 7.16 crore hit further by lower other income and higher depreciation. The taxation was down by 86% to Rs 0.38 crore and thus the fall at PAT restricted at 9% to Rs 6.78 crore.
- Downside in revenue was largely due to fall in revenue of both consumables and equipment business. The segment revenue of consumables was down by 5% to Rs 106.83 crore (or 76% of sales) with prolonged slowdown in manufacturing activity especially the auto and engineering sector. Similarly the segment revenue of equipment was lower by 10% to Rs 33.89 crore (or 24% of sales).
- EBIT was down by 14% to Rs 12.22 crore dragged by lower profit of consumables. The segment profit of consumables was down by 35% to Rs 14.05 crore hit by lower sales as well as 600 bps fall in segment margin to 13.2%. On the other hand the segment loss of equipment business stood lower at Rs 1.83 crore of loss compared to a loss of Rs 7.40 crore in the corresponding previous period.
Consolidated sales was down by 7% to Rs 139.90 crore and with OPM contract by 160 bps to 7.6%, the fall at operating profit was restricted at 23% to Rs 10.64 crore. The PBT was down by 30% to Rs 7.26 crore hit further by lower other income and higher depreciation. Eventually gained by lower taxation (down 87% to Rs 0.38 crore) the PAT was down by 9% to Rs 6.88 crore.
Yearly performance
Standalone sales was up by 3% to Rs 525.74 crore and with OPM contract by 30 bps to 8.1%, the operating profit was down by 1% to Rs 42.39 crore. After accounting for lower OI, lower interest and higher depreciation, the PBT was down by 4% to Rs 33.26 crore. The PAT was eventually higher by 19% to Rs 28.27 crore after accounting for 54% fall in taxation to Rs 4.99 crore.
Consolidated sales was up by 3% to Rs 526.54 crore and with 40 bps contraction in OPM, the OP was down by 2% to Rs 42.97 crore. The PBT was down by 5% to Rs 33.72 crore hit further by lower OI and higher depreciation. After accounting for 55% fall in taxation to Rs 4.95 crore, the PAT was up by 17% to Rs 28.77 crore.
Other developments
The Board has not recommended any final dividend. The interim dividend of Rs 6.50 declared by the Board at its meeting held on Friday, 14" February, 2020 shall be considered as the final dividend for the FY 2019-20. Thus, the total dividend for the financial year 2019-20 remains at Rs 6.50 per equity share.
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