• Sale for the quarter was down by 3% to Rs 174.98 crore even while the value of production for the period was up by 2% to Rs 183.25 crore. Sales for the period was 95.5% of value of production and it was 100.5% of corresponding previous period. Sales lower than value of production reflects inventory buildup which will get liquidated in coming quarters.

• Operating profit margin expanded by 90 bps to 14.3% and that is largely due to lower material cost and staff cost. Material cost as proportion to sales net of stocks was down by 470 bps to 50.3%. The staff cost was down by 40% to Rs 10.4%. However the cost of traded goods was up by 360 bps to 12.3% and the OE was up by 130 bps to 13.4%. Thus despite lower sales, the OP was up by 3% to Rs 24.94 crore gained by 90 bps expansion in OPM.

• Other income was higher by 100% to Rs 3.80 crore and thus the growth at PBIDT was 10% to Rs 28.74 crore. The interest cost was up at RS 0.16 crore against nil in the corresponding previous period. The depreciation was up by 11% to Rs 2.98 crore. Thus hurt by higher interest and depreciation cost the growth at PBT was restricted at 9% to Rs 25.60 crore.

• Finally, net profit was higher by 10% to Rs 18.07 crore after providing for taxation, which was higher by 5% to Rs 7.53 crore.
• The Company has exercised the option permitted under Section I l 5BAA of the Income-tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Deferred Tax Liability (net) as at 31st March 2019 and the estimate of tax expenses for the year ending 31st March 2020 have been re-measured. The resultant impact has been recognized in the previous quarter ended 30^th September 2019.

Yearly performance

Standalone sales for the period was up by 4% to Rs 697.96 crore and with OPM expand by 220 bps to 13.9%, the operating profit was up by 23% to Rs 96.81 crore. The PBT was up by 15% to Rs 109.82 crore largely hit by lower OI, higher interest cost and higher depreciation. The EO was nil compared to an expense of Rs 0.68 crore in the corresponding previous period. Thus the PBT after EO was up by 16% to Rs 97.24 crore. With taxation lower by 3% to Rs 25.83 crore the PAT was up by 24% to Rs 71.41 crore.

Other developments

An interim dividend of Rs. 70 per equity share of Rs. 10/- each was declared by the company at the meeting of Board of directors held on 28th May 2020 for the financial year 2019-20. The Board of Directors of the company after careful consideration of the financial results for the FY2019-20 and taking into account the interim dividend already declared for this fiscal has not recommended any further final dividend for the financial year ended Mar 31, 2020.

The stock hovers around Rs 1371.75.