• Downside in revenue was largely driven by lower EPC as well as machinery & equipment manufacturing (M&E). While the revenue of M&Ewas down by 24% to Rs 308.31 crore (or 22% of sales) that of EPC revenue was down by 9% to Rs 873.50 crore (or 62% of sales). The sugar was up by 86% to Rs 218.73 crore and others was up at Rs 7.87 crore compared to nil in the corresponding previous period.
• EBIT for the period jumped up by 87% to Rs 120.53 crore with all segments report strong upside in profits. Despite early twenty fall in segment sales the M&E business reports sharp 60% jump in segment profit to Rs 44.61 crore driven by sharp jump in segment margin to the extent of 760 bps to 14.5%. Similarly despite lower sales (in high single digit) the segment profit of EPC was up by 34% to Rs 45.83 crore as its segment margin up by 170 bps to 5.2%. The segment profit of sugar jumped up by 382% to Rs 30.40 crore driven by both higher sales as well as higher margin. Segment margin of sugar was up by 850 bps to 13.9%.

Half yearly performance

Consolidated sales was down by 8% to Rs 2415.41 crore but with OPM expand by 390 bps to 9.6%, the OP was up by 55% to Rs 232.69 crore. The PBT was up by 62% to Rs 163.54 crore hit by lower OI, higher interest and higher depreciation. The share of profit from associate was just Rs 0.15 crore compared to nil incorresponding previous period.The EO was nil for the period as well as corresponding previous period. With taxation stand higher by 60% to Rs 44.02 crore, the PAT was up by 63% to Rs 119.67 crore. After accounting for higherMI, the PAT (after MI) was eventually higher by 61% to Rs 118.18 crore.

Other developments

The Company has earlier informed that in terms of settlement of arbitration arrived at with M/s. Cavite Biofuels Producers Inc. (CBPI), the Company had acquired CBPI with its related assets and liabilities and group companies through its wholly owned subsidiary Isgec Investments Pte Ltd. on October 3, 2019. As permitted under Ind AS 103 "Business Combination", upto the quarter ended 30th June 2020, the company had reported provisional amounts of items for which fair valuation was required to be done. During the quarter ended 30th September, 2020, the Company has completed the initial accounting at fair value at the acquisition date and thus the comparative information for the year ended 31st March, 2020 and quarter ended 30th June, 2020 has been revised.