• Sales was down by 30% to Rs 175.75 crore with order execution and dispatch still hit by lingering impact of COVID pandemic. But the value of production was down by 18% to Rs 190.54 crore. Sales was 0.9 times of VoP compared to 1.08 times in corresponding previous period. Sales for the quarter stand lower than VoP signals inventory built up which will get liquidated in coming quarters.

• OPM contracted by 270 bps to 9.4% and that is largely due to higher material cost. The material cost as % of sales net of stocks was higher by 600 bps to 80.1%. The staff cost was down by 80 bps to 4.4%. And the OE cost was up by 80 bps to 6.9%.

• Other income net of MTM adjustment for fair value of investment) was an income of Rs 26.38 crore, a jump of 110%. Other income is net of difference between the cost and market value of investment (MTM loss/profit of investment) as per Ind AS 109. Other income is net of MTM gain of Rs 13.63 crore, a jump of 160%. Other income excluding MTM loss/gain was Rs 12.75 crore (a growth of 74% from Rs 7.33 crore in the corresponding previous period).

Nine month Performance

Sale for the period was down by 36% to Rs 408.33 crore. With OPM contract by 120 bps to 10.1%, the operating profit was down by 43% to Rs 41.24 crore. After accounting for higher other income (up by 120% to Rs 64.41 crore) and higher depreciation (up by 4% to Rs 6.64 crore) the PBT was up by 5% to Rs 99.01 crore. Taxation was up by 6% to Rs 17.86 crore and thus the PAT was up by 4% to Rs 81.15 crore.

Other developments

The Compauy has filed au application with RBI and Stock Exchanges BSE & NSE for obtaining 'No Objection Certificate' to proceed further for the Scheme of Amalgamation (the "Scheme") between Voltamp Transformers Limited ("VTL" or "Company") and Kunjal Investments Private Limited ("KlPL") under Sections 230 to 232 read with section 66 and other applicable provisions of the Companies Act, 2013 ("2013 Act"). The Company has received NOC from BSE Ltd, National Stock Exchange of India Ltd and Reserve Bank of India. Draft scheme was also forwarded to SEBI for observation and Company is awaiting for observation letter from SEBI to proceed further in the matter.