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Results
03-May-22
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Analysis
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Elecon Engineering Company
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Net up 46% thanks to lower interest, dep and tax
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Consolidated net sales (including other operating income) of Elecon
Engineering Company for the quarter ended Mar 2022 has declined 6% to Rs 329.74
crore. Operating profit margin has declined from 21% to 20.8%,
leading to 7% decline in operating profit to Rs 68.55 crore. Raw
material cost as a % of total sales (net of stock adjustments) increased from
44.25% to 48.80%. Employee cost decreased from 10.53% to 10.43%.
Other expenses fell from 23.01% to 20.04%. Other direct
service cost fell from 6.36% to 6.04%.
Other income rose 293.88% to Rs 3.86
crore. PBIDT fell 2.82% to Rs 72.41 crore. Provision for
interest fell 49.31% to Rs 7.32 crore. PBDT rose 8.36% to Rs 65.08
crore. Provision for depreciation fell 8.02% to Rs 11.92
crore. Profit before tax grew 12.87% to Rs 53.16 crore. Provision
for tax was expense of Rs 6.26 crore, compared to Rs 15.21 crore. PAT was up 47% to Rs 46.91 crore. PPT was up
310% to Rs 1.23 crore. Share of profit/loss was 1,475% higher at Rs 0.63 crore.Minority
interest was nil in both the periods. Net profit attributable to
owners of the company increased 46% to Rs 46.30 crore.
Sales of Material Handling Equipment segment has gone down 33.66% to Rs
36.68 crore (accounting for 11.12% of total sales). Sales of Transmission
Equipment segment has gone down 0.61% to Rs 293.06 crore (accounting for 88.88%
of total sales).
Profit before interest, tax and other unallocable items (PBIT) has
slumped 2.94% to Rs 61.68 crore. PBIT of Material Handling Equipment
reported profit of Rs 0.75 crore compared to loss of Rs 15.08
crore. PBIT of Transmission Equipment segment fell 22.51% to Rs
60.93 crore (accounting for 98.78% of total PBIT).
PBIT margin of Material Handling Equipment segment rose from negative
27.28% to 2.05%. PBIT margin of Transmission Equipment segment fell
from 26.67% to 20.79%. Overall PBIT margin rose from 18.15% to
18.71%.
During the quarter, overseas business under
Benzlers and Radicon registered revenue of Rs. 86.8 Crores with EBITDA of Rs.
18.2 Crores.
Yearly performance
Consolidated net sales (including other operating income) of Elecon Engineering
Company has increased 15.20% to Rs 1203.55 crore. Sales of Material
Handling Equipment segment has gone down 2.77% to Rs 135.38 crore (accounting
for 11.25% of total sales). Sales of Transmission Equipment segment
has gone up 18.00% to Rs 1,068.17 crore (accounting for 88.75% of total
sales).
Profit before interest, tax and other
unallocable items (PBIT) has jumped 44.54% to Rs 210.42 crore. PBIT
of Material Handling Equipment segment rose 98.74% to Rs -0.63 crore (accounting
for -0.30% of total PBIT). PBIT of Transmission Equipment segment
rose 7.67% to Rs 211.05 crore (accounting for 100.30% of total
PBIT).
PBIT margin of Material Handling
Equipment segment rose from negative 36.22% to negative 0.47%. PBIT
margin of Transmission Equipment segment fell from 21.65% to
19.76%. Overall PBIT margin rose from 13.94% to 17.48%.
Operating profit margin has jumped from 17.77% to 20.48%, leading to
32.77% rise in operating profit to Rs 246.44 crore. Raw material
cost as a % of total sales (net of stock adjustments) increased from 43.98% to
49.02%. Employee cost decreased from 11.81% to 10.34%.
Other expenses fell from 25.62% to 20.75%. Other direct
service cost fell from 7.69% to 6.55%. Other income rose 49.39% to
Rs 8.56 crore. PBIDT rose 33.27% to Rs 255
crore. Provision for interest fell 37.57% to Rs 37.34
crore. PBDT rose 65.48% to Rs 217.66 crore. Provision for
depreciation fell 6.77% to Rs 48.58 crore. Profit before tax grew
112.89% to Rs 169.08 crore. Provision for tax was expense of
Rs 30.03 crore, compared to Rs 23.66 crore. Effective tax rate was
17.61% compared to 29.11%. Share of profit/loss was 22.99% lower at Rs 1.44
crore. Minority interest was nil in both the periods. Net
profit attributable to owners of the company increased 143.78% to Rs 140.49
crore.
Management Comment
Commenting on the Company’s performance,
Prayasvin Patel, CMD said “We are pleased to
announce robust set of performance amid improving external environment and
continual improvements in internal efficiency. The Gears segment continues to
perform well on the back of strong demand environment leading to healthy order
inflow from our end user industries which bodes well for the gears division. In
the MHE division, performance is substantially improved post change in the
business strategy. The Company has made a good progress on recovery and also
closure of few legacy projects. As such we expect significant turnaround in the
MHE division going forward due to our strategic business approach and focusing
on profitability and liquidity.”
Other developments
Equity capital stood at Rs 22.44 crore
as of 31 March 2022 to Rs 22.44 crore as of 31 March 2021. Per share
face Value remained same at Rs 2.00.
Promoters’ stake was 59.26% as of 31
March 2022 ,compared to 59.20% as of 31 March 2021 . Promoters pledged
stake was 11.28% as of 31 March 2022 ,compared to 23.49% as of 31 March 2021
.
Consolidated Loan funds declined from
Rs 329.41 crore as of 31 March 2021 to Rs 151.20 crore as of 31 March
2022. Inventories rose to Rs 261.67 crore as of 31 March 2022 from
Rs 250.22 crore as of 31 March 2021. Sundry debtors were lower at Rs
415.07 crore as of 31 March 2022 compared to Rs 507.74 crore as of 31 March
2021. Cash and bank balance declined from Rs 141.48 crore as of 31 March
2021 to Rs 112.13 crore as of 31 March 2022. Investments rose to Rs
54.05 crore as of 31 March 2022 from Rs 53.44 crore as of 31 March 2021
.
Fixed assets declined from Rs 633.13
crore as of 31 March 2021 to Rs 618.72 crore as of 31 March
2022. Intangible assets declined from Rs 125.10 crore to Rs 120.97
crore.
Cash flow from operating activities increased to Rs 250.04 crore for
year ended March 2022 from Rs 248.03 crore for year ended March
2021. Cash flow used in acquiring fixed assets during the year ended
March 2022 stood at Rs 48.56 crore, compared to Rs 3.97 crore during the year
ended March 2021.
Debt in overseas entity is paid off
during the year.
The Board of Directors has recommended Final Dividend of Rs.
1.00/- (i.e. 50%) and additionally Special Dividend of Rs. 0.40/- (i.e. 20%),
to mark 70 years of Elecon Brand, which
aggregates to Rs. 1.40/- (I.e. 70%) per Equity Share of Rs. 2/- each.
Elecon
Engineering: Consolidated Results
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2203
(3)
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2103
(3)
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Var.(%)
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2203
(12)
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2103
(12)
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Var.
(%)
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Sales
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329.74
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350.13
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-6
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1203.55
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1044.71
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15
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OPM (%)
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20.8
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21.0
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20.5
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17.8
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OP
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68.55
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73.51
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-7
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246.44
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185.61
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33
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Other
inc.
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3.86
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0.98
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293
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8.56
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5.73
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49
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PBIDT
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72.41
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74.50
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-3
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255.00
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191.34
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33
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Interest
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7.32
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14.44
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-49
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37.34
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59.81
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-38
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PBDT
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65.09
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60.05
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8
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217.66
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131.53
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65
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Dep.
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11.92
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12.96
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-8
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48.58
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52.11
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-7
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PBT before EO
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53.17
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47.09
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13
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169.08
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79.42
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113
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EO Exp
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0.00
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0.00
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0.00
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0.00
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PBT
after EO
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53.17
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47.09
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13
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169.08
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79.42
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113
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Taxation
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6.26
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15.21
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-59
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28.80
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23.36
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PL
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PAT
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46.91
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31.88
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47
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140.28
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56.06
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150
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PPT
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1.23
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0.30
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310
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1.23
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0.30
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PAT
after PPT
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45.68
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31.58
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45
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139.05
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55.76
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149
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Share
of Profit/(Loss) from Associates
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0.63
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0.04
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999
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1.44
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1.87
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-23
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Minority
Interest
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0.00
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0.00
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0.00
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0.00
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Net
profit
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46.30
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31.63
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46
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140.49
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57.63
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144
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EPS
(Rs)*
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#
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#
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12.6
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5.2
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* EPS
is on current equity of Rs 22.44 crore, Face value of Rs 2
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# EPS
is not annualised due to seasonality of business
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Figures
in Rs crore
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Source:
Capitaline Corporate Database
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Elecon
Engineering: Consolidated Segment Results
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Particulars
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% to
total
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2203
(3)
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2103
(3)
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Var.
(%)
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% to
total
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2203
(12)
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2103
(12)
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Var.(%)
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Sales
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Material
Handling Equipment
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11
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36.68
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55.28
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-34
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11
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135.38
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139.25
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-3
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Transmission
Equipment
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89
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293.06
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294.85
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-1
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89
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1068.17
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905.46
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18
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Total
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100
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329.74
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350.13
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-6
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100
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1203.55
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1044.71
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15
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Less
Inter segment revenue
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####
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####
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Net
sales
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329.74
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350.13
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-6
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1203.55
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1044.71
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15
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PBIT
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Material
Handling Equipment
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1
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0.75
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-15.08
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LP
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0
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-0.63
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-50.43
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-99
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Transmission
Equipment
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99
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60.93
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78.63
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-23
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100
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211.05
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196.01
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8
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Total
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100
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61.68
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63.55
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-3
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100
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210.42
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145.58
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45
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Less:
Interest (net)
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7.32
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14.44
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-49
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37.34
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59.81
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-38
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Less:
Others Un-allocable Exp/Income (net)
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0.56
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1.98
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-72
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2.55
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4.48
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-43
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Add: EO
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PBT
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53.80
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47.13
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14
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170.53
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81.29
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110
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Note:
Figures in Rs crore
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Source:
Capitaline 2000
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