Quarter ended Dec’07

Net sales were reported at Rs 23.13 crore, an increase of 18% over the corresponding previous quarter. OPM expanded by 440 bps to 22.3% and this resulted in operating profit posting a growth of 47% at Rs 5.16 crore. Employee cost and other expenditure declined by 110 bps to 12.7% and 230 bps to 13.4% of sales, net of stock adjustment, respectively. Raw-material cost declined as well by 90 bps to 51.7% of sales, net of stock adjustment.

Other income increased by 43% to Rs 0.43 crore. Interest cost increased to 0.12 crore as compared to Rs 0.07 crore in the corresponding previous quarter. And an increase of 8% in depreciation to Rs 0.78 crore caused the PBT to grow by 56% to Rs 4.69 crore. After providing for a taxation of Rs 1.59 crore (up by 49%), the PAT registered a strong growth of 60% at Rs 3.10 crore.

Nine-month ended Dec’07

Net sales recorded a growth of 19% to Rs 66.18 crore. An expansion of 330 bps in OPM to 21.1% led the operating profit to report growth of 41%, on a y-o-y basis, to Rs 13.94 crore. OI increased by 60% to Rs 1.17 crore. As interest cost was up by 57% and depreciation also was high by 16%, PBT grew by 48% only to Rs 12.55 crore. After considering for a taxation of Rs 4.31 crore, the PAT concluded at Rs 8.24 crore, registering a growth of 50%.

Segment Result:

(a) Mineral processing and material handling equipment:

For the quarter ended Dec’ 07, this division’s sales increased by 8% to Rs 17.25 crore and the segment PBIT increased by 86% to Rs 5.75 crore. The segment accounted for 74% of Company’s sales and 86% of the total PBIT.

For the nine-month period ended Dec’07, sales of this division increased 17% to Rs 52.26 crore and the PBIT rose by 27% to Rs 17.67 crore. This division accounted for 78% of the total sales and 94% of total PBIT for the period under review.

(b) Geared Motor & Gear Box division:

For the quarter-ended Dec’07, this division witnessed a 63% rise in the net sales to Rs 5.97 crore contributing 26% of the total sales and the segment PBIT recorded a whopping growth of 336% at Rs 0.96 crore. With this, the segment contributed 14% of the Company’s PBIT.

For the nine-month period ended Dec’07, net sales increased by 28% to Rs 14.39 crore contributing 22% of the sales whereas the segment PBIT posted a degrowth of 3% at Rs 1.18 crore. The segment contributed 6% of the company’s PBIT for the nine-month period ended Dec’07.

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