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The net sales for Q1 FY11 has increased by just 3% to Rs 111.05 crore due to 64% decline in steel business sales. The OPM has increased by 370 basis points to 15.1% due to fall in raw material cost. The net profit has increased by 192% to Rs 26.69 crore due to rise in margin, other income and fall in tax rate.
Company's Performance
Standalone
Quarter ended June 2010
The net sales has increased by just 3% to Rs 111.05 crore due to 64% decline in steel business sales. The OPM has increased by 370 basis points to 15.1% due to fall in raw material cost by 580 basis points to 65% of adjusted net sales. As a result, the operating profit increased by 36% to Rs 16.8 crore.
Other income stood at Rs 19.42 crore, a growth of 280%. Interest paid has decreased by 10% to Rs 0.62 crore. Depreciation has increased by 13% to Rs 4.30 crore. The profit before tax increased by 142% to Rs 31.3 crore.
Total tax outgo stood at Rs 4.61 crore. Tax rate has fallen from 29.4% to 14.7% for the quarter As a result, the net profit increased by 192% to Rs 26.69 crore due to rise in margin, other income and fall in tax rate.
For FY10
The income from operations reported 8% growth to Rs 417.01 crore. OPM declined by 135 basis points to 14.2% due to rise in raw materials by 1629 basis points at 66%, employee costs by 110 basis points to 7% and other expenses increased by 100 basis points at 13% of adjusted net sales. As a result, the resultant operating profits has declined by 1% at Rs 59.10 crore.
Other income increased and stood at Rs 27.26 crore. Interest cost declined 45% at Rs 2.54 crore while depreciation charge increased by 6% at Rs 16.28 crore. The resultant PBT inclined by 90% at Rs 79.16 crore. Tax outgo has increased by 34% to Rs 18.09 crore. The PAT was up by 116% at Rs 61.07 crore due to other income.
Standalone Segmented Result for Q1 FY11
Steel
The business contributed 12% to the revenue. Net sales declined by 64% to Rs 13.9 crore. PBIT margin has declined by 0.09 basis points to 7.19%. The PBIT has decreased by 65% to Rs 1 crore. The segment accounted for 7% of total PBIT.
Plastic Processing
The business contributed 71% to the revenue. Net sales inclined by 36% to Rs 82.89 crore. Profit before interest and tax (PBIT) margins increased by 49 basis points to 13.57%. The PBIT has increased by 41% to Rs 11.25 crore. The segment accounted for 80% of total PBIT.
Spinning
The business contributed 17% to the revenue. Net sales inclined by 65% to Rs 19.72 crore. Profit before interest and tax (PBIT) margins turned positive to 8.77%. As such, PBIT stood at Rs 1.73 crore. The segment accounted for 12% of total PBIT
Valuation
The scrip was trading around Rs 283 on 11th August 2010 at BSE.
The promoters holding in the company stood at 72.99%.
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