For Quarter ended June 2011

The net sales has increased by 4% to Rs 164.87 crore. The figure for quarter ended June 2010 includes the numbers of the Rath brands sales also, which company sold 2 quarters back. Excluding Rath figures, the net sales has grown by 27%.

OPM has increased by 90 basis points to 4.8% due to fall in ASP cost by 340 basis points to 4.27% and purchase of traded goods by 190 basis points to 24.63% of adjusted net sales. There was rise in raw material cost by 470 basis points to 49.18% of adjusted net sales. As a result of rise in margin, the operating profit increased by 29% to Rs 7.95 crore.

Other income declined by 52% to Rs 0.63 crore. The interest cost stood at Rs 0.04 crore. Depreciation has increased by 18% to Rs 127 crore. The PBT increased by 14% to Rs 7.27 crore.

Total tax outgo increased by 13% to Rs 2.55 crore. The company has reported a net profit of Rs 4.72 crore, a rise of 15% on back of rise in margin due to cut in ASP spend.

For FY11

The net sales has increased by 10% to Rs 720.71 crore. OPM has declined by 130 basis points to 4.1% due to rise in raw material cost by 130 basis points to 48.15% and purchase of traded goods by 110 basis points to 24.8% of adjusted net sales. Due to pressure on margin, there was just a small rise in operating profit by 2% to Rs 29.45 crore.

Other income declined by 33% to Rs 4.93 crore. The interest cost was up by 63% to Rs 0.13 crore. Depreciation has increased by 51% to Rs 4.6 crore. The profit before tax before EO declined by 10% to Rs 29.65 crore.

EO income stood at Rs 17.45 crore which is profit from sale of Rath brand. As a result, PBT after EO stood at Rs 47.10 crore, up by 42%. Total tax outgo has increased by 92% to Rs 15.32 crore. The company has reported a net profit of Rs 31.78 crore, a rise of 26% on back of EO income

Valuation

The scrip is trading around Rs 400 on BSE.

The promoter holds 48.11% stake in the company.