Value of production for the quarter was up by 79% to Rs 215.72 crore and the income from operation was up by 65% to Rs 213.62 crore. Strong volume growth on lower base especially in core crane products as well as recent price hike across the board to offset material cost spike have contributed to strong surge in revenue for the quarter.

In Q1FY11, the corresponding previous quarter the company had lost about 13-14 operating days on account of Oracle implementation. And on account of this the company had lost sales of at least about Rs 15 crore in the corresponding previous period. Thus the current strong growth was facilitated by low base effect as well along with higher volumes across the board in all products of the company.

All three business of the company has registered strong growth for the quarter with cranes registering a growth of 67% to Rs 154.81 crore. While the revenue of MH/Construction equipment doubled to Rs 26.53 crore, that of tractors was up by 40% to Rs 32.28 crore.

Contraction in operating margin is largely on account of rise in operating cost especially material cost and manufacturing expenses. While material cost was up by 260 bps to 76.9% that of manufacturing expenses was up by 170 bps to 6.5%. The staff and OE was down by 77 bps (to 4.6%) and 100 bps (to 4.4%) respectively. In addition the change in revenue mix is also one of the reasons for contraction in operating margin. While the core crane segment contribution stay flat at 72%, the contribution of high margin tractors came down to 15% (from 18% in Q1FY11)and increase in contribution of relatively low margin MH/construction equipment to 12% (from 10% in Q1FY11).

On operating/PBIT level the segment profit of crane was up by 26% to Rs 13.12 crore and that of tractor was up by 27% to Rs 2.45 crore. The segment profit of MH/construction equipment was Rs 1.25 crore compared to a loss of Rs 23 lakh in the corresponding previous period.

While the segment margin of cranes and tractor came down by 270 bps (to 8.5%) and 80 bps (to 7.6%) respectively that of MH/construction equipment was 4.7% compared to -1.8%.

Other income was up by 326% to Rs 1.62 crore. The interest cost was up by 104% to Rs 1.01 crore and depreciation was up 56% to Rs 2.07 crore. Thus the PBT was up 40% to Rs 15.09 crore.

The taxation (including deferred tax) was up by 38% to Rs 3.93 crore and the tax incidence was lower at 26.1% compared to 26.3% in the corresponding previous period. Thus spurred the PAT was up 40% to Rs 11.16 crore.

The stock hovers around Rs 47.30.