Performance for the quarter ended June 2013

The overall top-line rose 21% to Rs 489.19 crore as polymer segment, which contributed 80% of the total revenues, rose 13% to Rs 389.08 crore while composite product segment revenues rose 66% to Rs 100.11 crore contributing 20% of the total revenues

The company operating margins declined by 220 bps to 14.2% as there was increase in raw material cost by 210 bps to 66.7% and other expenses by 50 bps to 13.7% of adjusted net sales. As a result, the operating profits increased by just 5% to Rs 69.48 crore

Other income decreased by 93% to Rs 0.03 crore. Interest cost increased by 13% to Rs 22.81 crore. Depreciation rose 40% to Rs 21.01 crore due to capacity expansion. PBT declined by 18% to Rs 25.68 crore. Tax outgo declined by 17% to Rs 6 crore. The effective tax rate was up by 50 bps to 23.4%. After considering minority interest, the net profit has declined by 19% to Rs 19 crore due to decline in margin and rise in deprecation.

Performance for year ended March 2013

The overall top-line rose 18% to Rs 1797.41 crore. The company operating margins rose 30 bps to 16.2% As a result operating profits increased 20% to Rs 291.65 crore. Other income increased by 34% to Rs 5.26 crore. Interest cost increased by 29% to Rs 88.58 crore. Depreciation rose 21% to Rs 67.5 crore. PBT rose 15% to Rs 140.83 crore. Tax outgo inclined by 11% to Rs 34.1 crore. The effective tax rate was down by 80 bps to 24.2%. Considering minority interest, the net profit rose 15% to Rs 103.47 crore.

Segment Results

Polymer Products:

For Q1 FY14, the sales of polymer products division increased 13% to Rs 389.08 crore representing 80% of total revenues of the company. PBIT decreased 12% at Rs 39.39 crore which was 81% of total PBIT. PBIT margin declined by 290 bps to 10.1%.

For FY13, polymer products revenues rose 11% to Rs 1464 crore representing 81% of total revenues while PBIT rose 15% to Rs 191.79 crore representing 86% of total PBIT. PBIT margin was up by 50 bps to 13.1%.

Composite Products:

For Q1 FY14, composite products division contributed 20% of the company's total revenues, rose by 66% to Rs 100.11 crore. The PBIT reported 38% increase to Rs 9.09 crore. . PBIT margin was down by 190 bps to 9.1%.

For FY13, composite product revenues rose 60% to Rs 333.41 crore representing 19% of total revenues while PBIT rose 52% to Rs 32.36 crore. . PBIT margin was down by 50 bps to 9.7%.

Valuation

The stock was trading at around Rs 34.4 at BSE.

The promoter has pledged 27.19% of total shareholding of promoter & promoter group and 16.83% of the total share capital of the company.

The promoter holding in the company is at 61.88%.