The company has only one primary segment i.e. manufacturing of High Chrome Mill Internals.

For the quarter ended December 2013, AIAE's consolidated sales grew 26% to Rs 525.22 crore. OPM soared 300 basis points from 19.9% to 22.9% which took OP up 45% to Rs 120.25 crore.

Other income grew 187% to Rs 12.81 crore and interest cost fell 59% to Rs 45 lakh. After providing for depreciation (up 7% to Rs 9.30 crore), PBT jumped 59% to Rs 123.31 crore.

EO loss was Rs 31.11 crore after which PBT after EO was up 19% to Rs 92.20 crore.

Provision for taxation jumped 8% to Rs 25.81 crore, after which PAT grew 24% to Rs 66.39 crore.

Minority interest stood at Rs 16 lakh (against Rs 34 lakh) after which consolidated net profit grew 25% to Rs 66.23 crore.

Nine month consolidated sales grow 16% and PBT rise 60%

For the nine month ended December 2013, AIAE's consolidated sales grew 16% to Rs 1503.42 crore. OPM soared 550 basis points from 16.9% to 22.4% which took OP up 54% to Rs 336.91 crore.

Other income grew 38% to Rs 21.50 crore and interest cost limped 1% to Rs 3.96 crore. After providing for depreciation (up 6% to Rs 27.32 crore), PBT jumped 60% to Rs 327.13 crore.

EO loss was Rs 31.11 crore after which PBT after EO grew 45% to Rs 296.02 crore.

Provision for taxation jumped 59% to Rs 90.01 crore, after which PAT grew 39% to Rs 205.92 crore.

Minority interest stood at Rs 55 lakh (against Rs 73 lakh) after which consolidated net profit grew 40% to Rs 205.37 crore.

In FY 2013, consolidated sales had grown 24% to Rs 1751.31 crore and net profit had risen 17% to Rs 210.82 crore

Volume information

Mining sales during the quarter was 25500 tons. In September 2013 quarter the company had done 23600 tons in mining space.

The company did incrementally better during the quarter.

Mining Volumes continue to pick up.

Net tonnage will increase 20-30000 tons in FY 2015.

For the nine month the company did 128000 tons.

More 44-45000 tons will come in Q4.

So for FY 2014 it can do 172-174000 tons.

Growth in Indian business is small. Most of the growth has come from global space.

Expansion

Brownfield expansion is on track.

The company has frozen capex plans for Kerala (Phase I and Phase II Kerala). Total capex for Phase I and Phase II is about Rs 640-650 crore. These spends will be staggered and investments will be in phases.

Time frame for commission is March 2015 for Phase I and Oct 2015 for Phase II. In total both will add 180000 tons.

Mining business is looking up. Capacity constrain for the company will ease once the brownfield expansion comes in place.

Increases stake in Welcast Steels

The Company has acquired 13000 Equity Shares of the face value of Rs.10 each of Welcast Steels Ltd. (WSL). In view of the said acquisition, the Shareholding of the company in WSL has gone up from 464661 Equity Shares (72.80%) to 477661 Equity Shares (74.85%) with effect from 07.11.2013.

Has proposed a Scheme of Amalgamation of DCPL Foundries

The company has proposed a Scheme of Amalgamation of DCPL Foundries Ltd., a Wholly-owned Subsidiary of the Company with the Company. The Appointed date for the merger is 1st April 2013 subject to the approval of the Hon'ble High of Gujarat and other Authorities.

EO loss

During the Quarter ended 31st December 2013, the Profit before Tax (PBT) is reduced to the extent of Rs 31.11 crore, which has been paid to Megatteaux International (MI), Belgium towards the settlement of US Patent case as per the Settlement Agreement entered by the Company with MI and the same is shown under the head of Exceptional Item.

Improving realization

The company is seeing good improvement in $ realization as old contract expired. Realization is at Rs 60 per dollar.

During the quarter the company did more casting business than it did in Q1 and Q2 historically.

Realization per ton stood at Rs 120.

Forex loss

Forex loss during the quarter is Rs 3 crore and for the nine months its Rs 40 crore.

Valuation

The share price closed down 1% at Rs 507 the day its results were announced.