• Higher sales (up 26% to Rs 110.42 crore) is largely on account of higher volumes, which increased by 19% (to 48800 tonnes) and higher unit realization. The unit realization stood higher at Rs 115/kg in Q4FY14 compared to Rs 105/kg in corresponding previous period.

Moreover liquidation of inventory built-up over the quarters happened in Q4FY14 and that seems to have powered the sales. The value of production for the quarter was higher by 16% to Rs 537.98 crore even while the. Sales in Q4FY14 are 7.2% higher than value production. On the other hand the Q4FY13 sales are 1% lower than value production.

• Sharp expansion in operating profit is largely on account all round lower costs. Material cost (as % to sales net of stocks) was lower by 40 bps to 36.6%. Similarly the staff cost was lower by 190 bps (to 2.9%) and other expenses was lower by 850 bps (to 29.8%). Sharp fall in other expenses seems largely on account of lower forex loss (nil compared to Rs 15 crore in Q3FY14) and lower power cost with buying form power exchanges/power traders rather than grid supply.

• Other income more than doubled (up 109%) to Rs 11.91 crore. As interest cost stand higher (by 52% to Rs 2.40 crore) and depreciation too stand higher (by 23% to Rs 10.82 crore), the growth at PBT stood at 88% to Rs 163.92 crore.
• The taxation in absolute terms was up by 87% to Rs 43.24 crore and the tax rate was flat at 26.9%. Thus the PAT was up by 88% to Rs 119.80 crore. The minority interest was Rs 0.20 crore, a rise of 158%. And thus the net profit (after MI) was higher by 88% to Rs 119.59 crore.

The consolidated financial results of AIA Engineering comprises of the results of the parent company i.e. AIA Engineering Ltd. and its subsidiaries viz. Bangalore based Welcast Steels, UAE based Vega Industries (Middle East) F.Z.E., UK based Vega Industries, USA based Vega Industries, South Africa based Vega Steel Industries (RSA) Pty. Ltd., and China based Wuxi Weigejia Trade Co.

On deducting standalone figures from consolidated figures, the aggregate sales of subsidiaries were higher by 360% to Rs 100.04 crore. The operating profit stood at Rs 29.01 crore for the quarter compared to a loss of Rs 3.61 crore in the corresponding previous period. Eventually at PAT it was a profit of Rs 24.69 crore compared to a loss of Rs 1.79 crore in the corresponding previous period.

Yearly performance

Consolidated sales were higher by 19% to Rs 2080.08 crore. With OPM expand by 640 bps to 24.1%, the operating profit jumped higher by 62% to Rs 502.14 crore. After accounting for higher other income, interest and depreciation the PBT was up by 68% to Rs 325 crore. EO expenses for the quarter was Rs 31.11 crore compared to nil in the corresponding previous period. And thus the growth at PBT (after EO) moderated to 58% (to Rs 459.94 crore). With taxation being higher by 68% the PAT was higher by 54% to Rs 325.72 crore. Eventually after accounting for lower MI, the net profit (after MI) was up by 54% to Rs 3324.97 crore.

Other developments

To pay a dividend of Rs 6 (or 300%) per equity share of Rs 2 each for 2013-14.

The scrip hovers around Rs 671.25.