• Sales though increased by modest 1% (to Rs 492.12 crore) the value of production for the quarter was higher by 20% to Rs 522.84 crore. Sales for Q1FY15 is 5.88% lower than value of production for the quarter but the sales for corresponding Q1FY14 was 11.28% higher than value of production of Q1FY14. Thus sale for the quarter seems impacted by delay in dispatch/off-take leading to inventory buildup, which will be liquidated going forward.

• Sharp expansion in operating profit margin is largely on account all lower staff and other expenses. Material cost (as % to sales net of stocks) was higher by 210 bps to 39.5%. On the other hand the staff cost was lower by 40 bps (to 4.5%) and other expenses were lower by 250 bps (to 31.7%).

• Other income more than trebled (up 328%) to Rs 22.83 crore. As interest cost stand lower (by 81% to Rs 0.30 crore) and depreciation stand higher (by 33% to Rs 11.83 crore), the growth at PBT stood at 42% to Rs 137.97 crore.

• The taxation in absolute terms was up by 28% to Rs 39.95 crore and the tax rate stood lower at 30.9% compared to 32.6% in corresponding previous period. Thus the PAT was up by 45% to Rs 95.35 crore. The minority interest was up by 3% to Rs 0.21 crore. And thus the net profit (after MI) was higher by 45% to Rs 95.14 crore.

Standalone sale for the quarter was higher by 15% to Rs 460.13 crore. But with OPM contract by 590 bps to 18.5% the operating profit declined by 13% to Rs 84.91 crore. Hurt further by higher taxation, the net profit was eventually lower by 23% to Rs 52.7 crore. But for 108% jump in other income the fall at standalone bottom-line would have been much steeper.

On deducting standalone figures from consolidated figures, the aggregate sales of subsidiaries were lower by 62% to Rs 31.99 crore. But with OPM jump to 132.4% compared to modest 5.4% in corresponding previous period the operating profit grew by whopping 841% to Rs 42.35 crore. Eventually at PAT it was a profit of Rs 42.65 crore compared to a loss of Rs 2.33 crore in the corresponding previous period.

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.

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.

The scrip hovers around Rs 767.45.