• Operational income (excluding other operating income) was down by 3% to Rs 492.93 crore but the value of production was higher by 6% to Rs 562.96 crore. Lower sales for the quarter was largely on account of about 6000 tonnes are stock in transit and will get liquidated in fourth quarter. The other operating income was up by 13% (to Rs 21.38 crore) due to higher export incentives. Thus the overall sales was down by 2% to Rs 514.31 crore.

• Sharp expansion in operating profit is largely on account lower staff and lower other expenses. Material cost (as % to sales net of stocks) was higher by 160 bps to 36.5%. However the staff cost was lower by 120 bps (to 4.1%) and other expenses was lower by 460 bps (to 33.3%).

• Other income was higher by sharp 82% to Rs 23.30 crore spurred largely by dividend income and forex gain. Interest cost stand higher by 104% to Rs 0.91 crore. The depreciation too stood higher by 95% to Rs 18.11 crore. Thus growth at PBT (before EO) was up by 27% to Rs 156.51 crore. EO for the period was nil compared to an expense of Rs 31.11 crore in the corresponding previous period. Thus on deflated base, the PBT was up by 70% to Rs 156.51 crore.

• The taxation in absolute terms was up by 61% to Rs 41.50 crore but the tax rate was lower at 56.5% compared to 28% in the corresponding previous period. Thus the PAT was up by 73% to Rs 115.02 crore. The minority interest was loss of Rs 0.03 crore compared to profit of Rs 0.16 crore. And thus the net profit (after MI) was higher by 74% to Rs 115.04 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.

Standalone sales was higher by 17% to Rs 531.52 crore and operating profit margin contracted by 30 bps to 24.6%. Thus the growth at operating profit moderated to 15% to Rs 130.82 crore. However helped by jump in other income (up 115% to Rs 19.98 crore) the PBT was up by 16% to Rs 132.37 crore. The EO was nil compared to an expense of Rs 31.11 crore. Thus on deflated base the PBT after EO was up by 59% to Rs 132.37 crore. Gained further by lower tax incidence the net profit was up by sharp 62% to Rs 91.8 crore.

Nine month performance

Consolidated sales were higher by 5% to Rs 1578.83 crore. With OPM expand by 470 bps to 27.1%, the operating profit was higher by 27% to Rs 427.32 crore. After accounting for higher other income, lower interest and higher depreciation, the PBT was up by 34% to Rs 439.53 crore. The EO was nil compared to an expense of Rs 31.11 crore. Thus on deflated base the PBT after EO was up by 48% to Rs 439.53 crore. Taxation was higher by 34% (to Rs 120.88 crore) in absolute terms the tax rate was lower at 27.5% compared to 30.4% in correspodnign previous period. Thus the PAT was higher by 55% to Rs 318.65 crore. Eventually after accounting for lower MI (down 28% to Rs 0.40 crore), the net profit (after MI) was up by 55% to Rs 318.25 crore.

The scrip hovers around Rs 1067.25.