• Operational income (excluding other operating income) was up by 4% to Rs 587.27 crore but the value of production was higher by 10% to Rs 580.82 crore. Operating income is 1.1% higher than value of production and this is largely on account of liquidation of about 6000 tonnes of stock that is in transit. The other operating income was up by 60% (to Rs 17.54 crore) due to higher export incentives. Thus the overall sales were higher by 5% to Rs 604.81 crore.

• The operating profit margin contracted by 270 bps to 26%. Hurt thus by lower margin, the operating profit was lower by 5% to Rs 157.49 crore. Contraction in operating margin was largely on account of higher staff and other expenses which more than offset the gain in material cost. Material cost (as % to sales net of stocks) was lower by 130 bps to 35.3%. However the staff cost was higher by 170 bps (to 4.6%) and other expenses was up by 400 bps (to 33.8%).

• Other income was higher by 43% to Rs 17.02 crore and that is largely on account of Rs 8 crore of forex gain compared to nil in the corresponding previous period. Interest cost stand lower by 31% to Rs 1.65 crore. But the depreciation stood higher by 67% to Rs 18.04 crore. Thus the de-growth at PBT (before EO) was 6% to Rs 154.81 crore. EO for the period as well as corresponding previous period was nil. Thus the PBT (after EO) was lower by 6% to Rs 154.81 crore.

• The taxation in absolute terms was down by 4% to Rs 42.53 crore but the tax rate was higher at 27.5% compared to 26.9% in the corresponding previous period. Thus the PAT was down by 6% to Rs 112.28 crore. The minority interest was loss of Rs 0.40 crore compared to profit of Rs 0.20 crore. And thus the net profit (after MI) was lower by 6% to Rs 112.69 crore.  

The consolidated financial results of AIA Engineering comprises of the results of the parent company i.e. AIA Engineering 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, and China based Wuxi Weigejia Trade Company.

Standalone sale for the quarter was higher by 27% to Rs 605.96 crore. Higher sales together with 360 bps expansion in operating profit margin to 32.2%, facilitated 43% jump in operating profit to Rs 195.07 crore. After accounting for higher other income, lower interest cost and higher depreciation, the PBT was up by 43% to Rs 198 crore. The taxation was lower by 1% to Rs 42.51 crore and the tax rate stood at 21.5% compared to 31.1% in corresponding previous period. Thus spurred, the PAT was higher by 63% to Rs 155.49 crore.

Yearly performance

Consolidated sales were higher by 5% to Rs 2183.64 crore. With OPM expand by 270 bps to 26.8%, 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 21% to Rs 594.34 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 29% to Rs 594.34 crore. Taxation was higher by 22% (to Rs 163.41 crore) in absolute terms but the tax rate was lower at 27.5% compared to 29.2% in corresponding previous period. Thus the PAT was higher by 33% to Rs 430.94 crore. Eventually after accounting for lower MI (a share of loss of about Rs 0.01 crore compared to a profit of Rs 0.75 crore), the net profit (after MI) was up by 33% to Rs 430.94 crore.

Standalone sales for the fiscal ended March 31, 2015 was higher by 17% to Rs 2094.03 crore. But with 130 bps contraction in operating profit margin, the growth at operating profit moderated at 12% to Rs 508.93 crore. The growth at PBT (before EO) was 29% to Rs 575.24 crore. EO for the fiscal was nil compared to an expense of Rs 31.11 crore in the corresponding previous period. Thus on deflated base the PBT (after EO) was up by 38% to Rs 575.24 crore. Eventually the PAT was up by 45% to Rs 414.57 crore.

Other developments

To pay a dividend of Rs 8 (or 400%) per equity share of Rs 2 each for 2014-15.

The scrip hovers around Rs 1140.20.