• Operational income (excluding other operating income) was up by 9% to Rs 515.66 crore but the value of production was flat at Rs 503.83 crore. Operating income is 2.3% higher than value of production and this is largely on account of liquidation of prior period inventory. The other operating income was down by 37% (to Rs 11.47 crore). Thus the overall sales were higher by 7% to Rs 527.13 crore.

• The operating profit margin expanded by 180 bps to 27.7%. Thus spurred the operating profit was higher by 15% to Rs 145.94 crore. Expansion in operating margin was largely on account of lower material cost. Even though other cost heads stood higher that could not completely offset the fall in material cost. Material cost (as % to sales net of stocks) was lower by 570 bps to 33.8%. However the staff cost was higher by 50 bps (to 4.9%) and other expenses was up by 130 bps (to 33%).

• Other income was lower by 9% to Rs 20.82 crore. But the Interest cost and depreciation stood higher by 283% (to Rs 1.14 crore) and 43% (to Rs 16.93 crore). Thus the growth at PBT (before EO) moderated to 8% (to Rs 148.69 crore). EO for the period as well as corresponding previous period was nil. Thus the PBT (after EO) was up by 8% to Rs 148.69 crore.

• The taxation in absolute terms was up by 8% to Rs 45.83 crore but the tax rate was higher at 30.82% compared to 30.89% in the corresponding previous period. Thus the PAT was up by 8% to Rs 102.86 crore. The minority interest was loss of Rs 0.03 crore compared to a loss of Rs 0.21 crore. And thus the net profit (after MI) was higher by 8% to Rs 102.83 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 ended June 2015 was however lower by 1% to Rs 456.46 crore. But a 950 bps expansion in operating margin powered the operating profit up by 50% to Rs 127.66 crore. After accounting for lower other income, higher interest and depreciation cost the PBT was up by 38% to Rs 130.33 crore. Taxation in absolute terms was higher by 8% to Rs 44.86 crore but the tax incidence was lower at 34.4% compared to 44.0% in the corresponding previous period. Thus the net profit was up by 62% to RS 85.47 crore.

The scrip hovers around Rs 978.60.