Grauer & Weil (India) reported 2% decrease in bottomline to Rs 7.18 crore in Q1FY'16 compared to Q1FY'15 while topline was flat at Rs 90.44 crore compared to Rs 90.14 crore over the same period.

Performance for the quarter ended June 2015

For quarter ended June 2015, the overall top-line was Rs 90.44 crore compared to Rs 90.14 crore in Q1FY'15. The company reported 80 bps rise in operating margins to 18.7% as cost of raw material consumed as a percentage of adjusted net sales fell 470 bps to 46.1% and purchase of stock in trade inched up 10 bps to 0.6% offset by 160 bps rise in employee benefit expenses to 14.2% and 70 bps increase in other expenditure to 19.5%. As a result operating profits increased 5% to Rs 16.87 crore.

Other income rose to Rs 1.12 crore compared to Rs 0.26 crore. Interest cost was down 22% to Rs 2.85 crore. Depreciation was flat at Rs 3.62 crore. PBT before EO as a result was up 27% to Rs 11.52 crore. The company reported EO expense of Rs 2.38 crore related to payments made to employees at the paints division at Chembur, who opted for voluntary scheme announced by the company compared to nil in the corresponding previous year period. Consequent to which, production at its chembur plant is significantly curtailed. Tax expenses rose 15% to Rs 1.96 crore. Bottomline of the company was down 2% to Rs 7.18 crore.

Segment Results

Chemicals: For the quarter ended June 2015, the sales of chemical division increased 1% to Rs 60.76 crore representing 66% of total revenues of the company. PBIT was up 15% to Rs 17.51 crore, representing 99% of total PBIT. The capital employed increased 4% to Rs 101.93 crore representing 45% of total capital employed.

For FY'15 chemical division revenues rose 8% to Rs 282.66 crore representing 68% of total revenues while PBIT increased 16% to Rs 75.38 crore representing 92% of total PBIT. The capital employed increased 2% to Rs 109.82 crore representing 50% of total capital employed.

Engineering: Engineering division contributed 10% of the company's total revenues in Q1FY'16 which fell 11% to Rs 8.86 crore. PBIT was negative at loss of Rs 2.25 crore compared to profit of Rs 0.4 crore in Q1FY'15. The capital employed decreased 35% to Rs 8.51 crore representing 4% of total capital employed. For FY'15 engineering division revenues rose 1% to Rs 47.01 crore representing 11% of total revenues while PBIT was negative at loss of Rs 0.63 crore compared to profit of Rs 0.37 crore in FY'14.

Shoppertainment: For the quarter ended June 2015, the sales of Shoppertainment division decreased 1% to Rs 5.76 crore representing 6% of total revenues of the company. PBIT was up 22% to Rs 3.6 crore, representing 20% of total PBIT. The capital employed decreased 3% to Rs 99.44 crore representing 44% of total capital employed.

For FY'15 Shoppertainment division revenues rose 6% to Rs 23.25 crore representing 6% of total revenues while PBIT decreased 6% to Rs 10.28 crore representing 13% of total PBIT.

Paints: Paints division contributed 15% of the company's total revenues in Q1FY'16 which rose 13% to Rs 13.3 crore. Losses at PBIT increased 33% to Rs 1.49 crore. The capital employed increased 1% to Rs 61.46 crore representing 27% of total capital employed. For FY'15 paints division revenues rose 12% to Rs 56.61 crore representing 14% of total revenues while losses at PBIT decreased 38% to Rs 3.76 crore.

Oil: For the quarter ended June 2015, the sales of oil division increased 13% to Rs 2.45 crore representing 3% of total revenues of the company. PBIT was down 17% to Rs 0.3 crore, representing 2% of total PBIT. The capital employed increased 15% to Rs 2.87 crore representing 1% of total capital employed.

For FY'15 oil division revenues rose 42% to Rs 8.83 crore representing 2% of total revenues while PBIT decreased 24% to Rs 0.83 crore representing 1% of total PBIT.

Performance for year ended March 2015

For year ended March 2015, the overall top-line rose 8% to Rs 416.34 crore The company reported 210 bps rise in operating margins to 17.8%. As a result operating profits increased 22% to Rs 74 crore.

Other income fell to Rs 2.43 crore compared to Rs 3.42 crore. Interest cost was down 16% to Rs 14.03 crore. Depreciation was up 43% to Rs 16.41 crore. PBT as a result was up 28% to Rs 45.99 crore. Tax expenses rose 148% to Rs 12.52 crore. Bottomline of the company was up 8% to Rs 33.19 crore

The promoter's shareholding stood at 68.68% at the end of quarter ended June 2015 similar to previous year quarter.

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