• The value of production for the quarter was higher by 22% to Rs 31.05 crore. But the operating income (excluding other operating income) was up by 33% to Rs 31.05 crore. Other operating income was down by 2% to Rs 0.51 crore and thus the total sales were down by 33% to Rs 31.56 crore.

• Higher sale for the quarter was largely on account of strong growth in sales of engineering division. The segment sale of engineering division was up by strong 38% to Rs 28.72 crore (or 91% of sales). But the segment sale of food division was down by 5% to Rs 2.85 crore. Contribution of relatively higher margin food division to topline has decreased from 13% in corresponding previous quarter to 9% in quarter ended Sep 2015. Facilitated by higher sales and higher margin, the segment profit of engineering was up by strong 44% (to Rs 6.94 crore). Despite lower sales the segment profit of food division was up by whopping 164% (to Rs 0.79 crore) facilitated largely by 1770 bps expansion in segment margin to 27.6%.

• Operating profit margin expanded by 240 bps to 17.9% and this can be explained by lower staff and other expenses. Material cost as proportion to sales net of stocks was higher by 50 bps to 49.2%. Similarly the job charges was up by 70 bps to 8.6%. But the staff cost and OE was lower by 70 bps (to 11.3%) and 430 bps (to 13%) respectively.

• Other income was up by 148% to Rs 0.44 crore. The interest cost was up by 67% to Rs 0.17 crore. The depreciation was lower by 28% to Rs 0.52 crore. Thus the PBT was lower by 78% to Rs 5.42 crore.

• Taxation in absolute terms was higher by 93% to Rs 1.90 crore and the tax rate stood higher at 35% compared to 32.3% in corresponding previous quarter. Thus the PAT stood higher by 71% to Rs 3.52 crore.

Half Yearly performance

Standalone sales were higher by 8% to Rs 52.44 crore. But with operating margin expand by 290 bps the operating profit was at Rs 8.18 crore, a rise of 33%. After accounting for higher other income, higher interest and lower depreciation the PBT was higher by 36% to Rs 7.73 crore. EO expenses for the period and corresponding previous period was nil. Taxation was higher by 47% to Rs 2.70 crore and thus the PAT was higher by 31% to Rs 5.03 crore.

The stock hovers around Rs 293.