• Sales stood flat at Rs 390.36 crore. But at operating profit level it was a loss of Rs 96.06 crore (compared to a profit of Rs 21.44 crore in Q3FY15) as the operating profit margin stand negative 24.6% compared to positive 5.5% in the corresponding previous period. Negative OPM is seems largely due to accounting of additional cost upon revision of cost to complete certain projects.
• Material cost as proportion to sales was up by 2220 bps to 66.1% and that of staff and other expenses were up by 140 bps and 650 bps to 33% and 25.5% respectively. This all-round jump in cost turned the OPM negative for the quarter.

• Other income more than doubled (up 101%) to Rs 23.64 crore. The interest and depreciation cost was up by 636% (to Rs 0.81 crore) and 3% (to Rs 17.77 crore) respectively. Thus the loss at PBT was a loss of Rs 91 crore compared to a profit of Rs 15.84 crore in the corresponding previous period.
• Taxation was a write back of Rs 32.07 crore compared to a provision of Rs 0.94 crore in the corresponding previous period. Thus the PAT was a loss of Rs 58.93 crore compared to a profit of Rs 14.90 crore in the corresponding previous period.

Nine month performance

The company sold its ‘Air Preheaters and Industrial Mills (Auxiliary Components Undertaking)" business to Oak Energy India (OEIPL) as going concern on a slump sale basis for lump sum consideration without values being assigned to individual assets and liabilities with effect from end of business hours of August 31, 2014. As figures of corresponding previous period include the financials of auxiliary components undertaking to that extent the financials of nine month period ended December 2015 and December 2014 is not comparable.

Sales for the period were higher by 3% to Rs 1354.02 crore. Operating profit was a loss of Rs 213.25 crore (compared to a profit of Rs 88.78 crore in the corresponding previous period)as the company seems account an addition cost upon revision of cost to complete certain projects. At PBT level it was a loss of Rs 162.50 crore compared to a profit of Rs 117.17 crore in the corresponding previous period. The taxation was a write-back of Rs 56.33 crore compared to a provision of Rs 38.62 crore in the corresponding previous period. The PAT was eventually a loss of Rs 106.17 crore compared to a profit of Rs 78.55 crore in the corresponding previous period.

EO/PPA for the period was nil compared to an income of Rs 37.59 crore towards profit on sales of auxiliary components undertaking in corresponding previous period. Thus the net profit was a loss of Rs 106.17 crore compared to a profit of Rs 116.14 crore in the corresponding previous

Other developments

As per the information received from Credit Suisse Securities (I), the Letter of Offer with reference to acquisition of up to 17479143 equity shares (comprising 265 of the Equity shares) of the company from the public shareholders made by GE Energy Europe BV along with persons acting in concert, had been dispatched by the Manager to the offer to the shareholders of the company. The open offer tendering period commenced on Jan 18, 2015 and expired on Feb 1, 2016.

The stock hovers around Rs 625.25.