Operating margins of the company rose 390 bps to 13.9% as other expenses as a percentage of net sales (net of stock adjustment) rose 640 bps to 26.4% and employee benefit expenses rose 100 bps to 12.2% limited by 10 bps decrease in purchase of stock in trade to 0.4% and 290 bps fall in cost of raw material consumed to 48%. As a result operating profits decreased 27% to Rs 13.42 crore.

Other income rose 107% to Rs 2.11 crore. PBDIT decreased 20% to Rs 15.53 crore.

Interest cost was down 38% to Rs 2.12 crore. PBDT declined 17% to Rs 13.41 crore.

Depreciation fell 4% to Rs 3.74 crore. PBT as a result fell 21% to Rs 9.67 crore.

Considering 1010 bps fall in effective tax rate to 20.7% net profit fell 9% to Rs 7.67 crore.

Segment Results

Chemicals: For the quarter ended December 2015, the sales of chemical division increased 8% to Rs 74.93 crore representing 76% of total revenues of the company. PBIT was up 15% to Rs 21.68 crore, representing 122% of total PBIT. The capital employed decreased 4% to Rs 92.23 crore representing 37% of total capital employed.

For 9MFY'16 chemical division revenues rose 7% to Rs 211.47 crore representing 72% of total revenues while PBIT increased 22% to Rs 61.88 crore representing 103% of total PBIT.

Engineering: Engineering division contributed 2% of the company's total revenues in Q3FY'16 which fell 81% to Rs 2.41 crore. PBIT was negative at loss of Rs 2.8 crore compared to profit of Rs 0.44 crore in Q3FY'15. The capital employed decreased 36% to Rs 6.77 crore representing 3% of total capital employed. For 9MFY'16 engineering division revenues fell 52% to Rs 16.73 crore representing 6% of total revenues while PBIT was negative at loss of Rs 6.69 crore compared to profit of Rs 1.16 crore in 9MFY'15.

Shoppertainment: For the quarter ended December 2015, the sales of Shoppertainment division increased 2% to Rs 5.65 crore representing 6% of total revenues of the company. PBIT was down 50% to Rs 0.89 crore, representing 5% of total PBIT. The capital employed was flat at Rs 100.5 crore representing 40% of total capital employed.

For 9MFY'16 Shoppertainment division revenues fell 4% to Rs 16.72 crore representing 6% of total revenues while PBIT increased 5% to Rs 7.62 crore representing 13% of total PBIT.

Paints: Paints division contributed 13% of the company's total revenues in Q3FY'16 at Rs 12.69 crore compared to Rs 13.81 crore in Q3FY'15. PBIT reported was loss of Rs 2.38 crore compared to loss of Rs 0.71 crore in Q3FY'15. The capital employed increased 25% to Rs 61.97 crore representing 25% of total capital employed.

For 9MFY'16 paints division revenues rose 1% to Rs 39.43 crore representing 13% of total revenues while losses at PBIT increased 25% to Rs 3.64 crore.

Oil: For the quarter ended December 2015, the sales of oil division increased 4% to Rs 2.6 crore representing 3% of total revenues of the company. PBIT was up 2% to Rs 0.42 crore, representing 2% of total PBIT. The capital employed decreased 17% to Rs 2.22 crore representing 1% of total capital employed.

For 9MFY'16 oil division revenues rose 15% to Rs 7.68 crore representing 3% of total revenues while PBIT increased 31% to Rs 1.15 crore representing 2% of total PBIT.

In 9MFY'16 overall top-line fell 2% to Rs 289.01 crore in 9MFY'16 compared to corresponding previous year period while net profit of the company rose 16% to Rs 28.84 crore.

Operating margins of the company rose 40 bps to 18.2% as cost of material consumed as a percentage of net sales (net of stock adjustment) fell 390 bps to 47.2% limited by 240 bps rise in other expenses to 21.5% and 90 bps rise in employee benefit expenses to 12.6% while purchase of stock in trade was flat at 0.6%. As a result operating profits was flat at Rs 52.66 crore.

Other income rose 125% to Rs 4.49 crore. PBDIT increased 5% to Rs 57.15 crore.

Interest cost was down 30% to Rs 7.61 crore. PBDT improved 13% to Rs 49.54 crore

Depreciation fell 14% to Rs 10.66 crore. PBT before EO as a result rose 24% to Rs 38.88 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.

PBT after EO rose 16% to Rs 36.5 crore.

Considering 60 bps rise in effective tax rate to 21% net profit rose 16% to Rs 28.84 crore.

The scrip is currently trading at Rs 23.75