• The value of production was flat at Rs 521.54 crore. But the Operational income (excluding other operating income) was down by 10% to Rs 484.64 crore. Sale for the quarter was 7.1% lower than value of production compared to 2.3% higher in corresponding previous period. This shows inventory built up which will get liquidated in coming quarters.
• Lower Operational income (excluding other operating income) was largely due to fall in realization and product mix. While the volume sales for the quarter is higher by 5% to 47572 MT the realization declined by 14% to Rs 101.88/kg.
• The operating profit margin expanded by 220 bps to 29.4% and this is largely on account of lower material cost. Material cost (as % to sales net of stocks) was lower by 20 bps to 36.2%. The staff cost was flat at 4.8%. But the other expense was higher by 70 bps (to 31.7%).
• Other income was lower by 8% to Rs 25.77 crore. But the interest cost stand higher by 4% to Rs 1.19 crore and that of depreciation was up by 6% to Rs 17.49 crore. Thus the growth at PBT (before EO) was down by 3% to Rs 154.07 crore. EO for the period as well as corresponding previous period was nil. Thus the PBT (after EO) was down by 3% to Rs 154.07 crore.

• The taxation in absolute terms was down by 7% to Rs 45.03 crore and the tax rate was lower at 29.2% compared to 30.5% in the corresponding previous period. Thus the PAT was down by 1% to Rs 109.04 crore. The minority interest was share of profit of Rs 0.04 crore, up by 31%. Thus the net profit (after MI) was lower by 1% to Rs 108.99 crore. The other comprehensive income was up at Rs 6.32 crore compared to mere Rs 0.19 crore in the corresponding previous period. The Total other comprehensive income was eventually up by 4% to Rs 115.32 crore.

Standalone sale for the quarter was lower by 3% to Rs 459.74 crore. Lower sales together with 120 bps contraction in OPM to 25.8%, resulted in 7% fall in operating profit to Rs 118.62 crore. After accounting for lower other income, higher interest cost and higher depreciation cost, the PBT was down by 11% to Rs 125.31 crore. The taxation was lower by 3% to Rs 45.95 crore but the tax rate stood higher at 36.7% compared to 33.9% in corresponding previous period. Thus hurt further, the PAT was lower by 14% to Rs 79.35 crore.

Just a modest 1% fall at consolidated PAT even while the standalone PAT was down by 14% was largely due to sharp 69% jump in aggregate PAT of subsidiaries. On deducting the standalone financials from that of consolidated financials, the sales was lower by 44% to Rs 40.71 crore but the PAT was up by 69% to Rs 29.68 crore. Sharp jump in aggregate PAT of subsidiaries despite lower sales was largely due to sharp jump in OPM to 69.6% (from 28.4%), lower interest and depreciation as well as higher tax write back (against a provision) in the corresponding previous period.