• Down-side in top-line can be largely attributed to lower revenue from both Electro Mechanical Projects (EMP) and Engineering Product & Services (EPS) businesses. The segment revenue of Unitary Cooling Products for comfort & customer use (UCP) was up by 13% to Rs 354.16 crore (or 36% of sales). While the segment revenue of Electro Mechanical Projects (EMP) was down by 15% (to Rs 543.24 crore or 56% of sales) that of Engineering Product & Services (EPS) was down by 22% (to Rs 75.10 crore or 8% of sales). Lower sales of EMP was largely on account of slower progress in certain project compared to schedule and that of EPS segment was largely due to capex downcyle in both textile and mining.
  
• EBIT was down by 10% to Rs 76.59 crore and that is largely due to the drag of lower profit from both EMP and EPS businesses. Hurt by lower revenue and lower segment margin (down 170 bps to 1%) the segment profit of EMP was down by 69% (to Rs 5.35 crore). The segment profit of EPS was down by 11% (to Rs 30.37 crore) hurt largely by lower sales as its segment margin was up by 510 bps to 40.4%. The segment profit of UCP was up by 20% (to Rs 40.87 crore) aided by strong revenue growth and expansion in segment margin to the extent of 60 bps to 11.5%.
  
• Operating profit margin expanded by 80 bps to 7% and that is largely due to fall in material cost. The material cost as proportion to sales net of stocks was lower by 670 bps to 54.8%. But the cost of traded goods was up by 270 bps to 8.4%. The staff cost was up by 130 bps to 16% and the cost of other expenses was up by 130 bps to 12.4%.

Half yearly performance

Sales was higher by 9% to Rs 2836.64 crore and that with 200 bps expansion in OPM to 9.5%, the operating profit leaped by 37% to Rs 268.21 crore. After accounting for higher other income, higher interest and depreciation cost, the PBT before EO was up by 40% to Rs 348.80 crore. The EO was an income of Rs 0.94 crore compared to nil in the corresponding previous period. Thus the PBT after EO was up by 40% to Rs 349.74 crore. The taxation was up by 39% to Rs 115.58 crore and thus the PAT was up by 41% to Rs 234.16 crore. The net profit after minority interest was up by 35% to RS 229.73 crore as it has booked loss from associates of Rs 4.77 crore (against profit of Rs 5.19 crore) and share of loss of minority interest of Rs 0.34 crore ( against share of profit of RS 1.76 crore). Eventually the total comprehensive income was up by 86% to Rs 278.87 crore as the other comprehensive income for the quarter was Rs 49.14 crore compared to an expense of Rs 19.87 crore in the corresponding previous period.

Order book

EMP order book stood higher at Rs 4252 crore compared to Rs 3736 crore in the corresponding previous quarters. Orders booked during the quarter include Rs 121 crore for water treatment plant for Agra smart city.

The stock hovers around Rs 293.55.