• Operational income (excluding other operating income) was higher by 19% to Rs 590.97 crore. The excise duty was Rs 17.44 crore, an increase of 11%. Thus the operational income net of excise duty was up by 19% to Rs 573.52 crore. The value of production net of excise was higher by 16% to Rs 582.74 crore. Sales for the period and corresponding previous period was lower by 1.6% and 4.5% from their respectively value of production. This reflects inventory built up which will get liquidated going forward. The other operating income was up by 33% to Rs 16.54 crore. Thus the operational income including other operating income and net of excise duty was up by 20% to Rs 590.06 crore.

• The operating profit margin contracted by 80 bps to 29.3%. Thus the operating profit was higher by 16% to Rs 172.82 crore largely due to higher sales. Contraction in operating margin was largely on account of higher material and other expenses which more than offset the gain in lower staff cost. Material cost (as % to sales net of stocks) was higher by 130 bps to 34.1%. And the other expense was up by 70 bps (to 32.6%). However the staff cost was lower by 60 bps (to 4.5%).

• Other income was higher by 21% to Rs 22.29 crore. But the interest cost stand higher by 13% to Rs 0.86 crore and that of depreciation was higher by 16% to Rs 17.01 crore. Thus the growth at PBT (before EO) was 17% to Rs 177.25 crore. EO for the period as well as corresponding previous period was nil. Thus the PBT (after EO) was higher by 17% to Rs 177.25 crore.

• The taxation (including deferred tax) in absolute terms was up by 14% to Rs 56.77 crore but the tax rate was lower at 32% compared to 33% in the corresponding previous period. Thus the PAT was up by 19% to Rs 120.48 crore. The minority interest was up by 141% to Rs 0.24 crore. Thus the net profit (after MI) was higher by 19% to Rs 120.33 crore.

The consolidated financial results of AIA Engineering comprises of the results of the parent company i.e. AIA Engineering and its subsidiaries viz. Bangalore based Welcast Steels, UAE based Vega Industries (Middle East) F.Z.E., UK based Vega Industries, USA based Vega Industries, South Africa based Vega Steel Industries (RSA) Pty, and China based Wuxi Weigejia Trade Company.

Standalone sale for the quarter was higher by 9% to Rs 518.67 crore. Lower sales together with 120 bps contraction in OPM to 25.6%, resulted in just 4% growth in operating profit to Rs 132.52 crore. After accounting for lower other income, higher interest cost and higher depreciation, the PBT was flat at Rs 137.86 crore. The taxation was up by 5% to Rs 54.59 crore and the tax rate stood at 39.6% compared to 37.8% in corresponding previous period. Thus the PAT was lower by 3% to Rs 83.28 crore.

On deducting standalone financials from consolidated financials the sales of subsidiaries was up by 285% to Rs 71.39 crore and the PAT was up by 137% to Rs 37.20 crore.

Nine month performance

Consolidated sales were higher by 6% to Rs 1598.40 crore. But with OPM expand by 50 bps to 29.7%; the operating profit was higher by 8% to Rs 474.57 crore. After accounting for higher other income, higher interest and lower depreciation, the PBT was up by 10% to Rs 499.53 crore. The EO was nil for period and corresponding previous period. Taxation was higher by 9% (to Rs 157.57 crore) in absolute terms but the tax rate was marginally lower at 31.5% compared to 31.7% in corresponding previous period. Thus the PAT was higher by 10% to Rs 341.96 crore. Eventually after accounting for higher MI (up 92% to Rs 0.28 crore), the net profit (after MI) was up by 10% to Rs 341.67 crore. After accounting for lower other comprehensive expenses, the total comprehensive income was up by 11% to Rs 335.99 crore.

Other developments

Order book as at 1st January 2017 was Rs 610 crore.

GIDC Kerala Greenfield Phase-I and Trichy Brownfield expansion effectively commissioned in Q-3 FY 2016. Present Installed Capacity stands at 340000 TPA.

GIDC Kerala, Phase-II Greenfield plant is expected to be commissioned by October, 2017 – estimated capacity addition in Phase-II: 1,00,000 TPA making total installed capacity up to 4,40,000 TPA; by October, 2017 for total Capex of Rs 350 crore.

Capex incurred during Q3-FY2017: Rs 21.5 crore. Capex estimated to be incurred in FY 2016-17: Rs164 crore.

To pay interim dividend of Rs 4/- per equity share of Rs 2 each for 2016-17.