• Operating income excluding other operating income was up by 5% to Rs 629.44 crore and just a mid-single digit growth is largely due to fall in sales realisation per MT. While sales volume for the quarter was higher by 9% to 58090 Mt the sales realisation per MT was down by 3% to Rs 108355.31. The production volume for the quarter was higher by 31% to Rs 60785 MT.
• The value of production for the quarter was higher by 21% to Rs 635.88 crore and the sales for the quarter was 1% lower value of production. In comparison the sales in corresponding previous period was 13.6% higher than value of production. The inventory built up will get liquidated going forward.
• Other operating income was up by 249% to Rs 38.77 crore and thus the total operating income was up by 10% to Rs 668.20 crore.
• Sharp 390 bps contraction in OPM to 23.9% was largely due to higher material cost. Material cost as proportion to sales (net of excise and stocks) was up by 920 bps to 38.4%. However the staff and OE were lower by 70 bps (to 4.2%) and 40 bps to 33%. Thus hit by lower OPM, the operating profit was down by 6% to Rs 160 crore irrespective of higher sales.
• Other income was down by 30% to Rs 24.87 crore. The interest cost down by 30% to Rs 1.43 crore and the depreciation was up by 18% to Rs 20.93 crore. Thus the PBT was down by 12% to Rs 162.51 crore.
• Taxation was up by 19% to Rs 47.26 crore and thus the de-growth at PAT magnified to 21% to Rs 115.26 crore. Non-controlling interest was a share of profit of Rs 0.14 crore compared to a loss of RS 0.24 crore and thus the net profit after non-controlling interest was Rs 115.12 crore, a fall of 21%. Other comprehensive income net of tax was an expense of Rs 12.20 crore compared to an income of Rs 11.29 crore. Thus hit the total comprehensive income was down by 35% to Rs 102.92 crore.

Yearly performance

Sales was up by 7% to Rs 2320.34 crore but with 70 bps contraction in OPM, the growth at operating profit restricted to 4% (to Rs 634.57 crore). After accounting for higher other income, lower interest cost and higher depreciation, the PBT was up by 3% to Rs 662.04 crore. The taxation was up by 11% to Rs 204.83 crore and thus the PAT was flat at Rs 457.21 crore. Eventually the total comprehensive income was down by 5% to Rs 438.91 crore hit largely by higher other comprehensive expenses which was Rs 17.88 crore for the period compared to an income of RS 3.80 crore.

Other developments

Order book as at 1st April 2017 stood at Rs 671 crore.

GIDC Kerala Greenfield Phase-I and Trichy Brownfield expansion effectively commissioned in Q3FY2016. Present Installed Capacity 340000 TPA.

GIDC Kerala, Phase-II Greenfield expected to be commissioned in two phases. First phase will add 50000 TPA capacity in fiscal 2017-18 while second phase will add another 50000 TPA capacity in fiscal 2018-19. This expansion taken up at accost of Rs 500 crore will take the installed capacity to 440000 TPA.

Capex incurred during Q4FY2017 was Rs 26 crore and actual CAPEX incurred in FY 2016-17 was Rs 83 crore.

FY 2016-17 sales have been increased on account of increasing market share in Mining Sector. Sales have grown in mining segment from 100684 (MT) in 2015-16 to 126479 (MT) in 2016-17.

Outstanding foreign currency forward contracts (sales contracts) as of 31st March-2017: US $ 27.00 MIO, EURO 6.75 MIO, ZAR 85.25 MIO.

Targeted incremental volume growth over the 3 year horizon around 120000 MT.

To pay interim dividend of Rs 4 (200%) per equity share of face value of Rs 2 each for 2016-17 and this is in addition to the interim dividend of Rs 4 (200%) paid in Feb 2017.