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For the quarter ended June 2017, Esab India registered 9% sales growth to Rs 136.65 crore. OPM fell 30 basis points to 9.8% which limited OP growth to 6% to Rs 13.45 crore.
Other income grew 5% to Rs 3.03 crore and depreciation went up 17% to Rs 2.54 crore.
Thus PBT grew 4% to Rs 13.94 crore.
EO loss was Rs 88 lakh against NIL. Thus PBT after EO fell 2% to Rs 13.06 crore.
Tax provision fell 4% to Rs 3.99 crore after which PAT fell 2% to Rs 9.07 crore.
FY 2017 results
In FY 2017, Esab India registered 5% sales growth to Rs 517.42 crore. OPM fell 100 basis points to 8.3% which took OP down 7% to Rs 42.90 crore.
Other income grew 61% to Rs 12.85 crore and depreciation went up 8% to Rs 10.27 crore.
Thus PBT grew 2% to Rs 45.48 crore.
EO loss grew 158% to Rs 9.11 crore. Thus PBT after EO fell 12% to Rs 36.37 crore.
Tax fell 19% to Rs 10.37 crore after which PAT went down 8% to Rs 26.00 crore.
Segment results
For the quarter, sales from the Consumables segment grew 1% to Rs 94.60 crore and accounted for 69% of sales. PBIT from the same fell 27% to Rs 9.65 crore and accounted for 67% of total.
For the quarter, sales from the Equipment division grew 30% to Rs 42.06 crore and accounted for 31% of sales. PBIT from the same jumped 395% to Rs 4.75 crore and accounted for 33% of total.
In FY 2017, sales from the Consumables segment grew 4% to Rs 380.81 crore and accounted for 74% of sales. PBIT from the same fell 4% to Rs 42.98 crore and accounted for 89% of total.
In FY 2017, sales from the Equipment division grew 6% to Rs 136.61 crore and accounted for 26% of sales. PBIT from the same fell 16% to Rs 5.32 crore and accounted for 11% of total.
For the quarter PBIT margin of Consumables segment fell from 14.1% to 10.2% but that of the Equipment division jumped from 3.0% to 11.3%.
For FY 2017 PBIT margin of Consumables segment fell from 12.2% to 11.3% and that of the Equipment division fell to 3.9% against 4.9%.
Restructuring and EO loss
The company undertook restructuring at Taratala involving optimizing its capacities which resulted in impairment of property, plant and equipment amounting tio Rs 14 lakh against NIL.
The board of directors and the shareholders approved the discontinuance of manufacturing operations at its consumables plant at Khardah during earlier years. As a result, impairment of property, plant and equipment aggregating to Rs 74 lakh (against NIL) is shown as EO.
Valuation
The share price trades at Rs 716.
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