|
For the quarter ended September 2017, Esab India registered 6% sales growth to Rs 126.92 crore. OPM fell 110 basis points to 10.8% which took OP down 4% to Rs 13.72 crore.
Other income dived 33% to Rs 2.73 crore and depreciation went down 3% to Rs 2.48 crore.
Thus PBT fell 12% to Rs 13.97 crore.
EO loss was Rs 26 lakh against NIL. Thus PBT after EO fell 13% to Rs 13.71 crore.
Tax provision fell 9% to Rs 4.42 crore after which PAT fell 15% to Rs 9.29 crore.
Six months results
For the six months, Esab India registered an 8% rise in sales to Rs 252.71 crore. OPM fell 70 basis points to 10.8% which saw OP grow 1% to Rs 27.17 crore.
Other income fell 17% to Rs 5.76 crore and depreciation went up 6% to Rs 5.02 crore.
Thus PBT fell 4% to Rs 27.91 crore.
EO loss was Rs 1.14 crore against NIL. Thus PBT after EO fell 8% to Rs 26.77 crore.
Tax provision fell 6% to Rs 8.41 crore after which PAT fell 9% to Rs 18.36 crore.
Segment results
For the quarter, sales from the Consumables segment stood at Rs 87.67 crore and accounted for 69% of sales. PBIT from the same fell 1% to Rs 12.02 crore and accounted for 81% of total.
For the quarter, sales from the Equipment division stood at Rs 39.25 crore and accounted for 31% of sales. PBIT from the same grew 20% to Rs 2.80 crore and accounted for 19% of total.
For the six months, sales from the Consumables segment stood at Rs 182.27 crore and accounted for 69% of sales. PBIT from the same fell 14% to Rs 21.67 crore and accounted for 74% of total.
For the six months, sales from the Equipment division stood at Rs 81.31 crore and accounted for 31% of sales. PBIT from the same jumped 129% to Rs 7.55 crore and accounted for 26% of total.
Restructuring and EO loss
The company undertook restructuring at Taratala involving optimizing its capacities which resulted in impairment of property, plant and equipment amounting to Rs 26 lakh crore against NIL for the six months.
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.
ESAB Holdings buys L&T's EWAC Alloys Ltd
On 12 October 2017, Larsen and Toubro agreed to sell unit EWAC Alloys Ltd to the UK-based ESAB Holdings Ltd for Rs 522 crore ($80 million). The deal is likely to be completed within two months.
EWAC makes welding products such as electrodes, gas brazing rods, welding torches and accessories at its factory in Ankleshwar, Gujarat. The company was started as a joint venture of L&T and Germany's Messer Eutectic Castolin Group. In 2011, it became a wholly owned subsidiary of L&T.
EWAC posted revenue of Rs 211.2 crore for FY 2017.
Valuation
The share price trades at Rs 875.
|