• On a higher sales of Rs 19.12 crore (up 25%) the operating profit stood at Rs 1.52 crore with growth rate moderated to 15% as the operating profit margin stand contracted by 60 bps to 8%. Lower OPM is largely due to higher staff cost. The staff cost as proportion to sales net of stocks was up by 90 bps to 12.3%. However the material cost including cost of traded goods was down by 50 bps to 69.1% and the other expenses was down by 40 bps to 10.2%. Though material cost and OE stood lower for the quarter that could not fully offset the rise in staff cost.
  
• The other income jumped by 846% to Rs 0.05 crore and thus the growth at PBIDT was 19% to Rs 1.57 crore.
  
• Sales including other income was up by 25% to 19.17 crore and the upside is largely due to higher revenue from machine manufacturing business. Segment revenue of machine manufacturing was up by 30% to Rs 14.67 crore (or 72% of sales) but that of trading activities was up by just 1% to Rs 5.76 crore (or 28% of total sales).
  
• EBIT was up by 23% to Rs 1.36 crore with upside coming largely from machine manufacturing biz. The segment profit of machine manufacturing was up by strong 40% to Rs 0.77 crore benefiting out of higher sales as well as higher margin. Segment margin of machine manufacturing was up by 40 bps to 5.3%. Given just 1% growth in sales, the segment profit of trading activities was up by 6% (to Rs 0.58 crore) largely due to 50 bps expansion in segment margin to 10.1%.
  
• As interest cost stand lower by 44% to Rs 0.36 crore and depreciation stand lower by 5% to Rs 0.22 crore, the PBT before EO more than doubled (up 118%) to Rs 1.0 crore.
  
• The taxation net of deffered tax was higher by 42% to Rs 0.17 crore but the tax rate was lower at 17.1% compared to 26.2% in corresponding previous period. Thus the PAT was up by 145% to Rs 0.83 crore.

Half yearly performance

Standalone sale for the period was up by 26% to Rs 36.23 crore and with OPM down by 150 bps to 8.7% the growth at operating profit restricted at 8% to Rs 3.15 crore. The PAT was eventually higher by 79% to Rs 1.68 crore.