• Sales net of excise/GST were higher by 41% to Rs 201.39 crore. But the value of production was up by 44% to Rs 199.14 crore from about Rs 138.36 crore in the corresponding previous period. Sales higher than value of production reflects liquidation of earlier period inventory during the quarter.

• Lower OPM at 9.7% compared to 13.1% in the corresponding previous period can be attributed to higher material cost and OE. Material cost as a proportion to sales net of stocks was higher by 590 bps to 47%. The other expenses were higher by 110 basis points to 23.1%. The staff cost and Power & Fuel cost though stood lower by 160 bps (to 6.0%) and 160 bps (to 14.2%) that could not fully offset the increase in material cost as well as OE.

• Other income jumped up by 198% to Rs 1.08 crore. The Interest cost was lower by 68% to Rs 0.57 crore and the depreciation was up by 19% to Rs 4.03 crore. Thus the PBT was higher by 15% to Rs 15.94 crore.

• But the taxation (including deferred tax) was higher by 38% to Rs 5.66 crore. And the tax rate was higher at 35.5% for the quarter compared to 29.5% in the corresponding previous period. Thus the PAT was up by 5% to Rs 10.28 crore.

Nine month performance

Sale for the period was up by 20% to Rs 531.62 crore. The operating profit margin contracted by 160 bps to 9.9% and thus the growth at operating profit moderated and stood at 4% to Rs 52.75 crore. But facilitated by higher other income (up 72% to Rs 2.70 crore) and lower interest (down 53% to Rs 2.38 crore), the PBT was up by 11% to Rs 41.12 crore even though depreciation cost stand higher by 19% to Rs 11.96 crore. With taxation stand higher by 13% to Rs 13.12 crore, the PAT was up by 10% to Rs 27.99 crore.