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For the quarter ended Mar 19, net sales were down by 2% and stood at Rs 222.68 crore. OPM was down by 210 bps to 14.9% resulting in a decrease in OP of 15% to Rs 33.26 crore. Other income was higher by 33% to Rs 6.64 crore. Depreciation was down by 10% to Rs 6.53 crore, thus PBT was down by 9% to Rs 33.37 crore. After providing total tax of Rs 11.74 crore, down by 7% on YoY basis, PAT for Mar 19 quarter was down by 11% YoY to Rs 21.63 crore.
Performance for the 12 months ended Dec 18
For the 12 months ended Dec 18, net sales were up by 2% to Rs 925.07 crore. OPM was lower by 221 bps to 15.9% resulting in further fall in OP by 11% to Rs 147.41 crore. Other income was higher by 72% to Rs 22.77 crore. Depreciation was down by 7% to Rs 27.81 crore, thus PBT was down by 5% to Rs 142.37 crore. There was an EO expense pertaining to VRS expense of Rs 4.44 crore in 12 mths ended Dec 17 as compared to Nil for 12 mths ended Dec 18 period. Thus PBT after EO stood at Rs 142.37 crore down by 2% YoY. After providing total tax of Rs 49.85 crore, down by 1%, PAT for the 12 months ended Dec 18 was down by 2% YoY to Rs 92.52 crore.
Other updates
Overall sales dipped 2% YoY as exports continued to fall. Though domestic growth was strong, it could not offset the exports slowdown. Further, Vesuvius India faced issues in offtake from a key domestic PSU. However, the PSU has resumed ordering and the company expects off take to normalise in Q2CY19. Margin was impacted by lower offtake and higher employee cost due to new hiring at the senior level.
Management is optimistic on domestic business riding strong uptick in production at large mills and cases referred to NCLT getting resolved. Off take from companies which have come out of NCLT proceedings (Bhushan Steel, BPSL, Electrosteel, Monett ISPAT, Usha Martin) is going to increase in coming years.
High technology steel, new product development & developing markets like India remain parent's focus areas
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