• Sale was up by 3% to Rs 38.97 crore but the value of production was up by 3% to Rs 37.75 crore. Sale for the quarter was 3.2% higher than value of production for the quarter. In corresponding previous period the sales was 3.8% higher than value of production for that period. Sales higher than value of production was largely due to liquidation of earlier period stocks.
• Operating profit margin expanded by 270 bps to 24.6% and this is largely due to sharp fall in staff cost and OE. The material cost as % to sales net of stocks was up by 120 bps to 37.8%. But the staff and other expenses were lower by 100 bps and 290 bps to 20.1% and 16.8% respectively. Thus despite jus an early single digit growth in sales, facilitated by impressive expansion in OPM, the operating profit was up by 16% to Rs 9.59 crore.
• Other income declined by 13% to Rs 0.71 crore. Thus the growth at PBIDT stood restricted at 13% to Rs 10.30 crore. The interest cost was up by 34% to Rs 0.66 crore and the depreciation was up by 8% to Rs 1.90 crore. But as proportion to OP the interest cost was higher but that of depreciation was lower. Thus the fall at PBT (before EO) was 13% to Rs 7.74 crore.
• EO income was nil for the quarter as well as corresponding previous quarter. The taxation (net of deferred tax) in absolute terms was down by 10% to Rs 2.35 crore and tax rate was lower at 30.3% compared to 37.8% in corresponding previous period. Thus the PAT was up by 26% to Rs 5.39 crore. The PPT was nil compared to Rs 0.15 crore in the corresponding quarter. Thus the net profit was up by 31% to Rs 5.39 crore.

Yearly performance

Standalone sales were up by 17% to Rs 127.76 crore. And the operating profit was up by 32% to Rs 28.38 crore facilitated by higher sales and 240 bps expansion in OPM. After accounting for higher other income, lower interest cost and higher depreciation, the PBT was up by 53% to Rs 20.45 crore. Taxation was up by 9% to Rs 5.10 crore but tax rate was down to 24.9% from 35.1% in corresponding previous period. Thus the PAT was up by 77% to Rs 15.35 crore. After accounting for 46% fall in PPT, the net profit was up by 79% to Rs 15.30 crore.

Consolidated sale was up by 18% to Rs 135.04 crore. Further with 320 bps expansion in OPM to 21.9%, the operating profit was up by 38% to Rs 29.58 crore. Eventually the PAT was up by 91% to Rs 16.22 crore facilitated by higher OI income, lower interest and depreciation cost as proportion of OP and lower tax rate.

Other developments

The Board of Directors of the Company has recommended a dividend of Rs 0.50/-per equity share of Rs 2/- each (i.e 25%) for the financial year ended 31.03.2019.