• Export revenue for the quarter was down by 12% to Rs 333.2 crore. And the domestic sale was down by 29% to Rs 527.91 crore.
• Value of production for the period was down by 32% to Rs 798.07 crore from Rs 1166.75 crore in the corresponding previous period. Sale for the quarter was 1.08 times higher than value of production but the sales for corresponding previous period was 0.97 times of its value of production. Sales higher than value of production for the quarter reflects liquidation of earlier period stocks.
• Lower OPM by 90 bps to 17% was largely due to higher staff and OE expenses. Material cost as % of sales net of stocks was down by 510 bps to 38.1%. However a 320 bps rise in staff cost to 12.7% and 90 bps rise in OE to 30.9% has more than negated the impact of lower material cost.
• Other income was lower by 39% to Rs 5.88 crore and that is largely due to lower forex gain. Forex gain for the quarter stood at Rs 3.95 crore a fall of 53% from Rs 8.41 crore in the corresponding previous period. The interest cost was up by 31% to Rs 17 crore and the depreciation was up by 35% to Rs 40.91 crore. Thus the PBT was down by 43% to Rs 98.92 crore.
• The tax rate was lower at 27.9% compared to 32.3% in the corresponding previous period. Pursuant to the Taxation Laws (Amendment) Ordinance, 2019 issued on September 20, 2019, domestic companies have been given an option to apply a lower income tax rate with effect from April 1, 2019, subject to certain conditions specified therein. At this stage, the group is in the process of evaluating the impact arising from availment of the said option. Pending such evaluation, no effect in this regard has been presently considered in the financial results presented.

Half yearly performance

Consolidated sales was down by 8% to Rs 2069.82 crore and the with 120 bps contraction in OPM to 16.6%, the operating profit was down by 15% to Rs 343.38 crore. After accounting for lower OI, hither interest and depreciation the PBT was down by 29% to Rs 238.17 crore. With taxation stand lower by 35% to Rs 69.95 crore, the PAT was down by 27% to Rs 168.22 crore. After accounting for MI of Rs 2.12 crore, a jump of 80%, the net profit attributable to owners was down by 27% to Rs 166.10 crore.

Interim Dividend

The Board at its meeting held today, declared an interim dividend of Rs. 1.35 per share (135%) for the year 2019-20. The record date for the same is Nov 15, 2019.

Valuation

The stock closed Nov 4, 2019 on Rs 466.30/-