• Sale for the quarter was up by 4% to Rs 172.53 crore even while the value of production for the period was up by modest 2% to Rs 166.54 crore. Sales for the period and corresponding previous period was 1.04 times and 1.02 times of their respective value of production. Sales higher than value of production reflects liquidation of earlier period inventory.

• Operating profit margin expanded by 210 bps to 13.3% and that is largely due to lower material cost and OE. Material cost as proportion to sales net of stocks was down by 370 bps to 48.7%. The OE was down by 190 bps to 13.1%. However the cost of traded goods and staff cost was up by 270 bps to 13.4% and 50 bps to 11% respectively.

• Other income was lower by 48% to Rs 2.70 crore and thus the growth at PBIDT was restricted at 8% to Rs 25.70 crore. Interest cost in absolute terms was higher at Rs 0.11 crore against nil in the corresponding previous period. The depreciation was up by 16% to Rs 3.21 crore. Thus hurt by higher interest and depreciation cost the growth at PBT was restricted at 6% to Rs 22.38 crore.

• Finally, net profit was higher by 32% to Rs 18.85 crore after providing for taxation, which was lower by 48% to Rs 3.53 crore.
• The Company has exercised the option permitted under Section I l 5BAA of the Income-tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Deferred Tax Liability (net) as at 31st March 2019 and the estimate of tax expenses for the year ending 31st March 2020 have been re-measured. The resultant impact of Rs. 248 lakhs has been recognised in the current quarter ended 30^th September 2019.

Half yearly performance

Standalone sales for the quarter was up by 5% to Rs 353.79 crore and with OPM expand by 160 bps to 13.7%, the operating profit was up by 19% to Rs 48.50 crore. The PBT was up by 7% to Rs 47.99 crore largely hit by lower OI and higher depreciation. The EO was nil compared to an income of Rs 0.68 crore in the corresponding previous period. Thus the PBT after EO was up by 9% to Rs 47.99 crore. With taxation lower by 14% to Rs 12.41 crore the PAT was up by 20% to Rs 35.58 crore.

The stock hovers around Rs 1242.