• Sales for the period was higher by 18% to Rs 1393.46 crore. But value of production was up by 20% to Rs 1581.59 crore. Sales for the quarter was just 0.88 times of value of production for the period. Similarly the sale for corresponding previous period was 0.90 times of its value of production. Sales lower than value of production reflects inventory build-up which will get liquidated going forward.

• OPM expanded by 110 bps to 10.2% and that is largely due to sharp fall in material cost. The material cost as proportion of sales net of stocks was down by 390 bps to 57.3%. Though other cost heads witnessed a rise that could not fully offset the fall in material cost. The staff cost was up by 90 bps to 9.7%. The cost of traded goods was up by 110 bps to 5.8%. The OE was up by marginal 220 bps to 24%. Thus gained by higher sales as well as higher margin the OP was up by strong 32% to Rs 141.74 crore.

• With OI stand lower by 3% to Rs 38.69 crore, the growth at PBIDT was restricted at 22% to Rs 180.43 crore. And with interest cost zoom to Rs 4.33 crore against nil in the corresponding previous period and the depreciation was higher by 25% to Rs 33.72 crore, the PBT was up by 18% to Rs 142.38 crore.

• With taxation (net of deferred tax) for the period down by sharp 58% to Rs 17.55 crore the PAT was up by 59% to Rs 124.83 crore. The Company has decided to exercise the option permitted under section 115BAA of the Income Tax Act, 1961as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly the Company has recognized provision for Income tax for the six month ended 30 September 2019 and remeasured its Deferred Tax Asset basis the rate prescribed in the said section. The total impact of this change has been recognized in the statement of Profit and Loss for quarter ended 30 September 2019.

Half yearly performance

Sales for the period was up by 19% to Rs 3367.66 crore. With OPM expand by 80 bps, that together with higher sales facilitated 26% growth in operating profit to Rs 444.19 crore. The other income was down by 11% to Rs 66.12 crore and thus the PBIDT was up by 20% to Rs 510.31 crore. The PBT was up by 18% to Rs 437.28 crore hit by higher interest and depreciation. With taxation down by 6% to Rs 121.61 crore, the net profit was eventually up by 30% to Rs 315.67 crore.