• Sales for the quarter was down by 7% to Rs 456.69 crore. But the value of production was down by 8% to Rs 457 crore. Lockdown related to Covid Pandemic has forced the company to shutdown operation for 8 days of the March 2020 and this has resulted lower billing for the company affecting the top line it seems. Sales for the quarter was lower than value of production and that signals inventory built up, which will get liquidated going forward.
  
• OPM expanded by 120 bps to 7.6% and that is largely due to sharp fall in material cost (including cost of traded goods). While material cost as % to sales net of stocks was down by 1240 bps to 40.5%, the cost of traded goods was down by 90 bps to 6.3%. However the sub-contract charges, staff cost and OE (including project related OE) was up by 550 bps (to 13.8%), 150 bps (to 16.1%) and 500 bps (to 15.7%) respectively. Spurt in other expenses was largely as it include provision of liquidation damages of Rs 24 crore.  

Yearly performance

The sales was up by 3% to Rs 1433.30 crore. However with OPM contract by 20 bps to 2.8%, the operating profit was down by 4% to Rs 40.40 crore. With OI up by 32% to Rs225.50 crore, the PBIDT was up by 25% to Rs265.90 crore. The PBT before EO was up by 29% to Rs234.48 crore as interest cost and depreciation as % of sales stand lower or nearly flat. The EO Exp jumped up by 382% to Rs 10.61 crore and thus the growth at PBT after EO moderated to stand at 25% to Rs 223.87 crore. Taxation stood lower by 13% to Rs 60.39 crore and thus the PAT was up by 49% to Rs 163.48 crore.

Other developments

The Board at its meeting held on 6th June 2020, recommended a dividend of Rs. 1.40 per equity share {Face Value of Rs. 10/- per equity share) for the financial year 2019- 20. This dividend is in addition to the interim dividend of Rs. 5.74 per equity share paid for the financial year.