• Downside in revenue is largely due to lower revenue of EXIM business. While the segment revenue of domestic business was up by marginal 1% to Rs 437.95 crore, the segment revenue of EXIM business was down by 19% to Rs 1130.68 crore (or 72% of sales). The EXIM revenue for corresponding previous period include SEIS Income of Rs 84.37 crore compared to nil for the quarter, as no notification has been issued by GoI for SEIS benefits. Excluding the SEIS income in corresponding previous period, the EXIM revenue was down by 14% to Rs 1130.68 crore due to COVID which disturbed imports before COVID lockdown and also exports post announcement of lockdown. 

• PBIT was down by 8% to Rs 382.20 crore as segment profit of EXIM stay low. EXIM business registered a segment profit of Rs 342.46 crore, a fall of sharp 13% hit by lower sales as well as 230 bps contraction in segment margin to 30.3%. The segment profit of Domestic was up by 75% to Rs 39.74 crore largely due to sharp expansion in segment margin over and above margin growth in sales. The segment margin of domestic witnessed a sharp expansion of 380 bps to 9.1%.   

Consolidated sales for the quarter were down by 14% to Rs 1584.31 crore. But with OPM expand by 500 bps to 30.4%, the operating profit was up by 2% to Rs 481.11 crore. After accounting for lower OI, higher interest and depreciation the PBT was down by 16% to Rs 401.65 crore. EO for the quarter was an income of RS 9.23 crore and nil in corresponding previous period. Thus the PBT after EO was down by 14% to RS 410.88 crore. With taxation (net of deferred tax) stand lower by 26% to Rs 97.28 crore, the PAT was down by 9% to Rs 313.60 crore. With prior period tax stand at RS 0.13 crore, a swing of RS 0.14 crore, the net profit before share of profit from JV and minority interest was down by 9% to Rs 313.47 crore. After accounting for lower share of profit from associate (down 59% to Rs 4.04 crore) and higher minority interest (up at Rs 5.99 crore of share of profit compared to a share of loss of RS 1.44 crore in corresponding previous quarter) the net profit was down by 13% to Rs 311.52 crore.

Yearly performance 

Standalone sales for the period was down by 6% to Rs 6473.79 crore. The OPM was flat at 25.9% and thus the OP was down by 6% to Rs 1674.93 crore. After accounting for lower OI, higher interest and depreciation, the PBT was lower by 17% to Rs 1405.59 crore. With EO expense stand at RS 881.63 crore against nil in corresponding previous period, the PBT after EO was down by sharp 69% to Rs 523.96 crore Taxation in absolute terms was lower by 69% to Rs 148.18 crore and the tax rate was at 10.5% compared to 28.0% in corresponding previous period. Thus the PAT was down by 69% to Rs 375.78 crore.  

Consolidated sales for the period was lower by 6% to Rs 6539.42 crore. But with OPM stand higher by 20 bps to 25.9%, the operating profit was down by 5% to Rs 1693.80 crore. And the PBT before EO was down by 18% to Rs 1356.78 crore. With EO expense stand at RS 851.82 crore (against nil) the PBT after EO was down by sharp 69% to Rs 504.96 crore. Eventually the net profit attributable to owners was down by 67% to Rs 404.47 crore.  

Final Dividend 

The Board of Directors has proposed final Dividend of Rs.2.85 Per equity share (face value off 5 per equity share) amounting to Rs 173.65 Crore. The interim dividend@ 15% {i.e., 0.75 per share of Rs 5 each) amounting to, 45.70 crore declared for 2019-20 was paid in February, 2020. 

Other Developments 

Indian Accounting Standard {Ind AS)-116 •teases" became effective from 01.04.2019 and the company has adopted the same using modified retrospective transition method where at the date of initial application, the lease liability is measured at the present value of remaining lease payments and right of use asset has been recognised at an amount equal to the lease liability. Accordingly, the comparative information for earlier periods is not restated. Application of this standard has resulted a net decrease in Profit before Tax of current period by f 30.24 crores (increase in Depreciation & Amortization expenses and finance cost by ,s8.90 crores and, 28.00 crores respectively and decrease in other expenses by, 56.66 crores). Similarly, application of this standard has resulted a net decrease in Profit before Tax of current period by f 32.27 crore (increase in Depreciation & Amortization expenses and Finance Cost by, 63.94 crore and, 31.53 crore respectively and decrease in Other Expenses by, 63.20 crore) in consolidated financial results.