• Sales was down by 61% to Rs 72.34 crore as the operations was shut due to lockdown in April 2020 and despatches delayed with clients not ready to receive as they are gradually open up with restrictions in operations and labour issues. But the value of production was down by 66% to Rs 71.33 crore. Sales higher than Value of production reflect liquidation of earlier period stocks.  

• OPM contract by 700 bps to 4.0% and that is largely due to higher staff cost and OE. The material cost as % of sales net of stocks was down by 560 bps to 73.6%. The staff cost was up by 740 bps to 11%. But the OE cost was up by 400 bps to 11.4%.  

• Other income net of MTM adjustment for fair value of investment) was an income of Rs 22.41 crore, a jump of 235%. Other income is net of difference between the cost and market value of investment (MTM loss/profit of investment) as per Ind AS 109. Other income is net of MTM gain of Rs 18.55 crore, a jump from modest income of Rs 0.88 crore in the corresponding previous period. Other income excluding MTM loss/gain was Rs 3.86 crore (a fall of 34% from Rs 5.82 crore in the corresponding previous period).  

• The interest cost was nil for the period as well as corresponding previous period. The depreciation was higher by 16% to Rs 2.17 crore. Thus the PBT was down by 9% to Rs 23.11 crore. The taxation was lower by 55% to RS 3.82 crore and thus the PAT was up by 14% to Rs 19.29 crore.  

Yearly Performance 

Sale for the quarter was up by 4% to Rs 858.58 crore. With OPM expand by 130 bps to 12.6%, the operating profit was up by 15% to Rs 107.79 crore. After accounting for lower other income (down by 60% to Rs 14.56 crore) and higher depreciation (up by 26% to Rs 8.99 crore) the PBT was down by 8% to Rs 113.36 crore. Taxation was down by 37% to Rs 23.98 crore and thus the PAT was up by 5% to Rs 89.38 crore.  

Other developments 

The Board of Directors of the Company, at its meeting held on 11th May, 2020 have considered and approved a Scheme of Amalgamation (the "Scheme") between the Voltamp Transformers Limited ("VTL" or "Company"} and Kunjal Investment Private Limited ("KIPL"} under Sections 230 to 232 read with section 66 and other applicable provisions of the Companies Act, 2013 ("2013 Act"). The Scheme is subject to the receipt of requisite approval from the statutory authorities including SEBI, Stock Exchanges, the National Company Law Tribunal, the Reserve Bank of India and the respective shareholders and creditors of the Company and Kunjal Investments Pvt. Ltd (KIPL). The scheme contemplates the amalgamation of KIPL with the Company and the dissolution without winding up of KIPL pursuant thereto. The appointed date for the scheme is 1st June 2020 or such other date as may be fixed or approved by the National Company Law Tribunal (NCLT) as and when applicable. 

As end of June 2020, the company has filed an application with RBI and Stock Exchanges BSE & NSE for obtaining 'No Objection Certificate' to proceed further for the Scheme of Amalgamation (the "Scheme") between Voltamp Transformers Limited ("VTL" or "Company") and Kunjal Investments Private Limited ("KIPL") under Sections 230 to 232 read with section 66 and other applicable provisions of the Companies Act, 2013 ("2013 Act").