• Sharp 110 bps expansion in OPM to 11.3% is largely due to fall in all cost heads barring material cost. Material cost as % of sales was up by 40 bps to 57.7%. However the staff cost was down by 10 bps (to 9.6%), cost of traded goods was down by sharp 220 bps (to 3.6%) and that of OE was down by 290 bps to 21.1%.

• Tax expense for the period and consequently, the PAT for the quarter ended Sep 2020 is not comparable with the corresponding figures of the previous period as the company had decided to exercise the option permitted under Section 115BAA of the Income Tax Act 1961 as introduced by the Taxation Laws (Amendment) Ordinance 2019, which contributed to increase in PAT by Rs 19.80 crore during the quarter ended Sep 2019. Excluding this one-time benefit in the quarter ended Sep 2019, PAT growth for quarter ended Sep 2020 against previous quarter ended Sep 2019 is Rs 23.59 crore.

Half-yearly performance  

Sales for the period was up by 22% to Rs 2626.52 crore. With OPM contract by 450 bps to 8.7%, the operating profit was down by 49% to Rs 227.80 crore. The other income was down by 26% to Rs 49.03 crore and thus the PBIDT was down by 46% to Rs 276.83 crore. The PBT was down by 55% to Rs 197.76 crore hit largely by higher depreciation. With taxation down by 57% to Rs 52.68 crore, the net profit was eventually down by 54% to Rs 145.09 crore.