• Sales was down by 18% to Rs 160.25 crore with order execution and dispatch still hit by lingering impact of COVID pandemic. But the value of production was down by 25% to Rs 157.12 crore. Sales was 1.02 times of value of production. Sales of corresponding previous period was 0.93 times of VoP. Sales higher than Value of production for the quarter reflect liquidation of earlier period stocks.

• OPM expand by 300 bps to 13.7% and that is largely due to lower material cost. The material cost as % of sales net of stocks was down by 540 bps to 73.5%. The staff cost was up by 130 bps to 5.0%. But the OE cost was up by 20 bps to 7.6%.

• 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 2.29 crore, a fall of 42%. Other income excluding MTM loss/gain was Rs 13.32 crore (a growth of 122% from Rs 5.99 crore in the corresponding previous period).

Half Yearly Performance

Sale for the period was down by 39% to Rs 232.58 crore. With OPM contract by 30 bps to 10.6%, the operating profit was down by 40% to Rs 24.75 crore. After accounting for higher other income (up by 128% to Rs 38.03 crore) and higher depreciation (up by 10% to Rs 4.37 crore) the PBT was up by 8% to Rs 58.42 crore. Taxation was down by 18% to Rs 9.32 crore and thus the PAT was up by 15% to Rs 49.09 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. Company has received ' No Objection Certificate from RBI and BSE & NSE has also uploaded amalgamation scheme on their respective webistes.