• Sharp 1170 bps expansion in OPM was largely due to sharp fall in traded goods. As % to sales cost of traded goods stood lower by 1170 bps to 30.6%. Similarly the staff and OE was down by 60 bps and 90 bps respectively. However the material cost was up by 240 bps to RS 23%.

Nine month performance

Sales was down by 18% to Rs 1823.20 crore and with OPM expand by 200 bps to 14.9%, the operating profit was down by 6% to Rs 271.58 crore. The PBT was down by 13% to Rs 257.6 crore after accounting for lower OI, lower interest and higher depreciation. With taxation stand lower by 20% to Rs 64.72 crore, the PAT was down by 10% to Rs 192.88 crore.  

Other developments

The company in Dec 2020, has subscribed to 27.55% equity shares in Sunstrength Renewables (SRPL), a company incorporated pursuant to the requirements of the Electricity Act 2002 and its rules for commissioning a captive generating plant for generation and supply of electricity to SKF. It is in the final stage of commissioning. Accordingly the consolidated results for the Quarter ended December 31, 2020 are prepared as SRPL is considered as an associate under Ind AS 28, investments in Associates and JV.