Performance for the quarter ended June’07

The Company’s operations fall within a single reportable segment i.e. Home Appliances, wherein it predominantly operates in Air-Conditioning business which is seasonal in nature, hence, the first quarter results are not indicative of overall performance of the year.

For the first quarter ended June’07, the Company reported healthy 28% increase in Net Sales to Rs 148.49 crore on the back of increased volumes during the peak season.

The OPM for the period advanced by 200 bps to 12.5% leading the operating profit to a roabust growth of 52% to Rs 18.56 crore. The OPM expanded as a result of reduction in overall costs (as a % to sales). Though the raw material cost as % to sales increased by 130 bps to 64.7%, the Staff costs and other expenses depreciated by 90 bps and 280 bps to 3.5% and 18.3%, respectively.

Other income for the period surged by 89% to Rs 2.40 crore. The interest outgo declined by 45% to Rs 0.43 crore while the provision for depreciation increased by 68% to Rs 2.15 crore. Therefore, the PBT before EO stood at Rs 18.38 crore, up by 61%. There was an extraordinary income of Rs 2.12 crore towards foreign exchange gain on external commercial borrowings as against a forex loss of Rs 1.35 crore in the corresponding previous quarter. Subsequently, the PBT after EO stood at Rs 20.50 crore, up by 103%. After accounting for a taxation of Rs 3.12 crore (up by 158%), the PAT posted a growth of 96% at Rs 17.38 crore.

The Company has revised estimated useful life of its certain assets. As a result of this change additional depreciation aggregating of Rs 9.759 million (June 2006 quarter : Nil) is charged to the Profit and Loss account.

Valuation

The share is currently trading at around Rs 124.50 on the BSE. The EPS for the full year ended Mar’07 stands at Rs 8.4.