For the nine month ended September 2007, HAIL reported 41% growth in net sales at 632.30 crore with OPM dipping 160bps at 11.8% and net profit was up 12% at Rs 48 crore.

From the quarter beginning January 1, 2007, the Company has refined the accounting practice for revenue recognition under the Accounting Standard 7, issued by ICAI. Consequent to the refinement, the profit before tax for the nine months period is decreased by Rs 1.90 crore and profit for the quarter is decreased by Rs 1 crore.

Quarterly Performance

For the quarter ended September 2007, as compared to the corresponding quarter last year the net sales grew 50% at Rs 227.10 crore. OPM of the company however dipped 70bps at 12.6% in the quarter on account of increase in raw material consumed and other expenses as a percentage of sales (net of stock adjustments). Raw material consumed increased 180bps at 52.2% and other expenses increased 230bps at 14.9%. Staff costs decreased 20bps at 16.9% and purchase of traded goods decreased 290bps at 3.5% as a percentage of sales (net of stock adjustment). The resultant operating profits grew 42% at Rs 28.60 crore.

As compared to the corresponding quarter last year other income surged 750% at Rs 1.70 crore with interest cost up 75% at Rs 70 lakh and depreciation charge down 9% at Rs 2.10 crore. The resultant PBT increased 56% at Rs 27.50 crore as compared to the corresponding quarter last year. Tax provision for the quarter including deferred tax & FBT increased 254% at Rs 9.20 crore with the effective tax rate increasing to 33.8% against 14.8% in the corresponding previous quarter. The resultant PAT of the company was up 22% at Rs 18.30 crore.

Nine month Performance

For the nine months ended September 2007, the net sales grew 41% at Rs 632.30 crore as compared to the corresponding period last year. OPM dipped 160bps at 13.4% on the back of higher raw material cost and other expenditure. As a % of sales (net of stock adjustments) raw material consumed increased 210bps at 53.9% and other expenditure increased 70bps at 14% whereas staff costs and purchase of traded goods decreased 20bps at 15.9% and 90bps at 5.3% respectively. The resultant operating profits grew 24% at Rs 74.50 crore.

Other income for the period grew 86% at Rs 2.60, interest cost dipped 25% at Rs 1.50 crore and depreciation charge decreased 10% at Rs 6.50 crore, and the resultant PBT improved 32% at Rs 69.10 crore. With tax provision including deferred tax & FBT at Rs 20.30 crore up 114%, the resultant net profit growth was restricted to 14% with net profit at Rs 48.80 crore.

Valuation

Post declaration of results, the shares of the company are trading at Rs 1633.80 up 4.6% on BSE.