Quarterly Performance

For the quarter ended June 2008, as compared to the corresponding quarter last year the net sales grew 10% at Rs 236.82 crore. OPM of the company improved 130bps at 12.3% in the quarter on account of decrease in raw material consumed as a percentage of sales (net of stock adjustments). Raw material consumed decreased 720bps at 49% whereas purchase of traded goods increased 50bps at 5.5%, Staff costs increased 310bps at 18.3% and other expenses increased 210bps at 15% as a percentage of sales (net of stock adjustment). The resultant operating profits grew 23% at Rs 29.15 crore.

As compared to the corresponding quarter last year other income surged 678% at Rs 2.49 crore with interest cost down 75% at Rs 16 lakh and depreciation charge was down 24% at Rs 1.58 crore. The resultant PBT before EO increased 40% at Rs 29.90 crore as compared to the corresponding quarter last year. EO for the quarter of Rs 3.99 crore relates to prior period amounts payable for various services rendered by the group companies. PBT after EO increased 22% at Rs 25.91 crore. Tax provision for the quarter including deferred tax & FBT increased 9% at Rs 8.11 crore with the effective tax rate decreasing to 31.3% against 34.9% in the corresponding previous quarter. The resultant PAT of the company was up 29% at Rs 17.80 crore. Net Profit before EO grew 57% at Rs 21.79 crore.

Half Yearly Performance

For the half-year ended June 2008, the net sales grew 13% at Rs 456.92 crore as compared to the corresponding period previous year. OPM improved 160bps at 12.9% over the corresponding period previous year on the back of lower raw material consumed. As a % of sales (net of stock adjustments) raw material consumed decreased 600bps at 50.9% whereas staff costs increased 180bps at 17.1%, other expenditure increased 220bps at 14.6% and purchase of traded goods increased 90bps at 5%. The resultant operating profits grew 28% at Rs 58.76 crore.

Other income for the period jumped 286% at Rs 3.32 crore, interest cost dipped 73% at Rs 21 lakh and depreciation charge decreased 6% at Rs 4.18 crore, and the resultant PBT expanded 39% at Rs 57.69 crore. EO for the period pertains to prior period expenses of Rs 17.41 crore. PBT after EO dipped 3% at Rs 40.28 crore. With tax provision including deferred tax & FBT at Rs 11.59 crore up 4% resulting in effective tax rate up 190bps at 28.8%, the resultant net profit dipped 6% at Rs 28.69 crore. The reported net profit was down 6% at Rs 28.69 crore on the back of tax of earlier years of Rs 77 lakh debited in corresponding period previous year.

Valuation

Post declaration of results, the shares of the company are trading at Rs 1372.