Quarterly Performance

Eimco Elecon posted strong growth of 39% to Rs 51.39 crore for the quarter ended March'09. Other operating income increased by 40% to Rs 0.82 crore and total income from operation grew by 39% to Rs 52.21 crore. Operating profit margins expanded by 60 bps to 21.8% as a result operating profit increased by 44% to Rs 11.41 crore. The healthy expansion in margins is due to fall in the consumption cost and other expenditure as percentage to net sales, net of stock adjustment by 510 bps to 49.7% and 210 bps to 10.6%. Other income declined from Rs 0.19 crore in the corresponding year to Rs 0.02 crore in the current quarter. Interest cost increased by 71% to Rs 0.31 crore and depreciation declined by 5% to Rs 1.76 crore resulting PBT to grew by 53% to Rs 9.37 crore. The fall in the effective tax rate by 1040 bps to 30.9% boosted PAT to grow by 80% to Rs 6.47 crore. Absence of EO income in the quarter as against of Rs 0.80 crore on the account of Profit on sale of investment in the corresponding period restricted the net profit to grow by 47% to Rs 6.47 crore.

For the year ended March'09, the net sales increased by 24% to Rs 143.71 crore. Other income from operation increased by 85% to Rs 4.02 crore leading total income from operation to grow by 25% to Rs 147.74 crore. Operating profit margins eroded by 200 bps to 21.2% restricting operating profit to grow by 14% to Rs 31.31 crore. Interest outgo declined by 13% to Rs 0.88 crore and depreciation remains flat at Rs 7.42 crore. Resultantly, PBT increased by 19% to Rs 23.36 crore. The fall in the effective tax rate by 130 bps 34.8% boosted PAT to increase by 21% to Rs 15.23 crore. Absence of EO income in the quarter (as against of Rs 0.80 crore) restricts net profit to grow by 14% to Rs 15.23 crore.

The scrip was hovering at Rs 169.50 on BSE

Promoters share holding increased to 74.05% as on 31^st March'09 from 73.17% as on 31 March'08.

The company has declared the dividend of 40% (Rs 4 per equity share of Rs 10 each) for the year 2008-08.