Quarter Performance

The company's operating income crashed by 52% to Rs 52.12 crore in June 09 quarter owing to both its segments. Its compression systems segment's net sales declined by notable 50% to Rs 42.34 crore while Transmission products segment's sales crashed by 57% to Rs 9.78 crore. Its operating profit margin (OPM) worsened further from 9.7% in June 08 quarter to (-7.4) % in June 09 quarter courtesy increase in overall costs. It led to operating loss of Rs 3.87 crore in June 09 quarter against operating profit of Rs 10.52 crore in June 08 quarter. Its raw material cost, as % to sales net stock adjusted, grew by 420 bps to 63%. Its manufacturing cost grew by 90 bps to 8%. Its other expenditure increased by 270 bps to 15%. Its staff cost zoomed ahead by 850 bps to 21%.

Segmentwise, the PBIT margin of its compression systems reduced by 1040 bps to 1% leading to 95% crash in its PBIT to Rs 0.44 crore. The PBIT margin of its transmission products segment dipped from 22% in June 08 quarter to (-9) % in June 09 quarter. Thus it recorded LBIT of Rs 0.84 crore in June 09 quarter against PBIT of Rs 4.91 crore in June 08 quarter.

The company recorded loss before tax of Rs 4.98 crore in June 09 quarter from PBT of Rs 9.80 crore largely driven by depreciation cost. Its depreciation cost grew by 31% to Rs 1.60 crore. Its other income declined by 8% to Rs 0.89 crore. Its interest cost reduced by 15% to Rs 0.40 crore. On accounting its tax provision, its net loss stood at Rs 4.87 crore in June 09 quarter against net profit of Rs 6.20 crore in June 08 quarter.

The promoters' share in the total shareholding remains unchanged at 55.85% in Jun 09 quarter. The promoters' have pledged ‘nil' shares of the company.

Currently the scrip is trading at Rs 388 on BSE.