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After excellent performance during the 1st quarter ended March 2010, Vesuvius India continued to post steady growth during the second quarter ended June 2010 as well. The top-line grew 16% to Rs 110.08 crore primarily assisted by excellent demand growth from the user industries. However higher traded goods cost during the quarter resulted in marginal dip of 50 bps in OPM margin to 19.1% thus resulting in operating profit growth of 13% to Rs 21.07 crore.
After accounting for finance charges the PBT posted growth of 11% to Rs 18.13 crore. The net profit for the period increased 12% to Rs 11.95 crore.
Vesuvius India is primarily a manufacturer and trader of refractory.
Performance for the quarter ended June 2010-
The company managed to post steady performance during the previous quarter ended June 2010 on a year-on-year basis, primarily driven by steady demand growth from the user industries. The top-line increased 16% to Rs 110.08 crore. However higher traded goods cost during the quarter resulted in marginal dip of 50 bps in OPM margin to 19.1%. The traded goods cost as a percentage of net adjusted sales rose 700 bps to 17.6% while the raw material expenses corrected 550 bps to 36%. Thus the resultant operating profit increased 13% to Rs 21.07 crore.
The Interest (net) credit during the quarter under review stood at Rs 0.29 crore as compared to an interest credit of Rs 0.14 crore during the corresponding period last year. The depreciation allowance increased 32% to Rs 3.23 crore. Thus the PBT posted an impressive growth of 11% to Rs 18.13 crore. The tax expense stood at Rs 6.18 crore resulting in a net profit for the period to the tune of Rs 11.95 crore indicating an increase of 12%.
Performance for the half-year ended June 2010-
For the half-year ended June 2010, the Net Sales / Income from Operations of Vesuvius India stood at Rs 209.76 crore, which was higher by 26% when compared with corresponding period of the previous year. The company's performance during the 1st quarter ended March 2010 was excellent though in the second quarter the performance was steady. The OPM (Operating Profit Margin) increased by 190 basis points to 18.8%. The resultant Operating Profit for the half-year ended June 2010 was Rs 39.49 crore which was 41% higher when compared with half-year ended June 2009 figures.
The cost of consumption of raw materials fell 60 bps to 39.1% of net adjusted sales while the cost of traded goods (as a % of net sales net of stock adjustment) increased from 14.4% to 15.3%. The resultant PBIDT was Rs 39.49 crore which was 41% higher when compared to the corresponding period last year. The Interest (net) credit stood at Rs 0.57 crore as compared to an Interest credit to the tune of Rs 0.17 crore during the corresponding period last year. The depreciation expense increased 36% to Rs 6.29 crore. Consequently, the PBT of Vesuvius India stood at Rs 33.775 crore, indicating an increase of 43% when compared with corresponding period last year. After affecting the tax expenses which was higher at 34% the net profit increased 32% to Rs 22.15 crore during the six-month period ended June 2010 on a year-on-year basis.
The promoters holding and promoter group shareholding from quarter ended March 2010 to quarter ended June 2010 has remained unchanged at 55.57%.
Currently the shares of Vesuvius India are quoting at around Rs 269 on the BSE.
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