• Value of production for the quarter was higher by 32% to Rs 42.13 crore. However the sales excluding other operating income was higher by 52% (to Rs 41.93 crore). The net sales including the other operating income was finally higher by 54% to Rs 43.14 crore.

• Contraction in operating margin for the quarter to the extent of 220 bps is largely on account of higher trading goods for the quarter. While material cost for the quarter as a proportion of sales net of stocks was lower by 160 bps (to 40.9%), the staff cost was lower by 30 bps (to 3.8%); the distributor compensation was lower by 140 bps (to 11.5%). However the purchase of traded goods (PTG) was higher by 240 bps (to 15.3%) and that of other expenses (OE) was higher by 50 bps (to 10.9%). Higher PTG cost along with other expenses is more than the gain from other cost heads, thereby resulting in contraction in OPM. Thus limited the operating profit was higher by 37% (to Rs 7.64 crore).

• Other income was lower by 67% to Rs 0.01 lakh, the PBIDT was higher by 36% to Rs 7.65 crore. The interest cost was lower by 50% to Rs 0.13 crore and depreciation cost was lower by 1% to Rs 1.68 crore. As result the PBT before forex gain and EO were higher by 60% to Rs 5.84 crore. Forex gain for the quarter as well as corresponding previous period was nil. Thus PBT before EO was higher by 60% to Rs 5.84 crore. EO income (gross of tax) for the quarter as well as corresponding previous period was nil. Thus the PBT after EO was higher by 60% to Rs 5.84 crore.

• PAT was finally higher by 58% to Rs 6.08 crore limited by higher taxation which was up by 64% to Rs 1.97 crore. After accounting for prior period tax of Rs 7 lakh for the quarter as against nil in the corresponding previous period the net profit was eventually higher by 55% to Rs 3.80 crore.

Eimco Elecon (India) (Eimco Elecon) was incorporated in 1974 and is a joint venture between Tamrock OY, Finland (25% equity stake) and Elecon Engineering Company, India, and its associates (47%). It produces a wide range of underground mining machinery. The range of products includes Electro hydraulic side dump loaders, load haul dumpers, air powered rocker showel loaders and low profile dump trucks. It also manufactures blasthole drills, hydraulic cylinders and air motors.

Eimco Elecon's major clients are the subsidiaries of Coal India Limited Viz. Bharat Cooking Coal. Eastern Coalfield etc. Other clients include Singanery Collieries Co. Uranium Corporation of India. Bharat Gold Mines, Hindustan Copper, Hindustan Zinc, Larsen & Toubro. Ferro Alloys Corporation etc.

The sales were up by 11% to Rs 163.70 crore. The operating profit was lower by 17% to Rs 26.11 crore as the OPM contract by 540 bps to 15.9%. Other income was higher by 47% to Rs 50 lakh. The interest cost was higher by 24% to Rs 1.09 crore, the depreciation was lower by 6% to Rs 6.95 crore. Thus the PBT before forex gain and EO was lower by 21% to Rs 18.57 crore. Forex gain was Rs 37 lakh compared to a loss of Rs 23 crore in the corresponding previous period. Thus, spurred the fall in PBT before EO was limited to 19% to Rs 18.94 crore. EO income (gross of tax) was Rs 16 lakh as against nil in the corresponding previous period. PBT after EO was lower by 18% to Rs 19.10 crore. Taxation was lower by 21% to Rs 6.43 crore. Thus the PAT was lower by 17% to Rs 12.67 crore. After accounting for PPT write back of Rs 13 lakh the net profit was lower by 16% to Rs 12.80 crore.

Valuation

The stock quotes around Rs 268.