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Revenue for Q2 FY11 has gone up by 9% to Rs 120.08 crore. The revenue fell by 10% Y-o-Y in transmission products to Rs 16.07 crore while revenue in compression systems segment was up 13% Y-o-Y to Rs 104.01 crore. The OPM was decreased by 570 bps to 12.4% due to rise in manufacturing expenses, staff cost and other expenditure. The net profit decreased by 27% to Rs 10.17 crore due to fall in margin.
However one must note that last year in his quarter the company's OPM was abnormally high and hence current quarter margin should not be treated as cause of worry. Its better to go by the first half performance.
Revenue for H1 FY11 has gone up by 27% to Rs 206.76 crore. The revenue fell by 20% Y-o-Y in transmission products to Rs 21.99 crore while revenue in compression systems segment was up 37% Y-o-Y to Rs 184.77 crore. The OPM has decreased by just 46 bps to 9.5%. The net profit increased by 36% to Rs 12.46 crore.
Performance for the H1 FY11
Revenue has gone up by 27% to Rs 206.76 crore. The revenue fell by 20% Y-o-Y in transmission products to Rs 21.99 crore while revenue in compression systems segment was up 37% Y-o-Y to Rs 184.77 crore. The OPM was decreased by just 46 bps to 9.5%. The operating profit was up by 21% Y-o-Y at to Rs 19.56 crore.
The PBIT margin in compression system witnessed a rise of 110 basis points to 18.4% causing the PBIT to rise by 46% to Rs 33.91 crore while in transmission products segment there was loss at PBIT level of Rs 4.18 crore.
Other income increased by 56% to Rs 3.94 crore. Depreciation increased by 26% to Rs 4.26 crore. Tax outgo stood at Rs 6.35 crore. After considering prior period adjustment, the net profit increased by 36% to Rs 12.46 crore.
Promoters Holding
The promoters hold 55.85%.
Outlook is encouraging
While compression segment will continue to do well riding on the uptrend in the industrial capex cycle, transmission product division is also expected to post strong growth in the second half.
Valuation
The scrip is trading at Rs 571 at BSE on 28th November 2010.
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