Moreover, OPM fell by 150 basis points to 10.9% on the back of rise in raw material cost and other expenses resulting operating profit to decline by 9% to Rs 13.55 crore. However, the surge in other income by 73% to Rs 4.21 crore has resulted PBDIT to grow by 2% to Rs 17.76 crore. Further, the fall in interest cost and effective tax rate helped the Company to post 15% growth net profit to Rs 11.70 crore.

Quarterly Performance:

Net sales witnessed marginal 3% growth to Rs 124.02 crore for the quarter ended September 2011, on account of 2% decline in its core Compression Systems business to Rs 102.34 crore. However, Transmission products business witnessed robust 35% growth to Rs 21.68 crore contributed 17% to the total sales.

Moreover, OPM fell by 150 basis points to 10.9% on the back of spike in raw material cost by 510 basis points to 56.2% and other expenses by 160 basis points to 12.8% to the adjusted net sales. However, staff cost fell by 170 basis points to 13.3% and Manufacturing expenses by 130 basis points to 7.3% of adjusted net sales. Thus, operating profit fell by 9% to Rs 13.55 crore. Moreover, the surge in other income by 73% to Rs 4.21 crore resulted marginal 2% growth in PBDIT to Rs 17.76 crore.

At PBIT level, margins from the Compression systems business fell by 410 basis points to 15% has resulted 23% decline in the segment profit to Rs 15.38 crore. However, the margins from the Transmission Products business expanded by 190 basis points to 2.6% has resulted 375% growth in segment profit to Rs 0.57 crore.

Further, the fall in interest cost by 45% to Rs 0.36 crore and 29% growth in depreciation to Rs 2.84 crore has resulted muted growth in PBT to Rs 14.56 crore. Thanks to the steep fall in tax rate by 1050 basis points to 19.5%, PAT grew 15% to Rs 11.72 crore. After accounting PPA (Prior Period Adjustments) Rs 0.02 crore net profit grew by 15% to Rs 11.70 crore.

Half Yearly Performance:

The Company posted robust growth in top line and bottom line for the first half year on account excellent performance in the quarter ended June 2011. It recorded robust 63% growth in net sales to Rs 336.04 crore for the half-year ended September 2011. OPM surged by 610 basis points to 15.5% resulting 166% growth in operating profit to Rs 52.12 crore. Other income also witnessed 74% growth to Rs 6.85 crore.

Moreover, The 37% fall interest cost to Rs 0.69 crore and 31% growth in depreciation to Rs 5.57 crore has resulted 190% surge in PBT to Rs 52.71 crore. Further, the fall in effective tax rate by 300 basis points to 28.4% has resulted PAT to grow by robust 203% to Rs 37.74 crore. After accounting Rs 0.02 crore as PPA net profit grew by 203% to Rs 37.72 crore.

Other Information:

• Debt is at Rs 15.41 crore as on 30^th September 2011 compared to Rs 24.71 crore as on 30^th September 2011. Further, Cash is at Rs 18.14 crore as on 30^th September 2011 compared to Rs 21.30 crore as on 30^th September 2010.
• The Scrip is down by 6% to Rs 514 at BSE, India on 19^th October 2011.