• Downside in revenue was largely on account of extended monsoon in the state of Gujarat which impacted the mining and sales of lignite. Moreover the lower industrial activity has also impacted the lignite off take. Mining sales was lower by 61% to Rs 133.47 crore (or 70% of total sales) but the revenue of power was lower by 39% to Rs 56.88 crore.

• Sharp 1580 bps contraction in operating margin was largely on account of higher staff cost, over burden removal, mine closure expenses and other expenses. Lower sales is not unable the higher fixed cost dragged the margin down it seems. Staff cost as % to sales net of stocks was higher by 570 bps to 13.3%, the overburden removal was up 500 bps to 19.7%. Similarly the mine closure expenses were up 500 bps to 7.6% and the other expenses was up 350 bps to 8.2%. The clean energy charges too were up by 50 bps to 3.1%. Though the royalty expenses and P&F expenses were lower by 80 bps and 160 bps to 4% and 3.4% respectively that is not good enough to offset the rise in other cost dragging down the OPM to 41.1%. Thug hit by both lower sales and lower margin the operating profit was lower by 67% to Rs 72.11 crore.

• Other income jumped by 51% to Rs 30.50 crore. The interest cost was nil for the quarter as well as corresponding previous period. The depreciation was higher by 2% to Rs 30.56 crore. Thus the PBT was lower by 71% to Rs 72.05 crore. EO expenses for the quarter as well as corresponding previous quarter were nil.

• The taxation was higher by 68% to Rs 25.73 crore and the tax incidence was also higher at 35.7% compared to 32.4%. Thus the PAT was eventually lower by 73% to Rs 46.32 crore. 

Half year performance

Sales were higher by 38% to Rs 545.34 crore. The operating profit was lower by 49% to Rs 245.44 crore hit by lower sales and 1030 bps contraction in OPM to 45%. The other income was lower by 18% to Rs 67.05 crore, the interest cost was nil for the quarter as well as corresponding previous period. The depreciation was higher by 1% to Rs 59.98 crore. Thus the PBT was lower by 50% to RS 252.50 crore. The taxation was lower by 48% to RS 87.50 crore. The PAT was lower by 51% to Rs 165.00 crore.  

The stock hovers around Rs 107.65.