• Sales was lower by 19% to Rs 21.77 crore but the value of production was lower by just 9% to Rs 24.17 crore. Value of production higher than sales for the quarter means inventory built up which will get liquidated going forward.

• Operating profit margin for the quarter expanded by 90 bps to 12.7% and this can be attributed to sharp fall in material cost. Material cost as proportion to sales net of stocks was down by 260 bps to 60.9%. But staff cost as proportion to sales net of stocks was up by 210 bps to 10%. The other expenses were up by 100 bps to 17.7%. Thus the de-growth at operating profit moderated to 14% (to Rs 2.76 crore) on OPM expansion.

• Other income was higher by 980% to Rs 0.04 crore. However the interest and depreciation cost was higher by 11% and 38% respectively to Rs 0.11 crore and Rs 0.79 crore. Thus the PBT was down by 25% to Rs 1.90 crore.

• Taxation in absolute term was down by 25% to Rs 0.62 crore but the effective tax rate for the quarter stood flat at 32.4% compared to 32.4% in the corresponding previous period. Thus the PAT was eventually lower by 25% to Rs 1.28 crore.

Nine month performance

Standalone sales were lower by 7% to Rs 67.65 crore. But with operating profit margin expand by 180 bps to 12.3%; the operating profit was up by 9% to Rs 8.34 crore. After accounting for lower other income, higher interest and depreciation the PBT was up by marginal 1% to Rs 6.02 crore. The EO expenses were Rs 0.05 crore compared to nil in the corresponding previous period. Thus PBT after EO was flat at Rs 5.97 crore. After accounting for taxation (up 0% to Rs 1.94 crore) the PAT was flat at RS 4.03 crore.