• The value of production for the quarter was up by 6% to Rs 957.06 crore even while the sales (excluding other operating income) was up by 1% to Rs 939.17 crore. Sales lower than value of production reflects build up in inventory or delay in delivery of finished products. According to the Q3FY16 results press release of the company, there was minor procedural delays affecting volumes for the quarter. The volume sales of the company for the quarter were 166 MW lower from 200 MW in the corresponding previous period.
• Operating profit margin expanded by marginal 20 bps to 16.9% and this is largely due to sharp fall in material cost. However significant rise in other cost heads the positive impact of lower material cost minimized. Material cost as proportion to sales net of stocks was down by 830 bps to 57.3%. But the staff cost, EPC and OE was up by 100 bps (to 2.6%), 380 bps (to 15.3%) and 270 bps (to 8.3%) respectively.

Nine month performance

Sales were higher by 45% to Rs 2585.49 crore but with 50 bps contraction in OPM to 15.3%, the operating profit was higher by 40% to Rs 395.90 crore. After accounting for higher other income, higher interest and depreciation cost, the PBT before forex loss was up by 51% to Rs 348.95 crore. The forex loss was Rs 17.98 crore compared to a gain of Rs 5.03 crore in the corresponding previous period. Thus the PBT after forex loss was up by 40% to Rs 330.97 crore. Eventually the net profit was higher by 36% to Rs 242.63 crore strained further by 53% increase in tax provision to Rs 88.34 crore.

Order book update

Order intake in Q3FY16 is about 110 MW. So order book of the company as end of December 31, 2015 was 1146 MW. Current order book will be executed in next 12-15 months. Of the order book about 40% is from the state of MP, 20% from Rajasthan, 20% from Gujarat and rest from AP.

The stock hovers around Rs 255.70.