• Downside at top-line is largely due to crash in revenue of Lump-sum Turnkey Projects (LTP). The segment revenue of Consultancy & Engineering Projects (C&EP) registered 7% growth to Rs 273.33 crore. On the other hand the segment revenue of LTP crashed down by 94% to Rs 13.09 crore. Crash in sales seems partly due to completion of orders under execution and execution of fresh orders getting delayed. Contribution of C&EP to top-line increased to whopping 95% from 52% in corresponding previous period. But that of LTP was down to mere 5% from 48% in corresponding previous period.
  
• EBIT for the quarter was down by 53% to Rs 59.95 crore and the downside is largely due to EBIT loss at LTP division. On a lower sales unable to recover the fixed cost the segment profit of LTP was a loss of RS 19.41 crore compared to a profit of Rs 63.55 crore in the corresponding previous period. However the segment profit of C&EP was up by 24% to Rs 79.36 crore facilitated by higher sales and 380 bps expansion in its segment margin to 29%.
  
• Contraction in OPM was largely due to higher staff cost and higher sub contract payments. Staff cost as proportion to sales was higher by 1950 bps to 49.5%. Similarly the sub contractor payment was up by 440 bps to 10.6%. However the construction material cost and other expenses were down by 1000 bps (to 8.2%) and 840 bps (to 17.9%) respectively.
  
• Other income was down by 17% to Rs 66.28 crore, the interest cost was down by 55% to marginal RS 0.10 crore and the depreciation was down by 9% to Rs 5.84 crore. Thus the PBT was down by 41% to Rs 99.74 crore.
  
• Taxation stand lower by 42% (to Rs 33.64 crore) in absolute term and the tax rate was marginally lower at 33.7% compared to 34.6% in corresponding previous period. Thus the PAT was down by 40% to RS 66.10 crore.
  
• Prior period tax was a write back of Rs 3.82 crore compared to a provision of Rs 1.25 crore in the corresponding previous period. Thus the net profit was down by 36% to Rs 69.92 crore.

Yearly performance

Standalone sales were lower by 13% to Rs 1495.84 crore. Dragged by lower sales and 180 bps contraction in OPM, the operating profit was down by 25% to Rs 160.01 crore. After accounting for lower other income, lower interest cost and higher depreciation cost, the fall at PBT was 16% to Rs 392.04 crore. Taxation was down by 13% to Rs 138.28 crore. Thus the PAT was lower by 18% to Rs 253.76 crore. Prior period tax was a write back of Rs 4.55 crore compared to a provision of Rs 1.25 crore in the corresponding previous period. Thus the net profit was down by 16% to Rs 258.31 crore.

LTP registered a segment profit of Rs 12.18 crore (down 78%) on a sale of Rs 503.56 crore, a fall of 34%. The segment profit of C&EP was lower by 8% (to Rs 227.76 crore) on a sale of Rs 227.76 crore, which was down by 8%.

Consolidated yearly performance

Sales was lower by 12% to Rs 1524.99 crore and that together with 170 bps contraction in OPM, the operating profit was down by 24% to RS 170.22 crore. Eventually the net profit was down by 16% to Rs 261.52 crore. While the segment profit of C&EP was down by 7% (to Rs 239.34 crore) on a sales of Rs 1021.43 crore (up by 5%) that of LTP was down by 78% (to Rs 12.18 crore) on a sale of Rs 503.56 crore (down 34%).

The Board of Directors of the Company at its meeting held on May 25, 2016, inter alia, has recommended final dividend of Rs. 2/- per share (on the face value of Rs. 5/- each) on the equity shares of the Company for the financial year 2015-2016. The final dividend is subject to approval of shareholders in the Annual General Meeting.

The stock hovers around Rs 180.45.