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Nelcastreported 9% rise in net profit to Rs7.8 crore on 12% rise in net sales to Rs158.82 crore for the first quarter ended June 2017. Steadyperformance at the operational level coupled with higher other income and moderate rise in interest and depreciation charges were the main reasons for the rise in profit for the quarter.
Nelcast is India's largest producer of Ductile Iron Castings and a leading producer of Grey Iron Castings. Their products cater to the Global Automotive, Tractor, Construction, Mining, Railways and General Engineering sectors.
Quarter Performance
The OPM during the first quarter ended June 2017 fell by 20 bps to 10% due to increased otherexpenses. Raw material cost (as a % to sales, net of stock) fell by 510 bps to 44.03%. Other expenses (% of sales net of stock) rose by 440bps to 21.4%. Employee expenses rose12 bps to 6.9%. Power and fuel expenses (% of sales net of stock) rose by 50 bps to 16.8%.
Thus the operating profit rose by 10% to Rs15.87crore. Other income stood at Rs50 lakh, higher by 6%. After 7% rise in depreciation cost to Rs3.33 crore and 9% rise in interest expense to Rs 1.63 crore, PBT rose 10% to Rs11.41crore. After 60 bps risein tax rate, tax provision stood 12% higher at Rs3.61 crore. Thereafter, net profit stood at Rs7.8 crore against profit of Rs7.13crore in the previous corresponding quarter, a rise of 12%.
Net sales for the FY 16rose 3% at Rs560.7 crore. Net profit stood at Rs31.88 crore against profit of Rs21.96 crore in previous corresponding period, a rise of 45%.
Shares of Nelcastare currently trading around Rs65 at BSE.
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