It seeks to provide a competitive edge to its customers through a wide variety of standard high quality products as well as items customized to their requirements such as special purpose machines, metalworking tools, customized tooling solutions and engineered products.

June 2016 quarter results

In quarter ended June 2016, sales fell 2% to Rs 154.79 crore. OPM fell 340 basis points from 12.9% to 9.4% which saw OP fall 28% to Rs 14.62 crore.

Other income grew 154% to Rs 3.45 crore. Interest cost was nil as the company is a debt free company.

As depreciation grew 3% to Rs 6.14 crore, PBT fell 24% to Rs 11.93 crore. EO profit was NIL against Rs 6.47 crore. Thus PBT after EO was down 46% to Rs 11.93 crore. Provision for taxation fell 25% to Rs 4.73 crore after which PAT fell 55% to Rs 7.20 crore.

FY 2016 results

For the FY 2016, sales stagnated at Rs 570.29 crore. OPM fell 250 basis points from 10.5% to 8.1% which saw OP fall 24% to Rs 45.92 crore. Other income grew 61% to Rs 8.90 crore.

As depreciation fell 6% to Rs 24.11 crore, PBT fell 23% to Rs 30.71 crore. EO profit was NIL against Rs 6.47 crore. Thus PBT after EO was down 34% to Rs 30.71 crore. Provision for taxation fell 23% to Rs 9.97 crore after which PAT fell 38% to Rs 20.74 crore.

Quarter Segment results

For the quarter, sales from the Machine Tools fell 50% to Rs 20.52 crore and accounted for 13% of sales. PBIT from the same fell 61% to Rs 4.42 crore and accounted for 28% of total.

For the quarter, sales from the Hard Metals and Hard Metals Products grew 15% to Rs 134.27 crore and accounted for 87% of sales. PBIT from the same grew 41% to Rs 11.50 crore and accounted for 72% of total.

For the FY, sales from the Machine Tools fell 10% to Rs 93.11 crore and accounted for 16% of total. PBIT from the same crashed 60% to Rs 7.87 crore and accounted for 15% of total.

For the FY, sales from the Hard Metals and Hard Metals Products grew 2% to Rs 477.18 crore and accounted for 84% of sales. PBIT from the same grew 4% to Rs 43.21 crore and accounted for 85% of total.

Strategy going forward

Going forward the company hopes to consolidate and grow its core business and enhance its market reach by expanding distribution channel.

It also plans to diversify and has increased focus in aerospace, defence, railways segments.

It is also exploring exports of its Machining Solutions Group (MSG) products.

Valuation

The share price trades at Rs 663.