• Operating sales (excluding other operating income) was lower by 1% to Rs 373.71 crore. But the value of production for the quarter was lower by 2% to Rs 379.39 crore. Sales for the quarter lower than value of production reflects inventory built up.
• Down side at operating income was largely on account of lower project income. While the project revenue was down by 10% to Rs 67.37 crore (or 18% of sales) that of products was up by marginal 1% to Rs 306.34 crore.
• EBIT was down by 18% to Rs 28.02 crore and that is largely due to higher losses at projects business. On marginally higher revenue the segment profit of products stood flat (up 0%) to Rs 40.71 crore as its segment margin contract by marginal 10 bps to 13.3%. On lower sales the segment loss of project business was higher at Rs 12.69 crore compared to a loss of Rs 6.59 crore in the corresponding previous period.
• The Operating margin contracted by 50 bps to 3.1% as material cost and staff cost stand higher. The material cost (as % to sales net of stocks and excise) was higher by 180 bps to 66.7% and the staff cost was higher by 140 bps to 13.2%. But the other expense was lower by 270 bps to 16.9%. Rise in material cost is largely due to prior committed prices.
• Other income was lower by 81% to Rs 2.19 crore as the other income of corresponding previous period is inflated by dividend from subsidiary amounting Rs 8 crore. The interest cost was lower by 11% to Rs 7.87 crore and depreciation was lower by 4% to Rs 9.74 crore. But the interest and depreciation cost as proportion to OP was higher at 67.3% and 83.3% respectively compared to 64.5% and 74.1% in corresponding previous period. Thus the PBT before EO was a loss of Rs 3.72 crore compared to a profit of Rs 6.22 crore in the corresponding previous period.
• EO Exp for the quarter and corresponding previous period was nil. Taxation was a write back of Rs 0.45 crore compared to Rs 1.53 crore in the corresponding previous period. Thus the PAT was a loss of Rs 3.27 crore compared to a profit of Rs 7.75 crore in the corresponding previous period. Other comprehensive expense was lower by 23% to Rs 0.19 crore and the total comprehensive income was a loss of Rs 3.46 crore compared to a profit of Rs 7.50 crore in the corresponding previous period.

Consolidated order backlog as end of Q1FY17 was Rs 2315 crore with order intake for the quarter being Rs 657 crore. Standalone order backlog was Rs 1507 crore. Order intake in Standalone Company in Q1FY17 was Rs 569 crore.