Performance for the quarter ended December 2016

Net sales revenue (includes cement, engineering, power, and hotel segment revenue) of the company inclined 19% to Rs 202.39 crore for the third quarter ended December 2016.The revenue from cement segment (contributes 86% of total revenue) increased by 21% to Rs 216.56 crore and engineering segment (contributes 5% of total revenue) jumped by 36% to Rs 13.45 crore. The power segment revenue (contributes 7% of total revenue) fell by 18% to Rs 16.84 crore. The hotel segment revenue (contributes 2% of total revenue) was Rs 3.78 crore

The operating margins (OPM) inclined 230 bps to 20.1%. As a result, the operating profit rose by 35% at Rs 40.74 crore. At segment level, PBIT of cement business inclined 61% to Rs 35.48 crore while power business PBIT fell 67% to Rs 0.83 crore. The engineering business suffered LBIT of Rs 5.10 crore compared with LBIT of Rs 3.41 crore in corresponding previous quarter.

The other income was down 39% to Rs 0.68 crore. The interest cost rose by 6% to Rs 11.72 crore and depreciation was up 14% to Rs 11.72 crore. Thus, the PBT zoomed by 100% to Rs 17.04 crore. With net taxation of Rs 6.86 crore (up 112% yoy), the Company posted 94% jump in net profit to Rs 10.18 crore.

Nine month performance

Sales of the company inclined 5% to Rs 588.60 crore for nine month ended December 2016. OPM shrank by sharp 280 bps to 18.4%. As a result, Operating Profit declined 9% to Rs 108.28 crore. The other income grew by 72% to Rs 3.62 crore. The interest cost was up 2% to Rs 35.47 crore, and depreciation rose by 29% to Rs 37.42 crore. Thus, the PBT stood at Rs 39.01 crore, which was 31% down compared to the corresponding period of the previous year. The tax outgo inclined 19% to Rs 14.53 crore. The effective tax rate grew to 37.2% from 21.5% corresponding period of the previous year. Thus, the PAT shrank by 45% to Rs 24.48 crore.

The scrip hovers around Rs 88.40 (03 February 2017) on the BSE.