• Operational income was down by 6% to Rs 172.79 crore. Downside in operational income is attributed to lower revenue of compression systems. Segment revenue of compression systems was lower by 9% to Rs 159.35 crore or 93% of sales. However the segment revenue of transmission products was up by 8% to Rs 9.15 crore. The segment revenue of others was up at Rs 2.45 crore as against nil in corresponding previous period.

• The EBIT was flat at Rs 34.13 crore even as the segment loss of transmission products widen. The segment revenue of compression systems was up by 1% to Rs 39.34 crore despite lower sales and that is largely due to higher segment margin. Segment margin of compression systems expanded by 250 bps to 24.7%. The segment loss of transmission products stood higher at Rs 5.21 crore compared to a loss of Rs 4.78 crore in the corresponding previous period.

• Operating profit margin stood contracted by 80 bps to 16.4%. And this is largely due to higher staff cost and OE expenses which more than offset the gain in material cost. The material cost as % to sales net of stocks was down by 640 bps and that of staff was up by 240 bps to 13.1%. The other expense was up by 560 bps to 22%. Thus dragged by lower sales and lower OPM, the operating profit was down by 10% to Rs 28.38 crore.

• Other income was down by 54% to Rs 2.31 crore. The interest cost was up by 100% to Rs0.02 crore. And the depreciation was down by 7% to Rs 5.51 crore and thus the growth at PBT was down by 18% to Rs 25.16 crore.

• The taxation was down by 19% to Rs 7.98 crore but the tax rate was nearly flat at 31.7% compared to 31.9% in corresponding previous period. Thus the net profit was down by 18% to Rs 17.18 crore.

Annual performance

Standalone sales for the period was higher by 4% to Rs 536.63 crore and with 180 bps expansion in OPM the operating profit was higher by 21% to Rs 67.43 crore. After accounting for higher other income (up 29% to Rs 19.67 crore spurred by Rs 10.15 crore profit from sales of stake in Kirloskar Chillers), lower depreciation and higher interest the PBT was up by 35% to Rs 69.76 crore. With taxation up 12% to Rs 17.06 crore, the net profit was up by 45% to Rs 52.70 crore.