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 fourth quarter ended March 2017 rose by 40 bps to 10% due to decreased employeeexpenses. Raw material cost (as a % to sales, net of stock) rose by 240 bps to 44.5%. Other expenses (% of sales net of stock) rose by 17bps to 23.7%. Employee expenses fell 180 bps to 6.8%. Power and fuel expenses (% of sales net of stock) fell by 110 bps to 15.7%.

Thus the operating profit rose by 7% to Rs 13.27crore. Other income stood at Rs 2.98 crore, higher by 326%. This pulled PBIDT up 24%. After steady depreciation cost at Rs 3.34 crore and 34% drop in interest expense to Rs 1.04 crore, PBT rose 44% to Rs 11.87crore. After 648 bps risein tax rate, tax provision stood 87% higher at Rs 3.38crore. Thereafter, net profit stood at Rs 8.49 crore against profit of Rs 6.42crore in the previous corresponding quarter, a rise of 32%.

Annual Performance

Net sales for FY 16-17 rose 2% at Rs 574.55 crore.

The OPM during the year ended March 2017 fell by 30 bps to 11.1% due to increased other expense and employee expenses. Raw material cost (as a % to sales, net of stock) fell by 280 bps to 43.2%. Other expenses (% of sales net of stock) rose by 290bps to 22.4%. Employee expenses rose 30 bps to 7.1%. Power and fuel expenses (% of sales net of stock) fell by 30 bps to 16.1%.

Thus the operating profit rose by Rs 10 lakh to Rs 64crore. Other income stood at Rs 4.55 crore, higher by 118%. After steady depreciation cost at Rs 13.42 crore and 12% drop in interest expense to Rs 6.15 crore, PBT rose 6% to Rs 49 crore. After 35 bps drop in tax rate, tax provision stood 5% higher at Rs 15.02 crore. Thereafter, net profit stood at Rs 33.98 crore against profit of Rs 31.87 crore in the previous year, a rise of 7%.

Shares of Nelcast are currently trading around Rs 59at BSE.