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For the quarter ended Sep 17, the net sales of the company were down by 51% to Rs 214.17 crore. OPM was higher by about 70 bps to 11.7% restricting the fall in OP to 48% in OP to Rs 25.03 crore. Other income was higher by 3% to Rs 0.71 crore. Interest costs were lower by 11% to Rs 11.31 crore and depreciation costs was flat at Rs 2.61crore. Thus PBT stood at Rs 11.82 crore, down by 64% YoY. After providing total tax of Rs 3.50 crore down by 70%, PAT for Sep 17 quarter stood at Rs 8.32 crore down by 61% YoY.
Performance for 6 months ended Sep 17
For 6 months ended Sep 17, net sales were down by 12% to Rs 758.68 crore. OPM stood at 13% up by 140 bps, restricting the fall in OP to 1% to Rs 98.52 crore. Other income was up by 16% to Rs 1.40 crore. Interest cost was lower by 7% to Rs 22.11 crore and depreciation was up by 4% to Rs 5.11 crore. There is an EO loss of Rs 30.33 crore in H1 ended Sep 17 period pertaining to provision of sales tax demand of past years as compared to Nil for H1 ended Sep 16. Thus, post EO, PBT stood at Rs 42.37 crore, down by 42% YoY. After providing total tax of Rs 14.18 crore, down by 44% YoY, PAT for 6 months ended Sep 17 stood at Rs 28.19 crore, down by 40% YoY.
Other updates
The balance value of the orders on hand as on Sep 17 is Rs 3412.52 crore, as against Rs 2613.85 crore in the corresponding period of the previous year
The major stream of revenue for the company comes from execution of drinking water projects. Pre-GST such contracts executed for government were exempt from service tax, excise duty was exempt on pipes and other material used in execution of these contracts and works contract tax of around 5% was applicable in most of the cases. On rollout of GST, these contracts were placed initially in 18% slab and from 22nd Aug 17 in 12% slab. Customer base of the company is various State governments and contracts were entered Pre-GST. Further supplies from vendors were also affected due to GST implementation. This has created transitional challenges, affecting execution of contracts in this quarter. As such, in spite of having sufficient orders on hand in first 6 months the revenue declined by around 12% on YoY basis.
The company has represented to all its clients for carrying out necessary amendments to the contract and compensates the additional tax liability. The company feels that there will be more clarity in this matter in the next few months.
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