• The value of production net of excise for the quarter was higher by 16% to Rs 111.65 crore even as the operating income (net of excise) was up by 22% to Rs 110.70 crore. Growth in revenue was driven largely by industrial switchgear business which accounted for 45.5% of total revenue.
  
• Operating profit margin expanded by 160 bps to 12.2% and this can be attributed to fall in all cost heads. Material cost as proportion to sales net of stocks and excise was down by 30 bps to 73.3%. Similarly the staff cost was down by 80 bps to 4.1%. And the OE was lower by 100 bps to 10.4%.
  
• Other income was down by 62% to Rs 0.62 crore. The interest cost was down by 1% to Rs 3.60 crore and depreciation was higher by 15% to Rs 2.63 crore. But interest and depreciation as proportion to OP stood lower at 26.7% and 19.5% respectively compared to 37.5% and 23.7% in corresponding previous period. Thus the PBT was up by 46% to Rs 7.87 crore.
  
• Taxation in absolute terms was up by 28% to Rs 2.58 crore. But the tax rate stood lower at 32.8% compared to 37.5% in corresponding previous quarter. Thus the growth at PAT stood at 57% to Rs 5.29 crore.

Nine month performance

Sales was up by 16% to Rs 316.02 crore but with OPM contract by 30 bps to 11.7%, the operating profit was up by 12% to Rs 36.88 crore. Eventually the PAT was up by 16% to Rs 15.17 crore.

Management comment

R Doraiswamy, Joint Managing Director of the company commenting on the results said, "I am happy to share that this quarter once again, we have demonstrated good growth in our revenues. This growth was mainly driven by demand in our switchgear business segment as well as due to good demand from Agri Market Cables. The increase in exports to USA has also been another significant factor contributing to the increased revenues. Our EBIDTA has also grown and we have shown improvement in margins of more than 150 basis points year on year. I believe this is an indication of our efforts over the past three quarters, on increasing our margins and improving our operating efficiencies. We expect this margin to sustain and our endeavour continues to remain on profitable growth and margin improvement. We continue to focus on adding new, niche and high margin products, enter new geographies and offer total and customised electrical solutions to our existing and new customers. To aid to this we are constantly on the lookout for any new opportunities for technical associations to strengthen the base for our product offerings."