Cost of material consumed as a percentage of net sales (net of stock adjustment) rose 330 bps to 41.6% while purchase of stock in trade fell 90 bps to 17.4%. Employee benefit expenses decreased 100 bps to 7.7% and other expense decreased 80 bps to 17%.

Other income of the company rose 161% to Rs 6.52 crore. Interest cost nil. Depreciation rose 21% to Rs 1.98 crore. PBT as a result rose 34% to Rs 33.07 crore. The effective tax rate fell to 33.8% compared to 34% owing to which the company's PAT increased 34% to Rs 21.91 crore.

For year ended March 2018, net sales rose 21% to Rs 26.79 crore compared to corresponding previous year. The company operating margins rose 40 bps to 20.3%. As a result operating was up 23% to Rs 127.05 crore.

Cost of material consumed as a percentage of net sales (net of stock adjustment) was up 40 bps to 38.7% while purchase of stock in trade fell 220 bps at 16.5%. Employee benefit expenses decreased 40 bps to 7.6% and other expense increased 130 bps to 16.9%.

Other income of the company rose 29% to Rs 10.63 crore. Interest cost was nil. Depreciation rose 8% to Rs 6.83 crore. PBT as a result rose 24% to Rs 130.85 crore. The effective tax rate fell to 34.4% compared to 34.6% owing to which the company's PAT increased 25% to Rs 85.83 crore.

The Board of Directors of Orient Refractories, RHI India and RHI Clasil at their respective meetings held today, approved the proposal to merge RHI India and RHI Clasil with Orient Refractories, pursuant to a composite scheme of amalgamation. All three companies are part of the RHI Magnesita group, the leading global supplier of high-grade refractory products, systems and services. Following completion of the Scheme and subject to receipt of necessary approvals, Orient Refractories is proposed to be renamed to RHI Magnesita India Limited.

The key objective of the proposed Scheme is to combine the strengths and competencies of all three operating companies in India under one strong listed company that is well positioned to leverage future growth opportunities and enhance shareholder value.

Commenting on the Scheme, Mr. Parmod Sagar, Managing Director & CEO, Orient Refractories said "The merger will strengthen our position, significantly expand our product offerings and sales platform to access a much larger client base and allow for a pooling of resources and know-how. We believe that this will act as a strong platform from which we can embark on the next phase of our growth and unlock significant value for the shareholders."

"The merger marks an important milestone towards expanding RHI Magnesita's market leadership in the refractory market of India. We are convinced that one strong entity, organization and management in India will increase long term value for all stakeholders", said Mr. Stefan Borgas, CEO, RHI Magnesita. "This merger significantly enhances the profile of RHI Magnesita in India and creates a stable umbrella under which the immense growth potential we see in the Indian market can be tapped more effectively and efficiently."

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