Other income fell 25% to Rs 2.23 crore and interest cost grew 85% to 1.63 crore. As depreciation was down 8% to Rs 2.40 crore PBT stood at a profit of Rs 5.72 crore against a loss of Rs 10 lakh. Provision for tax stood at Rs 1.59 crore against write back of Rs 3 lakh after which PAT stood Rs 4.13 crore against a loss of Rs 7 lakh.

For FY 2018, Ador Welding registered an 4% rise in sales to Rs 457.74 crore. OPM improved 60 basis points to 7.4% which saw OP grow 13% to Rs 33.92 crore.

Other income grew 4% to Rs 9.71 crore and interest cost jumped 410% to Rs 5.30 crore. As depreciation was down 10 to Rs 10.08 crore PBT grew 4% to Rs 28.25 crore. Provision for tax went up 7% to Rs 9.69 crore after which PAT increased 2% to Rs 18.56 crore.

Segment results

For the quarter, sales of from the Consumables Division grew 36% to Rs 75.24 crore and accounted for 73% of total. PBIT from the same grew 175% to Rs 11.49 crore and accounted for 108% of total.

For the quarter, sales from the Equipment and Project Engineering Division fell 29% to Rs 27.39 crore and accounted for 27% of total. Loss at PBIT from the same fell 51% to Rs 87 lakh and accounted for -8% of total.

For FY 2018, sales of from the Consumables Division fell 1% to Rs 311.29 crore and accounted for 67% of total. PBIT from the same grew 14% to Rs 41.34 crore and accounted for 101% of total.

For FY 2018, sales from the Equipment and Project Engineering Division fell 8% to Rs 153.42 crore and accounted for 33% of total. Loss at the PBIT level from the same stood at Rs 60 lakh against a profit of Rs 2.91 crore and accounted for -1% of total.

PBIT margins of both the segments improve

For the quarter, PBIT margins of Consumables Division improved from 7.5% to 15.3% while that of the Equipment and Project Engineering Division improved from -4.6% to -3.2%.

Focusing on new products

During FY 2017-18, it launched new products in welding and cutting segment & also in WAPS and Project Engineering Business to meet with customer requirements.

In FY 2018 it delivered higher volumes in consumables and equipment which further strengthened its industrial leadership. Automation business performed exceptionally well owing primarily due to the launch of new products during the year.

During FY 2018, for the first time, it ventured into an EPC project outside India, in Kuwait, related to Oil & Gas industry, which will be completed by August 2018.

It to aims to become "best-in-class" enterprise known for continuous innovation in products & solutions with significant growth by FY 2019-20, notwithstanding the economic or market scenario.

Valuation

The stock trades at Rs 362