It seeks to provide a competitive edge to its customers through a wide variety of standard high quality products as well as items customized to their requirements such as special purpose machines, metalworking tools, customized tooling solutions and engineered products.

June 2018 quarter results

For the quarter ended June 2018, net sales jumped 30% to Rs 225.76 crore. OPM improved 280 basis points to 12.1% which saw OP jump 69% to Rs 27.21 crore.

Other income grew 147% to Rs 4.24 crore. Interest cost was nil as the company is a debt free company.

As depreciation fell 5% to Rs 7.05 crore, PBT soared 136% to Rs 24.40 crore.

EO loss fell 46% to Rs 2.96 crore. This PBT after EO grew 342% to Rs 21.44 crore.

As tax (including tax write back relating to previous years of Rs 4.60 crore against NIL) fell 36% to Rs 1.73 crore PAT soared 817% to Rs 19.71 crore..

FY 2018 (ending June) results

For FY 2018 (ending June), net sales grew 22% to Rs 793.12 crore. OPM improved 370 basis points to 12.7% which saw OP jump 72% to Rs 100.45 crore.

Other income grew 43% to Rs 8.36 crore. Interest cost was nil as the company is a debt free company.

As depreciation fell 1% to Rs 28.11 crore, PBT soared 125% to Rs 80.70 crore.

EO loss stood at Rs 7.70 crore against Rs 5.50 crore. Thus PBT after EO grew 140% to Rs 73.00 crore.

As tax (including tax write back relating to previous years of Rs 4.60 crore against NIL) jumped 246% to Rs 20.74 crore PAT grew 114% to Rs 52.26 crore..

Segment results

For the quarter, sales from the Machining Solutions division jumped 96% to Rs 50.43 crore and accounted for 22% of sales. PBIT from the soared 151% to Rs 7.09 crore and accounted for 27% of total.

For the quarter, sales from the Hard Metals and Hard Metals Products grew 10% to Rs 175.33 crore and accounted for 78% of sales. PBIT from the same grew 11% to Rs 18.91 crore and accounted for 73% of total.

For FY 2018, sales from the Machining Solutions division grew 27% to Rs 122.26 crore and accounted for 15% of sales. PBIT from the same grew 39% to Rs 12.55 crore and accounted for 12% of total.

For FY 2018, sales from the Hard Metals and Hard Metals Products grew 12% to Rs 670.85 crore and accounted for 85% of sales. PBIT from the same grew 68% to Rs 91.99 crore and accounted for 88% of total.

Market condition

The company serves markets like Automobile (2W, PV, LCV and MHCV), tractors which have been performing well. Aerospace, Defence and railways likely to do well.

Other segments like steel, capital investments in manufacturing (including greenfield activities), Oil & Gas Energy and Mining are also picking up.

Strategy

Going forward the company hopes to consolidate and grow its core business and enhance its market reach by expanding distribution channel.

It also plans to diversify and has increased focus in aerospace, defence, railways segments.

It is also exploring exports of its Machining Solutions Group (MSG) products.

The company has taken special initiatives to grow the WIDIA business.

It will continue to modernize and upgrade its manufacturing facilities.

Valuation

The scrip trades around Rs 845.