• Upside in revenue was largely driven by growth in all business divisions of the company. While the segment revenue of sugar was up by 18% to Rs 161.05 crore (or 9% of sales), the segment revenue of machinery & equipment manufacturing (M&E)was up by 20% to Rs 558.47 crore ( or 32% of sales) and that of EPC was up by 20% to Rs 1031.12 crore (or 59% of sales).
• EBIT for the period was up by 49% to Rs 102.57 crore with strong upside coming from M&E and sugar business. Segment profit of M&E was up by 28% (to Rs 47.98 crore) driven largely by both higher sales as well as higher segment margin (up by 50 bps to 8.6%). However the segment profit of EPC was up by 3% to Rs 42.82 crore facilitated by higher sales as its segment margin contracted marginally by 70 bps to 4.2%. The sugar business has turned in a segment profit of Rs 14.01 crore, a swing of Rs 27.01 crore compared to a loss of Rs 13 crore in the corresponding previous period.

Nine month performance

Consolidated sales was up by 25% to Rs 4310.35 crore but with OPM expand by 20 bps to 5.7%, the operating profit was up by 30% to Rs 245.81 crore. The PBT was down by 16% to Rs 192.40 crore hit by lower OI, higher interest and higher depreciation. The EO was nil for the period as well as corresponding previous period.With taxation stand lower by 14% to Rs 51.33 crore, the PAT was up by 34% to Rs 141.07 crore. After accounting for profit/loss from discontinued business as well as MI, the PAT (after MI) was eventually higher by 28% to Rs 132.13 crore.

Other developments

Effective April 1, 2019, the Company adopted Ind AS 116 "Leases", applied to all lease contracts existing on April 1, 2019 using the modified retrospective method along with the transition option to recognise Right-of-Use Asset (ROU) at an amount equal to the lease liability adjusted by the prepaid rent. Accordingly, comparatives for the quarter and nine months ended December 31, 2018 and year ended March 31, 2019 have not been retrospectively adjusted. The adoption of the new standard resulted in recognition of 'Right of Use' asset of Rs 13.00 crore and a lease liability of Rs 12.72 crore as on the transition date I.e. April 1, 2019. The effect of this adoption in the statement of profit and loss is increase in depreciation and finance cost of Rs 0.76 crore and Rs 0.28 crore respectively for the quarter ended December 31, 2019 and Rs 2.26 crore and Rs 0.84 crore respectively for the nine months ended December 31, 2019 and decrease in lease rent cost of Rs 0.84 crore for the quarter ended December 31, 2019 and Rs 2.45 crore for the nine months ended December 31, 2019.

The Board of Directors of the Company have declared an interim dividend of Rs 2/- per Equity Share of Rs 1/- each. The record date for the purpose of dividend is February 25, 2020.

Update on Cavite Biofuels Producers: The Company was executing a contract to design, engineer, procure, construct, commission and deliver a Bio-Refinery project for Philippines based Cavite Biofuels Producers Inc (CBPI). A dispute arose and it was referred to the arbitration under the Singapore International Arbitration Centre (SIAC). The Company was in discussion with CBPI and its promoters to settle the arbitration out of court. In terms of settlement arrived with CBPI and its promoters, on October 3, 2019, the Company through its Wholly Owned Subsidiary Company, namely ISGEC Investments Pte. Ltd., Singapore, has acquired CBPI with its related assets and liabilities including bank loan of USD 35.8 million. The acquisition was done at a token consideration of USD 100. The Company is making efforts to sell CBPI and all its assets and liabilities and group companies (the "Disposal group"), in order to recover the amounts due to it. This Disposal group has been classified as Held for Sale, and accounted in Consolidated Financial Statements accordingly under the head "Discontinued Operations".