Quarterly performance YoY comparison

Sales for the quarter ended Mar 2020 was up by 8%yoy to Rs 438.89 crore. But with OPM expand by 40 bps to 24.7% (from 24.3% in corresponding previous quarter), the operating profit was up by 10% to Rs 108.60 crore. But the PBIDT was up by 8% to Rs 121.99 crore hit by lower other income. Other income was down by 11% to Rs 13.39 crore despite 356% jump in exchange gain to Rs 2.77 crore (compared to RS 0.61 crore in the corresponding previous period). Hit further by higher interest and higher depreciation, the growth at PBT was restricted at 3% to Rs 109.76 crore. Eventually the PAT was up by 15% to Rs 82.08 crore with taxation stand lower by 22%yoy to Rs 27.68 crore.

Annual performance

Sales for the period was up by 1%yoy to Rs 1609.86 crore and with OPM crash by 470 bps to 21.3% (from 26.0%), the operating profit witnessed sharp fall of 17%yoy to Rs 343.00 crore.

Sharp contraction in OPM is largely as the company account/charge Rs 21.63 crore of expense towards special retiral benefit payable to managing director made during Q2FY20 under the head employee benefit expenses. Excluding this expense from staff cost, the OPM would have stood at 22.7%, a fall of 330 bps from 26% in corresponding previous period. Thus the operating profit would have been down by 12%yoy to Rs 364.63 crore.

With other income stand higher by 34% to Rs 58.41 crore, the fall at PBIDT has moderated to stand at 12% to Rs 401.42 crore. The PBT was down by 19% to Rs 352.44 crore hit further by higher interest (up at Rs 5.56 crore against nil) and higher depreciation (up 73% to Rs 43.41 crore). After accounting for taxation (down 33% to Rs 96.34 crore), the fall at PAT was restricted at 12% to Rs 256.10 crore.

Other developments

To pay a dividend of Rs 16.50 per equity share of Rs 10 face value for 2019-20, subject to approval in meeting of shareholders.