• Downside in revenue was largely due to sharp fall in revenue of Hard Metal and Hand Metal Products (HMHM Products). The segment revenue of HMHM Products was down by 33% to Rs 131.60 crore (or 79% of total sales). The segment revenue of Machine solutions was down by 8% to Rs 34.90 crore (or 21% of sales).
• The EBIT was down by 31% to Rs 19.90 crore dragged by lower profit from HMHM Products. The segment profit of machine solutions more than doubled (up 436% to Rs 7.50 crore) despite lower sales is largely due to higher margin, which jumped to 21.5% from modest 3.7% in the corresponding previous period. On the other hand hit by lower sales and 460 bps erosion in segment margin to 9.4%, the segment profit of HMHM Products was down by 55% to Rs 12.40 crore.

Nine month performance

Sales was lower by 20% to Rs 554.10 crore and that together with 230 bps erosion in OPM to 13.4% dragged the OP down by 32% to Rs 74.50 crore. After accounting for marginally higher OI, higher interest and depreciation the PBT was down by 40% to Rs 58 crore. The PBT after EO was down by 43% with EO expense stand higher by Rs 2.70 crore against nil in the corresponding previous period. With taxation stand down by 61% to Rs 15.10 crore, the PAT was down by 30% to Rs 40.20 crore. With PPT stand lower by 93% to Rs 0.80 crore, the net profit was lower by 40% to Rs 41 crore.

Segment profit of HMHM was down by 53% to Rs 47.40 crore with its sales down by 28% to Rs 428.10 crore and segment margin crash by 570 bps to 11.1%. However the segment profit of machine solutions more than doubled (up 135%) to Rs 30.60 crore with its sales was up by 30% to Rs 126.00 crore and segment margin jump by whopping 1090 bps to 24.3%.

Other developments

Company's performance was impacted in the month of Mar'2020, due to shutdown of all operations following lockdown with effect from 23rd March 2020 by the Government in view of Covid-19, a Global Pandemic caused by Novel Coronavirus. Operations have resumed from 4th May 2020 as per the Govt. directives including all relevant safety measures.