• Downside in revenue is largely due to sharp fall in revenue of all three business segments of the company. The segment revenue of textile machinery division (TMD) was down by 24% to Rs 306.36 crore (or 76% of sales). Indian spinning and knitting mills are undergoing challenging times and that reflects in the numbers of the company. Moreover the spread of Coronovirus on peak quarter is also not good for the company. Similarly the sales of machine tools & foundry (MTF) division was down by 52% to Rs 88.02 crore (or 22% of sales). On the other hand the segment revenue of Advanced Technology Centre (ATC) was down by 15% to Rs 8.53 crore (or 2% of sales).

• PBIT was a loss of Rs 2.28 crore compared to a profit of Rs 36.12 crore in corresponding previous period. Loss at EBIT was largely due to segment loss reported by ATC segment as well as lower profit from both TMD and MTF. The core TMD division turned in a profit of Rs 1.20 crore, a sharp fall of 94% hit by lower sales and 470 bps fall in segment margin to 0.4%. Similarly the segment profit of MTF was down by 85% to Rs 2.95 crore hit by both lower sales as well as fall in margin. Segment margin of MTF declined by 760 bps to 3.3%. However ATC segment, which is a not yet a mature business for the company, registered a segment loss of Rs 6.43 crore (up by 45% from a loss of Rs 4.44 crore).

Yearly performance

Consolidated sales for the period was down by 42% to Rs 1574.50 crore and the operating profit was down by 96% to Rs 11.15 crore hit by lower sales and 940 bps fall in OPM to 0.7%. The PBT before EO was down by 85% to Rs 49.28 crore after accounting for lower OI, lower interest and flat depreciation. The EO Exp was down by 94% to Rs 2.10 crore. Thus the PBT after EO was down by 83% to Rs 47.18 crore. The taxation was lower by 80% to Rs 19.41 crore with PAT being down by 85% to Rs 27.77 crore.

Other developments

The Board has recommended a final dividend of Rs 10 per share (of the face value of Rs 10 each) for the year 2019-20 subject to the approval of the shareholders in Annual General' Meeting.