• Sales was up by 13% to Rs 225.03 crore. But the value of production was down by just 4% to Rs 223.73 crore. Sales higher than Value of production reflect liquidation of earlier period stocks.

• OPM expanded by 250 bps to 15.9% and that is largely due to lower material and staff cost which more than offset the rise in other expenses. The material cost as % of sales net of stocks was down by 100 bps to 73.6%. The staff cost was down by 150 bps to 2.7%. But the OE cost was up by 140 bps to 7.7%.

• Other income (Net) was an expense of Rs 14.59 crore compared to an income of Rs 13.47 crore in the corresponding previous period. Other income is net of difference between the cost and market value of investment (MTM loss/profit of investment) as per Ind AS 109. Other income is net of MTM loss of Rs 19.93 crore compared to a gain of Rs 6.50 crore in the corresponding previous period. Other income excluding MTM loss/gain was Rs 5.35 crore for the quarter compared to Rs 6.97 crore in the corresponding previous period.

• The interest cost was nil for the period as well as corresponding previous period. The depreciation was higher by 24% to Rs 2.59 crore. Thus the PBT was down by 60% to Rs 18.65 crore. The taxation was lower by 49% to RS 7.11 crore and thus the PAT was down by 64% to Rs 11.54 crore.

Yearly Performance

Sale for the quarter was up by 4% to Rs 858.58 crore. With OPM expand by 130 bps to 12.6%, the operating profit was up by 15% to Rs 107.79 crore. After accounting for lower other income (down by 60% to Rs 14.56 crore) and higher depreciation (up by 26% to Rs 8.99 crore) the PBT was down by 8% to Rs 113.36 crore. Taxation was down by 37% to Rs 23.98 crore and thus the PAT was up by 5% to Rs 89.38 crore.

Other developments

The Board of Directors of the Company, at its meeting held on 11th May, 2020 have considered and approved a Scheme of Amalgamation (the "Scheme") between the Voltamp Transformers Limited ("VTL" or "Company"} and Kunjal Investment Private Limited ("KIPL"} under Sections 230 to 232 read with section 66 and other applicable provisions of the Companies Act, 2013 ("2013 Act"). The Scheme is subject to the receipt of requisite approval from the statutory authorities including SEBI, Stock Exchanges, the National Company Law Tribunal, the Reserve Bank of India and the respective shareholders and creditors of the Company and Kunjal Investments Pvt. Ltd (KIPL). The scheme contemplates the amalgamation of KIPL with the Company and the dissolution without winding up of KIPL pursuant thereto. The appointed date for the scheme is 1st June 2020 or such other date as may be fixed or approved by the National Company Law Tribunal (NCLT) as and when applicable.

The Board of Directors in their meeting held on 11th May, 2020 declared interim dividend of Rs 25 per equity share of face value of Rs 10 each for the financial year ended 31st March, 2020.