• Sales was lower by 11% to Rs 21.75 crore. But the value of production (VoP) was down by 7% to Rs 23.28 crore. Sales was 0.93 times of its VoP for the quarter. Similarly the sales was 0.97 times of VoP in corresponding previous period. Sales lower than VoP reflects build up in inventory.
• Sharp 670 bps expansion in OPM to 23% for the quarter was largely due to sharp fall in material cost. While staff cost (as % of sales net of stocks) stand higher by 40 bps to 3.4% and OE was up by 150 bps to 35.3%, the material cost was down by sharp 750 bps to 39.9%. Thus facilitated by jump in OPM, the operating profit was up by 26% to Rs 5 crore despite lower sales.
• The other income was up by 138% to Rs 0.45 crore and thus the PBIDT was up by 31% to Rs 5.44 crore. The interest cost was down by 36% to Rs 0.12 crore and the depreciation was down by 12% to Rs 0.61 crore. Thus the PBT was up by 45% to Rs 4.72 crore. With taxation stand lower by 69% to Rs 0.15 crore, the PAT was up by 65% to RS 4.56 crore.

Yearly performance

Sales was up by 20% to Rs 99.87 crore and that together with 450 bps expansion in OPM to 19.7% saw the operating profit up by 56% to Rs 19.70 crore. After accounting for higher OI, lower interest and higher deprecation, the PBT was up by 70% to Rs 17.56 crore. With taxation stand higher by 85% to Rs 3.52 crore, the PAT was up by 67% to Rs 14.04 crore.

Dividend @ 11%

Recommended dividend subject to approval of Members at the ensuing Annual General Meeting of the Company, of Rs 1.1 per share (ie@ 11%) on Equity Shares of Rs 10/- each of the Company for the financial year 2019-20.