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Foseco India net sales fell 68% to Rs 27.65 crore in Q2CY20 compared to Q2CY19. The company operating margins were negative at 16.8% compared to 15.6%. Operating profits reported a loss of Rs 4.64 crore compared to profit of Rs 13.45 crore. Cost of material consumed as a percentage of net sales (net of stock adjustment) was down 150 bps to 51.7%, purchase of stock in trade was up 10 bps to 1.8% while employee benefit expenses was up 2560 bps to 36.1% and other expenses increased 1130 bps to 30.2%.
Other income increased 20% to Rs 2.29 crore compared to Rs 1.91 crore. Interest cost was nil. Depreciation was up 45% to Rs 1.45 crore. PBT reported a loss of Rs 3.81 crore compared to profit of Rs 14.36 crore.
Tax expense was a credit of Rs 88 lakh compared to tax expense of Rs 5.1 crore. PAT reported a loss of Rs 2.92 crore compared to profit of Rs 9.26 crore.
The spread of COVID-19 pandemic has severely impacted businesses in many countries including India and there has been severe disruption to regular business operations due to the extended lockdown.
Performance for half year ended June'20
For half year ended June'20, net sales fell 41% to Rs 99.93 crore. The company operating margins decreased 1180 bps to 3.7%. As a result operating profits fell 86% to Rs 3.68 crore.
Other income rose 11% to Rs 3.62 crore. Interest cost nil. Depreciation rose 47% to Rs 2.9 crore. PBT was down 84% to Rs 4.41 crore.
Effective tax rate was down 710 bps to 28.3%. PAT reported was down 82% to Rs 3.16 crore.
The scrip is currently trading at Rs 1094.
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