• Value of production for the quarter was up by 1% to Rs 361 crore while the revenue for the period was down by 1% to Rs 362.30 crore. Sales for the period and corresponding previous period was 1.0 time and 1.03 times of respective value of production. Sale higher than value of production for the period reflects liquidation of earlier period inventory.
• Marginal fall in revenue was largely due to early single digit fall in revenue of pumps. Sales of pumps was down by 4% to Rs 301.60 crore (or 79% of sales) and that of valves was higher by strong 20% to Rs 60.80 crore (or 16% of sales). The others was down by 26% to Rs 19.20 crore.
• PBIT was up by 63% to Rs 54.20 crore and the upside was largely due to higher profit was up by pumps and valves. Despite lower sales, the segment profit of pumps was up by sharp 55% to Rs 46.60 crore facilitated by 590 bps expansion in segment margin to 15.5%. The segment profit of valves was up by 159% to Rs 7.50 crore powered by both higher sales and 660 bps expansion in segment margin to 12.3%. The segment profit of others was down by 75% to Rs 0.10 crore.

Nine months performance

Sales was down by 12% to Rs 838.20 crore. But with OPM expand by 40 bps to 11%. After accounting for higher other income, lower interest and lower depreciation, the PBT was up by 4% to Rs 86 crore. EO was nil for the period compared to RS 12.70 crore in the corresponding previous period. Thus the PBT after EO was down by 10% to Rs 86 crore. With taxation stand lower by 12% to Rs 27.10 crore the PAT was down by 9% to Rs 58.90 crore. With SOP from associates was down by 12% to Rs 2.90 crore, the net profit was down by 9% to Rs 61.80 crore.

In accordance with the recent amendments in sections 10(34) and 115-O of the Income-tax Act, 1961, Dividend Distribution Tax (DDT) would not be payable by companies in respect of dividends declared, distributed or paid after March 31, 2020 and similarly tax exemption under section 10(34) to recipient is withdrawn with effect from April 1, 2020. Accordingly, the Group has remeasured the deferred tax liability on unremitted earnings of associate considering tax rate applicable to Group and the impact of Rs. 5.07 crore has been recognised in tax expense for the quarter ended March 31 2020.