• Upside in revenue was largely due to sharp rise in revenue of Hard Metal and Hand Metal Products (HMHM Products). HMHM segment registered a segment revenue of Rs190.70 crore, a growth of 17%. Share of HMHM to topline stood at 88%. However the segment revenue of Machine solutions was down by 43% to Rs 26.10 crore (or 12% of sales).
• The EBIT was up by 8% to Rs29 crore hit by lower profit from machine solutions. The segment profit of machine solutions business was down by 94% to Rs 0.70 crore. But the HMHM segment profit wasup by 86% to Rs 28.30 crore.

Half Yearly performance

Sales was lower by 3% to Rs 413.90 crore and the OPM was down by 30 bps to 14.2% the operating profit was down by 5% to Rs 58.60 crore. The PBT was down by 11% to Rs 41.60 despite higher other income was largely due to higher depreciation. The EO expense was down by 60% to Rs 1.0 crore and thus the PBT after EO was down by 8% to Rs 40.60 crore. The taxation was down by 6% to Rs 10.90 crore and thus the PAT was down by Rs 29.70 crore.

Other developments

The Board of Directors in their meeting held on 4 December 2020 has approved a Scheme of Amalgamation ('Scheme') of its wholly owned subsidiary, WIDIA India Tooling Private Limited (‘WITPL') with its Holding Company, Kennametal India Limited (‘KIL' or ‘Company'). Pursuant to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has furnished the Scheme details to the stock exchanges. The appointed date of the Scheme is 1 April 2021 and the Scheme is subject to the approval of the requisite shareholders and creditors of KIL and WITPL, National Company Law Tribunal ('NCLT') and the permission and approval of other statutory or regulatory authorities, as applicable.