• Sales of Consumables segment has gone up 14% to Rs 122.15 crore (accounting for 75.51% of total sales).  Sales of Equipments & Automation segment has gone up 50% to Rs 26.54 crore (accounting for 16.41% of total sales).  Sales of Project segment fell 19% to Rs 13.07 crore (accounting for 8.08% of total sales).  Inter-segment sales came down from Rs 0.94 crore to Rs 0.17 crore.  
• Profit before interest, tax and other unallocable items (PBIT) has jumped 54% to Rs 17.70 crore.  PBIT of Consumables segment fell 14% to Rs 12.05 crore (accounting for 68.08% of total PBIT).  PBIT of Equipments & Automation segment rose to Rs 4.63 crore (accounting for 26.16% of total PBIT) compared to mere Rs 0.17 crore in the corresponding previous period.  PBIT of Project reported profit of Rs 1.02 crore compared to loss of Rs 2.72 crore.  
• PBIT margin of Consumables segment fell from 13.2% to 9.9%.  PBIT margin of Equipments & Automation segment rose from 1% to 17.4%.  PBIT margin of Project segment rose from negative 16.8% to 7.8%.  Overall PBIT margin rose from 8.2% to 10.9%. 
• Exceptional expense of Rs 25.37 crore for the quarter ended 31 March 2021, includes Rs. 1.40 crore provision for diminution in the value of investment in its 100% subsidiary "Ador Welding Academy Private Limited", Rs. 8.48 crore (including Rs. 819 lakhs provision and Rs. 29 lakhs written off towards various factors like movement in collection of C forms, Assessment order received during the year etc.) and provisions amounting to Rs 15.49 crore which includes Rs 13.05 crore receivables from a project executed in the Kuwait, for which appropriate actions has been taken by the Company and the matter is pending in the Court of Law of Kuwait. 

Consolidated net sales (including other operating income) has increased 16% to Rs 161.67 crore.  Operating profit margin has jumped from 7.4% to 9.6%, leading to 50% rise in operating profit to Rs 15.60 crore.  Other income rose 105% to Rs 2.4 crore.  Provision for interest fell 30% to Rs 1.51 crore.  Provision for depreciation fell 2% to Rs 2.79 crore.  Profit before tax grew 109% to Rs 13.70 crore.  EO Expense was Rs 23.97 crore compared to nil. Share of profit/loss were nil in both the periods.  Taxation was a write-back of Rs 2.26 crore compared to a profit of Rs 0.32 crore in the corresponding previous period. Effective tax rate was 22.01% compared to 4.89%. Minority interest was nil in both the periods.  Eventually PAT was a loss of RS 8.01 crore compared to a profit of RS 6.22 crore.

Yearly performance

Net sales (including other operating income) has declined 15% to Rs 447.28 crore.  Operating profit margin has slumped from 7.7% to 4.4%, leading to 51% decline in operating profit to Rs 19.89 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 68.84% to 71.04%.   Purchase of finished goods cost rose from 1.24% to 2.06%.   Employee cost increased from 8.06% to 8.18%.   Other expenses rose from 14.20% to 14.38%.   Other income fell 19% to Rs 7.31 crore.  Provision for interest fell 26% to Rs 6.41 crore.  Provision for depreciation rose 4% to Rs 11.1 crore.  Profit before tax down 68% to Rs 9.69 crore.  .  EO expense was Rs 25.37 crore compared to nil in the corresponding previous period. Thus the PBT after EO was a loss of Rs 15.68 crore compared to a profit of Rs 30.07 crore in the corresponding previous period. Taxation was a write back of Rs 3.69 crore compared to a provision of Rs 4.45 crore in the corresponding previous period. Thus the PAT was a loss of Rs 11.99 crore compared to a profit of Rs 25.62 crore in the corresponding previous period.

• Sales of Consumables segment has gone down 13% to Rs 352.33 crore (accounting for 78.66% of total sales).  Sales of Equipments & Automation segment has gone down 6% to Rs 70.85 crore (accounting for 15.82% of total sales).  Sales of Project segment fell 49% to Rs 24.73 crore (accounting for 5.52% of total sales).  Inter-segment sales came down from Rs 2.65 crore to Rs 0.63 crore.  

• Profit before interest, tax and other unallocable items (PBIT) has slumped 50% to Rs 23.23 crore.  PBIT of Consumables segment fell 34% to Rs 42.68 crore (accounting for 183.73% of total PBIT).  PBIT of Equipments & Automation segment rose 65% to Rs 5.51 crore (accounting for 23.72% of total PBIT).  PBIT loss of Project segment rose 19% to Rs 24.96 crore (accounting for -107.45% of total PBIT).  
• PBIT margin of Consumables segment fell from 15.9% to 12.1%.  PBIT margin of Equipments & Automation segment rose from 4.4% to 7.8%.  PBIT margin of Project segment fell from negative 43.4% to negative 100.9%.  Overall PBIT margin fell from 8.9% to 5.2%.  

Consolidated net sales (including other operating income) for the fiscal ended March 2021 has declined 15% to Rs 447.68 crore.  Operating profit margin has slumped from 7.8% to 4.5%, leading to 51% decline in operating profit to Rs 20.10 crore.  Other income fell 19% to Rs 7.39 crore.  Provision for interest fell 26% to Rs 6.41 crore.  Provision for depreciation rose 4% to Rs 11.17 crore.  Profit before tax shrink 68% to Rs 9.91 crore.  Share of profit/loss were nil in both the periods.  Effective tax rate was 26.17% compared to 14.44%. Minority interest was nil in both the periods.  Eventually the net profit after MI was a loss of Rs 10.38 crore (a profit of RS 26.12 crore in previous year) dragged by higher EO expenses of Rs 23.97 crore against nil.

Amalgamation of the Wholly-Owned Subsidiary Company with the Holding /Parent Company

The Board of Directors of the Company, at its meeting held today, has approved the Scheme of Amalgamation ("Scheme") under the provisions of Sections 230 to 232 of theCompanies Act, 2013 for the merger / amalgamation of Ador Welding Academy Private Limited (AWAPL), a wholly owned subsidiary of the Company, with the Company pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations). The principle activity of AWAPL is imparting welding training (skill development) and provide consultancy in welding & its processes.

The proposed amalgamation / merger is subject to the necessary statutory and regulatory approvals, including approval of the National Company Law Tribunal (NCLT). The details required under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI Circular No. CIR/CFD/CMD/4/2015 dated September 9, 2015 are given in the enclosed Annexure.

Other developments

Equity capital stood at Rs 13.60 crore as of 31 March 2021 to Rs 13.60 crore as of 31 March 2020.  Per share face Value remained same at Rs 10.00.  

Promoters' stake was 56.89% as of 31 March 2021, compared to 56.75% as of 31 March 2020.