Capitaline

Results 07-Aug-21

Analysis

Ador Welding

Consumables and equipment leads growth

Standalone net sales (including other operating income) of Ador Welding for the quarter ended Jun 2021 has increased 133% to Rs 127.88 crore. Operating profit margin has jumped from 4.6% to 8.7%, leading to 338% rise in operating profit to Rs 11.12 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 68.50% to 69.59%. Purchase of finished goods cost rose from 0.48% to 4.21%. Employee cost decreased from 13.92% to 7.82%. Other expenses fell from 12.71% to 10.57%. Other income fell 27% to Rs 1.59 crore. Provision for interest fell 57% to Rs 0.93 crore. Provision for depreciation down 4% to Rs 2.7 crore. Provision for tax was debit of Rs 2.33 crore, compared to credit of Rs 0.04 crore. Effective tax rate was 25.66% compared to 16.00%. Thus the PAT was a profit of Rs 6.75 crore compared to a loss of Rs 0.21 crore in the corresponding previous period.

Sales of Consumables segment has gone up 147.63% to Rs 104.18 crore (accounting for 81.03% of total sales). Sales of Equipments and Automation segment has gone up 149.24% to Rs 19.74 crore (accounting for 15.35% of total sales). Sales of Flares & Process Equipment Division segment has gone down 4.71% to Rs 4.65 crore (accounting for 3.62% of total sales). Inter-segment sales rose Rs 0.01 crore to Rs 0.69 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 341.52% to Rs 12.76 crore. PBIT of Consumables segment rose 229.45% to Rs 11.30 crore (accounting for 88.56% of total PBIT). PBIT of Equipments and Automation reported profit of Rs 2.18 crore compared to loss of Rs 1.14 crore. PBIT of Flares & Process Equipment Division was a loss of Rs 0.72 crore compared to a profit of Rs 0.60 crore in the corresponding previous period.

PBIT margin of Consumables segment rose from 8.15% to 10.85%. PBIT margin of Equipments and Automation segment rose from negative 14.39% to 11.04%. Overall PBIT margin rose from 5.27% to 9.92%.

Other developments

Promoters’ stake was 56.90% as of 30 June 2021, compared to 56.75% as of 30 June 2020.

Ador Welding : Standalone Results
	2106 (3)	2006 (3)	Var. (%)	2103 (12)	2003 (12)	Var. (%)
Sales	127.88	54.86	133	447.28	525.56	-15
OPM (%)	8.7	4.6		4.4	7.7
OP	11.12	2.54	338	19.89	40.28	-51
Other inc.	1.59	2.18	-27	7.31	9.08	-19
PBIDT	12.71	4.72	169	27.20	49.36	-45
Interest	0.93	2.15	-57	6.41	8.61	-26
PBDT	11.78	2.57	358	20.79	40.75	-49
Dep.	2.70	2.82	-4	11.10	10.68	4
PBT	9.08	-0.25	LP	9.69	30.07	-68
EO Exp	0.00	0.00		25.37	0.00
PBT after EO	9.08	-0.25	LP	-15.68	30.07	-152
Taxation	2.33	-0.04	PL	-3.69	4.45	-183
PAT	6.75	-0.21	LP	-11.99	25.62	-147
EPS (Rs)*	#	#		5.4	18.8
* EPS is on current equity of Rs 13.60 crore, Face value of Rs 10
# EPS is not annualised due to seasonality of business
Figures in Rs crore
Source: Capitaline Corporate Database

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