Results     03-Aug-23
Analysis
Ador Welding
Sales up 20%, net up 8% hit by 180 bps fall in OPM
Standalone net sales (including other operating income) of Ador Welding for the quarter ended Jun 2023 has increased 20.11% to Rs 189.63 crore.  Operating profit margin has declined from 10.29% to 8.47%, leading to 1.05% decline in operating profit to Rs 16.07 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 65.76% to 63.16%.   Purchase of finished goods cost rose from 3.72% to 7.20%.   Employee cost increased from 7.77% to 8.44%.   Other expenses fell from 13.49% to 13.22%.   Other income up 48.77% to Rs 3.02 crore.  PBIDT rose 4.49% to Rs 19.09 crore.  Provision for interest up 73.17% to Rs 0.71 crore.  PBDT rose 2.91% to Rs 18.38 crore.  Provision for depreciation rose 21.01% to Rs 3.34 crore.  Profit before tax down 0.40% to Rs 15.04 crore.  Provision for tax was expense of Rs 3.8 crore, compared to Rs 3.44 crore.  Effective tax rate was 25.27% compared to 24.84%. Profit after tax rose 7.97% to Rs 11.24 crore.  

Sales of Consumables segment has gone up 19.39% to Rs 144.92 crore (accounting for 76.29% of total sales).  Sales of Equipments & Project Engineering segment has gone up 59.50% to Rs 36.27 crore (accounting for 19.09% of total sales).  Sales of Flares & Process Equipment Division segment has gone down 37.11% to Rs 8.76 crore (accounting for 4.61% of total sales).  Inter-segment sales rose Rs 0.17 crore to Rs 0.32 crore.  

Profit before interest, tax and other unallocable items (PBIT) has slumped 3.80% to Rs 20.26 crore.  PBIT of Consumables segment rose 9.74% to Rs 20.16 crore (accounting for 99.51% of total PBIT).  PBIT of Equipments & Project Engineering segment rose 105.80% to Rs 1.42 crore (accounting for 7.01% of total PBIT).  PBIT of Flares & Process Equipment Division reported loss of Rs 1.32 crore compared to profit of Rs 2.00 crore.  

PBIT margin of Consumables segment fell from 15.13% to 13.91%.  PBIT margin of Equipments & Project Engineering segment rose from 3.03% to 3.92%.  PBIT margin of Flares & Process Equipment Division segment fell from 14.36% to 15.07%.  Overall PBIT margin fell from 13.32% to 10.67%.  

Promoters’ stake was 56.90% as of 30 June 2023 ,compared to 56.90% as of 30 June 2022 .  

 



Ador Welding : Standalone Results
Quarter endedYear ended
Particulars202306202206Var.(%)202303202203Var.(%)
Net Sales (including other operating income)189.63157.8820.11776.76661.4817.43
OPM (%)8.4710.29-181 bps11.238.83240 bps
OP16.0716.24-1.0587.2158.3949.36
Other Inc.3.022.0348.776.675.4123.29
PBIDT19.0918.274.4993.8863.8047.15
Interest0.710.4173.172.363.72-36.56
PBDT18.3817.862.9191.5260.0852.33
Depreciation3.342.7621.0111.6110.837.20
PBT15.0415.10-0.4079.9149.2562.25
PBT before EO15.0415.1-0.4079.9149.2562.25
EO Income0-1.25--0.88.98PL
PBT after EO15.0413.858.5979.1158.2335.86
Taxation3.83.4410.4719.8213.0451.99
PAT11.2410.417.9759.2945.1931.20
P/(L) from discontinued operations net of tax00-00-
Net profit after discontinued operations11.2410.417.9759.2945.1931.20
EPS (Rs)*8.268.35-0.9744.0428.1056.70
* EPS is on current equity of Rs 13.60 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database


Ador Welding : Standalone Segment Results
 Quarter endedYear ended
% of (Total)202306202206Var.(%)% of (Total)202303202203Var.(%)
Sales
Consumables76.29144.92121.3819.3979.03614.90535.7114.78
Equipments & Project Engineering19.0936.2722.7459.5014.83115.3598.7816.77
Project0.000.000.00-
Flares & Process Equipment Division4.618.7613.93-37.116.1447.7928.4368.10
Total Reported Sales100.00189.95158.0520.18100.00778.04662.9217.37
Less: Inter segment revenues 0.320.1788.24 1.281.44-11.11
Net Sales100.00189.63157.8820.11100.00776.76661.4817.43
PBIT
Consumables99.5120.1618.379.7487.5988.7660.6046.47
Equipments & Project Engineering7.011.420.69105.807.627.727.86-1.78
Project0.000.000.00-
Flares & Process Equipment Division-6.52-1.322.00PL
Total PBIT100.0020.2621.06-3.80100.00101.3467.5650.00
Less : Interest0.560.28100.001.822.56-28.91
Add: Other un-allcoable-4.66-6.9332.76-20.41-6.77-201.48
PBIT Margin(%)
Consumables 13.9115.13-122.32 14.4311.31312.28
Equipments & Project Engineering 3.923.0388.08 6.697.96-126.44
Project 0.000.000.00
Flares & Process Equipment Division -15.0714.36-2,942.60 10.170.001,016.95
PBT100.0015.0413.858.59100.0079.1158.2335.86
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