With the tax provision turning as outgo of Rs 30.47 crore compared to a write back of Rs 24.94 crore in the corresponding previous period, the net profit of the company registered a negative growth of 18% to Rs 68.62 crore.

Performance for the quarter ended Mar’07

Net sales during the fourth quarter rose 39% to Rs 549.18 crore. Despite the operating margins declined by 300 basis points to 16.1%, the operating profit increased by 22% to Rs 88.15 crore owing to robust growth in sales. Raw material costs as a % to net sales (net of stock adjustment) increased by 40 basis points to 59.2% and the other expenditure shot up by 360 basis points to 18.7%. However, while staff cost as a % to net sales (net of stock adjustment) declined by 140 basis points to 6.3%.

Pursuant to adoption of Accounting Standard 15 (Revised) on "Employee Benefits" issued by Institute of Chartered Accountants of India, the transitional obligation to the extent of Rs 8.20 crore has been adjusted against the Opening Revenue Reserves of the Company.

Other income, which comprises of export subsidies, dividend income and interest on deposits zoomed by 263% to Rs 33.04 crore. Interest cost stood nil and depreciation too declined by 9% to Rs 22.10 crore for the period. The PBT therefore increased by 73% to Rs 99.09 crore in the quarter ended Mar’07. Tax provision changed as on outgo of Rs 30.47 crore compared to write back of Rs 24.94 crore thus, resulting in 17% dip in profit at Rs 68.62 crore on y-o-y basis.

Performance for the year ended Mar’07

For the year ended Mar’07, the net sales rose 42% to Rs 1853.58 crore. The OPM declined marginally by 10 bps to 15.6%, leading the OP to increase by 41% to Rs 289.21 crore. Other income rose 107% to Rs 88.14 crore, while interest cost remained nil compared to outgo of Rs 3.45 crore. Depreciation increased by 23% to Rs 55.88 crore. Thus at PBT level profit was restricted by 64% to Rs 308.60 crore. Tax provision increased by 138% to Rs 102.40 crore. Subsequently, at net level profit increased only by 42% at Rs 206.20 crore.

Segment Results

The company has two segments Textile Machinery Division and Machine Tool & Foundry Divisions.

Textile Division: This division accounted for 100% of the company's net sales and profit before interest and tax (PBIT). The net sales increased by 47% and 48% for the quarter and year ended Mar’07 to Rs 516.36 crore and Rs 1743.41 crore, respectively. PBIT increased by 84% to Rs 99.34 crore and 68% to Rs 297.31 crore for the quarter ended and year ended Mar’07, respectively.

Machine Tool & Foundry Divisions: The segment revenue increased by 27% and 21% to Rs 73.49 crore and Rs 211.37 crore for the quarter and year ended Mar’07, respectively. At PBIT level it witnessed loss of Rs 0.34 crore compared to Rs 3.36 crore profit for the quarter ended Mar’07 and increase of 6% to Rs 9.19 crore for the year ended Mar’07.

The scrip presently trades at Rs 2635.