Artson Engineering, a Mumbai based project engineering company offers turnkey services in petroleum storage and handling systems, plant utilities, diesel power houses, CPP, energy conservation, waste-heat recovery and noise pollution control systems. The company has registered under BIFR and the proposal of the restructuring is under review.

Quarterly performance

Sales for the third quarter ended June ‘07 grew by 205% to Rs 9.28 crore. The OPM had increased by 380 bps to 14.8% on the back of the decrease in the operational costs and revenue growth. Thus operating profit grew by 311% to Rs 1.37 crore.

The proportion of the other expenditure inclusive of the selling and administration cost to net sales had improved 450 basis points to 65.4%. However the raw material costs as a percentage to sales had declined by 660 basis points to 20%. This has led to substantial expansion in margin.

The other income was nil in the quarter against Rs 0.16 crore in the corresponding previous period. No provision for the interest had been made in the quarter as the company is a NPA. The depreciation almost trebled to Rs 0.22 crore in the quarter from Rs 0.07 crore in the corresponding previous quarter. Thus the PBT was higher by 172% to Rs 1.15 crore. With EO item being nil in the quarter so also in the corresponding previous quarter and taxation being insignificant at less than a lakh for the quarter, the net profit was higher by 172% to Rs 1.15 crore.

Valuation

The Company is registered under BIFR & its proposal for restructuring is under review by Operating Agency.

No provision for interest is made as the company remains an NPA.

The scrip is traded at Rs 42.10 on August 3, 2007 on BSE.