Quarterly performance

Sales were higher by 26% to Rs 37.55 crore. But with operating margin contract by marginal 10 bps to 13.8% the operating profit was higher by 25% to Rs 5.19 crore. Pressure at operating margin was largely on account of rise in all cost heads barring subcontracting charges. As proportion to sales net of stocks the material cost was higher by 170 bps to 50.7%, the staff cost was higher by 20 bps to 13.2% and other expenses was higher by 120 bps to 15%. But the 310 bps fall in sub contracting charges have nearly cushioned the rise in all other cost heads restricted the contraction in OPM to just 10 bps.

Other income was Rs 21 lakh as against nil for corresponding previous period. The interest cost was higher by 33% to Rs 76 lakh. The depreciation was up by modest 3% to Rs 64 lakh. Thus the PBT was higher by 36% to Rs 4 lakh. Taxation was higher by 40% to Rs 1.33 crore and thus the growth at net profit stood restricted to 33% to Rs 2.67 crore.

Nine month performance

Sales for the period were higher by 42% to Rs 105.43 crore. The operating profit was higher by 49% to Rs 14.21 crore with 70 bps expansion in OPM to 13.5%. The other income was higher by 86% to Rs 26 lakh, the interest cost was down by 25% to Rs 1.76 crore, the depreciation was low by 2% to Rs 1.86 lakh. Thus the PBT more than doubled to Rs 10.85 crore. The taxation was up by 86% to Rs 3.60 crore and the net profit was higher by 108% to Rs 7.25 crore.

The stock hovers around Rs 305.