• Sales was higher by 46% to Rs 155.31 crore and the value of production for the quarter was up by 51% to Rs 149.96 crore.
• Crash in operating margin to the extent of 640 bps is largely on account of higher material cost. Material cost as % to sales was higher by 860 bps to 73.6%. The other expenses too was higher by 50 bps to 10.3%. But the staff cost was lower by 290 bps to 7.7% which is not good enough to offset the steep rise in material and other expenses, thereby leading to crash in operating margin. The crash seems to have been escalated by change in project:product mix in addition to escalation in commodity prices.
• Other income was higher by 50% to Rs 11.74 crore. The interest cost was zero as against Rs 28 lakh in the corresponding previous period. Depreciation was higher by 31% to Rs 1.19 crore. Thus the PBT before EO was higher by 5% to Rs 23.08 crore. EO for the quarter as well as corresponding previous period was nil.
• The taxation was higher by 2% in absolute terms to Rs 7.72 crore and the tax rate was marginally lower at 33.4% compared to 34.3% in the corresponding previous period. Thus the PAT before EO(net of tax) was higher by 6% to Rs 15.36 crore. The EO (net of tax) for the quarter was nil compared to a profit of Rs 0.58 lakh and thus on escalated base the net profit was higher by modest 2% to Rs 15.36 crore.

Nine month performance

Sales were higher by 36% to Rs 377.88 crore. As OPM stand increase by 50 bps to 12.6% the operating profit was higher by 41% to Rs 47.43 crore. Other income was higher by 32% to 31.17 crore. The interest cost was nil (down from Rs 1.55 crore) and depreciation was higher by 21% to Rs 3.43 crore. Thus the PBT was up by 42% to Rs 75.17 crore.

EO income was nil for the quarter compared to a expense of Rs 1.03 crore in the corresponding previous period. Thus PBT after EO was higher by 45% to Rs 75.17 crore. The taxation was up by 39% to Rs 25.13 crore. Thus the PAT before EO (net of tax) was up by 48% to Rs 50.04 crore. With EO (net of tax) being nil for the quarter and a expense of Rs 1.33 crore in the corresponding previous period, the net profit was higher by 54% to Rs 50.04 crore.

The stock was hovering around Rs 413.90.