Quarter Performance
The standalone topline grew by 28% to Rs 250.55 crore in Sep 2011 quarter primarily aided by robust exports. The exports grew by notable 55% to Rs 103 crore driven by robust demand for trucks in Europe and US. On the other hand, gross domestic sales grew by only 10% to Rs 151 crore in Sep 2011 quarter. Robust exports and ability to pass on input price increases boosted the OPM by whopping 280 bps to 11.3%. Thus the operating profit grew by impressive 69% to Rs 28.43 crore. Raw material costs, as % to sales net stock adjusted, crashed by 240 bps to 53% due to passing on cost hikes and increased exports as 99% of exports are machined products which enjoy better margins. Also the other expenditure fell by 80 bps to 23%. Only the staff cost rose by 70 bps to 13%.
The PBT before forex gain/loss grew by impressive 88% to Rs 19.72 crore on limited non operating expenses i.e. depreciation and interest costs. The interest cost grew by 38% to Rs 8.90 crore while the depreciation cost rose by 25% to Rs 12.69 crore. The other income increased by 24% to Rs 12.87 crore. However on incurring forex loss of Rs 0.31 crore (against forex gain of Rs 0.13 crore in Sep 2010 quarter) the PBT growth was constrained though to robust 82% to Rs 19.41 crore. Further 450 bps spike in effective tax rate limited growth in net profit though to impressive 73% to Rs 16.40 crore.
Half Year Performance
In half year ended Sep 2011, the operating income grew by healthy 33% to Rs 494.69 crore aided by impressive exports. The exports grew by notable 73% to Rs 207.30 crore while domestic sales grew by 13% to Rs 293.70 crore. Increased share of exports boosted OPM by 220 bps to 11.5%. Thus the operating profit grew by whopping 65% growth to Rs 56.65 crore. Limited non operating expenses enabled impressive 110% growth to Rs 27.24 crore in PBT before forex gain/loss. However the net profit growth was constrained though to whopping 90% to Rs 22.41 crore on incurring forex loss (against gain) and notable 610 bps hike in effective tax rate.
The scrip trading at Rs 168 on BSE
