• The operating income (excluding other operating income) for the quarter was higher by 15% to Rs 134.85 crore and the value of production for the quarter too was up by 11% to Rs 135.88 crore.
• Sharp contraction in operating margin (to the extent of 410 bps on year on year basis) was largely on account of rise in material and staff cost. The material cost as proportion to sales net of stocks was up by 755 bps to 67% and the staff cost was up by 260 bps to 11.3%. Though the Other Exp was lower by 630 bps to 12.5% that is not good enough to completely offset the rise in other cost heads there by leading to sharp contraction in OPM. This had a drag on the operating profit to the extent of 22%.
• Other income was higher by 57% to Rs 19.59 crore largely with benefit of hardening interest rate (on shorterm investment of surplus cash) kicking in. The interest cost was nil compared to Rs 53 lakh in the corresponding previous quarter. The depreciation was down by 13% to Rs 1.15 crore. Thus the PBT before EO was higher by 16% to Rs 30.96 crore. EO for the quarter as well as corresponding previous period was nil.
• The taxation in absolute terms was higher by 38% to Rs 10.21 crore and the tax rate was higher at 33% compared to 27.8% in the corresponding previous period. Thus the PAT before EO (net of tax) was higher by 8% to Rs 20.75 crore.
• The EO (net of tax) was nil for the quarter compared to an expense of Rs 72 crore in the corresponding previous period. Thus on deflated base the net profit was up by 12% to Rs 20.75 crore.
• Net profit as well as net sales for the corresponding previous quarter ended March 2011 includes price adjustment on exports of Rs 9.80 crore.

Annual performance

Sales were higher by 20% to Rs 592.02 crore and as OPM stand contracted by 160 bps to 10.1% the growth at operating profit restricted to 4% to Rs 59.74 crore. Other income was higher by 39% to 69.01 crore. The interest cost was Rs 47 lakh (down 11%) and depreciation was Rs 5.04 crore (up 6% ). Thus the PBT was up by 21% to Rs 123.24 crore. EO income was nil for the period as well as corresponding previous period. The taxation was up by 24% to Rs 40.48 crore and the tax rate was up at 32.8% compared to 31.9% in the corresponding previous period. Thus gained, the PAT before EO (net of tax) was up by 19% to Rs 82.76 crore.

To pay a final dividend of Rs 3 per equity share of Rs 10 each for FY2011-12.

The stock was hovering around Rs 499.05.