Also, margins fell by 390 bps YoY to 15% and accordingly there was 45% fall in operating profit to Rs 22.35 crore. After sharp rise in other income (86%), fall in interest cost (39%) and after marginal increase in depreciation (8%) there was 45% fall in PBT to Rs 20.97 crore. Further, after the marginal decline in effective tax rate net profit fell by 45% to Rs 14.44 crore.

Notably, The sharp fall in sales during the quarter has come on high base in June 2011 quarter, wherein net sales had jumped by 145% to Rs 212.01 crore and net profit was at Rs 26.02 crore (as against mere Rs 2.31 crore).

Also, On Q-o-Q basis net sales fell by 24% to Rs 148.26 crore but net profit grew by 14% to Rs 14.44 crore.

Standalone Quarterly Performance:

Net sales fell by 30% YoY to Rs 148.26 crore for the quarter ended June 2012 on the back of high base in the corresponding previous period. Also, There was sharp 35% fall in core Compression systems business (85% of net sales) to Rs 125.48 crore. However, sales from transmission products business grew by 13% to Rs 22.78 crore.

Also, operating profit margins fell down by 390 bps YoY to 15% on the back of sharp rise in other expenses (730 bps), staff cost (450 bps) despite the fall in consumption cost (570 bps) as a percentage to sales and net of stock adjustments. So, accordingly there was 45% fall in operating profit to Rs 22.35 crore. Further, after the sharp 86% growth in other income to Rs 1.92 crore the PBIDT fall was 41% to Rs 24.27 crore.

At PBIT level, margins from the core compression systems business fell by 100 bps YoY to 22.1% and after this segment profit fell by 37% to Rs 27.72 crore. However, margins from the transmission products business slightly improved by over 20 bps YoY to 9.8% and accordingly there was 16% growth in segment profit to Rs 2.23 crore.

After the 39% fall in interest cost to Rs 0.25 crore and 8% increase in depreciation to Rs 3.05 crore, PBT fell by 45% to Rs 20.97 crore. With fall in effective tax rate by 70 bps YoY to 31.1%, net profit fell by 45% to Rs 14.44 crore.

Standalone Yearly Performance:

Net sales grew by robust 36% YoY to Rs 666.61 crore for the year ended March 2012 on the back of growth across the business. However, the fall in operating margins by 130 bps YoY to 14% moderated the operating profit growth to 23% YoY to Rs 93.81 crore. But after the sharp 158% rise in other income to Rs 7.91 crore, 37% fall in interest cost to Rs 1.19 crore and 3% marginal increase in depreciation to Rs 12.06 crore, PBT grew by 35% to Rs 88.47 crore. Further, after the sharp fall in effective tax rate by 290 bps YoY to 30%, net profit grew by 41% YoY to Rs 61.91 crore.

Other Information:

• The scrip was down by 2.88% to Rs 475.85 at BSE, India on 17^th July 2012.