• The operating income (excluding other operating income) for the quarter was higher by 11% to Rs 141.03 crore with sales of air solutions was up by 13% and that of others which largely comprise of contract manufacturing for associate companies and divested business (i.e. construction equipment) was lower by 67% to Rs 1.40 crore. The value of production for the quarter too was up by 6% to Rs 138.97 crore reflecting benefits of liquidation of earlier period production/stocks in sales.

• Operating margin for the quarter expanded by 40 bps (to 11%) largely on account of lower material cost. The material cost as proportion to sales net of stocks was lower by 543 bps to 63.1%, but with staff cost was up by 160 bps to 11.5% and Other Exp was up by 290 bps to 14.2%, the gains of low material cost moderated. Thus the operating profit was up by 15% to Rs 15.69 crore.

• Other income was higher by 37% to Rs 19.69 crore largely with benefit of hardening interest rate (on shorterm investment of surplus cash) kicking in. The interest cost was flat at just Rs 1 lakh. The depreciation was lower by 13% to Rs 1.12 crore. Thus the PBT before EO was higher by 28% to Rs 34.25 crore. EO for the quarter as well as corresponding previous period was nil.

• The taxation in absolute terms was higher by 34% to Rs 11.59 crore and the tax rate was higher at 33.8% compared to 32.5% in the corresponding previous period. Thus the PAT before EO (net of tax) was higher by 26% to Rs 22.66 crore.

• The EO (net of tax) was nil for the quarter as well as corresponding previous period was nil and thus the Net profit was up by 26%.

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.

The stock was hovering around Rs 458.50.