Quarter Performance
The total operating income grew by meager 2% to Rs 249.29 crore on flat net sales. The net sales grew by 1% to Rs 237.68 crore on lower sales to OEMs. The sales to OEMs, that constitute 61% of its sales, fell by 10% to Rs 144 crore on account of sluggish offtake in medium & heavy commercial vehicle (M&HCV) industry. The M&HCV industry production fell by 21% to 69920 vehicles on demand affected by low industrial production. However the aftermarket sales grew by healthy 22% to Rs 47.50 crore while exports rose by 25% to Rs 46.10 crore.
Lower raw material costs and other expenditure led to whopping 200 bps hike in OPM to 22.9%. Thus the operating profit grew by 12% to Rs 57.06 crore. Raw material costs, as % to sales net stock adjusted, fell by 160 bps to 54%. Also the other expenditure crashed by 200 bps to 13% primarily on change in accounting policy of vendor tooling expense. The accounting policy of vendor tooling expense has been changed from expensing it to P&L to capitalizing and amortizing them over their useful lives. The staff cost grew by 170 bps to 10% taking into salary hike that was effected from July 2011.
The PBT grew by 20% to Rs 59.11 crore on spike in other income and negligible interest cost though moderated by higher depreciation cost. The other income surged by whopping 230% to Rs 6.74 crore. It was also aided by forex gain of around Rs 4 crore against Rs 1 crore in June 2011 quarter. On the other hand, depreciation cost grew by 27% to Rs 4.68 crore as it includes the amortized value of vendor tools. The net profit settled with 23% growth to Rs 41.84 crore on 140 bps crash in effective tax rate.
The scrip closed at Rs 1456, up 0.36% on BSE on 24th July 2012
