Quarter Performance
The total operating income fell by 4% to Rs 250.91 crore on account of sluggish demand in medium & heavy commercial vehicle industry. The M&HCV industry has been poorly performing in FY 2013 so far on account of high interest rates and weak macroeconomic environment resulting in low capital investments and goods manufacturing. The poor demand for M&HCVs had led to top M&HCV companies, such as Tata Motors and Ashok Leyland, to resort to production cuts. The OPM fell by 220 bps to 20.3% on account of higher operating expenses and staff cost though partially offset by lower raw material costs. Thus the operating profit declined by 14% to Rs 50.94 crore. The other expenditure, as % to sales net stock adjusted, grew by 210 bps to 16%. Also the staff cost rose by 160 bps to 11%. Only raw material costs declined by 180 bps to 52%.
The PBT fell by 21% to Rs 46.78 crore on poor non operating performance i.e. higher depreciation cost and lower other income. The depreciation cost grew by 17% to Rs 4.46 crore while other income crashed by whopping 93% to Rs 0.30 crore. Further 160 bps hike in effective tax lowered the net profit by 23% to Rs 32.83 crore.
Half Year Performance
In half year ended Sep 2012, the topline fell by flat 1% to Rs 500.20 crore on poor M&HCV production. Higher other expenditure and staff cost though partially offset by lower raw material costs led to 10 bps fall in OPM to 21.6%. Thus the operating profit declined by 2% to Rs 108 crore. Improved other income offset by higher depreciation cost led to meager 2% fall in PBT to Rs 105.89 crore. The net profit settled with flat 3% fall to Rs 74.67crore limited by 20 bps hike in effective tax rate.
The scrip closed at Rs 1627.90, up 0.74% on BSE on 26th Oct 2012
