• In a difficult market condition impacted by industrial capex downcycle, the operating income (excluding other operating income) for the quarter was lower by 2%yoy to Rs 140.71 crore with sales of air solutions was down by 3% and that of others which largely comprise of contract manufacturing for associate companies and divested business (i.e. construction equipment) was higher by 39% to Rs 5.82 crore.
• The value of production for the quarter was down by 6% to Rs 139.90 crore. The sales are 0.58% higher than value of production in Q2FY13 compared to 3.77% lower in corresponding previous period. This reflects the company had the benefit of liquidation of earlier period production/stocks in Q2FY13 but in corresponding previous period there was inventory build up.
• Operating margin for the quarter expanded by strong 300 bps to 9.7% on year on year basis but it was lower by 130 bps on sequential basis. Expansion in OPM on year on year basis is largely on account of lower material cost. The material cost as proportion to sales net of stocks was lower by 773 bps to 63.2%, but with staff cost was up by 260 bps to 11.4% and Other Exp was up by 170 bps to 15.6%, the gains of low material cost moderated to some extent. Facilitated thus by strong expansion in OPM on yoy basis, the operating profit was up by 42%yoy to Rs 13.76 crore.
• Other income was lower by 9% to Rs 14.82 crore largely and the interest cost was lower by 53% to Rs 0.16 crore. The depreciation was lower by 15% to Rs 1.34 crore. Thus the PBT before EO was higher by 13% to Rs 27.08 crore. EO for the quarter as well as corresponding previous period was nil.
• The taxation in absolute terms was higher by 34% to Rs 10.45 crore and the tax rate was higher at 38.6% compared to 32.6% in the corresponding previous period. Thus restricted, the PAT was higher by 3% to Rs 16.63 crore.

Half yearly performance

Sales were higher by 4% to Rs 284.20 crore and the operating profit was higher by 26% (to Rs 29.45 crore) facilitated by higher sales and 190 bps expansion in OPM to 10.4%. But restricted by higher tax incidence the net profit was eventually higher by 15% to Rs 39.29 crore.

To pay interim dividend of Rs 3 per share (@30%) of Rs 10 face value and the record date for interim dividend is Nov 16, 2012.

The stock was hovering around Rs 479.50.