Performance for the quarter ended March 2013

The overall top-line rose 22% to Rs 520.63 crore as polymer segment, which contributed 82% of the total revenues, rose 7% to Rs 415.45 crore while composite product segment revenues rose 162% to Rs 105.18 crore contributing 20% of the total revenues The company operating margins rose 50 bps to 14.2% as there was decline in other expenses by 60 bps to 12.8% and employee cost by 100 bps to 4.3% of adjusted net sales. However, raw material cost increased by 190 bps to 69.7% of adjusted net sales. The operating profits increased 26% to Rs 74.11 crore

Other income increased by 58% to Rs 4.73 crore. Interest cost increased by 7% to Rs 22.76 crore. Depreciation rose 45% to Rs 21.14 crore. PBT rose 34% to Rs 34.94 crore. Tax outgo inclined by 28% to Rs 9.97 crore. The effective tax rate was down by 150 bps to 28.5%. Considering minority interest, the net profit rose 31% to Rs 24.22 crore.

Performance for year ended March 2013

The overall top-line rose 18% to Rs 1797.41 crore. The company operating margins rose 30 bps to 16.2% As a result operating profits increased 20% to Rs 291.65 crore. Other income increased by 34% to Rs 5.26 crore. Interest cost increased by 29% to Rs 88.58 crore. Depreciation rose 21% to Rs 67.5 crore. PBT rose 15% to Rs 140.83 crore. Tax outgo inclined by 11% to Rs 34.1 crore. The effective tax rate was down by 80 bps to 24.2%. Considering minority interest, the net profit rose 15% to Rs 103.47 crore.

Segment Results

Polymer Products:

For Q4 FY13, the sales of polymer products division increased 7% to Rs 415.45 crore representing 80% of total revenues of the company. PBIT increased 8% at Rs 45.06 crore which was 85% of total PBIT. PBIT margin was up by just 10 bps to 10.8%.

For FY13, polymer products revenues rose 11% to Rs 1464 crore representing 81% of total revenues while PBIT rose 15% to Rs 191.79 crore representing 86% of total PBIT. PBIT margin was up by 50 bps to 13.1%.

Composite Products:

For Q4 FY13, composite products division contributed 20% of the company's total revenues, rose by 162% to Rs 105.18 crore. The PBIT reported 189% increase to Rs 7.91 crore. . PBIT margin was up by 70 bps to 7.5%.

For FY13, composite product revenues rose 60% to Rs 333.41 crore representing 19% of total revenues while PBIT rose 52% to Rs 32.36 crore. . PBIT margin was down by 50 bps to 9.7%.

Other Developments

The company has received approval from Petroleum Explosive & Safety Organization Nagpur for LiteSafe Composite Cylinder manufactured at newly established production facility at Daman.

The Board of Directors has recommended a dividend @ Rs. 0.45 per Equity Share of the Company.

Valuation

The stock was trading at around Rs 38.7 at BSE.

The promoter has pledged 24.43% of total shareholding of promoter & promoter group and 15.12% of the total share capital of the company.

The promoter holding in the company is at 61.88%.