December 2013 quarter – steady growth continues

Sales for the quarter ended December 2013 grew 9% to Rs 234.52 crore. OPM jumped 80 basis points from 10.1% to 10.9% which saw OP rising 19% to Rs 25.63 crore.

Other income grew 68% to Rs 2.25 crore. Interest cost was nil.

As deprecation fell 3% to Rs 2.23 crore, PBT rose 24% to Rs 25.65 crore.

Provision for taxation was up 22% to Rs 8.09 crore. Finally PAT jumped 25% to Rs 17.56 crore.

Nine month performance is also steady

Sales for the nine month ended December 2013 grew 3% to Rs 655.58 crore.

OPM improved by 30 basis points from 10.5% to 10.8% which saw OP growing 7% to Rs 71.07 crore.

Other income jumped 130% to Rs 9.62 crore. Interest cost was nil.

As deprecation fell 3% to Rs 6.53 crore, PBT fell grew 16% to Rs 74.16 crore.

Provision for taxation was up 14% to Rs 23.58 crore after which nine month PAT grew 17% to Rs 50.58 crore.

Diminution in value of investments

The diminution in value of investments of Rs 60.09 lakhs held by the company is not of a permanent nature and accordingly no provision has been made in the Accounts for the quarter and nine months period ended 31st December, 2013.

Advance of Rs 3.48 crore to Yule Agro Industries

Recoverability of the advance of Rs 3.48 crore paid to Yule Agro Industries Limited by the Parent towards proposed issue of shares and the corresponding provision, if any, as may be required, is not ascertainable at this stage, in view of the present status of activities of Yule Agro Industries Limited.

With regard to current year the management expects the company to continue its satisfactory performance as in the previous year. The company with its rich experience, brand salience, innovative business plans and strong R&D initiatives is envisaged to do well. Additionally, in view of the acquisition of Veedol International Ltd., it is well poised to explore and exploit global opportunities.

Valuation

The share price trades at Rs 7243.