Other income grew 230% to Rs 99 lakh. Interest cost also fell 22% to Rs 25 lakh.

As deprecation fell 3% to Rs 2.94 crore, PBT fell 52% to Rs 1.71 crore.

Provision for taxation was up 64% to Rs 1.08 crore after which PAT fell 78% to Rs 63 lakh.

Nine months results

Sales for the nine months ended December 2014 grew 1% to Rs 248.77 crore. OPM fell 350 basis points from 7.5% to 4.0% which saw OP falling 46% to Rs 9.98 crore.

Other income fell 6% to Rs 3.74 crore. Interest cost went up 2% to Rs 83 lakh.

As deprecation fell 5% to Rs 8.40 crore, PBT fell 65% to Rs 4.49 crore.

EO gain stood at Rs 29.00 crore against nil. Thus PBT after EO grew 163% to Rs 33.49 crore.

EO represents gain of Rs 2.82 crore due to sale of fixed assets and Rs 74 lakh for the devolvement of bank guarantee on the company which was issued to the subsidiary of the company.

Provision for taxation was up 176% to Rs 9.85 crore after which PAT grew 158% to Rs 23.64 crore.

Quarter Segment results

For the quarter, sales from the Consumables segment grew 3% to Rs 69.31 crore and accounted for 80% of sales. PBIT from the same fell 18% to Rs 5.84 crore and accounted for 121% of total.

For the quarter, sales from the Equipments & Project Engineering division fell 2% to Rs 17.64 crore and accounted for 20% of sales. PBIT from the same stood at a loss of Rs 1.01 crore against a profit of Rs 24 lakh.

Nine month Segment results

For the nine month, sales from the Consumables segment fell 2% to Rs 188.26 crore and accounted for 76% of sales. PBIT from the same fell 22% to Rs 16.35 crore and accounted for 146% of total.

For the nine months, sales from the Equipments & Project Engineering division grew 15% to Rs 60.51 crore and accounted for 24% of sales. PBIT from the same stood at a loss of Rs 5.12 crore against a profit of Rs 1.82 crore.

Outlook

Welding industry and in turn AWL will grow as investment cycle picks up in future. Welding industry caters to wide range of industrial segments such as transportation (auto and ship building), oil and gas (pipelines, platforms and rigs), fabrication of structures for power station / railways / mines / irrigation and such other basic industries. Hence pick up in industrial activity and investment cycle in any of these segments will help AWL.

Valuation

The share price trades at Rs 221.