• The value of production for the quarter was down by 6% to Rs 168.32 crore even while the sales (excluding other operating income) was down by 5% to Rs 173.95 crore. Sales higher than value of production is largely on account of liquidation of stocks build up in earlier quarters.
• Operating profit margin contracted by 280 bps to 2.6%. This can be explained by rise in cost at all cost heads. Material cost as proportion to sales net of stocks was up by 160 bps to 90.9%. But that of staff cost was up by 60 bps to 2.3%. Power & Fuel was up by 20 bps to 1.8% and OE was higher by 30 bps (to 1.5%).
• Other income was down by 70% to Rs 0.63 crore. The interest cost was down by 19% to Rs 3.01 crore. The depreciation was down by 92% to Rs 0.10 crore. Thus the PBT was down by 60% to Rs 2.17 crore.
• Taxation was down by 66% to Rs 0.69 crore with tax rate being lower at 32.0% compared to 38.2% in corresponding previous quarter. Thus the PAT was lower by 56% to Rs 1.48 crore. PPT was an write back of Rs 0.14 crore compared to Rs 0.01 crore in the corresponding previous period. Thus the Net profit was down by 52% to Rs 1.62 crore.

Yearly performance

Standalone sales were higher by 6% to Rs 740.91 crore. But with operating margin expand by 60 bps the operating profit stood higher at Rs 34.12 crore, a rise of 23%. After accounting for lower other income, lower interest and higher depreciation the PBT was higher by 40% to Rs 15.08 crore. Taxation in absolute term was higher by 47% to Rs 5.39 crore and the tax rate was higher at 35.7% compared to 33.8% in the corresponding previous period. The PAT thus was higher by 36% to Rs 9.69 crore. Finally the net profit was up by 42% to Rs 9.82 crore as the PPT was a write back of Rs 0.13 crore as against expense of Rs 0.22 crore in the corresponding previous period.

Other developments

To pay dividend of Rs 1 per equity share of Rs 5 face value each for 2014-15.

The stock hovers around Rs 39.90.