• The value of production for the quarter was down by 7% to Rs 252.02 crore even while the sales (excluding other operating income) was down by 5% to Rs 268.57 crore. Value of production is 6.2% lower than sales for the quarter. In comparison value of production in corresponding previous period was lower by just 4.1% that the sales for that period. This reflects higher liquidation of stocks build up during the quarter compared to corresponding previous quarter. Other operating income was down by 5% to Rs 6.01 crore and thus the sales were down by 5% to Rs 274.58 crore.
• Operating profit margin expanded by 240 bps to 9.6% and that can be attributed to sharp fall in material cost (including cost of traded goods). Material cost as proportion to sales net of stocks was down by 530 bps to 70.3%. But the staff cost and OE was higher by 100 bps (to 4.1%) and 160 bps (to 15.3%) respectively. Lower metal prices, better product mix and optimal capacity utilization seems have facilitated the operating profit margin.
• Other income was down by 36% to Rs 0.26 crore. The interest cost was up by 10% to Rs 10.65 crore. The depreciation was higher by 38% to Rs 3.64 crore. Thus the PBT was up by 37% to Rs 12.43 crore.
• Taxation was up by 80% to Rs 4.80 crore with tax rate stood higher at 38.6% compared to 29.5% in corresponding previous quarter. Thus the growth at PAT stood restricted to 20% to Rs 7.63 crore. Prior Period Adjustment was nil for the quarter and corresponding previous period. Thus the net profit was up 20% to Rs 7.63 crore.
• The pipe/sheet/structure segment registered 33% growth in segment profit to Rs 18.71 crore despite nearly flat segment sales (up 1% to RS 238.01 crore) facilitated by 190 bps expansion in its segment margin to 7.9%. Similarly aided by 310 bps expansion in segment margin, the degrowth in segment profit of engineering goods stood restricted to 5% (to Rs 4.12 crore) despite its sales was down by 31% to Rs 36.57 crore.

Consolidated sales for the quarter ended June 2015 was Rs 277.59 crore and the net profit was Rs 7.22 crore.

Yearly performance

Standalone sales were higher by 9% to Rs 1086.47 crore. But with operating margin expand by 70 bps the growth at operating profit was at Rs 83.21 crore, a rise of 19%. After accounting for higher other income, higher interest and higher depreciation the PBT was higher by 30% to Rs 36.38 crore. Taxation was lower by 11% to Rs 9.13 crore and thus the PAT was higher by 54% to Rs 27.24 crore.

The stock hovers around Rs 99.85.