• The value of production for the quarter was flat at Rs 192.59 crore even while the sales (excluding other operating income) was up by 3% to Rs 188.86 crore. Sales lower than value of production is largely on account of inventory built up, which will get liquidated in coming quarters.
  
• Operating profit margin contracted by 80 bps to 4.8%. This can be explained by rise in cost at all cost heads barring P&F and OE which stood flat. Material cost as proportion to sales net of stocks was up by 30 bps to 89.7%. But that of staff cost was up by 30 bps to 1.9%. The freight cost was up by 10 bps to 0.9%. However the Power & Fuel as well as other expenses stood flat at 1.8% and 1.1% respectively.
  
• Other income was down by 49% to Rs 0.38 crore. The interest cost was down by 6% to Rs 3.75 crore. The depreciation was down by 23% to Rs 1.73 crore. Thus the PBT was down by 20% to Rs 4.09 crore.
  
• Taxation was down by 13% to Rs 1.52 crore but the tax rate was higher at 37.2% compared to 34.9% in corresponding previous quarter. Thus the PAT was lower by 21% to Rs 2.57 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.

The stock hovers around Rs 40.00.