It seeks to provide a competitive edge to its customers through a wide variety of standard high quality products as well as items customized to their requirements such as special purpose machines, metalworking tools, customized tooling solutions and engineered products.

June 2015 quarter results

In the fourth quarter ended June 2015, sales grew 6% to Rs 157.82 crore.

OPM jumped from 10.6 to 12.9% which saw OP rise 29% to Rs 20.33 crore.

Other income grew 35% to Rs 1.36 crore.

Interest cost was nil as the company is a debt free company.

As depreciation fell 11% to Rs 5.95 crore, PBT jumped 55% to Rs 15.74 crore.

EO income was Rs 6.47 crore against NIL.

EO comprised of profit on sale of land of Rs 5.55 crore and interest of Rs 92 lakh due to delay in disbursement of compensation from KIADB for sale of land.

Thus PBT after EO soared 119% to Rs 22.21 crore.

Provision for taxation stood at Rs 6.33 crore against a write back of Rs 9 lakh after which PAT jumped 55% to Rs 15.88 crore.

FY 2015 results

In ended June 2015, sales grew 5% to Rs 570.25 crore.

OPM improved 120 basis points to 10.5% which saw OP growing 18% to Rs 60.05 crore.

Other income fell 1% to Rs 5.54 crore.

Interest cost was nil as the company is a debt free company.

As depreciation fell 4% to Rs 25.65 crore, PBT grew 34% to Rs 39.94 crore.

EO was profit of Rs 6.47 crore against loss of Rs 10.10 crore. Thus PBT after EO jumped 137% to Rs 46.41 crore.

In FY 2015 EO comprised of profit on sale of land of Rs 5.55 crore and interest of Rs 92 lakh due to delay in disbursement of compensation from KIADB for sale of land.

In FY 2016 EO comprised of VRS and employment separation scheme.

Provision for taxation jumped 414% to Rs 12.89 crore after which PAT grew 96% to Rs 33.52 crore.

OPM in FY 2015 rises despite CSR expenses and trade shows and exhibitions

Other expense for FY 2015 includes Rs 3.33 crore relating to trade shows and exhibitions incurred once in two years.

Other expense also includes Rs 44.85 lakh towards expense incurred for Corporate Social Responsibility (CSR) expenses.

Thus OPM during FY 2015 was impacted to that extent.

Quarter Segment results

For the quarter, sales from the Machine Tools grew 35% to Rs 41.44 crore and accounted for 26% of sales. PBIT from the same jumped 130% to Rs 11.41 crore and accounted for 58% of total.

For the quarter, sales from the Hard Metals and Hard Metals Products fell 2% to Rs 116.38 crore and accounted for 74% of sales. PBIT from the same fell 19% to Rs 8.14 crore and accounted for 42% of total.

In FY 2015, sales from the Machine Tools grew 1% to Rs 103.16 crore and accounted for 18% of total. PBIT from the same jumped 44% to Rs 19.74 crore and accounted for 32% of total.

In FY 2015, sales from the Hard Metals and Hard Metals Products grew 5% to Rs 467.09 crore and accounted for 82% of sales. PBIT from the same grew 4% to Rs 41.37 crore and accounted for 68% of total.

PBIT margins of Machine Tools division jumped from 16.2% to 27.5% during the quarter and from 13.4% to 19.1% during FY 2015. .

PBIT margins of Machine Tools division fell from 8.5% to 7.2% during the quarter and from 9.0% to 8.9% during FY 2015.

Prospects have changed for the better

Automobile industry (especially M&HCV segment) is the key user industry for the company. After years of sluggish and negative growth rates, automobile industry is posting gradual recovery. Falling fuel prices and expected fall in interest rates and pick up in economy augur well for strengthening of this recovery in future. M&HCVs segment of the auto industry is also likely to post healthy growth rates.

Valuation

The share price trades at Rs 815.