• The value of production for the quarter was lower by 75 to Rs 175.23 crore even while the sales (excluding other operating income) was down by 9% to Rs 172 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 140 bps to 3.8%. This can be explained by rise in cost at all cost heads. Material cost as proportion to sales net of stocks was up by 70 bps to 90.3%. But that of staff cost was up by 50 bps to 2.2%. The freight cost was up by 10 bps to 1.0%. Similarly the Power & Fuel as well as other expenses stood higher by 30 bps and 10 bps respectively to 1.6% and 1.3% respectively.
  
• Other income was down by 24% to Rs 0.63 crore. The interest cost was up by 4% to Rs 3.78 crore. The depreciation was down by 15% to Rs 1.81 crore. Thus the PBT was down by 68% to Rs 1.64 crore.
  
• Taxation was down by 70% to Rs 0.53 crore and the tax rate was down at 32.5% compared to 34.3% in corresponding previous quarter. Thus the PAT was lower by 67% to Rs 1.11 crore. PPT was a write back of Rs 0.02 crore compared to a provision of Rs 0.01 crore. Thus the net profit was down by 66% to Rs 1.13 crore.

Half Yearly performance

Standalone sales were lower by 4% to Rs 366.85 crore. But with operating margin contract by 110 bps the operating profit stood lower by 23% to Rs 15.80 crore. After accounting for lower other income, lower interest and lower depreciation the PBT was lower by 43% to Rs 5.72 crore. Taxation in absolute term was lower by 41% to Rs 2.05 crore. Thus the PAT was lower by 44% to Rs 3.67 crore. Finally the net profit was down by 44% to Rs 3.70 crore as the PPT was a write back of Rs 0.02 crore as against expense of Rs 0.01 crore in the corresponding previous period.

The stock hovers around Rs 34.80.