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.

September 2015 quarter results

In quarter ended September 2015, sales fell 10% to Rs 127.39 crore.

OPM fell 370 basis points from 10.1% to 6.4% which saw OP fall 43% to Rs 8.13 crore.

Other income grew 59% to Rs 2.26 crore.

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

As depreciation fell 11% to Rs 5.95 crore, PBT fell 51% to Rs 5.44 crore.

Provision for taxation fell 61% to Rs 3.47 crore after which PAT fell 47% to Rs 3.47 crore.

FY 2015 results

In year 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.

Quarter Segment results

For the quarter, sales from the Machine Tools fell 14% to Rs 16.54 crore and accounted for 13% of sales. PBIT from the same stood at a loss of Rs 1.20 crore against a profit of Rs 1.76 crore and accounted for -13% of total.

For the quarter, sales from the Hard Metals and Hard Metals Products fell 9% to Rs 110.85 crore and accounted for 87% of sales. PBIT from the same fell 17% to Rs 10.44 crore and accounted for 113% 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.

Strategy going forward

Going forward the company hopes to consolidate and grow its core business and enhance its market reach by expanding distribution channel.

It also plans to diversify and has increased focus in aerospace, defence, railways segments.

It is also exploring exports of its Machining Solutions Group (MSG) products.

Valuation

The share price trades at Rs 783.