Operating margins of the company rose 410 bps to 21.9% as cost of material consumed as a percentage of net sales (net of stock adjustment) fell 410 bps to 47.4% and other expenses fell 40 bps to 18.3% limited by 20 bps increase in purchase of stock in trade to 0.7% and 20 bps rise in employee benefit expenses to 11.7%. As a result operating profits increased 24% to Rs 22.37 crore.

Other income rose 75% to Rs 1.26 crore. PBDIT increased 26% to Rs 23.63 crore.

Interest cost was down 29% to Rs 2.64 crore. PBDT improved 40% to Rs 20.99 crore.

Depreciation fell 32% to Rs 3.3 crore. PBT as a result rose 75% to Rs 17.69 crore.

Considering 1180 bps rise in effective tax rate to 20.9% net profit rose 53% to Rs 13.99 crore.

Segment Results

Chemicals: For the quarter ended September 2015, the sales of chemical division increased 11% to Rs 75.78 crore representing 73% of total revenues of the company. PBIT was up 36% to Rs 22.69 crore, representing 91% of total PBIT. The capital employed increased 2% to Rs 99.09 crore representing 41% of total capital employed.

For H1FY'16 chemical division revenues rose 6% to Rs 136.54 crore representing 70% of total revenues while PBIT increased 26% to Rs 40.2 crore representing 95% of total PBIT.

Engineering: Engineering division contributed 5% of the company's total revenues in Q2FY'16 which fell 54% to Rs 5.46 crore. PBIT was negative at loss of Rs 1.64 crore compared to profit of Rs 0.32 crore in Q2FY'15. The capital employed decreased 56% to Rs 6.16 crore representing 3% of total capital employed. For H1FY'16 engineering division revenues fell 34% to Rs 14.32 crore representing 7% of total revenues while PBIT was negative at loss of Rs 3.89 crore compared to profit of Rs 0.72 crore in H1FY'15.

Shoppertainment: For the quarter ended September 2015, the sales of Shoppertainment division decreased 11% to Rs 5.31 crore representing 5% of total revenues of the company. PBIT was up 25% to Rs 3.13 crore, representing 13% of total PBIT. The capital employed increased 1% to Rs 103.36 crore representing 43% of total capital employed.

For H1FY'16 Shoppertainment division revenues fell 6% to Rs 11.07 crore representing 6% of total revenues while PBIT increased 23% to Rs 6.73 crore representing 16% of total PBIT.

Paints: Paints division contributed 13% of the company's total revenues in Q2FY'16 at Rs 13.3 crore compared to Rs 13.49 crore in Q2FY'15. PBIT reported was profit of Rs 0.23 crore compared to loss of Rs 1.08 crore in Q2FY'15. The capital employed decreased 1% to Rs 63.67 crore representing 26% of total capital employed.

For H1FY'16 paints division revenues rose 6% to Rs 26.74 crore representing 14% of total revenues while losses at PBIT decreased 3% to Rs 1.26 crore.

Oil: For the quarter ended September 2015, the sales of oil division increased 32% to Rs 2.63 crore representing 3% of total revenues of the company. PBIT was up 291% to Rs 0.43 crore, representing 2% of total PBIT. The capital employed increased 36% to Rs 2.89 crore representing 1% of total capital employed.

For H1FY'16 oil division revenues rose 22% to Rs 5.08 crore representing 3% of total revenues while PBIT increased 55% to Rs 0.73 crore representing 2% of total PBIT.

In H1FY'16 overall top-line rose 1% to Rs 192.65 crore in H1FY'16 compared to corresponding previous year period while net profit of the company rose 28% to Rs 21.17 crore.

Operating margins of the company rose 250 bps to 20.4% as cost of material consumed as a percentage of net sales (net of stock adjustment) fell 440 bps to 46.8% limited by 10 bps rise in other expenses to 18.9%, 10 bps increase in purchase of stock in trade to 0.7% and 80 bps rise in employee benefit expenses to 12.9%. As a result operating profits increased 15% to Rs 39.24 crore.

Other income rose 143% to Rs 2.38 crore. PBDIT increased 19% to Rs 41.62 crore.

Interest cost was down 26% to Rs 5.49 crore. PBDT improved 31% to Rs 36.13 crore

Depreciation fell 19% to Rs 6.92 crore. PBT before EO as a result rose 53% to Rs 29.21 crore.

The company reported EO expense of Rs 2.38 crore related to payments made to employees at the paints division at Chembur, who opted for voluntary scheme announced by the company compared to nil in the corresponding previous year period.

PBT after EO rose 40% to Rs 26.83 crore.

Considering 740 bps rise in effective tax rate to 21.1% net profit rose 28% to Rs 21.17 crore.

The scrip is currently trading at Rs 26.8