• The value of production for the quarter was higher by 28% to Rs 85.32 crore even as the operating income (excluding other operating income) was up by 18% to Rs 78.66 crore. Sales lower than value of production for the quarter reflects built up in inventory, which will get liquidated in coming months.
• Sales including other operating income were higher by 19% to Rs 80.94 crore and of which export sales was Rs 26.71 crore. Upside in revenue for the period was powered by industrial switchgear business (up 36%) and energy management business (up 600%). While the revenue of copper business was up marginally by 1% that of building products was down by 9%.
• Operating profit margin contracted by 40 bps to 13.4% and this can be explained by lower staff and other expenses. Material cost as proportion to sales net of stocks was up by 200 bps to 70.1%. But the staff cost and OE was lower by 40 bps (to 5.2%) and 20 bps (to 11.4%) respectively. Operational expenses for quarter ended Sep 2015 include onetime TDS expenses of Rs 0.46 crore on account of employee stock options. If we exclude this one off item from expenses the OPM would have been marginally higher by 10 bps to 13.9%.
• Other income was up by 45% to Rs 0.17 crore. The interest cost and depreciation was lower by 14% (to Rs 2.73 crore) and 2% (to Rs 1.96 crore). Thus the PBT was up by 47% to Rs 6.31 crore.
• Taxation in absolute terms was up by 65% to Rs 1.69 crore. And the tax rate too stood higher at 26.8% compared to 24.0% in corresponding previous quarter. Thus the growth at PAT was higher at 42% to Rs 4.62 crore.

Half Yearly performance

Standalone sales were higher by 26% to Rs 172.09 crore. But with operating margin expand by 30 bps the operating profit was up at Rs 23.25 crore, a rise of 29%. After accounting for higher other income, higher interest and depreciation, the PBT was higher by 58% to Rs 13.09 crore. Taxation was higher by 82% to Rs 3.41 crore and thus the PAT was higher by 51% to Rs 9.67 crore.

Other developments

Share capital of the company increased by 3.0160 crore consequent to allotment of 3.75 lakh shares of Rs 10 each against exercise of share warrants by the promoters and allotment of 26.41 lakh equity share of Rs 10 each under QIP. The company raised Rs 62.06 crore of capital through QIP.

Management comment

R Doraiswamy, Joint Managing Director of the company commenting on the results said, "The revenues have grown in line with our expectations especially from the more profitable segment of industrial switchgear. The successful raising of funds through the QIP has provided us capital to invest in on-going as well as new projects. We are very positive about our technical alliance with Trafomodern and are in talking with other leading manufacturers to add more riche products to our suite of offerings."

The stock hovers around Rs 228.10.