• Sales was up by 2% to Rs 664.37 crore and that together with 710 bps expansion in operating profit margin to 30.9% has facilitated sharp 33% growth in operating profit to Rs 205.47 crore.
• Strong expansion in OPM can be attributed to fall in cost across all major cost heads. Cost of land and properties constructed, declined by 610 bps to 59.4%. Similarly staff cost and other expenses stood lower by 40 bps and 80 bps respectively to 2.6% and 7.0%.
• Other income was down by 78% to Rs 17.12 crore. Sharp fall in other income is largely due to inflated base. Income from sales of investments was nil for the quarter ended December 2015 compared to Rs 22.75 crore in the corresponding previous period. Excluding this the other income was higher by 68% to Rs 17.12 crore. Thus hurt by lower other income the PBIDT was down by 4% to Rs 222.59 crore.
• The interest cost in absolute term was down by 26% to Rs 81.36 crore but as proportion to operating profit too it was lower at 39.6% compared to 71.2% in the corresponding previous period. Lower interest cost was due to net debt reduced by Rs 552 crore in 9mFY16. The depreciation was down by 60% to Rs 2.28 crore. The proportion of depreciation to operating profit too was down at 1.1% compared to 3.7% in the corresponding previous period. Thus gained the PBT was up by 20% to Rs 138.94 crore.
• Taxation was up by 118% to Rs 47.64 crore with tax rate being higher at 34.3% compared to 18.9% in corresponding previous quarter. Thus the PAT stood declined by 3% to Rs 91.30 crore.
• Share of profit from associates was a loss of Rs 1.27 crore compared to a loss of Rs 5.94 crore in the corresponding previous period. The minority interest was a share of profit of Rs 9.59 crore, up by just 7%. Eventually the net profit (after MI) was up by 2% to Rs 80.44 crore.

Nine month performance

Sales were flat at Rs 2008.34 crore. But with operating margin expand by 500 bps the growth at operating profit was strong 21% to Rs 574.12 crore. After accounting for lower other income, lower interest and lower depreciation the PBT leaped by 45% to Rs 392.62 crore. The taxation was higher by 69% to Rs 119.06 crore. Thus the growth at PAT level moderated and stood at 37% to Rs 273.55 crore. The loss from associates was lower by 97% to Rs 0.65 crore. The minority interest was a profit of Rs 26.76 crore. Thus eventually the net profit (after MI) was up by 59% to Rs 246.14 crore.

Other developments

Net debt come down by Rs 225 crore and Rs 552 crore in Q3FY16 and 9mFY16. Further net debt reduction of Rs 130 crore planned and expected in Q4FY16 to achieve the target net debt of Rs 4800 crore as end of March 2016. It target to take net debt further down to Rs 3300 crore by end of March 2017.

While pending construction cost on ongoing & planned projects is of Rs 8217 crore, the pending collection from sold inventory is Rs 4119 crore, the value of unsold inventory is Rs 24366 crore thus leaving a net surplus of Rs 20268 crore, which is expected to materialize by 2019.

The stock hovers around Rs 54.20.