• Sales were higher by 2% to Rs 202.58 crore with all the three business streams register growth for the quarter ended December 2015. While the revenue of Engineering business was up by 2% to Rs 113.07 crore (or 53% of sales)that of chemicals and consumer products was up by 2% and 35% respectively to Rs 79.36 crore (or 37% of sales) and Rs 22.15 crore (or 10% of sales).

• Upside at EBIT level is largely due to engineering and chemicals business rather than consumer products. The EBIT of both engineering and chemicals was up by 9% (to RS 4.15 crore) and 21% (to Rs 11.52 crore) respectively facilitated by modest increase in sales together with impressive increase in segment margin. Segment margin of engineering expanded by 30 bps to 3.7% and that of chemicals was up by 230 bps to 14.5%. On the other hand the segment margin of consumer products continues to be negative at 4.2% coming down from 4.9% in corresponding previous period. Thus despite mid single digit growth in segment revenue its EBIT was a loss of Rs 0.94 crore compared to a loss of Rs 0.80 crore in the corresponding previous period.

• OPM expanded by 130 bps to 6.6% and that is largely due to lower material and lower other cost as the staff cost and cost of traded goods stood higher for the quarter. Material cost as proportion to sales net of stocks was down by 190 bps to 64% that of other costs was down by 150 bps to 14.3%. On the other hand the cost of traded goods and staff cost was up by 40 bps and 160 bps respectively. Thus despite modest sales growth but facilitated by higher OPM, the operating profit was up by 27% to Rs 13.44 crore.

• Other income was lower by 13% to Rs 2.52 crore. However the interest and depreciation cost was lower by 3% and 10% respectively to Rs 2.70 crore and Rs 2.57 crore. Thus propelled the PBT was up by 37% to Rs 10.69 crore.

• Taxation in absolute term was up by 47% to Rs 3.34 crore and the effective tax rate for the quarter was also stood higher at 31.2% compared to 29% in the corresponding previous period. Thus the net profit was eventually higher by 32% to Rs 7.35 crore.

Nine month performance

Standalone sales were higher by 13% to Rs 560.88 crore upside coming largely from engineering business whose sales were up by 20% to Rs to Rs 306.40 crore. The segment sales of chemicals and consumer products were up by 7% and 5% respectively to Rs 222.10 crore and RS 60.45 crore. At EBIT level while that of engineering was up by 61% (to Rs 10.20 crore) that of chemicals was up by 21% (to Rs 31.53 crore). The segment profit of consumer products continue to be in red with a loss of Rs 3.37 crore compared to a loss of Rs 1.98 crore in the corresponding previous period. The PBT was up by 53% to Rs 26.76 crore. After accounting for tax provision of RS 8.91 crore (up 64%) the net profit was eventually up by 48% to Rs 17.85 crore.