• Revenue (excluding other operating income and other income) was down by 11% to Rs 161.47 crore. Other operating income was a write off of Rs 0.07 crore compared to an income of Rs 3.41 crore. Thus the net operating income was down by 13% to Rs 161.40 crore.
• Operating profit margin expanded by 280 bps to 21.6%. This can be explained by lower Repair & maintenance cost and fuel cost as well as flat other expenses. Though staff cost and spares and stores cost stood higher that could not fully offset the gain in other cost heads facilitating margin expansion. Staff cost as proportion to sales was up by 480 bps to 16.9%. Similarly the spares cost was up by 350% to 8.7%. However the R&M cost and Fuel cost was down by 760 bps (to 7.5%) and 350 bps (to 34.8%) respectively. The OE was flat at 10.6%.
• Other income was up by 14% to Rs 2.56 crore. The interest cost was down by 28% to Rs 4.97 crore. The depreciation was up by 6% to Rs 23.93 crore. Thus the PBT was higher by 13% to Rs 8.59 crore.
• Taxation was higher by 77% to Rs 0.62 crore and the tax rate was higher at 7.2% compared to 4.6% in corresponding previous quarter. Thus the growth at PAT moderated and stood at 9% to Rs 7.97 crore.

Nine month performance

Standalone sales were lower by 10% to Rs 489.14 crore. But with operating margin expand by whopping 620 bps the operating profit stood higher by 19% to Rs 126.26 crore. After accounting for higher other income, lower interest and higher depreciation the PBT more than doubled (up 105%) to Rs 44.35 crore. EO for the quarter was nil compared to an income of Rs 1.14 crore in the corresponding previous period. Thus on inflated base, the PBT (after EO) was up by 94% to Rs 44.35 crore. Taxation in absolute term was higher by 105% to Rs 2.38 crore. Thus the PAT was up by 94% to Rs 41.97 crore.

Other developments

 In compliance with the notification no.GSR 627(E) dated 29/08/2014, the company changed its accounting policy on depreciation with regard to componentization of dredgers with effect from 01/04/2015. This has resulted in decrease of profit by Rs 1.35 crore for the quarter ended 31/12/2015.

Pursuant to the company claims vide its letter dated 06-06-2012 for the works executed in Sethusamudram project, the company is of the view that the actual expenditure incurred on this project will be reimbursed by GOI to DCI and the same is under active consideration by the Ministry. In view of this, provision for doubtful debts has not been made in respect of receivables amounting to Rs 84.1391 crore.

As regards the equity investment made in Sethusamudram Corporation Ltd amounting Rs 30 crore the management does not consider any diminution for the value of investment and the same has been carried at cost during the current quarter. The Company's review petition filed before SEBI vide Lr No. DCI/CS/E. 1/2015 is pending. SEBI vide its letter no.NSE/LIST/32058 dated 05/11/2015 has decided that the instant qualification has been addressed by the company in the subsequent financial years and ensured that it is free from such qualification and accordingly it will be treated as adequate compliance with the requirement of SEBI's directions in their dated Dec 26, 2014.

The stock hovers around Rs 323.