Other income grew 44% to Rs 1.56 crore. Interest cost jumped 74% to Rs 54 lakh.

As deprecation fell 29% to Rs 2.86 crore, PBT before EO fell 20% to Rs 12.56 crore.

EO loss was Rs 35 lakh against Rs 89 lakh. Thus PBT after EO fell 17% to Rs 12.21 crore.

Provision for taxation fell 41% to Rs 3.58 crore after which PAT ended at Rs 8.63 crore, down 1%.

FY 2016 results

Sales for FY 2016 rose 5% to Rs 406.83 crore. OPM rose 290 basis points to 10.0% which saw OP growing 49% to Rs 40.74 crore.

Other income fell 2% to Rs 5.56 crore. Interest cost jumped 126% to Rs 86 lakh.

As deprecation fell 6% to Rs 11.66 crore, PBT jumped 68% to Rs 33.78 crore.

EO loss was Rs 1.95 crore against a gain of Rs 28.11 crore. Thus PBT after EO fell 34% to Rs 48.27 crore.

Provision for taxation went down 42% to Rs 9.18 crore after which PAT fell 30% to Rs 22.65 crore.

Segment results

For the quarter, sales from the Consumables segment grew 7% to Rs 89.13 crore and accounted for 59% of sales. PBIT from the same jumped 56% to Rs 13.35 crore and accounted for 75% of total.

For the quarter, sales from the Equipments & Project Engineering division grew 18% to Rs 62.07 crore and accounted for 41% of sales. PBIT from the same dived 63%to Rs 4.42 crore and accounted for 25% of total.

For the FY, sales from the Consumables segment stagnated at Rs 274.70 crore and accounted for 68% of sales. PBIT from the same grew 42% to Rs 34.80 crore and accounted for 73% of total.

For the FY, sales from the Equipments & Project Engineering division went up 17% to Rs 132.13 crore and accounted for 32% of sales. PBIT from the same stood at Rs 12.59, up 27% and accounted for 27% of total.

PBIT margin of Equipments & Project Engineering Segment soars

For the quarter, PBIT margin of Equipments & Project Engineering segment grew from 10.3% to 15.0% while that of the Consumables Segment fell from 23.0% to 7.1%.

For the FY, PBIT margin of Equipments & Project Engineering segment grew from 9.0% to 12.7% while that of the Consumables Segment improved from 6.0% to 9.5%.

Outlook

Welding industry and in turn AWL will grow as investment cycle picks up in future. Welding industry caters to wide range of industrial segments such as transportation (auto and ship building), oil and gas (pipelines, platforms and rigs), fabrication of structures for power station / railways / mines / irrigation and such other basic industries. Hence pick up in industrial activity and investment cycle in any of these segments will help AWL.

Valuation

The board has declared dividend of Rs 5 per share.

The share price trades at Rs 296.