• Marginal upside in revenue is largely on account of higher sales of both chemicals and consumer products business as the segment sales of engineering stood flat. Segment sale of engineering was flat at Rs 142.43 crore (or 56% of sales). The segment sales of chemicals was up by 4% to Rs 82.82 crore and that of consumer products was up by 6% to Rs 26.44 crore.

• Impressive 15% growth in EBIT is largely due to strong growth in segment profit of Chemicals. Segment profit of chemicals stood higher by 33% (to Rs 19 crore or 73% of EBIT) spurred by higher sales as well as 490 bps expansion in segment margin to 22.9%. But with the segment margin of Engineering stand contract (by 80 bps to 5.3%) on a flat sales, the segment profit of engineering was down by 14% to Rs 7.58 crore. Despite higher sales the consumer products registered segment loss of Rs 0.38 crore compared to a loss of Rs 0.32 crore in the corresponding previous period.

• Operating profit margin expanded by 240 bps to 11.6% and this is largely on account of lower material cost and other expenses. The material cost (including cost of traded goods) as % to sales net of stocks was lower by 210 bps (to 66.1%). The other expenses were lower by 120 bps to 14%. However the staff cost was up by 80 bps to 8.3%.

Yearly performance

Standalone sales for the period were higher by 9% to Rs 800.06 crore. As OPM expand by 60 bps the growth at operating profit was 18% (to Rs 59.74 crore). The PBT before EO was up by 35% to Rs 51.36 crore after accounting for higher other income, lower interest and higher depreciation cost. EO (net) for the period as well as corresponding previous period was nil. But with taxation stand higher by 42% (to Rs 16.87 crore), the net profit was eventually higher by 32% to Rs 34.49 crore.

Consolidated sales was higher by 9% to Rs 869.45 crore and the operating profit was up by 19% to Rs 55.65 crore gained by higher sales and 60 bps expansion in OPM. Eventually the net profit (after minority interest) was up by 57% to Rs 15.31 crore.

The stock hovers around Rs 351.15.