OPM stood at around 9% lower by 80 bps due to higher advertisement for publicity of high horse power engines and adverse product mix compared to last year. Lower agri and power tillers sales also affected margins which lead to an overall 3% fall in OP to Rs 57.90 crore. Interest cost was lower by 61% to Rs 0.84 crore and depreciation was up by 2% to Rs 27.56 crore. There was an EO expense of Rs 10.38 crore pertaining to VRS expenditure as compared to Nil for Dec'16 quarter. PBT after EO stood at Rs 47.10 crore up by 25% YoY. Tax stood at Rs 19.03 crore, up by 111% due to lower tax benefits on R&D expenditure for Dec'16 quarter compared to Dec'15 quarter, thus PAT stood at Rs 28.07 crore, down by 3% YoY.

Performance for the 9 months ended Dec'16

For 9 months ended Dec'16, Net sales were higher by around 11% and stood at Rs 1968.75 crore. OPM was higher by 100 bps to 10.8% leading to a 22% growth in OP to Rs 213.57 crore. Other income was higher by 14% to Rs 63.86 crore. Interest cost was lower by 72% to Rs 2.24 crore and depreciation was up by 3% to Rs 82.52 crore. PBT thus was up by 35% to Rs 192.67 crore. There was an EO expense of Rs 10.38 crore for the 9 months ended Dec'15 regarding VRS as compared to Nil for 9 months ended Dec'16 period. After providing total tax of Rs 63.27 crore, up by 149% largely due to MAT credit of Rs 22 crore for 9 months ended Dec'15 as compared to Nil for 9 months ended Dec'16, PAT for 9 ended Dec'16 stood at Rs 129.40 crore, up by 21% YoY.