• The value of production for the quarter was lower by 7% to Rs 22.73 crore. But the operating income (excluding other operating income) was down by 12% to Rs 21.29 crore. Value of production for the quarter and corresponding previous period was 6.7% and 0.8% higher than their respectively operating income reflecting strong inventory built up during the quarter, which will get liquidated going forward.
• The other operating income was down by 41% to Rs 0.07 crore and thus the operating income was down by 13% to Rs 21.37 crore. The OPM was up by 160 bps to 20.8% and thus the fall at operating profit restricted to 5% (to Rs 4.44 crore).
• Strong 160 bps expansion in operating profit margin was largely due to lower staff and OE. Material cost as proportion to sales net of stocks was higher by 40 bps to 36.2%. However the staff cost was down by 10 bps to 24.1%. Similarly that of OE was down by 80 bps (to 20.3%). The OPM expanded as higher material cost was more than offset by lower staff and OE.
• Other income was down by 6% to Rs 0.04 crore. The interest cost was up by 4% to Rs 0.84 crore. But the depreciation was down by 11% to Rs 1.78 crore. Thus the PBT was down by 3% to Rs 1.86 crore.
• Taxation in absolute terms was lower by 35% to Rs 0.61 crore and the tax rate stood lower at 32.7% compared to 49.1% in corresponding previous quarter. Spurred thus the growth at PAT level was up 28% to Rs 1.25 crore.

Nine month performance

Standalone sales were lower by 11% to Rs 63.52 crore. But with operating margin expand by 170 bps the operating profit was down by 3% to Rs 12.88 crore. After accounting for lower other income, higher interest and lower depreciation the PBT was down by just 2% to Rs 5.23 crore. EO expenses for the period as well as corresponding previous period were nil. The taxation was down by 3% to Rs 1.97 crore. Thus the PAT was lower by 2% to Rs 3.25 crore.

The stock hovers around Rs 59.