• Sales net of excise duty was up by 3% to Rs 700.33 crore and the growth is largely driven by higher domestic sales as exports was down by 40% to Rs 33 crore. Upside in revenue is largely due to higher sales from Industrial, Large engines and after sales. While the industrial sales was up by 16% to Rs 133 crore, the large endings was up by 47% to Rs 49 crore. The aftermarket sales were up by 6% to Rs 99 crore. However the sales of power gen and agri was down by 2% and 9% respectively to Rs 297 crore and Rs 111 crore.
  
• Gross sales excluding excise duty and other operating income) was up by 3% to Rs 754.43 crore. But the value of production for the quarter was up by 4% to Rs 753.86 crore. This reflects liquidation of earlier period stocks.
  
• Operating profit margin contracted by 500 bps to 8.9% and this is largely due to rise in all cost heads barring cost of traded goods. The material cost as % to sales net of stocks and excise duty was up by 220 bps (to 50.2%) as the prices of pig iron is on ascent recently. And the staff cost was up by 150 bps (to 7%) and other expenses was up 220 bps to 20.5%. However the cost of traded goods was down by marginal 40 bps to 12.6%.
  
• Other income was higher by 16% to Rs 21.17 crore. The interest cost (net) was down by 44% to Rs 0.56 crore. The depreciation was down by 11% to Rs 28.16 crore. Thus the fall at PBT (before EO) was 32% to Rs 59.63 crore.
  
• EO income for the quarter was nil compared to an EO expense of Rs 15.10 crore in corresponding previous quarter. Thus on deflated base the PBT (after EO) was down by 18% to Rs 59.63 crore. The taxation in absolute terms was up by 8% to Rs 15.41 crore and tax rate was higher at 25.8% compared to 19.6% in corresponding previous period. Hit thus the net profit was down by 24% to Rs 44.22 crore.
  
• The other comprehensive income net of tax was an income of Rs 0.09 crore compared to an income of Rs 0.01 crore in the corresponding previous period. Thus the total comprehensive income was down by 24% to Rs 44.31 crore.

Yearly performance

Sales net of excise was higher by 9% to Rs 2875.15 crore. However hit by 70 bps contraction in OPM to 9.8%, the growth at operating profit was restricted to 2% to Rs 280.75 crore. The PBT (before EO) was up by 9% (to Rs 252.30 crore) after accounting for lower interest cost, higher depreciation and higher other income. The EO item is nil for the period as against an expense of Rs 25.48 crore in corresponding previous period. Thus on deflated base, the PBT after EO was up by 23% to Rs 252.30 crore. The taxation jumped up by 98% to Rs 78.68 crore and thus hurt the PAT was eventually higher by just 5% to Rs 173.62 crore.

The company to pay a final dividend of Rs 5 per equity share of Rs 2 face value each for 2016-17.

The stock hovers around Rs 401.20.