Operating margins of the company fell 40 bps to 16.9% as cost of material consumed as a percentage of net sales (net of stock adjustment) rose 470 bps to 50.4% limited by 130 bps fall in employee benefit expenses to 19.8%, 20 bps decrease in purchase of stock in trade to 0.6% and 100 bps fall in other expenses to 23%. As a result operating profits decreased 6% to Rs 21.75 crore.

Other income fell 45% to Rs 0.46 crore. PBDIT decreased 7% to Rs 22.21 crore.

Interest cost was down 12% to Rs 1.65 crore. PBDT declined 7% to Rs 20.56 crore.

Depreciation rose 1% to Rs 3.55 crore. PBT before EO as a result fell 8% to Rs 17.01 crore. The company had nil EO items compared to EO expenditure of Rs 2.48 crore representing diminution in value of investment. PBT after EO rose 6% to Rs 17.01 crore

Considering 20 bps fall in effective tax rate to 36.4% net profit rose 6% to Rs 10.82 crore.

Segment Results

Chemicals: For the quarter ended March 2017, the sales of chemical division decreased 1% to Rs 84.3 crore representing 65% of total revenues of the company. PBIT was up 2% to Rs 20.61 crore, representing 81% of total PBIT. The capital employed decreased 17% to Rs 84.91 crore representing 29% of total capital employed.

For FY'17 chemical division revenues rose 4% to Rs 306.75 crore representing 69% of total revenues while PBIT decreased 5% to Rs 77.42 crore representing 77% of total PBIT.

Engineering: Engineering division contributed 9% of the company's total revenues in Q4FY'17 which fell 44% to Rs 12.14 crore. PBIT was Rs 0.05 crore compared to Rs 2.24 crore in Q4FY'16. The capital employed decreased 27% to Rs 5.96 crore representing 2% of total capital employed. For FY'17 engineering division revenues fell 10% to Rs 34.6 crore representing 8% of total revenues while PBIT was Rs 2.93 crore compared to loss of Rs 4.55 crore in FY'16.

Shoppertainment: For the quarter ended March 2017, the sales of Shoppertainment division decreased 10% to Rs 7.15 crore representing 6% of total revenues of the company. PBIT was down 2% to Rs 3.68 crore, representing 14% of total PBIT. The capital employed was down 13% to Rs 89.91 crore representing 31% of total capital employed.

For FY'17 Shoppertainment division revenues rose 3% to Rs 25.43 crore representing 6% of total revenues while PBIT increased 19% to Rs 13.47 crore representing 13% of total PBIT.

Paints: Paints division contributed 25% of the company's total revenues in Q4FY'17 at Rs 22.66 crore compared to Rs 18.10 crore in Q4FY'16. PBIT reported was Rs 0.87 crore compared to Rs 1.43 crore in Q4FY'16. The capital employed increased 25% to Rs 79.65 crore representing 27% of total capital employed.

For FY'17 paints division revenues rose 16% to Rs 66.72 crore representing 15% of total revenues while PBIT was Rs 5.05 crore compared to loss of Rs 2.27 crore.

Oil: For the quarter ended March 2017, the sales of oil division were flat at Rs 2.36 crore representing 2% of total revenues of the company. PBIT was down 39% to Rs 0.87 crore, representing 3% of total PBIT. The capital employed increased 35% to Rs 3.82 crore representing 1% of total capital employed.

For FY'17 oil division revenues fell 1% to Rs 9.94 crore representing 2% of total revenues while PBIT increased 30% to Rs 1.89 crore representing 2% of total PBIT.

In FY'17 overall top-line rose 5% to Rs 441.94 crore compared to corresponding previous year period while net profit of the company rose 31% to Rs 51.2428.84 crore.

Operating margins of the company rose 190 bps to 19.7% leading 15% growth in operating profits to Rs 86.89 crore.

Other income fell 45% to Rs 2.83 crore. PBDIT increased 12% to Rs 89.72 crore.

Interest cost was down 32% to Rs 5.97 crore. PBDT improved 17% to Rs 83.75 crore

Depreciation fell 2% to Rs 13.88 crore. PBT before EO as a result rose 22% to Rs 69.87 crore.

The company reported nil EO items compared to Rs 4.86 crore (Rs 2.48 crore representing diminution in value of investment and Rs 2.48 crore paid towards voluntary retirement scheme) in the corresponding previous year. PBT after EO rose 33% to Rs 69.87 crore.

Considering 90 bps rise in effective tax rate to 26.7% net profit rose 31% to Rs 51.24 crore.

The scrip is currently trading at Rs 39.65