Operating margins of the company fell 210 bps to 19.5% leading 2% increase in operating profits to Rs 20.67 crore. Cost of material consumed as a percentage of net sales (net of stock adjustment) fell 310 bps to 44.8%. Employee benefit expenses increased 60 bps to 12.7%. Purchase of stock in trade was up 10 bps to 0.4% while other expenses rose 200 bps to 21.3%.

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

Interest cost was down 35% to Rs 0.39 crore. PBDT increased 8% to Rs 22.26 crore.

Depreciation rose 2% to Rs 3.57 crore. PBT as a result rose 10% to Rs 18.69 crore. Considering 1140 bps fall in effective tax rate to 31.5% net profit fell 6% to Rs 12.81 crore.

Segment Results

Chemicals: For the quarter ended June 2017, the sales of chemical division decreased 1% to Rs 72.95 crore representing 61% of total revenues of the company. PBIT was down 4% to Rs 18.88 crore, representing 77% of total PBIT. The capital employed decreased 9% to Rs 85.23 crore representing 27% 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 12% of the company's total revenues in Q1FY'18 which rose 243% to Rs 14.09 crore. PBIT reported a loss of Rs 0.19 crore compared to loss of Rs 0.73 crore in Q1FY'17. The capital employed decreased 19% to Rs 5.56 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 June 2017, the sales of Shoppertainment division increased 59% to Rs 7.58 crore representing 6% of total revenues of the company. PBIT was up 247% to Rs 5.21 crore, representing 21% of total PBIT. The capital employed was down 10% to Rs 90.45 crore representing 29% 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 18% of the company's total revenues in Q1FY'18 at Rs 21.4 crore compared to Rs 17.57 crore in Q1FY'17. PBIT reported was Rs 0.59 crore compared to Rs 1.62 crore in Q1FY'17. The capital employed increased 24% to Rs 79.58 crore representing 25% 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 June 2017, the sales of oil division fell 22% to Rs 2.28 crore representing 2% of total revenues of the company. PBIT was down 94% to Rs 0.03 crore, representing negligible PBIT. The capital employed increased 17% to Rs 3.04 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 38.65