• Sales net of excise duty was down by 8% to Rs 18.89 crore even while the value of production was flat at Rs 20.30 crore. Sale for the quarter was 6.9% lower than value of production. On contrast the sales of corresponding previous period was 1.5% higher than value of production. This reflects inventory built up compared to inventory liquidation in the corresponding previous period. The inventory built up in first quarter ended June 2017 is expected to get liquidated going forward.
• Operating profit margin contracted by 660 bps to 12.6% and this is largely due to sharp rise in material cost as well as other cost heads. The material cost as % to sales net of stocks and excise duty was up by strong 590 bps to 33.7%. Equally the staff and other expenses was up by 60 bps and 110 bps to 28.2% and 26.3% respectively. On lower sales and lower margin the operating profit was down by 39% to Rs 2.39 crore.
• Other income jumped up by 97% to Rs 0.48 crore. Thus the fall at PBIDT stood restricted to 31% to Rs 2.87 crore. The interest cost was flat at Rs 0.76 crore and the depreciation was down by 5% to Rs 1.68 crore. But as proportion to OP the interest and depreciation stood higher at 31.9% and 69.3% respectively compared to 19.5% and 44.5%. Thus the fall at PBT (before EO) was 73% to Rs 0.45 crore.
• EO income was nil for the quarter as well as corresponding previous quarter. The taxation (net of deferred tax) in absolute terms was down by 89% to Rs 0.08 crore and tax rate was lower at 18% compared to 46.3% in corresponding previous period. Gained thus the degrowth at PAT was 58% to Rs 0.37 crore.
• The other comprehensive expense net of tax was down by 35% to Rs 0.09 crore. Thus the total comprehensive income was down by 63% to Rs 0.28 crore.

The stock hovers around Rs 104.05.