It seeks to provide a competitive edge to its customers through a wide variety of standard high quality products as well as items customized to their requirements such as special purpose machines, metalworking tools, customized tooling solutions and engineered products.

September 2017 quarter results

For the quarter ended September 2017, net sales grew 20% to Rs 181.14 crore. OPM jumped 390 basis points from 7.2% to 11.1% which saw OP jump 85% to Rs 20.07 crore.

Other income grew 13% to Rs 1.98 crore. Interest cost was nil as the company is a debt free company.

As depreciation grew 10% to Rs 7.19 crore, PBT soared 145% to Rs 14.86 crore. Even as tax jumped 283% to Rs 4.87 crore (tax incidence jumped from 20.9% to 32.8%) PAT ballooned 108% to Rs 9.99 crore..

FY 2017 results (ending June)

For FY 2017 (ending June), sales grew 14% to Rs 648.53 crore. OPM improved 40 basis points from 8.1% to 8.5% which saw OP grow 19% to Rs 54.85 crore.

 Other income grew 3% to Rs 9.18 crore. Interest cost was nil as the company is a debt free company. As depreciation grew 17% to Rs 28.26 crore, PBT grew 16% to Rs 35.77 crore.

 EO loss was Rs 5.50 crore against Nil. Thus PBT after EO fell 1% to Rs 30.27 crore.

 As provision for taxation fell 18% to Rs 8.17 crore, PAT grew 7% to Rs 22.10 crore.

Segment results

For the quarter, sales from the Machine Tools division stood at Rs 21.10 crore and accounted for 12% of sales. PBIT from the same stood at a loss of Rs 78 lakh against a profit of Rs 39 lakh and accounted for -4% of total.

For the quarter, sales from the Hard Metals and Hard Metals Products stood at Rs 160.04 crore and accounted for 88% of sales. PBIT from the same grew 101% to Rs 22.31 crore and accounted for 104% of total.

For FY 2017, sales from the Machine Tools division stood at Rs 96.23 crore and accounted for 15% of sales. PBIT from the same grew 15% to Rs 9.02 crore and accounted for 14% of total.

For FY 2017, sales from the Hard Metals and Hard Metals Products stood at Rs 552.30 crore and accounted for 85% of sales. PBIT from the same grew 27% to Rs 54.80 crore and accounted for 86% of total.

Market condition

The company serves markets like Automobile (2W, PV, LCV and MHCV), tractors which have been performing well. Aerospace, Defence and railways likely to do well.

However other segments like steel, capital investments in manufacturing (including greenfield activities), Oil & Gas Energy and Mining are laggards.

Strategy

Going forward the company hopes to consolidate and grow its core business and enhance its market reach by expanding distribution channel.

It also plans to diversify and has increased focus in aerospace, defence, railways segments.

It is also exploring exports of its Machining Solutions Group (MSG) products.

The company has taken special initiatives to grow the WIDIA business.

It will continue to modernize and upgrade its manufacturing facilities.

Valuation

The share price trades around Rs 700.