• The value of production net of excise for the quarter was higher by 6% to Rs 100.88 crore even as the operating income was up by 9% to Rs 100.74 crore.
• Operating profit margin contracted by 20 bps to 12.8%. Material cost as proportion to sales net of stocks and excise was up by 70 bps to 72.3%. Similarly the staff cost was up by 30 bps to 5.1%. But the OE was lower by 12 bps to 9.8%.
• Other income jumped by 10% to Rs 1.34 crore. The interest cost was down by 2% to Rs 3.48 crore and depreciation was higher by 16% to Rs 2.29 crore. Thus the PBT was up by 11% to Rs 8.48 crore.
• Taxation in absolute terms was up by 17% to Rs 2.67 crore. And the tax rate stood higher at 31.5% compared to 29.8% in corresponding previous quarter. Thus the growth at PAT stood restricted at 8% to Rs 5.81 crore.

Half yearly performance

Sales was up by 13% to Rs 205.33 crore but with OPM contract by 130 bps to 11.4%, the operating profit was up by 1% to Rs 23.40 crore. Eventually the PAT was up by 2% to Rs 9.88 crore.

Management comment

R Doraiswamy, Joint Managing Director of the company commenting on the results said, "I am happy to share that this quarter we have demonstrated growth in our revenues. This growth was mainly driven by demand in our wire & cables business and a Good pickup in our industrial switch gear business. Another Significant factor was the Growth in Exports in Q2 which was at 29% y-o-y. This was mainly due to increase in exports to UK & USA. Our EBIDTA has also grown and we have shown improvement in margins sequentially of more than 270 basis points. I believe this is an indication of our efforts over the past three quarters, on improving our margins and increasing our operating efficiencies. We expect this trend of margin improvement will continue and our endeavour continues to remain on profitable growth and improving our margins. We continue to focus on adding new, niche and high margin products, enter new geographies and offer total and customised electrical solutions to our existing and new customers. To aid to this we are constantly on the lookout for any new opportunities for technical associations to strengthen the base for our product offerings."