• Production in MVA for the quarter ended Sep 2017 was down by 23% to 6956 MVA and the sales in MVA was down by 35% to 5727 MVA. But the sales net of GST/excise was lower by 37% to Rs 165.80 crore. Lower sale is largely due to lower volume triggered by higer complexity index of transformers produced during the quarter affecting despatches as well as lower sales realization. Sales realization per MVA was down by 3%.
  
• Value of production for the quarter was down by 23% to Rs 187.52 crore. Value of production for the quarter was 13.1% higher than the sales for the quarter compared to 7.9% lower in corresponding previous period. This reflects inventory built up and that will get liquidated going forward.
  
• OPM contracted by 180 bps to 8.7% and that is largely to do with rise in all cost heads barring OE. It seems the company could not recover fixed cost over lower volume. Material cost as proportion to sales net of stocks and excise duty was higher by 320 bps to 79.6% and the staff cost was up by 130 bps to 4.3%. The OE was down by 90 bps to 8.4%. Thus hit by lower sales and lower OPM, the operating profit was down by 47% to Rs 14.45 crore.
  
• The other income was up by 46% to Rs 1.96 crore. Thus the de-growth at PBIDT was restricted to 43% (to Rs 16.41 crore). The interest cost was down by 11% to Rs 9.04 crore. The depreciation was down by 1% to Rs 3.41 crore. Thus the PBT was down by 74% to Rs 3.96 crore.
  
• The taxation (net of deffered tax) was a write back of Rs 0.13 crore compared to nil in corresponding previous period. Thus the PAT was down by 72% to Rs 2.81 crore.
  

Half yearly performance

Sales was lower by 32% to Rs 289.14 crore and with OPM contract by 180 bps to 7.5%, the operating profit was down by 45% to Rs 21.78 crore. The other income was up by 52% to Rs 3.48 crore. The interest cost was down by 7% to Rs 17.21 crore and the depreciation was up by 3% to Rs 7.02 crore. Thus the PBT was down by 94% to Rs 1.03 crore. The taxation was up by Rs 0.06 crore compared to nil the corresponding previous period. Thus the PAT was down by 94% to Rs 0.65 crore. The other comprehensive expense was up by 120% to Rs 0.11 crore and thus the total comprehensive income was down by 95% to Rs 0.54 crore.

Other developments

Order book of the company as end of Aug 31, 2017 stood at Rs 833 crore (or 23596 MVA) as on Nov 1, 2017.

Face value of equity shares were subdivided to Rs 1 each from Rs 10 earlier as approved in AGM held on Aug 30, 2017.