|
For the quarter ended Sep 17, the company reported net sales of Rs 21.99 crore, down by 26%. Lower execution of orders affected the sales. Order book is flat on YoY basis and offtake is a challenge. OPM was however higher by 270 bps to 19.1%, restricting the OP de growth to 15% to Rs 4.19 crore. Higher OPM was due to one off job works and service income and some Ind AS accounting adjustments.
Other income was lower by 74% to Rs 1.10 crore due to lower sale of investment income. Interest costs was higher by 133% to Rs 0.07 crore and depreciation was higher by 19% to Rs 0.75 crore. Thus, PBT was lower by 47% to Rs 4.47 crore. After providing total tax of Rs 1.62 crore, up by 67% YoY, PAT for the Sep 17 quarter stood at Rs 4.47 crore, down by 47% YoY.
Performance for 6 months ended Sep 17
For 6 months ended Sep 17, net sales were up by 33% to Rs 574.92 crore. OPM was up by 30 bps to 6.9%, thus resulting in a 41% increase in OP to Rs 39.95 crore. After providing interest cost of Rs 6.11 crore, up by 21% and depreciation cost of Rs 7.09 crore up by 1%, PBT stood at Rs 26.75 crore up by 75% YoY. After providing total tax of Rs 9.73 crore up by 77%, PAT for 6 months ended Sep 17 stood at Rs 17.02 crore up by 59% YoY.
Segmental Performance for Sep 17 quarter and 6 months ended Sep 17
For the quarter, sales from the Engineering segment stood at Rs 18 crore and accounted for 82% of sales. PBIT from the same was down by 13% to Rs 5.73 crore and accounted for 88% of total.
For the quarter, sales from the Food Segment stood at Rs 3.98 crore and accounted for 18% of sales. PBIT from the same was up by 73% to Rs 0.76 crore and accounted for 12% of total.
For the six months, sales from the Engineering segment stood at Rs 34.47 crore and accounted for 82% of sales. PBIT from the same was down by 8% to Rs 9.52 crore and accounted for 86% of total.
For the six months, sales from the Food Segment stood at Rs 7.69 crore and accounted for 18% of sales. PBIT from the same was up by 6% to Rs 1.51 crore and accounted for 14% of total.
Other updates
The company has held back on its expansion plan on engineering division. The purchased land stands vacant and no plans for any expansion in next 12 months.
While order book is flat on YoY basis, there are no large orders which gives additional margin and leverage benefits.
Food division is expected to do well and the company will continue the expansion of this division which will be completed in next 12 months.
Outlook
Expects FY 18 to report lower sales then FY 17, as compared to earlier target of reporting flat sales for FY 18.
No sign of revival is visible in immediate quarter, while job work and small orders are helping the company to report better margins, but they cannot be relied upon.
No pick up of demand in immediate quarter.
|