• Sales net of excise duty was up by 7% to Rs 684.61 crore. But the value of production for the quarter was up by 7% to Rs 688.20 crore. Sale for the quarter was lower than the value of production unlike corresponding previous period signaling inventory build-up which will get liquidated going forward.
• Operating profit margin expanded by 40 bps to 9.4% and this is largely due to lower cost of traded goods as well as staff cost. The material cost as % to sales net of stocks and excise duty was up by 130 bps (to 51.6%) as the prices of pig iron is on ascent recently. Similarly the other expense was up by 30 bps to 19.6%. But the staff cost was down by 40 bps (to 7.7%) and that of cost of traded goods was down by sharp 150 bps to 11.8%.
• Other income was higher by 27% to Rs 22.30 crore. The interest cost (net) was down by 10% to Rs 0.76 crore. The depreciation was up by 2% to Rs 28.06 crore. Thus the fall at PBT (before EO) was up by 22% to Rs 57.55 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 5% to Rs 18.10 crore and tax rate was lower at 31.5% compared to 40.4% in corresponding previous period. Gained thus the PAT was up by 41% to Rs 39.45 crore.
• The other comprehensive income net of tax was higher at 0.24 crore compared to an expense of Rs 0.18 crore. Thus the total comprehensive income was up by 42% to Rs 39.69 crore.

Nine month performance

Sales net of excise was higher by 4% to Rs 2040.57 crore. However hit by 170 bps contraction in OPM to 9.1%, the operating profit was down by 13% to Rs 186.09 crore. The PBT (before EO) was down by 19% (to Rs 155.93 crore) after accounting for lower other income as well as higher interest & depreciation cost as % to operating profit. The taxation was down by 21% to Rs 50.14 crore and thus the fall at PAT level was 18% to Rs 105.79 crore.

Other developments

The company to pay an interim dividend of Rs 2.5 (or 125%) per equity share of Rs 2 face value for FY18.

The stock hovers around Rs 391.70.