• The value of production for the quarter was higher by 3% to Rs 25.92 crore. But on higher base, the operating income (excluding other operating income but net of GST/excise) was down by 19% to Rs 26.32 crore. Sale for the quarter was 1.6% higher than value of production. In comparison the sale of corresponding previous period was 29.7% higher than value of production. This signals liquidation of previous period stocks in quarter ended Dec 2017 as well as corresponding previous period.
• The EBIT was up by 6% to Rs 5.41 crore and that is largely due to strong growth in segment profit of engineering business. Segment profit of engineering business was up by 18% to Rs 5.12 crore. But the segment profit of food was down by 63% to Rs 0.30 crore.
• Operating profit margin expanded by 350 bps to 11.9% and this can be explained by fall in all cost heads except that of material cost. Material cost as proportion to sales net of stocks was higher by 150 bps to 49.8%. However the labour charges were lower by 50 bps to 8.7%, the staff cost was down by 120 bps to 13.2% and the OE was down by 100 bps to 16.2%. Sales though stand lower, facilitated by higher OPM; the operating profit was up by 14% to Rs 3.22 crore.
• Other income (net of expenses) was down by 18% to Rs 0.59 crore. Interest cost was down by 35% to Rs 0.08 crore. But the depreciation was higher by 15% to Rs 0.75 crore. Thus the PBT was up by 8% to Rs 2.97 crore. EO for the quarter as well as corresponding previous period was nil.
• Taxation in absolute terms was up by 25% to Rs 1.06 crore. Thus hit by higher tax, the PAT stood flat at Rs 1.92 crore. Other comprehensive income was down by 2% to Rs 0.13 crore and the total comprehensive income was flat at Rs 2.05 crore.

Nine month performance

Sales were down by 19% to Rs 68.41 crore. But with 150 bps expansion in OPM the fall at operating profit moderated and stood at 9% to Rs 9.24 crore. Eventually the PAT was down by 225 to Rs 6.48 crore hit largely by lower other income and higher tax rate.