• Just an early single digit growth in revenue was largely due to higher revenue from Electro Mechanical Projects (EMP) business which more than offset the fall in revenue of both Unitary Cooling Products for comfort & customer use (UCP) and Engineering Product & Services (EPS) business.
• Segment revenue of EMP was up by 12% to Rs 976.00 crore (or 48% of sales) but that of EPS was down by 6% to Rs 78.47 crore (or 4% of sales). The segment sale of UCP was down by 6% to Rs 997.57 crore (or 49% of sales).
• EBIT was down by 36% to Rs 175.16 crore as the segment profit of both EMP and UCP stand lower. Though the segment profit of EPS was up by 10% that could not fully offset the fall in segment profit of both EMP and UCP. Despite higher sales, the segment profit of EMP business was down by 34% to Rs 44.07 crore hit by sharp 310 bps fall in its segment margin to 4.5%. The segment profit of UCP was down by 43% to Rs 103.68 crore hit by lower sales as well as sharp 680 bps fall in segment margin to 10.4%. However, the segment profit of EPS, despite lower sales was higher by 10% to Rs 27.41 crore as its segment margin expands by 510 bps to 34.9%.

Yearly performance

Consolidated sales was higher by 11% to Rs 7124.07 crore and that with 170 bps contraction in OPM to 8.6%, the operating profit was down by 8% to Rs 611.71 crore. After accounting for higher other income, higher interest & depreciation cost as proportion of operating profit, the PBT (before profit from associate and EO) was down by 7% to Rs 741.00 crore. The share of loss from associate was higher at Rs 51.82 crore against a profit of Rs 3.80 crore in the corresponding previous period. Thus the PBT before EO was down by 14% to Rs 689.18 crore. Further, with EO expense stand higher at Rs 11.77 crore against a profit of Rs 0.61 crore, the PBT after EO was down by 16% to Rs 677.41 crore. With taxation stand lower by 28% to RS 163.53 crore, the fall at PAT level moderated and stood down by 11% to Rs 513.88 crore. After accounting for higher minority interest (up 9% to Rs 5.97 crore) and Rs 189.49 crore swing in other comprehensive income to an expense of Rs 26.38 crore, the total comprehensive income was down by 35% to Rs 481.53 crore.

EMP business registered 50% growth in segment profit to Rs 277.25 crore gained by higher sales (up 27% to Rs 3619.08 crore) and higher margin (120 bps expansion to 7.7%). Similarly the segment profit of EPS business was up by 6% to Rs 105.08 crore gained by marginal increase in sales (up 1% to Rs 311.65 crore) and 170 bps expansion in segment margin to 33.7%. However the segment profit of UCP was down by sharp 31% to Rs 325.36 crore, hit by both lower sales (down 2% to Rs 3155.56 crore) and lower segment margin (down 440 bps to 10.3%).

EMP order book

Carry forward order book of the EMP segment stood at Rs 4976 crore as end of March 2019 down from Rs 5062 crore as end of corresponding previous period. New orders booked during the current quarter were Rs 392 crore (Domestic) and Rs 626 crore (International) business.

To pay 400% dividend

The Board of Directors have recommended a dividend of Rs 4.00 per share of Rs 1/- each (translate into a dividend payout of 400%) for the year 2018-19.