• Sales for the quarter was up by 2% to Rs 70.20 crore. But the value of production was up by 12% to Rs 80.14 crore. Sales for the quarter was just 0.88 times of VoP as against 0.96 times in the corresponding previous period. Sales lower than VoP reflection inventory build-up which will get liquidated in the coming quarters.

• Expansion in OPM by impressive 160 bps to 11.7% was largely due to fall in all cost heads barring staff cost. Material cost as % of sales was down by 70 bps to 73.8% and the OE was down by 80 bps to 6.6%. However the staff cost was up by 90 bps to 9.3%.

• Other income was up by 198% to Rs 0.19 crore. Thus the PBIDT was up by 21% to RS 8.42 crore. The interest cost was up by 17% to Rs 2.16 crore. And the depreciation was up by 43% to Rs 1.0 crore. Thus the PBT was up by 19% to Rs 5.26 crore. EO for the quarter was nil compared to Rs 0.48 crore in corresponding previous period. Thus on inflated base, the growth at PBT after EO was restricted at 7% to Rs 5.26 crore.

• With taxation stand lower by 10% to Rs 1.57 crore, the PAT was up by 17% to Rs 3.69 crore. The company in view of the accumulated losses as per Income Tax Act, 1961 and also MAT Credit available, the Company has not exercised the non revisableoption permitted under section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Law (Amendment) Ordinance, 2019.

Nine-month performance

The sales was up by 30% to Rs 221.73 crore. That together with 440 bps expansion in OPM to 14.1%, the operating profit jumped up by 89% to Rs 31.36 crore. Eventually the PAT was up by 140% to Rs 16.41 crore.