Company's Performance

Quarter ended June 09

The company's sales for the quarter ended June 09 has increased by 2% to Rs 107.89 crore. The OPM of the company has decreased by 191 basis points to 11.4% due to increase in raw material cost by 2260 basis points to 70% and staff cost by 50 basis points to 6% of adjusted net sales. There was decline in purchase of traded goods 210 basis points to 0% and other expenditure by 90 basis points to 11% of adjusted net sales. As a result of decrease in margin, there was a decline in operating profit of 13% to Rs 12.33 crore.

Other income of the company has declined by 68% to Rs 5.11 crore. Interest paid by the company has decreased by 38% to Rs 0.69 crore. Depreciation has also decreased by 4% to Rs 3.82 crore. Due to decline in margin and other income, profit before tax has declined by 48% to Rs 12.93 crore.

Total tax outgo has increased by just 1% to Rs 3.80 crore. The net profit of the company declined by 57% to Rs 9.13 crore due to fall in other income.

For year ended March 09

For the year ended March 2009, the income from operations reported 21% growth at Rs 385.85 crore. OPM improved 420 basis points to 15.5%. As a % of sales, consumption of raw materials increased 920 basis points at 49.5%, purchase of traded goods dipped 1020 basis points at 17%, employee costs was stable at 6% and other expenses dipped 470 basis points at 11.6%. The resultant operating profits grew 65% at Rs 59.90 crore.

Other income dipped 98% at Rs 1.82 crore which includes loss on sale of investments of Rs 41.45 crore against profit of Rs 85 crore in the previous year. The resultant PBIDT dipped 60% at Rs 61.72 crore. Interest cost declined 21% at Rs 4.64 crore and depreciation charge increased 3% at Rs 15.32 crore. The resultant PBT dipped 69% at Rs 41.76 crore. After accounting higher taxation of Rs 14.29 crore up 162%, the net profit declined 79% to Rs 27.47 crore. The reported PAT after prior period tax write back of Rs 77 lakh was down 78% at Rs 28.24 crore.

Segmented Result

The steel business contributed 35% to the revenue of the company for the quarter ended June 2009. Net sales grew by 58% to Rs 38.73 crore. Profit before interest and tax (PBIT) margins grew by 341 basis points to 7.28%. PBIT of the company increased by 197% to Rs 2.82 crore. The segment accounted for 29% of company's total PBIT.

For the year ended March 2009, steel business contributed 19% to the revenue of the company. Net sales declined by 49% to Rs 76.65 crore. PBIT margin has inclined by 384 basis points to 8.47%. Despite it, the PBIT of the company decreased by 7% to Rs 6.49 crore. The segment accounted for 13% of company's total PBIT.

The plastic processing business contributed 55% to the revenue of the company for the quarter ended June 2009. Net sales declined by 11% to Rs 61.02 crore. Profit before interest and tax (PBIT) margins decreased by 525 basis points to 13.08%. As a result, PBIT of the company decreased by 36% to Rs 7.98 crore. The segment accounted for 83% of company's total PBIT.

For the year ended March 2009, plastic processing business contributed 67% to the revenue of the company. Net sales inclined by 73% to Rs 263.28 crore. PBIT margin has inclined by 231basis points to 17.52%. As a result, the PBIT of the company increased by 99% to Rs 46.13 crore. The segment accounted for 92% of company's total PBIT.

The spinning business contributed 11% to the revenue of the company for the quarter ended June 2009. Net sales declined by 10% to Rs 11.95 crore. Profit before interest and tax (PBIT) margins was negative and stood at 10.04%. As such, loss before interest and tax stood at Rs 1.20 crore.

For the year ended March 2009, the spinning business contributed 14% to the revenue of the company. Net sales inclined by 131% to Rs 55.13 crore. Profit before interest and tax (PBIT) margins was negative and stood at 4.88%. As such, loss before interest and tax stood at Rs 2.69 crore.

Valuation

The scrip closed at Rs 229.05 on 30^th July 2009 at BSE.

The promoters holding in the company stood at 72.99%.