• Operational sales (excluding other operating income) was higher by 12% to Rs 188.16 crore but the value of production was higher by just 3% to Rs 182.16 crore. Thus it seems the company has seen liquidation of earlier period stocks during the quarter. While the sales of pumps was higher by 15% to Rs 156.04 crore (or 78% of sales) and that of valves was down by 3% to Rs 31.99 crore. The segment revenue of others was higher by 1% to Rs 11.92 crore.

• Operating margin expanded by 250 bps to 15.9%. Expansion in operating margin was largely on account of lower material cost. Material cost as % to sales was lower by sharp 690 bps to 43.4% on the other hand the staff cost and other expenses was higher by 120 bps (to 15.1%) and 220 bps (to 25.1%) respectively. Sharp fall in material cost is largely on account of softening commodity prices as well as benefits of liquidation of earlier period stocks. Thus facilitated by higher sales and expansion in OPM, the operating profit was up by 33% to Rs 30.20 crore.

• Upside at EBIT level was largely on account of pump business. Pump business facilitated by higher sales and 400 bps expansion in segment margin to 15.4% has seen its segment profit expand by 55% to Rs 24.08 crore. On the other hand despite lower sales, the segment profit of valves was up by 52% to Rs 1.85 crore benefiting largely out of 210 bps expansion in its segment margin. The segment profit of others was a loss of Rs 54 laky compared to a profit of Rs 1.74 crore.

• Other income was higher by 22% to Rs 3.51 crore and thus the PBIDT was down by 32% to Rs 33.71 crore. The interest cost was down by 24% to Rs 0.58 crore and the PBDT was up by 33% to Rs 33.13 crore. With depreciation higher by 15% to Rs 6.76 crore, the PBT was lower by 39% to Rs 26.37 crore.

• Taxation for the quarter was higher by 40% to Rs 8.47 crore and the tax rate was higher at 32.1% compared to 31.9% in the corresponding previous period. Thus the net profit was finally higher by 39% to Rs 17.90 crore.

Sales were higher by 6% to Rs 549.25 crore and with OPM expand by 260 bps (to 14.4%) the operating profit was up by 28% to Rs 78.85 crore. After accounting for lower other income, lower interest and higher depreciation, the PBT was up by 29% to Rs 70.82 crore. Taxation was up 33% to Rs 21.85 crore and thus the PAT was higher by 27% to Rs 48.97 crore.

To pay an interim dividend @ 10% for fiscal ending Dec 2013.

The stock hovers around Rs 216.10.