• Operating profit margin for the quarter expanded by 460 bps to 12%. Expansion in OPM can be attributed to lower material cost. Material cost as proportion to sales net of stocks was lower by 610 bps to 64.9%. But staff cost was up by 220 bps (to 11.6%) and the OE was up by 20 bps (to 11.5%). Thus despite lower sales but facilitated by strong OPM expansion, the operating profit was up by strong 32% to Rs 10.57 crore.

• Other income was lower by 90% to Rs 0.09 crore. The interest cost was up by sharp 45% to Rs 4.61 crore. And the depreciation cost was flat at Rs 1.25 crore. Thus the growth at PBT moderated and stood at 6% to Rs 4.80 crore.

• The taxation was flat (up 0%) at Rs 1.61 crore in absolute terms. But the tax rate was lower at 33.6% compared to 35.5% in the corresponding previous period. Thus the PAT was up by 9% to Rs 3.19 crore.

Half yearly performance

Sales were lower by 6% to Rs 188.84 crore and with 280 bps expansion in OPM, the operating profit was up by 28% to Rs 19.80 crore. The other income was lower by 83% to Rs 0.17 crore. The interest cost was higher by 31% to Rs 10.05 crore and depreciation was up by 1% to Rs 2.50 crore. Thus the PBT was up by 18% to Rs 7.42 crore. After accounting for higher taxation (up 16% to Rs 2.54 crore) the net profit was up by 19% to Rs 4.88 crore.

Order book

Unexecuted order book now stands at around Rs 1400 crore and in addition the company is well places (L1 position) to receive orders over Rs 400 crore in the next few months.

Overall bids worth close to Rs 5000 crore in both domestic and overseas markets are pending and the company is hopeful of receiving reasonable fresh orders in the near future.

The stock hovers around Rs 192.10.