• Operating profit margin for the quarter expanded by 600 bps to 13.6%. Expansion in OPM can be attributed to lower material cost. Material cost as proportion to sales net of stocks was lower by sharp 1150 bps to 61%. But staff cost was up by 310 bps (to 12%) and the OE was up by 220 bps (to 13.1%). Thus despite lower sales but facilitated by strong OPM expansion, the operating profit was up by strong 38% to Rs 12.57 crore.

• Other income was an expense/loss of Rs 0.10 crore as against an income of Rs 0.10 crore in the corresponding previous period. The interest cost was up by sharp 84% to Rs 8.10 crore. And the depreciation cost was down by 4% to Rs 1.23 crore. Thus hit by higher interest cost the PBT was down by 11% to Rs 3.14 crore.

• The taxation was down by 12% to Rs 0.97 crore in absolute terms. But the tax rate was lower by 12% to 0.97 crore. Thus the PAT was down by 10% to Rs 2.18 crore.

Nine month performance

Sales were lower by 12% to Rs 281.45 crore and with 380 bps expansion in OPM, the operating profit was up by 32% to Rs 32.37 crore. The other income was lower by 93% to Rs 0.07 crore. The interest cost was higher by 51% to Rs 18.15 crore and depreciation was down by 1% to Rs 3.73 crore. Thus the PBT was up by 8% to Rs 10.56 crore. After accounting for higher taxation (up 7% to Rs 3.50 crore) the net profit was up by 8% to Rs 7.06 crore.

Order book

The company has secured fresh orders worth Rs 605 crore in 9mFY17. Unexecuted order book now stands at around Rs 1550 crore (up from Rs 1400 crore as end of Sep 2016). In addition the company is well placed (L1) for orders worth Rs 425 crore, of which around 20% is overseas.

The stock hovers around Rs 194.05.