Consolidated Performance for the quarter ended September 2017

For quarter ended September 2017, the net sales rose 3% to Rs 199.19 crore. The company reported 180 bps decrease in operating margins to 13.4%. Cost of material consumed as a percentage of adjusted net sales increased 310 bps to 47.4% while purchase of stock in trade decreased 140 bps to 2% and employee benefit expense increased 10 bps to 15.7% while other expenses fell 60 bps to 21.4%. As a result operating profits fell 9% to Rs 26.75 crore.

Other income fell 55% to Rs 0.72 crore. Interest cost was down 6% to Rs 0.92 crore. Depreciation rose 2% to Rs 10.71 crore. PBT as a result was down 19% to Rs 15.84 crore. Effective rate of tax increased to 40.5% from 9.1%. Bottomline of the company was down 47% to Rs 9.46 crore.

Performance for half year ended September 2017

For half year ended September 2017, net sales rose 6% to Rs 396.94 crore. The company reported 50 bps decrease in operating margins to 12.9%. Cost of material consumed as a percentage of adjusted net sales increased 610 bps to 48.2% while purchase of stock in trade decreased 510 bps to 1.9% and employee benefit expense was flat at 16.1% while other expenses fell 10 bps to 20.8%. As a result operating profits rose 2% to Rs 51.38 crore.

Other income fell 56% to Rs 1.42 crore. Interest cost was down 3% to Rs 1.99 crore. Depreciation rose 1% to Rs 21.4 crore. PBT as a result was down 2% to Rs 29.41 crore. Effective rate of tax increased to 29.8% from 11.4%. Bottomline of the company was up 23% to Rs 20.65 crore.

The scrip is currently trading at Rs 327.75