Equity Analysis

• Operating income was higher by 35% to Rs 31.34 crore but value of production was higher by just 26% to Rs 29.28 crore. Sales higher than value of production reflects liquidation of prior period inventory. Other operating income was up by 6% to Rs 0.58 crore and thus the total revenue was up by 34% to Rs 31.92 crore.
• Operating profit margin contracted by 140 bps to 25.3% and this can be attributed to rise in material cost. The material cost as proportion to sales net of stocks was up by 22 0bps to 33.4%. Staff cost was down by 70 bps to 13.2%. And the OE was down by 26.4%.
• Other income was up by 5% to Rs 2.29 crore. The interest cost was nil for the quarter and as well as corresponding previous period. The depreciation was lower by 7% to Rs 1.32 crore. Thus the PBT was up by 27% to Rs 9.02 crore.
• Taxation in absolute terms was higher by 7% to Rs 2.81 crore but the tax rate stood lower at 31.1% compared to 37.1% in corresponding previous quarter. Thus the PAT stood higher by 39% to Rs 6.21 crore.

Yearly performance

Sales were up by 19% to Rs 112.03 crore. But the operating profit was up by 18% to Rs 29.29 crore with OPM contract by marginal 30 bps to 26.1%. Eventually the PAT was up by 27% to Rs 23.09 crore gained largely by lower depreciation and lower tax incidence. After accounting for lower other comprehensive income at Rs 0.01 crore (down 98% from Rs 0.22 crore), the net profit was up by 26% to Rs 23.10 crore.

Dividend @50%

Subject to approval of shareholders, to pay a dividend of Rs 5 per equity share of Rs 10 each for the fiscal ended Mar 2019.

Voith Paper Fabrics India: Results

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