Ador Fontech

Net down 8% on higher tax

Nov 14, 2019 05:11 IST capital market

Ador Fontechthat manufacturers welding consumables of electrodes and wires, welding/cutting machines, life enhancement services, thermal spray products & services, has registered 2% growth in consolidated sales to Rs 50.11 crore. But with 50 bps expansion in OPM to 11.9% the operating profit stood higher by 6% to Rs 5.94 crore. The PBT was up by 5% to Rs 5.54 crore after accounting lower other income, higher interest and lower depreciation. But with taxation stand higher by 49% to Rs 1.73 crore, the PAT was down by 8% to Rs 3.81 crore.
  • Sales for the period was up by 2% Rs 50.11 crore. The value of production (VOP) for the period was also up by 2% to Rs 51.27 crore. Sales was about 0.98 times of its VOP and in corresponding previous period the sales was 0.98 times of its VOP. Sales lower than VOP is reflective of inventory build-up which will get liquidated going forward.
  • OPM expanded by 50 bps to 11.9% and that is largely due to lower material cost, which more than offset the rise in all other cost heads. The material cost was down by 300 bps to 19.5%. The cost of traded goods was up by 40 bps to 36.1%, the staff cost was up by 110 bps to 13.4% and manufacturing cost was up by 50 bps to 8.5%. The OE was up by 60 bps to 10.9%.

Half yearly performance

Consolidated sales was up by 3% to Rs 94.66 crore and that together with 30 bps expansion in OPM to 10.8%, the operating profit was up by 6% to Rs 10.18 crore. After accounting for higher OI, higher interest and lower depreciation, the PBT was up by 6% to Rs 9.46 crore. The PAT was eventually lower by 2% to Rs 6.33 crore after accounting for 26% increase in taxation to Rs 3.13 crore.

Ador Fontech : Consolidated Results

 

1909 (3) 1809 (3) Var. (%) 1909 (6) 1809 (6) Var. (%) 1903 (12) 1803 (12) Var. (%)
Sales 50.11 49.11 2 94.66 91.65 3 186.43 152.04 23
OPM (%) 11.9 11.4 10.8 10.5 9.0 6.9
OP 5.94 5.60 6 10.18 9.61 6 16.81 10.52 60
Other inc. 0.60 0.63 -5 1.24 1.22 2 2.91 3.98 -27
PBIDT 6.54 6.23 5 11.42 10.83 5 19.72 14.50 36
Interest 0.11 0.02 450 0.19 0.06 217 0.15 0.15 0
PBDT 6.43 6.21 4 11.23 10.77 4 19.57 14.35 36
Dep. 0.89 0.91 -2 1.77 1.82 -3 3.28 3.46 -5
PBT 5.54 5.30 5 9.46 8.95 6 16.29 10.89 50
EO Exp 0.00 0.00 0.00 0.00 0.00 0.00
PBT after EO 5.54 5.30 5 9.46 8.95 6 16.29 10.89 50
Taxation 1.73 1.16 49 3.13 2.48 26 5.30 3.94 35
PAT 3.81 4.14 -8 6.33 6.47 -2 10.99 6.95 58
EPS (Rs)* # # # # 3.1 2.0
* EPS is on current equity of Rs 7.0 crore, Face value of Rs 2
# EPS is not annualised due to seasonality of business
Figures in Rs crore
Source: Capitaline Corporate Database

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