For the Quarter ended 31st March 2020, Profit before Exceptional Item is Rs.13.85 crores as compared to Rs.8.80 crores in quarter ended 31st Mach 2019. There is substantial increase of 57% in Profit before exceptional item. Results attached herewith Limited Report March 2020.pdf (4.1 MB)
Key Statements from Management
1.Chemical Segment of the Company is showing better performance in terms of increase in revenue
as well as profitability as compared to the past years. PBIT (before Exceptional item) of chemical
division for the current year is Rs. 6.1 crores as compared to loss of Rs.2.89 crores of previous year.
2.In view of Outbreak of Coronavirus pandemic (COVID-19) globally and the business operations of Chemical Division of the Company was temporarily distruped for about six weeks, due to the Initial lockdown imposed by the Government of India and after that the operations are running at its normal capacity levels. There was no impact on LST division of the Company.
For the quarter ended 31st March 2020, Revenue from chemical division is Rs.35.3 crores and EBIT is 5.86 crores. The EBIT margin is 16.7%. In previous quarters the margins were negligible whereas now this division is also started adding to the bottom line. It is an good sign for stock to get rerated .
From Six weeks of disruption in chemical division due to Covid 19, 1-2 weeks have already been factored in current quarter and rest 3-4 weeks impact will be there in coming quarter.
For the quarter ended 31st March 2020, Revenue from LST division is Rs.31.5 crores and EBIT is 10.30 crores. The EBIT margin is 33 %.In Previous quarters the EBIT margin was 46% .
The Reason for decrease may be Fabrication work. In AGM we can expect some highlights on Fabrication work performance.
Further there is no impact of Covid 2019 on LST division .We can expect some good results in June 2020 quarter .