Sales are lower primarily due to lower offtake in the agri business. The sales in the agri business fell by 39% YoY while the energy business witnessed strong sales with an increase of Rs. 31.6Cr YoY.
Operating income fell by 2% YoY during the quarter mainly benefiting from lower material costs, which fell by 57% YoY. Operating income was also boosted by lower other expenditure which fell by 40% YoY.
In spite of lower sales and operating income, net profit for the company increased by 19% YoY. The jump came on the back of lower depreciation costs and lower tax expense for the year. Depreciation costs were lower by 49% YoY while tax expenses fell by 23% YoY.
While on a year to year basis, the top-line performance has been bad mainly due to the lower offtake, improvement is seen on a sequential basis. Further, the power segment continues to aid the margin growth.
We suggest holding this stock for another one year for better return.
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