Performance Update (Quarter & 9 Months ended Dec 31,08)
Comments
During the quarter ended December 31, 2008 , the company registered marginal decline in revenue vis-a-vis the corresponding quarter in the last year. However, on a cumulative basis, sales for nine months grew by around 9 per cent.
Similarly, the EBIDTA margin for the current quarter was lower at 5.6 per cent (vis-a-vis 8 per cent in the corresponding quarter). The lower margin was mainly on account of higher raw material cost as a percentage of net sales. However, the operating margin for the nine months was largely similar to that of previous year.
Net Margin for the quarter was lower on the back of lower EBIDTA margin.
Important Note to the Quarterly Results
The company, based on a legal opinion, has continued to adjust the foreign currency exchange difference on amounts borrowed for acquisition of fixed assets, to the carrying cost of fixed assets in compliance with schedule VI to the Companies Act, 1956, which is at variance to the treatment prescribed in Accounting Standard 11. Had the treatment as per the AS 11 been followed, the net profit after tax for the current quarter and current nine months would have been lower by INR 18.2 MM and INR 32.9 MM respectively.
CommentsDuring the quarter ended December 31, 2008 , the company registered marginal decline in revenue vis-a-vis the corresponding quarter in the last year. However, on a cumulative basis, sales for nine months grew by around 9 per cent.
Similarly, the EBIDTA margin for the current quarter was lower at 5.6 per cent (vis-a-vis 8 per cent in the corresponding quarter). The lower margin was mainly on account of higher raw material cost as a percentage of net sales. However, the operating margin for the nine months was largely similar to that of previous year.
Net Margin for the quarter was lower on the back of lower EBIDTA margin.
Important Note to the Quarterly Results
The company, based on a legal opinion, has continued to adjust the foreign currency exchange difference on amounts borrowed for acquisition of fixed assets, to the carrying cost of fixed assets in compliance with schedule VI to the Companies Act, 1956, which is at variance to the treatment prescribed in Accounting Standard 11. Had the treatment as per the AS 11 been followed, the net profit after tax for the current quarter and current nine months would have been lower by INR 18.2 MM and INR 32.9 MM respectively.
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