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18-Nov-2019

Cords Cables

PAT up 27% despite just a modest sales growth


'Cords Cables, manufacturer ofinstrumentation & control cables as well as power cables has registered1% growth in sales to Rs100.37 crore. But with 150 bps expansion in OPM to 11.3% the operating profit stood higher by1 6% to Rs11.34 crore. The PBT was up by 37% to Rs 3.81 crore after accounting lower other income, higher interest and higher depreciation. But with taxation stand higher by 54% to Rs 1.58 crore, the PAT was up by 27% to Rs 2.23 crore.

  • Sales for the period was up by modest 1% Rs100.37 crore. But the value of production (VOP) for the period was up by 7% to Rs107.15 crore. Sales was about 0.94 times of its VOP and in corresponding previous period the sales was 0.99 times of its VOP. Sales lower than VOP is reflective of inventory build-up which will get liquidated going forward.
  • OPM expanded by 150 bps to 11.3% and that is largely due to lower material cost, which more than offset the rise in all other cost heads. The material ...



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