Ador Welding

This Mumbai based company, formerly known as Advani–Oerlikon , making welding products has been in existence since 1951 and going by its stock price, continues to command respect too.  The company posted a set of very good numbers for Q1FY16, mainly on the back of improvement in its equipment and project engineering segment. The company posted a 8% (YoY) rise in net sales at Rs.80 crore and net profit came in at Rs.6 crore, doubled up from Rs.3 crore in Q1FY15. Consequently, NPM improved vastly from less than 4% to 7% in current Q1. Costs were down 3% mainly on account of lower raw material costs.

The company has two segments – Consumables and equipment and Project engineering (EPE). Consumables, which contributes 66% to the total turnover had a poor show with revenue declining 9% and EBIT coming down 13%. On the other hand, EPE segment, which in previous Q1 contributed 22% to total revenue increased its contribution to 34% in current Q1. Turnover from this segment showed a 69% rise and at EBIT level, it showed a turnaround from loss of Rs.4 crore to profit of Rs.7 crore.

Equity stands at Rs.13.60 crore with promoters holding 56.69% stake and DIIs have hiked their stake from 15.73% in Q4 to 16.09% in current Q1. EPS stands at Rs.4.12 (face value Rs.10).