An MNC, the company makes generators, engines, farm equipment and operates in two spaces- agri equipments and power generation space such as water pumps. But the performance of the company for Q2FY14, like in Q1 was not encouraging, reflecting the overall lackluster state of the auto sector. And because Q1 was equally low, Q2 numbers when compared sequentially do not seem too bad. But YoY, the company ended the quarter with a net profit at Rs.4 crore compared to Rs.5 crore in Q2FY13. The fall would have been steeper but for the reduction in operating costs. Net sales came in at Rs.101 crore, down 20% (YoY). 18% of its topline comes from exports  and YoY, it was flat. But the good news was that it posted an EBIT of Rs.73 lakh, a turnaround compared to losses in previous Q2 and in current Q1. It was domestic sales which dropped 16% and EBIT dropped 33%.

The performance of FY13 will stand out as it had an exceptional gain of Rs.20 crore due to sale of its Rudrapur plant at Uttarakhand and in that context, this fiscal, YoY, will stand pale, unless there is another exceptional gain this year too.  Despite the performance, the stock enjoys fancy on the bourses. This is a debt free company but its cash balance as at 30^th Sept 2013 dropped 36% (YoY) at Rs.37 crore. The company has always been a generous dividend payer and in FY12, it paid dividend at 90% and 75% in FY11 but in FY13 it was down at 40%. Its market cap currently stands at Rs.450 crore. As at 30^th Sept 2013, Honda Motor held 66.67% stake and Usha International holds 1%, taking total promoters holding at 67.67%.