Throughout FY13, the company had to face various problems, mainly on the erratic power supply side and poor demand and this took a toll on the overall performance of the company. It ended FY13, with a consolidated 7% fall in net profit. And looks like it has begun Q1FY14 also on a disappointing note. The company posted a net sales of Rs.402 crore, down 13% (YoY) and net profit dropped 26% at Rs.25 crore. This time too, the poor numbers, to some extent can be blamed on the Advanced Technology Centre, wherein the company has invested Rs.65 crore, in anticipation of growth in the aerospace sector. But the Centre is in losses mainly on account of high depreciation outgo and this is dragging down the profits of the company too. In Q1FY14 this segment reported a loss of Rs.4 crore. This Centre is expected to breakeven in the next one or 2 years.  The hefty Rs.23 crore component of other income and a very interest outgo helped shore the numbers to some extent.

Plant capacity utilization continues to remain at around 60-65%. To beat the slowdown, the company is focusing on customer service and supply of spare parts and the export market. Input costs have come down but given the lackluster macro environment, the current Q2 could also remain tough. The company, at end of FY13 , was sitting on reserves of Rs.949 crore and had a cash balance of Rs.769 crore and it is debt free. Fundamentally very sound but it is a victim of circumstances.