The company had a muted performance for Q2FY14. Its consolidated net sales dropped 7% (YoY). There was a marginal decline in operating expenses, from 97% of total sales to 96%. But a hefty other income of Rs.30 crore and a lower finance cost helped the company end the quarter with a net profit at Rs.42 crore, down by a marginal 1.5%. Sequentially, net profit was up 2.5%.

The main drag in its performance was the electro-mechanical projects and services segment, which reported a 14% fall in revenue and EBIT was down 37% though order book has showed a 5% increase. The other two segments did better, with engineering products showing a 10% rise in topline and EBIT rising 33%. Unitary cooling segment also showed a 3% increase in revenue and a good 50% jump in EBIT. Reserves as at 30^th Sept 2013 stands at Rs.1698 crore and cash is at Rs.205 crore, down 41% (YoY). The numbers are better than expected and maybe in H2 the performance could truly get back its vigor as overall there is a general improvement in sentiments.