The company declared its numbers yesterday during market hours and the stock price hit a new high at Rs.389.50, breached the 20% upper circuit. And all this euphoria over a turnaround performance. The company, for Q4FY14, posted a net profit at Rs.9 crore, up from Rs.2 crore in Q4FY13 and loss of Rs.15 crore in previous Q3. But take a look at the PBT, which came in for the quarter at Rs.12 crore, 29% (YoY) lower. So clearly, the ‘magic’ has happened more after tax. And therein lay the story – thanks to the 78% drop in tax, the company could post this fantastic 4.5 times surge in net profit. The net revenue rose 4% and operating costs were maintained at 86% of net sales as in previous Q4. Tax for Q4 was at Rs.3 crore v/s Rs.20 crore in Q3 (which pushed the company into red) v/s Rs.14 crore in prevoous Q4.

As against this, the overall performance for FY14 was dull. Its net revenue fell 7% and net profit came in at Rs.14 crore v/s Rs.26 crore in FY13, a fall of 46%. Tax outgo for the year remained at Rs.31 crore v/s Rs.23 crore in FY13.

This Pune based company makes steering systems in a JV with German company, which as at 31^st March 2014 holds 25.79% stake in the company of the total promoter holding of 73.66%. Institutional holding is very marginal at 0.10%. On an equity of Rs.9 crore, reserves stands at Rs.216 crore. EPS for the year is at Rs.15.55 v/s Rs.28.24 in previous fiscal.