Investor Relations
STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30th SEPTEMBER, 2013
Rs. in Crore
Sr. No. Particulars Quarter ended Half Year ended Year ended
30th Sept., 2013 30th June., 2013 30th Sept., 2012 30th Sept., 2013 30th Sept., 2012 31st March, 2013
     Unaudited Unaudited Unaudited Unaudited Unaudited Audited
PART-I  
1 Gross Sales/ Income from Operations 714.67 623.44 634.72 1338.11 1358.96 2,513.02
  Less :  Inter Segment Transfers 254.06 208.66 196.68 462.72 396.23 745.29
  Inter Division Transfers 9.90 12.79 38.33 22.69 75.87 112.38
  Excise Duty 40.30 35.66 31.12 75.96 69.37 143.94
  (a) Net Sales/ Income from Operations 410.41 366.33 368.59 776.74 817.49 1,511.41
  (b) Other Operating Income 15.36 18.55 17.81 33.91 38.47 80.38
   
  Total Income from Operations (a+b) 425.77 384.88 386.40 810.65 855.96 1,591.79
   
2 Expenses
  (a) Consumption of Raw Materials 211.68 179.37 153.11 391.05 409.72 773.44
  (b) Purchases of stock-in-trade 1.14 0.26 2.45 1.40 3.82 8.21
  (c) Changes in inventories of finished goods, work-in-progress and stock-in-trade (23.45) (0.80) 17.63 (24.25) (17.86) (27.18)
  (d) Employee benefit expenses 30.48 29.56 29.20 60.04 57.64 115.79
  (e) Depreciation & Amortisation Expense 25.86 24.85 23.69 50.71 45.64 95.64
  (f) Other Expenses :            
  (i) Energy 90.76 75.31 81.72 166.07 168.68 295.60
  (ii)Other Direct Expenditure 71.27 55.76 59.32 127.03 126.17 239.95
  (iii) Other Expenditure 11.36 11.29 6.01 22.65 12.21 35.12
   
  Total Expenses 419.10 375.60 373.13 794.70 806.02 1,536.57
   
3 Profit / (Loss) from Operations before other income,finance costs 6.67 9.28 13.27 15.95 49.94 55.22
  and exceptional items (1-2)
4 Other Income 4.65 4.52 4.94 9.17 9.13 20.66
5 Profit / (Loss) from ordinary activities before finance costs and 11.32 13.80 18.21 25.12 59.07 75.88
  exceptional items ( 3+4)            
6 Finance Costs 44.87 39.67 38.59 84.54 75.89 152.66
7 Profit / (Loss) from ordinary activities after finance costs but before exceptional items and
foreign exchange( Gain)/ Loss
( 5-6)
(33.55) (25.87) (20.38) (59.42) (16.82) (76.78)
8 Exceptional items            
  a) Foreign Exchange (Gain)/ Loss 11.22 7.06 24.95 18.28 44.10 63.85
  b) Excess Energy Cost 15.66 - - 15.66 - -
9 Profit / (Loss) from ordinary activities before tax (7- 8) (60.43) (32.93) (45.33) (93.36) (60.92) (140.63)
               
10 Tax Expenses (21.64) (11.79) (17.12) (33.43) (17.12) (40.92)
11 Net Profit / (Loss) from ordinary activities after tax (9-10) (38.79) (21.14) (28.21) (59.93) (43.80) (99.71)
12 Extraordinary items - - - - - -
13 Net Profit / (Loss) for the period after tax (11-12) (38.79) (21.14) (28.21) (59.93) (43.80) (99.71)
14 Paid-up Equity Share Capital (Face Value of Rs.5/- per share) 73.25 73.25 73.25 73.25 73.25 73.25
15 Reserves excluding Revaluation Reserves as per - - - - - 416.57
  Balance Sheet of previous accounting year.
16 Earnings per share before extraordinary items            
  Basic & Diluted Earnings per share of Rs.5/- each (Rs) ( not annualised) (2.65) (1.44) (1.93) (4.09) (2.99) (6.81)
17 Earnings per share after extraordinary items            
  Basic & Diluted Earnings per share of Rs.5/- each (Rs) ( not annualised) (2.65) (1.44) (1.93) (4.09) (2.99) (6.81)
   
PART-II  
A SELECT INFORMATION FOR THE QUARTER ENDED 30th SEP, 2013
  PARTICULARS OF SHAREHOLDING
1 Public Shareholding
  Number of Shares 70130712 70130712 70764009 70130712 70764009 70150712
  Percentage of Shareholding 47.87% 47.87% 48.30% 47.87% 48.30% 47.88%
2 Promoters and promoter group shareholding
  (a) Pledged / Encumbered            
  Number of Shares NIL NIL NIL NIL NIL NIL
  Percentage of Shares ( as a % of the total shareholding of promoter - - - - - -
  and promoter group )            
  Percentage of Shares ( as a % of the total share capital of the company ) - - - - - -
  (b) Non - Encumbered
  Number of Shares 76370671 76370671 75737374 76370671 75737374 76350671
  Percentage of Shares ( as a % of the total shareholding of promoter 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
  and promoter group )
  Percentage of Shares ( as a % of the total share capital of the company ) 52.13% 52.13% 51.70% 52.13% 51.70% 52.12%
B INVESTOR COMPLAINTS
  Pending at the beginning of the quarter NIL
  Received during the quarter 1
  Disposed of during the quarter 1
  Remaining unresolved at the end of the quarter NIL
   
 
   
  NOTES ON UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30th SEPTEMBER, 2013
1 The Company had adopted the Hedge Accounting policy and principles set out in Accounting Standard (AS) 30 Financial Instruments: Recognition and Measurement. During the quarter ended 30th September, 2013, the Company has carried Exchange Loss of Rs 23.76 Crore to Hedge Reserve Account and charged Exchange Loss of Rs 2.30 Crore to Statement of Profit and Loss from Hedge Reserve Account. Balance in Hedge Reserve Accounts as on 30th September, 2013 is Rs.90.60 Crore.
2 The Company has exercised the option as per Para 46 A inserted in the Accounting Standard ( AS-11) for treatment of exchange difference on long term monetary liabilities, other than covered under the Hedge accounting . Accordingly during the quarter ended 30th September, 2013, Exchange Loss capitalized is Rs. 25.47 Crore and Exchange Loss recognized in Foreign Currency Monetary Item Translation Difference Account (FCMITDA) is Rs. 2.47 Crore and Exchange Loss of Rs. 0.56 Crore transferred to Statement of Profit and Loss from FCMITDA. Balance in FCMITDA as on 30th September, 2013 is Rs.12.21 Crore.
3 Based on the advice on treatment of Amalgamation Reserve created in terms of the Scheme of Arrangement, sanctioned by the Hon'ble High Court, Bombay, the Company has adjusted depreciation of Rs.1.67 Crore and Rs.3.37 Crore during current quarter and six months ended 30th September, 2013 respectively against the Amalgamation Reserve.
4 The Company has invested Rs.48.43 Crore in its subsidiary ISMT Enterprises, Luxembourg, which in turn holds 100 % investment in Structo Hydraulics AB, Sweden (SHAB). The company has given a corporate guarantee of Rs 31.39 Crores (USD 5 Million) for loan availed by SHAB. The net recoverable on account of supplies by the company to SHAB is Rs. 48.92 Crore. While SHAB had cash loss in the previous year and the net worth of SHAB is eroded. The management is of the opinion that the investment made in ISMT Enterprises group is strategic and as a forward integration in the value chain of core business of the company and the diminution is temporary in nature, as such no provision for the same is considered necessary.
5 The Company had entered in to an Energy Banking Agreement (EBA) dated 7th May, 2010 with Maharashtra State Electricity Distribution Company Limited (MSEDCL) which was not implemented by MSEDCL while granting Open Access permission. Upon petition filed by the Company in this matter an interim order has been passed by Maharashtra Electricity Regulatory Commission, Mumbai (MERC), staying Open Access Circular No. 170 of MSEDCL and making the EBA operative. The said interim order of MERC was challenged by MSEDCL before the Bombay High Court on ground of jurisdiction and was dismissed. Thereafter upon appeal on similar ground, Appellate Tribunal for Electricity has remanded the matter back to MERC after setting aside the MERC order. Based on Legal advice, the Company, pending final disposal of the petition, has continued to accrue Banking Credit as per EBA of Rs. 2.22 Crore and Rs. 9.39 Crore during current quarter and six months ended 30th September, 2013 respectively (Cumulative up to 30th September, 2013 Rs. 39.33 Crore) representing excess energy charges paid to MSEDCL on account of non availability of banking facility.
6 The Company had recognized insurance claim amounting to Rs. 14.98 Crore in the financial year 2011-12. After accounting for receipt of part claim and credit for rejected material, the balance amount of Rs. 2.45 Crore is yet to be received from the Insurance Company. The Company expects that the said claim would be settled by the Insurance Company and there would be no material difference in the settlement of the claim.
7 During the current quarter there was a major break down at Captive Power Plant. As a result the Company had to purchase additional power requirement from MSEDCL at higher rate. The excess energy cost incurred of Rs 15.66 Crore, including repair cost, is treated as exceptional item.

8 The comparative figures are regrouped and reclassified to meet the current quarter's classification.

The above results were reviewed by the Audit committee and have been taken on record by the Board of Directors at their meeting held on 13th November, 2013.

   
   
  For ISMT Limited
   
  Place : Pune Rajiv Goel
  Date : 13th November, 2013 Chief Financial Officer
   
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