Company bought the manufacturing unit from HSIL using debt which increased the interest. Management had told that they will clear this debt in 3years.
The manufacturing unit assets added to depreciation.
Tax rate is abnormally high for unknown reasons and should be around 25%. Maybe due to taxation related to purchase.
Company had sold 50% stake in Hinstastica Private Limited to Atlantic Socicte Francaise De Devlopment Thermique, France (“Groupe Atlantic’’) for joint venture in heating business in the last quarter for which it recorded 100Cr as exceptional gain in the last June quarter. This is causing the profit growth to look abnormally low. Removing it shows that the company actually increased its profit by 208%.
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