For the quarter ended December 2018, Ador Fontech registered 23% rise in consolidated sales to Rs 47.40 crore. OPM fell 50 basis points to 10.2% which saw OP grow 17% to Rs 4.85 crore.

Other income fell 26% to Rs 45 lakh and interest stood at Rs 3 lakh against Rs 2 lakh. As depreciation went up 20% to Rs 95 lakh, PBT grew 10% to Rs 4.32 crore.

Tax grew 6% to Rs 1.82 crore after which PAT went up 12% to Rs 2.50 crore.

Nine months results

For the nine months, Ador Fontech registered 31% rise in consolidated sales to Rs 139.05 crore. OPM jumped 440 basis points to 10.4% which took OP up 128% to Rs 14.47 crore.

Other income grew 1% to Rs 1.67 crore and interest stood at Rs 10 lakh against Rs 12 lakh. As depreciation went up 9% to Rs 2.77 crore, PBT grew 148% to Rs 13.27 crore.

Tax grew 71% to Rs 4.30 crore after which PAT went up 217% to Rs 8.97 crore.

Operates a niche business

Ador Fontech focuses on maintenance welding, which is a niche segment that requires specialised skills. It offers products and solutions for reclamation welding and recycling of vital machinery components.

The company caters to the 'Life Enhancement of Vital Machinery Components'. The domain expertise in this sector calls for application of high level of skills covering metallurgy, chemical and repair welding processes. There are quite a few players in this market and competition is keen. Nonetheless, the underlying fact is the contribution that this segment offers to the world at large, in terms of conservation of depleting natural resources, which is substantial. Further, industries in general are benefited by way of greater productivity, resulting from lesser downtime. This unique predisposition, places Ador Fontech on a consistent growth platform.

Ador Fontech offers both equipment and full end-to-end solutions for its welding clients.

The company's product basket includes filler wires, welding equipment/accessories, wire feeders, wearplates and cladded pipes. Apart from manufacturing the said products the company also acts as a value added reseller for Alloy Steel International, Australia; Berkenhoff, Germany; CEA, Italy; Cepro, Netherlands; Degussa, Germany; Delora Stellite, Germany; Euromate, Netherlands; Gasflux, USA; Protector, Australia/Singapore; Sulzer Metco, Swiz /USA for their products in India. It also offers high temperature process for maintenance products from AREMCO, USA for the repair and corrosion protection of metal and refractory materials.

Serves to almost all the core sector and several engineering industries

Ador Fontech supplies products and services to almost all the core sector and several engineering industries. The focus of its activities is to provide metal joining, reclamation welding and surfacing solutions.

Some of the company's customer base includes, Steel and other metallurgical complexes, Mining industries, Power plants, Railways, Road transport workshops, Sugar mills, Cement plants, Fertilizer and chemical plants, Defence workshops, Shipping industries, Oil drilling, refining and transportation sector and a whole range of other engineering industries.

After economic slow down, almost all its customers now have optimistic growth plans. Worldwide, the demand for metals, alloys and mineral resources is on the rise. This augurs well for Ador Fontech. The other opportunities are in the fields of high productivity welding and cutting systems, welding fume extraction systems, specialised surfacing and hard-facing alloys and deposition equipment.

Valuation

The stock trades at Rs 106.

Ador Fontech: Consolidated results