Despite losses from a lease contract termination and an impairment charge from newly commissioned plants, Linde India Limited’s latest financials show that revenue and operating profits saw double-digit improvements.

Net revenue for the third quarter, ended 30th September 2016, stood at Rs. 4,650m ($6.9m) – a double-digit increase of 16% compared to the same period last year.

Despite these increases in sales and operating profit, a depreciation charge and financing costs of the Tier One corporation’s newly commissioned air separation units (ASUs) at Tata Steel’s steelworks in Kalinganagar contributed to a loss before tax of Rs. 79m ($1.2m) and net loss of Rs. 55m ($8.2).

Recognition of loss from termination of a finance lease contract of Rs 47m ($7m) and impairment charge of Rs 14m ($2.1m) for an asset also contributed to this loss.

But overall and after adjusting for effects, Linde India saw both sales and operating profit grow by Rs. 520m ($7.8m) and Rs. 26m ($3.8m) respectively, whilst performance at profit before tax level also showed an improvement, totalling Rs. 18m ($2.7m).

Demand

Third-quarter revenue of the company’s Gases business grew by 13%, primarily driven by an increase in demand in the steel and automotive segments, whilst its Project Engineering revenue also registered drastic growth, soaring by 35% compared to the same quarter last year.

Overall, operating profit for the quarter stood at Rs. 758m ($1.1m) – a 21% increase over the corresponding period in 2015 – of which Linde’s Gases business contributed Rs. 652m ($9.7m), recording an increase of 29%.

However, its Engineering business saw a loss of 14% compared to the corresponding period in 2015, with a contribution of Rs. 106m ($1.6m). Linde India attributes this to lower margins on current projects.