MIRA
INFORM REPORT
|
Report Date : |
06.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
BLUE STAR LIMITED |
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Registered Office : |
Kasturi Building,
Mohan T Advani Chowk, Jamshedji Tata Road, Mumbai-400020, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
20.01.1949 |
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Com. Reg. No.: |
11-6870 |
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CIN No.: [Company
Identification No.] |
U28920MH1949PTC006870 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMB11714D |
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PAN No.: [Permanent
Account No.] |
AAACB4487D |
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Legal Form : |
A Public Limited
Liability Company. Company’s shares are listed on the stock exchanges |
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Line of Business : |
Manufacturing, marketing
and contracting of centrifugal chillers, reciprocating chillers, vapour
absorption machines, air handling units, variable air volume systems,
prefabricated modular cold rooms, condensers, water coolers, window
air-conditioners, mini split air-conditioners and environmental test
chambers. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
Maximum Credit Limit : |
USD |
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|
Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an
old, well established and reputed company and it is one of the largest
Central Air Conditioning and Commercial Refrigeration Companies in India. The
company’s focus is on the corporate and commercial sectors. The company’s
business has been growing extremely well. Trade relations are reported as
fair. Payments are correct and as per commitments. It can be
considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered Office/ Head Office : |
Kasturi Building,
Mohan T Advani Chowk, Jamshedji Tata Road, Mumbai-400020, Maharashtra |
|
Tel. No.: |
91-22-66654000 |
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Fax No.: |
91-22-66654151 |
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E-Mail : |
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Website : |
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Corporate
Office : |
Kasturi Building, 4th Floor, Mohan T. Advani Chowk,
Jamshedji Tata Road, Mumbai - 400 020, Maharashtra |
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|
|
|
Plants: |
Ø 2nd Pokhran Road, Majiwada,
Thane - 400 601, Maharashtra Tel. No. 91-22-25346265 Fax No. 91-22-25345525 Ø Plot Nos. 4 & 5, GIDC Industrial Estate,
Narmada Nagar Post, Bharuch - 392 015,
Gujarat Tel. No. 91-2642-246116 Fax No. 91-2642-246026 Ø Survey No. 265/2, Demni Road, Dadra - 396
191, Union Territory of Dadra & Nagar Haveli Tel. No. 91-260-2648617 / 618 Fax No. 91-260-2648503 Ø Nahan Road, Rampur Jattan Kala Amb,
District Sirmour, Himachal Pradesh 173030i |
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|
|
|
Regional Office: |
Ø Blue Star House, 9A, Ghatkopar Link Road,
Sakinaka, Mumbai - 400072 Tel No. 91-22-28523600 Fax No. 91-22-28522988 Ø Block 2-A, DLF Corporate Park, DLF Qutab
Enclave, Phase III, Gurgaon - 122 002, Haryana Tel. No. 91-124-26359001-20 Fax No. 91-124-26359220 Ø 7, Hare Street, Kolkata - 700 001, West
Bengal Tel. No. 91-33-22480131 Fax No. 91-33-22481599 Ø 133, Kodambakkam High Road, Chennai - 600 034,
Tamilnadu Tel. No. 91-44-28272056 Fax No. 91-44-28253121 |
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Overseas
Office : |
·
Malaysia ·
U.A.E. ·
U.S.A. |
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Sales &
Services Offices: |
Ø
Sahas, 414/2
Veer Savarkar Marg, Prabhadevi, Mumbai 400 025,
Maharashtra Tel. No 91-22-56664000 Fax. No. 91-22-56664001 Ø
59 Forbes
Street, Mumbai 400 001, Maharashtra Tel: 91-22-22843873 Ø
Unit G-2,
Shalimar Industrial Estate, Dharavi Road, Matunga, Mumbai 400 019,
Maharashtra Tel. No 91-22-24075356/57 Fax. No 91-22-24024644 Ø
Unit 1
Prabhadevi Industrial Estate, Prabhadevi, Mumbai 400025, Maharashtra Tel. No 91-22-24227305 Fax. No 91-22-24376041 Ø
201/A,
Nityanand Complex, 247/A Bund Garden Road, Pune 411011, Maharashtra Tel. No 91-20-26127230 Fax. No 91-20-26121342 Ø
Ramkrishna
Chambers, Productivity Road, Alkapuri, Vadodara, Gujarat Tel. No 91-265-2332022 Fax. No 91-265-2337516 Ø
219 Bajaj
Nagar, 1st Floor, South Ambazari Road, Nagpur 440010, Maharashtra Tel. No. 91-712-2249301 / 2249304 Ø
"Star
Arcade", 2nd Floor, Plot No. 165A & 166, Zone - I, Maharana Pratap
Nagar, Bhopal - 462 011, Madhya Pradesh Tel. No 91-755-25273378 Ø
1st Floor,
Flat No.1, Vaibhav Apartment, Vidyanagar Colony, Miramar, Panjim, Goa 403 001 Tel. No. 91-832-2462756 Ø
E-44/12,
Okhla Industrial Area, Phase II, New Delhi 110 020 Tel. No 91-11-51494000 Fax. No 91-11-51494004 Ø
T.C.IX/1490,
Chandrika, Sasthamangalam, Thiruvananthapuram - 695 010, Kerala Tel. No. 91-471-2720025 Ø
1, Madhya
Marg, Sector 26, Chandigarh - 160 019 Tel. No 91-172-2791101/2792934 Fax. No 91-172-2791101 Ø
B-140,
Nirala Nagar, Lucknow 226 007, Uttar Pradesh Tel. No 91-522-2789172 Ø
A-19, First
Floor, Main Sahakar Path, Nr. Sahakar Bhavan, Jaipur, Rajasthan Tel. No 91-141-5179359/60 Ø
2nd
Floor, New Star Freeze Building, Opp. Kunjalata Bibah Bhawan, G S Road,
Guwahati – 781005, Assam Tel. No. 91-361-2340619 Ø
3A, Satya
Nagar, 2nd Floor, Bhubaneswar 751 007, Orissa Tel. No 91-674-2508239 / 2508270 Ø
5 Bazullah
Road, T Nagar, Chennai 600 017, Tamilnadu Tel. No 91-44-28235531 /
28235534 Fax. No. 91-44-28235667 Ø
11 A
Magarath Road, Bangalore 560 025, Karnataka Tel. No 91-80-25584728 Fax. No. 91-80-25584599 Ø
Meenakshi
Mandiram, XXXIX/4080, M.G. Road, Kochi – 682016, Kerala Tel. No. 91-484-2361282 /
2367843 Ø
207 Sikh
Road, Bantia Estate, Secunderabad 500 003, Andhra Pradesh Tel. No. 91-40-27842057 /
27842058 Fax. No. 91-40-27841445 Ø
47-12-6/7,
2nd Floor, Amaravathi Complex, Dwarakanagar, Visakhapatnam, Andhra Pradesh,
India Tel. No. 91-891-2748433 Fax. No. 91-891-2701041 |
DIRECTORS
|
Name : |
Mr. Ashok M.
Advani |
|
Designation : |
Chairman & Managing Director |
|
Age: |
62 years |
|
Qualification: |
B. Sc., SB, MBA |
|
Experience: |
38 years |
|
Date of
Joining: |
01.07.1969 |
|
Previous
Employment: |
RCA INC., USA – Information Systems Projects Specialist – (1968-69) |
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|
|
|
Name : |
Mr. Suneel M.
Advani |
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Designation : |
Vice Chairman and Managing Director |
|
Age: |
60 years |
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Qualification: |
SB, SB, LL.B., |
|
Experience: |
35 years |
|
Date of
Joining: |
17.03.1969 |
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|
|
|
Name : |
Mr. T. G. S. Babu |
|
Designation : |
Deputy Managing Director |
|
Age: |
50 years |
|
Qualification: |
B. Tech., MBA |
|
Experience: |
28 years |
|
Date of
Joining: |
01.11.1995 |
|
Previous
Employment: |
MRF Limited,
Chennai, Tamilnadu – General Manager (1991-95) |
|
|
|
|
Name : |
Mr. Pradeep
Mallick |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Gurdeep Singh |
|
Designation : |
Director |
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|
Name : |
Mr. Suresh N.
Talwar |
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Designation : |
Executive Director |
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|
Name : |
Mr. Nawshir H.
Mirzaq |
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Designation : |
Director |
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|
Name : |
Mr. Satish Jamdar |
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Designation : |
Deputy Managing Director |
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|
Name : |
Mr. Shailesh
Haribhakti |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. K. P. T.
Kutty |
|
Designation : |
Company
Secretary |
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|
Name : |
Mr. Arun Khorana |
|
Designation : |
Vice President – Electronic Division |
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|
Name : |
Mr. Ranajit
Majumadar |
|
Designation : |
Vice President –
Human Resources & Quality |
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|
|
Name : |
Mr. Avinash
Pandit |
|
Designation : |
Vice President – Packaged Airconditioning Division |
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|
Name : |
Mr. H. Rajaram |
|
Designation : |
Vice President –
Finance |
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|
Name : |
Mr. S. Sankaran |
|
Designation : |
Vice President – Airconditioning Project Division |
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|
Name : |
Mr. B.
Thiagarajan |
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Designation : |
Vice President -
Corporate Affairs and Communications |
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|
|
|
Name : |
R. Arvindan |
|
Designation : |
Vice President
– Packaged Air conditioning Division |
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|
|
Name : |
J. M. Bhambure |
|
Designation : |
Vice President
– Dadra Plant |
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|
|
|
Name : |
Michael Fernandes |
|
Designation : |
Vice President
– Human Resources and Quality |
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|
Name : |
A. Rakesh Rao |
|
Designation : |
Vice President
- Air conditioning and
Project Division |
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|
Name : |
P. Venkat Rao |
|
Designation : |
Vice President 0
Room Air conditioner and Refrigeration Products Division |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.09.2007
Category
|
No. of shares
|
% of shareholding
|
|
|
|
|
promoters'
holdings
|
|
|
|
Individuals |
24487895 |
27.23 |
|
Bodies Corporate |
7931762 |
8.82 |
|
Trust |
3148835 |
3.50 |
|
Total |
35568492 |
39.55 |
|
|
|
|
non
promoter's holdings
|
|
|
|
|
|
|
|
INSTITUTIONAL
INVESTORS |
|
|
|
|
|
|
|
Mutual Funds And
UTI |
5593469 |
6.22 |
|
Banks, Financials
Institutions, Insurance |
21930 |
0.02 |
|
Insurance
Companies |
2763040 |
3.07 |
|
FIIS |
2260212 |
2.51 |
|
Foreign Financial
Institutions |
2250 |
0.00 |
|
Foreign Mutual
Fund |
3760288 |
4.18 |
|
Total |
14401189 |
16.00 |
|
|
|
|
|
NON-INSTITUTIONS |
|
|
|
Bodies Corporate |
4718737 |
5.25 |
|
Individuals |
|
|
|
Individuals -i. Individual shareholders holding nominal
share capital up to Rs 1 lakh |
23151631 |
25.74 |
|
ii. Individual shareholders holding nominal share capital in excess of Rs. 1 lakh. |
10281272 |
11.43 |
|
|
|
|
|
Any Other (specify) |
|
|
|
Clearing member |
18085 |
0.02 |
|
Foreign Company |
375 |
0.00 |
|
Market Maker |
9467 |
0.01 |
|
Foreign Nationals |
30125 |
0.03 |
|
NRI (Repatriate) |
353666 |
0.39 |
|
NRI (Non-Repatriate) |
859991 |
0.96 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing,
marketing and contracting of centrifugal chillers, reciprocating chillers,
vapour absorption machines, air handling units, variable air volume systems, prefabricated
modular cold rooms, condensers, water coolers, window air-conditioners, mini
split air-conditioners and environmental test chambers. |
PRODUCTION STATUS
|
Particulars |
|
Unit |
Installed
Capacity |
Actual
Production |
|
Refrigeration
& Airconditioning Equipment |
|
Nos. |
356250.00 [246730.00] |
154760.00 [124192.00] |
|
Packaged Air
Conditioning |
|
Nos. |
112500.00 [18000.00] |
67975.00 [16559.00] |
|
Industrial
packaged chillers |
|
Nos. |
1450.00 [1450.00] |
1204.00 [1057.00] |
|
Shell & tube
condenses & coolers |
|
Nos. |
[-] |
1861.00 [-] |
|
Air handling
units |
|
Nos. |
15500.00 [15500.00] |
9635.00 [10280.00] |
|
Finned condenses
& evaporators |
|
Nos. |
10780.00 [10780.00] |
6685.00 [-] |
GENERAL
INFORMATION
|
Customers : |
Ø
The
Presidential Palaces Complex, Damascus, Syria Ø
University
of Baghdad Ø
State Bank
Headquarters, Mauritius Ø
Taj Lanka
Hotels, Colombo Ø
Kompleks
Dami Ø
Kuala Lumpur Ø
US
Geological Survey Mission, Jeddah Ø
Grand Hyatt
Hotel Ø
SHAR Space
Centre Ø
Infosys Ø
Wipro
Limited Ø
Satyam Ø
Sterlite
Industries Ø
Sri Sailam
Left Bank, Andhra Pradesh Ø
Moser Baer
India Limited, Noida, Uttar Pradesh Ø
DLF Square Ø
Palm Court Ø
Gateway
Tower Ø
Nestle
House, Gurgaon, Haryana Ø
Imax Dome
Theatre, Mumbai Ø
UTI Bank,
Chennai, Tamilnadu Ø
Sterling Towers,
Chennai, Tamilnadu Ø
Ebony
Showroom, New Delhi Ø
Amul Ø
Domino's Ø
Dinshaw Ø
Hindustan
Lever Limited Ø
Johnson
& Johnson Ø
Kodak Ø
Le Meridien Ø
McDonalds Ø
Oberoi Hotel |
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Bankers : |
Ø The Hongkong
& Shanghai Banking Corporation Ltd Ø State Bank of
India Ø Oriental Bank of
Commerce Ø ABN - AMRO Bank Ø BNP Paribas |
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Facilities : |
|
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Banking
Relations : |
Good |
|
|
|
|
Auditors : |
|
|
Name : |
K S Aiyar &
Company Chartered
Accountant |
|
|
|
|
Branch Auditor |
Ø R Venkatarama
Aiyar & Company, Kolkata Ø Fraser & Ross,
Chennai Ø
Mohinder Puri & Company, New Delhi |
|
|
|
|
Registrar & Share Transfer Agents : |
Intime Spectrum Registry Ltd C-13, Pannalal Silk Mills Compound L B S Marg, Bhandup (West) Mumbai 400 078. |
|
Tel. No.: |
91-22-5555 5454 |
|
Fax No.: |
91-22-5555 5353 |
|
|
|
|
Associates/Subsidiaries : |
Ø
Yokogawa
Blue Star Limited 40/4, Lavalle Road, Bangalore 560 001, Karnataka Tel. No. : 91-80-2271513 Fax No. : 91-80-2274270 Ø
Arab
Malaysian Blue Star Sdn. Bhd. 18th Floor, Bangunan AMDB, No.1, Jalan Lumut, Kompleks Damai, Tel No. : 03-4418261 Fax No. : 03-4419520 E-Mail: ambsklm@po.jaring.my Ø
Rolastar
Private Limited, India Ø
Ravistar
Private Limited, India Ø
Stork
Comprimo BV, Netherlands Ø
Blue Star
Infotech Limited Ø
Easy Flow
Air Products Private Limited Ø
Synergy
Realtors and Services Private Limited Ø
Admo Holding
Private Limited Ø
Sunag
Investments Private Limited Ø
Sunashad
Investments Private Limited Ø
Sunash
Investments Ø
Mohan T.
Advani and Company (AOP) Ø
Mohan T.
Advani Finance (Private) Limited Ø
J. T. Advani
(Finance) Private Limited Ø
Ashok Sunil
& Company Private Limited Ø
Aerm
Compressors Private Limited, India Ø
Climatrol,
Italy Ø
Heat Craft,
USA Ø
Mitsubishi
Heavy Industries, Japan Ø
Rheem
Manufacturing Company, USA Ø
Tenney Inc,
USA Ø York International, USA Ø
USIN
International Inc., USA Ø Blue Star Infotech (UK) Limited, UK Ø Blue Star Quarter – [LLC] |
CAPITAL STRUCTURE
Authorised Capital :
|
10000 |
7.8% Cumulative Preference shares
of Rs. 100/- each |
Rs. 1.000 millions |
|
148700000 |
Equity shares of Rs. 10 each |
Rs. 297.400 millions |
|
16000 |
Unclassified shares of Rs. 100 each |
Rs. 1.600 millions |
|
|
|
Rs. 300.000 millions |
Issued Capital :’
|
89936105 |
Equity shares of Rs. 10/- each |
Rs. 179.872 millions |
Subscribed & Paid-up
Capital :
|
4678203 |
Equity Shares of Rs. 10/- each |
Rs. 46.782 millions |
|
929 |
Shares allotted as fully paid up of Rs. 10/- each |
Rs. 0.009 million |
|
13305268 |
Bonus Shares by Capitalisation of Reserves and Share Premium of Rs.
10/- each |
Rs. 133.053 millions |
|
2821 |
7.8% Cumulative Preference Shares of Rs. 100/- each |
Rs. 0.028 millions |
|
|
Total
|
Rs. 179.872 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
179.872 |
179.872 |
179.872 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1949.792 |
1547.234 |
1304.309 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2129.664 |
1727.106 |
1484.181 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
390.496 |
405.748 |
359.124 |
|
|
2] Unsecured Loans |
500.000 |
352.965 |
13.660 |
|
|
TOTAL BORROWING |
890.496 |
758.713 |
372.784 |
|
|
DEFERRED TAX LIABILITIES |
65.144 |
90.531 |
82.809 |
|
|
|
|
|
|
|
|
TOTAL |
3085.304 |
2576.350 |
1939.774 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1140.769 |
967.741 |
765.748 |
|
|
Capital work-in-progress |
24.129 |
110.891 |
72.750 |
|
|
|
|
|
|
|
|
INVESTMENT |
52.988 |
51.777 |
51.777 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1880.803
|
1498.399 |
1066.642 |
|
|
Sundry Debtors |
3506.838
|
2388.451 |
1957.699 |
|
|
Cash & Bank Balances |
46.073
|
23.680 |
24.781 |
|
|
Other Current Assets |
0.000
|
0.000 |
00.000 |
|
|
Loans & Advances |
856.488
|
906.474 |
689.155 |
|
Total
Current Assets |
6290.202
|
4817.004 |
3738.277 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
4291.050
|
3123.242 |
2473.623 |
|
|
Provisions |
154.229
|
280.435 |
219.313 |
|
Total
Current Liabilities |
4445.279
|
3403.677 |
2692.936 |
|
|
Net Current Assets |
1844.923
|
1413.327 |
1005.341 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
22.495 |
32.614 |
44.158 |
|
|
|
|
|
|
|
|
TOTAL |
3085.304 |
2576.350 |
1939.774 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
15945.824 |
11706.743 |
9309.152 |
|
|
Other Income |
128.245 |
79.487 |
|
|
|
Total Income |
16074.069 |
11786.230 |
9309.152 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
925.972 |
690.947 |
524.409 |
|
|
Provision for Taxation |
214.162 |
201.903 |
132.828 |
|
|
Profit/(Loss) After Tax |
711.810 |
489.044 |
391.581 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
1138.439 |
824.732 |
766.354 |
|
|
|
|
|
|
|
|
Total Imports |
2061.128 |
1187.971 |
802.304 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Sales, Work Bills & Services |
12426.910 |
9062.539 |
|
|
|
Employee Remuneration |
1228.612 |
882.750 |
|
|
|
Operating and General Expenses |
1188.070 |
933.540 |
|
|
|
Depreciation |
209.012 |
159.256 |
|
|
|
Interest |
95.493 |
57.198 |
|
|
Total Expenditure |
15148.097 |
11095.283 |
11269.391 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2007 |
30.09.2007 |
|
Type |
|
1 Quarter |
2 Quarter |
|
Sales Turnover |
|
4622.500
|
5477.700
|
|
Other Income |
|
0.700
|
08.200
|
|
Total Income |
|
4623.200
|
5485.900
|
|
Total Expenditure |
|
4243.300
|
4793.700
|
|
Operating Profit |
|
379.900
|
692.200
|
|
Interest |
|
22.400
|
15.700
|
|
Gross Profit |
|
357.500
|
676.500
|
|
Depreciation |
|
49.800
|
52.400
|
|
Tax |
|
83.500
|
164.400
|
|
Reported PAT |
|
223.200
|
459.700
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.43 |
0.35 |
0.18 |
|
Long Term Debt-Equity Ratio |
0.26 |
0.16 |
0.01 |
|
Current Ratio |
1.27 |
1.23 |
1.21 |
|
Fixed Assets |
7.44 |
6.48 |
6.13 |
|
Inventory |
8.54 |
8.25 |
8.97 |
|
Debtors |
5.37 |
5.39 |
5.53 |
|
Interest Cover Ratio |
10.69 |
13.07 |
15.67 |
|
Operating Profit Margin(%) |
7.71 |
7.75 |
6.83 |
|
Profit Before Interest And Tax Margin(%) |
6.40 |
6.38 |
5.49 |
|
Cash Profit Margin(%) |
5.77 |
5.54 |
5.19 |
|
Adjusted Net Profit Margin(%) |
4.46 |
4.18 |
3.84 |
|
Return On Capital Employed(%) |
37.46 |
35.04 |
31.42 |
|
Return On Net Worth(%) |
36.91 |
30.45 |
25.32 |
LOCAL AGENCY
FURTHER INFORMATION
HIGHLIGHTS OF 2006
– 07
·
Total Income reached Rs.16074.1 Millions, a major growth of
36% over the previous year.
·
Profit Before Tax rose to Rs.926.0 Millions from Rs.690.9
Millions, while Profit After Tax jumped by 46% to Rs.711.8 Millions.
·
Earnings per share climbed to Rs.7.91 on the face value of
Rs.2/- per share compared to Rs.5.44 in the previous year.
·
The Directors have recommended a final dividend of Rs.0.60
per share of Rs.2/- each, in addition to the interim dividend of Rs.2.40 per
share.
OPERATING
PERFORMANCE
The Company continued its impressive growth in revenue and profits for the
fourth year in succession. Each of the three business segments performed well.
The Central Airconditioning Systems, which provided 70% of the total revenue,
recorded a growth of 37% in revenue and 28% in profits. Cooling Products sales
also grew by 37% while profits shot up by 78% despite severe competition.
Professional Electronics & Industrial Systems showed revenue growth of 30%
and profit increase of 35%.
All the four manufacturing plants increased production substantially. In order
to continue to meet the rapidly growing demand, the Company decided to set up a
fifth plant in Wada, Maharashtra. A large plot of land admeasuring about 14
hectares (35 acres) was acquired and construction work is ready to start. The
first phase would be ready for commercial production before the end of the
current financial year.
FINANCIAL
PERFORMANCE
Despite inflationary increase in input costs and higher
interest rates, the Company was able to restrict the erosion in gross margin
and operating margin to a relatively modest figure. This was mainly due to
determined efforts in cost control and value engineering combined with
selective price increases. The result was a healthy increase in profits. Profit
After Tax climbed by 46% to Rs.711.800 Millions.
Tight funds management also helped to mitigate the impact of higher interest
rates. Operating cash flow improved significantly to Rs.601.200 Millions. The
Debt/Equity Ratio remained comfortable at 0.42 despite the substantial growth
in business volume and investments in manufacturing and other facilities.
EXPORT & FOREIGN EXCHANGE
EARNINGS
Income from product exports increased by 40% to Rs.880.5
Millions while commission income grew by 73% to Rs.213.700 Millions. Project
exports remained modest. Total foreign exchange earnings climbed by 38% to
Rs.1138.400 Millions.
Total
foreign exchange outflow during the year was Rs.2106.2 Millions.
MANAGEMENT DISCUSSION AND ANALYSIS
INTRODUCTION
Subject is India's largest and most preferred central airconditioning and
commercial refrigeration company, fulfilling the needs of a large number of
corporate and commercial customers. With over six decades of experience in
providing expert cooling solutions, Blue Star has been associated with the most
prestigious projects and installations in the country.
Another
significant area of business interest to Blue Star is distribution and
maintenance of imported professional electronic and industrial systems. These
include turnkey engineered solutions in the areas of manufacturing, telecom,
healthcare, defence, pharmaceuticals, banking and R&D.
Subjects strong credentials and reputation
coupled with its engineering expertise and ethical business practices have
contributed to sustained growth and leadership. Blue Star achieved leadership
status in most of its chosen markets over a decade ago, and it continues to
maintain and strengthen its position, despite stiff global competition.
LINES
OF BUSINESS
Subject primarily focuses on the corporate and commercial
markets. These include institutional, industrial and government organizations
as well as commercial establishments such as malls, multiplexes, showrooms,
restaurants, banks, hospitals, and boutiques. In accordance with the nature of
products and markets, business drivers, and competitive positioning, the lines
of business of Blue Star can be segmented as follows:
CENTRAL
AIRCONDITIONING SYSTEMS
This business includes the design, engineering, manufacturing,
installation, commissioning and support of central air conditioning plants and
ducted systems. It also promotes after-sales service as a business, by offering
several value added services in the areas of upgrades and enhancements, air
management, water management and energy management.
COOLING PRODUCTS
Subject
offers a wide range of contemporary window and split airconditioners. The
Company also manufactures and markets a comprehensive range of commercial
refrigeration products and services that cater to the industrial, commercial
and hospitality sectors. These include cold chain equipment such as pack
houses, customized cold storages, bulk cold storages and supermarket
refrigeration equipment. In addition, Blue Star also offers water coolers, bottled
water dispensers, deep freezers, milk coolers, bottle coolers and ice cube
machines.
PROFESSIONAL ELECTRONICS AND INDUSTRIAL
SYSTEMS
For
over five decades, the Electronics Division has been the exclusive distributor
in India for many internationally renowned manufacturers of hi-tech
professional electronic equipment and services, as well as industrial products
and systems. The Company has carved out profitable niches for itself in most of
the specialized markets it operates in, such as analytical instruments, medical
electronics, data communication products, industrial systems, material testing,
and test and measuring instruments.
FINANCIAL HIGHLIGHTS
In 2006-07, the
Company sustained its record of growth and profitability. The Company's focus on
profitable growth in its core businesses as well as the buoyancy in the
economic environment contributed to its impressive financial performance. For
the year ended March 31, 2007, Net Sales grew 36% to reach Rs.16012.8 Millions.
Net Profit grew 46% to Rs.711.8 Millions, while Earnings Per Share increased to
Rs.7.91 from Rs.5.44 (face value of Rs.2.00). Total Income for the year stood
at Rs.16074.1 Millions, representing a 36% growth over the previous year.
Operating
profit (PBDIT excluding Other Income) for the year at Rs.1169.2 Millions grew
35% compared to Rs.866.8 Millions earned in the previous year.
While Return on
Capital Employed (ROCE) grew from 30.1% to 32.1%, Return on Shareholders' Funds
improved to 33.4% from last year's figure of 28.3%.
INDUSTRY STRUCTURE AND
DEVELOPMENTS
AIR-CONDITIONING
The market size for airconditioning in India is estimated to be around Rs.75000
Millions. Of this, the market for central airconditioning, including central
plants and ducted systems, is estimated to be around Rs.37000 Millions, whilst
the market for window and split air conditioners comprises the balance Rs.38000
Millions.
The commercial airconditioning market catering to corporate and commercial
establishments is projected to be around Rs.50000 Millions. Segments such as
IT/ITES, retail, industrial, entertainment, pharma, healthcare, hospitality,
telecom and banking fuelled the growth of the commercial airconditioning
industry. With continued investments in infrastructure and a buoyant economic
environment, the commercial airconditioning industry is expected to grow in
excess of 25% over the next few years.
COMMERCIAL REFRIGERATION
The market for
commercial refrigeration equipment and systems is estimated to be around
Rs.15000 Millions. The commercial refrigeration segment includes a wide range
of products such as cold storages, supermarket refrigeration equipment, water
coolers, bottled water dispensers, deep freezers, milk coolers, bottle coolers
and ice cubers.
Considering the
huge potential of the country for production and distribution of perishable
commodities such as fruits and vegetables, milk, fish and poultry products, the
current cold chain infrastructure in the country is totally inadequate.
Further, the country suffers huge post-harvest losses worth thousands of
crores. The need today is for perishables to be supported right from the farm
end to the retail end by the use of cold storages involving conventional,
controlled and modified atmospheres.
Recognizing this vital need, the Central Government is
taking action to improve the cold chain infrastructure. Their intention to
enhance production and export of vegetables and fruits thereby raising
agricultural income has resulted in large business houses announcing plans and
embarking on contract farming and branded exports. The cold chain will require
pre-coolers, bulk cold storages, transport refrigeration and perishable cargo
complexes.
Further, retailing of agricultural produce - both raw and processed is
undergoing a massive transformation in the big cities with the emergence of
supermarket chains. These high quality supermarkets, regardless of size,
require a lot of refrigeration equipment for storing and showcasing food
produce. New retail players are continuously entering the fray to take part in
this Indian retail explosion. These players need to build a scaleable model
across regions to reduce the cost of their operations, since they will have to
be price competitive to attract public consumption. This will result in a huge
demand for cold chain equipment including bulk cold storages.
Fixed Assets:
v Land- Freehold
v Land Leasehold
v Building Sheds and
Road
v Plant and Machinery
v Furniture, Fittings
& Equipments
v Vehicles
v Computers
v
Intangible Assets- BaaN SYSTEM
AS PER WEBSITE DETAILS
COMPANY PROFILE
Subject is India's largest
central airconditioning company with an annual turnover of Rs 16070 Millions, a
network of 23 offices, four modern manufacturing facilities and around 2000
employees.
It fulfils the
airconditioning needs of a large number of corporate and commercial customers
and has also established leadership in the field of commercial refrigeration
equipment ranging from water coolers to cold storages. Blue Star's other
businesses include marketing and maintenance of hi-tech professional electronic
and industrial products.
Subject has business
alliances with world renowned technology leaders such as Rheem Mfg Co, USA;
Hitachi, Japan; Eaton - Williams, UK; Thales e-Security Ltd., UK; Jeol, Japan;
ISA, Italy and many others, to offer superior products and solutions to
customers.
The Company has
manufacturing facilities at Thane, Dadra, Bharuch and Himachal which use
state-of-the-art manufacturing equipment to ensure that the products have
consistent quality and reliability.
Subject primarily focuses
on the corporate and commercial markets. These include institutional,
industrial and government organizations as well as commercial establishments
such as showrooms, restaurants, banks, hospitals, theatres, shopping malls and
boutiques. In accordance with the nature of products and markets, business
drivers, and competitive positioning, the lines of business of Blue Star can be
segmented as follows:
Central Airconditioning Systems
This involves design,
engineering, manufacturing, installation, commissioning and support of large
central airconditioning plants, packaged airconditioners and ducted split
airconditioners. This line of business also promotes after-sales service as a
business, by offering several value added services in the areas of upgrades and
enhancements, air management, water management and energy management.
Cooling Products
Subject offers a wide range
of contemporary window and split airconditioners. The Company also
manufactures and markets a
comprehensive range of commercial refrigeration products and services that
cater to the industrial, commercial and hospitality sectors. These include
water coolers, bottled water dispensers, deep freezers, cold storages, bottle
coolers, ice cube machines and supermarket refrigeration products.
Professional Electronics and Industrial Systems
For over five decades, the
Electronics Division has been the exclusive distributor in India for many
internationally renowned manufacturers of hi-tech professional electronic
equipment and services, as well as industrial products and systems. The Company
has carved out profitable niches for itself in most of the specialized markets
it operates in, such as analytical instruments, medical electronics, data
communication products, material testing, and test and measuring instruments.
Year Event
1943 Mohan
T Advani establishes Blue Star Engineering Company as a proprietary firm
1946 Blue
Star secures Melchior Armstrong Dessau agency
1947 Worthington selects Blue Star as Indian
Partner. Manufacturing of ice candy machines an bottle coolers begins. Central airconditioning system design and
execution begins
1948 Manufacture
of water coolers commences
1949 Proprietorship
converted to Private Limited Companies
1954 Blue
Star selected as distributor for Honeywell
1955 GDR
Testing machines distributorship begins
1957 Perkin-Elmer tie-up marks the start
of the electronics business. GDR business machines agency commences
1960 Total
Income crosses the Rs 10 Millions mark
1962 GDR
Machine Tools distributorship begins
1964 Total
employment crosses 1,000
1965 Techniglas
Pvt Ltd set up to manufacture insulation material
1969 Factory
moves from Colaba in Mumbai to Thane
1970 Hewlett-
Packard distributorship commences
1972 First skyscrapers of Mumbai – Air
India Building, Express Towers and Oberoi Hotel set-up – all airconditioned by
Blue Star
1972 Total
Income crosses Rs 100 Millions. Employment crosses 2,000
1974 Water
Cooler manufacturing license granted to Yusuf Alghanim, Kuwait
1977 Middle
East thrust begins. Joint Venture (JV) with Al Shirawi in Dubai
1977 Hitachi
Medical Equipment distributorship begins
1978 Industrial
Division commences activity
1980 Bharuch
Factory set up
1980-86 Major
AC and R projects executed in the Middle East
1983 International
Software Division inaugurated in Seepz
1984 York
technology collaboration begins
1985 Manufacture
of centrifugal packaged chillers commences at Thane Plant
1986 Total
Income crosses Rs 1000 Millions
1987 Yokogawa
Blue Star JV formed
1987 Gandhinagar
factory set up for EPABX systems
1988 Blue
Star becomes India’s largest central airconditioning company
1988 Manufacturing
collaboration with Mitsubishi
1988 Assembly
of personal computers under the brand name ‘Quantum’ begins
1989 JV
with Hewlett-Packard and Motorola
1990 Gandhinagar
factory closes
1992 Total
Income crosses Rs 2000 Millions
1992 Blue
Star exits from Motorola JV
1993 Formation
of Arab Malaysian Blue Star JV in Malaysia
1995 Blue
Star exits from HP India JV
1997 Dadra
Plant inaugurated
1998 Major
thrust on dealerisation and brand building begins
1999 Blue
Star exits from Industrial Projects business
2000 International
Software business spun off to form Blue Star Infotech, listed on stock
exchanges
2001 Total
Income crosses 5000 Millions. Export of airconditioning products begins
2003 Blue
Star exits Yokogawa JV
2005 Blue
Star sets up new factory at Kala Amb in Himachal Pradesh
2006 Total
Income crosses the Rs 10000 Millions mark
2006 Blue
Star opts for a 5 for 1 stock split
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 39.32 |
|
UK Pound |
1 |
Rs. 82.08 |
|
Euro |
1 |
Rs. 56.96 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|