MIRA
INFORM REPORT
|
Report Date : |
10.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
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Formerly Known As : |
GEA ENERGY SYSTEM INDIA LIMITED |
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Registered Office : |
Plot No. A - 5, Panamgadu Industrial Estate, Ramapuram Post, Sullurpet
(T), Nellore – 524401, Andhra Pradesh |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
18.02.1985 |
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Com. Reg. No.: |
01-5318 |
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CIN No.: [Company
Identification No.] |
L40106AP1985PTC005318 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDG01305D |
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Legal Form : |
Public Limited
Liability Company. The company’s shares
are listed on the Stock Exchanges. |
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Line of Business : |
Leading supplier
of Tube Cleaning System and Debris Filter on turnkey basis for Power and
Desalination Plants worldwide. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (67) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 28000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established and reputed company having fine track. Financial position of the company appears
to be sound. Directors are reported to be experienced and respectable
businessmen. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
Plot No. A - 5, Panamgadu Industrial Estate, Ramapuram Post, Sullurpet
(T), Nellore – 524401, Andhra Pradesh, India |
|
Tel. No.: |
91-44-27948249 / 27900181 |
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Fax No.: |
91-44-27948359 / 27948249 |
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E-Mail : |
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Website : |
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Overseas Office : |
BFR Energy Systems Limited 610036, Room 1, 4th Floor, Unit 1, 4th Building
in Ming Yuan, Jing Cheng Yuan Garden, No.289 Shuhan Road, Chengdu, China |
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Tel. No.: |
86-28-87583520 |
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Corporate Office : |
443, Anna Salai, Teynampet, Chennai-600018, |
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Tel. No.: |
91-44-24335958 / 24334940 / 24326171 |
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Fax No.: |
91-44-24338775 / 24360576 |
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E-Mail : |
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Website : |
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Regional
Office : |
Located at:
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Principal Office
Divisions |
Power Projects Division Captive Power Division Oil and Gas Equipment Division Air Fin Cooler Division Environment Engineering Division Electrical Projects Division Infrastructure Division |
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Factory : |
304 / 305 Anna Salai Teynampe, Chennai – 600018, |
DIRECTORS
AS ON 31.03.2010
|
Name : |
Mr. B. G.
Raghupathy |
|
Designation : |
Chairman and
managing Director – In Charge of strategic and Corporate management |
|
Address : |
60 (Old No. 100),
|
|
Date of
Birth/Age : |
28.09.1952 / 54
years |
|
Qualification : |
B. Sc |
|
Experience : |
33 years |
|
Date of
Appointment : |
18.02.1985 |
|
Election
Commission Identity Card No. |
TN/03/013/0021350 |
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Nature of
employment: |
Contractual |
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Last
Employment: |
Chief Executive –
Introls |
|
|
|
|
Name : |
Mr. S. Rathinam |
|
Designation : |
Director –
Finance, Head Finance and Accounts |
|
Address : |
No. 19, Rajeswari
Apartment, 58, Bakthavatchalam Salai, Mylapore, Chennai – 600004, |
|
Date of
Birth/Age : |
06.08.1950 / 56
years |
|
Qualification : |
B.Sc, FCA |
|
Experience : |
30 years |
|
Date of
Appointment : |
06.05.1992 |
|
Nature of
employment: |
Contractual |
|
Last
Employment: |
Joint General Manager
(Finance) – Tamil Nadu Industrial Explosives Limited |
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|
Name : |
Mr. S. A. Bohra |
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Designation : |
Director |
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Name : |
Mr. M.
Gopalakrishna |
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Designation : |
Director |
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Name : |
Mr. S. R. Tagat |
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Designation : |
Director |
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Name : |
Mrs. Sasikala
Raghupathy |
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Designation : |
Director |
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Address : |
60 (Old No. 100),
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Date of
Birth/Age : |
14.05.1956 |
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Date of
Appointment : |
20.08.1985 |
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Election
Commission Identity Card No. |
TN/03/013/021710 |
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Name : |
Mr. V R Mahadevan
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Designation : |
Whole time
Director Incharge of Infrastructures business, Technologies and Human
Resources. |
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Date of
Birth/Age : |
48 years |
|
Qualification : |
BE |
|
Experience : |
25 years |
|
Date of
Appointment : |
01.08.1987 |
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Nature of
employment: |
Contractual |
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Last
Employment: |
Project Manager
Best and Crompton Limited |
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|
Name : |
Mr. Heinrich Bohmer |
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Designation : |
Director |
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Name : |
Mr. T. Sankaralingam |
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Designation : |
Managing Director |
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Name : |
Mr. A. Swaminathan |
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Designation : |
Director Sales and Marketing |
KEY EXECUTIVES
|
Name : |
Mr. R. Ramesh
Kumar |
|
Designation : |
President – Corporate and Secretary |
|
Address : |
W – 3, |
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Date of Birth/Age : |
15.05.1962 |
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Date of Appointment : |
20.11.1992 |
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Name : |
Mr. Major H L Khajuria |
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Designation : |
Chief Executive Officer - Environmental Engineering |
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Name : |
Mr. G Suresh |
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Designation : |
Chief Executive Officer -
Captive power |
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Name : |
Mr. V Balakrishnan |
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Designation : |
Electrical Projects |
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Name : |
Mr. S Llanchezhiyan |
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Designation : |
Chief Executive Officer - Air Fin Cooler |
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Name : |
Mr. N. Murali |
|
Designation : |
Chief Executive Officer - Oil and Gas Equipments |
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Name : |
Mr. P. R. Easwar Kumar |
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Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2010
|
Names of Shareholders |
No. of Shares |
Percentage
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
31,295,600 |
43.40 |
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|
27,248,400 |
37.79 |
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|
58,544,000 |
81.19 |
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|
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Total shareholding of Promoter and Promoter Group (A) |
58,544,000 |
81.19 |
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(B) Public Shareholding |
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|
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|
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|
3,862,113 |
5.36 |
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|
10,786 |
0.01 |
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|
451,344 |
0.63 |
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|
2,381,339 |
3.30 |
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|
6,705,582 |
9.30 |
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|
698,353 |
0.97 |
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2,510,481 |
3.48 |
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|
188,472 |
0.26 |
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3,462,628 |
4.80 |
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|
362,782 |
0.50 |
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|
66,338 |
0.09 |
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|
5,812 |
0.01 |
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2,998,295 |
4.16 |
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|
29,401 |
0.04 |
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|
6,859,934 |
9.51 |
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Total Public shareholding (B) |
13,565,516 |
18.81 |
|
Total (A)+(B) |
72,109,516 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 Million BUSINESS DETAILS
|
Line of Business : |
Leading supplier
of Tube Cleaning System and Debris Filter on turnkey basis for Power and Desalination
Plants worldwide. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Air Cooled Heat Exchangers |
No. of Bundles |
600 |
496 |
|
Deaerators |
NOS |
25 |
11 |
|
Oil and Gas Equipments |
NOS |
65 |
53 |
GENERAL INFORMATION
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Bankers : |
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No of Employee: |
1700 |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name: |
Statutory Auditors Manohar Chowdhry
and Associates Chartered
Accountants |
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Address: |
No.21, |
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Tel. No.: |
91-44-2827278 |
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Internal Auditors |
· J V Associates Cost Accountants and Public Auditors · B B Naidu and Company Chartered Accountants · V Krishnan and Company Chartered Accountants · Ramachandran and Murali Chartered Accountants · Brahmayya and Company Chartered Accountants · Venkatesh and Company Chartered Accountants |
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Associates/Subsidiaries : |
·
Progen Systems and Technologies Limited |
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Other Companies: |
·
GEA Cooling Tower Technologies ( · GEA BGR Energy System India Limited ·
Germanischer Lloyd Industrial Services ( · Mega Funds India Limited · Sasikala Estate Private Limited · Schmitz India Private Limited ·
Cuddalore Powergen Corporation Limited |
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Joint Venture: |
·
Mecon – GEA Energy System ( |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
100000000 |
Equity Share |
Rs.10/- Each |
Rs. 1000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
72000000 |
Equity Share |
Rs.10/- Each |
Rs. 720.000
Millions |
Note:
Of the above 6,46,50,000 equity Shares of Rs.10/- Each were
allotted as fully paid up bonus shares by capitalization of profit.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
720.000 |
720.000 |
720.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6312.020 |
4891.458 |
3993.258 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
7032.020 |
5611.458 |
4713.258 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
5313.607 |
6359.842 |
4989.800 |
|
|
2] Unsecured Loans |
4012.421 |
718.167 |
23.504 |
|
|
TOTAL BORROWING |
9326.028 |
7078.009 |
5013.304 |
|
|
DEFERRED TAX LIABILITIES |
1589.120 |
784.954 |
393.328 |
|
|
|
|
|
|
|
|
TOTAL |
17947.168 |
13474.421 |
10119.890 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1390.859 |
910.565 |
449.886 |
|
|
Capital work-in-progress |
103.629 |
54.159 |
10.973 |
|
|
|
|
|
|
|
|
INVESTMENT |
47.800 |
47.800 |
1556.535 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
154.441
|
124.839
|
129.011 |
|
|
Sundry Debtors |
19787.306
|
12780.198
|
7346.165 |
|
|
Cash & Bank Balances |
10234.343
|
6108.286
|
3056.749 |
|
|
Other Current Assets |
188.693
|
185.820
|
94.646 |
|
|
Loans & Advances |
7270.468
|
6454.196
|
2722.295 |
|
Total
Current Assets |
37635.251
|
25653.339
|
13348.866 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
11033.383
|
4415.790 |
|
|
|
Other Current Liabilities |
7864.638
|
7874.029
|
4848.046 |
|
|
Provisions |
2332.350
|
901.623
|
398.324 |
|
Total
Current Liabilities |
21230.371
|
13191.442
|
5246.370 |
|
|
Net Current Assets |
16404.880
|
12461.897
|
8102.496 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
17947.168 |
13474.421 |
10119.890 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
30692.489 |
19220.974 |
15048.337 |
|
|
|
Other Income |
247.030 |
315.226 |
58.435 |
|
|
|
TOTAL (A) |
30939.519 |
19536.200 |
15106.772 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of material |
21844.283 |
13517.336 |
10999.383 |
|
|
|
Cost of manufacturing |
2343.735 |
1691.540 |
1399.447 |
|
|
|
Other direct cost |
659.555 |
600.743 |
289.450 |
|
|
|
Administration, selling and general expenses |
2390.958 |
1346.874 |
834.272 |
|
|
|
Increase/ decrease in WIP |
18.775 |
(16.140) |
15.652 |
|
|
|
TOTAL (B) |
27257.306 |
17140.353 |
13538.204 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3682.213 |
2395.847 |
1568.568 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
537.620 |
579.368 |
265.866 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3144.593 |
1816.479 |
1302.702 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
97.849 |
69.956 |
50.230 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3046.744 |
1746.523 |
1252.472 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1036.527 |
595.614 |
408.038 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2010.217 |
1150.909 |
844.434 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
201.022 |
115.090 |
NA |
|
|
|
Dividend |
504.000 |
216.000 |
NA |
|
|
|
Tax on Dividend |
85.655 |
36.709 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
1219.540 |
783.110 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Sales |
3350.603 |
841.635 |
|
|
|
|
Services |
25.431 |
0.000 |
|
|
|
TOTAL EARNINGS |
3376.034 |
841.635 |
1305.738 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
9735.880 |
2420.188 |
|
|
|
|
Capital Goods |
304.297 |
5.903 |
|
|
|
TOTAL IMPORTS |
10040.177 |
2426.091 |
1763.106 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
27.92 |
15.98 |
12.64 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2010 |
30.09.2010 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
9066.680 |
11356.070 |
|
Total Expenditure |
|
8029.100 |
10032.700 |
|
PBIDT (Excl OI) |
|
1037.580 |
1323.370 |
|
Other Income |
|
26.370 |
25.580 |
|
Operating Profit |
|
1063.940 |
1348.950 |
|
Interest |
|
115.890 |
138.280 |
|
PBDT |
|
948.060 |
1210.680 |
|
Depreciation |
|
30.990 |
32.620 |
|
Profit Before Tax |
|
917.070 |
1178.060 |
|
Tax |
|
311.710 |
400.420 |
|
Profit After Tax |
|
605.360 |
777.640 |
|
Net Profit |
|
605.360 |
777.640 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
6.50
|
5.89 |
5.59 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.93
|
9.09 |
8.32 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.81
|
6.57 |
9.08 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.43
|
0.31 |
0.27 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
4.35
|
3.61 |
2.18 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.77
|
1.94 |
2.54 |
LOCAL AGENCY FURTHER INFORMATION
History
Subject is one of the
FINANCIAL PERFORMANCE
During FY 2009 - 10, the Company achieved Total Income of Rs. 30920.700 Millions as against the previous year’s Total Income of Rs.19552.300 Millions , accounting for a topline growth of 58%. The key parameters of EBIDTA and PAT witnessed a growth of 63% and 75% over the previous year. The highlights of the financial performance of the Company during the year ended March 31, 2010
BUSINESS PERFORMANCE
During the year, the Company’s operations continued to grow by registering all round growth in turnover, profit and other key performance indicators. A brief overview of the significant operational and business developments in various businesses / projects are given below;
i) During the FY 2009-10, the Company secured 2 major EPC contracts for BOP;
(a) 2 X 500 MW Chandrapur Super Thermal Power Station (STPS) Expansion Project from Maharashtra Power Generation Corporation (MAHAGENCO) valued at Rs. 16350.000 Millions . This is the second order received by the Company from MAHAGENCO.
(b) 2 X 500 MW Marwa Thermal Power Project of Chattisgarh State Power Generation Company valued at Rs. 16330.000 Millions .
ii) The Board is pleased to inform that the 500 MW BOP for Vijayawada Thermal Power Station achieved plant synchronization on April 6, 2009 and the unit has commenced commercial operation on January 27, 2010. The 500 MW BOP for Kakatiya Thermal Power Project achieved synchronization on March 31, 2010. The 500 MW Khaperkheda Project is progressing well.
iii) The boiler drum lifting was successfully completed for the 600 MW EPC Contract for Mettur in a record time of 107 working days.
iv) Air Fin Cooler division has achieved highest order
booking of Rs. 1890.000 Millions during
2009-10 as against the order booking of Rs. 390.000 Millions in the previous financial year. The turnover
of the division during 2009-10 was Rs. 810.000 Millions as against Rs. 1090.000 Millions last year due to recession and oil crisis.
During the year the division received breakthrough orders from GASCO,
v) Oil and Gas
equipment division has set up a new manufacturing facility as a 100% Export
Oriented Unit at
vi) Environmental Engineering division has secured vendor
registration with BHEL, LANCO, Land T, MAHAGENCO etc., for Condensate Polishing
Unit (CPU) based on the license agreement with
vii) Electrical projects division has completed supplies for its first major order for Gas insulated switchgear from TNEB. During the year 2009-10, the division has secured an order for turnkey execution of gas insulated substations for Mettur Thermal Power station. Another significant breakthrough was in the Optic Ground Wire (OPGW) market with an order for Rs. 980.000 Millions from Powergrid Corporation for building Optic Fibre network for 4500 kms across major Northern States. The division has also secured a turnkey contract from Nuclear Power Corporation of India Limited, for implementation of 415 V Motor Control Centers (MCC) for Bharatiya Nabhikiya Vidyut Nigam Limited (BHAV|NI) and the 500 MW Prototype Fast Breeder Reactor (PFBR) project at Kalpakkam, Chennai.
viii) A MoU was signed in April, 2010 by the Company with the Government of Orissa for
setting up of 2 X 660 MW Power Plant in Nayagarh District, State of
INDIAN MARKET
SCENARIO
The power sector is expected to continue in its high growth trajectory during the XII and XIII Plan periods as the government accords high priority to infrastructure development in general and power sector in particular. With the policy shift to energy-saving technology and lower emissions, the share of thermal projects based on supercritical technology will witness higher capacity addition.
The Indian government’s continuous effort to meet the ambitious goals of the XI plan has given an impetus to the current power scenario and has provided significant stimulus and hope that we might reach the 1000 units per capita consumption of electricity by the year 2012. The entire value chain of the power sector has been dominated by the Central and State utilities having 49.8 GW and 76.6 GW capacity respectively out of the overall national capacity of 152 GW. The private sector stands at 25.8 GW but infact growing.
During the year, the CEA guidelines for BOP contractors were significantly revised to encourage more players in the market. The new guidelines have enabled major construction companies and BOP package vendors to come together to form a consortium and bid for a project. The EPC space on the other hand is still limited to a few players as the prequalification requirements are still a barrier to many companies.
The private sector has become really aggressive in putting up power plants due to the easy availability of funds from financial institutions and the government policy to welcome investments from the private sector. This has increased the number of tenders being floated. Most private companies are shying away from the package route and are now more open towards the twin package or the total EPC route which provides opportunities for the Company. The Ministry of Power has set the goal of “Power for all by 2012”. The recent policy statement of the Government of India anticipates that capacity addition during the XI plan is likely to be 62,374 MW as against the target of 78,700 MW. As a result of lower capacity addition, the power sector is expected to grow by 9.5%. The additional requirement of power during XII plan is expected to be about 1,07,000 MW of which thermal power plants of 50,506 MW are under execution. The revision in mega power plant policy is likely to result in lower cost of generation. The share of private players in generation has also increased considerably.
FUTURE OUTLOOK AND
STRATEGY
In the light of strong growth of the Power sector, the
Company is uniquely placed as a complete EPC solution provider and has the
capability to provide “in-house” close to 90% of the products pertaining to
power plant. The Company is in the
process of significantly increasing its engineering capabilities in the form of
new facilities, manpower addition, technology transfer and skills training so
as to imbibe all the engineering aspects of various equipment/packages and not
depend on third party engineering consultants. This would enable the Company to provide better monitoring of
quality, better engineering and innovation thereby providing greater value to
the customer at very competitive prices. With the technology tie-up for
supercritical technology, the Company
will be the third company in
technology.
The number of EPC players for power plants in
PERFORMANCE OF
SUBSIDIARY
The company’s subsidiary, Progen Systems and Technologies Limited, engaged in the business of manufacture of Welded Finned Tubes and Pressure Vessels for power and process industries, has recorded a turnover of Rs. 69.200 Millions and net profit of Rs. 04.300 Millions for the year ended March 31, 2010. Statement under Section 212 of the Companies Act, 1956.
MANAGEMENT DISCUSSION
AND ANALYSIS
ORDER BOOKING FOR
2009-10
During the year the Company bagged two prestigious BOP contracts for construction of 4 X 500 MW units for aggregate value of Rs.32680.000 Millions s (2 x 500 MW Chandrapur TPS from MAHAGENCO and 2 x 500 MW Marwa TPP from Chattisgarh State Powergenco). The order from MAHAGENCO which is their second similar order shows their confidence reposed in our capability and paves the way for our position as a leading EPC company for large power plants. The two large EPC contracts secured in 2008-09 from RRVUNL and TNEB and other contracts are being executed satisfactorily.
ECONOMIC SCENARIO
The year 2009-10 continued under the throes of the global financial crisis and economic slowdown, though the later part of the year showed significant revival. The Indian economy however achieved significant growth compared to many other economies. Economic experts have predicted that the Asian economy in general and the Indian economy in particular will grow much faster in the next few years. Given the economic environment and the policies of the Union government, the Indian economy is expected to achieve robust growth and provide conducive environment and fillup to various sectors of the Indian Economy.
INDIAN POWER SECTOR
AND BUSINESS OUTLOOK
With the ambitious target for the XII plan and the XIII plan the power sector is poised for rapid growth. Considering the growing demand for power and projects under construction and the completion of projects until the middle of the XI plan period the capacity addition in the power sector is bound to grow. As part of the plan to shift to energy saving technology and lower emissions, the share of super critical thermal power projects will rise. This offers excellent business opportunities to the company to secure large EPC and BOP contracts. Given the thrust of the Union Government to encourage Domestic Equipment Manufacturers and the many initiatives taken, the company is poised for rapid growth in future years.
REVIEW OF OPERATIONS
The construction and EPC segment has achieved 68 % growth in terms of sales. The order book of the capital goods segment is quite healthy, and offers good growth opportunities for 2010-11. The company has augmented various resources required for timely completion of contracts including equipment and manpower. The Vijayawada Thermal Power Station 500 MW BOP contract from APGENCO executed by the Power Projects Division which was synchronized in April 2009 is currently operating at its peak capacity. In the case of Kakatiya Thermal Power Plant 500 MW BOP, the plant was synchronized in March 2010. Various other contracts of large size power plants are under execution. The contract execution by the Chinese BTG vendor has been satisfactory and the company is confident of completing the two EPC contracts as per contractual conditions.
The Air Fin Cooler Division achieved a turnover of Rs.810.000 Millions s during 2009-10 and has booked new orders valuing Rs.1890.000 Millions s which is the largest order booking by the division in any financial year so far. The division hopes to significantly increase its turnover during 2010-11.
The Environmental Engineering Division has commissioned large Effluent Treatment Plants in Tirupur. The division has received a maiden order for Condensate Polishing Unit (CPU) based on strategic Technical Collaboration and License Agreement with Termomeccanica. The division also commissioned the DM plant for a 2 x 525 MW power plant.
The Electrical Projects Division secured an order for
Rs.980.000 Millions from Powergrid
Corporation of India Limited for building Optical Fibre ground wire interstate
network for a total length of 4500 Kilometers in northern
The Oil and Gas Equipment Division has constructed a new
100% EOU factory to facilitate execution of overseas contracts which will
result in tax savings. The contract from SCOP
FINANCIAL REVIEW
· The turnover during the year at Rs.30690.000 Millions s registered a growth of 60%.
· EBIDTA at Rs.3480.000 Millions s registered a growth of 63%.
· Profit Before Tax at Rs.3050.000 Millions s registered a growth of 74%.
· Profit After Tax at Rs.2010.000 Millions s registered a growth of 75%.
· The Networth stood at Rs.7030.000 Millions s compared to Rs.5610.000 Millions s in the previous year.
· The Return on Capital Employed improved to 29.03% as compared to 19.4% in the previous year.
· The EPS for the year improved to Rs 27.92 per share compared to Rs15.98 per share
Fixed Assets
·
Land
·
Buildings
·
Plant and Machinery
·
Furniture and Fixtures
·
Office Fixtures
·
Office Equipments
·
Electrical Installations
·
Vehicles
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30TH SEPTEMBER, 2010
Rs. in Millions
|
Particular |
Quarter
Ended |
Half
Year Ended |
|
|
30.09.2010 |
30.09.2010 |
|
|
Unaudited
|
Unaudited
|
|
|
|
|
|
Net Sales/ Income
form operation |
11337.115 |
20391.418 |
|
Other Operating
Income |
18.957 |
31.276 |
|
Total Income |
11356.072 |
20422.694 |
|
Expenditure |
|
|
|
Increase /
Decrease in stock |
1.356 |
(17.262) |
|
Consumption of
raw material / purchase |
9282.323 |
16660.400 |
|
Employees cost |
336.886 |
662.809 |
|
Depreciation |
32.623 |
63.609 |
|
Other expenditure
|
412.128 |
755.848 |
|
Total expenditure
|
10065.316 |
18125.404 |
|
Profit from operation
before other income, interest and exceptional items |
1290.756 |
2297.290 |
|
Other income |
25.581 |
52.005 |
|
Profit before
interest and exceptional items |
1316.337 |
2349.295 |
|
Interest |
138.280 |
254.168 |
|
Profit after interest
but before exceptional items |
1178.057 |
2095.127 |
|
Exceptional items |
-- |
-- |
|
Profit / Loss
from ordinary activities before tax |
1178.057 |
2095.127 |
|
Tax expenses |
400.421 |
712.133 |
|
Net profit/ Loss from
ordinary activities after tax |
777.636 |
1382.994 |
|
Extra ordinary
items |
-- |
-- |
|
Net profit / Loss
for the period |
777.636 |
1382.994 |
|
Paid up equity
share capital (face value of equity shares of Rs. 10/- each) |
721.095 |
721.095 |
|
Reserves
excluding revaluation reserves |
7737.834 |
7737.834 |
|
Earning per
shares (in Rs) Basic |
10.79 |
19.20 |
|
Earning per
shares (in Rs) Diluted |
10.76 |
19.15 |
|
Public
shareholding |
|
|
|
Number
of Shares |
13565516 |
13565516 |
|
% of Shareholding |
18.81 |
18.81 |
|
Promoters
and Promoter Group Shareholding |
|
|
|
a)
Pledged/Encumbered |
|
|
|
-
Number of Shares |
-- |
-- |
|
-
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 |
58544000 |
58544000 |
|
-
Percentage of Shares (as a % of the Total Shareholding of Promoter and
Promoter Group) |
100.00 |
100.00 |
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
81.19 |
81.19 |
SEGMENT WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED
Rs. in Millions
|
Particular |
Quarter Ended |
Half Year Ended |
|
|
Unaudited |
Unaudited |
|
|
30.09.2010 |
30.09.2010 |
|
Segment Revenue |
|
|
|
Capital Goods |
546.499 |
814.970 |
|
Construction and
EPC Contracts |
10790.616 |
19576.449 |
|
Total |
11337.115 |
20391.419 |
|
Less: Inter Segment
Revenue |
-- |
-- |
|
Net Sales/
Income From Operations |
11337.115 |
20391.418 |
|
Segment Results
(Before tax and interest) |
|
|
|
Capital Goods |
40.586 |
42.746 |
|
Construction and
EPC Contracts |
1250.170 |
2254.544 |
|
Unallocable Income
Net of Expenditure |
25.581 |
52.005 |
|
Total |
1316.337 |
2349.295 |
|
Less: Interest |
138.280 |
254.168 |
|
Total Profit
Before Tax |
1178.057 |
2095.127 |
|
Capital Employed
(Segment Assets – Segment Liabilities) |
|
|
|
Capital Goods |
405.756 |
405.756 |
|
Construction and
EPC Contracts |
6998.573 |
6998.573 |
|
Unallocated |
1054.600 |
1054.600 |
|
Total Capital
Employed |
8458.929 |
8458.929 |
Note:
- The above results were reviewed by the audit committee and approved
by the board of directors at their meeting held on October 27, 2010 and
October 28, 2010 respectively.
- The financial results for the period ended September 30, 2010 of the
company on standalone basis have been subjected to a “Limited Review” by
the statutory auditors of the company.
- Status of investors companies a) At the beginning of the quarter – 5
b) Received during the quarter – 18, c) Resolved/Replied during the
quarter – 18 and d) pending at the end of the quarter – 5
- The company received Rs.2073.600 millions towards issued of shares
during 2007-08 by way of public issue.
|
Particular |
Rs. in millions |
|
Total proceeds
received |
2073.600 |
|
Issue expenses |
172.400 |
|
Net proceeds |
1901.200 |
|
Utilized towards
working capital requirement |
1250.000 |
|
Balance to be
utilized |
651.200 |
- The figures for the previous period have been regrouped/ rearranged wherever
necessary to conform to the current period of presentation.
STATEMENT OF
ASSETS AND LIABILITIES
|
Particular |
As at 30.09.2010 |
|
|
Unaudited |
|
Shareholders
Fund |
|
|
Capital |
721.095 |
|
Employee Stock
Option Application Money |
5.014 |
|
Reserves and
Surplus |
7737.834 |
|
Minority
Interest |
-- |
|
Loan Fund |
14508.242 |
|
Deferred Tax
Liability |
1883.565 |
|
Total |
24855.750 |
|
Goodwill |
-- |
|
Fixed Assets |
1617.644 |
|
Investment |
1367.854 |
|
Current Assets, Loans
and Advances |
|
|
Inventories |
252.388 |
|
Sundry Debtors |
28875.001 |
|
Cash and Bank
Balances |
8558.744 |
|
Other Current
Assets |
316.091 |
|
Loans and
Advances |
6951.147 |
|
Less: Current
Liabilities and Provisions |
|
|
Liabilities |
20502.289 |
|
Provisions |
2580.830 |
|
Miscellaneous
Expenditure (Not Written Off or Adjusted) |
-- |
|
Total |
24855.750 |
PRESS RELEASE:
BGR ENERGY
DECIARES SUSTAINED
HIGHLIGHTS:
- Net Sales up by 143%.
- PAT grows 154%
- EBIDTA jumps by 122%
- EPS Rs. 10.79, growth of 154%
Chennai, October 28, 2010: For the eleventh
consecutive quarter, BGR Energy Systems Limited has demonstrated superior
growth in sales and profits and achieved all-round growth during the quarter
ended 30 September 2010.
The key performance figures are as below:
|
Particular |
For Q-2 FY 2011 |
For Q-2 FY 2010 |
Growth |
|
Sales |
11337.100 |
4659.600 |
143% |
|
Profit before tax |
1178.000 |
463.000 |
154% |
|
Profit after tax |
777.600 |
305.600 |
154% |
|
EPS (basic) (Rs.) |
107.900 |
42.500 |
154% |
Net sales of SGR Energy grown to Rs.11340.000
Millions during the quarter, a 143 % increase over Rs.4660.000 Millions
registered during the same period of the previous year. Bop and EPC business
contributed 95% of the revenue during the quarter. The Company’s Profit after
tax for the quarter witnessed a surge o 154 %, at Rs.777.600 Millions from
Rs.305.600 Millions for the same period last year. The operating margin stood
at 11.67 % EPS has zoomed by 154 %, from Rs 4.25 in Q-2 of 2009 to Rs. 107.900
for the same quarter in 2010.
Half-Year Results
During Hi, BGR Energy has improved its Net
Sales by 162°7o to Rs.20390.000 Millions as against Rs.7770.000 Millions in the
corresponding period of the previous year. Net Profit of the Company zoomed to
Rs.1380.000 Millions during the first
six months of the financial year, from Rs.508.000 Cr recorded a year-ago,
registering an increase of 172 % EPS also posted a healthy growth o 172 % from
Rs.70.600 in Hi of 2010 to Rs.192.000 during the half-year ended 30 September
2010.
The timely execution and delivery of large
projects enabled the Company to achieve these improved results and the Company
is well poised to maintain this trend.
Outlook
The current Order book of Rs.105000.000
Millions enables the Company to sustain its growth momentum in the near term.
The Company is well positioned to harness opportunities in the Indian Power
sector as its EPC capabilities were consolidated by recent Joint Ventures with
Hitachi of Japan for manufacture of Supercritical Boiler, Turbine and
Generators of 660 MW to 1000 MW. This strategy is expected to enable the
Company to enhance its growth trajectory in the long term as well.
About BGR Energy Systems Limited
BGR Energy is a leading Company in the
business of Turnkey Engineering and Contracting for Balance of Plant (B0P) and
full service Engineering, Procurement and Construction (EPC) for power projects
in
For Further Information, Please Contact:
Sreenivasa Rao Behara
Senior Manager – Corporate Communication
Tel: 91-44-24334828/24334829
Email: Sreenivasbehara@bgrenergy.com
Website: www.bgrcorp.com
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records 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.45.37 |
|
|
1 |
Rs.70.03 |
|
Euro |
1 |
Rs.58.93 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
67 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.