MIRA
INFORM REPORT
|
Report Date : |
29.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
PENNAR INDUSTRIES LIMITED |
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Formerly Known As : |
PENNAR STEELS LIMITED |
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Registered Office : |
Floor No. 1, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
08.08.1975 |
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Com. Reg. No.: |
01-1919 |
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CIN No.: [Company
Identification No.] |
L27109AP1975PLC001919 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDP00081E |
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PAN No.: [Permanent
Account No.] |
AABC93074H |
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|
Legal Form : |
Public limited liability company. Company’s shares are listed in the
stock exchange. |
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Line of Business : |
Manufacture and Distribution of cold rolled steel strips, cold
rolled formed sections and press components; wind power generation |
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|
No. of Employees : |
1300 Approximately |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 8600000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. 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 dealing 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 : |
Floor No. 1, |
|
Tel. No.: |
91-40-23117043 / 45 |
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Fax No.: |
91-40-23117041 |
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E-Mail : |
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Website : |
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Corporate Office/Factory 1: |
IDA, Patancheru
- 502 319, Medak (Dist), |
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Tel. No.: |
91-8455-242184 To 242193 |
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Fax No.: |
91-8455-242424 / 242161 |
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E-Mail : |
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Area: |
43 Acres |
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Factory 2 : |
Isnapur |
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Tel. No.: |
91-8455-226615 / 17 |
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Fax No.: |
91-8455-226412 |
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Area: |
26 Acres |
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Factory 3 : |
Tarapur Pressmetal (Pennar), MIDC, Tarapur, |
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Tel. No.: |
91-2525-272517 / 609 / 429 |
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Fax No.: |
91-2525 272536 |
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E-Mail : |
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Area: |
5 Acres |
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Factory 4 : |
Chennai |
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Tel. No.: |
91-44-27629042 / 27601009 / 27601010 |
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Fax No.: |
91-44-2762 9298 |
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E-Mail : |
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Area: |
5 Acres |
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Factory 5 : |
43, SIDCO Industrial Estate, II Phase, Hosur, Tamil |
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Branches: |
Located
At: ·
·
Chennai ·
·
·
Hosur ·
·
·
Kolkotta ·
Mumbai ·
Pune ·
|
DIRECTORS
|
Name : |
Mr. Nrupender
Rao |
|
Designation : |
Executive Chairman |
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|
Name : |
Mr.
Ch Anantha Reddy |
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Designation : |
Managing Director |
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Name : |
Mr. |
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Designation : |
Non Executive Director |
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Name : |
Dr. G Vivekanand |
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Designation : |
Independent Non Executive Director |
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Name : |
Mr. C
Parthasarathy |
|
Designation : |
Independent Non Executive Director |
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|
Name : |
Mr. B Kamalakar Rao |
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Designation : |
Independent Non Executive Director, Additional
Director |
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Name : |
Mr. A
|
|
Designation : |
Independent Non Executive Director |
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Name : |
Mr. C
Rangamani |
|
Designation : |
Independent Non Executive Director |
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Name : |
Mr. P
Bhaskara Rao |
|
Designation : |
Non Executive Director |
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Name : |
Mr.
Aditya N Rao |
|
Designation : |
Executive Director - Projects |
KEY EXECUTIVES
|
Name : |
Mr. R. Ravi |
|
Designation : |
Vice President, Finance and Company Secretary |
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Name : |
Mr. B. Bal Reddy |
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Designation : |
President-Operations |
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Name : |
Mr. T. Ramesh Babu |
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Designation : |
Deputy General Manager-Manufacturing |
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Name : |
Mr. N. A. Kumar |
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Designation : |
General Manager-Manufacturing-ECD |
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Name : |
Mr. D. Rajendran |
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Designation : |
Deputy General Manager-Manufacturing-Tubes |
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Name : |
Mr. R. Padma Raju |
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Designation : |
General Manager-Manufacturing-CRSS |
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Name : |
Mr. Y. Narasimha Rao |
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Designation : |
Senior General Manager-Marketing-CRFS |
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Name : |
Mr. N. Dayasagar Rao |
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Designation : |
General Manager-Manufacturing-CRFS |
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Name : |
Mr. Ram Bhoopal Reddy |
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Designation : |
General Manager-Quality Assurance |
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Name : |
Mr. K. Murali Venkat |
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Designation : |
Deputy General Manager-Materials |
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Name : |
Ch Bheemeswara Rao |
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Designation : |
General Manager-Projects |
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Name : |
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Designation : |
Chief Financial Officer and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Category of Shareholder |
No. of Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
22883752 |
18.75 |
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|
20131822 |
16.50 |
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|
43015574 |
35.25 |
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|
|
|
|
|
4733239 |
3.88 |
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|
4733239 |
3.88 |
|
Total shareholding of Promoter and Promoter Group (A) |
47748813 |
39.13 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
950 |
- |
|
|
2708 |
- |
|
|
1249005 |
1.02 |
|
|
19404290 |
15.90 |
|
|
8714052 |
7.14 |
|
|
8714052 |
7.14 |
|
|
29371005 |
24.07 |
|
|
|
|
|
|
17638551 |
14.45 |
|
|
|
|
|
|
12279067 |
10.06 |
|
|
13495400 |
11.06 |
|
|
1491164 |
1.22 |
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|
1469179 |
1.20 |
|
|
10955 |
0.01 |
|
|
11030 |
0.01 |
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|
44904182 |
36.80 |
|
Total Public shareholding (B) |
74275187 |
60.87 |
|
Total (A)+(B) |
122024000 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
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|
- |
- |
|
Total (A)+(B)+(C) |
122024000 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Foreign FundsBUSINESS DETAILS
|
Line of Business : |
Manufacture and Distribution of cold rolled steel strips,
cold rolled formed sections and press components; wind power generation |
||||||||
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||||||||
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Products : |
·
Pre-Engineered Building Systems ·
Electro Static Precipitators
|
PRODUCTION STATUS AS ON 31.03.2010
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Cold Rolled Steel Strips |
(Tonnes per
annum) |
Delicensed |
110000 |
103749 |
|
Cold Formed Metal Profiles and Pressed Components |
(Tonnes per
annum) |
Delicensed |
105000 |
86760 |
GENERAL INFORMATION
|
No. of Employees : |
1300 Approximately |
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Bankers : |
·
State Bank of ·
Axis Bank Limited ·
State Bank of |
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Facilities : |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
Rambabu and Company Chartered Accountants |
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Address : |
31, Pancom Chambers, 6-3-1090/1/A, |
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|
|
|
Associates/Subsidiaries : |
·
Pennar Engineered Building Systems Limited ·
Pennar Chemical Limited ·
Pennar Aluminium Company Limited ·
Karvy Computershare Private Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
150000000 |
Equity Shares |
Rs.5/- each |
Rs.750.000 millions |
|
500000 |
Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.50.000 millions |
|
40000000 |
Cumulative Redeemable Preference Shares |
Rs.5/- each |
Rs.200.000 millions |
|
|
Total |
|
Rs.1000.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
126477479 |
Equity Shares |
Rs.5/- each |
Rs.632.387
millions |
|
4453479 |
Less : Buy Back Shares |
Rs.5/- each |
Rs.22.267
millions |
|
|
Total |
|
Rs.610.120 millions |
|
|
|
|
|
|
17553299 |
Cumulative Redeemable Preference Shares |
Rs.5/- each |
Rs.87.766
millions |
|
|
Total |
|
Rs.697.886 millions |
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 |
697.886 |
720.154 |
720.154 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1455.496 |
1261.602 |
1161.703 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2153.382 |
1981.756 |
1881.857 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1256.886 |
1067.867 |
1015.213 |
|
|
2] Unsecured Loans |
232.921 |
204.145 |
180.162 |
|
|
TOTAL BORROWING |
1489.807 |
1272.012 |
1195.375 |
|
|
DEFERRED TAX LIABILITIES |
40.674 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3683.863 |
3253.768 |
3077.232 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1403.605 |
1345.222 |
1279.870 |
|
|
Capital work-in-progress |
86.298 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
185.027 |
0.027 |
1.097 |
|
|
DEFERREX TAX ASSETS |
0.000 |
86.526 |
279.993 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1180.612
|
726.823
|
729.396 |
|
|
Sundry Debtors |
1166.366
|
958.603
|
806.949 |
|
|
Cash & Bank Balances |
109.492
|
73.525
|
111.925 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
434.118
|
464.748
|
268.280 |
|
Total
Current Assets |
2890.588
|
2223.699
|
1916.550 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
351.344
|
113.144 |
322.618 |
|
|
Other Current Liabilities |
106.624
|
56.780 |
57.586 |
|
|
Provisions |
428.375
|
240.130 |
32.082 |
|
Total
Current Liabilities |
886.343
|
410.054 |
412.286 |
|
|
Net Current Assets |
2004.245
|
1813.645 |
1504.264 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
4.688 |
8.348 |
12.008 |
|
|
|
|
|
|
|
|
TOTAL |
3683.863 |
3253.768 |
3077.232 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Net Sales |
7979.603 |
6532.729 |
5602.192 |
|
|
|
Other Income |
4.172 |
3.179 |
5.961 |
|
|
|
TOTAL (A) |
7983.775 |
6535.908 |
5608.153 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed |
5502.073 |
4693.449 |
3963.964 |
|
|
|
Personnel Cost |
257.567 |
209.865 |
147.328 |
|
|
|
Other Manufacturing Costs |
505.509 |
353.644 |
346.224 |
|
|
|
Administrative and Selling Expenses |
620.608 |
520.748 |
487.478 |
|
|
|
Preliminary Expenditure Written off |
3.660 |
3.660 |
3.686 |
|
|
|
TOTAL (B) |
6889.417 |
5781.366 |
4948.680 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1094.358 |
754.542 |
659.473 |
|
|
|
|
|
|
|
|
|
Less |
FINANCING
COSTS (D) |
113.711 |
141.446 |
179.244 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
980.647 |
613.096 |
480.229 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
123.905 |
84.987 |
80.482 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
856.742 |
528.109 |
399.747 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
356.040 |
147.220 |
91.682 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
500.702 |
380.889 |
308.065 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
200.368 |
17.488 |
(290.577) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Equity Dividend |
153.183 |
126.477 |
0.000 |
|
|
|
Preference Dividend |
0.009 |
0.032 |
0.000 |
|
|
|
Dividend Distribution Tax |
26.035 |
21.500 |
0.000 |
|
|
|
General Reserve |
50.500 |
50.000 |
0.000 |
|
|
|
Capital Redemption Reserve |
22.267 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
449.076 |
200.368 |
17.488 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
8.510 |
19.910 |
191.900 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
3.37 |
-- |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
30.06.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
5th
Quarter |
|
Net Sales |
2592.160 |
2491.150 |
2775.780 |
3018.880 |
2654.150 |
|
Total Expenditure |
2271.910 |
2166.450 |
2434.960 |
2667.780 |
2319.720 |
|
PBIDT (Excl OI) |
320.250 |
324.700 |
340.820 |
351.100 |
334.430 |
|
Other Income |
1.190 |
1.000 |
0.860 |
1.480 |
2.430 |
|
Operating Profit |
321.430 |
325.700 |
341.680 |
352.580 |
336.860 |
|
Interest |
32.600 |
28.200 |
22.460 |
18.900 |
26.460 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
288.830 |
297.500 |
319.220 |
333.680 |
310.400 |
|
Depreciation |
26.920 |
27.220 |
29.050 |
38.570 |
31.870 |
|
Profit Before Tax |
261.910 |
270.280 |
290.170 |
295.110 |
278.530 |
|
Tax |
97.260 |
99.750 |
106.810 |
103.830 |
99.700 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
164.650 |
170.530 |
183.360 |
191.290 |
178.830 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
164.650 |
170.530 |
183.360 |
191.290 |
178.830 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
6.27
|
5.83 |
5.49 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.74
|
8.08 |
7.14 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
19.95
|
14.80 |
12.51 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.40
|
0.27 |
0.21 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.10
|
0.85 |
0.85 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.26
|
5.42 |
4.65 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE
For the financial
year 2009-10, the Company reported its highest annual sales revenue of
Rs.8611.400 millions against Rs.7305.100 millions recorded in 2008-09,
registering an increase of 17.88%. This increase in sales was achieved despite
a reduction in the price of steel. The increase in the sales tonnage was 37.60%
over that of last year. The Company recorded an operating profit (PBIDT) of
Rs.1098.000 millions against Rs.758.200 millions in the previous year and a net
profit of Rs.500.700 millions compared with Rs.380.900 millions reflecting a
growth of 44.81% and 31.45% respectively over the previous year. The above
excellent results were due to the Company’s strategy to transform itself into
an engineering company by manufacturing products for rail wagons and coaches,
automobiles,
buildings, pollution control, and road safety systems. The Company’s continued
focus on speciality profiles, sub-assemblies and fabricated components for
transportation and infrastructure companies contributed to the increase in the
Company’s top line and bottom line.
PENNAR ENGINEERED BUILDING SYSTEMS LIMITED (PEBS)
The Company
commissioned the Building Systems Project set up by it’s Subsidiary, Pennar
Engineered Building Systems Limited (PEBS). PEBS is engaged in the business of
design, manufacture and erection of pre-engineered steel buildings. Commercial
production commenced effective January 1, 2010. The subsidiary has technical
collaboration for manufacturing weather resistant roofing systems with NCI
Building Systems (USA), one of the world’s largest pre-engineered building
solution providers.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
THE GLOBAL ECONOMY
The world
weathered the deepest recession since 1939 with the proactive support from
various Governments who have injected liquidity into banking and manufacturing
sectors. The stimulus packages announced by the various countries to prop up
economic growth and generate employment opportunities helped in the quick
recovery of the economy. The recovery in the global economy is well under way
and the predictions are that one can expect a positive growth of 3% to 4% in
2010-11. Many emerging countries have experienced the availability of cheap foreign
funds. The revision in expected global growth rates by various monetary
agencies supported by the increase in capital inflows and the strong rebound in
global trade shows that the global economy has rebounded faster than expected.
Mature economies
like US, Europe and
INDIAN MANUFACTURING SECTOR
Indian
manufacturing performed well in the global recession period by registering a
positive growth of 6% to 7%. The GDP growth in
The down turn in
the global market made Indian companies to focus on the domestic market and
re-engineer their production process which enabled them to be competitive. Due
to cash inflows from global investors, the Indian manufacturing sector has
access to capital at low cost. This has encouraged various Indian companies to
look for growth opportunities both within and outside
FINANCIAL PERFORMANCE AND INTERNAL CONTROLS
During fiscal year
2009-10, the Company achieved new peaks in sales volume, revenues, margins and
profits. With a view to achieve better results, the Company is focussing on
value added products: profiles, engineering components, subassemblies for
railway, infrastructure sector projects. Due to aggressive marketing efforts,
aided by market growth, Subject increased the sales volume from 97,000 metric
tonnes to 1,33,473 metric tonnes, an increase of 37.60%. This helped the
Company to achieve its highest ever sales turnover at Rs.8611.400 millions
against Rs.7305.100 millions in the previous year. With its financial planning
and tight control on account receivables, the Company is able to keep its
financing cost low. The prudent finance management by the Company also helped
to reduce the interest rates on working capital and term lending.
The long-term debt
to equity ratio was brought down to 0.11 from previous year’s figure of 0.17.
With prudent product planning, cost control, reduced operating costs and
optimum inventory controls, the Company is able to increase profit before tax
by 265 basis points at 10.73 % on the net turnover as against 8.08 % for the
previous year.
The Company’s
strong financial and operational performance during 2009-10 and the optimistic
outlook about the Company’s continued growth in the years to come enabled the
Board to declare a dividend of 25% to its equity shareholders.
OUTLOOK
The country is
expected to have a GDP growth of 8% to 9% in this year with focus on
infrastructures and industrial production. Subject’s customers are in
infrastructure and in the manufacturing sectors like automobile, railways and
buildings. These segments are in growth phase. With diverse product range and established
market, Subject has bright prospects for growth during this year. Subject is
optimistic that it will have continuous and sustainable growth in the years to
come.
FIXED ASSETS
·
·
Roads
·
Buildings
·
Plant and Machinery
·
Factory Equipments
·
Office Equipments
·
Computers
·
Furniture and Fittings
·
Vehicles
·
Computer Accessories
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30.06.2011
(Rs.
in millions)
|
|
Standalone |
||
|
Particulars |
Quartered Ended |
Year Ended |
|
|
|
30.06.2011 (Unaudited) |
30.06.2010 (Unaudited) |
31.03.2011 (Audited) |
|
1. Sales including processing charges |
3007.473 |
2842.964 |
12152.338 |
|
Less : Excise Duty |
262.459 |
250.809 |
1060.689 |
|
Less : Sales Tax / VAT |
90.862 |
89.510 |
370.709 |
|
Net Sales and processing charges |
2654.152 |
2502.645 |
10720.940 |
|
|
|
|
|
|
2. Expenditure |
|
|
|
|
a Increase / decrease in stock in trade and work in progress |
(2.886) |
157.304 |
105.023 |
|
b Consumption of Raw Material |
1947.373 |
1692.983 |
7754.782 |
|
c Employees Cost |
88.856 |
67.816 |
319.493 |
|
d Depreciation |
31.875 |
26.923 |
111.551 |
|
e Other Expenditure |
286.375 |
264.301 |
1210.850 |
|
f Total |
2351.593 |
2209.327 |
9501.699 |
|
Profit from Operations before Depreciation, Other Income, Interest
& Taxes ( E B I D T) |
334.434 |
320.241 |
1330.792 |
|
|
|
|
|
|
3. Profit from Operations before Other
Income, Interest & Taxes ( 1 - 2 ) |
302.559 |
293.318 |
1219.241 |
|
4. Other Income |
2.429 |
1.193 |
10.617 |
|
5. Profit before Interest & Taxes ( 3
+ 4 ) |
304.988 |
294.511 |
1229.858 |
|
6. Interest |
26.461 |
32.600 |
102.889 |
|
7. Profit from ordinary activities before
Tax ( 5 - 6 ) |
278.527 |
261.911 |
1126.969 |
|
8. Tax expense |
|
|
|
|
a Deferred Tax Liability |
7.700 |
19.261 |
57.783 |
|
b Income Tax |
92.000 |
78.000 |
374.561 |
|
Total Tax |
99.700 |
97.261 |
432.344 |
|
9. Profit from ordinary activities after
Tax before Minority Interest ( 7 - 8 ) |
178.827 |
164.650 |
694.625 |
|
10. Minority Interest |
-- |
-- |
-- |
|
11. Net Profit for the period after
Minority Interest (9 - 10) |
178.827 |
164.650 |
694.625 |
|
12. Cash Profit |
218.402 |
212.003 |
868.646 |
|
13. Paid up Equity Share Capital (Face value
of Rs.5/-per equity share) |
610.120 |
610.120 |
610.120 |
|
14. Reserves excluding revaluation reserves |
-- |
-- |
1620.962 |
|
15. Basic Earnings per Share (not annualized) |
1.47 |
1.35 |
5.69 |
|
16. Basic Cash Earnings per Rs. 5/- Share (not
annualized) |
1.79 |
1.74 |
7.12 |
|
17. Public Shareholding |
|
|
|
|
- Number of Shares |
74275187 |
74964934 |
74275187 |
|
- Percentage of Shareholding |
60.87 |
61.43 |
60.87 |
|
18. Promoter & Promoter group Shareholding |
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
- Number of Shares |
12650000 |
10650000 |
10650000 |
|
- Percentage of Shares (as a % of the total shareholding of promoters
& promoter group) |
26.49 |
22.63 |
22.30 |
|
- Percentage of Shares (as a % of the total share capital of the
company) |
10.37 |
8.73 |
8.73 |
|
b) Non - Encumbered |
|
|
|
|
- Number of Shares |
35098813 |
36409066 |
37098813 |
|
- Percentage of Shares (as a % of the total shareholding of promoters
& promoter group) |
73.51 |
77.37 |
77.70 |
|
- Percentage of Shares (as a % of the total share capital of the
company) |
28.76 |
29.84 |
30.40 |
Notes:
·
The above Unaudited Financial Results as reviewed
by the Audit Committee were taken on record by the Board of Directors in their
meeting held on 20.07.2011.
The statutory auditors will be conducting a Limited Review of the above
standalone financial results for the quarter ended 30th June 2011.
·
The above Unaudited consolidated figures for the
quarter ended 30.06.2011 includes the financial results of its subsidiary, PennarEngineering Building
Systems Limited, which has been approved by their board.
·
The company is engaged in the manufacture of
various steel products which is its Primary Segment which in the context of Accounting Standard 17 is
considered as a single segment.
·
Previous quarter / year numbers have been regrouped
or rearranged, wherever necessary.
·
Number of investor complaints for the quarter ended
June 30,2011:-
Beginning - 2, Received - 0, Disposed off - 2, Pending - 0
WEB DETAILS
BUSINESS DESCRIPTION
Subject is an India-based company. It is engaged in manufacturing of steel products, such as Cold Rolled Steel Strips (CRSS) and Cold Formed Metal Profiles. Its heavy engineering products division manufactures floors, side walls, roofs, end walls and doors, as well as under-frame parts for railway wagons and coaches. Its infrastructure division manufactures building products, which include purlins, roofing sheets and deck plates; road safety systems, which include crash barriers for road safety; fabricated products, such as fabrication of heavy structures for industrial buildings, conveyors, racking systems and boilers. Its building and construction division is engaged in the design, manufacture, supply and installation of pre-engineered steel buildings and building components for industries, warehouses, commercial centres, multi-storied buildings, aircraft hangars and stadiums. As of March 31, 2010, its subsidiary was Pennar Engineering Building Systems Limited. For the nine months ended 31 December 2010, Subject’s revenues totaled to Rs.11.59B. Net income totaled to Rs.718.8M. Results are not comparable as the prior consolidated financials are not reported by the Company. Subject is an India based Company engaged in the manufacture of steel products, such as cold rolled steel strips (CRSS), building products and cold formed metal profiles.
BOARD OF DIRECTORS
Mr. Nrupender Rao
Shri. Nrupender Rao is an Executive Chairman of the Board of
subject. Since January 30, 2009. He was Executive Vice Chairman of the Board,
of Company. He has a Bachelor of Technology from Indian Institutes of
Technology Kharagpur, Master of Science, Operations Research and Industrial
Engineering from
Education
MS Operations Research,
B Technology, Indian Institute of Technology, Kharagpur
Mr. C. Rangamani
Shri. C. Rangamani is an Independent Non-Executive Director
of subject. He is General Manager in United Insurance Company Limited (Retd.)
in finance, Insurance and General management. His list of companies in which
outside Directorship held as on July 16, 2008 are Sakthi Sugars Limited and
Sakthi Auto Components Limited.
Mr. Aditya Narsing
Rao
Shri. Aditya Rao is a Director - Projects, Director and
Corporate Planning Manager of subject. He has done his Bachelor of Science in
Engineering Management from
Education
BS Engineering Management,
Mr. P. Bhaskara Rao
Shri. P. Bhaskara Rao is Non-Executive Director of Subject.
He has experience in various fields of Management for the past few decades. His
list of Companies in which outside Directorship held as on July 16,2008 are
Pennar Aluminium Company Limited, O and S Ratna Aiuminium Fabticators Ft.
Limited, E-½lue Consulting Limited and STI India Limited.
Mr. Ch Anantha Reddy
Shri. Ch. Anantha Reddy is Executive Director of subject. He
has vast Experience in the Technologies of steel Industry for the past few
decades and Experience in various fields of management. He holds B.E
(Metallurgical), P.G.D.M.M.
PRESS RELEASES
PENNAR
ACHIEVES CONSOLIDATED SALES IN FY 11 OF Rs.13720 MILLION– GROWTH OF 54% OVER
LAST YEAR
The consolidated
gross sales for twelve months ended 31st March, 2011 were Rs.13728.000 millions
an increase of 54.2%. Gross profit (EBIDTA) was Rs.1495.000 millions, an
increase of 34.8 % and the net profit was Rs.755.00 millions, an increase of
51.8 % over last year. The consolidated annual basic EPS was Rs.6.19 per share
of Rs. 5/- each
Pennar’s
consolidated net profit for the quarter ended 31st March 2011 was Rs.207.00
millions, reflecting the Company’s highest ever profit in a Quarter, Gross
sales were Rs.3885.000 millions. The EBIDTA and PBT for the quarter were
Rs.405.000 millions and Rs.336.000 millions respectively. The consolidated
basic EPS for the quarter amounted to Rs.1.70 per share of Rs 5/- each.
The stand alone results for Pennar Industries for Quarter ended 31st
March 2011 and the comparison with the corresponding quarter for last year are
given below:
·
Sales for Q4 FY’11 Rs.3417.000 millions an increase of 31%
over Q4 FY’10.
·
Gross Profit (EBIDTA) for Q4 FY’11 Rs.350.000 millions an
increase of 10.9% over Q4 FY’10.
·
Net Profit for Q4 FY’11 Rs.191.000 millions an increase of
38.2 % over Q4 FY’10.
·
Basic EPS Rs.1.57 for the quarter and full year EPS of
Rs.5.82 per share of Rs.5
The expansion at Isnapur and Tarapur plants for putting up additional capacities for heavy engineering fabrication work, electro static precipitator electrodes and precision tubes for automobiles is progressing as per schedule.
Pennar’s subsidiary, Pennar Engineered Building Limited (PEBS) turned in
excellent performance in its first full year of operations with sales of
Rs.1690.000 millions, with gross profit of Rs.179.000 millions and net profit
of Rs.64.000 millions. The value of orders booked in the first fifteen months
from January 1st 2010 is over Rs.4000.000 millions. PEBS has developed many
prestigious customers including L and T, P and G, Thermax, Schneider Electric,
Dr Reddy’s, Ultratech, My Home Cements, NSL Group, HBL Group, ACCIL, Core Green
Sugars, CCCL, Shapoorji and Pallonji, and Triton Valves etc. The major sectors
being addressed are factories, warehouses, retail stores, steel plants, cement
plants, multi storied buildings, sports stadiums, aircraft hangers, etc.
PEBS factory at Sadashivpet (
PENNAR
INDUSTRIES REPORTS 9% RISE IN ITS Q1 NET PROFIT
India, July 21 -- Pennar Industries has reported results for its first quarter ended June 30, 2011The company's net profit for the quarter rose by 8.56% at Rs.178.800 millions as compared to Rs.164.700 millions for the quarter ended June 30, 2010. Its net sales has increased by 6.06% to Rs.2654.200 millions for the quarter from Rs.2502.600 millions for the corresponding quarter of the previous year. Pennar Industries is engaged in the manufacturing of Cold Rolled Steel Strips (CRSS) and value-added products under Cold Rolled Formed Sections (CRFS) like precision tubes, engineered components, road safety systems, parts of railway coaches and Electro Static Precipitators (ESP).ďż˝ Published by HT Syndication with permission from Accord Fintech.
BOARD
RECOMMENDS FINAL DIVIDEND
APPOINTMENT
OF DIRECTORS
PENNAR
INDUSTRIES APPOINTS DIRECTOR
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.44.13 |
|
|
1 |
Rs.72.05 |
|
Euro |
1 |
Rs.63.33 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
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.