MIRA
INFORM REPORT
|
Report Date : |
18.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
THERMAX LIMITED |
|
|
|
|
Registered
Office : |
D-13, MIDC
Industrial Arear, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
30.06.1980 |
|
|
|
|
Com. Reg. No.: |
11-022787 |
|
|
|
|
Paid-up Capital
: |
Rs. 238.300
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L29299MH1980PLC022787 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
PNET03854E PNET00017D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACT3910D |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Share are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturing of
Steam or other Vapour Generating Boilers, other Refrigerating or Freezing
Equipment and Ion Exchangers of the Polymerisation or Co-Polymerisation type. |
|
|
|
|
No. of Employees
: |
4464
(approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
|
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 420000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well
established and a reputed company having fine track. Financial position of the
company appears to be sound. Fundamentals are strong and healthy. 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.
INFORMATION DECLINED BY
The management non cooperative
LOCATIONS
|
Registered
Office/ Factory : |
D-13, MIDC
Industrial Area, |
|
Tel. No.: |
91-20-27475941-
42/ 66122100 |
|
Fax No.: |
91-20-27472049 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate
Office : |
Thermax House,
14, Mumbai – |
|
Tel. No.: |
91-20-66051200 / 25542122 |
|
Fax No.: |
91-20-25542242 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
D-1 Block, MIDC Industrial Area,
Chinchwad, Pune - 411 019, |
|
|
|
|
Factory 2 : |
Village Paudh, Mazgaon, Via Pategarga, Taluka Khalapur, District
Raigad – 410 206, |
|
|
|
|
Factory 3 : |
Plot No.21/1-2-3, GIDC Manjusar, Taluka - Savli, Dist.- Vadodara –
391775, |
|
|
|
|
Factory 4 : |
D-13, MIDC
Industrial Area, |
|
|
|
|
Factory 5 : |
Survey No-169,
Village Dhrub, Taluka Mundra, Mundra – 370 201, District Kutch, |
|
|
|
|
Overseas
Offices : |
·
Thermax
International Limited, ·
Thermax
(Rus) Limited, ·
Thermax
Europe Limited, ·
Thermax
Europe Limited, ·
ME
Engineering Limited, ·
Thermax
Inc., |
|
|
|
|
Branches : |
Located At: ·
Ahmedabad,
·
·
·
·
·
Kolkata,
·
Chennai,
Tamilnadu ·
·
Mumbai,
·
|
DIRECTORS
AS ON 31.03.2010
|
Name : |
Mr. A. R. Aga |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. A. M. Nalawade |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. P. D. Chansarkar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D. L. Chavan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. B. M. Desai |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. B F. Gagrat |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. G. K. Gureja |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N. D. Joshi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P. M.
Kulkarni |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. S. Marathe |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. P.
Pudumjee |
|
Designation : |
Director/Chair Person |
|
|
|
|
Name : |
Mr. R. V. Ramani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. H P Ranina |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P. K. Sen |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. J. Shaikhali |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. A. Shroff |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M.S. Unnikrishnan |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. G. Trivedi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Anu Aga |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Raghunath A. Mashelkar |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Valentin Von Massow |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Tapan Mitra |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Pheroz Pudumjee |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Manu Seth |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Jairam Varadaraj |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. M. M.
Nalavade |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Sunil Lalai |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Amitabh
Mukhopadhyay |
|
Designation : |
Executive Vice President and Chief Financial Officer |
|
|
|
|
Name : |
Mr. Gopal Mahadevan |
|
Designation : |
Executive Vice President and Chief Executive Officer |
|
|
|
EXECUTIVE COUNCIL :
|
|
|
|
|
|
Name : |
Mr. Ravinder
Advani |
|
Designation : |
Executive Vice
President – ESD |
|
Qualification
: |
B. E. (Hons)
(Mech.), PGDBM |
|
Date of
Appointment : |
01.05.2000 |
|
Previous Employment
: |
Thermax Babcock
and Wilcox Limtied – General Marketing Manager. |
|
|
|
|
Name : |
Mr. Shishir
Joshipura |
|
Designation : |
Executive Vice
President - PHD |
|
Qualification
: |
B. E. (Mech.) |
|
Date of
Appointment : |
01.03.2003 |
|
Previous Employment
: |
Thermax Energy
Performance Services Limited – CEO |
|
|
|
|
Name : |
Mr. Prakash
Kulkarni |
|
Designation : |
Managing Director
|
|
Qualification
: |
B. E. (Mech.) |
|
Date of
Appointment : |
01.07.1999 |
|
Previous Employment
: |
Thermax Babcock
and Wilcox Limited – Managing Director |
|
|
|
|
Name : |
Mr. Amitabha
Mukhopadhyay |
|
Designation : |
Executive Vice
President and CFO |
|
Qualification
: |
B. Sc. (Hons.),
ACA |
|
Date of
Appointment : |
24.10.2001 |
|
Previous Employment
: |
IFB Industries
Limited – Vice President Finance |
|
|
|
|
Name : |
Mr. M. S.
Unnikrishnan |
|
Designation : |
Executive Vice
President |
|
Qualification
: |
B. E. (Mech.) |
|
Date of
Appointment : |
01.08.1997 |
|
Previous Employment
: |
Terrazzo Limited
– Assistance General Manager |
|
|
|
|
Name : |
Dr. R.R. Sonde |
|
Designation : |
Executive Vice
President |
|
|
|
|
Name : |
Mr. Sudhir Sohoni
|
|
Designation : |
Executive Vice
President |
|
Qualification
: |
M A (PM and IR) |
|
Date of
Appointment : |
01.03.2006 |
|
Previous Employment
: |
CEAT Limited –
Vice President – Human Resource ( |
|
|
|
|
Name : |
Mr. R V Ramani |
|
Designation : |
Divisional Head |
|
Qualification
: |
B. E. (Mech.) |
|
Date of
Appointment : |
01.10.1974 |
|
Previous Employment
: |
Indowse
Engineering Private Limited – Sales Engineer |
|
|
|
|
Name : |
Mr. V J Shah |
|
Designation : |
Divisional Head |
|
Qualification
: |
B. Tech. (Chem.
Engg.), MBM |
|
Date of Appointment
: |
15.05.1988 |
|
Previous Employment
: |
Rieco Industries
Limited – Senior Manager |
|
|
|
|
Name : |
Mr. Sharad Gangal |
|
Designation : |
Key Executive |
|
|
|
|
Name : |
Mr. Hemant
Mohgaonkar |
|
Designation : |
Key Executive |
|
|
|
|
Name : |
Mr. s.
Ramachandran |
|
Designation : |
Key Executive |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.03.2011)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
9,520,805 |
7.99 |
|
|
64,328,500 |
53.99 |
|
|
6,000 |
0.01 |
|
|
6,000 |
0.01 |
|
|
73,855,305 |
61.98 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
73,855,305 |
61.98 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
13,430,470 |
11.27 |
|
|
3,850,450 |
3.23 |
|
|
10,751,342 |
9.02 |
|
|
28,032,262 |
23.53 |
|
|
|
|
|
|
2,132,196 |
1.79 |
|
|
|
|
|
|
7,379,967 |
6.19 |
|
|
7,353,809 |
6.17 |
|
|
402,761 |
0.34 |
|
|
170,580 |
0.14 |
|
|
10,553 |
0.01 |
|
|
80,795 |
0.07 |
|
|
140,833 |
0.12 |
|
|
17,268,733 |
14.49 |
|
Total Public shareholding (B) |
45,300,995 |
38.02 |
|
Total (A)+(B) |
119,156,300 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
119,156,300 |
- |
(1)
Indian
Individuals
/ Hindu Undivided Family
Directors/Promoters
& their Relatives & FriendsBUSINESS DETAILS
|
Line of Business : |
Manufacturing of Steam
or other Vapour Generating Boilers, other Refrigerating or Freezing Equipment
and Ion Exchangers of the Polymerisation or Co-Polymerisation Type. |
||||||||
|
|
|
||||||||
|
Products : |
· Other Refrigerating or Freezing Equipment · Ion Exchangers of the Polymerisation or Co-Polymerisation type
|
(PRODUCTION STATUS AS ON 31.03.2010)
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
|
|
|
|
|
Energy Products and Systems a.
Boilers Capacity upto 30MT / Chillers b.
Boilers Capacity above 30MT c.
Heaters d.
Power Plants |
Nos. MT Mn. Kg Cal MW |
3441 22410 -- -- |
1881 4379 67 40 |
|
Environmental Products and Systems : |
|
|
|
|
a. Air Pollution Control Plants and Systems |
Nos. |
-- |
834 |
|
b. Water and Waste Treatment Plants |
Nos. |
-- |
1076 |
|
c. Ion Exchange Resins and Chemicals |
MT |
36161 |
18343 |
Note: Installed capacity has been certified by
the management and has been accepted by the Auditors without verification, this
being a technical matter.
GENERAL INFORMATION
|
No. of Employees : |
4464
(approximately) |
|
|
|
|
Bankers : |
·
Bank of · Canara Bank · Citibank N.A. · Corporation Bank · ICICI Bank Limited ·
Union Bank of ·
State Bank of ·
The Hongkong and · Banking Corporation Limited · Standard Chartered Bank ·
Bank of |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
B. K. Khare and
Company Chartered
Accountants |
|
Address : |
706/707, Sharda
Chambers, New Marine Lines, Mumbai – 400020, |
|
|
|
|
Holding Company
: |
·
RDA Holding and Trading
Private Limited. |
|
|
|
|
Joint Venture : |
·
Thermax
SPX Energy Technologies Limited |
|
|
|
|
Domestic
Subsidiaries Company : |
·
Thermax Sustainable Energy Solutions
Limited ·
Thermax Engineering Construction
Company Limited ·
Thermax Instrumentation Limited ·
Thermax Onsite Energy Solutions
Limited |
|
|
|
|
Overseas Subsidiary
Company : |
·
Thermax International Limited, ·
Thermax Europe Limited, ·
Thermax Inc., ·
Thermax do Brasil Energia e ·
Thermax Hong Kong Limited, ·
Thermax ( |
CAPITAL STRUCTURE
As On 31.03.2010
Authorized Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
375000000 |
Equity Shares |
Rs.2/- each |
Rs.750.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
119156300 |
Equity Shares (Of the above 6,43,28,500 shares are held by holding company, RDA
Holding and Trading Private Limited.) |
Rs.2/- each |
Rs.238.300 millions |
As On 21.07.2010
Authorized Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5000000000 |
Equity Shares |
Rs.2/- each |
Rs.10000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
119156300 |
Equity Shares (Of the above 6,43,28,500 shares are held by holding company, RDA
Holding and Trading Private Limited.) |
Rs.2/- each |
Rs.238.300 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 |
238.300 |
238.300 |
238.300 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
10269.600 |
9380.600 |
7123.100 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
10507.900 |
9618.900 |
7361.400 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
436.300 |
362.100 |
310.700 |
|
|
|
|
|
|
|
|
TOTAL |
10944.200 |
9981.000 |
7672.100 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4938.500 |
4399.100 |
2786.000 |
|
|
Capital work-in-progress |
111.700 |
176.500 |
475.900 |
|
|
|
|
|
|
|
|
INVESTMENT |
3781.600 |
1764.500 |
5797.400 |
|
|
DEFERREX TAX ASSETS |
264.200 |
181.600 |
159.900 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories
|
2463.600 |
2664.200 |
1995.200 |
|
|
Contracts in Progress
|
2761.700 |
2268.600 |
558.100 |
|
|
Sundry Debtors
|
7470.500 |
5407.800 |
5053.100 |
|
|
Cash & Bank Balances
|
6055.500 |
3407.800 |
279.100 |
|
|
Other Current Assets
|
525.100 |
387.000 |
303.500 |
|
|
Loans & Advances
|
3014.200 |
2021.800 |
1904.700 |
|
Total
Current Assets |
22290.600
|
16157.200 |
10093.700 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
7298.800 |
3971.500 |
4294.500 |
|
|
Other Current Liabilities
|
11495.300 |
7218.800 |
5816.300 |
|
|
Contracts in Progress
|
673.800 |
558.500 |
165.200 |
|
|
Provisions
|
974.500 |
949.100 |
1364.800 |
|
Total
Current Liabilities |
20442.400
|
12697.900
|
11640.800
|
|
|
Net Current Assets |
1848.200
|
3459.300 |
(1547.100) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
10944.200 |
9981.000 |
7672.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales and Other Income |
32352.300 |
33031.700 |
32459.400 |
|
|
|
TOTAL (A) |
32352.300 |
33031.700 |
32459.400 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials |
20584.700 |
20976.300 |
21803.900 |
|
|
|
Personnel |
2927.100 |
2546.400 |
2410.600 |
|
|
|
Excise Duty |
24.400 |
23.500 |
23.500 |
|
|
|
Other Expenditure |
4477.300 |
4953.200 |
12.700 |
|
|
|
Extra-ordinary Items of Expenses/ (Income) |
1148.600 |
(13.600) |
(21.000) |
|
|
|
TOTAL (B) |
29162.100 |
28485.800 |
24229.700 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3190.200 |
4545.900 |
8229.700 |
|
|
|
|
|
|
|
|
|
Less |
INTERESTS (D) |
15.200 |
32.700 |
3707.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3175.000 |
4513.200 |
4521.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
404.200 |
321.100 |
218.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2770.800 |
4192.100 |
4303.800 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1356.400 |
1319.100 |
1496.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1414.400 |
2873.000 |
2807.800 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
5480.000 |
3592.000 |
-- |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
142.000 |
288.000 |
-- |
|
|
|
Proposed Equity Dividend |
595.800 |
595.800 |
-- |
|
|
|
Tax on Dividend |
99.000 |
101.200 |
-- |
|
|
BALANCE CARRIED
TO THE B/S |
6057.600 |
5480.000 |
-- |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods on FOB |
7008.600 |
6275.700 |
3434.400 |
|
|
|
Other Earnings |
126.300 |
170.300 |
90.400 |
|
|
TOTAL EARNINGS |
7134.900 |
6446.000 |
3524.800 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1893.600 |
1632.100 |
2036.400 |
|
|
|
Stores & Spares |
1001.700 |
1024.200 |
985.900 |
|
|
|
Consumable |
27.900 |
53.600 |
31.800 |
|
|
|
Capital Goods |
230.600 |
356.400 |
218.500 |
|
|
TOTAL IMPORTS |
3153.800 |
3066.300 |
3272.600 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Before
Extraordinary Items |
21.51 |
24.00 |
|
|
|
|
- After
Extraordinary Items |
11.87 |
24.11 |
23.56 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
31.12.2010 3rd
Quarter |
31.03.2011 4th
Quarter |
|
Net Sales |
7897.820 |
10916.210 |
12411.690 |
17713.350 |
|
Total Expenditure |
6938.140 |
9630.490 |
10947.530 |
15762.040 |
|
PBIDT (Excl OI) |
959.680 |
1285.720 |
1464.160 |
1951.310 |
|
Other Income |
139.850 |
133.290 |
116.850 |
132.580 |
|
Operating Profit |
1099.530 |
1419.010 |
1581.010 |
2083.890 |
|
Interest |
5.590 |
4.550 |
2.040 |
9.660 |
|
PBDT |
1093.940 |
1414.470 |
1578.970 |
2074.240 |
|
Depreciation |
105.840 |
104.970 |
105.530 |
115.570 |
|
Profit Before Tax |
988.090 |
1309.500 |
1473.440 |
1958.670 |
|
Tax |
326.400 |
414.230 |
471.240 |
693.640 |
|
Profit After Tax |
661.690 |
895.270 |
1002.200 |
1265.030 |
|
Net Profit |
661.690 |
895.270 |
1002.20 |
1265.030 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
4.37
|
8.70
|
8.65
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.18
|
20.39
|
33.42
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.44
|
0.58
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.95
|
1.32
|
1.58
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.09
|
1.27
|
0.87
|
LOCAL AGENCY FURTHER INFORMATION
THE DETAILS OF
SUNDRY CREDITORS:
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
7298.800 |
3971.500 |
4294.500 |
HISTORY
Subject (Thermax) came to business in 30th June of the year
1980, headquartered in Pune, India, Company provides sustainable solutions in
Energy and Environment by the way of standard products in the 6 areas of
business, such as Boilers and Heaters, Absorption Cooling, Water and Waste
Solutions, Chemicals for Energy and Environment applications, Power and
Cogeneration systems and Air Pollution and Purification Thermal's international
operations are spread over South East Asia, Middle East, Africa, Russia, UK and
the US.
Tulsi Fine Chemical Industries Private Limited and Kailas Castings Private
Limited were merged with the company with effective from 1st July of the year
1982. As at 01.07.1989, Thermax became a deemed public company. In the year
1991, T. K. Steel Industries Limited was merged with the company. During the
year 1994, the company's status was changed from deemed public company public
company. The process heat division came out with a new boiler design in the
year 1995, an oil fired smoke boiler, shell Max and Combiac, a boiler specially
designed to burn agro fuels like rice and groundnut husk, saw dust, coffee
waste etc. also in the same year of 1995, a Memorandum of Understanding (MoU)
was signed with Bharat Shell for thermic fluid, therma, for heat transfer
system. The process heat projects division received an order from PT South
Pacific Viscose, an Indonesian Company for supply of 3 boilers of 22.5 tonnes
per hour of steam. Energy System Division of the company was born in the year
1996 by the way of merger of two division, one in the energy area and the other
in heat recovery area to pool the expertise with a view to addressing the heat
recovery business and also in the same year launched fine circulation fluidised
bed combustion boiler. The MoU was signed with Bharat Shell and the Process
Heat Division of the company.
During the year 1997, the company had received the AD-Merkblatt certification
for the entire manufacturing unit at Chinchwad. An electronic network called
Thermnet linking all establishments of the company in the country was
introduced during the year same year of 1997 and also Thermax had entered into
a joint venture with Fuji Electric Company of
With the investment of US $ 200,000, the company had incorporated a wholly
owned overseas (WOS) subsidiary in
As at February 2008, the company had signed a technical transfer license
agreement with US-based Babcock and Wilcox Power Generation Group (B and W) to
engineer, manufacture and sell sub critical B and W radiant utility boilers in
Company is planning to set up a new Rs.5-billion manufacturing plant for large
boilers of capacity 100 mw to 800 mw for power plants. In the first phase, the
company will have a capacity to produce sub-critical boilers with total
capacity of 1,500 mw per annum, which would entail an investment of Rs.3
billion. In the next phase the company will scale up the capacity of the
boilers of equivalent to 3,000 mw with an additional investment of Rs.2
billion.
PERFORMANCE:
The total order booking for the year was Rs.57940.000
Millions as against Rs.35570.000 Millions, last year. The company completed the
year with a record order book of Rs.53810.000 Millions. The year 2009-10 began
with a lower order book, owing to the global financial crisis, resulting in the
total income being marginally lower at Rs.32352.000 Millions, as compared to
the previous year. Profit before tax and extraordinary items was Rs.3919.000
Millions compared to Rs.4179.000 Millions in the previous year. Profit, after
tax and extraordinary items, was significantly lower at Rs.1414.000 Millions
compared to Rs.2873.00 Millions in the previous year, owing to a one-time
extraordinary expense of Rs.1149.00 Millions (net of tax) towards a business
settlement. Earnings per share (EPS) dropped to Rs.118.700 Millions from
Rs.241.100 Millions in 2008-09.
During the year, exports – including deemed exports – were
lower at Rs.6565. 000 Millions from Rs.9123.000 Millions last year, a decline
of 28% due to the continued financial turmoil in the global market.
COLLABORATION WITH GLOBAL TECHNOLOGY MAJORS
The company made significant moves that will help it to
benefit from the rapid growth
happening in the country's power sector.
It signed two joint venture
agreements - with SPX Netherlands BV (SPX) for air pollution
control equipment to help power plants meet stringent
emission norms and
also improve their thermal
efficiencies; and with Babcock
and Wilcox (B and W), USA for
manufacturing supercritical boilers. Details of
the joint venture UV) company
formed with SPX is provided
in the 'Subsidiaries' section of this report.
With Babcock and Wilcox Power Generation Group, Inc. (B
and W PGG), a
global leader in power generation
industry, Thermax has entered into an
alliance to form a
strategic joint venture to engineer,
manufacture and supply supercritical boilers
for the Indian power sector. The
JV will also manufacture subcritical boilers over 300
megawatts (MW) in size.
Thermax will own 51% share of the joint venture while B and
This technology will allow the new JV to contribute to
efficient power generation in the
ultra mega thermal plants planned to meet
the massive energy requirements
of the country. Utility boilers above 660 MW
generally fall under the
supercritical category. Operating at higher pressures than those of subcritical boilers, they increase
efficiency and produce more energy from the same amount of fuel.
The new joint venture is being established at a critical
time when
DOMESTIC SUBSIDIARIES
JOINT VENTURE
Thermax
SPX Energy Technologies Limited
The company has entered into a joint venture with
The company will
operate on the basis of a license agreement with Balcke-Durr GmbH,
In the initial
phase, it shall cover air
pollution control systems, electrostatic precipitators (ESPs)
for high ash coalbased power plants, bag filters and
equipment for reducing SOx-NOx emissions, and
rotary heat exchangers.
The company has secured its first order for a regenerative
air-preheater (RAPH). This order
involves design, engineering, manufacturing, supply,
supervision, installation,
erection and commissioning of four RAPH units for two 750 TPH boilers (two RAPH
for each boiler) for a oil
refinery. The company
has been actively participating in
a number of
bids for electrostatic
precipitators, regenerative
air-preheaters, air-cooled
condensers and such balance-of-plant equipment to build a strong
foundation for future business.
The company has infused Rs.102.000 Millions as an
initial contribution towards the share
capital of the joint venture.
WHOLLY
OWNED:
Thermax
Engineering Construction Company Limited
Thermax Engineering Construction Company Limited, (TECC)
undertakes and executes engineering construction projects mainly for the Boiler and Heater
(B and H) business unit of the company.
In 2009-10, this
subsidiary earned a total income of Rs.968.000 Millions and profit
after tax of Rs.30.000 Millions
compared to Rs.999.000 Millions and
Rs.15.000 Millions respectively, in the previous financial year. The
marginal decline in income was due to lower order balance as on 31.03.2009,
resulting from the economic slowdown and projects being put on
hold by customers during the
financial year 2008-09. Despite
the lower income, the
subsidiary's profit improved as
a result of better cost
management. However, the profitability of the
company may be impacted in the coming
year due to enhanced demand for construction vendors
and skilled labour from the power
sector.
The company successfully completed the assembly
of a second FM boiler weighing
585 tons at the Mundra port facility, for export. Erection of three spent wash
fired units and a municipal solid waste
(MSW) fired boiler are the other highlights of the year.
With the company's year end order balance being significant,
the focus for the coming year will be on
the execution of existing orders. The company is gearing up to
face the challenge of recruitment along with
training and development of
skilled personnel for projects.
Thermax
Instrumentation Limited:
Thermax
Instrumentation Limited (TIL) focuses its
operations on installation
and commissioning of power and cogeneration plants including civil construction.
The company earned a total income of Rs.1291.000 Millions
and profit after tax of Rs.20.000 Millions compared to
Rs.1032.000 Millions and Rs.4.000
Millions respectively, last year. Increase in business volume has helped the
company achieve a better performance as compared to last year.
The company has secured a breakthrough order in larger
capacity projects in the Independent Power Producers (IPP) range.
The subsidiary successfully
commissioned eight power plants
comprising ten units aggregating to 212.5 MW -the largest capacity commissioned in any year so far.
With the country
focusing on dramatically improving its
power generation capacity, and with Thermax's foray into utility
projects, the outlook for the company is
positive.
Thermax
Sustainable Energy Solutions Limited:
With the looming threat of climate change and the need
to reduce carbon emission, Thermax Sustainable Energy Solutions Limited
(TSES) is entering into businesses
related to clean development mechanism (CDM). An amount of Rs.40.000 Millions was infused towards the
share capital of the company to support its foray into this business area.
TSES has developed CDM projects, which
are now under validation. In the coming financial year, these
projects are expected to be registered with United Nations Framework
Convention on Climate Change
(UNFCCC).
The company has earned an income of Rs.6.960 Millions during
the year against Rs.1.420 Millions in
the previous year. This comprised mainly reimbursement of expenses for support rendered to the
parent company. It has incurred a net loss of Rs.11.730 Millions compared to
Rs.1.280 Millions loss in the previous year.
The loss was predominantly due to higher outlay of
expenditure, which would help ramp up the
operations when the expected approval
from UNFCCC is received.
Thermax
Onsite Energy Solutions Limited:
Thermax Onsite Energy Solutions Limited
(TOESL) was incorporated in September 2009. This subsidiary, focusing
on the area of green energy from biomass and
other alternate sources, plans to
develop utility delivery business to
customer on unit-consumption
basis. For this, the
company installs its own
equipment and peripherals at customer site, operates and maintains
these, and organises required
inputs like fuel, manpower
and consumables at its own cost.
This business mainly
aims to capture the major share
of revenue-side spending of
clients by supplying steam, heat or chilled water on a unit
basis.
The subsidiary has signed a project for a tenure of seven
years to supply heat to a
leading paint manufacturing company. The company is already offering services of
steam supply to a joint venture in textile knit wear business. With several
industrial units identifying the
benefits of savings in capital expenditure and freedom from having to manage operation and maintenance of
utilities, the outlook for the business looks promising.
The Board of the company has approved an overall investment
of Rs.60.000 Millions towards the equity capital of TOESL for this new business
initiative.
OVERSEAS
SUBSIDIARIES
Wholly
Owned
Thermax
Inc.,
This step-down
subsidiary is the front-end value chain for the company s cooling and chemical businesses in the
The profit after tax of the subsidiary increased
significantly to USD 0.96 million (USD
0.1 million, previous year) on a marginally higher top line of USD 14.9
million. Better financial results were achieved in a depressed
market environment with sharper focus on speciality
resins, customised solutions and
cost control.
The external economic environment continues to be
challenging with respect to growth, investment and availability of
credit. To maintain margins for the chemical
business, the efforts to focus on product mix
and pricing discipline will
continue.
The cooling business
segment has started growing with
the commercial execution of
sourcing/distribution
agreement with Trane
(division of Ingersoll Rand).
Marketing initiatives are in place to
transform to a 'market share' player in the near future.
Therniax
Europe Limited, UK.:
The year witnessed a significant slow down in business
activities in all European
economies due to credit crunch. The company closed the financial
year with a turnover of GBP 3.8 million
(USD 5.7 million) as compared to GBP
5.6 million (USD 8.5 million) in the previous year. The profit
after tax was GBP
0.43 million (USD 0.65 million) against
the previous year profit
of GBP 0.55
million (USD 0.83 million).
In comparison to the
previous year the profitability has increased to 11.3% from 9.8%, owing to better
product mix. Although the enquiry levels for
chillers remained constant,
conversion into orders was a challenge.
The year also saw a
45% increase in service revenues
over the previous year. Key highlights of the year
included supply of a 3 MW steam chiller to
With challenging conditions continuing and aggressive
strategies adopted by competition, there is pressure on pricing. The company
plans to identify standard market
segments and improve profitability through
operational efficiencies. Service business would continue to be the
thrust area for the company to reduce volatility in the business.
With the
European economies yet to recover
from the effects of
global financial crisis the company aims to maintain its performance.
Thermax
Hong Kong Limited,
Thermax Hong Kong Limited (THKL) was formed in December 2003
as part of the strategy to enter the Chinese absorption cooling market. It had
no revenue stream planned
for the financial year. The
company was slated for
the 'dormancy status' after collection of debts and completion of
committed contractual
transactions. This being achieved,
the company has
been registered for a dormancy
status in March 2010 under the existing
company laws of
The absorption cooling
business of the company is now
routed through Thermax (
To support and meet administrative expenses like audit
fees, statutory filings, etc. during the dormancy stage, the Board
of the
company has invested USD 6,500
towards equity share capital.
Thermax
(
Thermax (
For the export market, it has geared up to compliment the
company's Indian manufacturing base by
acquiring all the necessary
certifications for supplying chillers to the European and American markets
which are poised for growth in the coming years. The
company has already commenced its first supplies to these markets during the
year.
Thermax
International Limited,
The company has invested USD 25,000 in the share capital of
this subsidiary to meet operational expenses. The total investment
in this subsidiary towards share
capital now stands at USD 3.2
million. The company is a parent
to the step down subsidiary, Thermax Inc.,
Thermax
do Brasil - Energia a Equipamentos Ltda.,
During the fiscal year the subsidiary earned an income of
BRL 0.12 million (USD 0.07
million) and made a profit after tax of BRL 0.04 million
(USD 0.02 million).
At present, steps are
being evaluated towards putting the affairs
of the company to hibernation.
AWARDS AND RECOGNITION:
Mrs. Anu Aga, Director of the company was honoured with the Padma Shri by the President of India. The Award is in recognition of her distinguished service in the field of social work.
Thermax won the Enertia Award 2009 for setting up the
state-of-the-art manufacturing facility for boilers and allied equipment at
Savli,
The company's manufacturing plants at Chinchwad won awards for safety performance and environment management from the Greentech Foundation. The plants of its Boiler and Heater business also won the Golden Peacock
Award for Occupational Health and Safety from the
Thermax also won the Imai Award for Operational Excellence for 'Exemplary Employee Engagement in Total Productive Maintenance' from the Kaizen Institute in February 2010.
At CII's (Western Region) HR Awards for Excellence 2008, the company received a commendation award for 'Strong commitment to HR Excellence.'
FINANCE, ACCOUNTS AND SYSTEMS:
As on 31.03.2010, with the increased order booking, the company's cash and cash equivalents stood at
Rs.9160.000 Millions. After an investment of Rs.880.000 Millions in fixed
assets, the company's net cash inflow was Rs.4520.000 Millions. Its net working
capital was negative at Rs.3806.000 Millions as against a positive Rs.171.000 Millions in the previous
year.
The management of the company
would continue to focus on prudent working capital management and cash flows.
The company's funds are invested in debt funds
and fixed deposits with reputed banks. It has not traded or engaged in
any derivative instruments or options during the year.
ICRA Limited has assigned the company LAA+ and Al + rating for long term
and short term bank limits, respectively.
MANAGEMENT
DISCUSSION AND ANALYSIS
OVERVIEW:
Economies, worldwide, are recovering from the severe
downturn of 2008 that continued into 2009. Many countries are showing signs of
small but positive growth due to
domestic consumption and
a marginal improvement
in international trade. The
recovery is uneven and the business environment for sustained growth is fragile.
Much of the economic rebound is due to the strong fiscal stimulus provided by the governments
of both developed and developing countries.
In developed economies,
increasing unemployment,
rising inflation and tightening credit
conditions have resulted
in subdued consumer
and investment demand. Government
plans to withdraw the financial stimulus
to control the ballooning fiscal deficit are met with concerns
about economic recovery losing
momentum. In the next couple
of years, at
least, the developed economies
are not expected to provide a strong impetus to
global growth.
Displaying
remarkable resilience in 2009-10,
The Union Budget 2010-11 indicates a positive outlook
for the Indian economy in the near term. The economic agenda
emphasises inclusive growth and development
of infrastructure in
both urban and
rural areas. Rs.1735520.000
Millions has been allotted for
infrastructure expansion, which accounts for
over 46% of the total
allocation. Budgetary allotment
to power, road transport, shipping, urban infrastructure
and railways will provide
the much needed
growth trajectory for the
manufacturing and infrastructure
related sectors.
In the recent past, averaging 4000 - 6000 MW a year,
While
constructively engaging with the international community
at the Copenhagen conference
on climate change, India
has pursued a
strong domestic agenda for
addressing the issue. The National Solar Mission with an
enabling policy framework
has been created with the
objective of generating 20,000
MW of solar power by 2022. This is
expected to be achieved
by creating favorable
conditions for solar
manufacturing capability, indigenous production and market leadership.
A proposal to
establish a National Clean Energy Fund for funding research and
innovative projects in clean energy technologies and a 61%
increased budget outlay for new and renewable energy sector, provide the
much needed support to companies in
related fields. Overall, the energy and environment sectors are poised to ride
the wave of positive growth in the coming years.
REVIEW
OF OPERATIONS:
During the fiscal
year 2009-10, the company witnessed
a decline in revenues, due to the lower order book of
the previous years. It generated a total income of Rs.32352.000 Millions, with
profit after tax at Rs.1414.000 Millions. Exports, including deemed exports,
represented 20.3% of the total income.
With the economic situation recovering, the order book of the company has improved and stands at Rs.53810.000
Millions on 31.03.2010.
The company's energy
business comprising Boiler
and Heater, Power,
and Cooling and Heating contributed to 75.6% of its income while
the environment business comprising Air Pollution Control, Chemicals
along with Water and Wastewater
Solutions generated 24.4%.
Industrial
growth, particularly in the
capital goods sector
remained subdued in the year 2008-09, affecting the order book and carry
forward of several manufacturing
companies. Due to economic
uncertainty, financial closure of
most projects were delayed and orders were either put on hold or were postponed
till the situation improved.
In 2009-10, with the improvement in the global economic
scenario, many of the projects on hold were awarded, but with
strict delivery schedules and lower
budgets. The innovation oriented projects initiated last fiscal have been progressing well, with
contributions from heating and cooling products supporting the company's
business.
Thermax Innovation Council, established last year and
chaired by Dr. R. A. Mashelkar is
providing guidance in nurturing an innovation ecosystem within the company's
business divisions.
The company positioned itself for robust growth in the Indian
power sector. It formed two joint venture partnerships with global majors in the areas of energy and
environment that are expected to support
the growth in power. Thermax also made
its entry in the utility space of independent power plants (IPP) by winning
a project order.
With the country's
dependence on coal fired power plants
for electricity generation,
reduction of carbon footprint remains a daunting challenge. For reducing emissions
and to counter the shortage of
fossil fuels, energy efficiency has become very relevant in power generation.
It is
envisaged that in the twelfth five year plan about 60% of the
100,000 MW capacity addition and about 90% of 102,000 MW
in the thirteenth plan would be based on
supercritical technology.
Supercritical
technology, with its ability to operate
at increasingly higher temperatures
and pressures is aiding the
improvements in energy efficiency in thermal power stations
worldwide. This technology offers much higher
efficiencies of 40-42% by raising the temperature and pressure
of steam in the boiler, thereby obtaining more energy
output from the same coal input.
This shift to supercritical technology is a specific
mitigation exercise of the Government as part of its climate change agenda.
With huge investments anticipated in the sectors of energy and
environment, these partnerships will help in supporting the government's
objectives of efficient technology
introductions and
establishment of indigenised production capabilities. These
sustainable models will
help arrest environmental degradation and counter the negative effects
of climate change.
Energy Segment Analysis:
In 2009-10, the company’s energy business income stood at 75.6% of the
total income.
The energy segment saw a decline in total income due to a lower order
book of the previous years for the domestic and export projects. With the
reduction in economic uncertainty and financial closure happening on many
projects, the company has secured a number of prestigious domestic and export
orders this year.
The new joint venture partnerships Thermax formed in 2009-10 will help
it to make a positive contribution in this area. In March 2010, the company
signed a joint venture agreement with its technology partner Babcock and Wilcox
of USA for supercritical boilers over 600 MW and for supercritical boilers
above 300 MW. The new joint venture cements the business relationship that
Thermax and Babcock and Wilcox have had over the last 20 years.
Similarly, in August 2009, the company formed a new joint venture,
Thermax SPX Energy Technologies Limited with US based SPX Technologies to
supply equipment and services for the Indian power sector. This partnership
will provide power plant accessories and balance of plant equipment for power
plants above the 300 MW range.
In the area of green energy, Thermax has begun an initiative through a
public private partnership for a 250 kW solar thermal project at Shive village
in
The company incorporated a wholly owned subsidiary for utility delivery
business to capture a sizeable share of revenue-side spending of customer by
supplying steam, heat or chilled water on a unit basis. The new business would
look after installation of equipment and peripherals at customer site, ensure
operation and maintenance, organize required inputs like fuel, manpower and
consumables, and supply end- utility products to its customers.
The new manufacturing facility of the company at Savli,
The service businesses of all divisions contributed substantially to the
revenues of the company through retrofit and revamp, spares sales and operation
and maintenance of captive power plants.
Boiler and Healer
The Boiler and Heater group of the company saw a revenue decline for the
second year in succession due to lower order booking of the previous years.
Business from captive power plants provided opportunities towards the end of
the first quarter and grew at a fairly robust pace throughout the year. Cement,
sugar, oil and gas and power sectors saw a surge in investment which
substantially benefited the group in order booking.
The Boiler and Heater business commissioned supplementary fired heat
recovery steam generators (HRSGs) for an integrated solar combined cycle power
plant in
With the commercial availability of natural gas, the business division
was also able to secure a repeat order for heat recovery steam generators
(HRSGs). The global increase in sugar prices also facilitated the order inflows
for bagasse fired boilers from both
The company’s first waste-to-energy boiler installation designed for
partial firing of fuel derived from refuse, is in an advanced stage of
completion and awaiting commencement of trial operations. The efforts in the
distillery sector to incinerate spent wash as a fuel is progressing at a slower
pace as the two units in operation are under stabilisation.
The division also supported the company’s Power division by bagging an order
for the largest CFBC boilers with reheat, for an independent power producer
(IPP). Exports showed signs of improvement with orders from
The year closed with an order book in excess of Rs. 14000.000 millions.
It also saw the inauguration of the group’s new office aptly christened ‘Energy
House’. A substantial increase in revenue is expected for the year 2010-11,
signaling growth opportunities.
Power
Continuing with the previous year’s growth trend, there company’s power
business commissioned eight plants constituting 10 units and totaling 212.5 MW
this year. Repeat turnkey power project orders from the cement sector, among
others, have resulted in a healthy order book. The division has bagged, orders
of a record capacity of 629 MW in the financial year 2009-10, ably supported by
repeat turnkey power project orders from the cement sector. The division’s
first overseas turnkey power project for a large paper plant in
The division achieved a breakthrough in larger capacity projects in IPP
range with an order from a power producing company in
During the last financial year, the division reorganised itself,
creating full fledged business units to address various segments of power
plants. It successfully concluded a process improvement exercise for each
function through an external consultant and a core internal team. The
Division’s focus on safety was acknowledged with an award by a large corporate
customer.
With a record orders-in-hand, the outlook for the division for the year
ahead is positive. The orders are fairly spread across various sectors and
across geographies with a mix of green energy based plants, mainly in waste
heat recovery. The division is making conscious efforts to achieve a balanced
presence across private and public sector projects, apart from a mix of fuels
and traditional power plants. This strategy is likely to be catalysed by the
revival of conventional cement and steel sectors, in addition to the public
sector’s infrastructure spending.
For its growth, Thermax plans to be a significant player in the IPP
range and utility power market of unit size up to 300 MW and multiples. The
division is in the process of offering the solution of power generation from
waste heat recovery in cement sector with selective equity participation.
Cooling
The cooling business witnessed a 10% reduction in revenues during the
year, with exports contributing 42% of the total income. This was due to the
sluggish market conditions in the first half of the year resulting in a lower
order inflow. The rupee appreciation also accounted for reduction in total
income for exports.
This year, the cooling business successfully developed and commissioned
an absorption heat pump for a few automobile majors, that will reduce their
heating fuel bill by 30-40%, significantly reducing carbon emissions. The
division also commissioned
A European OEM in power generation has selected the company’s absorption
systems for recovery of waste heat and conversion to cooling.
The division’s manufacturing shop received an award for Right First TIme
at the National convention of Quality Circles held in
This year to counter the challenge of peaking of order inflow in the
latter part of the year, specific lean manufacturing techniques were used.
Appreciation of the Rupee against major currencies of there export markets is
likely to put pressure on price realization in 2010-11.
Heating
Heating business recorded a decline of 9% in total income as compared to
last year, with exports accounting for 26% of its business. The decline is
mainly on account of many projects being put on hold and lack of prospects from
overseas markets. With volatile fuel oil prices in the first half of the
fiscal, there were also no fuel shift opportunities, which account for a
sizeable share of its business.
To address the change in the Indian Boiler Regulation (IBR) Act, the
business division responded with two new products — one suitable for liquid and
gaseous fuel and the other for solid fuels. These products will help small users
shift to lower operating cost options, providing good business opportunities
for the business division. They would be introduced in the overseas markets as
well as for the hotel and hospitality segments. Coil products grew in volumes
by over 10% during the year due to increased demand from the hotels planned for
the upcoming Commonwealth games.
Bi-drum boilers serving the fuel shift and small cogeneration markets
doubled its growth over the last year in the domestic market. The division is
poised to capture emerging opportunities for this product line in overseas
markets, concerned about energy costs.
Under the company’s operational excellence program, the division
initiated mass customisation and engineering automation to reduce cost and
eliminate waste. It also kick- started a manufacturing excellence program
targeted to double the output in the next two years time frame from the current
manufacturing facility at Pune.
The outlook for the next year looks good with a vibrant domestic market
and markets like Middle East,
Solar Growth Unit
The recently established Solar business of Thermax, integrated with
steam boilers and vapor absorption systems, successfully completed six
demonstration projects in FY 2009-10 across its application segments — laundry
cooking and cooling. A first-of- its-kind installation of 70 solar
concentrators generating process concentrators generating process cooling has
been completed at a major auto facility near Pune and it will be commissioned shortly.
The parabolic concentrator acquired by the business in FY 2008 has been
engineered and necessary design improvements have been introduced to suit
domestic markets for cooling and heating applications. Continuous monitoring of
operational data is helping in designing better systems for there customers.
The division would focus on replicating its installations in select
market segments. It would also extend its application range with existing and
newer products.
With the new projects, the company is positioning itself as a solar
product manufacturer and as an integrated renewable energy solution provider of
cooling and heating solutions. By targeting hotels, auto and garment segments
and educational institutes, the new business would help increase the renewable
portfolio of Thermax’s offering to customers.
Environment
Segment Analysis
In 2009-10, the company’s environment business income stood at 24.4% of
the total income. Though income improved marginally, exports grew by a healthy
40% due certain export orders.
The environment segment witnessed growth this year as several domestic
and international customers opted for environmental products and solutions in
the air pollution control and water and waste treatment areas.
In 2010-11, the industrial sector is expected to continue to do well,
with the continuing emphasis on power projects and stricter norms for the use
of water. Projects for municipalities under JNNURM will get significant funding
as quite a few detailed project reports have been cleared by the government
authorities. All over the country, regulation standards, particularly through
pollution control boards, are becoming stringent and pressure is being brought
on companies to recycle treated effluents.
Chemical business continued its export growth with the domestic market
also providing the required support. Production has commenced at the
state-of-the-art paper chemicals manufacturing plant of 12,000 tons per annum
(TPA), which was set up after a technology tie up with Georgia Pacific Chemicals
of USA. The partnership with General Electric of USA to distribute reverse
osmosis (RO) membranes has commenced successfully, and the product is made
available in all the areas allocated to the company.
The service businesses of the environment segment contributed to the
growth of the company in a year of recovery and will continue to focus on
enhancing efficiency from existing facilities of the customers.
Enviro (Air
Pollution Control)
The air pollution control business registered 11% lower turnover during
the year. Its business came from segments like captive power, steel, sponge
iron, and aluminum i domestic markets. To compensate for the slowdown in the
domestic cement sector, it focused on select industries in international
markets.
The division’s international business obtained orders from its focus
sectors during the year. This includes the largest ever order of electrostatic
precipitators (ESPs) for a project as part of the Egyptian pollution abatement
programme, won through international bidding under World Bank guidelines. This
division has also signed a contract with a Brazilian multinational for the
design, engineering and construction of ten ESPs in the
The company’s technology tie-up with Balcke-Durr GmbH, now part of SPX
Corporation,
For 2010-11, though there is pressure on costs due to volatile steel
prices, foreign exchange rates and higher inflation, the division is confident
of countering these challenges. With the increased number of power plants
coming up in the next few years, the outlook for the division is positive.
Chemical
The chemical business continued to perform better than the previous year
with a 13% increase in the turnover and exports contributing a significant 38% of
business volume. The division, continued its focus on specialty resins. This
has been achieved, competing against global market leaders in the
Commodity chemical prices, forming a key part of the material cost of
this division, saw an increase in the latter part of the year together with
crude oil prices. The division increased its market share in its performance
product group (PPG), making it the largest in the domestic market. Business has
increased in the infrastructure and related industries as well as the dealer
segment. This business competes with some of the best known global companies,
who already operate in
The division received a major order for oil field chemicals from a
petroleum company. This is a three year contract won against international
bidding to supply the required chemicals in the oil fields in Andhra Pradesh.
The business has stabilized its presence in the paper industry after its
launch in 2007-08. These chemicals help the industry produce better grade paper
using lower quality material. The paper industry is now moving towards more
eco-friendly technologies for which alkaline and neutral sizing products are
being offered, Exports of paper chemicals have also begun.
In 2010-11 the division is expected to continue to maintain its strong
presence in its business lines in the domestic market and increase its focus in
the overseas markets. New technologies are being evaluated which will bring the
know- how for superior products to the Indian customer and will also bring in
green chemistry thus enhancing value.
Water and Waste
Solutions
The Water and Waste Solutions division has seen a remarkable increase in
its presence in the domestic market. It could more than double its order
booking and also show a 20% increase in its turnover, while maintaining healthy
margins.
The year started with a stagnant market and increased competition. With
better cost control and productivity, coupled with enhanced project management
skills, customers to a larger extent, have chosen to repose their faith in this
division.
The newly created municipal vertical has started with a good order
booking, riding on the back of government investment in various JNNURM schemes.
The industrial vertical has enhanced its strengths and increased its presence
in power plants that are coming up. The standard products group (SPO) which
sells through dealers, has improved its offerings and enhanced its presence
across the country.
In
Water and waste solutions business with its municipal vertical obtained
several orders awarded through the JNNURM schemes. In a major order secured,
the division will provide 10 sewage treatment plants as part of a project for
constructing an underground network for collecting and treating sewage for a
municipal corporation in
In the previous year, the division has acquired advanced know-how from
Services
Boiler and Healer
The Boiler and Heater service continued its steady growth with repeat
boiler upgradation orders from both domestic and the overseas markets. It made
a major advance by manufacturing a reformer package on a build-to-print basis
with residual engineering.
There was an increase in revenue from pure service offerings. Repeat
orders in condition assessment / residual life assessment teams made
significant gains in the Middle East and
The service business outlook is positive for 2010-11, considering its
current order book position and the customer’s requirements of service and
spares.
Power
The Power division’s service business has been steadily maintaining its
pace of growth. The group successfully stabilized an 80 MW power plant, based
on pulverised fuel boilers, for a mining major in Rajasthan and achieved a
annual plant load factor (PLF) in excess of 97%. To provide better value to the
customer, a software application, Enterprise Asset Management (EAM) was
successfully implemented.
A new petroleum refinery in central
The group also mobilized its first O and M services team in the overseas
market for a paper mill cogeneration plant in the
For 2010-11, the division plans to target the utility sector for O and M
business, with the experience gained in pulverized fuel fired boiler based
power plants. It also seeks to meet the demand for O and M support of power
plants built by other manufacturers, which require support for stabilization
and efficient operation.
Cooling and
Healing
Cooling and Heating service business increased its total income, its
growth driven by spares, O and M along with professional services like energy
audit, facility energy management services, branded heating service products
and steam accessories.
The business offered energy efficiency solutions in steam generation and
distribution to one of the largest edible oil manufacturers in
Based on the expertise of offering green steam generation and O and M
capability, the energy rental business line was established at two locations in
The division will continue to add new services and customised solutions
in the areas of energy efficiency to develop its business.
Chemical and Water
The service business of Chemicals and Water manages the O and M of over
45 water utilities across
The O and M of water facilities has introduced green practices — like
water recycling and zero liquid discharge — that could become mandatory
requirements in future. They help customers by refurbishing and upgrading
plants when it is a more viable option than putting up a new plant. Integrating
the solutions available from the water and waste treatment divisions with the
chemical division, this business is expected to grow significantly in 2010-11.
CONTINGENT LIABILITIES NOT PROVIDED FOR
a) Disputed
demands in respect of Excise, Customs Duty and Service Tax Rs. 221.100 Million (Previous Year Rs. 142.200 million), Sales Tax Rs. 133.800 Million (Previous Year Rs. 65.300 Million) and
other Statutes Rs. 0.900 Million (Previous
Year Rs. 1.400 Million).
b) Income Tax
i) Demands
disputed in appellate proceedings Rs. 345.500 Million (Previous Year Rs. 245.300 Million).
ii) References /
Appeals preferred by Income Tax department in respect of which, should the
ultimate decision be unfavourable to the company, the liability is estimated to
be Rs. 193.800 Million (Previous Year
Rs. 223.000 Million).
c) Counter
Guarantees given by the company to the banks on behalf of group companies : Rs.
3.400 Million on behalf of Thermax Engineering Construction Co. Limited (TECC),
Rs. 926.400 Million on behalf of Thermax Instrumentation Limited (TIL) and Rs.
Nil on behalf of ME Engineering Limited (ME Engg.), towards securing advances
received from clients and performance of contracts.(Previous Year Rs. 63.200 Million for TECC, Rs. 401.600 Million for TIL and Rs. 13.000 Million for ME Engg.).
d) Counter
Guarantees given to the banks for guarantees issued by them on company’s behalf
Rs. 14178.400 Million (Previous Year
Rs. 8371.100 Million).
e) Indemnity
Bonds/Corporate guarantees given to Customs, other Government departments and
various customers Rs. 698.000 Million (Previous
Year Rs 334.900 Million).
f) Liability for
unexpired export obligations Rs. 487.100 Million (Previous Year Rs. 196.700 Million).
g) Claims against
the company not acknowledged as debts Rs. 94.500 Million (Previous Year Rs. 77.500 Million).
h) Bills
Discounted with banks Rs. 433.900 Million (Previous Year Rs. 734.500 Million).
i) Liability in
respect of partly paid shares in Parasrampuria Synthetics Limited Rs. 1.900
Million (Previous Year Rs. 1.900
Million).
FIXED ASSETS
·
·
·
Buildings
·
Plant
and Machinery
·
Electrical
Installation
·
Furniture
·
Fixtures
·
Office
Equipment
·
Vehicles
·
Software
·
Technical
Know How
AUDITED FINANCIAL
RESULTS FOR THE HALF YEAR ENDED 31.03.2011
(Rs. In Millions)
|
Particulars |
|
|
Year ended |
|
|
|
|
31.03.2011 |
|
|
|
|
Audited |
|
Net Sales / Income from Operations |
|
|
47881.700 |
|
Other Operating Income |
|
|
950.641 |
|
Total Income (a+b) |
|
|
48832.341 |
|
Expenditure |
|
|
|
|
(a) (Increase)/decrease in Stock in Trade and work in progress |
|
|
(62.142) |
|
(b) Consumption of Raw Materials |
|
|
32543.943 |
|
(c) Purchase of traded goods |
|
|
1676.720 |
|
(d) Employees Cost |
|
|
3686.365 |
|
(e) Depreciation |
|
|
431.915 |
|
(f) Other Expenditure |
|
|
5326.588 |
|
Total Expenditure |
|
|
43603.389 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
|
|
5228.952 |
|
Other Income |
|
|
522.583 |
|
Profit/(Loss) before Interest and Exceptional items |
|
|
5751.535 |
|
Interest |
|
|
21.839 |
|
Profit / (Loss) after interest before Exceptional items |
|
|
5729.696 |
|
Exceptional Item |
|
|
-- |
|
Profit / Loss from Ordinary Activities before tax |
|
|
5729.696 |
|
Tax Expenses |
|
|
1905.509 |
|
Net Profit/(Loss) after tax |
|
|
3824.187 |
|
Extra-Ordinary Item of expenses/income |
|
|
-- |
|
Net Profit for the period |
|
|
3824.187 |
|
Paid-up Equity Share Capital (face value Rs. 2/-each) |
|
|
238.313 |
|
Reserves excluding Revaluation Reserves |
|
|
12685.092 |
|
Earning per share |
|
|
|
|
Basic and diluted EPS before extraordinary items for the period (not annualized) |
|
|
32.09 |
|
Basic and diluted EPS after extraordinary Items for the period (not annualized) |
|
|
32.09 |
|
Public Share
Holding |
|
||
|
Number of Shares |
|
|
45306995 |
|
Percentage of Shareholding |
|
|
38.02% |
|
Promoters and Promoter group share holding |
|
|
|
|
a) Pledged / Encumbered |
|
||
|
- Number of Shares |
|
|
NIL |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
|
|
NIL |
|
- Percentage of shares(as a % of the total share capital of the company) |
|
|
NIL |
|
b) Non-encumbered |
|
||
|
- Number of Shares |
|
|
73849305 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
|
|
100.00% |
|
- Percentage of Share (as a % of the total share capital of the company) |
|
|
61.98% |
Notes :
- The above audited financial results,
reviewed by the Audit Committee, were approved at the meeting of the Board
of Directors held on 03.05.2011
- The Board of Directors has recommended a
dividend of Rs. 9/- per share of face value of Rs. 2/- (450%) which is
subject to approval of shareholders of annual general meeting.
- Extraordinary item for the quarter and
year ended 31.03.2010 (previous year) represents amount payable to a U.S
based company in settlement of a business dispute.
Segmentwise Revenue, Results and Capital
Employed
(Rs. In Millions)
|
Particulars |
|
|
Year ended |
|
|
|
|
31.03.2011 |
|
|
|
|
Audited |
|
Segment Revenue |
|
|
|
|
a. Energy |
|
|
39071.510 |
|
b. Environment |
|
|
11472.143 |
|
Total |
|
|
50543.653 |
|
Less : Inter Segment Income |
|
|
1711.312 |
|
Total Segment Income |
|
|
48832.341 |
|
|
|
|
|
|
Segment Results |
|
|
|
|
Profit/(Loss) before tax and Interest |
|
|
|
|
a. Energy |
|
|
4159.801 |
|
b. Environment |
|
|
1475.752 |
|
Total |
|
|
5635.553 |
|
Less : Interest |
|
|
21.839 |
|
Less : Other Unallocated Expenditure net of unallocable income |
|
|
(115.982) |
|
Total Profit before Tax |
|
|
5729.696 |
|
|
|
|
|
|
Capital Employed |
|
|
|
|
a. Energy |
|
|
1704.980 |
|
b. Environment |
|
|
1404.393 |
|
c. Unallocated |
|
|
9814.032 |
|
Total Capital Employed |
|
|
12923.405 |
4. Statement of Assets and Liabilities as
per clause 41(v)(h) of the listing Agreement
(Rs. In Millions)
|
Particulars |
|
|
Year ended |
|
|
|
|
31.03.2011 |
|
|
|
|
Audited |
|
Shareholders Fund |
|
|
|
|
a. Capital |
|
|
238.313 |
|
b. Reserves and Surplus |
|
|
12685.092 |
|
Loan Funds |
|
|
480.447 |
|
Deferred tax liabilities (net) |
|
|
201.320 |
|
Total |
|
|
13605.172 |
|
Fixed assets |
|
|
5163.418 |
|
Investment |
|
|
4043.641 |
|
Current Assets, Loans and Advances |
|
|
|
|
a. inventories |
|
|
2823.128 |
|
b. sundry Debtors |
|
|
10012.578 |
|
c. cash and Bank Balances |
|
|
6565.732 |
|
d. other Current Assets |
|
|
4225.276 |
|
e. Loan and Advances |
|
|
3094.112 |
|
Less. Current Liabilities and Provisions |
|
|
|
|
a. Liabilities |
|
|
20756.376 |
|
b. Provisions |
|
|
1566.337 |
|
Net Current Assets |
|
|
4398.113 |
|
Miscellaneous Expenditure |
|
|
-- |
|
Profit and Loss Account |
|
|
-- |
|
|
|
|
|
|
Total |
|
|
13605.172 |
- Additional Information : Key unaudited
financial parameters/figures (Consolidated) for the Thermax
|
Group are as follows: |
Year ended
31.03.2011 |
|
Total Income |
53365.954 |
|
Profit Before Tax |
5736.776 |
|
Profit after tax and minority interest |
3816.719 |
During the year,
the company, through its wholly owned subsidiary Thermax Denmark ApS, acquired
100% stake in Danstoker A/S,
6. During the
quarter, two investor complaints were received and both were resolved. No
complaints were pending either at the beginning or at the end of the quarter.
7. Previous period figures including those
related to segments have been regrouped wherever necessary to confirm to
current period’s grouping and Classification.
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. 44.93 |
|
|
1 |
Rs. 72.43 |
|
Euro |
1 |
Rs. 63.62 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
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 |
NO |
|
--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 |
|
66 |
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.