MIRA
INFORM REPORT
|
Report Date : |
22.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
ESCORTS LIMITED |
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Registered Office : |
SCO 232, 1st Floor, Sector 20, Panchkula, Haryana 134109 |
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Country : |
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Financials (as on) : |
30.09.2010 |
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Date of Incorporation : |
17.10.1944 |
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Com. Reg. No.: |
05-039088 |
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Capital
Investment / Paid-up Capital : |
Rs.1022.800 Millions |
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CIN No.: [Company
Identification No.] |
L74899HR1944PLC039088 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELE00069G |
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PAN No.: [Permanent
Account No.] |
AAACE0074B |
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Legal Form : |
It is a Public
Limited Liability Company. The company’s
shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturers of
Agri Machinery, Auto-Components and Railway Equipment. |
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No. of Employees : |
7500 [Approximately] |
RATING & COMMENTS
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MIRA’s Rating : |
A (63) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 69500000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine track.
Financial position of the company appears to be sound. Trade relations are
reported as fair. Business is active. Payments are reported to be regular and
as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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 |
INFORMATION PARTED BY
|
Name : |
Mr. Vikas Billawaria |
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Designation : |
Area Business Manager |
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Contact No.: |
91-9922927566 |
LOCATIONS
|
Registered Office : |
SCO 232, 1st Floor, Sector 20, Panchkula, Haryana 134109, |
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Mobile No.: |
91-9922927566 Mr. Vikas
Billawaria |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Corporate Office : |
15/5, |
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Tel. No.: |
91-129-2250222 |
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Fax No.: |
91-129-2250058 |
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Administrative Office and Components Plants: |
18/4, Mathura Road, Faridabad-121007, |
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Tel. No.: |
91-129-2284911 |
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Fax No.: |
91-129-2264939 |
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Engineering
Division: |
Railway
Equipment Division |
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Plot No. 115, Sector-24, Faridabad-121005, |
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Tel No.: |
91-129-2232371 |
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Fax No.: |
91-129-2232146 |
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Tractor
Assembly, Transmission and Engine Plant: |
Plot No. 2 and 3, Sector 13, |
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Tel No.: |
91-129-2291230 |
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Fax No.: |
91-129-2250009 |
DIRECTORS
As on 25.02.2011
|
Name |
Mr. Rajan Nanda |
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Designation |
Chairman and Managing Director |
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Age |
59 Years |
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Qualification |
Senior |
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Experience |
41 Years |
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Date of Joining |
03.04.1970 |
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Previous Employment |
Harparshad & Company Limited - Director |
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Name |
Mr. Anil Nanda |
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Designation |
Vice Chairman and Managing Director |
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Age |
50 Years |
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Qualification |
Senior |
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Experience |
30 Years |
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Date of Joining |
01.07.1981 |
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Previous Employment |
Intercontinental Travancore (Private) Limited |
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Other Directorships |
Goetze (India) Limited, G I Power Corporation Limitecd, Goetze TP
(India) Limited, G I Wind Power Company Limited, AN-GIP Leather (India)
Limited, Escorts Farms Limited, Akme Project Limited, AN Enterprises Private
Limited, Joint Investment Private Limited, GI Insurance Services Limited |
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Name |
Mr. Nikhil Nanda |
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Designation |
Executive Director and COO |
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Age |
30 years |
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Qualification |
BBA |
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Name |
Dr. M. G. K. Menon |
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Designation |
Director |
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Qualification |
B.Sc., M.Sc., Ph.D., D.Sc [h.c.], F.R.S. |
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Other
Directorships |
Indfos Industries Limited |
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Name |
Dr. P. S. Pritam |
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Designation |
Director |
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Qualification |
M. A., LLB, Ph. D. |
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Name |
Dr. S. A. Dave |
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Designation |
Director |
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Qualification |
M.A. [Economics] Ph.D. |
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Other
Directorships |
1. HDFC Limited 2. Crisil Limited 3. SBI Gilts Limited 4. Future Software Limited 5. GIIC 6. Phoenix Township Limited 7. Captech Online Private Limited 8. Quantum Information Services Limited 9. Centre for Monitoring Indian Economy Private Limited 10. Merchant Media Limited 11. Indo National Limited 12. Spice Corporation Limited 13. Spice Net Limited |
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Name |
Mr. S C Bhargava |
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Designation |
Director |
KEY EXECUTIVES
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Name |
Mr. G. B. Mathur |
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Designation |
Vice President –
Law and Company Secretary |
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Qualification |
B. Sc. ACS, LLB |
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Name |
Mr. O. K. Balraj |
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Designation |
Vice President and Group Chief Financial
Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding
of promoters and Promoter Group |
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1. Indian |
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Individuals / Hindu Undivided Family |
1187427 |
1.12 |
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Bodies Corporate |
27094571 |
25.65 |
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Sub Total (A)
(1) |
28281998 |
26.78 |
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(B) Public
Shareholding |
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1. Institutions |
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Mutual Funds / UTI |
12100677 |
11.46 |
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Financial Institutions / Banks |
3134442 |
2.97 |
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Insurance Companies |
1582879 |
1.50 |
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Foreign Institutional Investors |
32813895 |
31.07 |
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Sub Total (B)
(1) |
49631893 |
46.99 |
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2. Non Institutions
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Bodies Corporate |
5628009 |
5.33 |
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Individual shareholders holding nominal share capital up to Rs. 0.100
million |
13858829 |
13.12 |
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Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
7491627 |
7.09 |
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Non Residents
Indians |
725680 |
0.69 |
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Sub Total (B)
(2) |
27704145 |
26.23 |
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(B) = (B) (1) +
(B) (2) |
77336038 |
73.22 |
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Shares
held by custodians and against which depository receipts have been
issued (C) |
-- |
-- |
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Total (A) + (B) +(C) |
105618036 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of
Agri Machinery, Auto-Components and Railway Equipment. |
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Products : |
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Exports : |
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Countries : |
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Terms : |
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Selling : |
L/C, Cash, Credit (30-60-90 Days) |
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Purchasing : |
Cash, Credit (30-60-90 Days) |
PRODUCTION STATUS As on
30.09.2010:
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Particulars |
|
Unit |
Installed
Capacity |
Actual
Production |
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**Agriculture Tractors |
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Nos |
98,940 |
60,906 |
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Internal Combustion Engine **Engine for Agricultural Tractors |
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Nos |
98,940 |
63,465 |
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Round and Fiat Tubes Heating Elements (Meters) |
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Meters |
180,000 |
56,980 |
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Double Acting hydraulic Shock Absorbers for railway Coaches |
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NOs |
36,000 |
19,355 |
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Centre Buffer Copiers |
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Nos |
1,200 |
895 |
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Automobile Shock Absorbers Telescopic Front Fork McPherson struts |
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Nos |
4,000,000 |
2,360,508 |
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Brake Block |
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Nos |
1,800,000 |
722,320 |
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All types of brakes used by Railways |
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Nos |
36,000 |
9,085 |
GENERAL INFORMATION
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Customers : |
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No. of Employees : |
7500 [Approximately] |
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Bankers : |
Ř Andhra Bank Ř Citi Bank Ř IDBI Bank Ř Punjab National Bank Ř
State bank of Ř
Bank of Ř Axis Bank Ř
State Bank of Ř State Bank of Travancore Ř
State Bank of Ř
United Bank of |
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Facilities : |
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Banking
Relations : |
-- |
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Statutory Auditors : |
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Name : |
S N Dhawan and Company Chartered Accountant |
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Internal Auditors : |
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Name : |
Grant Thornton Chartered Accountant |
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Sister Concern : |
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Joint Venture : |
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Subsidiary
Company Domestic : |
Adress: Plot
No. 2, Sector-13, Faridabad-121007, Tel No.: 91-129-2283073/ 2286694 Fax No.: 91-129-2283065
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Subsidiary
Company Overseas : |
Address: UL, Preezemyslowa 11,
11-700 Tel No.: 91-48-89-7412202 Fax No.: 91-48-89-7413633
Address: Post Box-1139, 111, Tel No.: 91-252-8234151 Fax No.: 91-252-8234576
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CAPITAL STRUCTURE
As on 30.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
120,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 1200.000
millions |
|
73,000,000 |
Unclassified Shares |
Rs. 100/- each |
Rs. 7300.000
millions |
|
|
|
|
Rs.
8500.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
105,618,039 |
Equity Shares |
Rs. 10/- each |
Rs. 1056.200 millions |
|
|
Less : Amoutn receivables from Escort Employees Benefit and Welfare
Trust (face value of 3343,612 shares allotted to Trust) |
|
Rs. 33.400 millions |
|
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Total |
|
Rs.1022.800 millions |
Note:
Paid-up Capital includes :
(i) 18,700 Equity Shares
(previous year - 18,700) allotted as fully paid-up for consideration other than
cash pursuant to contracts.
(ii) 10,505,306
(previous year - 3,404,256) fully paid Equity Shares of Rs.10/- each issued to
the members of Hardship Committee appointed by Hon'ble High Court,
(iii) 4,195,878
(previous year - Nil) fully paid Equity Shares of Rs.10/- each issued on
conversion of 61,455 4.25%
Secured
Convertible Debentures issued by the Company to the QIBs in terms of Clause 5.1
(B)(i) of Section XII of the Placement Document dated 29th June, 2007 pursuant
to Chapter XIII-A of SEBI DIP Guidelines.
(iv) 268,000
(previous year - Nil) fully paid Equity Share of Rs. 10/- each issued to employees
(through Escorts Employees Benefit and Welfare Trust) pursuant to an Employee
Stock Option Scheme 2006.
(v) Bonus Shares:
19,434,125 Equity Shares allotted before 1988 as fully paid-up bonus shares by capitalising
Share Premium of Rs. 2.200 millions and General Reserve of Rs, 192.100
millions.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.09.2010 |
30.09.2009 |
30.09.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1022.800 |
907.100 |
907.100 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
16355.500 |
13534.800 |
11119.500 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
17378.300 |
14441.900 |
12026.600 |
|
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LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2837.800 |
2537.900 |
4226.300 |
|
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2] Unsecured Loans |
148.200 |
114.700 |
195.200 |
|
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TOTAL BORROWING |
2986.000 |
2652.600 |
4421.500 |
|
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
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|
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TOTAL |
20364.300 |
17094.500 |
16448.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
14497.100 |
14569.000 |
8225.200 |
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Capital work-in-progress |
194.300 |
107.100 |
144.300 |
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INVESTMENT |
3658.000 |
2358.000 |
4257.900 |
|
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DEFERREX TAX ASSETS |
50.900 |
278.400 |
475.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2955.000
|
1994.900
|
1584.900
|
|
|
Sundry Debtors |
3326.200
|
3291.500
|
3797.400
|
|
|
Cash & Bank Balances |
1744.100
|
1648.000
|
1732.100
|
|
|
Other Current Assets |
8.200
|
150.700
|
4.300
|
|
|
Loans & Advances |
2588.600
|
1222.000
|
2152.100
|
|
Total
Current Assets |
10622.100
|
8307.100
|
10946.300 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
2605.900
|
3474.400
|
3784.300
|
|
|
Sundry Creditors |
4704.400
|
3792.700
|
2718.100
|
|
|
Provisions |
1367.300
|
1312.200
|
1208.200
|
|
Total
Current Liabilities |
8677.600
|
8579.300
|
7710.600 |
|
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Net Current Assets |
1944.500
|
(272.200)
|
3235.700 |
|
|
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|
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MISCELLANEOUS EXPENSES |
19.500 |
54.200 |
110.000 |
|
|
|
|
|
|
|
|
TOTAL |
20364.300 |
17094.500 |
16448.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.09.2010 |
30.09.2009 |
30.09.2008 |
|
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|
SALES |
|
|
|
|
|
|
|
Sales |
27457.300 |
21577.700 |
19929.300 |
|
|
|
Business Income |
189.400 |
223.100 |
585.800 |
|
|
|
Income from Investment |
1.000 |
15.400 |
0.400 |
|
|
|
TOTAL (A) |
27647.700 |
21816.200 |
20515.500 |
|
|
|
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|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing, Material and Operating Expenses |
19518.300 |
15065.600 |
15150.800 |
|
|
|
Sales and Administration Expenses |
2924.000 |
2371.500 |
1813.600 |
|
|
|
Personnel Expenses |
2892.400 |
2384.300 |
2026.300 |
|
|
|
Amortization of Misc. Expenditure |
49.300 |
113.100 |
81.400 |
|
|
|
TOTAL (B) |
25384.000 |
19934.500 |
19072.100 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2263.700 |
1881.700 |
1443.400 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
117.400 |
472.600 |
559.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2146.300 |
1409.100 |
884.100 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
385.400 |
378.400 |
455.400 |
|
|
|
|
|
|
|
|
|
Less |
Exceptional
Items |
[119.300] |
[79.900] |
194.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1880.200 |
1110.600 |
261.400 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
504.700 |
213.300 |
142.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
1375.500 |
897.300 |
118.700 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
68.800 |
22.400 |
-- |
|
|
|
Debenture Redemption Reserve |
0.000 |
261.300 |
-- |
|
|
|
Proposed Dividend |
162.000 |
90.700 |
-- |
|
|
|
Tax on Dividend |
26.900 |
15.400 |
-- |
|
|
BALANCE CARRIED
TO THE B/S |
1117.800 |
507.500 |
118.700 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Export |
638.100 |
1542.900 |
1003.800 |
|
|
|
Other Earnings |
0.000 |
0.000 |
85.100 |
|
|
TOTAL EARNINGS |
638.100 |
1542.900 |
1088.900 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
130.700 |
104.000 |
71.900 |
|
|
|
Stores & Spares |
85.700 |
213.600 |
39.700 |
|
|
|
Capital Goods |
48.300 |
14.700 |
148.200 |
|
|
|
Trading Goods |
0.000 |
0.000 |
37.200 |
|
|
TOTAL IMPORTS |
264.700 |
332.300 |
297.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
14.67 |
9.89 |
1.38 |
|
QUARTERLY RESULTS
(UNAUDITED)
(Rs.
In Millions)
|
PARTICULARS |
31.12.2010 |
31.03.2011 |
|
|
1st Quarter |
2nd
Quarter |
|
Net Sales |
8377.420 |
9018.070 |
|
Total Expenditure |
7939.100 |
8440.920 |
|
PBIDT (Excl OI) |
438.320 |
577.150 |
|
Other Income |
0.000 |
0.000 |
|
Operating Profit |
438.310 |
577.160 |
|
Interest |
36.920 |
62.470 |
|
Exceptional Items |
5.950 |
[12.380] |
|
PBDT |
407.350 |
502.310 |
|
Depreciation |
99.650 |
101.570 |
|
Profit Before Tax |
307.700 |
400.740 |
|
Tax |
52.790 |
[331.470] |
|
Provisions and Contingencies |
0.000 |
0.000 |
|
Profit After Tax |
254.910 |
732.210 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustment |
0.000 |
0.000 |
|
Net Profit |
254.910 |
732.210 |
KEY RATIOS
|
PARTICULARS |
|
30.09.2010 |
30.09.2009 |
30.09.2008 |
|
PAT / Total Income |
(%) |
4.97
|
4.11
|
0.58 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.85
|
5.15
|
1.31 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.48
|
4.85
|
1.36 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.11
|
0.08
|
0.02 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.67
|
0.78
|
1.01 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.22
|
0.97
|
1.42 |
LOCAL AGENCY FURTHER INFORMATION
FINANCIAL
PERFORMANCE
The Net Revenue of
the Company for the year was Rs. 2,7646.700 millions as against Rs. 2,1800.800
millions in the previous year showing a growth of 27 per cent. Sale of Tractors
increased by 32 per cent to 60,086 from 45,627 in the previous year. Profit
Before Interest, Depreciation, Amortisation (PBITDA) stood at Rs. 2431.300
millions against Rs. 2059.300 millions in the previous year. Better working
capita! management has lead to the interest cost coming down by 75 per cent to
Rs. 117.400 millions against Rs. 472.600 millions in the previous year. Profit
Before Tax (PBT) stood at Rs.1879.200 millions against Rs. 1095.200 millions in
the previous year and Profit After Tax (PAT) stood at Rs. 1375.500 millions
against Rs. 897.300 millions in the previous year. The Agri Machinery Group
(AMG) saw a sales growth of 30.2 per cent at Rs.24730 millions as against
Rs.18990 millions in the previous year, Auto Suspension Parts (ASP) division
saw a sales growth of 30 per cent at Rs.1100 millions against Rs. 850 millions
sales in the previous year and Railway Eguipment Division (RED) has maintained.
SHARE CAPITAL
During the year
the Company has allotted 1,49,08,540 Equity Shares of Rs.107- each fully
paid-up at a premium
as per details
given below and accordingly the share capital has been increased to Rs.
1056.200 millions:
Management Discussion and Analysis
Key Economic
Trends
Industrial
performance over the last few months has been witnessing a strong recovery.
With the fiscal incentives initiated by the government of
Indian Tractor
Industry
CRISIL research
estimates the domestic tractor industry at Rs. 200 billion in 2009-10, after
recording a CAGR of 18-20 per cent between 2004-05 and 2009-10 (in value
terms). The research forecasts the industry to reach a size of Rs. 320-330
billion by 2014-15, growing at a CAGR of 8-10 per cent. With growth in
agriculture GDP, domestic volumes are expected to increase at a CAGR of 6-8 per
cent by 2014-15. Exports are estimated to grow at 16-19 per cent leading to an
overall volume growth of 7-9 per cent. Rural incomes- both farm and nonfarm,
government focus on rural development, government aids to farmers and
increasing farm mechanisation will be the key drivers aiding tractor sales in
India. According to Food and Agriculture Organisation (FAO), in 2006, tractor
penetration was estimated to be around 18 units per 1,000 hectare of arabie
land, whereas the world average was around 20 units per 1,000 hectare of arable
land. However, given use of higher hp tractors in the
Factors affecting
Tractor Demand
The key factor
enabling the demand growth of 2009-10
was strong rural liquidity, which in turn was sustained by several factors,
including higher minimum support price (MSP) for crops; greater ability of
farmers to make cash purchases; enhanced employment opportunities (with rural
employment schemes being implemented by the Government of India); an improved
credit environment and continuance of replacement demand. These factors apart,
non-agricultural use of tractors (for haulage in construction and infrastructure
projects) continued to increase, benefiting tractor demand. Also, with
infrastructure projects and rural employment schemes increasing employment
opportunities, availability of labour for agricultural activities continued to
decline, persuading even farmers with medium-sized land holdings to either rent
or purchase tractors.
Reversal in
Product Mix trend towards High HP Tractors
Share of over-40
horsepower (hp) tractors in total industry sales has been increasing steadily
since 2003- 04; it stood at 38 per cent in 2009-10 (from 25 per cent in
2002-03). This transition was due to the rising use of higher hp tractors in
northern states and increasing share in southern and western states, where
higher hp tractors are preferred given harder soil conditions. In addition,
growing share of exports, where >40 hp tractors dominate (more than 75 per
cent in 2009-10), has also contributed to increasing offtake of higher hp
tractors.
Tractor Demand:
Review and Outlook
Domestic tractor sales
grew by about 32 per cent in 2009-10 mainly owing to increased farm incomes and
improved availability of credit. Exports, however, declined by 2-3 per cent in
the same period, chiefly due to the slowdown in world economy (especially the
Regulations and
Alternative Fuels
With new
regulation of emission norms to safeguard the environment for OTRs (off the
roads) vehicles due in 2010, the Company is well geared in terms of technology
to meet the changes in norms.
Raw Materials
After a year of
decline in raw material prices till the first half of the current year and
later firming up, financial year 2011 is expected to see a firming of prices in
the international market. However, the Company will continue to focus on cost
re-engineering and improving productivity to minimise the impact of this
development.
Sector Overview
A) AGRICULTURE
-The potential for farm mechanization
Agriculture- the
mainstay of more than 600 million Indians- is emerging as a new road to pros
perity. This much beaten path is now being re-paved with price movements, which
is reinvested in technology up-gradation. The growing promise is now being
driven by higher income driven consumption and investment. This effect is
increasing farm income, resulting in renewed investment in agriculture where
they expect the big fillip to come from the private sector. Benefits of the
growing GDP are beginning to positively affect rural
agriculture
sectors has increased from 11.2 per cent to 17.5 per cent for the same
comparable period. As a -result of the joint efforts made by the Government and
the private sector, the level of mechanisation has been increasing steadily
over the years.
Agri business has
a lot going for it...
• The government's
employment guarantee scheme has made farm labour expensive, compelling farmers
to take a fresh look at mechanization Real time price information, commodity
spot exchanges, weather insurance and irrigation technologies are helping to
modernize farming Huge internal demand will drive agricultural growth in
...But there are
challenges aplenty
Lack of modernized
supply chain that can reduce wastage and get farmers a reasonable price every
year New generation turning away from farming in a bid to avoid the drudgery
and uncertainty
• Fragmented nature
of business means it is difficult to scale up; large scale plans have no longer
-than-anticipated gestation periods Government policies like minimum support
price deter farmers from trying new crops or seeds.
Contribution of
various segments to agriculture sector:
Indian agriculture
is highly fragmented with 127mn cultivators and 107mn agricultural labourers,
contributing to 5.7 per cent of
Agriculture Value
Over the last 5
years (2004-05 to 2009-10), rural income has grown by 19 per cent CAGR,
attributable to the above mentioned factors. This includes, agricultural
credit, value of crop output, NREGA and farm loan waiver, which aggregates to a
total of Rs. 8,438 billion in 2009-10. Over and above this, rural development
spending of around Rs. 800 billion per annum will also have an indirect impact
on rural income. Government initiative towards rural development has increased
manifold in the Tenth and the Eleventh Five Year Plans. In the Tenth Five Year
Plan, expenditure on rural development was hiked by 1.6 times and in the
Eleventh Plan, it was increased by an additional 2.5 times and was pegged at
Rs. 3,011 billion. Of this, 64 per centhas been spent till date. Apart from
this, specific government initiatives include- export of cotton and sugar,
increased area under cultivation due to improved monsoons and NAG
recommendations on food security.
Crop output: First advance
estimates of crop production as released by the Ministry of Agriculture sees
kharif production at 115 mt for the season. Total food production in the kharif
season as per the first advance estimates are seen at 114.63 mt (million
tonnes) for as compared to 103.84 mt in 2009- 10, an increase of -11 mt. Rice
production in Kharif 2010-11 is seen to be up at -80 mt compared to -76 mt last
season. Acreage under Kharif crops as on Sept., 2010, stood at 99.000 millions
hectares from 923 Ih last year; an increase of -7 per cent. The Minimum Support
Price (MSP) for major crops is increasing continuously. Between 2005-06 and
2009-10 only; the MSP for paddy increased by 67 per cent, coarse cereals by 60
per cent and wheat by 70 per cent - bringing in surplus money in the hands of
rural population. This would help the company to cater to more mechanisation in
the country as the purchasing power grows.
B) INFRASTRUCTURE
GROWTH -The potential for Construction Equipment Industry
Infrastructure has
received an increasing importance in the Central Government's Five year plans.
Allocation to the infrastructure sector has increased 135 per cent, from Rs.
8716 bn in 10th Five Year Plan (2002-07) to Rs. 20561 bn in the 11th Plan
(2007-12). Continuity in the government's infrastructure policy gives strong
support to the infrastructure story. Notwithstanding the slippage from target,
investment in infrastructure as a percentage of GDP has been rising and is
intended to increase ratio of investment in infrastructure to GDP to 10.7 per
cent by end of the XII five-year plan (FY17) and this forms the basis for US$1
trillion investment envisaged in the XII plan. The contribution from private
sector is estimated at 36 per cent for the XI plan and is likely to increase
further to 50 per cent in XII plan, according to the Planning Commission. With
a wide production capacity base,
Material Handling
Equipment Segment is dominated by Pick N Carry cranes with them making up to
approximately 27 per cent of the entire market size in this segment. ECEL
happens to enjoy a leadership position in Pick N Carry Cranes. Forklifts make
up for 12 per cent share, Slew Cranes make up for 11 per cent and Crawler
Cranes make up for 8 per cent share in the Material Handling Equipment Segment.
2008-09 was an unprecedented time for the Construction equipment industry
worldwide and the group's construction business was also not isolated from the
unprecedented turmoil that the world saw.
Introduction of
new product range
The Company has
launched its backhoe loader- DIGMAX offering intelligent Hydraulics, maximum
fuel efficiency and value to its customers. Escorts DIGMAX is equipped with
proven 76HP KOEL Engine designed to give an edge over other competitive
offerings in the country. The value it imbibes can be summed up as- Efficient,
Economical, Powerful and Reliable.
C) RAILWAYS
Looking to the
growth trajectory of Indian economy and the GDP growth rate of around 8 per
cent plus, there are unprecedented opportunities in the Rail Freight
Transportation sector. The Rail Freight operations are the core business area
and primal revenue stream of Indian Railways. Indian Railways in its roadmap,
Vision 2020, outlined its growth strategy wherein it proposes an investment of
~INRl 4,OOObn over the next 10 years to modernise itself by expand ing its
network and creating more capacity.
i) Network
expansion
As outlined in
Vision 2020, Indian Railways (IR) is planning a major network expansion by
adding 25,000km of new lines by 2020, implying an average addition of -2,500
km/annum, a far away from an average of-180 km/annum that India has managed to
add over the last 62 years. IR proposes to finance the INR1,800bn needed for
this purpose by means of government funding and a major increase in Public
Private Partnerships (PPPs).
ii) Capacity
augmentation and setting up of Dedicated
Freight Corridors:
IR also aims to
augment its capacity by doubling and quadrupling the length of railway lines
(involving an addition of 12,000 km by 2020 versus currently existing length of
18,000 km, an increase of -66 per cent) and electrifying lines of 14,000 route km by 2020 versus
currently existing electrified length of 19000 km, an increase of -75 per cent.
This will entail an investment of
INR1,300bn.
iii) Manufacturing
units of rolling stock
Indian Railways is
also envisaging an investment of ~INR3900bn for augmenting its rolling stock
production facilities. Railways is looking for partnership with the private
sector to expand production of passenger coaches from the present level of
2,500 per annum to -5,000 per annum within the next three years and further to
10,000
iv) Up gradation
of stations
IR is targeting an
investment of INR900bn in the next 10 years to develop 50 world class stations.
A few pilot projects are likely to be taken up during 2010-11.
v) High speed rail
corridors
Construction of
high speed passenger rail corridors is another initiative that Railways is
targeting in the coming years. As per Indian railways, these projects would
require investments to the tune of INR2,OOObn and will be executed through PPP
mode. Six such corridors, capable of permitting 250 to 350 km/ hr speed have
been already been identified for technical studies on setting up of High Speed
Rail Corridors and eight additional corridors are proposed to be developed by
2020.
vi) Metros -
higher scope for private participation
The government is
increasingly turning to the private sector for financing urban transport
projects such as metres.
vii) Private
participation
The Railway Ministry
has allowed private rail operators to move bulk commodities, other than coal,
Iron ore and oil, by rail under two different schemes.
viii) Technology
up-gradation and safety
IR also entails a
budget of about INR1250bn for track renewal and 25T axle load and also on
safety measures. As you are aware, the Company is one of a key suppliers to
Indian Railways for products including brake systems, couplers and shock
absorbers, with a focus on safety, comfort and environment. With this wide
product range and in-house R and D capabilities, the company is well-poised to
capture the immense opportunity from the Indian Railways capital outlay over
next 10 years at least.
c)
AUTO COMPONENTS
The
Indian automobile market has seen a major revival since the slowdown of FY2009.
With the Indian market growing at a rapid pace, several international OEMs are
exploring setting up production bases in the country.The ACMA (Auto Components
Manufacturing Association) has projected the industry to grow by 18 per cent in
FY2010-11 to USD $26bn turnover. This would account for around 20 per cent
exports, i.e. $5bn exports by 2010-11, or a growth of 32 per cent YoY. The
exports account for 80 per cent OEMs and 20 per cent aftermarket demand. The
investment in the industry is projected to the tune of $12bn in FY2010-11 from
$9bn in the previous year.
INDIAN AUTO COMPONENT INDUSTRY TURNOVER
The Auto component
industry as per ACMA vision 2020 is likely to reach $108-119bn by FY2020from
here, a growth of almost 4 times from here. With this vision, Auto Components
industry in India is targeting 1 -1.2 million additional jobs and 3.6 per cent
of total GDP contribution by 2020 (from 2 per cent as of now).Domestic market
accounts for 85 per cent of demand (original equipment manufacturers: 50 per
cent and replacement demand: 35 per cent) while exports account for 15 per cent
of component demand. In terms of industry-wise split, two and three wheelers
contribute 35 per cent of demand of auto component industry, while cars
constitute 32 per cent . In terms of product profile, components related to
engine and transmission parts account for 55 per cent of the Indian auto
component industry sales (according to ACMA). The demand for 2-Wheelers is
being driven by the
rural economic
growth apart from the urban volumes. Government focus on rural initiatives and
easy auto loans is keeping the momentum going in rural areas. The 2 wheeler
volumes are expected to grow at a CAGR of 12 per cent. Similarly, the passenger
vehicle volumes have been growing at a CAGR of 18.4 per cent over the past 8
years. The CV segment has recovered rapidly from its cyclical downturn (in
FY2009, when sales dropped 22 per cent), led by pick-up in industrial recovery
as well as Government's stimulus measures.
The Company is in
the process of preparing a road map for the investment in auto sector and with
a strong recall value of the "ESCORTS" brand, the Company is hopeful
of creating a niche for its products and adding value to its overall business.
OPERATIONAL
REVIEW:
Agri machinery
division
As per reports,
during fiscal ending March 2010-11, the tractor volumes is likely to grow by
17-19 per cent, with domestic sales growing by 15-16 per cent and exports
increasing by 42-45 per cent. Sustained growth in farm incomes with expectation
of good crop is expected to aid growth. The new products introduced, the
business development efforts in Southern markets are expected to enhance volume
growth and market share for this division.
Awards and
Recognition
The Company has
been conferred with the "Industry Leadership Award 2010" by the Hon'ble
Governor of Punjab on 30'h September, 2010 organised by Agriculture 7~oday.
Engineering
division- Automotive components
The Auto component
industry as per ACMA vision 2020 is likely to reach $108-119bn by FY2020 from
$26bn by end of Fy2011, a growth of almost 4 times from here. As an integral
part of the industry, the auto suspension division of the Company saw a growth
of 30 per cent during 2009-10 at Rs.1100 millions. The Company is one of the
key suppliers to few well-known Original Equipment Manufacturers (OEMs) for
ancillaries including auto suspension and shock absorbers. With this wide
opportunity and inhouse R and D capabilities, the Company is well-poised to
capture the immense opportunity from the OEMs.
Engineering division-
Railway Equipments
Escorts Limited
Railway Equipment division has been able to maintain business at the previous
years' level despite the slow off-take from railways. However, the prospect
from current year looks much better and with new products planned, the
performance from this division is expected to improve in the coming year.
UNAUDITED FINANCIAL RESULTS For The
Quarter Ended 31st March, 2011
Rs. in millions
|
Particulars |
For the Quarter Ended 31.03.2011 Unaudited |
For the 6th Months Ended 31.03.2011 Unaudited |
|
Income |
|
|
|
a) Net Sales / Income from Operations |
8898.206 |
17176.021 |
|
b) Other Operating Income |
119.867 |
219.467 |
|
Total Operating Income |
9018.073 |
17395.488 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade |
[51.857] |
[155.759] |
|
(b) Consumption of Raw Materials |
5791.988 |
11051.496 |
|
(c) Purchase of traded goods |
640.110 |
1526.463 |
|
(d) Employees Cost |
863.637 |
1664.208 |
|
(e) Depreciation |
101.573 |
201.224 |
|
(f) Other Expenditure |
1197.037 |
2293.609 |
|
Total Expenditure |
8542.488 |
16581.241 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
475.585 |
814.247 |
|
Other Income |
0.000 |
0.000 |
|
Profit/(Loss) before Interest and Exceptional items |
475.585 |
814.247 |
|
Interest |
62.465 |
99.383 |
|
Profit / (Loss) after interest before Exceptional items |
413.120 |
714.864 |
|
Exceptional Items |
12.382 |
6.430 |
|
Profit / (Loss) From
Ordinary activities before Tax |
400.738 |
708.434 |
|
Tax Expenses |
[331.467] |
[278.680] |
|
Net Profit/(Loss) From Ordinary activities after Tax |
732.205 |
987.114 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Net Profit/(Loss) for the period |
732.205 |
987.114 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
1056.180 |
1056.180 |
|
Less: Amount recoverable from Escorts
Employees Benefit & Welfare Trust |
33.136 |
33.136 |
|
Paid-up equity share capital (Face Value
Rs. 10/- each) |
1023.044 |
1023.044 |
|
Reserves (Excluding Revaluation Reserves) |
0.000 |
0.000 |
|
Public Share
Holding |
|
|
|
-Basic |
7.16 |
9.65 |
|
-Diluted |
7.13 |
9.57 |
|
Average of Public Share Holding |
|
|
|
- Number of Shares |
77336038 |
77336038 |
|
- Percentage of shareholding |
73.22 |
73.22 |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
5600000 |
5600000 |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
19.80 |
19.80 |
|
- Percentage of shares(as a % of the total share capital of the company) |
5.30 |
5.30 |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
22681998 |
22681998 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
80.20 |
80.20 |
|
- Percentage of Share (as a % of the total share capital of the company) |
21.48 |
21.48 |
Notes
:
1. The
above results have been subjected to limited review by the statutory auditors.
After review by the Audit committee, these results have been approved and taken
on record by the Financial Results Committee of the Board of Directors at its
meeting held on 3rd May 2011.
2.
At the beginning and end of the quarter there were no investor complaint
pending for disposal. During the quarter, the Company received 5 complaints
from investors, which were disposed off within the quarter itself.
3. During
the period, Bad and Doubtful debts amounting to Rs.1157.100 millions have been
written off for which provisions were created in earlier year. Consequently,
tax expense have been adjusted and excess provision for tax created in earlier
period written back.
4. The
Scheme of Compromise and Arrangement pending before the Delhi High Court to
bail out the fixed deposit holders of Escorts Finance Limited stands
disposed-off vide order dated 4th March, 2011. On the interim directions of the
said High Court, fixed deposit liability of Rs.1303.200 millions has already
been discharged by the Hardship Committee constituted under the directions of
the said High Court. For discharging the unclaimed deposit, balance 24,01,050
shares have been transferred to Escorts Benefit Trust (Trust) and the Hardship
Committee has been dissolved. The trust shall, in due course and in terms of
the directions of the High Court, discharge the unclaimed deposits.
5. STATEMENT OF ASSETS &
LIABILITES (UNAUDITED)
|
Particulars |
As on 31.03.2011 Rs. in millions |
|
SHAREHOLDERS' FUNDS: |
|
|
(a) Share Capital |
1023.044 |
|
(b) Reserves &
Surplus |
17300.295 |
|
LOAN FUNDS |
2950.240 |
|
TOTAL |
21273.579 |
|
FIXED ASSETS |
14893.936 |
|
INVESTMENTS |
3657.966 |
|
DEFERRED TAX ASSETS (NET) |
134.148 |
|
CURRENT ASSETS, LOANS
& ADVANCES |
|
|
(a) Inventories |
3170.517 |
|
(b) Sundry Debtors |
4196.888 |
|
(c) Cash & Bank
Balances |
2126.056 |
|
(d) Other Current Assets |
38.502 |
|
(e) Loans & Advances |
2650.176 |
|
LESS: CURRENT LIABILITIES
& PROVISIONS |
|
|
(a) Current Liabilities |
[8757.504] |
|
(b) Provisions |
[855.730] |
|
MISCELLANEOUS EXPENDITURE |
18.624 |
|
(to the extent not written off or
adjusted) |
|
|
TOTAL |
21273.579 |
6. SEGMENT WISE REVENUE AND CAPITAL
EMPLOYED, FOR THE QUARTER ENDED 31ST MARCH, 2011
Rs. in millions
|
Particulars |
For the Quarter Ended 31.03.2011 Unaudited |
For the 6th Months Ended 31.03.2011 Unaudited |
|
1 Segment
Revenue: |
|
|
|
a) Agri Machinery Products |
8176.425 |
15906.432 |
|
b) Auto Ancillary Products |
377.818 |
627.325 |
|
c) Railway Equipments |
510.029 |
933.486 |
|
d) Unallocable |
13.094 |
24.381 |
|
Total |
9077.366 |
17491.624 |
|
Less: Inter Segment Revenue |
59.293 |
96.136 |
|
Net sales/Income From Operations |
9018.073 |
17395.488 |
|
2 Segment
Results: |
|
|
|
a) Agri Machinery Products |
549.458 |
1030.953 |
|
b) Auto Ancillary Products |
[16.760] |
[71.518] |
|
c) Railway Equipments _ |
67.512 |
97.025 |
|
Total |
600.210 |
1056.460 |
|
Less : |
|
|
|
— Interest, Bank and Finance charges (Net) |
62.465 |
99.383 |
|
— Exceptional Items |
12.382 |
6.430 |
|
— Other unallocated expenditure |
124.625 |
242.213 |
|
(Net of unallocated income) _ |
|
|
|
Profit Before Tax |
400.738 |
708.434 |
|
3 Capital
Employed |
|
|
|
(Segment assets - Segment Liabilities) |
|
|
|
a) Agri Machinery Products |
9903.832 |
9903.832 |
|
b) Auto Ancillary Products |
496.289 |
496.289 |
|
c) Railway Equipments |
1019.284 |
1019.284 |
|
d) Unallocable |
9854.174 |
9854.174 |
|
Total |
21273.579 |
21273.579 |
Fixed Assets:
Ř
Land
Ř
Buildings
Ř
Plant and Machinery
Ř
Vehicles
Ř
Furniture and Fixtures
Ř
Leasehold Improvements
Ř
IT Equipments
Ř
Technical Know-how
Ř
Software Development
LEADERSHIP
TEAM
Chairman
An alumnus of
Mr. Nanda is an active member of several apex trade and industry bodies. As
member of the CII National Council he has served as Chairman of its Agriculture
Committee in the past years. He played a pivotal role in promoting the cause of
Indian agriculture and his endeavors resulted in the Government announcing the
long-awaited National Agriculture policy.
Joint
Managing Director
Mr. Nikhil Nanda is an alumnus of
He is a member on the Board of most Group companies since 1997 and has the
overall responsibility for managing the Group's agri, construction and engineering
businesses. Combining contemporary management techniques with real life
practical approach, Mr. Nikhil Nanda has been responsible for driving the
business growth initiatives of the Group to strategically position it in the
global arena.
Mr. Nanda is also among the five Indians selected as the Global Leaders of
Tomorrow for the year 2001 by the World Economic Forum,
Executive
Director and Chief Executive Officer - Agri Machinery Group
An aluminous of the IIM,
With rich experience in successfully driving business growth in sectors like
paper, automobiles, telecom and retail, Mr. Mal is now driving Escorts to
significantly improve its competitive advantage and attain an even dominant
position in the Agri Machinery sector.
ED
& CEO – Escorts Construction Equipment Limited (ECEL)
Mr. Kanwal Kishore Vij is a Mechanical Engineer and has studied advanced
courses in Marketing and Management from Harvard, IIM (A) and
Mr. G.B. Mathur
Executive
Vice President – Law & Company Secretary
Has considerable experience in Secretarial and Legal matters.
Having joined Escorts in 1993, Mr. Mathur is responsible for all Company law
related matters and is also the custodian of the shareholder related matters.
Prior to joining Escorts he was the Company Secretary at Chambal Fertilizers
& Chemicals Ltd.
Group Chief Financial Officer
A Chartered Accountant by profession, certified under the
Indian Institute of Bankers,
He has also worked at senior positions in reputed organizations like Goghenheim
Infrastructure Fund, New York, Essar Group, IDFC, ANZ Grindlays and Tata Group.
Group
Head Human Resources & Employee Relations
Mr.Dasgupta has over 30 years of experience spanning all facets of HR and ER.He
has worked with leading companies like the Times of India, ICI
Prior to joining Escorts, he worked with Raymonds on HR branding initiatives
including work culture transformation, performance and talent management, and
productivity improvement. At Escorts, Mr.Dasgupta will focus on strategic HR
and Employee Relations.
HISTORY
The genesis of
Escorts goes back to 1944 when two brothers, Mr. H. P. Nanda and Mr. Yudi
Nanda, launched a small agency house, Escorts Agents Limited in
1944 - Launch
of Escorts (Agents) Limited
1948 -
Pioneered farm mechanization in the country by launching Escorts Agricultural
Machines Limited, with a franchise from the
1949 -
Franchise of Massey Ferguson tractors for northern
1951 - Escorts
established
1953 -Escorts
(Agents) Limited and Escorts (Agriculture and Machines) Limited merged to form Escorts
Agents Private Limited
1954 - 1st
industrial venture of Escorts to manufacture piston rings in collaboration with
Goetze of Germany, in an era when joint ventures of Indian firms with foreign
companies were virtually unheard of.
1958 - Started
importing Massey Ferguson tractors from
1959 -
Collaboration with Mahle of Germany to manufacture pistons. Soon, Escorts
became the largest producer of piston assemblies in
1960 - Set up
of Escorts Limited
1961- Setting
up of manufacturing base at
1969 - Escorts
Tractors Limited was born. A technical and financial joint venture with the
global giant Ford Motor Company,
Escorts Institute of Farm
Mechanisation (EIFM) established at
Escorts Employees Ancillaries
Limited. (EEAL), a unique venture in industrial democracy comes into being.
1971 - 1st
February, the first tractor FORD 3000 rolled out of the factory.
Escorts diversifies and starts
manufacturing construction equipment.
1974 - Crossing
national boundaries, Escorts exports for the first time. After winning a global
tender, 400 tractors were exported to
1976 - FORD
3600, an advancement in Farm Mechanisation launched. Trial production of
in-plant manufacturing of engine parts (Block & Head).
1977 - Escorts
enters the world of self-developed technology by setting up its first
independent
1979 -
Collaboration with JCB Excavators Limited,
1980 - Foray
into healthcare,
1983 - Escorts
Tractors Limited (ETL) established a state-of-the-art research and development
centre to spearhead newer breakthroughs in Farm Mechanisation and to maintain
industry leadership. Line concept introduced for engine block machining. 11,000
ton floating dry-dock Escorts I launched.
1984 - JV
Escorts - Yamaha to manufacture motorcycles
1984 - Signing
of agreement with the Japanese bike giant Yamaha to manufacture motorcycles
with Yamaha technology. Collaboration with Jeumont Schneider of
1985 - Escorts
Tractors Limited (ETL) offered its first Bonus Issue (1:1).
1988 - Escorts
Heart Institute and Research Centre (EHIRC), a world class cardiac care
facility launched in
1989 - Joint
Venture with Claas of Germany to manufacture harvester combines.
1990-91 - First
Public Issue in February 1991, over-subscribed four times. Shares listed on
1993 - FORD
3620 tractor launched.
1996 -
Disengagement of joint venture collaboration with New Holland and launch of
FARMTRAC Tractor.
1997 - Joint
Venture with Carraro of Italy for manufacturing and marketing of transmission
and axles.
Joint Venture with First Pacific Company of
1998 -
POWERTRAC series of tractors launched.
MoU was signed with Long Manufacturing Company,
1999 - MoU for
Joint Venture with a Polish Company POL-MOT was signed for assembly,
manufacturing and marketing of Farm Machinery.
2004 - Divested
Escotel Mobile Telecommunications to Idea Cellular
TS16949 certification for Agri Machinery Group.
2005 – Divested
Escorts Heart Institute and Research Centre (EHIRC) to Fortis Healthcare.
2006 - Divested
in Carraro India Limited
Set up new manufacturing
facility in Rudrapur for manufacture of new range of railway equipment
THE
COMPANY HAS ITS MANUFACTURING PLANTS AT THE FOLLOWING LOCATIONS
AGRI MACHINERY GROUP
Administrative Office and Components Plant
18/4, Mathura Road, Faridabad – 121 007
Phone: 0129 – 2284911
Fax: 0129 – 2264939
Tractor Assembly, Transmission and Engine Plant
Plot No. 2 & 3, Sector – 13, Faridabad – 121 007
Phone: 0129 – 2291230
Fax: 0129 – 2250009
Crankshaft and Hydraulics Plant
Plot No. 115, Sector – 24, Faridabad – 121 005
Phone: 0129 – 2234053, 2232143
Fax: 0129 – 2232148
Railway Equipment Division
Plot No. 115, Sector – 24, Faridabad – 121 005
Phone: 0129 – 2232371
Fax: 0129 – 2232146
Plant location
Plot No. 9, Sector 1
Integrated Industrial Estate, Pant Nagar, Rudrapur
District, Udham Singh Nagar, Uttranchal-263145
Auto Suspension Products Division
18/4, Mathura Road, Faridabad – 121 007
Phone: 0129 – 2284911
Fax: 0129 – 2283069
WEBSITE DETAILS:
Profile:
The Escorts
Group, is among
Having pioneered farm mechanization in the country, Escorts has played a
pivotal role in the agricultural growth of
A leading material handling and construction equipment manufacturer, they
manufacture and market a diverse range of equipment like cranes, loaders,
vibratory rollers and forklifts. Subject today is the world's largest Pick 'n'
Carry Hydraulic Mobile Crane manufacturer.
Subject has been a major player in the railway equipment business in
In the auto components segment, Subject is a leading manufacturer of auto
suspension products including shock absorbers and telescopic front forks. Over
the years, with continuous development and improvement in manufacturing
technology and design, new reliable products have been introduced.
The Escort Group has also been operating in the ITES and financial
services sectors.
Throughout the evolution of Subject, technology has always been its greatest
ally for growth. In the over six decades of their inception, Subject has been
much more than just being one of India's largest engineering companies. It has
been a harbinger of new technology, a prime mover on the industrial front, at
every stage introducing products and technologies that helped take the country
forward in key growth areas. Over a million tractors and over 16,000
construction and material handling equipment that have rolled out from the
facilities of subject , complemented by a highly satisfied customer
base, are testimony to the manufacturing excellence of subject. Following
the globally accepted best manufacturing practices with relentless focus on
research and development, subject is today in the league of premier corporate
entities in
Technological and business collaboration with world leaders over the years,
Globally competitive indigenous engineering capabilities, over 1600 sales and
service outlets and footprints in over 40 countries have been instrumental in
making Escorts the Indian multinational. At a time when the world is looking at
India as an outsourcing destination, Subject
is rightly placed to be the dependable outsourcing partner of world's
leading engineering corporations looking at outsourcing manufacture of engines,
transmissions, gears, hydraulics, implements and attachments to tractors, and
shock absorbers for heavy trailers and armored tanks.
In today's Global Market Place, Subject is fast on the path of an internal
transformation, which will help it to be a key driver of manufacturing
excellence in the global arena. For this they are going beyond just adhering to
prevailing norms, they are setting their own standards and relentlessly
pursuing them to achieve their desired benchmarks of excellence.
AGRI MACHINERY
Background
·
In 1960, Escorts set up the strategic Agri
Machinery Group (AMG) to venture into tractors.
·
In 1965, they rolled out the first batch of
tractors under the brand name of Escort.
·
In 1969 a separate company, Escorts Tractors Ltd.,
was established with equity participation of Ford Motor Co.,
·
In the year 1996 Escorts Tractors Ltd. formally
merged with the parent company, Escorts Ltd
·
Since inception, they have manufactured over 1
million tractors.
Technologies
·
Escorts AMG has three recognized and well-accepted
tractor brands, which are on distinct and separate technology platforms.
·
Farmtrac:
World Class Premium tractors, with single reduction and epicyclic reduction
transmissions from 34 to 75 HP.
·
Powertrac:
Utility and Value-for-money tractors, offering straight-axle and hub-reduction
tractors from 34 to 55 HP.
·
Escort:
Economy tractors having hub-reduction transmission and twin-cylinder engines
from 27 to 35 HP. Pioneering brand of tractors introduced by Escorts with
unbeatable advantages.
International Subsidiaries
·
Escorts AMG has two international subsidiaries.
·
Farmtrac
North
·
Farmtrac
Tractors Europe Sp.z o.o.in
·
They
now cater to 41 countries.
Fuctional Excellence
·
Manufacturing
·
Quality
Assurance
·
Materials
Management
·
Sales
& Marketing
·
Knowledge
Management
·
Finance
·
Human Resources
·
Information
Technology
Beyond manufacture, Escorts has made substantial investments towards the
modernisation of farm technology. The Escorts Institute of Farm Mechanisation
(EIFM) at
KNOWLEDGE
MANAGEMET
The Escorts Agri-Machinery Group Knowledge Management Centre, set up in
1976, has a history of over twenty-nine years. It is spread over 100000 Sq M
(23 acre) area. It is equipped with modern facilities set up with an investment
of over US $ 7.5 million.
It designs the entire tractor, defined as engine, transmission plus hydraulic
systems and Vehicle design consisting of sheet metal (including styling) plus
controls and accessories.
Virtual prototypes of components and aggregate assemblies are made and
assembled on computer workstations using 3D technology. The performance is
checked on computers using simulation techniques thus saving a lot of time for
the end-user as well as lowering development costs. The KMC uses advanced
3D-modeling, analysis and simulation software for engines, transmissions and
vehicles. Physical prototypes are then extensively tested for performance,
durability and reliability.
The facilities include a high-technology engine laboratory featuring fully
computerized test beds with online control, data acquisition and analysis. they
can test engine emissions for meeting the Bharat TREM norms, US Environmental
Protection Agency (EPA) norms and European (Euro) norms. Additional
capabilities of the engine lab are engine performance, durability, reliability,
tribology and fluid dynamics studies. An advanced vehicle testing laboratory
includes fatigue testing, dynamometer testing for chassis and power-take-off,
and smooth as sell as torture test tracks. Other facilities include Noise
Vibration and Harshness (NVH) Lab., Metrology Lab., and Materials Engineering
Lab. Product styling is carried out in a computerized virtual environment,
which is supported by a model-making shop for physical prototypes.
In addition to multi purpose tractors ranges, a variety of special-purpose
tractors have been developed for industrial applications as also
non-agricultural applications like Haulage, Airport, potato and vineyard
cultivation.
Escorts manufacturers and markets a diverse range of construction and
material handling equipment like cranes, loaders, vibratory rollers and
forklifts. The company was a pioneer in introducing the concept of Pick 'n'
Carry hydraulic mobile cranes in the 70s in
CONSTRUCTION
EQUIPMENTS
Escorts manufacturers and markets a diverse range of construction and material
handling equipment like cranes, loaders, vibratory rollers and forklifts. The
company was a pioneer in introducing the concept of Pick 'n' Carry hydraulic
mobile cranes in the 70s in
A nationwide network of 16 Sales Offices, 50 dealership locations, over 300
company trained dealers’ service engineers, gives it the best market reach in
With over 30 years experience in Construction Equipment Industry, Escorts has a
proven track record in :
·
Hydraulic
·
Loaders
·
Forklifts
·
Vibratory Compactors
Today, it not only continues to be the largest mobile crane manufacturer in
the country, but also the largest Pick ‘n’ Carry Hydraulic Mobile Crane
manufacturer in the world.
While recording a rapid growth in Crane Industry they’ve also been able to
steadily increase the presence in the field of Vibratory, Soil & Tandem
Compactors. Escorts was the first to bring the concept of Vibratory Compactors
in
Along with Cranes and Compactors, they also manufacture Frontend loaders with
payload capacity of 700kgs. Suitable for narrow lanes and confined spaces,
these loaders are compact in design and are ideal for garbage handling, handing
of chemicals, sands, small chips, etc.
Escorts also offers other material handing solutions like Forklifts from Daewoo
Doosan Infracore Ltd.,
This single-minded pursuit of precision and customer satisfaction has made us
the 3rd largest in terms of Construction Equipment Sales unit per annum.
NEWS AND RELEASES
Escorts
half year net profit up 767% to Rs 648.700 millions
Half year
Sales up by 30.2% at Rs. 12720 millions
Quarter
Net Profit grows 430% to Rs. 414.70 millions
Quarter
Sales rise by 39.5% to Rs. 6720 millions
Quarter
EBITDA shoots 84.2% to Rs. 660.90 millions
ICRA
has recently upgraded Escorts rating
Escorts Limited today reported a higher profit of Rs. 648.700 millions for the
half year ended March 31, 2010, a 767% increase over Rs 74.800 millions
registered for the corresponding period of last fiscal. The Profit Before Tax
(PBT) stood at Rs. 871.400 millions for the half year, as against a profit of
Rs.164.600 millions in the corresponding period. Total half yearly sales and
income from operations rose to Rs. 12720 millions from Rs. 9770 millions in the
previous year. The company reported a cash profit of Rs.1143.400 millions as
against Rs. 368.500 millions in the corresponding period. Escorts Limited
follows an October-September fiscal year.
For the quarter ending March 31, 2010, Escorts Limited registered a higher
profit of Rs. 414.700 millions, an increase of 430% against Rs. 78.200 millions
in the previous year. Total sales and income from operations for the quarter
rose 39.5% to Rs. 6720 millions against 4820 millions in the previous year. The
company closed the quarter with Profit Before Tax (PBT) standing at Rs.516.90
millions against Rs. 157.60 millions recorded in the corresponding period of
last fiscal. EBITDA increased by 84.2% to Rs. 660.900 millions against Rs.
358.900 millions in previous fiscal.
During the quarter, Escorts Limited registered Tractor sales of 14, 623 units,
a 51.2% increase over 9,672 units sold in corresponding quarter last fiscal
enabled through streamlining of sales & marketing on the ground. During the
quarter, Escorts launched FT-60 X-TRA TORQUE, a new powerful model with higher
torque in
Speaking on the results, Chairman and Managing Director Mr Rajan Nanda said,
"Escorts has recorded strong performance across all parameters this
quarter. The company is consistently enhancing shareholder value through growth
initiatives, fiscal prudence and innovative strategies. We are leveraging our
ability to engineer technology to chart a growth path that spans a wider canvas
of economic activity across agriculture and infrastructure sector. Escorts
today has created a strong platform for growth and enhancing shareholder
value."
According to Joint Managing Director Mr Nikhil Nanda, "Escorts'
journey of sustained and profitable growth accelerated this quarter. Driven by
the twin focus of winning in the market and efficiency, Escorts financial
performance continues to gain momentum quarter after quarter. In comparison to
the previous quarter of this current fiscal, profit is up by 77.2%, net sales
is up by 11.9% and tractor sales volumes are up by 7.8% for the quarter ending
March 31."
"On a year to year basis, for the quarter ending March 31, 2010, cash
Profits have grown over 3 times during the quarter and EBITDA is up 84.2% to Rs
660.900 millions. Combining a lean and learning culture with strong engineering
capabilities, Escorts is geared to capitalize on the emerging opportunities in
agriculture and infrastructure sector", Mr Nikhil Nanda added.
Escorts
first quarter net profit at Rs. 254.000 Millions
- First Quarter
sales at Rs.8277.000 millions, up 38 per cent
- Tractor
volumes up by 20 per cent
- Agri
Machinery Business grows 45 per cent
- Profit Before
Tax at Rs.307.000 millions
Escorts Limited today reported a Net Profit of Rs. 254.000 millions for the first
quarter of the 2010-11 financial year ending December 31, 2010, registering an
increase of 9 per cent from Rs. 234.000 millions for the corresponding quarter
last fiscal. The company’s Profit Before Tax (PBT) stood at Rs. 307.000
millions. Net Sales grew by 38% to Rs. 8277.000 millions as against Rs.6002.000
millions registered in the corresponding quarter. As opposed to the preceding
quarter, net sales up 24 per cent. EBIDTA for the first quarter of the year is
at Rs.438.000 millions higher by 25 per cent as compared to the preceding
quarter. Escorts Limited follows an October-September fiscal year and the
reported quarter is the first quarter of fiscal 2010-11.
The Agri Machinery Division recorded revenue of Rs. 7730.000
millions, up 45 per cent from Rs. 5341.000 millions. Tractor volumes are up by
20 per cent to 16,333 units as against 13,561 units in the corresponding
quarter.
Speaking on the results, Chairman and Managing Director Mr. Rajan Nanda said,
"Escorts' first quarter results of fiscal 2010-11 reflects a profitable
quarter with increase in sales performance in the tractor segment. The industry
is faced with rising inflation, which will be a test of our managerial
initiatives to neutralize increasing costs. We will continue our focus on improving
our product offering to our customers, deeper market penetration and increasing
the efficiencies of our channel partners."
Mr. Nikhil Nanda, Joint Managing Director said, "Our results for the
quarter are a demonstration of the company's thrust to grow the business.
Whilst the sales growth has been steady, our focus will continue to be to
improve EBITDA and manage the challenge of rising input costs. Financial
charges have seen a downward trend and this is a reflection of several
initiatives to improve fund management.
Our construction business is seeing growth in the year ahead and we are geared
to participate in this opportunity. The railway business continues to hold
promise, and several product initiatives are in the pipeline, which will
support modernization plans of the Indian Railways. We look at 2011 as a year
of new business opportunities, where new initiatives will strengthen our
profitability and growth in all segments."
The reviewed accounts of the first quarter of 2010-11 ending December 31, 2010
has been approved by the Board of Escorts Limited.
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.44.91 |
|
|
1 |
Rs.72.89 |
|
Euro |
1 |
Rs.64.48 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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.