MIRA
INFORM REPORT
|
Report Date : |
17.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
CEAT LIMITED |
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Registered Office : |
Ceat Mahal, 463, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
10.03.1958 |
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Com. Reg. No.: |
11-011041 |
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Capital
Investment / Paid-up Capital : |
Rs.342.435 Millions |
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CIN No.: [Company
Identification No.] |
L25100MH1958PLC011041 |
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TAN No.: (Tax Deduction & Collection Account No.) |
MUMC10660G MUMC11397B |
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PAN No.: [Permanent
Account No.] |
AAACC1645G |
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Legal Form : |
Public Limited
Liability Company. The company’s
shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing and
Marketing of Automotive Tyres, Automotive Tubes and Automotive Flaps. |
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No. of Employees
: |
4928 |
RATING & COMMENTS
|
MIRA’s Rating : |
A [62] |
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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 25148580 |
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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 be
considered for normal 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 DENIED BY
|
Name : |
Mr. Sunil Sapre |
|
Designation : |
Chief Financial Officer |
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Contact No.: |
91-22-24930657 |
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Date : |
16.05.2011 |
LOCATIONS
|
Registered Office : |
Ceat Mahal, 463, |
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Tel. No.: |
91-22-24930621/24616054/25640461/25660461/63
/ 66670200 |
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Fax No.: |
91-22-24606039/25640301/25663964
/ 66670299 / 24975798 |
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E-Mail : |
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Website : |
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Head Office : |
6, Lotus House,
Sir Vithaldas Thakersey Marg, New Marine Lines, Mumbai – 400 020, |
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Tel. No.: |
91-22-28570014/0378/0376 |
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Factory 1 : |
·
Village
Road, Bhandup, Mumbai – 400 078, |
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Factory 2 : |
82, MIDC Industrial
Estate, Satpur, |
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Regional
Offices: |
Located At: ·
·
·
Jalandhar ·
·
Rohtak ·
·
Varansi ·
·
Jaipur ·
·
New ·
|
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. R. P. Goenka |
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Designation : |
Chairman |
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Other
Directorship : |
·
CESC Limited
– Director ·
Saregama
India Limited – Director ·
Jubilee
Investments and Ind. Limited - Director ·
Hilltop
Holdings India Limited – Director |
|
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Name : |
Mr. H. V. Goenka |
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Designation : |
Vice Chairman |
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Name : |
Mr. Paras K.
Chowdhary |
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Designation : |
Managing Director
(Appointed on 18/01/2001) |
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Name : |
Mr. M. A. Bakre |
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Designation : |
Director |
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Other
Directorship : |
Ř
Garware
Wall Ropes Limited – Director Ř
FGP
Limited – Director |
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Name : |
Mr. A. C. Choksey |
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Designation : |
Director |
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Date of Appointment : |
28/01/2000 |
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Name : |
Mr. Hari L.
Mundra |
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Designation : |
Director |
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Name : |
Mr. S. Doreswamy |
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Designation : |
Director |
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Date of Appointment : |
27/07/2000 |
|
Other Directorship : |
·
Can
Fin Homes Limited - Chairman ·
Pantaloon
Retail [ ·
Kaytee
Switchgear Limited – Director ·
Sakthi
Sugar Limited – Director ·
Sakthi
Auto Component Limited – Director ·
Deposit
Insurance and Credit Guarantee Corporation Limited – Director ·
Caliberpoint
Business Solutions Limited – Director |
|
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|
|
Name : |
Mr. J. N. Guzder |
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Designation : |
Director |
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Name : |
Mr. H. Khaitan |
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Designation : |
Director |
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Name : |
Mr. B. S. Mehta |
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Designation : |
Director |
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Other Directorship : |
·
Atul
Limited – Director ·
Bharat
Bijlee Limited – Director ·
Century
Enka Limited – Director ·
Housing
Development Finance Corporation Limited – Director ·
IL
& FS Investment Mergers Limited [Formerly known as IL & FS Venture Corporation
Limited] – Director ·
J. B.
Chemicals & Pharmaceuticals Limited - Director ·
Pidilite
Industries Limited – Director ·
Procter
and Gamble Hygiene and Health Care Limited – Director ·
Sasken
Communication Technologies Limited – Director ·
SBI
Capital Markets Limited – Director ·
Sudarshan
Chemical Industries Limited – Director ·
The
Dawn Mills Company Limited – Director ·
Varun
Shipping Company Limited – Director ·
Vinyl
Chemicals [ |
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Name : |
Mr. K. R. Podar |
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Designation : |
Director |
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Name : |
Mr. Mahesh S.
Gupta |
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Designation : |
Director
(Appointed on 02/05/2002) |
KEY EXECUTIVES
|
Name : |
Mr. H. N. Singh Rajpoot |
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Designation : |
Company Secretary |
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Address : |
463, |
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Name : |
Mr. Bharat Sharma |
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Designation : |
Head – OE |
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Name : |
Mr. Jimmy Hiloo |
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Designation : |
Sr. Regional Manager- OE West |
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Name : |
Mr. Amol Deshpande |
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Designation : |
Regional Manager- OE West |
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Name : |
Mr. Shyam Khanna |
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Designation : |
Sr. Regional Manager- OE North |
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Exports |
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Name : |
Mr. Satyajit Dutta |
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Designation : |
Regional Manager - South |
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Name : |
Mr. B S Mani |
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Designation : |
Regional Manager - South |
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Name : |
Mr. Narayan Ganesh |
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Designation : |
Manager Exports - |
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Name : |
Mr. Snehasis Mohanty |
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Designation : |
Manager Exports - Far East/Australasia |
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Name : |
Mr. Arvind Sharma |
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Designation : |
Head Exports - Middle East |
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Name : |
Mr. Naveen Mendon |
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Designation : |
Senior Manager-Exports - |
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Name : |
Mr. Sandeep Gulati |
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Designation : |
General Manager - Exports |
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Name : |
Mr. Arvind Sharma |
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Designation : |
Regional Manager |
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Name : |
Mr. Satish Nagraj |
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Designation : |
Regional Manager |
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Name : |
Mr. Arun Poddar |
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Designation : |
Regional Manager |
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Name : |
Mr. Shishir Tiwari |
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Designation : |
Regional Manager |
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Name : |
Mr. Sunil Upadhaya |
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Designation : |
Regional Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.03.2011)
|
Category of
Shareholder |
Total No. of
Shares |
% of total No.
of Shares |
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(A) Shareholding of Promoter and Promoter Group |
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|
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|
28117 |
0.08 |
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14913113 |
43.55 |
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1782348 |
5.20 |
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(B) Public Shareholding |
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|
2406295 |
7.03 |
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|
23676 |
0.07 |
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|
67 |
-- |
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|
3877838 |
11.32 |
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|
824028 |
2.41 |
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|
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|
2308400 |
6.74 |
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|
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|
7399513 |
21.61 |
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|
661160 |
1.93 |
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|
3889 |
0.01 |
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|
15053 |
0.04 |
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37 |
-- |
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Total |
34243534 |
100.00 |
(1)
Indian
Individuals
/ Hindu Undivided Family
Individual
shareholders holding nominal share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturing and
Marketing of Automotive Tyres, Automotive Tubes and Automotive Flaps. |
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Products : |
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Brand Names : |
CEAT, CEAT
SECURA, CEAT ENDURA, CEAT MAESTRO, etc. |
PRODUCTION STATUS As on 31.03.2010
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Automotive Tyres |
Nos. |
4.947 |
4.726 |
8.450 |
|
Automotive Tubes |
Nos. |
4.947 |
1.066 |
7.056 |
|
Automotive Flaps |
Nos. |
0.289 |
0.289 |
-- |
(1) Installed Capacity is as certified by the Management.
(2) Production quantity includes the following procured under conversion
basis.
GENERAL INFORMATION
|
No. of Employees : |
4928 |
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Bankers : |
·
Bank
of India, Mumbai Corporate Banking Branch, 70-80, Mahatma Gandhi Road, Mumbai
– 400023, Maharashtra, India ·
Bank
of ·
Indian
Bank, ·
State
Bank of ·
Axis
Bank ·
Vijaya
Bank, Industrial Finance Branch, 2nd Floor, New ·
Corporation
Bank, Industrial finance Branch, Bombay Samachar Marg, Fort Mumbai-400 001, ·
State
Bank of Travancore, Mumbai Main Branch, ·
Dhanalakshmi
Bank Limited, Janmabhoomi Bhavan, Janmabhoomi Marg, Fort, Mumbai- 400 001, ·
ICICI
Bank Limited, Free Press House, 215, Nariman Point, Mumbai-400 021, ·
Karnataka
Bank Limited, 294/A, Haroon House, perin ·
United
Western Indian Bank, Dadar (East) Branch, 19/A, Rajaram Estate, M.M.G.S.
road, Dadar (East), Mumbai-400 001, ·
Export-Import
Bank of India, Center One, floor-21, World Trade Center, Cuffe Parade,
Mumbai-400 005, Maharashtra, India ·
UCO
Bank, ·
Industrial
Development Bank of India Limited ·
Yes
Bank Limited |
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Banking
Relations : |
SECURED LOANS 1. Term loan availed from IDBI Bank Limited of Rs. 60.000
Millions (Previous year Rs 90.000 Millions) is secured by first pari passu
charge on Fixed Assets of the Company situated at Bhandup and Nasik plants, both
present and future. 2. ECB loan availed from ICICI Bank Limited of USD 6.00
million (Previous year USD 8.00 million) equivalent to Rs. 275.700 Millions
(Previous year Rs. 367.600 Millions) is secured by first pari passu charge on
all movable and immovable properties of the Company situated at Bhandup and
Nasik plants, both present and future. 3. ECB loan availed from ICICI Bank Limited of USD 12.50
million (Previous year USD 12.50 million ) equivalent to Rs. 576.550 Millions
(Previous year Rs. 607.019 Millions) is secured by a first pari passu charge
on the Fixed Assets of the Company situated at Bhandup, Nasik and Halol,
Gujarat both present and future. The company is in the process of creating
the charge on its immovable properties located at Bhandup, Nasik and Halol,
Gujarat. 4. Term Loan availed from Yes Bank of Rs.333.333 Millions
has been fully paid off during the year. Pursuant to the repayment, the
charge created for the term loan has been satisfied. 5. Term Loan availed from Exim Bank of Rs. 375.000
Millions (Previous year Rs.50,0.000 Millions) and Corporation Bank of
Rs.437.500 Millions (Previous year Rs. 500.000 Millions) has been secured by
a first pari passu charge on the immovable property of the Company situated
at CEAT Mahal, Worli, Mumbai. 6. Project Term loan availed from Bank of India of Rs.
20,00.00 lacs (Previous year Rs.Nil), Bank of Baroda of Rs. 20,00.00 lacs
(Previous year Rs.Nil) and IDBI of Rs. 24.903 Millions (Previous year Rs.Nil)
is secured by a first pari passu charge on the immovable and movable
properties of the Company situated at Bhandup, Nasik and Halol, Gujarat both
present and future. The Company has created charge on the movable Fixed
Assets of the Company in favour of Bank of India and IDBI Bank Ltd. The
Company is in the process of creating the charge on its immovable properties
located at Bhandup, Nasik and Halol, Gujarat. 7. Working Capital facilities availed from Consortium of
Banks led by Bank of India are secured by hypothecation of first pari passu
charge on Inventories and Book debts and by second pari passu charge on
immovable properties of the Company situated at Bhandup, Nasik plants and
CEAT Mahal property at Worli. The Company is in process of creating the
second pari – passu charge on immovable properties situated at Halol,
Gujarat. 8. The vehicle loans availed from Banks and Financial
Companies are secured by way of hypothecation of the vehicles financed by
them.
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Auditors : |
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Name : |
N. M. Raiji and Company Chartered
Accountants |
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Address : |
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Tel No.: |
91-22-22870068 |
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Fax No.: |
91-22-56568494 |
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E-Mail : |
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Legal Adviser: |
Khaitan and Company Chartered Accountants |
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Address : |
4th and 5th Floors, R. K. Marg, Ballard Estate,
Mumbai-400 038, |
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Tel No.: |
91-22-56365000 |
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Fax No.: |
91-22-56365050 |
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E-Mail : |
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Joint ventures Limited: |
CEAT Kelani Ventures, |
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Associates : |
·
Associated CEAT Holdings Company Private Limited ·
CEAT-Kelani Associated Holdings Company Private
Limited ·
Associated CEAT Private Limited ·
CEAT-Kelani International Tyres Private Limited ·
Associated CEAT Kelani Radials Limited ·
Rado Tyres Limited. |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
46100000 |
Equity Share |
Rs.10/- each |
Rs.461.000 Millions |
|
3900000 |
Preference Shares |
Rs.10/- each |
Rs.39.000 Millions |
|
10000000 |
Unclassifed Shares |
Rs.10/- each |
Rs.100.000 Millions |
|
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|
Issued:
|
No. of Shares |
Type |
Value |
Amount |
|
34244222 |
Equity Share (Includes 1,463 (2,337) Shares offered on Right basis and
kept in abeyance) |
Rs.10/- each |
Rs.342.442 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
34243534 |
Equity Share |
Rs.10/- each |
Rs.342.435
Millions |
|
|
|
|
|
Notes:
Of the above Equity Shares
(a)
6,90,576 Shares of Rs. 10 each were allotted
pursuant to Schemes of Amalgamation without payment being received in cash.
(b)
40,40,223 Shares were allotted as fully paid Bonus
Shares by capitalisation of Share Premium and General Reserve.
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 |
342.435 |
342.435 |
342.427 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
5944.710 |
4541.380 |
4790.146 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6287.145 |
4883.815 |
5132.573 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3120.511 |
3981.243 |
2653.908 |
|
|
2] Unsecured Loans |
3417.944 |
2470.199 |
2122.077 |
|
|
TOTAL BORROWING |
6538.455 |
6451.442 |
4775.985 |
|
|
DEFERRED TAX LIABILITIES |
201.683 |
163.038 |
273.041 |
|
|
|
|
|
|
|
|
TOTAL |
13027.283 |
11498.295 |
10181.599 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
7689.278 |
7753.859 |
7866.208 |
|
|
Capital work-in-progress |
2338.380 |
195.610 |
34.788 |
|
|
|
|
|
|
|
|
INVESTMENT |
585.077 |
426.672 |
96.023 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4060.757
|
2194.163
|
3410.600 |
|
|
Sundry Debtors |
3763.161
|
3187.085
|
3079.082 |
|
|
Cash & Bank Balances |
1399.891
|
2015.184
|
415.870 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
1101.026
|
794.264
|
814.241 |
|
Total
Current Assets |
10324.835
|
8190.696
|
7719.793 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
4915.976
|
2613.513 |
|
|
|
Other Current Liabilities |
2630.824
|
2276.999
|
|
|
|
Provisions |
363.582
|
178.029
|
252.481 |
|
Total
Current Liabilities |
7910.382
|
5068.541
|
5535.213 |
|
|
Net Current Assets |
2414.548
|
3122.155
|
2184.580 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
13027.283 |
11498.296 |
10181.599 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
28074.760 |
23664.892 |
23299.667 |
|
|
|
Other Income |
421.487 |
491.300 |
225.351 |
|
|
|
TOTAL (A) |
28496.247 |
24156.192 |
23525.018 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials |
17282.569 |
17042.851 |
14780.964 |
|
|
|
Cost of Traded Goods Sold |
1631.364 |
1066.456 |
1430.205 |
|
|
|
Personnel expenses |
1926.804 |
1606.927 |
4713.832 |
|
|
|
Other Expances |
4653.978 |
3976.510 |
|
|
|
|
Increased / (Deceased) In Stock |
(225.575) |
(117.983) |
702.454 |
|
|
|
TOTAL (B) |
25269.140 |
23574.761 |
NA |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3227.107 |
581.431 |
2872.404 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
568.313 |
696.981 |
569.388 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2658.794 |
(115.550) |
2303.016 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
268.829 |
256.173 |
329.912 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2389.965 |
(371.723) |
1973.104 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
779.550 |
210.607 |
487.060 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
1610.415 |
(161.116) |
1486.044 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1084.440 |
1245.557 |
419.800 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
BALANCE CARRIED TO
THE B/S |
2373.102 |
1084.440 |
1245.500 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
4849.300 |
4859.400 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
6018.911 |
5345.290 |
|
|
|
Stores & Spares |
|
10.073 |
2.673 |
|
|
|
Capital Goods |
NA |
88.563 |
129.155 |
|
|
|
Others |
|
718.232 |
566.318 |
|
|
TOTAL IMPORTS |
NA |
6835.779 |
6043.436 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
47.03 |
(4.71) |
NA |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Sales Turnover |
7775.300 |
8426.100 |
8952.900 |
10009.200 |
|
Total Expenditure |
7385.800 |
7987.500 |
8538.300 |
9863.400 |
|
PBIDT (Excl
OI) |
409.500 |
438.600 |
414.600 |
145.800 |
|
Other Income |
1.000 |
1.400 |
0.000 |
1.600 |
|
Operating
Profit |
410.500 |
440.00 |
414.600 |
147.400 |
|
Interest |
119.900 |
132.900 |
178.600 |
228.900 |
|
Exceptional
Items |
0.000 |
0.000 |
(78.200) |
0.000 |
|
PBDT |
290.600 |
307.100 |
157.800 |
(81.500) |
|
Depreciation |
80.500 |
80.500 |
82.900 |
97.700 |
|
Profit
Before Tax |
210.100 |
226.600 |
74.900 |
(179.200) |
|
Tax |
71.400 |
73.900 |
24.800 |
(60.600) |
|
Reported PAT |
138.700 |
152.700 |
50.100 |
(118.600) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
138.700 |
152.700 |
50.100 |
(118.600) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
5.66
|
(0.63) |
6.32 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.52
|
(1.48) |
8.47 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.27
|
(2.33) |
12.66 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.38
|
(0.08) |
0.38 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.30
|
2.36 |
2.01 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.31
|
1.62 |
1.39 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE: Subject ended the year 2009-10 with net sales of Rs.28080 millions as against Rs.23670 millions in the previous year, registering a growth of 18.6%. The Company's profit after tax stood at Rs.1610.400 Millions as compared to a loss of Rs.161.100 millions during the same period last year. This was achieved due to smart and strategic raw material procurement, substantial reduction in interest burden on account of efficient working capital management and numerous cost reduction initiatives with higher productivity. The Company has been ale to marginally increase its market share of 2-3 wheeler and heavy/light commercial vehicle segments. A greater skew towards the more profitable replacement market was possible because of the better reach to end consumers through the Subject Shoppes and Subject Hubs. Revenues from the replacement segment grew from 66% in 2008-09 to 75 % this year. Sales in farm segment was impressive despite poor rains with a growth of 16%. Subject continues to be one of the largest exporters of tyres in the country. Despite the global slowdown, the company maintained exports at Rs.4770 millions at the same level as last year. Subject has continued its concerted effort to move closer to the end customers by setting up offices in Dubai and Brussels Middle East . This initiative also helped the Company to have a healthy order book and fetch better prices. FUTURE OUTLOOK With the prediction of a normal monsoon, demand from Farm and Manufacturing sectors is expected to remain strong. Increase in commodity prices can help revive demand for Off-the-road tyres. Two-three wheeler manufacturers have registered a strong growth in the recent past. The growth rally is expected to continue further. Subject would align its strategies to encash the potential opportunities. Currently, radialisation of the commercial vehicle segment in the country is approximately 10-12%.This is expected to go up to the extent of 30% in the next 3 years. The radial tyre project at Halol, Gujarat , is expected to be commissioned on schedule, by the third quarter of the current fiscal. This will help the Company to cater to the increasing Truck Bus Radials (TBR) and Passenger Car Radials (PCR) demand in the country and in the export market as well. On an overall basis they expect a robust growth in topline but the margins are expected to be under pressure due to substantial increase in cost of raw materials and higher interest and depreciation on account of new capacity creation. RESEARCH AND DEVELOPMENT The Company understands the need for emphasis on innovation in product and process technology and operational efficiencies and has invested in a new state of the art Research and Development Centre in Halol. The centre will have the most contemporary equipments for testing and development. The year 2009-10 saw significant R and D efforts to develop new raw materials, products and enhance the quality of tyres. Two new truck tyres that give higher mileage at high load and at higher speed respectively have also been launched. The new products developed have performed well in the domestic as well as international markets. In light of increasing raw material prices successful efforts were made in development of cheaper substitutes for costly raw materials without compromising on quality parameters. This has helped the company to not only reduce cost but also in optimizing material consumption.
Research and Development (R and D) 1. Specific areas in which R and D activities were carried out by the Company: * Development of new raw materials for improvement in quality, cost and compliance to regulations. * Development of alternate recipes for flexibility in using natural and synthetic rubbers. * Development of Compounds for high performance radial tyres. * Develop tyres with features that provide enhanced performance. * Development of new sizes for OEM's and Replacement market. * Develop TBR and PCR tyres with advanced features. * Value engineering projects. * Process design for productivity and energy saving. * Cycle time reductions. * Development of Agricultural tyres for specific applications. * Prototyping and virtual validations. * Test methods for testing tyres in field and test tracks. * Providing technical know-how to- - Associated CEAT (Private) Limited, Sri Lanka - Associated CEAT Kelani Radials (Private) Limited, Sri Lanka - CEAT Kelani International Tyres (Private) Limited, Sri Lanka - ACE Tyres Limited, Hyderabad - Innovative Tyres andTubes Project, Baroda - Zahi Rubbers, Kozhikode , Kerala. 2. Benefits derived as a result of above R and D: * Technology development and commercialisation. * Developed advanced products in passenger and commercial segment. * Reduced development cycles. * Product performance enhancement. * Improvement in productivity and cost. * Product range expansion. * Benefits to customer in mileage, ride, comfort and fuel consumption. * Usage of alternate materials. * Environment friendly products. 3. Future plans of action: * Setting up advanced research center. * Develop super premium tyres in the bias truck segments. * Developements in passenger radial segment: * High performance passenger radial tyres. * Winter tyres. * Energy saver tyres. * Eco friendly green tyres. * Develop Super Single radial truck tyres. * Partnering with OEM's for new developments. * Application of nano materials. * Develop alternate recipes. 4. Expenditure on R and D:
MANAGEMENT DISCUSSION AND ANALYSIS ECONOMIC OVERVIEW There was a distinct turnaround in the economic climate in 2009-10, post a challenging 2008-09. According to the Union Finance Minister, Mr. Pranab Mukherjee, the economy in 2009-10 is expected to grow by 7.2%, an impressive growth by global standards. Fuelled by earnings optimism and mostly firm global equities, the Bombay Stock Exchange climbed above 18,000 points for the first time in more than two years on April 7, 2010. One of the key drivers of the recent rally in Indian stocks, Foreign Institutional Investors (Ells) have pumped in nearly Rs.430000 Millions into the Indian markets between January and April 1, 2010, according to the data released by the Securities and Exchange Board of India. Heavy inflows from FIIs also propelled the Rupee to a 19-month high against the US Dollar on April 5, 2010. While inflation remains a concern, it is clear that recovery is firmly taking root with exports up quite sharply as depicted in the accompanying graph. The country's forex reserves have risen to a record USD 279.09 billion during the week ended April 2, 2010. Industrial production has also exhibited strong growth during the year. It was up 10.1% in the period April-February for 200910. The corresponding figure for 2008-09 was 3%.The above factors bode well for the economy as well as the tyre industry going forward. INDUSTRY OVERVIEW Global tyre industry Valued at approximately USD 120 billion, the global tyre industry, like its Indian counterpart, is highly concentrated with the top four players accounting for a major share of the total revenues. Passenger Cars (PC) and Light Commercial Vehicles (LCV) segments constitute a majority of the global tyre industry's product mix at around 60%. Heavy Commercial Vehicles (HCV) segment constitutes around 27% of the product mix. The extent of radialisation is much higher in developed nations than others. Radial tyres offer better fuel efficiency and work out to be more cost effective over the life of a tyre. Radialisation in the PC segment in the global tyre industry is more than 95%, Mille it is around 60% in the LCV and the HCV segments. Indian tyre industry The Indian tyre industry accounts for around 5% of the global demand as well as global supply of tyres. The industry has registered significant growth during the year on the back of an economic recovery with sales expected to touch Rs.263 billion in 2009-10, growing at a CAGR of 12-13% from Rs.234 billion in 2008-09. This growth is expected to be predominantly driven by an increase in volumes rather than average realisations where growth is expected to be restricted to 2-3%. Average realisation per kg of tyre is in the range of Rs.120-200. The Indian tyre industry is enjoying strong growth and will continue to do so in the near future on the back of several demand drivers that include the country's fast paced GDP growth, growth in the automobile industry, faster development of road infrastructure, increasing levels of radialisation as well as growing demand from the Off-The Road (OTR) segment. Operating margins of the tyre industry improved by 9001,000 basis points in the first nine months of 2009-10 due to a fall in raw material costs by around 10% during the first nine months of 2009-10 vis-a-vis the same period the year before. Raw material, (mainly comprising of natural rubber, Nylon Tyre Cord Fabric, carbon black, synthetic rubber, Styrene Butadiene Rubber, Poly Butadiene Rubber etc.) costs account for around 65% of net sales of the tyre industry. Due to the firming up of raw material prices in the September-December 2009 quarter, the operating margins for most players declined sequentially in the Q3FY10, after reaching a 20-year peak in the second quarter of 2009-10. Analysts estimate that operating margins of the industry will be around 13-14% in 2009-10, up sharply from 7-8% in 2008-09 due to softening of raw material prices in the first half of the fiscal and an increase in average price realisations. Market segments: 1. Replacement - The Replacement segment constitutes around 65.5% of the industry and is estimated to be valued at Rs.160 billion in 2009-10, growing at a steady pace of 10-11% on the back of an economic recovery. This segment is the most sought after amongst tyre manufacturers as the margins are much better in comparison to those in the Original Equipment Manufacturers (OEMs) segment. OEMs are few and enjoy higher bargaining power. 2. Original Equipment Manufacturers (OEMs) - This segment constitutes around 22.4% of the industry and is expected to be valued at Rs.50 billion in 2009-10, growing by around 20-21%. 3. Exports - Exports constitute approximately 12.1% of the industry and are expected to be valued at Rs 21 billion by 2009-10. The Middle East, South Africa , Sri Lanka and North America are key export markets for tyres. Auto segments Enabled by the Government's stimulus packages, auto demand has witnessed a significant revival following the economic recovery in the domestic market. The auto sector is expected to post y-o-y growth of around 20% in 2009-10. Commercial vehicle (Medium and Heavy Commercial Vehicles (MHCV) + LCV) sales are expected to grow by around 29-30% in 2009-10, in contrast to a 24% drop in volumes observed in 2008-09. Commercial vehicle tyres constitute the major share of production in the Indian tyre industry. BUSINESS OVERVIEW CEAT Limited, the flagship company of RPG enterprises, is one of India Renowned for its world class quality and durability, CEAT manufactures the widest range of tyres for all user segments including heavy-duty Trucks and Buses, LCV, Earthmovers and Forklifts (specialty segment), PC, tractors, trailers, scooters (2/3 wheelers), motorcycles, auto-rickshaws and OTR. CEAT enjoys a major share in the light truck and truck tyre segments and has a strong presence in both the domestic as well as international markets. The Company exports tyres to nearly 112 countries across America , Europe, Africa and Asia . Subject products have found high acceptance with several OEMs in Europe despite stiff competition from other global players. Over the years, the Company's export basket has improved both in terms of price realisations and profitability. CEAT has 2 manufacturing plants, situated in Mumbai (Bhandup), Maharashtra; Nasik , Maharashtra . Subject robust and extensive network consists of 34 regional offices and over 3500 dealers of which approximately 100 are exclusive dealers running the CEAT SHOPPE outlets for the PC segment and 96 run the CEAT HUBS for the Truck and Bus segments.
DISCUSSION ON FINANCIAL PERFORMANCE Income: The Company recorded a Total Income of Rs.28490 Millions, as compared to Rs.24150 millions for the previous year, a growth of 18%. EBIDTA: The Company's EBIDTA stood at Rs.3227.000 millions against Rs.581.300 millions in 2008-09, an increase of 455.05%. PAT: The Profit after Tax (PAT) of the Company stood at Rs.1610.400 Millions against a loss of Rs.161.000 Millions in 2008-09. OPPORTUNITIES AND THREATS According to the World Economic Outlook report (2010) by the International Monetary Fund (IMF), the Indian economy is projected to grow at 8.75% in 2010 and 8.5% in 2011, on the back of strong domestic demand and robust business confidence. This growth reflects a strong growth in exports as well as a continued boost from the inventory cycle along with a rise in business investment in response to high capacity utilisation and strong business confidence. High GDP growth, the infrastructure boom in the country, rising per capita disposable income, strong growth in the auto industry which ensures healthy OEM demand and increasing vehicle population indicating sustained replacement demand, the emerging Truck and Bus radialisation opportunity (with the ban on overloading of trucks and the Government emphasis on improving road infrastructure, there is immense scope for growth as radialisation levels in CVs is abysmal at 10-12%), expansion in the high margin OTR segment and the under penetrated PC market are factors that indicate strong growth in the Indian tyre industry in the near future. With continued recovery in OEM off take and expected improvement in replacement demand, analysts forecast the tyre industry to grow by 13-14% in 2010-11 (in tonnage terms). Sales are expected to period. Capacity utilisation is likely to remain around 86-87%. However, due to increasing raw material prices and the limited ability of companies to pass on costs to end users, operating margins are expected to be under pressure. Experts predict a 2-3% rise in tyre prices due to an increase in raw material prices. This could be higher in the event of the withdrawal of duty benefits announced in the stimulus package by the Government. Due to this, growth in realisations is expected to remain in the range of 2-3%. With the revival in economic activity and the positive impact of improving industrial activity along with a stable credit scenario, demand from OEMs is estimated to grow at a robust 13-14% (in tonnage terms) in 2010-11 while replacement demand is expected to grow at 14-15%. All key vehicle segments including MHCV, LCV, PC and UV are expected to witness strong growth in the range of 14-15% in 2010-11. Analysts expect exports to grow at 4-5% in the same period on the back of an expected revival in global auto markets, coupled with restrictions on Chinese tyre exports to developed countries such as USA All this bodes well for CEAT. Given its experience and expertise, the Company is all set to maximise this huge opportunity. OUTLOOK CEAT exhibits a strong potential and makes continuous efforts to emerge as the preferred tyre maker not just in India Company expects traction in its exports, given its established presence across countries. CEAT has undertaken a number of initiatives to capitalise on the huge opportunity in the tyre industry. The Company plans to expand its capacity by setting up a 130 Tonnes Per Day (TPD) radial tyre facility at Halol in Gujarat . The plant will manufacture truck, bus, light truck and passenger car radials. A substantial proportion of the total production is slated for exports. A brown-field expansion of 30 TPD at the Company's Nasik The Company also plans to enter into the OTR tyre maintenance business in the current fiscal. A revenue model based on servicing is being prepared. Simultaneously, the Company is exploring the option of making this into a separate business vertical, offering end-to-end maintenance solutions for a wide variety of tyres. Further, plans to launch 20 WMC's in India Besides, the Company's proposed shift of its Bhandup, Mumbai plant to Ambernath in Thane, Maharashtra will lead to a significant improvement in margins with the new plant being more energy efficient and the finished goods being produced not coming under the Octroi purview. Considering the above, the future of the Company looks promising with the coming years expected to witness a trend of high growth for the business.
WEBSITE DETAILS:
Company Overview:
On
the road since 1958, subject has run up to be one of the best tyre
manufacturers in the business. They not only make trailblazing tyres, but also
market tubes and flaps. And that's not all. At CEAT they personify their
business; tough yet smooth, secure yet ready to explore the undaunted.
They
are young and revving to go; with a maturity that comes with years of market
presence. More than 3000 Cr annual turnover, an impressive list of clients and
OEMs, various awards and certificates are statistics that could speak for them.
But we'd rather scorch the road with their performance!
They
believe that tyres are not just accessories; they are the force that moves the
aspirations. With them you get to choose from a wide range of tyres that suit
the needs and vehicle type. (Not to mention, their radials are racers in the
world market!) Strength is one of the most important attributes of their
products, which complements their solid foundation as a part of RPG
Enterprises. Their commitment to quality ensures that you have a safe ride,
always. So go on, defy destiny.
CEAT Ltd signs Agreement to acquire
global rights of the Brand CEAT from Pirelli & C. SpA
Mumbai, Nov 29: CEAT Ltd., one of the leading tyre
manufacturers of
CEAT Ltd. is currently the owner of
the CEAT brand in 9 South Asian countries:
This acquisition will enable the
company to export radial and cross-ply tyres to the whole world, under the CEAT
brand name. CEAT currently exports its tyres to Europe and
Post acquisition, all rights, title
and interest in the CEAT brand will pass on to CEAT Ltd. in the territories
where Pirelli previously owned registrations for the CEAT brand and for brand
registration classes therein identified . However, Pirelli will continue to
hold exclusive license to use the brand CEAT in relation to both radial tyres
in Europe, Latin America,
About CEAT Ltd:
CEAT Ltd., the flagship company of
RPG Enterprises, was established in 1958. Today, CEAT is one of
About RPG Enterprises RPG Enterprises is one of
For further information :
Sampark Public Relations:
Vikas Sahani: 9892629404
Archana Pradhan: 9820330505
Rajlaxmi B: 9820054726
CEAT records Rs. 832 Cr net
sales, grows by 21.4% over Q2 FY10
o CEAT Operating PBT to Net
Sales stands at 2.7%, same as Q1 FY11
Mumbai, October 20, 2010: RPG
Group’s flagship company CEAT Ltd., a leading tyre manufacturer, has grown
topline in Q2 by 21.4% over the corresponding quarter last year. CEAT has been
able to maintain Operating PBT to Net Sales at 2.7%, the same as the previous
quarter. Despite a sequential growth of 7.7% in net sales, margins have
remained flat due to high raw material costs.
Net Sales Turnover has increased
by 21.4% over Q2 FY10 and 7.7% over Q1 FY11. Net sales in H1 stood at Rs. 1604
cr and EBITDA margin in Q2 FY11 has been 5.3%, same as Q1 FY11.
Announcing the results, Mr. Paras
K. Chowdhary, MD, CEAT Ltd. said, “Despite a steep hike in raw material
prices, we have maintained our margin at the same level as the previous
quarter, through price increase and volume growth. We are commissioning our
radial plant at Halol and commercial production will start next month. CEAT is
strongly moving forward with its plans for capacity building for Radials,
Channel expansion, and Brand building in FY 10-11. These steps should lead to
margin expansion in future.”
ABOUT
CEAT
CEAT Tyres, the
flagship company of RPG Enterprises, with an annual turnover of more than Rs.
3000 crore, was established in 1958. Today, CEAT is one of
CEAT has three
manufacturing plants - Mumbai (Bhandup), Nasik & Sri Lanka. The company
currently exports tyres to nearly 110 countries across
About RPG
Enterprises
RPG Enterprises
is one of
Media contacts:
Sampark Public Relations –
Mumbai
Archana Pradhan – 9820330505, archana.pradhan@sampark.com
Neha Gupta – 9920958532, neha.gupta@sampark.com
Sweta Goyal – 9324903253, sweta.goyal@sampark.com
CMT REPORT (Corruption, Money Laundering
& Terrorism]
The Public Notice
information has been collected from various sources including but not limited
to: The Courts,
1] INFORMATION ON DESIGNATED PARTY
No records exist designating subject or any
of its beneficial owners, controlling shareholders or senior officers as
terrorist or terrorist organization or whom notice had been received that all
financial transactions involving their assets have been blocked or convicted,
found guilty or against whom a judgement or order had been entered in a
proceedings for violating money-laundering, anti-corruption or bribery or
international economic or anti-terrorism sanction laws or whose assets were
seized, blocked, frozen or ordered forfeited for violation of money laundering
or international anti-terrorism laws.
2] Court Declaration :
No records exist
to suggest that subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited
transactions or with designated parties.
3] Asset Declaration :
No records exist to suggest that the
property or assets of the subject are derived from criminal conduct or a
prohibited transaction.
4] Record on Financial Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No available information exist that suggest
that subject or any of its principals have been formally charged or convicted
by a competent governmental authority for any financial crime or under any
formal investigation by a competent government authority for any violation of
anti-corruption laws or international anti-money laundering laws or standard.
8] Affiliation with Government :
No record exists to suggest that any
director or indirect owners, controlling shareholders, director, officer or
employee of the company is a government official or a family member or close
business associate of a Government official.
9] Compensation Package :
Our market survey revealed that the amount
of compensation sought by the subject is fair and reasonable and comparable to compensation
paid to others for similar services.
10] Press Report :
No
press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as
part of its Due Diligence do provide comments on Corporate Governance to
identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our Governance
Assessment focuses principally on the interactions between a company’s
management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject is not
known to have contravened any existing local laws, regulations or policies that
prohibit, restrict or otherwise affect the terms and conditions that could be
included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.07 |
|
|
1 |
Rs.72.97 |
|
Euro |
1 |
Rs.63.57 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
62 |
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.