MIRA
INFORM REPORT
|
Report Date : |
04.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
ESCORTS LIMITED |
|
|
|
|
Registered
Office : |
SCO -232, 1st Floor, Sector – 20, Panchkula – 134109,
Haryana |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
30.09.2011 |
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|
|
|
Date of
Incorporation : |
17.10.1944 |
|
|
|
|
Com. Reg. No.: |
55-039088 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1023.100 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74899HR1944PLC039088 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELE00069G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACE0074B |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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|
|
|
Line of Business
: |
Manufacturers of
Agri Machinery, Auto-Components and Railway Equipment. |
|
|
|
|
No. of Employees
: |
5338 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (52) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 71000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
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|
|
Comments : |
Subject is a well established and reputed company having a good track record.
There appear dip in the profitability during the current year. However, general financial position of the company seems to be strong
liquidity of the company is good. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can 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.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces of
its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to become
a major exporter of information technology services and software workers. In
2010, the Indian economy rebounded robustly from the global financial crisis -
in large part because of strong domestic demand - and growth exceeded 8%
year-on-year in real terms. However, India's economic growth in 2011 slowed
because of persistently high inflation and interest rates and little progress
on economic reforms. High international crude prices have exacerbated the
government's fuel subsidy expenditures contributing to a higher fiscal deficit,
and a worsening current account deficit. Little economic reform took place in
2011 largely due to corruption scandals that have slowed legislative work.
India's medium-term growth outlook is positive due to a young population and
corresponding low dependency ratio, healthy savings and investment rates, and
increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Fund Based = BBB |
|
Rating Explanation |
Having moderate degree of safety regarding timely servicing of
financial obligation it carry moderate credit risk |
|
Date |
April 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
SCO 232, 1st Floor, Sector 20, Panchkula - 134109, |
|
Tel. No.: |
91-172 – 4416938 |
|
Fax No.: |
91-172 – 4416938 |
|
E-Mail : |
|
|
Website : |
|
|
Location : |
Owned |
|
|
|
|
Corporate Office : |
15/5, |
|
Tel. No.: |
91-129-2250222 |
|
Fax No.: |
91-129-2250058 |
|
|
|
|
Administrative Office and Components Plants: |
Auto Suspension
Product Division |
|
|
18/4, Mathura Road, Faridabad-121007, |
|
Tel. No.: |
91-129-2284911 |
|
Fax No.: |
91-129-2264939 |
|
|
|
|
Engineering
Division: |
Railway
Equipment Division |
|
|
Plot No. 115, Sector-24, Faridabad-121005, |
|
Tel No.: |
91-129-2232371 |
|
Fax No.: |
91-129-2232146 |
|
|
|
|
Tractor Assembly,
Transmission and Engine Plant: |
Plot No. 2 and 3, Sector 13, |
|
Tel No.: |
91-129-2291230 |
|
Fax No.: |
91-129-2250009 |
|
|
|
|
Factory: |
Plot No.9, Sector 1, Integrated Industrial Estate, Pant Nagar, District
– Rudrapur, Udham Singh Nagar, Uttaranchal – 263145, |
|
|
|
|
Escorts Training
& Development Centre |
Escorts Institute of Farm Mechanization (EIFM) Anekal Road, CHANDAPUR, P.O, Bangalore – 500 081, Karnataka, India |
|
Tel No.: |
91-80-27801377 / 27804175 |
DIRECTORS
As on 30.09.2011
|
Name |
Mr. Rajan Nanda |
|
Designation |
Chairman and Managing Director |
|
Age |
59 Years |
|
Qualification |
Senior |
|
Experience |
41 Years |
|
Date of Joining |
03.04.1970 |
|
Previous Employment |
Harparshad & Company Limited - Director |
|
|
|
|
Name |
Mr. Nikhil Nanda |
|
Designation |
Executive Director and COO |
|
Age |
30 years |
|
Qualification |
BBA |
|
|
|
|
Name |
Dr. P. S. Pritam |
|
Designation |
Director |
|
Qualification |
M. A., LLB, Ph. D. |
|
|
|
|
Name |
Dr. S. A. Dave |
|
Designation |
Director |
|
Qualification |
M.A. [Economics] Ph.D. |
|
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 |
|
|
|
|
Name |
Mr. S C Bhargava |
|
Designation |
Director |
|
|
|
|
Name |
Dr. M. G. K. Menon |
|
Designation |
Director |
|
Qualification |
B.Sc., M.Sc., Ph.D., D.Sc [H.C.], F.R.S. |
|
Other
Directorships |
Indfos Industries Limited |
|
|
|
|
Name |
Mr. Hardeep Singh |
|
Designation |
Director |
KEY EXECUTIVES
|
Name |
Mr. G. B. Mathur |
|
Designation |
Vice President –
Law and Company Secretary |
|
Qualification |
B. Sc. ACS, LLB |
|
|
|
|
Name |
Mr. O. K. Balraj |
|
Designation |
Vice President and Group Chief Financial
Officer |
|
|
|
|
Name |
Mr. Ishan Mehta |
|
Designation |
Executive Vice President, HR and ER |
|
|
|
|
Name |
Mr. S. Sridhar |
|
Designation |
Chief Executive Officer |
|
|
|
|
Name |
Mr. Kanwal Kishore Vij |
|
Designation |
ED and Chief Executive Officer |
|
|
|
|
Name |
Mr. Vikram Singhal |
|
Designation |
ED and Business Head |
|
|
|
|
Name |
Mr. Lalit K Phawa |
|
Designation |
Chief Executive Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2012
|
Category of
Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1398427 |
1.14 |
|
|
12756582 |
10.41 |
|
|
37300031 |
30.43 |
|
|
37300031 |
30.43 |
|
|
51455040 |
41.98 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
51455040 |
41.98 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
79573 |
0.06 |
|
|
3131392 |
2.55 |
|
|
1531867 |
1.25 |
|
|
14932747 |
12.18 |
|
|
19675579 |
16.05 |
|
|
|
|
|
|
10208985 |
8.33 |
|
|
|
|
|
|
27327987 |
22.29 |
|
|
13909287 |
11.35 |
|
|
51446259 |
41.97 |
|
Total Public shareholding (B) |
71121838 |
58.02 |
|
Total (A)+(B) |
122576878 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
122576878 |
0.00 |
BUSINESS DETAILS
|
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 : |
Not Available |
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Imports : |
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Countries : |
Not Available |
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Terms : |
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Selling : |
Not Available |
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Purchasing : |
Not Available |
PRODUCTION STATUS (As
on 30.09.2011)
|
Particulars |
|
Unit |
Installed
Capacity* |
Actual
Production |
|
**Agriculture Tractors |
|
Nos |
98,940 |
63744 |
|
**Internal Combustion Engine **Engine for Agricultural Tractors |
|
Nos |
98,940 |
66821 |
|
Round and Fiat Tubes Heating Elements (Meters) |
|
Meters |
180,000 |
59665 |
|
Double Acting hydraulic Shock Absorbers for railway Coaches |
|
NOs |
36,000 |
19098 |
|
Centre Buffer Copiers |
|
Nos |
1,200 |
476 |
|
Automobile Shock Absorbers Telescopic Front Fork McPherson struts |
|
Nos |
4,000,000 |
1867369 |
|
Brake Block |
|
Nos |
1,800,000 |
699714 |
|
All types of brakes used by Railways |
|
Nos |
36,000 |
7472 |
Notes :
*(a) As certified
by the management and not verified by the auditors, being a technical matter.
(b) Sales and
production pertain to finished goods only. Opening and Closing stocks include partly
executed contracts but exclude stocks held by the consuming/selling divisions.
(c) In item no. 3
Installed capacities and actual production are in meters, rest are in numbers.
**(d) Opening and
Closing stocks of items of Research and Development have been excluded.
(e) Opening and
Closing stocks are inclusive of Work-in-Progress.
(f) Item no. 2 is not included in trading/finished stock.
GENERAL INFORMATION
|
No. of Employees : |
5338 [Approximately] |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
S N Dhawan and Company Chartered Accountants |
|
Address: |
C37, Connaught Place, New Delhi – 110001, India |
|
Tel. No.: |
91-11-43684444 |
|
Fax. No.: |
91-11-43684445 |
|
|
|
|
Internal Auditors : |
|
|
Name : |
Grant Thornton Chartered Accountant |
|
|
|
|
Consultants
& Advisors: |
|
|
|
|
|
Joint Venture : |
|
|
|
|
|
Subsidiary
Company Domestic : |
Address: Plot No. 2, Sector-13, Faridabad-121007, Tel No.: 91-129-2283073/ 2286694 Fax No.: 91-129-2283065
|
|
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 |
|
|
|
|
Others Domestic
: |
|
|
|
|
|
Others Overseas
: |
|
CAPITAL STRUCTURE
As on 30.09.2011
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 |
|
|
Total |
|
Rs.
8500.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
105,618,036 |
Equity Shares |
Rs. 10/- each |
Rs. 1056.200 millions |
|
|
Less : Amount receivables from Escort Employees Benefit and Welfare
Trust (face value of 3313,612 shares allotted to Trust) |
|
Rs. 33.100 millions |
|
|
Total |
|
Rs.1023.100 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 - 10,505,306) 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 - 4,195,878) 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 - 268,000) 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 |
30.09.2011 |
30.09.2010 |
30.09.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1023.100 |
1022.800 |
907.100 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
16961.400 |
16355.500 |
13534.800 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
17984.500 |
17378.300 |
14441.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3598.700 |
2837.800 |
2537.900 |
|
|
2] Unsecured Loans |
127.300 |
148.200 |
114.700 |
|
|
TOTAL BORROWING |
3726.000 |
2986.000 |
2652.600 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
21710.500 |
20364.300 |
17094.500 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
14618.800 |
14497.100 |
14569.000 |
|
|
Capital work-in-progress |
535.200 |
194.300 |
107.100 |
|
|
|
|
|
|
|
|
INVESTMENT |
3658.000 |
3658.000 |
2358.000 |
|
|
DEFERREX TAX ASSETS |
164.400 |
50.900 |
278.400 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3273.600
|
2955.000
|
1994.900
|
|
|
Sundry Debtors |
3405.300
|
3326.200
|
3291.500
|
|
|
Cash & Bank Balances |
2871.900
|
1744.100
|
1648.000
|
|
|
Other Current Assets |
71.400
|
8.200
|
150.700
|
|
|
Loans & Advances |
2708.500
|
2588.600
|
1222.000
|
|
Total
Current Assets |
12330.700
|
10622.100
|
8307.100
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
7451.300
|
5572.300
|
3474.400
|
|
|
Other Current Liabilities |
1367.700
|
1738.000
|
3792.700
|
|
|
Provisions |
796.300
|
1367.300
|
1312.200
|
|
Total
Current Liabilities |
9615.300
|
8677.600
|
8579.300
|
|
|
Net Current Assets |
2715.400
|
1944.500
|
(272.200)
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
18.700 |
19.500 |
54.200 |
|
|
|
|
|
|
|
|
TOTAL |
21710.500 |
20364.300 |
17094.500 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.09.2011 |
30.09.2010 |
30.09.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
32101.500 |
27457.300 |
21577.700 |
|
|
|
Other Income |
413.400 |
189.400 |
223.100 |
|
|
|
Income from Investments |
0.000 |
1.000 |
15.400 |
|
|
|
TOTAL
(A) |
32514.900 |
27647.700 |
21816.200 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing, Material and Operating Expenses |
24105.500 |
19518.300 |
15065.600 |
|
|
|
Sales and Administration Expenses |
3384.900 |
2924.000 |
2371.500 |
|
|
|
Personnel Expenses |
3279.200 |
2892.400 |
2384.300 |
|
|
|
Amortization of Misc. Expenditure |
09.400 |
49.300 |
113.100 |
|
|
|
TOTAL (B) |
30779.000 |
25384.000 |
19934.500 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1735.900 |
2263.700 |
1881.700 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
255.100 |
117.400 |
472.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1480.800 |
2146.300 |
1409.100 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
379.700 |
385.400 |
378.400 |
|
|
|
|
|
|
|
|
|
|
Exceptional
Items |
94.900 |
(119.300) |
(79.900) |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1006.200 |
1880.200 |
1110.600 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(194.700) |
504.700 |
213.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1200.900 |
1375.500 |
897.300 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
60.000 |
68.800 |
22.400 |
|
|
|
Debenture Redemption Reserve |
0.000 |
0.000 |
261.300 |
|
|
|
Proposed Dividend |
158.400 |
162.000 |
90.700 |
|
|
|
Tax on Dividend |
25.700 |
26.900 |
15.400 |
|
|
BALANCE CARRIED
TO THE B/S |
956.800 |
1117.800 |
507.500 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Export |
2152.800 |
638.100 |
1542.900 |
|
|
|
Other Earnings |
98.900 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
2251.700 |
638.100 |
1542.900 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
85.700 |
130.700 |
104.000 |
|
|
|
Components & Spare Parts |
294.400 |
85.700 |
213.600 |
|
|
|
Capital Goods |
178.600 |
48.300 |
14.700 |
|
|
TOTAL IMPORTS |
558.700 |
264.700 |
332.300 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
|
|
|
|
|
|
Basic |
11.74 |
14.67 |
9.89 |
|
|
|
Diluted |
11.66 |
14.42 |
9.64 |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.12.2011 |
31.03.2012 |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd Quarter |
4th
Quarter |
5th
Quarter |
|
Net Sales |
8297.700 |
7950.700 |
8623.700 |
8234.000 |
1,0281.800 |
|
Total Expenditure |
7963.900 |
7512.800 |
8065.100 |
7768.400 |
9752.000 |
|
PBIDT (Excl OI) |
333.800 |
438.000 |
558.600 |
465.700 |
529.800 |
|
Other Income |
0.000 |
101.800 |
112.300 |
83.000 |
135.900 |
|
Operating Profit |
333.900 |
539.800 |
670.900 |
548.700 |
665.700 |
|
Interest |
114.200 |
209.700 |
179.700 |
220.800 |
214.500 |
|
Exceptional Items |
(18.400) |
3.400 |
(0.700) |
5.200 |
(8.700) |
|
PBDT |
201.300 |
333.400 |
490.500 |
333.100 |
442.500 |
|
Depreciation |
97.300 |
96.200 |
106.900 |
126.700 |
130.300 |
|
Profit Before Tax |
104.000 |
237.200 |
383.600 |
206.300 |
312.300 |
|
Tax |
(4.700) |
55.900 |
114.700 |
17.500 |
30.900 |
|
Provisions and Contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
108.700 |
181.300 |
268.900 |
188.800 |
281.400 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustment |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
108.700 |
181.300 |
268.900 |
188.800 |
281.400 |
KEY RATIOS
|
PARTICULARS |
|
30.09.2011 |
30.09.2010 |
30.09.2009 |
|
PAT / Total Income |
(%) |
3.69
|
4.97
|
4.11
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.13
|
6.85
|
5.15
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.71
|
7.48
|
4.85
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.06
|
0.11
|
0.08
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.28
|
0.67
|
0.78
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.28
|
1.22
|
0.97
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
---------------------- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
No |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
DETAILS OF LITIGATIONS
IN THE HIGH COURT OF
DELHI AT NEW DELHI
#23
O.M.P. 630 of 2012
ASIM KUMAR MONDAL..... Petitioner
Through: Mr. Vishnu Kant Pandey, Advocate.
Versus
M/S ESCORTS LIMITED and ORS. ..... Respondents
Through Mr. P.R. Sikka with
Mr. Amiet Sikka, Advocates for R-1.
CORAM: JUSTICE S.
MURALIDHAR
ORDER
07.11.2012
1. A correct copy of the paper-book will be served on counsel for Respondent No. 1 within two days from today. Reply, if any, within six weeks thereafter. Rejoinder, if any, thereto before the next date
2. Fresh notice to Respondents 2 and 3 returnable on 18th March 2013.
3. The request sent to the sole Arbitrator has been returned unserved with the remarks? locked?.
4. Counsel for the parties are permitted to contact the sole Arbitrator, collect the arbitral record and file it in Court before the next date.
S. MURALIDHAR, J.
NOVEMBER 07, 2012
FINANCIAL PERFORMANCE
The Company’s Net
Revenue increased 17.6 per cent to Rs. 32514.900 Millions in 2010-11 from Rs.
27647.700 Millions in 2009-10. The sale of tractors increased 5.5 percent to
63,420 in 2010-11 from 60,086 in 2009-10.
Earnings before
Interest, Depreciation, Amortisation (EBITDA) stood at Rs 1745.300 Millions in
2010-11 as against Rs. 2313.000 Millions in 2009-10.
Profit Before Tax
(PBT) stood at Rs. 1006.200 Millions in 2010-11 as against 1880.200 Millions in
2009-10 and Profit After Tax (PAT) stood at Rs. 1200.900 Millions as against
Rs. 1375.500 Millions in the previous year. Earnings per share stands at
Rs.11.74 for the current year vis a vis Rs.14.67 last year.
SEGMENT PERFORMANCE
The Escorts Agri
Machinery division grew 19.3 per cent to Rs. 29511.800 Millions in 2010-11 from
Rs. 24737.900 Millions in 2009-10. The sale of tractors increased by 5.5
percent to 63,420 from 60,086 in the previous year. The EBIT in this division
stood at Rs. 1765.600 Millions against Rs. 2233.600 Millions in the last year.
The Escorts Auto Products
division grew 11 per cent to Rs. 1230.400 Millions in 2010-11 from Rs. 1108.900
Millions in 2009-10. The EBIT stood at Rs. (172.400) Millions against Rs.
(173.300) Millions last year.
The Escorts
Railway Products division registered sales of Rs. 1922.700 Millions against Rs.
1977.600 Millions in the last year. The EBIT stood at Rs.241.500 Millions
against Rs. 228.400 Millions last year. The EBIT margins improved from last
year at 11.5 per cent to 12.6 percent in the current financial year.
COMPANY’S PERFORMANCE
In line with its
consistent focus on Indian agricultural growth, the Company invested
significant (over one year) engineering and product development effort to
launch the Escorts ‘Jai Kisan Series’. This is a path-breaking initiative that
recognises the new market order for varied needs of the Indian farmer, changing
tractor usage for specialised applications and use of modern and heavy-duty
implements and attachments, thereby offering wider options for agricultural,
infrastructure as well as specialised applications for land development
activities.
Promoting the
thought behind this innovation through its slogan ‘Ab kaam jaisa, tractor
waisa’, the new initiative has been launched in the markets of
The Company’s
Railway division has signed an exclusive agreement for the supply of disc brake
systems for railway coaches with the Czech Republic based DAKO-CZ a.s. , a
globaly renowned company in railway braking equipment systems. This partnership
will enable Escorts to offer cutting-edge technology and world-class disc
braking systems for LHB design ‘High Speed Passenger Coaches’ of the Indian
Railways.
Today, the Company
is investing in critical technology-oriented tasks to introduce new products
and provide complete solutions to realise the modernisation plans of Indian
Railways. The agreement with DAKO-CZ will unleash new business streams for
Escorts in the domain of high-end disc braking system. It will give the
organisation an edge over competition, both in terms of quality of products as
well as price.
In the
construction equipment division, the Company has launched various models to
suit customer needs. It has introduced new variants of its Pick-n-Carry cranes
in Rajasthan – HYDRA 1242 (12T capacity crane with 13m reach with option of 3
part standard boom and 3 part slotted boom) and HYDRA 1665 (16T capacity crane
with 19m reach). These models will cater to the rising market demand for
high-end cranes. Keeping the need and requirements of the hiring segment, the
Company also introduced HYDRA 14 (with straight axle).
OUTLOOK
a). Agri machinery
Industry research
projects domestic tractor sales to increase at 8-10 per cent CAGR from 2010-11
to 2015-16 as against 12 per cent CAGR from 2004-05 to 2009-10. The overall
decadal average for tractors has been 6-7 per cent over the last three decades.
The experts estimate this average to be higher going ahead, with reducing
replacement cycles, stable farm income and increased focus of government on
agri and rural development. The exports are also expected to surge by about
40-45 per cent in 2010-11 and record a CAGR of 17-18 per cent by 2014-15,
chiefly on account of increasing demand from the African countries, coupled
with recovery in the
b). Auto suspension
Auto sales
continued to be healthy across the industry notwithstanding the signs of
expected slowdown, rising interest rates, tightening credit, commodity
inflation (translating into higher vehicle prices) and higher fuel prices. Cars
are the only segment, which witnessed weak growth YOY, dragged down by few
large OEMS.
The industry is
positive on the automobile component sector, driven by strong OEM volume growth
(passenger cars, commercial vehicles and 2-wheelers) as well as its significant
capacity expansion plans over the ensuing two years. The auto component
manufacturers would have a higher bargaining/ pricing power, supported by high
replacement demand and superior technology and R and D.
The Company’s Auto
Products Division is well aware of the challenges in the wake of increasing competition,
and is equipped to handle those challenges. They believe that the following
measures that they have undertaken will keep us ready for the changes going
forward:
Rejuvenating their
brand
Escorts’ brand rejuvenation
is going to be achieved through business vertical of consumable product
division, enabling the flag bearers in the field to enter into any auto shop
and sell at least one product to every shop owner.
Advertising and
internet marketing efforts
Traditionally,
this market is dominated by personal selling mode of promotion. Advertising and
publicity creates very low tremors, whenever applied by top end brands at
consumption levels. The scenario will encounter slow change in favour of
internet selling through cataloguing. The Indian version of web portal Tecdoc
(ESCOMP) will be launched by Escorts and is expected to play a dominant role in
2014-15.
Supply chain
revamping
The supply chains
are being designed to meet GST loaded One India Market with Delivery time of
48-72-96 hours at retail outlet from the warehouse on hub and spoke network.
Adoption of latest
technology
Inventory software
will be in place for better demand forecasting models with inventory controls
and global standard warehousing facility to develop an expertise, which forces
incoming global giants to opt for Escorts facility for selling and distribution
network.
c). Railway equipment
The Company is one
of the key suppliers to the Indian Railways for products including brake systems,
couplers and shock absorbers, among others. The wide product range, combined
with in-house R and D capabilities will enable the Company to capture the
immense opportunity from the Indian Railways capital outlay over the next
decade.
The majority of
Railway components division is aimed at Indian Railways, with more than 90 per
cent of the total turnover coming from the Indian Railways supplies. This
division is into three aspects of Indian railways --- safety, comfort and
environment. The bulk of their supplies are into safety aspect like brake
systems, couplers and brake blocks. Quality is the main deciding factor in this
segment and Indian Railways is never known for any compromise on quality, when
it comes to safety segment. Thus assuring quality and at the same time ensuring
their brand association with quality will be marketing formula. Indian Railways
has always been a quality-focused customer and because of the same reason the
main priority of Railway Division’s marketing plan is to associate quality with
Escorts brand image.
d). Construction equipment
Following a surge
in the infrastructure industry, the construction equipment market is expected
to grow as there is a direct link between construction equipment and
infrastructure development. Government of
The construction
equipment market will foresee a significant demand from sectors, such as power,
road, railways, irrigation, port, airport and real estate. A majority of this
demand has been created due to the initiative and investment made by the
government.
Some of the awards
and accolades won by the Company are as follows:
a). Greentech
Environment Excellence Award-2011:
The Company is
pleased to announce that ESCORTS LIMITED – Knowledge Management Centre (KMC)
has bagged the Gold Category award in Engineering Sector instituted by
Greentech Foundation,
b). Escorts Agri
Machinery (EAM) wins accolades at INSSAN:
Employees of EAM
participated in various competitions organised by the Indian National Suggestion
Scheme Association New Delhi (INSSAN) at ESSEX farms, Convention Centre,
c). Escorts won
Flower Festival Awards 2011 organised by Haryana Urban Development Authority.
d). Recognition of
Escorts R and D Centre renewed for next five years i.e. up to 31st March 2016
based on R and D Projects under taken during last three years.
e). Y their
Company was the First Winner in Solid Model Contest 2011- this award is about
the focus on 3D imaging and predictive analysis to reduce the number of
physical prototype to save time, cost and energy consumption.
f). Escorts
Limited receives prestigious Haryana State Safety Awards.
MANAGEMENT DISCUSSION AND ANALYSIS
Key Economic
Trends
Against the
backdrop of a benign macro-economic environment in
The agricultural
sector has grown 7.5 per cent in the quarter ended March 2011 vis-à-vis a
growth of 9.9 per cent registered in the previous quarter, driven primarily by
bumper Rabi harvest. The agricultural sector grew by 1.1 per cent during the
same period of last year. The quarter ending June 2011 grew 3.9 per cent
against 2.4 per 2011-12 cropping season. The total foodgrain production is
estimated at 123.9 MT as compared to 120.2 MT in 2010-11, a 3.1 per cent
increase.
Domestic tractor
sales grew by about 20 per cent in 2010-11. The robust growth rate can be
attributed to normal monsoons in most states, strong farm output with high MSPs
(Minimum Support Prices), increase in farm incomes and steady availability of
finance. In addition, schemes such as NREGA (National Rural Employment
Guarantee Act) led to a shortage of agricultural labour, encouraging tractor
use. Besides, government initiatives like Bharat Nirman helped in boosting
rural infrastructure, thereby encouraging non-farm tractor use.
Sustained income
and relatively low penetration led to a strong growth in the southern and
western regions. In the northern region, the growth was subdued due to flood
like situations in Haryana and Punjab, and relatively high tractor penetration.
The Eastern region also witnessed moderate growth due to delayed monsoon in
The MSPs for
2011-12 are estimated to remain at 2010-11 levels. Crop output is expected to
be higher during the year, aided by normal rainfall, increased availability of
finance, coupled with favourable government initiatives in the form of higher
agricultural credit. This would lead to an increase in farm income (value of
crop output) and drive sector’s growth. Escalating demand and government policy
are favourable factors that will drive tractor demand.
According to
CRISIL estimates, the domestic tractor sales are expected to grow by about
11-14 per cent in 2011-12, owing to an increase in farm income, improving MSPs
and higher farm output. Credit availability will also be stable with NBFCs
increasing focus on tractor financing. The key drivers of rural farm incomes
are estimated to grow by 16 percent in 2010-11, which will lead to another year
of stable growth, further aiding tractor sales. Government initiatives towards
rural development and usage patterns of farmers represent the major drivers
that influence rural demand.
Growing need for
farm power per hectare and increasing substitution of manual and animal labour for
various farming operations continue to drive the structural growth for tractor
sales. Increasing finance penetration with more affordable finance rates have
enabled a larger number of farmers to own tractors. Concurrently, the economics
of tractor operation improved owing to increasing custom hiring for
agricultural and other purposes, including transit of farm produce, and
transport of people and materials for road construction and other
infrastructure projects. However, a sharp growth rate is unlikely to continue
because of the narrowing gap between current and potential penetration levels
in some states. Besides, problems or perceptions related to credit quality or
inadequate irrigation would continue to constrain growth in less penetrated
states.
Region-wise tractor sales for the industry
The Northern
region forms the largest Indian market. It comprises Punjab, Haryana, UP and
INDUSTRY STRUCTURE
Market Size
The automotive
component industry’s output in 2010-11 increased 36 per cent over 2009-10 to
USD 30 billion.
The major Indian
auto parts makers are on track to report a strong growth, on the back of robust
after-sales demand and growing exports. The revenue growth rate of auto
ancillary companies is expected to be in line with auto OEMs. In the first half
of the fiscal, production by all OEMs in the auto industry had demonstrated
positive growth, compared to the corresponding period of last year, resulting
in corresponding growth in customer demand.
SUSPENSION INDUSTRY
Global Automotive Industry Trends
The global auto
component demand is expected to grow from Rs.660.000 Millions to Rs. 1010.000
Millions at a CAGR of 4 per cent during the period 2009-20.
Western Europe and
Within the auto
component industry, body and structural, engine and exhaust and electronics and
electrical systems are the largest component segments, each accounting for ~20
per cent of the total market. Suspension and braking segment accounts for ~11
per cent of the total auto component demand and is expected to grow from Rs.
70.000 Millions to Rs.110.000 Millions during the period 2009-20.
Auto Suspension Industry
Indian Auto
Suspension market (including railway suspension) is worth Rs. 5,300 crore (in
year 2011). The OEM segment accounts for approx 90 per cent of this market and
rest being replacement industry. Two wheelers form the largest segment and
account for 60 per cent of the total suspension market followed by passenger
vehicles (35 per cent).
The Auto
Suspension market is growing at a CAGR of 13 per cent, in line with the strong
growth in vehicle production. This large and fast growing industry is
fragmented with a significant number of small and medium sized companies
serving it. Several players also have multi-site operations due to factors such
as customer needs, proliferation of tax exempted zones and varying labor laws
and policies across states. The top five players (Munjal Showa, Gabriel,
Endurance, Tenneco and Escorts) account for approx 58 per cent of the total
market while around 100 small and regional players hold 22 per cent market
share.
Indian Railways:
Upcoming modernisation and expansion Indian Railways in its roadmap, Vision
2020, outlined its growth strategy, wherein it proposes a Rs.14,000 bn
investment over the next 10 years towards modernization and network expansion.
Indian Railways is also expected to increase its capacity by adding additional
lines as well as doubling existing lines over the next decade. It plans to lay
2,500 km of new lines and double or multiple of around 30,000 km rail route by
2020.
The major
priorities of the Indian Railways under the XI Five Year Plan comprise:
1. Building
capacity through network augmentation by constructing new lines including
dedicated freight corridors, gauge conversion and doubling of congested routes.
2. Enhancing
capacities on high density network and other line capacity improvement works
and traffic facilities.
3. Augmenting
capacity for rolling stock production and increased procurement of rolling
stock including wagons, EMUs, among others
4. Technological
upgradation and modernisation of fixed infrastructure and rolling stock,
upgradation of routes for heavy axle load movement.
5. Modernisation of
freight and passenger terminals, developing world class stations.
- Increasing investment in infrastructure
development will lead to the growth in the construction market
- Construction industry in
- The Government of India has allocated
Rs. 2.14tn (2011-12) to infrastructure growth, indicating strong
commitment to the development of infrastructure in
- With the development in infrastructure,
construction equipment market is expected to witness a rapid growth. It is
expected that with the implementation of large projects, demand for
specialised construction equipment will increase, which includes crawler
excavators, wheeled loaders, crawler dozers and compaction equipment.
- Development of infrastructure will be
supported by the Indian government. Recently, it has been forwarded that
the government will invest Rs. 46 tn in infrastructure by 2020. Bulk of
this investment will be for construction equipment in areas, such as
roads, irrigation and mining.
LEADERSHIP TEAM
Mr. Rajan Nanda, Chairman and Managing Director,
An alumnus of
Mr. Nikhil Nanda Joint
Managing Director
Mr. Nikhil Nanda,
Joint Managing Director, alumnus of
Dr. M. G. K. Menon, Director,
Dr. M. G. K.
Menon, Director, recipient of Padma Shri, Padma Bhushan and Padma Vibhushan, is
a distinguished scientist of international repute. A former minister, Mr. Menon
has also served as a Member of the Planning Commission, scientific adviser to
the Prime Minister, secretary to various departments of the Government of India
for 12 years, President of the Indian Statistical Institute, a member and
Chairman of various bodies in
Dr. S. A. Dave, Director
Dr. S. A. Dave,
Director, is an economist of international repute. He has a rich experience
across multiple facets of financial and capital markets. Former Executive
Director of IDBI, former Chairman of UTI and the first Chairman of SEBI, Mr.
Dave is acting Chairman of the Centre for Monitoring Indian Economy, Mumbai and
is also the Director of HDFC Limited, and many other reputed companies.
Dr. P. S. Pritam
Dr. P. S. Pritam,
Director, has held important managerial positions in mammoth financial
institutions for over four decades with diverse functional expertise — Legal
and Mortgage, Finance and Accounts, Insurance Underwriting and Claims and all
aspects of Client Servicing. He retired as the Executive Director (Marketing
and International Operations) of LIC India, worked as the National Head (Sales
and Marketing) for Allianz Bajaj Life Insurance and served on the Board of
Bihar State Financial Corporation, Gujarat State Financial Corporation, Bihar
State Housing Federation and various other companies.
Mr. S. C. Bhargava
Mr. S. C.
Bhargava, Director, is an eminent personality with a rich experience in all
facets of Finance and Insurance. He possesses extensive knowledge in the field
of securities market, treasury operations and investments, among others. Mr.
Bhargava, Senior Fellow member of the
Mr. Hardeep Singh, Director
Mr. Hardeep Singh,
Director, is a graduate in Economics from
Mr. G B Mathur, Executive VP, Law and Company
Secretary
Mr. G B Mathur,
Executive VP, Law and Company Secretary, is an ACS and LLB by profession. He
has more than three decades of rich experience in the field of Corporate Law.
He is part of all the major restructuring and all other important corporate
decisions taken by the company from time to time. Before joining the Escorts Group
he was working with Chambal Fertilisers and Chemicals Limited.
Mr. O K Balraj, Executive VP, Group Chief Financial
Officer
Mr. O K Balraj,
Executive VP, Group Chief Financial Officer, possesses an advanced
degree/diploma from the
Mr. Ishan Mehta, Executive VP, HR and ER
Mr. Ishan Mehta,
Executive VP, HR and ER, alumnus of
Xavier’s Labour Research Institute
(XLRI), possesses over 31 years of
experience in HR and ER strategies, organisational
effectiveness and workplace improvement.
He previously worked with DCM
Limited, Ballarpur industries, Eicher Group
and East India Hotels (EIH).
Mr. S Sridhar, Chief Executive Officer
Mr. S Sridhar, Chief
Executive Officer, Escorts Agri
Machinery, agriculture engineer, possesses rich experience in engineering,
automotive industry and manufacturing. Mr. Sridhar started his career at
Mahindra and Mahindra Limited’s tractor division business and acquired vast
experience in TVS – Suzuki. He was the former CEO (2 wheeler) and then the
President (Motorcycle Division) of Bajaj Auto Limited.
Mr. Kanwal Kishore Vij, ED and Chief
Executive Officer
Escorts
Construction Equipment Limited, mechanical engineer, has completed advanced
courses in Marketing and Management from Harvard, IIM (A) and
Mr. Vikram Singhal, ED and Business Head
Mr. Vikram
Singhal, ED and Business Head, Escorts Railways Products, is a mechanical
engineer with over three decades of rich and varied experience in business
re-engineering, sales and marketing, international business, manufacturing,
turnaround, conceptualization and execution of strategic initiatives. He has
previously worked with Alfa Laval (Swedish), Danfoss (Danish), Amtek Auto and
the Eicher Group.
Mr. Lalit K Phawa Chief Executive Officer
Mr. Lalit K Phawa,
Chief Executive Officer, Escorts Auto
Products, BE (Mech), MBA (Symbiosis Pune), possesses over 30 years of experience of which 16 years he has shouldered different responsibilities as CEO and MD of engineering, manufacturing and automation businesses. He has vast experience in identifying and executing M and As, JVs and business alliances as a part of growth and turn around strategies for midsized Indian and global companies. He has worked with Jervis B Webb, American Axle Inc and the Tata Group, where he turned-around a very stressed company and strategised and managed rapid growth of others.
CONTINGENT
LIABILITIES:
|
|
(Rs.
In Millions) 30.09.2011 |
(Rs.
In Millions) 30.09.2010 |
|
I) Estimated amounts of contracts remaining to be executed on capital
account and not provided for |
619.100 |
526.100 |
|
II) * Claims not
acknowledged as debts |
05.100 |
5.200 |
|
III) There is a
Contingent liability of : |
|
|
|
* (a) Excise duty/Customs duty demands not acknowledged as liability |
89.800 |
465.700 |
|
* (b) ESI additional demand not acknowledged as liability |
41.400 |
41.400 |
|
* (c) Sales Tax demand not acknowledged as liability |
67.300 |
97.500 |
|
* (d) Pending Legal Cases |
|
|
|
- Personnel |
32.100 |
41.100 |
|
- Others |
798.700 |
300.400 |
|
* (e) Demand
raised by Faridabad Municipal Corporation for external development charges
where the Company is in litigation |
23.800 |
23.800 |
|
(f) Guarantees
given to banks under Channel Finance Program |
281.800 |
425.200 |
|
(g) Guarantees executed in favour of Others |
95.900 |
83.300 |
|
(h) Demand
raised by Income Tax Department, disputed by the Company and pending in
appeal |
1305.200 |
144.400 |
NOTE:
* The amounts indicated
as contingent liability or claims against the Company only reflect the basic
value. Interest, penalty if any or legal costs, being indeterminable are not
considered.
IV) During the period
2004-05, Escorts Limited (EL) sold its entire share holding in Escorts Heart
Institute and Research Center Limited (EHIRCL) vide Sale Purchase Agreement
dated 25th September, 2005. There were certain pending disputed Income Tax
Demands of Rs. 523.300 Millions and interest thereon amounting to Rs. 291.600
Millions on EHIRCL and in terms of the agreement EL has undertaken to indemnify
the purchaser to the extent of Rs.650.000 Millions plus one-third of any amount
in excess of Rs.650.000 Millions, in case the appeal is decided against EHIRCL.
In view of the above, in terms of Share Purchase Agreement an amount of Rs.
649.900 Millions has been kept in an Escrow Account as fixed deposit, which
after renewal amounts to Rs. 828.000 Millions as on 30th September 2011.
UNSECURED LOANS
Rs. In Millions
|
|
30.09.2011 (Rs.
In Millions ) |
30.09.2010
(Rs.
In Millions ) |
|
|
|
|
|
Short Term Loans
|
|
|
|
Lease Finance |
22.200 |
19.000 |
|
Other Loans |
|
|
|
Lease Finance |
16.000 |
28.200 |
|
From Others |
79.400 |
100.400 |
|
Book Overdraft - Banks |
9.700 |
0.600 |
|
Total |
127.300 |
148.200 |
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER ENDED 31ST DECEMBER, 2012
Rs. In Millions
|
SI No. |
Particulars |
3 Months ended |
Preceding 3 months ended |
Corresponding 3 months ended in the
previous year |
For the Three Months ended |
Previous year ended |
|
|
|
|
31.12.2012 |
30.09.2012 |
31.12.2011 |
31.12.2012 |
31.12.2011 |
30.09.2012 |
|
|
|
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Audited |
|
1 |
Income from
Operations |
|
|
|
|
|
|
|
|
(a) Net Sales/income from Operations [Net of excise duty) |
10260.028 |
8187.395 |
10234.200 |
10260.028 |
10234.200 |
33777.255 |
|
|
(b) Other Operating Income |
21.773 |
46.633 |
25.407 |
21.773 |
25.407 |
161.551 |
|
|
Total Income from Operations (Net) |
10281.801 |
8234.028 |
10259.607 |
10281.801 |
10259.607 |
38938.806 |
|
2 |
Expenses |
|
|
|
|
|
|
|
|
(a) Cost of Materials Consumed |
6800.301 |
5961.054 |
7294.416 |
6800.301 |
7294.416 |
26745.984 |
|
|
(bj Purchases of Stock-in-Trade |
562.694 |
455.304 |
720.382 |
562.694 |
720.382 |
2277.337 |
|
|
(c) Changes in Inventories of Finished Goods. Work-in-Progress and Stock-in-Trade |
38.622 |
(512.505) |
(351.278) |
88.622 |
(351.278) |
(578.101) |
|
|
(d) Employee Benefits Expense |
1131.779 |
909.746 |
1054.365 |
1131.779 |
1054.365 |
4061.212 |
|
|
(e) Depreciation & Amortisation Expense |
130.262 |
126.730 |
115.113 |
130.262 |
115.113 |
484.252 |
|
|
(f) Other Expenses |
1168.570 |
954.780 |
1237.118 |
1168.570 |
1237.118 |
4610.037 |
|
|
Total Expenses |
9882.228 |
7895.109 |
10070.116 |
9882.228 |
10070.116 |
37600.751 |
|
3 |
Profit / (Loss)
from Operations before Other Income, Finance Cost and Exceptional Items (1-2) |
399.573 |
338.919 |
189.491 |
399.573 |
189.491 |
1338.055 |
|
4 |
Other income |
135.893 |
83.025 |
125.286 |
135.893 |
125.286 |
489.005 |
|
6 |
Profit / (Loss)
from Ordinary Activities before Finance Cost and Exceptional Items (3+4) |
535.466 |
421.944 |
314.777 |
535.466 |
314.777 |
1827.060 |
|
6 |
Finance Cost |
214.487 |
220.834 |
237.732 |
214.487 |
23.732 |
964.414 |
|
7 |
Profit / (Loss)
from Ordinary Activities after Finance Cost but before Exceptional Items
(5-6) |
320.979 |
201.110 |
77.045 |
320.979 |
77.045 |
862.646 |
|
3 |
Exceptional Items |
8.717 |
(5.221) |
(8.916) |
8.717 |
(8.916) |
(16.823) |
|
9 |
Profit /(Loss) from
Ordinary Activities before tax (7-8) |
312.262 |
206.331 |
85.961 |
312.262 |
85.961 |
879.469 |
|
10 |
Tax Expense |
30.870 |
17.510 |
(4.700) |
30.870 |
(4.700) |
183.452 |
|
11 |
Net Profit / (Loss)from
ordinary activities after tax (9-10) |
281.392 |
188.821 |
90.661 |
261.392 |
90.661 |
696.017 |
|
12 |
Extraordinary item (net of tax expense) |
|
|
|
|
|
. |
|
13 |
Net Profit / (Loss) for the period (11-12) |
281.392 |
188.621 |
90.661 |
281.392 |
90.661 |
696.017 |
|
14 |
Paid-up equity share capital (Face Value Rs. 10/- each) |
1225.769 |
1225.769 |
1225.769 |
1225.769 |
1225.769 |
1225.769 |
|
|
Less: Amount recoverable from Escorts Employees Benefit S Welfare Trust |
33.136 |
33.136 |
33.136 |
33.136 |
33.136 |
33.136 |
|
|
Paid-up equity share capital (Face Value Rs. 10/- each) |
1192.633 |
1192.633 |
1192.633 |
1192.633 |
1192.633 |
1192.633 |
|
15 |
Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year |
- |
- |
- |
- |
- |
14483.905 |
|
16-1 |
Earnings Per Share
(before extraordinary items) of Rs. 10 each (not annuafised): |
|
|
|
|
|
|
|
|
(a) Basic (Rs.) |
2.36 |
1.58 |
076 |
2.36 |
0.76 |
5 84 |
|
|
(b) Diluted (Rs.) |
2.36 |
1.58 |
0.76 |
2.36 |
0 76 |
5 84 |
|
18.il |
Earnings Per Share {after extraordinary items) of Rs. 10 each (not annualised): |
|
|
|
|
|
|
|
|
(a) Basic (Rs.) |
2.36 |
1.58 |
0 76 |
2.36/ |
0.76 |
5 84 |
|
|
(b) Diluted (Rs.) |
2.36 |
1 58 |
0.76 |
2.3^ |
: 0.76 |
5.84 |
|
|
|
|
|
|
|
|
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
|
|
|
1 |
Public shareholding |
|
|
|
|
|
|
|
|
- Number of shares |
71.121,838 |
71,121.838 |
76.392.725 |
71,121.838 |
76.392,725 |
71,121,838 |
|
|
- Percentage of shareholding {%) |
58.02 |
58.02 |
62.32 |
58.02 |
62.32 |
58.02 |
|
2 |
Promoters and
Promoter Group Shareholding |
|
|
|
|
|
|
|
a) |
Pledged /
Encumbered |
|
|
|
|
|
|
|
|
Number of shares |
607,386 |
5,000,000 |
5,600,000 |
607,386 |
5,600,000 |
5,000,000 |
|
|
Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
1.18 |
9.72 |
12.13 |
1.18 |
12.13 |
9.72 |
|
|
- Percentage of shares (as a % of the total share capital of the company) |
0.50 |
4 08 |
4.57 |
0.50 |
4.57 |
4.08 |
|
b) |
Non - encumbered |
|
|
|
|
|
|
|
|
Number of shares |
50,847,654 |
46,455,040 |
40,584,153 |
50,847,654 |
40,584,153 |
46,455,040 |
|
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
98.82 |
90.28 |
87.87 |
98.82 |
87.87 |
90.28 |
|
|
- Percentage of shares (as a % of the total share capital of the company) |
41.48 |
37.90 |
33.11 |
41.48 |
33.11 |
37.90 |
|
|
|
|
|
|
|
|
|
|
B |
Investor Complaints |
3 Months ended 31/12/12 |
|
||||
|
|
Pending at the beginning of the quarter |
Nil |
|
||||
|
|
Received during the quarter |
5 |
|
||||
|
|
Disposed of during the quarter |
5 |
|
||||
|
|
Remaining unresolved at the end of the quarter |
Nil |
|
||||
STANDALONE SEGMENT
WISE REVENUE RESULTS AND CAPITAL EMPLOYED, UNDER CLAUSE 41 OF THE LISTING
AGREEMENT
Rs. In Millions
|
SI. No.. |
Particulars |
3 Months ended |
Preceding 3 months ended |
Corresponding 3 months ended in the
previous year |
For the Three Months ended |
Previous year ended |
|
|
|
|
31.12.2012 |
30.09.2012 |
31.12.2011 |
31.12.2012 |
31.12.2011 |
30.09.2012 |
|
|
|
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Audited |
|
'i |
Segment Revenue: |
|
|
|
|
|
|
|
|
a) Agri Machinery Products |
8456.920 |
6292.701 |
7726.178 |
8456.920 |
7726.178 |
29117.586 |
|
|
b) Auto Ancillary Products |
374.986 |
303.785 |
310.910 |
374.986 |
310.910 |
1431.876 |
|
|
c) Railway Equipments |
276.475 |
387.806 |
303.376 |
276.475 |
303.376 |
1488.027 |
|
|
d) Construction Equipments |
1290.070 |
1341.472 |
2089.683 |
1290.070 |
2089.683 |
7485.913 |
|
|
e) Others |
1.590 |
0.266 |
0.420 |
1.590 |
0.420 |
32.029 |
|
|
f) Unallocable |
5.578 |
9.385 |
12.517 |
5.578 |
12.517 |
52.514 |
|
i |
Total |
10405.619 |
8335.415 |
10443.034 |
10405.619 |
10443.084 |
39607.945 |
|
|
Less: Inter Segment Revenue |
80.713 |
103.440 |
134.056 |
80.713 |
134.056 |
510.407 |
|
|
Net Segment Revenue |
10324.906 |
8231.975 |
10309.028 |
10324.906 |
10309.028 |
39097.538 |
|
2 |
Segment Results: |
|
|
|
|
|
|
|
|
a} Agn Machinery Products |
794.349 |
572.058 |
466.258 |
794.349 |
466.258 |
2265.708 |
|
|
b) Auto Ancillary Products |
(23.590) |
(34.741) |
(54.442) |
(23.590) |
(54.442) |
(118.300) |
|
|
c) Railway Equipments |
(44.250) |
77.091 |
(19.950) |
(44.250) |
(19.950) |
93.642 |
|
|
d) Ccnstruciion Equipments |
(57.419) |
(78.245) |
32.208 |
(57.419) |
32.208 |
13.528 |
|
|
e) Others |
(0.028) |
(4.309) |
(2.729) |
(0.928) |
(2.729) |
16.849 |
|
|
Total |
668.162 |
531.854 |
421.345 |
668.162 |
421.345 |
2271.427 |
|
|
Less : |
|
|
|
|
|
|
|
|
- Finance Cost |
214.487 |
220.834 |
237.732 |
214.487 |
237.732 |
964.414 |
|
|
- Exceptional Items |
8.717 |
(5.221) |
(8.916) |
8.717 |
(8.916) |
(16.823) |
|
|
- Other unallocated expenditure |
132.696 |
109.910 |
106.568 |
132.696 |
106.568 |
444.367 |
|
|
(Net of unallocated income) |
|
|
|
|
|
|
|
|
Profit Before Tax |
312.262 |
206.331 |
85.961 |
312.262 |
85.961 |
879.469 |
|
3 |
Capital Employed (Segment assets - Segment Liabilities) |
|
|
|
|
|
|
|
|
a) Agri Machinery Products |
8975.773 |
9097.062 |
9003.229 |
8975.773 |
9003.229 |
9097.062 |
|
|
b) Auto Ancillary Products |
386.650 |
542.997 |
556.949 |
386.850 |
556.949 |
542.997 |
|
|
c) Railway Equipments |
866.622 |
857.238 |
865.696 |
866.622 |
865.696 |
857.238 |
|
|
d) Construction Equipments |
1405.448 |
976.838 |
1925.443 |
1405.448 |
1925.443 |
976.838 |
|
|
e) Others |
(5.634) |
(4.761) |
34.811 |
(5.634) |
34.811 |
(4.761) |
|
|
f) Unallocable |
7810.776 |
7790.067 |
9408.662 |
7810.776 |
9408.662 |
7790.067 |
|
|
Total |
19439.835 |
19259.441 |
21794.790 |
19439.835 |
21794.790 |
19259.441 |
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 4th February 2013.
2 The financial results of the Company for I he quarter ended on 31st December 2011 have been restated after giving effect to the amalgamation pursuant to the Scheme of Arrangement and Amalgamation approved vide its order dated 9th August, 2012 by the Hon'ble High Court of Punjab and Haryana.
3 Figures for the previous periods have been regrouped, wherever necessary, to correspond with the figures of current period.
FIXED ASSETS:
- Land
- Buildings
- Plant and
Machinery
- Vehicles
- Furniture and
Fixtures
- Leasehold
Improvements
- IT Equipments
- Technical
Know-how
- Software
Development
AS PER 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.
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 and Head).
1977 - Escorts
enters the world of self-developed technology by setting up its first independent
RandD
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
PRESS REALESE:
Escorts brings
Glamour to the Tractor World (20 February 2013)
On its way to Image
Leadership, Escorts unveils Ferrari - the world’s best in specialty tractors,
and the All-New, premium Farmtrac Executive Series
Pune, February 20, 2013: Escorts Limited, India’s leading tractor manufacturer, today announced the launch of two new premium tractors - Ferrari, the world’s best for specialty farming, and the All-New Farmtrac Executive series. With world-class technologies, impressive features, and stunning looks – these new tractors are set to revolutionize the Indian tractor market.
Ferrari brings tractor technologies to India that the country has never seen before. These include the all four equal-sized wheels, oscillating chassis system, all-time 4 wheel-drive, front-engine mounting for super-low turning radius and an ideal weight distribution. Starting with a 26 HP model suited for the advanced needs of Indian orchard and vineyard growers, the Ferrari is now available in Maharashtra and soon will be extended for sales in rest of the country.
The All-New Farmtrac Executive tractor series is aimed at the young aspirational Indian farmer. Farmtrac, known since last 40 years for its power and prestige, now packs in the new Executive series impressive world-class features, stunning looks and a car-like driving comfort. Independent PTO with a safety device, a new scissor seat with recliner for best driving comfort, stylish fenders for elegant looks, suspended clutch and brake pedals, a digital speedometer, and LED head-lamps add to the glamour quotient of the new Farmtrac Executive series. Available in 45, 50 and 60 horsepower categories, these tractors would be available for bookings within a few weeks from now.
Speaking on the occasion, Mr. Rajan Nanda, Chairman and Managing Director, Escorts Limited, said, “I am convinced that India is poised for a gigantic leap forward in agriculture. The Indian agriculturist has evolved from just being a subsistent farmer to the one with an entrepreneurial bent of mind. Today, he is looking for equipment that is high on precision and output. Escorts is prepared to partner the forward looking Indian farmer in all facets of his aspirations. The products that we are launching today are a reflection of how Escorts would continue to bring in international technology and design standards to the Indian tractor market.”
Speaking on the occasion, Mr. Nikhil Nanda, Joint Managing Director, Escorts Limited said, “The launch of Ferrari Orchard Tractors and the New Farmtrac Executive Series, brings mechanization to the high value orchard farmers of the country. Our alliance with Ferrari, brings to Indian Orchard farmers a world class tractor aimed at bringing about efficiency to their farm operations. We are passionately working to achieve premier Image Leadership in the Indian tractor industry. This is in line with our # 1 goal: to be the country’s most profitable tractor manufacturer. The majority of our investments are aimed at development of new technologies and products. This is evident from the products we have launched in the last 12-18 months, which have received a very favorable customer response. In the months ahead we will continue to bring technologically advanced world-class products, to cement our position with Indian farmers.”
Also present on this occasion, Ing. Benso Marelli, Managing Director, BCS S.p.A., Italy, said “The Ferrari philosophy is to create products that are second to none. Whether it is the four-equal wheels technology, the oscillating integral chassis system, or the all-time 4WD function, these are exclusive technologies that are the result of over 60 years of our engineering expertise. While we are a leading specialty tractor brand in Europe, it is the deep understanding of the Indian market and strong distribution capabilities that makes Escorts our ideal partner for India. Escorts is truly focused in bringing the best in the world to India to be able to increase the productivity of the Indian farms.”
About Escorts Limited and BCS S.p.A.
The ESCORTS GROUP is among India's leading engineering conglomerates operating in high growth sectors of Agri Machinery, Material Handling and Construction Equipment, Railway Equipment and Auto Components. The Group has earned the trust of over 5 Million customers by way of product and process innovations over six decades of its existence. Escorts endeavors to transform lives in rural and urban India by leading the revolution in agriculture mechanization, modernization of automotive and railway technology and transformation of Indian construction.
BCS S.p.A. is the Italy-based manufacturer of the premium Ferrari tractors. With over 60 years of experience in high-quality production, remarkable design and precision technologies, Ferrari is a name to reckon with in the area of specialty tractors.
ESCORTS LIMITED
ANNOUNCES FINANCIAL RESULTS FOR Q1 FY2013 EBIDTA GROWTH 74%; PAT UP 210%
Faridabad, February 04, 2013: Escorts Limited one of India's leading engineering conglomerates, announced its unaudited financial results for the first quarter of the financial year 2013 ended 31st December 2012 at its Board meeting held today.
Q1 FY13 Financial Performance Highlights:
· Net sales stood at Rs.10282.000 Millions
· EBIDTA saw an increase of 74% YoY to Rs. 530.000 Millions vs Rs. 305.000 Millions
· EBIDTA margin expanded by 218 basis points to 5.15%
· PBT was up significantly by 263% to Rs. 312.000 Millions as compared to Rs.86.000 Millions in Q1 FY12
· PAT rose by 210% to Rs. 281.000 Millions along with improvements in margin by 185 basis points
Commenting on the results, Mr. Rajan Nanda, Chairman Managing Director, Escorts Limited said: "at a time when the agricultural and infrastructure sector are experiencing stiff challenges, Escorts has chosen to mitigate this with a focussed strategy of high profitable and niche products, simultaneously expanding the bottom line while maintaining a healthy top line growth. We have chosen to modify our product mix, undertake technology and brand tie ups globally and by re engineering ourselves to reduce cost and promote efficiency.
Going forward, we expect the economy to sustain and gradually grow with a focus on agricultural and construction, both being inclusive and employment generating in nature. We expect Escorts Limited., which has a vital stake in both these sectors, to gain substantially."
Mr. Nikhil Nanda, Joint Managing Director, Escorts Limited said: "the company has had a sound start to its financial year. With sharp focus on cost discipline, inter group synergies, diversified product portfolio and improved product mix, the company has embarked upon the strategic path to deliver value for all its stakeholders.
Our goal is to sustain profitability through rationalizing our group operations to achieve better operational margins, an improved product mix and better management of costs.
s the year progresses, we look forward to see greater opportunities in the agricultural and capital goods sectors, which will prove to be the backbone of our country's development. The company is aptly poised to make good this opportunity and enhance its market share and brand presence."
|
Particulars |
Q1 FY13 (In Lakhs) |
Q4 FY12 (In Lakhs) |
Q1 FY12 (In Lakhs) |
Change Q-o-Q (%) |
Change Y-o-Y (%) |
|
Operating Income |
102,818 |
82,340 |
102,596 |
24.9 |
0.2 |
|
EBITDA |
5,298 |
4,656 |
3,047 |
13.8 |
73.9 |
|
PBT |
3,123 |
2,063 |
860 |
51.3 |
263.3 |
|
PAT |
2,814 |
1,888 |
907 |
49.0 |
210.4 |
The first quarter of the financial year saw revenues expand by 25% to Rs. 1,028 crore on a Q-o-Q basis. The period gone by saw overall operating and financial performance improve significantly. This was reflected in raw material to income margins which came down to 72.5%, a decrease of 222 basis points. EBITDA and PAT margins also grew by 218 and 185 basis points respectively on a Y-o-Y basis, thus, reflecting improved efficiency and better cost control management. The performance was also augmented by increase in sales, effective product mix and broader product offering.
Segmental Performance
Highlights
Escorts Agri
Machinery:
Rs. In Millions
|
Particulars |
Q1FY13 |
Q1FY12 |
Q4FY12 |
|
Sales |
8457.000 |
7726.000 |
6293.000 |
|
EBIT |
794.000 |
466.000 |
572.000 |
|
EBIT Margin (%) |
9.4 |
60.000 |
91.000 |
· The volumes for Tractors stood at 17,106 during the period an increase of 32% sequentially
· Total Sales for EAM rose to 8457.000 Millions an increase of 9.5% from the corresponding quarter last year
· The EBIT margins for the quarter expanded by 336 basis points to 9.4% on year on year basis
Escorts Auto
Products:
Rs. In Millions
|
Particulars |
Q1FY13 |
Q1FY12 |
Q4FY12 |
|
Sales |
375.000 |
311.000 |
304.000 |
|
EBIT |
(24.000) |
(55.000) |
(35.000) |
|
EBIT Margin (%) |
(63.000) |
(175.000) |
(114.000) |
· Sales for this segment on a Y-o-Y basis grew by 20.6% to Rs. 375.000 Millions during the period under review
· As reflected in this quarter's performance, this segment improved on its margins by 1122 basis points as compared to same quarter last year
· This segment is under performing due to low capacity utilisation coupled with pressures on the input cost front, especially steel, aluminium, plastic and rubber parts which could not passed on to the end consumer
· Going forward this segment is poised for a successful turnaround. The RandD is working on new innovative domestic and export products which will help improve margins. Launch of the new products s expected in the latter half of FY13
· As per ACME the Auto component industry will reach to a size of $108-119 billion by FY2020, corresponding to a 4 times growth. This will commensurate another 1.0-1.2 million jobs while its GDP contribution will increase to 3.6% from the current 2%
Escorts Railway
Products:
Rs. In Millions
|
Particulars |
Q1FY13 |
Q1FY12 |
Q4FY12 |
|
Sales |
276.000 |
303.000 |
388.000 |
|
EBIT |
(44.000) |
(20.000) |
77.000 |
|
EBIT Margin (%) |
(160.000) |
(66.000) |
199.000 |
· Sales for this segment saw a dip of 8.9% to Rs. 276.000 Millions
· This segment is showing distinct signs of recovery based on strong order book position of Rs. 600.000 Millions expected to be executed in the coming 4-5 months
· Based on Railways 2020 Vision, passenger and freight volume will show a CAGR growth of 8% requiring a 7x increase in capex in the range of $ 300 billion
Escorts Construction
Equipments:
Rs. In Millions
|
Particulars |
Q1FY13 |
Q1FY12 |
Q4FY12 |
|
Sales |
1290.000 |
2089.000 |
1342.000 |
|
EBIT |
(57.000) |
32.000 |
(78.000) |
|
EBIT Margin (%) |
(45.000) |
15.000 |
(58.000) |
· The slowdown in industry along with delay in project approvals is reflected in the subdued volumes this quarter which shrank by 41.5% on a corresponding basis
· EBIT margins was also under pressure which stood at (4.5%)
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 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. 54.48 |
|
|
1 |
Rs. 82.72 |
|
Euro |
1 |
Rs. 71.27 |
INFORMATION DETAILS
|
Report Prepared by
: |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
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.