With the automobile sector growing at exponential levels, it comes as no surprise to see that this Nanda group company has managed to turnaround for its year ended 30th Sept 2009.
Consolidated net sales was stagnant at Rs.2597.94 crore. What really contributed to the growth in sales was its railway equipments unit, which posted a 39% rise in sales. Agri machinery products was stagnant and auto ancillary unit sales fell 3%. Construction equipments also registered a fall, it was down 29%. EBIDTA for the year was up 55% at Rs 222.44 crore. As against a net loss of Rs.37.24 crore in FY08, it posted a net profit of Rs.28.60 crore in FY09. More than the sales, it has been the cost cutting which has really helped the company bolster its profit margins in this year. Debt-Equity ratio is lower at 0.12 in the current year as compared to 0.38 last year. Substantial term debts have been reduced and liquidity has been comfortable through out the year. This is evident from the reduced interest payout and lower level of working capital utilization. The reserves of the company as on 30th Sept 2009 stood at Rs.1269.59 crore.
Looking ahead, the company’s agri machinery unit plans to expand its tentacles to southern and western markets of India. Launch of new products helped add on to the volume growth of tractors and it plans to continue with this strategy in 2010 also. It also plans to step on its railways business. It will be introducing 4 new railway products for coaches and wagons built for the Indian Railways. The company is hoping to make this unit also into one of its mulch cows.
With the auto sector on a major bounce back, 2010 is expected to be much better for the company.
Source: Internet (By S P Tulsian)
Consolidated net sales was stagnant at Rs.2597.94 crore. What really contributed to the growth in sales was its railway equipments unit, which posted a 39% rise in sales. Agri machinery products was stagnant and auto ancillary unit sales fell 3%. Construction equipments also registered a fall, it was down 29%. EBIDTA for the year was up 55% at Rs 222.44 crore. As against a net loss of Rs.37.24 crore in FY08, it posted a net profit of Rs.28.60 crore in FY09. More than the sales, it has been the cost cutting which has really helped the company bolster its profit margins in this year. Debt-Equity ratio is lower at 0.12 in the current year as compared to 0.38 last year. Substantial term debts have been reduced and liquidity has been comfortable through out the year. This is evident from the reduced interest payout and lower level of working capital utilization. The reserves of the company as on 30th Sept 2009 stood at Rs.1269.59 crore.
Looking ahead, the company’s agri machinery unit plans to expand its tentacles to southern and western markets of India. Launch of new products helped add on to the volume growth of tractors and it plans to continue with this strategy in 2010 also. It also plans to step on its railways business. It will be introducing 4 new railway products for coaches and wagons built for the Indian Railways. The company is hoping to make this unit also into one of its mulch cows.
With the auto sector on a major bounce back, 2010 is expected to be much better for the company.
Source: Internet (By S P Tulsian)
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