A global air conditioning and engineering services Company

Transcription

1 A global air conditioning and engineering services Company

2 Voltas Organization of businesses (around its 3 core competencies) Segment A : Electro-mechanical Projects & Services Domestic and international MEP solutions (including HVAC) in infrastructure, built and industrial environment. Water management and treatment Segment B : Engineering Products & Services Mining and Construction Equipment, Materials Handling and Textile Machinery supply of equipment, maintenance service, spares and accessories. Segment C : Unitary Cooling products for comfort and commercial use Room air conditioners Commercial refrigeration products

3 Voltas Key Subsidiaries/JVs Segment A: Electro-mechanical Projects & Services Weathermaker Ltd. a company manufacturing ducts and allied products, based in Jebel Ali Free Trade Zone, UAE. (100%) Rohini Industrial Electricals Ltd. an electrical contracting company based in Mumbai, India (67.33%) Universal Voltas LLC an MEP contracting company based in Abu Dhabi, UAE (49%) Universal Weathermaker Factory LLC a duct manufacturing company based in Abu Dhabi, UAE (49%) Segment C: Unitray Cooling Products for Comfort and Commercial Use Universal Comfort Products Ltd. a company manufacturing Unitary airconditioners, both window and split units, with manufacturing facility based in Pant Nagar, India (100%)

4 Voltas Key Achievements Leading in India as a trusted air conditioning and engineering services company, with over 50 years of experience. India s largest exporter of electro-mechanical projects executed multi-million dollar projects in over 30 countries. No 2 brand in the Indian air conditioner market. having No 1 brand in the Indian commercial refrigeration market Leading provider of textile machinery in India; with 65% MS in the spinning segment. Premier provider of mining & construction equipment in India One of the largest manufactures of forklifts in India

5 Voltas Limited FINANCIAL HIGHLIGHTS (Consolidated Rs. in Crores (US$ Mn) Sales & Services Operating Profit Profit/(Loss) After Tax Total Assets Net Worth Share Capital 33 7 No.of Shareholders

6 VOLTAS LIMITED FINANCIAL HIGHLIGHTS FY 02-10

7 Sales and Services - Rs.Crores (USD Mn) Number of Employees (86) (107) (45) (60) (82)

8 10 9 PAT % to Sales

9 75 65 PAT % to Shareholders' Funds

10 Debt/Equity Ratio - %

11 Earnings per Share

12 220 Dividend % on Equity Capital

13 60 ROCE %

14 EVA % * * (0.33) (5.00) (10.00) (*Consolidated Figures)

15 Profit before Tax and Exceptional Items Year R s. in L akh s Jun Sep Dec Mar (Consol) Cumulative Quarters Note : Current year results are Consolidated. Previous period results are Stand-alone since there is no significant difference.

16 VOLTAS LIMITED FINANCIAL HIGHLIGHTS Results for year ended 31 st March 2010

17 Highlights of Consolidated Results for year ended 31 st March, 2010 Quarter Cumulative CY PY CY PY Increase in TO 4% NA 11% NA EBITDA Margin 10.7% 7.3% 11.4% 9.6% Increase in Profit before Exceptional Items 64% NA 38% NA Increase in PBT 82% NA 31% NA Increase in PAT 86% NA 33% NA Increase in Profit after Minority Interest and Share of Profit of Associate 87% NA 32% NA Taxation as percentage of PBT 29% 30% 31% 32% Positive EVA 21% 18% 21% 18% EPS (Re.) EPS before Exceptional items net of tax (Re.) Return on Net Worth (w/o Exceptional Items) 26% 22% 31% 28% Debt / Equity ratio

18 Electro-mechanical Projects & Services

19 ELECTRO-MECHANICAL PROJECTS & SERVICES ❿ Contributes 61% to the Company s TO Segment Revenue grew by 13, Segment Results grew by 45% Domestic business contributes 22% of the Company s TO International business contributes 39% of the Company s TO. The consolidated order book stands at Rs 4700 Cr. ($1040mn) (As on March 2010) International business: Performance Highlights Contributed significantly to the Company s profitability Won laurels for the Company's role in successfully completing: the Formula 1 Race Track, Abu Dhabi, a project of world-class quality, executed within demanding time-lines. Burj Kalifa, Dubai, the world s tallest man-made structure. Won an order of Rs 800 Cr.($177mn): Central Market project, Abu Dhabi. The consolidated order book stands at Rs 3200 Cr.($709m)

20 ELECTRO-MECHANICAL PROJECTS & SERVICES International business: Contd. Performance Highlights Major current projects under execution Sidra Medical and Research Centre Barwa City Project (Doha, Qatar) Ferrari Experience (Abu Dhabi) Central Market Project T2 & T3 Towers (Abu Dhabi) Entered into a JV operation with Mustafa Sultan Group, Oman for execution of electro-mechanical projects in Oman. To shortly sign a JV agreement with a reputed company in SA, which will lead Voltas foray into SA market, which has the largest potential amongst the GCC countries.

21 ELECTRO-MECHANICAL PROJECTS & SERVICES Performance Highlights International business: (contd.) Track record built on successful execution of iconic projects Hongkong International Airport Emirates Palace Hotel Mall of the Emirates Bahrain City Centre Sentosa Bay District Cooling Plant (Singapore) District Cooling Plant at the Dubai International Financial Centre Burj Khalifa (Dubai) Formula 1 Racing Track (Abu Dhabi) Etihad Towers (Abu Dhabi)

22 ELECTRO-MECHANICAL PROJECTS & SERVICES Domestic business: Impacted by: Performance Highlights The general economic uncertainty and slowdown Over-supply in commercial buildings sector, which resulted in reduced pace of implementation of projects To mitigate this impact the Company focused on: opportunities in the industrial sector, building up capabilities and technical pre-qualification. Completed the execution of the single largest VRF installation in India, with a capacity of 3000 TR, for TCS Kensington IT Park, at Powai Domestic order book has grown by 19% and stands at Rs.1500 Cr ($332m) as of 31st March 2010

23 ELECTRO-MECHANICAL PROJECTS & SERVICES Performance Highlights (contd) Established the expanded scope of solutions offered as an EPC contractor in the domestic market, offering: HVAC, Integrated Building Management, Indoor Air Quality Electrical & Power management, Fire and Security Public Health Engineering including Water Treatment & Management Process refrigeration

24 ELECTRO-MECHANICAL PROJECTS & SERVICES Performance Megavol Years Revenue Results Operating Margins 5.8% 4.8% 6.7% 7.7% 9.9% ROCE 102% 43% NA 158% 148% CAGR : Revenue: 27.6%; Results : 45.9%

25 ELECTRO-MECHANICAL PROJECTS & SERVICES OUTLOOK INTERNATIONAL BUSINESS Renewed investments and growth in major GCC countries from the 2 nd half of last year. Abu Dhabi (with its large share of oil reserves), Qatar (with plentiful natural reserves) and Saudi Arabia (which has the largest economy within GCC) are territories of growth. Renewed investments in Oman, Singapore and HK The good consolidated order book yields visibility for the next 18 months The Voltas Advantage Well-established track record of executing iconic & multi-million dollar projects A provider of choice in the Middle East for EPC electro-mechanical projects Known for quality and timely delivery of challenging/pioneering projects Proven Human Resources multi-cultural

26 ELECTRO-MECHANICAL PROJECTS & SERVICES OUTLOOK DOMESTIC BUSINESS Economic recovery to bring in renewed investments and growth in several domestic markets Major opportunities lie in segments such as healthcare; urban infrastructure - metro rail, airports and ports; Industry power, steel, and manufacturing sectors; education and research institutions New opportunities lie in the growing industrial focus on energy-efficiency, reduction of carbon footprint and on Green buildings in the commercial sector, as mandated by the Govt. The Voltas Advantage One-stop-electro-mechanical shop one-window solution Well-established track record of executing iconic projects A provider of choice for HVAC projects leader in HVAC High penetration in Indian industry A trusted Company that shares the Tata values Proven nation-wide sales and service network

27 ENGINEERING PRODUCTS & SERVICES

28 ENGINEERING PRODUCTS & SERVICES Performance Highlights Contributes 13% to the Company's TO. Has seen a pick-up in activity during the year in both Textile Machinery and Mining & Construction Equipment businesses. The Materials Handling business was still under economic pressure Segment Revenues showed a 14% dip in TO. Segment Results improved by 40%, due to larger contribution from Agency businesses Agency business contributes to 25% of the segment Revenue compared to 20% last year. Agency businesses are expected to grow faster than manufacturing-led businesses in the future.

29 ENGINEERING PRODUCTS & SERVICES Performance Megavol Years Revenue Results Operating Margins 28.6% 23.6% 20.5% 11.6% 16.4% ROCE 249% 121% 144% 49% 80% CAGR : Revenue: 17.8%; Results : 2.5.%

30 ENGINEERING PRODUCTS & SERVICES Outlook It is expected that investments in capital goods and engineering products will be sustained in the next few years as the Indian economy regains its growth path. - Promoting investments in infrastructure projects such as airports, ports, and roads and manufacturing industries such as textiles - Providing good opportunity and demand for mining and construction equipment, materials handling and textile machinery Company has pending orders from large mining equipment from coal projects as well as ongoing parts and service contracts Demand for crushing and screening equipment and cranes is also expected to be strong for infrastructure and road projects

31 ENGINEERING PRODUCTS & SERVICES Outlook (contd.) The market for materials handling equipment is beginning to revive with increased investment in manufacturing sectors, especially in two wheelers, automobiles, general engineering and power. - Leading to additional requirements in forklifts, cranes and warehousing equipment New projects are now being planned in the spinning sector yielding good demand for spinning machinery and services The post-spinning sector processing and finishing also has a number of projects on the anvil. Agency businesses is expected to grow faster than the manufacturing business, for the next few years, leading to improved profitability

32 UNITARY COOLING PRODUCTS

33 UNITARY COOLING PRODUCTS Performance Highlights Contributes 23% to the Company's TO Second best contributor to the Company s profitability Segment Revenues grew by 29%. Segment Results grew by 119% Cooling appliances sales grew by 30% in volume. Growth drivers were: Significant pick-up in the consumer durables sector AC industry grew by 25% per annum Change in consumer sentiments resumed spending Growth was fuelled by expansion of distribution channel improved supply chain management better product-mix aggressive advertising strategy

34 UNITARY COOLING PRODUCTS Performance Megavol Years Revenue Results (33.72) Operating Margins - ve 0.4% 6.7% 6.0% 10.1% ROCE - ve 2% 46% 34% 85% CAGR : Revenue: 26.8%; Results : 1014%

35 UNITARY COOLING PRODUCTS Outlook- room air conditioner business Indian room air conditioner industry is expected to grow by 25-30% over the next few years driven by - air conditioners being a necessity due to rising middle-class aspirations and increasing impact of climate change - low penetration levels - growing disposable income - affordability - initial and running costs - health consciousness - Segment s volume is expected to grow more than the market growth rate

36 UNITARY COOLING PRODUCTS Outlook - Commercial Refrigeration business Indian Commercial Refrigeration industry is expected to grow by 35% over the next few years driven by - growing need for cold chain solutions in Indian - growing demand-gap in the user industries - retail, dairy, ice cream, and brewery - need for quality infrastructure The Voltas Advantage Brand synonymous with air conditioners and refrigeration market in India A trusted Tata Brand Brand hold an high ground on Value for Money proposition A flexible business model low on cost and high on return Growing dealer reach currently over a total of 3500 sales counters through distributors, dealers, retailers

37 Performance of Subsidiaries & JVs For the year ended 31 st March 2010 Revenue contribution to consolidated Revenue is Rs. 265crs ($58m) Subsidiaries & JVs - OUTLOOK Domestic: Total order book of 250 Cr.($55m) Universal Comfort Products Ltd. India Well placed to cater to growing demand for air conditioners and refrigeration in India. AC and Commercial Refrigeration markets are expected to grow at 30% and 35%, respectively. Will also benefit from growing demand for locally manufactured ACs Rohini Industrial Electricals, India Well placed (on its own and through Voltas) to cater to growing needs/investments in Indian industry and infrastructure projects in electricals and instrumentation.

38 Subsidiaries & JVs OUTLOOK (contd) International: Total order book of 200 Cr.($43mn) Weathermaker Ltd. UAE Pioneers in pre-fabricated duct manufacturing; well-placed to cater to demands in UAE Universal Voltas, Abu Dhabi Caters to the growing demand for pre-fabricated ducts and accessories in the Abu Dhabi market

39 Thank you.

40 Voltas Subsidiaries and Joint Ventures Segment A : Electro-mechanical Projects & Services Weathermaker Ltd., UAE, Rohini Industrial Electricals, India Saudi Ensas Co for Engg. Services KSA Naba Diganta Water Management Ltd., India Universal Weathermaker Factory, Abu Dhabi Universal Voltas, Abu Dhabi Segment B :Engineering Products & Services None Segment C :Unitary Cooling products for comfort and commercial use Universal Comfort Products Ltd. Others Lalbuksh Voltas Engg. Services and Trading, Oman Unallocated Investment Companies, viz., Simto, VIL Overseas Enterprises, Voice Antilles NV.

41 Sidra Medical and Research Centre, Doha, Qatar Back

42 Barwa City Project, Doha, Qatar Back

43 Ferrari Experience, Abu Dhabi Back

44 Central Market Project T2 & T3 Towers, Abu Dhabi Back

45 New Hong Kong International Airport Back

46 Emirates Palace Hotel, Abu Dhabi Back

47 Mall of the Emirates Back

48 Bahrain City Centre Back

49 Burj Khalifa, Dubai Back

50 Formula 1 Racing Track, Abu Dhabi Back