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1This is a proprietary document of Kirloskar Brothers Ltd.
Kirloskar Brothers Ltd.
Financial Analysts Meet
Quarter 2
FY 2010-11
28th
October, 2010
This is a proprietary document of Kirloskar Brothers Ltd.
Companywide
Highlights
2
Projects in Andhra Pradesh put on hold for 5-6 months
due to political reasons, leading to lower sales thereby
causing loss of profits
Slow down in project booking due to management
decision of being selective in accepting orders –
pending orders as on Sep-10 for project sectors was
Rs.31,831 million, as against Rs.32,814 million as on
Jun-10
This is a proprietary document of Kirloskar Brothers Ltd.
Irrigation
Highlights
3
• Manufacturing & delivery of all items (including 250 DG
Sets, 250 Panels & misc items) under the Lot 1 of the
Senegal Project.
• Commissioning of one pumping unit for the Ainapur
Project, Karnataka
• Whole system commissioned and water supplied to final
destination as per contractual commitment for Godavari
project, Andhra Pradesh
• Reformed project processes and focused on products
This is a proprietary document of Kirloskar Brothers Ltd.
Water Resource Management
Highlights
4
• Expression of Interest for recycling project of waste water
submitted to PCMC and DJB on BOOT basis.
• Assessment of KBL capability for desalination pumps by Fisia, Italy.
• Largest pumps (6Nos SHL 750/110) supplied to UP Jalanigam for
sewerage pumping project.
• KWA Meenad, Vadodara STP, Vinzol SPS and HADUC Vietnam
projects successfully commissioned.
• Interest free initial advance of Rs. 200 million collected against BG
for BWSSB project and detailed engineering in advanced stage.
This is a proprietary document of Kirloskar Brothers Ltd.
Power
Highlights
5
• Achieved the commissioning target of 2 x 500 MW Jhajjar Super
Thermal Power Project of NTPC for Common Wealth Games.
• Successful completion of Performance Guarantee Test for 3.6 MW
Vertical Kaplan Hydel Turbine of Zho Suwei Project ,Taiwan.
• Erection commenced for CW System package for 5x800MW CGPL -
India's first Ultra mega power project
• Undertaken market survey for pumps in Power Sector in Domestic
Market by Business Development Bureau
• Discussion / meeting with authorized Nuclear Inspection agencies
completed for ASME -N Stamp approval which will enable KBL to
participate in the Nuclear Power Industry worldwide.
This is a proprietary document of Kirloskar Brothers Ltd.
Oil & Gas
Highlights
• Order booking shortfall in Q1 has been made up in Q2
• Rs.7.6 million liquidated damages recovered from Reliance
Industries Ltd., out of Rs.11.7 million
• Cooling water pumps commissioned successfully at BPCL
Kochi
6
This is a proprietary document of Kirloskar Brothers Ltd.
Marine & Defence
Highlights
• IRS works approval for KOV completed and certificate awaited
• Declared L1 by Alcock Ashdown for submersible salvage
pumps for Indian Navy order value of Rs.19 million
• Maiden vertical Self Priming pump has been tested
successfully
• Registration with Hoogly Dock and GRSE for valves completed
• IRS certification being planned for KON in quarter Q3
7
This is a proprietary document of Kirloskar Brothers Ltd.
Industry
Highlights
8
• Breakthrough order Rs.30 million in Industry Export from Japan Gas
Co. and Chiyoda, Japan JV
• Industry sector has booked 1st
breakthrough order in India for mine
dewatering application from Kolkata Regional office based on SPP’s
Autoprime design
• KPD thermic fluid pumps positioning done and orders received.
• Approximately 30 seminars and training conducted for consultants
and customers in H1, significantly more than that conducted in the
same period last year.
This is a proprietary document of Kirloskar Brothers Ltd.
Building and Construction
Highlights
9
• Nationwide training for key customers leading to approvals by HVAC
and HYPN consultants.
• Consultants (Spectral, Fairwood, Shekhar Dey, etc.) approvals
received due to improved focus.
• Approval by German consultants TILKE & Jaypee Group for the
Formula One track, Greater Noida.
• Good relationship management with OEM’s such as Sterling Wilson,
Extinct Fire, L&T has resulted in KBL getting price preference.
This is a proprietary document of Kirloskar Brothers Ltd.
Distribution
Highlights
10
• Total 45 New Dealers appointed.
• Good response from the off season scheme – growth
seen in almost every product group with special focus
was on submersible pumps.
• Energy Savings of KBL Pump over Anson Pump proved
to International Institute for Energy Conservation,
Mumbai.
This is a proprietary document of Kirloskar Brothers Ltd.
Customer Support and Service
Highlights
11
• Repeat orders received from Neyveli Lignite Corporation
and Tata Power Company Ltd.
• Rate Contract for spares has been implemented in major
coal fields.
• Complaint registration through toll free number introduced.
• Complaint resolution time for Dewas and Shirval products
brought down to 3 days from 7 days.
This is a proprietary document of Kirloskar Brothers Ltd.
Kirloskarvadi Factory
Highlights
12
• FM_UL facility upgraded to global standards.
• Completed development of Canned Motor Pump for Indian
Navy.
• MOST implementation progressing as per plan.
• Lean successfully implemented in DB & CE.
• Commencement of Andhra Pradesh dispatches helped
liquidate June accumulated inventory.
This is a proprietary document of Kirloskar Brothers Ltd.
Dewas and Shirval Factories
Highlights
13
• Construction activities for Coimbatore plant started.
• Over 70% y-o-y growth in production of pumps in H1.
• KANBAN system for bought out items and castings started.
This is a proprietary document of Kirloskar Brothers Ltd.
Kondhapuri Factory
Highlights
14
• Dispatch ahead of plan
• Completed POD test for 600 mm BFV integral ebonite
lined seat.
• KONDHAPURI team made an innovation of "Tamper Proof
Kinetic Air Valve”.
This is a proprietary document of Kirloskar Brothers Ltd.
Companywide
Pending Orders
Sector 2Q 1Q %
(Rs. million) Sep-10 Mar-10
Irrigation (IRR) 17,809.7 18,112.9 51.8%
Water Resource Management (WRM) 4,574.0 4,838.5 13.3%
Power (POW) 9,447.7 9,890.0 27.5%
Oil & Gas (O&G) 1,089.2 927.3 3.2%
Marine & Defence (M&D) 86.9 79.8 0.3%
Industry (IND) 597.3 781.0 1.7%
Building & Construction (B&C) 237.6 177.0 0.7%
Distribution (DIS) 158.5 114.0 0.5%
Customer Service & Support (CSS) 377.0 305.0 1.1%
TOTAL 34,377.9 35,225.4 100.0%
IRR52%
WRM13%
POW28%
O&G3%
IND2%
B&C1%
M&D0% DIS
0%CSS1%
Pending Orders
IRR WRM POW
O&G IND B&C
M&D DIS CSS
15
This is a proprietary document of Kirloskar Brothers Ltd.
Companywide
Major Orders
Sector Order Type Customer Value
(Rs. million)
Irrigation Electromechanical portion of various
irrigation projects
Government of Karnataka 155.0
Water Resource Management 100MLD WTP Kalyan Dombivali Municipal Corporation 154.0
Power CW Pump packages Various private power companies 234.1
Oil & Gas 10 nos. VT Fire water pump package ONGC Mangalore Petrochemical Ltd. 39.4
Marine & Defence Dewas Range SP1HM in Gun Metal KPCL 4.9
Industry Assorted project pumps JGC Japan 30.0
Building & Construction FMUL Listed Fire pump sets John Deere 8.7
Distribution 200 EEC ( Corrocoated ) series Pumps PHED, Rajashthan 9.0
Customer Support & Service Supply of Spares for BHQ 95 D Ratnagiri Gas & Power Pvt Ltd 51.0
Total orders received by KBL during 2Q FY 10-11 amounted to Rs. 2,394 million
16
17This is a proprietary document of Kirloskar Brothers Ltd.
Sales :
• Total sales are at Rs. 834 Crs as against Rs.950 Crs in PY - drop of 12%.
• All marketing sectors have crossed sales over previous year except
Irrigation and Water sector
• Fall in Irrigation sector sales is Rs. 245 Crs since we stopped work for
Andhra Pradesh Projects due to non recovery of money. Now all due money
is recovered and we have commenced work in Andhra Pradesh subject to a
maximum cap on amount recoverable
• In the case of Water Sector, work on the BWSSB order did not commence
due to delay in receipt of order from Karnataka
• KBL was selective with orders and execution to improve sales mix,
which resulted in share of own product sales to total sales going up to 51%
as against 42% in the previous year.
HALF YEARLY FINANCIALS
Standalone Highlights
18This is a proprietary document of Kirloskar Brothers Ltd.
Sales :
• We had planned execution of Senegal export order in Q2 (Rs. 370 M).
However, we were able to dispatch Rs. 248 M in Q2 and the balance will be
dispatched in Q3.
• So also, of the 3 projects we made efforts to cross the POC threshold in
Q2, only 2 crossed the same.
• In the current year, threshold limit for POC recognition has increased to
50% from the erstwhile 35%
• There are few projects where planned execution has shifted to H2 FY11.
HALF YEARLY FINANCIALS
Standalone Highlights
19This is a proprietary document of Kirloskar Brothers Ltd.
PBT :
• PBT has come down to Rs. 36 Crs ( 4% of Total Income ) as compared to
Rs. 56 Crs ( 6% of Total Income) in PY.
• Reduction in profit is mainly due to reduction in Sales & increase in
threshold limit for POC recognition to 50% from 35%
• We are closely tracking the status of around 10 projects for crossing POC
level in H2 FY11
• We currently estimate that FY11 sales will be more or less same as that of
FY10 but with a better profit
HALF YEARLY FINANCIALS
Standalone Highlights
20This is a proprietary document of Kirloskar Brothers Ltd.
HALF YEARLY KEY FINANCIALS –
Standalone
( Rs in Crores )
Particulars
Sep-10 Sep-09 Sep-08
KEY FINANCIALS
Total Income 841 962 813 2,066
P B D I T 65 90 45 233
P B T 36 58 24 173
P A T 24 39 19 118
CASH PROFIT 38 51 29 144
KEY FINANCIAL RATIOS
P B I D T % AGE 7.7% 9.3% 5.5% 11.3%
P B T % AGE 4.2% 6.0% 3.0% 8.4%
R O C E % AGE 8.3% 15.2% 7.0% 19.2%
Half Year Ending Year Ended
Mar 31,
2010
21This is a proprietary document of Kirloskar Brothers Ltd.
HALF YEARLY KEY FINANCIALS -
Consolidated
( Rs in Crores )
Particulars
Sep-10 Sep-09 Sep-08
KEY FINANCIALS
Total Income 1,179 1,269 1,076 2,680
P B D I T 94 120 53 276
P B T 56 75 36 192
P A T 34 48 24 113
CASH PROFIT 54 67 38 152
KEY FINANCIAL RATIOS
P B I D T % AGE 8.0% 9.4% 4.9% 10.3%
P B T % AGE 4.8% 5.9% 3.3% 7.2%
R O C E % AGE 9.9% 16.6% 8.7% 18.9%
Half Year Ending Year Ended
Mar 31,
2010