Company Details

Phoenix Lamps Limited ( Formerly known as Halonix Limited ) has emerged as the largest manufacturer of

Automotive Lighting. Capitalizing on technologically superior three state-of-the-art manufacturing plants, we

are able to successfully cater to the growing needs of our products in the Aftermarket, Original Equipment

Manufacturer (OEM) market and across the the globe.

Promoted in the year 1991 as an Indo Japanese Joint Venture, is counted amongst the most preferred

manufacturers and suppliers of Halogen Lamps for Automotive. The company saw change in ownership in

the year 2007 and was taken over, by Actis, a major Private Equity player. After which, there has been a

reorganization in the management structure that has resulted in increased business activity across the

globe. With a investment of USD 70 million, the company set up five fully integrated state-of-the-art

manufacturing plants located at Noida. Each plant is managed by skilled manpower. With a collective

capacity of producing over 150 millions lamps annually, company have been able to successfully execute

bulk orders and thus have captured a major portion of the domestic and international markets.

It has a wide range of products including light emitting diode (LED), High Mast, Luminaires, Home

Decorative Lighting, street Lights and Halogens. The Company’s subsidiaries include Halonix Technologies

Limited, International Lamps Holding Company S.A., Luxlite Lamps S.a.r.l Luxembourg and Trifa Lamps

Germany GmbH.

The current market capitalisation stands at Rs 313.82 crore.The company has reported a standalone sales

of Rs 63.63 crore and a Net Profit of Rs 7.97 crore for the quarter ended Sep 2014.

Category No. of Shares Percentage

Other Companies 1,181,620 4.22

Foreign Promoters 19,644,679 70.11

General Public 6,338,148 22.62

Foreign Institutions 560,000 2.00

Foreign - NRI 289,953 1.03

NBFC and Mutual Funds 4,200 0.01

Financial Institutions 700 0.00

Market Cap (Rs Cr) – 313.83

Company P/E – 7.32

Industry P/E – 12.87

Book Value (Rs) – 53.09

Dividend (%) – 160%

EPS (TTM) – 15.31

Dividend Yield (%) – 14.29%

Face Value (Rs) - 10

Share Holding Pattern Financial Details

Industry Details

Automotive lighting market is dependent on demand in automotive industry. In recent years, it has been

observed that the automotive industry is expected to grow at a promising rate; hence, the automotive lighting

market is expected to grow significantly in terms of value and volume. Automotive lighting enhances the look

of vehicle, exteriors as well as interiors. Development of LED lighting technology helps automobile

manufacturers in minimizing the energy consumption.

The key factors driving the market for automotive lighting include strict government regulations, low energy

consumption in LED lighting systems, high purchasing power of the consumers and enhancing demand for

advanced technologies. However, high costs involved in research and developments (R&D) and high costs of

LED lighting systems are the factors restraining the market growth. Furthermore, increasing production of

automotives in BRIC nations shows great opportunities for this market.

Global automotive lighting market is expected to reach an estimated value of $28.6 billion by 2019. The major

drivers of automotive lighting market are increasing vehicle production, concern for road safety, lighting

legislations by various governments, and higher efficiency of LED automotive lighting technology. Asia

Pacific is leading the global automotive lighting market with strong growth in vehicle production. Global

Automotive Heads-up Display Market 2014-2018 research report forecasts 44.13% CAGR for the industry to

2018. This research covers the present scenario and the growth prospects of the Global Automotive Heads-up

Display market for the period 2013-2018.

According to “India Lighting Fixture Market Forecast & Opportunities, 2018” the home lighting fixture market in

India is expected to grow at the CAGR of 17% during 2013-2018. The market for lighting fixtures in India is

witnessing an influx of energy efficient products such as green lighting luminaries. The increasing focus

towards energy efficiency is pushing the demand for energy efficient lighting across the country. The

increasing emphasis towards solar lighting, particularly for outdoor lighting purposes is also contributing to the

market growth.

Balance Sheet

Mar '14Mar '13 Mar '12 Mar '11 Mar '10

Sources Of Funds

Total Share Capital 41.18 41.18 41.18 41.18 41.18

Equity Share Capital 28.02 28.02 28.02 28.02 28.02

Preference Share Capital 13.16 13.16 13.16 13.16 13.16

Reserves 74.65 65.39 89.60 83.89 94.01

Networth 115.83 106.57 130.78 125.07 135.19

Secured Loans 33.19 129.58 149.06 132.54 132.43

Unsecured Loans 14.96 13.57 0.00 0.00 0.00

Total Debt 48.15 143.15 149.06 132.54 132.43

Total Liabilities 163.98 249.72 279.84 257.61 267.62

Gross Block 184.33 321.39 285.74 285.95 268.51

Less: Accum. Depreciation 116.46 195.15 183.11 175.74 162.63

Net Block 67.87 126.24 102.63 110.21 105.88

Investments 0.00 0.00 0.25 0.25 0.00

Inventories 96.43 133.10 99.83 79.06 88.34

Sundry Debtors 57.07 103.93 123.14 106.25 98.06

Cash and Bank Balance 24.26 27.12 24.79 24.49 11.64

Total Current Assets 177.76 264.15 247.76 209.80 198.04

Loans and Advances 40.17 21.14 14.33 8.17 12.49

Total CA, Loans & Advances 217.93 285.29 262.09 217.97 212.66

Current Liabilities 77.21 139.22 74.45 68.92 52.64

Provisions 44.68 22.58 11.09 10.26 10.45

Total CL & Provisions 121.89 161.80 85.54 79.18 63.09

Net Current Assets 96.04 123.49 176.55 138.79 149.57

Total Assets 163.97 249.73 279.82 257.62 267.62

Profit and Loss Account

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

Income

Sales Turnover 494.03 483.14 466.67 432.69 456.16

Net Sales 494.03 483.14 453.39 418.72 442.45

Other Income 60.39 5.34 0.66 1.62 -13.92

Stock Adjustments -16.01 -0.84 11.65 -4.78 -5.63

Total Income 538.41 487.64 465.70 415.56 422.90

Expenditure

Raw Materials 281.15 325.16 279.46 254.22 290.51

Power & Fuel Cost 17.00 20.95 13.10 22.62 18.89

Employee Cost 64.03 63.66 56.79 51.52 44.02

Miscellaneous Expenses 68.87 64.96 71.03 58.63 2.55

Total Expenses 431.05 474.73 425.12 396.05 401.70

Operating Profit 46.97 7.57 39.92 17.89 35.12

PBDIT 107.36 12.91 40.58 19.51 21.20

Interest 14.53 20.61 22.85 16.60 16.66

PBDT 92.83 -7.70 17.73 2.91 4.54

Depreciation 15.02 15.88 14.09 13.45 13.00

Profit Before Tax 77.81 -23.58 3.64 -10.54 -8.46

PBT (Post Extra-ord Items) 77.81 -23.58 3.64 -11.71 -13.20

Tax 11.41 0.50 -2.06 -1.59 -0.56

Reported Net Profit 66.39 -24.07 5.70 -10.11 -19.98

Net P/L After Minority Interest & Share Of Associates 24.21 -24.07 5.71 -8.95 -15.25

Total Value Addition 149.90 149.56 145.66 141.83 111.18

Equity Dividend 44.83 0.00 0.00 0.00 0.00

Per share data (annualised)

Shares in issue (lakhs) 280.19 280.19 280.19 280.19 280.19

Earning Per Share (Rs) 23.70 -8.59 2.04 -3.61 -7.13

Book Value (Rs) 36.64 33.34 41.98 39.94 43.55

Dividend History

Company and Index comparison

PBIT – 6.23 v/s -1.69

RoCE – 30.58 v/s -1.18

RoE – 69.41 v/s -7.42

Net Profit Margin – 12.96 v/s -4.92

Return on net worth – 64.66 v/s -25.77

Reserves – 74.65 cr v/s 65.39 cr

PAT – 66.39 cr v/s -24.07 cr

Net Sales – 494.03 cr v/s 483.14 cr

Interest Cover – 3.45 v/s -0.14

Inventory Turnover – 5.12 v/s 3.63

Days BSE NSE

30 117.24 117.14

50 122.74 122.67

150 137.52 137.48

200 133.30 133.32

Important Ratios Simple Moving Average

Buy Pheonix Lamps at current or lower market

levels

Reasons for the recommendations are :

Sound financial position of the company.

Availability of adequate manufacturing facility to meet demands.

Clients includes Maruti Suzuki, Honda Motors, Hero Moto Corp, etc.

Increased and speedy cash flow of the company.

Market leader in automotive halogen bulbs in India with approximately 55%

market share in passenger vehicles, 80% in light commercial vehicles and 70% in

two / three wheelers OEMs.

Growth in Auto and Housing industry will increase the demand of the products.

Recommendations