Indo Asian - Revenues at Rs134.24 crore, up by 33.90% from Rs 100.25 crore

Press Release

 

 

Indo Asian Fusegear Limited

Regd. Office: 51 kms, G. T. Karnal Road, Murthal, Distt. Sonepat, Haryana - 131027

Corporate Office: 207-08, Hemkunt Tower, 98, Nehru Place, New Delhi - 110019

(BSE Code: 532658, NSE Code: INDOASIFU)

 

Indo Asian: Q2 FY08 – Continued Robust Growth

 

Half Yearly results FY08 (all comparisons with H1FY07)

•    Revenues at Rs134.24 crore, up by 33.90% from Rs 100.25 crore

•    EBIDTA at Rs16.84 crore, up by 32.39% from Rs12.72 crore

•    Exports at Rs 27.76 crore up from Rs.11.72 crores

 

Q2 FY08 Results (all comparisons with Q2 FY07)

·         Revenues at Rs 78.20 crore, up by 41.18% from Rs 55.39 crore

·         EBITDA at Rs 8.76 crore, up by 22.64% from Rs 7.14 crore

·         Exports at  Rs.22.77 crore up from Rs.7.44 crore

 

 

New Delhi; October 31 2007 :- Indo Asian Fusegear Limited, a leading manufacturer of electrical switchgear and energy efficient lighting equipments, today announced its financial results for the second quarter ended September 30, 2007.

 

For the second quarter, revenues increased by a robust 41.18% to Rs.78.20 crores as compared to Rs. 55.39 crores for the corresponding quarter in the previous year. EBITDA grew by 22.64% at Rs.8.76 crores compared to Rs. 7.14 crores in Q2, FY07. N et income stood at Rs.3.83 crores, or Rs.2.61 per share, compared with net income of Rs.4.34 crores, or Rs.2.98 per share.

 

Indo Asian Fusegear Limited results for the second quarter of FY2008 reflect its expansive global reach as exports contributed to Rs 22.77 crores as compared to Rs 7.44 crores in Q2, FY2007.

 

For the first half ended September 30, 2007, revenues recorded at Rs134.24 crores, an increase of 33.90% as compared to Rs 100.25 crore in the corresponding previous period. EBITDA for H1FY08 improved to Rs 16.84 crore, an increase of 32.39% as compared to Rs.12.72 crore in the corresponding previous period. Net profit for the H1FY08 is at Rs 7.48 crore. The Basic Earnings per Share (EPS) (not annualized) for H1FY2008 stood at Rs 5.10.

 

The revenues from the switchgear business in H1FY08 were Rs 118.01 crore as compared to Rs 83.78 crore for H1FY07.

 

The lighting business recorded revenues of Rs 16.23 crore in H1FY08, as against Rs 16.47 crore in the corresponding H1 of the previous year.

 

Commenting on the results and performance, Mr. V.P. Mahendru, CMD, Indo Asian Fusegear Limited said, "The positive trends we highlighted in past reporting have continued to gain momentum this quarter. The second quarter was an excellent quarter for us as we registered strong growth on the back of our increased manufacturing capacity and customer's delight with our innovative product portfolio."

 

"With government emphasis on improving the power scenario and Indo Asian's new initiatives, we believe there are compelling opportunities to accelerate our business, the growth of Revenue & EBITDA are on track for faster growth in the future. We believe that our company is in strong financial shape and we have made the right strategic decisions which are poised to bring substantial future growth."

 

Highlights of the performance in Q2FY07

 

·         Indo Asian has forayed into Power Distribution Business by promoting a new company named "Indo Asian Power Distribution and Infrastructure Ltd".  The company is working on plan to achieve profitable revenue of Rs.150-200 crore per year in the next 5 year from the same. The company will leverage its existing relations with state distribution companies and take over a few areas from the Discoms so that net revenue realization increases.  The company has already received LOIs from Madhya Pradesh Purvi Kshetra Vidyut Vitran Company Ltd. (MPPKVVCL), for Zone-II, City Division, Jabalpur and Prithvipura, Madhya Pradesh to operate as Franchises for Power Distribution and maintenance in Jabalpur, and Prithvipura, Madhya Pradesh.

 

·         Indo Asian Fusegear Limited (IAFL), has signed a MOU with Jaipur Vidhyut Vitran Nigam Ltd.(JVVNL) to promote use of CFL to the consumers of JVVNL in Jaipur. According to the scheme, a consumer of JVVNL would get one CFL free with each CFL of Indo Asian bought from any KIOSK of Indo Asian Fusegear outside the collections centers of JVVNL.

 

Outlook

 

Indo Asian Fusegear Limited witnessed strong growth with increased manufacturing capabilities and continued high customer focus. The company has leveraged its technical expertise to generate new and innovative products resulting in energy efficiency, improved environmental performance, safety and security in the use of Power. Going forward, with heavy investments slated across the value chain in the power sector, which will further positively impact on the performance of the company.

 

Keeping in view of robust demand for company products, it has chalked out major expansion plans. The company has already commenced operations of 3 new state of the art plants and further expansion plans are progressing on schedule. The joint venture with Simon, Spain for India's first world class fully automated Home Automation Products is planned to be operationalize by Q4, FY2008. The Saudi Arabia JV plant is progressing at rapid pace and likely to become operational by Q4 FY08.

 

In FY2008, Indo Asian fusegear Limited is confident maintaining its growth momentum on the back of strong demand in all segments of the product portfolio.

 

About Indo Asian Fusegear Limited

 

Indo Asian Fusegear Limited, founded in 1958, is a leading manufacturer of electrical switchgear and energy efficient lighting equipments. Since its inception, Indo Asian has been a key player in driving the industry to new heights with its innovation led entrepreneurial culture.

 

 

The company manufacturers LT Electrical switchgear equipment producing a wide range of electrical circuit protection equipment including distribution boards, switch boards; switch panels, fuse switches, MCCBs, HRC Fuses, MCBs, RCDs etc.

 

Indo Asian is the first company in India to introduce CFLs in 1997 with technical collaboration with Korea Advance Lighting Company Limited, South Korea. Indo Asian, the country's only fully integrated manufacturer of CFL, also has the distinction of being the first manufacturer complying to BIS parameters. The Company markets its CFLs under the brand "Indo Asian" and is well received all over the country. Indo Asian also exports CFLs to Europe, Middle East and Africa. The company has also launched "Hausmann" range of premium electrical products in Nepal and Sri Lanka. The company has entered into a JV with Simon Holding, Spain to manufacture intelligent switching systems/ home automation system in India.

 

The company has an all India marketing network with regional marketing offices at Delhi, Calcutta, Chennai, Mumbai, Bangalore, Ahmedabad, Baroda, Secunderabad, Coimbatore, Jaipur, Lucknow, Nagpur, Pune and Cochin and has a network of over 500 Authorized Distributors and over 25,000 Electrical Dealers and Retailers.

 

 

 

Forward-Looking Statements :- This report contains forward –looking statements, which may be identified by their use of words like 'plans', 'expects', 'will', 'anticipates', 'believes', 'intends', 'projects', 'estimates' or other words of similar meaning. All statements that address expectations or projections about the future, including but not limited to statements about the company's strategy for growth, market position, expenditures, and financial results, are forward - looking statements. Forward - looking statements are based on certain assumptions and expectations of future events. The company cannot guarantee that these assumptions and expectations are accurate or will be realized. The company's actual results, performance or achievements could thus differ materially from those projected in any such forward - looking statements. The company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events.