TIL Limited (formerly Tractors India), partnering India’s Infrastructure sectors with its technology intensive heavy engineering product range reported its financial results for the year ended March 2010.
On a standalone basis, TIL reported Net Sales/Income of Rs 855 crore for the year 2009-10, this is marginally higher than last year of Rs 845 crore. On a consolidated basis, the Company achieved Net Sales/Income of Rs 1,063 crore, which is in line with last year’s consolidated sales of Rs 1,050 crore.
On a standalone basis the Company reported Profit Before Tax (PBT) of Rs 75.49 crore vis- a-vis last year’s figure of Rs 50.57 crore. On a consolidated basis the reported PBT is Rs 91.36 crore with corresponding figure of last year at Rs 65.30 crore. Earnings per Share (EPS) is Rs 46.72 in 2009-10 and Rs 32.17 in 2008-09 on a standalone basis. Consolidated EPS is Rs 59.35 and Rs 44.59 in 2009-10 and in 2008-09, respectively.
While the company achieved a PBT margin of 8.7%, which is a substantial improvement over last year of 5.8%. EBIDTA margin also improved greatly to 12.5% from a level of 9.9%. The company remains focused on working capital management, maintaining average 12 months’ moving average debtors days’ cover at 57 days, which is in line with last year. The company also maintained its inventory days’ cover at 85 days. The maintenance of lower levels of debtors and inventory translated into an improved current ratio of 1.53 in 2009-10 and an improvement in credit worthiness ratio (TOL / TNW) of 1.17 in the current year. The Company has also been able to achieve a healthy 29% Return on Capital Employed.
Business Segment Results
Material Handling Solutions:
This division accounted for nearly 20% of the Company’s 2009-10 revenue. Revenue declined 9% over that of last year as some segments were still recovering and some customers delayed purchases. The segment margin improved by 4% during this year. The division was able to sell more nos of higher capacity cranes in the 55T/75T category, which yielded higher margin. Moreover, steel prices were lower than last year (steel constitutes approximately 20% of total raw material cost). Combined with product redesign, better component sourcing and rationalization of logistics, resulted to realization of higher margin. Through the division’s continued efforts, capital employed was Rs 92 crore as on 31st March 2010 despite new capital investments being made in the new facility coming up in West Bengal.
The Division also entered into a Technical Collaboration Agreement with Astec Inc, U.S.A for the license and manufacture of the latest technology Hot Mix Asphalt Plant used for road construction.
The Division had an order backlog of Rs 50 crore as on 31st March 2010.
Construction & Mining Solutions:
The revenue for this division in 2009-10 stood at Rs 477 crore, which accounted for nearly 56% of the Company’s revenue. Segment margin improved from 7% to 9% during this year, mainly due to increase in Parts and Service margin, change in product mix and increased sale in Rental segment.
In line with the division’s endeavor to enhance its service business, the new “Component Rebuild Center” in Asansol, West Bengal began operations in 2009.
The capital employed of the division stood Rs 128 crore as on 31st March 2010.
The division is putting all efforts to bolster its order backlog which stood at Rs 100 crore as on 31st March, 2010.
Power Systems Group:
This segment accounted for nearly 24% of the company’s revenue in 2009-10. Revenue grew 17% over that of last year. The segment result declined by 2% during this year due to certain Inventory write-down.
The capital employed of the division was Rs 93 crore as on 31st March 2010.
The Division had a healthy order backlog of Rs 136 crore on 31st March, 2010, includes Rs 113 crore from ONGC.
About TIL Limited:
TECHNOLOGY, INNOVATION, LEADERSHIP - These define TIL as an organization, its attitude and philosophy. Over the past six decades TIL has been partnering India’s Infrastructure growth and has emerged as one of the leading providers of a wide range of equipment that represent some of the finest in global technology. As a responsible nation builder, we remain committed to providing cutting edge technology products and total solutions with the ultimate aim in enhancing customer value.
The Material Handling Solutions division of TIL is engaged in manufacture and marketing of a comprehensive range of state-of –the –art material handling equipment and lifting solutions with integrated customer support. Recently the division has embarked on a robust expansion plan offering road construction solutions, port equipment. The division uses the best technology available in its domain with world class associations such as Grove Worldwide USA, Manitowoc Crane Group- USA, Paceco Corp- USA [a part of Mitsui Engineering and Shipbuilding-Japan], FAMAK-SA Poland. The recent partnerships include NACCO Materials Handling Group, Inc. [NMHG] - a part of NACCO Industries Inc-USA and Astec INC-USA.
Acknowledged as a market leader in mobile cranes, material handling equipment from TIL are reliable, productive and efficient. We are the exclusive dealer for Caterpillar products in North and East India, Bhutan and Nepal. The construction and mining business sells and services a wide portfolio of Caterpillar range of construction and mining equipment. The Power Systems Solutions caters to Caterpillar range of Engines and Genset packages for North and East India, Bhutan and Nepal. We set the industry standard in providing quality power for continuous and standby applications in diesel, gas and heavy fuel configurations as well as package a range of Gensets undertaking turnkey projects and providing after market support under one umbrella.
We also bring world class service solutions like Maintenance and Repair Contract [MARC], Component Rebuild Center [CRC] and Schedule Oil Analysis [SOS] as well as the global concept of providing Equipment on Rent for construction, mining and power applications. TIL and its subsidiaries are well connected with a vast network over 60 branches and area offices to ensuring maximum coverage. At TIL we take our role of responsible nation builder seriously, as we have for the past 65 years. This is a source of pride and inspiration for us. Our passion remains to offer excellence in product support initiatives, prompt customer response and to be the industry benchmark as a Total Solutions Provider.
