a global air conditioning and engineering services · pdf fileuniversal voltas llc – an...

A global air conditioning and engineering services Company

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

� 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

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 air-

conditioners, both window and split units, with manufacturing facility based in Pant Nagar, India (100%)

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 – having executed multi-million dollar projects in over 30 countries.

� No 2 brand in the Indian air conditioner market.

� 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

Rs. in Crores (US$ Mn)

� Sales & Services 4824 1068

� Operating Profit 507 112

� Profit/(Loss) After Tax 385 85

� Total Assets 1134 251

� Net Worth 1085 240

� Share Capital 33 7

� No.of Shareholders 330884740 -

Voltas LimitedFINANCIAL HIGHLIGHTS 2009-2010

(Consolidated

VOLTAS LIMITEDFINANCIAL HIGHLIGHTS

FY 02 - 10

957

13421438

1551

2598

3264

4374

4830

2023

4484

5747

51475096

53905848

7378

10657

9627

0

1000

2000

3000

4000

5000

6000

2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-10

0

2000

4000

6000

8000

10000

12000

Sales and Services - Rs.Crores Number of Employees

(USD Mn)

(86)

(107)

(82)

(60)

(45)

1.30

2.19

2.80

3.373.64

5.04

5.635.30

7.53

0

1

2

3

4

5

6

7

8

9

10

2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

PAT % to Sales

12.41

15.8

18.76

23.827.14

30.9231.85

29.35

33.52

-5

5

15

25

35

45

55

65

75

2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

PAT % to Shareholders' Funds

0.5

0.63

0.5

0.64

0.37

0.28

0.13

0.24

0.03

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-09 2009-2010

Debt/Equity Ratio - %

0.78 0.891.22

1.58

2.23

6.09 6.28

7.6

11.51

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-09 2009-2010

Earnings per Share

18 2530

5060

100

135

160

200

-30

20

70

120

170

220

2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-09 2009-2010

Dividend % on Equity Capital

10.6 12.4

14.7

17.4

33.2 32.4

42.4

35.5

44.7

0

10

20

30

40

50

60

2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

ROCE %

(0.33)1.13 3.60

9.37

24.5024.54

30.00

19.00

25.00

(10.00)

(5.00)

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

EVA %

(*Consolidated Figures)

*

*

Profit before Tax and Exceptional ItemsYear 2005-06 - 2009-10

50677

11546

24864

34692

10297

33533

19154

2514627767

7816

14744

20746

955315512

6382

3280 8116

11788

2565 5477

-5000

5000

15000

25000

35000

45000

55000

Cumulative Quarters

Rs

. in

La

kh

s

2009-10 (Consol) 11546 24864 34692 50677

2008-09 10297 19154 25146 33533

2007-08 7816 14744 20746 27767

2006-07 3280 6382 9553 15512

2005-06 2565 5477 8116 11788

Jun Sep Dec Mar

Note : Current year results are Consolidated. Previous period results are Stand-alone since there is no significant

difference.

VOLTAS LIMITED

FINANCIAL HIGHLIGHTS

Results for year ended 31st March 2010

Highlights of Consolidated Results for year ended 31st March, 2010

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.) 2.29 1.23 7.40 5.59

EPS before Exceptional items net of tax (Re.) 2.06 1.23 7.10 5.08

Return on Net Worth (w/o Exceptional Items) 26% 22% 31% 28%

Debt / Equity ratio 0.04 0.22 0.04 0.22

Quarter Cumulative

Electro-mechanical Projects & Services

ELECTRO-MECHANICAL PROJECTS & SERVICES

� 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:

� 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)

Performance Highlights

ELECTRO-MECHANICAL PROJECTS & SERVICES

Performance Highlights

International business: Contd.

�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.

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)

ELECTRO-MECHANICAL PROJECTS & SERVICES

� Domestic business:

� Impacted by:

� 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

Performance Highlights

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

ELECTRO-MECHANICAL PROJECTS & SERVICESPerformance – Megavol Years

CAGR : Revenue: 27.6%; Results : 45.9%

148%158%NA43%102%ROCE

9.9%7.7%6.7%4.8%5.8%Operating Margins

309.09 213.42 116.99 68.61 68.28 Results

3113.40 2766.79 1744.86 1438.29 1175.12 Revenue

2009-20102008-20092007-20082006-20072005-2006

ELECTRO-MECHANICAL PROJECTS & SERVICES

� Renewed investments and growth in major GCC countries from the 2nd 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

OUTLOOK – INTERNATIONAL BUSINESS

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

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

ENGINEERING PRODUCTS & SERVICES

ENGINEERING PRODUCTS & SERVICES

• 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.

Performance Highlights

ENGINEERING PRODUCTS & SERVICESPerformance – Megavol Years

CAGR : Revenue: 17.8%; Results : 2.5.%

80%49%144%121%249%ROCE

16.4%11.6%20.5%23.6%28.6%Operating Margins

76.84 62.64 113.62 98.42 69.70 Results

468.03 542.19 553.49 416.21 243.35 Revenue

2009-20102008-20092007-20082006-20072005-2006

ENGINEERING PRODUCTS & SERVICES

• 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 coalprojects 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

Outlook

� 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

ENGINEERING PRODUCTS & SERVICES

Outlook (contd.)

UNITARY COOLING PRODUCTS

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

UNITARY COOLING PRODUCTS Performance – Megavol Years

CAGR : Revenue: 26.8%; Results : 1014%

85%34%46%2%- veROCE

10.1%6.0%6.7%0.4%- veOperating Margins

120.29 55.03 55.31 2.58 (33.72)Results

1187.09 922.28 825.94 595.73 459.58 Revenue

2009-20102008-20092007-20082006-20072005-2006

UNITARY COOLING PRODUCTSOutlook- 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

UNITARY COOLING PRODUCTSOutlook - 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

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 at30% 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 electricalsand instrumentation.

Performance of Subsidiaries & JVs

For the year ended 31st March 2010

� Revenue contribution to consolidated Revenue is Rs. 265crs ($58m)

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

Thank you.

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.

Sidra Medical and Research Centre, Doha, QatarSidra Medical and Research Centre, Doha, Qatar

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Barwa City Project, Doha, QatarBarwa City Project, Doha, Qatar

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Ferrari Experience, Abu DhabiFerrari Experience, Abu Dhabi

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Central Market Project T2 & T3 Towers, Abu DhabiCentral Market Project T2 & T3 Towers, Abu Dhabi

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New Hong Kong International AirportNew Hong Kong International Airport

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Emirates Palace Hotel, Abu DhabiEmirates Palace Hotel, Abu Dhabi

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Mall of the EmiratesMall of the Emirates

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Bahrain City CentreBahrain City Centre

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Burj Khalifa, DubaiBurj Khalifa, Dubai

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Formula 1 Racing Track, Abu DhabiFormula 1 Racing Track, Abu Dhabi

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