© IRIL, 74% subsidiary of Ingersoll Rand – USA, is on strong growth momentum in its only continued Air Solutions (compressors) business on back of high growth in user segments like steel, cement, pharma, petrochemicals, food processing and automotive & auto components. Company has full access to new contemporary products from portfolio of its parent company - a global leader in air solutions business.
© High margin after sales service and spares sale business accounting for 20-25% of air solutions business will grow at higher rate with increase in population of company’s products.
© Company used to incur losses on toll manufacturing of drilling solutions business for Atlas Copco (sold to them 3 years back). These toll manufacturing has been discontinued from December 2007.
© Going ahead, company expects to keep growing at around 25% per annum and reach sales of Rs 1,000 crore by FY 2012.
© Company now has surplus cash of ~ Rs 600 crore, which works out Rs 190/- share. Company may come out with buy back offer or distribute surplus cash.
For FY 2008, Sales from Continuing business of Air Solutions grew @ 26.2% to Rs.394.86 crore (Rs.312.97 crore). PBIT% was almost stable at 12% (11.8%). On reported basis, PBT (before extraordinary items) grew @ 28.4% to Rs.95.32 crore. After accounting for extraordinary income of Rs 211.69 crore realised from sale of Road development business and Utility Equipment & Bobcat business, PBT (after extraordinary items) spurted to Rs.307.01 crore and PAT zoomed to Rs.280.53 crore.
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