Saturday, July 14, 2012

Notes from Indag Rubber Annual Report 2011-12

Financial Performance
Sales and Operating income - 21634.40 from 15027.62 lacs - growth 44%
PBT- 2701 from 1364 lacs -  growth 98%
PAT - 2087 from 1075 lacs - growth 94%
Dividend - Rs 6 per share - 15% of PAT

Debt - Free

Stock price for last year - 82 to 205 - PE range 4 to 10 based on FY 10-11 earnings.
Cash Flow
Net cash flow from operating activities - 1470 lacs (70% of PAT)
Free Cash flow = 1009 (48% of PAT)


- With IT facility, the Company has faster and effective communication with its customers, which further strengthened sales, service and debt collection.

- The growth of tyre retreading industry is fuelled by a number of factors such as rise in prices of tyres, growth in vehicle population, increasing level of radialisation, development of national highways and increased hub & spoke transportation.

- However, the steep rise in the cost of raw materials has already affected the retreading industry.

- OPPORTUNITIES AND THREATS India is still a bias tyre market in the truck segment. However, radialisation is picking up with the fleet operators due to longer life and fuel efficiency. Radial tyres are driven longer before needing to be retreaded compared to bias-ply tyres, which would impact overall retread volumes. With the fast pace of radialisation, retreaders need to upgrade their technology. Indag is imparting its knowledge and experience to various retreaders to deal with new situation arising with radialisation.

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