The Company is venturing into the green energy segment by making a foray into solar power, wind energy generation and LED (light emitting diode) lighting. The company has recently launched Numeric Solar Energy Private Ltd, a 100% owned subsidiary for this purpose. The objective was to offer specialised and standard solar product range to support every need to conserve energy under the Renewable Energy programme combined with energy-efficient LED lighting solutions for a wide range of applications. The company was planning a 1 MW solar project in Coimbatore, where it has a 1.5 MW windmill farm with an outlay of Rs 25 crore. The company would also be investing in LED lighting systems. The company would be buying solar cells from Japan and Germany and configure panel modules and assemble them. The Company could be making a foray into the precision air-conditioning space with a strategic partner.

Quarterly Performance (Standalone)

Numeric Power Systems has reported 10% rise in net sales at Rs 113.58 crore for the quarter ended December 2009. The operating margins improved 340bps at 11.9%. As a % of sales (net of stock adjustments), consumption of raw material consumed decreased 570bps at 45.1% and other expenditure was down 280bps at 10.4%, whereas, purchase of traded goods increased 410bps at 23.3% and employee cost increased 90bps at 9.4%.

Operating profits grew 54% at Rs 13.51 crore. The other income for the quarter decreased 27% at Rs 2.19 crore. The interest cost decreased 18% at Rs 1 crore and depreciation charge increased 26% at Rs 1.17 crore. The resultant PBT increased 40% at Rs 13.52 crore.

Tax provision for the quarter decreased 11% at Rs 3.77 crore with effective tax rate at 27.9%. The resultant PAT surged 80% at Rs 9.75 crore.

Nine months Performance (Standalone)

For the nine months ended December 2009, net sales grew 9% at Rs 322.05 crore. The operating margins improved 240bps at 11.8%. As a % of sales (net of stock adjustments), purchase of traded goods dipped 90bps at 23.9% and other expenditure dipped 430bps at 10.2% whereas consumption of raw material increased 160bps at 44.7% and employee costs was up 120bps at 9.4%.

The resultant operating profits grew 36% at Rs 37.92 crore. Other income increased 41% at Rs 5.42 crore. Interest outgo was down 35% at Rs 2.44 crore and 31% increase in depreciation charge at Rs 3.47 crore, the resultant PBT before EO grew 47% at Rs 37.44 crore. EO income of Rs 6.44 crore for the corresponding period previous year pertains to gain on transfer of shares in the joint venture to the other partner Socomec SA, France. PBT after EO was up 18% at Rs 37.44 crore. Tax provision increased 12% at Rs 9.73 crore. The resultant PAT stood at Rs 27.71 crore up 20%. PAT before EO was up 66% at Rs 27.71 crore.

Shareholding Pattern

As of December 31, 2009, total foreign investors hold 0.72% (0.63% at the end of sequential quarter), Promoters hold 63.19% (63.19% at the end of sequential quarter), MFs/FIs & Banks hold 6.05% (6.24% at the end of sequential quarter), and others hold 30.05% (29.96% at the end of sequential quarter). None of the shares of promoter/promoters group are pledged.

The shares of the Company are trading at Rs 300.6 which discounts the standalone TTM EPS of Rs 37.6 by 8 times.