• Sales of the company posted a single-digit growth of 5% for the quarter ended June’07 at Rs 118.86 crore. Most of the upside in % terms has come from Air Solutions business. Segment revenue of Air Solutions business grew by 61% to Rs 76.93 crore (or 65% of total sales). Whereas the segment revenue of CT&CVT (continuing business) registered a growth of 12% to Rs 22.33 crore (or 19% of total sales). The CT & CVT (discontinued business) that does the toll manufacturing of drilling equipments under the divestment agreement between the company and Atlas Copco posted a segment revenue of Rs 19.60 crore, down by 56%, accounting 16% share in total sales. With the divestment of Climate Control business to Thermo King effective July 1, ’06 the contribution from this segment was Nil as against Rs 0.71 crore in the corresponding previous period.
• Operating profit margin on year on year basis expanded by 500 basis points to 12.1%, owing to overall control in costs. The segment margin of CT & CVT Continued business has dropped marginally to 18% as against 18.7% in the corresponding previous quarter. The segment margin of Air Solutions shot up to 16.2% as against 7.8% in the corresponding previous period. As proportion to sales net of stocks the material cost declined by 189 bps to 69.6% and staff costs by 174 bps to 9.6%. Other expenses decreasedas well to 9.1% (from 10.3%).
• Most of the upside at operating profit level has come from Air Solutions business segment with its segment profit growing by 235% to Rs 12.48 crore (or 75% of total PBIT). The segment profit of CT&CVT (continuing business) was higher by 8% to Rs 4.03 crore (or 24% of total sales). Whereas that of CT & CVT discontinued business reported a profit of Rs 0.18 crore as against Rs 3.38 crore in the corresponding previous period.
• Other income was higher by 74% to Rs 12.27 crore. The interest cost was higher by 84% to Rs 0.90 crore and depreciation was lower by 19% to Rs 1.20 crore. The PBT before EO was thus higher by 88% to Rs 24.55 crore.
• There was an EO income to the extent of Rs 187.45 crore (Nil in corresponding previous quarter) towards profit from sale of road development business. The Road development business was sold to Volvo India Private Limited on May 4, 2007. Inflated by EO income, the PBT after EO zoomed to Rs 212 crore as against Rs 13.04 crore in the corresponding previous quarter.
• With tax incidence at Rs 53.10 crore (including fringe benefit tax and deferred tax) the PAT finally stood at Rs 158.90 crore as against Rs 8.38 crore in the corresponding previous quarter.

• Provision for current taxation, deferred taxation and fringe benefit tax of Rs 53.1 crore for the three months ended June 30, 2007, has been made on an estimated basis. The actual tax liability of the Company will be determined on the basis of taxable income of the Company for the year April 01, 2007 to March 31, 2008.

• The Company has adopted revised Accounting Standard 15 on Employee Benefits effective April 01, 2007. The net of deferred tax liability of Rs 1.44 crore (without considering the employees of road development business since sold), based on actuarial valuation towards sick leave upto the previous year has been adjusted to the opening balance of General Reserve and the related Deferred Tax asset of Rs 0.75 crore has been recognized.

• The Guidance Note on implementing revised Accounting Standard 15 on Employee Benefits issued by the Accounting Standards Board states that provident funds set up by employers, which require interest shortfall to be met by employer, need to be treated as defined benefit plan. Pending the issuance of the Guidance Note by the Actuarial Society of India, the Company has not obtained the actuarial valuation for provident fund liability.

• Ingersoll Rand India Ltd has informed BSE that Ingersoll Rand Company Ltd, USA, the Company's parent Company on July 30, 2007 has announced that it has agreed to sell the Utility, Attachments and Bobcat business worldwide to Doosan Infracore.
  
  The proposal for sale of the utility, attachments and Bobcat business, which forms part of the Construction Technologies and Compact Vehicle Technologies segment, of the Company will be placed before the Board of Directors for its consideration.

Valuation

The paid up equity share capital of the company is Rs 31.57 crore and face value is Rs 10. The EPS for fiscal ended Mar ‘07 stands at Rs 14.6. The stock currently quotes at Rs 352.10.