Ingersoll Rand products are widely appreciated in the market for their superior quality and reliability. With a strong sales presence in over 15 locations across the country and a strong national distributor network, Ingersoll-Rand (India) is a dominant player in its business of providing compressor solutions for the Infrastructure development, Industrial Solutions and Climate Control markets.

December 2013 quarter results – sales stagnant, PAT fall 35%

For the quarter ended December 2013, Ingersoll-Rand (India) registered sales of Rs 166.24 crore against Rs 166.31 crore. OPM crashed from 9.8% to 3.0% which saw OP fall 70% Rs 4.92 crore.

Other income grew 11% to Rs 17.57 crore.

As Interest cost grew 700% to Rs 56 lakh and depreciation jumped 48% to Rs 1.84 crore, PBT fell 35% to Rs 20.09 crore.

Taxation fell 34% to Rs 6.94 crore after which PAT slumped 35% to Rs 13.15 crore.

Nine month results

For the nine months ended December 2013, Ingersoll-Rand (India) registered 2% fall in sales to Rs 442.91 crore. OPM crashed from 10.2% to 5.3% which saw OP fall 48% Rs 23.64 crore.

Other income grew 1% to Rs 50.81 crore.

As Interest cost grew 217% to Rs 76 lakh and depreciation jumped 46% to Rs 5.40 crore, PBT fell 26% to Rs 68.29 crore.

Taxation fell 30% to Rs 22.75 crore after which PAT fell 24% to Rs 45.54 crore.

The company has cash of Rs 473 crore, which translates into cash per share of Rs 150

As on March 2013, the company had cash and bank balance of Rs 473 crore. This translates into cash per share of Rs 150.

The company is expected to utilize this cash by way of acquisition and/or distribution to the shareholders in the form of dividend/buyback.

Valuation

The share price trades at Rs 370.