Indo Asian Fusegear: Turnover up 38%, Exports up 25%

New Delhi, January 30, 2007: Indo Asian Fusegear Ltd. (IAFL), India’s leading manufacturer of electrical switchgears and compact fluorescent lamps today announced the results for Q3FY07 and 9MFY07. Riding on strong growth across its segments, IAFL recorded a 38.14% growth in Turnover during the third quarter of the 2006-07 financial year. Its Turnover for the third quarter increased to Rs 53.93 crore as against Rs 39.04 crore in the corresponding quarter of the previous fiscal. Its Net Profit for the third quarter is at Rs 4.45 crore, up from Rs 4.20 crore in the same period last year.

For the nine-month period ending December 31, 2006, IAFL’s turnover surged 45 %to Rs 148.72 crore as against Rs 102.49 crore a year earlier. The net profit during the period has increased to Rs 12.40 crore as against Rs 11.80 crore during the corresponding period in the previous year despite increased Interest and Depreciation cost for the newly set up Lighting and Wire Plants at Haridwar, the benefits will accrue henceforth.

"The key drivers of growth were exports business, increased demand for energy saving devices, all of which recorded strong double digit growth. The company is also moving forward to expand its existing product categories and new geographies," said Mr V.P. Mahendru, CMD, Indo Asian Fusegear Ltd.

The third quarter saw IAFL entering into tie-up with BSES (Rajdhani & Yamuna), wherein IAFL has floated a joint scheme for wide use of CFLs and introduction of a host of new products - like high energy efficient PLL lamps, FTLs etc. - which have been very well received in the market.

The switchgear business has grown very well. The company is confident of achieving significantly higher margins in this business in the current year. The revenues from the switchgear business in 9MFY07 were Rs 122.94 crore as against Rs 84.15 crore for corresponding period of FY 06. The exports of the division for the 9MFY07 were up at Rs 16.33 crore as against Rs 11.42 crore in the corresponding period of the previous year, an increase of 43%.

Highlights of the performance for the 9MFY07 and Q3FY07

• The planned expansion in the tax free zone of Haridwar, Uttaranchal has started commercial production. The company is adding production lines for CFLS, FTLs and the auto insertion line for electronic ballast.
• Signed MOU with BSES Rajdhani & BSES Yamuna to promote CFL and ELCB to the consumers of BSES in South, East and West Delhi. This MOU covers scheme to provide energy conservation and electrical safety products to consumers of BSES.
• IAFL’s Saudi Arabia foray - construction of the manufacturing plant is progressing and will be completed in the next six months. The plant is being built with an investment of Rs 37.40 crore where IAFL is the technical and Joint Venture partner.
• Indo Simon - JV with Simon, Spain for setting up a Rs 30 crore project at Haridwar, Uttaranchal. The work is progressing as per schedule.

Outlook for the current fiscal

Overall, the outlook for Indo Asian is very optimistic given the fast growth of power sector, construction and infrastructure sectors, strategic thrust on growth of power by the Government of India, and the various initiatives taken up by the Company including:


• Setting up new plants in Uttaranchal which are three large units for the manufacture of world class switchgears, energy efficient lighting products and wires in the tax free zone in Haridwar, Uttaranchal.
• Expansion of existing facilities for Export Production at Noida Plants to satisfy growing export market;
• Setting up of Joint Venture for the manufacture of world class Wiring Accessories including Intelligent Building and Home Automation Products in the tax free zone in Haridwar, Uttaranchal.
• Expansion in overseas countries in Middle East and setting up a new electrical lighting equipment facility in Saudi Arabia in joint venture with a leading Saudi company.
• IAFL is looking opportunities including technical association / acquisitions of suitable strategic partners overseas.

Forward-Looking Statements:- This report contains forward-looking statements, which may be identified by their use of words like ‘plans’, ‘expects’, ‘will’, ‘anticipates’, ‘believes’, ‘intends’, ‘projects’, ‘estimates’ or other words of similar meaning. All statements that address expectations or projections about the future, including but not limited to statements about the company’s strategy for growth, market position, expenditures, and financial results, are forward-looking statements. Forward -looking statements are based on certain assumptions and expectations of future events. The company cannot guarantee that these assumptions and expectations are accurate or will be realized. The company’s actual results, performance or achievements could thus differ materially from those projected in any such forward - looking statements. The company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events.

Source : Equity Bulls

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