Description
This is a documentation is about company analysis of Punj lloyd limited.
Construction Industry 1. Industry Trends: Construction Industry Trends all over the world show a rise in its rate of growth. This industry is composed of many components including construction of heavy and civil engineering (highways, bridges, railway tracks, airports, etc.), real estate (both residential as well as commercial) development, and specialized construction products (such as architectural products, electrical connections, decorative items, etc.). All these segments cannot be expected to show similar trends and in fact are showing differential growth pattern all over the world. Globally Construction Industry Trends • Construction industry contributes a huge portion to the world GDP amounting to 1/10th of the same. • This industry has immense potential in generating huge amount of employment. It has been found out that construction industry offers employment to around 7% of the total employed work force around the globe. • Construction Industry is the largest sector in respect of consumption of energy. It consumes around 2/5th of the total consumed energy throughout the world. The most significant aspect associated with the construction industry trends is increased use of the latest IT technologies for pacing up the work. Cutting edge technology is being adopted by world's one of the biggest industries for leveraging purposes and is mainly being used in raising the efficiency level of engineering and designing of construction industry. It has been found out that the paper oriented format of operation in the construction industry is not at all a cost effective approach because it eats around sixteen billion US dollars in US real estate sector only. Construction Industry Trends show that the utilization of information technology has helped the industry to save a lot of fund which could be channelized in more fruitful directions. The Indian construction company has recorded a consistent double-digit growth during last two decades. The key drivers of this growth are government investment in infrastructure creation and real estate demand in residential and industrial sectors. The construction industry is second largest industry in India after agriculture. Construction activity is an integral part of a country’s infrastructure and industrial development. Some of recent trends in Indian construction industry: 1. Public-private partnerships : Public-private partnerships have emerged as one of the significant modes of infrastructure financing. Government of India has taken several initiatives. 2. Increasing demand for housing : Housing sector is poised to witness unprecedented demands 3. Widening Demand-Supply Gap: The demand for the housing, commercial buildings is very high, but supply is limited. 4. 100 % FDI in construction industry
The government has allowed 100 % foreign direct investment in construction industry. 2. PEST Analysis: 1. Political Analysis: ? SEZ to boost infrastructure development ? FDI liberalization to augment industry growth ? Cement prices reduced for state infrastructure project 2. Economic Factors ? Growth in construction Industry stimulate GDP growth 3. Social Factors ? Rising urbanization to boost construction industry ? Green building in India 4. Technological Factors ? Low technology adoption to hinder growth ? Ready-mix-concrete being experimented with 4. SWOT Analysis: Strengths, weakness, opportunities and threats faced by the industry A: S: 1. Employment and training opportunities in the field of construction 2. Private sector housing boom 3. Construction of the multi building projects on the feasible locations of country W: 1. Changing skill requirement and an ageing workforce 2. Improve in long term career prospects is highly required. O: 1. Continuous private sector housing boom 2. Public sector projects through public private partnership 3. Developing supply chain through involvement in large projects T: 1. Long term market instability and uncertainty 2. Current economic situation 3. Lack of political unwillingness Punj Lloyd 1. Company description Punj Lloyd Ltd. is a total engineering construction company with activities including cross country pipelines, tank ages, cryogenic system, oil & gas, petrochemicals, oil & gas piping projects, piping jobs, industrial construction, effluent treatment, fertilizers, bridges, highway engineering, civil engineering, &
construction for the power and irrigation, water supply, water treatment, distribution networks, on-shore & off-shore pipelines, infrastructure services, broadband services. Punj Lloyd’s operations are spread across the Middle East, the Caspian, the Asia Pacific, Africa, south Asia, Turkey and Georgia. The company has 13 subsidiaries including subsidiaries in Kazakhstan and Indonesia, and 12 project and marketing offices including the United Kingdom, Tunisia, Libya and Saudi Arabia. The company has worked on projects for international energy majors such as ADNOC, British Petroleum, Cairn Energy, Pertamina, Petrokazakhstan, Petroleum Development Oman, Shell, Total and Tengizchevroil as well as energy majors in India such as BPCL, CPCL, Dabhol Power Company, Essar Refineries, GAIL, Gujarat Gas, HPCL, IOC, Jindal Power, Kochi Refineries, Nuclear Power Corporation, OIL, ONGC, RIL, NHAI, DMRC. Punj Lloyd also enjoys various accreditations such as the ISO 9001:2000 QMS, the ISO 14001:1996 EMS, and the OHSAS 18001:1999 OHSMS from Det Norske Veritas (DNV). With a continuing surge on in the global prices of oil and the enormous investments in the infrastructure and power sectors in the developing countries particularly India, Punj Lloyd Ltd. has positioned itself as a significant player in the engineering and construction sector and expects to leverage the robust opportunities. 2. General information Punj Lloyd limited (PLL) was incorporated as Punj Lloyd engineering pvt. Ltd. On 26th September 1988with the specific aim of taking over all the engineering, turnkey & general construction activities along with other specialized technical services business of the erstwhile Punj Sons Pvt. Ltd. This had been in business since 1954. Punj Sons Pvt. Ltd. Was a large diversified business group engaged in activities ranging from general construction to specialized activities such as pipe laying, insulation etc. Punj Lloyd Engineering Pvt. Ltd. was renamed Punj Lloyd Pvt. Ltd. on July 11, 1989. On conversion into a public limited company on 22nd July 1992 the name was changed to Punj Lloyd Ltd. Name of Directors Designation Mr. Atul Punj Chairman & Managing director Mr. VK Kaushik Jt. Managing director & COO Mr. Uday Punj Working Director Mr. Luv Chhabra Director Finance and CFO Mr. Tarwinder Singh Working Director Mr. HK Kaul Working Director Mr. Sandeep Bakshi Independent Director Mr. Karamjit Singh Butalia Independent Director Mr. Manish Kejriwal Independent Director Mr. Alain Aboudaram Independent Director
Mr. Keith Nicholas Henry Independent Director Mr. Naresh Kumar Tehran Independent Director Mr. Rajan Jetley Independent Director
Company Secretary Mr. Dinesh Thairani Auditors S. R. Batliboi & Co. Registered Office Punj Lloyd House, 17-18, Nehru Place, New Delhi – 110019 India 3. Financial performance Annual results in brief Mar ' 12 Sales Operating profit Interest Gross profit EPS (Rs) 6,161.35 801.19 546.91 273.33 1.74 Mar ' 11 4,193.24 190.38 310.11 167.23 0.37 Mar ' 10 7,203.06 470.63 263.80 234.28 11.06 Mar ' 09 6,945.64 798.56 194.28 605.94 10.58 Mar ' 08 4,488.57 514.43 113.28 454.34 7.30
Annual Consolidated Results for FY2012 ? Consolidated Income for FY2012 is Rs 10,784 crore as compared to Rs 8,160 crore in FY2011 ? EBIDTA at Rs 1,124 crore in FY2012 compared to Rs 749 crore in FY2011 ? PBT at 193 crore in FY2012 compared to Rs 16 crore in FY2011 ? PAT at Rs 92 crore in FY2012 compared to loss of Rs (60) crore in FY2011 ? Basic EPS stands at Rs 2.77 Q4FY2012 Financial highlights ? Consolidated Income at Rs 3,055 crore in Q4FY2012 as compared to Rs 2,304 crore in
Q4FY2011 ? EBIDTA at Rs 272 crore in Q4FY2012 compared to Rs 251 crore Q4FY2011 ? PBT at 16 crore in Q4FY2012 compared to Rs 45 crore in Q4FY2011 ? PAT at Rs 9 crore in Q4FY2012 is the same as that of Q4FY2011 ? Basic EPS stands at Rs 0.27
SWOT Analysis: ? Strengths : 1. Excellent ‘track record’ (since 1988) 2. Presence in Asian and European market (Indonesia, Oman, Turkey etc.) 3. ISO 9002 and ISO 14001 company 4. Highly competitive in terms of cost with its competitors. Weakness: 1. Weak presence in Power sector Opportunities: 1. Infrastructure sector, in India, opening with emphasis on Water and Sewerage, Roads, Ports etc. 2. New market areas available, like Africa & Central Asia. 3. Major pipeline network planned in India and Bangladesh Treats: 1. Unstable political conditions in African and Asian countries 2. Entry of foreign companies in Indian market
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PEST Analysis 1. Political Analysis: ? Political Unrest in Mid-east causing concern ? Good partnership with state governments 2. Economic Factors ? Growth in Infrastructure Development Industry stimulate profit
3. Social Factors ? ? Rising urbanization to boost construction industry Green building in India
4. Technological Factors ? Low technology adoption to hinder growth
doc_768846223.docx
This is a documentation is about company analysis of Punj lloyd limited.
Construction Industry 1. Industry Trends: Construction Industry Trends all over the world show a rise in its rate of growth. This industry is composed of many components including construction of heavy and civil engineering (highways, bridges, railway tracks, airports, etc.), real estate (both residential as well as commercial) development, and specialized construction products (such as architectural products, electrical connections, decorative items, etc.). All these segments cannot be expected to show similar trends and in fact are showing differential growth pattern all over the world. Globally Construction Industry Trends • Construction industry contributes a huge portion to the world GDP amounting to 1/10th of the same. • This industry has immense potential in generating huge amount of employment. It has been found out that construction industry offers employment to around 7% of the total employed work force around the globe. • Construction Industry is the largest sector in respect of consumption of energy. It consumes around 2/5th of the total consumed energy throughout the world. The most significant aspect associated with the construction industry trends is increased use of the latest IT technologies for pacing up the work. Cutting edge technology is being adopted by world's one of the biggest industries for leveraging purposes and is mainly being used in raising the efficiency level of engineering and designing of construction industry. It has been found out that the paper oriented format of operation in the construction industry is not at all a cost effective approach because it eats around sixteen billion US dollars in US real estate sector only. Construction Industry Trends show that the utilization of information technology has helped the industry to save a lot of fund which could be channelized in more fruitful directions. The Indian construction company has recorded a consistent double-digit growth during last two decades. The key drivers of this growth are government investment in infrastructure creation and real estate demand in residential and industrial sectors. The construction industry is second largest industry in India after agriculture. Construction activity is an integral part of a country’s infrastructure and industrial development. Some of recent trends in Indian construction industry: 1. Public-private partnerships : Public-private partnerships have emerged as one of the significant modes of infrastructure financing. Government of India has taken several initiatives. 2. Increasing demand for housing : Housing sector is poised to witness unprecedented demands 3. Widening Demand-Supply Gap: The demand for the housing, commercial buildings is very high, but supply is limited. 4. 100 % FDI in construction industry
The government has allowed 100 % foreign direct investment in construction industry. 2. PEST Analysis: 1. Political Analysis: ? SEZ to boost infrastructure development ? FDI liberalization to augment industry growth ? Cement prices reduced for state infrastructure project 2. Economic Factors ? Growth in construction Industry stimulate GDP growth 3. Social Factors ? Rising urbanization to boost construction industry ? Green building in India 4. Technological Factors ? Low technology adoption to hinder growth ? Ready-mix-concrete being experimented with 4. SWOT Analysis: Strengths, weakness, opportunities and threats faced by the industry A: S: 1. Employment and training opportunities in the field of construction 2. Private sector housing boom 3. Construction of the multi building projects on the feasible locations of country W: 1. Changing skill requirement and an ageing workforce 2. Improve in long term career prospects is highly required. O: 1. Continuous private sector housing boom 2. Public sector projects through public private partnership 3. Developing supply chain through involvement in large projects T: 1. Long term market instability and uncertainty 2. Current economic situation 3. Lack of political unwillingness Punj Lloyd 1. Company description Punj Lloyd Ltd. is a total engineering construction company with activities including cross country pipelines, tank ages, cryogenic system, oil & gas, petrochemicals, oil & gas piping projects, piping jobs, industrial construction, effluent treatment, fertilizers, bridges, highway engineering, civil engineering, &
construction for the power and irrigation, water supply, water treatment, distribution networks, on-shore & off-shore pipelines, infrastructure services, broadband services. Punj Lloyd’s operations are spread across the Middle East, the Caspian, the Asia Pacific, Africa, south Asia, Turkey and Georgia. The company has 13 subsidiaries including subsidiaries in Kazakhstan and Indonesia, and 12 project and marketing offices including the United Kingdom, Tunisia, Libya and Saudi Arabia. The company has worked on projects for international energy majors such as ADNOC, British Petroleum, Cairn Energy, Pertamina, Petrokazakhstan, Petroleum Development Oman, Shell, Total and Tengizchevroil as well as energy majors in India such as BPCL, CPCL, Dabhol Power Company, Essar Refineries, GAIL, Gujarat Gas, HPCL, IOC, Jindal Power, Kochi Refineries, Nuclear Power Corporation, OIL, ONGC, RIL, NHAI, DMRC. Punj Lloyd also enjoys various accreditations such as the ISO 9001:2000 QMS, the ISO 14001:1996 EMS, and the OHSAS 18001:1999 OHSMS from Det Norske Veritas (DNV). With a continuing surge on in the global prices of oil and the enormous investments in the infrastructure and power sectors in the developing countries particularly India, Punj Lloyd Ltd. has positioned itself as a significant player in the engineering and construction sector and expects to leverage the robust opportunities. 2. General information Punj Lloyd limited (PLL) was incorporated as Punj Lloyd engineering pvt. Ltd. On 26th September 1988with the specific aim of taking over all the engineering, turnkey & general construction activities along with other specialized technical services business of the erstwhile Punj Sons Pvt. Ltd. This had been in business since 1954. Punj Sons Pvt. Ltd. Was a large diversified business group engaged in activities ranging from general construction to specialized activities such as pipe laying, insulation etc. Punj Lloyd Engineering Pvt. Ltd. was renamed Punj Lloyd Pvt. Ltd. on July 11, 1989. On conversion into a public limited company on 22nd July 1992 the name was changed to Punj Lloyd Ltd. Name of Directors Designation Mr. Atul Punj Chairman & Managing director Mr. VK Kaushik Jt. Managing director & COO Mr. Uday Punj Working Director Mr. Luv Chhabra Director Finance and CFO Mr. Tarwinder Singh Working Director Mr. HK Kaul Working Director Mr. Sandeep Bakshi Independent Director Mr. Karamjit Singh Butalia Independent Director Mr. Manish Kejriwal Independent Director Mr. Alain Aboudaram Independent Director
Mr. Keith Nicholas Henry Independent Director Mr. Naresh Kumar Tehran Independent Director Mr. Rajan Jetley Independent Director
Company Secretary Mr. Dinesh Thairani Auditors S. R. Batliboi & Co. Registered Office Punj Lloyd House, 17-18, Nehru Place, New Delhi – 110019 India 3. Financial performance Annual results in brief Mar ' 12 Sales Operating profit Interest Gross profit EPS (Rs) 6,161.35 801.19 546.91 273.33 1.74 Mar ' 11 4,193.24 190.38 310.11 167.23 0.37 Mar ' 10 7,203.06 470.63 263.80 234.28 11.06 Mar ' 09 6,945.64 798.56 194.28 605.94 10.58 Mar ' 08 4,488.57 514.43 113.28 454.34 7.30
Annual Consolidated Results for FY2012 ? Consolidated Income for FY2012 is Rs 10,784 crore as compared to Rs 8,160 crore in FY2011 ? EBIDTA at Rs 1,124 crore in FY2012 compared to Rs 749 crore in FY2011 ? PBT at 193 crore in FY2012 compared to Rs 16 crore in FY2011 ? PAT at Rs 92 crore in FY2012 compared to loss of Rs (60) crore in FY2011 ? Basic EPS stands at Rs 2.77 Q4FY2012 Financial highlights ? Consolidated Income at Rs 3,055 crore in Q4FY2012 as compared to Rs 2,304 crore in
Q4FY2011 ? EBIDTA at Rs 272 crore in Q4FY2012 compared to Rs 251 crore Q4FY2011 ? PBT at 16 crore in Q4FY2012 compared to Rs 45 crore in Q4FY2011 ? PAT at Rs 9 crore in Q4FY2012 is the same as that of Q4FY2011 ? Basic EPS stands at Rs 0.27
SWOT Analysis: ? Strengths : 1. Excellent ‘track record’ (since 1988) 2. Presence in Asian and European market (Indonesia, Oman, Turkey etc.) 3. ISO 9002 and ISO 14001 company 4. Highly competitive in terms of cost with its competitors. Weakness: 1. Weak presence in Power sector Opportunities: 1. Infrastructure sector, in India, opening with emphasis on Water and Sewerage, Roads, Ports etc. 2. New market areas available, like Africa & Central Asia. 3. Major pipeline network planned in India and Bangladesh Treats: 1. Unstable political conditions in African and Asian countries 2. Entry of foreign companies in Indian market
? ?
?
PEST Analysis 1. Political Analysis: ? Political Unrest in Mid-east causing concern ? Good partnership with state governments 2. Economic Factors ? Growth in Infrastructure Development Industry stimulate profit
3. Social Factors ? ? Rising urbanization to boost construction industry Green building in India
4. Technological Factors ? Low technology adoption to hinder growth
doc_768846223.docx