WPIL LTD

(A Williamson Magor Group Company)

WPIL Limited dedicates itself to the cause of total customer satisfaction. The Company has to its credit a rich experience of more than 50 years in Designing, developing, Manufacturing, Erecting, Commissioning and Servicing of Pumps. Either with the help of erstwhile foreign collaborators such as JOHNSTON PUMPS for Vertical Turbines, HAYWARD TAYLOR for Submersibles and WORTHINGTON for Horizontals; or with the in-house R&D recognised by the Ministry of Science and Technology, Govt. of India, it has grown into one strong brand-WPIL. Understanding the importance of need based operation WPIL Limited now offer System Engineering and complete solutions to all kinds of water and waste water handling and transportation needs

WPIL is a pump making company earlier known as Worthington PUmps India ltd. Govt taken over by Mr.Prakash Agarwal of Hindusthan Udyog limited. The open offer was at Rs60.They hold more than 70 % stake in it. Company has JV with CLYDE WATER PUMPS UK,a multibillion dollar multinational PUMP making company. They have agreeed to manufacture PUMPS for SUPER CRITICAL THERMAL POWER PLANTs in INDIA which currently NO ONE MAKES, India doesn’t have the technology to make those pumps. Clyde has also given a commitment to outsource its major orders to INDIAN facility. The facility for making Pumps for Super Critical plants should be working by Dec09.They have also agreed to have a technology transfer to manufacture Pumps for Nuclear Power plants in INDIA. The company’s fundamentals have already improved and bear testimony to the fact the business is on track,. After the JV plant becoming operational the Revenues should increase by 100 % for next year.

Historical Benchmarks:

1952 Commenced Business Johnston Pumps India as JV of Johnston,US.
1982 License from Hayward Tyler,UK for Submersible Motor.
1983 JV with Worthington name changed -Worthington Pumps India.
1990 CW Pump- 33,100 M3./Hr.,2600 KW, 500 MW NTPC Power Stn.
1995 Association -(Worthington-Ingersol Dresser) ends & name WPIL.
1997 Export Order ($1.7 Million) from Vietnam-Inclined Pump.
2000 Major Breakthrough - $4.44 Mill - Four Lao PDR Pump Station.
2002 APGENCO - Vijaywada Thermal Power Station - CW Pump
2003 Turnkey contract for large CW Pump - NTPC Vindhyachal:500MW
2005 Completing large turnkey project for Drainage Pumping Station in Bagjola near Kolkata comprising of 19 large Propeller Pumps
2006 Major sea water pumps (Duplex SS) for Saudi Arabia-JANA.
2007 Joint venture with Mitsubishi-Japan for contract for Concrete Volute Pumps to be supplied for Indian Project.

Applications :
	Raw Water from River / Sea Clear Water Deepwell Water

Pumps :
	Vertical Turbine, Mixed & Axial Flow Pumps Submersible Pumps Horizontal Splitcase

Understanding the importance of need based operation WPIL Limited now offer System Engineering and complete solutions to all kinds of water and wastewater handling and transportation needs.WPIL is one of the largest players in the large pumps industry, which comprises industrial pumps, and large domestic and irrigation pumps. WPIL is primarily a manufacturer of large vertical pumps. Commencing with small size vertical pumps for use in irrigation, WPIL has upgraded its technology and expanded its product range to include vertical turbine pumps, vertical mixed flow pumps, vertical axial flow pumps, submersible pumps and horizontal pumps. It has successfully absorbed technology from its erstwhile foreign collaborators, and has managed to indigenize it. Specifically, it acquired its vertical2turbine pumps technology (the company's mainstay) from Johnston Pumps, submersible pumps technology from Hayward Tyler, and horizontal pumps know-how from Worthington. Its products are used in irrigation, mining, power, petroleum and chemical industries. The company's main strengths lie in its designed engineering capabilities. It has a very good R&D set-up at its Panihati factory, which is widely regarded as one of the best in the industry. Its future growth would depend upon growth in the power, oil and petrochemicals, chemicals, coal, water supply and steel sectors. Government expenditure in the above industries, and also on agriculture and irrigation, would create future demand for pumps. There can be good demand for WPIL's range of pumps from new power projects. Further, an augmentationof water supply scheme in major cities is expected to yield a demand for vertical turbine pumps. The company has an impressive client list, particularly in the power and irrigation sectors. Of late, it has been increasing its thrust on exports. It is also putting a greater emphasis on turnkey projects.

OPERATIONS:

 The Company continues to grow with a dramatic growth in sales and profits for the Financial Year 2008-09. It is extremely encouraging to see balanced growth across the 3 divisions. Furthermore, a strong order intake in this financial year gives a comfortable opening order back log to support this growth.   The   management of the Company has planned   for   enhanced infrastructural    requirement/   technical   expertise    and    marketing organizations to ensure this growth. Clear strategic focus on the verticals of Power /Municipal/ Irrigation and Industry is envisaged to continuously pursue new opportunities. Total  revenues  of  the Company for the year  2008-09  was  16606.99  lacs representing  a growth of 42.55% (Rs. 11649.65 lacs for the  previous  year ended  March, 31, 2008). The Net profit after taxation was Rs. 827.88 lacs as against Rs. 495.47 lacs in the previous year signifying a robust growth of 67.09%. Earnings per share grew by 167.04% to Rs. 10.39 from Rs. 6.22 of last year. This growth in sales and profits is a result of greater volumes achieved due to capacity expansions previously undertaken. This growth is also  due to enhanced market penetration in the Irrigation  and  Industrial sector  along with the growth of the Project division. The Company intends to further consolidate its market presence and increase its market share on the   back of clear marketing strategies and enhanced   manufacturing capacities. It is to be noted that considerable capital investment has been made this year to create these capacities.

OPERATIONAL REVIEW:

 Kolkata Division: 

The  Kolkata division of the Company has been greatly strengthened  by  the Taratala  facility and  this  enhanced throughput  led  to  an  impressive performance. The division executed prestigious orders for NTPC / RRVUNL/ AP EGENCO / NLC stations in the power sector and Maharashtra/ Andhra Pradesh Irrigation   departments in the  irrigation  sector.  It also   exported specialized pumps to Australia and Saudi Arabia.

The  Company  successfully  conducted  model test  for  large  volute  pump turbines for I & CAD Department, Andhra Pradesh in collaboration with  MHI, Japan. This should lead to further opportunities in this niche sector.There has been addition of large machines at both its Panihati and Taratala facility along with the addition of a new, fabrication facility at Ganipur. These additions will help to quickly convert its growing order book.

Ghaziabad Division: 

The division continues to enhance its capabilities and grow its revenues by another 50% in2008-09. The Horizontal pump facility increased its number as well as extended its capability to larger sizes and special materials. The facility has a large order book for its products and sees good growth in numbers. Alongside, the standard verticals and engineered submersibles have been continuously growing and serving the client base.

Infrastructure Division:  

The turnkey project division has been a very positive focus for the Company as it greatly enhances the Company's capability to serve its markets.  The enhanced offering by the Company satisfies a need rather than performs a function. The Company has now a very established team of professionals who understand and cater to the market needs. The division strengthened its presence in the Industrial sector by booking orders from Salem Steel Plant and Vedanta Aluminium.  Furthermore,  all projects  in  hand  at  NTPC/  Kolkata  Drainage/  Andhra  Irrigation   are progressing well and are in advanced stages of completion. Large number of prospects is being pursued and the division has good opportunities to grow.

FUTURE OUTLOOK:

On  the  strength of its strong order book and rapid growth  in  power  and infrastructure  sectors along with adequate steps taken by the  Company  to enhance  its  manufacturing  capabilities and strengthen  its  project  and service  teams  will  allow  the Company to translate  these  orders  into profitable  growth.  The Company is continuously on the lookout for new opportunities of growth in both its present environment and allied areas.

Financial statement:

	Quarter ended			Year to Date			Year ended
	200912 (3)	200812 (3)	% Var	200912 (9)	200812 (9)	%Var	200903 (12)	200803 (12)	% Var
Sales	51.80	31.49	64.50	137.32	92.91	47.80	158.19	109.35	44.66
Other Income	0.09	-0.06	LP	0.32	0.18	77.78	0.41	0.20	105.00
PBIDT	6.67	4.25	56.94	17.17	11.82	45.26	17.32	11.66	48.54
Interest	0.89	1.16	-23.28	2.77	2.99	-7.36	4.12	3.34	23.35
PBDT	5.78	3.09	87.06	14.40	8.83	63.08	13.20	8.32	58.65
Depreciation	0.36	0.30	20.00	1.03	0.83	24.10	1.16	0.78	48.72
PBT	5.42	2.79	94.27	13.37	8.00	67.13	12.04	7.54	59.68
TAX	1.73	0.98	76.53	4.32	2.82	53.19	3.70	2.15	72.09
PAT	3.55	1.81	96.13	8.73	5.17	68.86	8.28	4.95	67.27
Equity	7.97	7.97	0.00	7.97	7.97	0.00	7.97	7.97	0.00

Expecting min 6 cr profit in last quarter and company may end up with 16-18 e.p.s .for this year. Buy this company at c.m.p 194 sl 175 tgt 275 in a3 month time.