RTS POWER

i have got inside news of this company hitting 150 levels soon....one shld keep a watch on this one....i have got position in this stock....buy according to one risk capacity...right now 70.....was suggested at 55 levels 2 weeks bck.


The turnover of the company showed significant improvement during the year. The turnover during the year was 47.72 Crores against Rs.41.46 Crores during the previous year. This is an improvement by 15%. The Company earned a Net Profit of Rs.94.05 Lace as against Rs.12.43 Lacs during the previous year. This indicate an improvement of profit by 756.64%. The Company could achieve this turnover amist keen competition. The consolidation and cost cutting measures have yielded results. The demand of the transformers showed a increasing trend. The financial position of our main customer i.e. State Electricity Boards remain very tight. Undue delay in payment by SEB's have adversely effected the liquidity of the Company. Continuous abnormal price hike of the major Raw Materials like copper, CRGO, Steels, T.Oil both in India and Internationally have caused hardship to the Company's activities to some extant. The scancity of CRGO has also effected the production and the profitability. FUTURE OUTLOOK The Company is continuing it's process of consolidating it's existing operation and optimisations of the use of available resources with reduction in cost at all levels in order to overcome the present competitive business climate. With the privatisation / corporatisation of the State Electricity Boards the Company is hopeful of improvement in the overall scenario. The world Bank is also financing project in the rural sector. The World Bank aided projects will boost the demand of the transformer. Since the payment is secured by the world Bank the liquidity of the Company will improve. APDRP Projects have come up in a big way. This has accelerated the demand of all the substation equipments in which Transformer is one the main item. This will to some extent help the industry which is struggling hard with the problem of over capacity / over production for past few years. Your Company, is also making effort to explore the export market for transformer, Transformer related components, active parts and other accessories. Your Directors are anticipating reasonable profit during the current year if every things moves reasonable
MANAGEMENT DISCUSSION AND ANALYSIS Industry Structure and Development The Company is manufacturing Power and Distribution Transformers. Which are mainly supplied to different State Electricity Board's / Government / Semi Government organization power utilities factories, multi-storied buildings etc. The production capacity includes Power & Distribution Transformers ranging from 10 KVA to 10 MVA 11/33/66 KV Class and Extra High Voltage Power Tranformers upto 40 MVA 132 KV Class. Opportunity and threats Power being the absolute need of every house hold, commercial establishment industry, this is the main thrust area of Govt. of India. The Central Government is stressing on power supply to every household even in the remotest village of India under the minimum need programme. The privatisation of State Electricity Board's is progessing at reasonable pace. This Will increase the efficiency of the generation, transmission and distribution. APDRP Projects have come up in a big way. This has accelerated the demand of all the substation equipments in which Transformer is one the main item. This will to some extent help the industry which is struggling hard with the problem of over capacity / over production for past few years. The competition being fierce, the selling prices are under pressure so as the margins. The price of major raw materials like copper, iron & steel, CRGO, T.Oil have risen sharply in Indian / International markets. The margins are under threat due to this sudden and unexpected increase. The payment crisis from State electricity Board's still continues. Review of performance The production of Power and Medium Power Transformer has shown a increasing trend. The Company's turnover for the year ended 31.03.2005 increased to Rs.47.73 Crores as against Rs.41.46 Crores during last year. Outlook Power sector is priority sector and the Central Government is giving this sector full thrust. Transformer being a key electrical equipment in transmission and distribution of electricity, the Company can expect transformer industry to do well.

favourable devlopments are taking place. current order position is very good around 80 crs. floating stocks is very less.

keep watch for upmove