Alumeco Extrusion...part 2

Projections

Rs. In Crores 9 Months October 2005 to June 2006 12 Months July 2006 to June 2007 Net Sales 66.80 100.40 EBITA 6.06 10.24 PBT 4.69 8.32 PAT# 4.62 8.23 EPS (Annualized) 5.00 6.65

Apart from rs 6.50cr extraordinary item for 2005/2006

(a) Due to the accumulated income tax loss already available, the Company will not be liable to pay income tax for next five years. The difference between PBT and PAT shown above is on account of FBT.
(b). Mr. Wolfgang Ormeloh the new Chairman of the Company regarding the above and is very bullish on the same. Since Danish Company holds 60% of the equity of the Company they are more keen to turns around faster than projected. II. The main strength of this Company is large number of extrusion tools in its inventory. There are more than 3500 tools, each tool costing more than Rs.50,000/-. Besides this, there are also about 1000 standard tools which are essential parts of the extrusion manufacturing process. In all the value of the tools will be about Rs.20 crores. Most importantly if somebody has to manufacture all these tools not only they would require Rs.20 crores as investment but also require about 5 years time to make these tools. This is the most important strength which has been the source for inspiration for the foreigners to invest in the Company. 80% of the tools in the Company will produce products for European Market. The Danish Company which has been helping Company for last four years will continue to export about 80% of our production to European Market. III. The new foundry The Danish shareholders have already approached Industrialization Fund for Developing Countries (IFU) for financing a new foundry for the Company. The Company has been purchasing billets from Behrain, South Africa and China at a premium. The Danish partner has plans to set up new foundry with an investment of Rs.600 lakhs during the year 2006-07 to manufacture billets for captive consumption. The Capacity of this foundry is placed at 10,000 Tonnes per year. With this new foundry, PPL can save about Rs.2 crores per year which will be a straight addition to EBITA from the year 2007-08. IV. Name change : Company’s name has been changed from Pennar Profiles Limited to ALUMECO INDIA EXTRUSION LIMITED . Alumeco A/S, Denmark who are the main shareholders of PPL through a holding Company namely OSI India Holding A/S, Denmark has ozone facilities for conversion of extrusions into automobile components in Germany, Denmark, Sweden, Finland, Norway, Italy and Switzerland. They buy about one hundred thousand tons (1,00,000tonns) of aluminium extrusions per year from China, India, (only PPL), Europe and South America. Ppl is supplying 6000 tonns per anum to Danish parent which is 8 % of their total requirement. Alumeco is not holding any equity in any other extrusions company other than ppl across the globe