ITL

ITL is an established leading metal cutting solution provider offering widerange of machines,tools and cuting lubricants.ITL has been the pioneer in introducing India's first double column type metal cutting machinein theyear 1990 and since then, ITL has supplied more than 2000 machines acrossthe country and global markets.

ITL has started designing and manufacturing of complete turnkey projects as well as equipments for production of tube and pipes which includes tubesmills, draw benches,straightning machines etc, Which are neccesary forproduction of ERW, Seamless pipes and stainless pipes. The company has already exported 2 projects and supplied 3 projects in india. Recently, ITL has developed and manufactured India's first high speed CNCcircular sawing machines and the same has been well accepted by most of the engineering industries.It is a perfect solution for cutting requirements ofmost of the automotive component manufactures and its expected that in times to come, they will shift from conventional cutting machines to circularsawing machines because of their higher productivity and high degree of automotion along with quality cuts.The company is also sitting on a heftyorderbook of around 20crs and its increasing all the time.

Financial Performance: For FY05, Company had acheived sales of 17.20 CRS with a NP of a mere 40lakhs. On equity of 3.30 CRS., EPS stood at 1.30.ITL's profits was not high because steel prices had gone up substantially over last 2 years.The companyhad undertaken 4 export orders based on the then prevailing steel prices atlow margins to enter the export market. With surge in steel prices, Its margins were effected. Going forward,Company plans to put escalation clauseinto its contracts.

Future Prospects:The enggineering industry in India is on an upswing on the back of huge demand from the contruction,infrastructure and capital goods sector. This has resulted in an increase in the demand for metal cutting machines. ITL is well placed to take advantage of this oppurtunity as it is a leader in high speed sawing technology and is in the process of establishing itself inthe domestic and global markets as an innovative and reliable "Cuttingsolution provider". Its current employee strength stands at 210, With 55Engineers, Of which 18 are in the CAD department. Moreover there are 9Engineering,2 Polytechnic and 3 ITI colleges at Indore, Thereby giving thecompany a locational advantage to attract new talent.

Wide Product Range: Itl has a wide product range in metal cuttingsolutions.The company offers 60 different models of brandsaw machinesranging from 100 MM TO 1,500 MM cutting capacity with Manual, SemiAutomatic, Automatic and fourth generation CNC machines. On the back of itstechnical tie up with a German company ,ITL manufactures 3 models of KatoSawing machines with cutting capacities of 250 MM and 400 MM diameter inIndia as per KLasto technology. Further, ITL is the hub fortube technology for leading manufactures.With technical know-how from varios Mnc, Itoffers state of art equipment craftedby a highly experienced technical team.Its tube mills have acapacity ofmaking 20 inch diameter tubes/pipes. All This makes ITL a Pioneer in cutting technology and also places it at an advantage over it peers,Thus ITL is best positioned to capitalize on the demand arising from the tube and pipe manufacturing sector. The company was among 5 corporates who participated in the exhibition held at Germany. There has been an excellent response to the company's productsas it has received 61 inquiries with trial orders for 25 machines estimatedat RS. 30M.The consignment is to be shipped by December 2005. Further, The company has represntatives in U.S.A. and Germany, which helps it to maintain relationship with its exisiting customers and also acquire new customers. ITL is set to appoint 5 dealers,one each in UK, Poland, Germany, Turkey andSouth Africa to capture a share of the export market.

For FY07, ITL is likely to acheive turnover of RS. 35 CRS. and NP of RS.3.65 CRS. which will give EPS of 12. ITL is trading at just 8.2 times of FY06E earnings and just above 3.4 times FY07E earnings

60% can be bought right now at 35 levels n rest at 28-30 levels.....solid support arnd those levels