praveen
19-08-2008, 07:32 AM
By Devdas Mogili
ICSA (India) Ltd. is a 14-year old Hyderabad-based company established in 1994. It provides software development services and technology solutions to the Power, Telecommunications and other sectors. Mr. G. Bala Reddy is the chairman and managing director of the company.
The company’s products include Distribution Transformer Monitoring Systems (DTMS), Theft Detection Device (TDD), Intelligent Automatic Metre Reading (IAMR), General Automatic Metre Reading (GAMR), Computerised Online Data Logging System (CODLS), Energy Audit Services, Pole Top RTU, Micro Remote Terminal Unit (MICRO RTU), Multiplexer Unit (MUX unit) and Intelligent Automatic Water Reading (IAWR): Its latest offerings include Remote Street Light Control System (RSLCS) and Agricultural Load Management System (ALMS).
The company has also forayed into metering solutions to Oil & Gas companies, which supply oil & gas through pipelines. The products include Intelligent Cathodic Protection System (ICAP), Intelligent Telemetric Unit and Off PSP Logger ICSA has developed innovative products for power utilities in energy management, energy audit and control applications and provides a versatile data acquisition system using several communication media like GSM, CDMA, Satellite, Optical fibre and RF.
However, the company’s focus area has been technology solutions for the Power sector to identify Transmission & Distribution (T&D) losses and monitor power consumption using the GSM network. The company has also introduced the remote switching facility in keeping with the Power sector reforms. Its primary goal is to identify distribution losses, which has been a major area of concern for power utilities. ICSA helps power utilities reduce their costs and streamline their operations. Its remote sensing applications can transfer data from power points to the control room through telephone lines and wireless including the GSM technology.
The company has adopted the latest embedded technology segment of the power sector. Power sector products like Substation Controllers, Distribution Transformer Controllers, Automatic Metre Reading Systems etc. are successfully deployed. Its remote monitoring application has numerous applications in a number of other sectors like Oil & Gas, Mining, Irrigation, Transport and Water utilities etc.
The company has joint ventures with Oil India Ltd., in Guwahati, Assam, and Global Digital SDN, BDG, Malaysia. It has technical association with the Indian Institute of Information Technology (IIIT) and has a subsidiary, ICSA International PTE Ltd. in Singapore.
ICSA has entered into MoA with ECE Industries, New Delhi, to purchase all machinery and equipment along with available drawings, designs and data of the energy metre plant of ECE Industries situated in Hyderabad. This transaction would enable ICSA to manufacture the energy metres on its own capacity. This MoA also permits ICSA to use the brand name of ‘ECE’ for a period of 6 months from the date of MOA. Thereafter, these energy metres shall be marketed under the brand name of ‘ICSA’.
Clientele: The company’s clientele includes U.P. Rajkiya Nirman Nigam Ltd. (UPRNNL), Eastern Power Distribution Company of Andhra Pradesh Ltd. (APEPDCL), APSPDCL, Kerala State Electricity Board (KSEB), CESCO, Madhya Pradesh Paschim Kshetra Vidyut Vitran Company Ltd., Maharashstra State Electricity Distribution Company Ltd. (MSEDCL), Nile Energy Engineering Projects (P) Ltd (NEEL), Transmission Corporation of Andhra Pradesh Ltd. (TCAPL), Reliance Energy Ltd, Southco, Oil India Ltd., Ajmer Vidyut Vitran Nigam Ltd (AVVNL) and Elmarc Ltd.
Performance: For FY08, the company posted sales income of Rs.669.78 cr. with net profit of Rs.126.51 cr. netting a basic EPS of Rs.32.01 (FV: Rs.10) and diluted EPS of Rs.26.69 (FV: Rs.10).
Latest Quarter: The company has come out with very impressive results for Q1FY09. It recorded a sales income of Rs.241.50 with net profit of Rs.40.97 cr. registering a basic EPS of Rs.9.31 (FV: Re.2) and diluted EPS of Rs.8.02 (FV: Re.2). Going forward, the annualised basic EPS works out to 37.24 (FV: Re.2) and diluted EPS of Rs.32.08 (FV: Re.2).
Financials: The company has an equity base of Rs.8.80 cr. It has a debt equity ratio of 1.08 and RoNW of 83.98% and RoCE of 60.75%.
Share Profile: ICSA has sub-divided the face value of one equity share of Rs.10 each into five equity shares of Rs.2 each w.e.f. 31/10/2007. Accordingly, the basic and diluted EPS for Q1FY09 has been considered on Rs.2 face value and Rs.10 face value for the corresponding Q1FY08. The company’s shares are listed and traded on the BSE under the
Indonext (S) segment. Its share price touched a 52-week high/low of Rs.649/254. Currently, the share trades around Rs.375 with a market capitalisation of Rs.1655 cr. It has a beta value of 0.9.
Dividends: The company has been paying dividends as shown below:
FY07 - 50%, FY06 - 30%, FY05 - 15%.
Shareholding Pattern: The company’s promoters hold 18.47% while the balance 81.53% is held by non-corporate promoters, financial institutions, mutual funds and the Indian public. Among mutual funds, Escorts Opportunities Fund has added the share to its various schemes.
Prospects: The company has been aggressively concentrating on the Power sector by developing IAMR, DTMS, Sub-station Controllers, TDD, Energy Audit Service, Software Development and Infrastructure for Power etc., which are covered in the energy audit programme to control T&D losses.
ICSA is also developing innovative products like iCAP solutions for corrosion monitoring and control of storage tanks, underground vessels, pontoons and foundation rebars for the Oil & Gas sector. It has also started concentrating on other segments like the Water sector.
The company is also working on new areas like down-hole corrosion, drilling automation, oil wells automation and exploration in the Oil & Gas sector. Furthermore, it is trying to enter into new sectors like mining automation, which is a very big business.
Conclusion: ICSA is a the leading Indian company offering turnkey services for electrical infrastructure projects in power generation, T&D sector, besides industrial electrification projects. The company is executing transmission projects both in India and abroad on EPC basis and HVDS, Rural electrification and Industrial electrification in all parts of India. In a short span, ICSA has gained recognition from all corners by its strong project execution performance.
At its current market price , its EPS is discounted around 11 times, which is also the industry average P/E ratio. Considering its sparkling performance and robust prospects, the share may be considered for investment on any weakness with a medium-to-long-term perspective.
ICSA (India) Ltd. is a 14-year old Hyderabad-based company established in 1994. It provides software development services and technology solutions to the Power, Telecommunications and other sectors. Mr. G. Bala Reddy is the chairman and managing director of the company.
The company’s products include Distribution Transformer Monitoring Systems (DTMS), Theft Detection Device (TDD), Intelligent Automatic Metre Reading (IAMR), General Automatic Metre Reading (GAMR), Computerised Online Data Logging System (CODLS), Energy Audit Services, Pole Top RTU, Micro Remote Terminal Unit (MICRO RTU), Multiplexer Unit (MUX unit) and Intelligent Automatic Water Reading (IAWR): Its latest offerings include Remote Street Light Control System (RSLCS) and Agricultural Load Management System (ALMS).
The company has also forayed into metering solutions to Oil & Gas companies, which supply oil & gas through pipelines. The products include Intelligent Cathodic Protection System (ICAP), Intelligent Telemetric Unit and Off PSP Logger ICSA has developed innovative products for power utilities in energy management, energy audit and control applications and provides a versatile data acquisition system using several communication media like GSM, CDMA, Satellite, Optical fibre and RF.
However, the company’s focus area has been technology solutions for the Power sector to identify Transmission & Distribution (T&D) losses and monitor power consumption using the GSM network. The company has also introduced the remote switching facility in keeping with the Power sector reforms. Its primary goal is to identify distribution losses, which has been a major area of concern for power utilities. ICSA helps power utilities reduce their costs and streamline their operations. Its remote sensing applications can transfer data from power points to the control room through telephone lines and wireless including the GSM technology.
The company has adopted the latest embedded technology segment of the power sector. Power sector products like Substation Controllers, Distribution Transformer Controllers, Automatic Metre Reading Systems etc. are successfully deployed. Its remote monitoring application has numerous applications in a number of other sectors like Oil & Gas, Mining, Irrigation, Transport and Water utilities etc.
The company has joint ventures with Oil India Ltd., in Guwahati, Assam, and Global Digital SDN, BDG, Malaysia. It has technical association with the Indian Institute of Information Technology (IIIT) and has a subsidiary, ICSA International PTE Ltd. in Singapore.
ICSA has entered into MoA with ECE Industries, New Delhi, to purchase all machinery and equipment along with available drawings, designs and data of the energy metre plant of ECE Industries situated in Hyderabad. This transaction would enable ICSA to manufacture the energy metres on its own capacity. This MoA also permits ICSA to use the brand name of ‘ECE’ for a period of 6 months from the date of MOA. Thereafter, these energy metres shall be marketed under the brand name of ‘ICSA’.
Clientele: The company’s clientele includes U.P. Rajkiya Nirman Nigam Ltd. (UPRNNL), Eastern Power Distribution Company of Andhra Pradesh Ltd. (APEPDCL), APSPDCL, Kerala State Electricity Board (KSEB), CESCO, Madhya Pradesh Paschim Kshetra Vidyut Vitran Company Ltd., Maharashstra State Electricity Distribution Company Ltd. (MSEDCL), Nile Energy Engineering Projects (P) Ltd (NEEL), Transmission Corporation of Andhra Pradesh Ltd. (TCAPL), Reliance Energy Ltd, Southco, Oil India Ltd., Ajmer Vidyut Vitran Nigam Ltd (AVVNL) and Elmarc Ltd.
Performance: For FY08, the company posted sales income of Rs.669.78 cr. with net profit of Rs.126.51 cr. netting a basic EPS of Rs.32.01 (FV: Rs.10) and diluted EPS of Rs.26.69 (FV: Rs.10).
Latest Quarter: The company has come out with very impressive results for Q1FY09. It recorded a sales income of Rs.241.50 with net profit of Rs.40.97 cr. registering a basic EPS of Rs.9.31 (FV: Re.2) and diluted EPS of Rs.8.02 (FV: Re.2). Going forward, the annualised basic EPS works out to 37.24 (FV: Re.2) and diluted EPS of Rs.32.08 (FV: Re.2).
Financials: The company has an equity base of Rs.8.80 cr. It has a debt equity ratio of 1.08 and RoNW of 83.98% and RoCE of 60.75%.
Share Profile: ICSA has sub-divided the face value of one equity share of Rs.10 each into five equity shares of Rs.2 each w.e.f. 31/10/2007. Accordingly, the basic and diluted EPS for Q1FY09 has been considered on Rs.2 face value and Rs.10 face value for the corresponding Q1FY08. The company’s shares are listed and traded on the BSE under the
Indonext (S) segment. Its share price touched a 52-week high/low of Rs.649/254. Currently, the share trades around Rs.375 with a market capitalisation of Rs.1655 cr. It has a beta value of 0.9.
Dividends: The company has been paying dividends as shown below:
FY07 - 50%, FY06 - 30%, FY05 - 15%.
Shareholding Pattern: The company’s promoters hold 18.47% while the balance 81.53% is held by non-corporate promoters, financial institutions, mutual funds and the Indian public. Among mutual funds, Escorts Opportunities Fund has added the share to its various schemes.
Prospects: The company has been aggressively concentrating on the Power sector by developing IAMR, DTMS, Sub-station Controllers, TDD, Energy Audit Service, Software Development and Infrastructure for Power etc., which are covered in the energy audit programme to control T&D losses.
ICSA is also developing innovative products like iCAP solutions for corrosion monitoring and control of storage tanks, underground vessels, pontoons and foundation rebars for the Oil & Gas sector. It has also started concentrating on other segments like the Water sector.
The company is also working on new areas like down-hole corrosion, drilling automation, oil wells automation and exploration in the Oil & Gas sector. Furthermore, it is trying to enter into new sectors like mining automation, which is a very big business.
Conclusion: ICSA is a the leading Indian company offering turnkey services for electrical infrastructure projects in power generation, T&D sector, besides industrial electrification projects. The company is executing transmission projects both in India and abroad on EPC basis and HVDS, Rural electrification and Industrial electrification in all parts of India. In a short span, ICSA has gained recognition from all corners by its strong project execution performance.
At its current market price , its EPS is discounted around 11 times, which is also the industry average P/E ratio. Considering its sparkling performance and robust prospects, the share may be considered for investment on any weakness with a medium-to-long-term perspective.