3. HIDDEN GEMS – JULY 2011
1. Company Background
WPIL Limited dedicates itself to the cause of total customer
satisfaction. The Company has 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 GHAZIABAD PLANT
Historical Benchmarks:
1952 Johnston Pumps India ‐ A JV of
Johnston, US.
1982 License from Hayward Tyler, UK
for Submersible motor.
1983 Worthington Pumps India Ltd ‐
JV of Worthington.
1990 1st 2 x 500 MW CW Pump order for NTPC Farakka.
2003 First turnkey contract from NTPC Vindyachal 500 MW
2005 Turnkey project for Bagjola Drainage Pumping Station
2006 Major Sea water Pumps (DuplexSS) for Saudi Arabia‐JANA.
2008 WPIL‐CLYDE JV is formed
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4. HIDDEN GEMS – JULY 2011
PRODUCTS
Vertical Turbine Pumps
Range: Capacity upto 40,000
M³/Hr
Power: upto 4000 kW
Vertical Mixed Flow & Axial
Flow Pumps
Range: Capacity upto 45,000
M³/Hr
Power: upto 1500 kW
No. Of Models: 88‐178
Submersible Pumps
Range: Capacity upto 2400
M³/hr,
Power: Upto 750 kW
Speed: 2900/3500 RPM & 1460
/1760 RPM
Power Supply: 50 & 60 Hz
Horizontal Centrifugal Pumps
(Worthington and own Design)
Range: Capacity up to 15,000 M³/Hr
Head upto 190Mtr
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5. HIDDEN GEMS – JULY 2011
APPLICATIONS:
1. Water Supply
Applications :
Raw Water from River / Sea
Clear Water
Deepwell Water
Pumps :
Vertical Turbine, Mixed & Axial Flow Pumps
Submersible Pumps
Horizontal Splitcase
Some Of The Installations :
Cmda, Cmwsa, Kolkata
Delhi Water Supply
City Of Houston, Usa
Pdam ‐ Loa Kulu, Indonesia
2. Irrigation
Source Of Water :
River / Lakes / Canals
Deep TubeWells
Types Of Pumps To Offer :
Vertical Turbine / Mixed & Axial Flow Pumps
Submersible Pumps
Horizontal Split Case Pumps
Some Of The Installations :
Sunghaidareh, Indonesia
Kosi Canal , Nepal
Basantpur, J&K
Tekepar, Maharastra
Barishal Lift Irrigation‐B’desh
Bagjola Drainage ‐ Kolkata
Vientiane Province ‐ Lao PDR
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6. HIDDEN GEMS – JULY 2011
3. Thermal Power Plant
Applications :
Circulating Water
Auxiliary Cooling Water
Ash Water Pump
General Service Water
Pumps :
Vertical Turbine, Mixed Flow Pumps
Submersible Pumps
Horizontal Splitcase Pumps
WPIL PUMPS INSTALLED IN MAJOR THERMAL POWER PLANTS IN INDIA
Some Of The Major Installations :
Ramagundem STPP., NTPC. Capacity : 1500 M3 / HR.
Singrauli STPP., NTPC. Capacity : 16,500 M3 / HR.
Farakka STPP., NTPC. Capacity : 31,500 M3 / HR.
Talcher STPP., NTPC. Capacity : 33,100 M3 / HR.
Budge Budge TPS., CESC. Capacity : 15,500 M3 / HR.
3
Panipat TPS., HSEB. Capacity : 15,000 M / HR.
4. Fire Fighting
Pumps follow NFPA 20 rules
Applications :
Main Pumps
Jockey Pumps
Pumps :
Vertical Turbine Pumps
Horizontal Split Case Pumps
Some Of The Major Installations :
Melbourne Port Corpn, Australia, 1100m3/Hr
Sea Water Haldia Port. W. Bengal, 625 Hp Engine
Mangalore Refineries Ltd. Capacity: 800 M3/Hr.
Gas Authority Of India Ltd. Capacity: 410 M3/Hr.
Madras Refineries Ltd. Capacity: 410 M3/Hr.
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7. HIDDEN GEMS – JULY 2011
5. Sea Water
Applications :
Aquaculture
Raw Water Pump
Shipyards ‐ Dry Dock
Power Plants
Offshore Platform
Fire Water
Pumps To Offer :
Vertical Turbine / Mixed & Axial Flow Pumps
Submersible Pumps
Some Of The Major Installations :
Coromondal Fertiliser, Capacity
Birla Periclase, Visakhapatnam. Capacity : 4500 M3 / HR
Trans Water technologies, Malaysia. Capacity : 600 M3 / HR
Ship Bldg. Centre, DMDE Machinery Test Centre. Capacity : 3500 M3 / HR
Hindustan Petroleum, Vizag. Capacity : 4542 M3 / HR
Food Agriculture Corpn. Rome, Italy. Capacity : 3400 M3 / HR
Hitide Sea Farms ‐ Bangalore. Capacity : 1200 M3 / HR
Jubail Chemical Industries Co. Saudi Arabia : 6,500 M3 / HR
National Thermal Power Corporation ‐ Shimadri : 31,000 M3 / HR ( under execution )
6. Mining & Offshore
Applications :
Mine Dewatering
Offshore Platform Sea Water Lift
Offshore Platform ‐ Fire Water
Type Of Pumps:
Vertical Turbine Pumps
Submersible Pumps
Some Of The Major Installations :
More Than 100 Submersible Pumps Of 250hp At Neyveli Lignite, India.
ONGC ‐ Offshore Platforms
Eastern Coal Fields & Bharat Coking Coal‐Submersible & Vertical Turbine Pumps
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8. HIDDEN GEMS – JULY 2011
7. Nuclear Power Plant
Applications :
Cooling Water Pumps
Auxiliary Cooling Water Pumps
Type Of Pumps:
Vertical Turbine / Mixed Flow Pumps
Some Of The Major Installations :
Nuclear Power Corporation
Kakrapar Atomic Power Project
8. River Water Pumping ‐ Inclined installation
Applications :
Irrigation
Water Supply
Drainage
Some Of The Major Installations :
10 Sets of 24" Mixed Flow Pumps. Capacity : 3600 M3 / HR. Each for Thanh Diem Project,
Vietnam, under Ministry of Agriculture & Rural Development
6 Sets of 18" Mixed Flow Pumps. Capacity : 2000 M3 / HR. Each for Camthuy Project, Vietnam,
under Ministry of Agriculture & Rural Development
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9. HIDDEN GEMS – JULY 2011
RESEARCH AND DEVELOPMENT
R & D facilities of the company are considered one of the best in the industry and
recognized by government of India.
APPLICATION SOFTWARE IN CADD
Hydraulic development software for development and Graphic generation of Hydraulic Profile of
Meridional Section R‐O Plot of Turbine, Mixed Flow and Axial Flow Pumps.
TRANSIENT ANALYSIS
WPIL Limited has developed software capable of predicting transient pressure, locating the
column separation zone at any section in the piping network and runout speed, pressure as well
as flow characteristics of the main pumps following sudden flow interruption.
SEISMIC ANALYSIS
WPIL Limited can prove the adequacy of the structural design of the pump under possible
seismic excitation as per customer requirement. Seismic study was done for pumps supplied to
Kakrapar Atomic Power Project .
SUMP MODEL STUDY
WPIL Limited have developed the expertise of conducting sump Model Study to guarantee
suitable design for uniform and unidirectional flow conditions without any turbulence, eddies,
cortexing as per the norms of Hydraulic Institute USA. The company has successfully
accomplished assignments for CW Pumping System of Panipat Power Station of Harayana State
Electricity Board, Panipat, Kakrapar Atomic Power Project of Nuclear Power Corpn., and for
many others. Study will be conducted at Calcutta Plant or at an Independent Technical Institute.
VIBRATION SELECTION SOFTWARE ON DBASE‐III
IN‐SITU VIBRATION PROBLEM AND ANALYSIS
UPGRADATION
At its Research and Development cell WPIL Limited is continuously working on the upgradation
of various Mechanical and Hydraulic feature of the pumps. The company helps its clients by
installing upgraded features in pumps supplied earlier to increase reliability, life extension and
for energy conservation. Further details please see Refurbishment.
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10. HIDDEN GEMS – JULY 2011
CORPORATE ENGINEERING CENTRE
Corporate Engineering Centre recognized by Department of Science & Technology, Government
of India.
R&D Team with a perfect blend of Knowledge and Experience.
Intelligent Engineering Solutions for Pumps and Pumping Systems.
State‐of‐the‐art Software‐n‐Hardware facilities.
One of the Largest Pump Testing Facilities in India.
Technical tie‐up with Research & Engineering Institutes.
SPECIAL ENGINEERING ANALYSIS
Hydraulic Transient Waterhammer Analysis.
Sump, Forebay and Water carrier channel design.
Water carrier piping network analysis.
EXECUTION ENGINEERING SERVICES
Supervision of equipment and system erection and commissioning.
Pump trouble‐shooting service.
On‐site pump performance study and technical feedback to R&D
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11. HIDDEN GEMS – JULY 2011
2. Recent Developments
WPIL Acquires Mathers Foundry Ltd., July 11, 2011.
WPIL through its International subsidiary, WPIL International (Singapore) has acquired
100% shareholding of Mathers Foundry Ltd.
Mathers is the leading steel foundry in the world for the supply of high integrity castings
to the Pump Industry with the patent to the ZERON LICENSE. The Company is also one of
the few suppliers to the Global nuclear industry with both European approvals and the
prestigious NSSA approval to supply to the Chinese Nuclear Industry. This is a historic
achievement for WPIL as it places it at the forefront of pump technology with access to
the most sophisticated pump manufacturing materials especially for sea water and the
nuclear industry.
WPIL Acquires 51% stake in Sterling Pumps, April 28, 2011
WPIL Limited (formerly Worthington Pumps India Limited) has joined forces with
Sterling Pumps Pty Ltd. by acquiring a substantial 51% share of the Australian
manufacturer. WPIL with its strong heritage of Worthington and Johnson design pumps
is a global player in large engineered water handling pumps for the power, municipal
mining and oil and gas sectors. The investment will be used to strengthen Sterling's
manufacturing and product support base and expand the sales of WPIL's product range
in Australia.
"The management and staff at sterling pumps are pleased to welcome WPIL as a major
partner. This partnership will see Sterling grow into a significant manufacture and
supplier of high quality pumping equipment”. ‐Anton Merry Sterling Pumps.
"WPIL Limited is pleased to have found an ideal partner in Sterling Pumps to strengthen
its presence in the Australian market and further its global ambitions". ‐Prakash
Agarwal, Managing Director, WPIL Limited.
WPIL Limited has floated a subsidiary Company in Singapore in the name of "WPIL
International Pte. Ltd." for development of its global business by contributing to 51 % of
the total paid up Share Capital of the Company.
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12. HIDDEN GEMS – JULY 2011
3. Financial Performance
WPIL net profit rises 57.33% in the March 2011 quarter
Net profit of WPIL rose 57.33% to Rs 7.30 crore in the quarter ended March 2011 as
against Rs 4.64 crore during the previous quarter ended March 2010. Sales rose 16.69%
to Rs 86.08 crore in the quarter ended March 2011 as against Rs 73.77 crore during the
previous quarter ended March 2010.
For the audited full year, net profit rose 17.65% to Rs 15.73 crore in the year ended
March 2011 as against Rs 13.37 crore during the previous year ended March 2010. Sales
rose 4.4% to Rs 220 crore in the year ended March 2011 as against Rs 210.71 crore
during the previous year ended March 2010
WPIL net profit declines 18.92% in the Dec 2010 quarter
Net profit of WPIL declined 49.86% to Rs. 1.78 crore in the quarter ended December
2010 as against Rs. 3.55 crore during the previous quarter ended December 2009. Sales
declined 22.51% to Rs. 40.63 crore in the quarter ended December 2010 as against Rs.
52.43 crore during the previous quarter ended December 2009
Last 6 Quarters Net Sales & Profit
100
90 86.08
80 73.77
70
Rs in Crores
60 52.43
45.86 47.43
50
40.63
40
30
20
10 4.64 7.3
3.55 3.14 3.52 1.78
0
1 2 3 4 5 6
Net Sales 52.43 73.77 45.86 47.43 40.63 86.08
Net Profit 3.55 4.64 3.14 3.52 1.78 7.3
Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11
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13. HIDDEN GEMS – JULY 2011
Current & Expected Earnings:
Particulars
(Rs. In Crores) Jun '10 Sep '10 Dec '10 Mar '11 Jun '11 E Sep '11 E
Audited / Unaudited UA UA UA UA UA UA
Sales Turnover 45.72 47.29 40.62 85.85 78.45 86.67
Other Income 0.14 0.14 0.01 0.23 0.34 0.26
Total Income 45.86 47.43 40.63 86.08 78.79 86.83
Total Expenses 39.91 40.68 36.22 74.15 63.23 69.65
Operating Profit 5.81 6.61 4.4 11.7 15.22 17.02
Total Extraordinary Inc/Exp ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐
Tax On Extraordinary Items ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐
Net Extra Ordinary Inc/Exp ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐
Gross Profit 5.95 6.75 4.41 11.93 15.66 17.28
Interest 0.7 1.02 1.27 1.29 1.77 1.98
PBDT 5.25 5.74 3.14 10.64 13.89 15.30
Depreciation 0.41 0.43 0.44 0.43 0.44 0.44
Depreciation On Assets ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐
PBT 4.84 5.31 2.7 10.21 13.45 15.74
Tax 1.7 1.79 0.92 2.91 4.16 5.21
Net Profit 3.14 3.52 1.78 7.3 9.29 10.53
Prior Years Income/Expenses ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐
Earnings Per Share 3.94 4.41 2.23 9.16 11.66 13.21
Equity 7.97 7.97 7.97 7.97 7.97 7.97
Reserves ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐
Face Value 10 10 10 10 10 10
% of Public Share Holdings 27.32 27.32 27.32 25.51 ‐‐ ‐‐
Expected Earnings for 1st and 2nd Qtr FY 2011‐12:
We expect WPIL Ltd to deliver robust earnings in coming quarters. Company can
synergize its operation on account of recent acquisition of Sterling pumps and Mathers
Foundry Ltd.
WPIL has shown excellent performance in last quarter of FY 2010‐11 and we believe that
the recent acquisitions will benefit WPIL tremendously by giving access to broader
market.
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14. HIDDEN GEMS – JULY 2011
4. Charts & Graphs
i) Share Price Moving Average:
WPIL Ltd is currently trading near to its 50 days and 200 days price moving average.
WPIL is having support at 175 Rs levels.
ii) Comparative Graph:
WPIL Ltd has outperformed Sensex giving returns of 216.33% in last three year. In last
one year WPIL Ltd has underperformed giving negative returns of 17.66% against Sensex
positive returns of 13%.
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15. HIDDEN GEMS – JULY 2011
iii) Performance Chart:
iv) Share holding Pattern:
Promoters share holding was 72.68% since last 3 years but after Dec 2010 Promoters
have increased their holding by 1.8% making open market purchase. Promoter holding
stands at 74.48%.
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16. HIDDEN GEMS – JULY 2011
5. Peer Group Comparison
Andrew Elgi Kabra
PEER GROUP WPIL Ltd Yule Eimco Elecon Equipments Extrusions
CMP 195.65 23.70 225.00 80.00 56.40
52 W H/L 279.00/150.00 47.75/21.10 398.00/213.00 213.00/72.15 206.50/50.60
Market Cap 155.88 755.17 130.94 1266.84 179.93
Results
(in Crores) Mar‐2011 Mar‐2011 Mar‐2011 Mar‐2011 Mar‐2011
Sales 85.85 75.49 55.47 197.13 72.91
PAT 7.30 23.65 3.54 14.45 9.37
Equity 7.97 63.73 5.77 15.85 15.95
EPS 19.75 0.43 23.22 5.14 8.09
P/E 9.91 55.12 9.78 15.55 6.97
6. Key Concerns / Risks
The presence of all major international pump companies in India would be a
threat to Company's growth.
Delay in enough investment in Power sector, increase of operational cost and
import substitution is the cause of concern in coming years.
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17. HIDDEN GEMS – JULY 2011
7. Saral Gyan Recommendation
i) Company management is ambitious to achieve high growth targets in current fiscal
year. Company’s joint venture with Clyde Union Pumps for manufacturing special pumps
for thermal plants and nuclear power plants is expected to bring good business in
future.
ii) In recent buyout, WPIL acquired UK based Mathers Foundry which makes steel
castings used in equipment for the oil and gas, nuclear, paper, chemical and power
generation sectors. Mathers is the sole manufacturer of castings in the ZERON range of
Super Duplex alloys. ZERON is a super duplex stainless steel (with high strength and
corrosion resistant) that resists all forms of corrosion attack in seawater service. This
buyout can open new doors for WPIL in terms of business scalability and expertise.
iii) WPIL is showing steady growth since 2006 and now increased its thrust in waste
water treatment, mining and power plant related pumping systems. Promoters have
recently increased their holding by 1.8% making open market purchase during last
quarter. Increase in promoters holding after 3 years from 72.68% to 74.48% is an
encouraging factor and gives confidence in growth prospects of the company.
iv) The operating margins have improved substantially and are expected to sustain at
current levels. Company has delivered decent growth by taking organic as well as
inorganic route without diluting its equity.
v) At current market price of Rs 195.65, dividend yield works out to be 1.02%. On equity
of Rs. 7.97 crore the estimated annualized EPS for FY 2011‐12 works out to Rs. 42 and
the Book value per share is Rs. 61.53. At a CMP of Rs. 195.65, stock price to book value
is 3.18. Currently, the scrip is trading at 4.5X FY 2011‐12 estimated earnings which make
it an attractive buy at current market price.
Saral Gyan Team recommends “BUY” for WPIL Ltd. at CMP of Rs. 195.65 for a target
price of Rs. 460 over a period of 18‐24 months.
Suggested Buying Strategy:
Buy at Current Market Price (Range: 190 ‐ 196) – 50% of your investments.
Investment Rationale
Buy if stock price corrects by 20% (Range: 170 ‐ 175) – 50% of your investments.
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