Kirloskar Brothers plans Business restructuring

Kirloskar Brothers declined 1.77% to Rs 222.50 at 15:07 IST on BSE even as the company said it is reorganising its business into nine divisions to achieve a revenue target of $1 billion by 2011.

The stock hit a high of Rs 225 and a low of Rs 215 so far during the day. The stock had a 52-week high of Rs 527 on 3 October 2007 and the stock hit a 52-week low of Rs 206.40 on 24 March 2008.

The company’s current equity is Rs 21.15 crore. Face value per share is Rs 2.

The current price of Rs 222.50 discounts its Q4 March 2008 annualised EPS of Rs 19.92, by a PE multiple of 11.17.

The business units will deal in products, services and systems and will include irrigation and rural electrification, water resource management and oil and gas divisions. The reorganisation is effective from the first week of June 2008, the company said.

In May 2008, Kirloskar Brother received an order worth Rs 933.76 crore from the Andhra Pradesh state government's Irrigation & CAD Department for building a pump house.

On 15 April 2008, the company received a letter of intent for an order worth Rs 166.77 crore from Damodar Valley Corporation - Kolkata in respect of Koderma thermal power project.

On 1 April 2008, the company received a letter of intent for an order worth Rs 338.92 crore from the Government of Andhra Pradesh, Irrigation & CAD Department in respect of Rajiv Sagar Lift Irrigation project.

Kirloskar Brothers’ net profit rose 43.4% to Rs 52.66 crore on 26.9% increase in net sales to Rs 569.01 crore in Q4 March 2008 over Q4 March 2007.

The company is engaged in manufacturing and selling pumps and compressors. Products of the group include power driven pumps, valves, anti corrosion products, electric motors, spares and others. The group operates in three segments, namely, pump, compressors and others.