Friday, August 1, 2008


Company Profile :

ICSA, a Hyderabad-based solution provider in power distribution segment, supplies customized products for power utilities in the filed of energy management, energy audit and control, data acquisition system using GSM technology. ICSA offers products like intelligent automatic meter reading, distribution transformer monitoring system, agriculture load management etc.

ICSA has diversified into Oil & Gas sector, where it provides solutions for Checking pipeline spill offs, corrosion etc. It does EPC work for the distribution sector but is fast consolidating as a technology solution provider.

Quarterly Results :

ICSA’s Apr-Jun 2008-09 results were above the estimates, with revenue growing 13.8 per cent over Jan-Mar 2007-08, which is seasonally the strongest quarter. Revenue posted for the quarter is Rs 240 crore, EBIDTA at Rs 61.9 crore and PAT at Rs 40.4 crore.

Business Outlook :

ICSA’s order book at the beginning of the fiscal stood at Rs 900 crore and out of the order pipeline of Rs 1,350 crore, it has bagged order worth Rs 225 crore taking its order book to over Rs 1,000 crore. The current order book stands at 1.68X FY08 revenue.

ICSA has been awarded permission by the board of non- conventional energy development corporation of Andhra Pradesh to set up a 20 MW capacity wind power project in Anantpur, Andhra Pradesh and is in the process of setting up wind farm, later which it would enter into the power purchase agreement with DISCOM. However the brokerage has not accounted for capital expenditure for the said project as well as revenue and tax benefits accruing out of it, for their 2008-09 estimates.

ICSA has secured patent registration for two of its designs, automatic meter reading apparatus protector for pipeline for Oil & Gas.

Valuations :

The revised upward revenue estimates for 2008-09 by 15.62 per cent to Rs 1,155 crore.

At the market price of Rs 312 , ICSA is trading at 8x FY09E EPS of Rs 41.6.

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