Modern Insulator Limited Unlisted Shares

(i) Modern Insulators limited is the leading porcelain insulator manufacturer in India. It is an arm of the Modern group of Industries and was set up in 1985 in collaboration with Siemens, Germany. Modern Insulators is also India’s largest manufacturer and exporter of porcelain insulators and is closely associated with National and Regional Utilities, Indian Railways, OEMs & EPC companies worldwide.

(ii) Modern is an ISO 9001 & ISO 14001 Certified Company and also India’s largest exporter of porcelain insulators with exports exceeding USD 15 million to more than 50 countries. Their plant has also undergone extensive modernization to ensure our products meet the safety and life cycle requirements of utilities, industries, and OEMs globally.

(iii) They were the first company to introduce porcelain Long rod insulators in India – a superior alternative to disc insulators with an unbeatable pollution performance. MIL also introduced an exclusive aluminous body for porcelain insulators- proven for its improved mechanical and electrical strength.

(iv) Modern Insulators’ manufacturing plant is situated in Abu Road, Rajasthan and has a currently installed capacity of 26,000 metric tonnes per annum and exports account to about 30% of its annual turnover. Modern has the most sophisticated manufacturing plant with machinery imported from Germany along with the required testing and inspection facilities and an in-house R&D setup recognized by the Government of India for development of new products & process improvements.

Products of the Company

1. Hollow Insulators

2. Solid-Core Insulators

3. Long-Road Insulators

Industry Overview

The power generation, transmission, and distribution sector is the key growth driver for the Insulators industry. The Government of India is putting emphasis on power sector reforms to overcome impediments; it will, however, take some time before on-ground demand improvement is visible. Over the past few years, demand in domestic insulators market has been sluggish, primarily due to the poor or financial health of state utilities, which has impacted new projects and delay in the execution of on-going projects.

Modern Insulator Limited Unlisted Shares Details:

Total Available Shares:	1381
Face Value:	₹ 10 Per Equity Share
Lot Size:	200 Shares
Current Unlisted Share Price:	₹ 65 Per Equity Share
Retail Discount:	Bulk Deal (1%)

Promoters And Management:

(i) Shri Sachin Ranka – Chairman & Managing Director. (ii) Shri Shreyans Ranka – Whole Time Director. Qualification: Bachelor in Industrial Engineering from University of Illinois at Urbana Champaign, USA & Masters in Management at Imperial Business School, London and have expertise in Finance and Corporate Management. He is 30 Year old. (iii) Shri D.B. Deshpande – Executive Director. Qualification: B.E Electricals and he looks after Electrical Engineering and Corporate Management. He is 68 Years old. (iv) Shri T.C. Chejara – Non-Executive Director Qualification: Chartered Accountant and he looks after Finance and Accounts. He is 67 Years old.

Financials of Modern Insulator Limited Unlisted Shares:

( Fig. in Lakhs ) 1. Revenue, PAT and EPS Analysis

Year	Revenue	EBITDA	OPM	PAT	NPM	Shares	F.V.	EPS	CE	RoCE
2016	46750.88	4,810.02	10%	2920.6	6%	471.44	10	6.20	29,404.33	10%
2017	52002.16	4,424.10	9%	2988.46	6%	471.44	10	6.34	28,828.37	10%
2018	41598.71	3,957.42	10%	1663.01	4%	471.44	10	3.53	30,916.00	5%
2019	44834.18	4,461.62	10%	2552.45	6%	471.44	10	5.41	33,477.05	8%
CAGR	-1%	-2%		-4%

2. Debt and Net-worth Analysis

Year	Long-Term Debt	Short-Term Debt	Total Debt	NW	Debt/NW	RONW
2016	24.86	5904.60	5929.46	26477.21	0.22	11%
2017	37.20	7277.67	7314.87	26092.31	0.28	11%
2018	32.96	8339.11	8372.07	25827.41	0.32	6%
2019	90.10	9195.82	9285.92	28313.58	0.33	9%

3. Current Ratio, Receivable days and Cash-flow Analysis

Year	CA	CL	Current Ratio	Receivable Days	CFO	Capital Exp.	FCF
2016	18312.45	10818.34	1.69	61	908.15	465.31	442
2017	24486.54	14124.18	1.73	78	-865.36	952.5	-1817
2018	21740.00	14732.87	1.48	91	3584.42	347.38	3237
2019	23956.42	14744.99	1.62	76	3093.46	510.93	2582

UnlistedZone Analysis of 2018-19 Financials 1. The revenue from operation for the year has been 440.05 crores as against 408.94 crores in the previous year and net profit for the year stood at 24.86 crores as against 16.86 crores as compared to the previous year. So, overall a decent set of numbers for Modern Insulators. 2. The company has done the business of 392 Cr from Insulator division and 47 Cr from Terry Towels. The Insulator business has shown a profit of 50 Cr while Terry Towels has shown a loss of 6.14 Cr at the EBITDA level. The Terry Towels division has shown marginal improvement in performance however incurred losses mainly due to lower capacity utilization. 3. Export Division The company is one of the major exporters of H.T. Porcelain Insulators from India. The Company has achieved an export turnover of 98 crores as compared to 92 crores in the previous year. The company in 2018-19 has tapped & revived potential customers especially from Europe, the USA, Turkey, and Russian market. To become competitive in the international market, the company is doing tremendous efforts by exploring the new markets for insulators with RTV coating & by developing high strength insulators. This would help the company to strengthen the ability to cater to the diverse needs of global customers and strengthen its presence in all corners of the global market. The company is also continuously focusing on economizing the manufacturing by way of R&D activities. 4. Oppurtunities The future of the Insulator industry looks promising as insulator demand is expected to improve in medium-term with Central Electrical authority targeting to upgrade the distribution lines and adding new substations. Railway electrification in the country also is on full swing and the company is expecting substantial growth in the current year and coming years. Modern Insulator Annual Report 2018-19 Modern Insulator Annual Report 2017-18

Company Address:

A-4, Vijay Path, Tilak Nagar, Jaipur - 302 004 (Rajasthan) Ph. : 0141-4113645 E-mail : modernjaipuroffice@gmail.com

Discussion on Modern Insulator Limited Unlisted Shares:

Business Performance in 2017-18

Operation:

During the year under review, the performance of the Company has been satisfactory looking at the overall global scenario of the Industry. During the year, despite a challenging environment; the company has registered a growth of 4.42%. The revenue from operations (net of excise duty) for the ya ear has been 403.19 crores as against Rs. 386.14 crores.

Exports:

The company is one of the major exporters of H.T. Porcelain Insulators from India. The Company has achieved an export turnover of 92 Cr during the year as compared to 101 Cr in the previous year. The export has been impacted mainly because of stiff competition from China and the slowdown of the global economy. However, during the year the company has been able to sustain exports at a satisfactory level because of good quality and timely delivery. In addition, they also tapped & revived potential customers especially from Europe, the USA, Turkey and Russia. The company has concluded a yearly contract with Siemens to cater to its worldwide requirement for units in Germany, Brazil, and Mexico.

December 2019 Quarterly Results link

https://dyvmwwyqozzzb.cloudfront.net/main/10bc5088-c445-4c74-9b90-a08af36bf25f.pdf

During the FY17-18 the Scheme of arrangement between Modern Insulators Limited (“Demerged Company” or “MIL”) and Modern Polytex Limited (“Resulting Company” or “MPL”) and their respective shareholders and creditors under sections 391 and 394 of the Companies Act, 1956 (Presently sections 230 to 232 of the Companies Act, 2013) for demerger of the Yarn division of the Company into MPL, was approved by the Hon’ble National Company Law Tribunal, Principal Bench at New Delhi vide its order dated December 12, 2017,

Pursuant to the Scheme, yarn division of MIL has been transferred to and vested in MPL who shall issue one equity shares of MPL for every two equity shares to the shareholders of MIL i.e. 1,08,71,750 equity shares of Rs. 10 each as fully paid up. Your Company and MPL are in the process of completing the formalities relating to allotment of shares of MPL to the eligible shareholders and listing the same.

The shares of the Company were listed in BSE and but trading is suspended by BSE. The company has already filed an appeal with BSE to revoke the suspension.

Company has filed application for revocation of suspension of trading on 07.02.2017 and it is noted that the company has initiated and made some compliances of listing and SEBI Regulations However, the application of revocation is in process and trading is still suspended of the company