Quarterly Results Flash
Carrier Aircon Ltd.
Rs. 100
Date: 29th January, 2001
Industry: Air-conditioners
BSE Code: 79
Company P/E: 12.34x
52-week H/L: 133/66
M Cap: Rs. 2,342mln
Daily traded volume: 33,000
Key Issues :
• Carrier Aircon, with an equity stake of 51% by Carrier Corporation, US, manufactures the widest range of air-
conditioners in India at its plant at Gurgaon, Haryana. The company has 20 offices and 400 exclusive dealers with a
nationwide service infrastructure. The company merits credit for introducing innovative products like cordless splits
and remote-controlled air-conditioners in India.
• Since its inception in 1907, the company, being an integral part of the world's undisputed leader, Carrier Corporation,
US, has unrivalled technology and product base and has ready and immediate access to the strongest line of air-
conditioning products and technology, and the ability to respond quickly to changing market demands by introducing
newer sophisticated and more technologically advanced products.
• The company derives 69% of it’s revenues from air-conditioners, 15% from job service charges, 5% from
compressors, 4% from traded air-conditioners, 4% from AHU/FCU and chillers and the rest from traded items.
• The company has a presence in all segments of the market, which prevents other players from creating niche for
themselves and also helps the company from benefiting an upsurge in demand in any particular segment. The company
has a strong service network across the country giving it the competitive advantage over other players.
•
Intense competition in the industry seems to be major concern for the company. This could have a toll on the topline
and the margins of the company. While growth in the topline could be affected due to increasing competition, margins
could contract due to falling prices. With the air-condition market not being too large to accommodate the new
entrants, growth would come through eating into the market share of others. This would put pressure on the existing
players like Car