Carrier Airconditioning & Refrigeration

DRHP Status : Not Filed

570

Current Price 570

Market Cap 5798 Cr

ISIN INE040I01011

Face Value 10

P/E Ratio 44

EPS 12.39

P/B Ratio 11.4

Book Value 47.9

Debt to Equity Ratio 0

P&L Statement	2021	2022	2023	2024
Revenue	1218	1612	2197	2131
Cost of Material Consumed	666	1087	1502	1363
Gross Margins	45.32	32.57	31.63	36.04
Change in Inventory	50	-66	-28	-45
Employee Benefit Expenses	152	166	169	177
Other Expenses	309	362	413	461
EBITDA	41	63	141	175
OPM	3.37	3.91	6.42	8.21
Other Income	23	20	24	47
Finance Cost	10	3	2	2
D&A	20	23	21	25
EBIT	21	40	120	150
EBIT Margins	1.72	2.48	5.46	7.04
PBT	33	57	142	195
PBT Margins	2.71	3.54	6.46	9.15
Tax	16	15	32	44
PAT	17	42	110	151
NPM	1.4	2.61	5.01	7.09
EPS	1.6	3.95	10.38	14.21

Financial Ratios	2021	2022	2023	2024
Operating Profit Margin	3.37	3.91	6.42	8.21
Net Profit Margin	1.4	2.61	5.01	7.09
Earning Per Share (Diluted)	1.6	3.95	10.38	14.21

Assets	2021	2022	2023	2024
Fixed Assets	73	68	65	84
CWIP	4	0.6	9	5
Investments	0	0	0	0
Trade Receivables	274	257	324	332
Inventory	251	337	344	379
Other Assets	175	249.4	395	683
Total Assets	777	912	1137	1483

Liabilities	2021	2022	2023	2024
Share Capital	106.3	106.3	106	106.3
FV	10	10	10	10
Reserves	131	166	266	403
Borrowings	0	0	0	0
Trade Payables	372	431	529	687
Other Liabilities	167.7	208.7	236	286.7
Total Liabilities	777	912	1137	1483

Annual Report 2023-2024

Annual Report 2022-2023

Annual Report 2021-2022

Annual Report 2020-2021

Annual Report 2019-2020

Annual Report 2018-2019

Annual Report 2017-2018

Annual Report 2016-2017

Carrier Airconditioning & Refrigeration Limited (Carrier AC) is a global leader in heating, air conditioning, and refrigeration solutions, with a history dating back to the invention of modern air conditioning. As a pre-IPO company, its shares are unlisted and can be traded privately.

Strengths:

Market Leadership and Legacy: Carrier has a longstanding presence in India since 1936, marking the installation of the nation's inaugural air-conditioning system at the Rambagh Palace in Jaipur. This legacy underscores its established market position and brand recognition.
Robust Financial Performance: The company has exhibited consistent financial growth. In FY2024, Carrier reported revenues of ₹2,131 crore, with an EBITDA of ₹175 crore and a Profit After Tax (PAT) of ₹151 crore. Notably, the EBITDA margin improved to 8.21% from 6.42% in the previous year, and the net profit margin increased to 7.09% from 5.01%.
Strong Return Ratios: Carrier's Return on Equity (ROE) stood at 29.65%, indicating efficient utilization of shareholder funds. Additionally, the Return on Capital Employed (ROCE) improved from 17% in FY2023 to 31% in FY2024, reflecting enhanced profitability relative to the capital invested.
Debt-Free Status: The company maintains a debt-to-equity ratio of 0, highlighting its debt-free status and financial stability.

Weaknesses:

High Operational Costs: Carrier incurs significant expenses in research and development, digital transformation, and sustainability initiatives. While these investments are crucial for innovation, they contribute to elevated operational costs.
Intense Market Competition: The HVAC industry in India is highly competitive, with strong global and local rivals impacting market share and pricing strategies. Competitors such as Voltas, Whirlpool, and Blue Star have substantial market capitalizations and influence.
Regulatory Compliance Challenges: Adhering to environmental and energy efficiency regulations imposes additional costs and operational constraints on the company. Compliance with these evolving regulations is essential but can be resource-intensive.
Share Price Volatility: The unlisted shares of Carrier have experienced significant price fluctuations. For instance, the share price was ₹69 in March 2021, peaked at ₹425 in November 2021, corrected to ₹225 by March 2022, surged to ₹440 in February 2024, and is currently trading at ₹650 as of January 2, 2025. Such volatility may concern potential investors.