JP Associates

8/6/2019 JP Associates

1/12

Please refer to important disclosures at the end of this report 1

Y/E March (` cr) 1QFY12 1QFY11 % chg (yoy) 4QFY11 % chg (qoq)Net sales 3,178 3,214 (1.1) 3,982 (20.2)Operating profit 772.8 682.4 13.3 851.0 (9.2)

Net profit 107.0 105.8 1.2 301.6 (64.5)Source: Company, Angel Research

Jaiprakash Associates (JAL) reported disappointing set of numbers for 1QFY2012.

The companys top line came below our expectations. Consequently, its earnings

disappointed due to subdued top-line growth, high interest cost and tax rate.

However, the companys margin was in-line with our estimates. On account of

poor performance in 1QFY2012, the current scenario of high interest rates (withno letting up in sight) and persistent pessimism surrounding the sector, we have

revised our estimates downwards for FY2012 and FY2013.However, the recent

sharp decline in JALs stock price has brought the stock at attractive valuations of

1.1x P/BV on FY2013E (standalone). Hence, we maintain our Buy view on the stock.Mixed results: On the top-line front, the companys revenue declined by 1.1% yoyto `3,178cr (`3,214cr) vs. our estimate of `3,588cr. Poor performance on the

top-line front was due to the decline in construction and real estate revenue by

11.3% and 5.2%, respectively, on a yoy basis. EBITDA margin came in at 24.3%

(21.2%), registering an improvement of 310bp yoy and in-line with our

expectation of 24.0%. Interest cost stood at`426.4cr, in-line with our expectation.

Depreciation cost came in at`172.1cr, a jump of 14.5% yoy and 14.2% qoq andabove our estimate of`158.2cr. The bottom line came in at`107.0cr (`105.8cr)

vs. our estimate of `199.3cr due to lower revenue, higher depreciation and

higher tax rate (40.4%).

Outlook and valuation: We have valued JALs cement and construction businessat 6x EV/EBITDA (`62.2/share) and (`30.9/share), respectively. We have valued

its power and real estate businesses on mcap basis (giving 15% holding company

discount), which contributes `47.1/share to our target price. The hotel segment

contributes `0.8/share. Treasury shares (`5.2/share) have been valued at the

current market price, whereas net debt is accounted for on a per share basis in

our valuation at `69.9. We maintain our Buy view on the stock with an SOTPtarget price of `76, implying an upside of 31.8% from current levels.Key financials (Standalone)Y/E March (` cr) FY2010 FY2011 FY2012E FY2013ENet sales 10,355 13,217 15,043 17,630% chg 68.4 27.6 13.8 17.2

Adj. net profit 989 653 768 1,071% chg 10.2 (34.0) 17.7 39.3

FDEPS (`) 4.7 3.1 3.6 5.0EBITDA margin (%) 27.9 23.7 24.5 24.4

P/E (x) 12.4 18.9 16.0 11.5

RoAE (%) 13.0 7.2 7.8 10.2

RoACE (%) 10.2 8.5 8.9 10.1P/BV (x) 1.4 1.3 1.2 1.1

EV/Sales (x) 2.6 2.3 2.0 1.7

EV/EBITDA (x) 9.4 9.8 8.3 7.1

Source: Company, Angel Research

BUYCMP `58

Target Price `76

Investment Period 12 Months

Stock Info

Sector

Bloomberg Code

Shareholding Pattern (%)

Promoters 46.8

MF / Banks / Indian Fls 18.8

FII / NRIs / OCBs 20.4

Indian Public / Others 14.0

Abs. (%) 3m 1yr 3yr

Sensex (7.2) (6.7) 15.0

JAL (30.2) (50.7) (48.6)

2

16,8415,057

JAIA.BO

JPA@IN

12,312

1.8

141/56

1,800,828

Infrastructure

Avg. Daily Volume

Market Cap (` cr)

Beta

52 Week High / Low

Face Value (`)

BSE SensexNifty

Reuters Code

Shailesh Kanani022-39357800 Ext: 6829

[email protected]

Nitin Arora022-39357800 Ext: 6842

[email protected]

JP AssociatesPerformance Highlights

1QFY2012 Result Update | Infrastructure

August 17, 2011


2/12

JP Associates | 1QFY2012 Result Update

August 17, 2011

Exhibit 1:1QFY2012 performance (Standalone)

Y/E March (` cr) 1QFY12 1QFY11 % chg (yoy) 4QFY11 % chg(qoq) FY2011 FY2010 % chg (yoy)Net sales 3,178 3,214 (1.1) 3,982 (20.2) 13,217 10,316 28.1Total exp. 2,405 2,532 (5.0) 3,131 (23.2) 10,078 7,464 35.0Op. profit 773 682 13.3 851 (9.2) 3,139 2,852 10.1OPM (%) 24.3 21.2 310bp 21.4 290bp 23.7 27.6 (390)bp

Int. 426 328 30.0 405 5.3 1,394 1,056 32.1

Dep. 172 150 14.5 151 14.2 608 456 33.3

Non op. inc. 5 3 63.4 92 (94.1) 104 39 163.0

Non recurring - 512 - (0) - 341 1,002 -

PBT 180 720 (75) 388 (53.7) 1,582 2,382 (33.6)Tax 73 204 (64) 86 (15.3) 588 673 (12.7)

Reported PAT 107 516 (79.3) 302 (64.6) 994 1,708 (41.8)PAT (%) 3.4 16.1 - 7.6 (420)bp 7.5 16.6 -

Adj. PAT 107 106 1.2 302 (64.5) 653 706 (7.5) Adj.PAT (%) 3.4 3.3 10bp 7.6 (420)bp 4.9 6.8 (190)bp

Adj. EPS (`) 0.5 0.5 1.2 1.4 (64.5) 3.1 3.3 (7.5)Source: Company, Angel Research

Exhibit 2:1QFY2012 Actual vs. Estimates

Estimates Actual Variation (%)Revenue (`cr) 3,588.0 3,177.9 (11.4)

EBITDA margin (%) 24.0 24.3 30bp

Adj. PAT (`cr) 199.3 107.0 (46.3)Source: Company, Angel Research


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August 17, 2011

Exhibit 3:Segmental performance (Standalone)

Y/E March (` cr) 1QFY2012 1QFY2011 % Chg FY2011 FY2010 % ChgSegment RevenueCement & Cement Products 1,527 1,441 6.0 5,456 3,975 37.2Construction 1,275 1,437 (11.3) 6,053 5,589 8.3

Power 12 11 8.4 31 32 (2.0)

Hotel/Hospitality and Golf Course 42 37 14.7 181 154 17.3

Real Estate 347 366 (5.2) 1,712 654 161.9

Investment 5 3 63.4 104 39 163.0

Others 3 4 - 10 26 -

Unallocated 18 30 (40.6) 136 123 10.1

Less: Inter-Segmental Performance 46 112 (59.2) 362 237 52.8

Total Sales Income 3,183 3,218 (1.1) 13,320 10,355 28.6Segment ResultsCement & Cement Products 194 286 (32.2) 840 1,058 (20.6)

Construction 250 105 138.6 927 1,171 (20.9)

Power 7 7 1.4 12 16 (24.6)

Hotel/Hospitality and Golf Course (2) (1) 33.3 16 9 83.6

Real Estate 185 156 18.8 869 260 234.5

Investment 5 3 0.0 104 39 163.0

Others (2) 1 - (4) 7 -

Excep : Profit on Sale of Shares - 513 - 513 1,316 -

Total PBIT 638 1,070 (40.4) 3,276 3,876 (15.5)Less: Interest Expense 426 328 30.0 1,394 1,056 32.1

Less: Exceptional Item - - - - 102 0.0

Less: Unallocable Expense 32 22 46.1 128 125 2.0

PBT 180 720 (75.1) 1,754 2,594 (32.4)PBIT Margin (%) bp chg. bp chg.Cement & Cement Products 12.7 19.9 (716) 15.4 26.6 (1,122)

Construction 19.6 7.3 1,232 15.3 21.0 (564)

Power 59.0 63.1 (408) 38.9 50.6 (1,167)

Hotel/Hospitality and Golf Course (4.0) (3.4) (55) 9.1 5.8 329

Real Estate 53.4 42.6 1,079 50.7 39.7 1,101

Investment 100.0 100.0 - 100.0 100.0 -

Others (77.2) 19.2 - (37.9) 27.2 -Unallocated - 1,732.5 - 378.2 1,068.5 -

Capital Employed in SegmentCement & Cement Products 15,718 12,990 21.0 15,057 12,121 24.2

Construction 3,056 2,900 5.4 3,189 2,660 19.9

Power 1,671 596 180.2 1,495 476 214.0

Hotel/Hospitality and Golf Course 572 481 19.1 565 492 14.7

Real Estate 2,632 2,154 22.2 2,611 1,750 49.2

Investment 6,753 5,727 17.9 6,484 5,576 16.3

Others 300 262 14.4 276 190 45.3

Unallocated 2,036 3,173 (35.8) 2,518 3,897 (35.4)

Total 32,738 28,282 15.8 32,195 27,163 18.5Source: Company, Angel Research


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August 17, 2011

Segment-wise performance

Cement division

JALs cement division reported revenue growth of 6.0% yoy to`

1,527cr (`

1,441cr),2.7% above our estimate of`1,487cr. Better-than-expected performance was due

to marginally higher realisation of`3,736/tonne than our estimates. EBIT margin

disappointed with a huge drop of 716bp yoy to 12.7% (19.9%), implying the

companys strategy of gaining market share by aggressive pricing. Further, the

increase in coal prices at the domestic and international level adversely affected

the companys margin.

Construction divisionThe construction division registered an 11.3% yoy decline in revenue to `1,275cr

(`1,437cr). We believe this decline in revenue was due to problems faced by the

Yamuna Expressway project and the current slowdown in the real estate segment.Divisional EBIT margin witnessed a huge jump of 1,232bp yoy and came in at

19.6% (7.3%). Owing to the recent weak performance in the construction segment

and to factor in a high interest rate scenario, we are pruning our estimates

downwards. For FY2012 and FY2013, we are penciling in a top line of`5,527cr

and`5,982cr, a reduction of 10.5% and 12.8% from our earlier estimates. On the

operating front, we are factoring in EBIT margin of 13.8% and 13.9% for FY2012

and FY2013, respectively.

Real estate division

After a stunning performance since the last few quarters, the real estate division

reported a 5.2% yoy and 41.8% qoq decline to `347cr (`366cr). However,

divisional EBIT margin saw a phenomenal jump of 1,079bp yoy and came in at

53.4% (42.6%).Going ahead, we expect JAL to continue this strong performance

in the real estate segment. Thus, we are factoring in revenue of `1,883cr and

`2,165cr for FY2012 and FY2013, respectively.

Exhibit 4:Revenue growth momentum takes a hit


Exhibit 5:Quarterly EBITDA trend Stable


38.3 48.3

62.9

82.6

58.4

122.1

60.551.8

62.6

(0.5)

19.0

(1.1)

(20.0)

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

0

500

1,000

1,500

2,0002,500

3,000

3,500

4,000

4,500

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

Sales ( ` cr, LHS) Growth (yoy %, RHS)

25.8

37.0

23.1

27.529.9

25.5

21.224.7

28.7

21.424.3

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

0

100

200

300

400500

600

700

800

900

1,000

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

EBITDA (` cr, LHS) EBITDAM (%, RHS)


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August 17, 2011

Bottom-line performance

For 1QFY2012, the company reported EBITDA margin of 24.3% (21.2%),

registering an improvement of 310bp on a yoy basis and in-line with our

expectation of 24.0%. Interest cost stood at `426.4cr and was as per our

expectation. Depreciation cost came in at `172.1cr, a jump of 14.5% yoy and

14.2% qoq and higher than our estimate of`158.2cr. The bottom line came in at

`107.0cr (`105.8cr) vs. our estimate of `199.3cr due to lower revenue, higher

depreciation and higher tax rate (40.4%).

Exhibit 6:Quarterly bottom-line trend


Revision in estimates

We have revised our estimates downwards for FY2012 and FY2013 due to poor

performance in 1QFY2012, the current scenario of high interest rates and

persistent pessimism surrounding the sector.On the top-line front, we are factoring

in revenue of `15,043cr and `18,708cr, down 5.2% and 5.8% for FY2012 and

FY2013, respectively, from our earlier estimates. Further, we are lowering our

earnings estimates to `768.4cr (`1,091.6cr) and `1,070.5cr (`1,445.7cr) for

FY2012 and FY2013, respectively, to factor in higher interest cost due to rising

interest rates.

Exhibit 7:Change in estimates FY2012E FY2013EEarlier estimates Revised estimates Variation (%) Earlier estimates Revised estimates Variation (%)

Revenues (`cr) 15,860.0 15,042.6 (5.2) 18,708.2 17,630.4 (5.8)

EBITDA margin (%) 24.5 24.5 - 24.4 24.4 -

PAT (`cr) 1,091.6 768.4 (29.6) 1,445.7 1,070.5 (26.0)


17.112.6

18.523.2

46.1

12.7

7.3

16.1

3.87.9 7.6

3.4

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

0

100

200

300

400

500

600

700

800

900

1,000

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

PAT (` cr, LHS) PATM (%, RHS)


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August 17, 2011

Outlook and valuation

We have valued JALs cement and construction business at 6x EV/EBITDA

(`62.2/share) and (`30.9/share), respectively. We have valued its power and real

estate businesses on mcap basis (giving 15% holding company discount), which

contributes `47.1/share to our target price. The hotel segment contributes

`0.8/share. Treasury shares (`5.2/share) have been valued at the current market

price, whereas net debt is accounted for on a per share basis in our valuation at

`69.9. We maintain our Buy rating on the stock with an SOTP target price of `76,implying an upside of 31.8% from current levels.

Exhibit 8:SOTP valuation

Business Segment Methodology % Upside/ (Downside) ` cr `/share % to Target PriceCement EV/EBIDTA (x) 6x EV/EBITDA 13,234 62.2 81.5

Construction EV/EBIDTA (x) 6x EV/EBITDA 6,576 30.9 40.5Power Mcap of JPVL (@ 15% holding company discount) 4,991 23.5 30.8

Real Estate NAV/Mcap Jaypee InfraTech + Jaypee Greens 5,012 23.6 30.9

Hotels 8x FY2013E Net Profit 172 0.8 1.1

Treasury Stock At CMP 1,096 5.2 6.8

Net Debt Net Debt for Cement, Construction and Real Estate Business (14,849) (69.9) (91.6)

Total 16,233 76.3 100.0Source: Company, Angel Research

Exhibit 9:Key assumptions

FY2008 FY2009 FY2010 FY2011 FY2012E FY2013ECement capacity 9.0 14.7 19.1 24.9 29.3 30.8

Cementproduction

6.8 7.6 10.5 17.5 23.2 27.4

Cement Sales 6.2 7.0 9.2 15.2 20.2 23.8

Realisation/tonne 3,602 3,634 4,308 4,006 4,006 4,287


Exhibit 10:Angel EPS forecast vs. consensus

Angel Forecast Bloomberg Consensus Variation (%)FY2012E 3.6 4.4 22.5

FY2013E 5.0 5.7 12.6



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August 17, 2011

Exhibit 11:Recommendation summary

Company CMP TP Rating Top-line (` cr) EPS (`) Adj. P/E OB/FY11 FY12E FY13E CAGR (%) FY11 FY12E FY13E CAGR (%) FY11 FY12E FY13E Sales(x)

CCCL 22 - Neutral 2,199 2,362 2,646 9.7 2.5 1.5 3.6 18.4 8.6 14.5 6.1 2.8HCC 27 - Neutral 4,093 4,723 5,485 15.8 1.2 0.7 1.2 1.0 (2.8) (4.9) (2.8) 4.2

IRB Infra 148 191 Buy 2,438 3,024 3,995 28.0 13.6 13.0 14.5 3.3 4.9 5.1 4.6 -

IVRCL 39 64 Buy 5,651 5,798 6,994 11.2 5.9 4.3 6.3 3.3 2.0 2.8 1.9 4.2

JAL 58 76 Buy 13,217 15,043 17,630 15.5 3.1 3.6 5.0 28.0 18.9 16.0 11.5 -Punj Lloyd 58 - Neutral 7,850 9,585 10,992 18.3 (5.4) 2.5 4.0 - - 23.2 14.3 3.0NCC 57 82 Buy 5,074 5,755 6,689 14.8 6.4 5.5 6.7 2.4 4.4 5.0 4.2 3.2

Sadbhav 141 161 Accu. 2,209 2,602 2,865 13.9 8.0 8.4 11.4 19.6 8.5 8.0 5.9 3.2

Simplex In. 266 306 Accu. 4,896 5,373 6,221 12.7 25.1 22.3 30.6 10.4 10.6 11.9 8.7 2.9

Patel Engg 103 - Neutral 3,499 3,272 3,587 1.2 18.4 17.1 16.7 (4.7) 1.1 1.2 1.3 2.7

Madhucon 72 106 Buy 1,705 1,898 2,434 19.5 6.9 6.7 8.4 10.2 3.7 3.8 3.0 3.5

L&T 1,641 1,946 Buy 43,905 52,765 66,551 23.1 54.7 64.9 80.0 20.9 22.0 18.5 15.0 3.1

ITNL 183 259 Buy 4,049 4,910 6,484 26.5 22.3 23.9 25.3 6.4 0.6 0.6 0.6 5.5


Exhibit 12:SOTP break up

Company Core Const. Real Estate Road BOT Invst. In Subsidiaries Others Total` % to TP ` % to TP ` % to TP ` % to TP ` % to TP `

CCCL 28 100 - - - - - - - - 28

HCC 11 26 23 58 6 16 - - - - 40

IRB Infra 110 58 - - 77 40 5 2 - - 191IVRCL 44 69 - - - - 20 31 - - 64

JAL 31 41 24 31 - - - - 22 29 76Punj Lloyd 96 100 - - - - - - - - 96

NCC 53 65 2 2 8 10 - - 18 22 82

Sadbhav 87 54 - - 73 46 - - - - 161

Simplex In. 306 100 - - - - - - - - 306

Patel Engg 40 33 47 38 16 13 - - 19 16 122

Madhucon 59 55 2 2 33 31 - - 12 12 106

L&T 1,508 77 - - - - 438 23 - - 1,946

ITNL 90 35 - - 143 55 - - 25 10 259



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August 17, 2011

Profit & Loss Statement (Standalone)

Y/E March (` cr) FY2008 FY2009 FY2010 FY2011 FY2012E FY2013ENet Sales 4,274 6,148 10,355 13,217 15,043 17,630% chg 19.4 43.8 68.4 27.6 13.8 17.2Total Expenditure 2,888 4,084 7,465 10,078 11,360 13,325Net Raw Materials 1,374 2,153 4,290 7,827 6,586 7,613

Other Mfg costs 575 843 1,497 500 2,231 2,662

Personnel 255 331 453 596 751 864

Other 683 757 1,225 1,155 1,793 2,186

EBITDA 1,386 2,064 2,891 3,139 3,683 4,306% chg 33.2 48.9 40.1 8.6 17.3 16.9

(% of Net Sales) 32.4 33.6 27.9 23.7 24.5 24.4

Dep. & Amort. 203 309 456 608 773 861

EBIT 1,183 1,755 2,435 2,531 2,910 3,445% chg 34.8 48.4 38.7 4.0 15.0 18.4

(% of Net Sales) 27.7 28.5 23.5 19.1 19.3 19.5

Interest 339 504 1,056 1,394 1,772 1,860

Other Income - - - 103.6 - -

(% of PBT)

Share of Assoc - - - - - -

Recurring PBT 844 1,251 1,379 1,240 1,138 1,585% chg 36.0 48.3 10.2 (10.1) (8.3) 39.3

Extra. Exp/(Inc.) - - 719.5 341.1 - -

PBT (reported) 844 1,251 2,098 1,582 1,138 1,585Tax 234 354 390 588 369 514

(% of PBT) 27.7 28.3 18.6 37.2 32.5 32.5

PAT (reported) 610 897 1,708 994 768 1,071PAT after MI 610 897 1,708 994 768 1,071ADJ. PAT 610 897 989 653 768 1,071% chg 46.9 47.1 10.2 (34.0) (22.7) 39.3

(% of Net Sales) 14.3 14.6 9.5 4.9 5.1 6.1

Basic EPS (`) 5.2 6.4 4.7 3.1 3.6 5.0Fully Diluted EPS ( ) 2.9 4.2 4.7 3.1 3.6 5.0% chg 46.9 47.1 10.2 (34.0) 17.7 39.3


9/12


August 17, 2011

Balance Sheet (Standalone)

Y/E March (` cr) FY2008 FY2009 FY2010 FY2011 FY2012E FY2013ESOURCES OF FUNDS

Equity Share Capital 234 280 425 425 425 425Preference Capital - - - - - -

Reserves& Surplus 4,364 6,418 8,076 9,096 9,641 10,478

Shareholders Funds 4,598 6,698 8,501 9,521 10,067 10,903Minority Interest - - - - - -Total Loans 8,306 13,106 17,909 21,563 22,153 23,251

Deferred Tax Liability 571 720 956 956 956 956

Total Liabilities 13,475 20,524 27,366 32,040 33,176 35,110APPLICATION OF FUNDS

Gross Block 5,166 8,619 12,847 15,260 17,183 19,132

Less: Acc. Depreciation 1,455 1,801 2,228 2,855 3,629 4,489

Net Block 3,712 6,818 10,619 12,405 13,554 14,643Capital Work-in-Progress 4,219 5,082 3,892 4,160 2,912 2,038

Deferred Tax Asset 11.5 30.4 32.8 32.8 32.8 32.8

Investments 3,225 4,465 5,576 6,112 6,657 6,864Current Assets

Cash 1,815 2,909 3,053 3,110 3,752 4,793

Loans & Advances 2,222 3,308 3,995 6,795 7,822 9,344

Other 1,926 2,946 6,049 6,980 8,021 9,599

Current liabilities 3,655 5,037 5,853 7,557 9,578 12,207

Net Current Assets 2,308 4,126 7,244 9,329 10,017 11,530Mis. Exp. not written off 0 2 2 2 2 2

Total Assets 13,475 20,524 27,366 32,040 33,176 35,110


10/12


August 17, 2011

Cash Flow Statement (Standalone)

Y/E March (` cr) FY2008 FY2009 FY2010 FY2011 FY2012E FY2013EProfit before tax 844 1,251 1,065 1,582 1,138 1,585

Depreciation 203 309 456 608 773 861Change in Working Capital (28) 1,709 2,725 2,028 46 471

Direct taxes paid 234 316 271 588 369 514

Cash Flow from Operations 841 (465) (1,474) (426) 1,495 1,461Inc./ (Dec.) in Fixed Assets 2,955 3,324 3,077 2,681 674 1,076

Inc./ (Dec.) in Investments 1,446 891 (214) 536 545 207

Cash Flow from Investing 4,401 4,215 2,863 3,217 1,220 1,283Issue of Equity 1,250 426 87 0 - -

Inc./(Dec.) in loans 2,790 4,379 4,803 3,655 590 1,098

Dividend Paid (Incl. Tax) 134 81 176 212 223 234

Others (40) (1,049) 232 (257) - -

Cash Flow from Financing 3,946 5,772 4,481 3,700 367 864Inc./(Dec.) in Cash 386 1,093 144 57 642 1,042

Opening Cash balances 1,430 1,815 2,909 3,053 3,110 3,752Closing Cash balances 1,815 2,909 3,053 3,110 3,752 4,793


11/12


August 17, 2011

Key Ratios

Y/E March FY2008 FY2009 FY2010 FY2011 FY2012E FY2013EValuation Ratio (x)P/E (on FDEPS) 11.1 9.0 12.4 18.9 16.0 11.5P/CEPS 8.3 6.7 5.7 7.7 8.0 6.4

P/BV 1.5 1.2 1.4 1.3 1.2 1.1

Dividend yield (%) 1.7 1.7 1.9 1.7 1.8 1.9

EV/Sales 4.4 3.7 2.6 2.3 2.0 1.7

EV/EBITDA 13.6 10.9 9.4 9.8 8.3 7.1

EV / Total Assets 1.4 1.1 1.0 1.0 0.9 0.9

Per Share Data (`)EPS (Basic) 5.2 6.4 4.7 3.1 3.6 5.0

EPS (fully diluted) 2.9 4.2 4.7 3.1 3.6 5.0

Cash EPS 6.9 8.6 10.2 7.5 7.2 9.1

DPS 1.0 1.0 1.1 1.0 1.0 1.1

Book Value 39.2 47.8 40.0 44.8 47.3 51.3

Dupont AnalysisEBIT margin 27.7 28.5 23.5 19.1 19.3 19.5

Tax retention ratio 72.3 71.7 81.4 62.8 67.6 67.6

Asset turnover (x) 0.4 0.4 0.5 0.5 0.5 0.6

ROIC (Post-tax) 8.9 8.6 9.5 6.0 6.7 7.8

Cost of Debt (Post Tax) 3.5 3.4 5.5 4.4 5.5 5.5

Leverage (x) 1.4 1.5 1.6 1.8 1.9 1.8

Operating ROE 16.6 16.3 15.9 8.8 9.1 11.8

Returns (%)ROCE (Pre-tax) 10.6 10.3 10.2 8.5 8.9 10.1

Angel ROIC (Pre-tax) 18.7 17.6 14.8 11.2 11.3 12.6

ROE 16.3 15.9 13.0 7.2 7.8 10.2

Turnover ratios (x) Asset Turnover (Gross Block) 0.9 0.9 1.0 0.9 0.9 1.0

Inventory / Sales (days) 76 66 64 73 76 77

Receivables (days) 44 48 58 72 75 75

Payables (days) 338 353 239 224 244 264

W.cap cycle (ex-cash) (days) 43 51 95 145 151 135

Solvency ratios (x)Net debt to equity 1.4 1.5 1.7 1.9 1.8 1.7

Net debt to EBITDA 4.7 4.9 5.1 5.9 5.0 4.3

Interest Coverage 3.5 3.5 2.3 1.8 1.6 1.9


12/12


August 17 2011

Disclosure of Interest Statement JP Associates

1. Analyst ownership of the stock No

2. Angel and its Group companies ownership of the stock No

3. Angel and its Group companies' Directors ownership of the stock No

4. Broking relationship with company covered No

Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors.

Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to 15%) Sell (< -15%)

Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com

DISCLAIMERThis document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investmentdecision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make

such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies

referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and

risks of such an investment.

Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make

investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this

document are those of the analyst, and the company may or may not subscribe to all the views expressed within.

Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and

trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's

fundamentals.

The information in this document has been printed on the basis of publicly available information, internal data and other reliablesources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as thisdocument is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any wayresponsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report .Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify,nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. WhileAngel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory,compliance, or other reasons that prevent us from doing so.

This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,

redistributed or passed on, directly or indirectly.

Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or

other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or inthe past.

Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in

connection with the use of this information.

Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, pleaserefer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited andits affiliates may have investment positions in the stocks recommended in this report.

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