Company Details

GVK Power & Infrastructure Ltd. operates as a holding company. The company together with its subsidiaries and associates is

engaged in constructing, operates power plants, highway projects, airports, exploration of oil, natural gas and coal mines. It

operates its business in four segments: Power, Transportation, Airport and Other. The Power segment includes generation,

operation and maintenance services to the power plants. The Transportation segment engages in building, development and

maintenance of roads. The Airport segment engages operation and maintenance of airport. The Other segment operates in SEZ,

manpower, and exploration of oil & gas.

GVK Power & Infrastructure was founded by Gunapati Venkata Krishna Reddy on December 2, 1994 and is headquartered in

Secunderabad, India. Having already invested over Rs. 20,000 crore(USD 4.3 billion) the company has projects worth over

another Rs. 30,000 crore(USD 6.6 billion) in the pipeline, in India. GVK has pioneered various infrastructure projects viz. setting

up India’s first Independent Power Plant (IPP), first six-lane road project and first Brownfield airport under the Public Private

Partnership model.

It has over 900 MW operational power plants and around 5000 MW projects under various stages of construction and

development. GVK has acquired the Australian Coal Mines in Queensland with 8 billion tonne reserves and a capacity of more

than 80 million tonne per annum for USD 1.26 billion. It will also set up a 500 km. rail line and upto 80 mtpa port as part of the

'pit-to-port' logistics solution. The project envisages a total investment of USD 10 billion.

GVK has established itself as a premium hospitality leader in Hyderabad, Chandigarh and Chennai with six TAJGVK properties

and has plans to cater to the growing segments in Mumbai and Bengaluru as well.

GVK Biosciences is Asia’s leading Contract Research Organization (CRO) with over 2000 scientists, support and analytical staff.

It provides a broad spectrum of stand-alone and integrated services, across the R&D value chain to leading international

pharma, agro, biotech and life sciences companies.

The current market capitalization stands at Rs 1,566.58 crore. The company has reported a consolidated sales of Rs 698.76

crore and a Net Loss of Rs -304.07 crore for the quarter ended Sep 2014.

Category No. of Shares Percentage

Promoters 856,729,340 54.25

General Public 360,755,112 22.84

Foreign Institutions 191,676,169 12.14

Other Companies 94,990,301 6.02

NBFC and Mutual Funds 19,804,370 1.25

Others 19,207,725 1.22

Foreign - NRI 18,665,723 1.18

Financial Institutions 10,676,660 0.68

Central Government 6,330,000 0.40

Foreign - OCB 375,000 0.02

Market Cap (Rs Cr) – 1566.58

Company P/E – -1.96

Industry P/E – 14.28

Book Value (Rs) – 15.59

Dividend (%) – 0

EPS (TTM) – -5.05

Dividend Yield (%) – 0

Face Value (Rs) - 1

Share Holding Pattern Financial Details

Industry Details

As per the International Energy Agency (IEA) publication on World Energy Statistics 2013, India ranks 5th in Electricity

production and 110th in the per-capita consumption of electricity. The Minister further stated that energy deficit in India has

reduced from 9.5 per cent in 2010-11 to 4.5 per cent in 2013-14.

The Indian power sector is undergoing a significant change that is redefining the industry outlook. Sustained economic growth

continues to drive power demand in India. The Government of India’s focus to attain ‘Power For All’ has accelerated capacity

addition in the country. At the same time, the competitive intensity is increasing on both market side as well as supply side (fuel,

logistics, finances and manpower).

The investment climate is positive in the power sector. Due to the policy of liberalization, the sector has witnessed higher

investment flows than envisaged. The Ministry of Power has sent its proposal for the addition of 76,000 MW of power capacity in

the 12th Five Year plan (2012-17), to the Planning Commission. The Ministry has set a target of adding 93,000 MW in the 13th

Five Year Plan (2017-2022).

A key driver of the economy, Infrastructure is highly responsible for propelling India’s overall development. The industry enjoys

intense focus from the top officials of the Government for initiating policies that would ensure time-bound creation of world class

infrastructure in the country. This sector includes power, bridges, dams, roads and urban infrastructure development. The Indian

Government is taking every possible initiative to boost the infrastructure sector. Some of the steps taken in the recent past are

being discussed hereafter. Recently, the Government has relaxed rules for FDI in the construction sector by reducing minimum

built-up area as well as capital requirement and liberalized the exit norms. The Cabinet has also approved the proposal to amend

the FDI policy.

India and the US have signed a memorandum of understanding (MoU) in order to establish Infrastructure Collaboration Platform.

Along with that, Indian aviation market is expected to become the third largest across the globe by 2020, according to industry

estimates. The sector is projected to handle 336 million domestic and 85 million international passengers with projected

investment to the tune of US$ 120 billion. Indian Aviation Industry that currently accounts for 1.5 per cent of the gross domestic

product (GDP), has been instrumental in the overall economic development of the country.

Balance Sheet

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

Sources Of Funds

Total Share Capital 157.92 157.92 157.92 157.92 157.92

Equity Share Capital 157.92 157.92 157.92 157.92 157.92

Reserves 2,320.53 2,343.96 2,368.00 2,376.28 2,307.99

Networth 2,478.45 2,501.88 2,525.92 2,534.20 2,465.91

Secured Loans 463.69 423.50 219.00 100.94 100.34

Unsecured Loans 0.00 0.00 197.25 0.00 0.00

Total Debt 463.69 423.50 416.25 100.94 100.34

Total Liabilities 2,942.14 2,925.38 2,942.17 2,635.14 2,566.25

Application Of Funds

Gross Block 1.82 1.81 1.81 1.78 0.51

Less: Accum. Depreciation 0.73 0.55 0.37 0.19 0.12

Net Block 1.09 1.26 1.44 1.59 0.39

Investments 1,406.20 1,404.91 1,371.06 1,616.21 1,514.63

Sundry Debtors 3.70 2.99 1.17 1.49 3.95

Cash and Bank Balance 16.61 23.39 17.48 3.09 1.17

Total Current Assets 20.31 26.38 18.65 4.58 5.12

Loans and Advances 1,591.51 1,500.97 1,555.67 1,016.89 1,047.42

Fixed Deposits 0.00 0.00 0.00 0.00 2.62

Total CA, Loans & Advances 1,611.82 1,527.35 1,574.32 1,021.47 1,055.16

Current Liabilities 74.86 6.86 2.11 2.77 2.62

Provisions 2.11 1.28 2.54 1.37 1.31

Total CL & Provisions 76.97 8.14 4.65 4.14 3.93

Net Current Assets 1,534.85 1,519.21 1,569.67 1,017.33 1,051.23

Total Assets 2,942.14 2,925.38 2,942.17 2,635.13 2,566.25

Contingent Liabilities 10,628.33 4,393.01 5,785.50 1,263.09 1,633.00

Book Value (Rs) 15.69 15.84 15.99 16.05 15.61

Profit and Loss Account

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

Income

Sales Turnover 26.76 30.21 27.60 42.77 46.67

Net Sales 26.76 30.21 27.60 42.77 46.67

Other Income 32.43 27.80 12.85 80.79 13.56

Total Income 59.19 58.01 40.45 123.56 60.23

Expenditure

Employee Cost 0.97 6.08 6.55 12.03 10.83

Other Manufacturing Expenses 0.00 0.00 0.00 3.05 2.84

Selling and Admin Expenses 0.00 0.00 0.00 15.40 9.32

Miscellaneous Expenses 5.72 9.95 9.33 4.74 4.35

Total Expenses 6.69 16.03 15.88 35.22 27.34

Operating Profit 20.07 14.18 11.72 7.55 19.33

PBDIT 52.50 41.98 24.57 88.34 32.89

Interest 57.99 52.12 24.93 14.95 1.50

PBDT -5.49 -10.14 -0.36 73.39 31.39

Depreciation 0.18 0.18 0.18 0.08 0.04

Profit Before Tax -5.67 -10.32 -0.54 73.31 31.35

Extra-ordinary items 0.00 0.00 0.00 -0.23 -1.23

PBT (Post Extra-ord Items) -5.67 -10.32 -0.54 73.08 30.12

Tax 17.76 13.72 7.73 4.79 8.43

Reported Net Profit -23.43 -24.04 -8.27 68.29 21.69

Total Value Addition 6.69 16.03 15.88 35.22 27.35

Per share data (annualised)

Shares in issue (lakhs) 15,792.10 15,792.10 15,792.10 15,792.10 15,792.10

Earning Per Share (Rs) -0.15 -0.15 -0.05 0.43 0.14

Dividend History

Index and Company Comparison

Company Forecast

Symbol Value Action

RSI(14) 45.246 Neutral

STOCH(9,6) 15.436 Oversold

STOCHRSI(14) 19.034 Oversold

MACD(12,26) -0.930 Sell

ADX(14) 16.524 Neutral

Williams %R -87.952 Oversold

CCI(14) -47.7162 Neutral

ATR(14) 3.3500 High Volatility

Highs/Lows(14) -0.5286 Sell

Ultimate Oscillator 41.380 Sell

ROC 5.291 Buy

Bull/Bear Power(13) -0.9340 Sell

Technical Indicators

PBIT – 33.6 v/s 24.13

RoCE – 1.77 v/s 1.42

RoE – -0.94 v/s -0.96

Net Profit Margin – 39.58 v/s 41.44

Return on net worth – -0.94 v/s -0.96

D/ E Ratio – 0.19 v/s 0.17

Interest Cover – 0.90 v/s 0.80

Current Ratio – 3.68 v/s 9.84

Reserves – 2320.53 cr v/s 2343.96 cr

PAT – -23.43 cr v/s -24.04 cr

Total assets – 2942.14 cr v/s 2925.38 cr

Net sales – 26.76 cr v/s 30.21 cr

Book Value – 15.69 v/s 15.84

Days BSE NSE

30 9.61 9.59

50 9.76 9.75

150 12.08 12.07

200 12.98 12.96

Important Ratios Simple Moving Average

Recommendations

Buy GVK Power and Infrastructure Ltd. at

current or lower market levels

Reasons for the recommendations are :

Possibility of getting new airport projects.

Reduction in interest rates will increase the profits.

Income from hospitality and pharma business will boost revenue.

Projects in power and infra projects nearing completion.

Governments positive response towards infrastructure and power sector.

Getting coal mine license will help to use its power generation capacity to

maximum.