hcc result updated

8/2/2019 HCC Result Updated

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

Y/E March (` cr) 4QFY12 4QFY11 % chg (yoy) 3QFY12 % chg (qoq)

Net sales 1,156 1,202 (3.9) 946 22.2

Operating profit 88 173 (49.1) 113 (21.9)

Net profit (54) 23 - (130) -

Source: Company, Angel Research

For 4QFY2012, HCC continued its poor performance on the numbers front as

expected. HCC’s top line came in higher-than-expected owing to inclusion of

arbitration award in the top line. Further, abysmal EBITDAM and high interest cost

lead to higher-than-expected loss at the earnings level. The total outstandingorder book stands at ` 15,336cr (excluding L1 orders of ` 1,713cr) with muted

order inflow of ` 1,889cr (decline of ~44% on yoy basis) for FY2012. Owing to

concerns such as slowdown in order inflow, high debt and stretched working

capital, we remain Neutral on the stock.

Dismal performance continues: On the top-line front, HCC’s revenue declined by

3.9% yoy to ` 1,156cr against our estimate of ` 1,022cr. However, it includes

~ ` 166cr (total arbitration award ` 256cr) of arbitration award excluding which it

would have stood at ~ ` 990cr. EBITDAM came in at shocking 7.6%, a dip of

680bp yoy and lower than our estimate of 11.8%. On the earnings front, HCC

reported a loss of ` 54cr vs. profit of ` 23cr in 4QFY2011, against our estimate of

loss of `23cr owing to lower EBITDA margin and higher interest cost. Interest cost

witnessed an increase of 39.4% and 6.3% on yoy and qoq basis respectively.

Outlook and valuation: On the back of poor performance in 4QFY2012 we are

revising our estimates downwards for FY2013 and FY2014. The outlook for HCC

remains bleak given the fact that its execution has slowed down considerably; its

balance sheet is loaded with debt resulting in high interest cost. Although HCC is

hoping to get approval for final debt restructuring package in next 30-35 days we

believe HCC has long way to go before the company is able to turnaround itself.

Hence we continue to maintain our Neutral view on the stock. Further, in the

infrastructure space, we believe there are better bets than HCC such as L&T,

Sadbhav and IRB.

Key financials (Standalone)

Y/E March (` cr) FY2011 FY2012 FY2013E FY2014E

Net sales 4,093 3,988 4,239 4,522

% chg 12.3 (2.6) 6.3 6.7

Adj. net profit 71 (222) (109) (47)

% chg (12.8) (413.0) (51.0) (56.5)

EBITDA (%) 13.2 11.0 11.1 11.7

FDEPS (`) 1.2 (3.7) (1.8) (0.8)

P/E (x) 17.3 - - -

P/BV (x) 0.8 1.0 1.2 1.3

RoE (%) 4.7 (16.1) (9.5) (4.7)

RoCE (%) 8.3 5.0 4.9 5.9

EV/Sales (x) 1.1 1.4 1.3 1.2

EV/EBITDA (x) 8.4 12.8 11.7 10.3


NEUTRALCMP ` 20

Target Price -

Investment Period -

Stock Info

Sector

Bloomberg Code

Shareholding Pattern (%)

Promoters 39.9

MF / Banks / Indian Fls 11.3

FII / NRIs / OCBs 24.4

Indian Public / Others 24.5

Abs. (%) 3m 1yr 3yr

Sensex (0.6) (11.9) 50.7

HCC (14.3) (45.8) (29.1)

1

17,187

5,209

HCNS.BO

HCC@IN

1,231

1.7

38/16

872,013

Infrastructure

Avg. Daily Volume

Market Cap ( ` cr)

Beta

52 Week High / Low

Face Value ( ` )

BSE Sensex

Nifty

Reuters Code

Nitin Arora

022-39357800 Ext: 6842

[email protected]

HCC

Performance Highlights

4QFY2012 Result Update | Infrastructure

April 28, 2012



HCC | 4QFY2012 Result Update

April 28, 2012 2

Exhibit 1: 4QFY2012 performance (Standalone)

Y/E March (` cr) 4QFY12 4QFY11 % chg(yoy) 3QFY12 % chg(qoq) FY2012 FY2011 % chg(yoy)

Income from operations 1,156 1,202 (3.9) 946 22.2 3,988 4,091 (2.5)

Total expenditure 1,068 1,030 3.7 834 28.1 3,548 3,550 (0.0)Operating profit 88 173 (49.1) 113 (21.9) 440 541 (18.7)

OPM (%) 7.6 14.4 (680)bp 11.9 (430)bp 11.0 13.2 (220)bp

Interest 151 108 39.4 142 6.3 543 329 65.1

Depreciation 40 44 (8.5) 41 (2.5) 162 153 6.2

Other income 28 25 11.9 46 (38.7) 113 53 114.9

Nonrecurring items - - - (166) - (166) - -

Profit before tax (75) 45 - (191) - (318) 112 -

Tax (21) 23 - (61) - (96) 41 -

PAT (54) 23 - (130) - (222) 71 -

PAT (%) (4.7) 1.9 - (13.8) - (5.6) 1.7 -

FDEPS (`) (0.9) 0.4 - (2.1) - (3.7) 1.2 -


Exhibit 2: 4QFY2012 Actual vs. Angel estimates

(` cr) Actual Estimates Variation (%)

Revenues 1,156 1,022 13.1

EBITDA 88 121 (27.1)

Interest 151 113 34.0

Tax (21) (11) 88.2

PAT (54) (23) 133.3 Source: Company, Angel Research

Higher-than-expected top line owing to arbitration award

On the top-line front, HCC’s revenue declined by 3.9% yoy to ` 1,156cr against

our estimate of ` 1,022cr. However, it includes ~ ` 166cr (total arbitration award

` 256cr) of arbitration award excluding which it would have stood at ~ ` 990cr. As

per management, revenue has declined due to slow order inflow in last few

quarters, execution bottlenecks, rising interest cost and payment delays by clients.

Further, the infrastructure sector is facing strong headwinds which include

slowdown in order activity caused by shortfall in investments in infrastructure sectorand a high interest rate scenario which will keep revenue growth under check for

next few quarters. The management believes that FY2013 will continue to be a

challenging year for infrastructure companies and hence the company would focus

on the following:

1) Recovery of claims to the tune of ` 2,000cr

2) Lean organisation structure and cost optimisation to control employee cost &

other expenditure




April 28, 2012 3

Exhibit 3: Revenue growth to be muted for next quarters


BOT Projects update

For Dhule-Palasner project, HCC has achieved provisional commercial operational

date (COD) in 4QFY2012 which is four months ahead of scheduled COD - June

2012. As per the management, the initial toll collection is ahead of company’s

estimates. The company expects to achieve 100% completion by June 2012. With

completion of this project, HCC has three operational projects under its belt. For

the under construction projects (3 West Bengal projects) the company has achieved

~25% completion. As per the management, Raiganj Dalkhola project has been

delayed by 3-4 months. HCC is expecting road BOT portfolio to contribute ` 200crof revenue in FY2013 and ` 400-450cr in FY2014.

Lavasa update

The Ministry of Environment and Forest (MOEF), through its order dated

9th November, 2011 accorded environment clearance to the 1 st phase of Lavasa.

As per the company, Lavasa has completed booking for all residential property in

its first town Dasve. Further, it has also launched new apartments in its second

town Mugaon and expects things to pick up speed by October 2012. For FY2012

Lavasa posted revenue of ` 75.3cr and loss of ` 138cr and has a debt of

~ `

2,200cr which the company is trying to restructure.

Corporate Debt Restructuring (CDR) update

The Board of Directors in its meeting held on 9th March 2012 had decided to

approach the banks through the CDR process for restructuring of HCC’s debt. The

CDR Empowered Group in its meeting held on 29th March 2012 admitted the

Company’s proposal under the CDR. The final debt restructuring proposal is under

consideration and the company expects the same in next 30-35 days.

HCC’s proposal: 1) Two years of moratorium and eight years of repayment;

2) Nominal cut in interest rate; and 3) Additional working capital to continue

business operations

(7.2)

0.8

20.4

10.2 10.8

14.1 13.2

11.1 10.86.3

(6.3) (5.6)(3.9)

(18.0)

(13.0)

(8.0)

(3.0)

2.0

7.0

12.0

17.0

22.0

27.0

0

200

400

600

800

1,000

1,200

1,400

4 Q F Y 0 9

1 Q F Y 1 0

2 Q F Y 1 0

3 Q F Y 1 0

4 Q F Y 1 0

1 Q F Y 1 1

2 Q F Y 1 1

3 Q F Y 1 1

4 Q F Y 1 1

1 Q F Y 1 2

2 Q F Y 1 2

3 Q F Y 1 2

4 Q F Y 1 2

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




April 28, 2012 4

Lower EBITDA, high interest cost leads to higher-than-expected loss

EBITDAM came in at shocking 7.6%, a dip of 680bp yoy and lower than our

estimate of 11.8%. However, going ahead the management believes that the

company should be able to maintain EBITDAM in the range of 11-11.5%. Hence

we have lowered our EBITDAM estimates to 11.1% and 11.7% for FY2012 and

FY2013 respectively. On the earnings front, HCC reported a loss of ` 54cr vs.

profit of ` 23cr in 4QFY2011, against our estimate of loss of `23cr owing to lower

EBITDA margin and higher interest cost. Interest cost witnessed an increase of

39.4% and 6.3% on yoy and qoq basis respectively and stood at ` 151cr for the

quarter. It should be noted that as per Schedule VI of Companies Act, HCC has

reported gross interest expense and interest income has been added to other

income.

Exhibit 4: EBITDAM take a hit


Exhibit 5: Lower EBITDAM and high int. cost lead to loss


Order book analysis

HCC’s order book, as of 4QFY2012, stood at ` 15,336cr (3.8x FY2012 revenue) –

excluding L1 orders worth ` 1,713cr, – with the company bagging orders worth

~ ` 48cr during the quarter. For FY2012, HCC order inflow stood at ` 1,889cr,

implying a decline of ~44% on yoy basis. The company’s order book comprises

hydro power (38%), water solutions (24%), transportation (24%) and nuclear and

special (14%) projects. Further, as per management order inflow will remain muted

going ahead as well hence we are factoring order inflow of ` 2,382cr and ` 2,731cr for FY2013 and FY2014 respectively.

15.414.0

11.3

13.0

11.312.6 12.8 12.6

13.813.0

11.3 11.7

7.6

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

4 Q F Y 0 9

1 Q F Y 1 0

2 Q F Y 1 0

3 Q F Y 1 0

4 Q F Y 1 0

1 Q F Y 1 1

2 Q F Y 1 1

3 Q F Y 1 1

4 Q F Y 1 1

1 Q F Y 1 2

2 Q F Y 1 2

3 Q F Y 1 2

4 Q F Y 1 2

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

5.2

2.10.7

1.6

4.02.8

1.4 0.81.9

0.3

(4.9)

(13.8)

(4.7)

(15.0)

(10.0)

(5.0)

‐

5.0

10.0

(140.0)

(120.0)

(100.0)

(80.0)

(60.0)

(40.0)

(20.0)

0.0

20.0

40.0

60.0

80.0

4 Q F Y 0 9

1 Q F Y 1 0

2 Q F Y 1 0

3 Q F Y 1 0

4 Q F Y 1 0

1 Q F Y 1 1

2 Q F Y 1 1

3 Q F Y 1 1

4 Q F Y 1 1

1 Q F Y 1 2

2 Q F Y 1 2

3 Q F Y 1 2

4 Q F Y 1 2

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




April 28, 2012 5

Exhibit 6: Order booking and order book trend


Exhibit 7: Segmental order book break-up (%)


Outlook and valuation

Owing to HCC’s poor performance in 4QFY2012, we are revising our estimates

downwards for FY2013 and FY2014. On the top line front, we have lowered our

estimates by 2.6 and 4.3% for FY2013 and FY2014 to ` 4,239cr and ` 4,522cr

respectively. On the EBITDAM front, we have lowered our estimates by 130bp and

100bp for FY2013 and FY2014 respectively in line with management’s guidance.

We expect HCC to post loss of ` 109cr and ` 47cr for FY2013 and FY2014

respectively.

Exhibit 8: Change in estimates

FY2013E FY2014E

Earlier estimates Revised estimates Variation (%) Earlier estimates Revised estimates Variation (%)

Revenue ( ` cr) 4,350 4,239 (2.6) 4,728 4,522 (4.3)

EBITDA margin (%) 12.4 11.1 (130)bp 12.7 11.7 (100)bp

PAT ( ` cr) (16) (109) - 39 (47) -


The outlook for HCC remains bleak given the fact that its execution has slowed

down considerably; its balance sheet is loaded with debt resulting in high interest

cost. Although HCC is hoping to get approval for final debt restructuring package

in next 30-35 days we believe HCC has long way to go before the company isable to turnaround itself. Hence, we continue to maintain our Neutral view on the

stock. Further, in the infrastructure space, we believe there are better bets than

HCC such as L&T, Sadbhav and IRB.

Exhibit 9: Key assumptions

` cr FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E

Order inflow 7,616 6,054 3,410 3,137 2,382 2,731

Revenue 3,314 3,644 4,093 3,988 4,239 4,522

Order backlog (Y/E) 14,460 16,870 16,187 15,336 13,479 11,687

Order book-to-Sales ratio (x) 4.4 4.6 4.0 3.8 3.2 2.6


42.4

32.126.3

13.0 16.7

29.2 30.8

20.4

(4.0) (2.3)

(9.1)

(2.0)(5.3)

(20.0)

(10.0)

0.0

10.0

20.0

30.0

40.0

50.0

(500)

4,500

9,500

14,500

19,500

4 Q F Y 0 9

1 Q F Y 1 0

2 Q F Y 1 0

3 Q F Y 1 0

4 Q F Y 1 0

1 Q F Y 1 1

2 Q F Y 1 1

3 Q F Y 1 1

4 Q F Y 1 1

1 Q F Y 1 2

2 Q F Y 1 2

3 Q F Y 1 2

4 Q F Y 1 2

Order Book (` cr, LHS) Order Inflow (` cr, LHS)

L1 Status (` cr, LHS) Order Book growth (%, RHS)




April 28, 2012 6

Recommendation rationale

Huge investments and elongated working capital = Balance sheet stretched:

HCC’s balance sheet is loaded with debt (~ ` 4,293cr as of 4QFY2012; net D/E =

3.2 – standalone level) because of its BOT/real estate investments and funding of

its working capital requirements. Going ahead as well, owing to its commitments,

we believe HCC will not get any respite on these fronts.

Deteriorating business environment: Slowdown on the execution front, along with

macro headwinds faced by the sector, has resulted in eroding the company’s

profitability. Further, the fact that there are no signs of reversal in sight paints a

bleak outlook for the company in the medium term.

Uncertainty on the Lavasa project: Lavasa received clearance for the construction

and development for Phase 1 in November 2011, post one year of legal battle

with MOEF, which resulted in huge losses to HCC. However, the project stillremains under the cloud of uncertainty and continues to be an overhang on the

stock.




April 28, 2012 7

Exhibit 10: Recommendation summary

Company CMP TP Rating Top line (` cr) EPS (`) Adj. P/E OB/

FY12E FY13E FY14E CAGR (%) FY12E FY13E FY14E CAGR (%) FY12E FY13E FY14E Sales (x)

ABL 214 302 Buy 1,522 2,014 2,294 22.7 18.0 28.4 30.8 30.8 11.9 7.5 6.9 4.2CCCL 16 - Neutral 2,145 2,526 2,792 14.1 (1.1) 1.8 2.8 - - 8.5 5.5 2.7

HCC 20 - Neutral 3,988 4,239 4,522 6.5 (3.7) (1.8) (0.8) - - - - 3.8

IRB Infra 170 228 Buy 3,176 3,821 4,582 20.1 14.2 15.0 16.9 9.4 12.0 11.3 10.0 -

ITNL 189 265 Buy 5,178 6,619 7,263 18.4 22.4 24.7 26.2 8.3 8.4 7.7 7.2 5.2

IVRCL 62 79 Buy 5,057 5,758 6,860 16.5 2.0 4.7 6.0 72.7 30.5 13.2 10.2 4.4

JP Assoc. 73 104 Buy 13,963 16,017 18,359 14.7 2.9 4.2 5.0 30.9 24.9 17.4 14.5 -

L&T 1,220 1,641 Buy 53,779 60,258 69,900 14.0 63.5 70.7 76.2 9.5 19.2 17.3 16.0 3.3

Madhucon 51 84 Buy 1,952 2,503 2,903 21.9 4.4 5.8 6.5 21.8 11.5 8.8 7.8 3.8

NCC 51 76 Buy 4,946 5,790 7,022 19.1 1.4 3.5 5.4 97.6 36.8 14.6 9.4 4.3

Patel Engg 104 - Neutral 3,573 3,609 3,836 3.6 14.9 14.0 14.5 (1.1) 7.0 7.4 7.2 2.7

Punj Lloyd 53 - Neutral 10,147 10,592 12,193 9.6 3.5 2.9 4.5 13.6 15.1 18.3 11.7 3.6

Sadbhav 144 199 Buy 2,604 2,989 3,314 12.8 9.3 10.2 11.3 10.5 15.5 14.1 12.7 2.7

Simplex In. 234 316 Buy 5,929 6,732 7,902 15.4 19.6 27.2 35.1 33.9 11.9 8.6 6.7 2.9


Exhibit 11: 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 ` ABL 128 42 - - 174 58 - - - - 302

CCCL 20 100 - - - - - - - - 20

HCC (5) (20) 12 50 16 70 - - - - 23

IRB Infra 136 60 - - 88 38 4 2 - - 228

ITNL 38 14 - - 195 74 - - 32 12 265

IVRCL 54 69 - - - - 25 31 - - 79

JP Assoc. 34 32 27 26 - - - - 43 42 104

L&T 1,296 79 - - - - 344 21 - - 1,641

Madhucon 33 39 2 2 50 59 - - - 84

NCC 43 57 2 2 10 13 - - 22 28 76

Patel Engg 55 51 17 16 16 15 - - 19 18 106

Punj Lloyd 75 100 - - - - - - - - 75

Sadbhav 102 51 - - 98 49 - - - - 199

Simplex In. 316 100 - - - - - - - - 316





April 28, 2012 8

Profit & loss statement (Standalone)

Y/E March (` cr) FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E

Net sales 3,314 3,644 4,093 3,988 4,239 4,522

Other operating income - - - - - -Total operating income 3,314 3,644 4,093 3,988 4,239 4,522

% chg 7.5 10.0 12.3 (2.6) 6.3 6.7

Total Expenditure 2,882 3,201 3,553 3,548 3,769 3,991

Net Raw Materials 1,236 1,060 1,222 1,090 1,297 1,370

Other Mfg costs 1,271 1,747 1,864 2,020 1,988 2,105

Personnel 375 394 468 439 484 517

Other - - - - - -

EBITDA 431 443 540 440 470 531

% chg 17.7 2.6 21.9 (18.5) 6.9 13.0

(% of Net Sales) 13.0 12.2 13.2 11.0 11.1 11.7

Depreciation& Amortisation 115 114 153 162 187 207

EBIT 316 329 387 278 283 324

% chg 16.9 4.0 17.7 (28.3) 1.8 14.6

(% of Net Sales) 9.5 9.0 9.5 7.0 6.7 7.2

Interest & other Charges 211 205 329 543 507 469

Other Income 9 13 53 113 63 75

(% of PBT) 8.2 10.7 47.2 (74.5) (38.9) (107.4)

Share in profit of Associates (0) (15) - - - -

Recurring PBT 115 122 112 (152) (161) (70)

% chg (4.3) 5.8 (8.3) (236.2) 5.9 (56.5)

Extraordinary Expense/(Inc.) 49 - - (166) - -

PBT (reported) 165 122 112 (318) (161) (70)

Tax 39 40 41 (96) (52) (23)

(% of PBT) 23.8 33.2 36.4 30.2 32.4 32.4

PAT (reported) 125 81 71 (222) (109) (47)

Add: Share of asso. - - - - - -

Less: Minority interest (MI) - - - - - -

Prior period items - - - - - -

PAT after MI (reported) 125 81 71 (222) (109) (47)

ADJ. PAT 76 81 71 (222) (109) (47)

% chg 3.9 7.2 (12.8) (413.0) (51.0) (56.5)(% of Net Sales) 2.3 2.2 1.7 (5.6) (2.6) (1.0)

Basic EPS (`) 3.0 2.7 1.2 (3.7) (1.8) (0.8)

Fully Diluted EPS (̀ ) 1.3 1.3 1.2 (3.7) (1.8) (0.8)

% chg 3.9 7.2 (12.8) (413.0) (51.0) (56.5)




April 28, 2012 9

Balance sheet (Standalone)

Y/E March (` cr) FY2009 FY2010 FY2011 FY2012E FY2013E FY2014E

SOURCES OF FUNDS

Equity Share Capital 26 30 61 61 61 61Preference Capital - - - - - -

Reserves& Surplus 979 1,502 1,462 1,191 1,018 907

Shareholder’s Funds 1,005 1,517 1,522 1,236 1,063 952

Minority Interest - - - - - -

Total Loans 2,322 2,515 3,471 4,532 4,388 4,325

Deferred Tax Liability 113 143 166 166 166 166

Total Liabilities 3,440 4,174 5,160 5,934 5,618 5,444

APPLICATION OF FUNDS

Gross Block 1,683 1,814 1,987 2,161 2,370 2,599

Less: Acc. Depreciation 555 664 803 965 1,153 1,360

Net Block 1,128 1,150 1,184 1,196 1,217 1,239

Capital Work-in-Progress 46 35 26 62 63 64

Goodwill - - - - - -

Investments 366 409 531 627 740 873

Current Assets 3,467 4,624 6,096 6,921 6,801 6,754

Cash 154 188 194 118 113 101

Loans & Advances 528 863 1,395 1,812 2,074 2,178

Other 2,785 3,573 4,508 4,990 4,613 4,476

Current liabilities 1,568 2,043 2,677 2,871 3,203 3,487

Net Current Assets 1,900 2,581 3,419 4,049 3,598 3,267

Misc. Exp. not written off - - - - - -

Total Assets 3,440 4,174 5,160 5,934 5,618 5,444




April 28, 2012 10

Cash flow statement (Standalone)

Y/E March (` cr) FY2009 FY2010 FY2011 FY2012E FY2013E FY2014E

Profit before tax 165 122 112 (318) (161) (70)

Depreciation 115 114 153 162 187 207Change in Working Capital 364 647 832 706 (447) (318)

Less: Other income 9 13 53 113 63 75

Direct taxes paid 39 40 41 (96) (52) (23)

Cash Flow from Operations (133) (465) (661) (879) 462 402

(Inc.)/ Dec. in Fixed Assets (252) (120) (164) (210) (210) (231)

(Inc.)/ Dec. in Investments (70) (43) (123) (96) (113) (133)

(Inc.)/ Dec. in loans and adv. - - - - - -

Other income 9 13 53 113 63 75

Cash Flow from Investing (313) (150) (234) (193) (260) (288)

Issue of Equity (71) 459 (38) - - -

Inc./(Dec.) in loans 477 193 957 1,060 (143) (63)

Dividend Paid (Incl. Tax) (24) (28) (28) (64) (64) (64)

Others (47) 25 10 - - -

Cash Flow from Financing 335 649 901 997 (207) (127)

Inc./(Dec.) in Cash (111) 34 5 (75) (5) (13)

Opening Cash balances 264 154 188 194 118 113

Closing Cash balances 154 188 194 118 113 100




April 28, 2012 11

Key Ratios

Y/E March FY2009 FY2010 FY2011 FY2012E FY2013E FY2014E

Valuation Ratio (x)

P/E (on FDEPS) 16.2 15.1 17.3 - - -P/CEPS 6.4 6.3 5.5 - 15.7 7.7

P/BV 1.2 0.8 0.8 1.0 1.2 1.3

Dividend yield (%) 3.9 3.9 4.4 4.4 4.4 4.4

EV/Sales 1.0 1.0 1.1 1.4 1.3 1.2

EV/EBITDA 7.9 8.0 8.4 12.8 11.7 10.3

EV / Total Assets 1.0 0.9 0.9 1.0 1.0 1.0

Order book to sales 4.4 4.6 4.0 3.8 3.2 2.6

Per Share Data (`)EPS (Basic) 3.0 2.7 1.2 (3.7) (1.8) (0.8)

EPS (fully diluted) 1.3 1.3 1.2 (3.7) (1.8) (0.8)

Cash EPS 3.2 3.2 3.7 (1.0) 1.3 2.6

DPS 0.8 0.8 0.9 0.9 0.9 0.9

Book Value 16.6 25.0 25.1 20.4 17.5 15.7

DuPont Analysis

EBIT margin 9.5 9.0 9.5 7.0 6.7 7.2

Tax retention ratio 0.8 0.7 0.6 0.7 0.7 0.7

Asset turnover (x) 1.1 1.0 0.9 0.7 0.7 0.8

ROIC (Post-tax) 8.1 6.0 5.5 3.6 3.4 4.0

Cost of Debt (Post Tax) 7.7 5.7 7.0 9.5 7.7 7.3

Leverage (x) 1.9 1.8 1.8 2.9 3.8 4.2

Operating ROE 8.7 6.7 2.7 (13.2) (12.9) (9.7)

Returns (%)

ROCE (Pre-tax) 9.9 8.6 8.3 5.0 4.9 5.9

Angel ROIC (Pre-tax) 10.6 9.0 8.6 5.2 5.0 6.0

ROE 7.6 6.5 4.7 (16.1) (9.5) (4.7)

Turnover ratios (x)

Asset Turnover (Gross Block) 2.1 2.1 2.2 1.9 1.9 1.8

Inventory / Sales (days) 271 318 360 434 413 366

Receivables (days) 1 1 0 0 0 0

Payables (days) 153 186 229 278 286 298

Work. cycle (ex-cash) (days) 172 207 250 327 319 268Solvency ratios (x)

Net debt to equity 2.2 1.5 2.2 3.6 4.0 4.4

Net debt to EBITDA 5.0 5.3 6.1 10.0 9.1 8.0

Interest Coverage 1.5 1.6 1.2 0.5 0.6 0.7




April 28 2012 12

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

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

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Disclosure of Interest Statement HCC

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

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

hcc result updated

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