jp associates result updated

8/3/2019 JP Associates Result Updated

1/12

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

-

Y/E March (` cr) 3QFY12 3QFY11 % chg (yoy) 2QFY12 % chg (qoq)Net sales 3,305 2,949 12.1 3,132 5.5Operating profit 816 846 (3.6) 748 9.1

Net profit 205 233 (11.9) 129 59.3Source: Company, Angel Research

For 3QFY2012, Jaiprakash Associates (JAL) reported in-line performance on

the revenue front but better-than-expected numbers on the EBITDAM and PAT

level. This outperformance was owing to high margin in construction segment

(owing to last leg of payment for completion of Yamuna expressway) and

higher other income (on account of dividend from subsidiaries). Werecommend Buy on the stock.Revenue in line; Higher EBITDAM and other income results in earningsoutperformance: On the top-line front, the companys revenue increased by12.1% on a yoy basis to `3,305cr, which was exactly as per our estimate. The

cement segment reported growth of 37.2% yoy; however, construction and real

estate revenue declined by 1.7% and 27.6%, respectively, on a yoy basis. Blended

EBITDA margin came in at 24.7%, down 400bp yoy and ahead of our expectation

of 21.2%. The construction and real estate segments, with EBIT margins of 29.8%

and 47.9%, respectively, led to good show on the margin front. Interest cost stood

at `448.5cr, up 32.6% yoy 10.8% qoq and marginally higher than our estimate

of `425.1cr. Depreciation cost came in at `202.2cr, up 31.1% yoy and 14.8%qoq and higher than our estimate of `184.9cr. The bottom line came in at

`205.0cr, a decline of 11.9% yoy and higher than our estimate of `69.5cr due to

high other income. Other income during the quarter jumped from `3.0cr in

3QFY2011 to `120.1cr in 3QFY2012.

Outlook and valuation: We have valued JALs cement and construction businessat 6x EV/EBITDA (`62.2/share) and (`31.2/share), respectively. We have valued

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

discount), which contributes `66.1/share to our target price. The hotel segment

contributes `0.8/share. Treasury shares (`7.7/share) have been valued at the

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

our valuation at `68.6. We recommend our Buy rating on the stock with a revisedSOTP target price of `99 (`88), implying an upside of 15.8% from current levels.Key financials (Standalone)Y/E March (` cr) FY2010 FY2011 FY2012E FY2013ENet sales 10,355 13,832 13,763 16,017% chg 68.4 33.6 (0.5) 16.4

Adj. net profit 989 1,168 582 893% chg 10.2 18.1 (50.2) 53.5

FDEPS (`) 4.7 5.5 2.7 4.2EBITDA margin (%) 27.9 27.2 24.5 24.4

P/E (x) 18.5 15.6 31.4 20.5

RoAE (%) 13.0 13.0 6.1 8.8

RoACE (%) 10.2 10.5 7.7 8.6

P/BV (x) 2.1 1.9 1.9 1.7

EV/Sales (x) 3.1 2.7 2.8 2.5

EV/EBITDA (x) 11.2 10.0 11.6 10.0

Source: Company, Angel Research

BUYCMP `86

Target Price `99

Investment Period 12 Months

Stock Info

Sector

Bloomberg Code

Shareholding Pattern (%)

Promoters 43.8

MF / Banks / Indian Fls 22.6

FII / NRIs / OCBs 19.1

Indian Public / Others 14.4

Abs. (%) 3m 1yr 3yr

Sensex 7.8 (0.4) 95.6

JAL 22.4 1.5 85.2

2

18,2025,532

JAIA.BO

JPA@IN

18,266

1.8

103/50

2,031,243

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

3QFY2012 Result Update | Infrastructure

February 15, 2012


2/12

JP Associates | 3QFY2012 Result Update

February 15, 2012 2

Exhibit 1:3QFY2012 performance (Standalone)

Y/E March (` cr) 3QFY12 3QFY11 % chg(yoy) 2QFY12 % chg(qoq) 9MFY12 9MFY11 % chg(yoy)Net sales 3,305 2,949 12.1 3,132 5.5 9,616 9,234 4.1Total exp. 2,489 2,102 18.4 2,384 4.4 7,279 6,946 4.8Op. profit 816 846 (3.6) 748 9.1 2,337 2,288 2.1OPM (%) 24.7 28.7 (400)bp 23.9 (80)bp 24.3 24.8 (50)bp

Int. 449 338 32.6 405 10.8 1,280 989 29.3

Dep. 202 154 31.1 176 14.8 550 457 20.4

Non op. inc. 120 3 3889.1 56 115.0 182 13 1292.8

Non recurring 2 - - (0) - 1 367 -

PBT 287 357 (20) 223 28.9 690 1,221 (43.5)Tax 82 124 (34) 94 (12.5) 249 357 (30.3)

Reported PAT 205 233 (11.9) 129 59.3 441 864 (49.0)PAT (%) 6.2 7.9 (170)bp 4.1 210bp 4.6 9.4 -

Adj. PAT 205 233 (11.9) 129 59.3 441 497 (11.3) Adj.PAT (%) 6.2 7.9(170)bp 4.1 210bp 4.6 5.4 (80)bp

Adj. EPS (`) 1.0 1.1 (11.9) 0.6 59.3 2.1 2.3 (11.3)Source: Company, Angel Research

Exhibit 2:3QFY2012 Actual vs. Estimates

(` cr) Actual Estimates Variation (%)Net Sales 3305 3304 0.0

EBITDA 816.0 700.9 16.4

Interest 448.5 425.1 5.5Tax 82.4 28.4 190.2

PAT 205.0 69.5 194.9



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February 15, 2012 3

Exhibit 3:Segmental performance

Y/E March (` cr) 3QFY2012 3QFY2011 % Chg 9MFY2012 9MFY2011 % ChgSegment RevenueCement & Cement Products 1,697 1,237 37.2 4,548 3,887 17.0Construction 1,242 1,264 (1.7) 4,072 4,272 (4.7)

Power 3 4 (23.5) 31 27 13.8

Hotel/Hospitality and Golf Course 60 55 10.0 141 129 8.9

Real Estate 308 426 (27.6) 857 1,115 (23.2)

Investment 120 4 2989.0 182 11 1524.1

Others 8 2 - 12 7 -

Unallocated 16 33 (52.5) 59 95 (38.5)

Less: Inter-Segmental Performance 29 72 (59.4) 104 299 (65.2)

Total Sales Income 3,426 2,953 16.0 9,798 9,246 6.0Segment ResultsCement & Cement Products 170 142 19.4 334 617 (45.8)

Construction 371 272 36.1 1,182 708 67.0

Power (2) 0 (1260.0) 16 15 8.0

Hotel/Hospitality and Golf Course 9 9 (0.6) 1 7 (91.1)

Real Estate 148 294 (49.8) 420 583 (28.0)

Investment 120 4 0.0 182 11 1524.1

Others (0) (1) - (8) (3) -

Excep : Profit on Sale of Shares - - - - 513 -

Total PBIT 816 721 13.2 2,127 2,452 (13.2)Less: Interest Expense 449 338 32.6 1,280 989 29.3

Less: Exceptional Item - - - - - 0.0

Less: Unallocable Expense 80 26 211.1 158 95 65.3

PBT 287 357 (19.5) 690 1,367 (49.5)PBIT Margin (%) bp chg. bp chg.Cement & Cement Products 10.0 11.5 (149) 7.4 15.9 (852)

Construction 29.8 21.6 829 29.0 16.6 1,246

Power (53.5) 3.5 (5,707) 52.4 55.2 (284)

Hotel/Hospitality and Golf Course 15.3 16.9 (164) 0.4 5.0 (462)

Real Estate 47.9 69.1 (2,119) 49.0 52.3 (327)

Investment 100.0 100.0 - 100.0 100.0 -

Others (0.5) (50.7) - (66.9) (35.4) -Unallocated - - - - 538.3 -

Capital Employed in SegmentCement & Cement Products 17,219 14,194 21.3 17,219 14,194 21.3

Construction 3,876 3,509 10.5 3,876 3,509 10.5

Power 1,941 1,168 66.2 1,941 1,168 66.2

Hotel/Hospitality and Golf Course 598 523 14.4 598 523 14.4

Real Estate 3,309 2,281 45.1 3,309 2,281 45.1

Investment 7,042 5,866 20.0 7,042 5,866 20.0

Others 336 255 31.8 336 255 31.8

Unallocated 1,405 2,610 (46.1) 1,405 2,610 (46.1)

Total 35,727 30,406 17.5 35,727 30,406 17.5Source: Company, Angel Research


4/12


February 15, 2012 4

Segment-wise performance

Cement division

JALs cement division reported revenue growth of 37.2% yoy to`

1,697cr(`1,237cr), 10.0% higher than our estimate of `1,543cr. Higher-than-expected

performance was due to better realization of `3,994/tonne against our estimate of

`3,250/tonne. Volume for the quarter came in at 4.3mtpa an increase of 13.4%

on yoy basis. The volume has also gone up owing to commissioning of its Balaji

Cement plant at Andhra Pradesh.

Construction division

The construction division continued its poor performance on the revenue front with

a 1.7% yoy decline to `1,242cr and in line with our estimate of `1,264cr.

Divisional EBIT margin witnessed a phenomenal jump of 829bp yoy and came in

at 29.8%. This was on account of revenue booking for last portion of the recentlycompleted Yamuna Expressway and Karcham Wangtoo projects. Since the past

few quarters, there has been huge volatility in the construction segment in terms of

revenue and EBIT margins.

Real estate division

The real estate division reported a decline of 27.6% yoy to `308cr, which was

below our estimate of `446.8cr. Divisional EBIT margin for the segment witnessed

a dip of 2,119bp yoy and came in at 47.9%.

Exhibit 4:Revenue growth back on track


Exhibit 5:Quarterly EBITDA trend Stable


82.6

58.4

122.1

60.551.8

62.6

(0.5)

19.0

(1.1) 2.012.1

(20.0)

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

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

23.1

27.529.9

25.5

21.2

24.7

28.721.4

24.3 23.9 24.7

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

0

100

200

300

400

500

600

700

800

900

1,000

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

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


5/12


February 15, 2012 5

Higher EBITDAM and other income results in better-than-

expected earnings performance

Blended EBITDA margin came in at 24.7%, down 400bp yoy and ahead of our

expectation of 21.2%. The construction and real estate segments, with EBIT

margins of 29.8% and 47.9%, respectively, led to good show on the margin

front. Interest cost stood at `448.5cr, up 32.6% yoy 10.8% qoq and marginally

higher than our estimate of `425.1cr. Depreciation cost came in at `202.2cr,

up 31.1% yoy and 14.8% qoq and higher than our estimate of `184.9cr. The

bottom line came in at `205.0cr, a decline of 11.9% yoy and higher than our

estimate of `69.5cr due to high other income (on account of dividend from

subsidiaries). Other income during the quarter jumped from `3.0cr in

3QFY2011 to `120.1cr in 3QFY2012, which along with higher EBITDAM

resulted in better-than-expected earnings performance.

Exhibit 6:PATM higher owing to high other income

Source: Company, Angel Research;

11.8

7.3

6.0

7.3

4.63.7

7.9 7.6

3.44.1

6.2

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

0

50

100

150

200

250

300

350

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

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


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February 15, 2012 6

Outlook and valuation

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

(`62.2/share) and (`31.2/share), respectively. We have valued its power and real

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

contributes `66.1/share to our target price. The hotel segment contributes

`0.8/share. Treasury shares (`7.7/share) have been valued at the current market

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

`68.6. We recommend our Buy rating on the stock with a revised SOTP targetprice of `99 (`88), implying an upside of 15.8% from current levels.

Exhibit 7:SOTP valuation

Business Segment Methodology % Upside/ (Downside) ` cr `/share % to Target PriceCement EV/EBITDA (x) 6x EV/EBITDA 13,234 62.2 62.6

Construction EV/EBITDA (x) 6x EV/EBITDA 6,641 31.2 31.4Power Mcap of JPVL (@ 15% holding company discount) 8,089 38.1 38.3

Real Estate NAV/Mcap Jayppe InfraTech + Jaypee Greens 5,956 28.0 28.2

Hotels 8x FY2013E Net Profit 166 0.8 0.8

Treasury Stock At CMP 1,626 7.7 7.7

Net Debt Net Debt for Cement, Construction and Real Estate Business (14,567) (68.6) (68.9)

Total 21,146 99.4 100.0Source: Company, Angel Research

Exhibit 8:Angel EPS forecast vs. consensus

Angel Forecast Bloomberg Consensus Variation (%)FY2012E 2.7 3.8 (27.3)

FY2013E 4.2 4.7 (11.5)



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February 15, 2012 7

Exhibit 9: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)

ABL 205 245 Buy 1,302 1,648 1,853 19.3 19.2 21.7 25.4 15.2 10.7 9.5 8.1 4.2CCCL 18 17 Reduce 2,199 2,258 2,646 9.7 2.5 (1.5) 2.4 (3.6) 7.1 - 7.7 2.7

HCC 30 - Neutral 4,093 3,915 4,633 6.4 1.2 (3.1) 0.6 (25.8) 25.8 - 47.0 4.0

IRB Infra 189 - Neutral 2,438 3,176 3,781 24.5 13.6 14.2 13.1 (2.0) 13.9 13.4 14.5 -

ITNL 213 235 Accu. 4,049 5,178 6,619 27.9 22.3 22.9 26.0 7.8 9.5 9.3 8.2 5.2

IVRCL 60 64 Accu. 5,651 5,057 5,758 0.9 5.9 2.0 4.8 (9.6) 10.2 29.8 12.5 4.4

JP Assoc. 86 99 Buy 13,832 13,763 16,017 7.6 5.5 2.7 4.2 (12.6) 15.6 31.4 20.5 -L&T 1,449 1,608 Accu. 43,905 53,779 60,258 17.2 54.3 63.7 70.9 14.2 26.7 22.7 20.4 3.3

Madhucon 65 77 Buy 1,816 1,952 2,503 17.4 5.6 4.4 4.7 (8.1) 11.7 14.8 13.9 3.8

NCC 62 - Neutral 5,074 4,946 5,790 6.8 6.4 1.4 3.5 (26.1) 9.7 44.7 17.7 4.3

Patel Engg 120 - Neutral 3,476 3,573 3,609 1.9 17.6 14.9 14.8 (8.3) 6.9 8.1 8.1 2.7

Punj Lloyd 63 - Neutral 7,850 10,147 10,592 16.2 (5.4) 3.5 2.9 - - 17.9 21.7 3.6

Sadbhav 143 157 Accu. 2,209 2,602 2,585 8.2 8.0 9.3 9.2 7.3 18.0 15.5 15.6 2.7

Simplex In. 224 261 Buy 4,889 5,961 6,732 17.3 21.5 24.0 29.1 16.3 10.4 9.4 7.7 2.9


Exhibit 10: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 10442 - - 141 58 - - - - 245

CCCL 17 100 - - - - - - - - 17HCC 4 12 12 37 16 51 - - - - 32

IRB Infra 116 64 - - 61 34 4 2 - 182

ITNL 59 25 - - 152 65 - - 25 10 235

IVRCL 39 60 - - - - 26 40 - - 64

JP Assoc. 31 31 28 28 - - - - 40 40 99L&T 1,276 79 - - - - 332 21 - - 1,608

Madhucon 23 30 2 3 52 68 - - - 77

NCC 29 48 2 3 8 14 - - 22 35 61

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

Punj Lloyd 71 100 - - - - - - - - 71

Sadbhav 83 53 - - 75 47 - - - - 157

Simplex In. 261 100 - - - - - - - - 261



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February 15, 2012 8

Profit & Loss Statement (Standalone)

Y/E March (` cr) FY2008 FY2009 FY2010 FY2011 FY2012E FY2013ENet Sales 4,274 6,148 10,355 13,832 13,763 16,017% chg 19.4 43.8 68.4 33.6 (0.5) 16.4Total Expenditure 2,888 4,084 7,465 10,076 10,396 12,108Net Raw Materials 1,374 2,153 4,290 6,304 6,026 6,916

Other Mfg costs 575 843 1,497 1,500 2,041 2,419

Personnel 255 331 453 596 687 785

Other 683 757 1,225 1,677 1,642 1,988

EBITDA 1,386 2,064 2,891 3,756 3,368 3,909% chg 33.2 48.9 40.1 29.9 (10.3) 16.1

(% of Net Sales) 32.4 33.6 27.9 27.2 24.5 24.4

Dep. & Amort. 203 309 456 608 779 875

EBIT 1,183 1,755 2,435 3,148 2,589 3,034% chg 34.8 48.4 38.7 29.3 (17.8) 17.2

(% of Net Sales) 27.7 28.5 23.5 22.8 18.8 18.9

Interest 339 504 1,056 1,394 1,728 1,713

Other Income - - - - - -

(% of PBT) - - - - - -

Share of Assoc - - - - - -

Recurring PBT 844 1,251 1,379 1,754 861 1,321% chg 36.0 48.3 10.2 27.2 (50.9) 53.5

Extra. Exp/(Inc.) - - 719.5 0.8 - -

PBT (reported) 844 1,251 2,098 1,755 861 1,321Tax 234 354 390 587 279 429

(% of PBT) 27.7 28.3 18.6 33.4 32.5 32.5

PAT (reported) 610 897 1,708 1,169 582 893PAT after MI 610 897 1,708 1,169 582 893ADJ. PAT 610 897 989 1,168 582 893% chg 46.9 47.1 10.2 18.1 (50.2) 53.5

(% of Net Sales) 14.3 14.6 9.5 8.4 4.2 5.6

Basic EPS (`) 5.2 6.4 4.7 5.5 2.7 4.2Fully Diluted EPS ( ) 2.9 4.2 4.7 5.5 2.7 4.2% chg 46.9 47.1 10.2 18.1 (50.2) 53.5


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February 15, 2012 9

Balance Sheet (Standalone)

Y/E March (` cr) FY2008 FY2009 FY2010 FY2011 FY2012E FY2013ESOURCES OF FUNDSEquity Share Capital 234 280 425 425 425 425Preference Capital - - - - - -

Reserves& Surplus 4,364 6,418 8,076 8,972 9,379 10,088

Shareholders Funds 4,598 6,698 8,501 9,397 9,804 10,514Minority Interest - - - - - -Total Loans 8,306 13,106 17,909 21,708 23,666 23,942

Deferred Tax Liability 571 720 956 1,220 1,220 1,220

Total Liabilities 13,475 20,524 27,366 32,325 34,691 35,676APPLICATION OF FUNDSGross Block 5,166 8,619 12,847 14,796 18,966 21,311

Less: Acc. Depreciation 1,455 1,801 2,228 2,840 3,619 4,494

Net Block 3,712 6,818 10,619 11,957 15,348 16,817Capital Work-in-Progress 4,219 5,082 3,892 6,353 4,447 3,113

Deferred Tax Asset 11.5 30.4 32.8 26.4 26.4 26.4

Investments 3,225 4,465 5,576 6,484 7,428 7,596Current Assets

Cash 1,815 2,909 3,879 2,463 2,930 2,937

Loans & Advances 2,222 3,263 3,995 4,570 5,002 6,403

Other 1,926 2,991 5,225 6,120 6,269 7,309

Current liabilities 3,655 5,037 5,853 5,647 6,759 8,526

Net Current Assets 2,308 4,126 7,246 7,506 7,441 8,123Misc. Exp. not written off - 2 - - - -

Total Assets 13,475 20,524 27,366 32,325 34,691 35,676


10/12


February 15, 2012 10

Cash Flow Statement (Standalone)

Y/E March (` cr) FY2008 FY2009 FY2010 FY2011 FY2012E FY2013EProfit before tax 844 1,251 1,065 1,755 861 1,321

Depreciation 203 309 456 608 779 875Change in Working Capital (28) 1,709 2,725 1,676 (532) 674

Direct taxes paid 234 316 271 587 279 429

Cash Flow from Operations 841 (465) (1,474) 100 1,892 1,094Inc./ (Dec.) in Fixed Assets 2,955 3,324 3,077 4,410 2,264 1,010

Inc./ (Dec.) in Investments 1,446 891 (214) 908 945 168

Cash Flow from Investing 4,401 4,215 2,863 5,318 3,209 1,178Issue of Equity 1,250 426 87 (4) - -

Inc./(Dec.) in loans 2,790 4,379 4,803 3,799 1,958 276

Dividend Paid (Incl. Tax) 134 81 176 166 175 183

Others (40) (1,049) (594) (172) - -

Cash Flow from Financing 3,946 5,772 5,307 3,801 1,784 92Inc./(Dec.) in Cash 386 1,093 971 (1,417) 467 8

Opening Cash balances 1,430 1,815 2,909 3,879 2,463 2,930Closing Cash balances 1,815 2,909 3,879 2,463 2,930 2,937


11/12


February 15, 2012 11

Key Ratios

Y/E March FY2008 FY2009 FY2010 FY2011 FY2012E FY2013EValuation Ratio (x)P/E (on FDEPS) 16.5 13.4 18.5 15.6 31.4 20.5P/CEPS 12.4 10.0 8.4 10.3 13.4 10.3

P/BV 2.2 1.8 2.1 1.9 1.9 1.7

Dividend yield (%) 1.2 1.2 1.3 0.9 1.0 1.0

EV/Sales 5.8 4.6 3.1 2.7 2.8 2.5

EV/EBITDA 17.9 13.8 11.2 10.0 11.6 10.0

EV / Total Assets 1.8 1.4 1.2 1.2 1.1 1.1

Per Share Data (`)EPS (Basic) 5.2 6.4 4.7 5.5 2.7 4.2

EPS (fully diluted) 2.9 4.2 4.7 5.5 2.7 4.2

Cash EPS 6.9 8.6 10.2 8.4 6.4 8.3

DPS 1.0 1.0 1.1 0.8 0.8 0.9

Book Value 39.2 47.8 40.0 44.2 46.1 49.4

DuPont AnalysisEBIT margin 27.7 28.5 23.5 22.8 18.8 18.9

Tax retention ratio 72.3 71.7 81.4 66.6 67.6 67.6

Asset turnover (x) 0.4 0.4 0.5 0.5 0.4 0.5

ROIC (Post-tax) 8.9 8.6 9.6 7.9 5.7 6.4

Cost of Debt (Post Tax) 3.5 3.4 5.5 4.7 5.1 4.9

Leverage (x) 1.4 1.5 1.6 1.8 2.1 2.1

Operating ROE 16.6 16.3 16.2 13.7 6.8 9.4

Returns (%)ROCE (Pre-tax) 10.6 10.3 10.2 10.5 7.7 8.6

Angel ROIC (Pre-tax) 18.7 17.6 15.2 14.6 10.2 10.7

ROE 16.3 15.9 13.0 13.0 6.1 8.8

Turnover ratios (x) Asset Turnover (Gross Block) 0.9 0.9 1.0 1.0 0.8 0.8

Inventory / Sales (days) 76 66 49 42 46 45

Receivables (days) 44 48 58 67 74 69

Payables (days) 338 353 239 186 195 205

W.cap cycle (ex-cash) (days) 43 51 81 111 127 110

Solvency ratios (x)Net debt to equity 1.4 1.5 1.7 2.0 2.1 2.0

Net debt to EBITDA 4.7 4.9 4.9 5.1 6.2 5.4

Interest Coverage 3.5 3.5 2.3 2.3 1.5 1.8


12/12


February 15 2012 12

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

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