C O M P A N Y India 17 Apr 2012

U P D A T E

KPR Mill
17,358 5,290 194 77

Rs 80.85

Sector: Textile
xxxo...
BSE Sensex Nifty 52 week high (Rs) 52 week low (Rs)

Underpowered, but ready to soar

KPR Mill has braved industry headwinds to report 15.4% growth in 9mFY12 revenues, EBITDA margin of 14.38% and PAT margin of 2.9%. Tamil Nadus power crisis affected output in Q3FY12, resulting in reduced utilization and delay in operations of new high-value compact yarn spinning facilities, but the company managed to stay in black. Compact Yarn capacity fully operational from January 5, 2012

Bloomberg NSE Code BSE Code Equity Shares (m) Face Value (Rs) Market Cap (Rs mn)

KPR.IN KPRMILL 532889 37.68 10 3,047

KPRs new capacity is fully operational from January 5, 2012, increasing the Yarn capacity to 90,000MT p.a. Power situation to improve after June The power deficit in the state may continue till June when monsoon arrives, and wind-mills produce power. Henceforth, we expect the utilization to be in line with historical numbers. The state government has already fast-tracked power projects. We have revised downward revenue and PAT estimates for FY12. FY13 has also been reduced on account of expected utilization drop due to states power issues in Q1. A cocktail of right fundamentals and future growth potential With yarn capacity now increased by 60% to 90,000MT, KPR is poised to reap rich benefits from textile demand revival. KPR has the healthiest balance sheet among peers even with recent capacity expansion, modernization and debt for Sugar Mill. Growth drivers for FY13: FY13 will benefit from new high valueadd Compact Yarn capacity. Power self-sufficiency by H2FY13 will save costs and ensure operations continuity year round. Sugar mill operations will commence in Q3FY13. Textile sector will witness revival as cotton prices have now stabilized worldwide.

Share Price Performance % KPR 1 week 1 month 3 month 6 month 1 year -1.3 -4.0 -10.0 -15.3 -56.8 Sensex 0.7 -0.6 5.4 2.0 -10.5

Shareholding Pattern (Mar11)% Promoters 74.48 FIIs/ FVCIs DII Corporates Others 8.88 1.08 3.36 12.5

We have revised our Mar13 price target from Rs 240 to Rs 180, as power shortage will result in underperformance in Q1FY13 too, lowering the FY13 EBITDA and PAT margins. Despite challenges in FY12, KPR remains a quality stock, and amongst the best picks in the textile space. FY13 will see profit revival and FY14 could see return to full profitability. At a likely FY14 PE <2x, and D/E of <1x, KPR offers value at current price.
FY'07 4,974 1,359 584 27 11.7 21 15 NL 5.3 1.3 NL FY'08 FY'09 FY'10 6,064 7,477 8,340 1,384 1,097 1,641 793 101 504 23 15 20 13.1 1.4 6.0 19 2 10 10 5 9 4.6 7.7 8.3 6.7 5.1 5.0 1.2 1.0 0.8 5.2 9.7 4.9 FY'11 FY'12e FY'13e FY'14e 11,074 12,755 16,165 19,757 2,493 1,786 2,942 3,996 722 332 931 1,839 23 14.0 18 20 6.5 2.6 5.8 9.3 13 5 14 24 11 6 11 18 9.7 9.5 3.3 1.7 5.5 6.9 3.9 2.2 1.3 1.6 1.3 0.8 3.3 4.9 6.2 7.4

Revenue (Rs. Mn) EBITDA (Rs. Mn) PAT (Rs. Mn) EBITDA margin (%) Net margin (%) ROE (%) ROCE (%) P/E Ratio (x) EV/EBITDA (x) D/E Dividend Yield (%)
NL = Not Listed

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Company Update: KPR Mill

17 Apr12

Performance Update
Underpowered in Q3FY12
Tamil Nadu power woes affect performance
TN power issues have impacted Coimbatore-based manufacturing facilities

Tamil Nadu is facing power shortage of ~4000MW leading to power cuts of as high as five-six hours in daytime in areas like Coimbatore. This has impacted the operations of manufacturing industries. Tamil Nadu Generation and Distribution Ltd (TANGEDCO) estimates power demand in Tamil Nadu to be around 11,500-12,500MW growing by 10% on back of industrial capacity additions. The Supply is pegged to be around 8,500MW at present, leaving the state with a shortage of upto 4,000MW. TANGEDCO has started a day per week as power holiday hitting the Coimbatore textile industry with an estimated Rs 3bn production loss per day. TNs Distribution utility has demanded a 64% rise in energy charges for FY13.

Q3 impacted due to reduced utilization

Q3FY12 utilization reduced to 85% due to power shortage

KPRs Q3 performance was affected as utilization reduced to 85% from 90% levels. Also, KPR had to bear additional power cost of Rs 45mn has it sought to buy merchant power to partially fill the supply gap.
KPR Mill Operating Income Raw Material costs Employee Cost Other Expenditure EBITDA EBITDA Margin% Depreciation EBIT Interest Other Income PBT Tax PAT PAT Margin % Q3FY'12 2,820 1,873 206 310 430 15.3% 255 175 133 13 55 1 54 1.9% Q2FY'12 3,401 2,443 181 312 465 13.7% 247 218 122 12 108 (2) 110 3.2% Q-o-Q -17% -23% 14% -1% -7% 3% -20% 9% 12% -49% -133% -51% Q3FY'11 3,037 1,819 253 262 703 23.1% 191 512 52 6 465 129 336 11.1% Y-0-Y -7% 3% -19% 19% -39% 34% -66% 155% 136% -88% -99% -84%

Rs Mn Q3 revenue declined 17% QoQ and PAT declined 51% QoQ. If we exclude the MTM loss of Rs 122.4mn taken as other expenditure in Q2, Q2FY12 EBITDA margin be 17.3%. Hence on a QoQ basis, there was a decline in EBITDA margin as well.

Exports growing strongly

YTD FY12 revenues boosted by exports
YTD revenues up 15% YoY, Margins

KPR achieved a nine monthly revenue growth of 15% YoY, at par with peer average. KPRs exports increased 44.5% YoY and

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Company Update: KPR Mill

impacted due to industry issues

17 Apr12

accounted for 35% of revenues compared to 27% in corresponding period last year. While Garment exports increased 14% YoY, KPR stepped up exports of other products Yarn and Fabrics in YTD FY12.
KPR Mill Operating Income Raw Material costs Employee Cost Other Expenditure EBITDA EBITDA Margin% Depreciation EBIT Interest Other Income PBT Tax PAT PAT Margin % 9M FY'11 8,072 4,745 595 716 2,016 25.0% 548 1,468 172 14 1,310 367 942 11.7% 9M FY'12 9,314 6,694 610 671 1,339 14.4% 734 605 321 37 320 50 270 2.9% YoY 15% 41% 3% -6% -34% 34% -59% 87% 166% -76% -86% -71%

Cotton situation normalises

While the 9m results show high cotton costs, this is more an impact of Q1, when KPR took a Rs 278mn write-off due to sharp drop in cotton prices. Since then, cotton prices trended towards to historical trading range. Going forward, we expect raw material cost/sales to come down to normal range of around 65%. For company yarn, the ratio would be even better since it enjoys higher margins. KPR has also taken an MTM expense of Rs 122.4mn in Q2FY12 due to rupee depreciation. The depreciation costs are higher on YoY basis as KPR revised the depreciation charges on windmill after reassessment of useful life in Q4FY11. Monthly Average Prices of Benchmark Cotton Variety Shankar 6/4

Steep fall in cotton prices in Q1 resulted in inventory writedown of Rs 278mn. Prices have maintained at stable levels, thereafter.

Source: Textile Corporation of India

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Company Update: KPR Mill High raw profitability

Raw Material price volatility affected entire industry.
Company

17 Apr12

material

prices

lower

industry

The higher raw material costs have lowered textile industry profitability in this financial year. Average EBITDA margin of peer group declined from 17.8% last year to 15.4% in 9mFY12.
Revenue (Rs mn) 9mFY'12 YoY 48.1% 26.5% 9.4% 23.5% 18.4% 17.6% 20.0% -50.3% 20.7% -13.7% -13.3% 15.7% 9,314 15.4% EBITDA Margin (%) 9mFY'11 27.8% 13.1% 25.0% 26.9% 13.2% 22.4% 19.1% 12.3% 0.8% -2.9% -4.5% 17.8% 25.0% 9mFY'12 28.5% 14.6% 12.5% 26.0% 16.5% -2.9% 20.3% -112.4% 2.4% -0.1% 2.1% 15.4% 14.4% Net Margin (%) 9mFY'12 9mFY'12 reported Adj 9mFY'11 5.2% 3.7% 12.0% 11.1% 3.6% 10.1% 9.1% -1.4% 0.7% -7.3% -9.8% 6.9% 11.7% 1.6% 10.1% 1.8% 8.5% 4.2% -9.9% 7.6% -175.5% 0.9% -11.2% -9.3% 5.0% 2.9% 4.5% 5.9% 1.8% 8.5% 4.5% -9.9% 7.6% -175.5% 0.9% -10.5% -9.3% 4.8% 2.9%

Large Integrated Players Alok Industries Arvind Ltd.* Vardhman Bombay Rayon Welspun India Nahar Spinning Mandhana Industries Mudra Lifestyle Garment Focused Exporters House of Pearl Fashions* Gokaldas Exports Celebrity Fashions Mean KPR Mill* 18,814 7,259 1,170 61,581 36,539 29,996 19,388 18,602 12,277 6,526 1,632

Mid-Size Integrated Players

*Consolidated results **Q3 MTM loss excluded as KPR has not taken it to make results comparable, for Arvind exceptional profit on sale of JV stake in Arvind Brands excluded Negative margins excluded from average calculation

Revenue growth at par, profitability marginally lower

KPRs revenue growth was at par with peer group in 9mFY12. Its EBITDA was 100 basis points lower than the peer average and PAT margins were ~200basis points lower than the peer group. Four out of eleven peers posted losses in the period and four others witnessed a decline in profitability.

Valuation ttm multiples at premium

KPR is trading at a premium as far as its ttm EV/EBITDA and P/E multiples are concerned, on account of lower profitability. However, its EV/Sales and P/B multiples are at a discount of 28% and 44% with respect to the peer group average.

Four-S Research

Company Update: KPR Mill

Company EV/Sales (x) Large Integrated Players Alok Industries Arvind Ltd. Vardhman Bombay Rayon Welspun India Mid-Size Integrated Players Nahar Spinning Mandhana Industries Mudra Lifestyle Garment Focused Exporters House of Pearl Fashions Gokaldas Exports Celebrity Fashions Mean KPR Mill 0.2 0.6 0.9 1.1 0.8 6.2 NM 50.6 6.7 7.7 5.8 NM NM 8.7 61.2 0.3 0.9 NM 0.9 0.5 0.8 1.5 1.9 35.1 8.2 NM NM 12.5 NM 0.3 2.2 NM 1.3 0.9 0.9 2.5 0.8 4.6 6.5 5.8 10.6 5.1 3.3 7.8 7.0 15.8 NM 0.5 1.2 0.7 1.2 0.5 EV/EBITDA (x) PE (x) P/B (x)

17 Apr12
D/E Sep-11 3.1 1.5 1.2 1.1 2.5 1.9 1.6 24.2 0.9 1.0 NM 1.6 1.2

KPR trades at a discount as far as its P/B and EV/ Sales multiples are concerned.

Note: CMP as of 17th April 2012, Outstanding shares as on 31st march 2012, except for Alok Industries.

Projections and Price Target

We revise the revenue and PAT for FY12 and 13
Estimates are revised due to unexpected power issues in Coimbatore

We have revised our estimates for KPR Mill in FY12 and FY13 taking the YTD performance and states power shortage into account. While we had already projected a low margin of 4% for FY12, taking into account the cotton price volatility, unforeseen factors such as rupee depreciation and state power shortage has further affected YTD performance. Hence, we further reduce the FY12 projections. As the TN State power shortage will take some time to resolve, and wind-power will get efficient in monsoon season, we can expect first quarter of FY13 also to be impacted. Hence, we have downward revised FY13 as well.
FY12e FY13e FY14e Revised Previous Var% Revised Previous Var% Added Revenue (Rs. Mn) 12,755 14,003 -9% 16,165 17,743 -9% 19,757 EBITDA (Rs. Mn) 1,786 2,231 -20% 2,942 3,472 -15% 3,996 PAT (Rs. Mn) 332 566 -41% 931 1,367 -32% 1,839 EBITDA margin (%) 14.0 15.9 18.2 19.6 20.2 Net margin (%) 2.6 4.0 5.8 7.7 9.3

Fundamental growth drivers in place

Growth from higher value addition, increased exports
High-value Yarn capacity addition of 60% will be a

KPR has increased its yarn capacity by 60% with addition of highvalue compact yarn and melange yarn capacities. The compact yarn unit has gone fully operational from 5th January, 2012. FY13e will

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Company Update: KPR Mill

key growth driver aided by increased traction in exports and commencement of Sugar Mill operations

17 Apr12

have the full benefit of added capacity. KPR has gained traction in exports with FY08-11 CAGR of 28% to reach ~Rs 3bn by FY11 by mainly exporting garments. In 9mFY12, it has stepped up yarn exports as well, and achieved an exports growth of 44.5% YoY. We expect the momentum to continue. KPR Sugar Mills will also commence operations from H2FY12.

States Power Situation to improve by June 2012

TN State has fasttracked many power projects, and expects to resolve the shortage

TANGEDCO expects the power deficit to be overcome once wind-mill generation increases from June 2012 onwards. Many new power projects, including the Kudankulam Nuclear Power Project are expected to be commissioned this year. TNs Chief Minister has also planned Udangudi Power Corporations 1,600MW project as a state government project and fast tracked it.

100% self-sufficiency in Power

With Co-Gen cum Sugar Mill going operational in FY13 sugar season, KPR will get year around self-sufficiency

While KPR is already meeting 75% of its power requirements through Wind-Mills, its Co-gen cum Sugar Mill will give it 100% power selfsufficiency in FY13. This will help it save on power costs (power tariffs are expected to be increased this year) and increase its utilization levels. Compared to other peers, KPR will have a competitive advantage in power.

Cotton costs have stabilized, expected to remain flat

World cotton prices have stabilized with Production expected to surpass consumption in cotton season 2011-12. ICAC predicts world cotton production to rise 7% YoY to 26.78MT in 2011-12 whereas Global cotton mill use will remain stable at 23.73MT, significantly lower than production. As per Cotton Corporation of India, the area under cotton cultivation will increase to 121.9 lakh hectares in 2011-12, an increase of 9.4% YoY. Cotton Advisory Board predicts closing stock to increase by 14.5% in 2011-12 season at estimated production levels and reduced mill consumption. Hence, cotton prices would face flat to downward pressures.

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Company Update: KPR Mill

40 35 30 33.9 34.5

17 Apr12

Cotton prices are expected to be stable going forward

25 20
15 10 5 0 Production

22.1 21.6

6.9

8.4 4.8 5.5

Mill Use 2010-11

Exports 2011-12

Closing stock

Source: Office of Textile Commissioner

Valuation and Price target

KPR is trading at a P/E of 3.3x and EV/ EBITDA of 3.9X its FY13 numbers, much lower than peer average of 8.7x and 6.7x, respectively. At current prices, KPR gives a strong dividend yield as well.
Valuations will restore to historical levels by end of FY13

We expect valuations to move towards historical numbers of 8x P/E and 5X, EV/ EBITDA as industry challenges are mitigated. With power situation expected to be normal from June 2012 onwards, stable cotton prices and increase of utilization to normal numbers, we expect KPR to cross Rs 180 per share mark by March 2013.

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Company Update: KPR Mill

17 Apr12

Financial Annexure Profit & Loss Statement

FY07 Net Sales Other Operating Income Revenue from Sugar Mill Revenue from Operations (Increase) / Decrease In Stock In Trade & WIP Consumption of Raw Materials Manufacturing Expenses Power and Fuel expenses Personnel Expenses Administrative & Other Expenses Selling & Distribution Expenses MTM expenses done in Q2FY12 Expenses for Sugar Mill Total Expenses 3,615 4,679 6,380 6,699 8,581 10,969 4,974 6,064 7,477 8,340 11,074 12,755 4,816 158 FY08 5,739 324 FY09 7,182 295 FY10 8,032 308 FY11 10,494 581 FY12E 12,089 666 FY13E 14,452 708 1,005 16,165 FY14E 15,631 776 3,350 19,757

(132) 3,175 230 161 51 131

(47) 3,888 152 193 315 46 133

14 5,231 216 236 493 55 134

(119) 5,171 344 261 609 274 160

(605) 7,243 431 336 821 163 192

(335) 8,745 440 575 915 288 219 122

116 9,615 526 609 1,066 226 262

58 10,366 568 442 1,119 245 283

804 13,224

2680 15,761

EBITDA

1,359

1,384

1,097

1,641

2,493

1,786

2,942

3,996

Depreciation EBIT Other Income Financial Expenses

364 995 16 209

470 914 88 176

560 537 29 384

705 936 31 273

1,257 1,236 21 323

952 834 49 440

1,311 1,631 84 474

1,316 2,680 109 338

PBT Provision for Taxes Profit after Tax before Minority Interest Minorities Interest and Others

802 218 584 -

826 33 793 -

183 82 101 -

693 189 504 -

934 212 722 -

443 111 332 -

1,241 310 931 -

2,451 613 1,839

Reported Net Profit

584

793

101

504

722

332

931

1,839 (Rs mn)

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Company Update: KPR Mill

17 Apr12

Common Size
Net sales Other Operating Income Sugar Mill Income Revenue from Operations 100.0 % -2.7% 63.8% 4.6% 0.0% 3.2% 1.0% 2.6% 100.0 % -0.8% 64.1% 2.5% 3.2% 5.2% 0.8% 2.2% 100.0 % 0.2% 70.0% 2.9% 3.2% 6.6% 0.7% 1.8% 100.0 % -1.4% 62.0% 4.1% 3.1% 7.3% 3.3% 1.9% 100.0 % -5.5% 65.4% 3.9% 3.0% 7.4% 1.5% 1.7% 100.0 % -2.6% 68.6% 3.4% 4.5% 7.2% 2.3% 1.7% 1.0% 5.0% 72.7% 27.3% 7.3% 20.0% 0.3% 4.2% 16.1% 4.4% 11.7% 0.0% 11.7% 77.2% 22.8% 7.8% 15.1% 1.5% 2.9% 13.6% 0.5% 13.1% 0.0% 13.1% 85.3% 14.7% 7.5% 7.2% 0.4% 5.1% 2.4% 1.1% 1.4% 0.0% 1.4% 80.3% 19.7% 8.5% 11.2% 0.4% 3.3% 8.3% 2.3% 6.0% 0.0% 6.0% 77.5% 22.5% 11.3% 11.2% 0.3% 2.9% 8.4% 1.9% 6.5% 0.0% 6.5% 86.0% 14.0% 7.5% 6.5% 0.6% 3.4% 3.5% 0.9% 2.6% 0.0% 2.6% 81.8% 18.2% 8.1% 10.1% 1.0% 2.9% 7.7% 1.9% 5.8% 0.0% 5.8% 13.6% 79.8% 20.2% 6.7% 13.6% 1.3% 1.7% 12.4% 3.1% 9.3% 0.0% 9.3% FY07 96.8% 3.2% FY08 94.6% 5.4% FY09 96.1% 3.9% FY10 96.3% 4.1% FY11 94.8% 5.2% FY12E 94.8% 5.2% FY13E 89.4% 4.4% 6.2% 100.0 % 0.7% 59.5% 3.3% 3.8% 6.6% 1.4% 1.6% FY14E 79.1% 3.9% 17.0% 100.0 % 0.3% 52.5% 2.9% 2.2% 5.7% 1.2% 1.4%

(Increase) / Decrease In Stock In Trade Consumption of Raw Materials Manufacturing expenses Power and Fuel expenses Personnel expenses Administrative & Other expenses Selling & Distribution expenses MTM expenses done in Q2FY12 Operational expenses for Sugar Mill Total Expenses EBITDA Depreciation EBIT Other Income Financial Expenses Profit before tax Provision for taxes Profit after tax before minority interest Minorities Interest and others Reported net profit

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Company Update: KPR Mill

17 Apr12

Balance Sheet
FY07 Share Capital Reserves and Surplus Total equity capital Secured Loans Unsecured Loans Deferred Tax Liability Total Liabilities Goodwill Gross Block Less: Depreciation Net Fixed Assets Work-in-progress Investments Inventory Debtors Cash and Bank Balance Other Current Assets Loans and Advances Total Current Assets Current Liabilities Provision Total Current Liabilities Net Current Assets Miscellaneous expenditure Total Assets 318 3,009 3,327 3,938 225 317 7,807 6,053 698 5,355 1,328 3 1,219 599 272 133 383 2,607 1,365 121 1,486 1,121 7,807 FY08 377 4,711 5,087 6,032 212 337 11,669 9,494 1,160 8,333 136 50 1,679 942 594 182 562 3,959 581 228 809 3,150 11,669 FY09 377 4,722 5,099 5,118 190 396 10,803 9,924 1,719 8,206 3 2,070 1,184 462 229 551 4,497 1,792 112 1,903 2,594 10,803 FY10 377 4,985 5,362 4,392 158 534 10,446 10,104 2,414 7,690 255 1,360 1,161 522 149 668 3,860 1,117 242 1,359 2,501 10,446 FY11 527 5,437 5,964 7,130 122 419 13,634 11,764 3,620 8,144 1,775 2,944 1,252 397 70 564 5,226 1,372 139 1,511 3,715 13,634 FY12E 556 5,581 6,137 9,312 145 177 15,772 7 13,918 4,572 9,346 2,557 600 2,625 1,474 110 158 631 4,997 1,577 158 1,735 3,262 0 15,772 FY13E 556 6,280 6,836 8,381 173 496 15,887 7 17,114 5,883 11,231 600 3,138 1,762 102 158 634 5,796 1,584 158 1,743 4,049 FY14E 556 7,843 8,399 5,881 188 981 15,448 7 17,363 7,199 10,165 600 3,394 1,905 304 153 614 6,376 1,536 154 1,690 4,676 -

15,887 15,448 (Rs mn)

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Company Update: KPR Mill

17 Apr12

Cash Flow Statement

FY08 FY09 183 560 1 384 (21) (4) FY10 693 705 3 273 (20) (10) FY11 934 1,257 20 323 (15) (6) FY12E 443 952 440 FY13E 1,241 1,311 474 FY14E 2,451 1,316 338 -

Net Profit/(Loss) before Tax Add Depreciation Loss on Fixed Assets Interest Expense Interest Income Dividend Income (Increase)/Decrease in Trade/Other Receivables (Increase)/ Decrease in Loans and Advances (Increase)/Decrease in Inventories (Increase)/Decrease in Other Current Assets Increase/(Decrease) in Trade/Other Payables Direct Taxes Paid Increase/(Decrease) in Deferred Tax Liabilities Operating Cash-flow- A Purchase of Fixed Assets Proceeds from Sale of Fixed Assets Purchase of Investments Proceeds from Sale of Investment Dividend Received Interest Received Cash from Investing activitiesB Proceeds from Share Capital Proceeds from Securities Premium (Repayment)/ Proceeds of Secured Loans (Repayment)/ Proceeds of Unsecured Loans Interest Paid Dividend Paid Tax on Dividend Cash from Financing activitiesC Change in Cash= A+B+C Opening Balance Closing Balance

826 470 6 176 (49) (10)

(343) (177) (460) (48) (784) (10) 20 (403) (2,282) 20 (50) 5 7 49 (2,250) 59 1,129 2,094 (13) (176) (85) (32) 2,975 322 272 594

(242) 11 (391) (78) 1,211 (65) 59 1,547 (302) 2 50 4 21 (225) (1) (914) (22) (384) (113) (19) (1,453) (132) 594 462

4 (97) 710 80 (674) (94) 138 1,574 (454) 10 (2,745) 2,745 10 20 (414)

(92) (38) (1,584) 77 (55) (186) (115) 638 (2,815) 26 (3,625) 3,625 6 17 (2,767 ) -

(221) (67) 319 (88) 224 (352) (241) 1,649 (2,944) (600) (3,544) 29

(288) (3) (513) (1) 8 9 319 2,238 (639) (639) -

(144) 19 (256) 5 (53) (129) 484 3,548 (249) (249) -

(707) (32) (273) (75) (13) (1,100) 60 462 522

2,715 (37) (301) (320) (53) 2,004 (125) 522 397

2,183 24 (440) (161) (27) 1,608 (287) 397 110

(931) 28 (474) (237) (39) (1,653 ) (54) 110 56

(2,500) 14 (338) (274) (46) (3,143 ) 155 56 211

(Rs mn)

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Company Update: KPR Mill

17 Apr12

Ratios
FY07 FY08 FY09 FY10 FY11 FY12E FY13E FY14E

Per Share Numbers EPS CEPS DPS Adjusted Book Value per Share Profitability EBITDA margin Pre-tax margin Net margin ROAE ROACE Growth Revenue growth EBITDA growth Net profit growth Turnover Net Asset turnover Net Working Cap turnover Debtors turnover Debtor Days Inventory turnover Inventory Days Payables turnover Payables Days Liquidity Ratios Current Ratio Quick Ratio Cash Ratio Solvency Debt Equity Leverage Ratio Net Debt / EBITDA Interest Coverage Valuation Ratios P/E P/BV EV/EBITDA EV/Sales Dividend Payout Dividend Yield

21.1 33.5 5.0 135.0

2.7 17.5 2.0 135.3

13.4 32.1 5.5 142.3

19.0 52.3 6.0 154.3

8.5 33.8 4.0 158.9

24.4 59.2 5.0 177.4

48.5 83.4 6.0 218.9

27.3% 16.1% 11.7% 21.0% 15.5%

22.8% 13.6% 13.1% 18.9% 9.7%

14.7% 2.4% 1.4% 2.0% 4.9%

19.7% 8.3% 6.0% 9.6% 9.2%

22.5% 8.4% 6.5% 12.8% 10.7%

14.0% 3.5% 2.6% 5.5% 5.8%

18.2% 7.7% 5.8% 14.3% 10.5%

20.2% 12.4% 9.3% 24.1% 18.0%

21.9% 1.9% 3.0%

23.3% -20.8% -77.9%

11.5% 49.6% 278.9%

32.8% 51.9% 43.2%

15.2% -28.3% -54.0%

26.7% 64.7% 179.9%

22.2% 35.8% 97.5%

0.6 6.2 9.8 37 5 75 4 93

0.6 2.8 7.9 46 4.2 87 6 59

0.6 2.6 7.0 52 4.0 92 6 58

0.7 3.3 7.1 51 4.9 75 6 64

0.9 3.6 9.2 40 5.1 71 9 41

0.8 3.7 9.4 39 4.6 80 9 42

1.0 4.4 10.0 37 5.6 65 10 36

1.2 4.6 10.8 34 6.0 60 13 29

1.8 0.9 0.1

4.9 2.8 0.2

2.4 1.3 0.7

2.8 1.8 0.2

3.5 1.5 0.4

2.9 1.4 0.3

3.3 1.5 0.1

3.7 1.7 0.0

1.3 2.3 2.9 4.8

1.2 2.3 4.1 5.2

1.0 2.1 4.4 1.4

0.8 1.9 2.5 3.4

1.3 2.3 2.8 3.8

1.6 2.6 5.3 1.9

1.3 2.4 2.9 3.4

0.8 1.9 1.5 7.9

NM NM 5.3 1.5

4.6 0.7 6.7 1.5 24% 5.2%

7.7 0.2 5.1 0.8 75% 9.7%

8.3 0.8 5.0 1.0 41% 4.9%

9.7 1.2 5.5 1.2 31% 3.3%

9.5 0.5 6.9 1.0 47% 4.9%

3.3 0.5 3.9 0.7 21% 6.2%

1.7 0.4 2.2 0.5 12% 7.4% (Rs mn)

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Company Update: KPR Mill

17 Apr12

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