BharatBijlee Emkay 270111

Stock Update
Emkay
Areva T&D
x
Equity Advisory
Result Update
Retail Advisory Team
Your success is our success
January 25, 2011
Contents
Result Updates Bharat Bijlee
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Emkay Global Financial Services Ltd.
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January 06, 2010 | 1
In line; Reiterate Buy

January 25, 2011
Reco
Previous Reco
Buy
Buy
CMP
Target Price
Rs 1,088
Rs 1,350
EPS change FY11E/12E (%)
NA
Target Price change (%)
NA
19,151
Nifty
5,743
Sensex
Price Performance
1M
(%)
3M
6M 12M
Absolute
(14) (20) (10)
Rel. to Nifty
10
(9)
(24) (21)
Source: Bloomberg
Relative Price Chart

1300
Rs
20
1210
10
1120
1030
-10
940
-20
850
Jan-10
-30
Mar-10
May-10
Jul-10
Bharat Bijlee (LHS)
Sep-10
Nov-10
Rel to Nifty (RHS)
Source: Bloomberg
Stock Details
Sector
Transformer
Bloomberg
BIJL@IN
Equity Capital (Rs mn)
57
Face Value(Rs)
10
No of shares o/s (mn)
52 Week H/L
1,316/736
Market Cap (Rs bn/USD mn)
5/110
Daily Avg Volume (No of sh)
6110
Daily Avg Turnover (US$mn)
0.1
Shareholding Pattern (%)

Promoters
FII/NRI
Institutions
Private Corp
Public
S10
J10
M10
35.7
35.7
35.7
1.7
1.8
1.9
25.1
24.7
22.5
5.4
5.6
6.0
32.0
32.1
33.9
Source: Capitaline
Emkay Global Financial Services Ltd
PAT grows by 92% yoy to Rs142mn (our expectations -
Rs137mn) - driven by 28% revenue growth (mainly volume

growth) and increase in EBITDA margins to 11.8% (+320bps)
9mFY11 EPS stands at Rs62.2/Share (up 47% yoy), maintain
earnings of Rs96.1 and Rs116.4 in FY11E and FY12E with

upward bias going into Q4FY11E
Valuations (3xFY12E EBITDA and 5.8xFY12E earnings) not
pricing in value of inv. in Siemens (at 40% discount to CMP of

Siemens, the value is Rs265/Share or 28% of BBLs CMP);
Top pick in transformers pack; Reiterate Buy
PAT growth of 92% driven by volume growth in both the businesses

Bharat Bijlee reported 28% yoy growth in revenues to Rs2.1bn, in line with estimates.
The EBITDA margins improved (due to low base) to 11.8% (our estimate - 12.2%) from
8.6% in Q3FY10 (+320bps yoy). The improvement is driven by (1) better transformers
margins on low base and increased volumes and (2) ~ 20% volume growth in motors
business driven by improvement in industrial capex. As a result of 320bps improvement
in EBITDA margins, EBITDA and PAT grew by 76% and 92% yoy to Rs244mn and
Rs142mn, in line.
Maintain earnings with upward bias going into Q4FY11E

For 9mFY11, BBL has reported earnings of Rs62.2/Share (up 47% yoy). The Q4FY11E
implied number stands at Rs33.9/share (growth of 14% yoy). This is 36% of overall
FY11E earnings. Given the companys history of almost 40%+ earnings in Q4, we
maintain our FY11E and FY12E earnings with positive bias going into Q4FY11E.
Though we are factoring in only 40bps improvement in EBITDA margins in FY12E, we
continue to believe there is a higher scope of operational leverage coming into play and
improve the margins.
Price not factoring in improving performance & Siemens inv. value;

Reiterate Buy
BBL has a long-term investment in Siemens (2.8mn shares) and HDFC (0.10mn
shares). After according 40% (earlier 50%) discount to CMP of the above securities, per
share investment value for BBL works out to Rs265/Share. To value BBL, we have
removed the above value (Rs265/Share) from the CMP of Rs943/Share. The stock is
trading (ex-investment value) at Bargain Hunt valuations of 5.8xFY12E earnings,
3.0xFY12E EBITDA and 1.3xFY12E Book Value. On the back of (1) earnings CAGR of
26% in FY10-12E, (2) cheap valuations, (3) qtr by qtr improving numbers and (4)
performance track record, we reiterate our Buy ratings. Bharat Bijlee remains our top
pick in the transformers pack. Maintain our target price of Rs1350/Share (at 5xFY12E
EBITDA).
Financial Snapshot
Rs Mn
YE-
Net
Mar
Sales
(Core)
EBITDA
(%)
APAT
EPS
EPS
RoE
(Rs)
% chg
(%)
P/E
EBITDA
FY09
5,447
817
15.0
478
FY10
6,555
700
10.7
FY11E
7,739
963
12.4
FY12E
9,014
1,153
12.8
EV/
P/BV
84.6
(33.7)
26.0
8.0
4.6
1.9
412
72.9
(13.8)
19.4
9.3
4.9
1.7
543
96.1
31.8
22.6
7.1
3.7
1.5
658
116.4
21.1
23.8
5.8
3.0
1.3
Result Update
Bharat Bijlee Ltd
Bharat Bijlee Ltd
Result Update
Quarterly Results
Rs mn
Q3FY10
Q4FY10
Q1FY11
Q2FY11
Q3FY11
YoY (%)
QoQ (%)
9mFY10
9mFY11
YoY (%)
1,616
2,106
1,058
1,846
2,072
28.2
12.3
4,449
4,976
11.8
Expenditure
-1,477
-1,838
-945
-1,590
-1,828
23.8
14.9
-4,017
-4,363
8.6
as % of sales
-91.4%
-87.3%
-89.3%
-86.2%
-88.2%
-90.3%
-87.7%
-1,224
-1,537
-697
-1,280
-1,504
22.9
17.5
-3,287
-3,481
Revenue
Consumption of RM
-75.7%
-73.0%
-65.9%
-69.3%
-72.6%
-73.9%
-70.0%
Power and Fuel
as % of sales
as % of sales
Other Mfg Exenses
as % of sales
Employee Cost
as % of sales
Other expenditure
as % of sales
EBITDA
-137
-143
-149
-145
-145
-8.5%
-6.8%
-14.1%
-7.9%
-7.0%
-117
-158
-99
-166
-179
-7.2%
-7.5%
-9.3%
-9.0%
-8.6%
139
267
113
255
244
5.8
-0.3
53.6
8.1
76.0
-4.2
-401
-438
-9.0%
-8.8%
-330
-443
-7.4%
-8.9%
432
613
5.9
9.4
34.5
41.8
Depreciation
-22
-22
-21
-23
-22
3.2
-1.3
-62
-66
6.6
EBIT
117
245
93
232
222
22.1
-4.5
370
547
47.7
Other Income
-5
-5
-8
-10
90.2
15.5
-12
-23
88.5
PBT
Interest
112
251
88
224
212
89.5
-5.3
358
524
46.3
Total Tax
-38
-79
-29
-73
-70
85.3
-3.2
-119
-172
44.9
74
173
59
151
142
91.6
-6.3
239
352
46.9
74
173
59
151
142
239
352
46.9
Adjusted PAT
Extra ordinary items
Reported PAT
(Profit)/loss from JV's/Ass/MI
PAT after MI
Reported EPS
91.6
-6.3
74
173
59
151
142
91.6
-6.3
239
352
46.9
13.1
30.5
10.4
26.8
25.1
91.6
-6.3
42.4
62.2
46.9
(bps)
(bps)
Margins (%)
(bps)
EBIDTA
8.6
12.7
10.7
13.8
11.8
320
-203
9.7
12.3
260
EBIT
7.2
11.7
8.8
12.6
10.7
346
-188
8.3
11.0
267
EBT
6.9
11.9
8.3
12.1
10.2
331
-190
8.1
10.5
248
PAT
4.6
8.2
5.5
8.2
6.8
226
-136
5.4
7.1
169
33.9
31.3
33.3
32.5
33.2
-75
72
33.2
32.9
-31
Effective Tax rate
Emkay Research
25 January 2011
Bharat Bijlee Ltd
Result Update
Financials
Income Statement
Balance Sheet
Y/E, Mar (Rs. mn)
FY09
Net Sales
FY10
FY11E
FY12E
Y/E, Mar (Rs. mn)
FY09
FY10
FY11E
FY12E
5,447
6,555
7,739
9,014
Equity share capital
57
57
57
57
-3.1
20.3
18.1
16.5
Reserves & surplus
1,938
2,185
2,510
2,904
Expenditure
4,630
5,855
6,776
7,861
Net worth
1,995
2,241
2,566
2,960
Raw Materials
3,664
4,824
5,440
6,337
Minority Interest
Construction Exp
391
391
617
718
Secured Loans
116
276
276
276
Employee Cost
514
543
605
673
Unsecured Loans
Loan Funds
116
276
276
276
39
39
39
39
2,151
2,557
2,882
3,276
Gross Block
994
1,092
1,385
1,528
Less: Depreciation
319
403
505
622
Net block
675
689
880
906
51
33
40
47
2,844
4,259
4,789
5,607
Growth (%)
Other Exp
61
97
114
133
817
700
963
1,153
-28.4
-14.4
37.7
19.7
15.0
10.7
12.4
12.8
71
84
103
117
EBIT
746
616
861
1,037
EBIT margin (%)
13.7
9.4
11.1
11.5
EBITDA
Growth (%)
EBITDA margin (%)
Depreciation
Net deferred tax liability

Total Liabilities
Other Income
30
54
47
45
Capital work in progress
Interest expenses
45
61
85
85
Investment
731
609
822
996
Current Assets
PBT
Tax
253
197
280
339
Inventories
Effective tax rate (%)
34.6
32.4
34.0
34.0
Sundry debtors
Adjusted PAT
(Profit)/loss
from JV's/Ass/MI
Adjusted PAT after MI
478
412
543
658
Cash & bank balance
478
412
543
658
Other current assets
-33.7
-13.8
31.8
21.1
8.8
6.3
7.0
7.3
Growth (%)
Net Margin (%)
E/O items
Reported PAT
Growth (%)
890
1,001
1,181
1,376
1,569
1,809
2,135
2,487
173
670
552
672
212
780
920
1,072
Current lia & Prov
1,419
2,424
2,827
3,284
Current liabilities
1,137
1,505
1,742
2,021
Loans & advances
Provisions
478
412
543
658
Net current assets
282
919
1,085
1,264
1,425
1,835
1,963
-34.1
-13.8
31.8
21.1
Misc. exp & Def. Assets
2,323
2,151
2,557
2,882
3,276
FY09
FY10
FY11E
FY12E
15.0
10.7
12.4
12.8
8.8
6.3
7.0
7.3
ROCE
36.7
26.2
31.6
33.7
Total Assets
Cash Flow
Key Ratios
Y/E, Mar (Rs. mn)
FY09
PBT (Ex-Other income)

Depreciation
Interest Provided
Other Non-Cash items
Chg in working cap
Tax paid
Operating Cashflow
Capital expenditure
Free Cash Flow
FY10
FY11E
FY12E
701
555
775
951
71
84
103
117
45
61
85
85
Y/E, Mar
Profitability (%)
EBITDA Margin
Net Margin
754
-550
-412
-419
ROE
26.0
19.4
22.6
23.8
-1,217
440
-114
-160
RoIC
43.3
32.6
41.5
42.8
354
590
438
574
-239
-80
-300
-150
Per Share Data (Rs)

EPS
84.6
72.9
96.1
116.4
97.1
87.7
114.2
137.1
115
510
138
424
CEPS
Other income
30
54
47
45
BVPS
353.1
396.7
454.2
523.9
Investments
DPS
25.1
25.0
33.0
39.9
-209
-26
-253
-105
Investing Cashflow
Equity Capital Raised
Valuations (x)
PER
8.0
9.3
7.1
5.8
Loans Taken / (Repaid)
-64
160
P/CEPS
7.0
7.7
5.9
4.9
Interest Paid
-45
-61
-85
-85
-142
-141
-186
-226
-5
-24
-32
-38
Financing Cashflow
-250
-66
Net chg in cash
-105
498
Dividend paid (incl tax)

Income from investments
Others
P/BV
1.9
1.7
1.5
1.3
EV / Sales
0.7
0.5
0.5
0.4
EV / EBITDA
4.6
4.9
3.7
3.0
Dividend Yield (%)
3.7
3.7
4.9
5.9
-303
-349
Gearing Ratio (x)
-119
120
Net Debt/ Equity
0.0
-0.2
-0.1
-0.1
-0.1
-0.6
-0.3
-0.3
84
65
67
67
Opening cash position
277
173
670
552
Net Debt/EBIDTA
Closing cash position
172
670
552
672
Working Cap Cycle (days)
Emkay Research
25 January 2011
Bharat Bijlee Ltd
Result Update
Recommendation History: Bharat Bijlee BIJL IN

Date
Reports
Reco
CMP
Target
28/10/2010
Bharat Bijlee Q2FY11 Result Update
Buy
1,088
1,350
23/07/2010
Accumulate
1,260
1,350
14/05/2010
Buy
988
1,200
28/01/2010
Accumulate
940
1,063
Recent Research Reports
Emkay Research
25 January 2011
Date
Reports
Reco
CMP
Target
13/01/2011
Sintex Industries Q3FY11 Result Update
Accumulate
169
215
11/11/2010
GIPCL Q2FY11 Result Update
Accumulate
118
135
01/11/2010
Voltamp Q2FY11 Result Update
Hold
862
840
27/10/2010
NTPC Q2FY11 Result Update
Hold
198
190
Result Update
DB Corp
Cost pressure to remain, maintain hold
Q2FY11 PAT grew by 30.4% yoy to Rs659mn, slightly below
January 25, 2011
Reco
Previous Reco
Hold
Hold
CMP
Target Price
Rs260
Rs284
NA
NA
19,151
Sensex
5,743
Nifty
Price Performance
(%)
1M
3M
Absolute
(4)
(9)
(1)
(4)
(13)
Rel. to Nifty
6M 12M
Source: Bloomberg

300
Rs
30
280
24
260
18
240
12
220
200
Jan-10
Feb-10
Mar-10
May-10
Jun-10
DB Corp (LHS)
Aug-10
Sep-10
0
Oct-10
Rel to Nifty (RHS)
Source: Bloomberg
Stock Details
Sector
Print Media
Bloomberg
DBCL@IN
1815
Face Value(Rs)
10
182
52 Week H/L
307/224
46/1,008
65252
0.4

Promoters
S10
J10
M10
86.3
86.3
86.4
FII/NRI
8.8
8.4
8.7
Institutions
3.1
2.7
2.5
Private Corp
0.6
0.7
0.6
Public
1.2
1.8
1.8
Source: Capitaline
our estimate of Rs684mn impacted by sharp rise in opex

towards newsprint cost and new launches
Robust advertisement revenue of Rs2.8bn grew by 29% yoy
led by volume and price growth
Significant yoy increase of 26% and 34% in raw material and
other operating cost dents EBITDA and profitability
Robust revenue ad growth to continue but margin pressure to
remain in short term. Maintain HOLD rating with target price

Rs284
Robust ad revenue growth

DB Corp reported net sales growth of 25% yoy led by strong ad revenue growth of
29.1% yoy to Rs2.8bn (Our est. of Rs 2.6bn, 21% growth yoy), driven by robust volume
growth and marginal from pricing growth. Circulation revenue remained flat at Rs 540mn
yoy. Radio revenue stood at Rs128mn with EBITDA margin of 25%. Con. EBIDTA grew
by 22.5% yoy to Rs 1148mn while EBIDTA margins declined by 60bps yoy. Despite of
strong revenue growth, margin decline was primarily due to 34% and 26% yoy rise in
SG&A and raw material expenses, respectively. PAT for the quarter stood at Rs 659mn
up 30.4% yoy but below our estimates of Rs684mn.
New launches and newsprint prices put cost pressure

Post the launch of Ranchi edition in Jharkhand, Bhatinda edition in Punjab and Nagaur
in Rajasthan in Q2FY11, DB Corp added Jamshedpur and Jammu edition in Q3FY11 in
its bouquet. It is expected to launch Dhanbad edition in Q4FY11. Newsprint print prices
have increased from $643/MT in Q2FY11 to $664/MT in Q3FY11; however since then it
has stabilized. Average newsprint cost for DB Corp increased by ~4% from
Rs26835/MT in Q2FY11 to Rs27868/MT. With high newsprint prices we expect the
operating cost pressure from new launches would further increase going forward.
Outlook
The company has reported better than expected ad revenue growth for Q3FY11. The
growth has been primarily led by the volume, which signals the improvement in the
macro environment. The management has also indicated, going forward the growth
would come from volumes rather than increase in ad rate. Given the increase in the ad
spends across the sectors and improving ad volumes, we have maintained our ad
revenue growth estimate of 14.1% yoy to Rs11.2bn for FY12E.
Newsprint price from the current levels is not expected to increase significantly;
however, the raw material prices for DB Corp would increase due to increase in
circulation of copies. This increase would get mitigated by ad revenue in long-term.
Rating maintained at HOLD, target price of Rs284

We maintain our rating on the stock to HOLD considering the cost pressures due to rise
in newsprint prices and aggressive launch of new additions would limit upside to our
target price of Rs284 on the stock. At CMP of Rs260, the stock trades at 19.6x and
17.4x our estimated EPS for FY11E and FY12E respectively.
Financial Snapshot
Y/E -
Net
Mar
Sales
Rs Mn
EBITDA
(Core)
(%)
PAT
EPS
EPS
ROE
(Rs)
(Rs)
%chg
(%)
EV/
P/E
EBITDA
P/BV
FY09
9490
1353
14.3
476
2.6
-36.6
19.5
99.1
35.6
19.0
FY10
10630
3429
32.3
1828
10.1
283.8
39.5
25.8
14.2
7.0
FY11E
12373
3824
30.9
2406
13.3
31.6
30.3
19.6
12.7
5.2
FY12E
13912
4377
31.5
2716
15.0
12.9
26.0
17.4
10.6
4.0
DB Corp
Result Update
Quarterly financials
Q3FY10
Q4FY10
Q1FY11
Q2FY11
Q3FY11
YoY chg
QoQ chg
YTD '10
YTD '11
YoY chg
2,792
2,572
2,987
3,010
3,482
24.7
15.7
9,479
8,008
18.4
Expenditure
1855.0
1876.1
1850.8
2058.7
2334
25.8
13.4
6244
5324
17.3
Raw Material
844.9
788.6
831.8
901.2
1064.5
26.0
18.1
2,798
2,490
12.3
as % of sales
30.3
30.7
27.8
29.9
30.6
29.5
31.1
337.1
360.4
410.5
458.7
484.5
12.1
14.0
13.7
15.2
13.9
297.0
364.7
285.9
336.7
399.1
Sales
Emoployee Cost
as % of sales
SG&A expenses
as % of sales
Other operating expenses
as % of sales
10.6
14.2
9.6
11.2
11.5
376.0
362.4
322.7
362.2
385.9
43.7
5.6
1,354
958
14.3
12.0
821
34.4
18.5
1,022
10.8
10.3
2.6
6.6
1,071
1,055
41.4
24.4
1.5
13.5
14.1
10.8
12.0
11.1
11.3
13.2
EBITDA
937.4
695.6
1135.9
951.3
1148
22.5
20.7
3,235
2,684
20.6
Depreciation
106.2
104.6
104.2
107.0
110.2
3.8
3.0
321.3
273.8
17.4
EBIT
831.2
591.0
1031.7
844.3
1037.8
24.9
22.9
2914
2410
20.9
21.6
43.6
43.4
32.0
30.0
38.8
(6.0)
105.4
50.3
109.6
Other Income
Interest
67.1
87.3
47.0
37.7
34.1
(49.1)
(9.4)
118.9
201.7
(41.1)
PBT
785.7
547.4
1028.1
838.6
1033.7
31.6
23.3
2900.4
2258.3
28.4
Tax
296.9
197.4
348.7
307.7
381.6
28.5
24.0
1037.9
859.8
20.7
PAT before MI
488.9
350.0
679.4
530.9
652.1
33.4
22.8
1862.5
1398.5
33.2
Minority interest
-16.7
-17.2
-15.8
-19.8
-7.3
-42.9
-62.3
(31.1)
PAT
505.5
367.2
695.3
550.7
659.4
30.4
19.7
1905.4
1460.8
30.4
Q3FY10
Q4FY10
Q1FY11
Q2FY11
Q3FY11
bps
bps
YTD '10
YTD '11
bps
EBIDTA
33.6
27.0
38.0
31.6
33.0
(60)
136
34.1
33.5
62
EBIT
29.8
23.0
34.5
28.1
29.8
175
30.7
30.1
65
EBT
28.1
21.3
34.4
27.9
29.7
155
183
30.6
28.2
240
PAT
18.1
14.3
23.3
18.3
18.9
83
64
20.1
18.2
186
Effective Tax rate
37.8
36.1
33.9
36.7
36.9
(87)
22
35.8
38.1
(229)
Margins (%)
Emkay Research
25 January 2011
DB Corp
Result Update
Financials
Income statement
Balance Sheet
Y/E, Mar (Rs. mn)
FY09
FY10
FY11E
FY12E
Y/E, Mar (Rs. mn)
FY09
FY10
FY11E
FY12E
Net Sales
9,490
10,630
12,373
13,912
1,688
1,815
1,815
1,815
Growth (%)
11.6
25.0
45.5
63.6
Reserves & surplus
889
5,035
7,426
10,128
4 , 0 7 4
3 , 2 7 9
3 , 8 6 1
4 , 3 9 8
Net worth
2,577
6,850
9,241
11,943
E m p lo y e e c o s t
1 , 3 3 1
1 , 3 1 8
1 , 8 3 8
1 , 9 1 3
Secured Loans
5,412
2,966
2,066
866
SG&A expenses
1,217
1,170
1,357
1,475
Unsecured Loans
219
241
241
241
Other operating expenses
1,515
1,433
1,492
1,749
Loan Funds
5,631
3,207
2,307
1,107
Total operating expenditure
8,137
7,200
8,549
9,535
393
609
609
609
EBITDA
1,353
3,429
3,824
4,377
Minority Interest
124
44
-4
-44
Growth (%)
-20.8
-97.0
-96.6
-96.2
Total Liabilities
8,724
10,710
12,153
13,615
Gross Block
4,695
7,165
7,554
7,854
932
1,305
1,738
2,207
5,647
2 9 0
3 7 8
4 3 3
4 6 9
1,063
3,051
3,391
3,908
EBIT margin (%)
11.2
28.7
27.4
28.1
Net block
3,763
5,861
5,816
Other Income
120
112
165
195
2,708
614
614
614
Interest expenses
402
357
150
109
Investment
238
205
705
1,205
PBT
782
2,806
3,406
3,995
Current Assets
3,988
5,977
8,561
8,712
Tax
423
1,057
1,049
1,318
Inventories
1,042
54.2
37.7
30.8
33.0
PAT before MI
358
1,748
2,357
2,676
Minority interest
-118
-79
-48
-40
476
1,828
2,406
2,716
Depreciation
EBIT
Less: Depreciation
Sundry debtors
Cash & bank balance
722
927
1,934
2,201
2,449
452
2,313
4,062
3,679
1,542
Loans & advances
1,052
1,008
1,371
Current lia & Prov
2,189
2,073
3,663
2,675
Current liabilities
1,817
1,706
3,040
2,220
Provisions
Net current assets
Misc. exp & Def. Assets
Total Assets
Cash Flow
711
1,774
372
367
623
455
1,799
3,905
4,899
6,037
217
126
119
113
8,724
10,710
12,153
13,615
FY09
FY10
FY11E
FY12E
14.3
32.3
30.9
31.5
5.1
17.9
19.0
18.8
Ratios
Y/E, Mar (Rs. mn)

PBT
FY09
FY10
FY11E
FY12E
662
2,694
3,241
3,800
Y/E, Mar
Profitability (%)
Depreciation
290
378
433
469
Core EBITDA Margin
Interest
402
357
150
109
Net Margin
-51
2,521
-14
-14
ROCE
16.6
33.9
32.1
32.8
Chg in working cap

Tax paid
Operating Cashflow
343
-244
755
-1,521
ROE
19.5
39.5
30.3
26.0
-423
-1,057
-1,049
-1,318
RoIC
21.8
50.4
49.8
55.1
1,222
4,649
3,515
1,524
Per Share Data (Rs)
Capital expenditure
-3,138
-382
-388
-300
EPS (adjusted)
2.6
10.1
13.3
15.0
Free Cash Flow
-1,915
4,267
3,127
1,224
CEPS
4.2
12.2
15.6
17.6
120
112
165
195
BVPS
13.7
37.3
50.2
64.9
0.5
0.0
0.0
0.0
PER
99.1
25.8
19.6
17.4
P/CEPS
61.6
21.4
16.6
14.8
P/BV
19.0
7.0
5.2
4.0
5.1
4.6
3.9
3.3
35.6
14.2
12.7
10.6
0.2
0.0
0.0
0.0
Other income
Investments
Investing Cashflow
Interest Paid
Financing Cashflow
Net chg in cash
-170
33
-500
-500
DPS
-3,188
-238
-723
-604
Valuations (x)
-184
231
2,195
-2,424
-900
-1,200
-402
-357
-150
-109
1,609
-2,549
-1,043
-1,302
EV / Sales
EV / EBITDA
-356
1,861
1,749
-383
Dividend Yield (%)
808
452
2,313
4,062
Gearing Ratio (x)
452
2,313
4,062
3,679
Net Debt/ Equity
2.1
0.1
-0.2
-0.2
Net Debt/EBIDTA
3.7
0.2
-0.6
-0.9
Emkay Research
25 January 2011
DB Corp
Result Update
Recommendation History: D B Corp DBCL IN

Date
Reports
Reco
CMP
Target
27/10/2010
DB Corp Q2FY11 Result Update
Hold
284
284
03/08/2010
DBCL Q1FY11 Result Update
Accumulate
248
284
31/05/2010
DBCL Q4FY10 Result Update
Hold
240
284
05/05/2010
Print Media Sector Report
Emkay Research
25 January 2011
Date
Reports
Reco
CMP
Target
19/01/2011
HT Media Q3FY11 Result Update
Buy
145
175
18/01/2011
Tulip Telecom Event Update
Buy
168
240
19/11/2010
Reliance Communication Q2FY11 Result Update
Reduce
154
135
16/11/2010
Deccan Chronicle Q2FY11 Result Update
Buy
129
175
Short of expectations, opportunities ahead; Hold

January 25, 2011
Reco
Previous Reco
Hold
UR
CMP
Target Price
Rs 330

Nifty
NA
APAT grew by 29% YoY and 177% QoQ to Rs 10.65 bn, this is
19,151
1M
3M
6M 12M
Absolute
(4)
(10) (14)
Rel. to Nifty
10
(15) (25)
Source: Bloomberg

500
Rs
30
450
16
400
350
-12
300
-26
250
Jan-10
-40
Apr-10
Jun-10
Sesa Goa (LHS)
Aug-10
Oct-10
Rel to Nifty (RHS)
Stock Details
Metals & Mining
Sesa@IN
Bloomberg
860
860
494/287
52 Week H/L
284/6,226
3999356
28.3

D10
S10
J10
Promoters
55.7
55.7
55.7
FII/NRI
24.6
26.9
27.5
4.5
3.4
3.4
Private Corp
Public
Sales volume dropped higher than expected

Sales volume was reported at 5.381 mn tonnes for Q3FY11, significantly lower than our
expectations of 6.4 mn tonnes. According to the company, this was due to prolonged
monsoon in Goa and logistical bottlenecks in all the three states of operation viz. Goa,
Karnataka and Orissa. The company has sold 4.2 mn tonnes from Goa, 0.5 mn tonnes
from Orisssa and 0.7 mn tonnes from Karnataka. Duty continuing ban of iron ore
exports in Karnataka, the share of domestic sales rose to 15% compared to 3% in
Q3FY10 and for the 9MFY11 it remained at 11% against 7% during 9MFY10.
Higher costs and lower domestic realization restricted margin expansion

Along with the continuing logistical problems in the states of Karnataka and Orissa, the
company experienced problems in its Goa operation too due to time and weight
restrictions in movement of iron ore by trucks. This has increased the freight costs too
by ~US$1.2 per tonne in Goa. On a YoY basis rise in the export duty (5% on fines and
15% on lumps) and royalty rates (Rs 233/ tonne in Q3FY11) also put some pressure on
the margins. Along with the higher costs, lower realizations (US$35/ tonne less) in
domestic sales compared to exports also restricted the margin expansion on YoY basis.
Face Value(Rs)
Institutions
Rs 48.6 and Rs 44.3 respectively. Recommend HOLD
Dec-10
Source: Bloomberg
Sector
due to YoY reduction in depreciation and interest cost by 8%

and 47% respectively
Revising our earnings estimates for FY11E and FY12E to
Price Performance
(%)
EBITDA remained at Rs 12.3 bn up by 19% YoY while EBITDA
margin remained flat YoY at 54.8%. Higher export duty and

logistics costs partly offset YoY rise in realizations
5,743
Sensex
reported lower than expected numbers for Q3FY11 with

revenue came at Rs 22.5 bn up 19% YoY
NA
Rs 354
Despite improvement on both YoY and QoQ basis Sesa Goa
3.4
2.2
1.8
11.8
11.9
11.6
Source: Capitaline
Volume guidance maintained at 40 mn tonnes for FY12 (exit)

The management has reiterated its volume guidance of 40 mn tonnes for FY12 (exit)
with 30 mn tonne from Goa and 10 mn tonne from Karnataka. The company is confident
of getting necessary approval to achieve an exit rate of 10 million tonnes from
Karnataka in FY12 from currently ~6 mn tonnes. We believe this would not be very easy
without any inorganic growth as there are still uncertainty on regulations and policy
measures in both the sates of Karnataka and Goa.
Outlook and Valuations

At the CMP of RS 340, the stock is trading at 7.4x its FY12E EPS and 3.1x FY12E EV/
EBITDA. We feel considering the current situation the stock is almost fairly valued. We
value the stock 3.5xFY12EV/ EBITDA to arrive at a target price of Rs 354/ share. We
assign HOLD rating on the stock.
Financials
(Rs mn)
YE-
Net
EBITDA
EPS
EPS
RoE
EV/
Mar
Sales
(Core)
(%)
APAT
(Rs) % chg
(%)
P/E
EBITDA
P/BV
FY09
49,591
25,388
51.2
19,881
25.3
-36
51.9
13.5
9.0
5.5
FY10
58,583
31,448
53.7
26,291
31.6
25.3
41.6
10.8
7.1
3.5
FY11E
86,664
47,944
55.3
43,035
48.6
53.5
39.6
7.0
4.0
2.1
FY12E
93,959
52,786
56.2
39,276
44.3
-8.7
25.1
7.7
3.1
1.7
Source: Company, Emkay Research
10
Result Update
Sesa Goa
Sesa Goa
Result Update
Key Financials Quarterly (Consolidated)

(Rs mn)
Q3FY10
Q4FY10
Q1FY11
Q2FY11
Q3FY11
YoY (%)
QoQ (%)
YTD11
YTD10
YoY (%)
Revenue
18,892
24,189
24,131
9,183
22,501
19.1
145.0
55,815
34,394
62.3
Expenditure
(8,531)
(9,159)
(9,535)
(5,786)
(10,171)
19.2
75.8
(25,491)
(17,976)
41.8
45.7
52.3
17.3
398.3
(4,233)
(3,480)
7.6
10.1
(3.8)
6.5
(1,406)
(1,244)
2.5
3.6
(19,853)
(13,252)
35.6
38.5
as % of sales
Consumption of RM
as % of sales
45.2
37.9
39.5
63.0
45.2
(2,342)
(1,863)
(934)
(551)
(2,748)
21.6
12.4
7.7
3.9
6.0
12.2
(515)
(447)
(444)
(466)
(496)
2.7
1.8
1.8
5.1
2.2
(5,674)
(6,849)
(8,156)
(4,769)
(6,928)
30.0
28.3
33.8
51.9
30.8
10,360
15,030
14,596
3,398
12,329
19.0
262.9
30,324
16,418
84.7
(225)
(166)
(191)
(194)
(208)
(7.5)
6.9
(593)
(579)
2.5
10,136
14,864
14,405
3,204
12,122
19.6
278.4
29,730
15,840
87.7
Other Income
1,325
1,291
1,609
1,004
1,268
(4.3)
26.2
3,881
2,969
30.7
Interest
(251)
(227)
(137)
(140)
(134)
(46.6)
(4.4)
(411)
(291)
41.5
Employee Cost
as % of sales
Other expenditure
as % of sales
EBITDA
Depreciation
EBIT
22.1
45.3
13.0
49.8
PBT
11,210
15,928
15,877
4,068
13,255
18.2
225.8
33,200
18,518
79.3
Total Tax
(2,906)
(3,777)
(2,832)
(189)
(2,573)
(11.5)
1,261.1
(5,593)
(4,279)
30.7
8,304
12,151
13,045
3,879
10,683
28.6
175.4
27,607
14,239
93.9
Adjusted PAT
Adj.PAT after MI
(29)
(22)
(27)
(30)
(30)
4.2
1.4
(87)
(77)
13.0
8,275
12,129
13,018
3,849
10,653
28.7
176.7
27,520
14,163
94.3
Reported PAT
8,275
12,129
13,018
3,849
10,653
28.7
176.7
27,520
14,163
94.3
Reported EPS
9.9
14.5
15.7
4.7
12.1
21.6
158.2
32.4
17.2
88.9
(bps)
(bps)
EBIDTA
54.8
62.1
60.5
37.0
54.8
(5)
1,779
54.3
47.7
659
EBIT
53.7
61.4
59.7
34.9
53.9
22
1,899
53.3
46.1
721
EBT
59.3
65.8
65.8
44.3
58.9
(43)
1,461
59.5
53.8
564
PAT
44.0
50.2
54.1
42.2
47.5
352
524
49.5
41.4
806
Effective Tax rate
25.9
23.7
17.8
4.6
19.4
(652)
1,476
16.8
23.1
(626)
Margins (%)
Emkay Research
25 January 2011
(bps)
11
Sesa Goa
Result Update
Volume growth remains uncertain for FY12; tax rate to dent PAT
Though, the management is confident on volume growth in FY13, however, volume growth
in FY12 remains uncertain. The company however, expects lifting of ban on exports from
Karnataka in February itself. About 2.3 mn tonnes of iron ore inventory pile up is there in
Karnataka which can immediately be ramped up and that may lead to decent jump in
volume in Q4FY11 and Q1FY12. In Goa too the company is carrying an inventory of about
3 mn tonne. Contribution from Orissa also would be available in Q4FY11. However, for the
entire FY12, there would be a short fall of ~2 mn tonne due to cancellation of third party
mining in Orissa. We havent taken any significant volume growth for FY12 and would like
to wait for more clarity as of now.
As the benefit of EOU would be over by March 2011, full tax rate would be applicable to the
company from the FY12. This would surely make dent in the PAT on a comparative basis.
Earning estimates; Hold

Our FY11E and FY12E EPS estimate remain at Rs 48.6 and Rs 44.3 respectively. We
believe the sales volume growth to remain muted in FY12 at 21.2 mn tonne however,
positive surprise would come from higher contribution from Karnataka and favourable
mining policy in Goa. We are also assuming average blended realization of US$86/ tonne.
On the balance sheet front, Sesa holds healthy cash of Rs 82.3 bn. Any expansion/ M & A
announcement warrants a change in our estimates.
Valuation
At the CMP of RS 340, the stock is trading at 7.4x its FY12E EPS and 3.1x FY12E EV/
EBITDA. We feel considering the current situation the stock is almost fairly valued. We
value the stock 3.5xFY12EV/ EBITDA to arrive at a target price of Rs 354/ share. We
assign HOLD rating on the stock.
Emkay Research
25 January 2011
12
Sesa Goa
Result Update
Financials (consolidated)
Income Statement
Balance Sheet
Y/E, Mar (Rs. mn)
FY09
FY10
FY11E
FY12E
Y/E, Mar (Rs. mn)
FY09
FY10
FY11E
49,591
58,583
86,664
93,959
787
831
886
886
29.7
18.1
47.9
8.4
Reserves & surplus
46,370
78,346
137,423
173,615
Expenditure
24,203
27,135
38,720
41,174
Net worth
47,157
79,177
138,310
174,501
Raw Materials
4,942
5,343
7,503
10,877
Minority Interest
333.8
432.9
432.9
432.9
Net Sales
Growth (%)
Employee Cost
999
1,691
2,177
2,537
Secured Loans
Other Exp
18262
20101
29040
27759
Unsecured Loans
EBITDA
25,388
31,448
47,944
52,786
10.2
23.9
52.5
10.1
Loan Funds
Net deferred tax
liability
Total Liabilities
Growth (%)
EBITDA margin (%)
51.2
53.7
55.3
56.2
Depreciation
516.7
745.0
840.8
1155.3
EBIT
24,871
30,703
47,103
51,630
50.2
52.4
54.4
54.9
2240.3
9.9
4259.7
517.2
5468.9
460.3
7450.4
460.3
EBIT margin (%)

Other Income
Interest expenses
PBT
FY12E
19
444
19,162
9,206
9,206
19
19,606
9,206
9,206
664.3
750.2
664
664
48,175
99,966
148,613
184,804
Gross Block
8,863
27,510
33,010
38,510
Less: Depreciation
3,422
5,741
6,582
7,737
Net block
5,441
21,770
26,429
30,774
CWIP
489.3
787.4
2537.4
3837.4
Investment
31,252
45,649
65,649
75,649
84,746
27,102
34,446
52,112
58,620
Current Assets
16,833
44,160
64,951
Tax
7153
8055.50
8990
19345
Inventories
2,642
5,009
8,310
9,010
26.4
23.4
17.3
33.0
Sundry debtors
2,982
3,381
10,685
11,584
19,949
26,390
43,122
39,276
177
23,918
44,531
62,607
-67.6
-99.1
-86.7
11,032
11,851
1,425
1,545
Adjusted PAT
(Profit)/loss from
JV's/Ass/MI
Cash & bank balance

Loans & advances
19,881
26,291
43,035
39,276
Growth (%)
28.4
32.2
63.7
-8.7
Net Margin (%)
40.1
14.1
14.3
15.1
19,881
26,291
43,035
39,276
28.5
32.2
63.7
-8.7
FY09
FY10
FY11E
FY12E
Y/E, Mar
27,102
34,446
52,069
58,620
Profitability (%)
517
745
841
1,155
10
517
460
460
-2,218
-4,143
3,145
1,791
5,896
Tax paid
-7,210
-7,644
Operating Cashflow
21,345
Capital expenditure
-1,442
Free Cash Flow
E/O items
Reported PAT
Growth (%)

Current lia & Prov
5,840
12,400
11,872
10,297
Current liabilities
3,376
8,286
5,936
5,148
Provisions
2,464
4,114
5,936
5,148
Net current assets
10,992
31,760
53,079
74,449
Total Assets
48,175
99,966
147,694
184,708
FY09
FY10
FY11E
FY12E
EBITDA Margin
51.2
53.7
55.3
56.2
Net Margin
40.1
44.9
49.7
41.8
ROCE
69.0
47.2
42.3
35.4
-1,895
ROE
51.9
41.6
39.6
25.1
-8,990
-19,345
RoIC
193.7
133.9
143.8
131.4
25,713
50,276
38,996
Per Share Data (Rs)
-18,945
-7,250
-6,800
EPS
25.3
31.6
48.6
44.3
Cash Flow
Key Ratios
Y/E, Mar (Rs. mn)

Depreciation
Interest Provided
Chg in working cap
19,903
6,768
43,026
32,196
CEPS
25.9
32.5
49.5
45.6
Other income
2,240
4,260
5,469
7,450
BVPS
59.9
95.3
156.1
196.9
Investments
-9,647
-13,643
-20,000
-10,000
DPS
2.3
3.2
3.0
3.0
Investing Cashflow
-9,998
-30,504
-35,767
-18,262
Valuations (x)
5,372
55
PER
13.5
10.8
7.0
7.7
10,000
230
-10,399
P/CEPS
13.1
10.5
6.9
7.5
P/BV
5.5
3.5
2.1
1.7
EV / Sales
4.6
3.8
2.2
1.7
EV / EBITDA
9.0
7.1
4.0
3.1
830.4
815.5
696.3
594.2

Interest Paid
Others
Financing Cashflow
-10
-517
-460
-460
-1,380
-2,020
-2,659
-2,659
19,162
-11,380
26,928
6,104
-2,659
EV/ tonne
Gearing Ratio (x)
Net chg in cash
-34
22,138
20,613
18,076
Net Debt/ Equity
0.0
-0.1
-0.3
-0.3
210
1,780
23,918
44,531
Net Debt/EBIDTA
0.0
0.6
0.2
0.2
177
23,918
44,531
62,607
Emkay Research
25 January 2011
13
Festive cheers but no upgrades

Q3FY11 PAT at Rs2.4bn (v/s our est. Rs1.8bn) and EBIDTA at
January 25, 2011
Reco
Previous Reco
Sell
Sell
CMP
Target Price
Rs71
Rs60
8.7/ -
NA
18,970
Sensex
5,687
Nifty
Price Performance
Strong revenue growth of 8.1% qoq to Rs39.6 bn v/s our
estimate of Rs38.1bn
Robust 10.2% rise in traffic on network. ARPU improves to
Rs168 v/s Rs 167 in Q2FY11. MOUs rise to 401 v/s 394 in

Q2FY11
Valuations expensive at 9.7x & 8.2x EV/EBIDTA for FY11E &
FY12E respectively. Prefer Bharti Airtel available at 6.9x

FY12E EV/EBIDTA. Retain SELL rating with target Rs60
(%)
1M
3M
Absolute
(1)
(5)
12
Revenue growth, profits ahead of estimates
(3)
(2)
On account of festive season, Idea registered robust subscriber addition of 7.8mn and
10.2% qoq rise in traffic on network. Con. revenue grew by 8.1% qoq, the growth was
led by stabilization in KPIs. ARPU stood at Rs 168 v/s 167 in Q2FY11, ARPM flat at
Rs0.42 and MoU at 401. Despite of healthy revenue growth EBIDTA margins remained
flat at 24% qoq due to rise in SG&A cost and other exp. PAT at Rs2.4bn was higher
than estimate of Rs 1.8bn and Rs2.0bn, respectively, aided by one-off item of Rs110mn
in interest cost and one time other income in Indus also boosted the share of profit from
Indus to Rs222mn from Rs168mn in Q2FY11.
Rel. to Nifty
6M 12M
Rs9.5bn (v/s our est. 9.1bn), festive season drives volume

growth but higher opex keeps the EBITDA margin flat qoq
Source: Bloomberg

80
Rs
30
72
20
64
10
56
48
-10
40
Oct-09
Festivities support stable KPIs
-20
Dec-09
Feb-10
Apr-10
Idea Cellular (LHS)
May-10
Jul-10
Strong subscriber growth of 10.2% and improvement in MoU resulted in 10.1% qoq rise
in traffic on network to 93.5bn minutes v/s 84.8bn minutes. ARPU at Rs168 improved
qoq v/s 8.2% qoq decline in Q2FY11. Stable tariffs restricted decline in ARPM that
stood at Rs 0.42.
Sep-10
Rel to Nifty (RHS)
Source: Bloomberg
Stock Details
Sector
Telecom
Bloomberg
IDEA@IN
33016
Face Value(Rs)
10
3302
52 Week H/L
80/49
229/5,020
4451511
6.8
Absolute EBIDTA grows by 8% QoQ but margins remain flat

EBITDA grew by 8% qoq to Rs 9.5bn v/s our estimate of Rs 9.1bn. Sequentially,
revenue grew by 7% and 17% from existing and new circles, respectively. However,
EBITDA margin in existing circles declined by 30bps and absolute losses from new
circle remain flat qoq. This was due to 33% and 21% qoq rise in SG&A and other
expenses, owing to higher advertisement cost and one time expense of Rs75mn in
other expenditure. SG&A is likely to remain high due to impending launch of 3G
services.
Capex guidance reduced to Rs30bn for FY11E

D10
S10
J10
Promoters
47.0
47.0
47.0
FII/NRI
42.9
40.5
40.1
Institutions
7.0
7.8
7.7
Private Corp
0.5
2.0
1.9
Public
2.7
2.8
3.3
Source: Capitaline
Ideas has reduced its capex guidance from Rs 40bn to Rs 30bn for FY11E. The lowered
guidance is on account of some spill over to coming quarter and savings against earlier
estimates. Net-debt during Q3FY11 remained flat qoq at Rs93bn, we expect it to
increase to Rs124bn for FY11E, which implies net-debt/ EBIDTA of 3.4x for FY11E.
Valuations 7.8x FY12E EV/EBIDTA expensive v/s Bharti Retain SELL

On account of lower tax rate we have revised our FY11E EPS estimates upward by
8.7% to Rs2.6. At CMP of Rs72, Idea trades at 9.7x and 8.2x EV/EBIDTA and 28x and
27x estimated EPS of Rs2.6 and Rs2.7 for FY11E and FY12E respectively. We
maintain SELL rating on the stock with target price of Rs60.
Financial Snapshot
Y/E-
Net
Rs Mn
EBITDA
PAT
EPS
EPS
ROE
EV/
Mar
Sales
(Core)
(%)
(Rs)
(Rs)
%chg
(%)
P/E
EBITDA
P/BV
FY09
101313
28134
27.8
8811
2.7
-32.5
10.5
26.8
10.9
1.8
FY10
123979
33579
27.1
9211
2.8
4.5
7.3
25.6
9.3
2.0
FY11E
154019
37460
24.3
8418
2.6
-8.6
7.1
28.0
9.7
2.0
FY12E
178035
44536
25.0
8746
2.7
3.9
7.2
27.0
8.2
1.9
14
Result Update
Idea Cellular
Idea Cellular
Result Update
Quarterly financials
Q310
Q410
Q111
Q211
Q311
QoQ %
YoY %
YTD '10
YTD '11
29,261.4
31,234.5
33,116.0
36,535.6
36,355.9
2,690.3
3,638.1
4,151.3
4,403.3
4,765.3
(2,212.6)
(3,377.9)
(3,789.3)
(4,401.9)
(4,529.3)
29,739.1
31,494.7
33,478.0
36,537.0
36,591.9
74.3
74.5
82.9
86.2
97.5
YoY %
-0.5%
24.2%
59,358.2
72,891.5
22.8%
8.2%
77.1%
4,846.0
9,168.6
89.2%
(4,706.1)
(8,931.2)
0.2%
23.0%
59,498.1
73,128.9
147.4
183.7
Revenues
Mobile
NLD
(inter segment)
Net sales
Cost of trading goods
% of sales
Personnel exp
% of sales
Network optng exp
% of sales
License & WPC chgs
% of sales
Roaming & access chg
% of sales
Subs acq & advt exp
% of sales
Other exp
% of sales
Total operating exp
0.2
0.2
0.2
0.2
0.3
1,662.6
1,784.3
1,736.9
1,714.7
2,155.1
5.6
5.7
5.2
4.7
5.9
7,613.8
7,936.6
8,563.5
10,158.8
10,091.0
0.2
0.3
25.7%
29.6%
3,108.5
3,869.8
5.2
5.3
-0.7%
32.5%
15,119.6
20,249.8
25.4
27.7
-1.5%
25.8%
6,688.2
8,419.7
11.2
11.5
8,404.5
11,586.0
14.1
15.8
6,899.4
8,238.7
11.6
11.3
2,436.0
2,909.1
4.1
4.0
28.4%
42,939.3
55,600.5
25.6
25.2
25.6
27.8
27.6
3,319.6
3,452.3
3,577.6
4,242.2
4,177.5
11.2
11.0
10.7
11.6
11.4
4,184.0
4,532.8
5,064.0
5,761.2
5,824.8
14.1
14.4
15.1
15.8
15.9
3,567.4
4,241.1
4,677.0
4,224.0
4,014.7
12.0
13.5
14.0
11.6
11.0
1,222.0
1,331.7
1,319.5
1,466.1
1,443.0
4.1
4.2
3.9
4.0
3.9
21,712.4
23,423.2
25,092.2
27,724.9
27,875.6
0.5%
1.1%
-5.0%
-1.6%
39.2%
12.5%
18.1%
22.9%
24.5%
33.9%
25.9%
37.9%
19.4%
19.4%
29.5%
EBIDTA
8,026.7
8,071.5
8,385.8
8,812.1
8,716.3
-1.1%
8.6%
16,558.8
17,528.4
5.9%
Depreciation
4,796.5
5,130.5
5,666.7
5,655.8
5,820.1
2.9%
21.3%
9,351.9
11,475.9
22.7%
EBIT
3,230.2
2,941.0
2,719.1
3,156.3
2,896.2
-8.2%
-10.3%
7,206.9
6,052.5
-16.0%
Interest & fin chg
1,057.2
937.9
1,140.9
1,141.5
1,027.9
-10.0%
-2.8%
1,926.4
2,169.4
12.6%
PBT (core)
2,173.0
2,003.1
1,578.2
2,014.8
1,868.3
-7.3%
-14.0%
5,280.5
3,883.1
-26.5%
373.6
136.5
519.4
0.0
0.0
384.3
0.0
2,546.6
2,139.6
2,097.6
2,014.8
1,868.3
5,664.8
3,883.1
Other income
PBT
Tax provision
-7.3%
-26.6%
-31.5%
357.1
371.9
281.3
72.5
142.9
97.1%
-60.0%
561.0
215.4
-61.6%
2,189.5
1,767.7
1,816.3
1,942.3
1,725.4
-11.2%
-21.2%
5,103.8
3,667.7
-28.1%
Q310
Q410
Q111
Q211
Q311
bps
bps
YTD '10
YTD '11
bps
EBIDTA %
27.0
25.6
25.0
24.1
23.8
-29.8
-317.0
27.8
24.0
-386.2
EBIT %
10.9
9.3
8.1
8.6
7.9
-72.4
-294.7
12.1
8.3
-383.6
PAT
Margin analysis
PAT %
7.4
5.6
5.4
5.3
4.7
-60.1
-264.7
8.6
5.0
-356.3
ETR %
14.0
17.4
13.4
3.6
7.6
405.1
-637.4
9.9
5.5
-435.6
KPIs
KPIs
Q309
Q409
Q110
Q210
Q310
Q410
Q111
Q211
Q311
Subscribers ('000)
38,012
43,022
47,088
51,454
57,611
63,824
68,886
74,213
81,778
QoQ %
11.9%
266
13.2%
255
9.5%
232
9.3%
209
12.0%
200
10.8%
185
7.9%
182
7.7%
167
10.2%
168
(% QoQ)
1.9
-4.1
-9.0
-9.9
-4.3
-7.5
-1.6
-8.2
0.6
MOU (mins)
416
402
399
375
389
398
415
394
401
ARPU (Rs)
(% QoQ)
-1.2
-3.4
-0.7
-6.0
3.7
2.3
4.3
-5.1
1.8
RPM (Rs)
0.64
0.63
0.58
0.56
0.51
0.46
0.44
0.42
0.42
(% QoQ)
Total traffic (mn)
(% QoQ)
Emkay Research
3.1
-0.8
-8.3
-4.1
-7.8
-9.6
-5.7
-3.3
0.0
40,254
44,224
48,729
50,339
57,841
68,275
82,274
84,828
93,503
10.8
9.9
10.2
3.3
14.9
18.0
20.5
3.1
10.2
25 January 2011
15
Idea Cellular
Result Update
Financials
Profit & Loss
Balance Sheet
Y/E, Mar (Rs m)

Net Sales
Growth (%)
Employee cost
FY09
FY10
FY11E
FY12E
FY09
FY10
FY11E
FY12E
101,313
123,979
154,019
178,035
Y/E, Mar (Rs m)

31,001
32,998
33,002
33,002
50.8
22.4
24.2
15.6
Reserves & surplus
101,648
85,865
84,283
93,029
5,245
6,451
8,075
9,151
Net worth
132,649
118,863
117,285
126,031
Marketing expenses
12,991
16,123
19,331
23,565
Loan Funds
89,122
78,593
128,593
128,593
Raoming and access chg
18,442
18,001
24,452
28,486
1,130
2,142
2,142
2,142
Network operating exp
21,078
31,270
40,593
44,613
Total Liabilities
222,901
199,598
248,020
256,766
License fee
11,239
13,468
17,681
20,385
Gross Block
205,232
270,583
367,047
400,547
59,971
88,194
111,991
140,157
145,261
182,389
255,056
260,391
Adimistrative expenses
4,183
5,087
6,428
7,299
Total expenditure
73,179
90,400
116,559
133,499
EBITDA
28,134
33,579
37,460
44,536
24.9
19.4
11.6
18.9
14,032
20,161
23,798
28,165
Growth (%)
Deprieciation
Other non-operating exp.
EBIT
14,101
13,419
13,662
16,371
Less: Depreciation
Net block
21,409
5,465
4,000
4,000
Investment
42,909
11,365
11,365
11,365
Current Assets
53,684
41,059
39,609
42,863
Inventories
Sundry debtors
521
536
778
741
3,618
4,656
4,206
4,574
EBIT margin (%)
13.9
10.8
8.9
9.2
Cash & bank balance
30,863
7,329
4,502
8,022
Other Income
231
1,011
80
Loans & advances
16,821
25,559
27,089
26,321
Interest expenses
4,945
4,005
4,654
6,944
1,861
2,979
3,034
3,205
PBT
9,387
10,425
9,008
9,506
Current lia & Prov
40,361
40,680
62,009
61,853
576
1,214
590
761
Current liabilities
38,637
38,447
58,606
58,458
Provisions
Tax
PAT
6.1
11.3
6.6
8.0
8,811
9,211
8,418
8,746
Net current assets

Total Assets
Cash Flow Statement
1,724
2,233
3,403
3,395
13,323
379
-22,401
-18,990
222,901
199,598
248,020
256,766
FY09
FY10
FY11E
FY12E
Ratios
Y/E, Mar (Rs m)
FY09
FY10
FY11E
FY12E
PBT
9,156
9,414
9,008
9,426
Profitability (%)
14,032
20,161
23,798
28,165
EBITDA Margin
27.8
27.1
24.3
25.0
4,945
4,005
4,654
6,944
Net Margin
13.1
9.6
8.3
8.5
84,049
-24,244
-10,000
8.8
6.8
6.1
6.5
1,042
-10,590
19,953
109
ROE
10.5
7.3
7.1
7.2
-576
-1,214
-590
-761
RoIC
12.6
8.2
6.8
7.1
2.7
2.8
2.6
2.7
Depreciation
Interest
Chg in working cap
Tax paid
Y/E, Mar
ROCE
Operating Cashflow
112,649
-2,469
46,823
43,884
Capital expenditure
-73,539
-41,345
-95,000
-33,500
39,110
-43,814
-48,177
10,384
CEPS
6.9
8.9
9.8
11.2
231
1,011
80
BVPS
40.2
36.0
35.5
38.2
-37,288
31,544
-110,596
-8,790
-95,000
-33,420
PER
26.8
25.6
28.0
27.0
4,811
2,259
P/CEPS
10.3
8.0
7.3
6.4
23,968
-10,529
50,000
P/BV
1.8
2.0
2.0
1.9
Interest Paid
-4,945
-4,005
-4,654
-6,944
EV / Sales
3.0
2.5
2.4
2.0
10.9
9.3
9.7
8.2
Financing Cashflow
23,834
-12,275
45,350
-6,944
Net chg in cash
25,888
-23,534
-2,827
3,520
Net Debt/ Equity
0.4
0.6
1.1
1.0
Net Debt/EBIDTA
3.2
2.3
3.4
2.9
Free Cash Flow

Other income
Investments
Investing Cashflow
Emkay Research
25 January 2011
Per Share Data (Rs)

EPS (adjusted)
Valuations (x)
EV / EBITDA
Gearing Ratio (x)
16
Idea Cellular
Result Update
Recommendation History: Idea Cellular IDEA IN

Date
Reports
Reco
CMP
Target
26/10/2010
Idea Q2FY11 Result Update
Sell
72
60
26/07/2010
Idea Q1FY11 Result Update
Sell
69
60
24/04/2009
Idea Cellular Q4FY09 Update
Sell
57
53
23/01/2009
Idea Cellular Q3FY09 Update
UR
42
UR
Emkay Research
25 January 2011
Date
Reports
Reco
CMP
Target
19/01/2011
HT Media Q3FY11 Result Update
Buy
145
175
18/01/2011
Tulip Telecom Event Update
Buy
168
240
19/11/2010
Reliance Communication Q2FY11 Result Update
Reduce
154
135
16/11/2010
Deccan Chronicle Q2FY11 Result Update
Buy
129
175
17
Numbers in Line - Maintain REDUCE

January 25, 2011
Reco
Previous Reco
Reduce
Reduce
CMP
Target Price
Rs1,019
Rs1,040
NA
NA
5,687
Nifty
18,969
Sensex
Price Performance
(%)
1M
Absolute
(3)
(9)
23
11
(3)
16
(2)
Rel. to Nifty
3M
6M 12M
Source: Bloomberg

1175
Rs
30
1100
20
1025
10
950
875
-10
PAT at Rs3.19 bn (175.5% qoq) in line. Revenues up15.6%
qoq- volumes up 5.7% qoq, realisations jump up 9.3% qoq
EBITDA grew 73.6%qoq to Rs7.07 bn- in line-margins expand
640 bps qoq to 19.1%. EBITDA/t at Rs736 improves 64.2% qoq
Cement offtake improves in January prices hiked Rs10-
15/bag. Sustainability of cement price over medium term

remains uncertain, as demand yet to see significant pick up
Stock trades at PER of 15.3X & EV/ton of USD125 on FY12E-
Do not see valuation comfort, considering uncertainty on

sustainability of cement prices & sharp jump in coal prices
Revenues grow 15.6% qoq led by 9.3% qoq jump in cement realizations
UTCL revenues (Rs37.15bn) grew 15.6% qoq, driven by 9.3% qoq improvement in
blended cement realization at Rs3862/t. Cement volumes at 9.6 mnt grew at a muted
pace of 1.2%yoy and 5.7%qoq due to prolonged monsoons and slower pick up in
infrastructure projects. On a like to like basis , revenues grew by 0.9% yoy.
Like to Like Comparison
Rs Mn
Q3FY11
Q3FY10
YoY(%)
37150
36820
0.9
PBDIT
7680
10190
-24.6
PAT
3190
4990
-36.1
Net Sales
800
Jan-10
-20
Mar-10
May-10
Jul-10
Ultratech Cement (LHS)
Sep-10
Nov-10
Rel to Nifty (RHS)
Source: Bloomberg
Stock Details
EBITDA up 73.6%qoq EBITDA/t at Rs736 up 64.2%qoq
Sector
Cement
Bloomberg
UTCEM@IN
2740
Face Value(Rs)
10
274
52 Week H/L
1,175/820
279/6,117
323299
7.9
Driven by sharp increase in cement realisations EBITDA for the quarter at Rs7.07bn
grew 73.6% qoq (in line with estimates of Rs6.9bn) with EBITDA margins expanding by
640 bps qoq to 19.1%. On the cost front the only significant increase was visible in
freight cost, which increased 5.9%qoq to Rs757/t on account of increase in rail freight.
Total cost stood at Rs3126/t , a marginal increase of 1.4% sequentially. With improved
realizations and marginal increase in cost, Ultratech reported EBITDA/t of Rs736 (our
estimate of Rs714/t) up 64.2%qoq. Net profit at Rs3.19bn (our estimate of Rs3.24bn)
grew 175.5% qoq . However on a like to like basis , net profit declined by 36.1% yoy.
P&F cost flat QoQ recent surge in coal prices to be visible in Q4FY11
D10
S10
J09
Promoters
63.4
64.1
54.8
FII/NRI
15.4
12.0
11.6
Institutions
8.5
9.8
11.2
Private Corp
5.0
5.6
7.5
Public
7.8
8.5
14.9
Source: Capitaline
UTCLs P&F cost for the quarter at Rs931/t remained flat qoq even though average
international coal prices jumped 18% qoq (Average USD 104/t) and are currently ruling
at USD130/t. We would like to highlight that UTCL has already entered into contract to
import 0.2 mtpa of international coal at USD 124/t for delivery in Q4FY11. Since UTCL
imports 40 % of its coal requirement from international markets, we expect the P&F cost
to increase over next 2-3 quarters.
Financial Snapshot
Rs Mn
YE-
Net
EBITDA
EPS
EPS
RoE
Mar
Sales
(Core)
(%)
(Rs)
% chg
(%)
FY09
63,831
17,041
26.7
9,770
78.5
-3.0
FY10
70,497
19,711
28.0
10,932
87.8
FY11E
151,412
31,064
20.5
14,979
FY12E
171,121
37,064
21.7
18,146
APAT
EV/
EV/T
P/E
EBITDA
(USD)
31.0
13.0
8.0
134.5
11.9
26.6
11.6
6.4
118.0
54.8
-37.6
19.8
18.6
9.4
130.1
66.4
21.1
15.9
15.3
8.0
125.5
18
Result Update
Ultratech Cement Ltd.
Ultratech Cement
Result Update
Result Table
Rs mn
Q3FY10
Q4FY10
Q1FY11
Q2FY11
Q3FY11
YoY (%)
QoQ (%)
YTD11
YTD10
YoY (%)
Revenue
16,518
19,094
17,898
32,147
37,152
124.9
15.6
87,198
51,405
69.6
Expenditure
12,682
15,067
13,841
28,069
30,075
137.1
7.1
71,985
35,699
101.6
83%
69%
91.6
10.1
11,499
6,016
13%
12%
201.1
-1.8
4,481
1,858
5%
4%
21,571
10,656
25%
21%
17376
8841
20%
17%
8329
as % of sales
Consumption of RM
as % of sales
77%
79%
77%
87%
81%
2,539
3,322
2,219
4,416
4,863
15%
17%
12%
14%
13%
Employee Expenses
623
660
695
1,911
1,876
as % of sales
4%
3%
4%
6%
5%
3,564
3,651
4,178
8,434
8,959
as % of sales
Power, Oil & Fuel
22%
19%
23%
26%
24%
Freight & Handling
2930
3485
3586
6505
7285
as % of sales
18%
18%
20%
20%
20%
Other Expenses
3027
3949
3164
6803
7091
as % of sales
EBITDA
Depreciation
EBIT
Other Income
Interest
PBT
Total Tax
151.4
148.6
6.2
12.0
134.3
4.2
17058
20%
16%
73.6
15,213
15,706
18%
21%
18%
21%
19%
3,836
4,027
4,057
4,078
7,078
84.5
91.1
141.2
102.4
96.5
104.8
-3.1
985
993
1016
2184
2191
122.4
0.3
5390
2888
86.7
2,851
3,033
3,042
1,894
4,887
71.4
158.0
9,822
12,818
-23.4
300
258
483
684
606
102.4
-11.4
1774
947
87.3
262
285
279
845
818
212.0
-3.2
1942
891
118.0
2,888
3,007
3,246
1,733
4,675
61.9
169.8
9,654
12,875
-25.0
928
721
819
575
1486
60.1
158.3
2880
4228
-31.9
1960
2286
2427
1158
3190
62.7
175.5
6775
8647
-21.7
1960
2286
2427
1158
3190
62.7
175.5
6775
8647
-21.7
PAT after MI
1960
2286
2427
1158
3190
62.7
175.5
6775
8647
-21.7
Reported EPS
15.7
18.4
19.7
9.4
25.8
64.0
175.5
54.9
69.5
-21.0
bps
bps
Adjusted PAT
Reported PAT
Margins (%)
bps
EBIDTA
23.2
21.1
22.7
12.7
19.1
-417
637
54.4
90.5
-3614
EBIT
17.3
15.9
17.0
5.9
13.2
-411
726
11.3
24.9
-1367
EBT
17.5
15.7
18.1
5.4
12.6
-490
719
36.1
73.8
-3771
PAT
11.9
12.0
13.6
3.6
8.6
-328
498
25.7
49.6
-2385
Effective Tax rate
32.1
24.0
25.2
33.2
31.8
-36
-141
90.2
98.2
-799
Q2FY11
Q3FY11
YoY (%)
QoQ (%)
YTD11
YTD10
YoY (%)
*YoY figures are not comparable since Q3FY11 are post merger with Samruddhi cement
Per tonne analysis

Rs mn
Q3FY10
Q4FY10
Q1FY11
Cement Volumes (mn t)
5.0
5.7
5.1
9.1
9.6
90.5
5.7
23.8
14.5
64.2
Raw Material Consumed
518
454
503
519
524
1.0
0.8
518
464
11.6
Stock Adjustment
-15
130
-70
-34
-18
17.0
-46.8
-35
-49
-28.7
22
51
64
25
29
33.0
15.4
35
24
47.4
Employee Expenses
123
116
136
210
195
58.0
-7.1
188
128
46.9
Power, Oil & Fuel
706
642
816
927
931
32.0
0.5
905
734
23.3
Freight
580
613
700
715
757
30.5
5.9
729
609
19.7
Other Expenses
578
643
554
722
708
22.6
-2.0
680
550
23.8
Total Cost per tonne
2512
2648
2703
3085
3126
24.5
1.4
3020
2459
22.8
Realisation per tonne
3272
3356
3496
3533
3862
18.0
9.3
3658
3541
3.3
760
708
792
448
736
-3.2
64.2
638
1082
-41.0
Purchase of Finished Goods
EBIDTA Per tonne
Emkay Research
25 January 2011
19
Ultratech Cement
Result Update
Aggressive Capex plan to add 9.2 mtpa over next 3 year

UTCL has an ongoing capex plan of Rs100 bn which will be spent over the next 3 years.
These include setting up of additional clinkerisation plants at Chhattisgarh and Karnataka
,along with augmenting grinding capacity, installation of waste heat recovery systems and
setting up of bulk/packaging terminals across locations
Clinkerization plants at Chhattisgarh and Karnataka, will have kiln capacity of 10K tons/day
at each location, entailing new cement capacity additions of 9.2 mtpa at a cost of Rs56 bn
or ~USD135/t. The Chattisgarh plant will have 4 grinding units with aggregate capacity of
4.8 mtpa and a CPP of 45 MW. Whereas Karnataka plant will have 1 split grinding unit of
1.2 mtpa in addition to the mother grinding unit of 3.2 mtpa, along with CPP of 45 MW.
Major equipments for these plants have already been ordered and the construction is
expected to commence in Q4FY11 with expected commissioning by Q1FY14. Consequent
to these additions, Ultratech total cement capacity would stand at ~ 61 mtpa.
Capex Plan
Rs Mn
Net Capex
To be spent
Cash Outflow
FY11
FY12 &
onwards
20690
80870
Cement Subsidiaries
- Capacity expansion 4.8 Mn TPA at Raipur,
Chhattisgarh and 4.4 Mn. TPA at Malkhed, Karnataka
- Residual capex for earlier projects
- Material Evacuation and Logistic Infrastructure
56000
6290
11810
- Thermal Power Plant (25 MW) & Waste Heat Recovery

System (38 MW)
- Bricks (2 Units) & RMC Plants
- Modernisation, Upgradation and others
Cement Business Capex
4600
1350
21510
101560
Source: Company. Emkay Research
Cement prices hiked Rs10-15/bag in January

Helped by improvement in cement offtake and season logistical bottleneck (Wagon
shortage due to diversion of wagons to food grains & other crop) cement prices have
witnessed a hike of Rs10-15/bag across all regions expect Tamilnadu. We do expect
another round of price hike in short term as the industry enters the busy construction
season (January May).
However valuations still not in comfort zone Maintain REDUCE

Though cement prices have been hiked across all regions, we continue to believe that
sustainability of cement prices remains uncertain in medium/long term as the cement
demand growth FY11YTD ~5% has now emerged as bigger concern than the overcapacity
in the system. Also as highlighted earlier international coal prices which have jumped to
USD130/t are expected to increase cost pressures and remains key concern for UTCL.
With the stock trading at PER of 15.3X, 8X EV/EBITDA and EV/ton of USD125 on FY12
numbers, we do not see valuation comfort, considering uncertainty on earnings. Maintain
REDUCE.
Emkay Research
25 January 2011
20
Ultratech Cement
Result Update
Financials
Income Statement
Balance Sheet
Y/E, Mar (Rs. m)
FY09
FY10
FY11E
FY12E
63,831
70,497
151,412
171,121
1,245
1,245
2,732
2,732
15.9
10.4
114.8
13.0
Reserves & surplus
34,759
44,822
102,284
119,025
Total Expenditure
46,873
50,827
120,393
134,105
Shareholders Funds
36,021
46,087
105,520
122,261
Raw Materials Cost
6,850
9,606
9,919
11,820
Secured Loans
11,758
8,542
29,895
34,895
Power & Fuel cost
17,270
14,309
16,638
19,478
Unsecured Loans
9,658
7,503
14,578
14,578
Freight
12,211
13,729
15,027
17,221
Loan Funds
21,416
16,045
44,473
49,473
Others
10,543
13,182
13,067
13,859
Net Deferred Taxes
7,229
8,307
17,487
17,487
EBIDTA
17,041
19,711
31,064
37,064
Total Liabilities
64,667
70,439
167,481
189,221
(1.3)
15.7
57.6
19.3
222,442
Net Sales
Growth (%)
Growth (%)
EBIDTA %
Y/E, Mar (Rs. m)
FY09
FY10
FY11E
FY12E
26.7
28.0
20.5
21.7
Gross Block
74,010
80,781
193,140
3,230
3,881
8,884
10,232
Less: Acc Depreciation
27,653
31,365
66,101
76,333
13,811
15,830
22,179
26,832
Net block
46,357
49,417
127,039
146,108
21.6
22.5
14.6
15.7
Capital WIP
6,773
2,594
25,082
33,600
Other income
1,058
1,227
3,070
3,460
Investment
10,348
16,696
29,082
29,082
Interest
1,255
1,175
3,337
3,571
Current Assets
13,720
14,724
27,716
31,886
EBT
13,615
15,882
21,913
26,721
Inventories
6,920
8,217
12,445
14,065
Tax
3,844
4,949
6,933
8,575
Sundry Debtors
1,939
2,158
3,733
4,219
Depreciation
EBIT
EBIT Margin (%)
28.2
31.2
31.6
32.1
Cash and Bank
1,045
837
1,914
3,978
9,770
10,932
14,979
18,146
Loans and Advances
3,816
3,511
9,624
9,624
Growth (%)
(3.0)
11.9
37.0
21.1
Net Margin (%)
15.3
15.5
9.9
10.6
Current Liab & Prov
12,531
12,991
41,438
51,455
Current liabilities
47,351
9,770
10,932
14,979
18,146
Adjusted PAT
E/O items
Reported PAT
PAT after MI
Growth (%)
11,209
11,381
37,334
Provisions
1,322
1,610
4,103
4,103
Net current assets
1,189
1,733
-13,722
-19,569
Miscellaneous Exps
64,667
70,439
167,481
189,221
FY09
FY10
FY11E
FY12E
9,770
10,932
14,979
18,146
(3.0)
11.9
37.0
21.1
FY09
FY10
FY11E
FY12E
13,615
15,882
18,843
23,261
Profitability (%)
3,230
3,881
8,884
10,232
EBITDA Margin
26.7
28.0
20.5
21.7
804
613
3,337
3,571
Net Margin
15.3
15.5
9.9
10.6
ROCE
26.0
25.2
21.2
17.0
Cash Flow
Total Assets
Key Ratios
Y/E, Mar (Rs. m)

Depreciation
Interest Provided
Chg in working cap
-1,153
-893
15,238
7,911
ROE
31.0
26.6
19.8
15.9
Tax paid
-2,097
-3,891
-6,933
-8,575
RoIC
39.0
32.7
27.4
22.9
Operating Cashflow
14,576
15,719
39,369
36,399
Per Share Data (Rs)
Capital expenditure
-8,298
-2,741
-40,530
-37,820
78.5
87.8
54.8
66.4
6,278
12,979
-1,161
-1,421
CEPS
104.4
119.0
87.3
103.9
505
582
3,070
3,460
BVPS
289.3
370.2
386.2
447.4
-8,662
-6,358
5.0
9.7
4.4
4.4
-16,454
-8,517
-37,460
-34,360
Free Cash Flow

Other income
Investments
Investing Cashflow
Interest Paid
3,819
-5,223
3,000
5,000
-1,174
-1,459
-3,337
-728
-728
-1,405
EPS
DPS
Valuations (x)
PER
13.0
11.6
18.6
15.3
P/CEPS
9.8
8.6
11.7
9.8
-3,571
P/BV
3.5
2.8
2.6
2.3
-1,405
EV / Sales
2.1
1.8
1.9
1.7
EV / EBITDA
8.0
6.4
9.4
8.0
Others
Dividend Yield (%)
0.5
0.9
0.4
0.4
1,917
-7,410
-1,742
24
Gearing Ratio (x)
38
-208
167
2,064
0.6
0.3
0.4
0.4
1,007
1,045
1,747
1,914
Net Debt/EBIDTA
1,045
837
1,914
3,978
Financing Cashflow
Net chg in cash
Emkay Research
25 January 2011
Net Debt/ Equity
0.6
0.3
0.4
0.4
-13.4
-5.2
-51.0
-62.0
21
Ultratech Cement
Result Update
Recommendation History: Ultratech Cement UTCEM IN

Date
Reports
Reco
CMP
Target
27/10/2010
Ultratech Cement Q2FY11 Result Update
Reduce
1,100
1,040
29/07/2010
Ultratech Cement Ltd Q1FY11 Result Update
Reduce
856
880
03/05/2010
Reduce
978
960
18/01/2010
Accumulate
1,002
980
Emkay Research
25 January 2011
Date
Reports
Reco
CMP
Target
21/01/2011
Cement Sector Update
21/01/2011
Orient Paper & Industries Q3FY11 Result Update
Buy
50
77
15/12/2010
Grasim Industries Company Update
Accumulate
2,365
2,730
31/12/2010
IRB Infrastructure Developers Event Update
Accumulate
224
304
22
Cost Pressure Circling, Maintain HOLD

January 25, 2011
Reco
Previous Reco
Hold
Hold
CMP
Target Price
Rs 2,503
Rs 2,510
NA
NA
Nifty
5,687
Sensex
18,969
(%)
1M
3M
Absolute
(10)
(1)
46
Rel. to Nifty
(5)
29
6M 12M
Source: Bloomberg
Rs
50
2730
40
2485
30
2240
20
1995
10
0
Mar-10
May-10
Jul-10
Asian Paints (LHS)
Sep-10
Nov-10
APL implemented another price increase of 2.9% w.e.f
December 2010, total price increase in YTD 2011 is 11.4%

and FY12E at Rs106.1/Share) Maintain HOLD rating with
target price of Rs2510/Share
Though, APL Q3FY11 APAT at Rs2.2 bn meets expectation, sharp contraction of gross
margin and Ebidta margin was surprising. We had forecasted 100 bps declines in Ebidta
margins, but 320 bps yoy declines to 16.4% was negative surprise. These happened
despite near 8.6% price increase implemented until August 2011, implying material cost
inflation was significant and remain unattended. Since, revenue growth at 29.6% yoy to
Rs21.0 bn was ahead of expectation; APL achieved our APAT expectations by reporting
APAT of Rs2.2 bn, an 11.0% yoy growth.
Favored by Q2FY11- APL registers 17-19% volume growth at company

level and 27% in standalone operations
Stock Details
Sector
FMCG
Bloomberg
APNT@IN
959
Face Value(Rs)
10
96
52 Week H/L
3,027/1,715
249/5,447
85679
5.1

D10
S10
J10
Promoters
52.3
52.0
50.6
FII/NRI
16.4
16.7
17.2
Institutions
11.4
11.0
12.3
6.3
6.6
5.8
13.7
13.7
14.0
Public
level and 27%yoy in standalone operations
Rel to Nifty (RHS)
Source: Bloomberg
Private Corp
Bounces back with volume growth of 17-19% at company
APL Q3FY11 APAT at Rs2.2 bn meets expectation but Ebidta margins

contraction was higher then expectation
1750
Jan-10
expectation, but Ebidta margin contraction at 320 bps yoy

was higher then expectation
No significant change in earnings FY11E at Rs91.5/Share
Price Performance
2975
Asian Paints (APL) Q3FY11 APAT at Rs2.2 bn meets
Source: Capitaline
Q1FY11 marked robust volume growth of 18-20% yoy, but Q2FY11 saw slippages with
volume growth of 1.5% yoy and Q3FY11 bounces with volume growth of 17-19% yoy.
Growth has been erratic, few quarters influenced by pipeline filling and dealer inventory
in anticipation of price increases. In Q3FY11, domestic volume growth was relatively
strong at 27% yoy; however international operations and JV operations continue to
register lower single-digit volume growth. We retain our annual volume growth
assumptions at 2X GDP or 15-17% range for FY11E and FY12E.
Taken calibrated price increase, but cost pressures also circling

APL has taken another price increase weighted increase of 2.9% w.e.f. 1 st December
2010, benefit should be visible in Q4FY11. The total price increase in YTD 2011 is
11.4% implemented at various time intervals. The corresponding raw material increase
on weighted average basis is 15% - Index of 115 in December 2010 versus 100 in April
2010. Most importantly, recent price increase is to offset the sharp jump in Titanium
Dioxide, which is witnessing supply-demand problem. Management believes that, prices
of Titanium Dioxide are unlikely to cool-off in near term, which could impact future gross
margins absence of price increases.
Financial Snapshot
Rs Mn
YE-
Net
Mar
Sales
(Core)
EBITDA
(%)
EPS
EPS
RoE
(Rs)
% chg
(%)
P/E
EBITDA
P/BV
FY09
54,632
7,001
12.8
4,165
41.5
(2.8)
38.1
62.7
35.3
20.9
FY10
66,809
12,276
18.4
FY11E
77,740
13,946
17.9
8,830
87.1
110.0
55.8
29.8
19.3
14.7
9,226
91.5
5.1
45.6
28.4
17.1
10.7
FY12E
91,892
16,452
17.9
10,656
106.1
16.0
39.7
24.5
14.6
8.2
APAT
EV/
23
Result Update
Asian Paints
Asian Paints
Result Update
Quarterly Results
Q3FY10
Q4FY10
Q1FY11
Q2FY11
Q3FY11
YoY Growth
QoQ Growth
YTD11
YTD10
YoY (%)
Net Sales
16,200.0
18,767.7
18,302.2
18,107.9
20,996.0
29.6
15.9
77,739.6
66,809.4
16.4
Expenditure
13019.1
15659.0
14830.9
14793.1
17546.9
34.8
18.6
63,793.2
54,533.3
17.0
Material Cost
9126.9
10464.0
10487.4
10197.4
12534.6
37.3
22.9
44,756.1
37,579.6
19.1
56.3
55.8
57.3
56.3
59.7
340 bps
340 bps
57.6
56.2
130 bps
989.9
1364.5
1188.8
1086.3
1115.2
12.7
2.7
4,551.3
4,362.8
4.3
6.1
7.3
6.5
6.0
5.3
-80 bps
-70 bps
5.9
6.5
-70 bps
2902.3
3830.5
3154.7
3509.4
3897.1
34.3
11.0
14,485.8
12,472.0
16.1
% of Sales
Employee Expenses
% of Sales
Other Expenses
% of Sales
EBIDTA
Depreciation
EBIT
Other Income
Interest
PBT
Total Tax
17.9
20.4
17.2
19.4
18.6
60 bps
-80 bps
18.6
18.7
0 bps
3180.9
3108.7
3471.3
3314.8
3449.1
8.4
4.1
13,946.4
12,276.1
13.6
196.5
241.2
269.2
284.1
286.4
45.8
0.8
1,233.4
835.6
47.6
3101.7
3039.3
3429.1
3269.2
3390.6
9.3
3.7
12,713.0
11,559.4
10.0
166.9
207.7
184.1
249.0
193.7
16.1
-22.2
794.3
580.2
36.9
79.2
69.4
42.2
45.6
58.5
-26.1
28.3
242.2
284.7
-14.9
3072.1
3005.8
3344.0
3234.1
3297.9
7.4
2.0
13,265.1
11,854.9
11.9
954.8
867.5
1012.8
984.2
974.2
2.0
-1.0
4,038.6
3,731.1
8.2
2117.3
2138.3
2331.2
2249.9
2323.7
9.7
3.3
9,226.4
8,123.8
13.6
132.6
221.3
109.3
102.9
120.4
-9.2
17.0
446.6
482.7
-7.5
1984.7
1917.0
2221.9
2147.0
2203.3
11.0
2.6
8,779.8
7,641.1
14.9
-1.1
-8.8
0.0
0.0
0.0
NA
NA
0.0
715.2
-100.0
Reported PAT
1985.8
1925.8
2221.9
2147.0
2203.3
11.0
2.6
8,779.8
8,356.3
5.1
Reported EPS
20.7
20.1
23.2
22.4
23.0
11.0
2.6
91.5
87.1
5.1
(bps)
(bps)
Adjusted PAT
(Profit)/Loss from
JV's/Ass/MI
APAT after MI
Extra Ordinary Items
Margins (%)
(bps)
EBIDTA
19.6
16.6
19.0
18.3
16.4
-320
-190
17.9
18.4
-40
EBIT
19.1
16.2
18.7
18.1
16.1
-300
-190
16.4
17.3
-90
EBT
19.0
16.0
18.3
17.9
15.7
-330
-220
17.1
17.7
-70
PAT
12.3
10.2
12.1
11.9
10.5
-180
-140
11.3
11.4
-10
Effective Tax rate
31.1
28.9
30.3
30.4
29.5
-150
-90
30.4
31.5
-100
Extends relationship with PPG Industries- willing to participate in entire nondecorative coatings market
APL is extending its 14 year relationship with PPG Industries in India. It is forming new JV
alongside existing JV Asian PPG to participate in all specters of non-decorative coatings
market. Currently, Asian PPG participates in Indian industrial coatings market. This will be
extended to entire non-decorative coatings market which is 25% of Rs150-170 bn paint
market. APL will commence operations of new JV in Q3FY12E. Current relationship
generates revenues of Rs4.6 bn and APAT of Rs160 mn.
Maintain earnings estimates for FY11E and FY12E, Maintain HOLD rating
No significant change in earnings estimates FY11E at Rs91.5/Share and Rs106.1/Share
for FY11E and FY12E. Our forecasts already factors pressure from material prices and
price hikes undertaken assumed reduction of 140 bps in gross margins and 70 bps in
Ebidta margins. So far, Asian Paints has showcased strong volume growth with historic
high margins and withered onslaught of competition, but does not guarantee the
continuation of performance in future- which is key risk to our earnings estimates. APL
trades at rich valuations of 24.5X FY12E leaving little room for upsides. We maintain our
HOLD rating with target price of Rs2510/Share.
Emkay Research
25 January 2011
24
Asian Paints
Result Update
Financials
Income Statement
Balance Sheet
Y/E, Mar (Rs. m)

Net Sales
Growth (%)
Expenses
Growth (%)
Raw Materials
% Of Sales
Employee Cost
% Of Sales
Other Expenditure
% Of Sales
Ebidta
Growth (%)
FY09
FY10
FY11E
FY12E
Y/E, Mar (Rs. m)
54,632
66,809
77,740
91,892
Equity Share Capital
959
959
959
959
24.0
22.3
16.4
18.2
Reserves
11,073
16,141
22,382
29,399
47,631
54,533
63,793
75,439
Networth
12,032
17,100
23,341
30,359
27.2
14.5
17.0
18.3
1,254
637
1,264
1,264
33,706
37,580
44,756
53,230
61.7
56.2
57.6
57.9
3,715
4,363
4,551
5,312
6.8
6.5
5.9
5.8
10,209
12,591
14,486
16,897
18.7
18.8
18.6
18.4
7,001
12,276
13,946
16,452
6.1
75.3
13.6
18.0
Secured Loans
FY09
FY10
FY11E
FY12E
Unsecured Loans
1,833
1,655
1,763
1,763
Loan Funds
3,086
2,292
3,027
3,027
Net Deferred Tax
533
562
533
533
Minority interest
756
945
1685
2160
Capital Employed
16,407
20,899
28,586
36,079
Gross Block
14,614
15,004
20,889
22,389
Less: Depreciation
6,484
6,276
7,875
9,343
Net Block
8,130
8,728
13,014
13,046
1,340
Ebidta%
12.8
18.4
17.9
17.9
Capital Work In Progress
921
4,072
1,340
Other Income
193
1,405
800
800
Goodwill
506
367
506
506
Interest
263
285
242
242
Investments
784
6,241
5,473
5,473
17,987
18,437
26,220
36,447
7,690
9,559
11,408
13,457
744
836
1,233
1,468
PBT
Depreciation
6,138
12,561
13,265
15,536
Tax
1,974
3,731
4,039
4,881
PAT (Before EO Item)
4,165
8,830
9,226
10,656
-3.8
112.0
4.5
7.6
13.2
11.9
Growth (%)
Net Margin%
E/O Item
Reported PAT
Current Assets
Inventories
Debtors
5,719
5,425
7,339
8,529
Cash & Bank
2,104
1,058
4,023
10,463
15.5
Loans & Advances
1,978
1,746
2,771
3,318
11.6
Other Current Assets
497
648
679
679
11,921
16,947
17,967
20,732
6,066
1,490
8,253
15,715
30
4,195
8,839
9,226
10,656
Current Liabilities & Prov

Net Current Assets
Miscellaneous Expenditure
Capital Deployed
CashFlow
16,407
20,899
28,586
36,079
FY09
FY10
FY11E
FY12E
12.8
18.6
17.9
17.9
Key Ratios
Y/E, Mar (Rs. m)
FY09
FY10
FY11E
FY12E
Y/E, Mar
Pre-Tax Profit
6,191
12,572
13,265
15,536
Profitability %
744
836
1,233
1,468
Depreciation
Non Cash
Ebidta Mgn
351
-882
7.6
12.2
11.9
11.6
Chg in Working Cap
-1,431
1,338
-3,799
-1,021
ROCE
42.8
65.1
54.6
48.8
Tax Paid
-1,919
-3,169
-4,039
-4,881
ROE
38.1
55.8
45.6
39.7
3,936
10,695
6,661
11,103
Per Share Data

EPS
Operating Cash Flow

Capex
-2,883
-3,833
-3,290
-1,500
Free Cash Flow
1,053
6,862
3,370
9,603
Investments
1,984
443
768
-41
-675
-1,999
0
PAT Mgn
41.5
87.1
91.5
106.1
BVPS
124.5
177.4
242.4
315.6
DPS
17.5
27.0
28.2
33.0
Valuations (X)
735
PER
62.7
29.8
28.4
24.5
-2,359
-2,709
-3,163
P/BV
20.9
14.7
10.7
8.2
Ev/Sales
4.6
3.8
3.2
2.7
997
4,271
2,164
6,441
Ev/Ebidta
35.3
19.3
17.1
14.6
Opening Cash Position
1,107
2,104
1,058
4,023
Dividend Yield (%)
0.7
1.0
1.1
1.3
Closing Cash Position
2,104
6,375
3,222
10,463
Turnover (X Days)
Equity Capital
Loans
Dividend
Others
Net Change in Cash
Debtor TO Days
34.5
30.4
30.0
31.5
Inventory TO Days
49.5
47.1
49.2
49.4
Net Debt/Equity (X)
0.1
-0.2
-0.2
-0.4
Total Debt/Equity (X)
0.3
0.1
0.1
0.1
Gearing Ratio
Emkay Research
25 January 2011
25
Asian Paints
Result Update
Recommendation History: Asian Paints Ltd APNT IN

Date
Reports
Reco
CMP
27/10/2010
Asian Paints Q2FY11 Result Update
Hold
29/07/2010
Hold
2,585
2,510
01/06/2010
Hold
2,060
1,840
27/01/2010
Hold
1,775
1,651
2,503
Target
2,510
Emkay Research
25 January 2011
Date
Reports
Reco
CMP
Target
24/01/2011
Godrej Consumer Q3FY11 Result Update
Accumulate
400
420
25/10/2010
Hindustan Unilever Q2FY11 Result Update
Reduce
306
275
27/10/2010
Marico Q2FY11 Result Update
Hold
135
128
01/11/2010
Godrej Consumer Q2FY11 Result Update
Accumulate
421
447
26
Results in line, Downgrade earnings and price target

Q3FY11 results in line with estimates with APAT growth of
January 25, 2011
Reco
Previous Reco
Buy
Buy
CMP
Target Price
Rs 155
Rs 210
-2.5 / -8.5
-8.5
Nifty
5,687
Sensex
18,969
Price Performance
(%)
1M
3M
Absolute
(4)
(28) (17)
Rel. to Nifty
6M 12M
(3)
(23) (21) (15)
Source: Bloomberg

225
Rs
20
200
12
175
150
-4
125
-12
100
Jan-10
14% yoy to Rs 1.1 bn, adjusted for Rs 355 mn on forex loss
Revenue grew by 6% to Rs 12.2 bn on account of 37% growth
in RoW markets followed by 6% in India while growth in

Europe (-24%) and North America (-4%) remains subdued
Growth in India and RoW to remain buoyant while normalcy in
Europe and Northern America along with partial benefit of

Cerexagri integration and price increase to drive margins
Downgrade FY11 / FY12 estimates by 2.5% / 8.5% to Rs 15.4 /
17.5. Subsequently downgrade price target by 8.5% to Rs 210

however maintain BUY with 35% upside
Strong growth in RoW markets supported revenue growth of 6%

UPLs Q3FY11 revenues increased by 6% to Rs 12.2 bn and (in line with est). Company
reported volume growth of 14% while currency fluctuation and realisation decline
adversely affected revenue growth by 5% and 3%, respectively. Among the key growth
markets, Rest of the World (RoW) reported sharp increase of 37% to Rs 5.4 bn and
contributed 43% to revenues followed by 6% growth in India to Rs 3.3 bn. Strong growth
in Latin America and Middle East supported growth in RoW markets. Europe fell sharply
by 24% to Rs 2 bn on account of adverse currency, price erosion and volumes decline
due to adverse monsoon. North America markets also witnessed weakness with decline
of 4% to Rs 1.8 bn.
-20
Mar-10
May-10
Jul-10
United Phosphorus (LHS)
Sep-10
Nov-10
APAT growth of 14% to Rs 1.1 bn in line with estimates
Rel to Nifty (RHS)
Source: Bloomberg
Stock Details
Sector
Agri-input & Chemicals
Bloomberg
UNTP@IN
922
Face Value(Rs)
461
52 Week H/L
220/143
71/1,553
2062895
8.2

D10
S10
J10
Promoters
26.6
27.8
27.9
FII/NRI
38.0
37.1
35.8
Institutions
17.1
18.0
19.7
Private Corp
11.4
9.9
9.7
7.0
7.2
7.0
Public
Source: Capitaline
EBITDA margins improved by 110bps to 18.1% but was below estimates of 18.6%.
EBITDA increased by 13.5 % to Rs 2.2 bn (estimated Rs 2.2 bn). Driven by higher debt
and increase in borrowing rates, interest cost increased by 103% to Rs 538 mn
(adjusted for Rs 355 mn on account of forex loss) however the same was below our
estimates of Rs 700 mn. APAT of Rs 1.1 bn, +14% yoy, was in line with estimates.
AEPS for the quarter stood at Rs 2.5 as against Rs 2.2 previous year.
Downgrade FY11 / FY12 estimates by 2.5% and 8.5%

We have adjusted our FY11 estimates to factor subdued growth in Europe and Northern
America. We have downgraded our FY11E estimates by 2.5% to Rs 15.4 (previous Rs
15.8) and FY12E by 8.5% to Rs 17.5 (previous Rs 19.1). Subsequently we are revising
our target price downward by 8.5% to Rs 210 (previous Rs 230) based on 12x FY12
estimates and maintain BUY recommendation considering 35% upside at current price.
Management shared healthy future outlook

UPLs growth in FY11 was adversely affected due to various reasons like 1) currency
impact having adverse impact on revenues by ~5%, 2) lower growth in Europe and
Northern America due to adverse weather conditions. However volume growth
remained strong at 9%, mainly in India and RoW has been encouraging at ~20%. Going
forward, turn around in Europe and Northern Region may drive revenue growth. Further
price increase and partial benefit of Cerexagri integration should drive EBITDA margins.
Financial Snapshot
YE-
Net
Rs Mn
EBITDA
Mar
Sales
(Core)
FY09
49,317
9,449
EPS
EPS
RoE
EV/
(%)
APAT
(Rs)
% chg
(%)
P/E
EBITDA
P/BV
19.2
6,085
13.2
54.4
24.8
11.1
8.3
2.5
FY10
54,633
10,021
18.3
5,593
12.1
(8.1)
19.7
12.1
6.8
2.3
FY11E
56,302
10,860
19.3
7,103
15.4
27.0
20.8
10.0
6.7
1.8
FY12E
63,119
12,659
20.1
8,081
17.5
13.8
19.4
8.8
5.4
1.6
27
Result Update
United Phosphorus
United Phosphorus
Result Update
Key Financials Quarterly (Consolidated)

Rs mn
Revenue
Rs Mn
Q3FY10
Q4FY10
Q1FY11
Q2FY11
Q3FY11
YoY (%)
QoQ (%)
YTD11
YTD10
YoY (%)
11,497
15,190
14,686
12,569
12,221
6.3
(2.8)
39,476
39,443
0.1
9,545
12,155
11,794
10,243
10,007
4.8
(2.3)
32,043
32,457
(1.3)
81.2
82.3
(0.9)
(7.2)
19,478
21,386
49.3
54.2
5.1
9.4
3,817
3,679
9.7
9.3
8,749
7,392
22.2
18.7
Expenditure
as % of sales
Consumption of RM
as % of sales
Employee Cost
as % of sales
Other expenditure
as % of sales
EBITDA
Depreciation
EBIT
Other Income
Interest
PBT
83.0
80.0
80.3
81.5
81.9
5,748
8,156
7,647
6,135
5,695
(8.9)
50.0
53.7
52.1
48.8
46.6
1,234
1,339
1,334
1,186
1,298
10.7
8.8
9.1
9.4
10.6
2,563
2,660
2,813
2,922
3,014
22.3
17.5
19.2
23.2
24.7
1,952
3,034
2,892
2,326
2,215
13.5
(4.8)
7,433
6,986
6.4
541
558
472
515
491
(9.2)
(4.7)
1,477
1,589
(7.0)
1,411
2,477
2,420
1,811
1,724
22.2
(4.8)
5,955
5,397
10.3
17.6
3.2
3.8
18.3
83
154
186
238
262
216.3
10.2
687
189
264.2
266
30
494
492
538
102.6
9.5
1524
1058
44.0
1,228
2,601
2,113
1,557
1,448
17.9
(7.0)
5,118
4,528
13.0
Total Tax
247
134
156
250
266
7.8
6.4
673
680
(1.0)
Adjusted PAT
981
2,467
1,957
1,307
1,182
20.4
(9.6)
4,445
3,848
15.5
11
-99
(111.4)
(8.6)
4,434
3,947
12.3

APAT after MI
10
-29
23
-12
(221.8)
971
2,496
1,934
1,307
1,194
22.9
-330
-63
-510
-160
-355
7.5
121.7
-1025
-520
97.1
Reported PAT
641
2,433
1,424
1,147
839
30.9
(26.8)
3,409
3,427
(0.5)
Reported EPS
1.5
5.5
3.2
2.6
1.9
30.9
(26.8)
7.8
7.8
(0.5)
(bps)
(bps)
EBIDTA
17.0
20.0
19.7
18.5
18.1
115
(38)
18.8
17.7
112
EBIT
12.3
16.3
16.5
14.4
14.1
183
(30)
15.1
13.7
140
EBT
10.0
16.1
13.1
10.5
9.7
(26)
(79)
11.2
11.0
22
PAT
8.4
16.4
13.2
10.4
9.8
132
(63)
11.2
10.0
122
20.1
5.2
7.4
16.1
18.4
(172)
232
13.1
15.0
(186)
Margins (%)
Effective Tax rate
(bps)
Geographical Break up
Y/E Mar
Rs Mn
Q3FY10
Q4FY10
Q1FY11
Q2FY11
Q3FY11
India
3123
2050
4052
4540
North America
1841
3280
3861
2650
Europe
2673
5430
3647
Rest of the World
3942
4550
3312
11580
15310
14872
Total
YoY (%)
QoQ (%)
YTD11
YTD10
YoY (%)
3320
6.3
(26.9)
11912
9932
19.9
1760
(4.4)
(33.6)
8271
9056
(8.7)
2070
2020
(24.4)
(2.4)
7737
10289
(24.8)
3555
5380
36.5
51.3
12247
10342
18.4
12815
12480
7.8
(2.6)
40167
39620
1.4
Revision Table
Rs Mn
FY11E
(Rs mn)
FY12E
Old Estimates
New Estimates
% Change
Old Estimates
New Estimates
Net Sales
57674
56302
-2.4%
68945
63119
-8.5%
EBITDA
11468
10860
-5.3%
13235
12659
-4.4%
PAT
7275
7103
-2.4%
8833
8081
-8.5%
EPS (Rs)
15.8
15.4
-2.5%
19.1
17.5
-8.4%
Emkay Research
25 January 2011
% Change
28
United Phosphorus
Result Update
Key Financials
Income Statement
Balance Sheet
Y/E, Mar (Rs. mn)

Net Sales
Growth (%)
FY09
FY10
FY11E
FY12E
Y/E, Mar (Rs. mn)
FY09
FY10
FY11E
49,317
54,633
56,302
63,119
879
879
924
924
32.2
10.8
3.1
12.1
Reserves & surplus
25,851
29,039
37,502
43,962
26,730
29,918
38,426
44,886
95
140
265
365
4,574
4,044
4,044
4,044
Expenditure
39,868
44,612
45,442
50,460
Net worth
Materials Consumed
29,082
29,542
28,311
36,720
Minority Interest
4,794
5,018
5,017
6,642
Employee Cost
Other Exp
5,992
10,052
12,114
7,097
EBITDA
9,449
10,021
10,860
12,659
Secured Loans
FY12E
Unsecured Loans
16,092
19,774
13,548
8,184
Loan Funds
20,665
23,818
17,592
12,228
Growth (%)
33.9
6.1
8.4
16.6
Net deferred liabilities
277
490
394
294
EBITDA margin (%)
19.2
18.3
19.3
20.1
Total Liabilities
47,767
54,366
56,676
57,773
Depreciation
1,927
2,147
1,968
2,438
EBIT
7,522
7,874
8,892
10,220
Gross Block
29,603
30,009
31,914
34,614
EBIT margin (%)
15.3
14.4
15.8
16.2
Less: Depreciation
12,348
12,286
14,254
16,693
Other Income
418
343
937
600
Net block
17,255
17,723
17,660
17,922
Interest expenses
1,761
1,938
2,024
1,200
1,239
406
1,200
1,500
PBT
6,180
6,279
7,804
9,620
Investments
4,332
7,612
7,612
7,612
Tax
269
814
673
1,539
Current Assets
41,173
43,242
49,277
51,547
Inventories
16,849
10,084
20,824
22,826
Sundry debtors
11,406
12,135
14,654
16,063
4.4
13.0
8.6
16.0
5,911
5,465
7,131
8,081
Growth (%)
58.4
(7.5)
30.5
13.3
Cash & bank balance
5,539
15,778
8,553
7,412
Net Margin (%)
12.0
10.0
12.7
12.8
Loans & advances
6,758
4,693
4,693
4,693
(Profit)/loss from JVs/Ass/MI
174.8
128.2
(28.7)
622
553
553
553
Adjusted PAT After JVs/Ass/MI
6,085
5,593
7,103
8,081
Current lia & Prov
16,233
14,616
19,073
20,808
Current liabilities
15,402
13,591
18,047
19,783
831
1,025
1,025
1,025
24,941
28,626
30,205
30,739
Adjusted PAT
E/O items
(1,259)
(1,025)
Reported PAT
4,826
5,593
6,078
8,081
Provisions
PAT after MI
6,085
5,593
7,103
8,081
Net current assets
54.3
(8.1)
27.0
13.8
Growth (%)
Misc. exp
Total Assets
Cash Flow
47,766
54,366
56,676
57,773
FY09
FY10
FY11E
FY12E
Key Ratios
Y/E, Mar (Rs. mn)
FY09
FY10
FY11E
FY12E
4,603
5,936
6,868
9,020
Profitability (%)
Depreciation
1,927
2,147
1,968
2,438
EBITDA Margin
19.2
18.3
19.3
20.1
Interest Provided
1,549
1,503
2,024
1,200
Net Margin
12.3
10.2
12.6
12.8
862
(970)
ROCE
18.4
16.1
17.7
18.9
(7,304)
4,499
(8,803)
(1,676)
ROE
24.8
19.7
20.8
19.4
-828
-813
-673
-1,539
RoIC
24.5
23.4
25.4
25.4
809
12,302
1,384
9,444
(4,075)
(2,285)
(2,700)
(3,000)
FDEPS
13.2
12.1
15.4
17.5
-3,267
10,017
-1,316
6,444
CEPS
18.2
17.6
19.6
22.8
BVPS
60.8
68.1
83.2
97.2
DPS
2.0
2.5
3.0
3.0
11.1
12.1
10.0
8.8
8.4
8.7
7.8
6.7

Chg in working cap
Tax paid
Operating Cashflow
Capital expenditure
Free Cash Flow
Other income
Investments
Investing Cashflow
418
343
937
600
(359)
122
60
465
937
600

Interest Paid
Y/E, Mar
Per Share Data (Rs)
Valuations (x)
3,026
4,763
2,840
(6,226)
(5,364)
(1,467)
(1,522)
(2,024)
(1,200)
P/BV
2.5
2.3
1.8
1.6
(513)
(769)
(1,621)
(1,621)
EV / Sales
1.6
1.2
1.3
1.1
PER
P/CEPS
EV / EBITDA
8.3
6.8
6.7
5.4
Others
-1124
-791
Dividend Yield (%)
1.3
1.6
2.0
2.0
Financing Cashflow
1,660
-243
-6,845
-8,185
Gearing Ratio (x)

-0.1
-1,547
10,239
-7,225
-1,141
Net Debt/ Equity
0.4
0.0
0.0
Net chg in cash
7,086
5,539
15,778
8,553
Net Debt/EBIDTA
1.1
0.0
0.1
-0.2
5,539
15,778
8,553
7,412
95.1
57.6
113.0
110.5
Emkay Research
25 January 2011
29
United Phosphorus
Result Update
Recommendation History: United Phosphorus UNTP IN

Date
Reports
Reco
CMP
Target
29/12/2010
United Phosphorus Company Update
Buy
161
230
27/10/2010
United Phosphorus Q2FY11 Result Update
Buy
202
230
26/07/2010
Buy
179
230
30/04/2010
Buy
170
192

Date
Reports
Reco
CMP
Target
24/01/2011
Chambal Fertilisers Q3FY11 Result Update
Accumulate
78
86
20/01/2011
Kajaria Ceramics Q3FY11 Result Update
Buy
74
100
18/01/2011
Rallis India Q3FY11 Result Update
Buy
1,313
1,800
13/01/2011
Coromandel International Q3FY11 Result Update
Buy
279
435
Emkay Global Financial Services Ltd.

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25 January 2011
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Stock Update

Retail Advisory Team

Your success is our success

January 25, 2011

January 06, 2010 | 1

In line; Reiterate Buy

EPS change FY11E/12E (%)

Target Price change (%)

(14) (20) (10)

Relative Price Chart

Bharat Bijlee (LHS)

Rel to Nifty (RHS)

Equity Capital (Rs mn)

No of shares o/s (mn)

Market Cap (Rs bn/USD mn)

Daily Avg Volume (No of sh)

Daily Avg Turnover (US$mn)

Shareholding Pattern (%)

Emkay Global Financial Services Ltd

PAT grows by 92% yoy to Rs142mn (our expectations -

Rs137mn) - driven by 28% revenue growth (mainly volume

9mFY11 EPS stands at Rs62.2/Share (up 47% yoy), maintain

earnings of Rs96.1 and Rs116.4 in FY11E and FY12E with

Valuations (3xFY12E EBITDA and 5.8xFY12E earnings) not

pricing in value of inv. in Siemens (at 40% discount to CMP of

Top pick in transformers pack; Reiterate Buy

PAT growth of 92% driven by volume growth in both the businesses

Maintain earnings with upward bias going into Q4FY11E

Price not factoring in improving performance & Siemens inv. value;

Bharat Bijlee Ltd

Bharat Bijlee Ltd

Power and Fuel

Other Mfg Exenses

Effective Tax rate

Bharat Bijlee Ltd

Y/E, Mar (Rs. mn)

Y/E, Mar (Rs. mn)

Equity share capital

Reserves & surplus

EBIT margin (%)

Net deferred tax liability

Capital work in progress

Effective tax rate (%)

Cash & bank balance

Other current assets

Current lia & Prov

Loans & advances

Net current assets

Misc. exp & Def. Assets

Y/E, Mar (Rs. mn)

PBT (Ex-Other income)

Per Share Data (Rs)

Loans Taken / (Repaid)

Net chg in cash

Dividend paid (incl tax)

Dividend Yield (%)

Gearing Ratio (x)

Net Debt/ Equity

Opening cash position

Closing cash position

Working Cap Cycle (days)

Bharat Bijlee Ltd

Recommendation History: Bharat Bijlee BIJL IN