3QFY2012 Result Update | Infrastructure

February 15, 2012

JP Associates

BUY

Performance Highlights

CMP
Target Price

Y/E March (` cr)

Net sales

3QFY12

3QFY11

% chg (yoy)

2QFY12

% chg (qoq)

3,305

2,949

12.1

3,132

5.5

Operating profit

816

846

(3.6)

748

9.1

Net profit

205

233

(11.9)

129

59.3

`86
`99

Investment Period

12 Months

Stock Info
Infrastructure

Sector

Source: Company, Angel Research

Market Cap (` cr)

18,266

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

the revenue front but better-than-expected numbers on the EBITDAM and PAT
level. This outperformance was owing to high margin in construction segment
(owing to last leg of payment for completion of Yamuna expressway) and
higher other income (on account of dividend from subsidiaries). We

Beta

BSE Sensex

recommend Buy on the stock.

Nifty

Revenue in line; Higher EBITDAM and other income results in earnings

outperformance: On the top-line front, the companys revenue increased by
12.1% on a yoy basis to `3,305cr, which was exactly as per our estimate. The
cement segment reported growth of 37.2% yoy; however, construction and real
estate revenue declined by 1.7% and 27.6%, respectively, on a yoy basis. Blended
EBITDA margin came in at 24.7%, down 400bp yoy and ahead of our expectation
of 21.2%. The construction and real estate segments, with EBIT margins of 29.8%
and 47.9%, respectively, led to good show on the margin front. Interest cost stood
at `448.5cr, up 32.6% yoy 10.8% qoq and marginally higher than our estimate
of `425.1cr. Depreciation cost came in at `202.2cr, up 31.1% yoy and 14.8%
qoq and higher than our estimate of `184.9cr. The bottom line came in at
`205.0cr, a decline of 11.9% yoy and higher than our estimate of `69.5cr due to
high other income. Other income during the quarter jumped from `3.0cr in
3QFY2011 to `120.1cr in 3QFY2012.

Reuters Code

JAIA.BO

Bloomberg Code

JPA@IN

1.8

52 Week High / Low

103/50

Avg. Daily Volume

2,031,243

Face Value (`)

2
18,202
5,532

Shareholding Pattern (%)

Promoters

43.8

MF / Banks / Indian Fls

22.6

FII / NRIs / OCBs

19.1

Indian Public / Others

14.4

Abs. (%)

3m

1yr

3yr

7.8

(0.4)

95.6

22.4

1.5

85.2

Sensex
JAL

Outlook and valuation: We have valued JALs cement and construction business
at 6x EV/EBITDA (`62.2/share) and (`31.2/share), respectively. We have valued
its power and real estate businesses on mcap basis (giving 15% holding company
discount), which contributes `66.1/share to our target price. The hotel segment
contributes `0.8/share. Treasury shares (`7.7/share) have been valued at the
current market price, whereas net debt is accounted for on a per share basis in
our valuation at `68.6. We recommend our Buy rating on the stock with a revised
SOTP target price of `99 (`88), implying an upside of 15.8% from current levels.

Key financials (Standalone)

Y/E March (` cr)
Net sales
% chg
Adj. net profit
% chg
FDEPS (`)
EBITDA margin (%)
P/E (x)
RoAE (%)
RoACE (%)
P/BV (x)
EV/Sales (x)
EV/EBITDA (x)

FY2010
10,355
68.4
989
10.2
4.7
27.9
18.5
13.0
10.2
2.1
3.1
11.2

FY2011
13,832
33.6
1,168
18.1
5.5
27.2
15.6
13.0
10.5
1.9
2.7
10.0

Source: Company, Angel Research

Please refer to important disclosures at the end of this report

FY2012E
13,763
(0.5)
582
(50.2)
2.7
24.5
31.4
6.1
7.7
1.9
2.8
11.6

FY2013E
16,017
16.4
893
53.5
4.2
24.4
20.5
8.8
8.6
1.7
2.5
10.0

Shailesh Kanani
022-39357800 Ext: 6829
shailesh.kanani@angelbroking.com

Nitin Arora
022-39357800 Ext: 6842
nitin.arora@angelbroking.com

JP Associates | 3QFY2012 Result Update

Exhibit 1: 3QFY2012 performance (Standalone)

Y/E March (` cr)

3QFY12

3QFY11

% chg(yoy)

2QFY12

% chg(qoq)

9MFY12

9MFY11

% chg(yoy)

Net sales

3,305

2,949

12.1

3,132

5.5

9,616

9,234

4.1

Total exp.

2,489

2,102

18.4

2,384

4.4

7,279

6,946

4.8

Op. profit

816

846

(3.6)

748

9.1

2,337

2,288

2.1

OPM (%)

24.7

28.7

(400)bp

23.9

(80)bp

24.3

24.8

(50)bp

Int.

449

338

32.6

405

10.8

1,280

989

29.3

Dep.

202

154

31.1

176

14.8

550

457

20.4

Non op. inc.

120

3889.1

56

115.0

182

13

1292.8

(0)

367

287

357

(20)

223

28.9

690

1,221

(43.5)

82

124

(34)

94

(12.5)

249

357

(30.3)

205

233

(11.9)

129

59.3

441

864

(49.0)

Non recurring
PBT
Tax
Reported PAT
PAT (%)

6.2

7.9

(170)bp

4.1

210bp

4.6

9.4

Adj. PAT

205

233

(11.9)

129

59.3

441

497

(11.3)

Adj.PAT (%)

6.2

7.9

(170)bp

4.1

210bp

4.6

5.4

(80)bp

Adj. EPS (`)

1.0

1.1

(11.9)

0.6

59.3

2.1

2.3

(11.3)

Source: Company, Angel Research

Exhibit 2: 3QFY2012 Actual vs. Estimates

(` cr)

Actual

Estimates

Variation (%)

Net Sales

3305

3304

0.0

EBITDA

816.0

700.9

16.4

Interest

448.5

425.1

5.5

Tax

82.4

28.4

190.2

PAT

205.0

69.5

194.9

Source: Company, Angel Research

February 15, 2012

JP Associates | 3QFY2012 Result Update

Exhibit 3: Segmental performance

Y/E March (` cr)

3QFY2012

3QFY2011

% Chg

9MFY2012

9MFY2011

Cement & Cement Products

1,697

Construction

1,242
3

% Chg

1,237

37.2

4,548

3,887

17.0

1,264

(1.7)

4,072

4,272

(4.7)

(23.5)

31

27

13.8

Segment Revenue

Power
Hotel/Hospitality and Golf Course

60

55

10.0

141

129

8.9

Real Estate

308

426

(27.6)

857

1,115

(23.2)

Investment

120

2989.0

182

11

1524.1

12

16

33

(52.5)

59

95

(38.5)

Others
Unallocated
Less: Inter-Segmental Performance

29

72

(59.4)

104

299

(65.2)

3,426

2,953

16.0

9,798

9,246

6.0

Cement & Cement Products

170

142

19.4

334

617

(45.8)

Construction

371

272

36.1

1,182

708

67.0

(2)

(1260.0)

16

15

8.0

(0.6)

(91.1)

Real Estate

148

294

(49.8)

420

583

(28.0)

Investment

120

0.0

182

11

1524.1

(0)

(1)

(8)

(3)

Total Sales Income

Segment Results

Power
Hotel/Hospitality and Golf Course

Others
Excep : Profit on Sale of Shares

513

Total PBIT

816

721

13.2

2,127

2,452

(13.2)

Less: Interest Expense

449

338

32.6

1,280

989

29.3

Less: Exceptional Item

0.0

80

26

211.1

158

95

65.3

287

357

(19.5)

690

1,367

Less: Unallocable Expense

PBT
PBIT Margin (%)

bp chg.

(49.5)
bp chg.

Cement & Cement Products

10.0

11.5

(149)

7.4

15.9

(852)

Construction

29.8

21.6

829

29.0

16.6

1,246

(53.5)

3.5

(5,707)

52.4

55.2

(284)

Hotel/Hospitality and Golf Course

15.3

16.9

(164)

0.4

5.0

(462)

Real Estate

47.9

69.1

(2,119)

49.0

52.3

(327)

Investment

100.0

100.0

100.0

100.0

(0.5)

(50.7)

(66.9)

(35.4)

538.3

17,219

14,194

21.3

17,219

14,194

21.3

Construction

3,876

3,509

10.5

3,876

3,509

10.5

Power

1,941

1,168

66.2

1,941

1,168

66.2

598

523

14.4

598

523

14.4

Real Estate

3,309

2,281

45.1

3,309

2,281

45.1

Investment

7,042

5,866

20.0

7,042

5,866

20.0

Power

Others
Unallocated
Capital Employed in Segment
Cement & Cement Products

Hotel/Hospitality and Golf Course

Others
Unallocated
Total

336

255

31.8

336

255

31.8

1,405

2,610

(46.1)

1,405

2,610

(46.1)

35,727

30,406

17.5

35,727

30,406

17.5

Source: Company, Angel Research

February 15, 2012

JP Associates | 3QFY2012 Result Update

Segment-wise performance
Cement division
JALs cement division reported revenue growth of 37.2% yoy to `1,697cr
(`1,237cr), 10.0% higher than our estimate of `1,543cr. Higher-than-expected
performance was due to better realization of `3,994/tonne against our estimate of
`3,250/tonne. Volume for the quarter came in at 4.3mtpa an increase of 13.4%
on yoy basis. The volume has also gone up owing to commissioning of its Balaji
Cement plant at Andhra Pradesh.

Construction division
The construction division continued its poor performance on the revenue front with
a 1.7% yoy decline to `1,242cr and in line with our estimate of `1,264cr.
Divisional EBIT margin witnessed a phenomenal jump of 829bp yoy and came in
at 29.8%. This was on account of revenue booking for last portion of the recently
completed Yamuna Expressway and Karcham Wangtoo projects. Since the past
few quarters, there has been huge volatility in the construction segment in terms of
revenue and EBIT margins.

Real estate division

The real estate division reported a decline of 27.6% yoy to `308cr, which was
below our estimate of `446.8cr. Divisional EBIT margin for the segment witnessed
a dip of 2,119bp yoy and came in at 47.9%.

19.0

1,500
(0.5)

1,000

(1.1)

2.0

12.1

40.0
20.0
-

500

(20.0)

Sales (` cr, LHS)

Source: Company, Angel Research

February 15, 2012

3QFY12

2QFY12

1QFY12

4QFY11

3QFY11

2QFY11

1QFY11

4QFY10

3QFY10

2QFY10

1QFY10

Growth (yoy %, RHS)

30.0
25.0
20.0
15.0
10.0
5.0
-

EBITDA (` cr, LHS)

3QFY12

60.0

2,000

21.2

24.3 23.9 24.7

2QFY12

80.0

24.7

1QFY12

62.6

25.5

23.1

35.0
21.4

4QFY11

51.8

28.7

3QFY11

60.5

58.4

2,500

29.9

2QFY11

3,000

100.0

27.5

1QFY11

82.6

1,000
900
800
700
600
500
400
300
200
100
0

4QFY10

3,500

120.0

3QFY10

140.0

122.1

4,000

2QFY10

4,500

Exhibit 5: Quarterly EBITDA trend Stable

1QFY10

Exhibit 4: Revenue growth back on track

EBITDAM (%, RHS)

Source: Company, Angel Research

JP Associates | 3QFY2012 Result Update

Higher EBITDAM and other income results in better-thanexpected earnings performance

Blended EBITDA margin came in at 24.7%, down 400bp yoy and ahead of our
expectation of 21.2%. The construction and real estate segments, with EBIT
margins of 29.8% and 47.9%, respectively, led to good show on the margin
front. Interest cost stood at `448.5cr, up 32.6% yoy 10.8% qoq and marginally
higher than our estimate of `425.1cr. Depreciation cost came in at `202.2cr,
up 31.1% yoy and 14.8% qoq and higher than our estimate of `184.9cr. The
bottom line came in at `205.0cr, a decline of 11.9% yoy and higher than our
estimate of `69.5cr due to high other income (on account of dividend from
subsidiaries). Other income during the quarter jumped from `3.0cr in
3QFY2011 to `120.1cr in 3QFY2012, which along with higher EBITDAM
resulted in better-than-expected earnings performance.
Exhibit 6: PATM higher owing to high other income
350
300

14.0

11.8

12.0

250
7.3

200

7.9

7.3

10.0

7.6
6.2

6.0
4.6

150
100

3.7

3.4

8.0
6.0

4.1

4.0
2.0

50

PAT (` cr, LHS)

3QFY12

2QFY12

1QFY12

4QFY11

3QFY11

2QFY11

1QFY11

4QFY10

3QFY10

2QFY10

1QFY10

PATM (%, RHS)

Source: Company, Angel Research;

February 15, 2012

JP Associates | 3QFY2012 Result Update

Outlook and valuation

We have valued JALs cement and construction business at 6x EV/EBITDA
(`62.2/share) and (`31.2/share), respectively. We have valued its power and real
estate businesses on mcap basis (giving 15% holding company discount), which
contributes `66.1/share to our target price. The hotel segment contributes
`0.8/share. Treasury shares (`7.7/share) have been valued at the current market
price, whereas net debt is accounted for on a per share basis in our valuation at
`68.6. We recommend our Buy rating on the stock with a revised SOTP target
price of `99 (`88), implying an upside of 15.8% from current levels.

Exhibit 7: SOTP valuation

Business Segment

Methodology

% Upside/ (Downside)

` cr

`/share

% to Target Price

Cement

EV/EBITDA (x)

Construction

EV/EBITDA (x)

6x EV/EBITDA

13,234

62.2

62.6

6x EV/EBITDA

6,641

31.2

31.4

Power
Real Estate

Mcap of JPVL

(@ 15% holding company discount)

8,089

38.1

38.3

NAV/Mcap

Jayppe InfraTech + Jaypee Greens

5,956

28.0

28.2

166

0.8

0.8

Hotels
Treasury Stock

8x FY2013E Net Profit

At CMP

Net Debt

Net Debt for Cement, Construction and Real Estate Business

Total

1,626

7.7

7.7

(14,567)

(68.6)

(68.9)

21,146

99.4

100.0

Source: Company, Angel Research

Exhibit 8: Angel EPS forecast vs. consensus

Angel Forecast

Bloomberg Consensus

Variation (%)

FY2012E

2.7

3.8

(27.3)

FY2013E

4.2

4.7

(11.5)

Source: Company, Angel Research

February 15, 2012

JP Associates | 3QFY2012 Result Update

Exhibit 9: Recommendation summary

Company
ABL

CMP
205

TP

Top-line (` cr)

Rating

245

Adj. P/E

EPS (`)

OB/

FY11

FY12E

FY13E CAGR (%) FY11 FY12E FY13E CAGR (%) FY11 FY12E FY13E Sales(x)

Buy

1,302

1,648

1,853

21.7

25.4

CCCL

18

17 Reduce

2,199

2,258

2,646

19.3 19.2
9.7

2.5

(1.5)

2.4

HCC

30

- Neutral

4,093

3,915

4,633

6.4

1.2

(3.1)

- Neutral

15.2 10.7

9.5

8.1

4.2

7.1

7.7

2.7

0.6

(25.8) 25.8

47.0

4.0

(2.0) 13.9

13.4

14.5

9.3

8.2

5.2

(3.6)

IRB Infra

189

2,438

3,176

3,781

24.5 13.6

14.2

13.1

ITNL

213

235

Accu.

4,049

5,178

6,619

27.9 22.3

22.9

26.0

IVRCL

60

64

Accu.

5,651

5,057

5,758

0.9

5.9

2.0

4.8

(9.6) 10.2

29.8

12.5

4.4

JP Assoc.

86

99

Buy 13,832 13,763 16,017

7.6

5.5

2.7

4.2

(12.6) 15.6

31.4

20.5

1,449 1,608

Accu. 43,905 53,779 60,258

17.2 54.3

63.7

70.9

14.2 26.7

22.7

20.4

3.3

(8.1) 11.7

14.8

13.9

3.8

44.7

17.7

4.3

L&T

77

7.8

9.5

Madhucon

65

Buy

1,816

1,952

2,503

17.4

5.6

4.4

4.7

NCC

62

- Neutral

5,074

4,946

5,790

6.8

6.4

1.4

3.5

(26.1)

9.7

Patel Engg

120

- Neutral

3,476

3,573

3,609

1.9 17.6

14.9

14.8

(8.3)

6.9

8.1

8.1

2.7

Punj Lloyd

63

- Neutral

7,850 10,147 10,592

16.2 (5.4)

3.5

2.9

17.9

21.7

3.6

8.0

9.3

9.2

7.3 18.0

15.5

15.6

2.7

17.3 21.5

24.0

29.1

16.3 10.4

9.4

7.7

2.9

Sadbhav

143

157

Accu.

2,209

2,602

2,585

Simplex In.

224

261

Buy

4,889

5,961

6,732

8.2

Source: Company, Angel Research

Exhibit 10: SOTP break up

Company

Core Const.

Real Estate

Road BOT

Invst. In Subsidiaries

Others

Total

% to TP

% to TP

% to TP

% to TP

% to TP

ABL

104

42

141

58

245

CCCL

17

100

17

32

182

HCC

12

12

37

16

51

IRB Infra

116

64

61

34

ITNL

59

25

152

65

25

10

235

IVRCL

39

60

26

40

64

JP Assoc.

31

31

28

28

40

40

99

1,608

77

L&T

1,276

79

332

21

Madhucon

23

30

52

68

NCC

29

48

14

22

35

61

Patel Engg

55

51

17

16

16

15

19

18

106

Punj Lloyd

71

100

71

Sadbhav

83

53

75

47

157

Simplex In.

261

100

261

Source: Company, Angel Research

February 15, 2012

JP Associates | 3QFY2012 Result Update

Profit & Loss Statement (Standalone)

Y/E March (` cr)
Net Sales
% chg

FY2009

FY2010

FY2011 FY2012E FY2013E

4,274

6,148

10,355

13,832

13,763

16,017

19.4

43.8

68.4

33.6

(0.5)

16.4

Total Expenditure

2,888

4,084

7,465

10,076

10,396

12,108

Net Raw Materials

1,374

2,153

4,290

6,304

6,026

6,916

Other Mfg costs

575

843

1,497

1,500

2,041

2,419

Personnel

255

331

453

596

687

785

Other

683

757

1,225

1,677

1,642

1,988

1,386

2,064

2,891

3,756

3,368

3,909

% chg

33.2

48.9

40.1

29.9

(10.3)

16.1

(% of Net Sales)

32.4

33.6

27.9

27.2

24.5

24.4

Dep. & Amort.

203

309

456

608

779

875

EBITDA

EBIT

1,183

1,755

2,435

3,148

2,589

3,034

% chg

34.8

48.4

38.7

29.3

(17.8)

17.2

(% of Net Sales)

27.7

28.5

23.5

22.8

18.8

18.9

Interest

339

504

1,056

1,394

1,728

1,713

Other Income

(% of PBT)

Share of Assoc

Recurring PBT

844

1,251

1,379

1,754

861

1,321

% chg

36.0

48.3

10.2

27.2

(50.9)

53.5

719.5

0.8

PBT (reported)

844

1,251

2,098

1,755

861

1,321

Tax

234

354

390

587

279

429

(% of PBT)

27.7

28.3

18.6

33.4

32.5

32.5

PAT (reported)

610

897

1,708

1,169

582

893

PAT after MI

610

897

1,708

1,169

582

893

Extra. Exp/(Inc.)

ADJ. PAT

610

897

989

1,168

582

893

% chg

46.9

47.1

10.2

18.1

(50.2)

53.5

(% of Net Sales)

14.3

14.6

9.5

8.4

4.2

5.6

Basic EPS (`)

5.2

6.4

4.7

5.5

2.7

4.2

Fully Diluted EPS (`)

2.9

4.2

4.7

5.5

2.7

4.2

46.9

47.1

10.2

18.1

(50.2)

53.5

% chg

February 15, 2012

FY2008

JP Associates | 3QFY2012 Result Update

Balance Sheet (Standalone)

Y/E March (` cr)

FY2008 FY2009 FY2010 FY2011

FY2012E

FY2013E

SOURCES OF FUNDS
Equity Share Capital

234

280

425

425

425

425

Preference Capital

Reserves& Surplus

4,364

6,418

8,076

8,972

9,379

10,088

Shareholders Funds

4,598

6,698

8,501

9,397

9,804

10,514

8,306

13,106

17,909

21,708

23,666

23,942

571

720

956

1,220

1,220

1,220

13,475

20,524

27,366

32,325

34,691

35,676

Gross Block

5,166

8,619

12,847

14,796

18,966

21,311

Less: Acc. Depreciation

1,455

1,801

2,228

2,840

3,619

4,494

Net Block

3,712

6,818

10,619

11,957

15,348

16,817

Capital Work-in-Progress

4,219

5,082

3,892

6,353

4,447

3,113

Minority Interest
Total Loans
Deferred Tax Liability
Total Liabilities
APPLICATION OF FUNDS

Deferred Tax Asset

11.5

30.4

32.8

26.4

26.4

26.4

3,225

4,465

5,576

6,484

7,428

7,596

Cash

1,815

2,909

3,879

2,463

2,930

2,937

Loans & Advances

2,222

3,263

3,995

4,570

5,002

6,403

Other

1,926

2,991

5,225

6,120

6,269

7,309

Current liabilities

3,655

5,037

5,853

5,647

6,759

8,526

Net Current Assets

2,308

4,126

7,246

7,506

7,441

8,123

Investments
Current Assets

Misc. Exp. not written off

Total Assets

February 15, 2012

13,475

20,524

27,366

32,325

34,691

35,676

JP Associates | 3QFY2012 Result Update

Cash Flow Statement (Standalone)

Y/E March (` cr)
Profit before tax

844

Depreciation

203

309

456

Change in Working Capital

(28)

1,709

2,725

Direct taxes paid

234

316

271

Cash Flow from Operations

1,251

1,065

1,755

861

1,321

608

779

875

1,676

(532)

674

587

279

429

841

(465)

(1,474)

100

1,892

1,094

Inc./ (Dec.) in Fixed Assets

2,955

3,324

3,077

4,410

2,264

1,010

Inc./ (Dec.) in Investments

1,446

891

(214)

908

945

168

Cash Flow from Investing

4,401

4,215

2,863

5,318

3,209

1,178

Issue of Equity

1,250

426

87

(4)

Inc./(Dec.) in loans

2,790

4,379

4,803

3,799

1,958

276

134

81

176

166

175

183

Dividend Paid (Incl. Tax)

Others

(594)

(172)

3,946

5,772

5,307

3,801

1,784

92

386

1,093

971

(1,417)

467

Opening Cash balances

1,430

1,815

2,909

3,879

2,463

2,930

Closing Cash balances

1,815

2,909

3,879

2,463

2,930

2,937

Cash Flow from Financing

Inc./(Dec.) in Cash

February 15, 2012

FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

(40) (1,049)

10

JP Associates | 3QFY2012 Result Update

Key Ratios
Y/E March

FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

Valuation Ratio (x)

P/E (on FDEPS)

16.5

13.4

18.5

15.6

31.4

20.5

P/CEPS

12.4

10.0

8.4

10.3

13.4

10.3

P/BV

2.2

1.8

2.1

1.9

1.9

1.7

Dividend yield (%)

1.2

1.2

1.3

0.9

1.0

1.0

EV/Sales

5.8

4.6

3.1

2.7

2.8

2.5

17.9

13.8

11.2

10.0

11.6

10.0

1.8

1.4

1.2

1.2

1.1

1.1

EPS (Basic)

5.2

6.4

4.7

5.5

2.7

4.2

EPS (fully diluted)

2.9

4.2

4.7

5.5

2.7

4.2

Cash EPS

6.9

8.6

10.2

8.4

6.4

8.3

DPS

1.0

1.0

1.1

0.8

0.8

0.9

39.2

47.8

40.0

44.2

46.1

49.4

EBIT margin

27.7

28.5

23.5

22.8

18.8

18.9

Tax retention ratio

72.3

71.7

81.4

66.6

67.6

67.6

Asset turnover (x)

0.4

0.4

0.5

0.5

0.4

0.5

ROIC (Post-tax)

8.9

8.6

9.6

7.9

5.7

6.4

Cost of Debt (Post Tax)

3.5

3.4

5.5

4.7

5.1

4.9

Leverage (x)

1.4

1.5

1.6

1.8

2.1

2.1

16.6

16.3

16.2

13.7

6.8

9.4

ROCE (Pre-tax)

10.6

10.3

10.2

10.5

7.7

8.6

Angel ROIC (Pre-tax)

18.7

17.6

15.2

14.6

10.2

10.7

ROE

16.3

15.9

13.0

13.0

6.1

8.8

Asset Turnover (Gross Block)

0.9

0.9

1.0

1.0

0.8

0.8

Inventory / Sales (days)

76

66

49

42

46

45

EV/EBITDA
EV / Total Assets
Per Share Data (`)

Book Value
DuPont Analysis

Operating ROE
Returns (%)

Turnover ratios (x)

Receivables (days)

44

48

58

67

74

69

338

353

239

186

195

205

43

51

81

111

127

110

Net debt to equity

1.4

1.5

1.7

2.0

2.1

2.0

Net debt to EBITDA

4.7

4.9

4.9

5.1

6.2

5.4

Interest Coverage

3.5

3.5

2.3

2.3

1.5

1.8

Payables (days)
W.cap cycle (ex-cash) (days)
Solvency ratios (x)

February 15, 2012

11

JP Associates | 3QFY2012 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.
Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make
investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this
document are those of the analyst, and the company may or may not subscribe to all the views expressed within.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify,
nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While
Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory,
compliance, or other reasons that prevent us from doing so.
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redistributed or passed on, directly or indirectly.
Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or
other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in
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Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in
connection with the use of this information.
Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please
refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and
its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement

JP Associates

1. Analyst ownership of the stock

No

2. Angel and its Group companies ownership of the stock

No

3. Angel and its Group companies' Directors ownership of the stock

No

4. Broking relationship with company covered

No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors.

Ratings (Returns):

February 15, 2012

Buy (> 15%)

Reduce (-5% to 15%)

Accumulate (5% to 15%)

Sell (< -15%)

Neutral (-5 to 5%)

12