QUARTERLY PERFORMANCE ANALYSIS OF COMPANIES (January - March 2010)

INDIAN INFRASTRUCTURE INDUSTRY

April 2010

Cygnus Business Consulting & Research Pvt. Ltd.

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Disclaimer: All information contained in this report has been obtained from sources believed to be accurate by Cygnus Business Consulting & Research Pvt. Ltd. (Cygnus). While reasonable care has been taken in its preparation, Cygnus makes no representation or warranty, express or implied, as to the accuracy, timeliness or completeness of any such information. The information contained herein may be changed without notice. All information should be considered solely as statements of opinion and Cygnus will not be liable for any loss incurred by users from any use of the publication or contents

QPAC-Indian Infrastructure Industry- January March 2010

CONTENTS
EXECUTIVE SUMMARY.........................................................................................................3 INDUSTRY ANALYSIS ............................................................................................................5 OUTLOOK FOR THE SECTOR .............................................................................................6 INTER-FIRM COMPARISON..................................................................................................8 COMPANY ANALYSIS ..........................................................................................................11 1. B L Kashyap & Sons Ltd...................................................................................................11 2. Era Infra Engineering Ltd. ................................................................................................11 3. Gammon India Ltd. ..........................................................................................................12 4. Hindustan Construction Co. Ltd. ......................................................................................12 5. I V R C L Infrastructures & Projects Ltd...........................................................................13 6. Larsen & Toubro Ltd. .......................................................................................................13 7. Madhucon Projects Ltd. ....................................................................................................14 8. Nagarjuna Construction Co. Ltd........................................................................................14 9. Nitco Ltd. .........................................................................................................................15 10. Punj Lloyd Ltd. ...............................................................................................................15 11. Simplex Infrastructures Ltd. ............................................................................................16 12. Unitech Ltd. ....................................................................................................................16 SOURCES & METHODS FOR COMPANY PROJECTIONS...............................................17

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QPAC-Indian Infrastructure Industry- January March 2010

EXECUTIVE SUMMARY
India is acknowledged as one of the most resilient and fastest growing economies in the world. However, the infrastructures of urban and rural areas, as well as the transport connectivity are way below the standards. Construction which accounts for 65% of investment in the infrastructure sector is the second largest activity in our country, after agriculture. Government of India is encouraging the private participation in infrastructure sector by announcing several tax incentives. Laws are also being enacted to improve financing of utilities and for making their management more transparent. So, the infrastructure sector certainly offers major opportunities to the industry, in general and the construction industry, in particular. There are several good projects in India, such as, modernisation of airports, ports, roads and highways, etc. There are also appropriate technologies, expertise and plantmachinery now available to harness these projects with speed, quality and economy. Money raised through Qualified Institutional Placements (QIPs) and Private Equity (PE) deals, many builders are eager to cash in on the return of demand. However, they are cautious and have modified their business models to sidestep risks. For one, they are entering new markets with so-called affordable housing after many of them, during the boom, over-stretched themselves by buying land at steep prices for projects they later withdrew from. Developers who have land in various cities need to monetise them after waiting for nearly a year for the sector to improve, and this is a good time considering demand is inching back and the right project will bring in sales. The pan-India strategy of Gurgaon-based DLF, Indias largest realty firm by market value, is to build on acquired land, execute the projects fast and work on reduced profit margins. The firm plans to launch residential projects in Chennai, Hyderabad, Kasauli and Goa in the coming years after recent launches in Kochi and Indore. These are in contrast with its township projects such as those in Bidadi in Karnataka or Dankuni in West Bengal from which it had to withdraw earlier this year because of the slowdown. Since Housing industry constitutes a large segment of real estate in India, therefore, government must consider rebates and incentives to strengthen investment opportunities by prospective investors. The IT and ITES sector alone is estimated to require 150 million sq ft of office space across urban India by 2010. Organised retail is also responsible for the growth in commercial office space requirement. The organised retail industry is likely to require an additional 220 million sq ft by 2010. Moreover, growth is not restricted to a few towns and cities but pan-India, covering nearly all tier-I and tier-II cities. Almost 80% of the real estate developed in India is residential space, the rest comprising of offices, shopping malls, hotels and hospitals. According to the tenth five-year-plan, there is a shortage of 22.4 million dwelling units. Thus, over the next 10 to 15 years, 80 to 90 million dwelling units will have to be constructed with a majority of them catering to middle- and lower-income groups. Foreign Institutional Investors (FIIs) have also shown confidence in the countrys construction sector and are shoring up investment. With the BSE Sensex touching a 15-month high, the market capitalisation of FII investment in construction has gone up a whopping 422% in the past six months. The real estate sector is also likely to get a boost from Real Estate Mutual Funds (REMFs) and Real Estate Investment Trusts (REITs). In fact, according to a CRISIL paper, the REITs would have the potential to hold at least 5% share of the total global real estate market by 2010, the size of which would turn to US$1400 billion in the next 3 years. REITs alone would hold a market size of US$70 billion of the total real estate market as its concept is gaining ground in countries like India and other developing nations. According to the Federation of Indian Chambers of Commerce and Industry (FICCI), the Indian real estate sector is likely to experience consolidation wherein bigger players may opt for outright buy of smaller firms or forge joint ventures or business alliances with them. According to the Confederation of

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QPAC-Indian Infrastructure Industry- January March 2010

Real Estate Developers' Associations of India (CREDAI), the affordable housing segment is set to play an important role in India's real estate sector in 2010 on the back of an upswing in demand. Moreover, 2010 is expected to be a positive year for the real estate sector. The revival is expected to be driven by infrastructure growth, which in turn can accelerate real estate activities both in the residential as well as commercial spaces. The government has introduced many progressive reform measures to unlock the potential of the sector and also meet increasing demand levels. The stimulus package announced by the government, coupled with the Reserve Bank of India's (RBI) move allowing banks to provide special treatment to the real estate sector, is likely to impact the Indian real estate sector in a positive way. The Union Ministry of Commerce & Industry has initiated steps to reduce the time taken to develop Special Economic Zones (SEZs) by simplifying procedures to get the tax-free industrial enclaves notified. Developers will now be able to get their land classified as an SEZ at the initial stage of approval by submitting legal documents that prove land ownership.

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QPAC-Indian Infrastructure Industry- January March 2010

INDUSTRY ANALYSIS
Industry Analysis
The net sales of the industry are likely to report an increase of 5% over JFM09 to reach Rs227859.56m in JFM10. The order book of construction industry is healthy, and can generate revenue for 2-3 years. The growth rate is expected to have increased a bit in this quarter because of the recovery of the construction sector. The whole sector is going through the revival phase due to the upturn in the economy and in the market thereby increasing the growth potential of the construction sector. The other income of the industry and depreciation are estimated to be Rs4035.07m, and Rs2708.51m respectively in JFM10.

Industry Aggregate (Rs in m) Particulars JFM10 (E) Net Sales 227859.43 Change 5% EBITDA 30205.26 Change 12% Depreciation 2708.51 Interest 6438.30 Other Income 4035.07 PBT 25093.52 Tax 6551.52 Tax rate 2% PAT 18542.00 Change (%) 14% Market Cap 1457301.85
Source: Cygnus Research Note:; (E) Expected

Note: The aggregate consists of the following companiesBL Kashyap & Sons, Era Constructions, Gammon India Limited, Hindustan Construction Company, IVRCL Infrastructure, Larsen & Toubro Limited, Madhucon Construction, Nagarjuna Construction Company, Nitco Tiles Limited, Punj Lloyd Limited, Unitech, Simplex Infrastructure

229000

Net Sales and Growth

6.00

224000 Rs m

4.00 % 2.00 0.00 JFM 09 (A) Net Sales (LHS) JFM 10 (E) % change (RHS)

219000

214000

Net Profit and NPM

Rs m 8 % 30000 Rs m

EBDITA and OPM

EBDITA (LHS) OPM (RHS) 8.00 %

PAT (LHS) NPM (RHS)

16000

28000

6.00

14000 JFM 09 (A) JFM 10 (E)

Source: BSE India; Cygnus Research

26000 JFM 09 (A) JFM 10 (E)

4.00

Note: (A) Actuals; (E) Expected

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QPAC-Indian Infrastructure Industry- January March 2010 Cost as a percentage of sales As per Cygnus estimates, the raw material consumption forms one of the major drivers of construction Industry, which is estimated to be 40.06% as a percentage of sales in JFM10. Sub contract expenses and other expenses are the next major cost drivers which are estimated to be 14.60% and 20.30% of sales respectively in JFM10. Construction the second largest economic activity in India Construction is an essential part of any countrys infrastructure and industrial development. Construction industry has linkages with various other industries such ascement, steel, bricks and others. It acts as a catalyst for employment generation in the country. Construction which accounts for 65% of investment in the infrastructure sector - is the second largest activity in our country, after agriculture and most of the projects in the construction industry are working capital intensive. The IT and ITES sector alone is estimated to require 150 million sq ft of office space across urban India by 2010. Organised retail is also responsible for the growth in commercial office space requirement. The organised retail industry is likely to require an additional 220 million sq ft by 2010. Moreover, growth is not restricted to a few towns and cities but is pan-India, covering nearly all tier-I and tier-II cities. Upswing in demand Property prices in Pune went up by 9.2% in the last quarter, making the city one of the only three in the country to see a rise in prices. Apart from Pune, Ahmedabad and Kolkata saw a price rise in the January to March quarter. In Mumbai, the prices dropped by 2% in the first quarter, while in Delhi they dropped by 7.6%. On the back of a revival in demand, real estate developers are again building super luxury apartments. According to consultancy firms Jones Lang Lasalle Meghraj (JLLM) and Knight Frank India said there are about 7,000 such super luxury apartments to be delivered within a year in Mumbai alone, where the cost is not below Rs470 million for a single unit. After the recession got over, real estate developers have gone back, building high-end super luxury projects because there is good demand for such apartments. At the same time, margins are also higher in these projects.

OUTLOOK FOR THE SECTOR

India is acknowledged as one of the most resilient and fastest growing economies in the world, but the infrastructure in urban and rural areas, as well as the transport connectivity, is way below the standards.. Government of India is encouraging the private participation in infrastructure sector, by announcing several tax incentives. Laws are also being enacted to improve financing of utilities and for making their management more transparent. So, infrastructure sector certainly offers major opportunities to the industry, in general and the construction industry, in particular. There are several good projects in India, such as, modernisation of airports, ports, roads and highways etc. There are also appropriate technologies, expertise and plant-machinery which are now available to harness these projects with speed, quality and economy. A stable environment for the construction industry is forecasted during CY10. Revenue growth is likely to remain strong due to comfortable order-book positions and expected increases in new orders. Beside strong government and power sector spending, a revival of private capital expenditure is likely to aid companies in gaining new orders, while margins and material costs are likely to remain stable. The stability will also be driven by the trend for many companies to move
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QPAC-Indian Infrastructure Industry- January March 2010 away from fixed-price contracts to ones that incorporate price escalations. However, various factors such as increase in asset ownership through BOO/BOOT (build, own, operate, transfer) projects and execution of larger ones will add to risks. Construction companies have moved towards executing larger projects. Economic recovery during CY11 is likely to reinvigorate the interest of foreign investors in India's real estate market. However, currently real estate sector remains negative; the sector could exhibit signs of stability by the second half of the year. The fundamentals of Indias real estate sector are improving, as seen by better liquidity and improved demand in the residential segment. During FY11 and FY12, the margins are expected to be largely stable. Bunching up of order intake in the interim period could lead to higher mobilization expenses, resulting in possible near-term margin disappointment. The medium-term prospects of the Indian construction sector are driven by: (i) improving order intake, (ii) stable margins, and (iii) value unlocking opportunities. The investment risks involved in the construction activity include: Weak government finances and crowding out of private sector could impact project awards Interest cost has increased from 2% of revenue in FY06 to 3.4% in FY10. Deterioration in working capital and higher interest rates could impact profit growth. BOT/Real Estate projects: Execution delays, project cost overruns and lower-thanexpected operational cash flows could impact target prices. Further, high competitive intensity leading to aggressive new project bids could also erode value of investments.

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QPAC-Indian Infrastructure Industry- January March 2010

INTER-FIRM COMPARISON
Operational Performance Sales to sustain growth As per Cygnus estimates, the net sales of most of the construction companies are estimated to increase due to strong order book in infrastructure in JFM10 in comparison to JFM09. Unitech has shown growth of about 74% in JFM10 when compared to JFM09 due to healthy order book from various infrastructure projects. Owing to rise in government spending in infrastructure, most of the construction companies pegged a healthy order book. Construction - Net Sales JFM09(A) JFM10(E) Growth % BLK Sons 2849.86 3109.94 9.13 Era Infra 9525.81 9716.33 2.00 Gammon 19058.40 19439.57 2.00 HCC 9796.81 10234.58 4.47 IVRCL 16272.49 16654.89 2.35 L&T 106051.60 110951.18 4.62 Madhucon 3258.83 3454.36 6.00 NCC 10980.50 11529.53 5.00 Nitco 1406.09 1480.75 5.31 Punj Lloyd 19801.70 20989.80 6.00 Simplex Infra 13875.60 14479.19 4.35 Unitech 3345.67 5819.31 73.94
Source: BSE India; Cygnus Research

There was growth in net sales for some Note: (A) Actuals; (E) Expected of the major construction companies due to increased upturn in the economy. This is expected to create healthy order book for all major companies in JFM10 as well as in coming years. Financial Performance Financial Performance - JFM 09 Vs JFM 10 (Rs in bn) IVRCL L&T Madhucon NCC 09 (A) 10 (E) 09 (A) 10 (E) 09 (A) 10 (E) 09 (A) 10 (E) Net Sales 16.27 16.65 106.05 110.95 3.26 3.45 10.98 11.53 OPM 9% 7% 15% 16% 7% 9% 7% 9% NPM 5% 4% 9% 10% 2% 5% 2% 5%
Source: BSE India; Cygnus Research Note: (A) Actuals; (E) Expected

Financial Performance - JFM 09 Vs JFM 10 (Rs in m) BLK Sons Era Infra Gammon HCC 09 (A) 10 (E) 09 (A) 10 (E) 09 (A) 10 (E) 09 (A) 10 (E) Net Sales 2849.86 3109.94 9525.81 9716.33 19058.40 19439.57 9796.81 10234.58 OPM 3% 8% 14% 17% 10% 9% 15% 13% NPM 1% 4% 11% 6% 3% 2% 5% 4%
Source: BSE India; Cygnus Research Note: (A) Actuals; (E) Expected

Financial Performance - JFM 09 Vs JFM 10 (Rs in m) Nitco Punj Lloyd Simplex Infra Unitech 09 (A) 10 (E) 09 (A) 10 (E) 09 (A) 10 (E) 09 (A) 10 (E) Net Sales 1406.09 1480.75 19801.70 20989.80 13875.60 14479.19 3345.67 5819.31 OPM -20% -17% 9% 15% 7% 7% 44% 15% NPM -32% -29% 3% 9% 2% 3% 19% 10%
Source: BSE India; Cygnus Research Note: (A) Actuals; (E) Expected

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QPAC-Indian Infrastructure Industry- January March 2010 The OPM of Era Infra is estimated to be the highest at 17% and NPM of L&T and Unitech is estimated to be the highest at 10% in JFM10, which shows the operational and financial efficiency of these companies. In case of Nitco, the OPM and NPM were recorded to be the least at -17% and -29% respectively in JFM10. The operating profit for all other companies are under control as the Industry is slowly overcoming from the liquidity crunch which had earlier resulted in increase in the operational expenses. Cost Structure One of the major components of the cost structure is cost of raw materials; for overall industry it showed 40.06% in JFM10 as compared to 40.83% in JFM09. Sub contract expenditure in JFM10 has declined to 14.60% from 19.03% in JFM09. While staff cost plummeted to 6.23%, other expenses escalated to 20.30% in JFM10. Cost Structure (as Percentage of Net sales) - JFM 09 Vs JFM 10 Company BL Kashyap Era infra Gammon HCC Year 09 10 09 10 09 10 09 10 Stock 49.65 55.45 83.89 0.00 -0.63 -0.65 0.00 0.00 Raw materials 0.00 0.00 0.00 0.00 59.87 59.87 35.57 27.77 Sub Contract 0.00 0.00 0.00 0.00 7.90 8.05 0.00 0.00 Staff cost 41.16 29.69 1.91 0.00 3.93 3.93 8.49 9.98 Other Mfg. 0.00 0.00 0.00 0.00 0.00 0.00 37.47 46.05 Other expenses 6.14 7.36 0.23 83.15 18.37 19.81 3.08 3.00 Depreciation 1.69 1.43 1.97 1.77 1.20 1.20 3.10 3.27 Interest 2.14 3.53 4.99 7.07 3.23 3.20 6.63 5.10 Tax 0.83 1.58 2.46 2.53 2.38 2.38 2.86 1.06
Source: BSE India, Cygnus Research

Industry 09 10 4.52 0.92 40.83 40.06 19.03 14.60 6.50 6.23 4.27 4.63 12.29 20.30 1.23 1.19 3.03 2.83 2.98 2.88

Cost Structure (as Percentage of Net sales) - JFM 09 Vs JFM 10 Company IVRCL L&T Madhucon NCC Industry Year 09 10 09 10 09 10 09 10 09 10 Stock 0.00 0.00 0.65 0.63 0.00 0.00 1.97 1.08 4.52 0.92 Raw materials 28.94 28.84 45.87 45.21 26.21 52.00 28.00 36.89 40.83 40.06 Sub Contract 32.88 32.77 22.27 22.14 51.81 14.00 39.34 10.44 19.03 14.60 Staff cost 3.31 3.39 3.55 3.48 3.72 2.00 3.72 3.69 6.50 6.23 Other Mfg. 0.00 0.00 5.25 5.27 0.00 0.00 0.00 0.00 4.27 4.63 Other expenses 26.14 27.59 7.44 7.33 10.87 23.00 19.34 38.00 12.29 20.30 Depreciation 0.83 0.82 0.84 0.82 3.08 3.00 1.12 1.19 1.23 1.19 Interest 2.41 2.55 1.37 1.35 0.99 1.00 1.94 2.48 3.03 2.83 Tax 1.12 0.19 4.16 4.14 3.02 2.00 1.23 1.98 2.98 2.88
Source: BSE India, Cygnus Research

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QPAC-Indian Infrastructure Industry- January March 2010 Cost Structure (as Percentage of Net sales) - JFM 09 Vs JFM 10 Company NITCO Punj Lloyd Simplex Unitech Industry Year 09 10 09 10 09 10 09 10 09 10 Stock -29.54 -28.99 0.00 0.00 0.00 0.00 0.31 1.63 4.52 0.92 Raw materials 82.28 79.78 33.61 36.46 48.08 47.92 48.08 0.00 40.83 40.06 Sub Contract 0.00 0.00 23.52 0.00 0.00 0.00 0.00 0.00 19.03 14.60 Staff cost 5.03 4.97 8.01 8.79 31.45 31.04 7.99 2.88 6.50 6.23 Other Mfg. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4.27 4.63 Other expenses 62.23 60.93 26.25 39.62 13.49 13.59 0.00 80.82 12.29 20.30 Depreciation 3.11 3.07 1.81 1.68 1.59 1.55 0.93 0.23 1.23 1.19 Interest 8.93 8.65 3.18 3.73 2.83 2.81 45.05 16.08 3.03 2.83 Tax 0.35 0.36 0.64 1.51 0.63 0.63 12.00 6.09 2.98 2.88
Source: BSE India, Cygnus Research

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QPAC-Indian Infrastructure Industry- January March 2010

COMPANY ANALYSIS
1. B L Kashyap & Sons Ltd.
Quarter JFM 10 (E) 3109.94 233.26 44.58 109.70 85.27 164.25 49.27 114.98 8% 4% 30% Growth Rate % YoY 9% 168% -7% 80% 25% 258% 109% 417% (Rs in m) Full Year Ended March March Growth 09 (A) 10 (E) Rate % 14620.66 10377.63 -29% 1343.10 843.00 -37% 188.42 172.16 -9% 189.76 421.67 122% 204.11 336.24 65% 1169.03 585.41 -50% 380.65 193.85 -49% 788.38 391.57 -50% 9% 8% 5% 4% 33% 33%

Item Net Sales EBITDA Depreciation Interest Other Income PBT TAX PAT OPM NPM Tax Rate

JFM 09 (A) 2849.86 86.93 48.05 61.09 68.03 45.82 23.58 22.24 3% 1% 51%

AMJ 10 (P) 3546.89 237.34 45.24 113.13 87.01 165.98 53.11 112.87 7% 3% 32%

Source: Cygnus Research Note: A: Actuals; E: Estimated; P: Projected

2. Era Infra Engineering Ltd.

(Rs in m) Full Year Ended March March Growth 09 (A) 10 (E) Rate % 23765.20 34061.84 43% 4140.36 6208.83 50% 459.42 684.77 49% 1734.98 2515.31 45% 617.84 270.59 -56% 2563.80 3279.34 28% 538.09 974.66 81% 2025.71 2304.68 14% 17% 18% 9% 7% 21% 30%

Item Net Sales EBITDA Depreciation Interest Other Income PBT TAX PAT OPM NPM Tax Rate

JFM 09 (A) 9525.81 1330.94 187.95 475.67 642.82 1310.14 233.88 1076.26 14% 11% 18%

Quarter JFM 10 (E) 9716.33 1637.57 172.21 687.11 82.43 860.68 245.57 615.11 17% 6% 29%

AMJ 10 (P) 7287.24 1389.76 137.77 523.36 73.12 801.75 253.41 548.34 19% 7% 32%

Growth Rate % YoY 2% 23% -8% 44% -87% -34% 5% -43%

Source: Cygnus Research Note: A: Actuals; E: Estimated; P: Projected

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QPAC-Indian Infrastructure Industry- January March 2010

3. Gammon India Ltd.

(Rs in m) Full Year Ended March March Growth 09 (A) 10 (E) Rate % 36578.70 47651.47 30% 3362.90 4082.25 21% 639.50 0.00 -100% 1052.60 0.00 -100% 416.00 178.52 -57% 2086.80 4260.77 104% 682.10 0.00 -100% 1404.70 4260.77 203% 9% 9% 4% 9% 33% 0%

Item Net Sales EBITDA Depreciation Interest Other Income PBT TAX PAT OPM NPM Tax Rate

JFM 09 (A) 19058.40 1894.60 228.20 615.90 9.40 1059.90 453.80 606.10 10% 3% 43%

Quarter JFM 10 (E) 19439.57 1748.55 232.76 622.06 12.32 906.05 462.88 443.17 9% 2% 51%

AMJ 10 (P) 10926.00 1666.57 203.76 622.16 14.30 854.94 205.94 649.00 15% 6% 24%

Growth Rate % YoY 2% -8% 2% 1% 0% -15% 2% -27%

Source: Cygnus Research Note: A: Actuals; E: Estimated; P: Projected

4. Hindustan Construction Co. Ltd.

Quarter JFM 10 (E) 10234.58 1350.90 334.66 522.42 53.11 546.93 108.32 438.61 13% 4% 20% Growth Rate % YoY 4% -10% 10% -20% -78% -31% -61% -15% (Rs in m) Full Year Ended March March Growth 09 (A) 10 (E) Rate % 33137.62 35676.45 8% -10971.83 4399.47 -140% 1152.21 1272.36 10% 2105.05 2131.01 1% 588.26 141.37 -76% -13640.83 1137.47 -108% 392 314.22 -20% -14032.83 823.25 -106% -33% 12% -42% 2% -3% 28%

Item Net Sales EBITDA Depreciation Interest Other Income PBT TAX PAT OPM NPM Tax Rate

JFM 09 (A) 9796.81 1506.46 304.14 649.75 241.64 794.21 280.60 513.61 15% 5% 35%

AMJ 10 (P) 9876.57 1610.64 315.63 634.42 85.43 746.02 97.32 648.70 16% 7% 13%

Source: Cygnus Research Note: A: Actuals; E: Estimated; P: Projected

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QPAC-Indian Infrastructure Industry- January March 2010

5. I V R C L Infrastructures & Projects Ltd.

(Rs in m) Full Year Ended March March Growth 09 (A) 10 (E) Rate % 48818.86 51533.88352 6% 4217.8 4530.029615 7% 473.05 538.4178 14% 1306.13 1535.95 18% 299.12 223.7662 -25% 2737.74 2679.428015 -2% 478.07 653.5804 37% 2259.67 2025.85 -10% 9% 9% 5% 4% 17% 24%

Item Net Sales EBITDA Depreciation Interest Other Income PBT TAX PAT OPM NPM Tax Rate

JFM 09 (A) 16272.49 1419.68 134.39 391.80 86.81 980.30 181.48 798.82 9% 5% 19%

Quarter JFM 10 (E) 16654.89 1233.63 137.08 424.55 88.55 760.55 31.70 728.85 7% 4% 4%

AMJ 10 (P) 11199.10 977.68 133.37 404.86 40.21 479.66 170.36 309.30 9% 3% 36%

Growth Rate % YoY 2% -13% 2% 8% 2% -22% -83% -9%

Source: Cygnus Research Note: A: Actuals; E: Estimated; P: Projected

6. Larsen & Toubro Ltd.

(Rs in m) Full Year Ended March March Growth 09 (A) 10 (E) Rate % 339263.7 345444.0839 2% 37517.3 59056.64309 57% 3059.9 3894.27878 27% 3502.2 5242.835 50% 7397.8 9091.426 23% 38353 59010.95531 54% 12312.1 13082.69374 6% 26040.9 45928.26157 76% 11% 17% 8% 13% 32% 22%

Item Net Sales EBITDA Depreciation Interest Other Income PBT TAX PAT OPM NPM Tax Rate

JFM 09 (A) 106051.60 15870.30 889.40 1454.50 2306.30 15832.70 4408.80 9985.20 15% 9% 28%

Quarter JFM 10 (E) 110951.18 17686.08 910.48 1498.14 2352.43 17629.90 4588.09 11574.62 16% 10% 26%

AMJ 10 (P) 76305.39 18351.11 974.04 1120.89 2294.43 18550.61 2790.47 15760.14 24% 20% 15%

Growth Rate % YoY 5% 11% 2% 3% 2% 11% 4% 16%

Source: Cygnus Research Note: A: Actuals; E: Estimated; P: Projected

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QPAC-Indian Infrastructure Industry- January March 2010

7. Madhucon Projects Ltd.

Quarter JFM 10 (E) 3454.36 310.89 103.63 34.54 55.82 228.54 69.09 159.45 9% 5% 30% Growth Rate % YoY 6% 29% 3% 7% -19% 29% -30% 103% (Rs in m) Full Year Ended March March Growth 09 (A) 10 (E) Rate % 10356.99 11652.23 13% 1175.73 1299.91 11% 428.98 434.07 1% 131.35 214.46 63% 146.41 139.67 -5% 761.81 791.05 4% 268.69 272.22 1% 493.12 518.83 5% 11% 11% 5% 4% 35% 34%

Item Net Sales EBITDA Depreciation Interest Other Income PBT TAX PAT OPM NPM Tax Rate

JFM 09 (A) 3258.83 240.86 100.47 32.17 68.60 176.82 98.36 78.46 7% 2% 56%

AMJ 10 (P) 2833.77 380.47 107.64 57.34 24.52 240.01 43.21 196.80 13% 7% 18%

Source: Cygnus Research Note: A: Actuals; E: Estimated; P: Projected

8. Nagarjuna Construction Co. Ltd.

(Rs in m) Full Year Ended March March Growth 09 (A) 10 (E) Rate % 41514.08 44080.62 6% 3736.71 4440.21 19% 533.02 526.12 -1% 963.59 1260.71 31% 41.63 50.03 20% 2281.73 2703.41 18% 743.14 908.23 22% 1538.59 1795.18 17% 9% 10% 4% 4% 33% 34%

Item Net Sales EBITDA Depreciation Interest Other Income PBT TAX PAT OPM NPM Tax Rate

JFM 09 (A) 10980.50 837.65 122.65 212.84 14.79 516.95 134.86 382.09 8% 3% 26%

Quarter JFM 10 (E) 11529.53 1142.71 137.12 286.43 14.26 733.42 228.56 504.86 10% 4% 31%

AMJ 10 (P) 10510.85 1436.44 141.22 305.16 12.31 1002.37 456.10 546.27 14% 5% 46%

Growth Rate % YoY 5% 36% 12% 35% -4% 42% 69% 32%

Source: Cygnus Research Note: A: Actuals; E: Estimated; P: Projected

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QPAC-Indian Infrastructure Industry- January March 2010

9. Nitco Ltd.
(Rs in m) Full Year Ended March March Growth 09 (A) 10 (E) Rate % 6,054.12 4,470.47 -26% 859.41 -1,216.27 -242% 144.10 203.81 41% 235.56 263.73 12% 0.93 1.94 109% 480.68 -1,681.86 -450% 123.88 32.00 -74% 356.80 -1,713.87 -580% 14% -27% 6% -38% 26% -2%

Item Net Sales EBITDA Depreciation Interest Other Income PBT TAX PAT OPM NPM Tax Rate

JFM 09 (A) 1406.09 -281.08 43.70 125.58 0.71 -449.65 4.99 -454.64 -20% -32% -1%

Quarter JFM 10 (E) 1480.75 -246.99 45.45 128.09 0.72 -419.81 5.26 -425.07 -17% -29% -1%

AMJ 10 (P) 1471.55 334.69 52.96 50.48 0.51 231.76 27.63 204.13 23% 14% 12%

Growth Rate % YoY 5% -12% 4% 2% 2% -7% 5% -7%

Source: Cygnus Research Note: A: Actuals; E: Estimated; P: Projected

10. Punj Lloyd Ltd.

(Rs in m) Full Year Ended March March Growth 09 (A) 10 (E) Rate % 69,456.40 80,055.70 15% 8,068.80 9,392.20 16% 1,194.80 1,338.07 12% 1,942.80 2,906.31 50% 16.60 361.22 2076% 4,947.80 5,509.04 11% 1,736.80 1,411.54 -19% 3,211.00 4,097.50 28% 12% 12% 5% 5% 35% 26%

Item Net Sales EBITDA Depreciation Interest Other Income PBT TAX PAT OPM NPM Tax Rate

JFM 09 (A) 19801.70 1706.20 359.20 629.40 5.50 723.10 126.80 596.30 9% 3% 18%

Quarter JFM 10 (E) 20989.80 3176.00 352.17 783.41 93.72 2134.14 317.54 1816.60 15% 9% 15%

AMJ 10 (P) 20784.92 3282.16 318.47 799.08 123.45 2288.07 324.64 1963.43 16% 9% 14%

Growth Rate % YoY 6% 86% -2% 24.47% 1604% 195% 150% 205%

Source: Cygnus Research Note: A: Actuals; E: Estimated; P: Projected

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QPAC-Indian Infrastructure Industry- January March 2010

11. Simplex Infrastructures Ltd.

Quarter JFM 10 (E) 14479.19 1078.88 225.12 406.23 31.00 478.53 91.00 387.53 7% 3% 19% Growth Rate % YoY 4% 11% 2% 4% 3% 24% 4% 30% (Rs in m) Full Year Ended March March Growth 09 (A) 10 (E) Rate % 46947.80 46495.89 -1% 3749.20 4230.68 13% 771.90 1380.12 79% 1417.90 1304.53 -8% 125.90 118.60 -6% 1685.30 1664.63 -1% 477.30 510.50 7% 1208.00 1154.13 -4% 8% 9% 3% 2% 28% 31%

Item Net Sales EBITDA Depreciation Interest Other Income PBT TAX PAT OPM NPM Tax Rate

JFM 09 (A) 13875.60 968.90 220.30 392.30 30.10 386.40 87.80 298.60 7% 2% 23%

AMJ 10 (P) 11356.77 1062.98 388.21 361.50 14.64 327.91 150.46 177.44 9% 2% 46%

Source: Cygnus Research Note: A: Actuals; E: Estimated; P: Projected

12. Unitech Ltd.

(Rs in m) Full Year Ended March March Growth 09 (A) 10 (E) Rate % 18,522.50 19,171.21 4% 10,493.40 7,045.12 -33% 100.40 57.85 -42% 6,853.20 3,932.52 -43% 6,026.60 3,272.24 -46% 9,566.40 6,326.99 -34% 2,169.80 1,485.83 -32% 7,396.60 4,841.16 -35% 57% 37% 40% 25% 23% 23%

Item Net Sales EBITDA Depreciation Interest Other Income PBT TAX PAT OPM NPM Tax Rate

JFM 09 (A) 3345.67 1480.24 31.23 1507.13 1345.61 1287.49 401.45 886.04 44% 19% 31%

Quarter JFM 10 (E) 5819.31 853.77 13.25 935.62 1165.44 1070.34 354.23 716.11 15% 10% 33%

AMJ 10 (P) 6226.66 4114.52 10.23 1147.22 640.99 3598.06 371.94 3226.12 66% 47% 10%

Growth Rate % YoY 74% -42% -58% -38% -13% -17% -12% -19%

Source: Cygnus Research Note: A: Actuals; E: Estimated; P: Projected

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QPAC-Indian Infrastructure Industry- January March 2010

SOURCES & METHODS FOR COMPANY PROJECTIONS

Sources Company annual reports Press releases BSE India Research reports related to Economy, Industry and Company Methods Understanding companies product services Understanding industry and economic indicators and general economic scenario Understanding the dynamics between the companies and the industry in relation to demand and supply, technology, regulation, inflation, etc Understanding recent strategies and initiatives taken by companies such as product launches, capacity additions and M&As Making revenue projections based on the expected business strategies and financial analysis Validating the financial projections of the company with the overall business strategy Calculating the cost structure on the basis of sales and past and present trends in the industry Analyzing quarterly growth rates and growth rates of last 8 quarters

The cut-off date for JFM quarter results is April 20, 2010. Quarterly performance analysis of companies announcing their results after this date is based on Cygnus estimates.

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