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CRISIL IERIndependentEquityResearch

Navin Fluorine Apollo Hospitals International Ltd Enterprise Ltd

Detailed Report

Q4FY12 Result Update

Enhancing investment decisions

CRISIL IERIndependentEquityResearch
Explanation of CRISIL Fundamental and Valuation (CFV) matrix
The CFV Matrix (CRISIL Fundamental and Valuation Matrix) addresses the two important analysis of an investment making process Analysis of Fundamentals (addressed through Fundamental Grade) and Analysis of Returns (Valuation Grade) The fundamental grade is assigned on a five-point scale from grade 5 (indicating Excellent fundamentals) to grade 1 (Poor fundamentals) The valuation grade is assigned on a fivepoint scale from grade 5 (indicating strong upside from the current market price (CMP)) to grade 1 (strong downside from the CMP).

CRISIL Fundamental Grade

5/5 4/5 3/5 2/5 1/5

Assessment
Excellent fundamentals Superior fundamentals Good fundamentals Moderate fundamentals Poor fundamentals

CRISIL Valuation Grade

5/5 4/5 3/5 2/5 1/5

Assessment
Strong upside (>25% from CMP) Upside (10-25% from CMP) Align (+-10% from CMP) Downside (negative 10-25% from CMP) Strong downside (<-25% from CMP)

About CRISIL Limited

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About CRISIL Research

CRISIL Research is India's largest independent and integrated research house. We provide insights, opinions, and analysis on the Indian economy, industries, capital markets and companies. We are India's most credible provider of economy and industry research. Our industry research covers 70 sectors and is known for its rich insights and perspectives. Our analysis is supported by inputs from our network of more than 4,500 primary sources, including industry experts, industry associations, and trade channels. We play a key role in India's fixed income markets. We are India's largest provider of valuations of fixed income securities, serving the mutual fund, insurance, and banking industries. We are the sole provider of debt and hybrid indices to India's mutual fund and life insurance industries. We pioneered independent equity research in India, and are today India's largest independent equity research house. Our defining trait is the ability to convert information and data into expert judgments and forecasts with complete objectivity. We leverage our deep understanding of the macro economy and our extensive sector coverage to provide unique insights on micro-macro and cross-sectoral linkages. We deliver our research through an innovative web-based research platform. Our talent pool comprises economists, sector experts, company analysts, and information management specialists.

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Analyst Disclosure
Each member of the team involved in the preparation of the grading report, hereby affirms that there exists no conflict of interest that can bias the grading recommendation of the company.

Disclaimer:
This Company-commissioned CRISIL IER report is based on data publicly available or from sources considered reliable. CRISIL Ltd. (CRISIL) does not represent that it is accurate or complete and hence, it should not be relied upon as such. The data / report is subject to change without any prior notice. Opinions expressed herein are our current opinions as on the date of this report. Nothing in this report constitutes investment, legal, accounting or tax advice or any solicitation, whatsoever. The subscriber / user assume the entire risk of any use made of this data / report. CRISIL especially states that, it has no financial liability whatsoever, to the subscribers / users of this report. This report is for the personal information only of the authorised recipient in India only. This report should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person especially outside India or published or copied in whole or in part, for any purpose.

YEARS

Navin Fluorine International Ltd

Positive surprise on revenues, earnings lower than expected
Fundamental Grade Valuation Grade Industry 3/5 (Good fundamentals) 3/5 (CMP is aligned) Chemicals

MAKING MA RK
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May 25, 2012 Fair Value CMP CFV MATRIX

Excellent Fundamentals

Rs 396** Rs 396

Navin Fluorine International Ltds (Navins) Q4FY12 earnings were below CRISIL Researchs estimates even though revenues outperformed, driven by higher-than-expected income from the core business as well as income from certified emission reductions (CER). However, employee costs led to lower operating margins. Going forward, we expect fluorspar prices to remain high on account of export restrictions from China (major producer and consumer of fluorspar). However, given the strong demand for refrigerants, especially in the domestic market, we believe that Navin will be able to maintain its EBITDA margin at ~10% as far as the chemicals business is concerned. We have, accordingly, revised our FY13 estimates. Further, we expect a significant decline in CER income on account of a decline in CER prices. We maintain our fundamental grade of 3/5 on Navin. Q4FY12 result analysis Revenues declined 8% y-o-y to Rs 979 mn (lower by 7% q-o-q) as income from the chemicals business as well as CER income declined 8% and 12%, respectively, y-o-y. According to the management, realisations were lower in Q4 compared to average realisations in 9MFY12, which led to lower sales volumes in the chemicals business. EBITDA margin at 13.2% is significantly lower y-o-y as well as q-o-q (36.2% in Q4FY11 and 31.9% in Q3FY12) due to rise in raw material costs. While fluorspar prices declined in the latter half of the year, advance purchases by Navin led to higher raw material costs in Q4. Raw material costs as a percentage of sales was 47% compared to ~40% in Q3FY12. Employee costs also grew by 37% y-o-y during Q4FY12 as the company ramped up its employee strength in the specialty and CRAMS businesses. During Q4, Navin has written back the provision for diminution in value of its investments in Mafatlal Industries Ltd (MIL) and Mafatlal Denim Ltd (MDL), amounting to Rs 749 mn, as net worth of both companies has turned positive. Adjusting for one-time write-back of provision for diminution, adjusted PAT of Rs 35 mn is 91% lower y-o-y (-90% q-o-q). Adjusted PAT margin is 2.2% compared to 23.9% in Q4FY11 (21.1% q-o-q). Valuation: Current market price is aligned** We have rolled forward our valuation to FY14, and arrived at cum-dividend fair value of Rs 396 per share and ex-dividend fair value of Rs 329 per share. Navin has announced the final and a special dividend of Rs 6.5/share and Rs 60/share, respectively. Subject to shareholders approval, the special and final dividends will be paid on June 21, 2012. As CMP of Rs 396 is aligned with our cum-dividend fair value, the valuation grade is 3/5. adjusted PAT margin of 2.2% was below our estimates as an increase in raw material and

5
Fundamental Grade

4 3 2 1

Poor Fundamentals

Valuation Grade
Strong Downside Strong Upside
52.0% 52.0% 4.2% 5.3% 4.2% 5.1% 38.5% 38.7% Dec-11 DII Mar-12 Others

KEY STOCK STATISTICS

4921/16222 NIFTY/SENSEX NSE/BSE ticker NAVINFLUOR/NAVIN Face value (Rs per share) 10 Shares outstanding (mn) 9.8 Market cap (Rs mn)/(US$ mn) 3,865/69 Enterprise value (Rs mn)/(US$ mn) 4,874/87 52-week range (Rs)/(H/L) 440/269 Beta 1.1 Free float (%) 61% Avg daily volumes (30-days) 83,544 Avg daily value (30-days) (Rs mn) 34.5

SHAREHOLDING PATTERN
100% 90% 80% 70% 60% 50% 40% 30% 2.5% 1.1% 38.5% 3.7% 4.0% 57.9% 53.9%

KEY FORECAST
(Rs mn) Operating income EBITDA Adj Net income Adj EPS-Rs EPS growth (%) Dividend Yield (%) RoCE (%) RoE (%) PE (x) P/BV (x) EV/EBITDA (x) # based on abridged financials NM: Not meaningful; CMP: Current market price Source: Company, CRISIL Research estimates FY10 4,318 1,464 824 81.6 44.6 4.1 45.8 31.3 4.9 1.3 2.3 FY11 4,315 1,213 712 72.9 (10.7) 4.5 30.8 22.4 5.4 1.1 3.4 FY12# 7,246 2,505 1,425 146.0 100.1 18.9 48.0 34.6 2.7 0.8 1.5 FY13E 5,967 1,167 758 77.7 (46.8) 6.3 16.2 14.9 5.1 0.7 3.0 FY14E 5,880 652 408 41.8 (46.3) 1.9 6.8 7.4 9.5 0.7 5.7

20% 10% 0%

38.5%

Jun-11 Promoter

Sep-11 FII

PERFORMANCE VIS--VIS MARKET

Returns 1-m NAVIN NIFTY 9% -6% 3-m 16% -9% 6-m 15% 3% 12-m 43% -9%

ANALYTICAL CONTACT
Mohit Modi (Director) Anant Damani Bhaskar Bukrediwala Client servicing desk +91 22 3342 3561 clientservicing@crisil.com mohit.modi@crisil.com anant.damani@crisil.com bhaskar.bukrediwala@crisil.com

**Cum dividend fair value of Rs 396. Ex-dividend fair value is Rs 329

For detailed initiating coverage report please visit: www.ier.co.in CRISIL Independent Equity Research reports are also available on Bloomberg (CRI <go>) and Thomson Reuters.

CRISIL IERIndependentEquityResearch
Q4FY12 Result Summary (Standalone)
(Rs mn) Revenue from core business Revenue from CER Other operating income Operating income Raw material cost Raw material cost (% of net sales) Employee cost Other expenses EBITDA EBITDA margin Depreciation EBIT Interest and finance charges Operating PBT Other Income Extraordinary income / (expense) PBT Tax Reported PAT Adj PAT Adj PAT margin No of equity shares (mn) Adj EPS (Rs) Source: Company, CRISIL Research Q4FY12 979 567 20 1,566 738 47.1% 138 484 207 13.2% 48 158 7 151 35 749 935 151 784 35 2.2% 9.8 3.6 Q3FY12 1,051 544 4 1,599 636 39.8% 93 359 511 31.9% 47 464 13 451 47 498 160 338 338 21.1% 9.8 34.6 Q4FY11 1,063 645 3 1,711 512 29.9% 100 479 620 36.2% 38 582 14 567 40 607 198 409 409 23.9% 9.8 41.9 q-o-q (%) -7% 4% NM -2% 16% 733 bps 48% 35% -60% -1875 bps 3% -66% -45% -66% -26% 88% -6% 132% -90% -1891 bps 0% -90% y-o-y (%) -8% -12% NM -8% 44% 1716 bps 37% 1% -67% -2303 bps 26% -73% -52% -73% -13% 54% -24% 92% -91% -2167 bps 0% -91% FY12 4,492 2,519 27 7,039 2,468 54.9% 409 1,665 2,497 35.5% 177 2,320 35 2,284 161 749 3,194 882 2,312 1,563 22.2% 9.8 160.2 FY11 3,514 783 11 4,307 1,716 48.8% 298 1,166 1,127 26.2% 135 992 36 956 104 1,060 343 716 716 16.6% 9.8 73.4 y-o-y (%) 28% 222% 160% 63% 44% 610 bps 37% 43% 121% 930 bps 31% 134% -1% 139% 55% n.m. 201% 157% 223% 118% 557 bps 0% 118%

Q4FY12 Result Summary (Consolidated)

(Rs mn) Revenue from core business Revenue from CER Other operating income Operating income Raw material cost Raw material cost (% of net sales) Employee cost Other expenses EBITDA EBITDA margin Depreciation EBIT Interest and finance charges Operating PBT Other Income Extraordinary income / (expense) PBT Tax Reported PAT Share of profit / (loss) in associates Minority interest Reported PAT after minority interest Adj PAT Adj PAT margin No of equity shares (mn) Adj EPS (Rs) Source: Company, CRISIL Research FY12 4,700 2,519 27 7,247 2,553 54.3% 490 1,698 2,505 34.6% 188 2,317 36 2,282 8 749 3,039 886 2,153 22 1 2,174 1,425 19.7% 9.8 146.0 FY11 3,514 783 11 4,307 1,716 48.8% 298 1,168 1,125 26.1% 138 987 36 951 106 1,057 344 713 0 713 713 16.6% 9.8 73.1 y-o-y (%) 34% 222% 160% 68% 49% 547 bps 64% 45% 123% 845 bps 36% 135% -1% 140% -92% NM 187% 158% 202% NM NM 205% 100% 310 bps 0% 100%

The core chemicals business grew by 34% in FY12, led by strong growth in realisations both in domestic and export markets Adjusting for non-recurring expenses, the core business posted EBITDA margin of ~9% in FY12

Navin Fluorine International Ltd

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Revenue and growth trend

(Rs mn) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 46.0% 45.7% 139 29.2% 611 35.9% 641 768 544 31.9% 567 (%) 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

PAT and PAT margin

(Rs mn) 700 600 500 400 300 200 100 0
Q4FY10 Q1FY11

30.9% 23.9% 17.6% 10.6% 7.1% 2.6% 31

33.0%

35% 30% 21.1% 25% 20% 15% 10% 2.2% 5% 0%

16.7% 11.5% 13.2%

726

784

941

1,096

1,309

1,153

1,055

1,000

152

55
Q2FY11

100
Q3FY11

409
Q4FY11

602
Q1FY12

633
Q2FY12

338 35
Q3FY12 Q4FY12 Oct-11

Q1FY11

Q2FY11

Q3FY11

Q4FY11

Q1FY12

Q2FY12

Q3FY12

Revenue-Core Business EBITDA margin (RHS)

CER Income

Q4FY12

PAT

PAT margin (RHS)

Source: Company, CRISIL Research

Source: Company, CRISIL Research

Strong growth across all segments of core business

(Rs mn) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% FY08 Regrigerants FY09 Bulk FY10 FY11 FY12 Speciality/CRAMS 1,162 1,121 1,030 1,604 1,968 671 596 770 987 853 1,075 908 1,178 1,608

CER prices on a decline

16.0 14.0 12.0 10.0

808

8.0 6.0 4.0 2.0

May-09 May-11 Mar-09 Mar-11 Apr-10 Feb-10 Sep-09 Dec-09 Nov-10 Aug-10 Dec-11 Aug-11 Feb-12 Jun-10 Jan-11 Apr-12 Jul-09

EUR/CER

Source: Company, CRISIL Research

Source: Industry, CRISIL Research

Share price movement

160 140 120 100 80 60 40 20 0
May-12 May-11 Mar-09 Mar-10 Mar-11 Dec-08 Dec-10 Nov-11 Dec-09 Sep-09 Sep-10 Aug-11 Feb-12 Jan-08 Oct-08 Oct-07 Apr-08 Jul-08 Jun-09 Jun-10

Fair value movement since initiation**

(Rs) 500 450 400 350 300 250 200 150 100 50 0
Oct-10 Nov-10 Dec-10 Oct-11 Nov-11 Dec-11 Jan-11 Jun-11 May-11 Jan-12 May-12 Mar-11 Jul-11 Feb-12 Sep-10 Aug-11 Mar-12 Apr-11

('000) 2,500 2,000 1,500 1,000 500 0

Navin

NIFTY

Total Traded Quantity(RHS)

CRISIL Fair Value

Navin

-indexed to 100 Source: NSE, CRISIL Research ** Ex-dividend fair value of Rs 329/share Source: NSE, BSE, CRISIL Research

CRISIL IERIndependentEquityResearch
MANAGEMENT MEETINGS KEY TAKEAWAYS
On current business environment Raw material prices have corrected during Q4FY12. However, the management expects long-term prices of fluorspar to remain high on account of restrictions on exports by the Chinese government. The demand environment for refrigerant gases is expected to remain strong, especially in the domestic market, driven by growth in the air conditioner market. HCFC 22 is a costeffective product compared to its alternatives, so will remain in demand in developing nations. Further, with uncertainty on the current CER framework, the global manufacturing capacity of refrigerants will also reduce in the future, benefitting refrigerant producers in other countries including India. The specialty chemicals and CRAMS businesses will be key growth drivers going forward. Navin plans to enhance their engagement with global and Indian pharma and agrochemical companies. It may also add more capacity in the specialty chemicals business during FY13.

On CER income There is uncertainty on what the CER framework would be beyond 2013. It is difficult to predict how it will shape up. Costs incurred by Navin for incineration of harmful gases are not significant. Therefore, compliance with emission regulations will not be expensive even in the absence of a CER incentive.

Navin Fluorine International Ltd

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EARNINGS ESTIMATES REVISED DOWNWARDS

FY13E Particulars Core revenues CER income Total revenue EBITDA EBITDA margin PAT PAT margin EPS Unit (Rs mn) (Rs mn) (Rs mn) (Rs mn) % (Rs mn) % Rs Old 4,404 1,102 5,506 1,437 26.1 1,032 18.7 105.7 New 5,183 784 5,967 1,167 19.6 758 12.7 77.7 % change 17.7% -28.9% 8.4% -18.8% -653 bps -26.5% -603 bps -26.5% FY14E New 5,880 5880 652 11.1% 408 6.9 41.8

Source: CRISIL Research estimate

Reasons for changes in estimates

Line item Revenues FY13 FY14 Introducing FY14 estimates. We expect the core chemicals business to register revenue growth of 13% over FY13. Our projections factor in realisation growth of ~7% and volume growth of 6%. Both domestic and export markets are expected to grow. We have not assumed any CER income due to the uncertainty on the current framework of incentivising the cut in emissions of HFC 23 We expect the core chemicals business to continue its growth momentum in FY13 led primarily by domestic demand. However, we expect growth in the chemicals business to be 10% compared to 33% in FY12 on account of flat growth in export realisations and slower realisation growth in the domestic market. Our earlier estimate of CER income factored in CER realisation of EUR 7/ CER and sales volume of 2.4 mn CERs. Since the traded CER prices are quoting at ~EUR 3.5-4.0 per CER, we have factored in realisation of EUR 4.0 per CER for Navin. We have also assumed sales volume of 2.8 mn CERs as guided by the management.

EBITDA margins

The chemicals business reported EBITDA margin of ~9% in FY12, adjusted for non-recurring expenses. We believe the current margin is sustainable and expect the chemicals business to post EBITDA margin of 9.3% in FY13.

Expect EBITDA margin to expand to 11.1% due to higher realisations compared to FY13 and rise in revenue contribution of specialty chemicals and CRAMS businesses, which are expected to have higher margins. Lower on account of absence of CER income. However, the core chemicals business PAT margin is expected to expand to 6.6%, 80 bps higher compared to FY13.

PAT margins

Lower on account of lower operating profitability as we have factored in lower CER income.

CRISIL IERIndependentEquityResearch
Valuation Grade: 3/5

We have used the SoTP method to value Navin. The core business operations are valued by the price-to-earnings (P/E) method and the non-operating assets are valued on a case-tocase basis. We have arrived at ex-dividend fair value of Rs 329 per share per share. Our cumdividend fair value is Rs 396 per share. Based on the current market price (currently trading cum-dividend) the assigned valuation grade is 3/5. Value per share post Value per Valuation Post tax CER income in FY13 share (Rs) Discount discount (Rs) Rationale

47

25%

35

Expect Navin to sell 2.8 mn CERs at EUR 4.0 per CER

Includes investments in FDs, FMPs and liquid funds by Navin as of FY12. We Investments in FD, FMP and other liquid instruments 80 25% 60 have lowered the 40% discount rate on cash applied earlier to 25% as we believe that Navin is more likely to pay surplus funds as dividends. Further, remaining cash worth Rs 32 per share has not been included in the fair value as the same is expected to be utilised towards future capex plans and on-going operations Commercial real estate property in Lower Parel Commercial real estate property in Nariman Point, owned by Navins subsidiary Sulakshana Securities Ltd Preference shares worth Rs 300 mn redeemed in FY12 and another Rs 300 mn Preference shares in Mafatlal Industries Ltd 31 25% 23 expected to be redeemed in FY13. We had earlier discounted the receivables from this investment at 50%. However, due to an increased likelihood of redemption in FY13, we have lowered the discount rate to 25% Equity investment in Mafatlal Denim Ltd Value from non-core assets Core business valuation Fair value (ex-dividend) Final and special dividend for FY12 Fair value (cumdividend) 16 263 106 369 67 50% 8 223 106 329 67 396 Based on P/E multiple of 4x the core business EPS of FY14 We remain conservative about the timing of cash flows to Navin, although MDL has turned profitable 42 42 Rental income from the property valued at 10% capitalisation rate 55 55 Rental income from the property valued at 10% capitalisation rate

Navin Fluorine International Ltd

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One-year forward P/E band

(Rs) 900 800 700 600 500 400 300 200 100 0

One-year forward EV/EBITDA band

(Rs mn) 12,000 10,000 8,000 6,000 4,000 2,000 0

Nov-11

Oct-08

Oct-09

Oct-10

Oct-09

Oct-10

Oct-08

Nov-11

Jan-10

Jan-11

Jan-09

Jan-09

Jan-10

Feb-12

Jan-11

Jul-08

Jul-09

Jul-10

Jul-08

Jul-09

May-11

May-11

May-12

Feb-12
4x

Jul-10

Navin

2x

3x

4x

5x

6x

EV

1x

2x

3x

Source: NSE, CRISIL Research

Source: NSE, CRISIL Research

P/E premium / discount to NIFTY

0% -10% -20% -30% -40% -50% -60% -70% -80% -90%

P/E movement
(Times) 7 6 5 4 3 2 1 0 -1 std dev +1 std dev

Oct-09

May-11

Nov-11

Oct-08

Oct-10

Jan-09

Jan-10

Jan-11

Jul-08

Jul-09

Jul-10

Jul-08

Jul-09

Jul-10

May-11

May-12

Oct-08

Oct-09

Oct-10

Nov-11

Feb-12

Apr-08

Apr-09

Jan-09

Apr-10

Jan-10

Jan-11

Aug-11

Premium/Discount to NIFTY

Median premium/discount to NIFTY

1yr Fwd PE (x)

Median PE

Source: NSE, CRISIL Research

Source: NSE, BSE, CRISIL Research

CRISIL IER reports released on Navin Fluorine International Ltd

Fundamental Date 13-Sept-10 25-Oct-10 16-Feb-11 23-May-11 01-Nov-11 05-Mar-12 24-May-12 Nature of report Initiating coverage* Q2FY11 result update Q3FY11 result update Q4FY11 result update Detailed report Q3FY12 result update Q4FY12 result update grade 2/5 2/5 2/5 2/5 3/5 3/5 3/5 Fair value Rs 300 Rs 300 Rs 265 Rs 304 Rs 329 Rs 329 Rs 396** Valuation grade 3/5 3/5 3/5 3/5 2/5 3/5 3/5 CMP (on the date of report) Rs 292 Rs 296 Rs 261 Rs 279 Rs 391 Rs 354 Rs 396

**Cum-dividend fair value is Rs 396. Ex-dividend fair value of Rs 329

May-12

Apr-08

Apr-09

Apr-10

Feb-12

Aug-11

-100%

May-12

Apr-10

Aug-11

Apr-08

Apr-09

Apr-10

Aug-11

Apr-08

Apr-09

CRISIL IERIndependentEquityResearch
Annexure: Financials
Income statement
(Rs m n) Operating incom e EBITDA EBITDA m argin Depreciation EBIT Interest Operating PBT Other income Exceptional inc/(exp) PBT Tax provision Minority interest PAT (Reported) Less: Exceptionals Adjusted PAT FY10 4,318 1,464 33.9% 114 1,351 25 1,326 (22) 1 1,305 480 825 1 824 FY11 4,315 1,213 28.1% 138 1,074 31 1,043 13 0 1,056 344 712 0 712 FY12# 7,246 2,505 34.6% 188 2,317 36 2,281 8 749 3,039 886 (21) 2,174 749 1,425 FY13E 5,967 1,167 19.6% 204 963 44 920 180 1,100 363 (21) 758 758 FY14E 5,880 652 11.1% 227 425 40 386 191 576 190 (21) 408 408

Balance Sheet
(Rs m n) Liabilities Equity share capital Reserves Minorities Net w orth Convertible debt Other debt Total debt Def erred tax liability (net) Total liabilities Assets Net fixed assets Capital WIP Total fixed assets Investm ents Current assets Inventory Sundry debtors Loans and advances Cash & bank balance Marketable securities Total current assets Total current liabilities Net current assets Intangibles/Misc. expenditure Total assets FY10 101 2,878 2,979 114 114 210 3,303 1,664 278 1,942 8 472 390 884 808 2,554 1,359 1,194 158 3,303 FY11 98 3,287 0 3,384 491 491 191 4,066 1,837 364 2,201 478 551 578 1,069 177 2,376 1,137 1,238 149 4,066 FY12# 98 4,679 63 4,840 946 946 286 6,072 2,265 364 2,629 1,590 886 665 394 1,068 3,013 1,569 1,444 410 6,072 FY13E 98 5,154 63 5,315 796 796 286 6,398 2,161 364 2,525 1,612 819 776 324 1,200 3,120 1,269 1,851 410 6,398 FY14E 98 5,477 64 5,639 796 796 286 6,721 2,307 364 2,671 1,634 934 886 319 1,026 3,165 1,159 2,006 410 6,721

Ratios
FY10 Grow th Operating income (%) EBITDA (%) Adj PAT (%) Adj EPS (%) Profitability EBITDA margin (%) Adj PAT Margin (%) RoE (%) RoCE (%) RoIC (%) Valuations Price-earnings (x) Price-book (x) EV/EBITDA (x) EV/Sales (x) Dividend payout ratio (%) Dividend yield (%) B/S ratios Inventory days Creditors days Debtor days Working capital days Gross asset turnover (x) Net asset turnover (x) Sales/operating assets (x) Current ratio (x) Debt-equity (x) Net debt/equity (x) Interest coverage 2.6 42.8 44.6 44.6 FY11 (0.1) (17.2) (13.6) (10.7) FY12# 67.9 106.6 100.1 100.1 FY13E (17.7) (53.4) (46.8) (46.8) FY14E (1.4) (44.2) (46.3) (46.3)

33.9 19.1 31.3 45.8 34.1

28.1 16.5 22.4 30.8 27.5

34.6 19.7 34.6 48.0 45.6

19.6 12.7 14.9 16.2 29.9

11.1 6.9 7.4 6.8 17.4

Cash flow
(Rs m n) Pre-tax profit Total tax paid Depreciation Working capital changes Net cash from operations Cash from investm ents Capital expenditure Investments and others Net cash from investm ents Cash from financing Equity raised/(repaid) Debt raised/(repaid) Dividend (incl. tax) Others (incl extraordinaries) Net cash from financing Change in cash position Closing cash FY10 1,304 (441) 114 288 1,264 (142) 71 (71) 0 (413) (165) 42 (536) 657 808 FY11 1,056 (363) 138 (666) 166 (398) (469) (867) (136) 377 (173) 2 71 (630) 177 FY12# 2,290 (791) 188 425 2,112 (616) (1,112) (1,728) 0 455 (854) 906 507 891 1,068 FY13E 1,100 (363) 204 (275) 666 (100) (22) (122) (150) (284) 22 (411) 132 1,200 FY14E 576 (190) 227 (330) 283 (373) (22) (395) (85) 22 (63) (175) 1,026

4.9 1.3 2.3 0.8 20.1 4.1

5.4 1.1 3.4 1.0 24.3 4.5

2.7 0.8 1.5 0.5 33.7 18.9

5.1 0.7 3.0 0.6 32.2 6.3

9.5 0.7 5.7 0.6 18.0 1.9

65 159 53 45 1.7 2.6 2.2 1.9 0.0 (0.2) 54.1

70 113 56 61 1.6 2.5 2.1 2.1 0.1 0.1 34.4

68 59 52 36 2.4 3.5 3.0 1.9 0.2 (0.0) 65.0

68 60 55 31 1.8 2.7 2.3 2.5 0.1 (0.1) 22.1

70 60 55 51 1.6 2.6 2.3 2.7 0.1 (0.0) 10.7

Quarterly financials
(Rs m n) Operating incom e Change (q-o-q) EBITDA Change (q-o-q) EBITDA m argin PAT Adj PAT Change (q-o-q) Adj PAT m argin Adj EPS Q4FY11 1,711 82% 620 294% 36.2% 409 409 308% 23.9% 41.9 Q1FY12 1,949 14% 896 45% 46.0% 602 602 47% 30.9% 61.7 Q2FY12 1,920 -1% 878 -2% 45.7% 633 633 5% 33.0% 64.9 Q3FY12 1,599 -17% 511 -42% 31.9% 338 338 -47% 21.1% 34.6 Q4FY12 1,566 -2% 207 -60% 13.2% 784 35 -90% 2.2% 3.6

Per share
Adj EPS (Rs) CEPS Book value Dividend (Rs) Actual o/s shares (mn) FY10 81.6 92.9 295.1 16.4 10.1 FY11 72.9 87.1 346.7 17.7 9.8 FY12# 146.0 165.2 495.8 75.0 9.8 FY13E 77.7 98.6 544.5 25.0 9.8 FY14E 41.8 65.0 577.7 7.5 9.8

Source: CRISIL Research

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