Analysis

Gammon India
BSE: 509550
NSE: GAMMONIND
ISIN: INE259B01020
 Gammon India
Business Activities: - Engineering Procurement & Construction

Official Establishment:- 1922

Landmark Achievement:- Piling and Civil Foundation work at Gateway of

India in 1919

Present Employees:- Top Management (Strong talent) 3500 Nos; Officers

of pay roll & Staff:- 10, 000 Nos; Labor Staff of Daily wages basis:- 200,000
Nos.

Turn Over (2009-2010):- Stand-alone US$ 1 Billion

Group Turn-over US$ 1.5 Billion

Group Associates:- a. Subsidiary Companies -52 Nos

b. Overseas Subsidiaries:- 11 Nos
c. Associates 2 Nos.
 Sales Turn-over - Gammon India TOP LINE

%
Change
Mar'10 % Change % Change % Change
to Mar'10 to Mar'09 to Mar'08 to
Mar'11 Mar '11 Mar'09 Mar '10 Mar'08 Mar '09 Mar'07 Mar '08 Mar '07

23.99% 5,643.24 22.88% 4,551.24 57.95% 3,703.86 26.64% 2,344.91 1,851.69

Average Percentage Change in Sales Turnover = 32.86%

Percentage Change Sales Turnover

70.00%
57.95%
60.00%
50.00%
40.00%
23.99% 26.64%
30.00% 22.88%
20.00%
10.00%
0.00%
% Change Mar'10 % Change Mar'10 % Change Mar'09 % Change Mar'08
to Mar'11 to Mar'09 to Mar'08 to Mar'07
 Net Sales - Gammon India TOP LINE

% Change % Change % Change

Mar'10 to Mar'10 to Mar'09 to % Change Mar'08
Mar'11 Mar '11 Mar'09 Mar '10 Mar'08 Mar '09 to Mar'07 Mar '08 Mar '07
23.92% 5,557.97 22.62% 4,485.10 55.99% 3,657.86 26.64% 2,344.91 1,851.69

Average Percentage Change in Net Sales = 32.29%

Percentage ChangeNet Sales

60.00% 55.99%

50.00%
40.00%
26.64%
30.00% 23.92% 22.62%
20.00%
10.00%
0.00%
% Change Mar'10 % Change Mar'10 % Change Mar'09 % Change Mar'08
to Mar'11 to Mar'09 to Mar'08 to Mar'07
 Operating Profit - Gammon India MIDDLE LINE

%
Change
Mar'10 % Change % Change % Change
to Mar'10 to Mar'09 to Mar'08 to
Mar'11 Mar '11 Mar'09 Mar '10 Mar'08 Mar '09 Mar'07 Mar '08 Mar '07

-38.26% 249.65 22.38% 404.35 54.96% 330.4 19.07% 213.21 179.07

Average Percentage Change in Operating Profit = 14.54%

Percentage Change Operating Profit

60.00% 54.96%

40.00%
22.38% 19.07%
20.00%

0.00%
% Change % Change % Change % Change
-20.00%
Mar'10 to Mar'11 Mar'10 to Mar'09 Mar'09 to Mar'08 Mar'08 to Mar'07
-40.00%
-38.26%
-60.00%
 Operating Profit Ratio - Gammon India MIDDLE LINE

Year --> Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

Operating
Profit 249.65 404.35 330.4 213.21 179.07
Net Sales 5,557.97 4,485.10 3,657.86 2,344.91 1,851.69

Operating
Profit Ratio 4.49 9.02 9.03 9.09 9.67

Operating Profit Ratio

12.00
9.67
10.00 9.02 9.03 9.09

8.00

6.00
4.49
4.00

2.00

0.00
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
 Net Profit - Gammon India BOTTOM LINE

% Change % Change % Change % Change

Mar'10 to Mar Mar'10 to Mar'09 to Mar'08 to
Mar'11 '11 Mar'09 Mar '10 Mar'08 Mar '09 Mar'07 Mar '08 Mar '07

-5.78% 118.45 -10.51% 125.72 59.06% 140.48 -10.21% 88.32 98.36

Average Percentage Change in Net Profit = 08.14%

Percentage Change Net Profit

70.00%
59.06%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
-10.00% % Change Mar'10 to Mar'11 % Change Mar'10 to Mar'09 % Change Mar'09 to Mar'08 % Change Mar'08 to Mar'07

-20.00%
-5.78% -10.51% -10.21%
 Historical Graph of Share Price

250 235.1

200

Open
150
High
Low
100
68 Close
50

0
Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11

Period High: 235.10

Period Low: 68.00
Change in Market-cap: -63.2%
 Observation

Gammon performed exceptionally well in FY 2008-2009

as compared with over all performance during FY 2007
to FY 2011
Net Sales in FY 2011 have increased by 23.92% as
compared to FY 2010
Average Net Profit during FY 2007 to FY 2011 is 8.14%
Operating Profit is significantly low during March 2011 as
compared with Operating Profit during March 2010
Operating Profit ratio reduced by 4.49 in FY 2011 as
compared with operating profit ratio in FY 2010.
Negative change (-63.2 %) in Market Capitalization
during Sept 2010 to Sept 2011
 Conclusion
Conclusion

Gammon needs to focus on increasing net

profit as company show negative profits
from past 4 years except FY08 FY09.