Crompton Greaves, 1Q FY 2014

8/22/2019 Crompton Greaves, 1Q FY 2014

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Please refer to important disclosures at the end of this report 1

Quarterly Data (Consolidated)(` cr) 1QFY14 1QFY13 % chg (yoy) 4QFY13 % chg (qoq)Revenue 3,157 2,811 12.3 3,387 (6.8)EBITDA 145 167 (13.2) 779 (81.4)

EBITDA margin (%) 4.6 5.9 (135)bp 2.3 228bp

Adj. PAT 60 86 (30.1) 25 143.2Source: Company, Angel Research

For 1QFY2014, Crompton Greaves reported a 12.3% yoy growth in its top-line to

`3,157cr (compared to our estimate of `3,011cr) due to better-than-expected

revenues from the domestic consumer products segment (up 20.6% yoy to`789cr). However, Net profit came in below our estimate of `67cr, declining by

30.1% yoy to `60cr (due to increase in interest cost from `10cr to `20cr).

Reduction in losses of overseas operations: In the last few quarters, the companysinternational business has been a drag on consolidated margins due to its

Belgium facilitys restructuring. However, international operations are showing

signs of recovery, reporting a reduction in EBITDA losses from `64cr in

4QFY2013 to `8cr in 1QFY2014. Belgium and Hungary units reported positive

EBITDA in 1QFY2014. However, overseas operations are still in the negative due

to losses in Canada and in the US subsidiary.

Order intake and backlog: The consolidated order intake for 1QFY2014 declinedby 10.2% yoy to `2,441cr, mainly on account of sluggish ordering from Middle-

East and the US. Order intake in the power segment declined 11.0% yoy to

`1,886cr, while that of industrial segment declined by 7.7% yoy to `534cr. The

order backlog stood at `9,771cr, increasing 6.5% yoy.

Outlook and Valuation: Although the company is expected to register a moderatesales growth, supported by healthy order backlog, its overseas operating margins are

expected to remain under pressure for the next few quarters. We are of the opinion

that CGs margins have bottomed out in FY2013 and we expect the operating margin

to gradually improve over the next year. Given the attractive valuation (stock trading

at 0.5x FY2014E EV/Sales compared to its five year trading range of 0.6x to 1.6x and

median of 1.1x), we maintain our Buy recommendation on the stock. We haveassigned a multiple of 0.7x EV/Sales to arrive at a target price of `103.Key Financials (Consolidated)Y/E March (` cr) FY2012 FY2013 FY2014E FY2015EOperating Income 11,249 12,094 13,418 14,654% chg 12.4 7.5 10.9 9.2

Adj. PAT 374 85 372 499% chg (59.7) (77.4) 340.4 34.1

EBITDA (%) 7.1 3.2 5.8 6.7

EPS (`) 5.8 (0.6) 5.8 7.8P/E (x) 15.1 - 15.1 11.3

P/BV (x) 1.6 1.6 1.5 1.3

RoE (%) 10.9 2.4 10.1 12.5

RoCE (%) 13.4 3.7 10.0 12.3

EV/Sales (x) 0.5 0.5 0.5 0.5

EV/EBITDA (x) 7.0 16.8 8.9 7.2

Source: Company, Angel Research

BUYCMP `88

Target Price `103

Investment Period 12 months

Stock Info

Sector

Net Debt (`cr) 978

Bloomberg Code

Shareholding Pattern (%)

Promoters 41.7

MF / Banks / Indian Fls 23.7

FII / NRIs / OCBs 16.0

Indian Public / Others 18.7

Abs. (%) 3m 1yr 3yr

Sensex (6.2) 7.2 2.9

CG (10.4) (25.1) (68.7)

Reuters Code CRG.BO

CRG@IN

BSE Sensex 18,665

Nifty 5,519

Avg. Daily Volume 438,992

Face Value (`) 2

Beta 1.4

52 Week High / Low 142/72

Capital Goods

Market Cap (`cr) 5,639

Amit Patil022-39357800 Ext: 6839

[email protected]

Crompton GreavesPerformance Highlights

1QFY2014 Result Update | Capital Goods

August 8, 2013


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Crompton Greaves| 1QFY2014 Result Update

August 8, 2013 2

Exhibit 1:Quarterly performance (consolidated)

(` cr) 1QFY14 1QFY13 % chg (yoy) 4QFY13 % chg (qoq) FY2013 FY2012 % chg (yoy)Net Sales 3,157 2,811 12.3 3,387 (6.8) 12,094 11,249 7.5Other operating income - - - - -Total income 3,157 2,811 12.3 3,387 (6.8) 12,094 11,249 7.5Stock adjustments 543 (297) 177 (251) 516

Raw Material 2,332 2,173 7.3 2,265 2.9 8,597 7,169 19.9

(% of total income) 69.6 66.7 2.9 72.1 69.0 68.3

Employee Cost 449 421 6.7 438 2.6 1,740 1,466 18.7

(% of total income) 14.2 15.0 12.9 14.4 13.0

Other Expenses 365 348 4.9 430 (15.1) 1,625 1,294 25.6

(% of total income) 11.6 12.4 12.7 18.9 18.0

Total Expenditure 3,012 2,644 13.9 3,309 (9.0) 11,711 10,445 12.1EBITDA 145 167 (13.2) 779 (81.4) 383 804 (52.3)(EBITDA %) 4.6 5.9 (135) 2.3 3.2 7.1

Interest 20 10 103.6 21 (3.3) 71 46 53.1

Depreciation 53 47 13.1 45 16.4 203 260 (21.9)

Other Income 35 19 84.1 5 587.2 75 52 44.0

PBT 107 129 (17.2) 17 533.3 185 550 (66.4)PBT (%) 3.4 4.6 0.5 1.5 4.9

Total Tax 46 45 4.2 (8) (696.9) 101 182 (44.6)

(% of PBT) 43.3 34.4 (45.9) 54.6 33.1

Reported PAT (After MI) 60 86 (30.1) 25 143.2 84 368 (77.2)PAT Margins(%) 1.9 3.1 0.7 0.7 3.3

Extra ordinary exp/(inc) 0 0 0 121 -

Adj PAT 60 86 (30.1) 25 143.2 (37) 368EPS (`) 0.9 1.3 (30.1) 0.4 143.2 (0.6) 5.8


Exhibit 2:Actual vs Estimates

Actual Estimates Var (%)Revenue 3,157 3,011 4.9EBITDA 145 148 (1.9)

PAT 60 67 (9.8)



3/12


August 8, 2013 3

Exhibit 3:Segment-wise performance (Standalone)

Y/E March (` cr) 1QFY14 1QFY13 % chg (yoy) 4QFY13 % chg (qoq) FY2013 FY2012 % chg (yoy)RevenuePower Systems 565 595 (5.1) 836 (32.5) 2,725 2,800 (2.7)Consumer Products 789 654 20.6 748 5.5 2,593 2,134 21.5

Industrial Systems 370 339 9.4 395 (6.3) 1,499 1,520 (1.4)

Others 110 86 28.4 97 13.9 377 78 386.2

Total 1,834 1,673 9.6 2,076 (11.7) 7,194 6,531 10.1EBITPower Systems 46 56 (18.7) 59 (22.8) 231 322 (28.5)

Consumer Products 94 85 10.5 74 26.9 278 263 5.8

Industrial Systems 42 43 (1.2) 52 (18.7) 213 225 (5.5)

Others (4) 4 (215.8) (2) 118.9 11 (11) (201.0)

Total 178 188 (5.5) 184 (3.1) 732 800 (8.5)Revenue mix (%)Power Systems 30.8 35.6 40.3 37.9 42.9

Consumer Products 43.0 39.1 36.0 36.0 32.7

Industrial Systems 20.2 20.2 19.0 20.8 23.3

Others 6.0 5.1 4.7 5.2 1.2

EBIT Margin (%)Power Systems 8.1 9.5 7.1 8.5 11.5



Others (4.0) 4.4 (2.1) 2.8 (13.6)



4/12


August 8, 2013 4

Exhibit 4:Segment-wise performance (Consolidated)

Y/E March (` cr) 1QFY14 1QFY13 % chg (yoy) 4QFY13 % chg (qoq) FY2013 FY2012 % chg (yoy)RevenuePower Systems 1,818 1,676 8.5 2,060 (11.7) 7,336 7,247 1.2Consumer Products 789 654 20.6 748 5.5 2,593 2,134 21.5

Industrial Systems 452 405 11.6 496 (8.9) 1,835 1,849 (0.8)

Others 113 90 25.8 99 13.7 390 93 318.3

Total 3,172 2,825 12.3 3,403 (6.8) 12,153 11,323 7.3EBITPower Systems 27 43 (36.3) (59) (146.4) (110) 251 (144.0)

Consumer Products 94 85 10.5 74 26.9 278 263 5.8

Industrial Systems 39 36 5.8 56 (31.1) 214 210 1.6

Others (4) 4 (201.5) (2) 164.9 12 (8) (244.3)

Total 156 168 (7.4) 70 123.0 393 716 (45.2)Revenue mix (%)Power Systems 57.3 59.3 60.5 60.4 64.0



Others 3.6 3.2 2.9 3.2 0.8

EBIT Margin (%)Power Systems 1.5 2.6 (2.8) (1.5) 3.5



Others (3.5) 4.4 (1.5) 3.0 (8.6)


Reduction in losses of overseas business

In the last few quarters, the companys international business has been a drag on

its consolidated margins due to Belgium restructuring. However, international

operations are showing signs of recovery, reporting reduction in EBITDA losses

from `64cr in 4QFY2013 to `8cr in 1QFY2014. Belgium and Hungary units

reported a positive EBITDA in 1QFY2014. However, overseas operations are still in

the red due to losses in Canada and US units.

A new Management has been appointed at the Canada unit which plans

to improve Canadas performance by the end of FY2014. However, the

US power system plant is likely to remain in losses considering the weak ordering

scenario in the US.


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August 8, 2013 5

Exhibit 5:Employee expense as % of total revenuemoderating


Exhibit 6:Reduction in losses of Internationaloperations


Standalone business margin expands sequentially

Although steady ordering from Power Grid Corporation of India (PGCIL) continues

in spite of slowdown in generation capacity addition, CG has seen intense

competition from domestic as well as Chinese and Korean companies in the last

few quarters, which had impacted its market share and margins. However, CG has

bounced back in 1QFY2014 with standalone business margins expanding by

148bp sequentially to 8.4% (although a 117bp contraction yoy).

Exhibit 7:Consolidated: EBITDA and EBITDA margin


Exhibit 8:Standalone: EBITDA and EBITDA margin


Consumer Products

For the domestic Consumer Products segment, the company reported a robust

revenue growth of 20.6% yoy to `789cr in 1QFY2014 (`654cr in corresponding

quarter last year). The company is extending its reach (adding distributors and

retailers) in order to maintain the growth momentum. However, the OPM

contracted by 109bp yoy to 11.9%.

24 2522

16

24

21 22

27 28 27 2825 25

5 5 6 56 6 6 5

6 6 6 5 6

0

5

10

15

20

25

30

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

1QFY14

Inte rnational Subs Standalone busine ss

9.210.7 11.2 9.5

(0.5)

5.1

0.5 1.4 0.7(0.8)

(10.6)

(4.8) (0.6)

(17)

(12)

(7)

(2)

3

8

13

18

(1,500)

(1,000)

(500)

-

500

1,000

1,500

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

1QFY14

EBIDTA (`cr) EBIDTA Margins (%)

12.913.9 14.2

12.8

7.58.4

6.0 6.9

5.94.7

0.1

2.3

4.6

0.0

4.0

8.0

12.0

16.0

20.0

-

90

180

270

360

450

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

1QFY14

EBITDA (` cr, LHS) EBITDAM (%, RHS)

15.6 16.016.3

15.0

12.711.1 10.8 10.2 9.5 8.8

7.6 6.98.4

0.0

4.0

8.0

12.0

16.0

20.0

-

90

180

270

360

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

1QFY14

EBITDA (` cr, LHS) EBITDAM (%, RHS)


6/12


August 8, 2013 6

Industrial Systems

The Industrial systems Segments revenue grew by 11.6% yoy on a consolidated

basis to `452cr However, on the margins front, the segment witnessed a

contraction in EBIT margin by 47bp yoy to 8.5%.

Order book:

The consolidated order intake for 1QFY2014 declined by 10.2% yoy to `2,441cr,

mainly on account of sluggish ordering from the Middle-East and US. Order intake

in the Power segment declined 11.0% yoy to `1,886cr, while that of Industrial

segment declined by 7.7% yoy to `534cr. The order backlog stood at `9,771cr,

increasing 6.5% yoy.

Exhibit 9:Order intake


Exhibit 10:Order backlog


A play on margin recovery

Revival in International subsidiaries key to margin expansion:

CGs Power and Industrial segment are facing several headwinds on the

international and domestic business fronts. As far as the domestic Power segment

(standalone) is concerned, even though PGCIL orders have retained traction,

CG has been facing intense competition leading to falling margins as well as

declining market share. CGs overseas business has suffered on account of

slowdown in Europe and transfer of orders from the Belgium unit to Hungary unit,

leading to execution delays. The restructuring at Belgium unit has been a drag on

profitability of the company. However, we are of the opinion that CGs margins

have bottomed out in FY2013 and we expect operating margin to gradually

improve over the next 14 to 18 months.Outlook and valuation

Although the company is expected to register a moderate sales growth, supported by

healthy order backlog, its overseas operating margins are expected to remain under

pressure for the next few quarters. We are of the opinion that CGs margins have

bottomed out in FY2013 and we expect the operating margin to gradually improve

over the next year. Given the attractive valuation (stock trading at 0.5x FY2014E

EV/Sales compared to its five year trading range of 0.6x to 1.6x and median of 1.1x),

we maintain our Buy recommendation on the stock. We have assigned a multipleof 0.7x EV/Sales to arrive at a target price of `103.

1,7

04

2,2

60

3,4

01

2,8

96

2,7

18

2575

2267

2983

2441

-

700

1,400

2,100

2,800

3,500

4,200

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

1QFY14

(`c

r)

7,0

88

7,1

20

8,0

00

8366

9172

9400

9200

9126

9771

4

0

1417

29

32

15

97

0

5

10

15

20

25

30

35

-

1,500

3,000

4,500

6,000

7,500

9,000

10,500

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

1QFY14

%(`

cr)

order backlog order backlog


7/12


August 8, 2013 7

Exhibit 11:One-year forward P/E band


Exhibit 12:Peer comparison

Company Reco. CMP Tgt. price Upside P/BV(x) P/E(x) FY2013-15E RoE (%)(`) (`) (%) FY14E FY15E FY14E FY15E EPS CAGR FY14E FY15E

ABB* Neutral 475 - - 3.8 3.6 41.2 28.0 61.6 9.3 13.1

BHEL Neutral 116 - - 1.2 1.1 5.7 6.8 (20.9) 23.1 17.2

BGR Energy Neutral 85 - - 0.5 0.4 3.9 3.5 3.6 22.3 20.3

Crompton Greaves Buy 88 103 17.2 1.5 1.3 15.1 11.3 - 10.1 12.5Jyoti Structures Neutral 17 - - 0.2 0.2 3.7 2.6 17.7 5.5 7.4

KEC International Buy 25 36 43.0 0.5 0.5 4.9 3.1 78.4 16.6 21.5

Thermax Neutral 559 - - 3.2 2.8 19.4 17.0 10.7 17.2 17.3

Source: Company, Angel Research Note*: December year end.

Company Background

Crompton Greaves (CG), part of the US$4bn Avantha Group, is one of the

leading players in the power T&D equipment business in India. The company

operates across three segments - Power Systems, Consumer Products And

Industrial Systems. CG is a globally diversified company and derives ~50% of itsorder backlog from international operations, led by a series of acquisitions

undertaken over FY2006-12. Europe and North America are the two biggest

markets outside Asia and jointly account for ~40% of the company's order

backlog.

0

80

160

240

320

400

Apr-07

Sep-0

7

Feb-0

8

Jul-08

Dec-0

8

May-0

9

Oct-09

Mar-10

Aug-1

0

Jan-1

1

Jun-1

1

Nov-1

1

Apr-12

Sep-1

2

Feb-1

3

Jul-13

(`)

Share Price (`) 6x 12x 18x 24x


8/12


August 8, 2013 8

Profit & Loss statement (consolidated)

Y/E March (` cr) FY2010 FY2011 FY2012 FY2013 FY2014E FY2015EOperating income 9,141 10,005 11,249 12,094 13,418 14,654% chg 4.6 9.5 12.4 7.5 10.9 9.2Total Expenditure 7,864 8,661 10,445 11,711 12,645 13,666EBITDA 1,277 1,344 804 383 772 988% chg 28.3 5.2 (40.2) (52.3) 101.5 27.9

(% of Net Sales) 14.0 13.4 7.1 3.2 5.8 6.7

Depreciation 155 194 260 203 218 239

EBIT 1,122 1,150 544 180 554 749

% chg 28.4 2.5 (52.7) (66.8) 207.6 35.1

(% of Net Sales) 12.3 11.5 4.8 1.5 4.1 5.1

Interest & other Charges 43 34 57 71 83 96

Other Income 110 113 63 75 84 91

(% of PBT) 9.2 9.2 11.4 40.8 15.1 12.3

Recurring PBT 1,189 1,229 550 185 555 744

% chg 37.1 3.4 (55.3) (66.4) 200.3 34.2

Extraordinary Inc/(exp) 35 (38) 0 (121) 0 0

PBT 1,224 1,191 550 64 555 744Tax 365 310 182 101 183 246

(% of PBT) 30.7 25.2 33.1 54.6 33.0 33.0

PAT (reported) 859 881 368 (37) 372 499

Add: Share of earnings of asso. 3 8 5 (0) (0) (0)

Less: Minority interest (MI) 3 0.4 (1) (1) (1) (1)

Prior period items 0 0 0 0 0 0

Reported PAT (After MI) 860 889 374 (36) 372 499Adjusted PAT 825 927 374 85 372 499% chg 47.3 12.4 (59.7) (77.4) 340.4 34.1

(% of Net Sales) 9.0 9.3 3.3 0.7 2.8 3.4

Basic EPS (`) 12.9 14.4 5.8 (0.6) 5.8 7.8Fully Diluted EPS ( ) 12.9 14.4 5.8 (0.6) 5.8 7.8% chg (15.8) 12.4 (59.7) (109.8) (1,122.0) 34.1

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable withprevious year numbers


9/12


August 8, 2013 9

Balance Sheet (consolidated)

Y/E March (` cr) FY2010 FY2011 FY2012 FY2013E FY2014E FY2015ESOURCES OF FUNDSEquity Share Capital 128 128 128 128 128 128Preference Capital - - - - - -

Reserves & Surplus 2,376 3,146 3,483 3,433 3,701 4,061

Shareholders Funds 2,504 3,275 3,611 3,562 3,830 4,189Minority Interest 4 16 16 9 9 9

Total Loans 501 395 985 1,851 2,136 2,336

Deferred Tax Liability 95 124 136 147 147 147

Others - 266 235 218 218 218

Total Liabilities 3,104 4,076 4,982 5,788 6,341 6,900APPLICATION OF FUNDSNet Block 1,262 1,837 2,148 2,956 3,258 3,539Capital Work-in-Progress 114 104 110 111 110 110

Goodwill - - - - - -

Investments 254 272 285 290 200 200Deferred Tax Asset 90 108 187 315 315 315

Current Assets 4,402 4,967 6,036 6,481 6,879 7,372Cash 669 298 498 583 443 391

Loans & Advances 246 436 522 382 613 667

Inventories 1,041 1,189 1,223 1,637 1,397 1,526

Debtors 2,146 2,543 3,143 3,160 3,750 4,095

Others 300 501 649 719 677 694

Current liabilities 3,017 3,213 3,783 4,365 4,421 4,636Net Current Assets 1,385 1,755 2,253 2,116 2,458 2,736

Mis. Exp. not written off - - - - - -

Total Assets 3,104 4,076 4,982 5,788 6,341 6,900Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

previous year numbers


10/12


August 8, 2013 10

Cash Flow Statement (consolidated)

Y/E March (` cr) FY2010 FY2011 FY2012 FY2013E FY2014E FY2015EProfit before tax 1,189 1,229 550 64 555 744Depreciation 155 194 260 203 218 239(Inc)/Dec in Working Capital 54 (507) (228) 19 (483) (330)

Others (50) (15) 75 71 83 96

Direct taxes paid (292) (334) (244) (101) (183) (246)

Cash Flow from Operations 1,056 567 413 256 190 504(Inc.)/Dec.in Fixed Assets (290) (746) (372) (409) (429) (520)

(Inc.)/Dec. in Investments (294) (10) (90) - - -

Other income - - - - - -

Cash Flow from Investing (585) (756) (462) (409) (429) (520)Issue of Equity - - - - - -

Inc./(Dec.) in loans (217) (38) 423 300 285 200

Dividend Paid (Incl. Tax) (116) (119) (119) 10 (104) (139)

Others (45) (14) (55) (71) (83) (96)

Cash Flow from Financing (378) (172) 248 239 98 (35)Inc./(Dec.) in Cash 94 (361) 199 86 (141) (51)

Opening Cash balances 566 659 298 498 583 443Closing Cash balances 659 298 498 583 443 391



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August 8, 2013 11

Key Ratios

Y/E March FY2010 FY2011 FY2012 FY2013E FY2014E FY2015EValuation Ratio (x)P/E (on FDEPS) 6.8 6.1 15.1 (154.7) 15.1 11.3P/CEPS 5.8 5.0 8.9 19.6 9.6 7.6

P/BV 2.3 1.7 1.6 1.6 1.5 1.3

Dividend yield (%) 1.8 1.8 1.8 (0.2) 1.8 2.5

EV/Sales 0.6 0.5 0.5 0.5 0.5 0.5

EV/EBITDA 4.1 4.0 7.0 16.8 8.9 7.2

EV / Total Assets 1.7 1.3 1.1 1.1 1.1 1.0

OB/Sales 0.7 0.7 0.7 0.6 0.4 0.2

Per Share Data (`)EPS (Basic) 12.9 14.4 5.8 (0.6) 5.8 7.8

EPS (fully diluted) 12.9 14.4 5.8 (0.6) 5.8 7.8

Cash EPS 15.3 17.5 9.9 4.5 9.2 11.5

DPS 1.5 1.6 1.6 (0.2) 1.6 2.2

Book Value 38.8 50.8 56.3 55.5 59.7 65.3

DuPont Analysis (%)EBIT margin 12.3 11.5 4.8 1.5 4.1 5.1

Tax retention ratio (%) 69.3 74.8 66.9 45.4 67.0 67.0

Asset turnover (x) 1.8 1.8 1.6 1.5 1.5 1.5

RoIC (Pre-tax) 22.6 20.1 7.9 2.2 6.1 7.5

RoIC (Post-tax) 15.6 15.1 5.3 1.0 4.1 5.0

Cost of Debt (Post Tax) 4.9 5.7 5.5 2.3 2.8 2.9

Leverage (x) (0.1) (0.1) (0.0) 0.1 0.3 0.3

Operating ROE 14.6 13.8 5.3 0.9 4.4 5.7

Returns (%)RoCE (Pre-tax) 39.0 33.7 13.4 3.7 10.0 12.3

Angel RoIC (Pre-tax) 22.9 20.5 8.0 2.2 6.1 7.6

RoE 38.0 32.1 10.9 2.4 10.1 12.5

Turnover ratios (x)Asset Turnover (Gross Block) (x) 3.0 3.0 2.7 2.5 2.4 2.4

Inventory / Sales (days) 43 41 39 43 41.3 36.4

Receivables (days) 84 86 92 95 94.0 97.7

Payables (days) 139 133 130 137 135.4 128.9WC cycle (ex-cash) (days) 24 37 43 39 39.5 46.3

Solvency ratios (x)Net debt to Equity (0.2) (0.1) (0.0) 0.2 0.3 0.3

Net debt to EBITDA (0.4) (0.2) (0.0) 2.0 1.5 1.5

Interest Coverage 26.2 33.5 9.6 2.5 6.7 7.8



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August 8 2013 12

Research Team Tel: 022 3935 7800 E-mail: [email protected] Website: www.angelbroking.com

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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 Pvt. 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 Pvt. 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 Pvt. 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.

This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,

redistributed or passed on, directly or indirectly.

Angel Broking Pvt. 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 the past.

Neither Angel Broking Pvt. 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 thelatest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates mayhave investment positions in the stocks recommended in this report.

Disclosure of Interest Statement Crompton Greaves

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): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)

Documents

Crompton Greaves, 1Q FY 2014