Finalyssis Aditya Birla Nuvo

1

CRIS Finalyssis

ADITYA BIRLA NUVO LTD.

2

Contents

COMPANY ANALYSIS ....................................................................................................... 3

COMPANY NAME : Aditya Birla Nuvo Ltd. ............................................................... 4

Profit and Loss Account................................................................................................ 4

Cash Flow ....................................................................................................................... 7

Assets and Liabilities ..................................................................................................... 8

Ratios ............................................................................................................................ 11

Shareholders Information........................................................................................... 12

Forex and its effect: ..................................................................................................... 14

Raw Material................................................................................................................ 15

Product profile ............................................................................................................. 16

Some Interesting Indicators........................................................................................ 20

SUMMARY STATEMENTS ............................................................................................. 23

Profit and Loss ............................................................................................................. 24

Balance Sheet ............................................................................................................... 25

INDUSTRY ANALYSIS ..................................................................................................... 26

INDUSTRY NAME......................................................................................................... 27

Profit and Loss Account.............................................................................................. 28

Cash Flow ..................................................................................................................... 30

Assets and Liabilities ................................................................................................... 30

Effect of Forex and Interest ........................................................................................ 32

ADITYA BIRLA NUVO LTD. VS INDUSTRY ........................................................ 33

Income and Profit Analysis......................................................................................... 34

Cost Analysis:............................................................................................................... 35

Ratio Analysis .............................................................................................................. 37

INDUSTRY GRAPHS......................................................................................................... 40

Marketcap & Net Worth............................................................................................. 41

Debt & Equity .............................................................................................................. 42

Operating Profit & Net Profit Margin ...................................................................... 43

Return on Net Worth (RONW) and Return on Capital Employed (ROCE)......... 44

Current Ratio ............................................................................................................... 45

Operating Income ........................................................................................................ 46

Profit After Tax ........................................................................................................... 47

3

Company Analysis

4

Company Name : Aditya Birla Nuvo Ltd.

Profit and Loss Account

Financial Snapshot : Rs. Crores

(YTD)

Mar 08

% Mar 07 % Mar 06 % Mar 05 %

Operating Income 3965.80 100.00 3395.68 100.00 2615.58 100.00 1866.58 100.00

Cost of Sales 3331.85 84.01 2876.07 84.70 2237.21 85.53 1621.09 86.85

OPBDIT 633.95 15.99 519.61 15.30 378.37 14.47 245.49 13.15

Interest & Finance Charges 179.02 4.51 196.38 5.78 69.30 2.65 23.09 1.24

Less Interest Capitalised 0.00 0.00 -0.98 -0.03 -0.70 -0.03 -0.11 -0.01

Operating Profit Before Depn. and

Taxes

454.93 11.47 324.21 9.55 309.77 11.84 222.51 11.92

Depreciation 141.10 3.56 120.32 3.54 111.91 4.28 77.84 4.17

OPBT 313.83 7.91 203.89 6.00 197.86 7.56 144.67 7.75

Non Operating Income 0.00 0.00 99.06 2.92 67.43 2.58 14.77 0.79

PBT before extraordinary items 313.83 7.91 302.95 8.92 265.29 10.14 159.44 8.54

Cash Adjustments 0.00 0.00 40.62 1.20 15.99 0.61 5.29 0.28

Non Cash Adjustments 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Extraordinary Income 0.73 0.00 0.20 0.01 0.00 0.00 4.92 0.26

Extraordinary Expenses 0.00 0.00 -11.20 -0.33 -4.04 -0.15 -12.57 -0.67

Reported Profit Before Tax |RPBT| 314.56 7.93 332.57 9.79 277.24 10.60 157.08 8.42

Tax 82.00 2.07 102.21 3.01 97.22 3.72 45.35 2.43

Def. Tax liab / (asset) 25.24 0.64 5.39 0.16 -6.91 -0.26 -1.99 -0.11

RPAT after def. Tax 207.32 5.23 224.97 6.63 186.93 7.15 113.72 6.09

Preference Dividend 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

RPAT after pref div 207.32 5.23 224.97 6.63 186.93 7.15 113.72 6.09

5

Operating Profit: Rs. Crores

Mar 07 % Mar 06 % Mar 05 %

PBT 332.57 100.00 277.24 100.00 157.08 100.00

OPBT 203.89 61.31 197.86 71.37 144.67 92.10

Operating Margin Trend (OPBDIT)

Period ended : OPM %

31-Mar-07 15.3

31-Mar-06 14.46

31-Mar-05 13.15

31-Mar-04 14.94

31-Mar-03 15.49

Indexation of:

Mar 07 Mar 06 Mar 05

Operating Income 182 140 100

RM & trade purchase Cost 185 145 100

Power & Fuel 275 155 100

Employee Cost 154 131 100

OPBDIT 212 154 100

RPAT after def tax. 198 164 100

Cost Analysis:


RM & trade purchase cost % OI 54.27 54.97 53.24

Power & Fuel cost % OI 9.83 7.17 6.5

Employee cost % OI 5.69 6.27 6.71

Selling exp % OI 6.63 7.76 9.26

Finance cost %OI 5.75 2.62 1.23

Deprn. cost % OI 3.54 4.28 4.17

6

Significant Accounting Alerts : Mar 07

The Company routed rights issue expenses amounting to Rs.744 lakh through share premium reserves and transitional provision for

employee benefits amounting to Rs.1925 lakh net of deferred tax (Rs.977 lakh) routed through general reserve.

Mar 05

Significant Event: Mar 07

Transfer of business to wholly owned subsidiary. The company has transferred contract export business of Madura Garments division to its

wholly owned subsidiary, Madura Garments exports ltd wef from July 1, 2006 and recognized a gain of Rs. 20 lakh under the head Profit

from transfer of business

Pursuant to the Schemes of Amalgamation (the Schemes) under sections 391 to 394 of the Companies Act, 1956, with effect from September

1,2005 (the Appointed Date) Indo Gulf Fertilizers Limited (herein after referred to as IGFL) and Birla Global Finance Limited (herein after

referred to as BGFL), were merged with the Company. The Effective date of the Schemes for merger of IGFL & BGFL was April 03, 2006

and June 30, 2006 respectively.

Post Balance Sheet Event (09-08-2007) - Aditya Birla Nuvo Limited has informed the Exchange that The Scheme of Amalgamation of

Aditya Birla Insulators Limited with Aditya Birla Nuvo Limited has been sanctioned by the Honble High Court, Gujarat at Ahmedabad. The

Committee of Board of Directors authorised for this purpose, has reviewed and declared the merger effective which shall take effect from

April 1, 2007

The company has fortified its presence in the fast growing telecom space. In a strategic move, the company, along with its wholly owned

subsidiary, acquired additional equity stake in Idea Cellular at a cost of Rs. 137290 Lakh in the first quarter of FY 07. The company further

invested Rs. 22500 Lakh in Ideas pre-placement IPO. With these investments, Aditya Birla Nuvos stake in Idea Cellular has increased from

20.74% to 31.78%.

Mar 06

Amalgamation: The Scheme of Amalgamation of Indo Gulf Fertilisers Ltd (IGFL) with the company became effective on April 03, 2006 on

receipt of requisite approvals and sanctions.

The Scheme of Amalgamation between Birla Global Finance Ltd (BGFL) and the company, was sanctioned by High Court of Mumbai on

January 27, 2006 and is pending for sanction of High Court of Gujarat at Ahmedabad, on Sanction and receipt of other requisite approvals,

the Scheme will become operative from September 01, 2005 (Appointed Date).

On September 28, 2005, the company acquired equity shares of IDEA Cellular Ltd (IDEA) at an aggregate price of Rs 6607.30 million from

AT & T Cellular Pvt. Ltd, Mauritius, raising its equity holding in IDEA from 4.28% to 20.74%

The Aditya Birla Group, in terms of the Shareholders Agreement, has accepted the offer made by the Tata Group, and will acquire its entire

holding of 48.14% in IDEA. The company will acquire 15% of the said holding directly or through its subsidiaries. Post acquisition the

company equity holding in IDEA will increase from 20.74% to 35.74%.

Mar-05

Significant Change in Accounting Policy : Mar 07

Mar 06

The company, during the year, revised the estimated useful lives of office equipments, showroom assets and assets acquired on

amalgamation of IGFL and BGCL from life/rates as per company Act to the useful life as stated in the accounting policy of depreciation and

amortization. Consequently additional depreciation of Rs 558 Lakh has been charged to the P&L for the year.

Mar-05

Auditor’s Report Mar 07 - Auditor's Report is Not Qualified for the year.

Mar 06 - Auditor's Report is Not Qualified for the year.

Mar 05 - Auditor's Report is Not Qualified for the year.

7

Cash Flow Net Cash Flow from: Rs. Crores


Operations 496.35 -7.67 51.25

Investing Activities -2245.72 -663.14 -94.25

Financing Activities 1751.79 675.56 39.17

Net increase in cash & cash equivalents 2.42 4.75 -3.83

8

Assets and Liabilities Debtors Analysis Rs. Crores


Debtors : More than 6 months 12.14 10.82 3.33

Debtors : Less than 6 months 583.85 404.62 257.57

Bills Receivable 0.00 59.34 0.00

Total Debtors 595.99 474.78 260.90

Debtors More than 6 months as % of

Total Debtors

2.03 2.27 1.27

Inventory Breakup Rs. Crores


Raw and Packing Materials 200.51 307.57 203.25

Work In Process 33.00 35.32 25.47

Finished Goods 195.04 147.53 108.42

Stores and Spares 46.71 35.91 17.86

Total Inventories 475.26 526.33 355.00

Debt Coverage (no. of times) :


LTD (Rs Crores) 1600.6 752.87 285.31

Total Debt (Rs Crores) 2831.83 1563.57 493.03

CFO / Total Debt 0.18 0 0.1

GCA/ Total Debt 0.12 0.19 0.38

Interest Coverage Ratio 3.32 6.67 11.22

Asset Structure: (times)


Gross Block (Rs Crores) 2454.83 2265.28 1225.10

Net Operating Curr. Assets (Rs Crores) 850.24 849.69 449.77

Net operating Assets/Total Assets 0.31 0.46 0.59

Net Total Investment/Total Assets 0.64 0.45 0.38

Other Assets/Total Assets 0.05 0.09 0.03

OPBDIT / Net Operating Assets 0.28 0.21 0.23

OPBT / Net Operating Assets 0.11 0.11 0.13

9

Appreciation in Quoted investment Rs. Crores

Appreciation/ (Depreciation) in Quoted investment


Book Value of Un Quoted Investments 1333.55 1524.25 562.91

Book Value of Quoted Investments 2515.84 151.54 136.75

Market Value of Quoted Investments 8214.78 419.41 259.39

Appreciation/ (Depreciation) Quoted investment 5698.94 267.87 122.64

Exposure to subsidiaries and affiliates : Rs. Crores


Expo.to subs. & affiliates(ESA) (Rs Crores) 3508.99 1442.83 611.58

ESA/Total Investments % 89.99 83.72 85.44

ESA/Tangible net worth % 109.16 63.43 44.84

10

Share Capital And Reserves: Rs. Crores


Paid up Capital 93.31 59.89 59.88

Gross Reserves 3205.32 2291.81 1419.70

Intangible Assets 84.21 100.50 115.62

Misc Exp. Not w/o 0.00 0.00 0.00

Debit Balance in P&L 0.00 0.00 0.00

Net Reserves 3121.11 2191.31 1304.08

Tangible Networth 3214.42 2274.81 1363.96

Contingent Liabilities Rs. Crores

Period ended on Mar 07 Mar 06 Mar 05

Guarantees for operations 0 0 0

Guarantees on behalf of Subsidiaries :affiliates 110.52 292.85 143.64

Other Claims against the co. not acknowledged as

debt

99.36 103.94 138.26

Future lease rentals payable: Finance Lease: as per

old AS

0 0 0

Others 1 10.94 15.43 4.19

Others 2 49.58 29.37 0

Others 3 1.05 1.48 0

TOTAL CONTINGENT LIABILITIES 271.45 443.07 286.09

Total Contingent Liability as % of Tangible

Networth

8.44% 19.48% 20.97%

11

Ratios

Some Key Ratios :


OI/Gross Block 1.38 times 1.15 times 1.52 times

ROGNW 6.98 % 7.58 % 7.55 %

ROCE 8.61% 8.78% 9.13%

Debt:Equity Ratio 0.88 times 0.69 times 0.36 times

Current Ratio 1.04 times 1.4 times 1.48 times

Debtors to Sales 68 Days 72 Days 58 Days

FG Inventory as cost of sales 25 Days 24 Days 24 Days

Payables to cost of sales 51 Days 69 Days 53 Days

Shareholders data :


FV per share (Rs.) 10 10 10

MP per share 1061.68 742.95 402.25

Dividend Rate 55% 50% 40%

EPS(after pref.Div) 25.59 25.39 18.98

Book Value per share 344.49 379.83 227.78

MP/BV (times) 3.08 1.96 1.77

PE ratio (times) 41.49 29.26 21.19

Price /Div.per share 193.03 148.59 100.56

(YTD) Mar 08

MP per Share * Rs 1394.9

EPS Rs 26.05

EPS annualized Rs 26.05

PE ratio annualized 53.55

Paid up Capital Rs 95.01 Crore

* Mar,31,2008

12

Shareholders Information

Shareholding Pattern:

Category Jun 08 Mar 08 Dec 07

Promoters 40.19 40.15 39.06

Mutual Funds 6.59 8.68 9.22

Banks , FIs 8.03 7.99 7.72

FIIs 20.44 17.94 17.90

Private Corporate Bodies 2.81 3.10 3.12

Indian Public 14.62 14.79 15.27

NRI / OCB 1.21 1.20 1.23

Others 6.11 6.16 6.48

*Source BSE / NSE

Names of top shareholders

As on 30 Jun 2008 No. of Securities

held

% Holding

Promoters

Kumar Mangalam Birla Karta of AVKM Birla HUF 150 0

Vasavadatta Bajaj 1902 0

Neerja Birla 2115 0

Kumar Mangalam Birla 4609 0

Birla Industrial Investment India Ltd 5955 0.01

Birla Industrial Finance India Ltd 27790 0.03

Birla Consultants Ltd 28655 0.03

Mangalam Services Ltd 46111 0.05

Manav Investment & Trading Company Ltd 114675 0.12

ECE Industries Ltd 119163 0.13

Rajashree Birla 127634 0.13

Pilani Investment & Ind.Corpn Ltd 187098 0.2

Heritage Housing Finance Ltd 679012 0.71

Umang Commercial Company Ltd 1162208 1.22

IGH Holding Private Ltd 1915389 2.02

Trapti Trading & Investments Pvt Ltd 1923935 2.03

Turquoise Investments & Finance Pvt Ltd 2941092 3.1

Grasim Industries Ltd 3345816 3.52

Birla Group Holdings Pvt Ltd 3389294 3.57

Hindalco Industries Ltd 8650412 9.1

TGS Investment & Trade Pvt Ltd 13506736 14.22

Total 38179751 40.19

Others

General Insurance Corporation of India 1269807 1.34

Master Trust Bank of Japan A/c HSBC Indian Equity

Mother Fun

1390000 1.46

HSBC Global Investments Fund A/c HSBC Global

Investment Fund

7375900 7.76

Life Insurance Corporation of India 7531074 7.93

Total 17566781 18.49

13

Distribution of shareholding


No. Of

Shareholders

Percentage No. Of

Shareholders

Percentage No. Of

Shareholders

Percentage

1-100 128982 78.36 1-100 59961 67.16 62149 66.02

101-200 17745 10.78 101-200 14497 16.24 15939 16.93

201 - 500 11642 7.07 201 - 500 9974 11.17 10951 11.63

501-1000 3626 2.2 501-1000 2984 3.34 3096 3.29

1001-5000 2240 1.36 1001-5000 1636 1.83 1765 1.87

5001-10000 141 0.09 5001-10000 102 0.11 99 0.11

10001 & above 227 0.14 10001 & above 133 0.15 138 0.15

Total 164603 100 TOTAL 89287 100 94137 100

14

Forex and its effect:

Forex details : Rs. Crores

Forex Details: Mar 07 % Mar 06 % Mar 05 %

Purchase of Capital Goods 99.99 9.75 30.56 4.25 27.32 4.73

Purchase of Materials 855.33 83.44 635.53 88.43 523.47 90.56

Purchase of Other Materials 35.80 3.49 36.29 5.05 13.11 2.27

Payment of Interest 5.77 0.56 1.85 0.26 0.78 0.13

Payment of Dividend 0.12 0.00 0.02 0.00 0.02 0.00

Other Forex Expense 28.07 2.74 14.40 2.00 13.36 2.31

Total (A) 1025.08 100.00 718.65 100.00 578.06 100.00

Export Sales (FOB basis) 491.46 100.00 462.37 100.00 447.37 100.00

Other Forex Income 0.00 0.00 0.00 0.00 0.00 0.00

Total (B) 491.46 100.00 462.37 100.00 447.37 100.00

Net Forex Inflow / (Outflow ((B) -

(A))

-533.62 -256.28 -130.69

% Effect of exchange rate fluctuations on profits of the company :

Period ended Mar 07 Mar 06 Mar 05

Net inflow/ (outflow) as % of PBT -160.45% -92.43% -83.19%

PBT (Rs Crore) 332.57 277.24 157.08

Impact on PBT on 5% change in forex rate. (Rs Crore)(+/-) -21.68 -11.29 -5.17

% Impact on PBT on 5% change in forex rate.(+/-) -6.51 -4.07 -3.28

Impact on PBT on 10% change in forex rate. (Rs Crore)(+/-) -43.35 -22.57 -10.34

% Impact on PBT on 10% change in forex rate.(+/-) -13.03 -8.14 -6.57

% Effect of interest rate variation on profits of the company


Average Debt (Rs Crore) 2197.70 1028.30 449.42

PBT (Rs Crore) 332.57 277.24 157.08

Impact on PBT of 1% change in interest rate.(Rs Crore) (+/-) 21.98 10.28 4.49

%Impact on PBT of 1% change in interest rate.(+/-) 6.61 3.71 2.86

Impact on PBT of 2% change in interest rate.(Rs Crore) (+/-) 43.95 20.57 8.99

%Impact on PBT of 2% change in interest rate.(+/-) 13.22 7.42 5.72

15

Raw Material

Imports of Raw Materials and Spares. Rs. Crores


Raw Material and Stores Imported 962.74 714.18 555.31

Raw Material and Stores Indigenous 747.37 623.19 365.74

Total 1710.11 1337.37 921.05

RM Imported Percentage 56.30 53.40 60.29

RM Indigenous Percentage 43.70 46.60 39.71

Raw material Consumption and Prices (major Items): Rs. Crores


CARBON BLACK FEED STOCK(MT)

Qty 337332.00 320228.00 306649.00

Total Cost 520.53 379.44 304.06

Cost Per Unit 15430.79 11849.06 9915.57

Cost Per Unit Indexation 155.62 119.50 100.00

% of Total Cost 32.16 30.04 35.32

NATURAL GAS(MT)

Qty 525825.00 296531.00 N.A.

Total Cost 306.84 172.65 N.A.

Cost Per Unit 5835.40 5822.33 N.A.

Cost Per Unit Indexation 100.22 100.00 N.A.

% of Total Cost 18.96 13.67 N.A.

WOOL FIBRE(MT)

Qty 8572.00 6087.00 3488.00

Total Cost 246.83 155.50 113.94

Cost Per Unit 287949.14 255462.46 326662.84

Cost Per Unit Indexation 88.15 78.20 100.00

% of Total Cost 15.25 12.31 13.24

16

Product profile (Top three products by turnover)

CARBON BLACK(MT)


Installed Capacity 170000.00 170000.00 170000.00

Indexation 100.00 100.00 100.00

Capacity Utilization % 107.45 102.99 96.49

Production 182668.00 175080.00 164025.00

Indexation 111.37 106.74 100.00

Revenue per unit (Rs./ Unit) 45201.31 35191.88 30343.14

Indexation 148.97 115.98 100.00

Closing Price per unit (Rs./ Unit) 38806.97 31353.74 27608.39

Indexation 140.56 113.57 100.00

Sales in Quantity (Units) 180893.00 175944.00 165095.00

Indexation 109.57 106.57 100.00

Sales in Value 817.66 619.18 500.95

Indexation 163.22 123.60 100.00

Contribution to Total revenue % 23.03 22.47 25.20

UREA(MT)


Installed Capacity 956300.00 803000.00 N.A.

Indexation 119.09 100.00 N.A.

Capacity Utilization % 107.50 71.69 N.A.

Production 1028064.00 575646.00 N.A.


Revenue per unit (Rs./ Unit) 7251.49 6498.69 N.A.


Closing Price per unit (Rs./ Unit) 6014.61 5058.07 N.A.


Sales in Quantity (Units) 1043565.00 563914.00 N.A.


Sales in Value 756.74 366.47 N.A.


Contribution to Total revenue % 21.31 13.30 N.A.

17

GARMENTS(NOS/000)


Installed Capacity N.A. N.A. N.A.

Indexation N.A. N.A. N.A.

Capacity Utilization % N.A. N.A. N.A.

Production 9852.00 10942.01 7367.34

Indexation 133.73 148.52 100.00


Indexation 113.41 97.10 100.00

Closing Price per unit (Rs./ Unit) 228365.19 239327.34 275559.64

Indexation 82.87 86.85 100.00

Sales in Quantity (Units) 10709.00 11103.90 8331.80

Indexation 128.53 133.27 100.00

Sales in Value 693.65 615.80 475.87

Indexation 145.76 129.41 100.00

Contribution to Total revenue % 19.53 22.35 23.93

18

Major Traded Items

INSULATORS


Purchase in Value 74.88 100.47 71.06

Indexation 105.38 141.39 100.00

Sales in Value 112.31 120.42 87.77

Indexation 127.96 137.20 100.00


Indexation 151.71 77.86 100.00

Cost per unit (Rs./ Unit) 96296.30 61846.72 77079.94

Indexation 124.93 80.24 100.00

Margin on Traded sales (%) 49.98 19.85 23.51

Contribution to Traded Sales % 86.65 85.20 87.66

TRADED GOODS



Indexation 3269.39 1171.43 100.00

Sales in Value 16.92 19.78 10.75

Indexation 157.40 184.00 100.00

Revenue per unit (Rs./ Unit) N.A. N.A. N.A.


Cost per unit (Rs./ Unit) N.A. N.A. N.A.


Margin on Traded sales (%) N.A. N.A. N.A.


ARRESTORS



Indexation 23.23 71.61 100.00

Sales in Value 0.38 1.14 1.61

Indexation 23.60 70.81 100.00


Indexation 74.65 119.93 100.00

Cost per unit (Rs./ Unit) 827.78 1366.83 1126.86

Indexation 73.46 121.29 100.00

Margin on Traded sales (%) 5.55 2.70 3.87


19

Productwise Contribution to Revenue

Mar 07 % Mar 06 % Mar 05 %

CARBON BLACK 817.66 23.03 619.18 22.48 500.95 25.20

UREA 756.74 21.32 366.47 13.30

GARMENTS 693.65 19.54 615.80 22.35 475.87 23.94

Other Sales (balance fig) 1282.19 36.12 1153.30 41.87 1011.02 50.86

Total sales (manuf + traded) 3550.24 100.00 2754.75 100.00 1987.84 100.00

20

Some Interesting Indicators

IRR

Period ended Mar-07 Mar-06 Mar-05

5 Year IRR on share price 5 years ago (based on EPS) 27.69% 19.71% 23.44%

Return over a period of three years.


Present Value of market Value added (Price

appreciation+dividends+bonus shares) per share (Rs)

1079.06 758.65 414.70

Share Price three years ago(Rs) 188.95 75.30 71.75

Return to investor over a period of three financial reporting periods 471.08 % 907.50 % 477.98 %

Economic profit Rs. Crores


Economic profit for the year -188.91 -52.22 -92.26

Enterprise value 12715.63 5992.78 2892.29

Economic profit over cost of funds (based on reported PAT) -- as a % of

Capital Employed

-3.71 % -1.73 % -4.75 %

PAT as a % of average capital employed 4.41 % 6.20 % 5.86 %

enterprise value/ average capital employed 2.50 1.99 1.49

21

Fund Raising capacity Rs. Crores

Fund Raising capacity As on period ended 31/ Mar / 2007

Existing Paid-up Capital 93.31

Non-Voting Shares (25% of existing capital) 23.33

20% premium over year end price (Rs) 1274.02

Total additional issue (A) 2971.96

Post-Issue Networth 6186.38

Existing Debt/ Equity Ratio 0.88

Revised Debt/ Equity Ratio (post issue of non-voting shares) 0.46

Capacity to raise additional debt (as Debt/Equity ratio of 1.5:1 (B) 6447.74

Total Fund Raising Capacity (A) + (B) 9419.7

22

Rating Review

Outstanding Credit Rating from All

Agencies as on Dec/2007

Short

Term

Long

Term

Fixed

Deposit

Medium

Term /

Term

Deposit

Corporate

Governan

ce

CRISIL

CARE

FITCH

ICRA A1+

Consolidated Results Vs. Standalone Results Rs. Crores

Standalone Consolidated % Diff

Mar 2007 Mar 2007 Consolidated

numbers higher

than Standalone

numbers by:

Net Sales 3367.82 7895.54 134.44%

Operating Income 3395.68 8124.66 139.26%

OPBDIT 519.61 2303.77 343.37%

PAT 224.97 242.89 7.97%

Tangible Networth 3214.42 295.25 -90.81%

Total Debt 2831.83 9223.57 225.71%

Net Fixed Assets 1223.92 3224.07 163.42%

Investments 3899.51 4543.39 16.51%

Net Current Assets 922.82 1751.36 89.78%

23

Summary Statements

24

Profit and Loss Account Rs. Crores

Period Ends On 31-Mar-07 % of OI 31-Mar-06 % of OI 31-Mar-05 % of OI

Income from Operation

Gross Sales 3524.95 2724.18 1816.68

Traded Goods Sales 0.00 0.00 137.75

Total Excise and Other Indirect Taxes -157.13 -4.46 -140.60 -5.16 -121.94 -6.24

Net Sales 3367.82 99.18 2583.58 98.78 1832.49 98.17

Other Related Income 27.86 0.82 32.00 1.22 34.09 1.83

Operating Income 3395.68 100.00 2615.58 100.00 1866.58 100.00

Expenditure:

Material Costs 1678.36 49.43 1297.30 49.60 887.81 47.56

Traded Goods Purchased 164.32 4.84 140.42 5.37 106.03 5.68

|Accretion| : Decretion to Stock -47.51 -1.40 -33.73 -1.29 -4.00 -0.21

Consumable Stores 76.77 2.26 63.54 2.43 48.39 2.59

Power and fuel 333.75 9.83 187.56 7.17 121.31 6.50

Employee Costs 193.22 5.69 164.03 6.27 125.16 6.71

Other Manufacturing Expenses 128.72 3.79 121.51 4.65 86.33 4.63

Other Expenses 123.75 3.64 93.58 3.58 72.14 3.86

Selling Expenses 225.09 6.63 203.00 7.76 172.88 9.26

Miscellaneous Expenses Written off 0.00 0.00 0.00 0.00 2.95 0.16

Less Expenditure Capitalised :excluding Interest 0.00 0.00 0.00 0.00 0.00 0.00

Cost of Sales 2876.07 84.70 2237.21 85.53 1621.09 86.85

Operating Profit Before Depn. Interest and Taxes

|OPBDIT|

519.61 15.30 378.37 14.47 245.49 13.15

Interest and finance Charges 196.38 5.78 69.30 2.65 23.09 1.24

Less Interest Capitalised -0.98 -0.03 -0.70 -0.03 -0.11 -0.01

Operating Profit Before Depn. and Taxes |OPBDT| 324.21 9.55 309.77 11.84 222.51 11.92

Depreciation 120.32 3.54 111.91 4.28 77.84 4.17

Operating Profit Before Tax |OPBT| 203.89 6.00 197.86 7.56 144.67 7.75

Non operating Income 99.06 2.92 67.43 2.58 14.77 0.79

Adjustments (Cash/Non cash) 40.62 1.20 15.99 0.61 5.29 0.28

Extraordinary Income 0.20 0.01 0.00 0.00 4.92 0.26

Extraordinary Expenses -11.20 -0.33 -4.04 -0.15 -12.57 -0.67

Profit Before Tax |APBT| 332.57 9.79 277.24 10.60 157.08 8.42

Tax 102.21 3.01 97.22 3.72 45.35 2.43

Provision for Deferred Tax 5.39 0.16 -6.91 -0.26 -1.99 -0.11

Profit After Tax |APAT| 224.97 6.63 186.93 7.15 113.72 6.09

Dividend 58.52 1.72 47.61 1.82 27.37 1.47

25

Balance Sheet Rs. Crores

Period Ends On 31-Mar-07 31-Mar-06 31-Mar-05

Assets

Gross Block 2454.83 2265.28 1225.10

Accumulated Depreciation -1434.79 -1352.71 -585.47

Capital Work in Progress 203.88 122.45 55.03

Net fixed assets 1223.92 1035.02 694.66

Total Investments (net of provision) 3849.39 1675.79 706.32

Total Inventory 475.26 526.33 355.00

Total Receivables 595.99 474.78 260.90

Total Non operational Inventory/assets 74.21 233.22 0.00

Loans & Advances 258.12 371.62 97.22

Cash and Bank Balances 22.74 20.32 9.41

TOTAL ASSETS 6499.63 4337.08 2123.51

Liabilities

Total Paid Up Equity Share Capital 93.31 59.89 59.88

Share Application Money Pending Allotment 0.00 0.00 0.00

Quasi equity share capital 0.00 23.61 0.00

Reserves & Surplus 3121.11 2191.31 1304.08

Tangible net worth 3214.42 2274.81 1363.96

Long term debt 1600.60 752.87 285.31

Short term debt 1231.23 810.70 207.72

Other Liabilities 393.73 424.78 228.58

Total Provisions 59.65 73.92 37.94

TOTAL LIABILITIES 6499.63 4337.08 2123.51

26

Industry Analysis

27

List of Companies included in Industry Aggregate.

* In Industry aggregates and Industry graphs all year endings are shown as March ending. Data of the latest three

years available is used for the reports.

Example: - For a June year ending company, data of June 2007 is included in March 2007. If the report of June

2007 is not available, June 2006 is added to March 2007.

Company 2007 2006 2005

Alok Industries Ltd. 3/31/2007 3/31/2006 3/31/2005

Century Enka Ltd. 3/31/2007 3/31/2006 3/31/2005

Garden Silk Mills Ltd. 6/30/2007 6/30/2006 6/30/2005

Indo Rama Synthetics (India)

Ltd.

3/31/2007 3/31/2006 3/31/2005

Aditya Birla Nuvo Ltd. 3/31/2007 3/31/2006 3/31/2005

RSWM Ltd. 3/31/2007 3/31/2006 3/31/2005

SRF Ltd. 3/31/2007 3/31/2006 3/31/2005

28

Industry Analysis

Profit and Loss Account

Financial Snapshot : (Rs Crore)

(YTD)

Mar 08

% Mar 2007 % Mar 2006 % Mar 2005 %

Operating Income 14694.81 100.00 12523.68 100.00 10133.02 100.00 8455.73 100.00

Cost of Sales 12459.67 84.79 10484.87 83.72 8858.47 87.42 7370.15 87.16

OPBDIT 2235.14 15.21 2038.80 16.28 1274.54 12.58 1085.58 12.84

Interest and Finance Charges 548.75 3.73 664.21 5.30 383.51 3.78 221.86 2.62

Less Interest Capitalised 0.00 0.00 -111.16 -0.89 -76.16 -0.75 -20.07 -0.24

Operating Profit Before

Depn. and Taxes |OPBDT|

1686.39 11.48 1485.75 11.86 967.20 9.55 883.79 10.45

Depreciation 735.42 5.00 586.08 4.68 496.34 4.90 400.02 4.73

OPBT 950.97 6.47 899.66 7.18 470.86 4.65 483.77 5.72

Non operating Income 0.00 0.00 223.87 1.79 177.36 1.75 49.25 0.58

PBT 950.97 6.47 1123.53 8.97 648.23 6.40 533.02 6.30

Cash Adjustments 0.00 0.00 53.48 0.43 23.64 0.23 29.00 0.34

Non cash Adjustments 0.00 0.00 16.03 0.13 0.00 0.00 0.00 0.00

Extraordinary Income -13.50 -0.09 0.20 0.00 94.15 0.93 10.64 0.13

Extraordinary Expenses 0.00 0.00 -14.04 -0.11 -16.51 -0.16 -5.36 -0.06

Reported Profit Before Tax

|RPBT|

937.47 6.38 1179.19 9.42 749.51 7.40 567.30 6.71

Tax 179.33 1.22 278.38 2.22 164.83 1.63 81.82 0.97

Def. Tax (liab) / asset 135.87 0.92 117.23 0.94 65.16 0.64 72.50 0.86

RPAT after def. Tax 622.27 4.23 783.59 6.26 519.52 5.13 412.98 4.88

Preference Dividend 0.00 0.00 0.74 0.01 7.59 0.07 8.50 0.10

RPAT after pref div 622.27 4.23 782.85 6.25 511.93 5.05 404.48 4.78

Operating Profit: (Rs Crore)

Mar 2007 % Mar 2006 % Mar 2005 %

PBT 1179.19 100.00 749.51 100.00 567.30 100.00

OPBT 899.66 76.29 470.86 62.82 483.77 85.28

29

Operating margin Trend (OPBDIT)

Period ended : OPM %

Mar 2007 16.28

Mar 2006 12.58

Mar 2005 12.84

Mar 2004 16.34

Mar 2003 17.69

Indexation of:

Mar 2007 Mar 2006 Mar 2005

Operating Income 148.11 119.84 100

RM & trade purchase Cost 143 115.44 100

Power & Fuel 193.99 143.94 100

Employee Cost 150.43 126.22 100

OPBDIT 187.81 117.41 100

RPAT after def tax. 189.74 125.80 100

Cost Analysis:

Mar 2007 Mar 2006 Mar 2005

RM & trade purchase cost % OI 62.90 62.55 64.93

Power & Fuel cost % OI 7.89 7.24 6.02

Employee cost % OI 4.11 4.26 4.04

Selling exp % OI 3.74 4.21 3.75

Finance cost %OI 4.42 3.03 2.39

Deprn. Cost % OI 4.68 4.90 4.73

30

Cash Flow

Net Cash Flow from: (Rs Crore)

Mar 2007 Mar 2006 Mar 2005

Operations 1097.28 986.23 550.72

Investing Activities -4247.85 -2534.05 -1259.16

Financing Activities 3428.53 1569.73 1033.74

Net increase in cash & cash

equivalents

277.96 21.91 325.30

Assets and Liabilities

Debtors Analysis : (Rs Crore)

Mar 2007 Mar 2006 Mar 2005

Debtors : More than 6 months 41.55 40.72 32.82

Debtors : Less than 6 months 1641.81 1138.92 961.05

Bills Receivable 1.30 59.78 1.66

Total Debtors 1684.66 1239.42 995.52

Debtors More than 6 months as % of Total

Debtors

2.47% 3.29% 3.30%

Inventory Breakup : (Rs Crore)

Mar 2007 Mar 2006 Mar 2005

Raw and Packing Materials 605.18 676.61 669.71

Work In Process 358.28 261.66 216.94

Finished Goods 709.16 464.06 616.09

Stores and Spares 182.03 120.33 77.34

Total Inventories 1854.64 1522.67 1580.07

Debt Coverage (no. of times) :

Mar 2007 Mar 2006 Mar 2005

LTD (Rs crores) 6947.81 4582.24 3023.68

Total Debt (Rs crores) 9625.87 6359.19 4107.49

CFO / Total Debt 0.11 0.16 0.13

GCA/ Total Debt 0.15 0.17 0.22

Interest Coverage Ratio 4.19 4.93 5.56

31

Asset structure: (times)

Mar 2007 Mar 2006 Mar 2005

Gross Block (Rs. crs) 12698.17 10225.46 7803.82

Net Operating Curr.* Assets (Rs.crs) 3647.46 2637.27 2333.08

Net operating Assets/Total Assets 0.66 0.68 0.77

Net Total Investment/Total Assets 0.26 0.17 0.12

Other Assets/Total Assets 0.08 0.15 0.11

OPBDIT / Net Operating Assets 0.18 0.15 0.16

OPBT / Net Operating Assets 0.08 0.06 0.07

*current

Share Capital And Reserves: (Rs Crore)

Mar 2007 Mar 2006 Mar 2005

Paid up Capital 545.90 496.22 480.12

Gross Reserves 6930.05 5362.26 4164.05

Intangible Assets 88.45 105.12 120.00

Misc Exp. Not w/o 3.04 3.35 4.36

Debit Balance in P&L 0.00 0.00 0.00

Net Reserves 6838.56 5253.79 4039.68

Tangible Networth 7386.34 5778.37 4523.13

Ratios

Some Key Ratios :

Mar 2007 Mar 2006 Mar 2005

OI/Gross Block 0.99 times 0.99 times 1.08 times

ROGNW 12.05 % 9.93 % 10.45 %

ROCE 10.13 % 8.63 % 8.78 %

Debt:Equity Ratio 1.30 times 1.10 times 0.91 times

Current Ratio 1.27 times 1.27 times 1.36 times

Debtors to Sales 57 Days 55 Days 51 Days

FG Inventory as cost of sales 25 Days 19 Days 31 Days

Payables to cost of sales 55 Days 58 Days 58 Days

32

Effect of Forex and Interest

% Effect of exchange rate fluctuations on profits of the company

Period ended, 31st Mar 2007 Mar 2006 Mar 2005

Net inflow/ (outflow) as % of PBT -24.07% -62.92% -122.48%

PBT (Rs. Crore) 1179.19 749.51 567.30

Impact on PBT on 5% change in forex rate.(Rs. Crore)(+/-) 29.60 8.77 4.80

% Impact on PBT on 5% change in forex rate. (+/-) 2.51 1.17 0.85

Impact on PBT on 10% change in forex rate.(Rs. Crore)(+/-) 59.21 17.55 9.59

% Impact on PBT on 10% change in forex rate. (+/-) 5.02 2.34 1.69

% Effect of interest rate variation on profits of the company

Period ended, 31st Mar 2007 Mar 2006 Mar 2005

Average Debt (Rs. Crore) 7992.53 5233.34 3542.54

PBT (Rs. Crore) 1179.19 749.51 567.30

Impact on PBT of 1% change in interest rate.(Rs. Crore)(+/-) 79.93 52.33 35.43

%Impact on PBT of 1% change in interest rate. (+/-) 6.78 6.98 6.25

Impact on PBT of 2% change in interest rate.(Rs. Crore)(+/-) 159.85 104.67 70.85

%Impact on PBT of 2% change in interest rate. (+/-) 13.56 13.96 12.49

33

Company Vs Industry

34

Income and Profit Analysis:

35

Cost Analysis :

36

37

Ratio Analysis :

38

39

40

Industry Graphs

41

Marketcap & Net Worth

Year-2007 (Rs Crore)

Company Marketcap Net worth

Aditya Birla Nuvo Ltd. 9906.54 3214.42

Alok Industries Ltd. 971.96 1166.26

Century Enka Ltd. 250.32 589.64

Garden Silk Mills Ltd. 218.06 428.76

Indo Rama Synthetics (India) Ltd. 667.70 733.05

RSWM Ltd. 207.64 313.94

SRF Ltd. 834.72 940.27

Industry 13056.94 7386.34

42

Debt Equity ratio


Company DEBT Net worth






RSWM Ltd. 910.03 313.94

SRF Ltd. 483.64 940.27

Industry 9625.87 7386.34

43

Operating Profit and Net Profit Margin


Company OPM NPM






RSWM Ltd. 10.00 4.08

SRF Ltd. 30.47 15.99

44

Return on Net Worth (RONW) and Return on Capital Employed (ROCE)

Year-2007

Company RONW ROCE






RSWM Ltd. 17.95 7.47

SRF Ltd. 32.72 33.41

45

Current Ratios

Year-2007

Year Mar-2007 Mar-2006 Mar-2005

Aditya Birla Nuvo Ltd. 1.04 1.40 1.48

Alok Industries Ltd. 1.72 1.85 2.34

Century Enka Ltd. 1.39 0.97 1.15

Garden Silk Mills Ltd. 1.79 1.61 1.94

Indo Rama Synthetics (India) Ltd. 0.80 0.51 0.76

RSWM Ltd. 1.38 1.35 1.31

SRF Ltd. 1.33 1.06 0.92

46

Operating Income





Century Enka Ltd. 979.25 989.66 955.13



RSWM Ltd. 1079.07 1000.17 765.05

SRF Ltd. 1807.09 1203.76 1059.84

47

Profit after tax





Century Enka Ltd. 16.72 17.59 52.56



RSWM Ltd. 44.07 27.08 18.40

SRF Ltd. 289.07 104.77 60.05

48

CONTACT DETAILS:

Contact Person: Ms. Megha Chopra

Address: CRISIL Research,

CRISIL Limited

1187/17, Ghole Road,

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Tel.: +91-20-2553 9064-67

Fax.: +91-20-2553 9068

E-mail : [email protected]

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Documents

Finalyssis Aditya Birla Nuvo