Kpr mill report_update_q3_fy12_v17_apr_2012

C O M P A N Y U P D A T E

India

17 Apr 2012 KPR Mill Rs 80.85

Sec to r : Text i le Underpower ed , but r eady to soar

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BSE Sensex 17,358

Nifty 5,290

52 week high (Rs) 194

52 week low (Rs) 77

Bloomberg KPR.IN

NSE Code KPRMILL

BSE Code 532889

Equity Shares (m)

37.68

Face Value (Rs) 10

Market Cap (Rs mn)

3,047

Share Price Performance %

KPR Sensex

1 week -1.3 0.7

1 month -4.0 -0.6

3 month -10.0 5.4

6 month -15.3 2.0

1 year -56.8 -10.5

Shareholding Pattern (Mar’11)%

Promoters 74.48

FIIs/ FVCIs 8.88

DII 1.08

Corporates 3.36

Others 12.5

KPR Mill has braved industry headwinds to report 15.4% growth in

9mFY12 revenues, EBITDA margin of 14.38% and PAT margin of 2.9%.

Tamil Nadu’s power crisis affected output in Q3FY12, resulting in reduced

utilization and delay in operations of new high-value compact yarn

spinning facilities, but the company managed to stay in black.

Compact Yarn capacity fully operational from January 5, 2012

KPR’s new capacity is fully operational from January 5, 2012, increasing

the Yarn capacity to 90,000MT p.a.

Power situation to improve after June

The power deficit in the state may continue till June when monsoon

arrives, and wind-mills produce power. Henceforth, we expect the

utilization to be in line with historical numbers. The state government has

already fast-tracked power projects.

We have revised downward revenue and PAT estimates for FY12. FY13 has

also been reduced on account of expected utilization drop due to state’s

power issues in Q1.

A cocktail of right fundamentals and future growth potential

With yarn capacity now increased by 60% to 90,000MT, KPR is poised to

reap rich benefits from textile demand revival.

KPR has the healthiest balance sheet among peers even with

recent capacity expansion, modernization and debt for Sugar Mill.

Growth drivers for FY13: FY13 will benefit from new high value-

add Compact Yarn capacity. Power self-sufficiency by H2FY13 will

save costs and ensure operations continuity year round. Sugar mill

operations will commence in Q3FY13. Textile sector will witness

revival as cotton prices have now stabilized worldwide.

We have revised our Mar’13 price target from Rs 240 to Rs 180, as

power shortage will result in underperformance in Q1FY13 too,

lowering the FY13 EBITDA and PAT margins.

Despite challenges in FY12, KPR remains a quality stock, and

amongst the best picks in the textile space. FY13 will see profit

revival and FY14 could see return to full profitability. At a likely

FY14 PE <2x, and D/E of <1x, KPR offers value at current price.

NL = Not Listed

FY'07 FY'08 FY'09 FY'10 FY'11 FY'12e FY'13e FY'14e

Revenue (Rs. Mn) 4,974 6,064 7,477 8,340 11,074 12,755 16,165 19,757

EBITDA (Rs. Mn) 1,359 1,384 1,097 1,641 2,493 1,786 2,942 3,996

PAT (Rs. Mn) 584 793 101 504 722 332 931 1,839

EBITDA margin (%) 27 23 15 20 23 14.0 18 20

Net margin (%) 11.7 13.1 1.4 6.0 6.5 2.6 5.8 9.3

ROE (%) 21 19 2 10 13 5 14 24

ROCE (%) 15 10 5 9 11 6 11 18

P/E Ratio (x) NL 4.6 7.7 8.3 9.7 9.5 3.3 1.7

EV/EBITDA (x) 5.3 6.7 5.1 5.0 5.5 6.9 3.9 2.2

D/E 1.3 1.2 1.0 0.8 1.3 1.6 1.3 0.8

Dividend Yield (%) NL 5.2 9.7 4.9 3.3 4.9 6.2 7.4

Company Update: KPR Mill 17 Apr’12

Four-S Research 2

Performance Update

Underpowered in Q3FY12

Tamil Nadu power woes affect performance

TN power issues

have impacted

Coimbatore-based

manufacturing

facilities

Tamil Nadu is facing power shortage of ~4000MW leading to power

cuts of as high as five-six hours in daytime in areas like Coimbatore.

This has impacted the operations of manufacturing industries.

Tamil Nadu Generation and Distribution Ltd (TANGEDCO) estimates

power demand in Tamil Nadu to be around 11,500-12,500MW

growing by 10% on back of industrial capacity additions. The Supply

is pegged to be around 8,500MW at present, leaving the state with a

shortage of upto 4,000MW.

TANGEDCO has started a day per week as power holiday hitting the

Coimbatore textile industry with an estimated Rs 3bn production loss

per day. TN’s Distribution utility has demanded a 64% rise in energy

charges for FY13.

Q3 impacted due to reduced utilization

Q3FY12 utilization

reduced to 85%

due to power

shortage

KPR’s Q3 performance was affected as utilization reduced to 85%

from 90% levels. Also, KPR had to bear additional power cost of Rs

45mn has it sought to buy merchant power to partially fill the supply

gap.

KPR Mill Q3FY'12 Q2FY'12 Q-o-Q Q3FY'11 Y-0-Y

Operating Income 2,820 3,401 -17% 3,037 -7%

Raw Material costs 1,873 2,443 -23% 1,819 3%

Employee Cost 206 181 14% 253 -19%

Other Expenditure 310 312 -1% 262 19%

EBITDA 430 465 -7% 703 -39%

EBITDA Margin% 15.3% 13.7%

23.1% Depreciation 255 247 3% 191 34%

EBIT 175 218 -20% 512 -66%

Interest 133 122 9% 52 155%

Other Income 13 12 12% 6 136%

PBT 55 108 -49% 465 -88%

Tax 1 (2) -133% 129 -99%

PAT 54 110 -51% 336 -84%

PAT Margin % 1.9% 3.2%

11.1% Rs Mn

Q3 revenue declined 17% QoQ and PAT declined 51% QoQ. If we

exclude the MTM loss of Rs 122.4mn taken as other expenditure in

Q2, Q2FY12 EBITDA margin be 17.3%. Hence on a QoQ basis, there

was a decline in EBITDA margin as well.

Exports growing strongly

YTD FY12 revenues boosted by exports

YTD revenues up

15% YoY, Margins

KPR achieved a nine monthly revenue growth of 15% YoY, at par

with peer average. KPR’s exports increased 44.5% YoY and


Four-S Research 3

impacted due to

industry issues

accounted for 35% of revenues compared to 27% in corresponding

period last year.

While Garment exports increased 14% YoY, KPR stepped up exports

of other products – Yarn and Fabrics in YTD FY12.

KPR Mill 9M FY'11 9M FY'12 YoY

Operating Income 8,072 9,314 15%

Raw Material costs 4,745 6,694 41%

Employee Cost 595 610 3%

Other Expenditure 716 671 -6%

EBITDA 2,016 1,339 -34%

EBITDA Margin% 25.0% 14.4% Depreciation 548 734 34%

EBIT 1,468 605 -59%

Interest 172 321 87%

Other Income 14 37 166%

PBT 1,310 320 -76%

Tax 367 50 -86%

PAT 942 270 -71%

PAT Margin % 11.7% 2.9%

Cotton situation normalises

While the 9m results show high cotton costs, this is more an impact

of Q1, when KPR took a Rs 278mn write-off due to sharp drop in

cotton prices. Since then, cotton prices trended towards to historical

trading range. Going forward, we expect raw material cost/sales to

come down to normal range of around 65%. For company yarn, the

ratio would be even better since it enjoys higher margins.

KPR has also taken an MTM expense of Rs 122.4mn in Q2FY12 due

to rupee depreciation.

The depreciation costs are higher on YoY basis as KPR revised the

depreciation charges on windmill after reassessment of useful life in

Q4FY11.

Monthly Average Prices of Benchmark Cotton Variety –

Shankar 6/4

Steep fall in

cotton prices in

Q1 resulted in

inventory write-

down of Rs

278mn. Prices

have maintained

at stable levels,

thereafter.

Source: Textile Corporation of India


Four-S Research 4

High raw material prices lower industry

profitability

Raw Material

price volatility

affected entire

industry.

The higher raw material costs have lowered textile industry

profitability in this financial year. Average EBITDA margin of peer

group declined from 17.8% last year to 15.4% in 9mFY12.

*Consolidated results

**Q3 MTM loss excluded as KPR has not taken it to make results comparable, for

Arvind exceptional profit on sale of JV stake in Arvind Brands excluded

Negative margins excluded from average calculation

Revenue growth at par, profitability marginally lower

KPR’s revenue growth was at par with peer group in 9mFY12. Its

EBITDA was 100 basis points lower than the peer average and PAT

margins were ~200basis points lower than the peer group.

Four out of eleven peers posted losses in the period and four others

witnessed a decline in profitability.

Valuation – ttm multiples at premium

KPR is trading at a premium as far as its ttm EV/EBITDA and P/E

multiples are concerned, on account of lower profitability.

However, its EV/Sales and P/B multiples are at a discount of 28%

and 44% with respect to the peer group average.

Company

9mFY'12 YoY 9mFY'11 9mFY'12 9mFY'11

9mFY'12

reported

9mFY'12

Adj

Large Integrated Players

Alok Industries 61,581 48.1% 27.8% 28.5% 5.2% 1.6% 4.5%

Arvind Ltd.* 36,539 26.5% 13.1% 14.6% 3.7% 10.1% 5.9%

Vardhman 29,996 9.4% 25.0% 12.5% 12.0% 1.8% 1.8%

Bombay Rayon 19,388 23.5% 26.9% 26.0% 11.1% 8.5% 8.5%

Welspun India 18,602 18.4% 13.2% 16.5% 3.6% 4.2% 4.5%

Mid-Size Integrated Players

Nahar Spinning 12,277 17.6% 22.4% -2.9% 10.1% -9.9% -9.9%

Mandhana Industries 6,526 20.0% 19.1% 20.3% 9.1% 7.6% 7.6%

Mudra Lifestyle 1,632 -50.3% 12.3% -112.4% -1.4% -175.5% -175.5%

Garment Focused Exporters

House of Pearl Fashions* 18,814 20.7% 0.8% 2.4% 0.7% 0.9% 0.9%

Gokaldas Exports 7,259 -13.7% -2.9% -0.1% -7.3% -11.2% -10.5%

Celebrity Fashions 1,170 -13.3% -4.5% 2.1% -9.8% -9.3% -9.3%

Mean 15.7% 17.8% 15.4% 6.9% 5.0% 4.8%

KPR Mill* 9,314 15.4% 25.0% 14.4% 11.7% 2.9% 2.9%

Revenue (Rs mn) EBITDA Margin (%) Net Margin (%)


Four-S Research 5

KPR trades at a

discount as far as

its P/B and EV/

Sales multiples

are concerned.

Note: CMP as of 17th April 2012, Outstanding shares as on 31st march 2012, except for

Alok Industries.

Projections and Price Target

We revise the revenue and PAT for FY12 and 13

Estimates are

revised due to

unexpected

power issues in

Coimbatore

We have revised our estimates for KPR Mill in FY12 and FY13 taking

the YTD performance and state’s power shortage into account.

While we had already projected a low margin of 4% for FY12, taking

into account the cotton price volatility, unforeseen factors such as

rupee depreciation and state power shortage has further affected

YTD performance. Hence, we further reduce the FY12 projections.

As the TN State power shortage will take some time to resolve, and

wind-power will get efficient in monsoon season, we can expect first

quarter of FY13 also to be impacted. Hence, we have downward

revised FY13 as well.

Fundamental growth drivers in place

Growth from higher value addition, increased exports

High-value Yarn

capacity addition

of 60% will be a

KPR has increased its yarn capacity by 60% with addition of high-

value compact yarn and melange yarn capacities. The compact yarn

unit has gone fully operational from 5th January, 2012. FY13e will

Company EV/Sales EV/EBITDA PE P/B D/E

(x) (x) (x) (x) Sep-11

Large Integrated Players

Alok Industries 1.3 4.6 3.3 0.5 3.1

Arvind Ltd. 0.9 6.5 7.8 1.2 1.5

Vardhman 0.9 5.8 7.0 0.7 1.2

Bombay Rayon 2.5 10.6 15.8 1.2 1.1

Welspun India 0.8 5.1 NM 0.5 2.5

Mid-Size Integrated Players

Nahar Spinning 0.8 35.1 NM 0.3 1.9

Mandhana Industries 1.5 8.2 12.5 2.2 1.6

Mudra Lifestyle 1.9 NM NM NM 24.2

Garment Focused Exporters

House of Pearl Fashions 0.2 6.2 5.8 0.3 0.9

Gokaldas Exports 0.6 NM NM 0.9 1.0

Celebrity Fashions 0.9 50.6 NM NM NM

Mean 1.1 6.7 8.7 0.9 1.6

KPR Mill 0.8 7.7 61.2 0.5 1.2

FY14e

Revised Previous Var% Revised Previous Var% Added

Revenue (Rs. Mn) 12,755 14,003 -9% 16,165 17,743 -9% 19,757

EBITDA (Rs. Mn) 1,786 2,231 -20% 2,942 3,472 -15% 3,996

PAT (Rs. Mn) 332 566 -41% 931 1,367 -32% 1,839

EBITDA margin (%) 14.0 15.9 18.2 19.6 20.2

Net margin (%) 2.6 4.0 5.8 7.7 9.3

FY12e FY13e


Four-S Research 6

key growth driver

aided by

increased traction

in exports and

commencement of

Sugar Mill

operations

have the full benefit of added capacity.

KPR has gained traction in exports with FY08-11 CAGR of 28% to

reach ~Rs 3bn by FY11 by mainly exporting garments. In 9mFY12, it

has stepped up yarn exports as well, and achieved an exports growth

of 44.5% YoY. We expect the momentum to continue.

KPR Sugar Mills will also commence operations from H2FY12.

State’s Power Situation to improve by June 2012

TN State has fast-

tracked many

power projects,

and expects to

resolve the

shortage

TANGEDCO expects the power deficit to be overcome once wind-mill

generation increases from June 2012 onwards. Many new power

projects, including the Kudankulam Nuclear Power Project are

expected to be commissioned this year.

TN’s Chief Minister has also planned Udangudi Power Corporation’s

1,600MW project as a state government project and fast tracked it.

100% self-sufficiency in Power

With Co-Gen cum

Sugar Mill going

operational in

FY13 sugar

season, KPR will

get year around

self-sufficiency

While KPR is already meeting 75% of its power requirements through

Wind-Mills, its Co-gen cum Sugar Mill will give it 100% power self-

sufficiency in FY13. This will help it save on power costs (power

tariffs are expected to be increased this year) and increase its

utilization levels.

Compared to other peers, KPR will have a competitive advantage in

power.

Cotton costs have stabilized, expected to remain flat

World cotton prices have stabilized with Production expected to

surpass consumption in cotton season 2011-12. ICAC predicts world

cotton production to rise 7% YoY to 26.78MT in 2011-12 whereas

Global cotton mill use will remain stable at 23.73MT, significantly

lower than production.

As per Cotton Corporation of India, the area under cotton cultivation

will increase to 121.9 lakh hectares in 2011-12, an increase of 9.4%

YoY. Cotton Advisory Board predicts closing stock to increase by

14.5% in 2011-12 season at estimated production levels and

reduced mill consumption. Hence, cotton prices would face flat to

downward pressures.


Four-S Research 7

Cotton prices are

expected to be

stable going

forward

Source: Office of Textile Commissioner

Valuation and Price target

KPR is trading at a P/E of 3.3x and EV/ EBITDA of 3.9X its FY13

numbers, much lower than peer average of 8.7x and 6.7x,

respectively.

At current prices, KPR gives a strong dividend yield as well.

Valuations will

restore to

historical levels

by end of FY13

We expect valuations to move towards historical numbers of 8x P/E

and 5X, EV/ EBITDA as industry challenges are mitigated. With

power situation expected to be normal from June 2012 onwards,

stable cotton prices and increase of utilization to normal numbers,

we expect KPR to cross Rs 180 per share mark by March 2013.

33.9

22.1

6.94.8

34.5

21.6

8.4

5.5

0

5

10

15

20

25

30

35

40

Production Mill Use Exports Closing stock2010-11 2011-12


Four-S Research 8

Financial Annexure

Profit & Loss Statement

FY07 FY08 FY09 FY10 FY11 FY12E FY13E FY14E

Net Sales 4,816 5,739 7,182 8,032 10,494 12,089 14,452 15,631

Other Operating Income 158 324 295 308 581 666 708 776

Revenue from Sugar Mill

1,005 3,350

Revenue from Operations 4,974 6,064 7,477 8,340 11,074 12,755 16,165 19,757

(Increase) / Decrease In

Stock In Trade & WIP (132) (47) 14 (119) (605) (335) 116 58

Consumption of Raw Materials 3,175 3,888 5,231 5,171 7,243 8,745 9,615 10,366

Manufacturing Expenses 230 152 216 344 431 440 526 568

Power and Fuel expenses - 193 236 261 336 575 609 442

Personnel Expenses 161 315 493 609 821 915 1,066 1,119 Administrative & Other Expenses 51 46 55 274 163 288 226 245 Selling & Distribution Expenses 131 133 134 160 192 219 262 283 MTM expenses done in Q2FY12

122

Expenses for Sugar Mill

804 2680

Total Expenses 3,615 4,679 6,380 6,699 8,581 10,969 13,224 15,761

EBITDA 1,359 1,384 1,097 1,641 2,493 1,786 2,942 3,996

Depreciation 364 470 560 705 1,257 952 1,311 1,316

EBIT 995 914 537 936 1,236 834 1,631 2,680

Other Income 16 88 29 31 21 49 84 109

Financial Expenses 209 176 384 273 323 440 474 338

PBT 802 826 183 693 934 443 1,241 2,451

Provision for Taxes 218 33 82 189 212 111 310 613 Profit after Tax before Minority Interest 584 793 101 504 722 332 931 1,839

Minorities Interest and Others - - - - - - -

Reported Net Profit 584 793 101 504 722 332 931 1,839

(Rs mn)


Four-S Research 9

Common Size FY07 FY08 FY09 FY10 FY11 FY12E FY13E FY14E

Net sales 96.8% 94.6% 96.1% 96.3% 94.8% 94.8% 89.4% 79.1%

Other Operating Income 3.2% 5.4% 3.9% 4.1% 5.2% 5.2% 4.4% 3.9%

Sugar Mill Income 6.2% 17.0%

Revenue from Operations 100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

(Increase) / Decrease In Stock In Trade

-2.7% -0.8% 0.2% -1.4% -5.5% -2.6% 0.7% 0.3%

Consumption of Raw Materials 63.8% 64.1% 70.0% 62.0% 65.4% 68.6% 59.5% 52.5%

Manufacturing expenses 4.6% 2.5% 2.9% 4.1% 3.9% 3.4% 3.3% 2.9%

Power and Fuel expenses 0.0% 3.2% 3.2% 3.1% 3.0% 4.5% 3.8% 2.2%

Personnel expenses 3.2% 5.2% 6.6% 7.3% 7.4% 7.2% 6.6% 5.7%

Administrative & Other expenses 1.0% 0.8% 0.7% 3.3% 1.5% 2.3% 1.4% 1.2%

Selling & Distribution expenses 2.6% 2.2% 1.8% 1.9% 1.7% 1.7% 1.6% 1.4%

MTM expenses done in Q2FY12 1.0%

Operational expenses for Sugar Mill 5.0% 13.6%

Total Expenses 72.7% 77.2% 85.3% 80.3% 77.5% 86.0% 81.8% 79.8%

EBITDA 27.3% 22.8% 14.7% 19.7% 22.5% 14.0% 18.2% 20.2%

Depreciation 7.3% 7.8% 7.5% 8.5% 11.3% 7.5% 8.1% 6.7%

EBIT 20.0% 15.1% 7.2% 11.2% 11.2% 6.5% 10.1% 13.6%

Other Income 0.3% 1.5% 0.4% 0.4% 0.3% 0.6% 1.0% 1.3%

Financial Expenses 4.2% 2.9% 5.1% 3.3% 2.9% 3.4% 2.9% 1.7%

Profit before tax 16.1% 13.6% 2.4% 8.3% 8.4% 3.5% 7.7% 12.4%

Provision for taxes 4.4% 0.5% 1.1% 2.3% 1.9% 0.9% 1.9% 3.1%

Profit after tax before minority interest

11.7% 13.1% 1.4% 6.0% 6.5% 2.6% 5.8% 9.3%

Minorities Interest and others 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Reported net profit 11.7% 13.1% 1.4% 6.0% 6.5% 2.6% 5.8% 9.3%


Four-S Research 10

Balance Sheet


Share Capital 318 377 377 377 527 556 556 556

Reserves and Surplus 3,009 4,711 4,722 4,985 5,437 5,581 6,280 7,843

Total equity capital 3,327 5,087 5,099 5,362 5,964 6,137 6,836 8,399

Secured Loans 3,938 6,032 5,118 4,392 7,130 9,312 8,381 5,881

Unsecured Loans 225 212 190 158 122 145 173 188

Deferred Tax Liability 317 337 396 534 419 177 496 981

Total Liabilities 7,807 11,669 10,803 10,446 13,634 15,772 15,887 15,448

Goodwill - - - - - 7 7 7

Gross Block 6,053 9,494 9,924 10,104 11,764 13,918 17,114 17,363

Less: Depreciation 698 1,160 1,719 2,414 3,620 4,572 5,883 7,199

Net Fixed Assets 5,355 8,333 8,206 7,690 8,144 9,346 11,231 10,165

Work-in-progress 1,328 136 3 255 1,775 2,557 - -

Investments 3 50 - - - 600 600 600

Inventory 1,219 1,679 2,070 1,360 2,944 2,625 3,138 3,394

Debtors 599 942 1,184 1,161 1,252 1,474 1,762 1,905

Cash and Bank Balance 272 594 462 522 397 110 102 304

Other Current Assets 133 182 229 149 70 158 158 153

Loans and Advances 383 562 551 668 564 631 634 614

Total Current Assets 2,607 3,959 4,497 3,860 5,226 4,997 5,796 6,376

Current Liabilities 1,365 581 1,792 1,117 1,372 1,577 1,584 1,536

Provision 121 228 112 242 139 158 158 154

Total Current Liabilities 1,486 809 1,903 1,359 1,511 1,735 1,743 1,690

Net Current Assets 1,121 3,150 2,594 2,501 3,715 3,262 4,049 4,676

Miscellaneous expenditure - - - - - 0 - -

Total Assets 7,807 11,669 10,803 10,446 13,634 15,772 15,887 15,448

(Rs mn)


Four-S Research 11

Cash Flow Statement

FY08 FY09 FY10 FY11 FY12E FY13E FY14E

Net Profit/(Loss) before Tax 826 183 693 934 443 1,241 2,451

Add Depreciation 470 560 705 1,257 952 1,311 1,316

Loss on Fixed Assets 6 1 3 20 - - -

Interest Expense 176 384 273 323 440 474 338

Interest Income (49) (21) (20) (15) - - -

Dividend Income (10) (4) (10) (6) - - -

(Increase)/Decrease in

Trade/Other Receivables (343) (242) 4 (92) (221) (288) (144)

(Increase)/ Decrease in Loans and Advances (177) 11 (97) (38) (67) (3) 19

(Increase)/Decrease in Inventories (460) (391) 710 (1,584) 319 (513) (256)

(Increase)/Decrease in Other Current Assets (48) (78) 80 77 (88) (1) 5

Increase/(Decrease) in Trade/Other Payables (784) 1,211 (674) (55) 224 8 (53)

Direct Taxes Paid (10) (65) (94) (186) (352) 9 (129)

Increase/(Decrease) in Deferred Tax Liabilities 20 59 138 (115) (241) 319 484

Operating Cash-flow- A (403) 1,547 1,574 638 1,649 2,238 3,548

Purchase of Fixed Assets (2,282) (302) (454) (2,815) (2,944) (639) (249)

Proceeds from Sale of Fixed Assets 20 2 10 26 - - -

Purchase of Investments (50) - (2,745) (3,625) (600) - -

Proceeds from Sale of Investment 5 50 2,745 3,625 - - -

Dividend Received 7 4 10 6 - - -

Interest Received 49 21 20 17 - - -

Cash from Investing activities- B (2,250) (225) (414)

(2,767) (3,544) (639) (249)

Proceeds from Share Capital 59 -

- 29 - -

Proceeds from Securities Premium 1,129 (1) (Repayment)/ Proceeds of Secured

Loans 2,094 (914) (707) 2,715 2,183 (931) (2,500)

(Repayment)/ Proceeds of Unsecured Loans (13) (22) (32) (37) 24 28 14

Interest Paid (176) (384) (273) (301) (440) (474) (338)

Dividend Paid (85) (113) (75) (320) (161) (237) (274)

Tax on Dividend (32) (19) (13) (53) (27) (39) (46)

Cash from Financing activities- C 2,975 (1,453) (1,100) 2,004 1,608

(1,653)

(3,143)

Change in Cash= A+B+C 322 (132) 60 (125) (287) (54) 155

Opening Balance 272 594 462 522 397 110 56

Closing Balance 594 462 522 397 110 56 211

(Rs mn)


Four-S Research 12

Ratios


Per Share Numbers

EPS

21.1 2.7 13.4 19.0 8.5 24.4 48.5

CEPS

33.5 17.5 32.1 52.3 33.8 59.2 83.4

DPS

5.0 2.0 5.5 6.0 4.0 5.0 6.0 Adjusted Book Value per Share

135.0 135.3 142.3 154.3 158.9 177.4 218.9

Profitability EBITDA margin 27.3% 22.8% 14.7% 19.7% 22.5% 14.0% 18.2% 20.2%

Pre-tax margin 16.1% 13.6% 2.4% 8.3% 8.4% 3.5% 7.7% 12.4%

Net margin 11.7% 13.1% 1.4% 6.0% 6.5% 2.6% 5.8% 9.3%

ROAE 21.0% 18.9% 2.0% 9.6% 12.8% 5.5% 14.3% 24.1%

ROACE 15.5% 9.7% 4.9% 9.2% 10.7% 5.8% 10.5% 18.0%

Growth Revenue growth - 21.9% 23.3% 11.5% 32.8% 15.2% 26.7% 22.2%

EBITDA growth - 1.9% -20.8% 49.6% 51.9% -28.3% 64.7% 35.8%

Net profit growth - 3.0% -77.9% 278.9% 43.2% -54.0% 179.9% 97.5%

Turnover Net Asset turnover 0.6 0.6 0.6 0.7 0.9 0.8 1.0 1.2

Net Working Cap turnover 6.2 2.8 2.6 3.3 3.6 3.7 4.4 4.6

Debtors turnover 9.8 7.9 7.0 7.1 9.2 9.4 10.0 10.8

Debtor Days 37 46 52 51 40 39 37 34

Inventory turnover 5 4.2 4.0 4.9 5.1 4.6 5.6 6.0

Inventory Days 75 87 92 75 71 80 65 60

Payables turnover 4 6 6 6 9 9 10 13

Payables Days 93 59 58 64 41 42 36 29

Liquidity Ratios Current Ratio 1.8 4.9 2.4 2.8 3.5 2.9 3.3 3.7

Quick Ratio 0.9 2.8 1.3 1.8 1.5 1.4 1.5 1.7

Cash Ratio 0.1 0.2 0.7 0.2 0.4 0.3 0.1 0.0

Solvency Debt Equity 1.3 1.2 1.0 0.8 1.3 1.6 1.3 0.8

Leverage Ratio 2.3 2.3 2.1 1.9 2.3 2.6 2.4 1.9

Net Debt / EBITDA 2.9 4.1 4.4 2.5 2.8 5.3 2.9 1.5

Interest Coverage 4.8 5.2 1.4 3.4 3.8 1.9 3.4 7.9

Valuation Ratios P/E NM 4.6 7.7 8.3 9.7 9.5 3.3 1.7

P/BV NM 0.7 0.2 0.8 1.2 0.5 0.5 0.4

EV/EBITDA 5.3 6.7 5.1 5.0 5.5 6.9 3.9 2.2

EV/Sales 1.5 1.5 0.8 1.0 1.2 1.0 0.7 0.5

Dividend Payout

24% 75% 41% 31% 47% 21% 12%

Dividend Yield

5.2% 9.7% 4.9% 3.3% 4.9% 6.2% 7.4%

(Rs mn)


Four-S Research 13

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