LNT, 25th January

7/29/2019 LNT, 25th January

1/15

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

Op. profit 1,475 1,368 1,406 7.8 4.9

Source: Company, Angel Research

Larsen and Toubro (L&T) posted a mixed set of numbers for 3QFY2013, with

decent growth on the revenue front but a fall in the EBITDA margin (owing to

higher input cost). Despite a drop in margins, earnings growth was higher-than-

expected owing to huge surge in other income. As of 3QFY2013, L&Ts order

backlog stands at`1,62,334cr, indicating a growth of 11.4% yoy. Order inflow

for the quarter jumped by 14.1% to `19,545cr mainly driven by major orders

bagged in the Infrastructure, power and hydrocarbon segment.

L&Ts top-line at `15,429cr,

registering a growth of 10.3% yoy for the quarter, was marginally lower than our

estimate of `15,790cr. This growth was mainly on account of pick up in

execution in the engineering and construction (E&C) segment. Segment wise, the

E&C segment reported an 11.4% yoy growth; however the machinery and

industrial products (MIP) and electrical and electronics (E&E) segments

performance was muted. The company reported an EBITDA of `1,475cr,indicating a growth of 7.8% yoy. EBITDAM came in at 9.6%, a decrease of 22bp

yoy, and was below our estimate of 11.2%. PAT grew by 13.2% yoy to`1,122crowing to surge in other income.

For FY2013, the management has reiterated its guidance

of a 15-20% growth for both revenue and order inflow and +/- 50bp on EBITDA

margins. We believe given its robust order backlog, healthy order inflows during

the past few quarters and strong execution capabilities, the company is well

placed to achieve its guidance on both- order inflow and revenue front. We

believe L&T is best placed to benefit from a gradual recovery in the capex cycle, given

its diverse exposure to sectors and a strong balance sheet.

% chg 18.6 21.1 14.1 14.6

% chg 15.5 17.8 (1.7) 18.8

EBITDA Margin (%) 12.9 11.8 10.6 11.2

P/E (x) 29.1 24.7 25.1 21.1

RoAE (%) 16.6 16.7 14.4 15.2

RoACE (%) 18.5 17.3 14.7 15.4

P/BV (x) 4.4 3.8 3.4 3.0

EV/Sales (x) 2.4 2.0 1.8 1.6

EV/EBITDA (x) 18.3 16.7 16.8 14.3

OB/Sales (x) 3.0 2.8 2.7 2.7

Order inflows (`cr) 79,769 70,574 78,048 86,346

% chg 14.7 (11.5) 10.6 10.6


CMP `1,586

Target Price `1,788

Investment Period 12 Months

Stock Info

Sector

Net debt (` cr) 9,396

Bloomberg Code

Shareholding Pattern (%)

Promoters -

MF / Banks / Indian Fls 36.7FII / NRIs / OCBs 20.9

Indian Public / Others 42.3

Abs. (%) 3m 1yr 3yr

Sensex 6.5 16.7 18.7

LT (6.7) 19.1 6.4

Infrastructure

Market Cap (` cr) 97,496

Beta 1.2

52 Week High / Low 1720/1106

Avg. Daily Volume 210,865

Face Value (`) 2

BSE Sensex 19,924

Nifty 6,019

Reuters Code LART.BO

LT@IN

022-39357800 Ext: 6842

[email protected]

Performance Highlights

3QFY2013 Result Update | Infrastructure

January 24, 2013


2/15

Larsen & Toubro | 3QFY2013 Result Update

January 24, 2013 2

Exhibit 1:Quarterly performance (Standalone)

Total expenditure 13,954 12,616 11,789 10.6 18.4 36,612 31,043 17.9

OPM (%) 9.6 9.8 10.7 (22)bp (110)bp 9.8 10.6 (79)bp

Interest 238 191 235 24.8 1.3 701 549 27.8

Depreciation 200 180 204 11.1 (1.8) 596 519 14.9

Non operating income 437 205 329 113.7 32.7 1,372 719 90.9

Exceptional items 93 219 267 (57.5) (65.2) 322 364 (11.6)

Tax 445 429 426 3.7 4.6 1,241 1,148 8.2

PAT (%) 7.3 7.1 8.6 18bp (136)bp 7.7 7.3 39bp

Reported EPS 18.3 16.2 18.6 13.2 (1.5) 51.0 41.4

Adj. PAT (%) 6.8 6.0 6.6 84bp 24bp 7.1 6.6 55bp


Exhibit 2:3QFY2013 Actual vs Estimates

EBITDA 1,768 1,475 (16.6)


Key highlights of the concall

NWC continues to remain weak at ~17% of sales compared to 11.9% inMarch 2012. The management believes that this should be the upper limit

for the same in the light of the current scenario.

Other income was higher on account of sale of properties in south India for~`200cr and high treasury gains.

Execution cycle has shortened from ~27 months to 23-24 months, whichshould assist in revenue growth going ahead, given its robust order book of

`1,62,334 cr.

Slow moving orders formed 10-12% of the order book in 3QFY2013. Going forward, L&T would not be bidding for projects on a build operate

transfer (BOT) basis as it already has 44 projects worth`84,400cr (IDPL) in

its kitty and wants to contain equity funding from the parent to subsidiaries.

L&T expects to invest ~`2,000cr in development business in FY2013.Further, it continues to focus on sale of non-core assets including Dhamra

port.


3/15


January 24, 2013 3

Top-line marginally below expectation

The top-line at`15,429cr, registering a growth of 10.3% yoy for the quarter,

was marginally lower than our estimate of `15,790cr. The decent growth in

revenues was mainly driven by pick up in execution in the engineering and

construction (E&C) segment.

Maintains 15-20% guidance for revenue and order inflow

The management has reiterated its guidance of 15-20% growth for both revenue

and order inflow for FY2013. L&T secured orders worth `19,545cr during

3QFY2013, taking the order book to`1,62,334cr (a growth of 11.4% yoy). Order

inflows were mainly driven by major orders bagged in the infrastructure (41%),

power (37%) and hydrocarbon (11%) segments. The company is also witnessing

good traction on the international front (hydrocarbon and transmission &

distribution [T&D] space) and sees a huge pipeline. We believe given its robustorder backlog, healthy order inflows in 9MFY2012 and strong execution

capabilities; the company is well placed to achieve its guidance on both- order

inflow (lower end) and revenue front.

Exhibit 3:Revenue growth momentum continues


Exhibit 4:Robust order inflows during the quarter


9,4

83

11,2

45

13,9

84

18,4

61

11,9

55

13,1

95

15,4

29

20.3 20.522.5

20.0 26.1

17.3

10.3

-

5.0

10.0

15.0

20.0

25.0

30.0

0

2,000

4,000

6,000

8,00010,000

12,000

14,000

16,000

18,000

20,000

1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13

Sales (` cr, LHS) Growth (yoy %, RHS)

16,1

90

16,0

96

17,1

29

21,1

59

19,5

94

20,9

67

19,5

45

3.6(21.3)

28.2(30.2)

21.0

30.3

14.1

(40.0)

(30.0)

(20.0)

(10.0)-

10.0

20.0

30.0

40.0

-

5,000

10,000

15,000

20,000

25,000


Order Booking ( cr, LHS) Growth (yoy %, RHS)


4/15


January 24, 2013 4

EBITDA margin posts a decline, below our estimates

The company reported an EBITDAM of 9.6%, a yoy dip of 22bp, against our

expectation of 11.2%. For 9MFY2013, the EBITDAM is 79bps lower yoy at 9.8%

(10.6%). The performance was below our expectation mainly on account of higher-

than-anticipated staff cost - owing to increased employee base and annual salary

revision, and higher construction expenses. Going ahead, we believe margins

would continue to reel under pressure, given the change in order book mix

towards infrastructure projects (which yield lower margins compared to other

segments), enhanced competition witnessed in all segments with no respite in

sight, and fluctuations in commodity prices. All of this has been subscribed by the

Management as well. The management has maintained its guidance of 50-75bp

dip in EBITDAM for FY2013 and believes that EBITDAM should be looked at on a

yearly basis rather than on a quarterly basis owing to volatility based on job mix.

but thanks to higher Other Income, bottom-line beats

estimates

L&T reported a bottom-line of `1,122cr (`991cr in 3QFY2012) a yoy jump of

13.2%, ~10% ahead of our (`1,020cr) and consensus estimates owing to huge

surge in other income. Other income for the quarter grew 113.7% yoy to`437cr

led by gains from sale of property and higher treasury gains.

Exhibit 5:EBITDA margin disappoints


Exhibit 6:PAT growth driven by higher other income


1,1

26

1,1

74

1,3

68

2,5

61

1,0

87

1,4

06

1,4

75

11.9

10.49.8

13.9

9.1

10.79.6

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

0

500

1,000

1,500

2,000

2,500

3,000


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

690

738

838

1,8

80

902

871

1,0

55

7.36.6

6.0

10.2

7.5

6.6 6.8

-

2.0

4.0

6.0

8.0

10.0

12.0

0

200

400

600

800

1,000

1,200

1,4001,600

1,800

2,000


Adj. PAT (` cr, LHS) PATM (%, RHS)


5/15


January 24, 2013 5

Segmental performance

The E&C segment, which contributed ~88%

to the companys gross revenue, witnessed strong traction and recorded subdued

revenue growth of 11.4% yoy for the quarter to`13,882cr. On the EBITDA margin

front, the segment witnessed a dip of 70bp on a yoy basis to 10.4% owing to job

mix and high input costs. During the quarter, despite the persisting subdued

investment cycle, the segment witnessed a healthy order inflow of `17,818cr

mainly from infra sector (transportation, urban & water) and power sector

(particularly T&D space).

The MIP segment continued to witnessed

pressures from persistent headwinds, ie sluggish demand in industrial, construction

and mining sectors, and increased competition, resulting in a decline of 17.6% yoy

in revenue to`593cr. The EBITDA margin, at 18%, also witnessed contraction of

310bp yoy impacted by drop in sales, increased input costs and intense

competition.

The E&E segment witnessed a muted 5.2% yoy

revenue growth at`886cr mainly due to dull industrial off take, delayed customer

clearances and continuing competitive pressures. However, the EBIT margin came

in at 11.1% (up 265 bp), owing to better realisation and favorable product mix.

Exhibit 7: Segmental performance

Engg & Const. (E&C) 13,882 12,465 11,669 11.4 19.0

Mach. & Ind. Products (MIP) 593 720 551 (17.6) 7.7Electrical & Electronics (E&E) 886 843 880 5.2 0.7

Others 338 267 332 26.7 1.9

Intersegment revenue 119 139 105 (14.7) 13.5

Engg & Const. 1,280 1,282 1,259 (0.2) 1.6

Mach. & Ind. Products 161 130 70 23.5 131.2

Electrical & Electronics 99 72 73 38.0 35.2

Others 145 68 68 113.6 113.3

Intersegment margins - - - - -

Engg & Const. 9.2 10.3 10.8 (106) bp (157) bp

Mach. & Ind. Products 27.1 18.1 12.6 902 bp 1,447 bp

Electrical & Electronics 11.1 8.5 8.3 265 bp 284 bp

Others 42.9 25.4 20.5 1,745 bp 2,240 bp

Engg & Const. 15,355 10,438 14,490 47.1 6.0

Mach. & Ind. Products 563 682 542 (17.5) 3.8

Electrical & Electronics 1,384 1,344 1,419 3.0 (2.4)

Others 714 677 718 5.4 (0.5)

Unallocable 21,790 20,727 22,411 5.1 (2.8)Source: Company, Angel Research


6/15


January 24, 2013 6

Subsidiary performance

L&T InfoTech registers healthy performance

L&T InfoTech, the companys technology subsidiary, reported a healthyperformance for 3QFY2013, registering a 16.9% yoy growth in revenue to

`1,004cr. On the profitability front, the subsidiary reported a NPM of 15.4% with a

profit of`155cr for the quarter.

Order book analysis

During the quarter, the company reported a healthy order inflow of `19,545cr (up

14.1% yoy) against our expectation of `18,000cr. Infrastructure and power

segments were major contributors at 41% and 37% respectively. For 3QFY2013,

~18% of the orders came from the international market. As of 3QFY2013, L&T

stands tall on an order backlog of `1,62,334cr, indicating a growth of 11.4%.

L&Ts order book is majorly dominated by the infra (49%) and power (26%)

segments. Process (13%), hydrocarbon (8%) and others (4%) constitute the

remaining part of the order book. The company has given a guidance of 15-20%

growth for order booking in FY2013, which we believe would be met at the lower

end of the guidance.

Client wise, 33% of L&Ts outstanding order book comes from the public sector

and 53% comes from the private sector. Captive work orders account for the

balance 14%. Notably, there has been a drop in the share of public sector orders

in the past few quarters. However, the management expects good quantum of

government orders going forward.

Exhibit 8:Higher-than-expected order inflow


Exhibit 9:Order book composition (`1,62,334cr)


15,626

20,464

13,366

30,313

16,19016,096

17,129

21,159

19,594

20,967

19,545

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

Process Hydrocarbon Power Infrastructure Others Total

(`cr)

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

Process Hydrocarbon Power Infrastructure

(`cr)


7/15


January 24, 2013 7

Outlook and valuation

We recommend Accumulate with a target price of`1,788

We believe L&T will continue to occupy a unique position in the Indian E&C spaceas a diversified and large engineering play, with exposure to areas ranging from

power, defense, nuclear and equipment, in spite of short-term concerns.

At the current market price of `1,586, the stock is trading at 21.2x FY2014E

earnings and 3.0x FY2014E P/BV on a standalone basis. We have used the sum-

of-the-parts (SOTP) methodology to value the company to capture all its business

initiatives and investments/stakes in different businesses. Ascribing separate values

to its parent business on a P/E basis and investments in subsidiaries on P/E, P/BV

and mcap basis, our target price works out to `1,788.

It may be noted here that the L&T stock has historically traded at a premium to the

BSE Sensex. At our SOTP target price, the stock would trade at 18x FY2014E

standalone adjusted EPS of `74.9, which is at a premium of 12.5% over Angels

FY2014E Sensex P/E multiple of 16x and lower than the historical premium

commanded by L&T over BSE Sensex.

Exhibit 10:L&T Parent historic P/E multiple premium to BSE Sensex


On one-year forward P/E basis, historically L&T has traded at an average P/E of

27.1x, 25.7x and 24.4x over the past seven, five and three years, respectively.

Thus, our implied target P/E multiple of 23.8x is way below its historical average to

factor in the prevailing challenging business environment.

0%

20%

40%

60%

80%

100%

120%

140%

Oct-05

Jun-06

Feb-07

Oct-07

Jun-08

Feb-09

Sep-09

May-10

Jan-11

Sep-11

May-12

Jan-13

L&T Premium/(Discount) to Sensex 7YEAR AVG 5YEAR AVG 3YEAR AVG


8/15


January 24, 2013 8

Exhibit 11:L&T Parent one-year forward P/E band


Exhibit 12:Derivation of SOTP-based target price for L&T (FY2014E)P/E 19x FY2014E Earnings

IDPL (stake - 97.5%) P/BV L&T acq. 2.36% stake of IDFC at Rs118cr in 1QFY11 5,070 83 4.6

L&T Infotech P/E 10x FY2014E Earnings 6,119 100 5.6

L&T Finance Mcap Basis 20% holding company discount 9,872 161 9.0

Tractor Engineers P/E 5x FY2014E Earnings 89 1 0.1

Associate Companies P/E 5x FY2014E Earnings 2,000 33 1.8

L&T MHI Boilers and Turbines (51%) P/E 5x FY2014E Earnings 1,230 20 1.1

Satyam Stake Mcap 20% holding company discount 219 4 0.2

Other Investments P/BV 1x FY2014E Book Value, Mcap 2,197 36 2.0


Exhibit 13:Key assumptions ( cr)Order Inflow 51,600 69,572 79769 70574 78048 86346

Revenue 33,647 36,675 43,496 52,533 60,556 69,167

Order Backlog (Y/E) 70,300 100,239 130,217 145,723 164,411 184,310

OB/Sales (x) 2.1 2.7 3.0 2.8 2.7 2.7


0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Oct-05

Feb-06

Jun-06

Oct-06

Feb-07

Jun-07

Oct-07

Feb-08

Jun-08

Oct-08

Feb-09

Jun-09

Oct-09

Feb-10

Jun-10

Oct-10

Feb-11

Jun-11

Oct-11

Feb-12

Jun-12

Oct-12

P/E 7YEAR AVG 5YEAR AVG 3YEAR AVG


9/15


January 24, 2013 9

Exhibit 14:Angel EPS forecast vs consensusFY2013E 71.8 78.7 9.5

FY2014E 85.0 87.0 2.3


Investment arguments

We believe L&T is bestplaced to benefit from the gradual recovery in the capex cycle, given its

diverse exposure to sectors, strong balance sheet and cash flow generation as

compared to its peers, which grapple with issues such as strained cash flow,

high leverage and limited net worth and technological capabilities.

Company background

L&T - the largest Indian infrastructure conglomerate - is present across almost all

the infrastructure segments and is at the forefront of the Indian infra growth story.

Over the years, the company has diversified across various segments to encash the

untapped infra opportunity, not only in India but in other geographies as well, and

has an excellent track record of achieving the same. Over the past 10 years

(FY2002-12), L&T has reported a CAGR of 21.3% and 29.1% in its top-line and

bottom-line, respectively.


10/15


January 24, 2013 10

Exhibit 15:Recommendation summary

ABL 197 286 Buy 1,500 2,032 2,311 24.1 23.7 27.0 31.6 15.4 8.3 7.3 6.2 2.8CCCL 16 - Neutral 2,048 2,262 2,522 11.0 (0.5) 1.5 2.7 - - 10.6 5.9 2.2

IRB Infra 114 164 Buy 3,133 3,843 4,212 15.9 14.9 16.8 17.8 9.3 7.6 6.8 6.4 2.9

ITNL 199 225 Accu. 5,606 6,564 7,054 12.2 25.6 26.3 29.0 6.5 7.8 7.6 6.8 1.8

IVRCL 33 - Neutral 6,178 4,249 6,897 5.7 0.6 0.3 3.3 136.8 56.0 107.0 10.0 5.0

JP Assoc. 83 100 Buy 12,853 13,842 15,863 11.1 4.8 3.7 4.6 (2.8) 17.2 22.6 18.2 -

NCC 50 - Neutral 5,250 5,947 6,569 11.9 1.4 3.1 4.1 71.4 35.6 16.0 12.1 3.4

Punj Lloyd 49 - Neutral 10,557 11,892 13,116 11.5 2.8 1.8 3.2 7.8 17.6 26.9 15.1 2.3

Sadbhav 125 168 Buy 2,676 2,344 2,804 2.4 9.3 7.2 8.7 (3.5) 13.4 17.4 14.4 2.9

Simplex In. 191 251 Buy 6,010 6,906 8,053 15.8 18.1 23.2 31.3 31.7 10.6 8.2 6.1 2.4

Unity Infra 39 59 Buy 1,973 2,180 2,455 11.5 14.0 13.3 15.0 3.5 2.8 3.0 2.6 2.2


Exhibit 16:SOTP break-up

ABL 113 39 - - 174 61 - - - - 286

CCCL 16 100 - - - - - - - - 16

IRB Infra 52 32 - - 113 69 4 3 - - 164

ITNL 74 33 - - 121 54 - - 30 13 225IVRCL 17 46 - - - - 20 54 - - 37

JP Assoc. 27 27 30 30 - - - - 43 43 100

NCC 25 57 - - 7 16 - - 12 27 44

Punj Lloyd 64 100 - - - - - - - - 64

Sadbhav 70 41 - - 99 59 - - - - 168

Simplex In. 251 100 - - - - - - - - 251

Unity Infra 52 88 - - 7 12 - - - - 59



11/15


January 24, 2013 11

Profit & loss statement (Standalone)

Gross sales

Less: Excise duty 398 321 390 567 652 744Net Sales

Other operating income 280 360 409 637 310 586

% chg 36.4 9.2 18.6 21.1 14.1 14.6

Total Expenditure 30,094 32,295 38,306 46,888 54,244 61,819

Net Raw Materials 16,798 17,309 21,272 26,072 29,876 34,331

Other Mfg costs 9,434 11,144 12,160 14,948 17,383 19,441

Personnel 1,998 2,379 2,885 3,663 3,742 4,343

Other 1,864 1,463 1,990 2,204 3,243 3,704

% chg 35.6 23.7 18.1 12.2 2.2 20.0

(% of Net Sales) 11.4 12.9 12.9 11.8 10.6 11.2

Depreciation & Amortisation 283 380 562 699 838 990

% chg 35.3 22.8 15.5 10.9 0.0 20.2

(% of Net Sales) 10.5 11.9 11.6 10.6 9.3 9.7

Interest & other Charges 350 505 647 666 950 1,125

Other Income (incl pft from Ass/JV) 643 768 1,087 1,338 1,600 1,787

(% of PBT) 16.7 16.6 19.8 21.4 25.7 24.2

% chg 28.5 20.3 18.4 14.2 (0.3) 18.3

Extraordinary Expense/(Inc.) (871) (1,394) (429) (55) - -

Tax 1,231 1,641 1,946 1,854 1,831 2,167

(% of PBT) 26.1 27.3 33.0 29.4 29.4 29.4

Less: Minority interest (MI) - - - - - -

Prior period items - - - - - -

% chg 32.4 11.5 15.5 17.8 (1.7) 18.8(% of Net Sales) 7.7 7.9 7.7 7.5 6.4 6.7

% chg 32.4 11.5 15.5 17.8 (1.7) 18.8


12/15


January 24, 2013 12

Balance sheet (Standalone)

Equity Share Capital 118 121 122 122 123 123Preference Capital - - - - - -

Reserves& Surplus 12,343 18,191 21,725 25,101 28,258 32,161

Minority Interest

Total Loans 6,556 6,801 7,161 9,896 12,370 13,985

Deferred Tax Liability 48 77 263 133 133 133

Gross Block 5,575 7,236 8,896 10,495 12,373 14,256

Less: Acc. Depreciation 1,418 1,728 2,225 2,847 3,685 4,675

Capital Work-in-Progress 1,038 858 748 698 837 1,004

Goodwill - - - - - -

Current Assets 23,448 26,362 35,010 43,457 50,580 58,000

Cash 775 1,432 1,730 1,905 1,642 1,144

Loans & Advances 6,791 5,997 8,225 9,128 12,466 14,286

Other 15,882 18,932 25,054 32,424 36,472 42,570

Current liabilities 17,842 21,243 27,839 32,441 37,094 42,156

Mis. Exp. not written off 0 - - - - -


13/15


January 24, 2013 13

Cash flow statement (Standalone)

Profit before tax 4,713 5,881 5,904 6,310 6,234 7,377

Depreciation 283 387 562 699 838 990Change in Working Capital 2,049 (1,143) 1,753 3,671 2,733 2,855

Less: Other income 643 768 1,087 1,338 1,600 1,787

Direct taxes paid 873 1,519 1,946 1,854 1,831 2,167

(Inc.)/ Dec. in Fixed Assets (1,980) (1,481) (1,612) (1,648) (1,999) (2,051)

(Inc.)/ Dec. in Investments (1,329) (5,442) (979) (1,187) (2,000) (2,100)

Other income 643 768 1,087 1,338 1,600 1,787

Issue of Equity 23 2,133 1 1 0 -

Inc./(Dec.) in loans 1,922 168 360 2,735 2,474 1,615

Dividend Paid (Incl. Tax) 717 863 996 1,112 1,241 1,303

Others (183) 249 757 (99) (4) (4)

Inc./(Dec.) in Cash (190) 657 298 175 (263) (499)


14/15


January 24, 2013 14

Key Ratios

P/E (on FDEPS) 37.4 33.6 29.1 24.7 25.1 21.1P/CEPS 33.7 29.7 24.9 20.9 20.6 17.4

P/BV 7.8 5.3 4.4 3.8 3.4 3.0

Dividend yield (%) 0.5 0.6 0.8 0.9 1.0 1.1

EV/Sales 3.1 2.8 2.4 2.0 1.8 1.6

EV/EBITDA 26.8 21.6 18.3 16.7 16.8 14.3

EV / Total Assets 5.4 4.1 3.5 3.0 2.6 2.4

Order Book to Sales 2.1 2.7 3.0 2.8 2.7 2.7

EPS (Basic) 59.2 72.6 65.0 72.8 71.8 85.0

EPS (fully diluted) 42.4 47.2 54.5 64.3 63.2 75.1

Cash EPS 47.0 53.4 63.8 75.7 76.9 91.3

DPS 8.4 10.2 12.4 14.4 16.5 17.3

Book Value 203.5 299.0 356.7 411.9 463.4 527.2

EBIT margin 10.5 11.8 11.5 10.5 9.2 9.7

Tax retention ratio 0.7 0.7 0.7 0.7 0.7 0.7

Asset turnover (x) 2.2 1.8 1.7 1.7 1.7 1.6

ROIC (Post-tax) 17.2 15.1 13.2 13.0 10.9 11.2

Cost of Debt (Post Tax) 5.1 5.5 6.2 5.5 6.0 6.0

Leverage (x) 0.4 0.4 0.3 0.3 0.3 0.4

Operating ROE 21.8 18.6 15.0 15.1 12.6 13.2

ROCE (Pre-tax) 22.0 19.7 18.5 17.3 14.7 15.4

Angel ROIC (Pre-tax) 23.3 20.7 19.6 18.3 15.4 15.9

ROAE 23.6 18.8 16.6 16.7 14.4 15.2

Asset Turnover (Gross Block) 6.9 5.8 5.4 5.5 5.3 5.2

Inventory / Sales (days) 54 36 12 12 12 13

Receivables (days) 94 105 98 107 116 112

Payables (days) 63 73 79 88 90 90

NWC (ex-cash) (days) 35 42 38 50 63 70

Net debt to equity 0.5 0.3 0.2 0.3 0.4 0.4

Net debt to EBITDA 1.5 1.1 1.0 1.3 1.7 1.7

Interest Coverage 10.1 8.6 7.8 8.4 5.9 6.0


15/15


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2. Angel and its Group companies ownership of the stock No

3. Angel and its Group companies' Directors ownership of the stock No

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

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LNT, 25th January