Omnitech Info Solutions Ltd

8/2/2019 Omnitech Info Solutions Ltd

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CRISIL Limited. All Rights Reserved.

MAKINGMARKETS

FUNCTION

BETTE

R

YEARS

Enhancing investment decisions

Q3FY12 Result Update

Omnitech Infosolutions Ltd

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Exp lana t ion o f CRI SI L Fundam en ta l and Va lua t ion ( CFV) m a t r i x

The CFV Matrix (CRISIL Fundamental and Valuation Matrix) addresses the two important analysis of an investment making process

Analysis of Fundamentals (addressed through Fundamental Grade) and Analysis of Returns (Valuation Grade) The fundamental

grade is assigned on a five-point scale from grade 5 (indicating Excellent fundamentals) to grade 1 (Poor fundamentals) The

valuation grade is assigned on a five-point scale from grade 5 (indicating strong upside from the current market price (CMP)) to

grade 1 (strong downside from the CMP).

CRIS ILFundament a l Grade

Assessm ent CRI SI LValuat ion Grade

Assessment

5/5 Excellent fundamentals 5/5 Strong upside (>25% from CMP)

4/5 Superior fundamentals 4/5 Upside (10-25% from CMP)

3/5 Good fundamentals 3/5 Align (+-10% from CMP)

2/5 Moderate fundamentals 2/5 Downside (- 10-25% from CMP)

1/5 Poor fundamentals 1/5 Strong downside (


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CRISIL Limited. All Rights Reserved. CRISIL RESEARCH | 1

Om n i t e ch I n f o so lu t i o n s LtdEarn in gs suppr essed by h igh deprec ia t ion and in t e rest

Fu n d a m e n t a l G r ad e 3 / 5 ( G o o d f u n d a m e n t a l s)

Va lu a t io n Gra d e 5 / 5 (C MP h a s s t ro n g u p s id e )

I n d u s t r y I T Se r v i ce s

Fair Value Rs 254CMP Rs 13 8

March 01 , 2012

MAKINGMARKETS

FUNCTION

BETTE

R

YEARS

Omnitech Infosolutions Ltds (Omnitechs) Q3FY12 revenues and operating

profitability were broadly in line with CRISIL Researchs expectations.

However, PAT was lower than expected due to high depreciation (on account of

an increase in asset base as the company set up new offices) and high interest

cost (because of higher debt and interest rates). Also, the tax rate increased to

35% vs. 26% in Q2FY12 as the company claimed MAT credit in Q2. We have

broadly maintained earnings estimates for FY12 and FY13. While we remain

positive on the business potential, the growth of Avensus in Europe remains a

key monitorable given the uncertain macroeconomic environment. We

maintain our fundamental grade of3 / 5 .

Q3FY12 resu l t ana l ys is

Revenues grew by 6.4% q-o-q (up ~49 % y-o-y) to Rs 1,309 mn. India

revenue grew by 7.4% q-o-q to Rs 986 mn; the country remained thehighest contributor to consolidated revenue. APAC revenue grew by ~46%

q-o-q to Rs 72 mn. Europe revenue declined by ~6.7% q-o-q to Rs 142 mn

due to lower revenue from Avensus, Europe since some projects got over.

Fragile macro-economic conditions are also slowing down the companys

European business.

EBITDA margin increased by 94 bps q-o-q (down 710 bps y-o-y) to 25.6%

mainly due to lower employee cost, which declined by 111 bps as a

percentage of sales q-o-q. The employee headcount declined to 1,305 from

1,366 employees in Q2FY12 as the company optimised its resources for

better efficiency. The company continued to incur losses at the EBITDA

level in Avensus and the APAC region.

Depreciation increased by 14% q-o-q (73% y-o-y) to Rs 109 mn andinterest cost increased by 66% q-o-q (~240% y-o-y) to Rs 51 mn. Tax rate

increased to 35%. As a result, PAT declined by 8.5% q-o-q (15.5% y-o-y)

to Rs 127 mn. The company reported EPS of Rs 8.7.

Va lu a t io n s : Cu r re n t m a rke t p r i ce h a s s t ro n g u p s id e

We continue to use the discounted cash flow method to value Omnitech and

maintain the fair value of Rs 254 per share. Consequently, we retain the

valuation grade of5 / 5 .

KEY FORECAST

(Rs m n) FY09 FY10 FY11 FY12E FY13E

Operating income 1,718 2,185 3,470 5,093 6,100

EBITDA 528 678 1,078 1,306 1,492

Adj PAT 344 381 518 528 637

Adj EPS-Rs 26.2 27.5 37.4 35.9 42.6

EPS growth (%) 34.3 5.0 36.0 (4.1) 18.8

Dividend yield (%) 3.2 0.7 2.0 2.0 2.1

RoCE (%) 33.9 28.0 30.2 24.7 25.3

RoE (%) 32.3 25.8 26.3 20.7 19.9

PE (x) 5.3 5.0 3.7 3.8 3.2

P/BV (x) 1.5 1.1 0.9 0.7 0.6

EV/EBITDA (x) 4.2 3.6 2.8 2.2 1.7

NM: Not meaningful; CMP: Current market price

Source : Com pany, CRI SI L Research est im ate

CFV MATRI X

KEY STOCK STATI STI CSNIFTY / SENSEX 5385/17753

NSE / BSE ticker OMNITECH

Face value (Rs per share) 10

Shares outstanding (mn) 14.7

Market cap (Rs mn)/(US$ mn) 2,033/42

Enterprise value (Rs mn) /(US$ mn) 2,645/54

52-week range (Rs) (H/L) 175/122

Beta 1.58

Free float (%) 46.0%

Avg daily volumes (30-days) 27,808Avg daily value (30-days) (Rs mn) 3.76

SHAREHOLDI NG PATTERN

PERFORMANCE VI S--VI S MARKET

R e tu rn s

1 - m 3 - m 6 - m 1 2 - m

OMNITECH 0% 4% -7% 6%

NIFTY 3% 12% 9% 1%

AN ALYTI CAL CONTACTChetan Majithia (Head) [email protected]

Kamna Motwani [email protected]

Suresh Guruprasad [email protected]

Cl ien t se rv ic ing desk

+91 22 3342 3561 [email protected]

1 2 3 4 5

1

2

3

4

5

V al ua t i on Grade

Fundam

entalGrade

Poor

Fundamenta ls

Excel lent

Fundam enta ls

St

rong

Dow

nside

Strong

Up

side

54.9% 54.1% 54.1% 53.9%

0.6% 0.6% 0.5% 0.0%0.0%

3.6% 6.2% 8.0%

44.5% 41.8%39.2% 38.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Mar-11 Jun-11 Sep-11 Dec-11

Promoter FII DII Others



4/10


Om n i tech I n f osolu t i ons Ltd MAKINGMARK

ETS

FUNCTION

BETTE

R

YEARS

Q3FY12 Resu l t Sum m ary( R s m n ) Q 3 FY 1 2 Q 2 FY 1 2 Q 3 FY 1 1 q - o - q ( % ) y - o - y ( % ) 9 M FY1 2 9 M FY 1 1 y - o - y ( % )

N e t sa les 1 ,3 0 9 1 ,2 3 0 8 8 0 6 .4 4 8 .8 3 ,7 1 9 2 ,4 4 1 5 2 .3Cost of goods sold 683 634 436 7.7 56.7 1,922 1,242 54.8

Cost of goods sold(% of net sales) 52.2% 51.6% 49.5% 60 bps 266 bps 51.7% 50.9% 82 bps

Employees cost 194 196 108 (1.0) 79.9 564 277 103.7

Employee cost as % of sales 14.8% 15.9% 12.3% -111 bps 257 bps 15.2% 11.3% 382 bps

Other expenses 97 96 48 0.6 99.4 284 134 111.7

Other expenses as % of sales 7.4% 7.8% 5.5% -43 bps 187 bps 7.6% 5.5% 214 bps

EBITD A 3 3 5 3 0 3 2 8 8 1 0 .5 1 6 .5 9 4 9 7 8 9 2 0 .4

EB I T DA m a r g i n 2 5 .6 % 2 4 .7 % 3 2 .7 % 9 4 b p s - 7 1 0 b p s 2 5 .5 % 3 2 .3 % - 6 7 8 b p sDepreciation 109 96 63 14.0 73.1 293 176 66.0

EBIT 2 2 6 2 0 7 2 2 4 8 .9 0 .5 6 5 7 6 1 2 7 .2Interest and finance charges 51 30 15 66.2 239.6 113 43 165.4

O pe r a t i n g P BT 1 7 5 1 7 7 2 1 0 ( 1 . 0 ) ( 1 6 . 5 ) 5 4 4 5 7 0 ( 4 . 5 )Other Income 5 1 1 798.7 805.3 6.1 1.6 285.2

P BT 1 8 0 1 7 7 2 1 0 1 .5 ( 1 4 . 3 ) 5 5 0 5 7 1 ( 3 . 7 )Tax 62 46 52 37.3 19.1 171 121 41.9

Minority interest (10) (7) 7 34.6 (247.8) (21) 17 (222.6)

P AT 1 2 7 1 3 9 1 5 1 ( 8 . 5 ) ( 1 5 . 5 ) 4 0 0 4 3 4 ( 7 . 8 )A d j P AT 1 2 7 1 3 9 1 5 1 ( 8 . 5 ) ( 1 5 . 5 ) 4 0 0 4 3 4 ( 7 . 8 )A d j PA T m a r g i n 9 .7 % 11 .3 % 17 .2 % - 1 5 9 b p s - 7 4 1 b p s 1 0 .7 % 1 7 . 8 % - 7 01 b p sNo of equity shares (mn) 14.7 14.7 13.9 - 6.2 14.7 14.7 -

Ad j EPS (R s ) 8 .7 9 .5 1 0 .9 (8 .5 ) (2 0 .5 ) 2 7 .2 2 9 .4 (7 .8 )

Source : Com pany , CRI SI L Research

Business ava i lab i l i t y se rv ices rema ined m a in revenue con t r ibu t o r and g rew a t 8% q -o -q

Source : Com pany , CRI SI L Research Sour ce : Com pany , CRI SIL Research

I nd ia bus iness con t inued to d r i ve revenues BFSI rema ins ma j o r revenue con t r ibu to r

Source : Com pany , CRI SI L Research Sour ce : Com pany , CRI SIL Research

61.8% 64.8% 65.8% 67.3% 65.3% 66.9% 66.1% 67.0%

15.1%14.1% 11.1% 11.1%

9.1% 5.1% 6.0% 6.0%

23.1% 21.1% 23.1% 21.6% 25.6% 25.0% 24.9% 24.3%

3% 3% 3%

0%

10%

20%

30%

40%

50%

60%70%

80%

90%

100%

Mar-10

Jun-10

Sep-10

Dec-10

Mar-11

Jun-11

Sep-11

Dec-11

Business availabi lity services Business continuity services

System integration Security services

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

Dec-09

Mar-10

Jun-10

Sep-10

Dec-10

Mar-11

Jun-11

Sep-11

Dec-11

Business availability services Business continuity servicesSystem integration

79% 74% 74% 76% 74% 73% 75% 75%

4%9%

10% 9% 10% 7% 4% 5%

1% 1% 1% 1% 1%0.4% 0.6%

0.6%7% 7% 7% 7% 8% 12% 12% 11%

5% 5% 1% 1% 1% 1% 2% 1%

5% 6% 8% 7% 6% 6.5% 6.7% 6.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Mar-10

Jun-

10

Sep-10

Dec-10

Mar-11

Jun-

11

Sep-11

Dec-11

India Far East Canada Europe Middle East US

51% 50% 45% 49% 42% 45% 46%49%

19% 19% 25% 22%23%

23% 23%21%

20% 20% 18% 17%14%

17% 17% 17%

7% 8% 9% 10%

11%8% 5% 6%

3% 3% 3% 4% 10% 7% 8% 7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Mar-10

Jun

-10

Sep

-10

Dec

-10

Mar-11

Jun

-11

Sep

-11

Dec

-11

BFSI IT-ITeS Manufacturing Services Others



5/10



ETS

FUNCTION

BETTE

R

YEARS

EBITDA marg in imp roved due to low er emp loyee

cost. . .

. . . w h i le PAT m arg in dec l ined due to h igh er

dep recia t ion , in te rest and t ax ra te

Source : Com pany , CRI SI L Research Source : Com pany , CRI SIL Research

Share p r i ce movem en t Fa i r va lue m ovemen t s ince in i t i a t ion

-indexed to 100

Source: NSE, CRI SIL Research Source: NSE, CRI SIL Research

578

671

746

816

880

1,0

29

1,1

81

1,2

30

1,3

09

31.1%30.2%31.9%32.2%32.7%

29.8%

26.4% 24.7% 25.6%

0%

5%

10%

15%

20%

25%

30%

35%

0

200

400

600

800

1,000

1,200

1,400

Dec-09

Mar-10

Jun-10

Sep-10

Dec-10

Mar-11

Jun-11

Sep-11

Dec-11

(Rs mn)

Revenue EBITDA Margin (RHS)

102 109 136 146 151 102 133 139 127

17.7%

16.3%

18.3% 17.9%

17.2%

9.9%11.3% 11.3%

9.7%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0

20

40

60

80

100

120

140

160

Dec-09

Mar-10

Jun-10

Sep-10

Dec-10

Mar-11

Jun-11

Sep-11

Dec-11

(Rs mn)

PAT PAT margin (RHS)

0

100

200

300

400

500

600

Nov-08

Feb-09

May-09

Aug-09

Nov-09

Feb-10

May-10

Aug-10

Nov-10

Feb-11

May-11

Aug-11

Nov-11

Feb-12

Omnitech NIFTY

0

200

400

600

800

1,000

1,200

0

50

100

150

200

250

300

20-Sep-10

13-Oct-10

05-Nov-10

01-Dec-10

27-Dec-10

19-Jan-11

14-Feb-11

10-Mar-11

04-Apr-11

02-May-11

25-May-11

17-Jun-11

12-Jul-11

04-Aug-11

29-Aug-11

23-Sep-11

19-Oct-11

16-Nov-11

12-Dec-11

04-Jan-12

27-Jan-12

22-Feb-12

( ' 0 0 0 )(Rs)

Total Traded Quantity(RHS) CRISIL fair Value Omnitech



6/10



ETS

FUNCTION

BETTE

R

YEARS

EARNI NGS ESTI MATES REVI SED DOW NW ARDS

Pa r t i cu la rs Uni t

FY12E FY13E

O ld N e w % c h an g e O ld N e w % c h an g e

Exchange rate Rs 46.4 48.1 3.7% 44.5 48.0 7.9%

Revenues (Rs mn) 5,022 5,093 1.4% 6,052 6,100 0.8%

EBITDA (Rs mn) 1,285 1,306 1.6% 1,489 1,492 0.2%

EBITDA margin % 25.6 25.6 4 bps 24.6 24.5 -15 bps

Depreciation (Rs mn) 379 403 6.5% 415.2 463.7 11.7%

Interest cost (Rs mn) 125 164 31.8% 104 104 0.0%

Other income (Rs mn) 5 8 57.9% 22 17 -19.2%

Tax rate % 28% 32% 376 bps 31% 31% 0 bps

PAT (Rs mn) 545 528 -3.1% 660 637 -3.5%

PAT margin % 10.8 10.4 -48 bps 10.9 10.4 -47 bps

EPS Rs 37.0 35.9 -3.1% 44.2 42.6 -3.5%

Source : CRISI L Research est im ate

Reasons fo r changes in est im atesL ine i tem FY12 FY13

Revenues Revision in exchange rate

Marginal increase in India business revenue

Revision in exchange rate

EBITDA margins No change No change

PAT margins Higher depreciation due to higher asset base

Higher interest cost due to higher debt levels

Higher-than-previously-estimated tax rate

Higher depreciation due to higher asset base

Lower other income due to lower cash

The companys consolidated revenue is not significantly impacted by rupee

depreciation as 75% of its revenue is derived from India.

N o te : We have not been provided data related to other income, tax rate and

balance sheet items.



7/10



ETS

FUNCTION

BETTE

R

YEARS

VALUATI ON

We continue to use the discounted cash flow method to value Omnitech and

maintain the fair value of Rs 254 per share. At this value, the implied P/E

multiples are 7x FY12 earnings estimate and 6x FY13 earnings estimate.

We retain the valuation grade of5/ 5 .

One-yea r fo rw ard P / E band One-yea r fo rw ard EV / EB ITDA band

Source: NSE, CRI SIL Research Source: NSE, CRI SI L Research

P/ E p r e m iu m / d i sc ou n t t o N IF TY P/ E m o v e m e n t

Source: NSE, CRI SIL Research Source: NSE, CRI SI L Research

CRI SI L I ER repor t s re leased on Omni t ech I n foso lu t ions Ltd

D a te N a tu re o f re p o r t

Fu n d a me n ta l

g ra d e Fa i r va lu e

Va lu a t io n

g ra d e

CMP

( o n t h e d at e o f r e p o r t )

20-Sep-10 Initiating coverage* 3/5 Rs 270 3/5 Rs 253

29-Oct-10 Q2FY10 result update 3/5 Rs 282 4/5 Rs 245

21-Feb-11 Q3FY11 result update 3/5 Rs 282 5/5 Rs 146

09-Jun-11 Q4FY11 result update 3/5 Rs 282 5/5 Rs 156

19-Aug-11 Q1FY12 result update 3/5 Rs 270 5/5 Rs 126

18-Oct-11 Detailed report 3/5 Rs 254 5/5 Rs 144

28-Nov-11 Q2FY12 result update 3/5 Rs 254 5/5 Rs 132

01-Mar-12 Q3FY12 result update 3/5 Rs 254 5/5 Rs 138

* For detailed initiating coverage report please visit: w w w . i e r . c o . i n

CRISIL Independent Equity Research reports are also available on Bloomberg (CRI ) and Thomson Reuters.

050

100

150

200

250

300

350

400

Aug-07

Nov-07

Feb-08

Jun-08

Sep-08

Dec-08

Mar-09

Jun-09

Oct-09

Jan-10

Apr-10

Jul-10

Oct-10

Jan-11

May-11

Aug-11

Nov-11

Feb-12

(Rs)

Omnitech 2x 4x 6x 8x

0

2,000

4,000

6,000

8,000

10,000

Aug-07

Nov-07

Feb-08

Jun-08

Sep-08

Dec-08

Mar-09

Jun-09

Oct-09

Jan-10

Apr-10

Jul-10

Oct-10

Jan-11

May-11

Aug-11

Nov-11

Feb-12

(Rs mn)

Omnitech 2x 4x 6x

-100%

-90%

-80%

-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

Aug-07

Nov-07

Feb-08

Jun-08

Sep-08

Dec-08

Mar-09

Jun-09

Oct-09

Jan-10

Apr-10

Jul-10

Oct-10

Jan-11

May-11

Aug-11

Nov-11

Feb-12

Premium/Discount to NIFTY Median

0

1

2

3

4

5

6

7

8

9

10

Aug-07

Nov-07

Feb-08

Jun-08

Sep-08

Dec-08

Mar-09

Jun-09

Oct-09

Jan-10

Apr-10

Jul-10

Oct-10

Jan-11

May-11

Aug-11

Nov-11

Feb-12

(T imes)

1yr Fwd PE (x) Median PE

+1 std dev

-1 std dev



8/10



ETS

FUNCTION

BETTE

R

YEARS

FINANCIALS

Note: All ratios are computed on Adj PAT

Source : Com pany, CRI SI L Research est im ate

I n co m e st a t e m e n t Ba la n ce Sh e e t

( Rs m n ) FY0 9 FY10 FY11 FY1 2 E FY1 3 E ( Rs m n ) FY0 9 FY10 FY1 1 FY1 2E FY1 3 E

Op e r a t i n g in co m e 1 ,71 8 2 ,18 5 3,4 70 5 ,0 9 3 6 ,1 0 0 Lia b i l i t i e s

EBI TDA 52 8 67 8 1,0 78 1 ,3 0 6 1 ,4 9 2 Equity share capital 131 139 139 147 149

EBI TDA m a r g in 3 0 .8 % 3 1 .0 % 31 .1% 2 5.6 % 2 4 .5 % Reserves 1,102 1,584 2,058 2,748 3,345Depreciation 80 157 249 403 464 Minorities - 0 19 (1) 9

EBI T 44 9 52 1 8 29 9 0 2 1 ,0 2 8 Ne t w o r t h 1 ,2 3 3 1,7 23 2 ,2 1 6 2 ,8 9 4 3 , 5 0 3

Interest 38 46 63 164 104 Convertible debt - - - - -

Op e r a t i n g PBT 41 1 47 5 7 66 7 3 8 9 2 5 Other debt 334 439 1,108 1,082 643

Other income 20 10 1 8 17 To t a l d e b t 3 3 4 4 39 1 ,1 0 8 1 ,0 8 2 64 3

Exceptional inc/(exp) (15) - (0) - - Deferred tax liability (net) 66 90 169 90 90

PBT 41 6 48 5 7 67 7 4 6 9 4 2 To t a l l i a b i l i t i e s 1 ,6 3 3 2,2 52 3 ,4 9 3 4 ,0 6 7 4 , 2 3 7

Tax provision 87 109 235 238 295 A s s e t s

Minority interest (0) (4) 14 (20) 10 Net fixed assets 678 1,225 1,732 1,809 1,855

PAT ( Re p or t e d ) 32 9 38 1 5 18 5 2 8 6 3 7 Capital WIP 79 139 187 139 39

Less: Exceptionals (15) - (0) - - To t a l f i x e d a ss e t s 7 5 8 1,3 64 1 ,9 1 9 1 ,9 4 8 1 , 8 9 4

Ad j u st e d PA T 34 4 38 1 5 18 5 2 8 6 3 7 I n v e st m e n t s 3 1 5 - -

Cu r r e n t a s s e t s

Ra t i os Inventory 140 287 431 527 635

FY0 9 FY10 FY11 FY1 2 E FY1 3 E Sundry debtors 589 530 860 1,224 1,464

G r o wt h Loans and advances 166 356 519 734 872

Operating income (%) 30.1 27.2 58.8 46.8 19.8 Cash & bank balance 29 43 90 187 110

EBITDA (%) 50.1 28.3 59.0 21.1 14.3 Marketable securities 134 - - - -

Adj PAT (%) 34.3 10.7 36.0 1.9 20.6 To t a l c u r r en t a ss e t s 1 ,0 5 8 1,2 16 1 ,9 0 0 2 ,6 7 2 3 , 0 8 1

Adj EPS (%) 34.3 5.0 36.0 (4.1) 18.8 To t a l c u r r en t l i a b i l i t i e s 1 8 6 3 28 7 0 1 8 9 3 1 , 0 6 8

Ne t c u r r en t a s se t s 8 7 2 8 87 1 ,1 9 9 1 ,7 7 9 2 , 0 1 3

Pr o f i t ab i l i t y I n t a ng i b l e s / Mi sc . e x p en d i t u r e - - 3 6 9 3 8 5 38 5

EBITDA margin (%) 30.8 31.0 31.1 25.6 24.5 To t a l a ss e t s 1 ,6 3 3 2,2 52 3 ,4 9 3 4 ,1 1 2 4 , 2 9 2

Adj PAT Margin (%) 20.0 17.4 14.9 10.4 10.4

RoE (%) 32.3 25.8 26.3 20.7 19.9 Cash f l ow

RoCE (%) 33.9 28.0 30.2 24.7 25.3 ( Rs m n ) FY0 9 FY10 FY1 1 FY1 2 E FY13 E

RoIC (%) 31.6 23.7 22.3 19.4 19.6 Pre-tax profit 431 485 767 746 942

Total tax paid (49) (85) (157) (316) (295)

Va lua t i ons Depreciation 80 157 249 403 464

Price-earnings (x) 5.3 5.0 3.7 3.8 3.2 Working capital changes (362) (135) (634) (499) (311)

Price-book (x) 1.5 1.1 0.9 0.7 0.6 Ne t c as h f r o m o p e r a t i on s 9 9 4 22 2 2 5 3 3 4 79 9EV/EBITDA (x) 4.2 3.6 2.8 2.2 1.7 Ca s h f r o m i n v e s t m e n t s

EV/Sales (x) 0.4 1.2 0.9 0.6 0.4 Capital expenditure (342) (763) (804) (432) (410)

Div idend payout ratio (%) 4.8 4.1 7.2 7.5 6.9 Investments and others 84 137 (5) 5 -

Dividend yield (%) 3.2 0.7 2.0 2.0 2.1 Ne t cas h f r o m inv e st m en t s ( 2 5 8 ) ( 6 2 6 ) ( 8 0 9 ) ( 4 2 7 ) ( 4 1 0 )

Ca s h f r o m f i n a n c i n g

B/ S r a t i o s Equity raised/(repaid) - 119 0 105 27

Inventory days 44 70 66 52 51 Debt raised/(repaid) 148 105 669 (26) (439)

Creditors days 16 23 53 38 35 Dividend (incl. tax) (18) (18) (44) (47) (52)

Debtor days 125 88 91 88 88 Others (incl extraordinaries) 9 12 5 112 (13)

Working capital days 112 130 103 97 105 Ne t c a s h f r o m f i n a n c i n g 1 3 9 2 18 6 3 0 1 4 5 ( 4 7 7 )

Gross asset turnover (x) 2.5 1.8 1.9 2.1 2.0 Change in cash position (20) 14 47 52 (88)

Net asset turnover (x) 3.2 2.3 2.3 2.9 3.3 Closing cash 29 43 90 187 110

Sales/operating asse ts (x) 2.7 2.1 2.1 2.6 3.2

Current ratio (x) 5.7 3.7 2.7 3.0 2.9 Q u a r t e r l y f i n a n c i a l s

Debt-equity (x) 0.3 0.3 0.5 0.4 0.2 ( Rs m n ) Q3 FY1 1 Q4 FY1 1 Q1 FY1 2 Q2 FY1 2 Q3 FY12

Net debt/equity (x) 0.1 0.2 0.5 0.3 0.2 Ne t Sa le s 8 8 0 1,0 29 1 ,1 8 1 1 ,2 3 0 1 , 3 0 9

Interest coverage 11.8 11.3 13.2 5.5 9.9 Change (q-o-q) 8% 17% 15% 4% 6%

EBI TDA 2 8 8 3 07 3 1 1 3 0 3 33 5

P e r s h a r e Change (q-o-q) 9% 7% 1% -3% 10%

FY0 9 FY10 FY11 FY1 2 E FY1 3 E EBI TDA m ar g i n 3 2 .7 % 29 .8% 2 6 .4 % 2 4 .7 % 2 5 .6 %

Adj EPS (Rs) 26.2 27.5 37.4 35.9 42.6 PAT 151 102 133 139 127

CEPS 32.2 38.8 55.4 63.3 73.7 Ad j PAT 1 5 1 1 02 1 3 3 1 3 9 12 7

Book value 93.9 124.3 159.9 196.6 234.5 Change (q-o-q) 3% -32% 30% 5% -8%

Dividend (Rs) 1.2 1.1 2.7 2.7 3.0 Ad j PAT m ar g i n 1 7 .2 % 9 .9% 1 1 .3 % 1 1 .3 % 9 .7 %

Actual o/s shares (mn) 13.1 13.9 13.9 14.7 14.9 Ad j EPS 1 0.9 7 .4 9 .0 9 .5 8 .7



9/10


CRI SI L Research Team

Sen ior Di recto r

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Tarun Bhatia Director, Capital Markets +91 (22) 3342 3226 [email protected]

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Sridhar C Head, Industry Research +91 (22) 3342 3546 [email protected]

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Business Deve lopm ent

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Ashish Sethi Head, Capital Markets +91 (22) 33428023 [email protected]

CRI SI L s Equ i ty Of fe r in gs

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Customised research on market sizing, demand modelling and entry strategies

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10/10


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