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Transcript of Engineers India Limited - ventura1.com .pdf · Petrochemical expansion project at GAIL Vijaipur and...
Engineers India Limited
BUY
- 1 of 15 - Friday 11th
April, 2014
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
ST
OC
K P
OIN
TE
R
Target Price `320.1 CMP `234 FY16E PE 10.2x
Index Details We believe that the conscious decision of Engineers India Ltd
(EIL) to diversify its markets beyond the horizons of the sub
continent has started paying dividends. The recent order wins
are testimony to the same. Given its strong domain expertise in
the hydrocarbon and petrochemical verticals and its
experience with consultancy and turnkey assignments, augurs
well for winning large ticket orders in the global arena.
As on December 2013, EIL has an order book of ~`3700 crore
(with an order mix of 65:35 for PMC and LSTK respectively).
Over the period FY14-16E, we expect revenue to grow at a
CAGR of 16.5% at `2,549.5 crore, while earnings are expected
to grow at a robust CAGR of 23.3% to `770.4 crore by FY16E.
The faster growth in earnings is due to the skewing of the order
book in favour of the high margin consultancy business. In
addition the strong balance sheet and regular dividend paying
track record is an added attraction.
We initiate coverage on EIL with BUY for a target price of
`320.1 (14x FY16 earnings) representing a potential upside of
~36.8% over a period of 18 months. At CMP of `233.8 the stock
is trading at an attractive valuation of 13.0x and 10.2x on FY15E
& FY16E earnings respectively.
Strong overseas order book to spearhead performance
EIL’s strategy to diversify globally has started paying dividends. This should not
only help in boosting the order book but also improve its revenues and
profitability. Accordingly, we expect the order book to grow to `4,765.6 crore by
FY16 from current ~`3,700 crore.
Sensex 22,629
Nifty 6,776
BSE 100 6,807
Industry CG
Scrip Details
Mkt Cap (` cr) 8,198
BVPS (`) 75.6
O/s Shares (Cr) 37.1
Av Vol (Lacs) 1.8
52 Week H/L 239/121
Div Yield (%) 3.9
FVPS (`) 5.0
Shareholding Pattern
Shareholders %
Promoters 70.4
DIIs 10.8
FIIs 6.8
Public 11.9
Total 100.0
EIL vs. Sensex
Key Financials (` in Cr)
Y/E Dec Net
Sales EBITDA PAT EPS
EPS Growth (%)
RONW (%)
ROCE (%)
P/E (x)
EV/EBITDA (x)
2013 2475.3 598.6 632.2 18.8 -1.81 27.5 19.7 12.5 3.0
2014E 1878.8 456.6 506.5 15.0 -19.88 19.4 15.7 15.6 3.8
2015E 2217.0 570.2 604.8 18.0 19.42 20.2 16.8 13.0 3.1
2016E 2549.5 777.4 770.4 22.9 27.37 22.0 19.0 10.2 2.4
- 2 of 15 - Friday 11th
April, 2014
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Further, the skewing of revenues in favour of high margin consultancy services
should help improve profitability in the long term. We are particularly enthused by the
recent large consultancy orders that the company has bagged in Nigeria ($139 mn
to set up a refinery and polypropylene plant) and Oman ($43 mn to set up a new
petrochemical complex) and that too against stiff competition.
In a number of international projects for which EIL has tendered, it has emerged as
an L1 bidder. Based on the above, we expect significant order flows to be booked
over and above our estimates, representing a significant upside risk to the stock
price movement. We believe that the global markets offer a significant opportunity
for the company to emerge as a major global player, aided by its domain expertise
and competitive pricing.
Valuation
We initiate coverage on EIL as a BUY with a target price of `320.1, representing a
potential upside of ~36.8% over a period of 18 months. At the CMP of `233.8 the
stock is trading at an attractive valuation of 13.0x and 10.2x on its FY15E and
FY16E EPS of `18.0 and `22.9, respectively and on an EV/EBITDA basis, the stock
is trading at a multiple of 3.1x for FY15E and 2.4x for FY16E.
- 3 of 15 - Friday 11th
April, 2014
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Company Background
Engineers India Ltd, established in 1965, is a ‘Total Solution’ engineering
consultancy company providing design, engineering, procurement, construction and
integrated project management services. It is principally focused on oil & gas and
petrochemical industries. The Company has also diversified into sectors like
infrastructure, water and waste management, solar & nuclear power and fertilizers to
leverage its strong technical competencies and track record. EIL has an impressive
record of executing over 5000 assignments consisting of 400 major projects valued
over $200 bn. It has significant track record across the entire oil & gas value chain,
including 10 green-field refineries, 39 oil & gas processing plants, 40 offshore
process platforms, 42 pipelines and 7 petrochemical complexes.
EIL Services Offered and Business Presence
Source: EIL, Ventura Research
- 4 of 15 - Friday 11th
April, 2014
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Key Investment Highlights
Strong overseas order book to spearhead performance
EIL’s strategy to diversify globally has started paying dividends. This should not only
help in boosting the order book but also improve its revenues and profitability.
Accordingly, we expect the order book to grow to `4,765.6 crore by FY16 from the
current ~`3,700 crore. Revenues and earnings are expected to grow at a CAGR of
16.5% and 23.3% to `2,549.5 crore and `770.4 crore by FY16. Further, the skewing
of revenues in favour of the high margin consultancy services should help improve
profitability in the long term.
We are particularly enthused by the recent large consultancy orders that the
company has bagged in Nigeria ($139 mn to set up a refinery and polypropylene
plant) and Oman ($43 mn to set up a new petrochemical complex) and that too
against stiff competition. In a number of international projects for which EIL has
tendered, it has emerged as an L1 bidder. Based on the above, we expect
significant order flows to be booked over and above our estimates, representing a
strong upside risk to the stock price movement.
We believe that the global markets offer a potent opportunity for the company to
emerge as a major global player, aided by its domain expertise and competitive
pricing.
EIL experienced sharp slowdown in order intake and order flow
post FY11
Following the sharp slowdown in capital investments since FY12, the order intake
simply dried up, leading to a sharp de-growth in the order book. This led to the order
booking falling sharply from a historic high of `7,500 crore in FY11.
Order Book and Order Inflow have started climbing post 2012
0
1000
2000
3000
4000
5000
6000
7000
8000
FY09 FY10 FY11 FY12 FY13 9MFY14
` Crore
Order Book Order Inflow
Source: EIL, News Publication, Ventura Research
- 5 of 15 - Friday 11th
April, 2014
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Geographical diversification has led to a resurgence in order
book
The political paralysis and reluctance of Indian PSUs (despite being cash rich) to
invest, forced EIL to rethink its growth strategy. Banking on its core expertise of
project management services and the hydro carbon domain, the company
strategized a foray into newer geographies to diversify risk.
In line with this strategy, which has started paying off, it has set up offices across the
globe. Currently EIL has a presence in several countries of the Middle East (Bahrain,
Iran, Iraq, Kuwait, Oman, Malaysia, Qatar, Saudi Arabia, UAE), North Africa (Nigeria,
Algeria, Sudan) and South East Asia (Bangladesh, Indonesia, Vietnam and
Malaysia). Most of the major oil & gas companies located in these regions like
Sonatrach, ZADCO, KNPC, BAPCO, BANAGAS etc. have utilized EIL’s services for
their projects.
In order to expand its operations, EIL continues to identify strategic partners whose
resources, capabilities and strategies are complementary and are likely to enhance
its business operations in these regions. EIL is developing overseas relationships /
JVs with other EPC players for bidding in large projects which will further fuel its
global order inflows.
EIL’s Overseas Presence
Source: EIL, Ventura Research
- 6 of 15 - Friday 11th
April, 2014
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
The management is optimistic of increasing its order inflows significantly from
Middle-East, Africa and South East Asia in the coming quarters. Since the lows of
FY13, both its order intake and order book have gained traction, aided by a sharp
rise in the contribution from the overseas order book. The overseas order book has
witnessed dramatic growth from FY10 to 9MFY14.
The current order book stands at `3,700 crore as on Q3FY14 end, which is ~1.5x
FY13 sales of `2,475 crore. In the coming 2-3 quarters EIL is likely to add new order
inflows mainly in the consultancy segment worth more than `3,070 crore, which
should improve its revenue visibility..
Geographical Break-up (FY10) Geographical Break-up (9MFY14)
Overseas15%
Domestic85%
Order Book SizeFY10 - `6200 Crore
Overseas45%
Domestic55%
Order Book Size9MFY14 - `3700 Crore
Source: EIL, Ventura Research Source: EIL, Ventura Research
- 7 of 15 - Friday 11th
April, 2014
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
EIL’s Major Ongoing Projects
EIL's Share
` Cr.
Coker block for Resid Upgradation Project of CPCL, Chennai 670 Aug 2013 Oct 2015
Pipeline and south jetty facilities for IOCL Paradip refinery 630 1Q FY11 1Q FY14
Onshore gas processing complex at Kakinada for GSPC 1900 4Q FY10 4Q FY14
SPM , Pipeline and related facilities for MRPL, Mangalore 730 2Q FY10 May 2014
PFCC, SRU and Polypropylene projects of Phase III refinery project at
Mangalore for MRPL1900 3Q FY08 4Q FY14
Butene-1 project at Panipat for IOCL 150 1Q FY12 4Q FY14
Polypropylene projects for MRPL 860 2Q FY09 2Q FY15
6 MMTPA Integrated Refinery Expansion Project (IREP) at Kochi of
Bharat Petroleum Corporation Ltd (BPCL)720 1Q FY12 Mar 2016
Dahej Petrochemical Complex for ONGC Petro-additions (OPaL) 470 3Q FY08 3Q FY15
Interceptor project of DJB 130 4Q FY08 3Q FY15
Mallavaram-Bhopal-Bhilwara-Vijaipur Pipeline Project (MBBVPL) for
GSPL & Gujarat India Transco Ltd. (GITL)71 4Q FY12 3Q FY15
Mehsana-Bhatinda pipeline project of total 1600 KMs for GSPL 66 4Q FY12 3Q FY15
Rajiv Gandhi Institute of Petroleum technology (RGIPT) at Rai Bareli
and Sibsagar33 1Q FY10 4Q FY16
Data Centre of UIDAI at Delhi and Bengaluru for Unique Identification
Authority of India (UIADI)37 4Q FY12 3Q FY15
Petrochemical expansion project at GAIL Vijaipur and GAIL Pata plants 420 2Q FY10 2Q FY15
Western onshore redevelopment project for Mehsana, Ankleshwar
and Ahmedabad Assets of ONGC83 2Q FY11 1Q FY18
Assam gas cracker complex at Lepetkata for BCPL 465 2Q FY07 2Q FY15
Facility for fertilizer products in Port Harcourt, River State, Nigeria 29 Mar 2013 June 2016
ShahJalal fertilizer project for BCIC, Bangladesh 13 Apr 2013 Dec 2015
Ammonia Plant in Indonesia for Panca Amara Utama (PAU) 26 July 2013 Mar 2016
Rehabilitation and adaptation of Algiers refinery refinery of
SONATRACH - Algeria80 Mar 2005 4Q FY14
PMC Services for a refinery and polypropylene plant, Nigeria 850 4Q FY14
PMC Services to setup new 800,000 tonne petrochemical complex
adjacent to the Sohar Refinery, Oman245 1Q FY15
PMC Services for Rajasthan Refinery 1200 2Q FY15
Bahrain Consultancy Project 775 2Q FY15
Projects Expected in 1-2 Quarters
Ongoing International Projects
Name of ProjectsExpected date
of Completion
Date of
Commencement
Turnkey Projects
Consulting – Fixed Price Contracts
Consulting – Cost / Rate Reimbursable Contracts
Source: EIL, Ventura Research
- 8 of 15 - Friday 11th
April, 2014
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Order book to sales ratio to be maintained at current levels
At the bare minimum, we expect the order book to sales ratio to be maintained at
current levels of ~1.9x of FY14. However, in our opinion, there is a significant upside
risks to our estimates, as EIL’s domain expertise and its competitive bidding has
resulted in EIL emerging as an L1 contender in a number of international projects.
EIL is well placed to benefit from the projected global
investments in the hydrocarbon sector
With global energy demand needs only expected to burgeon, investments are also
expected to get a major boost. And with EIL’s core competence in the hydro carbon
domain coupled with its cost effective services stands the company in good stead to
benefit from this macro environment.
Order book to sales (x)
3.9
3.1
2.8
1.11.3
2.0 1.9 1.9
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
FY09 FY10 FY11 FY12 FY13 FY14E FY15E FY16E
(x)
Source: EIL, Ventura Research
Global Energy demand set to increase by 4 bn toe by FY2030
Commensurately global energy investments also set to rise
12
13
14
15
16
17
18
2011 OECD Non OECD
2011 OIl Natutal Gas
Coal Non Fossil
Demand Supply
2030 LevelRennwable
Hydro
Nuclear
Bn.Toe
220
139
105
39
90
132
58
221
60
89
4829
104122
44
0
50
100
150
200
250
China India Middle East Africa Latin America
in US$ bn (2010-2035)
Oil Refining NG Tranmissions & Dist. LNG
Source: EIL, Ventura Research
Source: EIL, Ventura Research
- 9 of 15 - Friday 11th
April, 2014
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
In the domestic market EIL is eyeing opportunities beyond
traditional segments
EIL further intends to diversify beyond the hydro-carbon segment where there is
growth potential. It has identified areas into which it would like to foray on a project
specific basis viz. oil and gas exploration, power - nuclear and solar, gas based
fertilizer projects, coal to liquid, water and waste management and city gas
distribution.
The XIIth plan investment outlay for the hydrocarbon sector provides a huge
domestic opportunity for EIL in these areas over FY12E - FY17E.
However we have not modeled this in our revenue forecast.
Segment wise Consultancy Order Book Bifurcation Segment wise Turnkey Order Book Bifurcation
Hydrocarbon, 66.3%
Chemicals & Fertilisers,
21.8%
Infrastructure, 9.6%
Metal, 1.0%
Others, 1.3%
FY13
Hydrocarbon, 69.2%
Chemicals & Fertilisers,
30.8%
FY13
Source: EIL, Ventura Research
Source: EIL, Ventura Research
Sustained Focus on Hydrocarbon Sector in India
Sector 12th Plan Outlay (`Cr.)
Exploration & Production 283700
Refinery & Marketing 105600
Petro-Chemical 17300
Total 406600
Source: EIL, Ventura Research
- 10 of 15 - Friday 11th
April, 2014
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Revenue skewing in favour of consultancy services augurs well
for future profitability
Along with the geographic expansion, we are also witnessing a skewing of revenues
in favour of the high margin (+35%) consultancy services from the erstwhile
concentration of low margin (6-8%) LSTK projects.
We expect the business mix to further shift to 70:30 and 85:15 in FY15E and FY16E,
respectively, in favour of the PMC segment, aided by strong international order
inflows in its PMC segment.
Favourable change in order book mix
35%44%
59%65% 65% 70%
85%
65%56%
41%35% 35% 30%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY11 FY12 FY13 9MFY14 FY14E FY15E FY16E
Consultancy LSTK
Source: EIL, Ventura Research
Segment wise Revenue Mix (` Cr.) Segment wise EBIT Mix (` Cr.)
11531232
12571221 1552
2167
16952492
1272658 665
382
0%
20%
40%
60%
80%
100%
FY11 FY12 FY13 FY14E FY15E FY16E
Consultancy LSTK
503 525535
427 543 758
196 245110
46 43 25
0%
20%
40%
60%
80%
100%
FY11 FY12 FY13 FY14E FY15E FY16E
Consultancy LSTK
Source: EIL, Ventura Research
Source: EIL, Ventura Research
- 11 of 15 - Friday 11th
April, 2014
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Revenue and profitability to experience significant traction
In line with the above, we expect revenues to experience significant traction to
`2,549.5 crore (CAGR of 16.5%) from the current `1,878.8 crore aided by the sharp
spurt in overseas revenues (FY16 revenue share of ~50%) over the forecast period.
Consequently, we expect the profitability of the company to gain traction with EBIT
and PAT expected to grow at a CAGR of 24.3% and 23.3% to `1,123.5 crore and
`770.4 crore, respectively, by FY16.
Thus the strong traction and change in revenue mix in favour of the high margin
consultancy business segment in the coming quarters will aid its blended EBIT
margins improve from ~24% in FY14E to ~30% in FY16E.
Risks and Concerns
Appreciation of the INR could adversely impact the profitability of the company
as its overseas business pie has increased significantly.
Delays in execution of order book and slowdown in new order inflows could lead
to lower revenue than our estimates.
EIL to experience strong growth over the forecast period
Blended margins to improve going forth as LSTK revenues plummet
0
500
1000
1500
2000
2500
3000
3500
4000
4500
FY11 FY12 FY13 FY14E FY15E FY16E
` Crore
Revenue EBIT PAT
24%
18%
24% 24%25%
30%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
FY11 FY12 FY13 FY14E FY15E FY16E
(%)
Consultancy LSTK EBIT Margin
Source: EIL, Ventura Research
Source: EIL, Ventura Research
- 12 of 15 - Friday 11th
April, 2014
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Financial Performance
In Q3FY14, the net profit remained flat YoY at `135.1 crore from `132.3 crore
recorded in Q3FY13, as the other income increased from `66.9 crore to `108.4 crore
YoY. The EBITDA decreased by 32.6% YoY to `98.9 crore, however, there was an
improvement in the EBITDA margin by 185 basis points to 23.5%. EIL’s total
revenue for Q3FY14 decreased by 30.5% to `420.4 crore as against `604.8 crore
YoY mainly due to a lack of order inflows. The order book has improved YoY from
~`3,300 crore to `3,700 crore in Q3FY14.
Financial Outlook
Significant order inflows from international operations and skewing of the order book
in favour of the high margin consultancy services business should boost overall
revenue and profitability for EIL. Accordingly we expect revenues and PAT to grow
at CAGR of 16.5% and 23.3% to `2,549.5 crore and `770.4 crore respectively by
FY16. EBITDA margins are expected to improve by 748 bps to 44.5% by FY16 from
the current 37.0% clocked in FY13.
Quarterly Financial Performance (` in crore)
Particulars Q3FY14 Q2FY14 Q3FY13 9MFY14 FY13 FY12
Net Sales 420.4 465.2 604.8 1328.8 2452.2 3898.5
Growth % -30.5 -9.6 -37.1
Total Expenditure 321.5 376.6 473.7 1024.8 1861.2 3190.9
EBIDTA 98.9 88.6 131.1 304 591.0 707.6
EBDITA Margin % 23.5 19.0 21.7 22.9 24.1 18.2
Depreciation 2.7 2.2 2.4 7.4 10.9 19.4
EBIT (EX OI) 96.2 86.4 128.7 296.6 580.1 688.2
Other Income 108.4 82.8 66.9 259.2 316.4 232.2
EBIT 204.6 169.2 195.6 555.8 896.5 920.4
Margin % 48.7 36.4 32.3 41.8 36.6 23.6
Interest 0.0 0.0 0 0 1.3 3.6
Exceptional items 0.0 0.0 0.0 0.0 -4.3 -1.9
PBT 204.6 169.1 195.6 555.8 890.9 914.9
Margin % 48.7 36.3 32.3 41.8 36.3 23.5
Provision for Tax 69.5 57.3 63.3 179.5 262.4 278.5
PAT 135.1 111.8 132.3 376.3 628.5 636.4
PAT Margin (%) 32.1 24.0 21.9 28.3 25.6 16.3
Source: EIL, Ventura Research
- 13 of 15 - Friday 11th
April, 2014
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Valuation
We initiate coverage on EIL as a BUY with a target price of `320.1, representing a
potential upside of ~36.8% over a period of 18 months. At the CMP of `233.8 the
stock is trading at an attractive valuation of 13.0x and 10.2x on its FY15E and
FY16E EPS of `18.0 and `22.9, respectively and on an EV/EBITDA basis, the stock
is trading at a multiple of 3.1x for FY15E and 2.4x for FY16E.
Revenue and Profitability Trend Strong dividend track record
34%31%
24%
37%39% 40%
44%
22%20%
16%
26%27% 27%
30%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
500
1000
1500
2000
2500
3000
3500
4000
4500
FY10 FY11 FY12 FY13 FY14E FY15E FY16E
` Crore
Revenue EBITDA RHS (%) PAT RHS (%)
28%
29%
30%
31%
32%
33%
34%
0
1
2
3
4
5
6
7
8
FY11 FY12 FY13 FY14E FY15E FY16E
`
DPS Dividend Payout Ratio (RHS))
Source: EIL, Ventura Research
Source: EIL, Ventura Research
P/E Vs. ROCE Order book/Sales Vs. EV/EBITDA
Engineers India Ltd.
L&T
BHEL
Cromption Greaves
VA Tech Wabag
Toyo Engineering
Crop
Shanghai Tunnel Eng
Encor Group
Foster Wheeler
Jacobs Engg
Worley Parsons
7
9
11
13
15
17
19
21
4 7 10 13 16 19 22
2 Y
rs.
RO
CE
(%
)
2 yrs. Fwd P/E
International Peers
Engineers India Ltd.
L&T
BHEL
Cromption Greaves
Toyo Engineering
Crop
Shanghai Tunnel Eng
Encor Group
Foster Wheeler
Jacobs Engg
WorleyParsons
1.0
6.0
11.0
16.0
21.0
0.0 0.5 1.0 1.5 2.0 2.5
2 Y
rs.
EV
/EB
ITD
A
Order book/Sales (x)
International Peers
Source: EIL, Ventura Research
Source: EIL, Ventura Research
- 14 of 15 - Friday 11th
April, 2014
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
P/E
0
100
200
300
400
500
600
Apr-04 Apr-06 Apr-08 Apr-10 Apr-12 Apr-14
CMP 9X 13X 17X 21X 25X
Source: EIL, Ventura Research
P/BV
0
100
200
300
400
500
600
Apr-04 Apr-06 Apr-08 Apr-10 Apr-12 Apr-14
CMP 2X 2.9X 3.8X 4.7X 5.6X
Source: EIL, Ventura Research
EV/EBITDA
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Apr-04 Apr-06 Apr-08 Apr-10 Apr-12 Apr-14
EV 6X 9X 12X 15X 18X
Source: EIL, Ventura Research
- 15 of 15 - Friday 11th
April, 2014
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
Financials and Projections
Y/E March, Fig in ` Cr FY 2013 FY 2014E FY 2015e FY 2016e Y/E March, Fig in ` Cr FY 2013 FY 2014E FY 2015e FY 2016e
Profit & Loss Statement Per Share Data (Rs)
Net Sales 2475.3 1878.8 2217.0 2549.5 Adj. EPS 18.8 15.0 18.0 22.9
% Chg. -36.9 -24.1 18.0 15.0 Cash EPS 17.3 13.9 16.6 21.0
Total Expenditure 1876.7 1422.2 1646.8 1772.2 DPS 6.0 5.0 5.4 6.9
% Chg. -41.4 -24.2 15.8 7.6 Book Value 68.1 77.3 89.0 103.8
EBDITA 598.6 456.6 570.2 777.4 Capital, Liquidity, Returns Ratio
EBDITA Margin % 24.2 24.3 25.7 30.5 Debt / Equity (x) 0.0 0.0 0.0 0.0
Other Income 316.8 279.9 314.7 356.1 Current Ratio (x) 1.9 2.2 2.3 2.4
PBDIT 915.4 736.5 884.8 1133.5 ROE (%) 27.5 19.4 20.2 22.0
Depreciation 11.1 8.8 9.4 10.0 ROCE (%) 19.7 15.7 16.8 19.0
Interest 1.4 4.0 5.0 6.0 Dividend Yield (%) 2.6 2.2 2.4 3.0
Exceptional items -4.5 -5.0 -5.0 -5.0 Valuation Ratio (x)
PBT 898.5 718.6 865.4 1112.5 P/E 12.5 15.6 13.0 10.2
Tax Provisions 266.3 212.1 260.6 342.1 P/BV 3.4 3.0 2.6 2.3
Reported PAT 632.2 506.5 604.8 770.4 EV/Sales 1.1 1.5 1.3 1.1
PAT Margin (%) 25.5 27.0 27.3 30.2 EV/EBIDTA 3.0 3.8 3.1 2.4
Adj. PAT 632.2 506.5 604.8 770.4 Efficiency Ratio (x)
Manpower cost / Sales (%) 23.4 32.5 35.5 44.0 Inventory (days) 0.1 0.2 0.2 0.1
Other opr Exp / Sales (%) 21.4 15.7 13.6 7.8 Debtors (days) 50.7 62.1 62.1 62.1
Tax Rate (%) 29.6 29.5 30.1 30.8 Creditors (days) 206.4 182.5 182.5 182.5
Balance Sheet Cash Flow statement
Share Capital 168.5 168.5 168.5 168.5 Profit After Tax 902.9 723.6 870.4 1117.5
Reserves & Surplus 2126.8 2436.1 2828.7 3328.7 Depreciation 11.1 8.8 9.4 10.0
Minority Interest 0.0 0.0 0.0 0.0 Working Capital Changes (285.5) (391.0) (408.0) (547.3)
Total Loans 0.0 0.0 0.0 0.0 Others -286.5 -225.3 -271.3 -348.8
Deferred Tax Liability -237.3 -291.3 -309.2 -328.9 Operating Cash Flow 342.1 116.2 200.5 231.4
Total Liabilities 2058.0 2313.3 2687.9 3168.2 Capital Expenditure 0.3 -5.2 -8.7 -9.2
Gross Block 198.0 206.6 215.8 225.7 Change in Investment -66.1 283.7 265.2 351.1
Less: Acc. Depreciation 144.4 153.2 162.6 172.6 Cash Flow from Investing -65.8 278.5 256.5 341.8
Net Block 53.6 53.4 53.2 53.1 Proceeds from equity issue 0.0 0.0 0.0 0.0
Capital Work in Progress 135.5 113.6 86.3 56.4 Issue Exp 0.0 0.0 0.0 0.0
Investments 102.1 120.1 141.7 167.6 Dividend and DDT -274.1 -197.1 -212.3 -270.4
Net Current Assets 1766.7 2026.2 2406.7 2891.0 Cash Flow from Financing -274.1 -197.1 -212.3 -270.4
Deferred Tax Assets 0.0 0.0 0.0 0.0 Net Change in Cash 2.2 197.5 244.7 302.8
Misc Expenses 0.0 0.0 0.0 0.0 Opening Cash Balance 1757.2 1759.4 1956.9 2201.6
Total Assets 2058.0 2313.3 2687.9 3168.2 Closing Cash Balance 1759.4 1956.9 2201.6 2504.4
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