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Transcript of Jm-financial Crisil 270612
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7/28/2019 Jm-financial Crisil 270612
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MAKINGMARKETS
FUNCTION
BETTE
R
YEARS
Apollo HospitalsEnterprise Ltd
CRISIL IER IndependentEquityResearch
Enhancing investment decisions
Detailed Report
JM Financial Ltd
Q4FY12 Result Update
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CRISIL IERIndependentEquityResearch
Explanation of CRISIL Fundamental and Valuation (CFV) matrix
The CFV Matrix (CRISIL Fundamental and Valuation Matrix) addresses the two important analysis of an investment making process Analysisof 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).
CRISIL
Fundamental Grade Assessment
CRISIL
Valuation 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 (negative 10-25% from CMP)
1/5 Poor fundamentals 1/5 Strong downside (
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MAKINGMARKETS
FUNCTION
BETTE
R
YEARS
JM Financial LtdProfit from sale of investment boosts bottom line
Fundamental Grade 4/5 (Superior fundamentals)
Valuation Grade 5/5 (CMP has strong upside)
Industry Capital markets
1
June 27, 2012
Fair Value Rs 36
CMP Rs 12
For detailed initiating coverage report please visit: www.ier.co.in
CRISIL Independent Equity Research reports are also available on Bloomberg (CRI ) and Thomson Reuters.
J M Financial Ltds Q4FY12 earnings were marginally higher than CRISIL Researchs
expectations boosted by the profit from sale of investments. Though the financial sector is
facing challenging times due to a subdued market environment, we remain positive on the
financial services industry and J M Financials strong positioning in the sector. Hence, we
maintain the fundamental grade of4/5.
Q4FY12 result analysis (consolidated)
Revenues grew 36.5% q-o-q (up 34.9% y-o-y) to Rs 2.6 bn driven by investment banking,
securities funding and profit from sale of investments. Securities and investment banking
business were up 55% q-o-q to Rs 1.2 bn as the company managed to close five deals
(four debt deals and one QIP issue) despite challenging market conditions.
Revenues of the securities funding and fund-based activities grew 18% q-o-q to
Rs 1.2 bn due to increase in yields (average yields at 15%) despite the lending book
declining 6% q-o-q to Rs 20 bn. As the company passed on the higher cost of
borrowings, net interest margins were maintained at ~4%. Segment PBT (after interest)grew 25% q-o-q.
The AMC business, which turned profitable in 3Q, went the negative way this quarter due
to bonus payouts (as retention strategy). Alternative asset management posted a gross
profit of ~Rs 250 mn because of its exit from the special situations fund of Rs 2 bn and
fees earned from private equity (PE) and real estate fund of Rs 13 bn (where promoters
contribution is ~8%). However, segment PBT was Rs 47 mn as it provided Rs 60 mn for
the PE and real estate fund following the triggering of the claw back provisions. The
company also sold current investment of ~Rs 2 bn during the year which stands at
Rs 5 bn as of FY12. Hence, cash levels grew to Rs 13.7 bn in FY12 vs. Rs 10.6 bn in
FY11.
Following revenue growth, EBITDA grew 30% q-o-q to Rs 1.5 bn despite higher
brokerage, commission fees and other costs (as brokerage pass-outs to distributorsincreased due to five IB deals executed during the quarter). Operating and other
expenses grew 83% q-o-q to Rs 431 mn due to legal tax on IT expense and initial
investment in overseas expansion. EBITDA margin fell by 283 bps q-o-q to 56.0%.
Adjusted PAT grew 42% q-o-q (up 45% y-o-y) to Rs 408 mn in line with the growth in
revenues and lower tax rate. The tax rate fell to 27.8% as against 33.4% in Q3FY12. The
company reported EPS of Rs 0.54 vs. Rs 0.38 in Q3FY12.
Valuations: Current market price has strong upside
We continue to value J M Financial based on the sum-of-the-parts method. Our fair value of
Rs 36 per share implies P/E multiple of 17.1x FY13E earnings. At the current market price of
Rs 12, our valuation grade is 5/5.
KEY FORECAST
(Rs mn) FY09 FY10 FY11 FY12# FY13EOperating income 4,644 5,751 8,478 8,642 9,676
EBITDA 1,446 2,098 4,472 4,785 5,080
Adj Net income 501 1,107 1,847 1,212 1,576
Adj EPS-Rs -1.4 2.0 2.3 1.6 2.1
EPS growth (%) NM NM 15.1 -30.6 30.1
Dividend Yield (%) 1.0 1.3 5.0 5.0 5.6
RoCE (%) 5.3 6.8 9.4 8.7 9.1
RoE (%) -5.5 7.9 8.5 5.8 7.2
PE (x) NM 18.7 5.2 7.4 5.7
P/BV (x) 0.8 1.4 0.4 0.4 0.4
EV/EBITDA (x) 7.5 18.2 7.1 5.9 5.6
NM: Not meaningful; CMP: Current market price #abridged financials
Source: Company, CRISIL Research estimates
CFV MATRIX
KEY STOCK STATISTICSNIFTY/SENSEX 5121/16907
NSE ticker J MFINANCIL/J MFINAN
Face Value (Rs per share) 1
Shares outstanding (mn) 750
Market cap (Rs mn)/(US$ mn) 8,996/161
Enterprise value (Rs mn)/ (US$ mn) 30,880/552
52-week range (Rs) (H/L) 26/12
Beta 1.52
Free float (%) 32.8%
Avg daily volumes (30-days) 123,613
Avg daily value (30-days) (Rs mn) 16.7
SHAREHOLDING PATTERN
PERFORMANCE VIS--VIS MARKET
Returns
1-m 3-m 6-m 12-m
J M Financial -1% -16% -21% -47%
NIFTY 4% 8% 8% -7%
ANALYTICAL CONTACTMohit Modi (Director) [email protected]
Elizabeth J ohn [email protected]
Vishal Rampuria [email protected]
Client servicing desk
+91 22 3342 3561 [email protected]
1 2 3 4 5
1
2
3
4
5
Valuation Grade
FundamentalGrade
PoorFundamentals
ExcellentFundamentals
Stron
g
Downs
ide
Stron
g
Upsid
e
66.9% 67.0% 67.1% 67.2%
7.3% 7.4% 7.3% 7.1%
25.8% 25.6% 25.6% 25.7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
J un-11 Sep-11 Dec-11 Mar-12
Promoter FII Others
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CRISIL IERIndependentEquityResearch
2
Q4FY12 Result Summary (Consolidated)
(Rs mn) Q4FY12 Q3FY12 Q4FY11 q-o-q (%) y-o-y (%) FY12# FY11 y-o-y (%)
Income from operations 2,602 1,907 1,929 36.5 34.9 8,642 8,478 1.9
Employee Cost 466 433 305 7.5 52.8 1,767 2,049 (13.8)
Sub-brokerage, fees and commission 249 117 140 113.2 77.2 917 830 10.5
Operating and other expenses 431 236 329 82.9 30.8 1,173 1,127 4.1
EBITDA 1,456 1,121 1,155 29.9 26.1 4,784 4,472 7.0
EBITDA margin 56.0% 58.8% 59.8% (283) bps (387) bps 55.4% 52.7% 261 bps
Depreciation 27 28 31 (4.8) (13.7) 115 124 (7.8)
EBIT 1,429 1,093 1,123 30.8 27.2 4,670 4,348 7.4
Interest and finance charges 846 648 778 30.6 8.8 2,942 2,437 20.7
Other income N.A N.A N.A - - 100 473 (78.9)
Operating PBT 583 445 345 31.1 68.7 1,827 2,384 (23.3)
PBT 583 445 345 31.1 68.7 1,827 2,384 (23.3)
Tax 162 149 69 9.2 136.2 596 532 11.9
PAT 421 296 277 42.0 52.0 1,232 1,852 (33.5)
Minority Interest 22 33 27 (32.9) (18.5) 95 73 29.9Profit of Associates 10 24 31 (59.6) (69.1) 75 69 9.4
Adj Consolidated PAT 408 287 281 42.2 45.3 1,212 1,847 (34.4)
Adj PAT margin 15.7% 15.0% 14.6% 63 bps 112 bps 14.0% 21.8% (776) bps
No of equity shares (mn) 749.9 749.9 749.7 - 0.0 749.9 749.7 0.0
Adj EPS (Rs) 0.54 0.38 0.4 42.2 45.2 1.6 2.3 (34.4)
Source: Company, CRISIL Research
Segment revenue
Rs mn Q4FY12 Q3FY12 Q4FY11 q-o-q (%) y-o-y (%)
Investment banking and securities business 1,187 763 1,003 55 18
Securities funding and fund based activities 1,202 1,022 869 18 38
Alternative asset management 251 41 -26 507 -1057
Asset management 75 82 77 -8 -2
Others 67 61 159 10 -58
Total segment revenues 2,782 1,970 2,081 41 34
Intersegment revenues 180 64 152 183 19
Total revenues 2,602 1,907 1,929 36 35
Segment profit before tax
Rs mn Q4FY12 Q3FY12 Q4FY11 q-o-q (%) y-o-y (%)
Investment banking and securities business 124 84 241 49 -48
Securities funding and fund based activities 419 336 242 25 73
Alternative asset management 47 -8 -139 NM NM
Asset management -20 15 9 NM NMOthers 13 19 -8 -29 NM
Total segment revenues 583 445 345 31 69
Source: Company
Consolidated financials Actual vis--vis estimates
Rs mn FY12E FY12A* Variance
Operating Income 8,450 8,642 2%
EBITDA 4,180 4,785 14%
Profit after tax 1,139 1,212 6%
*adjusted for miscellaneous income
Source: Company, CRISIL Research
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MAKINGMARKETS
FUNCTION
BETTE
R
YEARSJM Financial Ltd
3
Revenue growth driven by profit on sale of investments... ... led to PAT growth
Source: Company, CRISIL Research Source: Company, CRISIL Research
Equity market volumes grew 6% q-o-q in Q4FY12 Options trading dominated market volumes
Source: Industry, Bloomberg League Tables Source: Industry, Bloomberg League Tables
FII net flows dried up Segment-wise revenue mix
Source: Industry, Bloomberg League Tables Source: Company
1,7
15
1,9
30
2,3
28
2,7
64
1,9
29
2,0
81
2,1
52
1,9
07
2,6
02
28%
42%
54%
62% 60%55% 54%
59%56%
0%
10%
20%
30%
40%
50%
60%
70%
-
500
1,000
1,500
2,000
2,500
3,000
Q4FY10
Q1FY11
Q2FY11
Q3FY11
Q4FY11
Q1FY12
Q2FY12
Q3FY12
Q4FY12
(Rs mn)
Revenues EBITDA margins (RHS)
212 294 575 595 281 244 273 287 408
12%
15%
25%
22%
15%
12% 13%15% 16%
0%
5%
10%
15%
20%
25%
30%
0
100
200
300
400
500
600
700
Q4FY10
Q1FY11
Q2FY11
Q3FY11
Q4FY11
Q1FY12
Q2FY12
Q3FY12
Q4FY12
(Rs mn)
PAT PAT margin (RHS)
726612
950
1,331 1,3331,465 1,418 1,504
-
200
400
600
800
1,000
1,200
1,400
1,600
FY08
FY09
FY10
FY11
Q1FY12
Q2FY12
Q3FY12
Q4FY12
(Rs bn)
31%
25%
25%
23%
28%
26%
24%
20%
16%
16%
14%
11%
10%
10%
8%
11%
53%
48%
45%
43% 4
4%
39%
39%
36%
33%
31%
29%
24%
23%
21%
21%
22%
16%
27%
30%
34%
29%
35%
37%
44%
51%
53%
57%
65%
67%
69%
71%
67%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q1FY09
Q2FY09
Q3FY09
Q4FY09
Q1FY10
Q2FY10
Q3FY10
Q4FY10
Q1FY11
Q2FY11
Q3FY11
Q4FY11
Q1FY12
Q2FY12
Q3FY12
Q4FY12
Cash Futures Options
-479
1,102 1,101
52
-30 -24
440
-600
-400
-200
0
200
400
600
800
1,000
1,200
FY09 FY10 FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12
(Rs bn)
52% 56% 50% 48% 45% 42% 39% 43%
31% 30% 41% 42% 46%
35%52% 43%
8% 7% 4%4%
3%
2% 9%4% 3% 3% 4%
3%
3%
4% 3%4%4% 3% 8% 3%
17%
3% 2%
0%
20%
40%
60%
80%
100%
Q1FY11
Q2FY11
Q3FY11
Q4FY11
Q1FY12
Q2FY12
Q3FY12
Q4FY12
Investment banking Securities funding
Alternative asset management Asset management
Others
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CRISIL IERIndependentEquityResearch
4
JM Financials securities lending book declined 6%
q-o-q due to challenging times
MF AUM declined 15% q-o-q as debt AUM (90% of AUM)
was down 16% and equity AUM down 9% q-o-q
Source: Company Source: Company
Share price movement Fair value movement since initiation
-indexed to 100
Source: NSE, CRISIL Research Source: BSE, NSE, CRISIL Research
19
20
21
20
21
20
16
18
20
22
Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12
(Rs bn)
58,8
80
52,0
10
65,2
50
62,0
89
60,8
36
53,0
10
62,9
60
69,1
50
58,8
51
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Q4FY10
Q1FY11
Q2FY11
Q3FY11
Q4FY11
Q1FY12
Q2FY12
Q3FY12
Q4FY12
(Rs mn)
0
50
100
150
200
250
300
350
Feb-0
9
May-0
9
Aug-0
9
Dec-0
9
Mar-10
Jul-10
Oct-10
Jan-1
1
May-1
1
Aug-1
1
Nov-1
1
Mar-12
Jun-1
2
J M Financial NIFTY
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
0
10
20
30
40
50
60
Dec-0
9
Feb-1
0
Apr-10
May-1
0
Jun-1
0
Aug-1
0
Sep-1
0
Nov-1
0
Dec-1
0
Feb-1
1
Mar-11
May-1
1
Jun-1
1
Aug-1
1
Sep-1
1
Nov-1
1
Dec-1
1
Feb-1
2
Mar-12
May-1
2
Jun-1
2
('000)(Rs)
Total Traded Quantity (RHS) CR ISIL Fair Value J M Financia
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MAKINGMARKETS
FUNCTION
BETTE
R
YEARSJM Financial Ltd
5
Key Developments
J M Financial has amalgamated its subsidiaries - J M Financial Institutional Securities Pvt
Ltd, J M Financial Securities Pvt Ltd and JM Financial Ventures Ltd - with its wholly
owned subsidiary JM Financial Consultants Pvt Ltd with effect from March 31, 2012.
Hence, the broking business arm under J M Financial Institutional Securities Pvt Ltd and
J M Financial Securities Pvt Ltd as well as the special situations fund business arm under
J M Financial Ventures Ltd has been merged with the investment banking business.
J M Financial plans to enter international markets for broking and investment banking
business. In that context, it has recently registered for a licence in Singapore.
Earnings Estimates Largely Maintained
FY13E
Particulars Unit Old New % change
Revenues (Rs mn) 9,476 9,676 2%
EBITDA (Rs mn) 4,548 5,080 12%
EBITDA margin % 48.0% 52.5% 450bps
PAT (Rs mn) 1,568 1,576 1%
PAT margin % 17% 16% -25bps
EPS Rs 2.1 2.1 0%
Source: CRISIL Research
Reasons for changes in estimates
Following the higher-than-expected revenue growth in FY12, we have raised our FY13
revenue estimate by 2% to Rs 9.7 bn. Given that the fortunes of the broking business are
linked to the markets, a weak market environment, incessant pressure on broking yields and
intense competition weigh heavily on J M Financials revenues in the broking business. We
expect the markets to remain subdued in the first half of FY13 but see some marginal
improvement in the second half of FY13. Hence, we expect the equity markets to deliver
single-digit returns this fiscal; however, we do not expect buoyancy (for instance - IPO deals)
in the markets to revive this fiscal. Hence, though JM Financial has a healthy investment
banking deal pipeline, deal execution has been a challenge. The market volumes will remain
impacted given the lack of clarity on GAAR, although it has been deferred. Further, the
competition is intensifying in the broking segment it is the survival of the fittest. Overall, we
maintain our PAT estimates for FY13.
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CRISIL IERIndependentEquityResearch
6
Valuation
We continue to value J M Financial based on the sum-of-the-parts method. Our fair value of Rs
36 per share value implies P/E multiples of 17.1x FY13E earnings. The valuation grade is 5/5.
One-year forward P/E band One-year forward P/B band
Source: NSE, CRISIL Research Source: NSE, CRISIL Research
P/E premium / discount to NIFTY P/E movement
Source: NSE, CRISIL Research Source: NSE, CRISIL Research
0
10
20
30
40
50
60
Sep-0
9
Nov-0
9
Jan-1
0
Apr-10
Jun-1
0
Sep-1
0
Nov-1
0
Jan-1
1
Apr-11
Jun-1
1
Sep-1
1
Nov-1
1
Jan-1
2
Apr-12
Jun-1
2
(Rs)
J M 8x 10x 12x 15x 19x
0
20
40
60
80
100
120
140
160
Apr-07
Jul-07
Nov-0
7
Feb-0
8
May-0
8
Sep-0
8
Dec-0
8
Apr-09
Jul-09
Nov-0
9
Feb-1
0
Jun-1
0
Sep-1
0
Jan-1
1
Apr-11
Aug-1
1
Nov-1
1
Mar-12
Jun-1
2
(Rs)
J M 0.5x 1.1x 1.5x 1.5x
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
Sep-0
9
Nov-0
9
Jan-1
0
Apr-10
Jun-1
0
Sep-1
0
Nov-1
0
Jan-1
1
Apr-11
Jun-1
1
Sep-1
1
Nov-1
1
Jan-1
2
Apr-12
Jun-1
2
Premium/Discount to NIFTY Median premium/discount to NIFTY
0
5
10
15
20
25
Sep-0
9
Nov-0
9
Jan-1
0
Apr-10
Jun-1
0
Sep-1
0
Nov-1
0
Jan-1
1
Apr-11
Jun-1
1
Sep-1
1
Nov-1
1
Jan-1
2
Apr-12
Jun-1
2
(Times)
1yr Fwd PE (x) Median PE
+1 std dev
-1 std dev
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MAKINGMARKETS
FUNCTION
BETTE
R
YEARSJM Financial Ltd
7
CRISIL IER reports released on JM Financial Ltd
Date Nature of report
Fundamental
grade Fair value
Valuation
grade
CMP
(on the date of report)
28-Dec-09 Initiating coverage 4/5 Rs 57 5/5 Rs 41
02-Feb-10 Q3FY10 result update 4/5 Rs 57 5/5 Rs 41
01-Jun-10 Q4FY10 result update 4/5 Rs 50 5/5 Rs 38
19-Aug-10 Q1FY11 result update 4/5 Rs 45 5/5 Rs 34
03-Nov-10 Q2FY11 result update 4/5 Rs 45 4/5 Rs 40
27-Jan-11 Detailed Report 4/5 Rs 45 5/5 Rs 22
21-Feb-11 Q3FY11 result update 4/5 Rs 45 5/5 Rs 25
14-Jun-11 Q4FY11 result update 4/5 Rs 42 5/5 Rs 24
04-Aug-11 Q1FY12 result update 4/5 Rs 42 5/5 Rs 22
08-Nov-11 Q2FY12 result update 4/5 Rs 33 5/5 Rs 19
24-Nov-11 Detailed Report 4/5 Rs 36 5/5 Rs 15
20-Feb-12 Q3FY12 result update 4/5 Rs 36 5/5 Rs 18
27-June-12 Q4FY12 result update 4/5 Rs 36 5/5 Rs 12
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CRISIL IERIndependentEquityResearch
8
Annexure: Consolidated Financials
#abridged financials
Note: FY12 financials are not strictly comparable with that of the previous years due to the
new format of disclosure under Schedule VI of the Companies Act
Source: CRISIL Research
Income statement Balance Sheet
(Rs mn) FY09 FY10 FY11 FY12# FY13E (Rs mn) FY09 FY10 FY11 FY12# FY13E
Operating income 4,644 5,751 8,478 8,642 9,676 Liabilities
EBITDA 1,446 2,098 4,472 4,785 5,080 Equity share capital 750 750 750 750 750EBITDA margin 31.1% 36.5% 52.7% 55.4% 52.5% Reserves 16,725 17,819 19,173 18,794 20,850
Depreciation 121 120 124 115 159 Minorities 1,244 1,271 1,272 1,403 1,403
EBIT 1,325 1,978 4,348 4,670 4,921 Net worth 18,719 19,840 21,194 20,947 23,002
Interest 604 606 2,437 2,942 2,807 Convertible debt - - - -
Operating PBT 721 1,372 1,911 1,728 2,114 Other debt 1,339 18,420 32,635 32,016 32,716
Other income 34 237 473 100 225 Total debt 1,339 18,420 32,635 32,016 32,716
Exceptional inc/(exp) (1,553) 409 (102) - - Deferred tax liability (net) 1,009 988 939 971 971
PBT (799) 2,019 2,283 1,828 2,339 Total liabilities 21,067 39,247 54,769 53,934 56,689
Tax provision 281 478 532 596 763 Assets
Minority interest (28) 24 5 20 - Net fixed assets 386 333 289 300 303
PAT (Reported) (1,052) 1,517 1,746 1,212 1,576 Capital WIP 24 12 10 - -
Less: Exceptionals (1,553) 409 (102) - - Total fixed assets 410 344 299 300 303
Adjusted PAT 501 1,107 1,847 1,212 1,576 Investments 4,107 4,944 8,554 5,198 5,198
Current assets
Ratios Inventory 789 7,462 12,536 7,596 8,788
FY09 FY10 FY11 FY12# FY13E Sundry debtors 428 1,143 1,115 1,579 1,990
Growth Loans and advances 8,891 17,654 24,233 27,585 29,917
Operating income (%) (44.2) 23.8 47.4 1.9 12.0 Cash & bank balance 5,246 4,854 10,751 13,700 14,006
EBITDA (%) (64.5) 45.1 113.2 7.0 6.2 Marketable securities 1,919 5,015 283 501 501
Adj PAT (%) NM NM 15.1 (30.6) 30.1 Total current assets 17,274 36,128 48,918 50,961 55,201
Adj EPS (%) NM NM 15.1 (30.6) 30.1 Total current liabilities 2,320 3,777 4,710 3,270 4,757
Net current assets 14,954 32,351 44,208 47,691 50,443
Profitability Intangibles/Misc. expenditure 1,597 1,608 1,708 745 745
EBITDA margin (%) 31.1 36.5 52.7 55.4 52.5 Total assets 21,067 39,247 54,769 53,934 56,689
Adj PAT Margin (%) (22.7) 26.4 20.6 14.0 16.3
RoE (%) (5.5) 7.9 8.5 5.8 7.2 Cash flow
RoCE (%) 5.3 6.8 9.4 8.7 9.1 (Rs mn) FY09 FY10 FY11 FY12# FY13E
RoIC (%) 8.6 10.1 15.1 12.5 13.1 Pre-tax profit 754 1,609 2,384 1,828 2,339
Total tax paid (409) (499) (580) (564) (763)
Valuations Depreciation 121 120 124 115 159
Price-earnings (x) NM 18.7 5.2 7.4 5.7 Working capital changes 3,905 (14,695) (10,691) (317) (2,447)Price-book (x) 0.8 1.4 0.4 0.4 0.4 Net cash from operations 4,372 (13,465) (8,762) 1,062 (711)
EV/EBITDA (x) 7.5 18.2 7.1 5.9 5.6 Cash from investm ents
EV/Sales (x) 2.4 7.0 4.1 3.3 3.2 Capital expenditure (661) (65) (179) 847 (162)
Dividend payout ratio (%) 29.9 33.8 24.4 37.1 31.7 Investments and others 2,871 (3,932) 1,122 3,138 -
Dividend yield (%) 1.0 1.3 5.0 5.0 5.6 Ne t cas h fr om inve stm ents 2,210 (3,998) 943 3,985 (162)
Cash from financing
B/S ratios Equity raised/(repaid) (1) - - 0 (0)
Inventory days NM NM NM NM NM Debt raised/(repaid) (8,895) 17,080 14,215 (619) 700
Creditors days NM NM NM NM NM Dividend (incl. tax) (176) (439) (525) (527) (585)
Debtor days NM NM NM NM NM Others (incl extraordinaries) (2,841) 838 (75) (953) 1,064
Working capital days NM NM NM NM NM Net cash from financing (11,913) 17,479 13,615 (2,098) 1,179
Gross asset turnover (x) 5.9 6.6 9.6 8.8 8.5 Change in cash position (3,778) (392) 5,898 2,949 306
Net asset turnover (x) 13.4 16.0 27.3 29.3 32.1 Closing cash 5,246 4,854 10,751 13,700 14,006
Sales/operating assets (x)
Current ratio (x) 7.4 9.6 10.4 15.6 11.6 Quarterly financials
Debt-equity (x) 0.1 0.9 1.5 1.5 1.4 (Rs mn) Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12
Net debt/equity (x) (0.3) 0.4 1.0 0.9 0.8 Net Sales 1,929 2,081 2,152 1,907 2,602
Interest coverage 2.2 3.3 1.8 1.6 1.8 Change (q-o-q) -30.2% 7.9% 3.4% -11.4% 36.5%
EBITDA 1,155 1,149 1,158 1,121 1,456
Per share Change (q-o-q) -32% -1% 1% -3% 30%
FY09 FY10 FY11 FY12# FY13E EBITDA margin 59.8% 55.2% 53.8% 58.8% 56.0%
Adj EPS (Rs) (1.4) 2.0 2.3 1.6 2.1 PAT 277 241 274 296 421
CEPS (1.2) 2.2 2.5 1.8 2.3 Adj PAT 281 244 273 287 408
Book value 25.0 26.5 28.3 27.9 30.7 Change (q-o-q) -53% -13% 12% 5% 42%
Dividend (Rs) 0.2 0.5 0.6 0.6 0.7 Adj PAT margin 14.6% 11.7% 12.7% 15.0% 15.7%
Actual o/s shares (mn) 750 750 750 750 750 Adj EPS 0.40 0.33 0.36 0.38 0.54
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MAKINGMARKETS
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CRISIL IERIndependentEquityResearch
CRISIL Research Team
President
Mukesh Agarwal CRISIL Research +91 22 3342 3035 [email protected]
Analytical Contacts
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Business Development
Siddharth Arora Director, Customised Research +91 22 3342 4133 [email protected]
Vinaya Dongre Director, Industry & Customised Research +91 22 3342 8025 [email protected]
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