Dec 16 Dec-15 Dec-14 Dec-13 Dec-12

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 187.99 187.95 187.95 187.95 187.95
Total Share Capital 187.99 187.95 187.95 187.95 187.95
Reserves and Surplus 8,473.45 8,255.09 8,047.66 7,636.89 7,194.85
Total Reserves and Surplus 8,473.45 8,255.09 8,047.66 7,636.89 7,194.85
Total Shareholders Funds 8,661.44 8,443.04 8,235.61 7,824.84 7,382.80
NON-CURRENT LIABILITIES
Long Term Borrowings 0 0 0 0 85.03
Deferred Tax Liabilities [Net] 558.14 469.16 535.57 507.27 516.92
Other Long Term Liabilities 0 0 0 406.75 381.09
Long Term Provisions 131.68 119.86 115.94 89.09 157.21
Total Non-Current Liabilities 689.82 589.02 651.51 1,003.11 1,140.25
CURRENT LIABILITIES
Short Term Borrowings 50.02 35.5 0 0 0
Trade Payables 1,256.93 874.11 750.23 639.2 660.49
Other Current Liabilities 2,173.11 2,259.82 2,096.71 1,545.69 1,515.81
Short Term Provisions 606.15 639.33 937.27 1,080.75 1,226.88
Total Current Liabilities 4,086.21 3,808.76 3,784.21 3,265.64 3,403.18
Total Capital And Liabilities 13,437.47 12,840.82 12,671.33 12,093.59 11,926.23
ASSETS
NON-CURRENT ASSETS
Tangible Assets 7,458.85 5,284.78 5,597.75 5,503.13 5,858.86
Intangible Assets 3.53 0.2 0.64 0.83 5.01
Capital Work-In-Progress 260.82 2,370.96 1,914.63 819.61 311.3
Fixed Assets 7,723.20 7,655.94 7,513.02 6,323.57 6,175.17
Non-Current Investments 235.94 274.55 290.9 176.81 194.67
Long Term Loans And Advances 962.78 1,073.38 855.56 866.83 564.2
Other Non-Current Assets 483.05 466.3 360.71 308.24 165.84
Total Non-Current Assets 9,404.97 9,470.17 9,020.19 7,675.45 7,099.88
CURRENT ASSETS
Current Investments 1,568.27 1,201.15 1,282.08 2,017.21 2,358.88
Inventories 1,223.75 1,188.60 1,255.59 1,121.47 1,133.55
Trade Receivables 467.73 484.35 410.71 397.22 303.45
Cash And Cash Equivalents 275.58 91.6 304.3 503.38 678.38
Short Term Loans And Advances 437.02 349.84 383.92 359.39 323.29
OtherCurrentAssets 60.15 55.11 14.54 19.47 28.8
Total Current Assets 4,032.50 3,370.65 3,651.14 4,418.14 4,826.35
Total Assets 13,437.47 12,840.82 12,671.33 12,093.59 11,926.23
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES, COMMITMENTS
Contingent Liabilities 3,012.35 3,457.09 2,410.62 3,296.75 1,715.30
CIF VALUE OF IMPORTS
Raw Materials 78.69 83.24 111.07 56.07 103
Stores, Spares And Loose Tools 40.66 32.3 52.92 53.65 107.5
Trade/Other Goods 239.73 351.75 512.02 209.44 402.52
Capital Goods 43.43 71.58 191.47 104.35 51
EXPENDITURE IN FOREIGN EXCHANGE
Expenditure In Foreign Currency 122.17 124.8 135.39 188.03 78.3
REMITTANCES IN FOREIGN CURRENCIES FOR DIVIDENDS
Dividend Remittance In Foreign Currency 0.92 1.63 1.84 1.63 1.52
EARNINGS IN FOREIGN EXCHANGE
FOB Value Of Goods - - - - -
Other Earnings 0.66 2.59 1.85 0.78 -
BONUS DETAILS
Bonus Equity Share Capital 91.95 91.95 91.95 91.95 91.95
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted Market Value 28.36 17.05 9.63 5.79 9.53
Non-Current Investments Unquoted Book Value 230.15 268.76 285.11 171.02 171.02
CURRENT INVESTMENTS
Current Investments Quoted Market Value - - - - -
Current Investments Unquoted Book Value 1,568.27 1,201.15 1,282.08 2,017.21 2,358.88

Source : Dion Global Solutions Limited

 2012 2013 2014 2015
Tang. Assets -355.73 94.62 -312.97
Add: Cap. WIP 508.31 1,095.02 456.33
Add: Dep. 573.95 557.58 652.06
Capex 726.53 1,747.22 795.42
As % of Sales 6.66% 15.22% 6.96%
Average 8.74%

Opening Inv. 1,133.55 1,121.47 1,255.59

Materials Cons. 3,987.78 4,003.82 4,230.13 4,133.83
Closing Inv. 1,133.55 1,121.47 1,255.59 1,188.60
Purchase of S-I-T 232.86 194.33 108.29
COGS 4,248.76 4,290.34 4,309.11

OCA 28.8 19.47 14.54 55.11

Sales 11,130.45 10,908.41 11,481.05 11,432.76
OCA as % of Sales 0.26% 0.18% 0.13% 0.48%
Average 0.32%

OCL 1,515.81 1,545.69 2,096.71 2,259.82

OCL as % of Sales 13.62% 14.17% 18.26% 19.77%
Average 17.14%
 2016
2,174.07
-2,110.14
605.16
669.09
6.12%

1,188.60
3,744.36
1,223.75
90.17
3,799.38

60.15
10,936.41
0.55%

2,173.11
19.87%
 Dec 16 Dec-15 Dec-14 Dec-13 Dec-12

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME
Revenue From Operations [Gross] 12,465.79 12,876.64 12,851.02 12,230.54 12,411.93
Less: Excise/Sevice Tax/Other Levies 1,529.38 1,443.88 1,369.97 1,322.13 1,281.48
Revenue From Operations [Net] 10,936.41 11,432.76 11,481.05 10,908.41 11,130.45
Other Operating Revenues 221.93 364.07 257.16 260.53 227.51
Total Operating Revenues 11,158.34 11,796.83 11,738.21 11,168.94 11,357.96
Other Income 112.71 119.35 268.28 223.79 264.82
Total Revenue 11,271.05 11,916.18 12,006.49 11,392.73 11,622.78
EXPENSES
Cost Of Materials Consumed 3,744.36 4,133.83 4,230.13 4,003.82 3,987.78
Purchase Of Stock-In Trade 90.17 108.29 194.33 232.86 158.75
Changes In Inventories Of FG,WIP And Stock-In Trade 16.99 0.05 -11.28 6.53 20.02
Employee Benefit Expenses 778.31 769.87 746.59 661.68 616.65
Finance Costs 72.87 67.32 82.76 51.67 114.65
Depreciation And Amortisation Expenses 605.16 652.06 557.58 573.95 558.88
Other Expenses 5,117.47 5,256.94 5,088.84 4,635.26 4,379.18
Less: Inter Unit / Segment / Division Transfer 5.96 9.32 17.66 0 0
Total Expenses 10,419.37 10,979.04 10,871.29 10,165.77 9,835.91
Dec-16 Dec-15 Dec-14 Dec-13 Dec-12
12 mths 12 mths 12 mths 12 mths 12 mths

Profit/Loss Before Exceptional, ExtraOrdinary Items And T 851.68 937.14 1,135.20 1,226.96 1,786.87
Exceptional Items -42.81 -153.17 0 0 -335.38
Profit/Loss Before Tax 808.87 783.97 1,135.20 1,226.96 1,451.49
Tax Expenses-Continued Operations
Current Tax 235.04 258.81 262.24 363.05 439.16
Less: MAT Credit Entitlement 117.55 0 0 0 0
Deferred Tax 88.98 -66.41 13.9 -15.11 -74.09
Tax For Earlier Years 0 0 -309.23 -216.74 25.23
Total Tax Expenses 206.47 192.4 -33.09 131.2 390.3
Profit/Loss After Tax And Before ExtraOrdinary Items 602.4 591.57 1,168.29 1,095.76 1,061.19
Profit/Loss From Continuing Operations 602.4 591.57 1,168.29 1,095.76 1,061.19
Profit/Loss For The Period 602.4 591.57 1,168.29 1,095.76 1,061.19
Dec-16 Dec-15 Dec-14 Dec-13 Dec-12

12 mths 12 mths 12 mths 12 mths 12 mths

OTHER ADDITIONAL INFORMATION

EARNINGS PER SHARE
Basic EPS (Rs.) 32.08 31.51 62.23 58.36 56.52
Diluted EPS (Rs.) 32 31.43 62.06 58.23 56.38
VALUE OF IMPORTED AND INDIGENIOUS RAW MATERIALS
22 43 61.26 134.89 85.84 165.74
Indigenous Raw Materials 1,544.26 1,678.52 1,653.42 1,535.64 1,439.78
STORES, SPARES AND LOOSE TOOLS
Imported Stores And Spares 48.29 42.27 44.4 42.25 53.81
Indigenous Stores And Spares 341.3 335.72 317.59 339.04 301.06
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 319.24 319.17 638.34 563.24 563.24
Tax On Dividend 64.99 64.97 119.18 95.72 91.37
Equity Dividend Rate (%) 170 170 340 300 300

Source : Dion Global Solutions Limited

Cash Flow of ACC ------------------- in Rs. Cr. -------------------
Dec 16 Dec-15 Dec-14 Mar-05 Mar-04

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit/Loss Before Extraordinary Ite 808.87 783.97 1,135.20 444.62 264.16
Net CashFlow From Operating Activities 1,380.12 1,461.24 1,331.70 597.98 478.29
Net Cash Used In Investing Activities -539.1 -948.17 -1,436.69 -518.59 -415.45
Net Cash Used From Financing Activities -421.17 -681.02 -837.09 -87.04 -58.15
Net Inc/Dec In Cash And Cash Equivalent 419.85 -167.95 -942.08 -7.65 4.69
Cash And Cash Equivalents Begin of Year 1,389.04 1,556.99 2,499.07 64.97 34.82
Cash And Cash Equivalents End Of Year 1,808.89 1,389.04 1,556.99 57.32 39.51
in INR million 2016 2015 2014 2013 2012

Net Sales 10,936.41 11,432.76 11,481.05 10,908.41 11,130.45

% Growth -4.3% -0.4% 5.2% -2.0%
Operating Expenses 10,419.37 10,979.04 10,871.29 10,165.77 9,835.91
EBITDA 517 454 610 743 1295

D&A 605.16 652.06 557.58 573.95 558.88

EBIT -88 -198 52 169 736

Finance costs 72.87 67.32 82.76 51.67 114.65

Other Income 112.71 119.35 268.28 223.79 264.82
Other Expenses 5,117.47 5,256.94 5,088.84 4,635.26 4,379.18
PBT -5166 -146 238 341 886
Tax rate % 30.3% 30.3% 30.3% 30.3% 30.3%
Tax 0 0 72 103 268
PAT -5166 -146 166 238 617
 2016 2017E 2018E 2019E 2020E 2021E 2022E
Net Sales 10,936 11155.14 11601.34 12297.42 13035.27 13817.39 14646.43
% Growth -4.3% 2% 4% 6% 6% 6% 6%
EBITDA 517.04 468.52 498.86 553.38 586.59 635.60 688.38
% Margin 4.73% 4.20% 4.30% 4.50% 4.50% 4.60% 4.70%
Depreciation & Amortization 605 848.24 865.64 889.93 919.79 955.20 984.39
% of Sales 5.5% 7.6% 7.5% 7.2% 7.1% 6.9% 6.7%
% of CapEx 90.45% 88.42% 84.79% 80.41% 77.54% 75.14% 79.07%
EBIT -88.12 -379.72 -366.78 -336.55 -333.20 -319.60 -296.01
% Margin -0.8% -3.4% -3.2% -2.7% -2.6% -2.3% -2.0%
Tax Rate 30.3% 30.3% 30.3% 30.3% 30.3% 30.3% 30.3%
NOPAT -61.42 -264.67 -255.64 -234.57 -232.24 -222.76 -206.32

Depreciation & Amortization 605 848.24 865.64 889.93 919.79 955.20 984.39
% of Sales 5.5% 7.6% 7.5% 7.2% 7.1% 6.9% 6.7%

Change in Net Working Capital 245.55 -57.31 -89.41 -94.78 -100.46 -106.49
Working Capital (1,678) (1,433) (1,490) (1,580) (1,674) (1,775) (1,881)
% of Sales -15.3% -12.8% -12.8% -12.8% -12.8% -12.8% -12.8%

Capital Expenditures 669 959.34 1020.92 1106.77 1186.21 1271.20 1244.95

% of Sales 6.12% 8.60% 8.80% 9.00% 9.10% 9.20% 8.50%
Unlevered Free Cash Flow -621.32 -353.61 -362.00 -403.89 -438.30 -360.38

Year 1 2 3 4 5 6
Discount Factor 0.857898 0.735989 0.631403 0.541679 0.464705 0.39867
NPV of Unlevered Free Cash Flow -533.03 -260.25 -228.57 -218.78 -203.68 -143.67
2023E 2024E 2025E 2026E
15085.82 15387.54 15695.29 16009.2
3% 2% 2% 2%
709.03 738.60 753.37 784.45
4.70% 4.80% 4.80% 4.90%
1012.89 1039.52 1064.46 1089.48
6.7% 6.8% 6.8% 6.8%
79.93% 81.39% 82.71% 82.99%
-303.86 -300.92 -311.08 -305.02
-2.0% -2.0% -2.0% -1.9%
30.3% 30.3% 30.3% 30.3%
-211.79 -209.74 -216.82 -212.60

1012.89 1039.52 1064.46 1089.48

6.7% 6.8% 6.8% 6.8%

-56.44 -38.76 -39.53 -40.32

(1,938) (1,977) (2,016) (2,056)
-12.8% -12.8% -12.8% -12.8%

1267.21 1277.17 1287.01 1312.75

8.40% 8.30% 8.20% 8.20%
-409.67 -408.63 -399.85 -395.56

7 8 9 10
0.342018 0.293416 0.251721 0.215951
-140.11 -119.90 -100.65 -85.42

Terminal Value -2771.1

 Perpetuity Growth Rate Analysis
Perpetuity Growth Rate (g) 2.0%
Weighted Average Cost of Capital (WACC) 16.56%

Implied Terminal Value -2,771

Implied EBITDA Exit Multiple -3.5x

Net Present Value of Terminal Value -598.42

as a % of EV 22.7%
Net Present Value of FCFs -2,034
as a % of EV 77.3%
Implied Enterprise Value (INR Cr.) -2,632

Less : Debt (INR m ) 0

Add : Cash & Cash Equivalents (INR Cr. ) 1,808.89
Total Value to Shareholders ( INR Cr. ) -824
Number of shares outstanding (in crore) 18.77
Target Price per share -44
 2012 2013 2014 2015 2016
Tang. Assets -355.73 94.62 -312.97 2174.07
Add: Cap. WIP 508.31 1095.02 456.33 -2110.14
Add: Dep. 573.95 557.58 652.06 605.16
Capex 726.53 1747.22 795.42 669.09
As % of Sales 0.066603 0.152183 0.069574 0.06118
Average 0.087385

Opening Inv. 1133.55 1121.47 1255.59 1188.6

Materials Cons. 3987.78 4003.82 4230.13 4133.83 3744.36
Closing Inv. 1133.55 1121.47 1255.59 1188.6 1223.75
Purchase of S-I-T 232.86 194.33 108.29 90.17
COGS 4248.76 4290.34 4309.11 3799.38

OCA 28.8 19.47 14.54 55.11 60.15

Sales 11130.45 10908.41 11481.05 11432.76 10936.41
OCA as % of Sales 0.002587 0.001785 0.001266 0.00482 0.0055
Average 0.003192

OCL 1515.81 1545.69 2096.71 2259.82 2173.11

OCL as % of Sales 0.136186 0.141697 0.182624 0.197662 0.198704
Average 0.171374
(values in Rs. Crores)

Depreciation Schedule

Property, Plant and Equipment

Year 2016 2015 2014 2013 2012
Depreciation 605.16 652.06 557.58 573.95 558.88
PPE 7,458.85 5,284.78 5,597.75 5,503.13 5,858.86
As a % of sales 8.1% 12.3% 10.0% 10.4% 9.5%

Average 10.1%

Depreciation
Year 2016 2017E 2018E 2019E 2020E
Opening Balance 7,458.85 7,569.96 7,725.24 7,942.07
Add: Capex 959 1021 1107 1186
Less: Depreciation 848.24 865.64 889.93 919.79
Closing Balance 7,458.85 7,569.96 7,725.24 7,942.07 8,208.50

Capital Expenditure (Capex) Sch

2012 2013 2014 2015 2016

Tang. Assets -355.73 94.62 -312.97 2174.07
Add: Cap. WIP 508.31 1095.02 456.33 -2110.14
Add: Dep. 573.95 557.58 652.06 605.16
Capex 726.53 1747.22 795.42 669.09
As % of Sales 6.66% 15.22% 6.96% 6.12%
Average 8.74%

Year 2016 2017E 2018E 2019E 2020E

Sales 10936 11155 11601 12297 13035
Capex as % of sales 8.74% 8.60% 8.80% 9.00% 9.10%
Amount of Capex 955.84 959.34 1020.92 1106.77 1186.21

Total Dep. 848.24 865.64 889.93 919.79

Total Capex 959.34 1020.92 1106.77 1186.21
Capex as % of sales 8.60% 8.80% 9.00% 9.10%
Dep. As % of sales 7.60% 7.46% 7.24% 7.06%
Dep. As % of Capex 88.42% 84.79% 80.41% 77.54%

Working capital schedule

Years 2016 2017E 2018E 2019E 2020E

Net Working Capital -1678.41 -1432.86 -1490.17 -1579.58 -1674.36
Change in WC 245.55 -57.31 -89.41 -94.78
1. ACCOUNTS RECEVIABLE
Years 2016 2017E 2018E 2019E 2020E
Balance of AR 467.73 477.08 496.17 525.94 557.49
Sales 10936.41 11155.14 11601.34 12297.42 13035.27
Debtors Turnover Ratio 23.38 23.38 23.38 23.38 23.38
Days of Sales Outstanding 15.61 15.61 15.61 15.61 15.61

2.INVENTORIES
Years 2016 2017E 2018E 2019E 2020E
Balance of Inventories 1,223.75 1,248.23 1,298.15 1,376.04 1,458.61
Cost of goods sold 3,799.38 3,875.37 4,030.38 4,272.21 4,528.54
Inventory Turnover Ratio 3.10 3.10 3.10 3.10 3.10
Days of Inventory Outstanding 117.56 117.56 117.56 117.56 117.56

3. OTHER CURRENT ASSETS

Years 2016 2017E 2018E 2019E 2020E
Balance of OCA 60.15 35.61 37.03 39.25 41.61
Sales 10936.41 11155.14 11601.34 12297.42 13035.27
As a % of sales 0.55% 0.32% 0.32% 0.32% 0.32%

4. ACCOUNTS PAYABLE
Years 2016 2017E 2018E 2019E 2020E
Balance of AP 1,256.93 1,282.07 1,333.35 1,413.35 1,498.15
Cost of goods sold 3,799.38 3,875.37 4,030.38 4,272.21 4,528.54
Payables Turnover Ratio 3.02 3.02 3.02 3.02 3.02
Days of Payables Outstanding 120.75 120.75 120.75 120.75 120.75

5. OTHER CURRENT LIABILITIES 2016 2017E 2018E 2019E 2020E

Balance of OCL 2,173.11 1,911.71 1,988.17 2,107.46 2,233.91
Sales 10,936.41 11,155.14 11,601.34 12,297.42 13,035.27
As a % of sales 19.87 0.17 0.17 0.17 0.17
 Depreciation Schedule

2021E 2022E 2023E 2024E 2025E 2026E

8,208.50 8,524.50 8,785.06 9,039.38 9,277.02 9,499.58
1271 1245 1267 1277 1287 1313
955.20 984.39 1012.89 1039.52 1064.46 1089.48
8,524.50 8,785.06 9,039.38 9,277.02 9,499.58 9,722.86

Capital Expenditure (Capex) Schedule

2021E 2022E 2023E 2024E 2025E 2026E

13817 14646 15086 15388 15695 16009
9.20% 8.50% 8.40% 8.30% 8.20% 8.20%
1271.20 1244.95 1267.21 1277.17 1287.01 1312.75

955.20 984.39 1012.89 1039.52 1064.46 1089.48

1271.20 1244.95 1267.21 1277.17 1287.01 1312.75
9.20% 8.50% 8.40% 8.30% 8.20% 8.20%
6.91% 6.72% 6.71% 6.76% 6.78% 6.81%
75.14% 79.07% 79.93% 81.39% 82.71% 82.99%

Working capital schedule

2021E 2022E 2023E 2024E 2025E 2026E

-1774.82 -1881.31 -1937.75 -1976.51 -2016.04 -2056.36
-100.46 -106.49 -56.44 -38.76 -39.53 -40.32
 2021E 2022E 2023E 2024E 2025E 2026E
590.94 626.40 645.19 658.10 671.26 684.68
13817.39 14646.43 15085.82 15387.54 15695.29 16009.20
23.38 23.38 23.38 23.38 23.38 23.38
15.61 15.61 15.61 15.61 15.61 15.61

2021E 2022E 2023E 2024E 2025E 2026E

1,546.12 1,638.89 1,688.06 1,721.82 1,756.25 1,791.38
4,800.25 5,088.26 5,240.91 5,345.73 5,452.65 5,561.70
3.10 3.10 3.10 3.10 3.10 3.10
117.56 117.56 117.56 117.56 117.56 117.56

2021E 2022E 2023E 2024E 2025E 2026E

44.10 46.75 48.15 49.11 50.10 51.10
13817.39 14646.43 15085.82 15387.54 15695.29 16009.20
0.32% 0.32% 0.32% 0.32% 0.32% 0.32%

2021E 2022E 2023E 2024E 2025E 2026E

1,588.04 1,683.33 1,733.83 1,768.50 1,803.87 1,839.95
4,800.25 5,088.26 5,240.91 5,345.73 5,452.65 5,561.70
3.02 3.02 3.02 3.02 3.02 3.02
120.75 120.75 120.75 120.75 120.75 120.75

2021E 2022E 2023E 2024E 2025E 2026E

2,367.95 2,510.02 2,585.33 2,637.03 2,689.77 2,743.57
13,817.39 14,646.43 15,085.82 15,387.54 15,695.29 16,009.20
0.17 0.17 0.17 0.17 0.17 0.17
Enterprise Value

Market Capitalization 33180 (Oct. 14'17 - Moneycontrol)

Debt 0
Cash & Equivalents 1,808.89

EV 31,371.11

CAPM

Rf 6.70%
Rm 13.90%
Beta 1.37
Re (WACC) 16.56%

Since, the firm is debt-free, Re = WACC

1. Estimated growth rate for the cement industry for FY 2017-18 by CARE Ratings is 1-2%. However, with focus on Housing for a
2/3 consumption of total production) and simultaneous initiatives in infrastructure developments make us assume a positive o
taken 4-6% followed by a minimal growth rate of 2% as a perpetuity growth rate.

2. EBITDA margins are expected to maintain current levels with little deviations

3. COGS = Opening Inventory + Materials Consumed + Purchase of Stock in Transit - Closing Inventory. It is also expected to gro

4. Net Working Capital = Current Assets - Current Liabilities

5. CapEx = Change in amount of Tangible Assets + Change in amount of Capital WIP + Depreciation for the year. The firm is exp
expected to decrease/maintain the capex subsequently.
ever, with focus on Housing for all agenda by the govt. (housing sector is also the biggest consumer of cement with
nts make us assume a positive outlook for the industry. Hence, the expected growth rate between 2018 and 2022 is

entory. It is also expected to grow vis-à-vis sales at same growth rate.

tion for the year. The firm is expected to increase its capex for next 4-5 years on account of new opportunities and is