A. K. Stockmart Pvt. Ltd.

Lanco Infratech Ltd CMP Rs. 50

“Upcoming power capacities to fuel growth” Target Price Rs. 73
INITIATING COVERAGE REPORT Potential Upside 46%

BUY
Significant power capacity coming up

BSE 532778 Lanco Infratech Ltd (LITL) has an installed capacity of 2,087 MW as at the
end of September 2010. The company is targeting an ambitious growth plan
NSE LITL
of 9,159 MW by the end of FY2014. The majority projects executed by LITL
Reuters LAIN.BO
are operating under partial or complete pass through mechanism, which
Bloomberg LANCI IN limits the downside on account of increasing fuel price.
Infra & Power
Industry
(Generation)
Fuel security achieved, Griffin Coal buyout an added advantage
Market Cap (Rs. Bn) 119.3 LITL’s entire power projects have fuel linkage by allocation of captive coal
Equity (Rs. Bn) 2.4 mines by Govt. of India (except Udipi). However, there is news about Coal
Face Value (Rs.) 1 India Ltd increasing the prices of coal as too much demand chasing limited
52WkH/L 74.8/40.5
supplies. In such circumstances, LITL went one step ahead for the fuel
security by acquiring 100% stake in Australia based Griffin Coal for AUD 750
Sensex 18328
million.
Nifty 5506
Received financial closure for almost all of its upcoming projects:
Shareholding Pattern The key differentiating factor of LITL as compared to its other counterparts is
that it has been bale to achieve financial closure for all of its up-coming
plants, whether Thermal or Hydro. This is a significant development as other
2%
7%
major players are struggling for land acquisition. For Boiler-Turbine-Generator
(BTG), LITL has placed orders to Harbin Power (China).

23% EPC Division gaining momentum

The EPC vertical for LITL has transformed gradually from executing only
government contracts in the initial years to now executing civil construction
68% and EPC for in-house projects. With an order backlog of Rs305 billion, the
current order book to FY2010 (standalone) revenues ratio stands at 5.2x.

Valuation
Promoter & group (Indian & Foreign) LITL is supposed to be one of the best bet in the power generation space
Non Promoter (Institution) with very low dependence on imported coal, domestic allocation of coal in
Non Promoter (Non Institution)
Public & Others
place, financial closure achieved for almost all of its up-coming project and
power offtake agreements in place.
LITL v/s NIFTY
We have used Sum-Of-The-Parts (SOTP) based approach as LITL has interests
1.80 in many verticals such as Power, EPC, Road, Realty and Mining. SOTP is a
1.60 blend of DCF, P/E multiple and Book Value. The SOTP based valuation
1.40
generates target price of Rs73/share.
1.20

1.00
(Power: Rs46, EPC: Rs18, Road Project: Rs3, Others (Property, Coal Mine,
0.80
Power Trading): Rs6)
0.60

0.40
Nov-10
Aug-10
Apr-10

Jul-10
Mar-10

Jan-11
Feb-10

May-10

Sep-10
Jun-10

Oct-10

Dec-10

LITL NIFTY

Net y-o-y EBITDA y-o-y Debt/Equity

(INR million) EBITDA Adj PAT EPS (FD) ROE (%) RoCE (%) P/B (x)
Revenue (%) (%) (%) (x)
FY2010A 80,320.25 33.7% 14,515.00 18.1% 4,763.46 63.6% 2.10 17% 11% 3.39 2.56
FY2011E 120,502.82 50.0% 31,434.99 26.1% 7,682.81 61.3% 3.22 21% 14% 2.90 3.66
FY2012E 173,752.64 44.2% 43,932.91 25.3% 10,939.22 42.4% 4.59 23% 13% 2.29 4.10
FY2013E 223,439.13 28.6% 53,697.42 24.0% 13,824.35 26.4% 5.80 23% 13% 1.81 3.92

1 01st February 2011

 About the company:

Lanco Infratech Ltd., incorporated in 1993, is an integrated infrastructure

development company in India with presence in key areas like EPC & Construction,
Power generation and trading, Roads and Highways and Property Development.
The company is operating from 20 States in India which provides it pan India
presence.
LITL has strategic global partnership with top-notch companies which include: OHL
of Spain, Westports and Genting of Malaysia, Harbin, GE, Dongfang, Doosan etc.

Division of Lanco InfraTech

Lanco InfraTech

Special Purpose Vehicles

Construction & Property

Power Infrastructure
EPC Development

Source: Company, AKS Research

Construction and EPC business is directly carried out by the company whereas all
other businesses are operated through the subsidiaries involved in the Power,
Infrastructure and Property development businesses.

Revenue Contribution by Segment

Revenue Mix FY2010 EBIT (before gain and loss on FE
Fluctuation)
Others, Property
Develop Property Others ,
1%
met, 0% Develop -2%
met, -3%

Power,
37% Power,
36%

EPC & EPC &

Constru Constru
ction, ction,
62% 59%

Source: Company, AKS Research

EPC and Construction has the largest share in company’s consolidated revenues
and PBIT followed by Power business.

Power Business
Lanco is one of the leading private sector power developers in India with a
portfolio of 9,159 MW of power with 2,087 MW under operation, 7,072 MW under
construction. Of the total portfolio of 9,159MW capacity, 79% is on coal, 15% on gas
and the rest 6% on hydro.
Today, Lanco is also one of India's largest Power Traders in the private sector. It has
traded 4,269mm units in year ended March 31, 2010. It is also Holding 5% stake in
the Indian Energy Exchange floated by Financial Technologies Ltd and Power
Trading Corporation.

2 01st February 2011

 Construction and EPC business
Company provides integrated EPC and construction services in the infrastructure
sector having expertise in power plants based on Gas, Coal, Bio-mass and Hydro,
Irrigation and water supply projects, Civil construction and Transportation
engineering projects including roads, highways, bridges and flyovers.

Infrastructure Business
Company has forayed into selective infrastructure projects to leverage its EPC
expertise. Company has been awarded various projects like The Varanasi Airport
Project, two road projects in the state of Karnataka having a combined length of
approx. 160 km.

Property Development business

Company’s property development business is at nascent stage. Currently
company is building an integrated IT park - Lanco Hills- in Hyderabad. Lanco Hills is
spread over 100 acres and comprises residential space, office space, IT SEZ,
shopping mall and two hotels.

3 01st February 2011

 Investment Rationale:

Significant power capacity coming up

LITL has an installed capacity of 2,087 MW as at the end of September 2010. The
company is targeting an ambitious growth plan of 9,159 MW by the end of FY2014.
The majority projects executed by LITL are operating under partial or complete
pass through mechanism, which limits the downside on account of increasing fuel
price. At the end of FY2011, we expect only around 25% of the entire capacity to
remain on merchant (666 MW i.e., Amarkantak I and Kondapalli II).
Up-coming power Capacities
FY14
Babandh I
Amarkantak III & IV
Vidarbha
Teesta
FY13
Kondapalli III
FY12 9,159 MW
Green
Anpara
4,699 MW
Current FY11
Kondapalli I & II Udupi II 3,957 MW
Udupi I Vamshi Industrial
Amarkrantak I & II
Aban
Chitradurga 2,687 MW
Tamil Nadu Wind
Vamshi Hydro
Vamshi Industrial

1,349 MW

Source: Company, AKS Research

Prudent mix of power take-off
100%
25% 17% 22%
80% 40% 33% 35%

60%

40% 75% 83% 78%

60% 67% 65%
20%

0%
FY2010 FY2011E FY2012E FY2013E FY2014E FY2015E
PPA Merchant

Source: Company, AKS Research

Received financial closure for almost all of its upcoming projects:
The key differentiating factor of LITL as compared to its other counterparts is that it
has been bale to achieve financial closure for all of its up-coming plants, whether
Thermal or Hydro. The latest to achieve financial closures are:

Project Fuel Financial Closure Status Date

Kondapalli (unit III) Thermal Achieved 11/1/2011
Vidarbha Thermal Achieved 20/12/2012
Amarkantak (unit III & IV) Thermal Achieved 20/10/2010
Babandh Thermal Achieved 9/9/2010
Source: Company, AKS Research
This is a significant development as other major players are struggling for land
acquisition, LITL has managed to get financial closure, which means that the delay

4 01st February 2011

 on commissioning of the power plant will be minimal, only the construction delays
which can be around 3-4 months.
For Boiler-Turbine-Generator (BTG), LITL has placed orders to Harbin Power (China).
However there is little visibility on pricing of the order, according to media reports
which indicates that the BTG order may have been placed at about Rs6.8 million
per MW against the market price ranging between Rs25 - 30 million per MW. If
these media reports are to be believed then, LITL’s fixed costs could potentially
reduce by around 50%.
Fuel security achieved, Griffin Coal buyout an added advantage
LITL’s entire power projects have fuel linkage by allocation of captive coal mines
by Govt. of India (except Udipi). However, there is news about Coal India Ltd
increasing the prices of coal as too much demand chasing limited supplies. In such
circumstances, LITL went one step ahead for the fuel security by acquiring 100%
stake in Australia based Griffin Coal for AUD 750 million, which values griffin coal
resources at AUD 0.6 per tonne and recoverable reserves at AUD 2.4 per tonne.
Source of fuel and pass through of fuel cost
Plant Capacity (in MW) Source of Fuel Pass Through Arrangement
Kondapalli I 368 RIL (KG Basin) + GAIL Yes
Kondapalli II 366 RIL (KG Basin) Yes
Kondapalli III 732 RIL (KG Basin) No
Amarkantak I 300 South Eastern Coal Fields No
Amarkantak II 300 South Eastern Coal Fields Yes
Amarkantak III 300 South Eastern Coal Fields Yes
Amarkantak IV 300 South Eastern Coal Fields No
Udipi I & II 1,200 Imported Coal Yes
Anpara 1,200 Coal Linkage Obtained Yes
Babandh I & II 1,320 Talcher Coal Field Yes
Aban 1,320 GAIL Yes
Vidarbha 1,320 Coal Linkage Obtained Yes
Source: Company, AKS Research

By this acquisition, LITL gets ownership of total resources of 1.1 billion tones and
recoverable reserves of 310 million tonnes. Current production at the mine is 4.5
million tonnes p.a (mtpa), out of which Griffin Coal is committed to supply around 3
mtpa to local market (around 2 mtpa to group’s power plant and balance to
other local entities) at AUD 40 per tonne. LITL plans a capex of AUD 900 million,
which will increase the output to 15 – 16 mtpa by CY2020. The initial target would
be to increase the production to the level of 7.75 mtpa by the end of CY2014. This
capex will also include the company’s intentions to develop facilities at the
relatively closer Bunbury port, which is just at the distance of 85 Kms from the mines.
This acquisition will have a debt equity mix of 70:30 and the amount will be paid in
3 installments i.e. one upfront payment and balance two in coming 4 years. LITL
has not taken over the debt in the books of Griffin Coal.
Capacity by Fuel Source
FY2010 FY2012 FY2015

Hydro, Wind, Hydro, Hydro,

1.11% 0.96% 2% 6%

Gas, Gas,
22% 15%
Coal,
44.5%

Gas,
53%
Coal, Coal,
76% 79%

Source: Company, AKS Research

5 01st February 2011

 EPC Division gaining momentum
The EPC vertical for LITL has transformed gradually from executing only government
contracts in the initial years to now executing civil construction and EPC for in-
house projects. With an order backlog of Rs305 billion, the current order book to
FY2010 (standalone) revenues ratio stands at 5.2x. The EPC division is able to
provide revenue visibility for next at least 4 years.

Order Backlog as on January 2010

Power Projects (in INR Million)
Vidarbha 56,760
Babandh 54,550
Amarkantak 51,261
Kondapalli 19,407
Lanco Teesta 15,410
Koradi 11,890
Anpara 6,625
Udipi 4,157
Others 7,391
Moser Baer Projects Pvt Ltd 41,000
Total Power Projects order backlog 268,451

Building Projects 17,319

Road Projects 11,879
Water Pipeline and Irrigation Projects 4,227
Transmission Line Projects 2,946
Chimneys 433
Total Order Backlog 305,255
Source: Company, AKS Research
Majority of the above order backlog is internal, however, LITL recently received few
big tickets 3rd party orders, which we believe will expand its capabilities to take
contracts from external clients and will help LITL to further strengthen our foothold in
the space.

Few latest 3rd Party orders:

Rs41,000 - million order from a subsidiary of Moser Baer Projects to execute a
1,200-MW power project. The scope of work includes completion of the main
plant, including civil and structural works on engineering, procurement and
construction basis.
Rs11,890 - million order from Maharashtra State Power Generation Co Ltd
(Mahagenco) for Balance of Plant (BOP) package for three new units of 660
MW, each being set up for Mahagenco's Koradi thermal power plant near
Nagpur. The scope of work includes supply, civil work and services including
coal handling, ash handling, de-mineralised water plant, cooling towers, fuel oil
handling, compressed air system and water treatment.

Orderbacklog (in INR Million)

300000
257,137 247,961 254,254
250000
209,024
200000
147,113
150000
94,670
100000

50000

0
Q1FY2010 Q2FY2010 Q3FY2010 Q4FY2010 Q1FY2011 Q2FY2011

Source: Company, AKS Research

6 01st February 2011

 Financials
We estimate consolidated revenues to be Rs224 billion by FY13E, implying a CAGR
of 40% in FY2010-FY2013E. Likewise, the consolidated net profit after minority interest/
associates at Rs14 billion in FY2013E implies a CAGR of 45% in FY2010-FY2013E.
FY2010 FY2011E FY2012E FY2013E
Revenue (in INR Million) 80,320.25 120,777.36 173,821.34 223,698.76
y-o-y (%) 33.7 50.4 43.9 28.7
EBITDA 14,515.00 31,709.53 44,001.62 54,013.53
EBITDA (%) 18.1 26.3 25.3 24.1
PAT 4,585.49 7,855.94 10,982.55 14,023.67
PAT (%) 5.7 6.5 6.3 6.3
Source: Company, AKS Research

Revenue Contribution by Power Segment EBITDA Contribution by Power Segment

150,000 43% 50% 40,000 80%
45% 74% 65%
42% 35,000 70%
40% 67%
(in INR Million)

37% 30,000 60%

(in INR Million)

100,000 25,000 50%
30%
20,000 40% 40%
20% 15,000 30%
50,000
10,000 20%
10%
5,000 10%
- 0% - 0%
FY2010 FY2011E FY2012E FY2013E FY2010 FY2011E FY2012E FY2013E
Power EPC & Others Revenue contribution by Power Power EPC & Others EBITDA contribution by Power

Source: Company, AKS Research

RoE and RoCE Trend Cash Flow (CF) Chart

25% 80,000
24% 60,000
23% 40,000
20% 17% 21%
(in INR Million)

20,000
-
15% 13%
14% 13% (20,000)
(40,000)
10% 11%
(60,000) FY2010 FY2011E FY2012E FY2013E
(80,000)
5% (100,000)
FY2010 FY2011E FY2012E FY2013E (120,000)
RoE RoCE CF from Operations CF from Investing CF from Financing

Source: Company, AKS Research

Increased leveraging might lead to equity expansion
In FY2010, LITL had a debt to equity of 2.6x. According to our estimates, LITL’s debt
to rise to Rs147,920 million by end-FY2011E (including Anpara and Udupi debt)
implying a debt to equity of 3.7x. With already an incremental capex requirement
of Rs163,626 million over the next three years, we believe that the acquisition (of
Griffin Coal) would further strain the balance sheet as it would involve an
additional debt of around Rs24,000 million (assuming a 70:30 debt equity) followed
by capacity augmentation capex of AUD 900 million. The management has
already indicated to come out with an IPO for its power business.

5.0

4.0

3.0 4.1 3.9

3.7
2.0 2.7 2.6
1.0 1.7

0.0
Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14
Source: Company, AKS Research

7 01st February 2011

 Key Concerns

Delay in execution of projects

The company is executing a massive order book of Rs305 billion and a majority of
the projects under execution are in-house ones. This is coupled with the
concentration of the order book heavily in favour of four projects i.e., Vidarbha,
Babandh, Amarkantak and Kondapalli – III, which comprises nearly 60% of the total
order book. Any unforeseen delays in the implementation of these projects will
have a significant bearing on the profitability from the EPC vertical and delay the
expected profitability from the power vertical.

Significant fall in Merchant tariffs

Though LITL has prudent mix of PPA and merchant off take, we believe that
significant decline in merchant tariffs can negatively impact company’s financials
and can vary with our assumptions. The company looks fairly leveraged post
FY2011, significant decline in merchant tariffs can pose much more problems for
the company.

Sensitivity Analysis
Sensitivity Analysis: FY2012E FY2013E
Change (in %) Change in
viz-a-viz base case Sales EBITDA PAT Sales EBITDA PAT
Target Price
Increase in Merchant Tariff by Re.1/- 2.3% 9.0% 22.8% 2.9% 11.9% 28.8% 16.8%
Decrease in Merchant Tariff by Re.1/- (2.4%) (9.4%) (23.7%) (3.0%) (12.5%) (30.3%) (25.1%)
Increase in Coal cost by 10% 1.4% (0.8%) (1.9%) 1.4% (0.7%) (1.7%) (1.6%)
Decrease in Coal cost by 10% (1.3%) 0.8% 2.0% (1.3%) 0.6% 1.6% 1.5%
Increase in Gas cost by 10% 0.4% (0.4%) (1.1%) 0.5% (1.7%) (4.3%) (0.2%)
Decrease in Gas cost by 10% (0.3%) 1.3% 3.3% (0.5%) 1.7% 4.3% 0.3%
Increase in Total Fuel Cost (Coal + Gas) by 10% 1.8% (1.2%) (3.0%) 1.9% (2.5%) (6.0%) (1.8%)
Decrease in Total Fuel Cost (Coal + Gas) by 10% (1.7%) 2.1% 5.3% (1.8%) 2.4% 5.8% 1.8%
Increase in Weighted Average Cost of Capital (WACC) by 1% (13.2%)
Decrease in Weighted Average Cost of Capital (WACC) by 1% 15.1%

From the above sensitivity analysis, we find that our target price for LITL is most
sensitive to change in merchant tariff rates and weighted average cost of capital
(WACC).

8 01st February 2011

 Valuation
LITL is supposed to be one of the best bet in the power generation space with very
low dependence on imported coal, domestic allocation of coal in place, financial
closure achieved for almost all of its up-coming project and power offtake
agreements in place.
We have used Sum-Of-The-Parts (SOTP) based approach as LITL has interests in
many verticals such as Power, EPC, Road, Realty and Mining. SOTP is a blend of
DCF, P/E multiple and Book Value. The SOTP based valuation generates target
price of Rs73/share.
The value of different verticals comprises as follows:
Power Business
This division is valued at Rs46/share valued using DCF methodology, implies 64% of
the target price.
EPC Business
Valued at Rs18/share, implies an exit P/E multiple of 10.0x its FY2013(E). EPC business
accounts for 25% of the target price.
Others
Balance Rs8/share is the value for other verticals such as Road Projects, Property
Business, Power Trading and Coal Mine (Griffin Coal).

Sum-of-the-parts Valuation for LITL

Total Equity LITL's LITL's Share
INR/ (%)
Business Vertical Value Stake of Equity Comments
Share Contribution
(INR Billion) (%) (INR Billion)
Power
Coal Based
Amarkantak 35.92 100% 35.92 15.06 21% NPV at an average WACC of 9.41%
Udipi 26.53 100% 26.53 11.12 15% NPV at an average WACC of 9.76%
Anpara 10.25 100% 10.25 4.30 6% NPV at a WACC of 9.52%
Babandh 10.87 100% 10.87 4.56 6% NPV at an average WACC of 9.71%
Vidarbha 3.13 100% 3.13 1.31 2% NPV at a WACC of 9.20%
Gas Based
Kondapalli 35.80 59% 21.12 8.85 12% NPV at an average WACC of 10.50%
Aban 2.70 51% 1.38 0.58 1% NPV at a WACC of 13.36%
Hydro
Vamshi 1.02 91% 0.93 0.61 1% NPV at an average WACC of 9.51%
Lanco Green 2.42 90% 2.17 0.91 1% NPV at a WACC of 9.71%
Teesta Hydro (2.23) 90% (2.00) (0.84) NPV at a WACC of 9.50%
EPC Project 18.18 25% P/E @ 10x on FY2013 estimates
Road Project 5%
Neelmangala-
2.75 100% 2.75 1.15 2% NPV at a WACC of 9.85%
Devihalli
Bangalore-
5.41 100% 5.41 2.27 3% NPV at a WACC of 9.85%
Hoskote
Property Business 1.57 2% Considered @ 25% of the Book Value
Power Trading 0.73 1% P/E @ 10x on FY2013 estimates
Coal Mine
6.31 100% 6.31 2.65 4% NPV at a WACC of 8.37%
(Griffin Coal)
TOTAL 73

9 01st February 2011

Financials
(INR Million)
Income Statement 2010A 2011E 2012E 2013E Balance Sheet 2010A 2011E 2012E 2013E
Income from Power Cash 9,628 25,152 46,497 81,665
36,063 44,113 72,703 96,538
Business
Receivables 22,270 31,364 42,843 52,034
Income from EPC
45,431 49,075 66,053 81,420 Inventories 16,267 20,646 28,410 35,212
Business
Others* (1,173) 27,314 34,996 45,481 Other Current Assets 74 99 143 184
Net Sales 80,320 120,503 173,753 223,439 Loans and Advances 21,800 28,062 35,703 42,239
Other Income 1,839 718 767 759 Total Current Assets 70,039 105,324 153,595 211,334
Total Income 82,160 21,221 174,520 224,198 Gross Fixed Assets 61,644 126,494 185,769 225,270
Total Expenditure 65,805 89,068 129,820 169,742 Less: Depriciation 10,867 19,653 32,019 47,162
Operating profit - Other Net Fixed Assets 50,777 106,841 153,751 178,108
14,515 31,435 43,933 53,697
Income
CWIP 13,281 13,281 13,281 13,281
EBITDA 16,354 32,153 44,700 54,457
Investments 20,229 21,158 21,158 21,158
Interest 3,554 11,083 14,646 16,574
Expenditure, pending
Depreciation & 5,956 5,456 4,956 4,456
3,479 8,786 12,365 15,144 allocation (net)
Amortization
Misc. Expenses - - - -
Earnings Before Taxes 9,322 12,284 17,688 22,739
Total Assets 160,283 252,060 346,742 428,338
Operating profit - other
11,036 22,649 31,567 38,554
income & Dep Current Liabilities 34,115 53,685 74,691 97,660
Total Taxes (3,643) (3,138) (4,665) (6,281) Provisions 995 995 995 995
Net Income After Taxes 5,679 9,146 13,023 16,458 Current Liab & Provns 35,110 54,680 75,686 98,655
Minority Interest 915 1,463 2,084 2,633 Total Debt 83,614 147,920 210,656 255,459
Extraordinary Items (177.97) - - - Equity Capital 2,385 2,385 2,385 2,385
Reported Net Income 4,585 7,683 10,939 13,824 Reserves 30,316 37,999 48,938 62,763
Reported EPS (INR) 2.02 3.22 4.59 5.80 ESOP Outstanding 746 746 746 746
Adjusted EPS (INR) 2.10 3.22 4.59 5.80 Deferred tax liability 1,003 1,003 1,003 1,003
O/S Shares 2,268.0 2,385.5 2,385.5 2,385.5 Minority Interest 7,108 7,327 7,327 7,327
* Includes revenue from Road Project, Power Trading and Coal Mine Total Liabilities and
160,283 252,060 346,742 428,338
Equity
Capital Employed 125,173 197,380 271,056 329,683
Ratio Analysis 2010A 2011E 2012E 2013E
Liquidity Ratios
Current Ratio 2.0 1.9 2.0 2.1 Cash Flow Statement 2010A 2011E 2012E 2013E
Quick Ratio 1.4 1.4 1.6 1.7 Profit Before Tax 9,322 12,284 17,688 22,739
Interest Coverage Ratio 3.1 2.0 2.2 2.3 Plus Depreciation 3,479 8,786 12,365 15,144
Activity ratios Others 4,446 (718) (767) (759)
Asset Turnover Ratio 1.9 1.3 1.1 1.1 Total Tax paid (3,145) (3,138) (4,665) (6,281)
Collection ratio 3.6 3.8 4.1 4.3 Minority Interest - (1,463) (2,084) (2,633)
Inventory Turnover Ratio 4.9 5.8 6.1 6.3 Changes in working
(12,544) (190) (5,922) 399
capital
Financing Ratio
Cash Flow from
1,557 15,561 16,616 28,607
Debt/Equity 2.6 3.7 4.1 3.9 Operations
Debt/Asset 0.5 0.6 0.6 0.6 Capital expenditure (15,383) (64,851) (59,275) (39,501)
Performance Ratio Proceeds from Asset Sales 30 500 500 500
Book Value per share 14.7 17.2 21.8 27.6 Chg in investments (6,055.3) (929.0) - -
EBITDA Per share 7.2 13.5 18.7 22.8 Others (5,034) 718 767 759
EPS (Adjusted) 2.1 3.2 4.6 5.8 Cash Flow from investing (26,442) (64,561) (58,008) (38,241)
EBITDA margin (%) 18% 26% 25% 24%
PAT margin (%) 7% 8% 7% 7% FCF from Operations (24,885) (49,000) (41,392) (9,634)
P/E 23.8 15.5 10.9 8.6 Proceeds from issue of
7,274 219 - -
Equity/Warrants
Return on Equity 17% 21% 23% 23%
Debt raised/(repaid) 28,649 64,306 62,736 44,803
Return on Capital
11% 14% 13% 13% Others (479) - - -
Employed
Return on Assets 3% 3% 3% 3% Dividend (incl. tax) paid - - - -
P/BV 3.4 2.9 2.3 1.8 Interest Expenses (8,484) - - -
Free Cash Flow Per Share (11.0) (20.5) (17.4) (4.0) Cash Flow from Financing 26,959 64,525 62,736 44,803
Sales Per Share 35 51 73 94
Growth Ratio Net Cash Flow 2,074 15,525 21,344 35,169
Net Sales 34% 50% 44% 29% Beginning Cash Balance 7,554 9,628 25,152 46,497
EPS 17% 53% 42% 26% Ending Cash Balance 9,628 25,152 46,497 81,665
Source: Company data, AKS Research Source: Company data, AKS Research

10 01st February 2011

 Gaurav Oza
Sr. Research Analyst
Email:- gaurav.oza@akgroup.co.in
Tel:- 91-22 67544729

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11 01st February 2011