GICS Industry: Household Durables l Sub Industry: Consumer Electronics l Website: www.bpl.

in

BPL Ltd
Key Stock Indicators
NSE Ticker: Bloomberg Ticker: Face value / Share: Div. Yield (%): BPL BPL: IN 10.0 0.00 CMP (as on 09 Mar 2011Rs/share): 52-week range up to 20 Apr 2011 (Rs) (H/L): Market Cap as on 20 Apr 2011 (Rs mn): Enterprise Value as on 20 Apr 2011 (Rs mn): Div. Yield (%): 0.0 27.2 47.80/19.50 1,317 6,425 Shares outstanding (mn): Free Float (%): Average daily volumes (12 months): Beta (2 year): 48.5 33.8 171,037 1.4

BPL Limited was incorporated in 1963 and is promoted by T.P.G. Nambiar. The company manufactures and sells consumer and professional products, primarily in India. It is also engaged in providing healthcare solutions and undertakes various power projects.

Key Financial Indicators

Revenue (Rs mn) EBITDA ma rgins (%) PAT (Rs mn) PAT ma rgins (%) Gea ring (x) EPS (Rs /s ha re) PE (x) P/BV (x) RoCE (%) RoE (%) EV/EBITDA (x)
n.m.: Not meaningful

KEY HIGHLIGHTS
Part of the industry for two decades BPL has been a part of the electronic industry for more than two decades. It is India's first television company to cross 1 mn sales in volume. The company is one of the leaders in the colour television market across all segments. Its technical tie-up with Sanyo, Japan, has helped the company widen its product range. BPL has a distribution network consisting of over 7,000 channel partners. Presence in medical devices business BPLs involvement in medical care instruments began in 1969 with the introduction of a single channel electrocardiograph. Today, BPL has the highest share of electrocardiogram (ECGs) machines in the country with an installed base of more than 100,000 units. It has design, development and manufacturing capability for diagnostic medical devices such as electrocardiographs, vital signs monitoring systems and defibrillators. In March 2009, it entered into strategic alliance with Welch Allyn (USA), a manufacturer of frontline medical products and solutions. MoU to set up 300 MW power plant BPL entered into a memorandum of understanding (MoU) with the Government of Chhattisgarh for commissioning a 300 MW coal-based thermal power station in the state. The project will be implemented by Bharat Energy Ventures, one of the subsidiaries of the company.

Mar-08 2,027.7 -7.4 -1,456.9 -71.8 n.m -30.0 n.m n.m n.m n.m

Mar-09 1,271.6 -15.0 39.4 3.1 n.m 0.8 19.5 n.m n.m n.m

Mar-10 844.8 -17.9 -21.5 -2.5 n.m -0.4 n.m n.m 4.1 n.m

Shareholding (As on March 31, 2011)

DII 1% Others 33%

KEY RISKS

Increasing competition from domestic and international players in electronics industry Change in government price and policies of home appliances Exchange rate fluctuations and technological obsolescence
Promoter 66%

Stock Performances vis--vis market

Returns (%) YTD BPL NIFTY
Note: 1) YTD returns are since April 1, 2010 to Apr 20, 2011. 2) 1-m, 3-m and 12-m returns are up to Apr 20, 2011.

1-m 25 9

3-m -5 2

12-m -27 12

Indexed price chart

(index) 140 120 100 80 60 40 20 0 Nov-10 Apr-10 Dec-10 Aug-10 Sep-10 Oct-10 Feb-11 Jun-10 Jul-10 May-10 Mar-11 NIFTY Jan-11 ('000) 7000 6000 5000 4000 3000 2000 1000 0

-31 11

Volumes (RHS)

BPL

CRISIL COMPANY REPORT | 1

BPL Ltd
BACKGROUND
BPL manufactures and sells consumer and professional products, primarily in India. The company also operates in the healthcare industry, providing health management solutions. It is also engaged in power projects, through its subsidiary Bharat Energy Ventures Ltd. Its power projects include the Ramagundam thermal power project in Karimnagar district of Andhra Pradesh. BPL manufactures televisions, test and measuring equipments, medical electronic equipments and office automation products. Its technical tie-up with Sanyo, Japan, helps the company widen its product range. The companys consumer products include home entertainment products such as DVDs and home theatre systems, televisions and household products, including rechargeable lanterns, LED torchlights, solar-powered products, home UPS, gas tables, cooking hobs, refrigerators, washing machines, solar street lights, commercial lights, etc. Its professional products includes medical accessories and consumables, such as disposable ECG electrodes and BP cuffs, reusable BP cuffs, patient cables (monitors), bulbs, battery, power handles, lamps, ECG paper rolls, and gel products as well as enterprise communication products comprising PABX products and communication equipment and energy communication products such as power line communication equipments, etc. Its manufacturing facilities are located at Palakkad (Kerala) and Doddaballapur (Karnataka). In FY10, the company produced 7,635 units of medical electronics. BPL has a distribution network consisting of over 7,000 channel partners. Its subsidiaries include Bharat Energy Ventures Ltd, BPL Securities Pvt Ltd and BPL Display Devices Ltd.

COMPETITIVE POSITION
Peer Comparison

Revenue (Rs mn) EBITDA ma rgins (%) PAT (Rs mn) PAT ma rgins (%) Gea ring (x) EPS (Rs /s ha re) PE (x) P/BV (x) RoCE (%) RoE (%) EV/EBITDA (x)
n.m: Not meaningful

Panasonic Home Salora BPL Ltd Sharp India Ltd. Appliances India Co. Ltd. International Ltd. Mar-10 Mar-10 Mar-10 Mar-10 844.8 1,071.7 1,364.2 5,297.9 -17.9 3.5 4.7 0.0 -21.5 16.1 19.3 -51.7 -2.5 1.5 1.4 -1.0 n.m 0.0 0.4 0.4 -0.4 0.5 2.7 -8.0 n.m 63.6 54.8 n.m n.m 3.4 6.3 0.2 4.1 7.0 15.3 n.m 8.3 10.6 n.m n.m 19.6 20.9 n.m

FINANCIAL PROFILE
Top line, EBITDA margin worsen, company slips into loss

Key Financial Indicators Units Revenue Rs mi ll ion Rs mi ll ion Per cent Per cent Per cent Times Per cent Per cent EBITDA ma rgins Per cent PAT PAT ma rgins EBITDA growth PAT growth Gea ring RoCE RoE

Mar-08
2,027.7 -7.4 -1,456.9 -71.8 -5.7 n.m n.m n.m n.m 0.0

Mar-09
1,271.6 -15.0 39.4 3.1 -37.3 n.m n.m n.m n.m 0.0

Mar-10
844.8 -17.9 -21.5 -2.5 -33.6 n.m n.m n.m 4.1 0.0

BPLs top line declined 33.6% to Rs 844.8 mn in FY10 from Rs 1.27 bn in FY09, mainly on account of significant drop in the companys other income. Operations continued to be affected due to working capital constraints and lack of bank funding for operations. The company had an operating loss of Rs 150 mn in FY10 due to sustained increase in key raw material prices and selling costs as a percentage of sales. The company reported a loss of Rs 21.4 mn in FY10, against a profit of Rs 39.4 mn in FY09. Operating losses, coupled with impairment loss of fixed assets of Rs 31 mn and extraordinary expenses of Rs 37 mn, caused the PAT to slip into the red.

Revenue growth Per cent

INDUSTRY PROFILE
Colour Television The CTV industry was valued at around Rs. 119 billion in 2009-10. The key segments of the industry are conventional colour television (CCTV) with 12 per cent share, flat colour television (FCTV) with 54 per cent revenue share and high-end television (including LCDs and plasma) with 34 per cent share. In volume terms, conventional colour television (CCTV), flat colour television (FCTV) and high-end television (including LCDs and plasma) account for 25 per cent, 65 per cent and 10 per cent of sales in 2009-10. Increasing number of households, rising incomes (as a fallout of the 6th pay commission recommendations, and increasing rural income owing to rising prices of commodities, farm loan waivers and inclusive government policies targeting employment generation opportunities in rural areas), lower real product prices and shorter replacement cycles are driving the growth in the CTV industry. Factors such as relatively under-penetrated rural markets and increase in urban upper middle class population leading to increase in demand for multiple CTVs per household are other demand drivers. Household appliances Rise in disposable incomes, boom in real estate industry & housing, stable prices of household appliances, rising distribution network & availability of financing schemes have driven the growth of the household appliances industry comprising colour televisions (CTVs), refrigerators, washing machines and air conditioners in India. CRISIL COMPANY REPORT | 2

BPL Ltd
ANNUAL RESULTS
Income Statement (Rs million ) Net Sales Operating Income EBITDA EBITDA Margin Depreciation Interest Other Income PBT PAT PAT Margin No. of shares (Mn No.) Earnings per share (EPS) Cash flow (Rs million ) Pre-tax profit Total tax paid Depreciation Change in working capital Cash flow from operating activities Capital Expenditure Investments and others Balance sheet (Rs million ) Equity share capital Reserves and surplus Tangible net worth Deferred tax liablity:|asset| Long-term debt Short-term-debt Total debt Current liabilities Total provisions Total liabilities Gross block Net fixed assets Investments Current assets Receivables Inventories Cash Total assets Ratio Mar-08 -562.5 -4.9 228.5 317.5 -21.4 1,349.8 907.5 Mar-09 -579.2 -3.3 158.1 246.6 -177.8 -23.2 38.8 Mar-10 -64.1 0.0 112.9 -368.0 -319.2 317.6 0.0 Revenue growth (%) EBITDA growth(%) PAT growth(%) EBITDA margins(%) Tax rate (%) PAT margins (%) Dividend payout (%) Dividend per share (Rs) BV (Rs) Return on Equity (%) Return on capital employed (%) Gearing (x) Interest coverage (x) Debt/EBITDA (x) Asset turnover (x) Current ratio (x) Gross current assets (days) Mar-08 -5.7 n.m n.m -7.4 -0.2 -71.8 0.0 0.0 -13.0 0.0 n.m n.m n.m n.m 0.6 0.8 352 Mar-09 -37.3 n.m n.m -15.0 -0.5 3.1 0.0 0.0 -2.4 0.0 n.m n.m n.m n.m 0.4 0.8 377 Mar-10 -33.6 n.m n.m -17.9 0.0 -2.5 0.0 0.0 -2.9 0.0 4.1 n.m n.m n.m 0.3 1.1 545 Mar-08 1,976.7 2,027.7 -149.8 -7.4 228.5 240.6 56.5 -2,354.2 -1,456.9 -71.8 48.5 -30.0 Mar-09 936.2 1,271.6 -190.3 -15.0 158.1 250.1 19.3 -618.0 39.4 3.1 48.5 0.8 Mar-10 815.5 844.8 -150.9 -17.9 112.9 148.3 347.9 -31.0 -21.5 -2.5 48.5 -0.4 Mar-08 485.1 -1,117.2 -632.1 -1,652.9 4,580.0 468.8 5,048.8 1,893.1 0.0 4,656.9 3,380.5 1,294.1 1,408.8 1,954.0 304.5 247.2 110.6 4,656.9 Mar-09 485.1 -603.8 -118.7 -2,313.6 5,166.6 185.0 5,351.6 1,398.2 0.0 4,317.5 3,294.8 1,633.3 1,370.0 1,314.3 124.4 104.6 212.4 4,317.6 Mar-10 485.1 -625.8 -140.6 -2,323.0 5,117.0 135.0 5,252.0 1,046.2 0.0 3,834.6 2,736.8 1,202.3 1,370.0 1,262.3 158.0 98.2 144.4 3,834.6

Cash flow from investing activities Equity raised/(repaid) Debt raised/(repaid) Dividend (incl. tax) Others (incl extraordinaries)

2,257.3 188.9 -1,041.2 0.0 -1,369.7

15.6 0.0 302.8 0.0 -38.8

317.6 0.0 -99.6 0.0 33.2

Cash flow from financing activities Change in cash position Opening cash Closing cash
n.m : Not meaningful;

-2,222.0 13.9 96.8 110.6

264.0 101.8 110.6 212.4

-66.4 -68.0 212.4 144.4

QUARTERLY RESULTS
Profit and loss account (Rs million) No of Months Revenue EBITDA Interes t Depreci a tion PBT PAT Dec-10 3 231.3 8.8 32.9 23.5 3.8 3.8 100.0 3.8 14.2 10.2 1.6 1.6 % of Rev Dec-09 % of Rev 3 507.8 290.4 35.9 38.7 41.9 41.9 100.0 57.2 7.1 7.6 8.3 8.3 Sep-10 3 185.6 3.3 30.5 23.5 (50.7) (50.7) 100.0 1.8 16.4 12.7 (27.3) (27.3) % of Rev Dec-10 % of Rev 9 660.1 25.9 94.5 70.6 (87.8) (87.8) 100.0 3.9 14.3 10.7 (13.3) (13.3) Dec-09 9 940.7 344.9 99.6 100.8 (24.1) (24.1) 100.0 36.7 10.6 10.7 (2.6) (2.6) % of Rev

CRISIL COMPANY REPORT | 3

BPL Ltd
FOCUS CHARTS & TABLES
Rs mn 600 500 400 300 200 100 0 Dec-08 Dec-09 Mar-08 Mar-09 Mar-10 Dec-10 Sep-08 Sep-09 Sep-10 Jun-08 Jun-09 Jun-10

Quarterly sales & y-o-y growth

Per cent 250 200 150 100 50 0 -50 -100

Rs mn 60 40 20 0 -20 -40 -60 -80 -100 Jun-08 Mar-08

Quarterly PAT & y-o-y growth

Per cent 250 200 150 100 50 0 -50 -100 -150 Dec-10 Sep-10

Dec-08

Dec-09

Sep-08

Sep-09

Jun-09

Mar-09

Sales

Sales growth y-o-y (RHS)

Net Profit

Net profit growth y-o-y (RHS)

Rs/share 1 0.5 0 -0.5 -1 -1.5 -2 Dec-08

EPS

Per cent 160 140 120 100 80 60 40 20 0 -20 -40 -60 Jun-08 Mar-08 Dec-09 Mar-10 Dec-10 Sep-09 Sep-10 Jun-10

Movement in operating and net margins

Dec-08

Dec-09

Mar-10

Jun-10

Mar-09

Sep-08

Jun-08

Mar-08

Mar-09

Jun-09

OPM

Mar-10

NPM

Shareholding Pattern (Per cent) Jun 2010 Sep 2010 Promoter 66.2 66.2 FII 0.2 0.1 DII 0.9 0.9 Others 32.7 32.8

Dec 2010 66.2 0.1 0.9 32.8

Mar 2011 66.2 0.9 32.9

Board of Directors Director Name Suraj L. Mehta (Mr) K Jayabharath Reddy (Mr) Subhash Bathe (Mr) Ks Pras ad (Mr) S Padmakumar (Mr) Capt. S. Prabhala (Mr) Anju Chandrasekhar (Mrs ) Ajit G Nambiar (Mr)

Designation Director Director Director Director Director Director Director Chairman & Managing Director

Additional Disclosure This report has been sponsored by NSE - Investor Protection Fund Trust (NSEIPFT). Disclaimer This report is based on data publicly available or from sources considered reliable. CRISIL Ltd. (CRISIL) does not represent that it is accurate or complete and hence, it should not be relied upon as such. The data / report is subject to change without any prior notice. Opinions expressed herein are our current opinions as on the date of this report. Nothing in this report constitutes investment, legal, accounting or tax advice or any solicitation, whatsoever. The subscriber / user assume the entire risk of any use made of this data / report. CRISIL especially states that, it has no financial liability whatsoever, to the subscribers / users of this report. This report is for the personal information only of the authorised recipient in India only. This report should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person especially outside India or published or copied in whole or in part, for any purpose. CRISIL is not responsible for any errors and especially states that it has no financial liability whatsoever to the subscribers / users / transmitters / distributors of this report. For information please contact 'Client Servicing' at +91-22-33423561, or via e-mail: clientservicing@crisil.com.

CRISIL COMPANY REPORT | 4

Dec-10

Sep-08

Sep-09

Sep-10

Jun-09

Jun-10