3QFY2012 Result Update | Infrastructure

February 15, 2012

IVRCL Infrastructure
Performance Highlights
Y/E March (` cr) Revenue EBITDA PAT 3QFY12 1,203 94.8 6.8 3QFY11 1,417 140.2 42.3 % chg (yoy) (15.1) (32.4) (84.0) 2QFY12 1,046 93.8 8.1 % chg (qoq) 15.0 1.1 (16.6)

ACCUMULATE
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (` ) BSE Sensex Nifty Reuters Code Bloomberg Code Infrastructure 1,611 2.0 96/27 836,985 2 18,202 5,532 IVRC.BO IVRC@IN

`60 `64
12 Months

Source: Company, Angel Research

IVRCL reported a disappointing set of numbers for 3QFY2012, with lower-thanexpected performance on all fronts. However, order inflow for 9MFY2012 was commendable at `10,700cr, given the current scenario. The companys order book stands at `25,000cr (4.4x FY2011 revenue, including L1 projects of `3,000cr). During the quarter, IVRCL Assets and Holdings has sold its Noida land (3 parcels out of 4) and is expecting to receive the cash to the tune of `225-300cr by March 2012. Further the company expects to divest stake in one road BOT project for ~`100-175cr in near term. This development is positive for the company as it will help to fulfill its equity commitment towards four under construction road BOT projects in FY2013 (excluding Sion Panvel, Raipur Bilaspur and Haryana projects). We recommend Accumulate on the stock with a revised target price of `64 (`56). Poor show on numbers front: IVRCLs revenue declined by 15.1% yoy to `1,203cr, below our estimate of `1,374cr. On the EBITDAM front, the company posted dismal margin of 7.9% (9.9%) and below our estimate of 9.2% as fixed overheads were not absorbed fully due to low turnover. Interest cost came in at `66.1cr, an increase of 11.6% yoy/1.3% qoq, lower than our expectations. On earnings front, IVRCL reported an 84.0% yoy decline to `6.8cr, against our estimate of a ~47% decline. This was on primarily on account of poor performance on the revenue and margin front. Outlook and valuation: We are revising our estimates downwards for FY2012 to factor in the poor quarterly performance. However, land monetization and improvement in working capital for FY2013 will ease debt requirement for FY2013 leading to savings on interest cost. The stock price of IVRCL has seen tremendous rally in last 3 months and captured near term positives (strong order inflow and easing on debt front) to some extent. Further, management is not confident of clocking 15-20% revenue growth for FY2013 given headwinds. Hence we recommend Accumulate on the stock. Key financials (Standalone)
Y/E March (` cr) Net sales % chg Adj. net profit % chg FDEPS (`) EBITDA margin (%) P/E (x) RoAE (%) RoACE (%) P/BV (x) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 11.2 26.1 38.5 24.2

Abs. (%) Sensex IVRCL

3m 7.8

1yr (0.4)

3yr 95.6 2.6

76.2 (17.2)

FY2010 5,492 10.3 211.3 (6.5) 7.9 9.7 7.6 11.5 14.2 0.9 0.6 5.8

FY2011 5,651 2.9 157.9 (25.3) 5.9 9.1 10.2 8.2 11.6 0.8 0.6 6.9

FY2012E 5,057 (10.5) 54.0 (65.8) 2.0 8.2 29.8 2.7 7.3 0.8 0.8 10.0

FY2013E 5,758 13.9 129.0 138.9 4.8 9.2 12.5 6.2 8.9 0.8 0.7 8.0

Shailesh Kanani
022-39357800 Ext: 6829 shailesh.kanani@angelbroking.com

Nitin Arora
022-39357800 Ext: 6842 nitin.arora@angelbroking.com

Please refer to important disclosures at the end of this report

IVRCL Infrastructure | 3QFY2012 Result Update

Exhibit 1: 3QFY2012 performance (Standalone)

Y/E March (` cr) Net sales Total expenditure Operating profit OPM (%) Interest Depreciation Non operating income Nonrecurring items Profit before tax Tax Reported PAT PAT (%) Adjusted PAT Adj. PAT (%) Adj. FDEPS
Source: Company, Angel Research

3QFY12 1,203 1,108 94.8 7.9 66.1 22.9 1.0 6.9 0.1 6.8 0.6 6.8 0.6 0.3

3QFY11 1,417 1,277 140.2 9.9 59.2 19.7 1.1 62.5 20.2 42.3 3.0 42.3 3.0 1.6

% chg (yoy) (15.1) (13.2) (32.4) (200)bp 11.6 16.3 (12.2) (89.0) (99.7) (84.0) (84.0) (240)bp (84.0)

2QFY12 1,046 952 93.8 9.0 65.2 25.0 5.3 8.9 0.7 8.1 0.8 8.1 0.8 0.3

% chg (qoq) 15.0 16.3 1.1 (110)bp 1.3 (8.4) (81.5) (22.8) (91.2) (16.6) (16.6) (20)bp (16.6)

9MFY12 3,373 3,099 274.1 8.1 194.1 70.6 11.2 20.6 1.5 19.1 0.6 19.1 0.6 0.7

9MFY11 3,599 3,263 336.5 9.3 152.5 54.0 7.6 137.6 44.0 93.7 2.6 93.7 2.6 3.5

% chg (6.3) (5.0) (18.5) (120)bp 27.3 30.6 46.3 (85.0) (96.7) (79.6) (79.6) (200)bp (79.6)

Exhibit 2: 3QFY2012 Actual vs. Angel estimates

(` cr) Net Sales EBITDA Interest Tax PAT
Source: Company, Angel Research

Actual 1203 94.8 66.1 0.1 6.8

Estimates 1374 126.4 70.5 12.2 22.6

Variation (%) (12.5) (25.0) (6.2) (99.5) (70.0)

Revenue declines on slow execution

IVRCLs revenue declined by 15.1% yoy to `1,203cr and was below our estimate of `1,374cr. As per management, execution has not picked up during
the quarter due to various clearances pending from various government authorities and weather disturbances (floods in Rajasthan, snow in J&K, cyclone in Tamil Nadu). Further, stalling of permission was also witnessed in the private sector as well as payment delays. Going forward, IVRCL believes that increased activity would be witnessed in transportation sector (comprising of roads, railways, Metros and tunnels), building and mining sectors. Hence these sectors would remain the key focus areas for the company.

BOT toll revenue and under construction/development project update

As per management, three operational BOT projects contributed combined toll revenue of ~`30lakhs/day in 3QFY2012 which implies flat performance on a sequential basis. On the Chennai desalination project, the company had collections of `46lakhs/day during 3QFY2012.

February 15, 2012

IVRCL Infrastructure | 3QFY2012 Result Update

On the recently won road project, Raipur Bilaspur the company expects average daily toll collection of `40lakhs/day. Further, the management is hopeful of achieving project IRR of 13-14% and equity IRR of 17%.

Exhibit 3: Poor show at revenue front continues

2,500 2,000 1,500 1,000 500 0 20.4 25.3 16.5 5.2 4.0 13.7 0.2 (11.7) 14.7 8.7 65.6 75.0 55.0 35.0 1.6 15.0 (2.7) (15.1) (5.0) (25.0) (45.0)

Exhibit 4: EBITDAM dips owing to low turnover

250.0 200.0 150.0 100.0 50.0 2QFY09 3QFY09 4QFY09 1QFY10 2QFY10 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12

10.5 9.1 7.9 8.5 9.0 9.4 9.0 9.1 8.9

9.9 8.7 7.6

12.0 9.0 7.9 10.0 8.0 6.0 4.0 2.0 -

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

Sales (` cr, LHS)

Growth (yoy %, RHS)

3QFY12

EBITDA (`cr, LHS)

EBITDAM (%, RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Subdued topline and lower EBITDAM leads to poor show on earnings front
On the EBITDA margin front, the company posted dismal margin of 7.9%, a dip of 200bp yoy against and below our estimate of 9.2% as fixed overheads were not absorbed fully due to low turnover. Interest cost came in at `66.1cr, an increase of 11.6% yoy/1.3% qoq, lower than our expectations. On earnings front, IVRCL reported an 84.0% yoy decline to `6.8cr, against our estimate of a ~47% decline. This was on primarily on account of poor performance on the revenue and margin front.

Exhibit 5: Earnings marred by various headwinds

90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 0.4 0.8 0.6 4.9 3.9 3.2 4.8 4.0 3.5 2.5 2.2 6.0 4.5 3.0 3.1 5.0 4.0 3.0 2.0 1.0 -

Exhibit 6: Interest cost remains at elevated levels

70.0 60.0 50.0 40.0 30.0 20.0 10.0 3QFY09 4QFY09 1QFY10 2QFY10 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12

37.8

42.6 23.2 6.1 10.9 3.9 (4.3) (13.8) 1.3

50.0 40.0 30.0 20.0 10.0 (10.0) (20.0)

(6.5)

(1.7) (8.2)

4.2

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

PAT (` cr, LHS)

PATM (%, RHS)

Interest Cost (` cr)

qoq growth (%)

Source: Company, Angel Research

Source: Company, Angel Research

February 15, 2012

IVRCL Infrastructure | 3QFY2012 Result Update

Key Concall highlights

Monetisation of land parcel; a positive development: During the quarter, IVRCL Assets and Holdings has sold its Noida land (3 parcels out of 4) and is expecting to receive the cash to the tune of `225-300cr by March 2012. Further the company expects to divest stake in one road BOT project for ~`100-175cr in near term. This development is positive for the company as it will help to fulfill its equity commitment towards four under construction road BOT projects in FY2013 (excluding Sion Panvel, Raipur Bilaspur and Haryana projects). Equity commitment for BOT projects: The total equity requirement for IVRCL based on the current projects in hand is ~`850-925cr. Out of which `300cr is for four under construction road project and would be invested in FY2013. The under development Sion Panvel project has an equity requirement of `125cr. While the two recently won road BOT projects would require another ~`450-500cr over next three years. Claims to the tune of ~`200cr from NHAI for operational road BOT projects: As per the management, IVRCL has filed for claims against NHAI to the tune of ~`200cr (Amritsar Pathankot `100cr and Salem and Kumarapalayam projects `100cr) for cost overruns owing to changes in design and delay in providing land for these projects. However, owing to uncertainty whether this claim would be received and time frame of the same, we are not factoring the same.

Order book analysis

The companys order book stands at ~`25,000cr (4.4x FY2011 revenue, including L1 projects worth `3,000cr) and is diversified across six segments. Order inflow for 9MFY2012 and 3QFY2012 was commendable at `10,700cr and ~`2,700cr respectively, given the current gloomy scenario for order awarding. Hence we are factoring in order inflow of `11,164cr and `12,828cr for FY2012 and FY2013 respectively.

Exhibit 7: 3QFY2012 revenue break-up (` cr)

Exhibit 8: Order book break-up (` cr)

Source: Company, Angel Research

Source: Company, Angel Research

February 15, 2012

IVRCL Infrastructure | 3QFY2012 Result Update

Outlook and valuation

We are revising our estimates downwards for FY2012 to factor in the poor quarterly performance. However, land monetization and improvement in working capital for FY2013 will ease debt requirement for FY2013 leading to savings on interest cost. Our revised revenue estimates stand at `5,257 (earlier `5,598cr) and `5,758 (`6,457cr) for FY2012 and FY2013 respectively owing to the slowdown faced by the company on the execution front which is expected to persist for few more quarters. We are factoring EBITDAM margins of 8.2% for FY2012 owing to 9MFY2012 performance. On the earnings front, we expect the company to post earnings of `54.0cr (earlier `100.8cr) and `129.0 (earlier `123.5cr) for FY2012 and FY2013 respectively.

Exhibit 9: Change in estimates

FY2012E (` cr) Revenues EBITDA EBITDAM (%) Interest APAT EPS (`)
Source: Company

FY2013E Variation (%) (9.7) (15.7) (60)bp (2.8) (46.5) (46.5) Earlier Estimates 6,457.9 593.0 9.2 396.7 123.5 4.6 Revised Estimates 5,757.9 528.8 9.2 344.6 129.0 4.8 Variation (%) (10.8) (10.8) (13.1) 4.4 4.4

Earlier Estimates 5,598.2 494.3 8.8 344.9 100.8 3.8

Revised Estimates 5,057.1 416.5 8.2 335.1 54.0 2.0

We have valued IVRCL on an SOTP basis. The companys core construction business has been valued at P/E of 8x FY2013E EPS of `4.8 (`38.6/share), whereas its stake in subsidiaries IVR Prime (`21.3/share) and Hindustan Dorr-Oliver (`4.5/share) has been valued on mcap basis, post assigning a 20% holding company discount. The stock price of IVRCL has seen tremendous rally in last 3 months and captured near term positives (strong order inflow and easing on debt front) to some extent. Further, management is not confident of clocking 1520% revenue growth for FY2013 given headwinds. Hence we recommend Accumulate on the stock with a revised SOTP target price of `64 (`56).

Exhibit 10: SOTP valuation

Business Segment Construction IVRAH Hindustan-Dorr-Oliver Total
Source: Company, Angel Research

Methodology P/E Mcap Mcap

Remarks 8x FY2013E earnings 20% holding company discount 20% holding company discount

` cr 1,032 568 120 1,720

`/share 38.6 21.3 4.5 64

February 15, 2012

IVRCL Infrastructure | 3QFY2012 Result Update

Exhibit 11: Key assumptions

(` cr) Order inflow Revenue Order backlog (Y/E) Order book/sales ratio (x)
Source: Company, Angel Research

FY2008 8,795 3,661 12,242 3.3

FY2009 FY2010 6,421 4,980 13,682 2.7 8,696 5,492 16,887 3.1

FY2011 11,660 5,651 23,979 4.2

FY2012E 11,164 4,985 30,158 6.0

FY2013E 12,828 5,758 37,228 6.5

Exhibit 12: Angel EPS forecast vs. consensus

Angel forecast FY2012E FY2013E
Source: Company, Angel Research

Bloomberg consensus 3.5 4.7

Variation (%) (42.2) 3.4

2.0 4.8

Exhibit 13: Trading close to 3 year P/E multiple average

60.0 50.0 40.0 30.0 20.0 10.0 0.0

Exhibit 14: Trading lower to its historical P/B multiple averages

5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 -

14-Jun-05

14-Jun-06

14-Jun-07

14-Jun-08

14-Jun-09

14-Jun-10

14-Oct-05

14-Oct-06

14-Oct-07

14-Oct-08

14-Oct-09

14-Oct-10

14-Jun-11

14-Feb-05

14-Feb-06

14-Feb-07

14-Feb-08

14-Feb-09

14-Feb-10

14-Feb-11

14-Oct-11

14-Feb-05

14-Feb-06

14-Feb-07

14-Feb-08

14-Feb-09

14-Feb-10

14-Feb-11

14-Feb-12

14-Jun-05

14-Jun-06

14-Jun-07

14-Jun-08

14-Jun-09

14-Jun-10

14-Oct-05

14-Oct-06

14-Oct-07

14-Oct-08

14-Oct-09

14-Oct-10

14-Jun-11

14-Oct-11

P/E

7YEAR AVG

5YEAR AVG

3YEAR AVG

P/B

5YEAR AVG

3YEAR AVG

7YEAR AVG

Source: Company, Angel Research

Source: Company, Angel Research

February 15, 2012

14-Feb-12

IVRCL Infrastructure | 3QFY2012 Result Update

Exhibit 15: Recommendation summary

Company ABL CCCL HCC IRB Infra ITNL IVRCL JP Assoc. L&T Madhucon NCC Patel Engg Punj Lloyd Sadbhav Simplex In. CMP (`) TP (`) 205 18 30 189 213 60 86 65 62 120 63 143 224 245 17 235 64 99 77 157 261 Rating FY11 Buy Reduce Neutral Neutral Accu. Accu. 1,302 2,199 4,093 2,438 4,049 5,651 Top-line (`cr) FY12E 1,648 2,258 3,915 3,176 5,178 5,057 1,853 2,646 4,633 3,781 6,619 5,758 19.3 19.2 9.7 6.4 2.5 1.2 EPS (`) 21.7 (1.5) (3.1) 14.2 22.9 2.0 2.7 63.7 4.4 1.4 14.9 3.5 9.3 24.0 25.4 2.4 0.6 13.1 26.0 4.8 4.2 70.9 4.7 3.5 14.8 2.9 9.2 29.1 15.2 10.7 (3.6) 7.1 (25.8) 25.8 (2.0) 13.9 7.8 9.5 (9.6) 10.2 (12.6) 15.6 14.2 26.7 (8.1) 11.7 (26.1) (8.3) 9.7 6.9 Adj. P/E 9.5 13.4 9.3 29.8 31.4 22.7 14.8 44.7 8.1 17.9 15.5 9.4 8.1 7.7 47.0 14.5 8.2 12.5 20.5 20.4 13.9 17.7 8.1 21.7 15.6 7.7 OB/ 4.2 2.7 4.0 5.2 4.4 3.3 3.8 4.3 2.7 3.6 2.7 2.9 FY13E CAGR (%) FY11 FY12E FY13E CAGR (%) FY11 FY12E FY13E Sales(x)

24.5 13.6 27.9 22.3 0.9 7.6 17.4 6.8 5.9 5.5 5.6 6.4

Buy 13,832 13,763 16,017 Accu. 43,905 53,779 60,258 Buy Neutral Neutral Neutral Accu. Buy 1,816 5,074 3,476 2,209 4,889 1,952 4,946 3,573 2,602 5,961 2,503 5,790 3,609 2,585 6,732

1,449 1,608

17.2 54.3

1.9 17.6 16.2 (5.4) 8.2 8.0 17.3 21.5

7,850 10,147 10,592

7.3 18.0 16.3 10.4

Source: Company, Angel Research

Exhibit 16: SOTP break-up

Company ` ABL CCCL HCC IRB Infra ITNL IVRCL JP Assoc. L&T Madhucon NCC Patel Engg Punj Lloyd Sadbhav Simplex In. 104 17 4 116 59 39 31 1,276 23 29 55 71 83 261 Core Const. % to TP 42 100 12 64 25 60 31 79 30 48 51 100 53 100 ` 12 28 2 2 17 Real Estate % to TP 37 28 3 3 16 ` 141 16 61 152 52 8 16 75 Road BOT % to TP 58 51 34 65 68 14 15 47 Invst. In Subsidiaries ` 4 26 332 % to TP 2 40 21 22 19 25 40 ` Others % to TP 10 40 35 18 Total ` 245 17 32 182 235 64 99 1,608 77 61 106 71 157 261

Source: Company, Angel Research

February 15, 2012

IVRCL Infrastructure | 3QFY2012 Result Update

Profit and loss (Standalone)

Y/E March (` cr) Gross sales Less: Excise duty Net Sales Other operating income Total operating income % chg Total Expenditure Net Raw Materials Other Mfg costs Personnel Other EBITDA % chg (% of Net Sales) Depreciation& Amortisation EBIT % chg (% of Net Sales) Interest & other Charges Other Income (% of PBT) Share in profit of Associates Recurring PBT % chg Extraordinary Expense/(Inc.) PBT (reported) Tax (% of PBT) PAT (reported) Add: Share of earn. of asso Less: Minority interest (MI) Prior period items PAT after MI (reported) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) % chg FY2008 3,661 3,661 3,661 56.0 3,299 1,247 1,899 153 361 57.0 9.9 33 329 57.6 9.0 48 5 1.6 285 54.1 285 74.9 26.2 210 210 210 48.8 5.7 15.5 7.9 48.8 FY2009 4,980 4,980 4,980 36.1 4,559 1,658 2,687 214 422 16.7 8.5 47 374 14.0 7.5 198 97 35.6 274 (4.0) 274 47.8 17.5 226 226 226 7.4 4.5 16.7 8.5 7.4 FY2010 5,492 5,492 5,492 10.3 4,961 1,915 2,825 221 531 26.0 9.7 54 477 27.4 8.7 212 64 19.4 329 20.1 329 117.5 35.7 211 211 211 (6.5) 3.8 7.8 7.9 (6.5) FY2011 FY2012E FY2013E 5,651 5,651 5,651 2.9 5,137 1,990 2,864 284 515 (3.1) 9.1 76 439 (8.0) 7.8 263 57 24.3 233 (29.3) 233 74.7 32.1 158 158 158 (25.3) 2.8 5.9 5.9 (25.3) 5,057 5,057 5,057 (10.5) 4,641 1,810 2,576 254 416 (19.1) 8.2 95 322 (26.7) 6.4 335 93 116.7 80 (65.6) 80 25.9 32.4 54 54 54 (65.8) 1.1 2.0 2.0 (65.8) 5,758 5,758 5,758 13.9 5,229 1,883 3,058 288 529 27.0 9.2 100 428 33.1 7.4 345 107 56.2 191 138.9 191 61.9 32.4 129 129 129 138.9 2.2 4.8 4.8 138.9

February 15, 2012

IVRCL Infrastructure | 3QFY2012 Result Update

Balance sheet (Standalone)

Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Preference Capital Reserves& Surplus Shareholders Funds Minority Interest Total Loans Deferred Tax Liability Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Current Assets Inventories Debtors Cash Loans & Advances Other Current liabilities Mobilisation Advance Net Current Assets Misc. Exp. not written off Total Assets 418 98 319 54 341 3,058 194 834 177 922 930 913 175 1,970 2,684 662 142 521 20 389 4,014 209 1,343 101 1,199 1,162 1,523 200 2,291 3,220 750 184 566 35 614 4,952 245 2,196 164 661 1,686 2,437 251 2,264 (1) 3,478 924 232 692 26 635 5,703 273 2,181 143 953 2,153 2,713 251 2,739 4,092 1,004 327 677 42 685 5,876 306 2,215 127 1,109 2,119 2,293 264 3,319 4,723 1,129 428 702 44 735 6,507 365 2,277 175 1,326 2,365 2,790 277 3,440 4,920 27 1,579 1,606 1,068 10 2,684 27 1,784 1,811 1,398 12 3,220 53 1,800 1,853 1,613 12 3,478 53 1,934 1,987 2,096 9 4,092 53 1,969 2,023 2,692 9 4,723 53 2,079 2,133 2,778 9 4,920 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

February 15, 2012

IVRCL Infrastructure | 3QFY2012 Result Update

Cash flow (Standalone)

Y/E March (` cr) Profit Before Tax Depreciation Change in Working Capital Less: Other income Direct taxes paid Cash Flow from Operations (Inc.)/ Dec. in Fixed Assets (Inc.)/ Dec. in Investments Other income Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E 285 33 663 5 75 (425) (162) (58) 5 (215) 100 512 (22) 3 593 (47) 224 177 330 (19) (4) 307 (76) 177 101 274 47 398 97 48 (222) (210) (48) 97 (161) 329 54 248 64 129 (58) (104) (105) 64 (145) 220 (21) 68 266 63 101 164 233 76 497 57 75 (320) (165) (21) 57 (129) 483 (18) (37) 428 (21) 164 143 80 95 596 93 26 (540) (96) (50) 93 (53) 596 (19) 577 (16) 143 127 191 100 73 107 62 49 (127) (50) 107 (69) 86 (19) 68 47 127 175

February 15, 2012

10

IVRCL Infrastructure | 3QFY2012 Result Update

Key ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Du Pont Analysis EBIT margin Tax retention ratio Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) ROACE (Pre-tax) Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) W.cap cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage 0.6 2.5 6.9 0.7 3.1 1.9 0.8 2.7 2.2 1.0 3.8 1.7 1.3 6.2 1.0 1.2 4.9 1.2 10.8 14 81 99 146 9.2 15 80 94 146 7.8 15 118 142 143 6.8 17 141 180 152 5.2 21 159 193 209 5.4 21 142 173 205 14.4 15.8 14.4 12.7 13.3 13.2 14.2 14.8 11.5 11.6 12.1 8.2 7.3 7.5 2.7 8.9 9.2 6.2 9.0 73.8 1.8 11.6 4.3 0.4 14.6 7.5 82.5 1.8 11.0 13.3 0.6 9.5 8.7 64.3 1.7 9.5 9.1 0.7 9.9 7.8 67.9 1.6 8.2 9.6 0.9 7.0 6.4 67.6 1.2 5.1 9.5 1.1 0.2 7.4 67.6 1.2 6.2 8.5 1.2 3.3 15.5 7.9 9.1 1.4 60.1 16.7 8.5 10.2 1.4 67.8 7.8 7.9 9.9 1.5 69.4 5.9 5.9 8.8 1.6 74.4 2.0 2.0 5.6 1.7 75.7 4.8 4.8 8.6 1.8 79.9 7.7 6.6 1.0 2.3 0.7 6.9 0.9 7.1 5.9 0.9 2.3 0.6 6.9 0.9 7.6 6.1 0.9 2.5 0.6 5.8 0.9 10.2 6.9 0.8 2.7 0.6 6.9 0.9 29.8 10.8 0.8 2.8 0.8 10.0 0.9 12.5 7.0 0.8 3.0 0.7 8.0 0.9 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

February 15, 2012

11

IVRCL Infrastructure | 3QFY2012 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

IVRCL No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors.

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

February 15, 2012

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