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Institutional Equities
Financials
Exhibit 20: Income statement
Y/E March (Rsmn) FY09 FY10 FY11 FY12E FY13E
Net sales 33,137 36,442 40,932 47,414 55,267
Growth (%) 7.5 10.0 12.3 15.8 16.6
Total expenditure 28,823 32,013 35,534 41,511 48,330
EBITDA 4,314 4,429 5,398 5,903 6,936
Growth (%) 17.6 2.7 21.9 9.4 17.5
EBITDA margin (%) 13.0 12.2 13.2 12.5 12.6
Depreciation 1,152 1,139 1,527 1,681 1,834
Interest costs 2,105 2,052 2,899 3,686 4,036
Other income 588 130 170 197 229
Profit before tax 1,646 1,219 1,117 734 1,295
PBTM (% ) 5.0 3.3 2.7 1.5 2.3
Tax 392 404 407 220 389
Adj. PAT before E/O items 1,254 815 710 514 907
Growth (%) 15.2 (35.0) (12.9) (27.6) 76.5
Source: Company, Nirmal Bang Institutional Equities Research
Exhibit 2: Balance Sheet
Y/E March (Rsmn) FY09 FY10 FY11 FY12E FY13E
Equity capital 256 303 607 607 607
Reserves & surplus 9,640 14,868 14,615 14,866 15,651
Net worth 10,048 15,172 15,222 15,472 16,258
Long term loan 9,041 8,880 14,603 16,969 17,267
FCCBs 5,000 4,353 - - -
Short-term loan 9,177 11,914 20,111 23,786 29,254
Total loans 23,218 25,147 34,714 40,755 46,520
Deferred tax (liability)/assets 1,132 1,426 1,665 1,665 1,665
Total liabilities 34,398 41,745 51,601 57,892 64,443
Gross block 16,828 18,142 19,875 21,875 23,874
Less: Depreciation 5,546 6,645 8,032 9,713 11,547
Net block 11,282 11,497 11,843 12,162 12,327
Capital WIP 464 349 257 257 257
Investments 3,655 4,087 5,313 7,313 8,813
Inventories 30,731 36,548 44,991 51,961 57,689
Debtors 47 27 27 67 79
Cash & bank balance 1,539 1,884 1,937 3,160 2,415
Loans & advances 8,072 11,460 13,948 16,238 18,927
Other current assets 38 48 58 55 64
Total current assets 40,426 49,965 60,960 71,480 79,173
Creditors 19,778 22,241 26,066 32,596 35,427
Provisions 1,651 1,910 706 706 706
Total current liabilities 21,429 24,150 26,772 33,302 36,133
Net current assets 18,997 25,815 34,188 38,178 43,040
Total assets 34,398 41,745 51,601 57,892 64,443
Source: Company, Nirmal Bang Institutional Equities Research
Exhibit 21:Cash flow
Y/E March (Rsmn) FY09 FY10 FY11 FY12E FY13E
EBIT 3,889 3,481 4,371 4,420 5,332
(Inc.)/dec in working capital (3,071) (3,608) (3,635) (2,767) (5,606)
Cash flow from operations 818 (128) 736 1,652 (275)
Other income (587) (32) (441) (197) (229)
Depreciation 1,152 1,139 1,527 1,681 1,834
Interest paid (-) (2,084) (2,027) (2,911) (3,686) (4,036)
Tax paid (-) (338) (411) (819) (220) (389)
Dividends paid (-) (199) (204) (283) (243) (121)
Net cash from operations (1,237) (1,662) (2,191) (1,013) (3,216)
Capital expenditure (-) (2,215) (2,574) (2,336) (2,000) (1,999)
Net cash after capex (3,452) (4,237) (4,527) (3,013) (5,215)
Inc./(dec.) in borrowings 4,781 1,939 9,567 6,041 5,766
Inc./(dec.) in investments (993) (1,773) (4,989) (2,000) (1,500)
Equity issue/(buyback) - 4,679 - - -
Cash from financial activities (2,434) 2,643 (4,987) (1,806) (1,295)
Others - - - - -
Change in cash (1,105) 345 53 1,222 (744)
Opening cash 2,644 1,539 1,884 1,937 3,160
Closing cash 1,539 1,884 1,937 3,160 2,415
Source: Company, Nirmal Bang Institutional Equities Research
Exhibit 23: Key Ratios
Y/E March FY09 FY10 FY11 FY12E FY13E
Adj. EPS (Rs/share) 2.1 1.3 1.2 0.8 1.5
Operating ratios (%)
NWC / total assets 0.6 0.6 0.7 0.7 0.7
Asset turnover 1.0 1.0 0.9 0.9 0.9
Fixed asset turnover 2.1 2.1 2.1 2.2 2.3
Turnover days
Inventory turnover 338.5 366.1 401.2 400.0 381.0
Loans advances turnover 0.5 0.3 0.2 0.5 0.5
Creditors 88.9 114.8 124.4 125.0 125.0
Working capital cycle 236.0 241.9 238.7 256.4 238.6
Valuation ratios
PE ratio (x) 14.0 33.9 24.8 34.2 19.4
Price/sales (x) 0.2 0.2 0.4 0.4 0.3
Price / BV (x) 1.8 1.2 1.2 1.1 1.1
EV/sales (x) 0.8 0.8 1.2 1.2 1.1
EV/EBITDA (x) 6.7 7.2 9.3 9.3 8.9
Margins (%)
EBITDA margin 13.0 12.2 13.2 12.5 12.6
PBT margin 5.0 3.3 2.7 1.5 2.3
Net margin 3.7 2.2 1.7 1.1 1.6
Returns (%)
RoCE 13.5 11.6 11.6 10.8 11.3
RoNW 12.5 4.1 4.7 3.3 5.7
Gearing ratios
Net debt/ equity (x) 2.2 1.5 2.2 2.4 2.7
Total debt/equity (x) 2.3 1.7 2.3 2.6 2.9
Source: Company, Nirmal Bang Institutional Equities Research
77 HCC