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Institutional Equities
Financials
Exhibit 22: Income statement
Y/E March (Rsmn) FY09 FY10 FY11 FY12E FY13E
Net sales 48,819 54,929 56,515 63,748 74,998
Growth (%) 33.4 12.5 2.9 12.8 17.6
Consumption of materials 16,578 20,211 19,897 23,002 26,343
Construction expenses 25,194 26,070 27,299 31,119 37,155
Employee costs 1,953 2,026 2,623 2,546 3,040
Other expenditure 876 1,303 1,471 1,594 1,875
Total expenditure 44,601 49,610 51,369 58,261 68,413
EBITDA 4,218 5,319 5,146 5,487 6,585
Growth (%) 16.6 26.1 (3.2) 6.6 20.0
EBITDA margin (%) 8.6 9.6 9.1 8.6 8.7
Interest costs 1,233 1,637 2,182 2,782 3,135
Depreciation 473 543 758 886 1,026
Other income 299 149 120 196 228
Profit before tax 2,811 3,288 2,326 2,015 2,652
PBTM (%) 5.8 6.0 4.1 3.2 3.5
Tax 478 1,177 747 665 875
RPAT (before E.O. item) 2,333 2,111 1,579 1,350 1,777
E/O items (73) - - - -
Adj. PAT 2,260 2,111 1,579 1,350 1,777
Growth (%) 7.3 (6.6) (25.2) (14.5) 31.6
Source: Company, Nirmal Bang Institutional Equities Research
Exhibit 24: Balance Sheet
Y/E March (Rsmn) FY09 FY10 FY11 FY12E FY13E
Equity share capital 267 534 534 534 534
Reserves & surplus 17,839 17,999 19,340 20,563 22,174
Net worth 18,106 18,533 19,874 21,097 22,708
Long-term debt 10,185 12,688 16,295 22,813 25,550
Short- term debt 3,410 3,445 4,663 241 962
FCCBs 385 - - - -
Total debt 13,980 16,133 20,958 23,054 26,512
Deferred tax (liability) / assets 117 125 87 87 87
Sources of funds 32,203 34,791 40,918 44,237 49,306
Gross block 6,624 7,502 9,242 11,242 13,242
Less: Depreciation 1,417 1,838 2,324 3,210 4,237
Net block 5,207 5,664 6,918 8,032 9,006
Investments 3,892 6,138 6,347 6,982 7,680
Inventories 8,892 2,447 2,732 10,479 11,918
Debtors 11,430 19,464 19,298 16,769 19,556
Cash & bank balance 1,009 1,643 1,432 1,601 3,260
Loans & advances 16,804 23,451 31,062 21,517 21,262
Current assets 38,135 47,005 54,523 50,367 55,994
Current liabilities 14,787 23,924 26,727 21,059 23,249
Provisions 440 445 403 344 384
Current liabilities 15,226 24,369 27,130 21,403 23,633
Net current assets 22,909 22,635 27,393 28,964 32,361
Application of funds 32,203 34,791 40,918 44,237 49,306
Source: Company, Nirmal Bang Institutional Equities Research
Exhibit 23:Cash flow
Y/E March (Rsmn) FY09 FY10 FY11 FY12E FY13E
EBIT 3,971 4,925 4,508 4,601 5,559
Inc./(dec.) in working capital (2,878) (2,481) (1,659) (1,401) (1,739)
Cash flow from operations 1,093 2,443 2,848 3,200 3,820
Other income (745) (165) (97) 196 228
Depreciation 473 543 758 886 1,026
Interest paid (-) (1,233) (1,637) (2,182) (2,782) (3,135)
Tax paid (-) (1,018) (1,293) (1,651) (665) (875)
Dividends paid (-) (189) (215) (246) (126) (166)
Net cash from operations (1,620) (323) (569) 709 898
Capital expenditure (-) (1,306) (720) (1,571) (2,000) (2,000)
Net cash after capex (2,926) (1,043) (2,139) (1,291) (1,102)
Inc./(dec.) in borrowings 3,221 1,150 4,791 2,096 3,458
Inc./(dec.) in investments (1,058) (522) (2,714) (635) (698)
Equity issue/(buyback) 0 1,050 (150) - -
Others - - - - -
Cash from financial activities 2,163 1,677 1,927 1,461 2,760
Change in cash (763) 635 (212) 170 1,658
Opening cash 1,771 1,009 1,643 1,432 1,601
Closing cash 1,009 1,643 1,432 1,601 3,260
Source: Company, Nirmal Bang Institutional Equities Research
Exhibit 25:Key Ratios
Y/E March FY09 FY10 FY11 FY12E FY13E
EPS (x) 8.7 7.9 5.9 5.1 6.7
Valuation
PE ratio (x) 4.2 4.7 6.3 7.3 5.6
Price /CEPS (x) 1.8 3.7 4.2 4.4 3.5
Price /BV (x) 0.5 0.5 0.5 0.5 0.4
EV /sales (x) 0.5 0.4 0.5 0.5 0.4
EV /EBITDA (x) 5.4 4.6 5.7 5.7 5.0
Margins (%)
Operating margin 8.6 9.7 9.1 8.6 8.8
EBIT margin 8.3 9.0 8.0 7.5 7.7
PBT margin 5.8 6.0 4.1 3.2 3.5
Net margin 4.8 3.8 2.8 2.1 2.4
Returns (%)
RoCE 10.5 11.8 9.6 9.0 9.9
RoNW 13.7 11.5 8.2 6.6 8.1
Efficiency ratio
Asset T/O 1.5 1.6 1.4 1.4 1.5
Turnover ratio
Debtors T/O 85.5 129.3 99.4 96.0 95.2
Creditors T/O 30.3 43.6 34.0 33.0 31.0
Inventory T/O 66.5 16.3 17.6 60.0 58.0
DuPont
NPM (PAT/sales) 4.78 3.84 2.79 2.12 2.37
Total asset T/O 1.52 1.58 1.38 1.44 1.52
Equity multiplier 1.78 1.88 2.06 2.10 2.17
Gearing ratios
Net debt/ equity (x) 0.5 0.5 0.7 0.7 0.7
Total debt/equity (x) 0.8 0.9 1.1 1.1 1.2
Source: Company, Nirmal Bang Institutional Equities Research
89 IVRCL