IEA Report

28th Mar 2017
INDUSINDBK "Part Book Profit" 28th Mar 2017
Among the mid size private bank, Indusind bank remains one of the consistent performers in growth and profitability parameter. Superior loan
book growth, diversified fee income profile and low credit cost are the key drivers of the bank. We expect the IIB to maintain 25%+ loan growth in
near to mid-term backed by revival in economic environment and declining interest rate. We expect the consumer loan demand to pick up with
improving vehicle financing and card business giving the boost. Spike in CASA ratio and focus on consumer finance segment will help to maintain
the NIM at 4%. With healthy capitalization of Tier 1 at 14.7% we expect the RoA of 1.9%+, RoE of 16%-17%. Since Indusind Bank has achieved our
target price and valuation has got little stretched but based on strong fundamentals we think investors should hold the stock in their portfolio. We
recommend part book profit and hold the rest with the target price of Rs 1480. .............................................................. ( Page : 2-8)

SADBHAV "Book Profit" 27th Mar 2017

Revenue growth in 9MFY17 remain subdued due to demonetization, slow execution of irrigation projects and delay in resolution of services tax
related issue at BCCL mining project. Work commencement of 3 new HAM projects will drive the revenue growth going forward. At the current
price level (2.95x P/B) we do not see much upside here on as the stock has discounted all near to mid term positive traits. We recommended this
stock at Rs. 277 for the target price of Rs. 315 and the stock has achieved our recommended target price. So we advice our investors to Book profit
at current level. .................................................... ( Page : 9-12)

KEC Part Book Profit 24th Mar 2017
Revenue growth for 9MFY17 was subdued due to lower commodity prices and demonetization. But the operating margin continues to accretive
during the same period. We expect 5% and 15% revenue growth in FY17E and FY18E respectively based on the strong traction in Transmission and
railway business with strong operating margin. We recommended this stock at Rs. 148 for the target price of Rs. 185 and the stock has achieved our
recommended target price. So we advise our investors to Book part profit at current levels and considering the lower interest outgo, strong
revenue growth in Q4FY17 and efficient working capital management, investors may “HOLD Remaining” for the revised target price of Rs.217.
........................................................ ( Page : 13-17)

MARICO "BUY" 23th Mar 2017
The company’s recent acquisition is small but a right step in right direction. This acquisition will expand company’s product portfolio in male
grooming market and will enhance company’s digital marketing capability going forward. Management is optimistic of clocking double digit volume
growth for Saffola in medium term which gives us confidence of high single to double digit overall volume growth for Marico going forward. On
margin front, management reiterated its previous guidance of 20% plus margin for domestic business and 18% for overall business. Presently
company trades at 16 times of FY17E book value with 35% of RoE. Considering improving business conditions after demonetization, better medium
term volume guidance for domestic business and expected recovery from international business going forward, we reiterate to BUY this stock with
the target price for Rs 330. ............................................................ ( Page : 18-20)

KALPATPOWER "BUY" 22th Mar 2017
Kalapatru’s Standalone order book remains strong and advanced stage of an overseas project in transmission will help to register strong revenue
growth of 20% in FY17. Increasing opportunity in Railway segment can be a potential growth driver going forward for the Company. Based on SOTP
valuation method we have valued the standalone business at Rs. 260 per share and subsidiaries (JMC, SSL, Transmission BOT projects and
Development projects) at Rs. 60 per share. Hence, we recommend “BUY” on the stock with target price of Rs. 320.
................................................................. ( Page : 21)

EXIDEIND Part Book Profit 21th Mar 2017
We expect that management’s strategy of cost control and technology up-gradation may improve the margin up to 100bps by 2017-18.
Technological innovation, segment branding and increased distribution reach along with GST implementation will help the company to gain market
share going forward. We recommended this stock at Rs.175 for a target price of Rs.220 and the stock has achieved our recommended target. So we
advise our investors to Book Part Profit at current levels and considering the future growth potential of the stock we revise our target and
recommend fresh BUY for a target price of Rs.240 and we value insurance business at Rs.19 per share. ............................................................ (
Page : 22-24)

Narnolia Securities Ltd IEA Edition No.- 983
PART BOOK PROFIT
Indusind Bank 27-Mar-17

Result Update Recent Development and Result Update
CMP 1404 Recently there was news from management stating that Indusind Bank was
Target Price 1480 in talks with multiple entities for business expansion. It also includes the
widely speculated merger of Bharat Financial Inclusion. However we wait for
Previous Target Price 1400
the confirmation on any such deal. But any such development with Bharat
Upside 5% Financial Inclusion would be synergistic and will boost earnings growth of
Change from Previous 6% Indusind Bank.

Market Data Indusind Bank posted the strong set of 3Q FY17 results. NII grew by 35%
YoY backed by healthy loan growth as well as improvement in NIM. C/I ratio
BSE Code 532187 was well within control to 47.5%. Operating Profit remained healthy with
NSE Symbol 29% YoY growth. PAT grew by 29% YoY. NIM improved by 9 bps YoY to
INDUSINDBK
52wk Range H/L 1414/912 4%, it remained flat QoQ. Sequentially assets quality saw marginal
deterioration with GNPA at 94bps against 90bps. Advances increased by
Mkt Capital (Rs Cr) 69444
25% YoY backed by growth in both consumer as well as corporate portfolio.
Av. Volume (,000) 141 Deposits Increased by 38% YoY, whereas CASA Increased by 46% YoY.
Nifty 9045 CASA ratio increased by 50 bps QoQ to 37%.

Stock Performance Advances growth remained healthy, CASA Spiked
1Month 1Year YTD Advances grew by a healthy pace of 25% YoY despite the busy quarter (on
Absolute 3.7 49.0 27.8 liability side) backed by both Consumer Finance and Corporate Bank
division. Both the segment registered 25% growth YoY. Overall vehicle
Rel.to Nifty 1.9 18.2 11.4
finance grew by 20% YoY and Non Vehicle consumer portfolio grew by 38%
YoY. Under Vehicle Finance, CV grew by 10%, SCV picked up to 18% and
Share Holding Pattern-% car loan grew by 22%. Equipment financing grew by 28% YoY, Credit card
3QFY17 2QFY17 1QFY17 business grew by 51% YoY. Management highlighted that the IIB has
Promoters 16.7 16.7 16.7 gained the market share in overall vehicle financing except in 2 wheeler
segment which remained flat QoQ.
Public 83.3 83.3 83.3
Others
Deposits grew by 38% YoY mainly due to demonetization effect. However
Total 100.0 100.0 100.0 growth was only 6% QoQ due to one off IPO deposits in 2Q FY17 got
redeem in 3Q FY17. CASA grew by 46% YoY which led the CASA ratio to
Company Vs NIFTY 37%. SA increased by 56% and CA increased by 35% YoY. Management
highlighted that the increase in CASA can be attributed equally to both-
150 INDUSINDBK NIFTY
customer acquisition as well as demonetization.
140
130
120 Operating Profit Remain Healthy.
110
Operating profit of the Indusind bank has shown a healthy growth of 29%
100 YoY backed by strong NII and other income growth of 35% and 21%
90 respectively. Other income growth was supported by 22% YoY growth in fee
80 income. Fee from investment banking grew by 41% YoY but remain flat
sequentially. Loan processing fees grew by 5% YoY. Distribution fee income
grew by 44% YoY. C/I ratio increased marginally to 47.5% from 47.3% a
year back due to 29% growth in operating expenses. Bank opened 40 new
DEEPAK KUMAR branches this quarter which led the total branches to 1075 and has the
Deepak.kumar@narnolia.com
target of 1200 in FY17.
Narnolia Securities Ltd 2
Please refer to the Disclaimers at the end of this Report
INDUSINDBK

Demonetization led huge decline in Cost of Fund.
NIM has improved by 9bps YoY to 4% but remain flat QoQ. Improvement in NIM was backed by decline in cost of
fund. Cost of fund declined by 53bps YoY to 5.27%. Cost of deposits fall by 80 bps YoY to 6.35% as on 3Q FY17.
This 80 bps fall in cost of deposits was the highest in last 18 quarters. Decline in cost of deposits was the result of
spike in CASA ratio due to demonetization. Overall Yield of IIB declined by 44bps to 9.27%. Yield on advances
declined by 34 bps YoY to 11.73%. Yield on consumer finance division declined by 53 YoY bps whereas corporate
portfolio saw as decline of 22 bps YoY in its Yield. However sequentially yield on CFD decline marginally by 4 bps.
Most of the CFD book is on fixed rate. In the declining interest rate scenario, Yields will further taper but with the
strategy of management to shift to portfolio mix towards high yield CFD and decline in cost of fund will maintain the
NIMs at current level.

Assets Qaulity remains largely stable
Assets Quality of IIB saw marginal increase in its GNPA to 0.94% against 0.90% as on 2Q FY17. NNPA increased
by 2 bps to 0.39%. Slippages were Rs 281 Cr, increased by 8% QoQ. However slippages in CFD improved to Rs
170 Cr against Rs 188 Cr on 2Q FY17. GNPA in vehicle segment improved except in Car segment. LAP also saw
10bps increase in GNPA. Management highlighted that delinquencies and slippages in the consumer bank have
actually improved over the quarter because repayments came in faster before December 30.Bank also saw
delinquent clients as well as written-off clients end with paying up. Restructured assets declined to 41 bps against
44 bps on 2Q FY17. The decline was due to slip of 2 small accounts into NPA. PCR remained flat at 59%. Credit
cost was 15 bps for the quarter and it was 45 bps for 9 months. Management expects the credit cost to restrict to
60bps in FY17.

Quarterly Performance (Rs in Crore)
Financials 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 YoY % QoQ%
Interest Inc. 2437 2579 2724 2798 2928 3132 3292 3469 3699 26% 7%
Interest Exp. 1576 1654 1743 1703 1754 1863 1935 2009 2121 21% 6%
NII 861 925 981 1094 1173 1268 1356 1460 1578 35% 8%
Other Income 611 658 724 784 839 913 973 970 1017 21% 5%
Total Income 1472 1584 1705 1878 2012 2181 2329 2431 2595 29% 7%
Ope Exp. 698 733 782 871 951 1030 1096 1149 1232 29% 7%
PPP 774 851 923 1007 1061 1151 1234 1282 1363 28% 6%
Provisions 98 107 123 158 177 214 230 214 217 22% 1%
PBT 676 743 799 848 884 938 1003 1068 1146 30% 7%
Tax 229 248 274 288 303 317 342 364 396 31% 9%
Net Profit 447 495 525 560 581 620 661 704 751 29% 7%

Financials 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 YoY(+/-) QoQ(+/-)
NII Growth % (YoY) 18.0 18.4 22.5 31.3 36.2 37.1 38.3 33.4 34.5
Other Inc./Net Inc. % 41.5 41.6 42.5 41.7 41.7 41.9 41.8 39.9 39.2 (2.51) (0.74)
C/I Ratio % 47.4 46.3 45.9 46.4 47.3 47.2 47.0 47.3 47.5 0.19 0.19
Empl. Cost/ Tot. Exp. % 36.6 36.2 34.8 34.5 34.3 32.7 32.6 32.7 32.0 (2.35) (0.72)
Other Exp/Tot. Exp.% 63.4 63.8 65.2 65.5 65.7 67.3 67.4 67.3 68.0 2.35 0.72
PPP Growth % (YoY) (22.3) (10.9) 11.7 116.0 80.7 98.9 86.9 35.3 22.5
Provision/PPP % 12.7 12.6 13.4 15.7 16.7 18.6 18.7 16.7 15.9 (0.78) (0.78)
Tax % 33.8 33.3 34.3 34.0 34.3 33.8 34.1 34.0 34.5 0.26 0.48
PAT Growth % 28.9 25.1 24.7 30.2 29.9 25.3 26.0 25.8 29.2
RoE % 18.3 19.8 20.4 16.7 14.1 14.6 15.1 15.4 15.7 1.67 0.34
RoA % 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 (0.04) (0.05)

Narnolia Securities Ltd 3
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INDUSINDBK

Margins Performance 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 YoY(+/-) QoQ(+/-)
Yield % on Advances 13.0 12.8 12.7 12.4 12.1 12.0 12.1 11.9 11.7 (0.34) (0.13)
Yield % on Corporate Bank 10.9 10.6 10.4 10.1 10.0 10.1 10.2 9.9 9.8 (0.22) (0.16)
Yield % on Consumer Finance 15.8 15.8 15.7 15.4 15.1 14.9 14.6 14.6 14.5 (0.53) (0.04)
Overall Yield % on Total Assets 10.3 10.1 10.1 9.8 9.7 9.7 9.6 9.5 9.3 (0.44) (0.24)
Cost of Deposits % 7.8 7.7 7.6 7.4 7.2 7.1 6.9 6.6 6.4 (0.80) (0.25)
Overall Cost Of Funds % 6.6 6.5 6.4 5.9 5.8 5.7 5.7 5.5 5.3 (0.53) (0.24)
NIM % 3.7 3.7 3.7 3.9 3.9 3.9 4.0 4.0 4.0 0.09 -

NII Growth % (YoY) PAT Growth % C/I Ratio %
Overall Yield % on Total Assets Overall Cost Of Funds % NIM %
50.00 48.00
12.00
40.00 47.50
10.00
47.00
30.00 8.00
46.50
6.00
20.00
46.00 4.00
10.00 45.50 2.00
- 45.00 -
3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17

(Rs in Crore)
Other Income Break Up 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 YoY % QoQ%
Trade and Remittances 62 80 56 84 85 97 109 103 106 25% 4%
Foreign Exchange Income 169 110 159 170 170 140 151 156 179 5% 15%
Distribution Fees 98 127 107 119 126 138 137 156 181 44% 16%
General Banking Fees 42 45 49 41 46 48 56 49 64 38% 29%
Loan Processing fees 91 111 104 145 185 228 215 201 195 5% -3%
Investment Banking 59 96 123 114 113 122 114 161 160 41% -1%
Total Fee-Based Income 522 569 599 673 726 774 782 826 885 22% 7%
Securities/MM/FX 88 90 125 110 113 139 191 145 132 17% -9%
Trading/Others
Total Other Income 611 658 724 784 839 913 973 970 1017 21% 5%

Other Income/Total Net Income % Fee Income/ Advances %
43.00 0.90

42.00 0.88

41.00 0.86

40.00 0.84

39.00 0.82

38.00 0.80

37.00 0.78
3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17

4
Narnolia Securities Ltd
Please refer to the Disclaimers at the end of this Report
INDUSINDBK

Outlook & Valuation:

Among the mid size private bank, Indusind bank remains one of the consistent performers in growth and profitability
parameter. Superior loan book growth, diversified fee income profile and low credit cost are the key drivers of the
bank. We expect the IIB to maintain 25%+ loan growth in near to mid-term backed by revival in economic environment
and declining interest rate. We expect the consumer loan demand to pick up with improving vehicle financing and card
business giving the boost. Spike in CASA ratio and focus on consumer finance segment will help to maintain the NIM
at 4%. With healthy capitalization of Tier 1 at 14.7% we expect the RoA of 1.9%+, RoE of 16%-17%. Since Indusind
Bank has achieved our target price and valuation has got little stretched but based on strong fundamentals we think
investors should hold the stock in their portfolio. We recommend part book profit and hold the rest with the target price
of Rs 1480.

Concall Highlights:
>> Bond book will do well as the rate goes down. But the issue lies in the reinvestment risk in the book of banks.
>> Credit cost is well within the guidance. May come up slightly better than the guidance of 60 Bps of full year.
>> Security Receipts is Rs 223 Cr.
>> 2 small accounts slipped from restructured book.
>> RWA to total assets declined to 79% from 83% previous quarter. Quality of book has improved.
>> Assets quality in vehicle book has improved except for Car.
>> CASA increased can be attributed 50% to demonetization effect and 50% for the customer accquisition.
>> Gained market share in vehicle finance in all segment except in 2 wheeler segment.
>> LAP was slow in the month of Nov, but the business came back in Dec.
>> MFI book is flat QoQ with Rs 3000 Cr. MFI loan book target is Rs 10000 Cr in 3 years.

Assets Quality (Rs in Crore)
3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 YoY(+/-) QoQ(+/-)
GNPA (Rs) 673 563 570 602 681 777 861 899 971 43% 8%
GNPA % 1.05 0.81 0.79 0.77 0.82 0.87 0.91 0.90 0.94 0.12 0.04
NNPA (Rs) 202 210 225 241 273 322 356 369 401 47% 9%
NNPA % 0.32 0.31 0.31 0.31 0.33 0.36 0.38 0.37 0.39 0.06 0.02
Slippages (Rs) 161 449 133 189 252 274 253 261 281 12% 8%
Restructured Assets % 0.55 0.53 0.63 0.63 0.58 0.53 0.49 0.44 0.41 -0.17 -0.03
Total Stress Assets (Rs) 353 368 455 493 482 473 464 440 424 -12% -4%
(GNPA+Std.
Specific PCR Rest.)
% 70.1 62.6 60.6 60.0 59.9 58.6 58.7 59.0 58.7 -1.16 -0.25

GNPA Composition – Consumer Finance %
3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 YoY(+/-) QoQ(+/-)
Commercial Vehicle 1.44 1.27 1.18 1.10 1.05 1.00 1.08 1.07 1.02 -0.03 -0.05
Utility 0.97 1.08 1.06 1.03 1.00 1.21 1.27 1.17 1.07 0.07 -0.10
Construction Equipment 1.64 1.44 1.46 1.57 1.45 1.26 1.39 1.40 1.24 -0.21 -0.16
Small CV 0.90 0.92 1.04 0.84 0.81 0.98 1.05 0.97 0.83 0.02 -0.14
TW 2.36 2.53 2.65 2.83 2.95 3.02 3.15 3.62 3.60 0.65 -0.02
Cars 0.48 0.56 0.58 0.41 0.39 0.50 0.49 0.49 0.75 0.36 0.26
LAP/HL/PL 0.32 0.33 0.48 0.41 0.57 0.65 0.68 0.71 0.81 0.24 0.10
Tractor - - - - - - 0.24 0.49 0.28 N/A -0.21
Cards 1.53 1.24 1.32 1.35 1.48 1.45 1.73 1.68 1.62 0.14 -0.06
Total 1.22 1.15 1.14 1.09 1.08 1.08 1.14 1.17 1.16 0.08 -0.01
5
Narnolia Securities Ltd
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INDUSINDBK

GNPA % NNPA % Restructured Assets % Specific PCR %
1.20
72.00
1.00 70.00
68.00
0.80
66.00
0.60 64.00
62.00
0.40 60.00
58.00
0.20 56.00
54.00
- 52.00

Advances (Rs in Crore)
3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17
Net Advances (Rs in Cr) 63,847 68,788 72,243 78,294 82,167 88,419 93,678 98,949 1,02,770
Adv. Growth YoY % 21.69 24.84 23.15 30.64 28.69 28.54 29.67 26.38 25.07
>> Growth QoQ % 6.53 7.74 5.02 8.38 4.95 7.61 5.95 5.63 3.86

Sectoral Breakup % 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17
Corporate Banking% 57.7 58.7 58.5 59.2 58.3 58.7 58.8 59.0 58.3
Consumer Finance% 42.3 41.3 41.5 40.8 41.7 41.3 41.2 41.0 41.7

Net Advances (Rs in Cr) Adv. Growth YoY % Corporate Banking % Consumer Finance %
1,20,000 35.00
60.00
1,00,000 30.00
50.00
25.00
80,000
20.00 40.00
60,000
15.00 30.00
40,000
10.00 20.00
20,000 5.00 10.00
- - -

Narnolia Securities Ltd 6
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INDUSINDBK

Consumer Finance Book Break Up (Rs in Crore)
1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 YoY(+/-) QoQ(+/-)
Comm. Vehicle Loans 11,405 12,360 13,204 14,101 13,847 14,208 14,569 10% 3%
>>Tractor - - - - 1,229 1,460 1,764 N/A 21%
Utility Vehicle Loans 2,043 2,037 2,041 2,058 2,097 2,157 2,237 10% 4%
Small CV 1,860 1,938 2,019 2,045 2,133 2,274 2,381 18% 5%
Two Wheeler Loans 2,829 2,857 3,034 3,045 3,076 3,134 3,323 10% 6%
Car Loans 3,293 3,539 3,754 3,917 4,076 4,324 4,570 22% 6%
Equipment Financing 2,827 2,861 3,036 3,244 3,435 3,597 3,875 28% 8%
Credit Card 786 885 1,008 1,204 1,258 1,408 1,519 51% 8%
Loan Against Property 4,032 4,331 4,759 5,248 5,585 5,872 6,429 35% 9%
Others-BL,PL,GL,etc 932 1,147 1,393 1,687 1,855 2,124 2,198 58% 3%

DEPOSITS (Rs in Crore)
3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17
Deposits (Rs in Cr) 69,376 74,134 77,693 80,841 86,423 93,000 1,01,768 1,12,313 1,19,218
>> Growth YoY % 23.3 22.5 21.6 22.5 24.6 25.4 31.0 38.9 37.9
>> Growth QoQ % 5.1 6.9 4.8 4.1 6.9 7.6 9.4 10.4 6.1
CASA (Rs) 23,634 25,300 26,945 28,085 30,232 32,724 35,043 41,034 44,162
>>CASA Growth YoY % 30.6 28.5 26.5 25.6 27.9 29.3 30.1 46.1 46.1
>> Growth QoQ % 5.7 7.0 6.5 4.2 7.6 8.2 7.1 17.1 7.6
CASA % 34.1 34.1 34.7 34.7 35.0 35.2 34.4 36.5 37.0
CA % 16.5 16.7 16.6 16.1 16.3 16.6 15.7 18.2 15.9
SA % 17.6 17.5 18.0 18.6 18.7 18.5 18.8 18.3 21.1
Credit Deposit Ratio 92.0 92.8 93.0 96.8 95.1 95.1 92.1 88.1 86.2

Deposit Growth YoY % >>CASA Growth YoY % CA % SA % CASA %
50.00
40.0
45.00
40.00 35.0
35.00 30.0
30.00 25.0
25.00 20.0
20.00
15.0
15.00
10.00
10.0
5.00 5.0
- -

Narnolia Securities Ltd 7
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INDUSINDBK

Financials Snap Shot
INCOME STATEMENT (Rs in Crore) RATIOS
FY14 FY15 FY16 FY17E Business Ratios FY14 FY15 FY16 FY17E
Int./disc. on advances / bills 6,627 7,717 9,245 11,643 Credit-Deposit(%) 91.1 92.8 95.1 95.0
Income on Investments 1,477 1,680 1,781 2,201 CASA % 32.5 34.1 35.2 35.5
Int. on bal.with RBI 149 277 409 341 Efficiency Ratios
Others 1 17 147 137 Emp. Cost as a % of Total Inco. (%) 16.9 16.8 15.8 15.9
Total Interest Income 8,254 9,692 11,581 14,323 Other Exp./Total Inco. (%) 28.8 30.0 31.2 32.0
Total Interest expended 5,363 6,272 7,064 8,470 Cost Income Ratio (%) 45.7 46.8 47.0 47.9
Net Interest Income 2,891 3,420 4,517 5,853 Spread Analysis As Calculated
Other Income 1,891 2,404 3,297 4,184 Yield on Advances (%) 13.6 13.2 12.3 12.2
Total Income 4,781 5,824 7,814 10,036 Yield on Investments (%) 7.9 8.0 7.3 7.1
Total Operating Expenses 2,185 2,726 3,672 4,809 Yield on Earning Assets (%) 11.5 11.2 10.7 10.6
Pre Provisioning Profit 2,596 3,098 4,141 5,228 Cost of Deposits (%) 8.2 7.9 7.3 6.9
Provisions and Contingencies 468 389 672 803 Cost of Fund (%) 8.1 7.8 7.0 6.7
Profit Before Tax 2,128 2,709 3,469 4,425 Interest Spread (%) 3.5 3.5 3.8 4.0
Tax 720 915 1,183 1,497 NIM (%) 4.0 4.0 4.2 4.3
PAT 1,408 1,794 2,286 2,928 Profitability Ratio
RoE % 17.5 19.0 16.6 16.2
RoA % 1.8 1.8 1.8 1.9
BALANCE SHEET (Rs in Crore) Int. Expended / Int. Earned (%) 65.0 64.7 61.0 59.1
FY14 FY15 FY16 FY17E Provisions/PPP (%) 18.0 12.6 16.2 15.4
Capital 526 529 595 595 Other Income/Net Income (%) 39.5 41.3 42.2 41.7
Reserves & Surplus 8517 10115 17101 19625 Tax Rate (%) 33.8 33.8 34.1 33.8
Deposits 60502 74134 93000 116341 Asset Quality Ratio
Borrowings 14762 20618 22156 25179 GNPA (%) 1.12 0.81 0.87 0.96
Other Liabilities & Provisions 2719 3719 7205 8758 GNPA(Rs) 621 563 777
Total Capital & Liabilities 87026 109116 140057 170498 NNPA (%) 0.33 0.31 0.36 0.41
NNPA (Rs) 184 210 322
Cash & Balances with RBI 4414 4035 4521 7161 PCR (%) 70 63 59 59.0
Bal. with Bank&Money at Call 2356 6744 5591 6112 Os. Std. Restr. Assets (%) 0.33 0.53 0.53 0.40
Investments 21563 22878 31214 35368
Advances 55102 68788 88419 110524 Capital Adequacy Ratio
Fixed Assets 1016 1158 1255 1386 Capital Adequacy Ratio (%) 13.8 12.1 15.5 15.3
Other Assets 2575 5513 9057 9947 Tier I Capital (%) 12.7 11.2 14.9 14.6
Total Assets 87026 109116 140057 170498 Tier II Capital (%) 1.1 0.9 0.6 0.7

Narnolia Securities
8 Ltd
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BOOK PROFIT
SADBHAV ENG. 27-Mar-17

Sadbhav Eng. has reported strong numbers in Q3FY17; the top line grew by
Result Update 14.8% YoY to 864.8 Cr as compared to Rs. 753 Cr in Q3FY16 on back of
CMP 308 strong execution. EBITDA for the quarter stood at Rs. 94 Cr as against Rs.
Target Price 74 Cr in 3QFY16, 27% up YoY with 100 bps improvement in margin on
Previous Target Price - account of lower Employee and Other Expenses. PAT grew by 82.4% YoY
to Rs. 52 Cr vs Rs.29 Cr in same period last year. Higher 80 IA benefit led
Upside
to NIL effective tax rate for the quarter and it will be continue for the next 3
Change from Previous - quarters based on higher revenue contribution from road EPC and irrigation
projects. Order book stands at Rs. 7708 Cr at the end of Q3FY17 which
Market Data provides strong revenue visibility going forward. But slow execution pace of
BSE Code 532710 Irrigation projects and delay in resolution of mining project will be cause of
NSE Symbol SADBHAV concern going ahead.
52wk Range H/L 325/220 Highway & Road drives the revenue growth:-
Mkt Capital (Rs Cr) 5,295
Av. Volume 9580 Currently 5 EPC projects are under execution and another 3 HAM project
Nifty 9108 will come under execution in Q4FY17. 3 out of 5 HAM projects have
received appointment date and remaining two projects will receive by
February 2017 end. The company has already started work on these
Stock Performance
projects before getting appointment date and expects to book Rs.300 Cr
1Month 3 Month 1Year
(approx.) revenue in Q4FY17. The gross equity requirement for the HAM
Absolute 12.5 19.1 15.3 projects is 460 Cr. Management thrust on completion of lower margin
Rel.to Nifty 10.6 5.0 -2.7 irrigation projects but we do not witnessed speedy execution, irrigation
revenue has come down 26% YoY .The Service tax issue at BBCL projects
Share Holding Pattern-% has settled down for 2 blocks out of 3. Management is in talk with BCCL’s
3QFY17 2QFY17 1QFY17 management and expects to reach resolution by March end. EPC (Road &
Irrigation) dominated revenue in H2FY17 will boost the bottom line by way of
Promoters 47% 47% 47%
80 IA tax benefit.
Public 53% 53% 53%
Others 0% 0% 0%
Outlook and Valuation
Total 100% 100% 100%
Revenue growth in 9MFY17 remain subdued due to demonetization, slow
Company Vs NIFTY execution of irrigation projects and delay in resolution of services tax
130
related issue at BCCL mining project. Work commencement of 3 new HAM
SADBHAV NIFTY
projects will drive the revenue growth going forward. At the current price
125
level (2.95x P/B) we do not see much upside here on as the stock has
120
discounted all near to mid term positive traits. We recommended this
115 stock at Rs. 277 for the target price of Rs. 315 and the stock has
110 achieved our recommended target price. So we advice our investors to
105 Book profit at current level.
100 Financials Q3FY17 Q2FY17 Q3FY16 YoY QoQ
95 Sales 865 616 753 Change
15% 40%
90 EBITDA 94 65 74 27% 45%
Jul-16

Sep-16

Feb-17
Jan-17
Dec-16
Jun-16

Aug-16
May-16

Oct-16
Nov-16
Apr-16
Mar-16

Mar-17

Net Profit 52 19 29 79% 174%
EBIDTA% 10.8% 10.6% 9.8% 100 bps 20 bps
Sandip Jabuani PAT % 6.1% 3.0% 3.8% 230 bps 310 bps
sandip.jabuani@narnolia.com

Narnolia Securities Ltd 9
Please refer to the Disclaimers at the end of this Report
Demonetization impact on execution: NOT A MATERIAL ONE

Demonetization will not have any material impact on Sadbhav’s standalone working is concerned. In concall, management has
clarified that from the raw material procurement to wages of labour and other related expense are channelized directly through
banking system. Though this currency clean up drive will surely have impact on different economic activities with different degree
in near term moving forward, management has indicated that Sadbhav’s BOT business will not be spared from this, as traffic
growth may hamper.

Concall Update :-
♦ Expect 5000-6000 Cr of new orders in FY18 from Road segment
♦ Post demonetization toll collection is down by 1-1.15% YoY in January, but witness recovery in taffies in February
♦ Equity requirement for 5 HAM project is 460 Cr
♦ Company has received appointment date for 3 HAM projects in Guajarat and Puna and work will start in Q4FY17.
♦ Mgt. expect to receive appointment date on reaming 2 HAM projects by Feb 2017
♦ The work on BCCL project has been stopped and expect to resolve it by March end.
♦ Loan to SIPL at the end of Q2FY17 is 300 Cr
♦ Company has repaid mobilization advances of 109 Cr to NHAI and further looking to repay 160 Cr, which will be resulted into
increment in debt in Q4FY17
♦ Tax rate will be remain NIL in FY17 and H1FY18 as the company enjoying 80 IA benefit
♦ No impact of demonetization on execution of the project
♦ Debt on Standalone books is 1400 Cr at the end of the Q3FY17.
♦ Company expect to reduce debt post receipt of mobilization advances on HAM project around 300 Cr in Q1FY18

Segmental Order Book

BOT EPC Irrigation Minning

10,000
9,000
8,000 2,153
7,000 2,724 2,392 2,273 2,061
2,728
1,733 1,975 1,753
6,000 1,902
1,749 1,644 1,836
5,000 2,015 1,442 1,113
1,919 2,226
4,000 1,276
1,187
3,000 1,136 4,430 2,436
1,097 1,982 3,021
3,995
2,000 3,837 3,477 3,054
1,000 2,567 2,193 2,046
1,811 1,404 990 573
- 233 174 156
2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17

Order book Book to Bill
3.79
9,500 4.00
3.50
9,000
2.76 3.00
8,941
8,500 2.35
2.50
8,000 8,200 2.00
Maintain order Intake guidence of
7,500
1.50 Rs. 5000-7000 Cr
7,487 1.00
7,000
0.50
6,500 -
FY14 FY15 FY16

Narnolia Securities Ltd 10

Please refer to the Disclaimers at the end of this Report
Segmental Revenue

BOT EPC Irrigation Minning Power Generation

1,200

1,000
1
2 1 1
800 2
1 166 2 1 74
204 168
600 1 201 31 100 2
189 132
138 132 160 90
35 100
400 147 72
449 648
470 461 428 424
200 374 407 402
300
111 33 42
-
2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17

Toll Collection
250
208 214
200
200
165 173
155 162
139 147
150

100

50

-
2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17

EBITDA EBITDA M

120 11%
11% 11% 11% 11%
11%
100 11%
11%

80
10% 10%
10%
60 10%
9% 10%
40

9%
20
60 78 96 89 81 74 81 87 65 94
- 9%
2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17

Narnolia Securities Ltd 11

Please refer to the Disclaimers at the end of this Report
Financials Snap Shot
INCOME STATEMENT RATIOS
FY14 FY15 FY16 FY17E FY14 FY15 FY16 FY17E
Revenue 2733 3447 3878 4487 EPS 2.9 -10.2 -2.7 3.9
Other Income 30 44 45 45 Book Value 82.4 89.6 104.8 107.9
Total Revenue 2762 3491 3922 4532 DPS 0.7 0.8 0.8 0.8
COGS 2064 2576 2730 0 Payout (incl. Div. Tax.) 24% -8% -30% 21%
GPM 1 1 1 0 Valuation(x)
Other Expenses 153 164 192 0 P/E 53.1 -15.2 -56.9 75.1
EBITDA 436 580 803 929 Price / Book Value 1.9 1.7 1.5 2.7
EBITDA Margin (%) 16% 17% 21% 21% Dividend Yield (%) 0.45% 0.53% 0.53% 0.28%
Depreciation 127 219 287 304 Profitability Ratios
EBIT 309 361 516 625 RoE 4% -11% -3% 4%
Interest 449 615 726 581 RoCE 5% 4% 5% 6%
PBT -110 -210 -165 89 Turnover Ratios
Tax -14 34 17 21 Asset Turnover (x) 0.3 0.3 0.2 0.3
Tax Rate (%) 13% -16% -10% 24% Debtors (No. of Days) 76.9 72.4 77.4 77.0
Reported PAT 44 -175 -47 67 Inventory (No. of Days) 29.0 30.2 18.9 18.9
Dividend Paid 11 14 14 0 Creditors (No. of Days) 51.8 50.1 37.5 38.0
No. of Shares 15 17 17 0 Net Debt/Equity (x) 3.88 4.07 4.49 4.25

BALANCE SHEET CASH FLOW
FY14 FY15 FY16 FY17E FY14 FY15 FY16E FY17E
Share Capital 15 17 17 17 OP/(Loss) before Tax 26 -233 -165 89
Reserves 1235 1520 1781 1848 Depreciation 130 223 287 304
Net Worth 1250 1537 1798 1865 Direct Taxes Paid 56 68 17 21
Long term Debt 4848 6256 8069 7869 Op. before WC Change 469 596 890 974
Short term Debt 468 411 601 601 CF from Op. Activity 786 385 2130 657
Deferred Tax 36 24 23 23 0 0 20 0
Total Capital Employed 6098 7793 9867 9734 Capex 225 158 7300 1417
Net Fixed Assets 6007 9598 13527 11805 CF from Inv. Activity (1441) (1357) 9330 1417
Capital WIP 1 1 0 1 Repayment of LTB 0 0 0 0
Debtors 576 684 822 951 Interest Paid 455 615 726 581
Cash & Bank Balances 128 205 126 0 Divd Paid (incl Tax) 11 13 14 0
Trade payables 388 473 399 461 CF from Fin. Activity 706 1037 1580 (781)
Total Provisions 174 271 357 332 Inc/(Dec) in Cash 52 64 13041 1294
Net Current Assets 548 760 477 435 Add: Opening Balance 58 110 205 126
Total Assets 7871 11933 15809 14132 Closing Balance 110 174 13245 1420

Narnolia Securities Ltd 12
Please refer to the Disclaimers at the end of this Report
BOOK PART PROFIT
KEC International 24-Mar-17

Result Update
CMP 190 KEC has reduced gross debt by Rs. 562 Cr as compared to March 2016
Target Price 217 level backed by better Working capital management especially account
Previous Target Price 185 receivables. Account Receivables days went down from 246 days at the end
Upside 14% of March to 218 days at the end of Q3FY17 and further management has
guided to bring it down to 180 days level by the year end. The continuous
Change from Previous 17%
effort on improvement of working capital requirement will result into lower
interest outgo going forward. Management has guided that interest cost in
Market Data FY18 will be around 2.5% of sales as compare to 3.3% of sales in 9MFY17.
BSE Code 532714 Recently, KEC has won orders worth of Rs. 1943 Cr in transmission (1408
NSE Symbol KEC Cr), EHV Cables (85 Cr) and Solar (450 Cr), which will further strengthen its
52wk Range H/L 156/97 order book position.
Mkt Capital (Rs Cr) 4,900
Av. Volume 107057 Healthy Order Book:-
Nifty 9086
Current order book stands at Rs. 11175 Cr i.e. 1.3x of the trailing twelve
Stock Performance months revenue with Rs. 3800 Cr of orders in L1 position. Order intake
1Month 3 Month 1Year during the 9 months stood at Rs. 8634 Cr, up by 26% YoY. Management
Absolute 15.1 41.6 59.5 expects healthy orders from SEBs and railways which will provide robust
revenue visibility going ahead. Currently, SEA plant (Brazil) is running at
Rel.to Nifty 13.5 27.8 41.7
100% capacity utilization with 2 years orders in hand.
Share Holding Pattern-%
Operating Margin continues to be strong:-
3QFY17 2QFY17 1QFY17
Promoters 51% 51% 51% EBITDA margin in Q3FY17 has improved by 135 bps YoY to 9.3%. The
Public 49% 49% 49% Improvement in EBITDA margin was attributable to strong performance by
SAE (500 bps up YoY), railway business (negative in Q3FY16) and cable
business (negative in Q3FY16). Management is working on cost front in
cable business to improve margin and we expect margin improvement in
railway business as the revenue increase. Management has guided 9%
Company Vs NIFTY EBITDA margin in FY17 and improves further in FY18. KEC has bring down
160 KEC NIFTY account receivables days from 246 days in FY16 to 218 days at the end of
140 the Q3FY17 and we anticipate it to improve further based on retention
money release from Saudi project which result into improvement in bottom
120
line going forward.
100

80 In Rs. Cr.
Financials Q3FY17 Q2FY17 Q3FY16 YoY % QoQ %
60
Sales 1965 2121 2101 -7% -7%
40
EBITDA 182 185 167 9% -2%
Net Profit* 47 72 23 102% -35%
EBIDTA% 9.3% 8.7% 8.0% 130 bps 60 bps
Sandip Jabuani PAT 3.2% 3.1% 1.2% 200 bps 10 bps
* Net profit is excluding other comprehensive income
sandip.jabuani@narnolia.com

Narnolia Securities Ltd 13
Please refer to the Disclaimers at the end of this Report
Railway :- Potential Revenue growth driver
Management has cut down the revenue growth to 5% in FY17. But maintain the railway top line guidance of 450-500 Cr in FY17
and Rs.1000 Cr for the FY18E based on the huge opportunity in railway electrification project. Railway Ministry has set target to
award 2000 Km, 4000 Km and 6000 km of overhead electrification orders in FY17, FY18 and FY19 respectively. In railways, KEC
commands 20% market share, which may translate into approx.2400 Cr of expected new orders in FY18E. Railway ministry’s
focus on execution helps contractor to execute project smoothly and timely. We expect improvement in EBITDA margin based on
incremental volume and speedy execution.

Result Highlights of Q3FY17

♦ Net sales de grew by the 6.5% YoY to Rs. 1965 Cr in Q3FY17 as compared to Rs. 2101 Cr in Q3FY16
♦ EBITDA margin has improved by 135 bsp to Rs. 182 Cr as against Rs 167 Cr on account of 10% plus margin in T&D and
improved performance of railway and SAE business.
♦ KEC has reported 102% YoY growth in PAT with 200 bps improvement on back of higher EBITDA
♦During the quarter KEC has secured Rs.2706 Cr of new orders in Q3FY17 (up by 20% YoY) and Rs. 8634 Cr in 9 months of
FY17, which is up by 26% YoY
♦ Order book as on 31st December stands at Rs.11175 Cr, ie. 1.3x of TTM revenue.

Managment / Concall Update

♦ Demonetization, delay in conversation of L1 orders into firm order and land acquisition issue at Jammu and Kashmir project led
to de growth in revenue
♦ Management has guided 5% and 10-15% revenue growth in FY17 and FY18 respectively.
♦ EBITDA margin in FY17 will be 9% and it will improve further in FY18
♦ EBITDA margin of SAE tower was 8-9% in Q3FY17
♦Faced some serious issue in logistic in November and December month due to demonization but now situation is under control.
♦ Losses in Cable segment has come down significantly on YoY
♦Revenue loss of 50-60 Cr due to demonization
♦ Maintain revenue guidance in railway segment of Rs. 450-500 Cr and Rs.1000 cr in FY18
♦ Interest cost as % of sales will be 2.7% in FY18
♦Significant improvement in solar business from next year as the KEC is in L1 position of large project. EBITDA margin is slightly
below than normal margin but cash generating on PBT level
♦Expect to bring down AR collection days to 180 from 218 days based on the release of retention money from Saudi projects
♦ Land acquisition issue at Jammu and Kashmir project has been resolved
♦ Expect more orders from SEBs compare to PGCIL

Outlook and Valuation:-
Revenue growth for 9MFY17 was subdued due to lower commodity prices and demonetization. But the operating margin
continues to accretive during the same period. We expect 5% and 15% revenue growth in FY17E and FY18E respectively based
on the strong traction in Transmission and railway business with strong operating margin. We recommended this stock at Rs. 148
for the target price of Rs. 185 and the stock has achieved our recommended target price. So we advice our investors to Book
part profit at current levels and considering the lower interest outgo, strong revenue growth in Q4FY17 and efficient
working capital management, investors may “HOLD Remaining” for the revised target price of Rs.217.

Narnolia Securities Ltd 14

Please refer to the Disclaimers at the end of this Report
Quartely Performance 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 YoY% QoQ%
Net Sales 2,140 2,021 2,491 1,903 1,998 2,076 2,530 1,763 2,098 1,935 -7% -8%
Other Operating Income 33 32 30 20 23 25 29 22 23 30 19% 27%
Net Sales 2,173 2,053 2,521 1,923 2,021 2,101 2,559 1,785 2,121 1,965 -7% -7%
Change in Invenotry 16 41 76 (13) (1) (39) 74 (49) 8 (11)
RM Cost 1,276 1,053 1,243 900 1,025 924 1,282 870 1,014 854 -8% -16%
COGS 1,292 1,094 1,318 887 1,024 885 1,356 821 1,022 843 -5% -18%
Employee Expenses 149 145 144 158 161 155 168 173 187 186 19% -1%
Other Expenses 225 225 275 203 260 243 279 215 238 243 0% 2%
Erection & Subcontracting 386 485 599 489 421 609 533 390 441 459 -25% 4%
Excise Duty 45 41 36 47 52 27% 11%
Total Expenditure 2,052 1,949 2,336 1,782 1,866 1,934 2,336 1,635 1,936 1,783 -8% -8%
EBITDA 121 105 185 141 155 167 223 150 185 182 9% -2%
Depreciation 22 23 22 29 21 31 22 29 31 30 -5% -4%
EBIT 99 82 162 112 134 136 201 121 154 152 12% -2%
Intreset 91 81 71 71 68 69 71 72 60 58 -16% -2%
PBT 9 136 100 44 69 69 132 54 100 101 46% 0%
Tax (12) 70 37 27 25 43 52 23 35 38 -11% 8%
PAT 20 66 63 17 44 26 80 31 65 63 139% -4%

Margin Profile YoY (+/-) QoQ (+/-)
Gross Margin 40.5% 46.7% 47.7% 53.9% 49.3% 57.0% 47.0% 54.0% 51.8% 57.1% 10 530
EBIDTA 5.6% 5.1% 7.3% 7.3% 7.7% 7.8% 8.7% 8.4% 8.7% 9.3% 150 60
EBIT 4.5% 4.0% 6.4% 5.8% 6.6% 6.7% 7.9% 6.8% 7.3% 7.7% 100 40
PAT 0.9% 3.2% 2.5% 0.9% 2.2% 1.8% 3.1% 1.7% 3.1% 3.2% 140 10

Order Book 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 YoY% QoQ%
Transmission 7,356 6,921 7,131 7,903 7,207 7,028 7,087 7,334 7,442 8,054 15% 8%
SAE 931 876 951 948 1,086 937 1,134 1,769 1,510 1,342 43% -11%
Cables 279 263 570 632 592 469 472 104 216 224 -52% 4%
Railways 279 263 475 738 691 562 567 936 1,186 1,342 139% 13%
Water 466 438 380 316 - 281 189 208 216 112 -60% -48%
Solar 9 9 - - 296 75 38 52 183 101 34% -45%
Total 9,320 8,770 9,508 10,537 9,872 9,351 9,487 10,403 10,753 11,175 20% 4%

Order Intake
Transmission 583 1,478 1,909 2,375 1,024 1,595 1,370 1,469 1,738 1,651 4% -5%
SAE 231 485 421 123 181 247 206 678 465 298 20% -36%
Cables 253 412 393 309 181 270 206 198 279 244 -10% -13%
Railways - 48 84 278 90 90 56 424 528 460 412% -13%
Water - - - - - - - - - -
Solar 11 5 3 - 30 45 38 57 93 54 20% -42%
Total 1,078 2,428 2,811 3,085 1,506 2,246 1,877 2,825 3,103 2,706 20% -13%

Narnolia Securities Ltd

Please refer to the Disclaimers at the end of this Report 15
Segment Revenue 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 YoY% QoQ%
Transmission-Rest 1,692 1,531 1,976 1,355 1,506 1,557 1,887 1,184 1,529 1,273 -18% -17%
Transmission SAE 184 214 222 187 201 177 266 255 261 227 28% -13%
Total Transmission 1,876 1,745 2,198 1,542 1,707 1,734 2,153 1,439 1,790 1,500 -13% -16%
Cables 237 254 217 259 262 230 292 245 228 278 21% 22%
Railway 29 22 58 45 34 81 50 70 66 105 30% 59%
Water 30 32 38 32 21 13 37 18 19 20 54% 5%
Solar 9 0 - 40 52 14 26 59 48% 127%
Total 2,172 2,053 2,520 1,878 2,024 2,098 2,584 1,786 2,129 1,962 -6% -8%

Order Book Order Intake

Order Book Book to bill Order Intake Growth YoY%
12,000 2.00 10000 0.3
1.80 9000
10,000 0.25
1.60 8000
8,000 1.40 7000 0.2
1.20 6000 0.15
6,000 1.00 5000
0.80 4000 0.1
4,000 0.60 3000 0.05
2,000 0.40 2000
0.20 0
1000
- - 0 -0.05
FY12 FY13 FY14 FY15 FY16 Till FY12 FY13 FY14 FY15 FY16 Till
Q3FY17 Q3FY17

Strong Growth in Railway Segment :- Margin Trend :-

Railway Order Book Growth YoY%
EBITDA M % PAT M %
1,600 160%
1342 140% 10%
1,400
1,186 120% 9%
1,200 8%
100%
1,000 936 7%
80%
800 738 691 60% 6%
562 567 40% 5%
600 475
20% 4%
400 279 263 3%
0%
200 2%
-20%
1%
- -40%
0%
2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17
2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17

Narnolia Securities Ltd 16

Please refer to the Disclaimers at the end of this Report
About the Company :-

KEC International Limited is an India-based company, engaged in infrastructure engineering, procurement and construction
(EPC). The Company is also a manufacturer of power cables and telecom cables in India. The Company operates in four
business verticals, which include power transmission and distribution, cables, railways and water. The Company is also a provider
of turnkey solution in the railway infrastructure EPC space. The Company has powered infrastructure development across 50
countries in developed, developing and emerging economies of South Asia, the Middle East, Africa, Central Asia, the United
States and South East Asia. The Company has eight manufacturing facilities for lattice towers, monopoles, hardware and cables.

Power Transmission
Cabels Railways Water
& Distribution

Transmission Lines Substations Power Cabels
Civil & Track Work Water Resource
LT/HT/EHV
Managment
Lattice Distribution Platforms &
Network Telecom Cabel : Buildings
Towers/Poles
Optical Fiber and Water & Waste
Telecom/Tower/ Jelly filled Signalings Water Treatment
Hardware EPC/OPGE

Electrification

Supply EPC

Manufacturing Facilities

Tower Manufacturing
India, Brazil and Vadodara (Gujarat)
Mexico Mysore (Karnataka)
(SAE Annual Silvassa (Union
production capacity Territory)
100000 MTs)

Narnolia Securities Ltd 17

Please refer to the Disclaimers at the end of this Report
Financials Snap Shot
INCOME STATEMENT RATIOS
FY14 FY15 FY16 FY17E FY14 FY15 FY16 FY17E
Revenue 7902 8468 8516 8943 EPS 2.6 6.3 7.4 11.5
Other Income 14 146 10 10 Book Value 46.3 51.7 58.8 66.9
Total Revenue 7916 8614 8527 8954 DPS 0.6 0.7 2.2 3.4
EBITDA 493 512 679 760 Payout (incl. Div. Tax.) 23% 11% 30% 30%
EBITDA Margin (%) 6% 6% 8% 9% Valuation(x)
Depreciation 71 88 88 84 P/E 26.0 12.8 16.4 16.0
EBIT 423 424 592 676 Price / Book Value 1.5 1.5 2.1 2.8
Interest 263 309 277 274 Dividend Yield (%) 0.87% 0.88% 1.82% 1.86%
PBT 173 261 325 412 Profitability Ratios
Tax 88 100 133 144 RoE 6% 12% 13% 17%
Tax Rate (%) 1 0 0 0 RoCE 24% 20% 28% 31%
Reported PAT 67 161 192 268 Turnover Ratios
Dividend Paid 15 18 57 80 Asset Turnover (x) 1.1 1.1 1.0 1.1
No. of Shares 26 26 26 26 Debtors (No. of Days) 176 166 193 193
Inventory (No. of Days) 45 38 38 38
Creditors (No. of Days) 148 143 126 126
Net Debt/Equity (x) 0.51 0.55 0.40 0.35

BALANCE SHEET CASH FLOW
FY14 FY15 FY16 FY17E FY14 FY15 FY16 FY17E
Share Capital 51 51 51 51 OP/(Loss) before Tax 155 261 325 412
Reserves 1140 1278 1460 1648 Depreciation 71 88 88 84
Net Worth 1192 1330 1512 1700 Direct Taxes Paid 113 122 135 144
Long term Debt 603 737 602 602 Op. before WC Change 499 596 853 770
Short term Debt 1207 1308 1723 1723 CF from Op. Activity (9) 153 (51) 478
Deferred Tax 73 70 66 66 Capex 161 90 78 0
Total Capital Employed 1794 2067 2114 2302 CF from Inv. Activity (136) 125 18 0
Net Fixed Assets 992 881 860 860 Repayment of LTB 305 640 264 0
Capital WIP 18 16 12 0 Interest Paid 263 309 277 274
Debtors 3808 3853 4495 4729 Divd Paid (incl Tax) 15 17 58 80
Cash & Bank Balances 144 206 111 0 CF from Fin. Activity 132 (216) (63) (354)
Trade payables 3213 3325 2939 3087 Inc/(Dec) in Cash (14) 62 (96) 124
Total Provisions 125 122 114 114 Add: Opening Balance 146 132 194 111
Net Current Assets 1374 1668 2151 2187 Closing Balance 132 194 98 235
Total Assets 7411 7745 8138 8322

Narnolia Securities Ltd 18

Please refer to the Disclaimers at the end of this Report
BUY
MARICO 23rd March 2017

Company Update
Acquires 45% stake in Zed Life Style
CMP 285
Marico has recently agreed to acquire 45% stake in Zed Life Style for an
Target Price 330 undisclosed amount. Marico will gradually increase its stake in next two
Previous Target Price 330 years. Zed Life Style sells men grooming products in the brand name
Upside 16% `Beardo’. `Beardo’ has strong presence in the online channel and salons
Change from Previous NA and 75% of its revenue comes from online channel orders. This acquisition
will give Marico a much needed diversification of products portfolio. Marico
is present in Rs3,200 cr men’s grooming market with its men’s hair gel and
Market Data men’s deodorant under the brand name 'Set Wet'. This acquisition will help
BSE Code 531642 Marico to access the emerging niches at premium end and will enhance
NSE Symbol MARICO company’s digital marketing and social media engagement capability going
forward.
52wk Range H/L 307/235
Mkt Capital (Rs Cr) 36,795 Management’s short and medium term focus areas
Av. Volume(,000) 1260 Management is targeting 14-15% revenue growth from Indian business in
Nifty 9,030 next 5 years. The company is concentrating on 5 point agenda to improve
its business performance going forward which are innovation, go to the
Stock Performance market, cost management, talent & culture and IT. Immediate target for
1M 3M 12M Marico’s management is to get back to 10% volume growth for Indian
business. However medium term expectation for organization’s blended
Absolute 3.8 14.3 15.4
margin is 18% and Indian business margin is 20%plus.Food business is
Rel.to Nifty 2.4 2.3 -3.4 also expected to become Rs 300-500 cr in next 5 years. As far as
international business is concern, Management sees minimum15%
Share Holding Pattern-% constant currency (CC) organic growth upcoming 4-5 years.
3QFY17 2QFY17 1QFY17 Outlook and Valuation
Promoters 59.7 59.7 59.7 The company’s recent acquisition is small but a right step in right direction.
Public 40.1 40.0 40.0 This acquisition will expand company’s product portfolio in male grooming
market and will enhance company’s digital marketing capability going
Others 0.2 0.3 0.3 forward. Management is optimistic of clocking double digit volume growth for
Total 100 100 100 Saffola in medium term which gives us confidence of high single to double
digit overall volume growth for Marico going forward. On margin front,
management reiterated its previous guidance of 20% plus margin for
Company Vs NIFTY
domestic business and 18% for overall business. Presently company trades
125 MARICO NIFTY at 16 times of FY17E book value with 35% of RoE. Considering improving
120
business conditions after demonetization, better medium term volume
115
guidance for domestic business and expected recovery from international
110
business going forward, we reiterate to BUY this stock with the target price
105
for Rs 330.
100
Rs,Cr
95
Financials 3QFY17 2QFY17 (QoQ)-% 3QFY16 (YoY)-%
90
85 Sales 1417 1443 -2% 1530 -7%
80 EBITDA 272 253 8% 290 -6%
Net Profit 192 181 6% 206 -7%
EBITDA% 19% 18% 169 Bps 19% 28 Bps
Rajeev Anand PAT% 14% 13% 100 Bps 13% 9 Bps
rajeev.anand@narnolia.com
Narnolia Securities Ltd 19
Please refer to the Disclaimers at the end of this Report
Concall Highlights(Q3FY17)
• The company sees inflation led value growth going ahead.
• South and West impacted less due to demonetization.
• Company sees much better traction from Bangladesh going forward.
• Management expects recovery from MENA region in 2HFY18.
• The company expects 18% overall margin in the medium term.
• Management guided for 6-8% near term volume growth for overall business.
• The company is diversifying its products portfolio.
• GST will lead to improvement in market share for Marico going forward.
• A&P Expenses will be in the range of 10% going forward.
• In the month Jan, company witnessed 90% of its demand recovery.
• The company may initiate pricing growth for Egypt.
• In medium term, the company would be comfortable at 20%+ EBITDA margin.
• Parachute and Nihar: Despite headwinds of demonetization and steep increase in inputs costs, near term volume growth
prospects remain promising.
• Copra prices went up by 17%on sequential basis and YoY decline of 5%. The company expects the copra prices to go up further
in Q4FY17.
• Company will take prices up in near term considering the inflation in commodity prices.
Net Sales and PAT(in cr.)
2000 300
Sales(in cr) PAT(in cr)
1800 268
250
1600
229
1400 206 200
185 192
1200 181
160 153
1000 150
138
800 118 110
100
600
400
50
1623

1431

1452

1226

1750

1454

1530

1307

1754

1443

1417

200
0 0
1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17

EBITDA and PAT Margin
25.0%
EBITDA Margin% PAT Margin%
21.3%
18.9% 19.2%
20.0% 18.2% 17.5%
16.4% 16.3% 16.6%
15.7% 15.3%
13.6% 14.0% 13.4% 13.5%
15.0% 13.1% 12.5%
11.4% 11.0% 10.5% 10.6%
9.0%
10.0% 8.3%

5.0%

0.0%
1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17

Narnolia Securities Ltd 20

Please refer to the Disclaimers at the end of this Report
Financials Snap Shot
INCOME STATEMENT RATIOS
FY14 FY15 FY16 FY17E FY14 FY15 FY16 FY17E
Revenue 4687 5733 6132 5929 EPS(adjusted) 8 9 6 6
Other Income 58 59 93 101 Book Value(adjusted) 21 28 16 18
Total Revenue 4744 5792 6225 6029 DPS 2 5 4 4
COGS 2399 3119 3061 2849 Payout (incl. Div. Tax.) 29% 52% 72% 60%
GPM 48.8% 45.6% 50.1% 51.9% Valuation(x)
Other Expenses 1255 1419 1644 1537 P/E 15.7 23.1 46.5 45.1
EBITDA 748 870 1062 1148 Price / Book Value 5.6 7.2 16.1 15.7
EBITDA Margin (%) 16.0% 15.2% 17.3% 19.4% Dividend Yield (%) 1.9% 2.3% 1.6% 1.3%
Depreciation 77 84 102 96 Profitability Ratios
EBIT 671 786 961 1052 RoE 35.7% 31.4% 34.6% 34.7%
Interest 34 23 20 15 RoCE 41.6% 39.4% 45.8% 45.3%
PBT 695 822 1034 1138 Turnover Ratios
Tax 190 237 297 328 Asset Turnover (x) 1.6 1.8 1.8 1.6
Tax Rate (%) 27.4% 28.8% 28.7% 28.8% Debtors (No. of Days) 17 11 15 20
Reported PAT 485 573 725 807 Inventory (No. of Days) 121 116 110 105
Dividend Paid 142 300 522 484 Creditors (No. of Days) 39 36 40 42
No. of Shares 64 64 129 129 Net Debt/Equity (x) 0.2 0.1 0.0 0.0

BALANCE SHEET CASH FLOW STATEMENT
FY14 FY15 FY16 FY17E FY14 FY15 FY16 FY17E
Share Capital 64 65 129 129 OP/(Loss) before Tax 695 822 1,034 1,135
Reserves 1296 1760 1968 2194 Depreciation 77 84 102 96
Net Worth 1361 1825 2097 2323 Direct Taxes Paid (181) (210) (246) (328)
Long term Debt 252 169 0 0 Op. profit bef. WC changes 754 891 1,079 1,246
Short term Debt 274 165 153 140 CF from Op. Activity 660 665 833 901
Deferred Tax 10 8 10 10 Non Current investments (155) (121) (33) -
Capital Employed 1612 1994 2097 2323 Capital expenditure (785) (48) (7) (18)
Net Fixed Assets 638 590 583 565 CF from Inv. Activity (204) (179) (235) (220)
Capital WIP 4 0 0 0 Repaym of L T Borrowings (181) (83) (168) -
Debtors 223 177 252 325 Interest Paid (35) (23) (20) (15)
Cash & Bank Balances 406 205 310 382 Divd Paid (incl Tax) (142) (300) (502) (581)
Trade payables 503 564 669 682 CF from Fin. Activity (339) (625) (580) (609)
Total Provisions 86 104 115 115 Inc/(Dec) in Cash 144 (147) 17 72
Net Current Assets 777 893 967 1149 Add: Opening Balance 105 224 77 310
Total Assets 2965 3125 3433 3668 Closing Balance 224 77 91 382

Narnolia Securities Ltd 21

Please refer to the Disclaimers at the end of this Report
BUY
Kalpatru Power Transmission Ltd. 22-Mar-17

Result Update Kalapatru Power’s standalone order book stands at Rs8300 Cr at the end of
CMP 286 Q3FY17 with Rs3000 Cr plus orders in L1. Management expects to convert
Target Price 320 Rs1500-2000 Cr of L1 orders into firm order in Q4FY17. Out of the total
Previous Target Price order book, 55% comes from overseas orders and rests are from the
domestic market. Kalapatru has received its 90% of the overseas order in
Upside 12%
last six months and a company is fully ready to execute it going forward
Change from Previous
which will drive revenue growth in Q4FY17 and FY18.Management has
guided for 15-20% revenue growth in FY17, which implies more than 20%
Market Data growth in Q4FY17. The company has witnessed delay in orders from PGCIL
BSE Code 522287 but healthy traction from SEBs, Africa, and CIS countries. Management
NSE Symbol KALPATPOWER expects to win at least 2500-3000 Cr of a new order in Q4FY17. Continuous
52wk Range H/L 186/299 focus on improvement in working capital resulted in lower interest, 2.3% of
Mkt Capital (Rs Cr) 4,388 sales in 9MFY17 against 3.4% of sales in 9MFY16 and it will be around
Av. Volume 4520 2.5% of sales in Q4FY17
Nifty 9121
Strong Opportunity in Infra Segment:-
Stock Performance Currently, Infra segment (Pipeline and Railway) contributes only 10% of the
1Month 3 Month 1Year Order book but we see huge opportunity going forward especially in Railway
Absolute 1.6 21.4 48.8 segment. KALAPTPOWER has strong order pipeline of 3000 Cr and 1500
Rel.to Nifty -0.8 8.2 28.9 Cr in Railway and Pipeline business respectively. Railway Ministry has set a
target to award 2000 Km, 4000 Km and 6000 km of overhead electrification
orders in FY17, FY18 and FY19 respectively which provides huge
Share Holding Pattern-%
opportunity going forward. Shri Shubham logistics business remained
3QFY17 2QFY17 1QFY17
muted in Q3FY17 due to demonization and we do not expect significant
Promoters 59% 59% 59% improvement in it inFY17
Public 41% 41% 41%
Others 0% 0% 0%
Outlook & Valuation:-
Total 100% 100% 100%
Kalapatru’s Standalone order book remains strong and advanced stage of
Company Vs NIFTY an overseas project in transmission will help to register strong revenue
160 growth of 20% in FY17. Increasing opportunity in Railway segment can be a
KALPATPOWR NIFTY
potential growth driver going forward for the Company. Based on SOTP
140
valuation method we have valued the standalone business at Rs. 260 per
120 share and subsidiaries (JMC, SSL, Transmission BOT projects and
100
Development projects) at Rs. 60 per share. Hence, we recommend “BUY”
on the stock with target price of Rs. 320.
80

60
Financials Q3FY17 Q2FY17 Q3FY16 YoY % QoQ %
Sales 1158 1143 899 29% 1%
40
EBITDA 119 122 90 32% -2%
Net Profit 47 58 28 68% -19%
EBIDTA% 10.3% 10.7% 10.0% 30 bps (40 bps)
Sandip Jabuani PAT 4.1% 5.1% 3.1% 100 bps (100 bps)
sandip.jabuani@narnolia.com
Narnolia Securities Ltd 22
Please refer to the Disclaimers at the end of this Report
Part Book Profit
EXIDE INDUSTRIES LTD 21-Mar-17

Result Update Exide Industries Limited is well placed to take advantage of growing mobility
CMP 218 demand in the country. The company has plans to invest Rs 1,400 crore
Target Price 240 over the next two years to introduce more durable automotive batteries in
Previous Target Price 220 India. Batteries with the new technology will be initially rolled out from our
Haldia plant and gradually, other facilities will also start producing the same.
Upside 10%
Unorganized players constitute over 35% market share in the Indian battery
Change from Previous - industry and introduction of Goods and Services Tax in FY18 will play a
major role in the growth of Exide. We expect that the industrial battery
Market Data segment’s demand will pick up gradually in line with the economic
improvement going ahead. To promote eco-friendly vehicles, the
BSE Code 500086
government has been offering incentives on electric and hybrid vehicles
NSE Symbol EXIDEIND under the National Electric Mobility Mission Plan which will also boost
52wk Range H/L 225/130 demand for Exide. The nation-wide rollout of this scheme is scheduled from
Mkt Capital (Rs Cr) 1 April, 2017.
18,607
Av. Volume 2,00,169
Nifty 9,127 Result Update

Stock Performance Revenue grew by 12.6%YoY to Rs. 1729 crore in 3QFY17. The growth in
1Month 3Month 1Year top-line was supported by higher sales of Passenger vehicles and 2
wheelers segment.
Absolute 1.7 25.9 60.9
Rel.to Nifty -1.0 13.0 40.9 EBITDA Margin decreased by 230 bps YoY. Other expenses remain higher
due to sales and promotion expenses.
Share Holding Pattern-% PAT Margin decreased by 20 bps YoY. Company reported Rs.2.63 crore of
3QFY17 2QFY17 1QFY17 other comprehensive income under the new IndAS.
Promoter 45.99 45.99 45.99
Outlook and Valuation
Public 54.01 54.01 54.01
Others -- -- -- We expect that management’s strategy of cost control and technology up-
Total 100.00 100.00 100.00 gradation may improve the margin up to 100bps by 2017-18. Technological
innovation, segment branding and increased distribution reach along with
GST implementation will help the company to gain market share going
Company Vs NIFTY forward. We recommended this stock at Rs.175 for a target price of Rs.220
160 EXIDEIND NIFTY and the stock has achieved our recommended target. So we advise our
150 investors to Book Part Profit at current levels and considering the future
growth potential of the stock we revise our target and recommend fresh
140
BUY for a target price of Rs.240 and we value insurance business at Rs.19
130
per share.
120
110 Rs. In crore
100 Financials 3QFY17 2QFY17 3QFY16 QoQ YoY
90 Sales 1729 1929 1536 -10% 13%
80 EBITDA 230 293 239 -22% -4%
Jul-16

Sep-16

Feb-17
Jan-17
Dec-16
Jun-16

Aug-16
May-16

Oct-16
Nov-16
Apr-16

Mar-17
Mar-16

Net Profit 154 182 140 -15% 10%
EBIDTA% 13.3% 15.2% 15.6%
Naveen Kumar Dubey PAT % 8.9% 9.4% 9.1%
naveen.dubey@narnolia.com
Narnolia Securities Ltd 23
Please refer to the Disclaimers at the end of this Report
EXIDEIND
Investment Arguments
♦ Capex in new technology - Exide has planned to invest Rs.1400 crore over the next two years to introduce more durable
automotive batteries in India. Out of total Rs.1400 crores, Rs 700 crore has been invested in its plant at Haldia in West Bengal from
where batteries with punch-grid technology have started rolling out this year. The remaining Rs 700 crore of the planned capex will
be invested across the rest of the four automotive battery manufacturing plants over 2017-18. The plant will roll-out 1 mn batteries
and these batteries would be targeting primarily aftermarket.
♦ Technological Innovation- Exide has tie ups with technological partners like East Penn Inc. USA, Hitachi chemicals Japan,
Furukawa Battery Co.Ltd Japan which provides requisites technology to develop better products. These companies have technical
expertise in 2Ws, 4Ws and Industrial segments batteries and they provide technological edge to the Exide over its peers and
unorganized players.
♦ Market share shift towards organized from unorganized - Unorganized players constitutes over 35% market share in the
Indian battery industry.major unorganized players operate in Tractor, 3Ws and CV space. We believe that the introduction of GST
will bring down the price differential between organized and unorganized players, so there could be a prompt shift of market share
towards the organized players from unorganized players.
♦ Telecom a big opportunity- Exide has 10% market share in the telecom segment, and it is very small portion of total revenue.
The teleocom industry has started data escalation and tower companies offer immense potential for industrial batteries. So it can be
a good opportunity for Exide to capture more market share. According to the management, industrial segment should grow over
15% in next two years.
♦ Life Insurance business remains profitable for last consecutive 3 years. The company has started investing on branding and
promotion of its insurance arm to make it one of the big insurance companies of India.

Plant Location and Capacity

Capacity
Auto MC Industrial HUPS Systems
Plant Location mn units mn units Mah mn units
Shamnagar (1946) 1.6 636
Chinchwad (1969) 2.9
Haldia (1981) 2.1 1102 adding 1 mn capacity in auto space in FY17
Hosur (1997) 2.8 1086
Taloja (1998) 2.8 0.6
Bawal (2003) 8.4
Ahmednagar (2010) 8.9
Roorkee (2011) 0.5
Haridwar (2012) 0.5
Total 12.2 17.9 2824.0 1.0

Key Risk
♦ Increase in Lead prices can affect the margins because of competitive replacement market.
♦ Power defict in the country has reduced from 3.6% to 2.1% in FY16, so improving power condition in the country can hamper fast
growing inverter segment growth.
♦ Economic slowdown in the country can negatively impact both the industrial and automotive segments.

Narnolia Securities Ltd 24

Please refer to the Disclaimers at the end of this Report
EXIDEIND

Financials Snap Shot
INCOME STATEMENT RATIOS
FY14 FY15 FY16 FY17E FY14 FY15 FY16 FY17E
Revenue (Net of Excise Duty)
8309 9535 9479 10155 EPS 6.4 7.2 8.4 9.3
Other Income 73 95 135 186 Book Value 40.7 45.2 50.9 57.1
Total Revenue 8382 9630 9615 10341 DPS 2.1 2.6 2.8 3.1
COGS 4014 4652 4429 4753 Payout (incl. Div. Tax.) 33% 36% 33% 33%
GPM 48% 49% 47% 47% Valuation(x)
Other Expenses 2466 2959 2550 2742 P/E 18.9 24.6 16.6 18.9
EBITDA 862 937 1055 1152 Price / Book Value 3.0 3.9 2.7 3.1
EBITDA Margin (%) 10% 10% 11% 11% Dividend Yield (%) 1.74% 1.45% 2.02% 1.77%
Depreciation 140 155 180 211 Profitability Ratios
EBIT 721 782 875 941 RoE 16% 16% 16% 16%
Interest 8 3 2 3 RoCE 21% 20% 20% 19%
PBT 787 874 1009 1123 Turnover Ratios
Tax 241 257 292 337 Asset Turnover (x) 0.7 0.7 0.6 0.6
Tax Rate (%) 31% 29% 29% 30% Debtors (No. of Days) 29 26 28 28
Reported PAT 545 615 714 786 Inventory (No. of Days) 118 129 103 103
Dividend Paid 179 219 239 263 Creditors (No. of Days) 48 40 44 44
No. of Shares 85 85 85 85 Net Debt/Equity (x) 0 0 0 0

BALANCE SHEET CASH FLOW STATEMENT
FY14 FY15 FY16 FY17E FY14 FY15 FY16 FY17E
Share Capital 85 85 85 85 OP/(Loss) before Tax 787 874 1009 1123
Reserves 3375 3756 4245 4769 Depreciation 140 155 180 211
Net Worth 3460 3841 4330 4854 Direct Taxes Paid (235) (253) (278) (337)
Long term Debt 4 3 2 2 Operating profit before working
950capital changes
831 1298 1338
Short term Debt 30 51 109 117 CF from Op. Activity 872 180 1616 983
Deferred Tax 112 131 131 131
Total Capital Employed 3464 3844 4332 4856 Capex (158) (332) (423) (263)
Net Fixed Assets 1167 1314 1602 1654 CF from Inv. Activity (602) (56) (1351) (824)
Capital WIP 63 115 192 192 Repayment of Long Term Borrowings
(38) (2) (1) 0
Debtors 658 690 722 774 Interest Paid (8) (3) (1) (3)
Cash & Bank Balances 287 207 294 194 Divd Paid (incl Tax) (171) (223) (238) (263)
Trade payables 1101 1046 1132 1213 CF from Fin. Activity (215) (199) (182) (259)
Total Provisions 245 292 327 350 Inc/(Dec) in Cash 55 (74) 83 (100)
Net Current Assets 1365 1537 1896 1817 Add: Opening Balance 221 287 207 294
Total Assets 12494 13887 15326 16824 Closing Balance 287 207 294 194

Narnolia Securities Ltd 25

Please refer to the Disclaimers at the end of this Report
N arnolia Securities Ltd
201 | 2nd Floor | Marble Arch Bu ild ing | 236B-AJC Bose
Road | Kolkata-700 020 , Ph : 033-40501500
email: narnolia@narnolia.com,
w ebsite : w w w .narnolia.com

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should use their own judgment for taking any investment decisions keeping in mind that
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