KARV Y ||| EEE Financials Exhibit 14: Profit & Loss Statement YE Mar (Rs ma) rin NetRevenaes Da % Growth 133 Rew Material 8720 Staff 1982 (ther Expenses 7087 Total Expenditures 17,699 EBITDA 5,48 % Growth 72. [EBITDA Margins (%) 25 (Other Income 7 Interest 2 Depreciation a3 Profit Before Tax 5,199 Provision for tax 1am Effective tax rate (%) 26 Reported PAT 4.026 % Growth as) Adjusted Net Profit 4.026 % Growth 03) ‘Source: Company, Karey Institutional Research Exhibit 15: Balance Sheet YE Mar FYI Equity Share Capital 136 Reserves & surplus 3.705 Shareholders’ funds 3a Minorities interests ‘Total Debt 1 Capital Employed Saat Net fixed assets 2.632 (Cash & Cash Eg. 3951 Net Other current assets eat) Investments 21 Net Deferred tax Assets 310 Total Assets 3a ‘Source: Company, Karay institutional Fiz 26932 79 10,502 2,156 8489 2ua7 5,785 1a 215 507 15 393 5a 1a19 241 4.465 109 4.465 109 FYI2 136 4218 4354 4364 3238 5,088 asm) 18 4354 October 18,2012 Colgate Palmolive (India) FYISE 136 5129 5,265 5.268 410 2.596 632) om 121 5,268 FYE 38,150 Wa 14,509 3117 1243 29769 8.380 164 20 664 569 8476 2119 250 6.357 184 6357 184 FYME 136 6,690 6.690 3767 4079 748) aan 121 6690 FYISE a2 160 1675 3615 143n 472, 9512 135 as 78 9747 2487 250 7310 150 7310 150 FYISE 136 10,632 108 10818 3374 8.263 esn) an 12 10818STOCK BROKING KARVYiIIl YPE Mar (Rs mn) FM Exhibit 16: Cash Flow Statement Par 9 Depreciation 3a Tax (1.012) ‘Change in Wkg Cap. (2a CF from Operations 3916 Capex (209) Investments 264 CF from Investing (5) (Change in Equity . (Change in Debt 45) Dividends & others @.185) CF from Financing 6.230) ‘Change in Cash 5a ‘Sours Company, Karey Pati Exhibit 17: Key Ratios FIZ 384 393 om (40) 400 (1016) ou (202) o (6.980) G98) a FYI2 30) October 18,2012 Colgate Palmolive (India) FYISE 7252 508 (1,886) 6 5,936 (4.380) (600) 4,880) Gass 99) FYE wo @n9) us 7081 26) 00) 26) (4932) 4932) 1,383 FYE 380 FY 77 583 @as7) 163 8016 (450) (600) (650) e182) G82) 4386 FYISE a9 Raw Material Cost/Sales (%) 382 80 315: v3 25 166 1329 102, FYi2 82 319 209 mi 165 1368 1019 FYISE 82 318 74 20 167 1238 950 FYME 82 324 160 as 165 79 76 FYISE mee) ”O”~C«CSSCS YE Mar FYI Manpower CostSales (%) 85 ‘Operating & Other Cost/Sales (6) 308 Revenue Growth (1%) 133 EBITDA Margins (%) 2s Net Income Margins (%) v6 ROCE (%) 1340 ROE (%) 1048 ‘Source: Company, Karey rst Exhibit 18: Valuation Parameters YIE Mar FYI PIE () a8. BV (Rs) 282 PBV Ee) 238 EV/EBITDA (x) as. Fixed assets tumover ratio (x) 87 Net Debt/Equity (x) a9) EviSales 72. Source: Company, Karoy Institutional Research 328 376 320 386 284 83 an 64 395 313 387 318 467 264 492 254 194 101 (06) 43 38 230 795 155 166 134 (03) 36 16FMCG KARV Y || EXEEERIS Institutional Equities India Research Bloomberg: MRCO IN Reuters: MRCO.BO INITIATION REPORT October 18, 2012 BUY Adequate Scope for Improving Operational Profitability Apart from being leader in the domestic coconut oil market through Parachute brand, Marico has also balanced its revenue stream through setting up Saffola, Nihar, Hair & Care and Kaya brands over the past few years. The recently acquired personal care business of Paras Pharma would further strengthen its position in the personal care category. Besides, its global business ~ accounting for ~22% of sales — has become critical over the years through regular foray into newer geographies. With multiple drivers to rrun the business, we believe that Marico has enough scope to improve the operational profitability, going forward. We expect Marico to show 18.9% and 24% Sales and EBITDA CAGR in FY12-15E, compared to 18.5% and 18.6% CAGR in FY09-12, respectively. Robust Sales Growth Momentum to Continue: Marico has displayed robust, performance in the last four-five quarters on the back of robust volume growth performance by Parachute hair oil. Parachute volume growth in the past few quarters was even higher than the past 16 quarters average growth ‘owing to consumers shift towards the branded oil from loose oil. We believe that this robust sales growth momentum would continue and Marico should report 19% CAGR in net sales in FYI2-15E, Expect Better Operational Profitability: We expect Marico’s operational profitability would improve on account of softening of key raw material Prices, acquisition of high-margin personal care business of Paras Pharma, and better operational excellence in the international business. We expect Marico can show 24% EBITDA CAGR in FY12-15E as compared to 19% CAGR in FY09-12. Outlook & Valuation Consistent addition of products/categories and focus on all brands have enabled Marico to reduce high dependence on Parachute franchise. Assuming 24xP/E (at PEG of 1x which is average of past 5 years) on 24- month forward earnings, we initiate coverage on the Company with “BUY” recommendation with a target price at Rs. 231 per share having 13% upside potential Key Financials YEMar (Rs ma) nA AGE AME SE Revere 3200S EBITDA 4098 48M 68627898 9.806 Net Profits (Ad) ee EPS (Rs) 43 52 70 4105 PER @) W200 87 2 M988 PIBV ) Bs 10 64 53 4B EVIEBITDA Oy) 9267 67136 “Seance Company Karey Isto Research Recommendation Cor: “Target Price: Rat Re Stock Informat Market Cap. Rs ba / USS may Baas ‘s2-eek High/Low (Rs) 2unse 3m ADV (Rs mn (US$ mn) sn Beta 05 Sensex! Nifty 18,6115,560, ‘Share outstanding (mn) 615 Stock Performance (%%) IM aM Ta VID Absolute 40 4-1 404 ReltoSensex 36 15 209166 Performance 19,500 220 200 17500 is iy 340 PSSEE22232 2858232532 Source oomberg, Karey Dnstitutonal Research 1 Year Forward EV/EBITDA B » 1» Source Bloomberg Karey Institutional Research Analysts Contact Naveen Trive 022-6184 4316 naveen trivediekarvy.com For Private Gclation only. Far important information about Kew! rating sysem and ether dlselosures refer to the end of this material Karvy Stock Broking Research aso available on: Bloomberg -KRVY , Thomson Publisher & Reuters.