FOREWORD

The "Gosh, I should have sold all my equity investments by the end of 2007." This is

Equitymaster
the lament that perhaps even the most seasoned investor has with respect to the
Indian equity markets currently. Indeed, everything that could go wrong with the
equity markets had begun to go wrong by the end of 2007.

Stock Valuations were looking stretched, commodities were breaking new highs every-
day and the liquidity was getting contracted, thanks to the US subprime mess.

Market
The writing was clearly on the wall. However, as is said so often by Warren Buffett,
in investing, the rear view mirror always looks clearer than the windshield. The
windshield view at the time the year 2008 started was full of rosy projections and

Yearbook multi-bagger ideas. But the rear mirror view now is nothing but that of huge hypes
and majestic myths. Between the time the view changed, billions of dollars of

2009
Project Coordinator
Dhanesh Soni
Data Coordinator
Hamid Hussain
Research Team
Abhijeet Kumar
Chetan Bhakkad
Devanshu Sampat
Hiral Shah
Nivedita Joshi
Radhika Nabar
Rahul Shah
Satyajeet Mishra
Taha Merchant
Tanushree Banerjee
Vishal Khandelwal
Copyright
Equitymaster Agora Research Pvt. Ltd.
Content Provided by
Equitymaster Agora Research Pvt. Ltd.
15 Khetan Bhavan, 3rd Floor,
198, Jamshedji Tata Road,
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wealth went up in smoke.
It is time to look at the windshield once more. And in doing so, Let us take a view
that is detached from the happenings on Dalal Street. The detached view, we be-
lieve, is quite encouraging. In recent times, India has emerged as one of the fast-
est growing economies in the world and there aren't many compelling reasons
around that would make us believe otherwise. India's billion plus population is
home to the youngest workforce in the world. As humanity of such large propor-
tions enters its workforce, the resulting surge in productivity and per capita income
can only be imagined. The result? A stupendous increase in consumption goods!
Supplementing the consumption boom and making up the other half of the great
Indian story is its relatively unknown but equally big US$ 500 bn investment plan.
Thus, with both consumption and investment wheels of the Indian economy chug-
ging along nicely, GDP growth in the region of 7% should not be a problem and this
should also lead to buoyancy in corporate profits. Hence, the present valuation
levels and corporate India's growth prospects shall position an investor nicely if he
were to invest at current levels taking a 2-3 year perspective.
To help you in your endeavor of researching for good quality stocks, we have come
out with this latest edition of our annual Stock Market Yearbook. This edition, like
our previous editions has much more in terms of content and quality of presenta-
tion. Other than providing detailed fact sheets on 200 Indian companies, we have
given added weight to global comparisons. We're releasing the book in October;
that means we finalised companies we were covering in early September. This has
its pros and cons. The main advantage of course is that you get your copy of
Yearbook a little sooner! The downside is that due to the non-availability of annual
reports, despite our best efforts, a few companies that we would have liked to cover
have not made it to our list this year. Having said that we did manage to cover
'nearly' all the companies that we wanted to.
We are certain that you will benefit from the Yearbook, as you have in earlier years.
With enhanced coverage we hope that you benefit a lot more!
Do write in to us with your suggestions and feedback on not only the Yearbook but
also all that we do at Equitymaster. Simply send us an email at
info@equitymaster.com. We will be delighted to hear from you.
Happy investing!
October, 2008
Mumbai
1
 CONTENTS
FOREWORD 1 BLUE STAR 83 HDFC 158
BSE INDEX 4 BOSCH 35 HDFC BANK 60
BSE REPLICA 5 BRITANNIA 72 HDIL 118
ECONOMY 6 CADILA HEALTH. 199 HEXAWARE 242
FINANCIAL PLANNING 8 CANARA BANK 58 HINDALCO 28
GLOSSARY 13 CASTROL 140 HINDUSTAN ZINC 183
EQUITYMASTER 200 RANKINGS 18 CESC 216 HOTEL LEELA 153
COMPARATIVE STANDINGS 22 CIPLA 200 HT MEDIA 171
SUMMARY OF THE CMC 239 HUL 129
EQUITYMASTER 200 24 COLGATE 127 ICICI BANK 61
CONTAINER CORP. 180 ICRA 184
COMPANY STUDIES CORPORATION BANK 59 IDBI BANK 62
3I INFOTECH 238 CRISIL 181 IDFC 160
ABB 78 CROMPTON GREAVES 84 INDIA CEMENTS 108
ACC 106 CUMMINS 85 INDIA INFOLINE 159
ADITYA BIRLA NUVO 133 DABUR INDIA 73 INDIAN HOTELS 154
ADLABS FILMS 168 DABUR PHARMA 201 INDRAPRASTHA GAS 143
AKRUTI CITY 114 DISHMAN PHARMA 202 INFO EDGE 243
ALFA-LAVAL 79 DIVI'S LAB 203 INFOSYS 244
ALSTOM PROJECTS 80 DLF 115 ING VYSYA BANK 63
AMBUJA CEMENTS 107 DR. REDDY'S 204 ITC 136
ANDHRA BANK 53 E.I.D. - PARRY 134 JAGRAN PRAKASHAN 172
APOLLO HOSPITALS 179 EDELWEISS 157 JAIPRAKASH ASSO. 119
APOLLO TYRES 32 EDUCOMP 240 JAIPRAKASH HYDRO 218
AREVA T&D 81 EICHER MOTORS 45 JSW STEEL 258
ARVIND 271 EIH 152 JYOTI STRUCTURES 89
ASAHI INDIA GLASS 33 EMCO 86 KALPATARU POWER 91
ASHOK LEYLAND 43 ENIL 170 KANSAI NEROLAC 194
ASIAN PAINTS 192 ESSEL PROPACK 182 KEC INTERNATIONAL 90
AVENTIS PHARMA 197 EXIDE INDUSTRIES 36 KOTAK MAHINDRA BANK 64
AXIS BANK 54 FINOLEX CABLES 87 KSB PUMPS 92
BAJAJ AUTO 44 G.E. SHIPPING 232 LARSEN & TOUBRO 94
BAJAJ HINDUSTHAN 262 GAIL (INDIA) 141 LIC HOUSING FINAN. 161
BALAJI TELE 169 GEOMETRIC 241 LMW 93
BALRAMPUR CHINI 263 GMR INFRA. 116 LUPIN 206
BANK OF BARODA 55 GODREJ CONSUMER 128 M & M FIN. SERVICES 162
BANK OF INDIA 56 GRASIM 135 MADRAS CEMENTS 109
BANK OF MAHARASHTRA 57 GREAT OFFSHORE 233 MAHINDRA & MAHINDRA 46
BERGER PAINTS 193 GSK PHARMA. 205 MAHINDRA LIFESPACE 120
BHARAT BIJLEE 82 GUJARAT GAS 142 MARICO 130
BHARAT FORGE 34 GVK POWER 217 MARUTI SUZUKI 47
BHARTI AIRTEL 266 HAVELLS 88 MERCATOR LINES 234
BIOCON LIMITED 198 HCC 117 MERCK 207
2
 CONTENTS
MID-DAY 173 SBI 67 SECTOR STUDIES
MINDTREE 245 SESA GOA 188 ALUMINIUM 26
MOSER BAER 185 SHOPPER'S STOP 227 AUTO ANCILLARIES 30
MOTHERSON SUMI 37 SHREE CEMENT 110 AUTOMOBILES/VEHICLES 41
MOTILAL OSWAL 163 SHRIRAM TRANS. FIN. 165 BANKING 51
MPHASIS 246 SIEMENS 98 BEVERGES, FOOD & TOBACCO 70
MUNJAL SHOWA 38 SINTEX INDUSTRIES 137 CAPITAL GOODS 76
NAGARJUNA CONST. 121 SKF INDIA 40 CEMENT 104
NAVNEET 186 STERLITE INDUS. 29 CONST. & REAL ESTATE 112
NESTLE 74 SUN PHARMA 212 CONSUMER PRODUCTS 125
NEYVELI LIGNITE 219 SUN TV NETWORK 174 ENERGY SOURCES 138
NIIT 247 SUZLON 99 HOTELS 150
NIIT TECH. 248 TAJ GVK 155 INVESTMENT & FINANCE 156
NOVARTIS 208 TATA CHEMICALS 148 MEDIA 166
NTPC 220 TATA COMM. 268 PAINTS 190
OBC 65 TATA MOTORS 49 PHARMACEUTICALS 195
ONGC 144 TATA POWER 223 POWER 214
ORACLE FIN. (prev I-FLEX) 249 TATA STEEL 260 RETAIL 225
PAPER PRODUCTS 187 TATA TEA 75 SHIPPING 230
PATEL ENGG. 122 TCS 253 SOFTWARE 236
PATNI 250 TECH MAHINDRA 254 STEEL 256
PETRONET LNG 145 THERMAX 100 TELECOM 264
PFC 164 THOMAS COOK 189 TEXTILES 269
PFIZER 209 TITAN INDUSTRIES 228
PIDILITE 131 TORRENT POWER 224
PIRAMAL HEALTH. 210 TRENT 229
PNB 66 TVS MOTOR 50
PRAJ INDUSTRIES 95 ULTRATECH CEMENT 111
PRATIBHA INDUS. 123 UNION BANK 68
PRICOL 39 UNITECH 124
PTC 221 UNITED PHOSPHORUS 149
PUNJ LLOYD 96 UTV SOFTWARE 175
PUNJAB TRACTORS 48 VARUN SHIPPING 235
RANBAXY 211 VOLTAMP TRANS. 101
RAYMOND 272 VOLTAS 102
RELIANCE COMM. 267 WELSPUN GUJ. STAHL 103
RELIANCE 146 WIPRO 255
RELIANCE INFRA. 222 WOCKHARDT 213
SAIL 259 YES BANK 69
SANGHVI MOVERS 97 ZEE ENTERTAINMENT 176
SASKEN COMM. 251 ZEE NEWS 177
SATYAM 252

3
 SENSEX
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
21,000

18,000

15,000

12,000

9,000

6,000

3,000

0
Jan-98 Mar-00 Apr-02 Jun-04 Jul-06 Sep-08

EVENTS BSE - Sensex

1 11/12th May 1998, Boom! India goes nuclear, US imposes economic sanctions 3,945

2 30th September 1998, UTI-64 scam breaks out 3,102

3 March 11, 1999, Infy - the first Indian ADR listed on Nasdaq 3,674

4 July 12, 1999, Pak led insurgency in Kargil ends after 50 days 4,586

5 March - April 2000, US markets fall sharply, tech bubble burst 4,745

6 July 2, 2001, Badla goes, Options in, rolling settlement commences, UTI bans US-64 redemptions 3,426

7 September - December, 2001, Terrorist attacks on WTC, Indian parliament. RBI cuts CRR by 2% 2,600

8 March 2003, US attacks Iraq, SARS engulfs South East Asia 3,193

9 May 17, 2004, Black Monday - NDA looses general elections 4,505

10 May 22, 2006, Bloodbath on Dalal street as markets hit lower circuit, trading suspended for an hour 10,482

11 February 28, 2007, Union Budget proposals fail to raise markets battered by global meltdown fears 12,938

12 August 16, 2007, Turmoil in the US mortgage markets leads to meltdown in global equity markets 14,358

13 8 Jan 2008, Sensex breaches the 21,000 mark for the first time ever 20,873

14 21 Jan 2008, Fear of US economy entering recession leads to huge FII selloff 17,605

15 16 July 2008, Political uncertainty surrounding the no-confidence vote, Sensex closes below 13,000 12,576

4
 A REPLICA OF BSE-30 INDEX
1 US$ = 48.85 No of Price as on Market Market Weight in Earnings EPS P/E
Company Industry shares 21st October 2008 Cap* Cap Index TTM TTM TTM
(m) (Rs) (Rs m) (US$ m) (%) (Rs m) (Rs) (X)

ACC CEMENT 187.7 486.8 91,339 1,870 0.6 13,075 69.7 7.0
BHARTI AIRTEL TELECOM 1,898.2 723.6 1,373,460 28,116 8.8 71,378 37.6 19.2
BHEL ENGINEERING 489.5 1,144.3 560,131 11,466 3.6 29,548 60.4 19.0
DLF CONSTRUCTION 1,704.8 286.3 488,094 9,992 3.1 78,558 46.1 6.2
GRASIM DIVERSIFIED 91.7 1,209.0 110,834 2,269 0.7 22,351 243.8 5.0
HDFC FIN. INSTITUTIONS 284.0 1,976.9 561,440 11,493 3.6 24,361 85.8 23.0
HDFC BANK BANKING 354.6 1,088.2 385,876 7,899 2.5 15,901 44.8 24.3
HIND. UNILEVER FMCG 2,178.0 251.7 548,198 11,222 3.5 19,786 9.1 27.7
HINDALCO ALUMINIUM 1,226.5 64.4 78,925 1,616 0.5 29,593 24.1 2.7
ICICI BANK BANKING 1,112.6 431.1 479,642 9,819 3.1 41,577 37.4 11.5
INFOSYS SOFTWARE 573.6 1,348.4 773,362 15,831 5.0 48,820 85.1 15.8
ITC FMCG 3,769.0 169.0 636,773 13,035 4.1 30,858 8.2 20.6
JAIPRAKASH ASSO. MISC 1,173.8 78.7 92,374 1,891 0.6 5,973 5.1 15.5
L&T ENGINEERING 584.8 861.1 503,581 10,309 3.2 22,990 39.3 21.9
M&M AUTO 239.5 408.5 97,847 2,003 0.6 10,715 44.7 9.1
MARUTI SUZUKI AUTO 288.9 677.2 195,649 4,005 1.3 16,971 58.7 11.5
NTPC POWER 8,246.0 152.2 1,254,629 25,683 8.1 75,080 9.1 16.7
ONGC ENERGY SOURCES 2,138.9 788.9 1,687,250 34,539 10.9 198,723 92.9 8.5
RANBAXY PHARMA 373.2 262.5 97,946 2,005 0.6 5,549 14.9 17.7
REL. INFRA POWER 231.5 505.7 117,052 2,396 0.8 10,258 44.3 11.4
RELIANCE PETROCHEMICALS 1,453.6 1,397.0 2,030,679 41,570 13.1 157,410 108.3 12.9
RELIANCE COMM. TELECOM 2,063.8 258.2 532,873 10,908 3.4 56,929 27.6 9.4
SAT YAM SOFTWARE 684.7 317.5 217,351 4,449 1.4 18,573 27.1 11.7
SBI BANKING 631.4 1,489.3 940,312 19,249 6.1 67,292 106.6 14.0
STERLITE IND. DIVERSIFIED 708.5 294.7 208,793 4,274 1.3 44,075 62.2 4.7
TATA MOTORS AUTO 385.7 247.8 95,547 1,956 0.6 18,188 47.2 5.3
TATA POWER POWER 220.8 789.6 174,329 3,569 1.1 8,702 39.4 20.0
TATA STEEL STEEL 730.8 278.3 203,376 4,163 1.3 85,457 116.9 2.4
TCS SOFTWARE 978.6 561.1 549,092 11,240 3.5 51,133 52.3 10.7
WIPRO SOFTWARE 1,461.0 296.4 433,053 8,865 2.8 34,651 23.7 12.5
36,466.0 15,519,810 317,703 100.0 1,314,475

TTM = trailing twelve months Avg P/E 11.8

* Indicates total market cap (and not free float). The weightage is calculated on the basis of this total market cap. BSE Index 10,683
5
 THE ECONOMY IN PICTURES
After having been to the IMF with a begging bowl in 1991, India
was finally in a position to see her currency appreciating in
2007. Thanks to the partial capital account convertibility, flows
of foreign exchange were no longer suspect. In that easier
environment, investors interested in participating in the India
boom story were fast trickling in. Indian companies also were
able to lower their costs by raising money in dollars. However,
the global financial crisis that assumed gargantuan proportions
in the early part of this year saw a steady flight of dollars back
to the home country. As liquidity strapped financial institutions,
particularly in the US, tried their best to raise additional capital,
emerging markets like India no longer enjoyed the favour of
foreign institutional investors. Further, the mounting fuel import
bill and India's deteriorating budgetary deficit position also
inflicted pressure on the rupee.
Source: CMIE; * 9 month data

After showing some signs of easing off in the last fiscal, the
inflation numbers sent jitters down the spine of the politicians
as well as the monetarists, as the Consumer Price Indices (India
has four of them) tread closer to their decade highs in 2008. A
good agricultural season in FY08 coupled with farm loan waiver
and higher international prices for all commodities, however,
kept the pressure low on agricultural labourers. Prices of
commodities across the board went up as capacities were
being fully utilised. With newer capacities in the pipelines, a
much better agricultural season and liquidity tightening by the
RBI, the inflation rate may cool off to higher single digits by
FY09. However, the real inflation must be way higher than the
rates shown here as the impact of the 12.5% service tax is not
captured. No index accounts for any services utilized by the
consumers. It is high time the indices were made to reflect a real
consumption basket. Source: Ministry of Labour

The Government of India continued to stick to its guard with

regard to the FRBM targets in this year's budgetary speech.
However, the same seem to be far from its reach this fiscal.
Although buoyant tax collections have once again have led to
the improvement in the quality of the fiscal deficit, the existence
of revenue deficit indicates that a large part of the borrowings
by the Government is not being used for financing public
investment. The Prime Minister's Economic Advisory Council has
infact cautioned of 'serious fiscal risks' and inability to meet the
fiscal deficit targets due to adverse global economic
environment, widening current account deficit and subsidy bills.
It has added that the risks were arising from growing off-budget
liabilities estimated to touch 5% of GDP by FY09.

Source: Ministry of Finance BE - Budgeted estimate; RE - Revised estimate

A great deal has been written about India's low cost manpower
and its impact on the economy's future development. However,
as the finances fell short, the government spent less and less
on education (less than 4% of GDP), one of its primary
concerns. So today, we have some 36% of India's workforce
made up of illiterates. With almost no emphasis on vocational
education, the literates too have to be trained again. Thankfully
data post-2000 shows a marked change in the way the current
generation is shaping up. Enrolments for higher education are
five times the number graduated in 2003. And better still more
than a million students enrolled for polytechnic courses. The
institutions of higher learning too have shown a smart growth
thanks to more private participation in education.

Source: Dept. of Education, 2003

6
 THE ECONOMY IN PICTURES
India's growth story for the last few years is based on a
scenario where despite the government incurring deficits, the
monetary policy remained benign. Interest rates were low
enough to help pull the capital formation numbers from the red
they had descended into in 2003. Lower interest rates fueled
a demand for housing and construction, which was among the
fastest growing sectors in the GDP. This spawned a demand led
r e s u r r e c t i o n o f t h e I n d i a n i n d u s t r y, w h i c h a l s o i n c r e a s e d
c a pa c i t i e s i n a m a j o r w a y. A s g r o w t h s t u m b l e s u p o n p o o r
infrastructure, India's next spurt in GDP will happen when
capital formation in power stations, coalmines and roads
improve. A good agricultural season notwithstanding, a
continuous 9%+ GDP growth needs about Rs 5,800 bn to be
invested annually in building steel plants and ship yards along
Source: RBI with the power plants and roads.

The investment demand in India grew at a strong pace between

FY03 and FY07 as seen by the growth in the capital goods
i n d u s t r y. T h i s , h o w e v e r, s l o w e d d o w n m a r g i n a l l y i n F Y 0 8 .
Inflation's rise to 13% levels forced the central bank to raise
interest rates, which is likely to lead to a slight slowdown going
forward. Having said that, both the government and the Reserve
Bank of India have tried to maintain a balance between
sustaining growth and curbing inflation in recent times. This will
continue to fuel India's investment boom and thus industrial
growth in the long term. However, any upside to IIP growth will
come from new capacities going on line and a lowering of
interest rates.

Source: CMIE

If one closely looks at a time series of the staff costs of Indian

companies, they show a singular trend upwards. There is
manpower available, of the right age (15 to 59), and willing to
work. For the 48% of the total population of 585 m people in the
working age group that are employed, there are 20% who are
unemployed, or under employed especially in agriculture or
household industries. These 116 m, unfortunately, have the
very basic of skills. A major adult education programme targeted
towards improving vocational skills of this section of population
will go a long way towards improving the manpower crisis that
seems to hover around Indian industry.

Source: Census 2001

Reserve money is the measure of high-powered money created

in an economy; that is to say, it is the new money that is printed
annually. The Reserve Bank of India's actions determine the
quantum of this annual accretion. The origin of money supply in
India has gradually shifted from being a fiscal policy led number
to an exchange rate policy determined figure. On one hand the
RBI grappled with huge inflows as India was suddenly
discovered by the global 'smart-set' of investors, and on the
o t h e r, a s t o o m u c h n e w m o n e y f l o a t e d a r o u n d , d o m e s t i c
inflation reared its head. In 2008 though, inflation has reached
record highs largely due to firm crude prices and rising food
prices. The subprime crisis in the global markets and slowdown
in economic growth led to a meltdown in stockmarkets around
the world and India was not spared either as FIIs relentlessly
Source: RBI; * Upto June
pulled out money from Indian equities.

7
 5 MUTUAL FUND MYTHS DEBUNKED!
Mutual funds have witnessed a marked growth in popularity over
the past few years. Statistics reveal that retail investors have
increasingly warmed up to the idea of investing in mutual funds.
However this has given rise to its own set of not-so-pleasant
trends. It can be safely stated that there is a large amount of
disinformation about mutual funds doing the rounds. And when
investors act on such flawed information, it leads to incorrect
investment decisions. In this article, we debunk 5 popular mu-
tual fund myths.
1. Equity funds do invest upto 35% in debt
Equity funds are commonly known to take on the mandate to
invest upto 35% of their assets in debt and money market in-
struments. This in turn leads investors to believe that the fund
manager intends to use asset allocation as a strategy for deliv-
ering growth i.e. investors expect the fund to capitalise on op-
portunities from both the equity and debt markets.
However in reality, most equity funds rarely use the mandate to
invest in debt. In other words, the intention is to be a 'true blue'
equity fund that is almost entirely invested in equity instruments
at all times.
Equity funds (if at all) invest a smaller portion of their corpus in
debt and that to only with the intention of cutting losses in a
falling equity market. Clearly, benefiting from investment oppor-
tunities in the debt markets, by being invested therein at all times
is not the intent. Investors who intended to invest in an 'asset
allocation' kind of fund are likely to be disappointed by their eq-
uity fund.
The learning: Investors looking to invest in 'asset allocation'
funds should consider investing in hybrid funds like balanced
funds (usually 65% in equities and balance in debt) or Monthly
Income Plans - MIPs (usually about 20% in equities and bal-
ance in debt).
2. Funds with more stars/higher rankings make better buys
Often investors make their investment decisions based on the
fund's ranking or the number of stars allotted to it. Fund rankings
and ratings have gained popularity over the years; a higher rank-
ing/rating is construed as a sign of the fund being a good invest-
ment avenue. Sadly, what investors fail to realise is that often
rankings/ratings are based only on the past performance on the
net asset value (NAV) appreciation front; only some rankings/
ratings consider factors like volatility and risk-adjusted perform-
ance. Secondly, rankings/ratings are known to change over a
period of time in line with a change in the fund's performance.
Does that mean investors should start buying and selling a fund
in line with a change in its ranking/rating?
More importantly, fund rankings/ratings operate on the rationale
that one-size-fits-all. They fail to reveal who should invest in the
fund. For example, if an aggressively managed sector fund
notches the highest ranking based on performance, will it make
an apt fit in a risk-averse investor's portfolio? Clearly not! How-
ever, fund rankings and ratings do not convey this to the investor.
8
The learning: At best, rankings and ratings can serve as starting
points for identifying a broader set of "investment-worthy" funds.
But investing in a fund, based solely on its ranking/rating would
be inappropriate. Instead, investors should engage the serv-
ices of a qualified and experienced financial planner, who can
help in selecting funds that are right for them.
3. Once a fund house makes the grade, so do all its funds
"One swallow does not make a summer" goes the proverb. Simi-
larly, just because a fund house makes the grade, it doesn't
necessarily mean that all its funds are worth investing in. Typi-
cally, for a fund house to make the grade, it should be governed
by a process-driven investment approach; also it must have a
track record of delivering and safeguarding investors' interests
at all times.
Investors often make the mistake of confusing the fund for its
fund house i.e. they assume that simply because a fund be-
longs to a given fund house, it's worth investing in. Such an
investment approach is far from correct. It is not uncommon to
find funds (from quality fund houses) that have either lost focus
on account of persistent change in positioning or have fallen out
of favour with the fund house itself, on account of their lacklustre
investment themes. The result of the neglect (on the fund house's
part) is visible in the fund's performance. Despite being exposed
to the best of investment processes, such funds fail to deliver.
The learning: While the importance of the fund house is indis-
putable, the same shouldn't be seen as certification for every
fund it offers. After passing muster at the fund house level, each
fund must also prove its own worth, in terms of its investment
proposition and track record across parameters.
4. A fund invests in the same stocks as its benchmark index
A number of investors believe that a mutual fund always invests
in the same stocks that constitute its benchmark index. For ex-
ample, if the BSE Sensex is the benchmark index for a fund, then
it is expected to invest in the same 30 stocks that form the BSE
Sensex. This is true only in the case of index funds i.e. passively-
managed funds that attempt to mirror the performance of a cho-
sen index. In all other cases i.e. in actively managed funds, the
fund manager is free to invest in stocks from within the index
and without.
The benchmark index only serves the stated purpose i.e.
benchmarking. It offers investors the opportunity to evaluate the
fund's performance. Generally, a fund's success is measured in
its ability to outperform its benchmark index. Secondly, the bench-
mark index also aids in 'broadly' understanding the kind of in-
vestments the fund will make. For example, a fund benchmarked
with BSE Sensex or BSE 100 would typically be a large cap-
oriented fund, while one benchmarked with S&P CNX Midcap is
likely to be a mid cap-oriented fund.
The learning: Don't expect a fund to invest in the same stocks as
its benchmark index. While the benchmark index can prove handy
in evaluating the fund's performance, it certainly need not form
the fund's investment universe.
 5 MUTUAL FUND MYTHS DEBUNKED!
5. The growth option is better as it delivers higher returns
While investing in a mutual fund, investors can choose be-
tween the growth and the dividend options; furthermore, within
the dividend option, they can select either the dividend payout
(wherein the dividend is paid to the investor) or the dividend
reinvestment (wherein the dividend is used to buy further units
in the fund, thereby enhancing the investor's holdings) options.
A common misconception is that, opting for the growth option is
better, since it delivers higher returns. This fallacy is rooted in
the difference between the NAVs of the growth and dividend
options. Investors expect the dividends declared till date to ac-
count for the difference between the two NAVs. On finding that
the difference between the two NAVs is greater than the divi-
dends declared, the conclusion drawn is that the growth option
is better.
9
Once a dividend is declared, the dividend option's NAV falls to
the extent of the dividend declared. Beyond that point, the growth
and dividend options continue to grow at the same rate (as-
suming that both options have the same portfolios). However
since the growth rate is being applied to different bases (higher
NAV for growth vs. lower NAV for dividend), the eventual results
(read NAVs) are different. For example, assume a 25% growth
being applied to a Rs 15.00 growth option NAV and a Rs 14.00
dividend (after a 10% i.e. Re 1.00 dividend has been paid) NAV.
The resulting NAVs would be Rs 18.75 (for growth) and Rs
17.50 (for dividend); the difference between the NAVs being Rs
1.25 which is greater than the Re 1.00 dividend declared.
The learning: Don't select the growth option assuming that it
will offer better returns. Instead, the investor's need for liquidity
and his investment objective should play a role in deciding
which option is chosen.
Source: www.personalfn.com
 CASE STUDY: A MUTUAL FUND INVESTOR IN PANIC MODE
With equity markets running into rough weather, the resolve of
even the most steadfast investors has been tested. And rightly
so. When equity markets were surging northwards, not many
would have foreseen such a drastic turnaround. Now, its rather
commonplace to find investors in panic mode. We recently in-
teracted with such an investor. His panic was the result of acting
on half-baked information and poor execution of right ideas.
Since the case entails some common investment mistakes,
knowing more about the same can prove beneficial for inves-
tors across the board.
Facts of the case
Rajiv (name changed to protect the client's identity) is a 35-
Yr old software professional. His family comprises of his
wife and 3-Yr old son.
Among other objectives, Rajiv wants to accumulate a cor-
pus to provide for his son's education. He has set himself
an investment horizon of 15 years.
To begin with, Rajiv has started investing in the Public Provi-
dent Fund (PPF); the intention being that the maturity pro-
ceeds would be exclusively used for his son's education.
Given the 15-Yr time frame, it is apparent that Rajiv under-
stands the importance of being invested in equities for the
long-term. He chose the mutual funds route to make equity
investments. He has been investing in mutual funds since
2006.
Panic sets in
Barring the past few months, Rajiv has seen his mutual fund
investments flourish, thanks to the rising equity markets. Now
with the tide turning, Rajiv has second thoughts about his in-
vestments. Also, he is perturbed by the fact that his investments
have fallen much harder than the markets (indices) and most
other equity funds. Rajiv's panic stems from being aware of the
fact that, he runs the risk of not being able to provide for his
child's education as intended.
Problem areas and solutions
When Rajiv approached us, we realised that the lackluster per-
formance of his mutual fund investments, was just one among
several problems that he had to deal with.
Let's begin with the objective of providing for his son's education.
While Rajiv got the part about setting an investment objective
right, he failed to quantify it in terms of the amount that he needs
to accumulate and a definite investment plan to achieve the
same. In other words, he had not targetted an amount for his
child's education and worse, he had no idea how the same
would be accumulated. The result - investments made in a
haphazard manner.
The solution - Personalfn's team of financial planners helped
Rajiv arrive at an approximate sum of money (based on interac-
tions with him and his spouse) that would help provide for the
10
child's education. This was followed by drawing an investment
plan to achieve the stipulated sum over a 15-Yr period.
Now for the mutual fund portfolio. While Rajiv understood the
importance of equities and made the right choice in terms of the
investment avenue - mutual funds, his selection of funds was
flawed. Rajiv's portfolio was dominated by thematic/sector fund
new fund offers (NFOs). Diversified equity funds with a proven
track record accounted for only a minor portion of the portfolio.
Ideally, the allocation should have been the reverse. The unique
investment proposition offered by thematic/sector funds and their
high risk-high return nature was lost on Rajiv. Expectedly, the
poor showing of his portfolio in the wake of market volatility be-
came an overbearing concern.
The solution - The investment plan we prepared for Rajiv will
come into play at this stage. We recommended equity funds that
were right for him i.e. ones that can help him achieve his stated
goal. We also recommended how he could rejig his portfolio in
a staggered manner. Of course in the new scheme of things, the
systematic investment plan (SIP) route of investing is expected
to play an important role, instead of lump sum investing, which
was Rajiv's preferred investment style.
Rajiv's plan of being invested in both PPF and mutual funds (i.e.
across asset classes) was a good one. However, he was una-
ware of the allocations to be made to the avenues. As a result,
the investments were made in a random manner.
The solution - Based on the investment plan drawn, we helped
Rajiv with allocation levels for both the investment avenues. Also,
going forward, we will advise him on modifying the allocation
levels and introduce new investment avenues as well when the
target date approaches.
Finally, the biggest problem that Rajiv faced was his imperfect
understanding of equity investments. While Rajiv was aware of
the potential of equity investments over the long-term, he failed
to appreciate the high risks that equities could expose investors
to over shorter time frames. Having seen equity markets rise
almost secularly over the last few years, Rajiv (like several other
investors) was never exposed to the downside (read risks) of
equities. Therefore, the present volatile phase resulted in Rajiv
being caught wrong-footed and hence, the panic. It can be safely
stated that as a result of our interactions, Rajiv has transformed
from a panic-stricken investor into an informed one, with better
control of his finances.
In conclusion
Rajiv was afflicted by problems like a random investment style
(lack of a defined investment plan), absence of a core invest-
ment portfolio (investments unsuitable for him) and investments
based on half-baked information, all of which are commonly
observed investment mistakes. The result was that even the
best of intentions came undone. Investors on their part would do
well to steer clear of such investment mistakes, so that they stay
on course to achieve their financial goals.
Source: www.personalfn.com
 WHEN THE BEST COULD BE THE WORST!
Now that seems like an erroneous statement, doesn't it? A typo
perhaps? You might be tempted to say, how can the 'best' ever
be the 'worst'? But in the domain of mutual funds, it's possible.
The best (read the best performer on the NAV appreciation front)
could well be the worst (read a bad investment that is grossly
unsuitable for you).
There's something about a top-performing fund. The glowing
reviews, self-congratulatory advertisements by the fund house
and a host of stars (read ratings) and awards. It's a pretty heady
mix. The fund makes a case for itself in the strongest possible
manner. But scratch the surface and a different picture could
emerge.
Don't get us wrong. We aren't suggesting that there is necessarily
something wrong with every top-performing fund. However, the
possibility of everything not being in order cannot be ruled out
either. Sadly, the NAV performance in isolation presents a one-
dimensional picture i.e. it may conceal more than it reveals. In
this article, we make a case for looking beyond just the NAV
performance by listing instances, when top-performing funds
could potentially be bad investments.
1. Funds taking on higher risk in a rising market
In a rising market, the more risk a fund takes on, the better
performance it is likely to deliver. Dabbling in the season's flavour
is one strategy that almost never fails. The fund could do so by
taking sectoral bets i.e. holding a disproportionately high portion
of its portfolio in a single sector or theme; similarly, stock bets
i.e. making a higher than warranted allocation to individual stocks
is another method. In a rising market, it is not uncommon to see
diversified equity funds sacrifice their 'diversified' nature at the
altar of performance.
However, the strategy of taking on high risk to deliver an
impressive showing works best during an upturn. When the tide
turns, such funds can find themselves in a rather unenviable
situation. They are likely to be the worst hit in terms of volatility.
The learning: Dig deeper into a top-performing fund's investment
style and portfolio; find out how it delivered the impressive
performance. If the fund was just banking on a high risk strategy
on the back of rising markets, there might be a case for giving it
a miss, especially if the fund doesn't match your risk profile.
2. Bull-run wonders
Continuing with the first point, there are some funds whose
existence coincides with a bull-run. For instance, in the domestic
context, there are several equity funds launched in early 2005,
which until recently enjoyed a virtually secular bull-run. These
funds have an impressive track record to show for on the returns
front, but are untested as far as performing over a prolonged
bear phase is concerned. And the latter is an integral test in
determining if the fund makes the grade as a worthy investment
avenue. Such funds run the risk of ending up as 'bull-run
wonders'.
The learning: Invest only in funds that have comprehensively
proven themselves over longer time frames and across market
phases. As regards funds that have only experienced a bull-run,
avoid getting invested until they prove themselves to be 'all-
season' performers.
11
3. Funds that don't adhere to their investment mandate
Funds are known to have professed investment styles and
mandates. For example, a fund positioned as a large cap one is
expected to invest in large cap stocks. However, at times, these
mandates can prove to be restrictive; for example, if the mid cap
segment hits a purple patch, a large cap fund would find itself
missing out on attractive investment opportunities.
Some funds are known to circumvent such a situation by simply
contravening their stated investment style. For example, a
professed large cap fund ends up holding a portfolio dominated
by mid cap stocks to make the most of market conditions. In
effect, while the fund has delivered on the returns front, it has
done so by being unethical and disregarding its stated mandate.
More importantly, in this particular instance, it has enhanced its
risk profile considerably by transforming into a predominantly
mid cap fund in clear contravention of its mandate to remain
invested in large caps.
The learning: Find out if the fund has rigidly adhered to its
investment mandate at all times. A fund that fails to do so does
not merit inclusion in your investment portfolio, irrespective of its
showing on the returns front. Do not underestimate the risk of
investing in a fund that blatantly breaches its investment mandate
in the quest for NAV appreciation.
4. A sector/thematic fund's performance
Sector/thematic funds are known to deliver an impressive growth
in time periods when the underlying sector/theme hits a purple
patch. More importantly, such funds typically deliver a blistering
performance over shorter time frames. However, over longer
periods (say 5 years), diversified equity funds are known to
outperform sector/thematic funds.
Given that a sector/thematic fund's performance is linked solely
to that of the underlying sector/theme, investing in them based
only on the NAV performance is fraught with risks. You run the
risk of investing at a time when the sector/theme has run its
course i.e. it has become a spent force.
The learning: Appreciate the unique investment proposition
offered by sector/thematic funds and the higher risk associated
with them. They are at best suited for informed investors who
have a view on the underlying sector/theme and can time their
entry into and exit from the fund. Retail investors should steer
clear of sector/thematic funds. Instead they should invest in
diversified equity funds with proven track records; such funds
can also participate in the sector/theme targeted by sector/
thematic funds, without the associated restrictive investment
style.
5. When a star fund manager is at the helm
The 'star' tag can only be enjoyed by a fund manager who has a
track record of delivering. In effect, the star fund manager has
achieved a certain degree of success and created a standing for
himself, which is distinct from the fund house he represents.
A star fund manager's presence means that his views take priority
over what the fund house's investment processes may suggest.
Simply put, the star fund manager calls the shots in key
investment decisions. When a star fund manager is at the helm
of a fund, the latter virtually owes its existence to him.
 WHEN THE BEST COULD BE THE WORST!
The trouble is that when a star fund manager quits the fund
house, he takes the performance with him. And the fund house
without the star fund manager is no longer equipped to repeat
its glorious performance. You could be in for a rude shock, if the
top-performing fund that you invested in, is no longer managed
by its star fund manager.
The learning: Steer clear of funds managed by star fund
managers, irrespective of their impressive performance. Instead,
opt for funds from fund houses wherein fund management
12
teams and a process-driven investment style rule the roost;
such funds tend to deliver a sustainable performance. Admittedly,
for you as an investor, understanding a fund house's investment
style is easier said than done. This is where your investment
advisor needs to step in.
In conclusion, you would do well not to rely on the NAV
performance in isolation, while selecting a fund. Clearly, there
can be instances when the best-performing fund can prove to
be a bad investment and completely unsuitable for you.
Source: www.personalfn.com
 GLOSSARY
The data is compiled from data available in Annual Reports,
The Stock Exchange and from various newspapers and
magazines. No attempt is made to check the validity of the various
sources but certain adjustments, for ease of cross-comparison,
have been made as explained below.
COMPANY NAME
A + indicates that the company is one of the 30 companies in
the BSE-30 Index (Sensex). A $ indicates that the company is
one of the 50 companies that comprise the NSE Index, Nifty. For
e.g. Tata Steel Ltd. + $ indicates that Tata Steel Ltd. is a part of
the BSE-30 Index and the NSE-50 Index.
The sector in which the company operates and the business
group that the company belongs to is also given below the
companys name. For e.g., Tata Steel is in the Steel sector and
belongs to the Tata group of companies.
The registered office address, telephone and fax numbers and
names of the transfer agents are also given.
HEADERS
The year in which the company was incorporated (Yr. of Inc.), the
BSE code number (B. Code) and the Bloomberg code (BL. Code)
are shown.
F.V. indicates the face value of the share. Based on the share
price of the company on September 05, 2008 and using data for
the latest accounting year, the price to earnings ratio (P/E), price
to cash flow ratio (P/CF), and dividend yield (Yield), have been
calculated. For example, the price of Tata Steel as on September
05, 2008 was Rs 561.1. This share price is divided by the latest
reported earnings per share (March 2008), to give a P/E ratio of
3.3. Similarly, the share price is divided by the latest reported
cash flow per share (March 2008) to give a P/CF ratio of 2.5. The
latest dividend declared is divided by the share price to get a
dividend yield of 2.9%
% ONE MONTH AND TWELVE MONTHS CHANGE
Using the share price of the company on September 05, 2008
the percentage change over previous one month and twelve
months have been calculated.
MARKET CAPITALISATION (in millions)
Market Capitalisation (Mkt. Cap) is obtained by multiplying the
shares outstanding at the end of latest reporting period, by the
share price as on September 05, 2008. For Tata Steel, market
cap works out to be Rs. 409,996 million.
Vol. - APPROXIMATE DAILY TRADING VOLUME
The approximate daily trading volume expressed in 000
numbers (rounded off to the nearest tens e.g. 10, 20, 30, 40, 50)
is merely an indicative figure. For trading volumes below and
equal to five, they have been rounded off to 5. Trading volumes
may differ dramatically from day to day.
CHAIRMAN
The name of the chairman is obtained from the latest annual
reports. In addition, the name of the company secretary and the
auditors are also given.
13
ADJUSTED DAILY SHARE PRICE CHART
The graph shows the daily share price of the company and the
100 day moving average graph from September 2005 (or the
day the company got listed) to September 2008.
SHAREHOLDING DATA
Gives the percentage of share held by Indian promoters, foreign
collaborators, Indian institutions, foreign institutional investors
and the public/free float. Also gives the total number of
shareholders. We have combined GDR and FII investments for
the purpose of classifying shareholding.
FX TRANSACTIONS (in millions)
Gives the foreign exchange position in terms of exports (fob),
imports (cif), fx inflow, fx outflow for the latest reported year.
INTERIM RESULTS (in millions)
Gives the interim results for the past four quarters. Results are
displayed as reported by the company.
EQUITY SHARE DATA
HIGH
This is the highest the share price has reached in a particular
accounting or calendar year (adjusted for rights, bonuses, etc.
without any retrospective effect).
LOW
This is the lowest the share price has reached in a particular
accounting or calendar year (adjusted for rights, bonuses, etc.
without any retrospective effect).
SALES PER SHARE (in rupees)
The sales of the company in a period or year is divided by the
number of equity shares outstanding at the end of that year. All
data given on a per share basis allows investors to compare
the performance of companies irrespective of the size of the
companies.
EARNING PER SHARE (in rupees)
This is calculated by dividing the net profit after tax (includes
extraordinary items) of the company (less any dividends on
preference shares that the company may have paid) for a given
year or period by the number of equity shares outstanding at the
end of the year.
CASH FLOW PER SHARE (in rupees)
Cash Flow is obtained by adding the net profit after tax (adjusted
for preference dividend) to non-cash charges such as
depreciation. The cash flow per share is this Cash Flow figure
divided by the number of shares outstanding at the end of the
year.
DIVIDENDS PER SHARE (in rupees)
This is the amount of dividend declared by the company (usually
expressed as a percentage of its face value) calculated on a
rupees-per-share basis.
DIVIDEND YIELD (in percentage)
The amount of dividend received per share divided by the average
 GLOSSARY
price (average of high and low price) of the share in that year/ NO. OF EMPLOYEES (in 000s)
period gives the dividend yield - the return an investor receives The total number of employees has been obtained from
by way of dividends from his investment in the share. company sources and at times from the annual reports. It is an
approximate figure.
BOOK VALUE PER SHARE (in rupees)
The net worth or the shareholders equity of the company is TOTAL WAGES & SALARY (in Rs millions)
divided by the number of equity shares outstanding to arrive at Includes salaries and wages paid to the employees, gratuity,
the book value per share. welfare expenses, companys contribution to provident fund,
etc. It does not include commission paid to the directors and
SHARE OUTSTANDING (in millions) V.R.S. related expenses (V.R.S. expense, if any, has been treated
This represents the number of equity shares that have been as extraordinary item).
issued by the company as reported in the annual report.
SALES/EMPLOYEE (in Rs 000s)
BONUS/RIGHTS/CONVERSIONS The sales of the company in a year or period is divided by the
This signifies change in equity share capital due to:- number of employees. It is a key figure showing average sales
per employee.
A : Shares allotted on amalgamation/merger
B : Bonus Issue WAGES/EMPLOYEE (in Rs 000s)
BB : Buy Back Total wages/salary is divided by the number of employees. It is
BC : Bond Conversion a key figure because it shows labour cost per employee.
CR : Capital Reduction
DC : Debenture Conversion NET PROFIT/EMPLOYEE (in Rs 000s)
DM : Demerger This is calculated by dividing the net profit after tax of the company
ESOP Employee Stock Option Plan for a given year, by the number of employees. This figure shows
FV : Face Value Conversion (FV5 indicates change the average net profit earned per employee.
of face value to Rs 5 per share)
GDR : Global Depository Receipts
GDS : Global Depository Shares INCOME DATA
OI : Other Issue
PA : Preferential Allotment
NET SALES (in rupees millions)
PI : Public Issue
Is the net sales of the company for a particular period from its
PP : Private Placement
regular activities. Income from other non-core business is shown
PSC : Preference Share Conversion
as other income. Net sales is net of excise duty and after
R : Rights Issue
deducting Returns, Discounts, and Allowances.
WC : Warrant Conversion
OTHER INCOME (in rupees millions)
PRICE TO SALES RATIO
Is income earned by the company from activities which are not
The average price of the share in a particular year/period, divided
its main business. Interest income and income from sale of
by sales per share gives the price to sales ratio.
assets are typical examples of Other Income. Export incentives
are added to other income.
P/E RATIO
The average price of the share in a particular year/period, divided
GROSS PROFIT (in rupees millions)
by the earnings per share gives the price to earnings ratio (P/E
Is the profit earned after taking into account the operating
or PER)
expenses such as raw material costs and administrative
expenses but before interest, depreciation, and taxes. Gross
PRICE TO CASH FLOW RATIO profit excludes other income.
The average price of the share in a particular year/period, divided
by the cash flow per share gives the price to cash flow ratio (P/
DEPRECIATION (in rupees millions)
CF).
It is the amount of money put aside by the company to take into
account the wear and tear of its plant, machinery, furniture, etc.
PRICE TO BOOK VALUE RATIO The depreciation figure shown has been arrived at after
The average price of the share in a particular year/period divided deducting any capitalised expenses that may have been
by the book value per share gives the price to book value ratio. included in depreciation.

DIVIDEND PAYOUT (percentage) INTEREST (in rupees millions)

The dividends per share divided by the earnings per share gives
the dividend payout percentage - the amount of earnings that a
company pays out as dividends to its shareholders.
Is the interest charges paid by the company for the loans it may
have taken from banks, suppliers, depositors or shareholders.
Bank charges, if any, have been excluded from the interest. In-
terest income received by the company is not netted out against
interest expenses. Interest income is shown as part of Other
Income.

14
 GLOSSARY
PROFIT BEFORE TAX (in rupees millions)
The PBT is the profit the company has earned after taking into
account all expenses (such as cost of raw materials, interest,
depreciation).
EXTRA-ORDINARY ITEMS (in rupees millions)
Is the income or expense that is non-recurring in nature.
TAX (in rupees millions)
Is the tax paid by the company on its profits. Tax adjustments for
earlier years are also reflected in this figure.
PROFIT AFTER TAX (in rupees millions)
Is profit before tax less tax paid by the company and adjusted for
extra-ordinary items, minority interest and prior period items.
GROSS PROFIT MARGIN (percentage)
Is the Gross Profit of the company divided by net sales.
EFFECTIVE TAX RATE (percentage)
Is the tax paid by the company divided by the pre-tax profits.
NET PROFIT MARGIN (percentage)
Is the profit after tax divided by net sales.
BALANCE SHEET DATA
CURRENT ASSETS (in rupees millions)
Current assets are the assets that a company holds for a period
of less than one year to meet its working capital requirements
and they consist of cash and bank balances, investments in
marketable securities, inventories, accounts receivable or sundry
debtors, loans and advances.
CURRENT LIABILITIES (in rupees millions)
Current liabilities are the liabilities which have to be paid within
a period of one year. It consists of creditors, bills payable,
provisions for payment of dividends, interest and taxes.
NET WORKING CAP TO SALES (a percentage)
Net working capital (i.e. current assets less current liabilities)
divided by sales gives the net working capital to sales figure. It
is a measure of the amount of working capital required by the
company to finance sales.
CURRENT RATIO
Current assets divided by the current liabilities gives the current
ratio.
INVENTORY TURNOVER (days)
Calculated by dividing 365 (number of days in a year) by the
inventory turnover ratio (Net Sales/Inventory). It indicates the
number of days in which total inventory of the company is sold.
A lower figure is considered better as it indicates that inventory
is being sold fast.
DEBTORS TURNOVER (days)
Calculated by dividing 365 (number of days in a year) by the
debtors turnover ratio (Net Sales/Debtors). It indicates the
number of days in which the company is able to collect its debt,
15
or rather how quickly debtors are converted into cash.
NET FIXED ASSETS (in rupees millions)
Is the amount of fixed assets as plant and machinery owned by
the company less the depreciation expenses that have been
charged to the profit and loss account over the years. Capital
work-in-progress is also included in net fixed assets.
SHARE CAPITAL (in rupees millions)
Is the issued equity share capital of the company. It does not
include preference share capital. In India few companies use
preference share capital.
FREE RESERVES (in rupees millions)
Free reserves are those reserves of the company, which are
available for distribution as dividend or bonus. Some of the
important components of Free reserves are share premium,
general reserve, capital redemption reserve, investment
allowance utilisation reserve, profit and loss, dividend
equalisation, export allowance, export profit, and export rebate
reserves.
NET WORTH (in rupees millions)
Is that part of the company which belongs to the shareholders.
Net worth includes equity share capital and all reserves
(including revaluation reserve) less miscellaneous expenses
and losses not written off. Net worth does not include preference
share capital. Net worth is also known as shareholders equity
or shareholders funds.
LONG TERM DEBT (in rupees millions)
Is the amount of money that the company has borrowed and
which it has to repay after a period of more than one year. Many
companies do not disclose this data in their Annual Reports and
hence it is an estimation.
TOTAL ASSETS (in rupees millions)
Is arrived by adding current assets, net fixed assets and other
assets (such as investments, goodwill etc.). Deferred tax asset,
if any, is ignored for the purpose of calculation.
INTEREST COVERAGE RATIO
It is the profit before tax plus interest divided by interest. This
ratio shows how many times interest charges are covered by
profits before tax and interest. The larger the coverage, the greater
is the ability of the company to meet fixed interest charges.
DEBT TO EQUITY RATIO
Is the long term debt of the company divided by its net worth or
the stockholders equity. Debt to equity ratio varies considerably
depending on the business of the company and the attitude of
the management towards debt.
SALES TO ASSETS RATIO
Is the sales divided by the total assets of the company. This
measures the efficiency with which the assets are being utilised
to generate sales.
RETURN ON ASSETS (percentage)
Is the profit after tax (adjusted for preference dividend) divided by
the total assets as at the end of that year/period. It measures
how profitably the assets of the company have been utilised.
 GLOSSARY
RETURN ON EQUITY (percentage)
Is the profit after tax (adjusted for preference dividend) divided by
the net worth or the shareholders equity as at the end of that
year/period. It measures the return on shareholders equity and
tells shareholders how much money the company is making for
them. No matter what industry the company is in, or what its
assets size is, all shareholders would rightfully want to invest in
a company, which has a high return on equity.

RETURN ON CAPITAL (percentage)

Is the profit after tax plus interest (adjusted for preference
dividend) divided by the total capital employed in the company
(i.e. net worth plus long term debt) as at the end of that year/
period. It indicates the efficiency with which funds (whether
shareholders funds or borrowed funds) are being used.

KEY DATA
Some common abbreviations used:

KLTR kilo litres

KMS kilo metres
MDWT million dead weight tonnes
MLTR million litres
MMBTU million metric British thermal units
MMT million metric tonnes
MMTR million metres
MNOS million numbers
MPCS million pieces
MSQM million square metres
MTPA million tonnes per annum
MU million units
MW mega watts
NOS numbers
TEUs twenty equivalent foot units
THNOS thousand numbers
THTPA thousand tonnes per annum

NOTE: Figures have not been annualised for accounting periods,

which are not for 12 months. Furthermore, due to rounding off,
totals or percentages may not tally. Previous year figures have
been re-grouped wherever necessary so as to correspond with
current year figures. All financials are consolidated.
NA = not available/not applicable, NM = not meaningful

16
 BANKING GLOSSARY
Price/Book value per share Current market price/Adjusted book value
per share
Net interest income Interest income - Interest expenses
Net NPA to advances ratio Net NPAs/Total Advances
Credit/Deposit ratio Total advances/Total deposits
Interest Income/share Interest income/ Number of Shares
Outstanding
Net profit margin (PAT / Interest income)*100
Net worth Equity Share Capital + Reserves
- Miscellaneous Expenditure
Yield on advances Interest on advances/ Total advances
Cost of deposits Interest expended on deposits/ Total
deposits
Capital Adequacy Capital/ Risk weighed assets, Capital
includes Tier I and Tier II capital.
Interest spread Difference between yield on advances and
cost of deposits
Advances Loans given out by the bank in the form of
working capital or term loans. Retail loans
are also included in this.
Deposits Money accepted from the depositors in the
form of current, savings and fixed deposits.
Investments Money invested in assets other than loans
such as government securities and other
debt instruments.
17
For the banking sector this ratio is more relevant than
the P/E ratio. In the case of a bank, capital is the asset,
which is rightly reflected in its networth. When one
adjusts the networth for the net non-performing assets,
the adjusted book value is derived. It is in this context
that price to book value gains prominence.
It is calculated by reducing the interest expenses from
the income earned in the form of interest on total interest
bearing assets.
This ratio indicates the asset quality of a bank. It
indicates what percentage of the banks advances are
of poor quality (not paying interest or in some cases
the principal too).
This ratio indicates the extent to which the borrowings
are utilised for the purpose of lending activities.
Interest earned by the bank in a period or year is divided
by the number of equity shares outstanding at the end
of the year. All data given on a per share basis allows
investors to compare the performance of companies
irrespective of which sector they are in and irrespective
of the size of the companies.
Net worth is also known as shareholders equity or
shareholders funds. Net worth includes equity share
capital and all reserves (including revaluation reserve)
less expenses not written off. It is that part of the bank
which belongs to the shareholders.
Interest the bank receives on its loans.
Interest the bank gives to its depositors.
A higher ratio indicates that the bank is in a position to
carry out larger quantum of business (lending) and
vice versa.
 RANKINGS WITHIN EQUITYMASTER 200
Net Sales Rank Market Cap.* Rank Net Profit Rank Total Assets Rank
Company
(Rs m) (Rs m) (Rs m) (Rs m)
3I INFOTECH 12,053 140 14,378 158 1,766 119 23,180 115
ABB 59,303 50 185,190 34 4,917 64 46,390 87
ACC 70,674 44 109,710 55 14,274 39 70,629 65
ADITYA BIRLA NUVO 113,011 30 115,302 53 1,507 137 200,425 44
ADLABS FILMS 3,092 190 23,485 132 475 179 18,652 130
AKRUTI CITY 4,450 182 59,997 82 2,993 95 18,426 131
ALFA-LAVAL 6,866 170 14,799 156 915 154 5,344 185
ALSTOM PROJECTS 15,470 128 26,577 124 765 160 20,061 125
AMBUJA CEMENTS 57,921 52 124,012 47 18,460 26 67,388 68
ANDHRA BANK 42,899 63 28,833 120 6,008 62 566,281 19
APOLLO HOSPITALS 12,148 139 30,049 118 771 159 22,351 117
APOLLO TYRES 46,912 57 18,523 148 2,697 98 28,074 106
AREVA T&D 20,062 118 77,673 70 2,162 109 16,885 136
ARVIND 26,550 99 7,566 185 156 190 40,613 91
ASAHI INDIA GLASS 9,958 152 8,732 178 84 192 19,547 128
ASHOK LEYLAND 77,291 43 43,502 98 4,694 67 55,400 77
ASIAN PAINTS 44,044 61 114,840 54 4,092 73 25,242 111
AVENTIS PHARMA 8,735 157 19,265 145 1,444 140 9,029 160
AXIS BANK 70,051 45 246,169 25 10,591 45 1,095,664 13
BAJAJ AUTO 86,659 35 87,756 67 7,496 53 48,511 84
BAJAJ HINDUSTHAN 17,805 123 23,163 134 75 193 61,395 72
BALAJI TELE 3,784 187 11,249 167 957 151 4,522 187
BALRAMPUR CHINI 13,948 133 22,369 137 (473) 199 26,688 108
BANK OF BARODA 121,642 29 107,259 56 15,484 34 1,834,790 4
BANK OF INDIA 123,910 28 149,386 44 19,598 24 1,793,424 6
BANK OF MAHARASHTRA 35,406 76 15,219 155 3,299 90 481,578 22
BERGER PAINTS 13,970 132 12,741 164 930 152 7,440 173
BHARAT BIJLEE 5,624 174 7,865 183 725 163 4,367 188
BHARAT FORGE 46,523 58 55,763 87 3,001 94 51,381 82
BHARTI AIRTEL 270,122 11 1,526,198 3 63,953 8 474,269 23
BIOCON LIMITED 10,538 147 41,315 104 4,639 68 20,789 122
BLUE STAR 22,216 110 36,880 109 1,741 121 11,778 151
BOSCH 42,797 64 123,295 48 6,092 61 37,654 95
BRITANNIA 27,769 93 34,001 112 1,774 118 13,499 148
CADILA HEALTH. 22,993 107 41,715 103 2,576 100 25,478 110
CANARA BANK 142,272 23 93,624 63 17,953 27 1,809,214 5
CASTROL 18,883 120 42,310 100 2,185 108 9,264 159
CESC 27,750 94 40,943 105 3,553 81 83,605 59
CIPLA 40,103 67 182,158 36 7,011 57 57,326 76
CMC 10,605 146 8,541 179 924 153 6,870 180
COLGATE 14,739 129 55,968 85 2,357 104 7,009 178
CONTAINER CORP. 33,750 79 116,916 52 7,341 56 39,380 93
CORPORATION BANK 45,166 60 41,906 102 7,504 52 665,421 18
CRISIL 4,043 186 25,962 125 838 157 4,080 191
CROMPTON GREAVES 68,324 47 93,879 62 4,067 75 47,395 86
CUMMINS 26,556 98 62,439 80 3,249 93 19,740 127
DABUR INDIA 23,611 105 83,469 69 3,341 87 14,429 143
DABUR PHARMA 2,688 194 10,921 170 986 148 8,434 166
DISHMAN PHARMA 8,031 160 25,541 127 1,197 143 14,930 141
DIVI'S LAB 10,366 149 97,823 60 3,476 84 11,787 150

18 *As on 5th September, 2008

 RANKINGS WITHIN EQUITYMASTER 200
Net Sales Rank Market Cap.* Rank Net Profit Rank Total Assets Rank
Company
(Rs m) (Rs m) (Rs m) (Rs m)
DLF 140,460 24 842,953 7 78,120 5 396,065 27
DR. REDDY'S 49,917 55 98,395 59 4,382 69 76,966 61
E.I.D. - PARRY 45,816 59 19,519 143 1,047 145 40,886 90
EDELWEISS 8,697 159 40,537 106 2,733 97 51,451 81
EDUCOMP 2,861 193 63,940 78 704 164 7,669 168
EICHER MOTORS 22,626 109 7,865 182 547 174 12,351 149
EIH 11,580 143 56,821 84 2,214 107 26,195 109
EMCO 9,442 154 6,622 187 643 170 10,552 153
ENIL 4,135 184 14,068 160 (171) 197 7,513 171
ESSEL PROPACK 11,938 142 4,150 194 609 171 17,944 135
EXIDE INDUSTRIES 29,771 88 54,840 90 1,643 129 19,018 129
FINOLEX CABLES 13,838 134 7,777 184 889 156 14,332 144
G.E. SHIPPING 33,260 81 55,891 86 14,533 38 75,774 62
GAIL (INDIA) 188,373 16 352,002 20 27,829 18 251,954 36
GEOMETRIC 4,858 179 3,894 196 321 184 4,009 192
GMR INFRA. 21,850 112 187,466 33 2,100 112 166,153 50
GODREJ CONSUMER 11,039 144 32,544 113 1,592 133 6,874 179
GRASIM 169,740 19 179,279 37 28,915 17 208,327 42
GREAT OFFSHORE 7,459 162 20,392 141 2,017 114 20,674 123
GSK PHARMA. 16,082 126 99,878 58 5,475 63 20,060 126
GUJARAT GAS 12,446 137 17,382 149 1,529 135 9,776 157
GVK POWER 4,700 180 55,180 88 1,354 141 37,723 94
HAVELLS 49,838 56 20,779 139 1,609 130 31,583 105
HCC 29,947 86 24,856 129 890 155 50,262 83
HDFC 80,290 40 648,283 13 27,129 19 969,420 14
HDFC BANK 101,170 32 541,393 16 15,950 32 1,331,931 8
HDIL 23,804 103 84,301 68 14,074 40 75,010 63
HEXAWARE 10,398 148 6,808 186 72 194 9,807 156
HINDALCO 618,409 5 152,281 43 23,873 20 734,701 17
HINDUSTAN ZINC 78,778 41 238,877 27 43,961 13 132,067 53
HOTEL LEELA 5,146 178 12,751 163 1,485 138 32,632 102
HT MEDIA 12,033 141 28,588 122 1,013 147 13,685 146
HUL 139,134 25 533,911 17 19,148 25 65,965 69
ICICI BANK 340,950 9 764,860 11 33,982 14 4,856,166 2
ICRA 995 200 6,103 189 285 185 2,164 200
IDBI BANK 82,754 38 64,286 77 7,465 54 1,325,469 9
IDFC 27,951 92 118,124 50 7,422 55 288,439 30
INDIA CEMENTS 30,483 84 40,365 107 6,416 60 62,297 71
INDIA INFOLINE 10,201 150 37,619 108 1,600 132 32,248 103
INDIAN HOTELS 29,200 89 55,123 89 3,550 82 68,393 67
INDRAPRASTHA GAS 7,060 167 16,457 152 1,745 120 7,533 170
INFO EDGE 2,189 198 23,286 133 555 173 3,695 194
INFOSYS 166,920 20 982,206 5 46,590 11 178,670 46
ING VYSYA BANK 16,804 125 25,494 128 1,650 127 255,410 35
ITC 146,591 22 714,528 12 31,577 16 177,612 47
JAGRAN PRAKASHAN 7,496 161 22,588 136 982 149 7,952 167
JAIPRAKASH ASSO. 42,012 65 196,603 30 6,768 59 206,751 43
JAIPRAKASH HYDRO 3,008 191 25,581 126 2,134 110 20,886 121
JSW STEEL 124,567 27 132,879 46 16,400 31 261,751 33
JYOTI STRUCTURES 13,462 135 10,638 171 699 166 9,005 161
19 *As on 5th September, 2008
 RANKINGS WITHIN EQUITYMASTER 200
Net Sales Rank Market Cap.* Rank Net Profit Rank Total Assets Rank
Company
(Rs m) (Rs m) (Rs m) (Rs m)
KALPATARU POWER 26,749 97 21,395 138 1,647 128 22,725 116
KANSAI NEROLAC 13,999 131 16,409 153 1,195 144 10,045 155
KEC INTERNATIONAL 28,145 91 20,099 142 1,722 123 24,243 114
KOTAK MAHINDRA BANK 36,484 73 208,617 29 9,912 49 405,972 25
KSB PUMPS 4,665 181 5,438 192 510 177 4,325 190
LARSEN & TOUBRO 293,371 10 765,018 10 23,383 21 397,641 26
LIC HOUSING FINAN. 20,894 113 27,984 123 3,915 76 232,927 39
LMW 22,052 111 13,216 161 2,423 103 18,223 133
LUPIN 27,064 95 61,576 81 4,227 70 31,766 104
M & M FIN. SERVICES 12,164 138 23,644 131 1,811 116 69,114 66
MADRAS CEMENTS 20,119 117 30,312 117 4,083 74 33,506 100
MAHINDRA & MAHINDRA 225,376 14 143,008 45 15,712 33 259,088 34
MAHINDRA LIFESPACE 2,311 197 18,807 146 664 168 13,600 147
MARICO 19,067 119 35,901 110 1,691 125 8,697 162
MARUTI SUZUKI 181,041 18 196,387 31 17,899 28 125,809 54
MERCATOR LINES 14,549 130 19,280 144 3,277 91 47,521 85
MERCK 3,148 189 5,901 190 689 167 4,895 186
MID-DAY 1,243 199 1,374 200 (98) 196 2,577 198
MINDTREE 7,398 163 12,876 162 1,033 146 7,553 169
MOSER BAER 20,700 114 18,699 147 (2,023) 200 59,788 73
MOTHERSON SUMI 20,281 116 31,608 115 1,778 117 15,402 140
MOTILAL OSWAL 6,898 169 15,715 154 1,705 124 16,808 137
MPHASIS 24,231 102 51,413 93 2,553 102 15,794 139
MUNJAL SHOWA 7,094 166 1,400 199 193 188 3,107 197
NAGARJUNA CONST. 36,354 74 29,669 119 1,674 126 53,801 78
NAVNEET 4,111 185 6,394 188 542 175 3,542 196
NESTLE 35,044 77 172,061 38 4,138 72 14,078 145
NEYVELI LIGNITE 29,817 87 190,001 32 11,015 44 142,394 52
NIIT 10,068 151 14,370 159 757 161 9,451 158
NIIT TECH. 9,415 155 9,306 176 1,352 142 7,337 174
NOVARTIS 5,535 177 9,367 175 972 150 5,695 184
NTPC 386,759 7 1,430,175 4 74,699 7 935,533 15
OBC 68,382 46 44,621 95 3,533 83 239,507 37
ONGC 967,822 3 2,290,227 2 198,723 1 1,246,846 11
ORACLE FIN. SER. SOFT. 23,802 104 100,571 57 4,156 71 33,680 98
PAPER PRODUCTS 5,706 172 2,492 197 284 186 4,330 189
PATEL ENGG. 18,596 121 24,370 130 1,519 136 27,423 107
PATNI 26,911 96 31,810 114 4,837 65 33,641 99
PETRONET LNG 65,553 49 45,788 94 4,747 66 43,242 89
PFC 50,293 54 156,613 42 12,068 42 547,005 20
PFIZER 6,980 168 16,706 151 3,400 86 8,516 165
PIDILITE 17,082 124 35,050 111 1,729 122 14,713 142
PIRAMAL HEALTH. 28,483 90 71,398 75 3,337 88 24,932 112
PNB 146,606 21 159,069 41 22,031 22 2,037,159 3
PRAJ INDUSTRIES 7,380 164 31,516 116 1,530 134 7,013 177
PRATIBHA INDUS. 5,614 175 4,510 193 343 182 6,468 182
PRICOL 6,453 171 1,472 198 183 189 7,202 175
PTC 39,061 69 17,227 150 480 178 18,084 134
PUNJ LLOYD 77,529 42 89,976 66 3,584 80 77,511 60
PUNJAB TRACTORS 9,695 153 11,092 168 652 169 8,683 163
20 *As on 5th September, 2008
 RANKINGS WITHIN EQUITYMASTER 200
Net Sales Rank Market Cap.* Rank Net Profit Rank Total Assets Rank
Company
(Rs m) (Rs m) (Rs m) (Rs m)
RANBAXY 67,462 48 171,109 39 7,746 51 92,782 56
RAYMOND 23,312 106 11,923 166 216 187 36,294 96
RELIANCE COMM. 188,274 17 813,123 9 54,011 9 774,593 16
RELIANCE 1,371,467 1 3,022,720 1 195,678 2 1,749,569 7
RELIANCE INFRA. 83,462 37 235,647 28 11,783 43 264,630 31
SAIL 395,672 6 603,451 15 75,966 6 422,260 24
SANGHVI MOVERS 2,543 196 9,002 177 728 162 7,499 172
SASKEN COMM. 5,702 173 4,064 195 394 180 6,352 183
SATYAM 84,735 36 279,630 23 16,879 29 88,166 57
SBI 714,958 4 964,097 6 89,606 4 10,272,695 1
SESA GOA 37,923 70 117,253 51 15,415 36 34,128 97
SHOPPER'S STOP 11,037 145 10,266 173 26 195 7,078 176
SHREE CEMENT 20,659 115 20,529 140 2,603 99 24,649 113
SHRIRAM TRANS. FIN. 24,634 101 68,099 76 3,898 77 182,684 45
SIEMENS 93,786 34 184,545 35 6,929 58 485,703 21
SINTEX INDUSTRIES 22,743 108 44,309 97 2,302 105 45,961 88
SKF INDIA 15,683 127 12,059 165 1,607 131 8,673 164
STERLITE INDUS. 247,054 12 416,450 18 45,019 12 393,942 28
SUN PHARMA 33,566 80 310,773 22 14,869 37 59,701 75
SUN TV NETWORK 8,699 158 92,550 64 3,267 92 18,310 132
SUZLON 136,794 26 337,776 21 10,301 47 263,901 32
TAJ GVK 2,575 195 5,646 191 704 165 3,817 193
TATA CHEMICALS 58,109 51 75,744 72 9,644 50 118,662 55
TATA COMM. 82,630 39 121,011 49 103 191 143,309 51
TATA MOTORS 354,000 8 161,941 40 21,677 23 353,628 29
TATA POWER 108,356 31 239,092 26 10,550 46 222,203 40
TATA STEEL 1,315,143 2 409,996 19 123,500 3 1,248,472 10
TATA TEA 43,657 62 44,460 96 15,425 35 85,007 58
TCS 228,634 13 820,222 8 50,261 10 174,781 48
TECH MAHINDRA 37,661 71 92,106 65 3,299 89 22,191 118
THERMAX 34,328 78 57,965 83 2,921 96 20,278 124
THOMAS COOK 2,862 192 14,478 157 519 176 6,806 181
TITAN INDUSTRIES 29,969 85 54,673 91 1,476 139 15,936 138
TORRENT POWER 36,255 75 53,103 92 2,112 111 73,026 64
TRENT 7,162 165 10,122 174 337 183 10,876 152
TVS MOTOR 32,706 82 8,112 181 (280) 198 22,149 119
ULTRATECH CEMENT 56,238 53 73,318 74 10,100 48 62,751 70
UNION BANK 94,473 33 76,449 71 13,870 41 1,240,733 12
UNITECH 41,152 66 255,277 24 16,613 30 233,794 38
UNITED PHOSPHORUS 37,306 72 73,440 73 2,574 101 52,143 79
UTV SOFTWARE 4,342 183 28,817 121 577 172 10,392 154
VARUN SHIPPING 9,326 156 10,458 172 2,276 106 33,017 101
VOLTAMP TRANS. 5,553 176 8,428 180 799 158 2,548 199
VOLTAS 32,029 83 43,263 99 2,077 113 21,114 120
WELSPUN GUJ. STAHL 39,944 68 62,582 79 3,409 85 59,745 74
WIPRO 199,796 15 623,182 14 32,829 15 215,811 41
WOCKHARDT 26,532 100 22,621 135 3,858 78 51,531 80
YES BANK 13,108 136 42,269 101 2,000 115 169,824 49
ZEE ENTERTAINMENT 18,354 122 96,285 61 3,833 79 39,629 92
ZEE NEWS 3,675 188 11,029 169 371 181 3,628 195

21 *As on 5th September, 2008

 COMPARATIVE STANDINGS
By Net Sales By Net Profit

Company (Rs m) Company (Rs m)

1 RELIANCE 1,371,467 1 ONGC 198,723
2 TATA STEEL 1,315,143 2 RELIANCE 195,678
3 ONGC 967,822 3 TATA STEEL 123,500
4 SBI 714,958 4 SBI 89,606
5 HINDALCO 618,409 5 DLF 78,120
6 SAIL 395,672 6 SAIL 75,966
7 NTPC 386,759 7 NTPC 74,699
8 TATA MOTORS 354,000 8 BHARTI AIRTEL 63,953
9 ICICI BANK 340,950 9 RELIANCE COMM. 54,011
10 LARSEN & TOUBRO 293,371 10 TCS 50,261

By Market Capitalisation* By Total Assets

Company (Rs m) Company (Rs m)

1 RELIANCE 3,022,720 1 SBI 10,272,695
2 ONGC 2,290,227 2 ICICI BANK 4,856,166
3 BHARTI AIRTEL 1,526,198 3 PNB 2,037,159
4 NTPC 1,430,175 4 BANK OF BARODA 1,834,790
5 INFOSYS 982,206 5 CANARA BANK 1,809,214
6 SBI 964,097 6 BANK OF INDIA 1,793,424
7 DLF 842,953 7 RELIANCE 1,749,569
8 TCS 820,222 8 HDFC BANK 1,331,931
9 RELIANCE COMM. 813,123 9 IDBI BANK 1,325,469
10 LARSEN & TOUBRO 765,018 10 TATA STEEL 1,248,472

By Gross Profit Margin By Net Profit Margin

Company (%) Company (%)

1 JAIPRAKASH HYDRO 91.0 1 JAIPRAKASH HYDRO 70.9
2 AKRUTI CITY 83.7 2 AKRUTI CITY 67.3
3 SANGHVI MOVERS 73.9 3 HDIL 59.1
4 HDIL 71.1 4 HINDUSTAN ZINC 55.8
5 HINDUSTAN ZINC 68.3 5 DLF 55.6
6 DLF 66.2 6 PFIZER 48.7
7 VARUN SHIPPING 61.6 7 SUN PHARMA 44.3
8 SESA GOA 59.9 8 BIOCON LIMITED 44.0
9 SUN TV NETWORK 58.6 9 G.E. SHIPPING 43.7
10 UNITECH 53.7 10 SESA GOA 40.6

By Networth By Interest Coverage

Company (Rs m) Company (X)
1 RELIANCE 855,072 1 PRAJ INDUSTRIES 1,744.0
2 ONGC 774,127 2 HEXAWARE 1,234.0
3 SBI 612,364 3 ALSTOM PROJECTS 1,177.0
4 NTPC 528,629 4 AVENTIS PHARMA 1,115.0
5 ICICI BANK 447,222 5 GSK PHARMA. 1,046.8
6 RELIANCE COMM. 290,263 6 NESTLE 718.9
7 TATA STEEL 285,633 7 SKF INDIA 619.5
8 SAIL 232,291 8 CONTAINER CORP. 358.8
9 STERLITE INDUS. 223,026 9 ONGC 274.3
10 BHARTI AIRTEL 217,242 10 ALFA-LAVAL 273.8
22 *As on 5th September, 2008
 COMPARATIVE STANDINGS
By Highest Effective Tax Rates By Net Foreign Exchange

Company (%) Company (Rs m)

1 SHOPPER'S STOP 109.7 1 TCS 100,164
2 TATA COMM. 109.1 2 INFOSYS 75,650
3 ADITYA BIRLA NUVO 106.4 3 HINDUSTAN ZINC 18,213
4 RAYMOND 78.2 4 SATYAM 17,609
5 PFIZER 57.1 5 BAJAJ AUTO 17,244
6 ASAHI INDIA GLASS 44.4 6 TECH MAHINDRA 17,051
7 EXIDE INDUSTRIES 43.5 7 RANBAXY 15,421
8 JYOTI STRUCTURES 39.6 8 DR. REDDY'S 12,958
9 ALSTOM PROJECTS 39.5 9 CIPLA 11,875
10 SUN TV NETWORK 39.0 10 ORACLE FIN. SER. SOFT. 11,586

By Foreign Exchange Inflow By Foreign Exchange Outflow

Company (Rs m) Company (Rs m)

1 RELIANCE 760,108 1 RELIANCE 1,054,259
2 TCS 168,254 2 STERLITE INDUS. 118,181
3 INFOSYS 144,900 3 HINDALCO 110,404
4 STERLITE INDUS. 70,754 4 ONGC 100,529
5 SATYAM 65,354 5 SAIL 69,975
6 HINDALCO 64,350 6 INFOSYS 69,250
7 LARSEN & TOUBRO 56,566 7 TCS 68,090
8 ONGC 37,947 8 BHARTI AIRTEL 64,359
9 TECH MAHINDRA 35,637 9 PETRONET LNG 54,819
10 JSW STEEL 32,987 10 RELIANCE COMM. 53,574

By Return on Equity By Return on Assets

Company (%) Company (%)
1 COLGATE 140.9 1 SESA GOA 45.2
2 HUL 127.0 2 PFIZER 39.9
3 NESTLE 98.9 3 COLGATE 33.6
4 GODREJ CONSUMER 94.4 4 HINDUSTAN ZINC 33.3
5 BLUE STAR 66.4 5 VOLTAMP TRANS. 31.4
6 THOMAS COOK 56.7 6 DIVI'S LAB 29.5
7 DABUR INDIA 55.4 7 NESTLE 29.4
8 MARICO 53.8 8 HUL 29.0
9 PFIZER 52.6 9 TCS 28.8
10 SESA GOA 52.4 10 AMBUJA CEMENTS 27.4

By P/E Ratio* By P/BV Ratio#

Company (X) Company (X)
1 TVS MOTOR 97.7 1 HDFC 5.1
2 GMR INFRA. 91.2 2 HDFC BANK 3.8
3 ENIL 88.5 3 TATA POWER 3.2
4 EDUCOMP 79.0 4 EIH 4.5
5 ESSEL PROPACK 52.5 5 KOTAK MAHINDRA BANK 3.6
6 ADLABS FILMS 50.0 6 YES BANK 3.2
7 RAYMOND 42.6 7 UNITECH 7.1
8 INFO EDGE 41.0 8 SHRIRAM TRANS. FIN. 3.7
9 DABUR PHARMA 38.7 9 DLF 4.5
10 NIIT 37.7 10 MADRAS CEMENTS 3.2
23 *As on 5th September, 2008 on Trailing twelve months basis
# FY08 Book value
 SUMMARY OF THE EQUITYMASTER 200
No. of Months 12 12 12 India's GDP growth has averaged over 8% a year over the past
Year Ending 31/03/06 31/03/07 31/03/08 four years. Unsurprisingly, this is reflected in the performance
STAFFING DATA of India Inc, which continues to grow at a robust pace.
Employees Th nos. 1,107 1,294 1,443
Total wages & salary Rs bn 576 844 1,253 The net sales of Equitymaster 177 (excluding banks), increased
Avg Wages / employee Rs th 520 652 868 by nearly 40% YoY in FY08, compared to a 39.0% YoY growth
Avg Sales / employee Rs th 5,724 6,805 8,543 achieved in FY07. The increase in sales growth was primarily
Avg Net profit / employee Rs th 799 1,022 1,245 led by the metals pack viz. steel and aluminium, which grew by
INCOME DATA a whopping 149% and 195% respectively on a YoY basis. The
Net Sales Rs bn 6,336 8,806 12,327
huge jump in the sales of metals sector could be attributed to
Other Income Rs bn 188 266 433 big-ticket acquisitions of companies like Novelis and Corus.
Total Revenues Rs bn 6,524 9,072 12,760 Among other sectors that contributed to the 40% overall growth
Gross Profit Rs bn 1,429 2,131 2,649 were the diversified and the capital goods sectors. While the
Depreciation Rs bn 344 457 576 former had mainly Reliance to thank for its performance, healthy
Interest Rs bn 94 143 237
order backlog led the latter to outshine most of its peers.
Profit before tax Rs bn 1,180 1,797 2,269
Minority interest Rs bn -13 -33 -55
Prior period expenses Rs bn -10 -12 0 As compared to a sales growth of 40% YoY, operating profits
Extra ordinary income (exp.) Rs bn 31 28 168 grew by a significantly lesser 24% YoY. The main culprit in this
Tax Rs bn 304 458 585 case was the operating margin of Tata Steel, as post Corus
Profit after tax Rs bn 885 1,323 1,797 consolidation, it took a real beating. Infact, the steel sector alone
Gross profit margin % 22.6 24.2 21.5
accounted for close to 70% of the total contraction in operating
Effective tax rate % 25.7 25.5 25.8
Net profit margin % 14.0 15.0 14.6
margins of the universe under consideration. Other sectors
that had a negative impact on margins turned out to be the
BALANCE SHEET DATA diversified and the aluminium sector, the latter reeling under
Current Assets Rs bn 3,349 4,792 7,322 the impact of another acquisition, Novelis. On the other hand,
Current Liabilities Rs bn 1,917 2,683 3,863 sectors like construction and telecom emerged as the sectors
Net working cap to sales % 22.6 24.0 28.1 with the biggest positive contribution to the operating margins.
Current Ratio x 1.7 1.8 1.9
Inventory turnover Days 63 66 62
In absolute terms, apart from construction, financial services
Debtors turnover Days 73 66 64 firms like brokerage firms also left their mark with huge jump in
Net fixed assets Rs bn 3,972 5,594 7,837 operating profits. As far as net profits are concerned, they came
Free reserves Rs bn 3,597 4,838 6,673 in at 35% YoY, significantly higher than the operating profits but
Net worth Rs bn 4,159 5,486 7,482 slightly lower than growth in net sales. This could be attributed
Long term debt Rs bn 1,278 2,051 3,732 mainly to higher other income and lower interest expenses as
Total assets Rs bn 8,390 11,817 17,415
companies benefited from the strong cash flows of the previ-
Interest coverage x 13.5 13.6 10.6
Debt to equity ratio x 0.3 0.4 0.5 ous years.
Sales to assets ratio x 0.8 0.7 0.7
Return on assets % 10.5 11.2 10.3 So, where do we go from here? Most of the companies were
Return on Equity % 21.3 24.1 24.0 working at full capacity levels in FY08 and as a consequence,
Return on capital % 16.3 17.6 16.0 have lined up what could be termed as one of the biggest capex
Exports to sales % 13.1 14.0 11.9
drives in recent times. Since the benefit of the same is likely to
Imports to sales % 18.4 18.5 16.1
FX inflow Rs bn 1,212 1,779 2,128
accrue over the medium term, especially for capital-intensive
Fx outflow Rs bn 1,536 2,161 2,582 firms, we expect profit margins to remain under pressure on
Net Fx Rs bn -324 -382 -454 account of significantly higher depreciation. Furthermore, record
inflation levels are also not letting them breathe easy. Hence,
the trend of falling operating margins is likely to continue in
FY09. The topline growth however, is expected to remain buoy-
Note : Summary represents 177 companies included in the yearbook.
It excludes companies in the Banking and Investment & Finance
ant. Given the outlook, it would make sense to keep away from
sectors. sectors that enjoy low pricing power and have significantly
leveraged balance sheets, atleast in the medium term. For the
long-term though, the Indian growth story remains intact.

24
 THE EQUITYMASTER
THE QUANTUM
200200

Company Studies

This firm and its affiliates may act upon or use information contained in this report before it has been published.

The information in this book has been compiled from sources we believe to be reliable, but we do not hold ourselves
responsible for its completeness or accuracy. It is not an offer to sell or a solicitation to buy any securities. This firm and
its affiliates and their officers and their employees may or may not have a position in or with respect to the securities
mentioned herein. This firm and its affiliates may from time to time, have a consulting relationship with a company being
reported upon. All opinions included in this report constitute our judgment as of this date and are subject to change without
notice.

Equitymaster Agora Research Pvt. Ltd.

25
 ALUMINIUM
The most commercially mined aluminium ore is bauxite, as it
has the highest content of the base metal. The primary
aluminium production process consists of three stages. First
is mining of bauxite, followed by refining of bauxite to alumina
and finally smelting of alumina to aluminium. India has the fifth
largest bauxite reserves with deposits of about 3 bn tonnes
or 5% of world deposits. India's share in world aluminium
capacity rests at about 3%. Production of 1 tonne of aluminium
requires 2 tonnes of alumina while production of 1 tonne of
alumina requires 2 to 3 tonnes of bauxite.
The aluminium production process can be categorised into
upstream and downstream activities. The upstream process
involves mining and refining while the downstream process
involves smelting and casting & fabricating. Downstream-
fabricated products consist of rods, sheets, extrusions and
foils.
Power is amongst the largest cost component in manufacturing
of aluminium, as the production involves electrolysis.
Consequently, manufacturers are located near cheap and
abundant sources of electricity such as hydroelectric power
plants. Alternatively, they could set up captive power plants,
which is the pattern in India. Indian manufacturers are the
lowest cost producers of the base metal due to access to
captive power, cheap labour and proximity to abundant supply
of raw material, i.e., bauxite.
The Indian aluminium sector is characterised by large integrated
players like Hindalco and National Aluminium Company (Nalco).
The other producers of primary aluminium include Indian
Aluminium (Indal), now merged with Hindalco, Bharat Aluminium
(Balco) and Madras Aluminium (Malco) the erstwhile PSUs,
which have been acquired by Sterlite Industries. Consequently,
there are only three main primary metal producers in the sector.
The per capita consumption of aluminium in India continues to
remain abysmally low at under 1 kg as against nearly 25 to 30
kgs in the US and Europe, 15 kgs in Japan, 10 kgs in Taiwan
and 3 kgs in China. The key consumer industries in India are
power, transportation, consumer durables, packaging and
construction. Of this, power is the biggest consumer (about
44% of total) followed by infrastructure (17%) and
transportation (about 10% to 12%). However, internationally,
the pattern of consumption is in favour of transportation,
primarily due to large-scale aluminium consumption by the
aviation space
The metal has a long working life due to its propensity for
recycling. Recycled metal requires significantly less amounts
of energy for manufacturing of primary aluminium. Just to put
things in perspective, the recycling of aluminium scrap requires
5% of the energy required for primary smelting, which is
astoundingly lower, considering that power is such a high
cost component.
FY08
Global production of primary aluminum increased by 12% YoY
to 38 MT in 2007. China alone accounted for 29% of global
primary aluminum production. Asia, once again showed the
largest annual increases in consumption of primary aluminum,
driven largely by increased industrial consumption in China,
which has emerged as the largest aluminum consuming nation,
accounting for 30% of global primary aluminum consumption
in 2007. As far as global consumption is concerned, it increased
by 8.2% in 2006 and touched 34.7 MT. In 2007, the
corresponding figures were 10% and 37.8 MT.
The Indian aluminium industry registered a strong double-digit
growth in 2007 in tune with the economic growth. Strong
growths in industrial, infrastructure, automobile, transportation
26
and power sectors were the drivers for the metals demand.
However, macroeconomic parameters like the rupee
appreciation, import duty cut and unrelenting cost-push
impacted the sector adversely. Thus causing margins to
squeeze at both ends. Although the average LME remained
strong but could not help the companies like Hindalco to
increase the domestic realisation due to fall in import duty and
rupee appreciation, causing a drop in average rupee realisation
per tonne of the primary metal as compared to FY07.
KEY POINTS
Supply: Supply of aluminum is in excess and any deficit can
be imported at low rates of duty. Currently, domestic
production comfortably meets domestic requirements.
Demand: Demand for aluminium is estimated to grow at 6%-
8% per annum in view of the low per capita consumption in
India. Also, demand for the metal is expected to pick up as
the scenario improves for user industries, like power,
infrastructure and transportation.
Barriers to entry: Large economies of scale. Consequently,
high capital costs.
Bargaining power of suppliers: Most domestic players
operate integrated plants. Bargaining power is limited in case
of power purchase, as Government is the only supplier.
However, increasing usage of captive power plants (CPP)
will help to rationalise power costs to a certain extent in the
long-term.
Bargaining power of customers: Being a commodity,
customers enjoy relatively high bargaining power, as prices
are determined on demand and supply.
Competition: Competition is primarily on quality and price,
as being a commodity, differentiation is difficult. However, the
recent spate of consolidation has reduced the competitive
pressure in the industry. Further, increasing value addition to
aluminium products has helped some companies protect
themselves from the high volatilities witnessed in this industry.
CURRENT SCENARIO AND PROSPECTS
Globally, newer packaging applications and increased usage
in automobiles is expected to keep the demand growth for
aluminium over 5% in the long-term. Asia will continue to be
the high consumption growth area led by China, which is
expected to continue to register double-digit growth rates in
aluminium consumption in the medium-term.
With key consuming industries forming part of the domestic
core sector, the aluminium industry is sensitive to fluctuations
in performance of the economy. Power, infrastructure and
transportation account for almost 3/4th of domestic aluminium
consumption. With the government focusing towards attaining
GDP growth rates above 8%, the key consuming industries
are likely to lead the way, which could positively impact
aluminium consumption. Domestic demand growth is estimated
to average in the region of over 8% over the longer-term.
Lowering of duties reduces the net tariff protection for
domestic aluminium producers. Aluminum imports are currently
subject to a customs duty of 5% and an additional surcharge
of 3% of the customs duty. With reduction in import duties,
domestic realisation of aluminium majors, namely Hindalco and
Nalco, is likely to be under pressure, as the buffer on
international prices is reduced. Moreover, with greater linkage
to international prices, volatility in financials could increase.
However, producers are moving downstream to negate the
higher volatility.
 ALUMINIUM
GLOBAL COMPARISON
FY08/CY07 Unit Hindalco Alcoa Chalco
Revenues US$ m 14,899 30,748 10,011
EBDITA US$ m 1,647 4,247 2,542
EBDITA margin % 11.1 13.8 25.4
Profit after tax US$ m 593 2,564 1,528
Net profit margin % 4.0 8.3 15.3
Return on equity % 13.8 15.5 19.3
Debt to equity x 1.9 0.5 0.2
Price to earnings x 7.5 11.5 6.3
Return on assets % 3.00 7 13.2
EV/EBIDTA x 7.9 7.6 1.5

ALCOA (US)

Alcoa was formed in 1888 and is based in Pittsburgh, Pennsylvania. It is the world's leading producer of primary
aluminum, fabricated aluminum, and alumina and is active in all major aspects of the industry. It serves the
aerospace, automotive, packaging, building and construction, commercial transportation, and industrial markets,
bringing design, engineering, production, and other capabilities of Alcoa's businesses as a single solution to
customers. The Company has 107,000 employees in 44 countries. The company has operations in Asia, Australia,
Europe, South America, and the United States. Alcoa has strategic partnership with Ferrari S.p.A. to develop aluminum
spaceframe technology for Ferrari vehicles.

CHALCO (CHINA)

Aluminium Corporation of China (Chalco) is the sole producer of alumina and the largest producer of primary
aluminum in the People's Republic of China. The company is the world's second-largest alumina producer and
third largest alumina refiner. The Group is primarily engaged in the production, sales and research of alumina and
primary aluminum. The business scope of the Group includes bauxite mining, alumina refining and primary
aluminum smelting. Its principal products include alumina, primary aluminum, gallium and carbon. The company
recorded total revenues to the tune of US$ 10 bn in 2007.

Source: Yahoo Finance, Company reports TTM - Trailing twelve months

27
 Regd off: Century Bhavan, 3rd Floor, Dr. Annie Besant Road, Mumbai - 400 025
HINDALCO INDUSTRIES LIMITED E-Mail: amalik@adityabirla.com
Web site: www.hindalco.com
Telephone: (022) 6662 6666 Fax: (022) 2422 7586
ALUMINIUM BIRLA ADITYA Tr agent: In-house
Chairman: Kumar Mangalam Birla SEC: Anil Malik AUD: Singhi & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1958 500440 HNDL:IN 1 123.7 -3.4 -12.4 6.4 3.1 1.5 152,280.90 325 INE038A01020
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 31.4% Exports (fob) Rs m 64,343 (Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 109,629
Indian inst/Mut Fund : 15.9% Fx inflow Rs m 64,350 232
FIIs/GDR : 23.0% Fx outflow Rs m 110,404
Free float : 29.8% Net fx Rs m -46,054
Shareholders : 333,136
194
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
156
High Rs 186 251 240
Low Rs 100 125 120
Sales per share Rs 113.9 180.6 503.9
Earnings per share Rs 13.6 23.2 19.5 118
Cash flow per share Rs 20.5 29.9 39.4 DAILY
Dividends per share Rs 2.2 1.7 1.85 100 DMA
Dividend yield (eoy) % 1.5 0.9 1 80
Book value per share Rs 80.5 110.5 141.4
Shares outstanding (eoy) m 1,159.27 1,159.27 1,227.13
Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions FV1,R1:4 - R1:4,PA
Price / Sales ratio x 1.3 1 0.4 No. of months 12 12 12
Avg P/E ratio x 10.5 8.1 9.3 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 7 6.3 4.6
Price / Book Value ratio x 1.8 1.7 1.3 From Operations Rs m 12,127 34,259 53,999
Dividend payout % 16.1 7.3 9.5 From Investments Rs m -19,435 -63,940 -180,724
Avg Mkt Cap Rs m 165,776 217,943 220,883 From Financial Activity Rs m 12,953 29,031 129,145
No. of employees `000 20 20 20 Net Cashflow Rs m 5,645 -650 2,421
Total wages/salary Rs m 5,029 5,717 43,457
Avg. sales/employee Rs Th 6,741.60 10,277.50 31,444.00 INTERIM RESULTS
Avg. wages/employee Rs Th 256.7 280.7 2,209.60 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 806.2 1,318.80 1,213.90 Net sales Rs m 49,597 45,317 50,102 46,475
Gross profit Rs m 9,217 8,006 7,967 9,490
INCOME DATA Gross profit margin % 18.6 17.7 15.9 20.4
Net Sales Rs m 132,089 209,312 618,409 Net profit Rs m 6,428 5,427 10,770 6,968
Other income Rs m 2,034 3,629 6,099 Net profit margin % 13.0 12.0 21.5 15.0
Total revenues Rs m 134,123 212,941 624,508
Gross profit Rs m 28,126 43,399 63,680 KEY DATA
Depreciation Rs m 7,915 7,793 24,510 Parameters Unit FY06 FY07 FY08
Interest Rs m 2,691 2,462 16,014 Aluminium Installed Capacity THTPA 455 461 471
Profit before tax Rs m 19,554 36,773 29,255 Aluminium Production THTPA 429 443 478
Minority Interest Rs m -106 -161 -2,206 Aluminium % of sales 50.8 40.1 37.2
Prior Period Items Rs m 0 0 5,481 Copper % of sales 46.7 59.9 62.8
Extraordinary Inc (Exp) Rs m 749 -168 441
Tax Rs m 4,402 9,586 9,098
NOTES
Profit after tax Rs m 15,795 26,858 23,873
Gross profit margin % 21.3 20.7 10.3 Hindalco is India's largest aluminium producer and has the distinction of being one of
Effective tax rate % 22.5 26.1 31.1 the lowest cost producers of the metal in the world. It is an integrated player, having
captive bauxite mines, power units and high value-added output. While the aluminium
Net profit margin % 12 12.8 3.9
business of the company contributes to almost half of the revenues, its share in
BALANCE SHEET DATA profits is much higher at over 80%, the balance being contributed by copper. In order
to bring more stability to its business, the company acquired the US based Novelis,
Current assets Rs m 78,782 86,685 214,742 the largest flat rolled aluminium maker in the world for a total consideration of US$ 6
Current liabilities Rs m 39,111 44,110 172,037 bn (includes debt worth approximately US$ 2.4 bn).
Net working cap to sales % 30 20.3 6.9
Current ratio x 2 2 1.2 The standalone topline of the company showed a tepid growth of 5% in FY08 as
Inventory Turnover Days 124 84 66 compared to previous year. The operating margins also dented by 4.2% on account
Debtors Turnover Days 36 27 40 of adverse price movements and currency fluctuations. Net profit grew 12% in FY08
Net fixed assets Rs m 98,834 111,533 381,037 but mainly due to a tax write back to the tune of Rs 5.4 bn. Aluminium segment
Share capital Rs m 986 1,043 1,226 accounted for 37% of the company's total revenues during FY08 as compared to 40%
"Free" reserves Rs m 88,769 120,545 166,180 in the previous fiscal. Although sales in volume terms were higher, realisations took
a hit. While the copper segment managed to grow its revenues by 10% YoY for the
Net worth Rs m 93,282 128,138 173,461
full year, PBIT was lower by 3% YoY. Unlike the aluminium segment, both the raw
Long term debt Rs m 28,114 68,254 297,619
material costs and the realizations in copper are dollar denominated and hence,
Total assets Rs m 209,248 276,959 734,701 impact of rupee appreciation was marginal if any. However, due to tightness in the
Interest coverage x 8.3 15.9 2.8 copper concentrate market, margins were squeezed.
Debt to equity ratio x 0.3 0.5 1.7
Sales to assets ratio x 0.6 0.8 0.8 Going forward, the biggest challenge for the company would be to maintain its
Return on assets % 15.2 14.9 8.5 performance once the aluminium price at the LME starts moving down. Although the
Return on equity % 16.9 21 13.8 company has taken a step in the right direction by acquiring Novelis and in the
Return on capital % 18.9 19.8 10.4 process reducing its dependence on the highly cyclical upstream segment, in the
Exports to sales % 27.6 33.3 10.4 initial years, it is likely to cause a drag on its operations as Novelis currently, is a loss
Imports to sales % 40.7 47.2 17.7 making company. Thus, the quicker it turns around, the better it will be for Hindalco.
GET MORE INFO AT WWW.EQUITYMASTER.COM

28
 Regd off: SIPCOT Indl. Complex, Madurai Bypass Rd., TV Puram P.O., Tuticorin - 2
STERLITE INDUSTRIES INDIA LIMITED + $ E-Mail: comp.sect@vedanta.co.in
Web site: www.sterlite-industries.com
Telephone: (0461) 661 2591 Fax: (0461) 234 0203
NON FERROUS MISCELLANEOUS Tr agent: Karvy Computershare, Plot 17-24, Vithalrao Nagar, Madhapur, Hyd. - 81
Chairman: Anil Agarwal SEC: Narendra Mehra AUD: Chaturvedi & Shah
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1975 500900 STLT:IN 2 587.8 1.0 -5.3 9.3 8.2 0.7 416,450.4 432.2 INE268A01031
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 5.5% Exports (fob) Rs m 70,340 (Rs)
Foreign collaborators : 57.0% Imports (cif) Rs m 114,989
Indian inst/Mut Fund : 5.7% Fx inflow Rs m 70,754 1200
FIIs/GDR : 24.4% Fx outflow Rs m 118,181
Free float : 7.4% Net fx Rs m -47,427
Shareholders : 72,514 920
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
640
High Rs 1,770 595 1,140
Low Rs 572 258 415
Sales per share Rs 1,174.8 436.7 348.7
Earnings per share Rs 150.2 80.3 63.5 360
DAILY
Cash flow per share Rs 197.3 94.7 71.9
Dividends per share Rs 3.12 4.00 4.00 100 DMA
Dividend yield (eoy) % 0.3 0.9 0.5 80
Book value per share Rs 540.8 178.7 314.8 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Shares outstanding (eoy) m 111.74 558.49 708.49
Bonus/Rights/Conversions BC FV2,B1:1 GDS
Price / Sales ratio x 1.0 1.0 2.2 No. of months 12 12 12
Avg P/E ratio x 7.8 5.3 12.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 5.9 4.5 10.8
Price / Book Value ratio x 2.2 2.4 2.5 From Operations Rs m 22,086 56,921 63,767
Dividend payout % 2.1 5.0 6.3 From Investments Rs m -16,172 -43,072 -131,355
Avg Mkt Cap Rs m 130,848 238,196 550,851 From Financial Activity Rs m -3,103 -13,869 80,989
No. of employees `000 NA NA NA Net Cashflow Rs m 2,811 -20 13,401
Total wages/salary Rs m 4,518 5,495 6,592
Avg. sales/employee Rs Th NA NA NA INTERIM RESULTS
Avg. wages/employee Rs Th NA NA NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA NA NA Net sales Rs m 65,671 52,332 67,659 57,701
Gross profit Rs m 14,748 12,505 15,611 13,822
INCOME DATA Gross profit margin % 22.5 23.9 23.1 24.0
Net Sales Rs m 131,272 243,868 247,054 Net profit Rs m 10,827 8,553 13,713 11,510
Other income Rs m 3,343 6,817 15,661 Net profit margin % 16.5 16.3 20.3 19.9
Total revenues Rs m 134,615 250,685 262,715
Gross profit Rs m 36,740 94,396 78,423 KEY DATA
Depreciation Rs m 5,269 8,039 5,950 Parameters Unit FY06 FY07 FY08
Interest Rs m 2,198 3,602 2,969 CC copper rods intalled THTPA 240 268 268
Profit before tax Rs m 32,616 89,572 85,165 CC copper rods Production THTPA 166.497 177.9 224.8
Minority Interest Rs m -5,568 -19,042 -18,591 CC copper rods sales THTPA 166.356 177.7 224.7
Prior Period Items Rs m 71 616 908 Copper % of sales 72.8 86.2 85.7
Extraordinary Inc (Exp) Rs m -101 -1,572 -528
Tax Rs m 10,236 24,733 21,935
NOTES
Profit after tax Rs m 16,782 44,841 45,019
Gross profit margin % 28.0 38.7 31.7 Sterlite Industries Ltd, the flagship company of the Vedanta Group is a leading
Effective tax rate % 31.4 27.6 25.8 producer of Copper in India. It was the first company in India to set up a Copper
Smelter and Refinery in private sector and operate the largest capacity continuous
Net profit margin % 12.8 18.4 18.2
cast copper rod plants. The company's operations span three activities of mining,
BALANCE SHEET DATA smelting and refining. Apart from copper, the company's products also include
sulphuric acid, phosphoric acids and other chemical products.
Current assets Rs m 60,422 90,594 106,634
Current liabilities Rs m 34,113 48,636 50,401 In FY08 the standalone topline of the company grew by 7% YoY driven by higher
Net working cap to sales % 20.0 17.2 22.8 domestic sales volumes. However the operating profits of the company declined by
Current ratio x 1.8 1.9 2.1 30% YoY while operating margins declined by 350 bps to 6.4% in FY08 mainly on
Inventory Turnover Days 54 42 49 account of higher energy prices. Moreover lower LME prices of zinc and aluminum,
Debtors Turnover Days 37 25 23 appreciation of rupee and higher LME prices of copper contracted the overall
Net fixed assets Rs m 85,497 97,176 124,367 margins. The bottomline growth of company came in at 21.4% higher than the topline
Share capital Rs m 559 1,117 1,417 and operating profits mainly on account of three-fold jump in other income. Moreover
"Free" reserves Rs m 59,220 97,775 220,573 decline in interest outgo and benign growth in depreciation further aided the
bottomline growth.
Net worth Rs m 60,428 99,817 223,026
Long term debt Rs m 26,812 14,769 14,518 As per company sources, the demand for copper, zinc and aluminium in India is
Total assets Rs m 170,871 239,990 393,942 expected to grow at a CAGR of 9%, 5% and 5% respectively till FY15. Similarly,
Interest coverage x 15.8 25.9 29.7 China will continue to be an attractive market and these two markets together will
Debt to equity ratio x 0.4 0.1 0.1 continue to drive the company's growth going forward. The company intends to
Sales to assets ratio x 0.8 1.0 0.6 further diversify its business through a planned entry into the commercial power
Return on assets % 21.8 42.3 20.2 generation business.
Return on equity % 27.8 44.9 20.2
Return on capital % 33.5 63.9 29.4
Exports to sales % 32.3 29.6 28.5
Imports to sales % 47.1 44.9 46.5
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29
 AUTO ANCILLARIES
The fortunes of the auto ancillary sector are closely linked to
those of the auto sector. Demand swings in any of the
segments (cars, two-wheelers, commercial vehicles) have
an impact on auto ancillary demand. Demand is derived from
original equipment manufacturers (OEM) as well as the
replacement market. Out of the total revenues, engine parts
account for 31% of the total revenues of the industry.
ACMA, the Indian auto component industry body had an
estimated 558 players registered with it in FY08. The industry
has grown at a CAGR of 27% between 2002 and 2007 with
total output in value terms touching US$ 15 bn in 2007. Exports
have grown at a higher rate of 35% CAGR between 2002 and
2007 with output touching US$ 2.9 bn.
Margins in the replacement market are higher than the OEM
market. The OEM market is very competitive and component
manufacturers have to compromise on margins to bag bulk
orders. Moreover, delivery schedules and quality standards
have to be adhered to very strictly.
Indian auto ancillary sector has traditionally suffered from poor
quality. While this still holds true for the unorganized sector,
the organized sector has been resorting to increased
automation to reduce the defect levels.
Lower labour costs gives Indian auto ancillary companies an
absolute cost advantage. To put things in perspective, ACMA
numbers suggest that wage cost accounts for 3% to 15% of
revenues for Indian manufacturers as compared to 20% to
40% for US players. India's strength in exports lies in forgings,
castings and plastics historically. But this is changing with
more component manufactures investing in upgradation of
technology in recent years.
FY08
With growth in passenger vehicles and light commercial
vehicles turning robust once again in FY08, auto component
industry also witnessed growth as output increased by 20%
in FY08 (estimated). Exports too continued with its strong
performance and grew by an impressive 40%.
In light of increased competition in the global market and over
supply situation, bigger auto majors faced significant pressure
on margins. Moreover, the imperative to invest in new product
development increased. This resulted in select global majors
increasing budget for outsourcing of components in order to
save cost.
Capacity utilisation rates of the auto ancillary sector as a whole
increased significantly in light of higher exports as well as
growth in domestic demand in FY08. The demand for light
commercial vehicles and passenger vehicles increased by 15%
and 14% in FY08.
The industry players had to grapple with the twin devils of
stronger rupee and higher input costs and as a consequence,
tremendous pressure was witnessed on margins
CURRENT SCENARIO AND PROSPECTS
There has been a conscious effort by manufacturers to
improve productivity of the suppliers in the past few years.
Though the number of active vendors has declined significantly
for auto manufacturers, technology transfer and fresh fund
infusions have resulted in improved productivity in the
remaining ones. Relaxation of FDI norms for the small-scale
sector could emerge as one of the key growth drivers in the
long run. The Indian automotive components industry has lined
up sizeable investment schedules for the next few years.
30
The automobile sector is cyclical and dependent on the growth
of the economy and improvement in infrastructure. Factors
like increased public spending, favorable interest rates and
general improvement in per capita income point towards higher
demand for automobiles in the future. Also, government's
initiatives in the infrastructure sector such as the Golden
Quadrilateral project and NHDP (National Highway Development
Programme) are likely to give boost to four-wheeler sales
especially CVs. Just to put things in perspective, we expect
CV segment to grow by 7% to 8%, 2-wheeler demand to
increase by around 12% to 15% and passenger car sales
growth at 10% to 12% over the medium to long term. This is a
positive for auto ancillary manufacturers.
In the long term, the growth of this sector will depend partly
on pace of indigenisation levels across all segments. The
prospects look bright as most companies are increasing the
indigenous components, in an effort to reduce their currency
losses and remain competitive. Also, the fact that auto
manufacturers like Ford, Hyundai and Maruti are exporting
cars, make the prospects look encouraging.
Margins are likely to come under pressure in the long term
because as competition increases, manufacturers will find it
difficult to increase prices and will try to cut costs. The burden
will eventually fall on auto ancillary players. In the near future
though, companies will need to have manufacturing lines that
can be adapted for new models, have strong technology
backing, an ability to export to developed markets, market
dominance in specific products and a growth plan driven by
volumes and product innovations. Companies will have to focus
on quality and abide by delivery schedules if they want to
survive. As manufacturers sourcing components are keen to
get components from fewer sources in future, this will lead to
consolidation in the sector.
The growing number of Free and Preferential trade agreements
being signed by India with countries like Thailand, Singapore
and other ASEAN countries will hurt the cost competitiveness
of Indian companies as Indian players play significantly higher
duties than their Asian counterparts. Therefore, Indian
companies might lose out on big orders if the duty structure is
not rationalised.
KEY POINTS
Supply : Low for high technology products. Unorganized
sector dominates the domestic component market due to
excise benefits. Generally, excess supply persists.
Demand : Linked to automobile demand. Export demand is
linked to the increasing acceptance towards outsourcing.
Barriers to entry : Capital, technology, OEM relationships,
customer service, distribution network to meet replacement
demand.
Bargaining power of suppliers : Low with OEMs.
Relatively high in the replacement market
Bargaining power of customers : Companies operating in
the export market face competition at a global level. At the
domestic level, market structure is fragmented for a large
number of ancillary products. Most companies adopt low cost
and differentiation strategies. In some products (like
batteries), only two or three companies control over 80% of
the market.
Competition : Will intensify, as global players will enter the
market leading to consolidation. Dereservation of SSI will
result in access to capital and technology
 AUTO ANCILLARIES
GLOBAL COMPARISON
FY08/CY07 Unit Bharat Forge Michelin Timken Delphi
Revenues US$ m 548 23,108 5,236 22,283
EBDITA US$ m 130 3,381 545 (1,221)
EBDITA margin % 23.8 14.6 10.4 NA
Net profit US$ m 68 1,058 219.39 (3,065)
Net profit margin % 12.5 4.6 4.2 NA
Return on equity % 18.6 14.7 12.8 NA
Return on assets % 6.9 4.5 5.2 NA
Debt to equity x 0.9 0.8 0.4 NA
Enterprise value US$ m 1,681 14,790 3,897 3,466
EV/EBITDA x 12.9 4.4 7.2 NA

MICHELIN (FRANCE)

Michelin manufactures and sells tyres for all kinds of vehicles ranging from bicycles to the space shuttle, including
cars, trucks, motorcycles, earthmover equipment, buses, subway trains and aircraft. It also publishes maps and
guides and operates a number of digital services in more than 170 countries. The firm's core asset is its ability of
constant technological innovation. Michelin employs nearly 114,346 people across all continents. In Africa (Nigeria)
and South America (Brazil), the Michelin companies have 25,000 hectares (75,000 acres) under cultivation. The
main objective of the cultivation is to improve the quality of the natural rubber, to boost rubber production and the
lifespan of the trees. In 2007, out of the total sales, Europe represented 50%, North America 33% and Asia, South
America and the Middle-East/Africa zone accounted for the remaining 17%.

TIMKEN (US)

Timken is a global leader in friction management and power transmission with 25,000 associates in 27 countries
and sales of US$ 5.2 bn in 2007. It manufactures engineered bearings, alloy and specialty steel, and related
components. Its bearings have a wide array of application ranging from horse-drawn wagons, passenger cars,
light and heavy trucks, trains, very small gear drives, to infrastructure development applications. Its steel products
are used in various applications, including bearings, automotive transmissions, engine crankshafts, oil drilling,
aerospace, and other similarly demanding applications. Timken also produces custom-made steel products. The
company was founded in 1897 and is headquartered in Canton, Ohio.

BOSCH (GERMANY)

The Bosch Group is a global institution with a broad range of products in the fields of mobile, communications,
traffic control engineering, power tools, household appliances, packaging machinery, industrial equipment, and
hydraulics and pneumatics. The company is headquartered in Stuttgart, Germany and has presence across 130
countries. Nearly half of the company's sales originate from more than 70 production facilities outside Germany.
The activities of the Bosch Group are divided amongst four business sectors - Automotive Equipment,
Communications Technology, Consumer Goods and Capital Goods. In India, Bosch has presence through its
subsidiary Bosch Ltd.

DELPHI (US)

Delphi Corporation (formerly Delphi Automotive Systems) has charted its own path after being spun off in 1999 from
General Motors. One of the world's leading auto components manufacturer, Delphi manufactures virtually everything
mechanical or electrical that goes into car making. Its primary businesses include its Dynamics, Propulsion &
Thermal division (energy and engine management systems and chassis, steering, and thermal systems products)
and its Electrical, Electronics, Safety & Interior division (automotive electronics, audio, aftermarket products, safety,
signal distribution, and communication systems). The bulk of Delphi's business comes from former parent GM.
Delphi filed Chapter 11 in 2005. The company recorded revenues of US$ 22 bn in 2007.

Source: Yahoo Finance, Company reports TTM - Trailing twelve months

31
 Regd off: 6th Floor, Cherupushpam Bldg., Shanmugham Road, Kochi - 682 031
APOLLO TYRES LIMITED E-Mail: pn.wahal@apollotyres.com
Web site: www.apollotyres.com
Telephone: (0124) 238 3002 Fax: (0124) 238 3351
TYRES RAUNAQ SINGH Tr agent: Apollo Tyres, Apollo House, 7, Institutional Area, Sector -32, Gurgaon - 1
Chairman: Onkar S. Kanwar SEC: P. N. Wahal AUD: Deloitte Haskins & Sells
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1972 500877 APTY:IN 1 36.8 16.7 -7.2 6.9 4.6 1.4 18,522.7 503.8 INE438A01022
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Promoters : 35.8% Exports (fob) Rs m 940 (Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 7,519
Indian inst/Mut Fund : 23.8% Fx inflow Rs m 940 67
FIIs/GDR : 5.0% Fx outflow Rs m 7,769
Free float : 35.8% Net fx Rs m -6,829
Shareholders : 145,571
54
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
41
High Rs 326 387 63
Low Rs 220 194 26
Sales per share Rs 686.0 926.6 96.0
Earnings per share Rs 23.2 25.2 5.5 28 DAILY
Cash flow per share Rs 42.2 50.5 8.2
100 DMA
Dividends per share Rs 4.50 4.50 0.50
Dividend yield (eoy) % 1.6 1.5 1.1 15
Book value per share Rs 165.3 201.4 24.2
Shares outstanding (eoy) m 38.34 46.40 488.44
Sep-05 Jun-06 Mar-07 Dec-07 Sep-08
Bonus/Rights/Conversions - PP FV1,WC
Price / Sales ratio x 0.4 0.3 0.5 No. of months 12 12 12
Avg P/E ratio x 11.8 11.5 8.1 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 6.5 5.8 5.4
Price / Book Value ratio x 1.7 1.4 1.8 From Operations Rs m 877 5,281 4,365
Dividend payout % 19.4 17.8 9.1 From Investments Rs m -965 -4,292 -1,367
Avg Mkt Cap Rs m 10,467 13,479 21,736 From Financial Activity Rs m 1,328 -1,023 -2,071
No. of employees `000 7 6 NA Net Cashflow Rs m 1,239 -33 928
Total wages/salary Rs m 1,675 4,090 4,434
Avg. sales/employee Rs Th 3,605.8 6,755.5 NA INTERIM RESULTS
Avg. wages/employee Rs Th 229.6 642.7 NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 121.9 183.8 NA Net sales Rs m 8,443 9,741 10,013 10,759
Gross profit Rs m 1,081 1,310 1,242 1,097
INCOME DATA Gross profit margin % 12.8 13.4 12.4 10.2
Net Sales Rs m 26,301 42,992 46,912 Net profit Rs m 511 622 592 486
Other income Rs m 19 157 212 Net profit margin % 6.1 6.4 5.9 4.5
Total revenues Rs m 26,320 43,149 47,124
Gross profit Rs m 2,315 3,942 5,927 KEY DATA
Depreciation Rs m 730 1,172 1,299 Parameters Unit FY06 FY07 FY08
Interest Rs m 505 962 785 Installed capacity - tyres 000's 7,934 8,823 9,659
Profit before tax Rs m 1,099 1,965 4,055 Capacity utilisation % 82.2 88.9 91.8
Minority Interest Rs m -16 0 0 Capex/sales % 8.6 5.6 2.5
Prior Period Items Rs m 0 0 0
Extraordinary Inc (Exp) Rs m 123 -2 -2
Tax Rs m 317 793 1,356
NOTES
Profit after tax Rs m 889 1,170 2,697
Gross profit margin % 8.8 9.2 12.6 Apollo Tyres is one of India's leading manufacturers of tyres with presence in the
Effective tax rate % 28.8 40.4 33.4 commercial vehicle OEM segment (supplier to Tata Motors and the like). It has
market leadership in the truck tyre replacement segment. The company also supplies
Net profit margin % 3.4 2.7 5.7
to car and tractor OEM majors.
BALANCE SHEET DATA
The company's standalone financial performance during FY08 continued to be
Current assets Rs m 10,106 14,130 14,807 impressive as bottomline grew by a strong 93%, on a much lower 12% growth in
Current liabilities Rs m 4,407 8,628 8,035 topline. There was a strong 320 basis point expansion in operating margins and as a
Net working cap to sales % 21.7 12.8 14.4 consequence, operating profits jumped 50% YoY. The comparatively stable raw
Current ratio x 2.3 1.6 1.8 material prices in the first half of FY 2008, coupled with a richer product mix and
Inventory Turnover Days 58 54 56 greater operating efficiencies, resulted in significant improvement in operating profit
Debtors Turnover Days 24 31 24 margin. Higher other income and a benign depreciation charge gave further boost to
Net fixed assets Rs m 9,186 13,463 13,001 the earnings. What more, the company maintained its leadership position in the
Share capital Rs m 383 464 489 commercial vehicle tyres segment.
"Free" reserves Rs m 5,882 9,187 12,302
Given its strong brand equity and steady growth in auto demand, the volume growth
Net worth Rs m 6,337 9,347 11,822 should not be an issue for Apollo Tyres going forward. Similarly, the benefits from
Long term debt Rs m 2,997 5,446 3,012 improved product mix are expected to continue. However, a major cause of concern
Total assets Rs m 19,297 27,907 28,074 is on the raw material side, as most of these are petroleum based and their prices are
Interest coverage x 3.2 3.0 6.2 linked to the movement in crude oil prices, which are highly volatile in nature. That
Debt to equity ratio x 0.5 0.6 0.3 said, if crude oil prices soften in the future, there could be a positive impact on
Sales to assets ratio x 1.4 1.5 1.7 margins. Furthermore, the successful integration of Dunlop Tyres South Africa, a
Return on assets % 14.9 14.4 23.5 company that it acquired in 2006 is also likely to give a further impetus to earnings.
Return on equity % 14.0 12.5 22.8
Return on capital % 18.3 19.8 32.6
Exports to sales % 0.0 1.0 2.0
Imports to sales % 18.9 21.3 16.0
GET MORE INFO AT WWW.EQUITYMASTER.COM

32
 Regd off: 12, Basant Lok, New Delhi - 110057
ASAHI INDIA GLASS LIMITED E-Mail: investorrelations@aisglass.com
Web site: www.asahiindia.com
Telephone: (0124) 406 2212/19 Fax: (0124) 406 2244
AUTO ANCILLARIES,FORGINGS MISCELLANEOUS Tr agent: Intime Spectrum, C13, Pannalal Silk Mills Cmpd., LBS Marg, Mumbai - 78
Chairman: B. M. Labroo SEC: Meenu Juneja (Legal) AUD: Jagdish Sapra & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1987 515030 AISG:IN 1 54.6 2.2 -48.4 104.0 7.9 0.0 8,732.2 5.8 INE439A01020
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 30.0% Exports (fob) Rs m 694 (Rs)
Foreign collaborators : 25.3% Imports (cif) Rs m 2,404
Indian inst/Mut Fund : 6.3% Fx inflow Rs m 705 160
FIIs/GDR : 5.5% Fx outflow Rs m 3,356
Free float : 33.1% Net fx Rs m -2,651
Shareholders : 59,085
130
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
100
High Rs 120 152 137
Low Rs 69 70 60
Sales per share Rs 37.0 47.9 62.3
Earnings per share Rs 5.4 2.7 0.5 70
DAILY
Cash flow per share Rs 5.8 6.8 6.9
Dividends per share Rs 0.60 0.65 0.00 100 DMA
Dividend yield (eoy) % 0.6 0.6 0.0 40
Book value per share Rs 15.7 17.7 18.2
Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Shares outstanding (eoy) m 159.93 159.93 159.93
Bonus/Rights/Conversions B1:1 - -
Price / Sales ratio x 2.6 2.3 1.6 No. of months 12 12 12
Avg P/E ratio x 17.5 40.9 187.5 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 16.3 16.3 14.3
Price / Book Value ratio x 6.0 6.3 5.4 From Operations Rs m 899 405 -397
Dividend payout % 11.1 24.0 0.0 From Investments Rs m -4,995 -3,809 -1,434
Avg Mkt Cap Rs m 15,113 17,752 15,753 From Financial Activity Rs m 4,088 3,503 1,811
No. of employees `000 NA NA NA Net Cashflow Rs m -7 99 -20
Total wages/salary Rs m 443 572 795
Avg. sales/employee Rs Th NA NA NA INTERIM RESULTS
Avg. wages/employee Rs Th NA NA NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA NA NA Net sales Rs m 2,470 2,585 2,630 3,212
Gross profit Rs m 387 380 415 -134
INCOME DATA Gross profit margin % 15.7 14.7 15.8 -4.2
Net Sales Rs m 5,912 7,665 9,958 Net profit Rs m 60 -33 -106 -409
Other income Rs m 37 103 577 Net profit margin % 2.4 -1.3 -4.0 -12.7
Total revenues Rs m 5,949 7,768 10,535
Gross profit Rs m 1,172 1,439 1,425 KEY DATA
Depreciation Rs m 65 655 1,018 Parameters Unit FY06 FY07 FY08
Interest Rs m 109 355 849 Float glass capacity (m sq.mts) 29.2 73.7 73.7
Profit before tax Rs m 1,035 532 135 Capacity utilisation % 83.6 52.9 84.8
Minority Interest Rs m 0 -2 10 Capex/sales % 22.4 51.8 9.2
Prior Period Items Rs m -1 -10 -3
Extraordinary Inc (Exp) Rs m -121 125 2
Tax Rs m 50 211 60
NOTES
Profit after tax Rs m 863 434 84
Gross profit margin % 19.8 18.8 14.3 Asahi India was promoted by the Labroo family, Asahi Glass (Japan) and Maruti
Effective tax rate % 4.8 39.7 44.4 Udyog. From being a sole supplier to Maruti, the company has come a long way to
emerge as the largest integrated glass company in India. It has over 80% market
Net profit margin % 14.6 5.7 0.8
share in the automotive glass industry and 25% market share in the float glass
BALANCE SHEET DATA industry. The company has also entered into the architectural business in order to
diversify its business model. For this purpose, it has incorporated a wholly owned
Current assets Rs m 2,838 4,713 6,042 subsidiary, AIS Glass Solutions. This subsidiary will act as a front-end for its foray in
Current liabilities Rs m 1,362 2,274 2,088 architectural glass process and rendering services.
Net working cap to sales % 25.0 31.8 39.7
Current ratio x 2.1 2.1 2.9 The company continued to experience severe margin pressure for most of FY08. As
Inventory Turnover Days 92 115 134 a consequence, the company's standalone bottomline was shattered by a huge 68%
Debtors Turnover Days 20 34 39 YoY despite a 30% growth in topline. The main culprit had been the raw material
Net fixed assets Rs m 9,725 13,029 13,450 costs, which increased substantially as a percentage of sales and eroded the
Share capital Rs m 160 160 160 company's operating margins by 400 basis points. Pressure at the operating level
"Free" reserves Rs m 2,292 2,607 2,691 was further compounded by a strong rise in both interest as well as depreciation
charges as they increased by 139% and 54% YoY respectively, thus lowering the
Net worth Rs m 2,516 2,832 2,917
bottomline by 68% YoY.
Long term debt Rs m 5,984 5,457 9,241
Total assets Rs m 12,640 17,804 19,547 Although automotive glass business is expected to perform strongly over the medium
Interest coverage x 10.5 2.5 1.2 term, we believe the real growth will come from the architectural glass segment,
Debt to equity ratio x 2.4 1.9 3.2 whose market size can be pegged to atleast 3 to 4 times the automotive business and
Sales to assets ratio x 0.5 0.4 0.5 which is growing at approximately 25%-30% per year over the past five years. More
Return on assets % 11.4 9.5 7.7 importantly, the average realisation in the architectural segment is significantly higher
Return on equity % 34.3 15.3 2.9 as compared to the automotive glass business. Hence, the company's foray into this
Return on capital % 12.0 12.1 8.2 segment is a big positive. Margins are also likely to receive a fillip, given the
Exports to sales % 1.4 5.1 7.0 company's plans to backward integrate by meeting a large part of its float glass
Imports to sales % 60.8 45.4 24.1 requirement internally.
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33
 Regd off: Mundhwa, Pune Cantonment, Pune - 411 036
BHARAT FORGE LIMITED E-Mail: secretarial@bharatforge.com
Web site: www.bharatforge.com
Telephone: (020) 2670 2777 Fax: (020) 2682 2163
AUTO ANCILLARIES,FORGINGS KALYANI Tr agent: In-house
Chairman: B. N. Kalyani (MD) SEC: Ashish M. Boradkar AUD: Dalal & Shah
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1961 500493 BHFC:IN 2 250.5 -2.3 -8.1 18.6 10.6 1.4 55,762.7 59.2 INE465A01025
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 40.6% Exports (fob) Rs m 9,502 (Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 2,612
Indian inst/Mut Fund : 14.6% Fx inflow Rs m 10,672 498
FIIs/GDR : 14.4% Fx outflow Rs m 3,409 DAILY
Free float : 30.4% Net fx Rs m 7,263
Shareholders : 65,933 100 DMA
426
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
High Rs 485 469 390
354
Low Rs 240 221 245
Sales per share Rs 135.8 187.7 209.0
Earnings per share Rs 11.3 13.2 13.5 282
Cash flow per share Rs 17.0 21.6 23.7
Dividends per share Rs 3.00 3.50 3.50
Dividend yield (eoy) % 0.8 1.0 1.1
210
Book value per share Rs 56.4 66.5 74.3
Shares outstanding (eoy) m 222.26 222.65 222.65 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions FV2,GDR BC -
Price / Sales ratio x 2.7 1.8 1.5 No. of months 12 12 12
Avg P/E ratio x 32.1 26.2 23.6 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 21.3 16.0 13.4
Price / Book Value ratio x 6.4 5.2 4.3 From Operations Rs m 2,646 3,771 4,284
Dividend payout % 26.6 26.6 26.0 From Investments Rs m -6,388 -4,474 -7,384
Avg Mkt Cap Rs m 80,569 76,814 70,691 From Financial Activity Rs m 9,223 4,159 -3,106
No. of employees `000 NA 4 NA Net Cashflow Rs m 5,481 3,457 -6,206
Total wages/salary Rs m 4,165 6,164 6,780
Avg. sales/employee Rs Th NA 11,938.0 NA INTERIM RESULTS
Avg. wages/employee Rs Th NA 1,761.1 NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA 838.0 NA Net sales Rs m 5,632 5,567 5,797 6,374
Gross profit Rs m 1,383 1,363 1,437 1,558
INCOME DATA Gross profit margin % 24.6 24.5 24.8 24.4
Net Sales Rs m 30,189 41,783 46,523 Net profit Rs m 678 582 525 958
Other income Rs m 661 969 993 Net profit margin % 12.0 10.5 9.1 15.0
Total revenues Rs m 30,850 42,752 47,516
Gross profit Rs m 5,110 6,220 6,745 KEY DATA
Depreciation Rs m 1,281 1,881 2,271 Parameters Unit FY06 FY07 FY08
Interest Rs m 531 805 965 Forging capacity THTPA 200 240 240
Profit before tax Rs m 3,959 4,503 4,502 Capacity utilisation % 68.4 68.8 79.9
Minority Interest Rs m 0 71 106 Capex/sales % 20.1 20.7 21.1
Prior Period Items Rs m 1 27 -15
Extraordinary Inc (Exp) Rs m -34 -139 -3
Tax Rs m 1,419 1,529 1,589
NOTES
Profit after tax Rs m 2,507 2,933 3,001
Gross profit margin % 16.9 14.9 14.5 Bharat Forge is the second largest forging company in the world with operations at
Effective tax rate % 35.8 34.0 35.3 nine locations in six countries and a consolidated capacity of 700,000 tonnes in FY08.
It is the largest exporter of auto components from India and a leading chassis
Net profit margin % 8.3 7.0 6.5
component manufacturer in the world. It manufacturers a wide range of critical
BALANCE SHEET DATA components for passenger cars, commercial vehicles and diesel engines. It has an
impressive client list in both domestic and international markets.
Current assets Rs m 20,849 27,686 24,781
Current liabilities Rs m 12,999 14,994 16,418 Thanks to the company's well diversified business model, it was able to beat the
Net working cap to sales % 26.0 30.4 18.0 commercial vehicle slowdown in its key markets of India and US and grow its
Current ratio x 1.6 1.8 1.5 standalone topline by a respectable 18% YoY for FY08. Infact, had it not been for the
Inventory Turnover Days 57 54 57 9% appreciation of rupee against the dollar, growth would have been even higher.
Debtors Turnover Days 50 57 53 However, operating margin erosion of 130 basis points, higher interest expenses and
Net fixed assets Rs m 14,806 19,443 23,603 depreciation charges restricted the bottomline growth to 14% YoY and that too,
Share capital Rs m 445 445 445 thanks to an exceptional item. Excluding the same, bottomline suffered a 2% YoY fall.
"Free" reserves Rs m 11,829 13,984 15,824 On the consolidated front, the bottomline growth stood at 4% YoY, albeit on a much
higher topline growth of 11% YoY.
Net worth Rs m 12,542 14,796 16,541
Long term debt Rs m 7,397 10,996 11,839 With a de-risked business model, both from a geographical and a product
Total assets Rs m 38,190 49,208 51,381 perspective, growth is unlikely to be a problem for the company in the medium term.
Interest coverage x 8.5 6.6 5.7 Further, with the company striving to become an end- to-end supplier to the global
Debt to equity ratio x 0.6 0.7 0.7 automotive majors, significant erosion in margins is unlikely to be the case. Bharat
Sales to assets ratio x 0.8 0.8 0.9 Forge has also lined up investments to cater to the high margin non-automotive
Return on assets % 15.2 14.5 14.0 forgings segments like hydrocarbon, energy and aerospace. Thus, with a strong
Return on equity % 20.0 19.8 18.1 management and robust expansion plans, Bharat Forge is one of the better-placed
Return on capital % 22.4 20.4 19.6 companies in the Indian forgings space.
Exports to sales % 21.2 17.5 20.4
Imports to sales % 9.4 4.3 5.6
GET MORE INFO AT WWW.EQUITYMASTER.COM

34
 Regd off: Hosur Road, Adugodi, Bangalore - 560 030
BOSCH LIMITED E-Mail: investor@in.bosch.com
Web site: www.boschindia.com
Telephone: (080) 2222 0088 Fax: (080) 2299 2181
AUTO ANCILLARIES,FORGINGS MNC Tr agent: Alpha Sys., Ramana Residency, 4th Cross, Sampige Rd., Banglore - 3
Chairman: Hubert Zimmerer SEC: B. S. Iyer AUD: Price Waterhouse & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1951 500530 BOS:IN 10 3,847.0 0.5 -6.2 20.2 14.3 0.6 123,294.7 1.5 INE323A01026
SHAREHOLDING FX Transaction (CY07) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 6,730 (Rs)
Foreign collaborators : 69.7% Imports (cif) Rs m 9,179
Indian inst/Mut Fund : 15.8% Fx inflow Rs m 7,223 5800
FIIs/GDR : 4.5% Fx outflow Rs m 14,898
Free float : 10.0% Net fx Rs m -7,675
Shareholders : 21,522
4800
No. of months 12 12 12
Year ending 31/12/05 31/12/06 31/12/07
EQUITY SHARE DATA
3800
High Rs 2,968 3,855 5,880
Low Rs 1,751 2,350 3,030
Sales per share Rs 929.0 1,180.6 1,335.3
Earnings per share Rs 107.0 171.0 190.1 2800
DAILY
Cash flow per share Rs 168.8 247.9 269.3
Dividends per share Rs 12.00 16.00 25.00 100 DMA
Dividend yield (eoy) % 0.5 0.5 0.6
1800
Book value per share Rs 484.5 637.1 799.8
Shares outstanding (eoy) m 32.05 32.05 32.05 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 2.5 2.6 3.3 No. of months 12 12 12
Avg P/E ratio x 22.0 18.1 23.4 Year ending 31/12/05 31/12/06 31/12/07
CASH FLOW
P/CF ratio (eoy) x 14.0 12.5 16.5
Price / Book Value ratio x 4.9 4.9 5.6 From Operations Rs m 4,706 3,613 6,245
Dividend payout % 11.2 9.4 13.2 From Investments Rs m -3,691 -2,595 -5,973
Avg Mkt Cap Rs m 75,622 99,435 142,783 From Financial Activity Rs m -143 -99 -231
No. of employees `000 10 10 11 Net Cashflow Rs m 873 918 41
Total wages/salary Rs m 3,736 3,938 4,806
Avg. sales/employee Rs Th 3,015.5 3,771.3 4,033.6 INTERIM RESULTS
Avg. wages/employee Rs Th 378.4 392.5 453.0 3QCY07 4QCY07 1QCY08 2QCY08
Avg. net profit/employee Rs Th 347.4 546.2 574.2 Net sales Rs m 10,313 11,070 12,051 12,211
Gross profit Rs m 1,944 1,124 2,332 2,046
INCOME DATA Gross profit margin % 18.8 10.2 19.4 16.8
Net Sales Rs m 29,775 37,837 42,797 Net profit Rs m 1,367 1,244 1,617 2,197
Other income Rs m 1,883 2,192 3,818 Net profit margin % 13.3 11.2 13.4 18.0
Total revenues Rs m 31,658 40,029 46,615
Gross profit Rs m 5,443 6,852 7,319 KEY DATA
Depreciation Rs m 1,981 2,465 2,539 Parameters Unit CY05 CY06 CY07
Interest Rs m 136 64 38 Fuel injection capacity 000's 2,869 2,873 3,324
Profit before tax Rs m 5,209 6,515 8,560 Capacity utilisation % 80.7 91.8 92.0
Minority Interest Rs m 0 0 0 Capex/sales % 10.7 7.3 7.2
Prior Period Items Rs m 256 201 191
Extraordinary Inc (Exp) Rs m 81 1,468 0
Tax Rs m 2,116 2,704 2,659
NOTES
Profit after tax Rs m 3,430 5,480 6,092
Gross profit margin % 18.3 18.1 17.1 Bosch has been present in India for over 50 years, through its flagship company
Effective tax rate % 40.6 41.5 31.1 MICO, the name of which was recently changed to Bosch Ltd. Bosch Limited today
is the country's largest auto component manufacturer and also one of the largest
Net profit margin % 11.5 14.5 14.2
Indo-German companies in India. The Bosch Group holds close to 70% stake in
BALANCE SHEET DATA Bosch Limited. The company is headquartered in Bangalore with manufacturing
facilities in Bangalore, Nashik, Naganathapura, Jaipur and the recently opened
Current assets Rs m 16,119 19,274 20,563 facility in Goa. It manufactures and trades products as diverse as diesel and gasoline
Current liabilities Rs m 10,396 11,038 10,984 fuel injection systems, Blaupunkt car multimedia systems, auto electricals, industrial
Net working cap to sales % 19.2 21.8 22.4 equipment, special purpose machines, packaging machines, electric power tools and
Current ratio x 1.6 1.7 1.9 security systems.
Inventory Turnover Days 46 48 41
Debtors Turnover Days 46 51 50 The company continued to face cost pressures during CY07. Although the topline
Net fixed assets Rs m 4,722 5,415 6,454 growth at 13% YoY was impressive, rising input costs and increasing competition had
Share capital Rs m 321 321 321 a negative influence on margins. As a consequence, operating profits grew by a
"Free" reserves Rs m 15,201 20,092 25,307 modest 7% YoY as operating margins shrunk by 100 basis points (1%). While the
bottomline witnessed an 11% YoY growth, excluding the extraordinary, the bottomline
Net worth Rs m 15,528 20,420 25,634
growth stood at an impressive 54% YoY. The proportion of non-automotive business
Long term debt Rs m 1,508 1,891 2,327
of the company increased from 8% in 2006 to 10% in 2007.
Total assets Rs m 26,050 31,957 37,654
Interest coverage x 39.3 102.8 226.3 With the growth in diesel passenger car segment, the demand for common rail
Debt to equity ratio x 0.1 0.1 0.1 systems is expected to improve significantly in the coming years. Bosch backed up
Sales to assets ratio x 1.1 1.2 1.1 by the parent technology and its own efforts at quality improvement and cost control
Return on assets % 20.9 24.8 21.9 is set to take advantage of this opportunity. The company also sees significant
Return on equity % 22.1 26.8 23.8 potential in the exports of Common Rail components. The company with its wide
Return on capital % 33.4 37.0 31.4 array of products, both in the automotive and non-automotive sectors, is in a position
Exports to sales % 14.2 16.6 15.7 to further strengthen its market position. High interest rates and crude prices remain
Imports to sales % 29.0 26.4 21.4 a matter of concern in the short term.
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35
 Regd off: Exide House, 59E, Chowringhee Road, Kolkata - 700 020
EXIDE INDUSTRIES LIMITED E-Mail: prakashr@cal.exide.co.in
Web site: www.exideindustries.com
Telephone: (033) 2283 2150 Fax: (033) 2247 2642
AUTO ANCILLARIES,FORGINGS MISCELLANEOUS Tr agent: C.B. Management Services, P-22, Bondel Road, Kolkata - 19
Chairman: R. G. Kapadia SEC: Barun Das AUD: S. R. Batliboi & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1947 500086 CHLR:IN 1 68.6 -4.8 6.4 33.4 24.0 0.6 54,840.0 45.5 INE302A01020
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.00% Exports (fob) Rs m 1,360 (Rs)
Foreign collaborators : 48.90% Imports (cif) Rs m 6,178
Indian inst/Mut Fund : 18.90% Fx inflow Rs m 1,370 98
FIIs/GDR : 10.70% Fx outflow Rs m 6,438
Free float : 21.50% Net fx Rs m -5,068
Shareholders : 57,324
76
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
54
High Rs 278 51 91
Low Rs 138 19 39
Sales per share Rs 195.7 26.4 37.2
Earnings per share Rs 9.4 0.9 2.1 32
DAILY
Cash flow per share Rs 16.9 1.7 2.9
Dividends per share Rs 3.00 0.35 0.40 100 DMA
Dividend yield (eoy) % 1.4 1.0 0.6
10
Book value per share Rs 72.1 7.6 10.6
Shares outstanding (eoy) m 75.00 750.00 800.00 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - FV1 R1:15
Price / Sales ratio x 1.1 1.3 1.7 No. of months 12 12 12
Avg P/E ratio x 22.1 38.3 31.6 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 12.3 21.1 22.8
Price / Book Value ratio x 2.9 4.6 6.1 From Operations Rs m 2,234 1,874 1,782
Dividend payout % 31.9 38.3 19.5 From Investments Rs m -1,903 -1,962 -2,926
Avg Mkt Cap Rs m 15,600 26,250 52,000 From Financial Activity Rs m -512 -64 1,169
No. of employees `000 4 4 4 Net Cashflow Rs m -182 -152 26
Total wages/salary Rs m 1,158 1,429 1,718
Avg. sales/employee Rs Th 3,843.2 5,165.2 7,657.2 INTERIM RESULTS
Avg. wages/employee Rs Th 303.1 373.0 441.9 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 184.8 179.1 422.6 Net sales Rs m 6,678 7,219 7,913 9,065
Gross profit Rs m 1,172 1,090 1,123 1,498
INCOME DATA Gross profit margin % 17.6 15.1 14.2 16.5
Net Sales Rs m 14,681 19,788 29,771 Net profit Rs m 622 552 628 822
Other income Rs m 106 98 117 Net profit margin % 9.3 7.6 7.9 9.1
Total revenues Rs m 14,787 19,886 29,888
Gross profit Rs m 1,946 2,274 3,889 KEY DATA
Depreciation Rs m 564 559 640 Parameters Unit FY06 FY07 FY08
Interest Rs m 256 302 421 Installed capacity - batteries 000's 15,509 18,308 19,786
Profit before tax Rs m 1,232 1,511 2,945 Capacity utilisation % 93.5 93.1 90.1
Minority Interest Rs m -9 -10 -20 Capex/sales % 1.8 4.7 5.9
Prior Period Items Rs m 0 0 0
Extraordinary Inc (Exp) Rs m 0 0 0
Tax Rs m 517 815 1,282
NOTES
Profit after tax Rs m 706 686 1,643
Gross profit margin % 13.3 11.5 13.1 Exide is India's largest storage battery company. The company manufactures the
Effective tax rate % 42.0 53.9 43.5 widest range of storage batteries in the world from 2.5 Ah to 15,000 Ah capacities,
covering the broadest spectrum of applications. Currently, the company has a
Net profit margin % 4.8 3.5 5.5
domestic market share of 45% in industrial, 72% in Auto OEM and 73% in
BALANCE SHEET DATA replacement auto. The company, being the domestic storage battery major is also
one of the largest power storage solution companies in South-East Asia. It has a
Current assets Rs m 4,950 6,355 9,868 technology tie up with Shin Kobe Electric Machinery Co and VRLA batteries and The
Current liabilities Rs m 3,058 4,297 6,215 Furukawa Battery Co.
Net working cap to sales % 12.9 10.4 12.3
Current ratio x 1.6 1.5 1.6 With a strong growth in the passenger car segment coupled with robust industrial
Inventory Turnover Days 66 78 79 demand, the company registered an impressive 52% YoY growth in standalone
Debtors Turnover Days 45 33 36 topline in FY08. Moreover, despite an increase in lead prices, operating margins
Net fixed assets Rs m 4,780 5,209 6,593 remained stagnant, thanks mainly to its ability to raise prices. Bottomline grew at a
Share capital Rs m 750 750 800 higher rate of 61% YoY due to lower than proportionate growth in interest and
"Free" reserves Rs m 4,111 4,482 7,185 depreciation charges. Net profit margins improved by 50 basis points to 8.8%.
Net worth Rs m 5,409 5,709 8,466 Going forward, as the automobile industry is expected to grow at a steady pace,
Long term debt Rs m 1,315 2,468 2,811 topline growth does not appear to be a major concern for Exide. This growth could
Total assets Rs m 12,013 13,942 19,018 also be propelled by supply of submarine batteries to the Indian Navy and strong
Interest coverage x 5.8 6.0 8.0 demand for industrial batteries from sectors like telecom, power, malls and
Debt to equity ratio x 0.2 0.4 0.3 multiplexes. Having said that, the main causes of concern are falling average
Sales to assets ratio x 1.2 1.4 1.6 realisations, elongated replacement cycle, threat from imports and uncertainty about
Return on assets % 14.3 12.1 18.3 the lead prices. Another cause of concern can be on the working capital side, with
Return on equity % 13.1 12.0 19.4 respect to higher credit period demanded by OEMs. This could directly affect the
Return on capital % 22.0 22.0 29.7 bottomline by way of rising interest expenses.
Exports to sales % 4.7 4.2 4.6
Imports to sales % 23.0 24.9 20.8
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36
 Regd off: Bhageria House, 43Community Centre, New Friends Col., New Delhi - 25
MOTHERSON SUMI SYSTEMS LTD. E-Mail: investorrelations@mssl.motherson.com
Web site: www.motherson.com
Telephone: (0120) 247 6100 Fax: (0120) 252 1966
AUTO ANCILLARIES,FORGINGS MISCELLANEOUS Tr agent: Karvy Computershare, 46, Avenue 4, St. No. 1, Banjara Hills, Hyd. - 34
Chairman: Vivek Chaand Sehgal SEC: G. N. Gauba (CFO) AUD: Price Waterhouse
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1983 517334 MSS:IN 1 88.9 16.1 -7.1 17.8 12.0 1.5 31,608.4 2.4 INE775A01035
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 34.2% Exports (fob) Rs m 2,499 (Rs)
Foreign collaborators : 36.9% Imports (cif) Rs m 4,396
Indian inst/Mut Fund : 4.6% Fx inflow Rs m 2,526 128
FIIs/GDR : 6.1% Fx outflow Rs m 4,777
Free float : 18.3% Net fx Rs m -2,251
Shareholders : 8,540
106
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
84
High Rs 108 118 124
Low Rs 57 70 67
Sales per share Rs 43.2 65.0 57.0
Earnings per share Rs 4.6 5.5 5.0 62
DAILY
Cash flow per share Rs 6.5 8.3 7.4
Dividends per share Rs 1.50 1.50 1.35 100 DMA
Dividend yield (eoy) % 1.8 1.6 1.4
40
Book value per share Rs 9.3 13.7 13.9
Shares outstanding (eoy) m 234.89 234.89 355.56 Sep-05 Jun-06 Mar-07 Dec-07 Sep-08
Bonus/Rights/Conversions - - B1:2,FCCB
Price / Sales ratio x 1.9 1.4 1.7 No. of months 12 12 12
Avg P/E ratio x 18.1 17.0 19.1 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 12.6 11.4 12.9
Price / Book Value ratio x 8.9 6.9 6.9 From Operations Rs m 916 882 2,037
Dividend payout % 32.9 27.2 27.0 From Investments Rs m -1,802 -1,509 -1,900
Avg Mkt Cap Rs m 19,378 22,080 33,956 From Financial Activity Rs m 2,380 -201 -178
No. of employees `000 NA NA NA Net Cashflow Rs m 1,494 -829 -41
Total wages/salary Rs m 1,024 1,682 2,467
Avg. sales/employee Rs Th NA NA NA INTERIM RESULTS
Avg. wages/employee Rs Th NA NA NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA NA NA Net sales Rs m 4,729 5,168 5,867 6,018
Gross profit Rs m 707 725 719 572
INCOME DATA Gross profit margin % 15.0 14.0 12.3 9.5
Net Sales Rs m 10,155 15,276 20,281 Net profit Rs m 386 372 644 316
Other income Rs m 197 272 315 Net profit margin % 8.2 7.2 11.0 5.3
Total revenues Rs m 10,352 15,548 20,596
Gross profit Rs m 1,597 2,291 2,845 KEY DATA
Depreciation Rs m 463 646 847 Parameters Unit FY06 FY07 FY08
Interest Rs m 200 292 289 Production (Wiring Harness) 000's 16,779 16,270 23,305
Profit before tax Rs m 1,131 1,625 2,024 Capacity utilisation % NA NA NA
Minority Interest Rs m -20 8 28 Capex/sales % 20.7 8.4 12.0
Prior Period Items Rs m 20 57 0
Extraordinary Inc (Exp) Rs m 130 0 240
Tax Rs m 189 395 514
NOTES
Profit after tax Rs m 1,072 1,295 1,778
Gross profit margin % 15.7 15.0 14.0 Motherson Sumi Systems Limited (MSSL), the flagship company of the Sumi
Effective tax rate % 16.7 24.3 25.4 Motherson Group, is a joint venture between Sumitomo Wiring Systems (Japan),
Sojitz Corporation (Japan) and Motherson Group. MSSL is the largest producer of
Net profit margin % 10.6 8.5 8.8
automotive wiring harnesses in India. It also supplies wiring harnesses to other
BALANCE SHEET DATA industries such as material handling and earth moving and farm equipment. It
recently acquired Empire Rubber engaged in compounding and insulation
Current assets Rs m 5,689 6,758 9,039 components in Australia. It also entered in JV with Clasonic Kansei, Japan to
Current liabilities Rs m 2,931 3,808 5,306 manufacture compressors, HVAC systems and variety of modules. The company
Net working cap to sales % 27.2 19.3 18.4 also has expertise in project management.
Current ratio x 1.9 1.8 1.7
Inventory Turnover Days 52 48 52 With both the passengers car segment continuing to do well, MSSL reported decent
Debtors Turnover Days 50 58 59 results for FY08. Driven by 24% YoY and 7% YoY growth in standalone domestic and
Net fixed assets Rs m 3,780 5,028 6,314 exports revenues, the overall topline of the company grew by 21% YoY during the
Share capital Rs m 235 235 356 fiscal. Operating profits grew at a lower rate of 3.1% YoY as margins declined by 250
"Free" reserves Rs m 2,113 2,990 4,380 basis points. However, the bottomline growth came in at a higher 12% YoY, led by
higher other income. On the whole, the company achieved higher topline growth rate
Net worth Rs m 2,184 3,211 4,939
compared to domestic automotive industry. This was supported by increased
Long term debt Rs m 3,405 3,496 3,240
business with customers within India as well as a increase in overseas sales.
Total assets Rs m 9,516 11,843 15,402
Interest coverage x 6.7 6.6 8.0 With the car penetration in India at just 7 per thousand people, the company expects
Debt to equity ratio x 1.6 1.1 0.7 robust volume growth coming out of all its major customers. The company also
Sales to assets ratio x 1.1 1.3 1.3 expects to strengthen its wiring harness industry presence through acquisitions that
Return on assets % 22.8 23.7 25.3 will widen its product basket and market presence. Thus, through these and other
Return on equity % 49.1 40.3 36.0 initiatives it is trying to become complete system solution provider. MSSL has set
Return on capital % 26.1 29.6 31.6 itself a target of becoming a billion dollar company by 2010 with exports comprising
Exports to sales % 14.6 13.4 12.3 at least 60% of its consolidated turnover and return on capital employed not falling
Imports to sales % 20.8 22.0 21.7 below the 40% mark.
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37
 Regd off: 9-11, Maruti Industrial Area, Gurgaon - 122 015, Haryana
MUNJAL SHOWA LIMITED E-Mail: pgupta@munjalshowa.net
Web site: www.munjalshowa.net
Telephone: (0124) 234 1001 Fax: (0124) 234 1346
AUTO ANCILLARIES,FORGINGS MUNJAL Tr agent: MCS, Sri Venkatesh Bhawan, W-40, Okhla Indl. Area, New Delhi - 20
Chairman: Brijmohan Lall Munjal SEC: Pankaj Gupta AUD: S. R. Batliboi & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1985 520043 MJS:IN 2 35.0 0.6 -25.5 7.3 4.0 5.7 1,400.0 19.9 INE577A01027
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 39.0% Exports (fob) Rs m 2 (Rs)
Foreign collaborators : 26.0% Imports (cif) Rs m 449
Indian inst/Mut Fund : 1.3% Fx inflow Rs m 2 100
FIIs/GDR : 0.0% Fx outflow Rs m 675
Free float : 33.7% Net fx Rs m -673 DAILY
Shareholders : 9,091
80 100 DMA
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
60
High Rs 472 96 67
Low Rs 184 50 33
Sales per share Rs 745.9 173.0 177.4
Earnings per share Rs 25.4 6.5 4.8 40
Cash flow per share Rs 38.5 9.8 8.7
Dividends per share Rs 10.00 2.00 2.00
Dividend yield (eoy) % 3.0 2.7 4.0
20
Book value per share Rs 159.3 36.0 38.5
Shares outstanding (eoy) m 8.00 40.00 40.00 Sep-05 Jun-06 Mar-07 Dec-07 Sep-08
Bonus/Rights/Conversions - FV2 -
Price / Sales ratio x 0.4 0.4 0.3 No. of months 12 12 12
Avg P/E ratio x 12.9 11.2 10.4 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 8.5 7.5 5.8
Price / Book Value ratio x 2.1 2.0 1.3 From Operations Rs m 395 340 372
Dividend payout % 39.4 30.8 41.5 From Investments Rs m -423 -449 -349
Avg Mkt Cap Rs m 2,624 2,920 2,000 From Financial Activity Rs m -36 107 -11
No. of employees `000 2 2 2 Net Cashflow Rs m -64 -2 12
Total wages/salary Rs m 185 237 298
Avg. sales/employee Rs Th 3,215.0 3,312.1 3,218.7 INTERIM RESULTS
Avg. wages/employee Rs Th 99.7 113.5 135.2 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 109.4 124.5 87.6 Net sales Rs m 1,728 1,711 1,923 1,948
Gross profit Rs m 103 116 71 113
INCOME DATA Gross profit margin % 6.0 6.8 3.7 5.8
Net Sales Rs m 5,967 6,919 7,094 Net profit Rs m 52 62 39 75
Other income Rs m 59 118 144 Net profit margin % 3.0 3.6 2.0 3.9
Total revenues Rs m 6,026 7,037 7,238
Gross profit Rs m 358 414 330 KEY DATA
Depreciation Rs m 105 131 154 Parameters Unit FY06 FY07 FY08
Interest Rs m 4 5 22 Capacity - Shock absorbers 000's 15,600 20,301 21,513
Profit before tax Rs m 308 396 298 Capacity utilisation % 89.9 77.8 75.2
Minority Interest Rs m 0 0 0 Capex/sales % 5.8 6.9 4.3
Prior Period Items Rs m 0 0 0
Extraordinary Inc (Exp) Rs m 0 0 0
Tax Rs m 105 136 105
NOTES
Profit after tax Rs m 203 260 193
Gross profit margin % 6.0 6.0 4.7 Munjal Showa Limited (MSL) in its joint venture with Showa Corporation of Japan,
Effective tax rate % 34.1 34.3 35.2 designs and manufactures shock absorbers for leading two-wheelers and four-
wheelers. The company is one of the largest suppliers of shock absorbers to auto
Net profit margin % 3.4 3.8 2.7
giants in India, Japan, Germany, the United States and the United Kingdom, amongst
BALANCE SHEET DATA other developed markets. It is a member of US$ 1.3 bn Hero Group and all the
products of the company come under a single primary business segment i.e shock
Current assets Rs m 1,232 1,299 1,339 absorbers.
Current liabilities Rs m 1,113 1,105 1,119
Net working cap to sales % 2.0 2.8 3.1 Achieving record sales turnover, the company's topline grew by a muted 3% YoY
Current ratio x 1.1 1.2 1.2 during FY08. However, there was sizeable pressure on costs as operating margins
Inventory Turnover Days 20 15 13 contracted by 130 basis points, leading to a 20% YoY decline in operating profits. Net
Debtors Turnover Days 42 40 40 profit growth came in at a lower rate of 26% YoY as higher depreciation and interest
Net fixed assets Rs m 1,212 1,568 1,764 expenses exerted further pressure. Net profit margin contraction stood at 110 basis
Share capital Rs m 80 80 80 points. The company's major customer, Hero Honda had a poor FY08 in terms of
"Free" reserves Rs m 1,194 1,360 1,460 volumes and this in turn impacted MSL.
Net worth Rs m 1,274 1,440 1,540 MSL continues to be a leader in the shock absorber industry and its growth largely
Long term debt Rs m 0 37 274 depends upon the growth of two-wheelers industry. The outlook for FY09 is
Total assets Rs m 2,497 2,876 3,107 encouraging, as the company's key customers have lined up an impressive array of
Interest coverage x 78.0 80.2 14.5 new models, which will help boost volumes. This in turn should drive growth at Munjal
Debt to equity ratio x 0.0 0.0 0.2 Showa. Further, the company's efforts at diversifying its customer base are also long
Sales to assets ratio x 2.4 2.4 2.3 term positives. However, rising raw material prices pose a concern as they account
Return on assets % 16.2 17.9 11.9 for around 65% to 70% of total sales.
Return on equity % 15.9 18.1 12.5
Return on capital % 24.5 27.1 17.6
Exports to sales % 0.0 0.0 0.0
Imports to sales % 14.4 7.2 6.3
GET MORE INFO AT WWW.EQUITYMASTER.COM

38
 Regd off: 702/7, Avanashi Road, Coimbatore - 641 037
PRICOL LIMITED E-Mail: city@pricol.co.in
Web site: www.pricol.com
Telephone: (0422) 433 6000 Fax: (0422) 433 6299
AUTO ANCILLARIES,FORGINGS MISCELLANEOUS Tr agent: Integrated Enter., 2 Flr., Kences Tower, North Usman Rd., Chennai - 17
Chairman: Vijay Mohan SEC: T. G. Thamizhanban AUD: Suri & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1972 526109 PRIC:IN 1 16.4 -4.9 -46.3 8.0 2.8 3.7 1,471.5 7.2 INE605A01026
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 35.8% Exports (fob) Rs m 1,213 (Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 1,522
Indian inst/Mut Fund : 9.9% Fx inflow Rs m 1,275 60
FIIs/GDR : 0.3% Fx outflow Rs m 1,838
Free float : 54.0% Net fx Rs m -563
Shareholders : 29,619 DAILY
48
No. of months 12 12 12 100 DMA
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
36
High Rs 62 48 45
Low Rs 38 30 18
Sales per share Rs 56.3 68.2 71.7
Earnings per share Rs 4.0 4.0 2.0 24
Cash flow per share Rs 6.9 7.4 5.9
Dividends per share Rs 1.00 1.00 0.60
Dividend yield (eoy) % 2.0 2.6 1.9
12
Book value per share Rs 16.5 19.1 20.6
Shares outstanding (eoy) m 90.00 90.00 90.00 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 0.9 0.6 0.4 No. of months 12 12 12
Avg P/E ratio x 12.6 9.7 15.5 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 7.2 5.3 5.3
Price / Book Value ratio x 3.0 2.0 1.5 From Operations Rs m 149 306 334
Dividend payout % 25.3 24.9 29.5 From Investments Rs m -583 -741 -614
Avg Mkt Cap Rs m 4,500 3,510 2,835 From Financial Activity Rs m 600 528 38
No. of employees `000 5 6 5 Net Cashflow Rs m 166 93 -242
Total wages/salary Rs m 803 890 944
Avg. sales/employee Rs Th 1,102.4 1,023.2 1,402.8 INTERIM RESULTS
Avg. wages/employee Rs Th 174.6 148.3 205.2 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 77.4 60.2 39.8 Net sales Rs m 1,438 1,496 1,628 1,637
Gross profit Rs m 136 169 197 121
INCOME DATA Gross profit margin % 9.5 11.3 12.1 7.4
Net Sales Rs m 5,071 6,139 6,453 Net profit Rs m 7 36 52 -28
Other income Rs m 63 24 78 Net profit margin % 0.5 2.4 3.2 -1.7
Total revenues Rs m 5,134 6,163 6,531
Gross profit Rs m 782 977 777 KEY DATA
Depreciation Rs m 268 307 350 Parameters Unit FY06 FY07 FY08
Interest Rs m 125 186 300 Capacity- Dashboard instr. 000's 16,890 20,451 23,175
Profit before tax Rs m 452 508 205 Capacity utilisation % 69.8 66.1 56.0
Minority Interest Rs m 1 0 0 Capex/sales % 7.8 11.7 9.2
Prior Period Items Rs m 0 0 0
Extraordinary Inc (Exp) Rs m 29 0 0
Tax Rs m 126 147 22
NOTES
Profit after tax Rs m 356 361 183
Gross profit margin % 15.4 15.9 12.0 Pricol Limited was established in 1972 at Coimbatore, Tamil Nadu, and commenced
Effective tax rate % 27.9 28.9 10.7 manufacturing operations in 1975 in the precision engineering field of automotive
instruments. Pricol is the market leader enjoying more than 50% of the automotive
Net profit margin % 7.0 5.9 2.8
instruments market share. In 1997, Pricol joined hands with Denso Corporation,
BALANCE SHEET DATA Japan, a US$ 17.7 bn auto ancillary company to chalk out its growth and future.
Currently, Pricol is a leading exporter to various countries and boasts of 50 product
Current assets Rs m 3,047 3,546 4,258 offerings with 2,000 variants.
Current liabilities Rs m 1,375 1,245 1,794
Net working cap to sales % 33.0 37.5 38.2 In line with the general performance of the automobile industry where volumes
Current ratio x 2.2 2.8 2.4 growth slowed down, Pricol's topline grew by a muted 4% YoY during FY08. Further,
Inventory Turnover Days 57 56 101 with the operating margins shrinking by 380 basis points, operating profits fell 20%
Debtors Turnover Days 89 78 92 YoY. With no respite from interest costs and depreciation either, the company's
Net fixed assets Rs m 2,176 2,675 2,925 bottomline suffered a huge decline of 47% YoY. Exports were the only silver lining in
Share capital Rs m 90 90 90 the otherwise forgettable year as they managed to grow by a good 23% YoY. The
"Free" reserves Rs m 1,384 1,630 1,750 company's overall showing also suffered on account of a production shutdown for
most part of 1QFY08.
Net worth Rs m 1,482 1,720 1,857
Long term debt Rs m 1,468 1,278 2,415 Continued outsourcing of automobile components from vehicle manufacturers in the
Total assets Rs m 5,354 6,285 7,202 US and Europe to low cost manufacturing countries like India gives abundant
Interest coverage x 4.6 3.7 1.7 opportunities for cost competitive companies like Pricol. Further, with many global
Debt to equity ratio x 1.0 0.7 1.3 OEMs making India as their manufacturing base, the domestic market too presents
Sales to assets ratio x 0.9 1.0 0.9 good potential. However, there is likely to be a slowdown in the near term on account
Return on assets % 16.3 18.2 11.3 of tough economic environment. The fluctuations in exchange rates and the volatility
Return on equity % 24.0 21.0 9.9 in the prices of raw materials and other inputs though will have an adverse impact on
Return on capital % 20.6 23.1 11.8 the profitability of the company.
Exports to sales % 11.4 16.3 18.8
Imports to sales % 17.4 19.6 23.6
GET MORE INFO AT WWW.EQUITYMASTER.COM

39
 Regd off: Mahatma Gandhi Memorial Building, Netaji Subhash Road, Mumbai - 2
SKF INDIA LIMITED E-Mail: investors@skf.com
Web site: www.skfindia.com
Telephone: (022) 6633 7777 Fax: (022) 2204 2738
AUTO ANCILLARIES,FORGINGS MNC Tr agent: TSR, 6-10, Haji Moosa Patrawala Ind Est., Dr. E.Moses Rd., Mumbai-11
Chairman: Kamlesh C. Mehra SEC: Pradeep Bhandari AUD: BSR & Associates
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1961 500472 SKF:IN 10 228.7 6.3 -42.5 7.5 6.3 2.6 12,059.4 1.6 INE640A01023
SHAREHOLDING FX Transaction (CY07) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 1,495 (Rs)
Foreign collaborators : 53.6% Imports (cif) Rs m 794
Indian inst/Mut Fund : 18.2% Fx inflow Rs m 1,495 516
FIIs/GDR : 8.5% Fx outflow Rs m 5,304
Free float : 19.7% Net fx Rs m -3,809
Shareholders : 26,247
432
No. of months 12 12 12
Year ending 31/12/05 31/12/06 31/12/07
EQUITY SHARE DATA
348
High Rs 304 376 513
Low Rs 126 209 265
Sales per share Rs 148.2 254.6 297.4
Earnings per share Rs 12.1 19.3 30.5 264
Cash flow per share Rs 17.0 24.8 36.3 DAILY
Dividends per share Rs 3.50 4.50 6.00 100 DMA
Dividend yield (eoy) % 1.6 1.5 1.5
180
Book value per share Rs 65.9 80.1 103.4
Shares outstanding (eoy) m 52.73 52.73 52.73 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions WC - -
Price / Sales ratio x 1.5 1.1 1.3 No. of months 12 12 12
Avg P/E ratio x 17.7 15.1 12.8 Year ending 31/12/05 31/12/06 31/12/07
CASH FLOW
P/CF ratio (eoy) x 12.6 11.8 10.7
Price / Book Value ratio x 3.3 3.7 3.8 From Operations Rs m 838 1,264 1,337
Dividend payout % 28.8 23.3 19.7 From Investments Rs m -496 -421 -1,168
Avg Mkt Cap Rs m 11,337 15,424 20,512 From Financial Activity Rs m -217 -219 -271
No. of employees `000 2 2 2 Net Cashflow Rs m 125 623 -102
Total wages/salary Rs m 948 1,006 1,214
Avg. sales/employee Rs Th 3,980.6 6,632.9 7,580.0 INTERIM RESULTS
Avg. wages/employee Rs Th 482.9 497.0 586.8 3QCY07 4QCY07 1QCY08 2QCY08
Avg. net profit/employee Rs Th 326.0 504.0 776.7 Net sales Rs m 3,870 4,201 3,921 4,312
Gross profit Rs m 683 609 590 606
INCOME DATA Gross profit margin % 17.6 14.5 15.0 14.1
Net Sales Rs m 7,814 13,425 15,683 Net profit Rs m 431 402 377 366
Other income Rs m 399 141 240 Net profit margin % 11.1 9.6 9.6 8.5
Total revenues Rs m 8,213 13,566 15,923
Gross profit Rs m 937 1,660 2,546 KEY DATA
Depreciation Rs m 259 288 308 Parameters Unit CY05 CY06 CY07
Interest Rs m 6 8 4 Bearings capacity 000's 94,796 100,157 113,638
Profit before tax Rs m 1,071 1,505 2,474 Capacity utilisation % 83.3 94.3 91.0
Minority Interest Rs m 0 0 0 Capex/sales % 4.8 4.2 1.5
Prior Period Items Rs m -41 27 0
Extraordinary Inc (Exp) Rs m 0 0 0
Tax Rs m 390 512 867
NOTES
Profit after tax Rs m 640 1,020 1,607
Gross profit margin % 12.0 12.4 16.2 SKF India, a part of the global AB SKF Group, is a leading technology & solutions
Effective tax rate % 36.4 34.0 35.0 provider of products, solutions and services in the area comprising rolling bearings,
seals, mechatronics, services and lubrications systems. From a humble beginning in
Net profit margin % 8.2 7.6 10.2
1965, the company has come a long way and has emerged as the largest bearing
BALANCE SHEET DATA company in India. The company had revenues of Rs 16.4 bn and had 2,300 people
on its rolls at the end of calendar year 2007. SKF India also has an associate
Current assets Rs m 3,993 5,328 6,705 company SKF Sealing Solutions Pvt ltd providing sealing solutions. The company has
Current liabilities Rs m 1,938 2,901 3,168 manufacturing plants in Bangalore and Pune.
Net working cap to sales % 26.3 18.1 22.6
Current ratio x 2.1 1.8 2.1 The company reported a strong performance during CY07. Riding on the back of
Inventory Turnover Days 65 41 38 robust industrial activity as well as exports growth, its topline grew by an impressive
Debtors Turnover Days 48 45 48 17% YoY. Growth at the operating level was even more impressive with operating
Net fixed assets Rs m 1,475 1,842 1,968 profits witnessing a strong 53% YoY growth, aided by margin expansion to the tune
Share capital Rs m 527 527 527 of 380 basis points. Benign growth in depreciation and higher other and interest
"Free" reserves Rs m 2,946 3,695 4,925 income further propelled the growth in operating profits and enabled the company to
end the year with a strong 58% growth in bottomline. Slackening industrial activity
Net worth Rs m 3,474 4,223 5,453
however, took its toll on the company's 1QCY07 performance as profits during the
Long term debt Rs m 1 0 0
quarter grew a mere 3% on the back of a 9% YoY growth in topline.
Total assets Rs m 5,468 7,169 8,673
Interest coverage x 179.5 189.1 619.5 To capitalise on the Indian growth story, the company is investing over Rs 1.5 bn
Debt to equity ratio x 0.0 0.0 0.0 towards the development of a new manufacturing site in Haridwar, Uttarakhand.
Sales to assets ratio x 1.4 1.9 1.8 Situated over an area of 40,000 sq meters, the new facility will increase its overall
Return on assets % 18.6 24.3 29.5 capacity by more than 33% and will employ over 300 people. In the initial years, the
Return on equity % 18.4 24.2 29.5 project will cater to the two-wheeler segment of the market. Although the company
Return on capital % 29.8 36.5 45.4 has sounded caution with respect to near term revenues, it remains optimistic on the
Exports to sales % 6.2 5.2 9.5 longer-term potential of the economy and SKF's chances of taking advantage of the
Imports to sales % 6.9 6.2 5.1 same.
GET MORE INFO AT WWW.EQUITYMASTER.COM

40
 AUTOMOBILES/VEHICLES
The Indian automobile segment can be divided into several
segments viz. two-wheelers (motorcycles, geared and
ungeared scooters and mopeds), three wheelers, commercial
vehicles (light, medium and heavy), passenger cars, utility
vehicles (UVs) and tractors.
Demand is linked to economic growth and rise in income levels.
Per capita penetration at seven cars per thousand people is
among the lowest in the world (including other developing
economies like Pakistan in segments like cars).
While the industry is highly capital intensive in nature in case
of four-wheelers, capital intensity is a lot less for two-
wheelers. Though three-wheelers and tractors have low
barriers to entry in terms of technology, four wheelers is
technology intensive. Costs involved in branding, distribution
network and spare parts availability increase entry barriers.
With the Indian market moving towards complying with global
standards, capital expenditure will rise to take into account
future safety regulations.
As compared to their global counterparts, both the two-wheeler
as well as four wheeler segments are relatively lesser
fragmented. However, things are changing, especially on the
passenger cars front as many foreign majors are eyeing the
Indian market. As a result, pricing power is likely to diminish
going forward.
Automobile majors increase profitability by selling more units.
As number of units sold increases, average cost of selling an
incremental unit comes down. This is because the industry
The government spending on infrastructure in roads and
has a high fixed cost component. This is the key reason why
operating efficiency through increased localization of
components and maximizing output per employee is of
significance.
FY08
A total of 7.2 m two-wheelers were sold in India in FY08, a
decline of 8% over the previous year. Motorcycles accounted
for 80% of the total two wheelers sold. Although economic
growth remained strong, lack of financing, especially in the
semi urban and rural areas impeded volume growth. For the
first time in many years, motorcycles segment logged in a
negative growth rate as domestic volumes came in lower by
12% YoY. The scooters (geared & ungeared) improved by
12% largely due to improved performance of the ungeared
scooter segment. Mopeds too registered an impressive 17%
increase in sales. Manufacturers continued to shift focus from
this segment, realising its limited growth potential. The 3-
wheeler segment performed poorly as volumes declined 10%
YoY, led by 20% fall in goods carriers. The passenger segment
on the other hand fell by 2%.
The medium and heavy commercial vehicles (M/HCVs) segment
saw its volumes drop by 2%. For the first time in seven years,
this segment witnessed a drop in volumes. The fall though
was not alarming. High cost of borrowings affected growth.
LCVs on the other hand, outperformed their HCV peers
handsomely as volumes grew 12%. The growth in the segment
was largely propelled by low tonnage vehicles of the likes of
'Ace', the sub one tonner from Tata Motors.
The tractor industry too came in the grip of a slowdown. After
positive growth for three straight years, industry finally
succumbed and witnessed a marginal dip in volumes of 2%
over FY07. The utility and multi-purpose vehicles registered a
14% growth combined. After growing at a double-digit rate in
FY07, sales of passenger vehicles did an encore in FY08.
Passenger car demand grew by a delectable 12%, once again
led by 14% growth in the B-segment. However, A-segment
sales (Maruti 800) continued to decline, falling 12%, due to
shift in preference towards the B-segment.
KEY POINTS
Supply : The Indian automobile market has some amount of
excess capacity.
Demand : Largely cyclical in nature and dependent upon
economic growth and per capita income. Seasonality is also
a vital factor.
B a r r i e r s t o e n t r y : H i g h c a p i ta l c o s ts , t e c h n o l o g y,
distribution network, and availability of auto components.
B a r g a i n i n g p o w e r o f s u p p l i e r s : L o w, d u e t o s t i f f
competition.
Bargaining power of customers : Very high, due to
availability of options.
Competition : High. Expected to increase even further.
CURRENT SCENARIO AND PROSPECTS
airports and higher GDP growth in the future will benefit the
auto sector in general. We expect a slew of launches in the
Segment 'B' and Segment 'C' of passenger cars. Utility vehicle
segment is expected to grow at around 8% to 9% in the long-
term.
In the 2-wheeler segment, motorcycles are expected to witness
a flurry of new model launches. Though the market size is
expected to grow by 10% to 12%, competitive pressure could
keep prices and margins under control. TVS, Honda and Hero
Honda are poised to benefit from higher demand for ungeared
scooters in the urban and rural markets. Bajaj has also re-
entered this segment with superior technology products, and
to that extent, competition is likely to increase.
Riding the wave of structural changes taking place in the
country, the tractor industry has registered growth for three
consecutive years until FY08. However, the fiscal FY08 saw
volumes drop marginally. While good monsoon is a positive for
the sector, given the fact that the country has had erratic
rainfall in the past, there is a risk of further fall in demand if
rain gods play spoilsport. But the longer-term picture is
impressive in light of poor mechanisation levels in the country's
farm sector and the thrust of the government on improving the
rural infrastructure.
With an estimated 40% of CVs plying on the roads 10 years
old, demand for HCVs is expected to grow by 7% to 8% over
the long term. While the industry is going through cyclical
hiccups currently, we expect this factor to weaken in the
future on account of strong structural tailwinds. The
privatisation of select state transport undertakings and hiking
of bus fares bodes well for the bus segment.
41
 AUTOMOBILES/VEHICLES
GLOBAL COMPARISON
CY07/FY08 Unit Maruti GM Toyota Volkswagen
Vehicles produced ('000) 757 9,350 9,498 6,346
Revenues US$ m 4,454 181,122 230,820 149,189
EBDITA margin % 12.1 2.8 14.3 14.0
Profit after tax US$ m 432 (38,732) 13,388 5,669
Net profit margins % 9.7 NA 5.8 3.8
Return on equity % 20.6 NA 14.5 14.0
Debt to equity x 0.1 NA 1.0 1.7
Price to earnings x 11.1 NA 9.8 17.4
Enterprise value US$ m 3,635 29,293 238,710 216,550
EV/EBDITA x 7.8 NA 7.5 10.4

GENERAL MOTORS (US)

General Motors Corporation (GM) was founded in 1908 and is headquartered in Detroit, Michigan. It is the largest
original equipment manufacturer (OEM) and engages in the design, manufacture, and marketing of cars and light
trucks worldwide. It operates through Automotive, and Financing and Insurance Operations (FIO) segments. The
Automotive segment designs, manufactures, and markets passenger cars, trucks, and locomotives as well as
related parts. The FIO segment provides a range of financial services, including consumer vehicle financing; full
service leasing, fleet leasing and asset-based lending. The company has partnerships with several leading players
like Daimler Chrysler AG of Germany, Fuji Heavy Industries, Isuzu Motors, and Suzuki Motor Corp. of Japan. GM
today employs around 284,000 people around the world and produced 9.4 m cars and trucks worldwide in 2007.

VOLKSWAGEN (GERMANY)

Manufacturer of the world famous 'Beetle', Volkswagen with revenue of US$ 149 bn in 2007, is Europe's largest
passenger carmaker. Including the Beetle, the company produces around 6 m cars, trucks and vans annually and
also owns luxury brands as AUDI, Lamborghini, Bentley and Bugatti. Other makes include SEAT (family cars,
headquartered in Spain) and SKODA (family cars, headquartered in Czech Republic). Volkswagen operates plant in
Africa, US, Asia-Pacific, and Europe. It also holds 34% of the voting rights in the Swedish truck maker Scania. The
company also offers consumer financing. The company has a presence in India through its group company, Skoda
Auto, and in a short span of time, it has managed to carve a niche for itself in the fast growing domestic market.

TOYOTA (JAPAN)

Established in 1937, Toyota Motor Corp is Japan's largest and world's second largest manufacturer of cars. Its gas-
powered cars, pickups, minivans, and SUVs include such models as Camry, Corolla, 4Runner, Land Cruiser,
Sienna, the luxury Lexus line, the new Scion brand, and a full-sized pickup truck, the V-8 Tundra. Toyota also makes
forklifts and manufactured housing, and offers consumer financial services. The company sells more than 9 m cars
worldwide and has already surpassed Ford in its bid to become the largest manufacturer of cars globally. It employs
more than 3 lakh people worldwide and had revenues of approximately US$ 230 bn in FY08. Of late, Toyota has
acquired a new ambition of producing greener cars, out of which has evolved a hybrid-powered sedan, the Prius,
that is doing well in European and the US markets.

Source: Yahoo Finance, Company reports TTM - Trailing twelve months

42
 Regd off: 19, Rajaji Salai, Chennai - 600 001
ASHOK LEYLAND LIMITED E-Mail: secretarial@ashokleyland.com
Web site: www.ashokleyland.com
Telephone: (044) 2433 1120 Fax: (044) 2433 5633
AUTOMOBILES/VEHICLES HINDUJA Tr agent: Integrated Enter., II Flr., Kences Tower, North Usman Rd., Chennai - 17
Chairman: R. J. Shahaney SEC: A. R. Chandrasekharan AUD: M. S. Krishnaswami & Rajan
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1948 500477 AL:IN 1 32.7 2.7 -15.5 9.3 6.7 4.6 43,502.1 744.3 INE208A01029
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 7,560 (Rs)
Foreign collaborators : 38.6% Imports (cif) Rs m 3,130
Indian inst/Mut Fund : 18.1% Fx inflow Rs m 8,128 60
FIIs/GDR : 25.3% Fx outflow Rs m 5,809
Free float : 18.0% Net fx Rs m 2,319
Shareholders : 295
50
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
40
High Rs 43 54 58
Low Rs 21 30 26
Sales per share Rs 43.0 54.1 58.1
Earnings per share Rs 2.7 3.3 3.5 30
Cash flow per share Rs 3.7 4.5 4.9 DAILY
Dividends per share Rs 1.20 1.50 1.50 100 DMA
Dividend yield (eoy) % 3.8 3.6 3.6
20
Book value per share Rs 11.5 14.1 16.0
Shares outstanding (eoy) m 1,221.59 1,323.87 1,330.34 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions BC BC BC
Price / Sales ratio x 0.7 0.8 0.7 No. of months 12 12 12
Avg P/E ratio x 11.9 12.6 11.9 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 8.6 9.4 8.6
Price / Book Value ratio x 2.8 3.0 2.6 From Operations Rs m 3,220 5,000 10,657
Dividend payout % 44.8 45.0 42.5 From Investments Rs m -1,336 -7,222 -8,097
Avg Mkt Cap Rs m 39,091 55,603 55,675 From Financial Activity Rs m -2,576 -2,908 3,645
No. of employees `000 12 12 NA Net Cashflow Rs m -692 -5,131 6,205
Total wages/salary Rs m 4,039 5,588 6,162
Avg. sales/employee Rs Th 4,430.2 5,911.9 NA INTERIM RESULTS
Avg. wages/employee Rs Th 341.0 460.9 NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 276.3 364.0 NA Net sales Rs m 17,459 18,001 25,620 18,839
Gross profit Rs m 1,685 1,654 2,957 1,171
INCOME DATA Gross profit margin % 9.7 9.2 11.5 6.2
Net Sales Rs m 52,476 71,682 77,291 Net profit Rs m 830 1,215 1,827 527
Other income Rs m 572 973 1,079 Net profit margin % 4.8 6.7 7.1 2.8
Total revenues Rs m 53,048 72,655 78,370
Gross profit Rs m 5,305 6,935 7,892 KEY DATA
Depreciation Rs m 1,260 1,506 1,774 Parameters Unit FY06 FY07 FY08
Interest Rs m 311 226 688 Capacity THNOS 77 84 84
Profit before tax Rs m 4,306 6,176 6,509 Units sold THNOS 62 83 83
Minority Interest Rs m 0 0 0 Capex/sales % 4.5 5.7 7.9
Prior Period Items Rs m 0 0 0 EBIT/Vehicle sold Rs 60,161 60,475 75,216
Extraordinary Inc (Exp) Rs m 217 -131 -127
Tax Rs m 1,250 1,632 1,688
NOTES
Profit after tax Rs m 3,273 4,413 4,694
Gross profit margin % 10.1 9.7 10.2 Ashok Leyland is the second largest manufacturer of medium and heavy commercial
Effective tax rate % 29.0 26.4 25.9 vehicles (M&HCV) in India. It had a 28% market share in the domestic M&HCV
segment in FY08 and a marginal presence in the LCV segment (light commercial
Net profit margin % 6.2 6.2 6.1
vehicles). The company is also a key player in the passenger bus segment with
BALANCE SHEET DATA almost 46% share in FY078. CVs contributed to 90% of revenues in FY08 while
engines and spare parts contributed to the balance. Land Rover Leyland Investment
Current assets Rs m 22,324 26,977 28,753 Holdings (LRLIH) owns 52% of Ashok Leyland. In FY08, it entered into an agreement
Current liabilities Rs m 14,085 17,559 22,719 with Nissan manufacturing company for the manufacture of LCVs, thus taking a big
Net working cap to sales % 15.7 13.1 7.8 step towards consolidating its presence in the segment.
Current ratio x 1.6 1.5 1.3
Inventory Turnover Days 63 54 58 Slowdown in the M&HCV segment especially in the goods space impacted Ashok
Debtors Turnover Days 30 27 18 Leyland's performance adversely during FY08. Thanks to a series of price hikes,
Net fixed assets Rs m 10,847 15,445 20,548 topline managed to grow by 8% YoY on the back of flat volumes. With expenses
Share capital Rs m 1,222 1,324 1,330 growing at a slightly lower rate, operating margins expanded by 60 basis points.
"Free" reserves Rs m 12,307 17,171 19,764 Growth in bottomline however came in at a lower rate of 6% YoY, led by more than
nine-fold jump in interest expenses and higher depreciation charges. On the volumes
Net worth Rs m 14,051 18,702 21,267
front, it was the domestic M&HCV passenger segment that helped save face, growing
Long term debt Rs m 2,310 2,983 6,897
by an impressive 51% YoY.
Total assets Rs m 36,853 44,633 55,400
Interest coverage x 14.8 28.3 10.5 To capitalise on the growing demand for CVs in the country, Ashok Leyland is setting
Debt to equity ratio x 0.2 0.2 0.3 up a new CV plant in the northern state of Uttaranchal. Besides, it also plans to foray
Sales to assets ratio x 1.4 1.6 1.4 into the LCV segment, an area where it has traditionally been weak. To this effect, it
Return on assets % 21.9 21.4 19.1 has tied up with Nissan to create three JV companies that will consume a total
Return on equity % 23.3 23.6 22.1 investment in the region of US$ 500 m.
Return on capital % 29.5 28.9 25.1
Exports to sales % 8.6 8.8 9.8
Imports to sales % 2.8 5.4 4.0
GET MORE INFO AT WWW.EQUITYMASTER.COM

43
 Regd off: Bajaj Auto Ltd. Complex, Mumbai-Pune Road, Akurdi, Pune - 411 035
BAJAJ AUTO LTD. E-Mail: investors@bajajauto.co.in
Web site: www.bajajauto.com
Telephone: (020) 2747 2851 Fax: (020) 2740 7380
AUTOMOBILES/VEHICLES BAJAJ Tr agent: In-house
Chairman: Rahul Bajaj SEC: J. Sridhar AUD: Dalal & Shah
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1945 532977 BJAUT:IN 10 606.6 14.7 NA 11.7 9.5 3.3 87,755.7 54.3 INE917I01010
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 61.7% Exports (fob) Rs m 20,744 (Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 3,234
Indian inst/Mut Fund : 7.0% Fx inflow Rs m 20,778 660
FIIs/GDR : 15.3% Fx outflow Rs m 3,534
Free float : 16.1% Net fx Rs m 17,244
Shareholders : 75,604
590
No. of months 12
Year ending 31/03/08
EQUITY SHARE DATA
520
High Rs NM
Low Rs NM
Sales per share Rs 599.0
Earnings per share Rs 51.8 450
DAILY
Cash flow per share Rs 63.9
Dividends per share Rs 20.00
Dividend yield (eoy) % NM 380
Book value per share Rs 112.2 May-08 Jun-08 Jul-08 Aug-08 Sep-08
Shares outstanding (eoy) m 144.68
Bonus/Rights/Conversions -
Price / Sales ratio x NM No. of months 12
Avg P/E ratio x NM Year ending 31/03/08
CASH FLOW
P/CF ratio (eoy) x NM
Price / Book Value ratio x NM From Operations Rs m NA
Dividend payout % 38.6 From Investments Rs m NA
Avg Mkt Cap Rs m NM From Financial Activity Rs m NA
No. of employees `000 NA Net Cashflow Rs m NA
Total wages/salary Rs m 3,485
Avg. sales/employee Rs Th NA INTERIM RESULTS
Avg. wages/employee Rs Th NA 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA Net sales Rs m 20,744 23,108
Gross profit Rs m 2,103 2,667
INCOME DATA Gross profit margin % 10.1 11.5
Net Sales Rs m 86,659 Net profit Rs m 1,207 1,751
Other income Rs m 4,981 Net profit margin % 5.8 7.6
Total revenues Rs m 91,640
Gross profit Rs m 9,016 KEY DATA
Depreciation Rs m 1,746 Parameters Unit FY08
Interest Rs m 52 Capacity THNOS 3,960
Profit before tax Rs m 12,199 Units sold THNOS 2,451
Minority Interest Rs m 7 Capex/sales % NA
Prior Period Items Rs m -2 EBIT/Vehicle sold Rs 3,006
Extraordinary Inc (Exp) Rs m -1,024
Tax Rs m 3,684
NOTES
Profit after tax Rs m 7,496
Gross profit margin % 10.4 Bajaj Auto Limited, with a market share of 27% in FY08, is the second largest player
Effective tax rate % 30.2 in the two-wheeler industry in India. In FY08, the sales mix (in volume terms)
consisted of 87% motorcycles, 12% three-wheelers and the rest accounted by
Net profit margin % 8.6
scooters. Though Bajaj Auto has traditionally been a key player in the geared scooter
BALANCE SHEET DATA segment, a renewed focus on motorcycles has seen the company take some rapid
strides in the segment in recent times. Just a perspective, its market share in
Current assets Rs m 16,681 motorcycles has increased from 23% in FY03 to 33% in FY08. To enable it to run its
Current liabilities Rs m 18,838 operations more smoothly, the company split its business in FY08 into three distinct
Net working cap to sales % -2.5 entities viz. Bajaj Auto, Bajaj Finserve and Bajaj Holdings.
Current ratio x 0.9
Inventory Turnover Days 15 In FY08, the company's overall sales volumes were down nearly 10% as compared
Debtors Turnover Days 11 to FY07. Had it not been for the robust 41% YoY growth in exports, the decline in
Net fixed assets Rs m 12,975 volumes would have been even worse. Domestic sales, which accounted for nearly
Share capital Rs m 1,447 3 out of 4 vehicle sold by the company, were down by 20% YoY and this resulted in
"Free" reserves Rs m 14,304 a drop in overall volumes. Although the company's standalone topline and bottomline
declined by 5% and 39% respectively on a YoY basis, the financials are not strictly
Net worth Rs m 16,236
comparable as they relate to companies before and after the demerger. On operating
Long term debt Rs m 13,343
margins, the company has done well to restrict the fall to a modest 60 basis points.
Total assets Rs m 48,511
Interest coverage x 235.6 The demerger, we believe, is a long-term positive and will help the company in
Debt to equity ratio x 0.8 pursuing its auto dreams more aggressively. However, we have concerns over the
Sales to assets ratio x 1.8 company's new ventures like the proposed entry into the four-wheeler segment. This
Return on assets % 25.5 is because not only is this field competitive but also the capital requirements are high.
Return on equity % 46.2 Hence, investors need to exercise caution on this front.
Return on capital % 38.0
Exports to sales % 23.9 * The company is a newly demerged entity, hence previous years information is not
comparable.
Imports to sales % 3.7
GET MORE INFO AT WWW.EQUITYMASTER.COM

44
 Regd off: Eicher House, 12, Commercial Complex, Greater Kailash, New Delhi - 48
EICHER MOTORS LIMITED E-Mail: rarora@eicher.in
Web site: www.eicherworld.com
Telephone: Telephone: (011) 4143 7600 Fax: (011) 4143 7700
AUTOMOBILES/VEHICLES MISCELLANEOUS Tr agent: MCS, Sri Venkatesh Bhawan, W-40, Okhla Indl. Area, New Delhi - 20
Chairman: S. Sandilya SEC: Rajesh Arora AUD: A. F. Ferguson Associates
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1982 505200 EIM:IN 10 280.0 5.4 -22.0 14.4 7.5 1.8 7,865.2 3.8 INE066A01013
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 58.2% Exports (fob) Rs m 1,643 (Rs)
Foreign collaborators : 3.6% Imports (cif) Rs m 354
Indian inst/Mut Fund : 9.1% Fx inflow Rs m 1,702 570
FIIs/GDR : 10.9% Fx outflow Rs m 463
Free float : 18.3% Net fx Rs m 1,239
Shareholders : 31,011
465
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
360
High Rs 396 416 599
Low Rs 205 203 222
Sales per share Rs 593.5 705.6 805.5
Earnings per share Rs 75.4 18.8 19.5 255
Cash flow per share Rs 93.3 34.8 37.5 DAILY
Dividends per share Rs 4.00 29.00 5.00 100 DMA
Dividend yield (eoy) % 1.3 9.4 1.2
150
Book value per share Rs 156.0 142.3 155.1
Shares outstanding (eoy) m 28.09 28.09 28.09 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 0.5 0.4 0.5 No. of months 12 12 12
Avg P/E ratio x 4.0 16.5 21.1 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 3.2 8.9 10.9
Price / Book Value ratio x 1.9 2.2 2.6 From Operations Rs m -60 1,337 848
Dividend payout % 5.3 154.6 25.7 From Investments Rs m -131 -233 -670
Avg Mkt Cap Rs m 8,441 8,694 11,531 From Financial Activity Rs m 156 -898 -165
No. of employees `000 2 3 3 Net Cashflow Rs m -35 205 13
Total wages/salary Rs m 1,156 1,346 1,835
Avg. sales/employee Rs Th 7,133.9 7,564.9 8,159.4 INTERIM RESULTS
Avg. wages/employee Rs Th 494.7 513.7 661.7 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 906.7 201.1 197.3 Net sales Rs m 5,369 5,478 6,534 5,380
Gross profit Rs m 306 302 300 184
INCOME DATA Gross profit margin % 5.7 5.5 4.6 3.4
Net Sales Rs m 16,672 19,820 22,626 Net profit Rs m 167 158 194 89
Other income Rs m 274 266 303 Net profit margin % 3.1 2.9 3.0 1.7
Total revenues Rs m 16,946 20,086 22,929
Gross profit Rs m 629 1,102 1,152 KEY DATA
Depreciation Rs m 502 451 507 Parameters Unit FY06 FY07 FY08
Interest Rs m 169 148 190 Capacity THNOS 77 77 90
Profit before tax Rs m 232 769 758 Units sold THNOS 54 61 69
Minority Interest Rs m 0 0 0 Capex/sales % -8.0 1.7 2.8
Prior Period Items Rs m 0 0 0 EBIT/Vehicle sold Rs 3,376 12,374 10,714
Extraordinary Inc (Exp) Rs m 1,704 0 0
Tax Rs m -183 242 211
NOTES
Profit after tax Rs m 2,119 527 547
Gross profit margin % 3.8 5.6 5.1 Founded in 1982, Eicher Motors is one of the leading manufacturers of commercial
Effective tax rate % -78.9 31.5 27.8 vehicles in India with a market leading position in the 7 to 11 tonnes segments. The
technical assistance agreement with Mitsubishi, which was started in 1986 ended in
Net profit margin % 12.7 2.7 2.4
March 1994 after successful transfer of technology and on achieving total
BALANCE SHEET DATA indigenisation with only a few parts sourced globally. Through its other two-business
units, the company manufactures niche high-end motorcycles and auto components,
Current assets Rs m 4,892 6,193 6,397 especially gears for the CV industry.
Current liabilities Rs m 3,928 5,368 5,444
Net working cap to sales % 5.8 4.2 4.2 In line with the industry, FY08 turned out to be a challenging year for Eicher. Riding
Current ratio x 1.2 1.2 1.2 on the back of a 13% YoY growth in topline, the operating profits of the company grew
Inventory Turnover Days 35 31 34 by mere 1% YoY as operating margins shrunk 60 basis points. Had it not been for the
Debtors Turnover Days 27 36 24 15% reduction in tax outgo, a modest 3% increase in bottomline would have looked
Net fixed assets Rs m 3,136 3,102 3,342 even worse. On the revenues front though, only the components business
Share capital Rs m 281 281 281 disappointed, logging in a decline of 12% YoY. While the company sold 6% more CVs
"Free" reserves Rs m 4,117 3,716 4,082 as compared to FY08, its two-wheeler sales grew by 21% during the same period.
Net worth Rs m 4,382 3,997 4,358 The CV industry is poised for good growth in the future. With new products planned
Long term debt Rs m 549 779 959 across categories, the company expects to make further gains and continue
Total assets Rs m 10,608 11,907 12,351 improving the market share. What will also help the company in its endeavor is its
Interest coverage x 2.4 6.2 5.0 agreement with Volvo, world's second largest truck maker. Subject to approvals, the
Debt to equity ratio x 0.1 0.2 0.2 latter is likely to pick up a 46% stake in a joint venture company, which will consist of
Sales to assets ratio x 1.6 1.7 1.8 Eicher's entire CV business and Volvo's Indian truck and sales and service network.
Return on assets % 46.4 14.1 13.9 Volvo will also contribute US$ 275 m by way of cash to the JV. The agreement will
Return on equity % 48.4 13.2 12.6 help Eicher to improve an already strong position in the medium-heavy segment and
Return on capital % 42.7 19.2 17.8 at the same time to become a leading player in the growing heavy segment in the
Exports to sales % 7.3 7.7 7.3 market.
Imports to sales % 1.8 1.3 1.6
GET MORE INFO AT WWW.EQUITYMASTER.COM

45
 Regd off: Gateway Building, Apollo Bunder, Mumbai - 400 001
MAHINDRA & MAHINDRA LIMITED + $ E-Mail: investors@mahindra.com
Web site: www.mahindra.com
Telephone: (022) 2490 5624 Fax: (022) 2490 0833
AUTOMOBILES/VEHICLES MAHINDRA Tr agent: Sharepro Services, Satam Est., 3rd Flr., C. G. Rd., Chakala, Mumbai - 99
Chairman: Keshub Mahindra SEC: Narayan Shankar AUD: Deloitte Haskins & Sells
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1945 500520 MM:IN 10 582.0 6.2 -18.0 9.1 6.6 2.0 143,008.4 12.8 INE101A01018
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 17.6% Exports (fob) Rs m 7,954 (Rs)
Foreign collaborators : 5.1% Imports (cif) Rs m 2,790
Indian inst/Mut Fund : 28.1% Fx inflow Rs m 8,836 1020
FIIs/GDR : 32.1% Fx outflow Rs m 4,324
Free float : 17.2% Net fx Rs m 4,512
Shareholders : 141,057
840
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
660
High Rs 651 1,002 872
Low Rs 210 488 543
Sales per share Rs 485.7 681.2 917.1
Earnings per share Rs 52.7 61.2 63.9 480
Cash flow per share Rs 64.5 76.7 87.6 DAILY
Dividends per share Rs 10.00 11.50 11.50 100 DMA
Dividend yield (eoy) % 2.3 1.5 1.6
300
Book value per share Rs 153.5 197.1 250.3
Shares outstanding (eoy) m 240.90 245.37 245.74 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions B1:1 ESOP -
Price / Sales ratio x 0.9 1.1 0.8 No. of months 12 12 12
Avg P/E ratio x 8.2 12.2 11.1 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 6.7 9.7 8.1
Price / Book Value ratio x 2.8 3.8 2.8 From Operations Rs m -4,589 -1,624 6,989
Dividend payout % 19.0 18.8 18.0 From Investments Rs m -8,818 -11,215 -27,696
Avg Mkt Cap Rs m 103,707 182,801 173,861 From Financial Activity Rs m 14,682 21,199 16,902
No. of employees `000 12 13 14 Net Cashflow Rs m 1,275 8,360 -3,806
Total wages/salary Rs m 13,994 23,885 36,138
Avg. sales/employee Rs Th 9,678.8 12,769.5 16,144.4 INTERIM RESULTS
Avg. wages/employee Rs Th 1,157.6 1,824.8 2,588.7 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 1,050.4 1,147.1 1,125.5 Net sales Rs m 28,024 29,402 31,482 32,934
Gross profit Rs m 3,815 3,314 3,424 2,468
INCOME DATA Gross profit margin % 13.6 11.3 10.9 7.5
Net Sales Rs m 117,007 167,140 225,376 Net profit Rs m 2,840 2,503 2,072 1,593
Other income Rs m 9,101 12,872 20,337 Net profit margin % 10.1 8.5 6.6 4.8
Total revenues Rs m 126,108 180,012 245,713
Gross profit Rs m 10,912 18,290 14,948 KEY DATA
Depreciation Rs m 2,833 3,799 5,822 Parameters Unit FY06 FY07 FY08
Interest Rs m 2,768 4,009 6,967 Capacity THNOS 328 404 456
Profit before tax Rs m 14,412 23,354 22,496 Units sold THNOS 232 272 290
Minority Interest Rs m -1,343 -1,411 2,835 Capex/sales % 2.8 4.1 6.4
Prior Period Items Rs m -2 152 -22 EBIT/Vehicle sold Rs 29,534 33,704 37,848
Extraordinary Inc (Exp) Rs m 3,660 -1,123 -3,025
Tax Rs m 4,029 5,957 6,572
NOTES
Profit after tax Rs m 12,698 15,015 15,712
Gross profit margin % 9.3 10.9 6.6 Mahindra & Mahindra (M&M) is engaged in the manufacture of utility vehicles (UVs),
Effective tax rate % 28.0 25.5 29.2 tractors, light commercial vehicles (LCVs) and three-wheelers. While automotive
division comprising UVs, LCVs and three-wheelers contributed to 67% of FY08
Net profit margin % 10.9 9.0 7.0
revenues, farm equipment division accounted for 24% of revenues. Through
BALANCE SHEET DATA investment in its subsidiaries, M&M has interests in sectors like software, hotels, real
estate and financial services as well. While M&M had a 43% market share in the UV
Current assets Rs m 97,253 140,397 169,285 segment in FY08, it had a 29% share in the tractor sector.
Current liabilities Rs m 33,524 52,007 66,823
Net working cap to sales % 54.5 52.9 45.5 After a buoyant FY07, fiscal FY08 turned out to be a challenging year for India's
Current ratio x 2.9 2.7 2.5 largest tractor and UV manufacturer. On a standalone basis, driven by 8% YoY
Inventory Turnover Days 52 53 53 growth in overall volumes, topline was up 15% YoY. However, inflationary pressures
Debtors Turnover Days 58 59 61 played spoilsport and resulted in a mere 6% YoY growth in operating profits. Higher
Net fixed assets Rs m 26,055 47,867 76,255 interest and depreciation charges increased the agony and in the end, it could only
Share capital Rs m 2,334 2,380 2,391 manage a 3% YoY growth in bottomline. As far as the consolidated performance is
"Free" reserves Rs m 32,324 42,778 54,611 concerned, owing to improved performance by its group companies like Tech
Mahindra, Mahindra Finance and Mahindra Holidays, the topline growth came in at
Net worth Rs m 36,972 48,357 61,506
an impressive 37% YoY. Its consolidated bottomline however, could manage a growth
Long term debt Rs m 45,516 67,116 84,656
of only 5% YoY as one time exceptional expenses took their toll.
Total assets Rs m 135,112 198,297 259,088
Interest coverage x 6.2 6.8 4.2 With UV segment expected to grow at a fair clip and a continuous thrust of the
Debt to equity ratio x 1.2 1.4 1.4 government on the rural economy, M&M is best placed to exploit the potential
Sales to assets ratio x 0.9 0.8 0.9 demand, given its strong rural network and leadership position. Apart from this, the
Return on assets % 18.7 16.5 15.5 acquisition of Punjab Tractors will further consolidate its market share in the tractor
Return on equity % 34.3 31.1 25.5 segment. With its recent foray into passenger cars and M&HCVs, whereby it has
Return on capital % 23.6 21.6 20.0 entered into JVs with world-class players, the company's dependence on monsoon
Exports to sales % 4.0 3.7 3.5 further stands reduced. Similarly, as other subsidiaries grow in scale, the possibility
Imports to sales % 1.5 1.3 1.2 of value unlocking cannot be ruled out.
GET MORE INFO AT WWW.EQUITYMASTER.COM

46
 Regd off: 11th Flr., Jeevan Prakash Bldg, 25, Kasturba Gandhi Marg, New Delhi - 1
MARUTI SUZUKI LIMITED + $ E-Mail: anil.rustgi@maruti.co.in
Web site: www.marutisuzuki.com
Telephone: (011) 2331 6831 Fax: (011) 2331 8754
AUTOMOBILES/VEHICLES MISCELLANEOUS Tr agent: Karvy Computershare, Plot 17-24, Vithalrao Nagar, Madhapur, Hyd. - 81
Chairman: R. C. Bhargava SEC: Anil Rustgi (CLO) AUD: Price Waterhouse
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1980 532500 MSIL:IN 5 679.8 10.6 -22.1 11.0 8.3 0.7 196,386.6 195.6 INE585B01010
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 7,413 (Rs)
Foreign collaborators : 54.2% Imports (cif) Rs m 22,611
Indian inst/Mut Fund : 24.0% Fx inflow Rs m 7,413 1250
FIIs/GDR : 14.8% Fx outflow Rs m 28,221
Free float : 6.9% Net fx Rs m -20,808
Shareholders : 118,427
1050
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
850
High Rs 944 991 1,252
Low Rs 393 670 713
Sales per share Rs 420.3 511.9 626.6
Earnings per share Rs 42.2 54.9 62.0 650
Cash flow per share Rs 52.2 64.4 81.8 DAILY
Dividends per share Rs 3.50 4.50 5.00 100 DMA
Dividend yield (eoy) % 0.5 0.5 0.5
450
Book value per share Rs 192.9 242.5 298.6
Shares outstanding (eoy) m 288.91 288.91 288.91 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 1.6 1.6 1.6 No. of months 12 12 12
Avg P/E ratio x 15.8 15.1 15.9 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 12.8 12.9 12.0
Price / Book Value ratio x 3.5 3.4 3.3 From Operations Rs m 14,416 18,704 18,993
Dividend payout % 8.3 8.2 8.1 From Investments Rs m -7,569 -22,837 -30,823
Avg Mkt Cap Rs m 193,136 239,998 283,854 From Financial Activity Rs m 2,674 -1,367 1,292
No. of employees `000 3 3 7 Net Cashflow Rs m 9,521 -5,500 -10,538
Total wages/salary Rs m 2,377 2,965 3,644
Avg. sales/employee Rs Th 36,422.3 42,827.7 25,534.7 INTERIM RESULTS
Avg. wages/employee Rs Th 713.0 858.7 514.0 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 3,656.6 4,591.4 2,524.5 Net sales Rs m 45,474 46,741 47,629 47,536
Gross profit Rs m 5,977 6,132 4,556 4,636
INCOME DATA Gross profit margin % 13.1 13.1 9.6 9.8
Net Sales Rs m 121,432 147,884 181,041 Net profit Rs m 4,665 4,670 2,977 4,658
Other income Rs m 5,267 6,673 9,324 Net profit margin % 10.3 10.0 6.3 9.8
Total revenues Rs m 126,699 154,557 190,365
Gross profit Rs m 15,685 19,312 21,956 KEY DATA
Depreciation Rs m 2,891 2,755 5,727 Parameters Unit FY06 FY07 FY08
Interest Rs m 223 404 625 Capacity THNOS 350 450 520
Profit before tax Rs m 17,838 22,826 24,928 Units sold THNOS 562 675 765
Minority Interest Rs m 25 0 0 Capex/sales % -0.4 9.2 9.1
Prior Period Items Rs m 0 0 0 EBIT/Vehicle sold Rs 23,003 24,555 27,553
Extraordinary Inc (Exp) Rs m 68 308 849
Tax Rs m 5,740 7,280 7,878
NOTES
Profit after tax Rs m 12,191 15,854 17,899
Gross profit margin % 12.9 13.1 12.1 Maruti Suzuki, incorporated in 1981, is the country's largest passenger car
Effective tax rate % 32.2 31.9 31.6 manufacturer with a domestic market share of 51% in FY08. While Suzuki Japan
holds a 54% equity stake in the company, the government of India has completely
Net profit margin % 10.0 10.7 9.9
exited the company through a three-stage divestment process. After remaining a near
BALANCE SHEET DATA monopoly till 1992, the entry of other multinationals and the emergence of domestic
competition have resulted in the company losing market share. However, it has been
Current assets Rs m 42,481 38,938 32,021 able to steady its share in the Indian passenger car segment through aggressive
Current liabilities Rs m 20,788 25,132 28,399 capacity expansion and new product introductions.
Net working cap to sales % 17.9 9.3 2.0
Current ratio x 2.0 1.5 1.1 FY08 was the year when India's largest passenger carmaker announced to its rivals
Inventory Turnover Days 27 18 21 that it is indeed game to intensifying competition. Taking into account its greater
Debtors Turnover Days 20 19 14 capital needs in the future, it changed its depreciation policy to accommodate a more
Net fixed assets Rs m 20,491 29,530 41,139 aggressive one and this affected its bottomline, which managed to grow by 11% YoY
Share capital Rs m 1,445 1,445 1,445 on the back of a 22% growth in topline. The company also bore the brunt of higher
"Free" reserves Rs m 54,096 68,489 84,795 raw material costs as operating margins tumbled 150 basis points. Volumes on the
other hand continued to grow impressively and stood at 13% YoY, aided by 66%
Net worth Rs m 55,730 70,065 86,271
growth in bigger cars like 'SX4' and 'Dzire'.
Long term debt Rs m 5,797 5,356 5,395
Total assets Rs m 84,119 103,614 125,809 The company has laid down a clear road map to achieve annual sales of one million
Interest coverage x 81.0 57.5 40.9 cars in the domestic market and 200,000 exports by FY11. Towards this, it will not
Debt to equity ratio x 0.1 0.1 0.1 only invest in manufacturing facilities but will also invest in marketing infrastructure
Sales to assets ratio x 1.4 1.4 1.4 and brand building. Although the company might not retain its dominant market
Return on assets % 20.2 21.6 20.2 position, we believe it will be one of the major beneficiaries of the Indian auto growth
Return on equity % 21.9 22.6 20.7 story, thanks mainly to its extensive distribution network and a strong focus on quality
Return on capital % 29.5 31.2 28.8 and customer satisfaction.
Exports to sales % 4.8 3.9 4.1
Imports to sales % 13.4 9.6 12.5
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47
 Regd off: Phase IV, Industrial Area, S.A.S Nagar, Mohali, Punjab - 160 055
PUNJAB TRACTORS LIMITED E-Mail: mnk@swarajenterprise.com
Web site: www.swarajenterprise.com
Telephone: (0172) 227 1620 - 27 Fax: (0172) 227 2731
AUTOMOBILES/VEHICLES MISCELLANEOUS Tr agent: MCS, Sri Venkatesh Bhawan, W-40, Okhla Indl. Area, New Delhi - 20
Chairman: Anjanikumar Choudhari SEC: Mahesh Kaushal (VP Finance) AUD: S. Tandon & Associates
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1970 500344 PJT:IN 10 182.6 5.1 -23.9 17.0 13.5 2.7 11,091.7 0.8 INE170A01013
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 64.6% Exports (fob) Rs m 290 (Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 40
Indian inst/Mut Fund : 24.8% Fx inflow Rs m 290 370
FIIs/GDR : 0.5% Fx outflow Rs m 45
Free float : 10.0% Net fx Rs m 245
Shareholders : 19,665
315
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
260
High Rs 265 359 383
Low Rs 160 191 183
Sales per share Rs 157.9 157.8 159.6
Earnings per share Rs 21.3 12.8 10.7 205
Cash flow per share Rs 23.8 15.4 13.5 DAILY
Dividends per share Rs 10.50 0.00 5.00 100 DMA
Dividend yield (eoy) % 4.9 0.0 1.8
150
Book value per share Rs 93.6 106.5 109.4
Shares outstanding (eoy) m 60.76 60.76 60.76 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 1.3 1.7 1.8 No. of months 12 12 12
Avg P/E ratio x 10.0 21.4 26.4 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 8.9 17.9 20.9
Price / Book Value ratio x 2.3 2.6 2.6 From Operations Rs m -461 1,490 2,933
Dividend payout % 49.3 0.0 46.6 From Investments Rs m 711 181 -1,451
Avg Mkt Cap Rs m 12,912 16,709 17,195 From Financial Activity Rs m -57 -1,338 -67
No. of employees `000 2 2 2 Net Cashflow Rs m 194 334 1,415
Total wages/salary Rs m 775 905 1,079
Avg. sales/employee Rs Th 4,356.9 4,218.2 4,320.4 INTERIM RESULTS
Avg. wages/employee Rs Th 352.0 398.2 480.8 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 587.2 343.2 290.6 Net sales Rs m 2,069 3,029 2,859 3,141
Gross profit Rs m 155 379 371 285
INCOME DATA Gross profit margin % 7.5 12.5 13.0 9.1
Net Sales Rs m 9,594 9,588 9,695 Net profit Rs m 98 254 267 224
Other income Rs m 114 106 184 Net profit margin % 4.7 8.4 9.3 7.1
Total revenues Rs m 9,708 9,694 9,879
Gross profit Rs m 1,193 1,052 965 KEY DATA
Depreciation Rs m 152 155 169 Parameters Unit FY06 FY07 FY08
Interest Rs m 64 18 9 Capacity THNOS 60 60 60
Profit before tax Rs m 1,091 985 971 Units sold THNOS 31 30 28
Minority Interest Rs m 0 0 0 Capex/sales % 0.2 0.7 1.1
Prior Period Items Rs m 0 0 0 EBIT/Vehicle sold Rs 35,323 31,653 28,597
Extraordinary Inc (Exp) Rs m 613 110 0
Tax Rs m 411 315 319
NOTES
Profit after tax Rs m 1,293 780 652
Gross profit margin % 12.4 11.0 10.0 Founded by the Government of Punjab in 1970, Punjab Tractors is one of India's
Effective tax rate % 37.7 32.0 32.9 leading manufacturers, having sold more than a six and half lakh tractors since its
inception. Commencing its journey from northern India, Punjab Tractors now has a
Net profit margin % 13.5 8.1 6.7
pan-India presence. It has an extensive dealership network with more than five
BALANCE SHEET DATA hundred and fifty dealers. It has also expanded its presence in the overseas markets
including select African and SAARC nations. In FY08, M&M picked up a majority
Current assets Rs m 7,558 7,246 6,232 stake in the company as a result of which, the combined market share of the two
Current liabilities Rs m 1,657 1,394 1,843 currently stands at an imposing 40%. Punjab Tractors also manufactures forklifts,
Net working cap to sales % 61.5 61.0 45.3 castings, agricultural implements and combine harvesters.
Current ratio x 4.6 5.2 3.4
Inventory Turnover Days 34 51 43 Although the company once again failed to grow its bottomline in FY08, it
Debtors Turnover Days 235 192 106 nonetheless managed to improve its performance over FY07 where net profits had
Net fixed assets Rs m 1,013 941 906 shrunk 40%. For FY08, the profit decline was restricted to 16% on the back of a 2%
Share capital Rs m 608 608 608 YoY growth in topline. Operating margins however continued to come under pressure
"Free" reserves Rs m 5,080 5,859 6,038 and fell by 160 basis points, thus changing the positive topline growth into a 12%
decline in operating profits. Higher tax outgo further played spoilsport, thus resulting
Net worth Rs m 5,690 6,470 6,648
into the 16% drop in bottomline. On the volumes front, company sold 7% lesser
Long term debt Rs m 107 40 40
tractors than the previous year.
Total assets Rs m 8,663 8,231 8,683
Interest coverage x 18.0 55.7 108.9 If the first quarter results for FY09 are any indication, the new management is indeed
Debt to equity ratio x 0.0 0.0 0.0 having the desired impact on the performance of the company. M&M is not only
Sales to assets ratio x 1.1 1.2 1.1 looking to utilize the spare capacity of Punjab Tractors but it also sees significant
Return on assets % 23.4 12.3 9.9 benefits arising out of raw material procurement and utilisation of its financing
Return on equity % 22.7 12.1 9.8 subsidiary to fund Punjab Tractor's customers. Furthermore, rationalisation of vendor
Return on capital % 30.5 17.1 14.7 base is also on the cards. The acquisition thus looks like a win-win proposition for the
Exports to sales % 5.2 2.7 3.0 shareholders of both the companies.
Imports to sales % 0.1 0.2 0.4
GET MORE INFO AT WWW.EQUITYMASTER.COM

48
 Regd off: Bombay House, 24, Homi Mody Street, Hutatma Chowk, Mumbai - 1
TATA MOTORS LIMITED + $ E-Mail: inv_rel@tatamotors.com
Web site: www.tatamotors.com
Telephone: (022) 6665 8282 Fax: (022) 6665 7260
AUTOMOBILES/VEHICLES TATA Tr agent: TSR Darashaw, Army & Navy Bldg., 148, M. G. Road, Mumbai - 1
Chairman: Ratan N. Tata SEC: H. K. Sethna AUD: Deloitte Haskin & Sells
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1945 500570 TTMT:IN 10 420.0 2.7 -39.9 7.5 5.5 3.6 161,941.1 371.5 INE155A01014
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 33.4% Exports (fob) Rs m 27,541 (Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 24,208
Indian inst/Mut Fund : 17.6% Fx inflow Rs m 28,441 1020
FIIs/GDR : 29.7% Fx outflow Rs m 32,444
Free float : 19.3% Net fx Rs m -4,003
Shareholders : 309,530
840
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
660
High Rs 939 985 830
Low Rs 406 658 606
Sales per share Rs 617.6 834.1 918.3
Earnings per share Rs 45.1 56.3 56.2 480
Cash flow per share Rs 61.4 74.2 76.5 DAILY
Dividends per share Rs 13.00 15.00 15.00 100 DMA
Dividend yield (eoy) % 1.9 1.8 2.1
300
Book value per share Rs 159.8 200.1 225.4
Shares outstanding (eoy) m 382.83 385.37 385.50 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions A BC BC
Price / Sales ratio x 1.1 1.0 0.8 No. of months 12 12 12
Avg P/E ratio x 14.9 14.6 12.8 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 10.9 11.1 9.4
Price / Book Value ratio x 4.2 4.1 3.2 From Operations Rs m 1,105 -8,755 55,956
Dividend payout % 28.8 26.6 26.7 From Investments Rs m -4,474 -24,065 -53,974
Avg Mkt Cap Rs m 257,453 316,581 276,789 From Financial Activity Rs m -6,237 30,536 24,869
No. of employees `000 30 33 33 Net Cashflow Rs m -9,606 -2,284 26,850
Total wages/salary Rs m 17,831 24,158 27,452
Avg. sales/employee Rs Th 7,985.5 9,857.1 10,662.0 INTERIM RESULTS
Avg. wages/employee Rs Th 602.3 740.8 826.8 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 583.7 665.4 652.9 Net sales Rs m 82,052 92,385 105,765 69,284
Gross profit Rs m 10,519 12,721 10,584 5,225
INCOME DATA Gross profit margin % 12.8 13.8 10.0 7.5
Net Sales Rs m 236,418 321,440 354,000 Net profit Rs m 5,708 6,547 5,812 5,260
Other income Rs m 1,524 1,941 3,193 Net profit margin % 7.0 7.1 5.5 7.6
Total revenues Rs m 237,942 323,381 357,193
Gross profit Rs m 28,478 38,360 42,752 KEY DATA
Depreciation Rs m 6,233 6,881 7,821 Parameters Unit FY06 FY07 FY08
Interest Rs m 1,477 3,004 7,633 Capacity THNOS 536 682 772
Profit before tax Rs m 22,292 30,416 30,491 Units sold THNOS 451 579 586
Minority Interest Rs m -223 -742 -1,323 Capex/sales % 8.6 8.6 16.0
Prior Period Items Rs m 0 0 0 EBIT/Vehicle sold Rs 38,347 39,669 40,540
Extraordinary Inc (Exp) Rs m 1,612 858 1,024
Tax Rs m 6,400 8,832 8,515
NOTES
Profit after tax Rs m 17,281 21,700 21,677
Gross profit margin % 12.0 11.9 12.1 Tata Motors is India's largest commercial vehicle (M&HCVs and LCVs) manufacturer,
Effective tax rate % 28.7 29.0 27.9 with a domestic market share of 62%. It is also the second largest producer of
passenger vehicles in the country. From a net loss of Rs 5 bn in FY01 to a profit of
Net profit margin % 7.3 6.8 6.1
Rs 15 bn in FY06, the company has come a long way. In 2008, it acquired Jaguar
BALANCE SHEET DATA and Land Rover, two iconic brands from Ford for a price of US$ 2.3 bn. It also has in
its pipeline, the 'Nano', touted to be the world's cheapest compact car.
Current assets Rs m 110,569 162,779 192,674
Current liabilities Rs m 78,191 93,308 136,446 Spiraling costs took their toll on the company's performance in FY08. Although the
Net working cap to sales % 13.7 21.6 15.9 standalone topline grew by a modest 5% on the back of 1% growth in volumes,
Current ratio x 1.4 1.7 1.4 operating profit shrunk 6% YoY as higher costs shaved off 130 basis points from the
Inventory Turnover Days 38 36 34 operating margins. However, lower interest expenses and significantly higher other
Debtors Turnover Days 21 19 21 income provided some respectability to the bottomline, enabling it to grow by 6% YoY.
Net fixed assets Rs m 54,359 75,142 128,634 Returning to volumes, the 0.6% YoY growth was led mainly by LCV segment, where
Share capital Rs m 3,829 3,854 3,855 domestic growth stood at 17% over FY07. Among passenger vehicles, while
"Free" reserves Rs m 48,642 63,475 73,905 domestic car sales fell 7% YoY, UV volumes came in marginally lower.
Net worth Rs m 61,176 77,097 86,906 Long term outlook in both the key segments where Tata Motors operates viz.
Long term debt Rs m 23,662 36,148 62,833 commercial and passenger vehicles is positive. We believe the company is taking all
Total assets Rs m 181,665 254,097 353,628 the right steps to protect its turf. In order to strengthen its competitive position further,
Interest coverage x 16.1 11.1 5.0 the company has embarked on a huge capex program to the tune of Rs 120 bn to be
Debt to equity ratio x 0.4 0.5 0.7 spent by FY11. This program will take care of its capacity expansion and new product
Sales to assets ratio x 1.3 1.3 1.0 development needs in the medium term. On the anvil is Nano, a new UV platform and
Return on assets % 22.1 21.8 19.6 products in the commercial vehicle space. Its tie-ups with renowned players like Fiat
Return on equity % 28.2 28.1 24.9 and the JLR acquisition are also a long term positive. In the medium term though,
Return on capital % 29.7 29.6 25.3 rising interest costs might dampen volumes.
Exports to sales % 9.3 8.4 7.8
Imports to sales % 4.8 4.5 6.8
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49
 Regd off: Jayalakshmi Estates, 29, Haddows Road, Chennai - 600 006
TVS MOTOR COMPANY LIMITED E-Mail: sclshares@gmail.com
Web site: www.tvsmotor.co.in
Telephone: (044) 2827 2233 Fax: (044) 2825 7121
AUTOMOBILES/VEHICLES TVS Tr agent: Sundaram-Clayton, Railway Colony, Mehta Nagar, Chennai - 29
Chairman: Venu Srinivasan SEC: T. S. Rajagopalan AUD: Sundaram & Srinivasan
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1982 532343 TVSL:IN 1 34.2 0.3 -47.0 NM 10.0 2.0 8,112.0 202.4 INE494B01023
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 56.8% Exports (fob) Rs m 3,081 (Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 1,590
Indian inst/Mut Fund : 12.8% Fx inflow Rs m 3,345 180
FIIs/GDR : 3.7% Fx outflow Rs m 1,920
Free float : 27.0% Net fx Rs m 1,425
Shareholders : 108,286
140
No. of months 12 12 12 DAILY
Year ending 31/03/06 31/03/07 31/03/08 100 DMA
EQUITY SHARE DATA
100
High Rs 145 187 79
Low Rs 66 53 31
Sales per share Rs 137.5 164.9 137.7
Earnings per share Rs 4.9 3.1 -1.2 60
Cash flow per share Rs 9.0 7.0 3.4
Dividends per share Rs 1.30 0.85 0.70
Dividend yield (eoy) % 1.2 0.7 1.3
20
Book value per share Rs 28.8 31.5 28.7
Shares outstanding (eoy) m 237.54 237.54 237.54 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 0.8 0.7 0.4 No. of months 12 12 12
Avg P/E ratio x 21.6 38.3 -46.7 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 11.7 17.1 16.1
Price / Book Value ratio x 3.7 3.8 1.9 From Operations Rs m 1,086 1,128 63
Dividend payout % 26.6 27.1 -59.4 From Investments Rs m -1,948 -2,288 -1,063
Avg Mkt Cap Rs m 25,060 28,505 13,065 From Financial Activity Rs m 1,481 1,783 -51
No. of employees `000 6 6 4 Net Cashflow Rs m 619 622 -1,051
Total wages/salary Rs m 1,727 1,873 2,022
Avg. sales/employee Rs Th 5,543.5 6,955.6 7,634.5 INTERIM RESULTS
Avg. wages/employee Rs Th 293.1 332.5 472.0 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 196.8 132.3 -65.4 Net sales Rs m 8,234 8,750 7,378 9,111
Gross profit Rs m 198 150 182 312
INCOME DATA Gross profit margin % 2.4 1.7 2.5 3.4
Net Sales Rs m 32,668 39,181 32,706 Net profit Rs m 17 58 -62 70
Other income Rs m 798 851 787 Net profit margin % 0.2 0.7 -0.8 0.8
Total revenues Rs m 33,466 40,032 33,493
Gross profit Rs m 2,031 1,380 -251 KEY DATA
Depreciation Rs m 984 918 1,089 Parameters Unit FY06 FY07 FY08
Interest Rs m 227 362 152 Units sold THNOS 1,342 1,526 1,277
Profit before tax Rs m 1,618 951 -705 Capex/sales % 3.4 7.4 4.0
Minority Interest Rs m 0 0 0 EBIT/Vehicle sold Rs 824 326 -175
Prior Period Items Rs m 55 0 2
Extraordinary Inc (Exp) Rs m 0 0 196
Tax Rs m 513 206 -227
NOTES
Profit after tax Rs m 1,160 745 -280
Gross profit margin % 6.2 3.5 -0.8 TVS is the third largest player in the two-wheeler industry in India. Started in
Effective tax rate % 31.7 21.7 32.2 collaboration with Suzuki Motors, Japan, the year 2002 saw Suzuki Motors exit from
the business, forcing the TVS management to commit itself to sizeable investment
Net profit margin % 3.6 1.9 -0.9
and develop its own R&D. Compared to its predominantly southern-market oriented
BALANCE SHEET DATA growth in the past, it has been expanding presence in other regions. In FY08, while
motorcycles constituted 48% of its total portfolio, scooters and mopeds contributed
Current assets Rs m 7,838 8,606 7,805 20% and 32% respectively.
Current liabilities Rs m 6,099 6,189 6,045
Net working cap to sales % 5.3 6.2 5.4 The company managed to sell 16% less vehicles than it did the year before. Naturally,
Current ratio x 1.3 1.4 1.3 this had an impact on the standalone topline, which came in lower by 17% YoY.
Inventory Turnover Days 41 38 49 Domestic motorcycles sales, which accounted for nearly 60% of all the vehicles sold
Debtors Turnover Days 8 8 9 by the company in FY08 was the key reason behind the dismal performance on the
Net fixed assets Rs m 8,759 11,461 13,014 volumes front. Although industry wide sales were down 12%, TVS saw its
Share capital Rs m 238 238 238 motorcycles sales in the domestic market fare even worse, falling by as much as 40%
"Free" reserves Rs m 7,196 7,699 7,223 YoY. High costs accompanied with high operating leverage compounded problems
further for the company as operating profits fell by 48% YoY and bottomline declined
Net worth Rs m 6,843 7,484 6,810
52% YoY
Long term debt Rs m 3,604 5,559 3,788
Total assets Rs m 18,939 21,835 22,149 The company's volatile history raises some doubt about its ability to perform on a
Interest coverage x 8.1 3.6 -3.6 consistent basis going forward. Having said that, the management's commitment in
Debt to equity ratio x 0.5 0.7 0.6 the form of increased R&D spending and capital expenditure in such difficult times
Sales to assets ratio x 1.7 1.8 1.5 tends to reflect the confidence level of the company. With a reasonable level of R&D
Return on assets % 13.3 8.5 -1.2 platform, increased thrust on exports (the company is setting up a plant in Indonesia
Return on equity % 17.0 10.0 -4.1 to enter the ASEAN region), and entry into the three-wheeler segment, we believe
Return on capital % 18.2 10.1 -3.3 that the company should be able to reduce the volatility in its performance.
Exports to sales % 5.4 6.4 9.4
Imports to sales % 2.6 6.3 4.9
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50
 BANKING
Influenced by the global financial turmoil and repercussion of
the subprime crisis, the global banking sector has been witness
to some of the largest and best known names succumb to
multi-billion dollar write-offs and face near bankruptcy.
However, the Indian banking sector has been well shielded by
the central bank and has managed to sail through most of the
crisis with relative ease. Further with the economic buoyancy
the world over showing signs of cooling off, the investment
cycle has also been wavering. Having said that, the latent
demand for credit (both from the food and non food segments)
and structural reforms have paved the way for a change in
the dynamics of the sector itself. Besides gearing up for the
compliance with Basel II accord, the sector is also looking
forward to consolidation and investments on the FDI front.
Public sector banks have been very proactive in their
restructuring initiatives be it in technology implementation or
pruning their loss assets. While the likes of SBI have made
already attempts towards consolidation, others are keen to
take off in that direction. Incremental provisioning made for
asset slippages have safeguarded the banks from witnessing
a sudden impact on their bottomlines.
Retail lending (especially mortgage financing) that formed a
significant portion of the portfolio for most banks in the last
two years lost some weightage on the banks' portfolios due
to their risk weightage. However, on the liabilities side, with A spurt in interest rates over the past year raised concerns
better penetration in the semi urban and rural areas the banks
garnered a higher proportion of low cost deposits thereby
economising on the cost of funds.
Apart from streamlining their processes through technology
initiatives such as ATMs, telephone banking, online banking
and web based products, banks also resorted to cross selling
of financial products such as credit cards, mutual funds and
insurance policies to augment their fee based income.
FY08
Put in a subtle way, FY08 was a watershed year for banks
that clearly brought out the ones that can resist adversities In FY08, as per the RBI mandate, all foreign banks operating in
and take on challenges. Despite the severe liquidity pressure
post the repo and CRR (cash reserve ratio) hikes, the money
supply remained buoyant during FY08, expanding by 20% YoY,
outpacing RBI's projections of 17% YoY growth. The growth
was mainly driven by a sharp expansion in term deposits and
surplus inflow of foreign exchange assets. Bank credit growth
that was 24% YoY in FY08, however, far outstripped the
incremental growth in money supply leading to inflationary With most private sector banks and the PSU ones that have
trends. Having said that, the RBI's reprimanding consistent
CRR hikes (from 6.5% to 9.0% until June 2008) and resistance
to offer interest on the same took its toll on the sector.
MONEY SUPPLY VS. CREDIT GROWTH
(% YoY)
Money supply Credit growth
27
24
21
18
15
Jun-07 Sep-07 Dec-07 Mar-08 Jun-08
Source: CMIE
Growth in mortgage loans (up 14% YoY) along with those to
real estate and agriculture sectors nearly halved in FY08. On
the other hand, despite the rise in lending rates, the demand
for loans from the Industrial sector remained firm. While banks
bore the brunt of higher CRR and repo rates on their cost of
fund, the NBFC sector enjoyed the absence of the same. What
was worrisome was the doubling of credit card loans, which
although nominal in size has potential of high delinquency.
The changing dynamics
(%) YoY change at the end of
May'07 May'08
Non food credit 26.4 24.1
Banks
Agriculture 32.2 19.3
Industry 26.4 26.9
Housing 21.6 13.8
Credit card 45.0 87.0
Real estate 69.7 31.9
NBFCs 38.7 62.0
Source: CMIE
over Indian banks' balance sheets in FY08. The PSU banks in
particular, took a substantial hit on their investment portfolios
on account of the marked-to-market (MTM) provisioning of
investments in the available-for-sale (AFS) category. Further
these banks had also to provide for the loss of interest on the
agri-loans waived by the government.
Short-term liquidity crunch led to banks scurrying for high cost
bulk and term deposits in FY08, even at the cost of narrow
margins (NIMs). Thus, while the savings bank interest remained
unchanged, the interest rate on deposits of up to one year
soared to as high as 9.0% and those for one to two years are
fetched upto 10.5% per annum.
India and Indian banks having operational presence outside
India migrated to the Basel II norms with effect from March 31,
2008. All other commercial banks have been encouraged to
migrate to these approaches not later than March 31, 2009.
CURRENT SCENARIO AND PROSPECTS
complied with Basel II having sufficient capital in their books;
it will be a challenge to deploy the same safely and profitably
in the event of economic slowdown. Banks are likely to
concentrate more on non funded income in this scenario.
Banks, especially the private sector ones, are likely to face
penetration concerns. The lack of credit penetration and the
geographic concentration of bank credit is evident from the
fact that 5 states having the highest proportion of per capita
credit enjoy 55% of the total credit disbursals in the country.
RBI's roadmap for the entry of foreign banks and the acquisition
of stake by the foreign entities in Indian private banks seems
to be a step towards facilitating entry of foreign banks into
India. However, the same is set to aggravate the tussle for
market share in the already fragmented sector.
Proposal for Cabinet's approval to allow PSU banks to reduce
the government's stake to below the stipulated 51%, which is
yet to be tabled, can help them raise substantial capital without
borrowing at high rates and give the entities opportunities to
enhance their capital adequacy ratios before the Basel II
compliances and compete with their private sector peers.
51
 BANKING
GLOBAL COMPARISON
FY08/CY07 Unit SBI ICICI Bank HSBC Holdings Citigroup ING Group NV
Assets US$ m 180,382 99,949 2,354,458 2,187,631 1,916,658
Total revenue US$ m 6,429 4,029 92,359 124,467 210,808
Net profit US$ m 1,682 1,039 19,133 3,617 13,495
Net profit margin % 13.7 13.5 20.7 2.9 6.4
Branches nos 10,186 1,013 11,000 8,620 11,400
CAR % 13.5 13.2 13.6 10.7 11.0
Cost to income % 49.0 50.6 49.4 57.3 67.1
ROE % 13.7 11.7 15.9 3.2 24.2
Net NPA to advances % 1.8 1.6 2.0 1.5 0.7
Price to book value x 2.0 2.0 2.5 0.9 1.4

HSBC (UK)

HSBC Holdings is the UK's largest banking company, also active throughout the rest of Europe, North and South
America, Hong Kong and the Pacific Rim, Australia, the Middle East and Africa. Headquartered in London, Hong
Kong and Shanghai Banking Corporation is one of the largest banking and financial services organisations in the
world. HSBC's international network comprises over 11,000 offices in 77 countries. The bank serves over 125 m
customers and had 330,000 employees at the end of CY07. The bank's US operations, which include HSBC US, got
a boost with the CY03 purchase of consumer lender Household International (now HSBC Finance). Europe (30%)
and North America (33%) are the biggest contributors to the bank's revenue in terms of geography. Personal
Financial Services (47%) and Investment Banking (25%) are the biggest contributors to the bank's revenue in terms
of business segment. In 2007, the bank suffered subprime mortgage related writedowns to the tune of US$ 1 bn
and another US$ 1.13 bn of losses on derivative exposures. Delinquency rates in credit cards and unsecured
personal loans were to the tune of 5.8% and 14% respectively. The bank derived 74% of its profits before tax from
Asia, Middle East and Latin America in 2007.

CITIGROUP (US)

Citigroup Inc. was incorporated in 1988 and is based in New York city. It lost the stature of being the world's largest
financial conglomerate (in terms of asset size) to HSBC in 2007. The bank had assets worth US$ 2.1 trillion in 2007
with about 200 m customer accounts in more than 100 countries. The bank had global employee strength of about
374,000. Citigroup is organised into three major business groups - consumer and corporate banking (Citibank),
investment banking and equity research and global wealth management. In 1998, Citicorp merged with Travelers
Group to form Citigroup Inc. Citibank is one of the world's largest players in credit cards, with a base of 20.9 m
accounts in 42 countries. It primarily operates in North America, Latin America, Europe, the Middle East and Africa,
Japan, and Asia. Citigroup was the worst affected amongst global banks by write-downs related to direct subprime
exposures. In 2007, while the bank's income from US business dropped by 51% YoY, the income from international
consumer business grew by 4% YoY particularly driven by the 77% YoY growth in international credit cards business.
Non-interest revenue decreased 31% YoY, primarily reflecting subprime write-downs. Citigroup's 2007 revenue and
profits were both down 83% YoY. The bank's gross NPAs increased by US$ 3.1 bn in 2007 and its CEO was ousted.

ING GROUP (NETHERLAND)

Headquartered in the Netherlands, ING Group is a global financial services company with 150 years of experience,
providing a wide array of banking, insurance and asset management services in over 60 countries. It had an
employee base of 124,000 employees at the end of CY07. Based on market capitalisation, ING is one of the 20
largest financial institutions worldwide and ranked in the top 10 in Europe. The company's principal activity is the
provision of a wide range of insurance and banking services. The banking activities are dealt with by ING Bank that
has over 15 m customers in 9 countries with assets under management of around Euro 500 bn. The group is
expanding its bancassurance footprint in Asia, with partnerships with more than 100 banks, to take advantage of
the fastest-growing distribution channel in the region. The bank exercised a US$ 6.8 bn share buyback programme
in 2007-08 for nearly 131 m shares. Its subprime related losses were to the tune of US$ 143 m in 2007.

Source: Yahoo Finance, Company reports TTM - Trailing twelve months

52
 Regd off: Dr. Pattabhi Bhavan, 5-9-11, Saifabad, Hyderabad - 500 004
ANDHRA BANK E-Mail: corp@andhrabank.co.in
Web site: www.andhrabank.in
Telephone: (040) 2323 0883 Fax: (040) 2323 0001
BANKING GOVERNMENT Tr agent: MCS, Kashiram Jamnadas Bldg, 21/22, P. D Mello Rd.,Mumbai - 9
Chairman: K. Ramakrishnan SEC: T. R. Ramabhadran AUD: S. C. Vasudeva & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1923 532418 ANDB:IN 10 59.5 -3.7 -31.7 3.1 4.8 6.7 28,833.3 84.9 INE434A01013
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 51.6% Exports (fob) Rs m 0 (Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 0
Indian inst/Mut Fund : 12.7% Fx inflow Rs m 0 140
FIIs/GDR : 19.3% Fx outflow Rs m 0
Free float : 16.4% Net fx Rs m 0
Shareholders : 208,350 115
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
90
High Rs 120 99 128
Low Rs 79 55 68
Income per share Rs 55.2 68.4 88.5
Earnings per share Rs 10.1 11.1 12.4
65
DAILY
Cash flow per share Rs 26.6 32.4 35.7
Dividends per share Rs 3.50 3.80 4.00
100 DMA
Avg Dividend yield % 3.5 4.9 4.1 40
Book value per share Rs 59.7 65.1 67.2 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Shares outstanding (eoy) m 485.00 485.00 485.00
Bonus/Rights/Conversions PI - -
Avg Price / Income ratio x 1.8 1.1 1.1 No. of months 12 12 12
Avg P/E ratio x 9.9 6.9 7.9 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
Avg P/CF ratio x 7.7 5.4 6.4
Avg Price/Bookvalue ratio x 1.7 1.2 1.5 From Operations Rs m 11,167 -5,729 13,801
Dividend payout % 34.7 34.1 32.3 From Investments Rs m -698 -550 -882
Avg Mkt Cap Rs m 48,258 37,345 47,518 From Financial Activity Rs m 5,693 -4,873 3,783
No. of employees `000 13 14 14 Net Cashflow Rs m 16,161 -541,152 16,702
Total wages & salary Rs m 4,929 5,489 5,094
Avg. income/employee Rs Th 1,907.0 2,397.0 2,994.3 INTERIM RESULTS
Avg. wages/employee Rs Th 351.4 396.9 355.6 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 348.2 390.2 419.3 Operating income Rs m 10,455 10,857 11,692 11,574
Gross Profit Rs m 3,447 3,701 3,429 3,463
INCOME DATA Gross profit margin % 33.0 34.1 29.3 29.9
Interest income Rs m 26,751 33,153 42,899 Net profit Rs m 1,512 1,590 1,243 776
Other income Rs m 3,926 4,468 5,855 Net profit margin % 14.5 14.6 10.6 6.7
Interest expense Rs m 15,060 18,976 28,694
Net interest income Rs m 11,691 14,177 14,205 KEY DATA
Operating expense Rs m 8,588 9,335 9,444 Parameters Unit FY06 FY07 FY08
Gross profit Rs m 3,103 4,842 4,761 Branches nos. 1,213 1,289 1,366
Gross profit margin % 11.6 14.6 11.1 Employees nos. 13,031 13,831 14,442
Provisions/contingencies Rs m 1,372 1,472 1,399 Business / branch Rs m 463 541 613
Profit before tax Rs m 5,685 7,857 9,248 Profit / employee Rs m 0.3 0.4 0.4
Extraordinary Inc (Exp) Rs m 0 0 0 NIM % 3.3 3.2 2.7
Minority Interest Rs m 0 0 0
NOTES
Prior Period Items Rs m 0 0 0
Tax Rs m 800 2,460 3,240 Established in 1923, Andhra Bank had 1.5% share of the total non-food credit and
Profit after tax Rs m 4,885 5,397 6,008 1.7% share of the total deposits in the banking sector in FY08. The bank has national
presence through 1,366 branches and 656 ATMs, with an employee base of
Net profit margin % 18.3 16.3 14.0
approximately 14,000. Nearly 55% of the bank's branches are located in the rural and
BALANCE SHEET DATA semi urban areas of the country. After being a laggard in terms of asset growth in the
initial years of the decade, Andhra Bank has caught up with its peers in the banking
Advances Rs m 221,004 278,861 342,384 space over the last two fiscals. About 94% of the bank's business was under core
Deposits Rs m 339,195 414,514 494,262 banking solution (CBS) by the end of FY08.
Credit/Deposit ratio x 65.2 67.3 69.3
Yield on advances % 8.0 8.3 9.3 SME (small and medium enterprises) assets, which grew by 28% YoY, helped Andhra
Cost of deposits % 4.1 4.4 6.4 Bank grow its advance portfolio by 23% YoY in FY08. Low cost deposits (CASA)
Net Interest Margin % 3.3 3.2 2.7 comprised 34% of the bank's total deposits during the fiscal. The bank extended
Net fixed assets Rs m 1,928 1,924 2,195 agricultural debt waiver to the tune of Rs 9.1 bn. The firm trend in interest rates,
Share capital Rs m 4,850 4,850 4,850 however, pressurised its net interest margins (NIMs) by 0.5% to 2.7% in this fiscal.
Free reserves Rs m 15,945 17,237 16,794 The bank's fee income, also, grew by 21% YoY in FY05 (7% YoY growth in FY07). It
comprised 8% of its total income in this fiscal. Andhra Bank had one of the best asset
Net worth Rs m 28,949 31,590 32,592
qualities amongst PSU banks with net NPA ratio of 0.1% (as in FY07) at the end of
Borrowings Rs m 7,585 7,335 5,905
FY08. Also the provision coverage ratio was 86% at the end of FY08. The bank has
Investments Rs m 114,650 143,233 149,230 been able to reduce its cost to income ratio from 50% in FY07 to 49% in FY08
Total assets Rs m 407,037 475,774 566,281 bringing it at par with that of its peers. With return on net worth of 17.9% and return
Debt/equity ratio x 12.0 13.4 15.3 on assets of 1.2%, the bank has one of the best return ratios in the sector.
Return on assets % 1.2 1.1 1.1
Return on equity % 16.9 17.1 18.4 Going forward, Andhra Bank plans to adopt aggressive strategy for launching
Capital adequacy ratio % 14.0 11.3 11.6 internet-based non-fund products. The bank is also targeting to increase the share of
Net NPAs % 0.2 0.2 0.2 CASA to total deposits to 40% and diversify its advance base to ensure better net
interest margins (NIMs).

GET MORE INFO AT WWW.EQUITYMASTER.COM

53
 Regd off: Trishul, 3rd Flr,Opp Samartheshwar Temple, Law Garden, Ahmedabad - 6
AXIS BANK LIMITED E-Mail: p.j.oza@axisbank.com
Web site: www.axisbank.com
Telephone: (079) 2640 9322 Fax: (079) 2640 9321
BANKING MISCELLANEOUS Tr agent: Karvy Computer, Plot 17-24, Vithalrao Nagar, Madhapur, Hyderabad-81
Chairman: P. J. Nayak SEC: P. J. Oza AUD: S. R. Batliboi & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1994 532215 AXSB:IN 10 686.6 -9.8 2.8 15.1 23.2 0.9 246,169.4 1,711.7 INE238A01026
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 42.5% Exports (fob) Rs m 0 (Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 0
Indian inst/Mut Fund : 8.3% Fx inflow Rs m 0 1280
FIIs/GDR : 37.5% Fx outflow Rs m 0
Free float : 11.6% Net fx Rs m 0
Shareholders : 82,405
1000
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
720
High Rs 426 615 902
Low Rs 216 220 505
Income per share Rs 103.7 158.4 195.8
Earnings per share Rs 17.4 22.1 29.6 440
DAILY
Cash flow per share Rs 46.0 66.8 90.1
Dividends per share Rs 3.50 4.50 6.00 100 DMA
Avg Dividend yield % 1.1 1.1 0.9
160
Book value per share Rs 103.5 120.6 244.7
Shares outstanding (eoy) m 278.69 281.63 357.71 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions GDR,ESOP ESOP GDR,ESOP
Avg Price / Income ratio x 3.1 2.6 3.6 No. of months 12 12 12
Avg P/E ratio x 18.4 18.9 23.8 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
Avg P/CF ratio x 12.0 12.8 15.4
Avg Price/Bookvalue ratio x 3.1 3.5 2.9 From Operations Rs m 2,402 52,903 61,399
Dividend payout % 20.1 20.4 20.3 From Investments Rs m -20,975 -36,504 -48,807
Avg Mkt Cap Rs m 89,459 117,581 251,693 From Financial Activity Rs m 9,962 16,370 43,258
No. of employees `000 7 10 15 Net Cashflow Rs m -8,611 32,770 55,850
Total wages & salary Rs m 2,402 3,912 7,521
Avg. income/employee Rs Th 4,408.4 4,470.5 4,752.8 INTERIM RESULTS
Avg. wages/employee Rs Th 366.5 392.0 510.3 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 740.3 660.4 726.6 Operating income Rs m 16,765 18,023 20,154 22,664
Gross Profit Rs m 5,887 7,473 8,284 8,104
INCOME DATA Gross profit margin % 35.1 41.5 41.1 35.8
Interest income Rs m 28,888 44,616 70,051 Net profit Rs m 2,272 3,068 3,614 3,301
Other income Rs m 7,296 10,099 17,959 Net profit margin % 13.6 17.0 17.9 14.6
Interest expense Rs m 18,106 29,932 44,198
Net interest income Rs m 10,782 14,684 25,853 KEY DATA
Operating expense Rs m 8,141 12,194 21,667 Parameters Unit FY06 FY07 FY08
Gross profit Rs m 2,641 2,490 4,186 Branches nos. 450 561 671
Gross profit margin % 9.1 5.6 6.0 Employees nos. 6,553 9,980 14,739
Provisions/contingencies Rs m 2,625 2,992 5,794 Business / branch Rs m 1,387 1,705 2,195
Profit before tax Rs m 7,313 9,599 16,350 Profit / employee Rs m 0.7 0.7 0.7
Extraordinary Inc (Exp) Rs m 0 0 0 NIM % 2.8 2.9 3.5
Minority Interest Rs m 0 0 0
NOTES
Prior Period Items Rs m 0 0 0
Tax Rs m 2,462 3,374 5,759 Axis Bank is one of the most aggressive players in the private sector banking industry
Profit after tax Rs m 4,851 6,225 10,591 having nearly doubled its share in non-food credit over the last 6 years from 1.0% in
FY02 to 2.6% in FY08. Its exposure to the retail segment stood at 23% of total
Net profit margin % 16.8 14.0 15.1
advances at the end of FY08. The bank's strategy is to aggressively tap the retail
BALANCE SHEET DATA domain via the use of ATMs. Following this strategy, the bank has set up a network
of 2,764 ATMs, the third largest in the country.
Advances Rs m 223,142 368,765 594,760
Deposits Rs m 401,135 587,850 876,193 Axis Bank showed no signs of slowing down in its incremental advance growth,
Credit/Deposit ratio x 55.6 62.7 67.9 clocking 62% YoY growth in advances in FY08. A 60% YoY growth in fee income took
Yield on advances % 6.8 7.3 8.0 the contribution of fee-based income to the bank's total income to 30% in FY08. The
Cost of deposits % 3.9 4.2 4.3 higher fee income contribution also insulates the bank's bottomline against any
Net Interest Margin % 2.8 2.9 3.5 negative surprises on the treasury side. Further, given that Axis Bank stands to be
Net fixed assets Rs m 5,677 6,778 9,325 one of the best-hedged banks in terms of interest rate risk on the treasury portfolio,
Share capital Rs m 2,787 2,816 3,577 it requires relatively lower provisioning on this front. During FY08, the bank added 110
Free reserves Rs m 21,008 24,342 74,247 branches and 423 ATMs, which spurted its cost to income ratio from 47% in FY07 to
49% in FY08.
Net worth Rs m 28,856 33,974 87,540
Borrowings Rs m 26,809 51,956 56,240 At the end of FY08, Axis Bank had 6 outstanding derivatives transactions that had
Investments Rs m 215,274 268,872 338,651 been repudiated by two customers, involving mark-to-market losses to the companies
Total assets Rs m 497,311 732,560 1,095,664 of Rs 720 m. Also, the two companies concerned had filed cases in courts. The bank
Debt/equity ratio x 14.8 18.8 10.7 is legally contesting these cases and has already provided for the same, considering
Return on assets % 1.0 0.8 1.0 them to be NPAs. Hence the possibility of downside on this front is reduced to that
Return on equity % 16.8 18.3 12.1 extent. The bank's consistency in fee income growth makes it a safe play in the rising
Capital adequacy ratio % 11.1 11.6 13.7 interest rate scenario. Having said that, with the aggressive growth in retail assets,
Net NPAs % 1.0 0.7 0.4 one is forced to be concerned about whether higher delinquencies are in the offing
due to the steep rise in interest rates.

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54
 Regd off: Baroda House, Mandvi, Vadodara - 390 006
BANK OF BARODA E-Mail: investorseivices@bankofbaroda.com
Web site: www.bankofbaroda.com
Telephone: (022) 6698 5000 Fax: (022) 2652 6660
BANKING GOVERNMENT Tr agent: Karvy Computer, Plot 17-24, Vithalrao Nagar, Madhapur, Hyderabad-81
Chairman: M. D. Mallya (MD) SEC: M. L. Jain AUD: B. C. Jain & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1908 532134 BOB:IN 10 294.5 -1.4 6.6 4.6 6.9 2.7 107,259.3 376.6 INE028A01013
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 53.8% Exports (fob) Rs m 0 (Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 0
Indian inst/Mut Fund : 17.7% Fx inflow Rs m 0 520
FIIs/GDR : 19.6% Fx outflow Rs m 0
Free float : 8.9% Net fx Rs m 0
Shareholders : 196,470
420
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
320
High Rs 274 296 501
Low Rs 171 176 186
Income per share Rs 202.0 255.9 333.9
Earnings per share Rs 24.8 31.0 42.5 220
Cash flow per share Rs 79.8 99.0 124.4 DAILY
Dividends per share Rs 5.00 6.00 8.00 100 DMA
Avg Dividend yield % 2.2 2.5 2.3
120
Book value per share Rs 222.7 243.7 311.8
Shares outstanding (eoy) m 364.27 364.27 364.27 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions PI - -
Avg Price / Income ratio x 1.1 0.9 1.0 No. of months 12 12 12
Avg P/E ratio x 9.0 7.6 8.1 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
Avg P/CF ratio x 4.7 4.3 5.2
Avg Price/Bookvalue ratio x 1.0 1.0 1.1 From Operations Rs m 25,396 54,031 24,260
Dividend payout % 20.1 19.4 18.8 From Investments Rs m -1,858 -3,493 -2,437
Avg Mkt Cap Rs m 81,050 85,968 125,127 From Financial Activity Rs m 19,715 -206 20,122
No. of employees `000 39 39 38 Net Cashflow Rs m 43,253 50,332 41,946
Total wages & salary Rs m 15,785 16,969 18,513
Avg. income/employee Rs Th 1,897.8 2,447.6 3,307.8 INTERIM RESULTS
Avg. wages/employee Rs Th 407.1 445.5 503.4 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 233.3 296.4 421.1 Operating income Rs m 28,798 30,022 33,311 32,938
Gross Profit Rs m 9,815 9,975 10,285 10,570
INCOME DATA Gross profit margin % 34.1 33.2 30.9 32.1
Interest income Rs m 73,586 93,219 121,642 Net profit Rs m 3,271 5,010 2,764 3,709
Other income Rs m 11,884 14,909 21,424 Net profit margin % 11.4 16.7 8.3 11.3
Interest expense Rs m 39,933 55,675 80,629
Net interest income Rs m 33,653 37,544 41,013 KEY DATA
Operating expense Rs m 25,205 26,756 30,526 Parameters Unit FY06 FY07 FY08
Gross profit Rs m 8,448 10,788 10,487 Branches nos. 2,743 2,732 2,740
Gross profit margin % 11.5 11.6 8.6 Employees nos. 38,774 38,604 37,850
Provisions/contingencies Rs m 8,274 8,520 8,708 Business / branch Rs m 560 763 934
Profit before tax Rs m 12,200 17,887 23,603 Profit / employee Rs m 0.2 0.3 0.4
Extraordinary Inc (Exp) Rs m 0 0 0 NIM % 3.3 3.2 3.1
Minority Interest Rs m -56 -75 -96
NOTES
Prior Period Items Rs m 0 0 0
Tax Rs m 3,097 6,524 8,023 Bank of Baroda is the fifth largest banking entity in the country (in terms of asset size)
Profit after tax Rs m 9,047 11,288 15,484 with 4.6% share of the total credit disbursals at the end of FY08. After significant loss
of market share (from 5.7% in FY02 to 4% in FY07), a brand and operating overhaul
Net profit margin % 12.3 12.1 12.7
led to accelerated growth in the last two fiscals, thus helping it improve its share and
BALANCE SHEET DATA position itself favourably amongst its peers. Adequate capital (CAR 12.9% in FY08),
high NPA coverage and hedge against interest rate risks peg the bank amongst the
Advances Rs m 614,831 855,580 1,085,790 frontrunners in the public sector banking space.
Deposits Rs m 960,510 1,281,074 1,552,951
Credit/Deposit ratio x 64.0 66.8 69.9 Having one of the largest number of offshore branches amongst Indian banks helped
Yield on advances % 6.4 7.2 7.9 Bank of Baroda tide over some of the liquidity constraints and margin pressures in
Cost of deposits % 3.8 4.0 4.9 FY08. The bank's overseas business clocked a growth rate of 36% YoY. In terms of
Net Interest Margin % 3.3 3.2 3.1 profitability, the international operations had contributed 33% of the bank's net profits
Net fixed assets Rs m 9,748 11,595 24,905 in FY08. On the back of 31% YoY growth in SME credit (11% of total domestic
Share capital Rs m 3,655 3,655 3,655 advances) Bank of Baroda registered a 26% YoY growth in domestic advances in
Free reserves Rs m 56,524 61,838 69,121 FY08. The bank had gross NPA ratio of 3.4% (4.1% in FY07) and net NPA ratio of
0.5% (0.6% in FY07) at the end of FY08.
Net worth Rs m 81,130 88,776 113,585
Borrowings Rs m 11,712 11,712 39,622 Bank of Baroda plans to continue the thrust on overseas business and take its share
Investments Rs m 356,452 356,770 446,578 to 25% in the next three years from the current 20%. The bank is targeting its deposits
Total assets Rs m 1,166,841 1,468,716 1,834,790 and advances to grow by 18% YoY and 22% YoY in FY09. While share of SME and
Debt/equity ratio x 12.0 14.6 14.0 retail segments in the advance book are expected to move up to 15.5% and 22.0%
Return on assets % 0.8 0.8 0.8 respectively, the share of CASA is expected to go up to 38%. Further, the bank hopes
Return on equity % 11.2 12.7 13.6 to sustain the level of NIM at 3.0% in FY09 (3.1% in FY08) by passing on the rate
Capital adequacy ratio % 13.7 11.8 12.9 hike on incremental advances. A high provisioning cover, exposure in overseas
Net NPAs % 0.9 0.6 0.5 markets and reasonable consistency in net interest margins makes it a de-risked play
in the PSU banking sector. The excessive dependence on fund-based revenues is
the only downside to prospects of the bank.
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55
 Regd off: Star House, C - 5, "G" Block, Bandra Kurla Complex, Mumbai - 51
BANK OF INDIA E-Mail: hoshares@bankofindia.co.in
Web site: www.bankofindia.com
Telephone: (022) 6668 4444 Fax: (022) 6668 4491
BANKING Central Government Tr agent: Sharepro Services, Satam Estate, 3rd Flr, Chakala, Mumbai - 99
Chairman: T. S. Narayanasami (MD) SEC: Rajeev Bhatia AUD: K. N. Gutgutia & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1906 532149 BOI:IN 10 284.5 -7.5 17.7 5.7 7.6 1.4 149,385.7 747.9 INE084A01016
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 64.5% Exports (fob) Rs m 0 (Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 0
Indian inst/Mut Fund : 11.0% Fx inflow Rs m 0 500
FIIs/GDR : 16.3% Fx outflow Rs m 0
Free float : 8.3% Net fx Rs m 0
Shareholders : 229,487
390
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
280
High Rs 148 225 465
Low Rs 78 80 145
Income per share Rs 143.9 182.9 235.9
Earnings per share Rs 14.8 22.7 37.3 170
Cash flow per share Rs 46.5 66.9 82.8 DAILY
Dividends per share Rs 3.00 3.50 4.00 100 DMA
Avg Dividend yield % 2.7 2.3 1.3
60
Book value per share Rs 105.0 123.4 203.2
Shares outstanding (eoy) m 488.58 488.58 525.17 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - PP
Avg Price / Income ratio x 0.8 0.8 1.3 No. of months 12 12 12
Avg P/E ratio x 7.6 6.7 8.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
Avg P/CF ratio x 3.7 3.8 5.4
Avg Price/Bookvalue ratio x 1.1 1.2 1.5 From Operations Rs m 34,036 50,982 -5,533
Dividend payout % 20.2 15.4 10.7 From Investments Rs m -1,228 -530 -1,123
Avg Mkt Cap Rs m 55,210 74,423 160,177 From Financial Activity Rs m 6,388 9,151 10,602
No. of employees `000 41 42 42 Net Cashflow Rs m 39,197 59,604 3,946
Total wages & salary Rs m 13,305 16,166 16,653
Avg. income/employee Rs Th 1,665.3 2,152.8 3,050.8 INTERIM RESULTS
Avg. wages/employee Rs Th 315.2 389.4 410.0 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 171.7 266.9 482.5 Operating income Rs m 29,752 31,511 35,016 35,483
Gross Profit Rs m 9,857 10,794 12,168 11,807
INCOME DATA Gross profit margin % 33.1 34.3 34.7 33.3
Interest income Rs m 70,287 89,363 123,910 Net profit Rs m 4,252 5,119 7,570 5,619
Other income Rs m 11,913 15,713 21,374 Net profit margin % 14.3 16.2 21.6 15.8
Interest expense Rs m 43,966 54,957 81,471
Net interest income Rs m 26,321 34,406 42,439 KEY DATA
Operating expense Rs m 21,185 26,121 27,229 Parameters Unit FY06 FY07 FY08
Gross profit Rs m 5,136 8,285 15,210 Branches nos. 2,616 2,725 2,883
Gross profit margin % 7.3 9.3 12.3 Employees nos. 41,320 41,511 41,511
Provisions/contingencies Rs m 7,856 8,621 10,165 Business / branch Rs m 608 752 446
Profit before tax Rs m 9,418 15,217 26,459 Profit / employee Rs m 0.2 0.3 0.4
Extraordinary Inc (Exp) Rs m 0 0 0 NIM % 2.5 3.0 3.0
Minority Interest Rs m -14 -19 -44
NOTES
Prior Period Items Rs m 0 0 0
Tax Rs m 2,158 4,118 6,817 With one of the most geographically diversified advance portfolio, Bank of India (BOI)
Profit after tax Rs m 7,246 11,080 19,598 is amongst the largest public sector banking entities in the country (in terms of asset
size) with 3.4% share of the total non-food credit disbursals at the end of FY08. The
Net profit margin % 10.3 12.4 15.8
bank sourced 19% of its advances and 21% of its deposits from the overseas markets
BALANCE SHEET DATA at the end of FY08. BOI's global business exposure helped it de-risk its portfolio from
interest rate risks in the past fiscal.
Advances Rs m 651,737 851,159 1,137,647
Deposits Rs m 939,277 1,198,768 1,504,053 Retail and agriculture loans (grew by 35% and 25% YoY respectively) helped the
Credit/Deposit ratio x 69.4 71.0 75.6 bank grow its advance portfolio by 32% YoY in FY08. Due to the firm trend in
Yield on advances % 7.0 7.5 8.2 domestic interest rates, the bank's foreign deposits grew at rates (56% YoY) almost
Cost of deposits % 3.7 3.8 4.7 double that of the domestic deposits (32% YoY). Foreign advances also grew at a
Net Interest Margin % 2.5 3.0 3.0 quicker pace (37% YoY) as compared to the domestic advances (31% YoY). The
Net fixed assets Rs m 8,101 7,895 24,333 bank's net interest margins (NIMs) of 3.4% (same as in FY07) in domestic business
Share capital Rs m 4,881 4,881 5,259 and 1.2% (1.3% in FY07) in foreign business helped it keep the NIMs stable at 3.0%
Free reserves Rs m 23,140 28,195 50,603 in FY08. Low cost deposits (CASA) comprised 36% of the bank's total deposits in
FY08. Around 29% YoY growth in fee income brought the fee-to-income ratio to 9%
Net worth Rs m 51,306 60,268 106,710
in FY08. With NPA coverage of 81% (69% in FY07), the bank had gross NPA ratio of
Borrowings Rs m 40,376 52,704 71,724
1.7% (2.4% in FY07) and net NPA ratio of 0.5% (1.0% in FY07) at the end of FY08.
Investments Rs m 319,254 356,203 419,246
Total assets Rs m 1,124,214 1,419,516 1,793,424 BOI is targeting growth rate of 20% YoY in deposits and 25% YoY in advances in
Debt/equity ratio x 19.1 20.8 14.8 FY09. Its target of low cost deposits growth is also 25% YoY. In the advances
Return on assets % 0.6 0.8 1.1 portfolio, the bank expects the retail asset growth to slow down to 25% in line with the
Return on equity % 14.1 18.4 18.4 sector trend due to the firmness in interest rates. The bank will also be raising Tier II
Capital adequacy ratio % 10.8 11.8 12.1 capital to maintain its CAR above 11% in FY09 and expand its franchise by opening
Net NPAs % 1.5 1.0 0.5 125 new branches in the current fiscal.

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56
 Regd off: Lokmangal, 1501, Shivajinagar, Pune - 411 005
BANK OF MAHARASHTRA E-Mail: compsec@mahabank.co.in
Web site: www.bankofmaharashtra.in
Telephone: (020) 2551 1360 Fax: (020) 2551 3122
BANKING Central Government Tr agent: MCS, Harmony House, Sector-1, Khanda Colony, New Panvel - 206
Chairman: M. D. Mallya SEC: A. Y. Shedshale AUD: S. K. Mehta & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1935 532525 BOMH:IN 10 35.4 2.3 -33.8 2.9 4.6 5.7 15,218.9 147.7 INE457A01014
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 76.8% Exports (fob) Rs m 0 (Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 0
Indian inst/Mut Fund : 5.7% Fx inflow Rs m 0 100
FIIs/GDR : 8.1% Fx outflow Rs m 0
Free float : 9.5% Net fx Rs m 0
Shareholders : 177,611
78
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
56
High Rs 41 51 97
Low Rs 30 18 37
Income per share Rs 57.5 63.2 82.3
Earnings per share Rs 1.2 6.3 7.7 34
Cash flow per share Rs 9.9 18.7 28.0 DAILY
Dividends per share Rs 0.40 2.00 2.00 100 DMA
Avg Dividend yield % 1.1 5.8 3.0
12
Book value per share Rs 36.6 40.6 41.6
Shares outstanding (eoy) m 430.52 430.52 430.52 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Avg Price / Income ratio x 0.6 0.5 0.8 No. of months 12 12 12
Avg P/E ratio x 29.2 5.4 8.7 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
Avg P/CF ratio x 4.3 2.7 5.9
Avg Price/Bookvalue ratio x 1.0 0.8 1.6 From Operations Rs m -17,222 4,862 7,252
Dividend payout % 32.9 31.6 26.1 From Investments Rs m -340 -784 -978
Avg Mkt Cap Rs m 15,283 14,853 28,673 From Financial Activity Rs m 2,715 5,466 2,557
No. of employees `000 14 14 14 Net Cashflow Rs m -14,847 9,543 8,831
Total wages & salary Rs m 4,250 4,647 4,858
Avg. income/employee Rs Th 1,761.0 1,959.3 2,605.3 INTERIM RESULTS
Avg. wages/employee Rs Th 302.4 334.5 357.5 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 37.2 196.4 242.8 Operating income Rs m 9,510 9,057 9,651 9,984
Gross Profit Rs m 3,928 3,006 3,288 3,172
INCOME DATA Gross profit margin % 41.3 33.2 34.1 31.8
Interest income Rs m 24,746 27,221 35,406 Net profit Rs m 904 1,003 560 467
Other income Rs m 528 2,655 2,809 Net profit margin % 9.5 11.1 5.8 4.7
Interest expense Rs m 15,027 16,277 23,116
Net interest income Rs m 9,719 10,944 12,290 KEY DATA
Operating expense Rs m 6,595 7,468 8,369 Parameters Unit FY06 FY07 FY08
Gross profit Rs m 3,124 3,476 3,921 Branches nos. 1,300 1,345 1,375
Gross profit margin % 12.6 12.8 11.1 Employees nos. 14,052 13,893 13,590
Provisions/contingencies Rs m 2,994 2,774 1,525 Business / branch Rs m 338 427 517
Profit before tax Rs m 672 3,369 5,217 Profit / employee Rs m - 0.2 0.2
Extraordinary Inc (Exp) Rs m 0 0 0 NIM % 3.2 2.9 2.8
Minority Interest Rs m 0 0 0
NOTES
Prior Period Items Rs m 0 0 0
Tax Rs m 149 640 1,918 Registered in 1935 with an authorised capital of Rs 1 m, Bank of Maharashtra (BoM)
Profit after tax Rs m 523 2,729 3,299 commenced business in 1936. The government held 76.7% stake in the bank at the
end of June 2008. BoM has the largest network of branches owned by any public
Net profit margin % 2.1 10.0 9.3
sector bank in the state of Maharashtra. The percentage of priority sector advances
BALANCE SHEET DATA to net bank credit stood at 48.3% in FY08 against the minimum targeted level of 40%,
due to the bank's presence in the rural and semi urban areas of the country.
Advances Rs m 164,697 229,194 292,858
Deposits Rs m 269,027 339,158 417,528 The bank has been able to sustain its strong performance in mobilising CASA (grew
Credit/Deposit ratio x 61.2 67.6 70.1 by 27% YoY) and maintain the share of the same to total deposits at 44% as against
Yield on advances % 7.2 7.4 8.7 43% in FY08. The bank's advance portfolio grew by 37% YoY, of which advances to
Cost of deposits % 5.1 4.4 5.1 the SME segment grew by 34% YoY. Retail housing loans grew by 20% YoY. The net
Net Interest Margin % 3.2 2.9 2.8 NPAs were at 0.9% in FY08 while CAR was sustained above 10% in FY08. The
ssNet fixed assets Rs m 1,843 2,149 2,205 bank's RONW improved from 15.6% in FY07 to 18.4% in FY08 while the NIMs
Share capital Rs m 4,305 4,305 4,305 dropped from 2.9% to 2.8% due to higher cost of funds.
Free reserves Rs m 8,146 9,095 8,567
BOM is targeting 22% YoY growth in savings accounts in FY09 and reduce the net
Net worth Rs m 15,770 17,478 17,889 NPA level to below 1%. Around 45 branches are proposed to be opened at new
Borrowings Rs m 2,009 2,009 1,992 business centres in north, south and eastern parts of the country. The bank has
Investments Rs m 113,513 112,964 122,821 entered into tie up with Franklin Templeton for distribution of mutual fund products.
Total assets Rs m 312,320 390,164 481,578
Debt/equity ratio x 17.2 19.5 23.5
Return on assets % 0.2 0.7 0.7
Return on equity % 3.3 15.6 18.4
Capital adequacy ratio % 11.3 12.1 10.3
Net NPAs % 2.0 1.2 0.9

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57
 Regd off: 112, Jayachamarajendra Road, P. B. No. 6618, Bangalore - 560 002
CANARA BANK E-Mail: hosecretarial@canbank.co.in
Web site: www.canarabank.com
Telephone: (080) 2222 1581/82 Fax: (080) 2224 8831
BANKING GOVERNMENT Tr agent: Karvy Computershare, 46, Avenue 4, St. No. 1, Banjara Hills, Hyd. - 34
Chairman: M. B. N. Rao (MD) SEC: S. R. Krishnan AUD: S. N. Mukherji
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1906 532483 CBK:IN 10 228.4 6.7 -8.3 4.4 5.2 3.5 93,623.5 109.2 INE476A01014
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 73.2% Exports (fob) Rs m 0 (Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 0
Indian inst/Mut Fund : 5.9% Fx inflow Rs m 0 430
FIIs/GDR : 13.5% Fx outflow Rs m 0
DAILY
Free float : 7.5% Net fx Rs m 0
Shareholders : 116,268 100 DMA
360
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
290
High Rs 300 319 421
Low Rs 170 165 176
Income per share Rs 213.3 277.6 347.0
Earnings per share Rs 33.6 37.3 43.8 220
Cash flow per share Rs 73.3 78.2 95.9
Dividends per share Rs 6.60 7.00 8.00
Avg Dividend yield % 2.8 2.9 2.7
150
Book value per share Rs 184.7 264.8 261.5
Shares outstanding (eoy) m 410.00 410.00 410.00 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Avg Price / Income ratio x 1.1 0.9 0.9 No. of months 12 12 12
Avg P/E ratio x 7.0 6.5 6.8 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
Avg P/CF ratio x 4.0 3.6 4.3
Avg Price/Bookvalue ratio x 1.3 0.9 1.1 From Operations Rs m 39,420 17,932 22,955
Dividend payout % 19.6 18.8 18.3 From Investments Rs m -1,541 -1,696 -2,746
Avg Mkt Cap Rs m 96,350 99,220 122,385 From Financial Activity Rs m 3,922 19,571 -3,747
No. of employees `000 47 46 45 Net Cashflow Rs m 41,801 35,807 16,461
Total wages & salary Rs m 15,249 16,188 16,822
Avg. income/employee Rs Th 1,865.0 2,455.4 3,143.4 INTERIM RESULTS
Avg. wages/employee Rs Th 325.2 349.2 371.7 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 294.2 329.7 396.7 Operating income Rs m 34,826 35,502 37,880 37,305
Gross Profit Rs m 7,869 9,344 9,225 10,191
INCOME DATA Gross profit margin % 22.6 26.3 24.4 27.3
Interest income Rs m 87,457 113,832 142,272 Net profit Rs m 4,016 4,588 4,641 1,227
Other income Rs m 14,086 16,505 24,958 Net profit margin % 11.5 12.9 12.3 3.3
Interest expense Rs m 51,615 73,657 106,895
Net interest income Rs m 35,842 40,175 35,377 KEY DATA
Operating expense Rs m 24,266 26,642 28,716 Parameters Unit FY06 FY07 FY08
Gross profit Rs m 11,576 13,533 6,661 Branches nos. 2,532 2,578 2,675
Gross profit margin % 13.2 11.9 4.7 Employees nos. 46,893 46,359 45,260
Provisions/contingencies Rs m 10,113 12,511 10,741 Business / branch Rs m 819 987 977
Profit before tax Rs m 15,929 17,965 21,418 Profit / employee Rs m 0.3 0.3 0.4
Extraordinary Inc (Exp) Rs m 0 0 0 NIM % 3.0 2.8 2.4
Minority Interest Rs m -42 -47 -65
NOTES
Prior Period Items Rs m 0 0 0
Tax Rs m 2,092 2,635 3,400 Canara Bank is the fourth largest bank in the country in terms of asset size after SBI,
Profit after tax Rs m 13,795 15,283 17,953 ICICI Bank and PNB. The bank had 4.9% share of the total non-food credit and 4.8%
share of the total deposits in the banking sector in FY08. The bank has national
Net profit margin % 15.8 13.4 12.6
presence through 2,678 branches and 2,006 ATMs. As a part of its strategy on loan
BALANCE SHEET DATA growth, Canara Bank is going slow on retail advances (of which 40% are low yielding
mortgage assets) and instead focusing on the SME and corporate segments for
Advances Rs m 800,257 988,949 1,076,171 growth.
Deposits Rs m 1,167,767 1,423,764 1,537,287
Credit/Deposit ratio x 68.5 69.5 70.0 Canara Bank's loan growth moderated to 18% YoY in FY08 as against 25% in FY07.
Yield on advances % 6.9 7.6 9.2 The retail segment, which constituted 17% of the total loans, grew by 10% YoY. The
Cost of deposits % 4.1 4.8 6.5 bank's credit to deposit ratio improved from 69% in FY07 to 70% in FY08. At the end
Net Interest Margin % 3.0 2.8 2.4 of FY08, the bank's CAR (capital adequacy ratio) was 13.3%. At 0.9%, Canara Bank's
Net fixed assets Rs m 7,048 28,762 29,415 return in assets in FY08 was higher than most of the large banks except PNB. FY08
Share capital Rs m 4,100 4,100 4,100 saw further weakening in the bank's net interest margin (2.4% in FY08), the fourth
Free reserves Rs m 39,413 47,183 44,553 year in a row. However, the current and savings account (CASA) comprised 32% of
the bank's total deposits. Canara Bank's CASA per branch of Rs 181 m is amongst
Net worth Rs m 75,746 108,552 107,200
the highest in PSU banks. The bank had gross NPA ratio of 1.3% (1.5% in FY07) and
Borrowings Rs m 5,458 5,683 27,778
net NPA ratio of 0.8% (0.9% in FY07) at the end of FY08. Further, the bank's fee-
Investments Rs m 370,126 452,929 495,977 based income recorded a strong growth of 20% YoY in FY08.
Total assets Rs m 1,337,700 1,665,421 1,809,214
Debt/equity ratio x 15.5 13.2 14.6 Canara Bank is targeting growth rate of 21% YoY in deposits and 20% YoY in
Return on assets % 1.0 0.9 1.0 advances in FY09. It has also taken up a major brand building exercise and
Return on equity % 18.2 14.1 16.7 comprehensive review of its business strategies covering products, processes,
Capital adequacy ratio % 11.2 13.5 13.3 people and its organisation. After creation of JVs in insurance and asset
Net NPAs % 1.1 0.9 0.8 management, the bank is exploring similar options in other financial services.

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58
 Regd off: P. B. No. 88, Mangaladevi Temple Road, Mangalore - 575 001
CORPORATION BANK E-Mail: isd@corpbank.co.in
Web site: www.corpbank.in
Telephone: (0824) 242 6416 - 20 Fax: (0824) 242 3853
BANKING GOVERNMENT Tr agent: Karvy Computershare, Plot 17-24, Vithalrao Nagar, Madhapur, Hyd. - 81
Chairman: B. Sambamurthy SEC: S. K. Dash AUD: N. K. Bhargava & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1906 532179 CRPBK:IN 10 292.2 2.7 -11.7 3.9 5.6 3.6 41,906.0 5.4 INE112A01015
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 57.2% Exports (fob) Rs m 0 (Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 0
Indian inst/Mut Fund : 28.8% Fx inflow Rs m 0 1250
FIIs/GDR : 10.9% Fx outflow Rs m 0
Free float : 3.1% Net fx Rs m 0
Shareholders : 31,412
1075
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
900
High Rs 508 428 472
Low Rs 313 208 237
Income per share Rs 185.4 234.8 314.9
Earnings per share Rs 30.9 36.0 52.3 725
Cash flow per share Rs 79.4 90.7 124.8 DAILY
Dividends per share Rs 7.00 9.00 10.50 100 DMA
Avg Dividend yield % 1.7 2.8 3.0
550
Book value per share Rs 240.7 265.2 298.6
Shares outstanding (eoy) m 143.44 143.44 143.44 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Avg Price / Income ratio x 2.2 1.4 1.1 No. of months 12 12 12
Avg P/E ratio x 13.3 8.8 6.8 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
Avg P/CF ratio x 8.1 5.4 5.5
Avg Price/Bookvalue ratio x 1.7 1.2 1.2 From Operations Rs m 6,785 28,376 24,067
Dividend payout % 22.7 25.0 20.1 From Investments Rs m -560 -845 -506
Avg Mkt Cap Rs m 58,882 45,614 50,849 From Financial Activity Rs m -1,145 -1,227 -1,594
No. of employees `000 11 12 12 Net Cashflow Rs m 5,080 26,303 21,967
Total wages & salary Rs m 3,646 3,785 4,280
Avg. income/employee Rs Th 2,348.5 2,834.6 3,760.4 INTERIM RESULTS
Avg. wages/employee Rs Th 321.9 318.6 356.3 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 391.2 434.5 624.8 Operating income Rs m 10,638 10,989 12,535 12,887
Gross Profit Rs m 3,546 3,337 4,026 3,780
INCOME DATA Gross profit margin % 33.3 30.4 32.1 29.3
Interest income Rs m 26,597 33,675 45,166 Net profit Rs m 1,613 1,909 2,056 1,843
Other income Rs m 4,613 6,353 7,012 Net profit margin % 15.2 17.4 16.4 14.3
Interest expense Rs m 14,139 20,545 30,631
Net interest income Rs m 12,458 13,130 14,535 KEY DATA
Operating expense Rs m 7,510 8,045 8,923 Parameters Unit FY06 FY07 FY08
Gross profit Rs m 4,948 5,085 5,612 Branches nos. 835 901 981
Gross profit margin % 18.6 15.1 12.4 Employees nos. 10,810 11,880 12,011
Provisions/contingencies Rs m 2,840 3,235 1,825 Business / branch Rs m 589 685 779
Profit before tax Rs m 6,722 8,207 10,808 Profit / employee Rs m 0.4 0.4 0.6
Extraordinary Inc (Exp) Rs m 0 0 0 NIM % 3.5 3.2 2.8
Minority Interest Rs m 0 0 0
NOTES
Prior Period Items Rs m 0 0 0
Tax Rs m 2,292 3,045 3,304 Construed as one of the best managed PSU banks in India with a relatively clean
Profit after tax Rs m 4,430 5,162 7,504 balance sheet and impressive track record, Corporation Bank (with 1.5% share of the
total non-food credit and 2.1% share of the total deposits in the banking sector in
Net profit margin % 16.7 15.3 16.6
FY08) has been able to sustain its high margins and capital adequacy over the years.
BALANCE SHEET DATA The bank has entered into an MOU (memorandum of understanding) with OBC and
Indian Bank for franchise and employee sharing.
Advances Rs m 240,000 299,497 391,856
Deposits Rs m 328,258 422,266 553,105 Corporation Bank clocked a healthy 31% YoY growth in advances in FY08. While the
Credit/Deposit ratio x 73.1 70.9 70.8 deposit growth of nearly 31% YoY was higher than the industry average of 24% YoY,
Yield on advances % 6.9 7.9 8.2 the marginal decline in the proportion of low cost deposits (CASA) to total deposits is
Cost of deposits % 3.9 4.5 5.2 a concern. More so, in a rising interest rate scenario. The bank's NIMs also shrunk to
Net Interest Margin % 3.5 3.2 2.8 2.8% in FY08 from 3.2% in FY07. Corporation Bank witnessed 13% YoY growth in its
Net fixed assets Rs m 2,569 2,814 2,720 fee income during the fiscal after very negligible growth in the past. The same has
Share capital Rs m 1,434 1,434 1,434 also shown some signs of stability as a percentage of total income. The bank's MOU
Free reserves Rs m 23,555 24,517 26,655 with OBC and Indian Bank that gave it access to customers in the northern regions
of the country and enabled it to leverage the delivery channels of the other two banks
Net worth Rs m 34,523 38,047 42,832
has enhanced its revenue growth on the fee income side.
Borrowings Rs m 16,655 18,296 21,458
Investments Rs m 106,354 143,207 164,504 The bank's annualised return on equity stands at a healthy 17.4% and CAR at 12.5%
Total assets Rs m 405,607 526,300 665,421 at the end of March 2008 and is estimated to be 11.7% as per Basel-II accord. It is
Debt/equity ratio x 10.0 11.6 13.4 targeting asset growth of 20% to 25% in FY09 on the back of CASA comprising 36%
Return on assets % 1.1 1.0 1.1 of its total deposits (i.e., through low cost funding). Aggressive growth at the cost of
Return on equity % 12.8 13.6 17.5 margins and little support from fee income is unlikely to stand the bank in good stead
Capital adequacy ratio % 14.7 13.2 12.5 going forward. Having said that, investors should not discount the fact the bank
Net NPAs % 0.6 0.5 0.3 continues to enjoy one of the better margins and capital adequacy ratios (amongst
PSU banks) and prospects of the synergies due to the MOU.

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59
 Regd off: HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai - 13
HDFC BANK LIMITED + $ E-Mail: investor.helpdesk@hdfcbank.com
Web site: www.hdfcbank.com
Telephone: (022) 6652 1000 Fax: (022) 2496 0737
BANKING MISCELLANEOUS Tr agent: Datamatics Fin., Plot A 16&17, Part B Cross Lane, MIDC, Mumbai - 93
Chairman: Jagdish Capoor SEC: Sanjay B. Dongre (Exec. VP - Legal) AUD: Haribhakti & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1994 500180 HDFCB:IN 10 1,247.5 5.3 6.3 23.6 33.9 0.7 541,393.3 550.6 INE040A01018
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 23.3% Exports (fob) Rs m 0 (Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 0
Indian inst/Mut Fund : 7.5% Fx inflow Rs m 0 1990
FIIs/GDR : 47.5% Fx outflow Rs m 0
Free float : 21.7% Net fx Rs m 0
Shareholders : 203,091
1630
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
1270
High Rs 812 1,150 1,825
Low Rs 448 620 895
Income per share Rs 142.9 218.5 285.5
Earnings per share Rs 28.2 36.5 45.0 910
Cash flow per share Rs 72.1 93.9 130.9
DAILY
Dividends per share Rs 5.50 7.00 8.50 100 DMA
Avg Dividend yield % 0.9 0.8 0.6
550
Book value per share Rs 170.1 205.3 325.5
Shares outstanding (eoy) m 313.14 315.15 354.40 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions ESOS ESOP ADR,PA
Avg Price / Income ratio x 4.4 4.0 4.8 No. of months 12 12 12
Avg P/E ratio x 22.4 24.2 30.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
Avg P/CF ratio x 12.3 12.0 15.6
Avg Price/Bookvalue ratio x 3.7 4.3 4.2 From Operations Rs m 16,955 6,512 35,746
Dividend payout % 19.5 19.2 18.9 From Investments Rs m -3,701 -3,224 -6,286
Avg Mkt Cap Rs m 197,278 278,908 481,984 From Financial Activity Rs m 11,457 16,411 36,326
No. of employees `000 15 21 38 Net Cashflow Rs m 24,711 19,699 65,787
Total wages & salary Rs m 4,941 7,999 37,836
Avg. income/employee Rs Th 3,008.0 3,206.8 2,673.9 INTERIM RESULTS
Avg. wages/employee Rs Th 332.1 372.4 1,000.0 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 592.6 535.9 421.6 Operating income Rs m 23,628 27,269 29,562 36,217
Gross Profit Rs m 11,627 14,376 16,422 17,234
INCOME DATA Gross profit margin % 49.2 52.7 55.6 47.6
Interest income Rs m 44,753 68,872 101,170 Net profit Rs m 3,685 4,293 4,713 4,643
Other income Rs m 11,556 15,773 23,758 Net profit margin % 15.6 15.7 15.9 12.8
Interest expense Rs m 19,292 31,793 48,874
Net interest income Rs m 25,461 37,079 52,296 KEY DATA
Operating expense Rs m 17,148 24,740 38,264 Parameters Unit FY06 FY07 FY08
Gross profit Rs m 8,313 12,339 14,032 Branches nos. 535 684 761
Gross profit margin % 18.6 17.9 13.9 Employees nos. 14,878 21,477 37,896
Provisions/contingencies Rs m 7,251 11,662 14,849 Business / branch Rs m 1,698 1,685 2,158
Profit before tax Rs m 12,701 16,558 23,037 Profit / employee Rs m 0.6 0.5 0.4
Extraordinary Inc (Exp) Rs m 0 0 0 NIM % 4.0 4.3 4.4
Minority Interest Rs m -25 -33 -67
NOTES
Prior Period Items Rs m 0 0 0
Tax Rs m 3,860 5,016 7,020 With 2.7% share of India's total non-food credit disbursements in FY08, HDFC Bank
Profit after tax Rs m 8,816 11,509 15,950 is the second largest private sector bank in the country (after ICICI Bank) in terms of
asset size. At the end of March 2008, it had a franchise of over 1,970 ATMs and 761
Net profit margin % 19.7 16.7 15.8
branches. Retail assets constituted 62% of advances in FY08. The bank is focusing
BALANCE SHEET DATA on loan origination in the retail, SME (small and medium enterprises) and agriculture
segments and on non-fund based products and services. Its group companies, HDFC
Advances Rs m 350,623 469,448 634,269 Standard Life (insurance), HDFC AMC (mutual funds) and HDFC Securities (equities)
Deposits Rs m 557,471 682,643 1,006,314 add scalability to the bank's offerings.
Credit/Deposit ratio x 62.9 68.8 63.0
Yield on advances % 7.7 9.2 11.0 HDFC Bank surpassed the sector average asset growth (26% YoY in FY08),
Cost of deposits % 2.8 3.9 4.4 reporting a 35% YoY growth in advances for FY08. Given the rise in lending rates,
Net Interest Margin % 4.0 4.3 4.4 the corresponding growth in the bank's retail assets (39% YoY) explains the bank's
Net fixed assets Rs m 8,715 9,875 11,963 ability to re-price the high-yielding retail assets, thus guarding its NIMs (4.4% in
Share capital Rs m 3,131 3,194 3,544 FY08). The bank continues to enjoy the distinction of having the highest proportion of
Free reserves Rs m 41,535 50,020 95,997 low cost deposits in its books (55% in FY08). The bank has been able to grow its fee
income base by 33% YoY in FY08, while the net NPA to advance ratio for the bank
Net worth Rs m 53,272 64,704 115,352
remained stable (0.3% at the end of FY08). In a very important move, HDFC Bank
Borrowings Rs m 25,290 28,154 44,789
acquired Centurion Bank of Punjab (CBoP) in FY08, which lent it substantial scale
Investments Rs m 283,907 305,670 492,880 and size, but is expected to impact the bank's margins and asset quality in the near
Total assets Rs m 736,013 913,083 1,331,931 term.
Debt/equity ratio x 10.9 11.0 9.1
Return on assets % 1.2 1.3 1.2 The union of HDFC Bank and CBoP will make the merged entity the seventh largest
Return on equity % 16.5 17.8 13.8 banking entity in the country with the largest branch franchise amongst private sector
Capital adequacy ratio % 11.4 13.1 13.6 banks. While HDFC Bank has already put in place plans for integration of technology
Net NPAs % 0.4 0.4 0.5 platforms, branch rationailisation and absorption of CBoP employees, the time, cost
and risks involved in the smooth execution of the same need to be watched out for.

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60
 Regd off: Landmark, Race Course Circle, Alkapuri, Vadodara - 390 007
ICICI BANK LIMITED + $ E-Mail: companysecretary@icicibank.com
Web site: www.icicibank.com
Telephone: (022) 2653 1414 Fax: (022) 2653 1122
BANKING MISCELLANEOUS Tr agent: 3i Infotech, Maratha Mandir, Dr. A. R. Nair Road, Mumbai - 8
Chairman: N. Vaghul SEC: Jyotin Mehta (GM) AUD: BSR & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1995 532174 ICICIBC:IN 10 687.2 -0.9 -24.9 17.0 22.5 1.6 764,859.8 1,713.7 INE090A01013
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 0 (Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 0
Indian inst/Mut Fund : 17.5% Fx inflow Rs m 0 1500
FIIs/GDR : 67.9% Fx outflow Rs m 0
Free float : 14.6% Net fx Rs m 0
Shareholders : 770,522
1225
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
950
High Rs 628 998 1,440
Low Rs 360 455 757
Income per share Rs 170.1 266.9 306.5
Earnings per share Rs 27.2 30.7 30.5 675
DAILY
Cash flow per share Rs 144.3 214.2 256.5
Dividends per share Rs 8.50 10.00 11.00 100 DMA
Avg Dividend yield % 1.7 1.4 1.0
400
Book value per share Rs 250.0 266.5 402.0
Shares outstanding (eoy) m 889.83 899.16 1,112.57 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions PI A OI,ADS
Avg Price / Income ratio x 2.9 2.7 3.6 No. of months 12 12 12
Avg P/E ratio x 18.2 23.7 36.0 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
Avg P/CF ratio x 13.5 13.0 19.1
Avg Price/Bookvalue ratio x 2.0 2.7 2.7 From Operations Rs m 69,917 259,785 21,670
Dividend payout % 31.3 32.6 36.0 From Investments Rs m -102,404 -210,899 -291,073
Avg Mkt Cap Rs m 439,576 653,240 1,222,329 From Financial Activity Rs m 78,786 165,946 325,157
No. of employees `000 25 33 40 Net Cashflow Rs m 46,299 214,832 55,754
Total wages & salary Rs m 17,112 26,387 39,719
Avg. income/employee Rs Th 5,962.7 7,273.7 8,528.2 INTERIM RESULTS
Avg. wages/employee Rs Th 674.1 799.6 993.5 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 953.4 836.6 850.0 Operating income Rs m 75,165 79,118 80,293 78,918
Gross Profit Rs m 17,860 19,597 20,795 20,897
INCOME DATA Gross profit margin % 23.8 24.8 25.9 26.5
Interest income Rs m 151,358 240,025 340,950 Net profit Rs m 10,026 12,303 11,499 7,280
Other income Rs m 94,797 173,612 259,581 Net profit margin % 13.3 15.6 14.3 9.2
Interest expense Rs m 101,015 176,757 257,670
Net interest income Rs m 50,343 63,268 83,280 KEY DATA
Operating expense Rs m 105,698 180,132 270,434 Parameters Unit FY06 FY07 FY08
Gross profit Rs m -55,355 -116,864 -187,154 Branches nos. 614 675 1,013
Gross profit margin % -36.6 -48.7 -54.9 Employees nos. 25,384 32,999 39,979
Provisions/contingencies Rs m 8,455 22,774 30,178 Business / branch Rs m 5,069 6,313 4,640
Profit before tax Rs m 30,988 33,975 42,249 Profit / employee Rs m 1.0 0.9 1.0
Extraordinary Inc (Exp) Rs m 0 0 0 NIM % 2.4 2.6 2.2
Minority Interest Rs m 211 1,272 2,830
NOTES
Prior Period Items Rs m 0 0 0
Tax Rs m 6,998 7,641 11,097 With 9.6% share of India's total non-food credit disbursements in FY08, ICICI Bank
Profit after tax Rs m 24,201 27,606 33,982 is the second largest bank in the country after SBI in terms of asset size. At the end
of March 2008, the bank had a franchise of over 2,600 ATMs and 1,000 branches
Net profit margin % 16.0 11.5 10.0
spread across the country. Retail assets constituted 58% of advances in FY08. The
BALANCE SHEET DATA bank's wholly owned subsidiary - ICICI Holdings - failed to get approval from the RBI
and FIPB to start operations.
Advances Rs m 1,562,603 2,113,994 2,514,017
Deposits Rs m 1,724,510 2,486,136 2,769,832 The pains in the domestic lending market seem to have hit ICICI Bank relatively hard
Credit/Deposit ratio x 90.6 85.0 90.8 as it nearly failed to have any plausible growth in its domestic portfolio in FY08. Had
Yield on advances % 6.8 8.0 9.6 it not been for the bank's reasonable presence in the international markets, it could
Cost of deposits % 3.5 5.0 6.8 have actually shown a de-growth. In line with the sector, ICICI Bank witnessed a
Net Interest Margin % 2.4 2.6 2.2 moderation in its asset growth and clocked advance growth of 15% YoY in FY08
Net fixed assets Rs m 41,429 43,401 46,784 against 34% YoY in FY07. Further, while retail assets continued to enjoy dominance
Share capital Rs m 8,898 8,993 11,127 in the bank's portfolio allocation, the proportion of the same reduced substantially
Free reserves Rs m 169,285 170,875 368,060 (58.4% in FY08). Overseas borrowings comprised 23% of ICICI Bank's total deposits
and borrowings at the end of FY08, which helped the bank to sustain its NIMs at
Net worth Rs m 222,418 239,650 447,222
2.2%. The bank's net NPAs (as percentage of total advances) increased to 1.5% in
Borrowings Rs m 407,488 611,600 825,030
FY08, from 1.0% in FY07. Also, the bank clarified that 75% of the retail NPAs were
Investments Rs m 840,139 1,206,167 1,600,468 from non-collateralised assets such as personal loans and credit cards.
Total assets Rs m 2,772,296 3,943,347 4,856,166
Debt/equity ratio x 9.6 12.9 8.0 ICICI Bank expects its global business to contribute 33% of bottomline in the next
Return on assets % 0.9 0.7 0.7 three years (from 22% in FY08). Notwithstanding the fact that we see improving
Return on equity % 10.9 11.5 7.6 prospects for the bank in the longer term, our concerns with respect to the bank's
Capital adequacy ratio % 13.4 11.7 14.9 increasing delinquencies, pressure on margins and risk of write down due to the
Net NPAs % 0.7 1.0 1.6 derivative exposure remain undiluted.

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61
 Regd off: IDBI Tower, WTC Complex, Cuffe Parade, Mumbai - 400 005
IDBI BANK LIMITED E-Mail: vv.panchal@idbi.co.in
Web site: www.idbi.com
Telephone: (022) 6655 2244 Fax: (022) 2218 2352
BANKING GOVERNMENT Tr agent: Investor Ser., II flr, IDBI bldg, Sec II, CBD Belapur, Navi Mumbai - 614
Chairman: Yogesh Agarwal (MD) SEC: S. N. Baheti (CCO) AUD: Khimji Kunverji & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1964 500116 IDBI:IN 10 88.7 -0.2 -33.7 7.5 8.6 2.3 64,286.2 1,817.8 INE008A01015
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 52.7% Exports (fob) Rs m 0 (Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 0
Indian inst/Mut Fund : 21.2% Fx inflow Rs m 0 200
FIIs/GDR : 2.9% Fx outflow Rs m 0
Free float : 23.3% Net fx Rs m 0
Shareholders : 437,077
160
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
120
High Rs 131 108 181
Low Rs 75 49 71
Income per share Rs 76.6 90.5 114.2
Earnings per share Rs 7.5 8.1 10.3 80
Cash flow per share Rs 17.5 17.0 19.1 DAILY
Dividends per share Rs 1.50 1.50 2.00 100 DMA
Avg Dividend yield % 1.5 1.9 1.6
40
Book value per share Rs 92.0 117.7 125.0
Shares outstanding (eoy) m 723.79 724.35 724.76 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions ESOP ESOP ESOP
Avg Price / Income ratio x 1.3 0.9 1.1 No. of months 12 12 12
Avg P/E ratio x 13.7 9.7 12.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
Avg P/CF ratio x 9.8 7.0 7.2
Avg Price/Bookvalue ratio x 1.1 0.7 1.0 From Operations Rs m 772 4,797 17,650
Dividend payout % 20.0 18.5 19.4 From Investments Rs m -663 1,480 -1,184
Avg Mkt Cap Rs m 74,550 56,789 91,320 From Financial Activity Rs m -1,485 11,486 -1,862
No. of employees `000 5 8 8 Net Cashflow Rs m -1,377 17,762 14,603
Total wages & salary Rs m 3,289 2,955 4,167
Avg. income/employee Rs Th 12,189.1 8,762.9 10,027.1 INTERIM RESULTS
Avg. wages/employee Rs Th 723.2 394.9 504.9 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 1,195.9 786.3 904.5 Operating income Rs m 19,011 20,772 22,497 24,176
Gross Profit Rs m -571 177 2,082 721
INCOME DATA Gross profit margin % -3.0 0.9 9.3 3.0
Interest income Rs m 55,436 65,564 82,754 Net profit Rs m 1,555 1,758 2,449 1,598
Other income Rs m 12,711 9,604 16,877 Net profit margin % 8.2 8.5 10.9 6.6
Interest expense Rs m 51,151 58,304 75,465
Net interest income Rs m 4,285 7,260 7,289 KEY DATA
Operating expense Rs m 9,042 8,135 10,457 Parameters Unit FY06 FY07 FY08
Gross profit Rs m -4,757 -875 -3,168 Branches nos. 171 425 492
Gross profit margin % -8.6 -1.3 -3.8 Employees nos. 4,561 7,530 8,253
Provisions/contingencies Rs m 2,148 2,275 5,164 Business / branch Rs m 3,164 1,470 1,634
Profit before tax Rs m 5,807 6,455 8,544 Profit / employee Rs m 1.2 0.8 0.9
Extraordinary Inc (Exp) Rs m 0 0 0 NIM % 0.5 0.8 0.6
Minority Interest Rs m 0 0 0
NOTES
Prior Period Items Rs m 0 0 0
Tax Rs m 368 572 1,079 Merger of IDBI and IDBI Bank gave the consolidated entity clean assets and offered
Profit after tax Rs m 5,439 5,883 7,465 valuable growth prospects, besides access to low cost deposits and extended reach.
Although the merged entity is in the league of the largest banks in the country in
Net profit margin % 9.8 9.0 9.0
terms of asset size, its lackadaisical rate of growth leaves it way behind its peers in
BALANCE SHEET DATA terms of performance. In September 2006, the RBI proposed a scheme of
amalgamation of IDBI with United Western Bank (UWB) that entailed paying the
Advances Rs m 541,035 643,673 836,843 latter's shareholders a compensation of Rs 28 per share.
Deposits Rs m 258,539 433,058 729,639
Credit/Deposit ratio x 209.3 148.6 114.7 Conversion of the erstwhile DFI (development financial institution) into a retail
Yield on advances % 8.3 8.4 8.1 banking entity has been the mainstay of IDBI's operational highlights of FY08, with a
Cost of deposits % 3.5 4.6 5.2 marginally positive impact on the bank's flagging margins and operational
Net Interest Margin % 0.5 0.8 0.6 efficiencies. IDBI managed to grow its advance book by 32% in FY08. Retail credit,
Net fixed assets Rs m 8,385 28,031 27,891 which has been the focus of IDBI, ever since it converted into a banking entity has
Share capital Rs m 7,238 7,244 7,248 however shown some signs of slowdown with the rise in interest rates and comprised
Free reserves Rs m 49,522 45,279 50,082 only 16% of the bank's advance book in FY08. Home loans, which comprise 87% of
the bank's retail loans, grew by 16% YoY in FY08. While the deposit growth continues
Net worth Rs m 66,599 85,268 90,615
to be healthy (68% YoY), albeit on a lower base, it must be noted that there has been
Borrowings Rs m 441,106 396,504 397,704
a fall in the proportion of CASA from 31% in FY07 to 21% in FY08. Thus, IDBI failed
Investments Rs m 254,729 253,626 330,644 to improve its net interest margins (0.6% in FY08) dispite the larger base of low cost
Total assets Rs m 903,022 1,059,405 1,325,469 funds. The cost to income ratio improved from 46% in FY07 to 42% in FY08.
Debt/equity ratio x 10.5 9.7 12.4
Return on assets % 0.6 0.6 0.6 With a comfortable CAR of 11.9%, while the downsides to the bank's future prospects
Return on equity % 8.2 6.9 8.2 are almost negligible, the recovery process will be gradual and time consuming. Its
Capital adequacy ratio % 14.8 13.7 12.0 comfortable capital adequacy position and possible upsides in terms of NIMs and
Net NPAs % 1.0 1.1 1.3 NPA recovery make the stock attractive from a long-term perspective.

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62
 Regd off: 'ING Vysya House' No. 22, M. G. Road, Bangalore - 560 001
ING VYSYA BANK LIMITED E-Mail: sharecare@ingvysyabank.com
Web site: www.ingvysyabank.com
Telephone: (080) 2500 5000 Fax: (080) 2500 5555
BANKING MISCELLANEOUS Tr agent: Karvy Computer, Plot 17-24, Vithalrao Nagar, Madhapur, Hyderabad - 81
Chairman: K. R. Ramamoorthy SEC: M. V. S. Appa Rao AUD: S. R. Batliboi & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1930 531807 VYSB:IN 10 248.8 5.9 2.7 9.8 15.5 0.6 25,494.1 0.4 INE166A01011
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.3% Exports (fob) Rs m 0 (Rs)
Foreign collaborators : 43.9% Imports (cif) Rs m 0
Indian inst/Mut Fund : 20.8% Fx inflow Rs m 0 400
FIIs/GDR : 17.8% Fx outflow Rs m 0
Free float : 17.3% Net fx Rs m 0
Shareholders : 24,137
315
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
230
High Rs 205 200 389
Low Rs 133 88 162
Income per share Rs 134.2 138.9 163.4
Earnings per share Rs 3.4 9.7 16.0 145 DAILY
Cash flow per share Rs 54.3 57.7 79.1
Dividends per share Rs 0.00 0.65 1.50 100 DMA
Avg Dividend yield % 0.0 0.5 0.5
60
Book value per share Rs 111.7 120.6 149.9
Shares outstanding (eoy) m 91.09 91.26 102.82 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions R3:1 - PP,PA
Avg Price / Income ratio x 1.3 1.0 1.7 No. of months 12 12 12
Avg P/E ratio x 50.0 14.9 17.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
Avg P/CF ratio x 13.9 6.9 12.8
Avg Price/Bookvalue ratio x 1.5 1.2 1.8 From Operations Rs m -1,982 3,150 14,267
Dividend payout % 0.0 6.7 9.3 From Investments Rs m -775 -260 -358
Avg Mkt Cap Rs m 15,394 13,141 28,327 From Financial Activity Rs m 2,861 1,772 2,022
No. of employees `000 5 5 5 Net Cashflow Rs m 105 4,662 15,931
Total wages & salary Rs m 2,455 2,366 3,027
Avg. income/employee Rs Th 2,301.2 2,373.9 2,871.5 INTERIM RESULTS
Avg. wages/employee Rs Th 462.2 443.0 517.3 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 58.0 165.0 282.0 Operating income Rs m 4,535 4,377 4,506 4,784
Gross Profit Rs m 1,382 1,559 1,406 1,580
INCOME DATA Gross profit margin % 30.5 35.6 31.2 33.0
Interest income Rs m 12,224 12,679 16,804 Net profit Rs m 264 428 429 406
Other income Rs m 1,740 2,827 4,265 Net profit margin % 5.8 9.8 9.5 8.5
Interest expense Rs m 7,412 8,220 11,819
Net interest income Rs m 4,812 4,459 4,985 KEY DATA
Operating expense Rs m 5,286 4,979 6,095 Parameters Unit FY06 FY07 FY08
Gross profit Rs m -474 -520 -1,110 Branches nos. 377 400 446
Gross profit margin % -3.9 -4.1 -6.6 Employees nos. 5,312 5,339 5,341
Provisions/contingencies Rs m 801 1,018 560 Business / branch Rs m 271 299 362
Profit before tax Rs m 458 1,301 2,595 Profit / employee Rs m - 0.2 0.3
Extraordinary Inc (Exp) Rs m 0 0 0 NIM % 3.2 2.6 2.7
Minority Interest Rs m 0 0 0
NOTES
Prior Period Items Rs m 0 0 0
Tax Rs m 150 420 945 ING Vysya Bank is one of the oldest private sector banks in the country, in which the
Profit after tax Rs m 308 881 1,650 ING Group of the Netherlands holds a 44% stake. The bank has a large regional
exposure in the southern region. After having exhibited lackadaisical performance in
Net profit margin % 2.5 6.9 9.8
FY07 and also lagged in terms of asset quality, the bank clocked a relatively better
BALANCE SHEET DATA performance in FY08.

Advances Rs m 102,315 119,762 146,495 ING Vysya Bank managed to grow its advance book by 22% in FY08, with the help
Deposits Rs m 133,352 154,135 204,960 of capital raised in the later half of the fiscal. It raised capital to the tune of Rs 3.5 bn
Credit/Deposit ratio x 76.7 77.7 71.5 in 3QFY08 through private placement of equity shares to Qualified Institutional
Yield on advances % 8.1 8.0 8.9 Buyers (QIBs) and through preferential allotment to the ING Group. The bank
Cost of deposits % 4.6 4.6 5.1 continued in its attempt to catch up with its peers in the private sector. Further the fact
Net Interest Margin % 3.2 2.6 2.7 that it has been able to retain its CASA (low cost deposits) proportion at 31.5% is also
Net fixed assets Rs m 4,061 3,967 3,994 enthusing. However, the bank has had to heavily leverage its equity capital to clock
Share capital Rs m 907 909 1,025 the said growth in asset book, as is evident from its low credit deposit (C/D) ratio. The
Free reserves Rs m 5,363 5,541 9,423 capital adequacy ratio has also shrunk to 10.2% at the end of FY08, one of the lowest
in the sector. Further, ING Vysya was not able to pass on the entire hike in cost of
Net worth Rs m 10,179 11,010 15,414
funding to its borrowers, thereby lowering its net interest margin (NIMs) to 2.7%. The
Borrowings Rs m 8,276 6,936 12,498
bank's net NPA to advance ratio reduced to 0.7% in FY08 (from 1.0% in FY07).
Investments Rs m 43,632 45,170 62,913
Total assets Rs m 167,733 192,771 255,410 Although ING Vysya Bank continues to concentrate on the corporate segment, the
Debt/equity ratio x 13.9 14.6 14.1 bank is now focusing on retail and SME assets. Going forward, the bank is willing to
Return on assets % 0.2 0.5 0.6 increase the total contribution of retail assets and SME together to 55% of credit
Return on equity % 3.0 8.0 10.7 book. However, it is alarming to note that the bank has the least NPA coverage
Capital adequacy ratio % 10.7 10.6 10.2 amongst its peers and in the wake of further rise in interest rates, its delinquency
Net NPAs % 1.8 1.0 0.7 ratios will increase. The fact that the bank continues to cushion its bottomline through
lower provisioning is therefore a concern.

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63
 Regd off: 36-38A, Nariman Bhavan,227, Nariman Point, Mumbai - 400 021
KOTAK MAHINDRA BANK LIMITED E-Mail: bina.chandarana@kotak.com
Web site: www.kotak.com
Telephone: (022) 6658 1100 Fax: (022) 2285 5577
BANKING MISCELLANEOUS Tr agent: Karvy Computershare, 46, Avenue 4,St. 1,Banjara Hills, Hyderabad-34
Chairman: Dr. Shankar Acharya SEC: Bina Chandarana AUD: S. B. Billimoria & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1985 500247 KMB:IN 10 604.6 3.1 -15.6 14.5 21.0 0.1 208,617.2 1,092.2 INE237A01010
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 52.5% Exports (fob) Rs m 0 (Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 0
Indian inst/Mut Fund : 4.7% Fx inflow Rs m 0 1650
FIIs/GDR : 25.0% Fx outflow Rs m 0
Free float : 17.8% Net fx Rs m 0
Shareholders : 102,603
1250
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
850
High Rs 293 529 1,436
Low Rs 115 210 445
Income per share Rs 39.3 60.8 105.9
Earnings per share Rs 23.6 16.5 28.8 450
Cash flow per share Rs 70.9 94.6 150.0 DAILY
Dividends per share Rs 0.60 0.70 0.75 100 DMA
Avg Dividend yield % 0.3 0.2 0.1
50
Book value per share Rs 72.7 99.1 169.0
Shares outstanding (eoy) m 309.29 326.16 344.67 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions B3:2 GDS,ESOP QIB,ESOP
Avg Price / Income ratio x 5.2 6.1 8.9 No. of months 12 12 12
Avg P/E ratio x 8.6 22.4 32.7 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
Avg P/CF ratio x 8.1 17.4 23.9
Avg Price/Bookvalue ratio x 2.8 3.7 5.6 From Operations Rs m 4,807 7,172 -3,076
Dividend payout % 2.5 4.2 2.6 From Investments Rs m -2,187 -5,792 -2,081
Avg Mkt Cap Rs m 63,095 120,516 324,162 From Financial Activity Rs m 860 9,247 17,521
No. of employees `000 7 11 20 Net Cashflow Rs m 3,516 10,627 12,364
Total wages & salary Rs m 4,385 6,881 11,979
Avg. income/employee Rs Th 1,814.5 1,835.2 1,824.2 INTERIM RESULTS
Avg. wages/employee Rs Th 654.5 637.1 599.0 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 1,089.3 498.3 495.6 Operating income Rs m 8,385 9,923 11,042 14,872
Gross Profit Rs m 3,976 4,863 6,362 10,214
INCOME DATA Gross profit margin % 47.4 49.0 57.6 68.7
Interest income Rs m 12,157 19,820 36,484 Net profit Rs m 2,415 3,637 2,401 1,498
Other income Rs m 16,905 23,703 40,301 Net profit margin % 28.8 36.7 21.7 10.1
Interest expense Rs m 5,196 9,771 18,165
Net interest income Rs m 6,961 10,049 18,319 KEY DATA
Operating expense Rs m 17,192 24,441 40,911 Parameters Unit FY06 FY07 FY08
Gross profit Rs m -10,231 -14,392 -22,592 Branches nos. 65 105 178
Gross profit margin % -84.2 -72.6 -61.9 Employees nos. 6,700 10,800 20,000
Provisions/contingencies Rs m 513 1,525 3,630 Business / branch Rs m 2,467 2,403 2,004
Profit before tax Rs m 6,185 7,931 14,217 Profit / employee Rs m 1.1 0.5 0.5
Extraordinary Inc (Exp) Rs m 4,190 0 0
Minority Interest Rs m -947 -7 187
NOTES
Prior Period Items Rs m 0 0 0
Tax Rs m 2,130 2,542 4,492 A flagship company of the well-known financial conglomerate Kotak Mahindra Group,
Profit after tax Rs m 7,298 5,382 9,912 Kotak Mahindra Bank was the first banking entity in the country created by
conversion of a financial institution in 2003. The bank had 178 branches and a
Net profit margin % 60.0 27.2 27.2
distribution network spread across 370 cities and towns in India and offices in New
BALANCE SHEET DATA York, London, San Francisco, Dubai, Mauritius and Singapore at the end of FY08,
with around 20,000 employees. The capital adequacy of the bank as was 18.7% at
Advances Rs m 104,199 155,734 219,847 the end of FY08. The bank has subsidiaries in diverse businesses such as securities
Deposits Rs m 56,167 96,610 136,919 broking, investment banking and life insurance. The group continues to invest
Credit/Deposit ratio x 185.5 161.2 160.6 significantly in building two of its key businesses - branch banking & retail liabilities,
Yield on advances % 8.7 9.5 11.9 and life insurance. The bank has managed to grow its consolidated advances at a
Cost of deposits % 4.3 4.3 6.2 CAGR of 49% over the last 5 years.
Net Interest Margin % 4.2 5.2 5.6
Net fixed assets Rs m 1,754 2,353 3,330 Kotak Bank's consolidated total income was up 76% YoY in FY08. Consolidated
Share capital Rs m 3,093 3,262 3,447 advances were higher by 41% YoY, with retail and commercial loans comprising 79%
Free reserves Rs m 15,047 24,557 47,391 of the bank's credit portfolio. The bank's consolidated NIM for FY08 at 5.6% was
0.4% higher than last year. Consolidated profit after tax was up 84% YoY during the
Net worth Rs m 22,471 32,330 58,239
fiscal on account of strong growth shown by bank's car finance business, investment
Borrowings Rs m 57,979 99,859 127,728
banking and securities broking. The bank's standalone advances grew by 42% YoY.
Investments Rs m 50,487 91,285 125,697 Deposits grew by 49% YoY with low cost CASA deposits comprising 27% of total
Total assets Rs m 179,673 286,308 405,972 deposits. The bank had net NPA ratio of 0.38% of net advances excluding stressed
Debt/equity ratio x 5.1 6.1 4.5 assets portfolio, at the end of FY08.
Return on assets % 4.1 1.9 2.4
Return on equity % 32.5 16.6 17.0 Kotak Bank is targeting to have a total of 275 branches by March 2009. The bank
Capital adequacy ratio % 11.3 13.5 18.7 plans to continue its dominance in the securities and wealth management
Net NPAs % 0.2 2.0 1.8 businesses. Further, it plans to scale up its operations through increased brand
awareness, market penetration and service offerings across all categories of financial
services.
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64
 Regd off: F-14, Competent House, 4th Floor, Connaught Place, New Delhi - 1
ORIENTAL BANK OF COMMERCE E-Mail: mbd@obc.co.in
Web site: www.obcindia.co.in
Telephone: (011) 2332 0796 Fax: (011) 2373 9768
BANKING GOVERNMENT Tr agent: MCS, Srivenkatesh Bhavan, W-40, Okhla Indus. Area, New Delhi - 20
Chairman: Alok K. Misra (MD) SEC: C. M. Khurana (GM accounts) AUD: Hingorani M. & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1943 500315 OBC:IN 10 178.1 6.6 -17.4 5.8 12.6 2.6 44,621.2 126.4 INE141A01014
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 51.1% Exports (fob) Rs m 0 (Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 0
Indian inst/Mut Fund : 20.5% Fx inflow Rs m 0 340
FIIs/GDR : 17.9% Fx outflow Rs m 0
Free float : 10.5% Net fx Rs m 0
Shareholders : 120,295
280
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
220
High Rs 327 280 320
Low Rs 229 146 158
Income per share Rs 164.4 206.2 272.9
Earnings per share Rs 22.2 23.2 14.1 160
Cash flow per share Rs 68.0 72.1 95.2 DAILY
Dividends per share Rs 4.50 4.70 4.70 100 DMA
Avg Dividend yield % 1.6 2.2 2.0
100
Book value per share Rs 206.4 223.5 230.5
Shares outstanding (eoy) m 250.54 250.54 250.54 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions PI - -
Avg Price / Income ratio x 1.7 1.0 0.9 No. of months 12 12 12
Avg P/E ratio x 12.5 9.2 16.9 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
Avg P/CF ratio x 8.9 6.5 19.3
Avg Price/Bookvalue ratio x 1.3 1.0 1.0 From Operations Rs m -31,674 14,153 27,889
Dividend payout % 20.2 20.3 33.3 From Investments Rs m -792 -265 -772
Avg Mkt Cap Rs m 69,650 53,365 59,879 From Financial Activity Rs m 12,290 5,947 -62
No. of employees `000 15 14 14 Net Cashflow Rs m -20,176 19,835 27,055
Total wages & salary Rs m 5,005 5,209 5,494
Avg. income/employee Rs Th 2,752.9 3,506.4 4,619.2 INTERIM RESULTS
Avg. wages/employee Rs Th 334.5 353.6 371.1 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 372.4 394.3 238.7 Operating income Rs m 16,457 17,479 19,105 19,537
Gross Profit Rs m 3,995 4,023 4,371 4,467
INCOME DATA Gross profit margin % 24.3 23.0 22.9 22.9
Interest income Rs m 41,189 51,649 68,382 Net profit Rs m 1,750 1,385 -994 2,205
Other income Rs m 5,528 6,033 6,167 Net profit margin % 10.6 7.9 -5.2 11.3
Interest expense Rs m 25,139 34,736 51,562
Net interest income Rs m 16,050 16,913 16,820 KEY DATA
Operating expense Rs m 9,659 9,979 10,796 Parameters Unit FY06 FY07 FY08
Gross profit Rs m 6,391 6,934 6,024 Branches nos. 1,148 1,233 1,309
Gross profit margin % 15.5 13.4 8.8 Employees nos. 14,962 14,064 14,236
Provisions/contingencies Rs m 2,271 2,436 -428 Business / branch Rs m 730 877 1,006
Profit before tax Rs m 9,649 10,531 12,619 Profit / employee Rs m 0.4 0.4 0.3
Extraordinary Inc (Exp) Rs m -2,460 -2,460 -4,877 NIM % 3.0 2.7 2.3
Minority Interest Rs m 0 0 0
NOTES
Prior Period Items Rs m 0 0 0
Tax Rs m 1,617 2,263 4,209 OBC, once pegged amongst the most efficient public sector banks in the country,
Profit after tax Rs m 5,572 5,808 3,533 discarded all negative expectations by successfully utilising the merger with a defunct
bank (GTB) to its advantage. The bank, despite taking a one-time hit on margins and
Net profit margin % 13.5 11.2 5.2
asset quality, appreciably accelerated the turnaround process. So much so that the
BALANCE SHEET DATA 'acquisition' actually proved to be benign for OBC.

Advances Rs m 335,772 441,385 545,658 While its repute of being risk averse is appreciated, OBC merely managed to toe the
Deposits Rs m 501,975 639,960 778,567 line with the sector growth this fiscal due to its conservative stance on retail assets.
Credit/Deposit ratio x 66.9 69.0 70.1 As a result, while the overall credit disbursals clocked a growth of 22% YoY, the
Yield on advances % 7.0 7.5 8.9 growth in retail credit was restricted to single digits and the share of the latter to total
Cost of deposits % 4.8 5.2 6.3 credit was brought down from 17% in FY07 to 15% in FY08. Further, the bank was
Net Interest Margin % 3.0 2.7 2.3 compelled to raise high cost bulk deposits to fund the advances, which took a toll on
Net fixed assets Rs m 3,842 3,827 3,875 its net interest margins (NIMs). The bank's NIMs declined to 2.3% in FY08 from 2.7%
Share capital Rs m 2,505 2,505 2,505 in FY07 due to the negative impact of the Rs 70 bn high cost bulk deposits raised in
Free reserves Rs m 36,091 38,926 39,792 early FY08. The bank had 44% of its investment portfolio in the HTM (held to
maturity) basket in FY08. OBC's net NPAs stood at 1% in FY08 against 0.5% in
Net worth Rs m 51,708 56,003 57,759
FY07.
Borrowings Rs m 6,226 6,226 18,398
Investments Rs m 168,176 198,084 239,507 The bank is targeting low cost deposits to comprise 35% of deposits in FY09.
Total assets Rs m 589,374 739,363 239,507 Nonetheless, inability in re-pricing the loans according to the higher costs may
Debt/equity ratio x 9.8 11.5 13.8 continue to impact the bank's margins. Although fee income (grew by 33% YoY)
Return on assets % 0.9 0.8 1.5 comprised merely 13% of the bank's total income in FY08, the bank hopes to
Return on equity % 10.8 10.4 6.1 leverage its collaboration with Corporation Bank and Indian Bank to propel its
Capital adequacy ratio % 11.0 12.5 12.1 revenues through vending third party products. More importantly, OBC had to provide
Net NPAs % 0.5 0.5 1.0 Rs 2.5 bn each in FY08 and FY09 to fully write off the GTB losses in its books.
However, the bank has chosen to take the entire write off at one go in FY08 itself so
as to clean up its balance sheet and avoid providing on this front going forward.
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65
 Regd off: 7, Bhikaji Cama Place, New Delhi - 110 066
PUNJAB NATIONAL BANK $ E-Mail: hosd@pnb.co.in
Web site: www.pnbindia.com
Telephone: (011) 2332 3654/57 Fax: (011) 2371 1663
BANKING Central Government Tr agent: MCS Ltd., Venkatesh Bhawan, W-40 , Okhla Ind. Area, New Delhi-20
Chairman: K. C. Chakrabarty SEC: Ramesh Kumar Kochar AUD: Ramanlal G. Shah & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1895 532461 PNB:IN 10 504.5 -1.1 3.5 4.6 7.2 2.6 159,068.9 197.4 INE160A01014
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 57.8% Exports (fob) Rs m 0 (Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 0
Indian inst/Mut Fund : 16.7% Fx inflow Rs m 0 770
FIIs/GDR : 19.8% Fx outflow Rs m 0
Free float : 5.6% Net fx Rs m 0
Shareholders : 233,654
640
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
510
High Rs 494 577 708
Low Rs 346 304 425
Income per share Rs 310.7 365.0 465.0
Earnings per share Rs 48.6 51.7 69.9 380
Cash flow per share Rs 136.0 131.7 200.6 DAILY
Dividends per share Rs 6.00 10.00 13.00 100 DMA
Avg Dividend yield % 1.4 2.3 2.3
250
Book value per share Rs 314.1 350.5 414.6
Shares outstanding (eoy) m 315.30 315.30 315.30 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Avg Price / Income ratio x 1.4 1.2 1.2 No. of months 12 12 12
Avg P/E ratio x 8.6 8.5 8.1 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
Avg P/CF ratio x 5.5 4.5 6.1
Avg Price/Bookvalue ratio x 1.3 1.3 1.4 From Operations Rs m 150,328 -101,193 20,395
Dividend payout % 12.3 19.3 18.6 From Investments Rs m -4,662 -1,599 -4,541
Avg Mkt Cap Rs m 132,426 138,779 178,617 From Financial Activity Rs m -7,959 11,751 17,642
No. of employees `000 58 58 56 Net Cashflow Rs m 137,707 -91,041 33,496
Total wages & salary Rs m 21,215 23,591 24,740
Avg. income/employee Rs Th 1,687.6 2,007.9 2,616.8 INTERIM RESULTS
Avg. wages/employee Rs Th 365.5 411.6 441.6 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 264.0 284.4 393.2 Operating income Rs m 34,631 36,361 38,798 41,385
Gross Profit Rs m 12,915 14,244 15,173 14,448
INCOME DATA Gross profit margin % 37.3 39.2 39.1 34.9
Interest income Rs m 97,961 115,085 146,606 Net profit Rs m 5,385 5,415 5,437 5,124
Other income Rs m 12,492 16,789 19,931 Net profit margin % 15.5 14.9 14.0 12.4
Interest expense Rs m 50,459 62,022 89,590
Net interest income Rs m 47,502 53,063 57,016 KEY DATA
Operating expense Rs m 30,392 33,411 35,567 Parameters Unit FY06 FY07 FY08
Gross profit Rs m 17,110 19,652 21,449 Branches nos. 4,510 4,539 4,589
Gross profit margin % 17.5 17.1 14.6 Employees nos. 58,047 58,047 56,025
Provisions/contingencies Rs m 8,858 14,526 7,210 Business / branch Rs m 431 521 623
Profit before tax Rs m 21,415 22,688 34,790 Profit / employee Rs m 0.2 0.3 0.4
Extraordinary Inc (Exp) Rs m 0 0 0 NIM % 4.0 4.1 3.6
Minority Interest Rs m -77 -41 108
NOTES
Prior Period Items Rs m 0 0 0
Tax Rs m 6,016 6,346 12,867 Punjab National Bank (PNB) is the third largest banking entity in the country (in terms
Profit after tax Rs m 15,322 16,301 22,031 of asset size) with 4.3% share of the total credit disbursals at the end of FY08. An
operating overhaul in terms of asset quality and retention of high margins has helped
Net profit margin % 15.6 14.2 15.0
the bank position itself favourably amongst its peers and marginally enhance its share
BALANCE SHEET DATA in FY07. Thereon, adequate capital, high NPA coverage and interest rate insulation
has pegged the bank amongst the frontrunners in the public sector banking space.
Advances Rs m 754,093 978,735 1,215,711
Deposits Rs m 1,197,520 1,399,441 1,669,170 PNB's sustenance of the highest CASA (43% of deposits) and NIM (3.6% in FY08)
Credit/Deposit ratio x 63.0 69.9 72.8 differentiates it from most of its peers in the public and private sector banking space.
Yield on advances % 7.2 7.9 8.8 The bank grew its advances by 24% YoY in FY08. In terms of asset quality, while the
Cost of deposits % 3.9 4.0 5.0 net NPAs of PNB (0.6% in FY08) do fall in line with that of its peers, the gross NPA
Net Interest Margin % 4.0 4.1 3.6 levels have been appreciably pared from 12.4% in FY03 to 2.8% in FY08. Further,
Net fixed assets Rs m 10,391 10,181 23,286 the NPA coverage ratio of 78%, which the bank has maintained for the past couple of
Share capital Rs m 3,153 3,153 3,153 fiscals negates most of the delinquency concerns. PNB's predominant presence in
Free reserves Rs m 68,954 76,067 77,707 the fertile Indo-Gangetic belt which enables it to garner 16% to 17% of business in
that region, makes it a significant player in the banking sector's exposure to
Net worth Rs m 99,033 110,514 130,718
agricultural loans. As a result it had to provide for farm loan waiver to the tune of Rs
Borrowings Rs m 47,080 47,111 86,462
11 bn. The bank's net interest margin dropped to 3.6% in FY08; cost to income ratio
Investments Rs m 428,511 470,759 558,833 remains stagnant at 48.3%.
Total assets Rs m 1,483,255 1,661,237 2,037,159
Debt/equity ratio x 12.6 13.1 13.4 In the next 5 years, around 1,500 employees of PNB will be retiring per year, thus
Return on assets % 1.0 1.0 1.1 considerably lightening its wage burden. Having said that, excessive reliance on
Return on equity % 15.5 14.8 16.9 treasury income and inability to grow its fee income base are our lingering concerns
Capital adequacy ratio % 12.0 12.3 13.5 with regard to the bank.
Net NPAs % 0.3 0.8 0.6

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66
 Regd off: State Bank Bhavan, M.C. Road, Nariman Point, Mumbai - 400 021
STATE BANK OF INDIA LIMITED + $ E-Mail: gm.snb@sbi.co.in
Web site: www.sbi.co.in
Telephone: (022) 2283 0535 Fax: (022) 2285 5348
BANKING GOVERNMENT Tr agent: Datamatics Services, Plot 16-17, MIDC, Part B, Cross Lane, Mumbai - 93
Chairman: O. P. Bhatt SEC: B. D. Sumitra AUD: Chaturvedi & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1955 500112 SBIN:IN 10 1,518.6 -3.8 1.3 7.0 10.8 1.4 964,097.0 1,037.8 INE062A01012
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 59.7% Exports (fob) Rs m 0 (Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 0
Indian inst/Mut Fund : 11.6% Fx inflow Rs m 0 2530
FIIs/GDR : 19.5% Fx outflow Rs m 0
Free float : 9.1% Net fx Rs m 0
Shareholders : 635,595
2035
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
1540
High Rs 987 1,360 2,540
Low Rs 604 690 915
Income per share Rs 948.0 1,032.9 1,132.2
Earnings per share Rs 105.1 120.9 141.9 1045
Cash flow per share Rs 377.9 512.6 528.0 DAILY
Dividends per share Rs 14.00 14.00 21.50 100 DMA
Avg Dividend yield % 1.8 1.4 1.2
550
Book value per share Rs 706.9 808.2 969.7
Shares outstanding (eoy) m 526.30 526.30 631.47 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - R1:5
Avg Price / Income ratio x 0.8 1.0 1.5 No. of months 12 12 12
Avg P/E ratio x 7.6 8.5 12.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
Avg P/CF ratio x 3.5 5.4 8.2
Avg Price/Bookvalue ratio x 1.1 1.3 1.8 From Operations Rs m 55,432 51,341 -42,094
Dividend payout % 13.3 11.6 15.2 From Investments Rs m -18,257 -9,654 -16,424
Avg Mkt Cap Rs m 418,672 539,458 1,090,896 From Financial Activity Rs m 26,372 110,629 226,337
No. of employees `000 199 194 179 Net Cashflow Rs m 63,548 151,791 167,819
Total wages & salary Rs m 107,676 106,016 104,625
Avg. income/employee Rs Th 2,510.0 2,932.4 3,989.6 INTERIM RESULTS
Avg. wages/employee Rs Th 541.7 571.9 583.8 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 278.2 343.3 500.0 Operating income Rs m 116,163 126,668 135,767 137,992
Gross Profit Rs m 37,629 42,563 48,006 48,177
INCOME DATA Gross profit margin % 32.4 33.6 35.4 34.9
Interest income Rs m 498,921 543,634 714,958 Net profit Rs m 16,114 18,086 18,833 16,408
Other income Rs m 111,391 127,607 187,230 Net profit margin % 13.9 14.3 13.9 11.9
Interest expense Rs m 339,827 327,301 479,440
Net interest income Rs m 159,094 216,333 235,518 KEY DATA
Operating expense Rs m 176,013 200,018 239,432 Parameters Unit FY06 FY07 FY08
Gross profit Rs m -16,919 16,315 -3,914 Branches nos. 9,247 9,373 10,186
Gross profit margin % -3.4 3.0 -0.5 Employees nos. 198,774 193,774 179,205
Provisions/contingencies Rs m 64,708 35,801 43,410 Business / branch Rs m 694 825 937
Profit before tax Rs m 88,911 108,122 139,905 Profit / employee Rs m 0.2 0.3 0.5
Extraordinary Inc (Exp) Rs m 0 0 0 NIM % 3.4 3.3 3.1
Minority Interest Rs m -1,316 -2,554 -2,522
NOTES
Prior Period Items Rs m 0 0 0
Tax Rs m 32,296 41,924 47,777 A proxy to the Indian banking sector, SBI is India's largest financial entity with an
Profit after tax Rs m 55,299 63,644 89,606 asset size of over Rs 5 trillion (Rs 5,000 bn). Although the bank's loan book is largely
skewed towards corporate (68% of total advances in FY08), the retail side is also fast
Net profit margin % 11.1 11.7 12.5
catching up. SBI has a network of over 9,373 branches and 5,800 ATMs across the
BALANCE SHEET DATA country. The promoter stake (59%) in the bank was sold by the RBI to the government
in FY08. Its associate, State Bank of Saurashtra was merged with SBI in FY08.
Advances Rs m 3,744,762 4,872,860 6,032,219
Deposits Rs m 5,440,243 6,362,729 7,764,165 SBI continued to make an appreciable effort to stall the loss of market share in
Credit/Deposit ratio x 68.8 76.6 77.7 advances (15.3% in FY08) and deposits (15.4%), which had been falling sequentially
Yield on advances % 6.9 7.6 8.6 until FY07. The growth in deposits was driven by low cost deposits where SBI's
Cost of deposits % 4.7 4.5 5.4 market share increased from 13.9% in FY07 to 17.4% in FY08. In the retail segment,
Net Interest Margin % 3.4 3.3 3.1 home loans (comprising over 51% of the bank's retail advance book) grew by 18.7%
Net fixed assets Rs m 39,563 39,994 46,628 YoY, auto loans by 29.9% and education loans by 33.6% YoY in FY08. In FY08, the
Share capital Rs m 5,263 5,263 6,315 net interest margins (NIMs) of the bank remained flat at 3.1%. The operating costs
Free reserves Rs m 148,429 161,877 292,375 for the bank increased by only 6.6% YoY in FY08, despite redesign addition of nearly
1,000 branches. The government approved to subscribe to the rights issue of SBI that
Net worth Rs m 372,067 425,356 612,364
helped the bank raise approximately Rs 170 bn. SBI did, however, witness both gross
Borrowings Rs m 369,749 486,618 660,232
and net NPAs increasing to 3.0% and 1.8% of advances respectively in FY08, from
Investments Rs m 2,279,310 2,165,210 2,738,417 2.9% and 1.6% respectively in FY07. The credit card subsidiary of the bank, SBI
Total assets Rs m 6,969,918 8,151,744 10,272,695 Cards, is in losses with high NPA levels (16.3% in FY08, among the highest in the
Debt/equity ratio x 15.6 16.1 13.8 industry).
Return on assets % 0.8 0.8 0.9
Return on equity % 14.9 15.0 14.6 SBI is planning to foray into general insurance and has shortlisted two to three foreign
Capital adequacy ratio % 11.9 12.3 13.5 players in the segment. The bank is also planning to get into pension funds
Net NPAs % 1.9 1.6 1.8 management through either SBI Life or SBI Mutual Fund. Entry into the financial
planning and wealth management segments is also on the cards.

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67
 Regd off: Union Bank Bhavan, 239, Vidhan Bhavan Marg, Mumbai-21
UNION BANK OF INDIA E-Mail: investorservices@unionbankofindia.com
Web site: www.unionbankofindia.com
Telephone: (022) 2289 6643 Fax: (022) 2202 5238
BANKING GOVERNMENT Tr agent: MCS, Sector I, Plot-6, Khanda Colony, New Panvel(W), Maharsh. -206
Chairman: M. V. Nair (MD) SEC: Ankur Kumar AUD: Batliboi & Purohit
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1919 532477 UNBK:IN 10 151.4 1.5 5.4 4.1 5.5 2.6 76,449.5 358.3 INE692A01016
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 55.4% Exports (fob) Rs m 0 (Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 0
Indian inst/Mut Fund : 11.9% Fx inflow Rs m 0 250
FIIs/GDR : 19.5% Fx outflow Rs m 0
Free float : 13.2% Net fx Rs m 0 DAILY
Shareholders : 231,328 100 DMA
205
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
160
High Rs 149 142 235
Low Rs 93 81 95
Income per share Rs 116.1 146.1 187.0
Earnings per share Rs 13.4 16.7 27.5 115
Cash flow per share Rs 34.2 44.3 54.7
Dividends per share Rs 3.50 3.50 4.00
Avg Dividend yield % 2.9 3.1 2.4
70
Book value per share Rs 90.2 102.7 145.5
Shares outstanding (eoy) m 505.12 505.12 505.12 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions PI - -
Avg Price / Income ratio x 1.0 0.8 0.9 No. of months 12 12 12
Avg P/E ratio x 9.1 6.7 6.0 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
Avg P/CF ratio x 4.9 3.8 4.0
Avg Price/Bookvalue ratio x 1.3 1.1 1.1 From Operations Rs m -11,250 19,563 19,306
Dividend payout % 26.2 20.9 14.6 From Investments Rs m -539 -1,013 2,093
Avg Mkt Cap Rs m 61,120 56,321 83,294 From Financial Activity Rs m 9,974 1,810 -499
No. of employees `000 26 28 26 Net Cashflow Rs m -1,815 20,359 20,900
Total wages & salary Rs m 8,668 8,737 8,461
Avg. income/employee Rs Th 2,306.6 2,842.7 3,477.4 INTERIM RESULTS
Avg. wages/employee Rs Th 341.0 336.4 311.4 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 265.6 325.5 510.5 Operating income Rs m 22,548 24,586 26,024 25,332
Gross Profit Rs m 6,728 7,881 8,339 8,100
INCOME DATA Gross profit margin % 29.8 32.1 32.0 32.0
Interest income Rs m 58,637 73,822 94,473 Net profit Rs m 2,757 3,651 5,211 2,283
Other income Rs m 4,945 6,865 10,870 Net profit margin % 12.2 14.8 20.0 9.0
Interest expense Rs m 34,894 45,920 63,609
Net interest income Rs m 23,743 27,902 30,864 KEY DATA
Operating expense Rs m 14,024 14,759 15,930 Parameters Unit FY06 FY07 FY08
Gross profit Rs m 9,719 13,143 14,934 Branches nos. 2,082 2,206 2,361
Gross profit margin % 16.6 17.8 15.8 Employees nos. 26,036 27,536 25,722
Provisions/contingencies Rs m 5,717 6,204 7,062 Business / branch Rs m 256 283 315
Profit before tax Rs m 8,946 13,804 18,742 Profit / employee Rs m 0.3 0.3 0.5
Extraordinary Inc (Exp) Rs m 0 0 0 NIM % 3.0 3.1 2.9
Minority Interest Rs m 0 0 0
NOTES
Prior Period Items Rs m 0 0 0
Tax Rs m 2,195 5,350 4,872 Union Bank (UBI) is the seventh largest bank in India and sixth largest PSU bank,
Profit after tax Rs m 6,751 8,454 13,870 with a well-diversified network of 2,361 branches and 1,146 ATMs, concentrated in
the western parts of the country. The government's stake in the bank stood at 55% in
Net profit margin % 11.5 11.5 14.7
March 2008. The bank been historically able to maintain a high proportion of low cost
BALANCE SHEET DATA deposits in its books.

Advances Rs m 533,800 623,864 743,483 On the back of 17.5% YoY growth in retail credit (20% of total advances), 38.6%
Deposits Rs m 740,943 851,802 1,038,586 growth in SME segment and 20% YoY growth in its corporate loan portfolio, UBI
Credit/Deposit ratio x 72.0 73.2 71.6 registered a 20.5% YoY growth in advances in FY08, marginally under-performing the
Yield on advances % 7.0 8.1 9.1 sector average. However, the lack of pricing power in advances has taken a toll on
Cost of deposits % 4.3 4.7 5.5 the bank's NIMs that have fallen by 20 basis points (0.2%) in the last fiscal. The bank
Net Interest Margin % 3.0 3.1 2.9 has also set a target of enhancing its CASA proportion by 2% annually and is
Net fixed assets Rs m 8,104 8,250 22,004 targeting NIM of 2.8% for FY09 as well. The bank's cost to income ratio dropped from
Share capital Rs m 5,051 5,051 5,051 42% in FY07 to 38% in FY08 because of the natural attrition of some of its
Free reserves Rs m 5,329 5,328 21,170 employees. UBI, however, has a lot of catching up to do with its peers in fee income,
which has barely grown by 9.9% YoY in FY09. The bank's net NPAs declined from
Net worth Rs m 45,582 51,899 73,477
0.6% of total advances in FY07 to 0.2% in FY08.
Borrowings Rs m 35,740 42,155 47,605
Investments Rs m 259,176 279,818 338,226 UBI is targeting a growth of 22% YoY in its business (deposits and advances) in
Total assets Rs m 891,260 1,026,779 1,240,733 FY09. CASA as a percentage of total deposits is targeted to reach 36% by FY09 and
Debt/equity ratio x 17.0 17.2 14.8 40% by FY10. UBI's capital adequacy ratio of 12.5% in March 2008 was comfortable
Return on assets % 0.8 0.8 1.1 in terms of offering sufficient room for perpetual debt and Tier II bonds to grow its
Return on equity % 14.8 16.3 18.9 business and for Basel II compliance. However, it may have to opt for dilution (rights
Capital adequacy ratio % 11.4 12.8 12.5 issue) in the medium term. If the bank wishes to accelerate its advance growth or opts
Net NPAs % 1.6 1.0 0.2 for inorganic growth, capital dilution will be necessary and the same will temporarily
dilute shareholder returns.

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68
 Regd off: 9th Flr, Nehru Center, Discovery of India, Dr. A B Rd., Worli, Mumbai-18
YES BANK E-Mail: sanjeev.kapoor@yesbank.in
Web site: www.yesbank.in
Telephone: (022) 6669 9000 Fax: (022) 2490 0314
BANKING MISCELLANEOUS Tr agent: Karvy Computer, Plot 17-24 Vittalrao Nagar, Madhapur, Hyderabad-81
Chairman: Ashok Kapur SEC: Sanjeev Kapoor AUD: S. R. Batliboi & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1998 532648 YES:IN 10 142.5 2.7 -22.4 13.8 21.1 0.0 42,269.2 309.0 INE528G01019
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 33.6% Exports (fob) Rs m 0 (Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 0
Indian inst/Mut Fund : 1.9% Fx inflow Rs m 0 310
FIIs/GDR : 51.8% Fx outflow Rs m 0
Free float : 12.7% Net fx Rs m 0
Shareholders : 99,838
240
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
170
High Rs 105 162 265
Low Rs 56 70 126
Income per share Rs 7.1 21.0 44.3
Earnings per share Rs 2.0 3.4 6.8 100
Cash flow per share Rs 5.8 11.0 20.4
DAILY
Dividends per share Rs 0.00 0.00 0.00 100 DMA
Avg Dividend yield % 0.0 0.0 0.0
30
Book value per share Rs 21.2 28.1 44.6
Shares outstanding (eoy) m 270.00 280.00 295.79 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions PI PP PP
Avg Price / Income ratio x 11.3 5.5 4.4 No. of months 12 12 12
Avg P/E ratio x 39.3 34.4 28.9 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
Avg P/CF ratio x 31.1 26.4 23.7
Avg Price/Bookvalue ratio x 3.8 4.1 4.4 From Operations Rs m -1,660 -18,014 -1,965
Dividend payout % 0.0 0.0 0.0 From Investments Rs m -701 -12,227 -495
Avg Mkt Cap Rs m 21,735 32,480 57,827 From Financial Activity Rs m 3,986 4,986 5,807
No. of employees `000 1 2 3 Net Cashflow Rs m 1,626 10,773 3,347
Total wages & salary Rs m 501 1,175 2,024
Avg. income/employee Rs Th 3,075.0 2,405.2 4,161.3 INTERIM RESULTS
Avg. wages/employee Rs Th 799.0 481.0 642.5 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 882.0 386.4 634.9 Operating income Rs m 3,035 3,464 3,885 4,147
Gross Profit Rs m 828 931 1,085 1,130
INCOME DATA Gross profit margin % 27.3 26.9 27.9 27.2
Interest income Rs m 1,928 5,876 13,108 Net profit Rs m 452 542 645 544
Other income Rs m 971 1,946 3,545 Net profit margin % 14.9 15.6 16.6 13.1
Interest expense Rs m 1,047 4,163 9,741
Net interest income Rs m 881 1,713 3,367 KEY DATA
Operating expense Rs m 861 1,935 3,412 Parameters Unit FY06 FY07 FY08
Gross profit Rs m 20 -222 -45 Branches nos. 20 40 67
Gross profit margin % 1.0 -3.8 -0.3 Employees nos. 627 2,443 3,150
Provisions/contingencies Rs m 147 287 436 Business / branch Rs m 1,204 1,572 1,407
Profit before tax Rs m 844 1,437 3,065 Profit / employee Rs m 0.9 0.4 0.6
Extraordinary Inc (Exp) Rs m 0 0 0 NIM % 3.0 2.8 2.7
Minority Interest Rs m 0 0 0
NOTES
Prior Period Items Rs m 0 0 0
Tax Rs m 291 493 1,065 Yes Bank, which received its banking license (the only greenfield license given by the
Profit after tax Rs m 553 944 2,000 RBI in the last 10 years) in May 2004, commenced its lending operations in October
2004. In FY08, the bank operated through 60 branches and was largely concentrated
Net profit margin % 28.7 16.1 15.3
on the corporate segment for its advances portfolio. Yes Bank has adopted a
BALANCE SHEET DATA knowledge-based product delivery, wherein it has put together a team of experienced
professionals with sector and banking product knowledge.
Advances Rs m 24,071 62,897 94,303
Deposits Rs m 29,104 82,204 132,732 Clocking a growth of 50% YoY in advances and 62% YoY in deposits in FY08, Yes
Credit/Deposit ratio x 82.7 76.5 71.0 Bank showed some signs of slowdown in terms of growth in balance sheet size in the
Yield on advances % 5.7 6.7 9.9 last fiscal. However, the management clarified that the same was due to the tight
Cost of deposits % 2.9 4.0 6.4 liquidity situation in the economy. Yes Bank is clearly focusing on the higher yielding
Net Interest Margin % 3.0 2.8 2.7 SME (business banking) segment for its advance growth. Also, the NIMs remained
Net fixed assets Rs m 347 709 1,012 stable at 2.7% in FY08 thanks to a fresh dose of equity funding through a private
Share capital Rs m 2,700 2,800 2,958 placement in FY08. Further, despite trebling of its employee base and doubling its
Free reserves Rs m 2,889 4,664 9,223 branch franchise, Yes Bank has managed to retain its cost to income ratio at 49% in
FY08.
Net worth Rs m 5,727 7,871 13,189
Borrowings Rs m 4,648 8,673 9,862 The bank sees the mix of 55:45 between corporate and SME assets in the corporate
Investments Rs m 13,502 30,731 50,937 credit book to go up to 60:40 in FY09, with retail assets also acquiring a minor
Total assets Rs m 41,626 111,034 169,824 allocation. Yes Bank expects its margins to hover between 2.5% to 3.0% in FY09 and
Debt/equity ratio x 5.9 11.5 10.8 is targeting CASA base (8% of deposits in FY08) to comprise 12.5% of its deposits
Return on assets % 1.3 0.9 1.2 by FY09 and 15% by FY10. The bank, however, sees the 53:47 mix of net interest
Return on equity % 9.7 12.0 15.2 income and non-funded income increasingly difficult to maintain and envisages this
Capital adequacy ratio % 16.4 13.6 13.6 to be 55:45 on a more normalised basis by FY10. The focus on niche high-end
Net NPAs % 0.0 0.0 0.1 customer segment may also enable the bank to retain its high asset quality (0.1% net
NPAs in FY08).

GET MORE INFO AT WWW.EQUITYMASTER.COM

69
 BEVERAGES, FOOD AND TOBACCO
India is the world's second largest producer of fruits,
vegetables and milk. A large coastline and a huge cattle
population ensure abundant supply of meat, poultry and fish.
Only about 10% of output is processed and consumed in
packaged form, thus highlighting huge potential for expansion
of the food processing industry. Potential size of the semi-
processed and ready to eat packaged food is over US$ 90 bn.
Of the total amount of tobacco produced in the country, around
48% is in the form of chewing tobacco, 38% as bidis, and only
14% as cigarettes. Thus, bidis, snuff and chewing tobacco
(such as gutka, khaini and zarda) form the bulk (86%) of India's
total tobacco production. In the rest of the world, production
of cigarettes is 90% of total production of tobacco related
products.
High government taxes on cigarettes is a key cause of concern
for the industry, which amount in excess of 130% of the net
value of the product. Notably, the cigarette industry contributes
nearly 85% of the total excise collections from the tobacco
segment. The industry faces a problem in the form of the
unequal distribution of excise burden.
FY08
Higher excise duty was levied on non-filter cigarettes to bring
it on par with both filter cigarettes. While higher excise duty
would reduce its sales volumes in non-filter segment, no
increase in excise on filtered cigarettes was positive. Hence
the severe taxation and regulatory milieu for cigarettes in India
remained a cause of concern.
Indian food processing industry logged an impressive growth
rate of 18%. Overall economic growth was favourable for the
F&B market, with more products becoming affordable due to
rising incomes, changing lifestyles and a rapidly growing
population.
Though the problems of infrastructure, logistics, wastage, high
input prices exists, with 200 m people expected to shift to
processed and packaged food by 2010, this presents an huge
opportunity.
CURRENT SCENARIO AND PROSPECTS
With changing eating habits and increased affordability of the
growing Indian population, the market for branded foods is
growing at a healthy 10%-15% per annum. It is therefore likely
that companies will opt for consolidation to generate growth.
Cash rich companies may buy-out well-known brands to gain
market leadership. This trend will reduce fragmentation
besides improving the pricing environment.
A large chunk of the Indian consumer is low on the value
chain. Awareness is high for all basic food items, which form
part of the staple diet whereas it is low in the case of snacks
and culinary products. The segments, which are dominated
by the unorganised sector, have the potential to grow faster
in the years to come. Products like 'atta' are already seeing
hectic competition between players like HLL, Pillsbury and ITC.
The food processing industry in India is estimated at Rs 4,600
bn, with a mere 5% held by the organised sector. This segment
is expected to touch Rs 13,500 bn by 2015 at a CAGR of 10%.
The sector is witnessing large-scale ad spends and focus on
improving the distribution muscle to woo the Indian palette.
India is seeing new/existing entrants like Heinz, Mars, Marico,
Conagra, Pepsi, ITC, Dabur, Britannia and Amul looking to expand
their product folio.
The growth in the tobacco industry is greatly dependent on
the policies of the government (both excise related and ban of
70
public smoking). Higher duties result in higher prices of the
product. Contraband cigarettes have become competitively
priced as compared to domestic brands given the frequent
excise (price) hikes. It has started affecting volume growth of
domestic companies as the consumers are showing resistance
to price hikes.
Domestic food consumption estimated at Rs 8.6 trillion.
Currently forms the largest component of the total consumption
expenditure in Indian household accounting for 51%. This is
highest compared to 9.7% for an average American and 15%
for both Japanese and British. Though with rising income, the
share would go down, but would increase in absolute terms.
With consolidation of the agri marketing chain and investments
in the sector aided by the government, it is likely that rural
India will see economic growth at a faster rate going forward
and a larger mass of Indians will participate in India's
development. This is a good sign for the industry as a whole.
Food processing is hailed as the 'sunshine industry' in India.
Growing economy, surplus food and a shift in the consumption
pattern will continue to be the key factors behind the growth
of the sector. At present, the industry is seeking investments
to create necessary infrastructure, state-of-the-art-
technology and expand production facilities to match the
international quality and standards.
KEY POINTS
Supply: Food & Beverages - Abundant supply of vital foods.
The industry faces over supply in certain segments like
coffee and tea. However, more than half of this is available
in unpacked or loose form, thus benefiting only the
unorganised sector.
Tobacco - The segment enjoys high penetration even in
rural areas. Supply is higher because of unorganised sector
(bidis).
Demand: Food & Beverages - Processed food demand is
growing at 10%-15% per annum. Growth of dual income
households has given rise to demand for instant foods,
especially in urban areas.
Tobacco: Demand is largely inelastic. Demand growth is
pegged at 4%-6% for cigarettes.
Barriers to entry : Food & beverages - Huge investments
in promoting brands and setting up distribution networks.
Tobacco: Punitive taxation policies of government. Huge
investments in brand building and setting up distribution
network.
Bargaining power of suppliers: Food & beverages - Many
established players have a slight edge in bargaining power.
Tobacco: Most companies have integrated backwards and
have their own supply chains. Therefore, the bargaining
power of suppliers is not high.
Bargaining power of customers: Food & beverages - High
as a result of intense competition both among branded and
unbranded products.
Tobacco: As the consumption is more or less a habit, the
bargaining power of consumers is only to the extent of
choice of brand.
Competition: Food & beverages - The competition takes
place mainly on basis of product quality. However, in a bid to
increase penetration of new products, companies often
compete on pricing and by offering discounts and freebies.
Tobacco: Competition is mainly between branded cigarettes,
bidis and contraband.
 BEVERAGES, FOOD AND TOBACCO
GLOBAL COMPARISON
FY08/CY07 Unit Pepsi Nestle Altria ITC GSK Consumers
Revenues US$ m 39,474 89,627 38,051 3,478 319
EBIDTA margin % of sales 21.1 15.0 37.3 31.6 17.6
Profit after tax US$ m 5,658 9,485 9,786 778 41
Net profit margins % of sales 14.3 9.9 13.3 22.4 12.7
Return on equity % 32.7 20.9 52.7 25.9 25.2
Return on assets % 16.3 9.5 17.1 18.1 17.8
Debt/equity No 0.2 0.2 0.4 0.0 0.0
Inventory days Days 21 31 101 106 48
SG&A expenses % of sales 36.0 45.0 20.1 20.0 34.0
Book value per share US$ 10.4 13.5 2.7 0.8 3.8

NESTLE (SWITZERLAND)

Nestle, headquartered in Switzerland, was founded in 1867 and is the world's largest food and beverages company
with a presence in almost every country. For 2007 the turnover of the company was CHF 108 bn, with a net profit
margin of 11%. Its product folio (10,000 products) includes renowned brands like Nescafe (coffee), Maggi (ready to
eat) Pure Life (water), Milo (malted beverage), MilkMaid (condensed milk), Kit-Kat (chocolates), ice creams, soups,
pet care products, pharmaceutical products, etc. The company also owns Gerber Products and Jenny Craig. In
addition to its own products, Nestl owns about 75% of Alcon Inc. (ophthalmic drugs, contact-lens solutions, and
equipment for ocular surgery) and around 28% of cosmetics giant L'Oral. It has acquired/merged companies like
San Pellegrino (1997), Spillers Petfoods (1998), Ralston Purina (2002), Dreyer's (2002) and Chef America, Inc.
Furthermore, it acquiried Novartis Medical Nutrition and Gerber to create critical mass in nutrition. Nestl's strategic
transformation into nutrition, health and wellness company is expected to drive growth going forward.

ALTRIA (US)

Altria Group, founded in 1919 and is based in New York City, is the parent company of Philip Morris International,
Philip Morris USA and Philip Morris Capital Corporation. In addition, Altria Group has a 28.5% economic and voting
interest in SABMiller. Its brands include Marlboro, L&M, Parliament and Virginia Slims. Altria controls about half of
the US tobacco market. It is the parent company of Philip Morris USA, John Middleton and Philip Morris Capital
Corporation. Altria spun off its Kraft Foods (Jell-O, Maxwell House) business to shareholders in March 2007. It also
spun off its international tobacco arm, Philip Morris International, in March 2008. Altria bought US cigar maker John
Middleton in 2007. Altria also engages in the manufacture and sale of packaged foods and beverages. Its food
products comprise snacks, beverages, dairy, grocery, and convenient meals. The company sells food products to
supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores,
gasoline stations, and other retail food outlets. In addition, Altria provides finance leasing services..

PEPSI (US)

Pepsi is one of the world's largest food and beverage companies with revenues of US$ 39 bn in 2007. It operates
in four divisions- Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International, and Quaker
Foods North America. Pepsi was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was
acquired in 1998. In 2001, PepsiCo merged with the Quaker Oats Company, creating the world's fifth-largest food
and beverage company. Its brand include Lays potato chips, Ruffles potato chips, Go Snacks, Quaker Quakes,
Pepsi, Mountain Dew etc. With increasing health awareness amongst consumers, the company has shifted it focus
to healthier foods. Further, the emerging markets are growing at three to four times the rate of developed markets
such as the US, Western Europe and Japan. Pepsi has sought to expand its presence is fast growing emerging
markets through several recent acquisitions. In Feburary, 2007, Pepsi offered to purchase Lucky snacks of Brazil in
an effort to expand its foot print in South America and the fast growing Brazilian market. In June, 2007, Pepsi also
announced that it would acquire Ukrainian juice maker Sandora which holds 50% of the Ukrainian juice market. A
true global giant, Pepsi's products are available in some 200 countries.

Source: Yahoo Finance, Company reports TTM - Trailing twelve months

71
 Regd off: 5/1A, Hungerford Street, Kolkata - 700 017
BRITANNIA INDUSTRIES LIMITED E-Mail: bguha@britindia.com
Web site: www.britannia.co.in
Telephone: (033) 2287 2439 Fax: (033) 2287 2501
BEVERAGES, FOOD & TOBACCO NUSLI WADIA Tr agent: Shareproservices, Satam Estate, 3rd Flr, Chakala, Mumbai - 99
Chairman: Nusli Neville Wadia SEC: V. Madan AUD: Lovelock & Lewes
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1918 500825 BRIT:IN 10 1,423.3 3.1 -11.1 19.2 15.7 1.3 34,001.4 0.3 INE216A01014
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 112
Foreign collaborators : 51.0% Imports (cif) Rs m 43 (Rs)
Indian inst/Mut Fund : 22.4% Fx inflow Rs m 116 1900
FIIs/GDR : 7.5% Fx outflow Rs m 240
Free float : 19.2% Net fx Rs m -124
Shareholders : 25,055
1650
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
1400
High Rs 1,800 1,955 1,759
Low Rs 800 1,025 1,215
Sales per share Rs 717.2 948.6 1,162.4
Earnings per share Rs 61.3 44.0 74.3 1150 DAILY
Cash flow per share Rs 70.4 54.9 90.7 100 DMA
Dividends per share Rs 15.00 15.00 18.00
Dividend yield (eoy) % 1.2 1.0 1.2
900
Book value per share Rs 223.1 228.7 279.7
Shares outstanding (eoy) m 23.89 23.89 23.89 Sep-05 Jun-06 Mar-07 Dec-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 1.8 1.6 1.3 No. of months 12 12 12
Avg P/E ratio x 21.2 33.8 20.0 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 18.5 27.1 16.4
Price / Book Value ratio x 5.8 6.5 5.3 From Operations Rs m 649 1,308 726
Dividend payout % 24.5 34.1 24.2 From Investments Rs m -374 -1,062 -1,178
Avg Mkt Cap Rs m 31,057 35,596 35,524 From Financial Activity Rs m -362 757 352
No. of employees `000 3 2 2 Net Cashflow Rs m -87 1,003 -100
Total wages/salary Rs m 731 793 1,263
Avg. sales/employee Rs Th 6,676.9 9,697.0 11,776.5 INTERIM RESULTS
Avg. wages/employee Rs Th 284.9 339.3 535.6 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 570.5 450.1 752.3 Net sales Rs m 6,588 6,564 6,928 6,933
Gross profit Rs m 686 587 586 576
INCOME DATA Gross profit margin % 10.4 8.9 8.5 8.3
Net Sales Rs m 17,133 22,662 27,769 Net profit Rs m 516 487 623 458
Other income Rs m 217 311 514 Net profit margin % 7.8 7.4 9.0 6.6
Total revenues Rs m 17,350 22,973 28,283
Gross profit Rs m 1,979 1,308 2,359 KEY DATA
Depreciation Rs m 217 260 394 Parameters Unit FY06 FY07 FY08
Interest Rs m 21 117 186 Biscuits % of sales 92.2 90.2 89.0
Profit before tax Rs m 1,958 1,242 2,293 Cake and rusk % of sales 2.3 2.7 2.9
Minority Interest Rs m 0 0 9 Advertising % of sales 6.3 6.2 6.6
Prior Period Items Rs m 0 0 0 Gross margins % 29.3 24.4 28.1
Extraordinary Inc (Exp) Rs m 49 -77 -112 Inventory days days 39 38 43
Tax Rs m 543 113 416
NOTES
Profit after tax Rs m 1,464 1,052 1,774
Gross profit margin % 11.6 5.8 8.5 Initially promoted by Danone (which has now exited) and Mr. Nusli Wadia, Britannia
Effective tax rate % 27.7 9.1 18.1 is the largest biscuit manufacturer (value terms) in the Rs 50 bn organised Indian
bakery market. The primary business of the company is bakery, which consists of
Net profit margin % 8.5 4.6 6.4
biscuits, bread and cakes. In 2006, Britannia picked up a 50% stake in Daily Bread
BALANCE SHEET DATA (retailer of high-end bakery products.), which was held by Cafe Coffee Day in a deal
valued at Rs 85 m. The company has also formed partnership with Khimji Ramdas
Current assets Rs m 3,356 4,355 6,008 Group to run two bakery product companies in the fast growing Middle East market.
Current liabilities Rs m 3,030 3,702 4,017
Net working cap to sales % 1.9 2.9 7.2 Britannia reported a topline growth 17.5% YoY in FY08 led by new launches and
Current ratio x 1.1 1.2 1.5 better product mix. On consolidated basis the topline growth was 22.5% YoY. The
Inventory Turnover Days 39 38 43 sales of subsidiaries grew by 187% YoY. while the margins improved by 3.1% to
Debtors Turnover Days 4 9 9 touch 8.8%. Raw material cost as a percent of sales fell from 63.7% in FY07 to
Net fixed assets Rs m 1,516 3,786 4,092 60.2% in FY08. Excluding the extraordinary items (VRS and profit on sale of
Share capital Rs m 239 239 239 properties), the net profits were higher by 75% YoY in FY08.
"Free" reserves Rs m 5,252 5,400 6,670
In addition to improving its domestic performance, Britannia is also aiming to
Net worth Rs m 5,330 5,464 6,683 strengthen its international presence by entering new markets. The company had
Long term debt Rs m 16 1,302 2,108 done strategic acquisitions and entered into joint ventures in the last 2 years and
Total assets Rs m 8,471 11,048 13,499 hopes that this would help the company to grow its international footprint by
Interest coverage x 94.2 11.6 13.3 leveraging on the complementary strengths of its partners. Though the risk of input
Debt to equity ratio x 0.0 0.2 0.3 prices (particularly wheat) is a concern, Britannia is taking efforts to improve its
Sales to assets ratio x 2.0 2.1 2.1 margins by expanding its portfolio and through inorganic growth. It is also investing
Return on assets % 27.8 17.3 22.3 heavily towards product development and brand building. Over a longer time frame,
Return on equity % 27.5 19.3 26.5 the management has indicated its vision to transform the company form a pure biscuit
Return on capital % 37.9 18.9 27.0 manufacturer to a holistic food company.
Exports to sales % 0.7 0.6 0.4
Imports to sales % 0.3 0.4 0.2
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72
 Regd off: 8/3, Asaf Ali Road, New Delhi - 110 002
DABUR INDIA LIMITED E-Mail: investors@dabur.com
Web site: www.dabur.com
Telephone: (011) 2325 3488 Fax: (011) 2322 2051
BEVERAGES, FOOD & TOBACCO BURMAN Tr agent: Karvy Computershare, Arunachal Bldg., 19, Barakhamba Road, Delhi - 1
Chairman: V. C. Burman SEC: A. K. Jain (GM-Finance) AUD: G. Basu & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1975 500096 DABUR:IN 1 96.5 5.3 -5.1 25.0 22.5 1.6 83,468.7 70.2 INE016A01026
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 70.8% Exports (fob) Rs m 941
Foreign collaborators : 0.0% Imports (cif) Rs m 199 (Rs)
Indian inst/Mut Fund : 9.3% Fx inflow Rs m 941 132
FIIs/GDR : 12.6% Fx outflow Rs m 215
Free float : 7.3% Net fx Rs m 726
Shareholders : 107,880
109
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
86
High Rs 126 118 134
Low Rs 55 71 72
Sales per share Rs 32.5 23.7 27.3
Earnings per share Rs 3.7 3.3 3.9 63 DAILY
Cash flow per share Rs 4.2 3.7 4.3
Dividends per share Rs 2.50 1.75 1.50 100 DMA
Dividend yield (eoy) % 2.8 1.9 1.5 40
Book value per share Rs 8.1 5.3 7.0
Shares outstanding (eoy) m 573.30 862.88 864.02
Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions B1:1 B1:2 ESOP
Price / Sales ratio x 2.8 4.0 3.8 No. of months 12 12 12
Avg P/E ratio x 24.2 28.3 26.6 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 21.5 25.3 24.0
Price / Book Value ratio x 11.2 17.7 14.7 From Operations Rs m 2,187 2,252 3,821
Dividend payout % 66.9 52.5 38.8 From Investments Rs m -488 -787 -2,372
Avg Mkt Cap Rs m 51,884 81,542 88,994 From Financial Activity Rs m -1,335 -1,370 -1,290
No. of employees `000 2 2 3 Net Cashflow Rs m 364 95 159
Total wages/salary Rs m 1,450 1,667 1,993
Avg. sales/employee Rs Th 9,978.1 8,859.9 9,343.5 INTERIM RESULTS
Avg. wages/employee Rs Th 775.4 722.9 788.7 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 1,145.5 1,248.5 1,322.1 Net sales Rs m 6,258 6,497 6,065 6,040
Gross profit Rs m 1,158 1,168 934 854
INCOME DATA Gross profit margin % 18.5 18.0 15.4 14.1
Net Sales Rs m 18,659 20,431 23,611 Net profit Rs m 965 945 796 706
Other income Rs m 134 235 339 Net profit margin % 15.4 14.5 13.1 11.7
Total revenues Rs m 18,793 20,666 23,950
Gross profit Rs m 2,818 3,438 3,989 KEY DATA
Depreciation Rs m 269 343 364 Parameters Unit FY06 FY07 FY08
Interest Rs m 113 111 118 Dabur India % of sales 79.2 77.0 73.8
Profit before tax Rs m 2,570 3,219 3,846 International % of sales 11.6 13.1 16.0
Minority Interest Rs m 3 9 1 Foods % of sales 10.0 10.7 11.2
Prior Period Items Rs m 0 0 0 Advertisement % of sales 11.9 11.6 12.5
Extraordinary Inc (Exp) Rs m -131 24 1 Gross margins % 45.9 44.8 41.3
Tax Rs m 300 373 507
NOTES
Profit after tax Rs m 2,142 2,879 3,341
Gross profit margin % 15.1 16.8 16.9 Dabur is India's fourth largest FMCG company with interests in health care, personal
Effective tax rate % 11.7 11.6 13.2 care and food products. The company's name is generic to 'ayurvedic' products in
India and it has big brands like Vatika (hair oils), Chyawanprash, Hajmola, Amla oil
Net profit margin % 11.5 14.1 14.2
and Lal Dant Manjan in its stable. In FY04, Dabur approved the demerger of its
BALANCE SHEET DATA FMCG and pharma businesses into two separate listed entities. The move was aimed
at bringing in more focus to both businesses, as well as to unlock value for
Current assets Rs m 4,713 6,405 7,739 shareholders. Further, the company acquired Balsara's business in FY05 for a
Current liabilities Rs m 4,361 4,518 7,321 consideration of Rs 1.4 bn.
Net working cap to sales % 1.9 9.2 1.8
Current ratio x 1.1 1.4 1.1 Dabur reported an enticing topline growth of 16% YoY driven by a pick-up in key
Inventory Turnover Days 42 46 47 categories in the consumer care division (up 15% YoY), foods (21% YoY) and its
Debtors Turnover Days 15 25 27 international business, which registered a strong 26% YoY growth for FY08. The
Net fixed assets Rs m 5,125 3,792 4,653 company merged its wholly owned Subsidiary Dabur Foods with its consumer care
Share capital Rs m 573 863 864 division (CCD) and also incorporated its retail venture "H&B Store Ltd" , a wholly
"Free" reserves Rs m 3,741 3,315 4,707 owned subsidiary of the company into the consolidated entity. Bottomline continued
to outpace topline, which was possible due to savings from fiscal benefits from new
Net worth Rs m 4,642 4,597 6,036
manufacturing units and efficiencies. While the company has changed its product mix
Long term debt Rs m 285 1,065 976
and revamped its portfolio along with judicious price increases, a sustained
Total assets Rs m 10,259 11,003 14,429 inflationary environment could hurt growth or margins or both.
Interest coverage x 23.7 30.0 33.6
Debt to equity ratio x 0.1 0.2 0.2 Dabur's broad product portfolio projects it as one of the best plays in the Indian
Sales to assets ratio x 1.8 1.9 1.6 FMCG space, not to forget its strong presence in less penetrated and high growth
Return on assets % 45.8 52.8 49.3 categories. Its ability to consistently launch new products and variants also gives it an
Return on equity % 46.1 62.6 55.4 edge. Further, its wide geographical reach is another strong advantage. It has
Return on capital % 51.9 59.4 56.6 opened 6 H&B stores and plans to open 10 to 16 more stores next year, with an
Exports to sales % 1.4 3.4 4.0 investment of Rs1.4 bn as equity to establish a pan India presence.
Imports to sales % 0.2 0.4 0.8
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73
 Regd off: M-5A, Connaught Circus, New Delhi - 110001
NESTLE INDIA LIMITED E-Mail: investor@in.nestle.com
Web site: www.nestle.in
Telephone: (011) 2341 8891 Fax: (011) 2341 5130
BEVERAGES, FOOD & TOBACCO MNC Tr agent: Alankit Assignments, 2E/21, Jhandewalan Extension, New Delhi - 55
Chairman: Martial G. Rolland SEC: B. Murli AUD: A. F. Ferguson & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1959 500790 NEST:IN 10 1,784.5 10.7 41.6 41.6 35.2 1.8 172,061.5 34.3 INE239A01016
SHAREHOLDING FX Transaction (CY07) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 3,267
Foreign collaborators : 61.9% Imports (cif) Rs m 1,274 (Rs)
Indian inst/Mut Fund : 11.3% Fx inflow Rs m 3,267 2180
FIIs/GDR : 8.1% Fx outflow Rs m 4,746
Free float : 18.7% Net fx Rs m -1,479
Shareholders : 44,885
1810
No. of months 12 12 12
Year ending 31/12/05 31/12/06 31/12/07
EQUITY SHARE DATA
1440
High Rs 1,008 1,348 1,663
Low Rs 570 800 876
Sales per share Rs 256.9 292.1 363.5
Earnings per share Rs 32.1 32.7 42.9 1070
DAILY
Cash flow per share Rs 38.0 39.6 50.7
Dividends per share Rs 25.00 25.50 33.00 100 DMA
Dividend yield (eoy) % 3.2 2.4 2.6
700
Book value per share Rs 36.7 40.3 43.4
Shares outstanding (eoy) m 96.42 96.42 96.42 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 3.1 3.7 3.5 No. of months 12 12 12
Avg P/E ratio x 24.6 32.9 29.6 Year ending 31/12/05 31/12/06 31/12/07
CASH FLOW
P/CF ratio (eoy) x 20.8 27.2 25.1
Price / Book Value ratio x 21.5 26.6 29.3 From Operations Rs m 4,031 4,186 5,192
Dividend payout % 77.9 78.0 76.9 From Investments Rs m -1,304 -1,217 -1,687
Avg Mkt Cap Rs m 76,075 103,555 122,393 From Financial Activity Rs m -2,959 -2,838 -3,724
No. of employees `000 3 4 4 Net Cashflow Rs m -232 131 -220
Total wages/salary Rs m 1,833 2,162 2,694
Avg. sales/employee Rs Th 7,974.6 8,041.4 8,999.5 INTERIM RESULTS
Avg. wages/employee Rs Th 590.1 617.4 691.8 3QCY07 4QCY07 1QCY08 2QCY08
Avg. net profit/employee Rs Th 996.8 899.8 1,062.7 Net sales Rs m 9,067 8,957 10,909 10,356
Gross profit Rs m 1,886 1,528 2,490 1,951
INCOME DATA Gross profit margin % 20.8 17.1 22.8 18.8
Net Sales Rs m 24,769 28,161 35,044 Net profit Rs m 1,161 936 1,701 1,242
Other income Rs m 237 206 254 Net profit margin % 12.8 10.4 15.6 12.0
Total revenues Rs m 25,006 28,367 35,298
Gross profit Rs m 5,221 5,415 6,963 KEY DATA
Depreciation Rs m 568 663 747 Parameters Unit CY05 CY06 CY07
Interest Rs m 2 4 9 Milk products % of sales 44.5 43.7 43.2
Profit before tax Rs m 4,888 4,954 6,461 Beverages % of sales 22.0 20.5 19.8
Minority Interest Rs m 0 0 0 Prepared dishes % of sales 19.0 20.3 21.4
Prior Period Items Rs m 0 0 0 Advertising % of sales 6.9 4.9 4.9
Extraordinary Inc (Exp) Rs m -197 -149 -175 Gross margins % 48.0 45.8 44.2
Tax Rs m 1,595 1,654 2,148
NOTES
Profit after tax Rs m 3,096 3,151 4,138
Gross profit margin % 21.1 19.2 19.9 Nestle India is the third largest FMCG company in India after Hindustan Unilever and
Effective tax rate % 32.6 33.4 33.2 ITC. It dominates the culinary (Maggi) and the hot beverages (coffee - Nescafe)
segments in India. It also has a significant presence in baby foods and has emerged
Net profit margin % 12.5 11.2 11.8
as a strong No. 2 player in the dairy segment (after Amul) and chocolates (after
BALANCE SHEET DATA Cadbury's). In each of the segments, the company has been growing through new
product launches and new price point presence. In the past 5 years, Nestle's topline
Current assets Rs m 4,627 5,354 6,379 and net profits have recorded a CAGR of 13% and 16% respectively.
Current liabilities Rs m 6,853 7,689 9,578
Net working cap to sales % -9.0 -8.3 -9.1 For 1HCY08, the topline grew by a strong 25% YoY as sales improved across most
Current ratio x 0.7 0.7 0.7 categories and channels. In the half year period, the domestic segment grew by 27%
Inventory Turnover Days 37 36 42 YoY, while exports were up 6% YoY. The company continues to ride on the urban
Debtors Turnover Days 4 7 6 growth story aided by product development, innovation and renovation. The
Net fixed assets Rs m 4,966 5,800 6,755 operating margins remained stable due to operating efficiencies. Excluding the
Share capital Rs m 964 964 964 extraordinary item, the bottomline in 1HCY08 grew by a mere 0.6% YoY due to higher
"Free" reserves Rs m 2,575 2,922 3,218 interest costs.
Net worth Rs m 3,541 3,889 4,184 Nestle is planning an expenditure of Rs 1 bn for expanding its chilled dairy portfolio.
Long term debt Rs m 143 29 29 It has also lined up capacity expansion at its existing manufacturing facilities in Moga
Total assets Rs m 10,637 11,932 14,078 (Punjab) and Samalkha (Haryana), and is sprucing up its distribution network. The
Interest coverage x 2,445.0 1,239.5 718.9 company is also considering a re-entry into the water business by acquiring an
Debt to equity ratio x 0.0 0.0 0.0 existing brand. The food processing business in India is at a nascent stage.
Sales to assets ratio x 2.3 2.4 2.5 Currently, only about 10% of the output is processed and consumed in packaged
Return on assets % 84.1 80.5 98.4 form thus highlighting the huge potential for growth. Existing markets are not fully
Return on equity % 87.4 81.0 98.9 tapped and the company can increase presence by penetrating further. With India's
Return on capital % 127.4 122.7 149.4 demographic profile changing in favour of the consuming class, the per capita
Exports to sales % 10.4 9.8 9.3 consumption of most FMCG products is likely to grow.
Imports to sales % 6.0 4.2 3.6
GET MORE INFO AT WWW.EQUITYMASTER.COM

74
 Regd off: 1, Bishop Lefroy Road, Kolkata - 700 020
TATA TEA LIMITED E-Mail: dilip.sen@tatatea.co.in
Web site: www.tatatea.com
Telephone: (033) 2281 3891 Fax: (033) 2281 1199
BEVERAGES, FOOD & TOBACCO TATA Tr agent: TSR Darashaw, H. Moosa Patrawala Ind. Est., E.Moses Rd., Mumbai - 11
Chairman: R. N. Tata SEC: D. K. Sen (VP) AUD: Lovelock & Lewes
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1962 500800 TT:IN 10 719.0 -1.1 -5.0 2.9 2.7 2.1 44,459.9 8.1 INE192A01017
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 35.3% Exports (fob) Rs m 1,445
Foreign collaborators : 0.0% Imports (cif) Rs m 355 (Rs)
Indian inst/Mut Fund : 25.9% Fx inflow Rs m 2,123 1100
FIIs/GDR : 14.5% Fx outflow Rs m 432 DAILY
Free float : 24.3% Net fx Rs m 1,691
Shareholders : 73,536
100 DMA
950
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
800
High Rs 1,078 918 1,022
Low Rs 500 558 545
Sales per share Rs 552.6 681.8 706.0
Earnings per share Rs 53.2 75.1 249.4 650
Cash flow per share Rs 66.7 91.8 264.7
Dividends per share Rs 12.00 15.00 15.00
Dividend yield (eoy) % 1.5 2.0 1.9
500
Book value per share Rs 272.9 357.2 560.1
Shares outstanding (eoy) m 56.22 59.03 61.84 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - PA WC
Price / Sales ratio x 1.4 1.1 1.1 No. of months 12 12 12
Avg P/E ratio x 14.8 9.8 3.1 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 11.8 8.0 3.0
Price / Book Value ratio x 2.9 2.1 1.4 From Operations Rs m 4,215 5,120 5,160
Dividend payout % 22.6 20.0 6.0 From Investments Rs m -4,015 -35,325 26,760
Avg Mkt Cap Rs m 44,357 43,564 48,452 From Financial Activity Rs m -592 31,125 -20,004
No. of employees `000 35 35 3 Net Cashflow Rs m -391 919 11,916
Total wages/salary Rs m 3,751 4,676 4,303
Avg. sales/employee Rs Th 897.9 1,166.4 17,393.2 INTERIM RESULTS
Avg. wages/employee Rs Th 108.4 135.5 1,714.3 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 86.5 128.5 6,145.4 Net sales Rs m 3,191 3,554 2,750 3,150
Gross profit Rs m 757 774 259 534
INCOME DATA Gross profit margin % 23.7 21.8 9.4 17.0
Net Sales Rs m 31,065 40,249 43,657 Net profit Rs m 774 774 193 400
Other income Rs m 543 1,260 2,089 Net profit margin % 24.3 21.8 7.0 12.7
Total revenues Rs m 31,608 41,509 45,746
Gross profit Rs m 5,564 7,043 7,150 KEY DATA
Depreciation Rs m 758 986 942 Parameters Unit FY06 FY07 FY08
Interest Rs m 1,121 2,858 3,078 Tea % of sales 94.3 82.4 81.0
Profit before tax Rs m 4,228 4,459 5,219 Coffee % of sales 4.3 16.5 17.0
Minority Interest Rs m -131 -326 -3,922 Indian operations % of sales 31.2 26.2 26.3
Prior Period Items Rs m 0 0 0 Advertisement % of sales 21.4 21.3 21.4
Extraordinary Inc (Exp) Rs m 73 1,377 15,662 Gross margins % 59.2 61.8 64.3
Tax Rs m 1,179 1,076 1,534
NOTES
Profit after tax Rs m 2,991 4,434 15,425
Gross profit margin % 17.9 17.5 16.4 Tata Tea is the largest integrated producer of tea in the world and has a market share
Effective tax rate % 27.9 24.1 29.4 of 21% in India. It owns a majority stake in Tata Coffee, the largest coffee company
in Asia. From being a key player in a commodity industry (tea), it made an overnight
Net profit margin % 9.6 11.0 35.3
transition to becoming the No. 2 player globally in the branded tea market by
BALANCE SHEET DATA acquiring Tetley in UK. Tetley derives more than 90% of its sales from the UK,
Canada and the US. It acquired Jemca, Jockels and Good Earth to spread its reach
Current assets Rs m 9,943 13,814 33,785 across geographies. It had also acquired 25% stake in Energy Brands USA for US$
Current liabilities Rs m 8,784 10,809 14,079 677 m, which Tata Tea sold to Coco Cola for US$ 1.2 bn.
Net working cap to sales % 3.7 7.5 45.1
Current ratio x 1.1 1.3 2.4 Tata Tea's consolidated topline growth of 9% YoY in FY08 was largely aided by higher
Inventory Turnover Days 50 48 46 contribution from branded sales and acquisitions. During FY08, the Tetley group
Debtors Turnover Days 41 39 37 (77.8% subsidiary) clocked 6% YoY growth in the topline. At the end of FY08,
Net fixed assets Rs m 26,891 64,632 37,312 domestic operations contributed 26% to the topline and over 10% to the bottomline.
Share capital Rs m 560 588 616 The operating margins for both the domestic and the international operations were
"Free" reserves Rs m 13,700 18,262 33,424 around 16%.
Net worth Rs m 15,342 21,083 34,637 Tata Tea acquired a 32% stake in Mount Everest Mineral Water Company, owners of
Long term debt Rs m 13,175 18,814 21,684 the Himalayan brand of bottled water in June 2007, through a combination of
Total assets Rs m 42,668 84,569 85,007 promoter stock and market offerings. It also entered into a joint venture (70% owned
Interest coverage x 4.8 2.6 2.7 by Tata Tea GB) with Zhejiang Tea Import and Export Company (accounts for 25% of
Debt to equity ratio x 0.9 0.9 0.6 Chinese exports) to manufacture and market green tea and value added beverages.
Sales to assets ratio x 0.7 0.5 0.5 The company has restructured its plantations, transferring some of the plantation to
Return on assets % 14.4 18.3 32.9 its employees. It still owns some of the plantations, which it plans to spin off in the
Return on equity % 19.5 21.0 44.5 future. Tata Tea is entering the high growth segments to successfully transfer itself
Return on capital % 18.6 21.0 35.6 from a tea plantation company to a beverage company.
Exports to sales % 5.0 4.0 3.3
Imports to sales % 1.0 0.7 0.8
GET MORE INFO AT WWW.EQUITYMASTER.COM

75
 CAPITAL GOODS
Engineering is a diverse industry with a number of segments.
A company from this sector can be a power equipment
manufacturer (like transformers and boilers), execution
specialist or a niche player (like providing environment friendly
solutions). It can be an electrical, non-electrical machinery
and static equipment manufacturer too.
Order book size determines the performance of the company
in the short to medium-term. In order to bag big contracts,
companies need to have a big balance sheet and proven
execution capabilities. They need huge working capital for
executing bigger contracts.
Tariffs that earlier offered protection to Indian capital goods
manufacturers, have been removed. Import duties on a range
of equipments have also been reduced. This coupled with the
high cost of capital in India puts Indian manufacturers at a
disadvantage against overseas competition.
Power sector contributes the largest to the engineering
companies' revenues. For instance, ABB and BHEL derive 61%
and 73% of their revenues from supplying equipments to the
power sector. And with the government planning to add large-
scale generation capacities in the eleventh (2007-12) five-
year plan, the potential seems huge for the engineering majors.
This is because, apart from the investment in generation
capacity buildup, an equivalent amount is likely to be spent in
the transmission and distribution space as well.
Infrastructure is another key area of operation for major Indian
engineering companies. L&T's order book at the end of FY08,
for example, contained around 36% of orders from the
infrastructure sector which includes activities like engineering,
design and construction of industrial projects and social &
physical projects like housing, hospitals, IT parks, express-
ways, bridges, ports, and water & effluent treatment projects.
The oil exploration and development segment of the engineering
business has relatively higher margins than infrastructure,
owing to more complex tasks involved.
FY08
FY08 proved to be yet another good year for the Indian
engineering and capital goods industry. Strong growth in
industrial and manufacturing industries reflected in the picking
up of investment activities in areas like power, infrastructure
and processes. The capital goods index recorded strong
growth during the entire year, though with some blips during
the months April 2007 and January 2008.
The order books of almost all companies witnessed healthy
growth. In general, the growth in order book came from both
power and industrial businesses. The companies were able
to bag international orders. The topline of the engineering
majors witnessed double-digit growth during the fiscal.
CAPITAL GOODS INDEX (YOY GROWTH)
(%)
36.0
27.0
18.0
9.0
0.0
Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08
Source: CMIE
76
While the industry continued the trend of cost cutting through
reducing debt and restructuring operations and manpower
rationalization, rising input costs and staff costs pared the
improvement in profitability. Sharp rise in costs of steel and
crude on the back of buoyant global demand and inadequate
supplies, was the biggest dampener to profit growth.
KEY POINTS
Supply: Abundant supplies available across most segments,
except for technology intensive executions.
Demand: Demand growth in this sector is fuelled by
expenditure in core sectors such as power, railways,
infrastructure development, private sector investments and
the speed at which the projects are implemented.
Barriers to entry: Barriers to entry are high at upper end
of the industry as skilled manpower and technologies, and
ability to fund large projects are a prerequisite.
Bargaining power of suppliers: Bargaining power of
suppliers is low because of intense competition. However, in
technology driven high-end segments, suppliers have the
upper hand.
Bargaining power of customers: Bargaining power for
technology driven segments is low.
Competition: Majority of the companies compete in terms of
pricing, experience in specific field, product differentiation
and timely completion of projects.
CURRENT SCENARIO AND PROSPECTS
Macro economic fundamentals continue to remain strong. But
the government's monetary measures to curb liquidity, a rise
in input costs like oil, coupled with the recent slowdown in the
industrial sectors may impact growth momentum of the capital
goods sector in the short term.
From a policy perspective, however, there has been a growing
consensus that a private-public partnership is required to
remove difficulties concerning the development of
infrastructure in the country. The realisation finally seems to
be setting in. This makes the future of the Indian engineering
sector extremely bright.
The government's initiative to bring clarity to the power sector
reforms is a welcome sign for the industry.
The shift in focus towards reducing T&D losses will further
increase the order book size of the companies operating in
this realm.
Deregulation in the Indian context, combined with high global
prices for crude has led to a surge in exploration and production
activities both domestically and globally. This thrust in
development of new wells and improvement of output from old
wells promises bright prospects for engineering companies.
Automation business has perked as the user industries started
realising its benefits. With the automation technologies gaining
momentum, companies like ABB and Siemens will benefit a lot
going forward.
Capacity addition and de-bottlenecking exercise being carried
by various industries like steel, power, refineries, chemicals
etc is likely to provide a fillip to the industrial segment of the
engineering companies.
If India's nuclear deal with the US goes off as planned, it will
mean big business for companies planning to enter nuclear
power generation and consequently power equipment
manufacturing.
 CAPITAL GOODS
GLOBAL COMPARISON
FY08/CY07 Unit ABB India ABB Group Siemens Cummins Caterpillar
Revenues US$ m 1,479 29,183 112,592 13,048 44,958
EBIDTA margin % 12.2 15.8 11.0 9.4 17.5
Profit after tax US$ m 123 3,757 3,450 739 3,541
Net profit margins % 8.3 12.9 3.1 5.7 7.9
Return on capital employed % 46.9 34.0 7.4 28.9 17.3
Return on equity % 30.2 34.3 8.0 21.7 39.9
Employees Nos. 5,535 112,000 471,000 37,800 101,333
Revenue per employee US$ m 0.3 0.3 0.2 0.3 0.4
Price/Earnings (TTM) x 35.1 11.2 7.8 13.8 10.6
EV/EBIDTA (TTM) x 23.3 8.0 7.7 8.4 9.6

ABB (SWITZERLAND)

ABB Ltd. provides power and automation technologies to utility and industry customers worldwide. The company
operates in two divisions, Power Technologies and Automation Technologies. The Power Technologies division
offers various products, systems, and services for power transmission, distribution, and power plant automation.
The Automation Technologies division provides products, systems, software, and services for the automation of
industrial and commercial processes. In addition, the company provides installation services and engineering
services, and licenses process technologies to the refining, petrochemical, and polymer industries. It sells its
products primarily through wholesalers and distributors. The company was founded in 1883 and is headquartered
in Zurich, Switzerland. In 2007, it earned revenues and net profits of US$ 29 bn and US$ 3.8 bn respectively.

SIEMENS (GERMANY)

Siemens, headquartered in Berlin and Munich, is one of the world's largest electrical engineering and electronics
companies. Siemens provides innovative technologies and comprehensive know-how to benefit customers in 190
countries. Founded more than 150 years ago, the company is active in the areas of Information and Communications,
Automation and Control, Power, Transportation, Medical, and Lighting. The company has 471,000 employees working
to develop and manufacture products, design and install complex systems and projects, and tailor a wide range of
services for individual requirements. In fiscal 2007 (ended September 30), Siemens had sales of US$ 113 bn and
net income of US$ 3.5 bn.

CUMMINS (US)

Cummins Inc. engages in the design, manufacture, distribution, and servicing of diesel and natural gas engines,
electric power generation systems, and engine-related component products. It operates in three segments: Engine,
Power Generation, and Components. The Engine segment manufactures and markets various diesel and natural
gas-powered engines for various kinds of vehicles, agricultural, construction, mining, marine, oil and gas, rail, and
governmental equipment markets. The Power Generation segment provides power generation systems, components,
and services, including diesel and alternative-fuel electrical generators for office buildings, hospitals, factories,
municipalities, utilities, universities, recreational vehicles, boats, and homes. The Components segment produces
filtration and exhaust systems for on-and off-highway heavy-duty equipment. The company has strategic alliances
with Consolidated Diesel Company, Komatsu, Tata Motors, China National Heavy-Duty Truck Corporation and CNH
Global. Cummins was founded in 1919 and is headquartered in Columbus, Indiana.

CATERPILLAR INC. (US)

Caterpillar is a technology leader and the world's leading manufacturer of construction and mining equipment,
diesel and natural gas engines and industrial gas turbines. In 2007, Caterpillar posted sales of US$ 45 bn and a
profit of US$ 3.5 bn. More then half of all sales were to customers outside of the US, maintaining Caterpillar's
position as a global supplier and leading US exporter. Caterpillar products and components are manufactured in
49 US facilities and in 59 other locations in 22 countries around the globe. Caterpillar invested nearly US$ 1.4 bn
in research and technology in 2007.

Source: Yahoo Finance, Company reports TTM - Trailing twelve months

77
 Regd off: 2nd Floor, Khanjia Bhavan, 49, Race Course Road, Bangalore - 560 001
ABB LIMITED $ E-Mail: investor.helpdesk@in.abb.com
Web site: www.abb.com/in
Telephone: (080) 2294 9150 Fax: (080) 2294 9148
CAPITAL GOODS MNC Tr agent: Karvy Computershare, 51/2, TKN Complex, Vanvilas Road, Bangalore - 4
Chairman: Ravi Uppal SEC: B. Gururaj AUD: S. R. Batliboi & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1949 500002 ABB:IN 2 874.0 3.3 -26.9 37.7 35.3 0.3 185,190.0 97.1 INE117A01022
SHAREHOLDING FX Transaction (CY07) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 3,163
Foreign collaborators : 52.1% Imports (cif) Rs m 13,884 (Rs)
Indian inst/Mut Fund : 17.8% Fx inflow Rs m 4,664 1800
FIIs/GDR : 15.8% Fx outflow Rs m 15,474
Free float : 14.3% Net fx Rs m -10,810
Shareholders : 103,808
1400
No. of months 12 12 12
Year ending 31/12/05 31/12/06 31/12/07
EQUITY SHARE DATA
1000
High Rs 2,051 3,945 1,670
Low Rs 885 1,910 955
Sales per share Rs 699.2 1,008.5 279.8
Earnings per share Rs 51.6 80.3 23.2 600
Cash flow per share Rs 57.1 86.6 24.7 DAILY
Dividends per share Rs 8.00 10.00 2.20
100 DMA
Dividend yield (eoy) % 0.5 0.3 0.2
200
Book value per share Rs 213.3 282.2 76.7
Shares outstanding (eoy) m 42.38 42.38 211.91 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - FV2
Price / Sales ratio x 2.1 2.9 4.7 No. of months 12 12 12
Avg P/E ratio x 28.4 36.5 56.6 Year ending 31/12/05 31/12/06 31/12/07
CASH FLOW
P/CF ratio (eoy) x 25.7 33.8 53.1
Price / Book Value ratio x 6.9 10.4 17.1 From Operations Rs m 772 2,453 2,676
Dividend payout % 15.5 12.5 9.5 From Investments Rs m -538 -594 -1,139
Avg Mkt Cap Rs m 62,214 124,067 278,132 From Financial Activity Rs m -392 -405 -573
No. of employees `000 4 5 6 Net Cashflow Rs m -158 1,455 964
Total wages/salary Rs m 1,784 2,414 3,061
Avg. sales/employee Rs Th 7,312.7 8,239.8 10,714.2 INTERIM RESULTS
Avg. wages/employee Rs Th 440.3 465.4 553.0 3QCY07 4QCY07 1QCY08 2QCY08
Avg. net profit/employee Rs Th 539.7 656.1 888.3 Net sales Rs m 13,775 18,394 15,353 16,163
Gross profit Rs m 1,724 2,603 1,727 1,902
INCOME DATA Gross profit margin % 12.5 14.2 11.2 11.8
Net Sales Rs m 29,631 42,740 59,303 Net profit Rs m 1,157 1,808 1,177 1,318
Other income Rs m 511 737 710 Net profit margin % 8.4 9.8 7.7 8.2
Total revenues Rs m 30,142 43,477 60,013
Gross profit Rs m 3,181 4,767 7,247 KEY DATA
Depreciation Rs m 231 265 324 Parameters Unit CY05 CY06 CY07
Interest Rs m 66 7 68 Power sales % of sales 61.8 63.6 61.5
Profit before tax Rs m 3,395 5,232 7,565 Automation sales % of sales 38.2 36.4 38.5
Minority Interest Rs m 0 0 0 Orders received Rs m 37,645 56,236 76,682
Prior Period Items Rs m 0 0 0 Order backlog Rs m 21,032 33,723 50,260
Extraordinary Inc (Exp) Rs m 0 0 0 Backlog to sales x 0.7 0.7 0.8
Tax Rs m 1,208 1,829 2,648
NOTES
Profit after tax Rs m 2,187 3,403 4,917
Gross profit margin % 10.7 11.2 12.2 ABB India (ABB) is a 52% subsidiary of ABB, Zurich, which is a global leader in power
Effective tax rate % 35.6 35.0 35.0 and automation technologies. Besides catering to the Indian markets, ABB has also
been playing an increasing role in the parent's regional and global operations. The
Net profit margin % 7.4 8.0 8.3
company serves utility and industry customers through its vast range of offerings,
BALANCE SHEET DATA which form part of its power and automation segments. The former caters chiefly to
electric, gas and water utilities through its range of products and services for the
Current assets Rs m 19,871 27,967 41,107 power transmission and distribution business. The automation business serves
Current liabilities Rs m 14,241 19,919 29,993 customers across industries like metals, paper, automotive, chemicals and
Net working cap to sales % 19.0 18.8 18.7 petrochemicals. During the period CY04 to CY07, ABB's net sales and profits grew at
Current ratio x 1.4 1.4 1.4 compounded rates of 38% and 47% respectively.
Inventory Turnover Days 25 30 30
Debtors Turnover Days 127 134 149 During 1HCY08, ABB recorded a topline growth of 16% YoY, largely led by a 34%
Net fixed assets Rs m 2,651 3,318 4,579 YoY growth in its automation products business (23% share in revenue). The
Share capital Rs m 424 424 424 company's power systems business contributed nearly 31% to the revenues, while
"Free" reserves Rs m 8,443 11,368 15,677 the power products and process automation business added 28% and 17%
respectively. The company improved its operating and net profit margins by 0.7%
Net worth Rs m 9,041 11,958 16,263
each, during 1HCY08. The improvement in operating margins was mainly due to
Long term debt Rs m 16 6 0
lower material and other costs. On the back of stable operating margins and higher
Total assets Rs m 23,394 32,058 46,390 other income, ABB recorded a 28% YoY growth in its net profits during 1HCY08.
Interest coverage x 52.4 748.4 112.3
Debt to equity ratio x 0.0 0.0 0.0 Continued investments by state and private sector utilities in the nation's power
Sales to assets ratio x 1.3 1.3 1.3 transmission and distribution (T&D) setup has aided growth for ABB during the past
Return on assets % 24.9 28.5 30.7 few quarters, and is likely to do so in the future as well. The company continues to
Return on equity % 24.2 28.5 30.2 invest in ramping up capacity and expanding its range of offerings to cater to growing
Return on capital % 38.2 43.8 46.9 requirements from the power transmission and distribution sector. We believe that the
Exports to sales % 7.1 9.1 5.3 benefits of these initiatives shall flow into its numbers over the next few years. At the
Imports to sales % 23.2 25.8 23.4 end of June 2008, the company's order backlog stood at Rs 67 bn.
GET MORE INFO AT WWW.EQUITYMASTER.COM

78
 Regd off: Mumbai-Pune Road, Dapodi, Pune - 411 012
ALFA-LAVAL (INDIA) LIMITED E-Mail: chandrasekhar.v@alfalaval.com
Web site: www.alfalaval.com
Telephone: (020) 2710 7181 Fax: (020) 2710 7188
CAPITAL GOODS MNC Tr agent: Intime Spectrum, Block 202, Akshay Complx, Dhole Patil Rd., Pune - 1
Chairman: Giuseppe Falciola SEC: V. Chandrasekhar AUD: S. R. Batliboi & Associates
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1937 505885 ALFA:IN 10 814.9 -1.2 -17.6 16.2 14.9 3.1 14,798.6 0.5 INE427A01017
SHAREHOLDING FX Transaction (CY07) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 2,638
Foreign collaborators : 76.7% Imports (cif) Rs m 2,010 (Rs)
Indian inst/Mut Fund : 9.0% Fx inflow Rs m 2,661 1300 DAILY
FIIs/GDR : 0.0% Fx outflow Rs m 2,459
Free float : 14.3% Net fx Rs m 202 100 DMA
Shareholders : 11,802
1150
No. of months 12 12 12
Year ending 31/12/05 31/12/06 31/12/07
EQUITY SHARE DATA
1000
High Rs 1,040 1,280 1,380
Low Rs 654 740 790
Sales per share Rs 314.7 323.4 378.1
Earnings per share Rs 35.7 38.3 50.4 850
Cash flow per share Rs 39.5 42.2 54.5
Dividends per share Rs 25.00 25.00 25.00
Dividend yield (eoy) % 3.0 2.5 2.3
700
Book value per share Rs 119.1 127.6 148.8
Shares outstanding (eoy) m 18.16 18.16 18.16 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 2.7 3.1 2.9 No. of months 12 12 12
Avg P/E ratio x 23.7 26.4 21.5 Year ending 31/12/05 31/12/06 31/12/07
CASH FLOW
P/CF ratio (eoy) x 21.5 23.9 19.9
Price / Book Value ratio x 7.1 7.9 7.3 From Operations Rs m 551 430 665
Dividend payout % 70.0 65.2 49.6 From Investments Rs m -97 48 -118
Avg Mkt Cap Rs m 15,382 18,342 19,704 From Financial Activity Rs m -420 -524 -527
No. of employees `000 1 1 1 Net Cashflow Rs m 35 -46 19
Total wages/salary Rs m 368 427 514
Avg. sales/employee Rs Th 5,167.3 5,002.6 6,076.1 INTERIM RESULTS
Avg. wages/employee Rs Th 332.7 363.7 454.9 3QCY08 4QCY07 1QCY08 2QCY08
Avg. net profit/employee Rs Th 586.8 592.8 809.7 Net sales Rs m 1,869 2,031 1,660 1,942
Gross profit Rs m 339 358 329 389
INCOME DATA Gross profit margin % 18.1 17.6 19.8 20.0
Net Sales Rs m 5,715 5,873 6,866 Net profit Rs m 237 235 221 260
Other income Rs m 163 189 267 Net profit margin % 12.7 11.6 13.3 13.4
Total revenues Rs m 5,878 6,062 7,133
Gross profit Rs m 903 963 1,177 KEY DATA
Depreciation Rs m 68 71 75 Parameters Unit CY05 CY06 CY07
Interest Rs m 7 7 5 Equipment sales % of sales 35.2 40.9 49.0
Profit before tax Rs m 991 1,074 1,364 Process technology sales % of sales 64.8 59.1 51.0
Minority Interest Rs m 0 0 0 Raw material costs % of sales 58.9 55.7 60.2
Prior Period Items Rs m -2 -11 -4 Exports % of sales 32.4 30.1 35.4
Extraordinary Inc (Exp) Rs m 0 0 0
Tax Rs m 340 367 445
NOTES
Profit after tax Rs m 649 696 915
Gross profit margin % 15.8 16.4 17.1 Alfa Laval India Ltd. (ALIL) is subsidiary of Sweden based Alfa Laval AB, which holds
Effective tax rate % 34.3 34.2 32.6 a 76% stake in the former. ALIL is based in Pune and is a provider of machinery and
turnkey projects to industries like marine and diesel, nuclear and thermal power,
Net profit margin % 11.4 11.9 13.3
breweries, distilleries, biotech and fermentation processes, vegetable oil processing
BALANCE SHEET DATA and chemicals. Apart from this diverse business in the domestic market, the company
is a major exporter to its parent, Alfa Laval AB. The company exports equipments like
Current assets Rs m 3,328 3,655 4,304 decanters, separators and flow equipments to its parent and is betting big on a
Current liabilities Rs m 2,154 2,257 2,481 superior growth in the same going forward.
Net working cap to sales % 20.5 23.8 26.6
Current ratio x 1.5 1.6 1.7 In CY07, ALIL's revenues grew by 17% YoY, on account of higher order inflows. The
Inventory Turnover Days 65 80 97 company's order book increased by 18% YoY during CY07. The revenues were
Debtors Turnover Days 110 107 91 equally contributed by its equipment and process technology (projects) segment
Net fixed assets Rs m 592 622 831 during the year. The company's operating margins marginally improved to 17.1% in
Share capital Rs m 182 182 182 CY07 while its net profit margins improved to 13.3% from 11.9% in CY06. Higher
"Free" reserves Rs m 1,981 2,137 2,520 margins and other income led the company net profit to grow by 32% YoY.
Net worth Rs m 2,163 2,318 2,702 The company has continuously been improving margins over the past few years.
Long term debt Rs m 63 59 54 Infact, ALIL has one of the highest margins as compared to its peers. Also, the fact
Total assets Rs m 4,376 4,619 5,344 that the company has diversified revenue mix along with a strong parent support are
Interest coverage x 142.6 154.4 273.8 factors that are likely to work in favour of ALIL going forward. However, the company
Debt to equity ratio x 0.0 0.0 0.0 continues to face pressure on the human resources front.
Sales to assets ratio x 1.3 1.3 1.3
Return on assets % 29.5 29.6 33.4
Return on equity % 30.0 30.0 33.9
Return on capital % 44.7 45.0 49.5
Exports to sales % 33.9 30.7 38.4
Imports to sales % 19.7 22.5 29.3
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79
 Regd off: 5th Flr., 16 Marine Lines Cross Rd, Churchgate, Mumbai - 20
ALSTOM PROJECTS INDIA LIMITED E-Mail: naina.r.desai@power.alstom.com
Web site: www.alstom.co.in
Telephone: (022) 2205 1256 Fax: (022) 2208 6905
CAPITAL GOODS MNC Tr agent: Karvy Computershare, 7, Andheri Indl. Estate, Desai Rd., Mumbai - 53
Chairman: Sunand Sharma SEC: Naina R. Desai (Wholetime Director) AUD: S. R. Batliboi & Co
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1992 532309 ABBAP:IN 10 396.6 -7.6 -47.6 34.7 26.5 2.0 26,576.8 44.4 INE878A01011
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 7.9% Exports (fob) Rs m 1,149
Foreign collaborators : 58.6% Imports (cif) Rs m 1,616 (Rs)
Indian inst/Mut Fund : 13.7% Fx inflow Rs m 2,611 1200
FIIs/GDR : 2.2% Fx outflow Rs m 2,404
Free float : 17.6% Net fx Rs m 207
Shareholders : 56,077
925
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
650
High Rs 432 504 1,082
Low Rs 164 198 371
Sales per share Rs 141.1 182.0 230.8
Earnings per share Rs 7.2 16.6 11.4 375
Cash flow per share Rs 9.5 19.1 15.0 DAILY
Dividends per share Rs 4.00 10.00 8.00 100 DMA
Dividend yield (eoy) % 1.3 2.8 1.1
100
Book value per share Rs 44.9 49.8 52.0
Shares outstanding (eoy) m 67.02 67.02 67.02 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 2.1 1.9 3.1 No. of months 12 12 12
Avg P/E ratio x 41.6 21.1 63.6 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 31.5 18.4 48.6
Price / Book Value ratio x 6.6 7.1 14.0 From Operations Rs m 2,020 799 2,345
Dividend payout % 55.9 60.1 70.1 From Investments Rs m -363 -443 -476
Avg Mkt Cap Rs m 19,972 23,524 48,690 From Financial Activity Rs m -431 -326 -792
No. of employees `000 2 3 3 Net Cashflow Rs m 1,226 30 1,077
Total wages/salary Rs m 894 1,233 1,807
Avg. sales/employee Rs Th 4,065.8 4,076.5 4,558.0 INTERIM RESULTS
Avg. wages/employee Rs Th 384.4 412.1 532.4 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 206.4 372.7 225.4 Net sales Rs m 3,981 3,968 5,109 3,645
Gross profit Rs m 323 414 45 250
INCOME DATA Gross profit margin % 8.1 10.4 0.9 6.9
Net Sales Rs m 9,457 12,197 15,470 Net profit Rs m 242 301 15 183
Other income Rs m 256 369 430 Net profit margin % 6.1 7.6 0.3 5.0
Total revenues Rs m 9,713 12,566 15,900
Gross profit Rs m 453 1,191 984 KEY DATA
Depreciation Rs m 154 164 237 Parameters Unit FY06 FY07 FY08
Interest Rs m 2 2 1 Power % of sales 93.7 96.1 98.3
Profit before tax Rs m 553 1,394 1,176 Transport % of sales 3.7 1.7 1.7
Minority Interest Rs m 0 0 0 Order backlog Rs m 18,441 24,702 28,941
Prior Period Items Rs m 0 0 0 Backlog to sales x 1.9 2 1.9
Extraordinary Inc (Exp) Rs m 0 0 54 Revenue per employee Rs m 4.5 4.7 4.6
Tax Rs m 73 279 465
NOTES
Profit after tax Rs m 480 1,115 765
Gross profit margin % 4.8 9.8 6.4 Alstom Projects India Ltd. (APIL) is a 67% subsidiary of Alstom Group, which is a
Effective tax rate % 13.2 20.0 39.5 world leader in energy and rail transport infrastructure. The company has full
capabilities in engineering, manufacturing, project management and supply of power
Net profit margin % 5.1 9.1 4.9
generation equipment. It also has a significant presence in the transport sector by
BALANCE SHEET DATA way of providing railway equipment and technology solutions. Besides catering to the
Indian markets, APIL has also been playing an increasing role in the parent's regional
Current assets Rs m 9,264 13,122 17,865 and global operations.
Current liabilities Rs m 7,688 11,354 16,540
Net working cap to sales % 16.7 14.5 8.6 APIL grew its net sales and profits by 27% YoY during FY08. Growth in topline was
Current ratio x 1.2 1.2 1.1 led by a 27% YoY growth in sales to power sector (98% of total revenues), while
Inventory Turnover Days 27 20 14 those from the transport segment increased by 26% YoY. But in spite of this, the
Debtors Turnover Days 159 143 134 company witnessed a decrease in operating margins from 9.9% FY07 to 6.8% in
Net fixed assets Rs m 1,228 1,593 2,196 FY08 due mainly to higher (as percentage of sales) raw material and other expenses.
Share capital Rs m 670 670 670 The results for the year were also impacted by provisions booked further to revision
"Free" reserves Rs m 2,179 2,537 2,704 in estimates of cost-to-compete for two specific projects during the last quarter of
FY08. These factors led to a 31% YoY decline in the company's bottomline.
Net worth Rs m 3,009 3,335 3,483
Long term debt Rs m 23 17 11 Alstom Group's focus on India, its frontline technologies and APIL's ramped up
Total assets Rs m 10,492 14,716 20,061 manufacturing facilities, project management and engineering capabilities position
Interest coverage x 277.5 698.0 1,177.0 the latter well for future growth. Acceleration of the reforms process, corporatisation
Debt to equity ratio x 0.0 0.0 0.0 of SEBs, the Electricity Act of 2003 offer good growth prospects for APIL. The joint
Sales to assets ratio x 0.9 0.8 0.8 ventures with leading Indian players like BHEL and NTPC are also likely to stand it in
Return on assets % 15.9 33.3 21.9 good stead in the long term. Outsourcing to their parent companies has been a key
Return on equity % 16.0 33.4 22.0 growth driver for most of the MNC engineering companies in India, and APIL is no
Return on capital % 18.3 41.6 35.2 different.
Exports to sales % 0.6 15.4 7.4
Imports to sales % 6.7 12.7 10.4
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80
 Regd off: D-2, Gillandar House, Netaji Subhas Road, Calcutta - 700 001
AREVA T&D INDIA LIMTED E-Mail: conjeevaramsanthanam.ashokkumar@areva-td.com
Web site: www.areva-td.co.in
Telephone: (033) 2230 3991 Fax: (033) 2230 3995
CAPITAL GOODS MNC Tr agent: CB Management Services, P-22, Bondel Road, Calcutta - 700 019
Chairman: S. K. Poddar SEC: C. S. Ashok Kumar AUD: Deloitte Haskin & Sells
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1957 522275 ATD:IN 10 1,625.0 -2.0 -2.2 35.9 32.5 0.6 77,672.6 17.3 INE200A01018
SHAREHOLDING FX Transaction (CY07) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 2,179
Foreign collaborators : 72.2% Imports (cif) Rs m 2,784 (Rs)
Indian inst/Mut Fund : 11.5% Fx inflow Rs m 3,294 3200
FIIs/GDR : 1.8% Fx outflow Rs m 3,377
Free float : 14.5% Net fx Rs m -83
Shareholders : 41,955
2450
No. of months 9 12 12
Year ending 31/12/05 31/12/06 31/12/07
EQUITY SHARE DATA
1700
High Rs 395 1,090 3,280
Low Rs 70 330 961
Sales per share Rs 218.0 402.6 419.5
Earnings per share Rs 9.1 34.3 45.2 950 DAILY
Cash flow per share Rs 11.5 39.0 50.0
Dividends per share Rs 2.50 6.00 9.00 100 DMA
Dividend yield (eoy) % 1.1 0.8 0.4
200
Book value per share Rs 55.0 96.1 114.9
Shares outstanding (eoy) m 39.89 39.89 47.82 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - A
Price / Sales ratio x 1.1 1.8 5.1 No. of months 9 12 12
Avg P/E ratio x 25.5 20.7 46.9 Year ending 31/12/05 31/12/06 31/12/07
CASH FLOW
P/CF ratio (eoy) x 20.2 18.2 42.4
Price / Book Value ratio x 4.2 7.4 18.5 From Operations Rs m 352 221 408
Dividend payout % 27.5 17.5 19.9 From Investments Rs m -215 106 -1,263
Avg Mkt Cap Rs m 9,274 28,322 101,402 From Financial Activity Rs m 4 -305 557
No. of employees `000 3 3 3 Net Cashflow Rs m 142 21 -298
Total wages/salary Rs m 685 1,163 1,532
Avg. sales/employee Rs Th 3,053.0 5,133.6 5,736.9 INTERIM RESULTS
Avg. wages/employee Rs Th 240.5 371.8 438.1 3QCY07 4QCY07 1QCY08 2QCY08
Avg. net profit/employee Rs Th 127.5 437.7 618.2 Net sales Rs m 4,326 7,332 5,029 6,218
Gross profit Rs m 787 1,404 792 1,101
INCOME DATA Gross profit margin % 18.2 19.1 15.7 17.7
Net Sales Rs m 8,695 16,058 20,062 Net profit Rs m 486 826 458 634
Other income Rs m 56 151 178 Net profit margin % 11.2 11.3 9.1 10.2
Total revenues Rs m 8,751 16,209 20,240
Gross profit Rs m 689 2,098 3,574 KEY DATA
Depreciation Rs m 96 187 231 Parameters Unit CY05 CY06 CY07
Interest Rs m 1 44 85 Projects % of sales 29.9 35.8 35.5
Profit before tax Rs m 648 2,018 3,436 Switchgear sales % of sales 27.4 30.1 28.2
Minority Interest Rs m 0 0 0 Raw material costs % of sales 70.6 67.6 63.2
Prior Period Items Rs m 0 0 0 Order intake Rs m NA 24,180 29,343
Extraordinary Inc (Exp) Rs m -54 70 -5
Tax Rs m 231 719 1,269
NOTES
Profit after tax Rs m 363 1,369 2,162
Gross profit margin % 7.9 13.1 17.8 With the worldwide acquisition of Alstom's T&D (transmission and distribution)
Effective tax rate % 35.6 35.6 36.9 business by Areva (French nuclear major), the name of the company was changed
to Areva T&D (ATD) in September 2005. Along with Siemens and ABB, ATD is among
Net profit margin % 4.2 8.5 10.8
the top three T&D (transmission and distribution) players in India. The company's
BALANCE SHEET DATA product portfolio includes switchgears, transformers and reactors, motors and energy
meters. During the current calendar year, the company was awarded a contract worth
Current assets Rs m 6,949 10,194 14,591 40 m euros to design and manufacture a 66 Kv substation package for India Gandhi
Current liabilities Rs m 5,625 7,807 10,662 International airport at its Terminal-3.
Net working cap to sales % 15.2 14.9 19.6
Current ratio x 1.2 1.3 1.4 During CY07, ATD recorded a 25% YoY growth in revenues on account of a high
Inventory Turnover Days 78 54 50 order intake in the year. Its operating margins expanded by 4.8% to 17.8% in CY07,
Debtors Turnover Days 169 142 187 aided by lower raw material and employee costs. ATD's profits grew by 58% YoY, on
Net fixed assets Rs m 736 1,134 2,293 account of a strong operating performance. Further, during the previous year, the
Share capital Rs m 399 478 478 company hived of its non T&D business, which accounted as an extraordinary item.
"Free" reserves Rs m 1,635 3,264 4,923 If we exclude the same, the profits grew by 70% YoY.
Net worth Rs m 2,194 3,835 5,493 At the end of June 2008, the company's order backlog stood at Rs 40 bn (2 times its
Long term debt Rs m 0 0 0 CY07 net sales). With a lot of thrust towards improving India's AT&D (aggregate
Total assets Rs m 7,782 11,424 16,885 transmission and distribution) losses through initiatives like the Accelerated Power
Interest coverage x 649.0 46.9 41.4 Development Reform Programme (APDRP), amongst others, companies like Areva
Debt to equity ratio x 0.0 0.0 0.0 T&D are likely to benefit significantly going forward. Also, the fact that ATD has a
Sales to assets ratio x 1.1 1.4 1.2 strong back up of its parent group will be an additional benefit for the company.
Return on assets % 16.6 36.8 40.9 However, concerns over the volatility in input costs along with manpower retention
Return on equity % 16.5 35.7 39.4 issue will continue to sustain going forward. ATD is currently in the midst of capacity
Return on capital % 27.1 55.6 64.0 expansion at three of its facilities at Baroda, Hosur and Chennai/ Padappai, which are
Exports to sales % 4.6 5.0 10.9 likely to be commissioned by the end of 2008.
Imports to sales % 9.9 12.7 13.9
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81
 Regd off: Electric Mansion, 6th floor, Appasaheb Marathe Marg, Mumbai - 25
BHARAT BIJLEE LTD. E-Mail: investorcare@bharatbijlee.com
Web site: www.bharatbijlee.com
Telephone: (022) 2430 6237 Fax: (022) 2437 0624
CAPITAL GOODS MISCELLANEOUS Tr agent: Intime Spectrum, C13, Pannalal Silk Mills Cmpd., LBS Marg, Mumbai - 78
Chairman: Bansi S. Mehta SEC: D. N. NagarKar (Legal) AUD: Dalal & Shah
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1946 503960 BIJL:IN 10 1,392.1 12.3 -42.0 10.8 10.3 2.2 7,865.1 1.0 INE464A01028
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 35.7% Exports (fob) Rs m 44
Foreign collaborators : 0.0% Imports (cif) Rs m 142 (Rs)
Indian inst/Mut Fund : 28.1% Fx inflow Rs m 947 4350
FIIs/GDR : 3.1% Fx outflow Rs m 148
Free float : 33.2% Net fx Rs m 799
Shareholders : 18,813
3350
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
2350
High Rs 1,448 1,709 4,068
Low Rs 375 750 1,170
Sales per share Rs 532.2 831.7 995.4
Earnings per share Rs 59.6 97.5 128.3 1350
DAILY
Cash flow per share Rs 63.2 102.7 135.2
Dividends per share Rs 13.50 25.00 30.00 100 DMA
Dividend yield (eoy) % 1.5 2.0 1.1
350
Book value per share Rs 134.2 205.0 298.2
Shares outstanding (eoy) m 5.65 5.65 5.65 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions FV10 - -
Price / Sales ratio x 1.7 1.5 2.6 No. of months 12 12 12
Avg P/E ratio x 15.3 12.6 20.4 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 14.4 12.0 19.4
Price / Book Value ratio x 6.8 6.0 8.8 From Operations Rs m 90 387 464
Dividend payout % 22.6 25.6 23.4 From Investments Rs m -226 -55 -248
Avg Mkt Cap Rs m 5,150 6,947 14,797 From Financial Activity Rs m -24 -292 -244
No. of employees `000 1 1 1 Net Cashflow Rs m -159 40 -29
Total wages/salary Rs m 271 388 484
Avg. sales/employee Rs Th 3,243.8 4,016.2 4,326.2 INTERIM RESULTS
Avg. wages/employee Rs Th 292.3 331.6 372.3 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 363.5 470.9 557.7 Net sales Rs m 1,359 1,116 1,993 1,056
Gross profit Rs m 260 202 489 133
INCOME DATA Gross profit margin % 19.1 18.1 24.5 12.6
Net Sales Rs m 3,007 4,699 5,624 Net profit Rs m 163 123 312 77
Other income Rs m 37 45 34 Net profit margin % 12.0 11.0 15.7 7.3
Total revenues Rs m 3,044 4,744 5,658
Gross profit Rs m 512 882 1,148 KEY DATA
Depreciation Rs m 20 29 39 Parameters Unit FY06 FY07 FY08
Interest Rs m 45 52 26 Raw material costs % 65.4 66.0 64.8
Profit before tax Rs m 484 846 1,117 Power & fuel costs % 0.6 0.6 0.5
Minority Interest Rs m 0 0 0 Sub-contracting charges % 1.1 1.0 1.0
Prior Period Items Rs m -4 0 -8 Indigenous materials costs % TM costs 4.0 3.0 2.0
Extraordinary Inc (Exp) Rs m 19 -14 0 Imported materials costs % TM costs 96.0 97.0 98.0
Tax Rs m 162 281 384
NOTES
Profit after tax Rs m 337 551 725
Gross profit margin % 17.0 18.8 20.4 Bharat Bijlee, established in 1946, is one of the leaders in the electrical engineering
Effective tax rate % 33.5 33.2 34.4 industry in India. The company operates in two business segments - Industrial
Products, which comprises transformers, motors and drives; and Projects. The
Net profit margin % 11.2 11.7 12.9
company's principal activity is to manufacture and market electric motors and electric
BALANCE SHEET DATA transformers, and its products include low-tension standard and tailor-made motors,
variable-speed drives and power and distribution transformers, submersible pumps
Current assets Rs m 1,805 2,873 3,606 and other maintenance products. The company's plant is located at Thane,
Current liabilities Rs m 1,092 1,977 2,490 Maharashtra.
Net working cap to sales % 23.7 19.1 19.8
Current ratio x 1.7 1.5 1.4 FY08 saw Bharat Bijlee posting 20% YoY growth in sales. This was brought about by
Inventory Turnover Days 52 50 50 strong performances across all its key product segments like electric motors,
Debtors Turnover Days 119 111 109 transformers and controllers. What is more, the company operating margins
Net fixed assets Rs m 296 338 558 expanded to 20.4%, from 18.8% in FY07. This led to the net profit recording a growth
Share capital Rs m 57 57 57 32% YoY during the fiscal. The company grew its order inflows by 9% YoY.
"Free" reserves Rs m 716 1,102 1,628
Considering the anticipated robust demand for power generation, transmission and
Net worth Rs m 758 1,158 1,685 distribution equipments over the next few years, Bharat Bijlee plans to ramp up its
Long term debt Rs m 148 153 58 transformer manufacturing capacity to 11,000 MVA per annum, from 8,000 MVA
Total assets Rs m 2,284 3,399 4,367 currently. Also, its efforts to reorganise the business portfolio is likely to accelerate
Interest coverage x 11.8 17.3 44.0 growth going forward. Volatility in raw material (primarily copper) prices might,
Debt to equity ratio x 0.2 0.1 0.0 however, impact profitability improvement in the future. Poor financial health of the
Sales to assets ratio x 1.3 1.4 1.3 state electricity boards, that are the major clients of the company, also remains a
Return on assets % 42.2 46.0 43.1 concern.
Return on equity % 44.5 47.6 43.0
Return on capital % 60.0 67.4 65.1
Exports to sales % 0.0 1.1 0.8
Imports to sales % 2.7 2.6 2.5
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82
 Regd off: Kasturi Bldg., Jamshedji Tata Rd., M. T. Advani Chowk, Mumbai - 20
BLUE STAR LIMITED E-Mail: kptkutty@bluestarindia.com
Web site: www.bluestarindia.com
Telephone: (022) 6665 4000 Fax: (022) 6665 4151
CAPITAL GOODS MISCELLANEOUS Tr agent: Intime Spectrum, C13, Pannalal Silk Mills Cmpd., LBS Marg, Mumbai - 78
Chairman: Ashok. M. Advani (MD) SEC: K. P. T. Kutty AUD: K. S. Aiyar & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1949 500067 BLSTR:IN 2 410.1 7.2 24.4 21.2 18.8 1.7 36,879.9 0.7 INE472A01039
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 39.6% Exports (fob) Rs m 1,437
Foreign collaborators : 0.6% Imports (cif) Rs m 3,002 (Rs)
Indian inst/Mut Fund : 9.2% Fx inflow Rs m 1,652
FIIs/GDR : 6.6% Fx outflow Rs m 3,038 530
Free float : 44.1% Net fx Rs m -1,386
Shareholders : 19,354
No. of months 12 12 12
410
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
High Rs 729 248 548 290
Low Rs 247 96 197
Sales per share Rs 650.8 177.3 247.0
Earnings per share Rs 27.2 7.9 19.4 170
Cash flow per share Rs 36.0 10.2 21.8
DAILY
Dividends per share Rs 12.00 3.00 7.00 100 DMA
Dividend yield (eoy) % 2.5 1.7 1.9
50
Book value per share Rs 94.2 23.4 29.1
Shares outstanding (eoy) m 17.99 89.94 89.94 Sep-05 Jun-06 Mar-07 Dec-07 Sep-08
Bonus/Rights/Conversions - FV2 -
Price / Sales ratio x 0.7 1.0 1.5 No. of months 12 12 12
Avg P/E ratio x 18.0 21.7 19.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 13.5 16.8 17.1
Price / Book Value ratio x 5.2 7.3 12.8 From Operations Rs m 184 601 1,338
Dividend payout % 44.1 37.9 36.2 From Investments Rs m -366 -237 -752
Avg Mkt Cap Rs m 8,779 15,470 33,503 From Financial Activity Rs m 182 -342 -606
No. of employees `000 2 2 3 Net Cashflow Rs m -1 22 -19
Total wages/salary Rs m 883 1,229 1,544
Avg. sales/employee Rs Th 5,856.4 7,311.3 8,661.2 INTERIM RESULTS
Avg. wages/employee Rs Th 441.7 563.5 601.9 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 244.6 326.5 678.8 Net sales Rs m 5,478 5,149 7,081 6,309
Gross profit Rs m 684 557 724 570
INCOME DATA Gross profit margin % 12.5 10.8 10.2 9.0
Net Sales Rs m 11,707 15,946 22,216 Net profit Rs m 460 354 351 364
Other income Rs m 79 108 132 Net profit margin % 8.4 6.9 5.0 5.8
Total revenues Rs m 11,786 16,054 22,348
Gross profit Rs m 828 1,102 2,231 KEY DATA
Depreciation Rs m 159 209 220 Parameters Unit FY06 FY07 FY08
Interest Rs m 57 95 76 Central airconditioning % of sales 69.9 70.2 69.7
Profit before tax Rs m 691 906 2,067 Cooling products % of sales 23.1 23.3 23.8
Minority Interest Rs m 0 0 0 Professional electronics % of sales 6.8 6.5 6.5
Prior Period Items Rs m 0 0 -18 Employee costs % of sales 7.5 7.7 7.0
Extraordinary Inc (Exp) Rs m 0 20 353 Revenue per employee Rs m 5.9 7.3 8.7
Tax Rs m 202 214 661
NOTES
Profit after tax Rs m 489 712 1,741
Gross profit margin % 7.1 6.9 10.0 Blue Star (BSL) is one of India's largest central air-conditioning and commercial
Effective tax rate % 29.2 23.6 32.0 refrigeration companies. The company has divided its business segments as - central
& packaged air-conditioning systems (CPAS), cooling products and professional
Net profit margin % 4.2 4.5 7.8
electronics & industrial equipments (PIES). The first business involves designing,
BALANCE SHEET DATA engineering, manufacturing, installation, commissioning and support of central air-
conditioning plants and ducted systems. As for the second business unit, BSL offers
Current assets Rs m 4,817 7,124 10,174 a wide range of contemporary window and split air-conditioners. The company also
Current liabilities Rs m 3,404 5,279 8,755 manufactures and markets a range of commercial refrigeration products and services
Net working cap to sales % 12.1 11.6 6.4 that cater to the industrial, commercial and hospitality sectors. BSL recently acquired
Current ratio x 1.4 1.3 1.2 the electrical contracting business of Bangalore based, Naseer Electrical Pvt Ltd.,
Inventory Turnover Days 47 43 45 which will enable it to enhance its position in the mechanical, electrical and plumbing
Debtors Turnover Days 74 80 79 (MEP) space.
Net fixed assets Rs m 1,079 1,165 1,558
Share capital Rs m 180 180 180 During FY08, BSL recorded a strong 40% YoY growth in sales, led by strong
"Free" reserves Rs m 1,547 1,950 2,456 performances from all its three segments. While the cooling products division grew by
43% YoY, the other two divisions i.e. the CPAS and the PIES grew by 38% YoY each.
Net worth Rs m 1,694 2,107 2,621
BSL's EBIDTA margins improved to 10.5% from 7.3% in FY07 on the back of lower
Long term debt Rs m 256 363 365
raw material and staff costs. The company had an order backlog of Rs 11.4 bn at the
Total assets Rs m 5,947 8,342 11,778 end of March 2008, which was 50% higher as compared to the previous year.
Interest coverage x 13.1 10.5 28.2
Debt to equity ratio x 0.2 0.2 0.1 The growth prospects of BSL are closely linked to the level of infrastructure activity in
Sales to assets ratio x 2.0 1.9 1.9 the country. With strong investments in the organised retail space (which includes
Return on assets % 28.0 32.7 60.9 restaurants, entertainment centres, departmental stores) continuing to flow, the
Return on equity % 28.9 33.8 66.4 growth opportunity for BSL continue to remain healthy. Also, the development of
Return on capital % 38.4 41.3 83.0 export oriented zones and software parks will be big positives for the company. The
Exports to sales % 5.4 5.5 6.5 other side of its business, i.e., industrial air conditioning is also witnessing a strong
Imports to sales % 10.1 12.9 13.5 traction on the back of large investments in the manufacturing and power sectors.
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83
 Regd off: 6th Floor, CG House, Dr. Annie Besant Road, Worli, Mumbai - 30
CROMPTON GREAVES LIMITED E-Mail: avinash.patil@cgl.co.in
Web site: www.cglonline.com
Telephone: (022) 2423 7804 Fax: (022) 2423 7788
CAPITAL GOODS THAPAR Tr agent: Sharepro Services, 912, Raheja Centre, Free Press Jnl. Rd, Mumbai - 21
Chairman: G. Thapar SEC: W. Henriques AUD: Sharp & Tannan
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1947 500093 CRG:IN 2 256.1 -0.6 -16.4 23.1 17.4 0.6 93,878.6 73.5 INE067A01029
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 39.2% Exports (fob) Rs m 7,564
Foreign collaborators : 0.0% Imports (cif) Rs m 3,371 (Rs)
Indian inst/Mut Fund : 24.3% Fx inflow Rs m 7,572 550
FIIs/GDR : 16.2% Fx outflow Rs m 3,687
Free float : 20.3% Net fx Rs m 3,885
Shareholders : 66,880
425
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
300
High Rs 1,150 234 454
Low Rs 416 102 183
Sales per share Rs 787.8 153.8 186.4
Earnings per share Rs 44.5 7.7 11.1 175 DAILY
Cash flow per share Rs 58.9 10.3 14.7
Dividends per share Rs 7.00 1.40 1.60 100 DMA
Dividend yield (eoy) % 0.9 0.8 0.5
50
Book value per share Rs 149.9 26.4 35.5
Shares outstanding (eoy) m 52.38 366.57 366.57 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - FV2,B2:5 -
Price / Sales ratio x 1.0 1.1 1.7 No. of months 12 12 12
Avg P/E ratio x 17.6 21.9 28.7 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 13.3 16.2 21.7
Price / Book Value ratio x 5.2 6.4 9.0 From Operations Rs m 1,959 3,789 5,520
Dividend payout % 15.7 18.2 14.4 From Investments Rs m -1,026 -7,245 -3,201
Avg Mkt Cap Rs m 41,014 61,584 116,797 From Financial Activity Rs m 471 3,798 -2,289
No. of employees `000 NA NA NA Net Cashflow Rs m 1,404 341 30
Total wages/salary Rs m 5,504 7,145 7,920
Avg. sales/employee Rs Th NA NA NA INTERIM RESULTS
Avg. wages/employee Rs Th NA NA NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA NA NA Net sales Rs m 9,925 9,999 11,595 10,829
Gross profit Rs m 1,069 1,160 1,565 1,381
INCOME DATA Gross profit margin % 10.8 11.6 13.5 12.8
Net Sales Rs m 41,265 56,395 68,324 Net profit Rs m 742 679 1,030 889
Other income Rs m 674 1,068 757 Net profit margin % 7.5 6.8 8.9 8.2
Total revenues Rs m 41,939 57,463 69,081
Gross profit Rs m 3,326 4,837 7,456 KEY DATA
Depreciation Rs m 756 974 1,317 Parameters Unit FY06 FY07 FY08
Interest Rs m 381 583 781 Power system % of sales 64.7 67.2 67.2
Profit before tax Rs m 2,863 4,348 6,115 Consumer products % of sales 19.1 16.7 16.2
Minority Interest Rs m -32 -47 -48 Industrial system % of sales 15.4 14.7 15.0
Prior Period Items Rs m 0 0 0 Others % of sales 0.9 1.3 1.6
Extraordinary Inc (Exp) Rs m -49 12 54 Exports % of sales 47.3 48.4 40.5
Tax Rs m 453 1,495 2,054
NOTES
Profit after tax Rs m 2,329 2,818 4,067
Gross profit margin % 8.1 8.6 10.9 Crompton Greaves (CGL) is a leading player in the power transmission and
Effective tax rate % 15.8 34.4 33.6 distribution (T&D) equipment and services business in India. The company is India's
largest private sector enterprise engaged in designing, manufacturing and marketing
Net profit margin % 5.6 5.0 6.0
high technology electrical products and services related to power generation,
BALANCE SHEET DATA transmission, distribution as well as executing turnkey projects. CGL is organised into
three business groups viz. Power Systems, Industrial Systems, Consumer Products.
Current assets Rs m 21,188 29,430 34,016 Presently, the company is offering wide range of products such as power and
Current liabilities Rs m 15,476 22,348 26,423 industrial transformers, high-tension circuit breakers, railway signaling equipments,
Net working cap to sales % 13.8 12.6 11.1 lighting products, fans, pumps and public switching, transmission and access
Current ratio x 1.4 1.3 1.3 products. CGL acquired Pauwels (Belgium) in FY06 and Ganz (Hungary) in FY07.
Inventory Turnover Days 53 59 57 These developments led CGL to be amongst the top ten T&D equipment companies
Debtors Turnover Days 97 92 92 in the world.
Net fixed assets Rs m 5,403 10,873 12,444
Share capital Rs m 524 733 733 CGL's consolidated topline grew by 21% YoY in FY08, which was led by a stable
"Free" reserves Rs m 5,274 7,341 10,602 growth in its power and industrial systems businesses. These segments grew by 21%
YoY and 23% YoY respectively. The company's consumer products division's
Net worth Rs m 7,854 9,688 13,018
revenues increased by 17% YoY during the year. On the operating margins front, the
Long term debt Rs m 3,798 2,362 7,107
same expanded from 8.6% in FY07 to 10.9% in FY08, aided by lower raw material
Total assets Rs m 27,242 40,946 47,395 and staff costs. At the end of the fiscal, the power business' order backlog stood at
Interest coverage x 8.5 8.5 8.8 Rs 47 bn, which was marginally lower than the segment's FY08 revenues.
Debt to equity ratio x 0.5 0.2 0.5
Sales to assets ratio x 1.5 1.4 1.4 During the fiscal, the order intake for CGL remained a bit sluggish, growing by only
Return on assets % 23.3 28.2 24.1 14% YoY. This was mainly due to delays in orders from its largest client, Power Grid
Return on equity % 29.7 29.1 31.2 Corporation of India in the domestic market. Similar was the case for some of its
Return on capital % 27.1 40.6 34.3 international subsidiaries. Going forward, the recent acquisitions are expected to lead
Exports to sales % 11.3 10.9 11.1 the company's growth, especially on the profitability front.
Imports to sales % 4.4 6.0 4.9
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84
 Regd off: Kothrud, Pune - 411 038
CUMMINS INDIA LIMITED E-Mail: pradip.s.phansalkar@cummins.com
Web site: www.cumminsindia.com
Telephone: (020) 2538 5435 Fax: (020) 2538 0125
CAPITAL GOODS MNC Tr agent: Intime Spectrum, C13, Pannalal Silk Mills Cmpd., LBS Marg, Mumbai - 78
Chairman: Anant J. Talaulicar SEC: Dinesh Castellino (Legal) AUD: Price Waterhouse
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1962 500480 KKC:IN 2 315.4 2.8 -20.5 19.2 17.2 1.5 62,439.3 2.5 INE298A01020
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 7,239
Foreign collaborators : 51.0% Imports (cif) Rs m 3,819 (Rs)
Indian inst/Mut Fund : 17.4% Fx inflow Rs m 7,420 520
FIIs/GDR : 15.5% Fx outflow Rs m 4,223
Free float : 16.1% Net fx Rs m 3,197
Shareholders : 26,804
415
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
310
High Rs 269 306 463
Low Rs 105 143 252
Sales per share Rs 89.6 107.2 134.1
Earnings per share Rs 9.3 13.5 16.4 205 DAILY
Cash flow per share Rs 11.2 15.5 18.3
Dividends per share Rs 4.00 4.00 4.60 100 DMA
Dividend yield (eoy) % 2.1 1.8 1.3
100
Book value per share Rs 43.1 51.6 62.3
Shares outstanding (eoy) m 198.00 198.00 198.00 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 2.1 2.1 2.7 No. of months 12 12 12
Avg P/E ratio x 20.2 16.6 21.8 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 16.6 14.5 19.5
Price / Book Value ratio x 4.3 4.4 5.7 From Operations Rs m 1,633 2,140 2,786
Dividend payout % 43.1 29.6 28.0 From Investments Rs m -354 -645 -2,085
Avg Mkt Cap Rs m 37,026 44,451 70,785 From Financial Activity Rs m -1,258 -1,070 -1,008
No. of employees `000 2 3 2 Net Cashflow Rs m 21 425 -308
Total wages/salary Rs m 1,395 1,541 1,781
Avg. sales/employee Rs Th 7,927.6 8,208.8 11,596.5 INTERIM RESULTS
Avg. wages/employee Rs Th 623.0 595.9 777.7 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 820.5 1,036.3 1,418.8 Net sales Rs m 5,282 5,902 6,700 7,070
Gross profit Rs m 726 866 736 938
INCOME DATA Gross profit margin % 13.7 14.7 11.0 13.3
Net Sales Rs m 17,750 21,228 26,556 Net profit Rs m 665 746 756 883
Other income Rs m 475 678 1,024 Net profit margin % 12.6 12.6 11.3 12.5
Total revenues Rs m 18,225 21,906 27,580
Gross profit Rs m 2,687 3,659 3,997 KEY DATA
Depreciation Rs m 390 381 383 Parameters Unit FY06 FY07 FY08
Interest Rs m 45 65 25 Engine revenues % of sales 91.7 91.7 87.5
Profit before tax Rs m 2,727 3,891 4,613 Engine PBIT % of sales 13.0 15.4 14.2
Minority Interest Rs m 0 0 0 Raw material costs % of sales 53.6 55.8 56.4
Prior Period Items Rs m -34 -23 -2 Employee costs % of sales 7.9 7.3 6.7
Extraordinary Inc (Exp) Rs m 12 30 32 Purchase of goods for resale % of sales 12.4 11.0 12.2
Tax Rs m 868 1,218 1,394
NOTES
Profit after tax Rs m 1,837 2,680 3,249
Gross profit margin % 15.1 17.2 15.1 Cummins India Limited (CIL) is a 51% subsidiary of Cummins Inc. US, the world's
Effective tax rate % 31.8 31.3 30.2 largest independent diesel engine designer and manufacturer of above 200 HP
(horsepower) engines. Set up in 1962, CIL is India's leading manufacturer of diesel
Net profit margin % 10.3 12.6 12.2
engines with a range from 205 HP to 2,365 HP serving the power generation,
BALANCE SHEET DATA industrial and automotive markets. CIL also offers solutions to the growing market for
gas and dual fuel engines in addition to leasing of gensets and allied equipment.
Current assets Rs m 8,415 10,202 12,125 During the fiscal, the company amalgamated its two companies, Cummins Sales &
Current liabilities Rs m 4,102 5,041 7,206 Service India and Cummins Auto Services, which are present in the businesses of
Net working cap to sales % 24.3 24.3 18.5 engine and generator sales and after sales services and retailing of commercial
Current ratio x 2.1 2.0 1.7 vehicles parts and accessories, respectively.
Inventory Turnover Days 57 59 52
Debtors Turnover Days 83 77 80 In FY08, CIL recorded a 25% YoY and 21% YoY growth in net sales and profits
Net fixed assets Rs m 1,920 2,100 2,744 respectively. Its operating margins contracted by 2.2% while profits margins almost
Share capital Rs m 396 396 396 remained flat. The growth in the company's sales was mainly on account of a strong
"Free" reserves Rs m 8,130 9,811 11,945 performance from all its three divisions of power, automotive and industrial solutions.
To put things in perspective, the company's power generation business grew by 24%
Net worth Rs m 8,526 10,207 12,341
YoY, industrial business by 27% YoY and automotive segment by 152% YoY in FY08.
Long term debt Rs m 38 89 307
The company's exports grew by 20% YoY, contributing nearly 28% to CIL's revenues
Total assets Rs m 13,069 15,498 19,740 in FY08.
Interest coverage x 61.6 60.9 185.5
Debt to equity ratio x 0.0 0.0 0.0 During the last fiscal, CIL expanded capacities for its power generation and industrial
Sales to assets ratio x 1.4 1.4 1.3 segment. The company also plans to expand its capacity in the automotive segment,
Return on assets % 22.0 26.7 25.9 mainly towards setting up a facility for high power engines used in commercial
Return on equity % 21.5 26.3 26.3 vehicles. These expansion plans are part of the company's aim to double its revenues
Return on capital % 32.1 38.5 36.9 by 2010. While the country's industrial growth is expected to provide big growth
Exports to sales % 29.9 28.5 27.3 opportunities for established players like Cummins, several factors such as rising
Imports to sales % 16.0 15.7 14.4 input costs and attrition rates are likely to be the primary concerns going forward.
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85
 Regd off: N-104, MIDC Area, Jalgoan, Maharashtra - 425 003
EMCO LIMITED E-Mail: investorgrievance@emcoindia.com
Web site: www.emcoindia.com
Telephone: (022) 4040 4500 Fax: (022) 2582 0571
CAPITAL GOODS MISCELLANEOUS Tr agent: Intime Spectrum, C13, Pannalal Silk Mills Cmpd., LBS Marg, Mumbai - 78
Chairman: Rajesh S. Jain SEC: William Fernandes AUD: P. Raj & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1964 504008 EMCO:IN 2 112.6 -1.3 -50.5 10.3 8.9 1.2 6,622.4 11.6 INE078A01026
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 33.4% Exports (fob) Rs m 812
Foreign collaborators : 0.0% Imports (cif) Rs m 718 (Rs)
Indian inst/Mut Fund : 32.8% Fx inflow Rs m 925 350
FIIs/GDR : 3.9% Fx outflow Rs m 802
Free float : 29.8% Net fx Rs m 123
Shareholders : 7,652
275
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
200
High Rs 844 903 330
Low Rs 290 320 150
Sales per share Rs 513.2 642.4 160.5
Earnings per share Rs 24.2 39.8 10.9 125
Cash flow per share Rs 31.4 45.6 12.6 DAILY
Dividends per share Rs 3.00 5.00 1.40 100 DMA
Dividend yield (eoy) % 0.5 0.8 0.6
50
Book value per share Rs 169.9 293.0 67.3
Shares outstanding (eoy) m 7.90 10.21 58.84 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions GDR,PA PP FV2
Price / Sales ratio x 1.1 1.0 1.5 No. of months 12 12 12
Avg P/E ratio x 23.5 15.4 22.0 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 18.1 13.4 19.1
Price / Book Value ratio x 3.3 2.1 3.6 From Operations Rs m -239 -335 620
Dividend payout % 12.4 12.6 12.8 From Investments Rs m -42 -604 -1,556
Avg Mkt Cap Rs m 4,479 6,243 14,122 From Financial Activity Rs m 190 1,858 1,213
No. of employees `000 1 1 2 Net Cashflow Rs m -90 919 277
Total wages/salary Rs m 136 202 304
Avg. sales/employee Rs Th 4,054.0 5,061.0 5,554.1 INTERIM RESULTS
Avg. wages/employee Rs Th 136.0 155.9 178.8 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 191.0 313.3 378.2 Net sales Rs m 1,842 2,434 3,422 1,833
Gross profit Rs m 251 328 487 239
INCOME DATA Gross profit margin % 13.6 13.5 14.2 13.0
Net Sales Rs m 4,054 6,559 9,442 Net profit Rs m 104 151 291 99
Other income Rs m 9 47 91 Net profit margin % 5.6 6.2 8.5 5.4
Total revenues Rs m 4,063 6,606 9,533
Gross profit Rs m 458 866 1,292 KEY DATA
Depreciation Rs m 57 60 98 Parameters Unit FY06 FY07 FY08
Interest Rs m 126 244 331 Transformers % of sales 71.5 74.1 65.1
Profit before tax Rs m 284 609 954 Electronic energy meters % of sales 6.2 7.0 5.6
Minority Interest Rs m 0 0 0 Projects & services % of sales 21.7 18.0 24.5
Prior Period Items Rs m 0 14 -5 Number of employees Nos. 1,000 1,296 1,700
Extraordinary Inc (Exp) Rs m 0 0 0 Revenue per employee Rs m 4.1 5.1 5.6
Tax Rs m 93 217 306
NOTES
Profit after tax Rs m 191 406 643
Gross profit margin % 11.3 13.2 13.7 Emco is one of the leading domestic players in the Indian power transmission and
Effective tax rate % 32.7 35.6 32.1 distribution front with a presence in the 132 KV to 400 KV transformers and electronic
meters businesses. It also undertakes turnkey projects of setting up sub-stations for
Net profit margin % 4.7 6.2 6.8
state electricity boards. During FY08, EMCO made its foray into the transmission line
BALANCE SHEET DATA business by acquiring Urja Engineers Ltd, a Baroda based transmission tower
manufacturing company with an installed capacity of 20,000 tonnes per annum.
Current assets Rs m 3,546 6,734 8,170 During FY08, the transformer business formed around 65% of the company's net
Current liabilities Rs m 1,675 3,006 3,365 sales, while the electronic meters and projects business (including transmission lines
Net working cap to sales % 46.2 56.8 50.9 division) contributed 5% and 30% respectively.
Current ratio x 2.1 2.2 2.4
Inventory Turnover Days 96 87 52 During FY08, Emco's sales grew by 44% YoY, led by robust performance from the
Debtors Turnover Days 193 202 161 transformer and projects businesses. Operating margins expanded to 13.7%, from
Net fixed assets Rs m 595 856 2,188 13.2% in FY06, which was mainly due to stock related adjustments. However, the
Share capital Rs m 76 102 118 company did feel some pressure on the input costs front, as its raw material
"Free" reserves Rs m 1,254 2,865 3,644 expenses (as a percentage of sales) increased to 82% from 79% in FY07. Led by a
strong operating performance, Emco recorded a 59% YoY jump in its net profits.
Net worth Rs m 1,342 2,992 3,960
Long term debt Rs m 187 257 935 The growth of power equipment manufacturers will continue to be based on the
Total assets Rs m 4,151 7,885 10,552 investment environment in the Indian T&D sector. With the investment scenario in the
Interest coverage x 3.3 3.5 3.9 T&D space witnessing strong momentum, companies such as Emco, which have a
Debt to equity ratio x 0.1 0.1 0.2 strong presence across the T&D value chain, have seen their fortunes soaring in the
Sales to assets ratio x 1.0 0.8 0.9 past 3-4 years. During the period FY04 to FY08, Emco has grown its net sales and
Return on assets % 20.7 20.0 19.9 profits at compounded annual rate of 57% and 100% respectively. Further, the
Return on equity % 14.2 13.6 16.2 company also plans to foray into the African region to garner opportunities from the
Return on capital % 26.8 26.7 26.1 infrastructure spending in the continent. The company also plans to enter the power
Exports to sales % 10.2 8.0 8.6 generation segment going forward. This will not only help Emco boost its revenues,
Imports to sales % 5.1 10.1 7.6 but will also help it in diversifying its risk across segments.
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86
 Regd off: 26/27, Mumbai - Pune Road, Pimpri, Pune - 411 018
FINOLEX CABLES LIMITED E-Mail: Dsilva_RG@finolex.com
Web site: www.finolex.com
Telephone: (020) 2747 5963 Fax: (020) 2747 2239
CAPITAL GOODS CHHABRIA P.P. Tr agent: Finolex Industries Ltd., D-1/10, MIDC, Chinchwad, Pune - 411 019
Chairman: P. P. Chhabria SEC: R. G. D'Silva (Asst. VP - Legal) AUD: B. K. Khare & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1967 500144 FNXC:IN 2 50.9 -7.1 -33.2 8.7 6.7 2.9 7,777.0 19.6 INE235A01022
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 33.1% Exports (fob) Rs m 779
Foreign collaborators : 0.0% Imports (cif) Rs m 1,566 (Rs)
Indian inst/Mut Fund : 16.1% Fx inflow Rs m 795 140
FIIs/GDR : 6.4% Fx outflow Rs m 1,611
Free float : 44.4% Net fx Rs m -816
Shareholders : 37,277
110
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
80
High Rs 361 110 134
Low Rs 176 44 59
Sales per share Rs 244.5 67.5 90.5
Earnings per share Rs 14.8 4.5 5.8 50
Cash flow per share Rs 25.0 6.2 7.5
DAILY
Dividends per share Rs 6.00 1.40 1.50 100 DMA
Dividend yield (eoy) % 2.2 1.8 1.6
20
Book value per share Rs 175.3 37.9 41.9
Shares outstanding (eoy) m 30.59 152.94 152.94 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - FV2 -
Price / Sales ratio x 1.1 1.1 1.1 No. of months 12 12 12
Avg P/E ratio x 18.2 17.1 16.6 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 10.7 12.3 12.8
Price / Book Value ratio x 1.5 2.0 2.3 From Operations Rs m -212 1,076 970
Dividend payout % 40.6 31.0 25.8 From Investments Rs m 82 -903 -695
Avg Mkt Cap Rs m 8,213 11,776 14,759 From Financial Activity Rs m 133 211 488
No. of employees `000 1 1 1 Net Cashflow Rs m 3 384 763
Total wages/salary Rs m 326 355 497
Avg. sales/employee Rs Th 8,756.4 9,951.8 10,515.2 INTERIM RESULTS
Avg. wages/employee Rs Th 381.7 342.0 377.7 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 529.3 664.7 675.5 Net sales Rs m 3,341 3,241 4,232 4,018
Gross profit Rs m 391 321 206 476
INCOME DATA Gross profit margin % 11.7 9.9 4.9 11.8
Net Sales Rs m 7,478 10,330 13,838 Net profit Rs m 226 203 100 416
Other income Rs m 284 196 341 Net profit margin % 6.8 6.3 2.4 10.4
Total revenues Rs m 7,762 10,526 14,179
Gross profit Rs m 760 1,186 1,316 KEY DATA
Depreciation Rs m 313 264 265 Parameters Unit FY06 FY07 FY08
Interest Rs m 114 148 189 Electrical cables % of sales 66.8 68.6 58.6
Profit before tax Rs m 617 970 1,203 Communications cables % of sales 22.1 14.9 19.3
Minority Interest Rs m 0 0 0 Copper rods % of sales 9.6 12.9 18.0
Prior Period Items Rs m 0 0 0 Raw material costs % of sales 74.3 75.8 77.6
Extraordinary Inc (Exp) Rs m -52 0 0 Copper % of R.M. 71.9 79.1 79.8
Tax Rs m 113 280 314
NOTES
Profit after tax Rs m 452 690 889
Gross profit margin % 10.2 11.5 9.5 Finolex Cables Ltd (FCL), the flagship company of the Finolex Group, is one of India's
Effective tax rate % 18.3 28.9 26.1 largest and leading manufacturers of electrical and telecommunication cables. The
company's product line includes PVC insulated cables, jelly filled telephone cables,
Net profit margin % 6.0 6.7 6.4
light duty electrical cables, copper rods and power cables, among others. During the
BALANCE SHEET DATA year, the company expanded its product line and ventured into high power cables,
electrical switches and compact fluorescent lamps. FCL also manufactures PVC
Current assets Rs m 6,345 6,594 7,379 sheets, which are used for applications such as roofing and signage. It's
Current liabilities Rs m 3,438 3,844 4,866 manufacturing facilities are based in Pune and Goa.
Net working cap to sales % 38.9 26.6 18.2
Current ratio x 1.8 1.7 1.5 During FY08, FCL grew its revenues by 34% YoY and the net profits by 29% YoY.
Inventory Turnover Days 102 68 62 Revenue growth was largely led by a strong increase in its communications cables
Debtors Turnover Days 37 28 28 and copper rods sales. However, the electrical cables division continues to be the
Net fixed assets Rs m 2,288 3,079 3,784 largest revenue contributor, adding almost 60% to the revenues. During FY08, the
Share capital Rs m 306 306 306 company recorded margins of 9.6%, which was lower by 2% as compared to the
"Free" reserves Rs m 4,871 5,211 5,775 previous year. This was due to an increase in raw material prices as a percentage of
sales. However, higher other income, lower depreciation and tax outgo helped the
Net worth Rs m 5,361 5,801 6,415
company to achieve a net profit margin of 6.4% as compared to 6.7% in the previous
Long term debt Rs m 524 1,374 1,723
year.
Total assets Rs m 11,356 12,506 14,332
Interest coverage x 6.4 7.6 7.4 The macro environment for cable sector, both electrical and telecommunications is
Debt to equity ratio x 0.1 0.2 0.3 very strong on the back of improved investment scenario in the country. Large
Sales to assets ratio x 0.7 0.8 1.0 investments in power and telecom sector are expected to be the growth drivers for
Return on assets % 9.6 11.7 13.2 FCL in the future. Also, the fact that the company has entered new business
Return on equity % 8.4 11.9 13.9 segments will work in favour for the company, as it will help it de-risk its product
Return on capital % 11.5 15.6 17.1 profile. However, being a manufacturing company, FCL does face the risk of the rising
Exports to sales % 4.9 6.5 5.6 raw material costs.
Imports to sales % 14.9 11.3 11.3
GET MORE INFO AT WWW.EQUITYMASTER.COM

87
 Regd off: 1/7, Ram Kishore Road, Civil Lines, Delhi - 110 054
HAVELLS INDIA LIMTED E-Mail: investors@havells.com
Web site: www.havells.com
Telephone: (0120) 307 5777 Fax: (0120) 247 7666
CAPITAL GOODS MISCELLANEOUS Tr agent: MCS, Sri Venkatesh Bhawan, W-40, Okhla Indl. Area, New Delhi - 20
Chairman: Qimat Rai Gupta SEC: Ritu Mehrotra AUD: V. P. Bansal & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1958 517354 HAVL:IN 5 358.8 -4.4 -31.1 12.9 9.0 0.7 20,778.8 18.0 INE176B01026
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 62.5% Exports (fob) Rs m 1,415
Foreign collaborators : 0.0% Imports (cif) Rs m 3,010 (Rs)
Indian inst/Mut Fund : 4.5% Fx inflow Rs m 1,469 820
FIIs/GDR : 16.7% Fx outflow Rs m 3,052
Free float : 16.3% Net fx Rs m -1,583
Shareholders : 23,783
645
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
470
High Rs 643 784 747
Low Rs 249 256 355
Sales per share Rs 401.2 285.6 860.5
Earnings per share Rs 25.4 19.0 27.8 295
Cash flow per share Rs 28.0 20.8 39.8 DAILY
Dividends per share Rs 2.50 2.50 2.50 100 DMA
Dividend yield (eoy) % 0.6 0.5 0.5
120
Book value per share Rs 70.7 48.4 116.1
Shares outstanding (eoy) m 24.89 53.76 57.92 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions B1:1,DC B1:1,OI PP
Price / Sales ratio x 1.1 1.8 0.6 No. of months 12 12 12
Avg P/E ratio x 17.6 27.4 19.8 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 15.9 25.0 13.9
Price / Book Value ratio x 6.3 10.7 4.7 From Operations Rs m 1,427 2,070 -239
Dividend payout % 9.8 13.2 9.0 From Investments Rs m -626 -988 -7,693
Avg Mkt Cap Rs m 11,101 27,955 31,914 From Financial Activity Rs m -800 -787 9,192
No. of employees `000 3 3 NA Net Cashflow Rs m 1 294 1,260
Total wages/salary Rs m 741 895 8,269
Avg. sales/employee Rs Th 3,994.4 5,686.3 NA INTERIM RESULTS
Avg. wages/employee Rs Th 296.4 331.5 NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 252.8 378.1 NA Net sales Rs m 12,165 13,413 13,758 14,042
Gross profit Rs m 750 990 810 1,016
INCOME DATA Gross profit margin % 6.2 7.4 5.9 7.2
Net Sales Rs m 9,986 15,353 49,838 Net profit Rs m 297 445 469 496
Other income Rs m 85 175 435 Net profit margin % 2.4 3.3 3.4 3.5
Total revenues Rs m 10,071 15,528 50,273
Gross profit Rs m 944 1,288 3,184 KEY DATA
Depreciation Rs m 65 97 694 Parameters Unit FY06 FY07 FY08
Interest Rs m 180 161 939 Switchgears % of sales 29.5 25.4 10.9
Profit before tax Rs m 784 1,205 1,986 Cable & wire % of sales 41.6 46.1 20.5
Minority Interest Rs m 0 0 0 Electrical consumer durables % of sales 24.5 10.1 4.6
Prior Period Items Rs m 0 0 0 Lighting & Fixtures % of sales NA 14.2 62.4
Extraordinary Inc (Exp) Rs m 1 0 0 Raw material costs % of sales 58.0 63.7 54.2
Tax Rs m 153 184 377
NOTES
Profit after tax Rs m 632 1,021 1,609
Gross profit margin % 9.5 8.4 6.4 Havells India is one of the largest electrical and power distribution equipment
Effective tax rate % 19.5 15.3 19.0 company, manufacturing products ranging from building circuit protection, industrial &
domestic switchgear, cables & wires, energy meters, fans, CFL lamps, luminaires for
Net profit margin % 6.3 6.7 3.2
domestic, commercial & industrial application and modular switches. Havells owns
BALANCE SHEET DATA some of the prestigious global brands like Crabtree, Sylvania, Concord, Lumiance,
Claude, Sylvania:Linolite, SLI Lighting & Zenith. During the year, Havells' acquired
Current assets Rs m 3,716 3,646 23,229 SLI Sylvania's lighting business for a consideration of US$ 300 m. As a matter of fact,
Current liabilities Rs m 2,326 2,818 15,142 Sylvania is one of the largest lighting companies globally. Further, the company set
Net working cap to sales % 13.9 5.4 16.2 up its motor plant in Rajasthan, with capabilities to manufacture energy efficient
Current ratio x 1.6 1.3 1.5 motors, ranging from 0.12 HP to 300 HP with an installed capacity of 15,000 motors
Inventory Turnover Days 70 57 76 per month.
Debtors Turnover Days 47 7 60
Net fixed assets Rs m 1,532 2,423 8,323 During FY08, Havell's grew its consolidated net sales by 223% YoY. This quantum
Share capital Rs m 124 269 290 jump was mainly due the acquisition, which the company made during the year.
"Free" reserves Rs m 1,574 2,303 6,323 Operating margins, however contracted by 2.5% to 6.9% on the back of higher
employee costs, which increased from being 3.3% of sales in FY07 to 15.2% in the
Net worth Rs m 1,760 2,603 6,722
latest fiscal. Net profits grew by 58% YoY. However, higher depreciation and interest
Long term debt Rs m 999 426 11,489
costs led to a further contraction in net profit margins, wherein the company clocked
Total assets Rs m 5,280 6,100 31,583 a margin of 3.2%, as against 6.6% in FY07.
Interest coverage x 5.4 8.5 3.1
Debt to equity ratio x 0.6 0.2 1.7 The new Havells-Sylvania combination is likely to strengthen the company's position
Sales to assets ratio x 1.9 2.5 1.6 in the markets it already serves with large product offerings. Further, the company is
Return on assets % 29.4 39.0 14.0 also targeting to pursue newer possibilities across the globe. With this acquisition,
Return on equity % 35.9 39.2 23.9 Havell's will also get access to a strong brand and distribution network with over
Return on capital % 35.0 45.1 16.1 10,000 distributors/dealers spread across the globe. However, raw materials and
Exports to sales % 7.3 6.2 2.8 competition from other global players will remain the key concerns for the company
Imports to sales % 9.7 7.8 6.0 going forward.
GET MORE INFO AT WWW.EQUITYMASTER.COM

88
 Regd off: Valecha Chamber, 6th flr., New Link Rd., Andheri (W), Mumbai -400 053
JYOTI STRUCTURES LTD E-Mail: contact@jsl.co.in
Web site: www.jsl.co.in
Telephone: (020) 4091 5000 Fax: (020) 4091 5014
CAPITAL GOODS MISCELLANEOUS Tr agent: Big Share Services, E/2, Ansa Indl. Estate, Saki Naka, Mumbai - 72
Chairman: S. D. Kshirsagar SEC: L. H. Khilnani AUD: R. M. Ajgaonkar & Associates
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1980 513250 JYS:IN 2 130.0 5.1 -41.9 15.2 13.8 0.6 10,637.9 17.1 INE197A01024
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 26.9% Exports (fob) Rs m 3,553
Foreign collaborators : 0.0% Imports (cif) Rs m 568 (Rs)
Indian inst/Mut Fund : 19.2% Fx inflow Rs m 3,553 340
FIIs/GDR : 24.6% Fx outflow Rs m 610
Free float : 29.2% Net fx Rs m 2,943
Shareholders : 16,176
260
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
180
High Rs 590 195 328
Low Rs 168 59 143
Sales per share Rs 498.8 118.2 165.8
Earnings per share Rs 18.7 6.8 8.6 100
Cash flow per share Rs 22.7 7.5 9.5 DAILY
Dividends per share Rs 2.00 0.60 0.80 100 DMA
Dividend yield (eoy) % 0.5 0.5 0.3
20
Book value per share Rs 83.5 33.2 41.4
Shares outstanding (eoy) m 13.82 80.71 81.20 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - FV2,WC,PP ESOP
Price / Sales ratio x 0.8 1.1 1.4 No. of months 12 12 12
Avg P/E ratio x 20.3 18.7 27.4 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 16.7 16.9 24.8
Price / Book Value ratio x 4.5 3.8 5.7 From Operations Rs m -96 -384 94
Dividend payout % 10.7 8.8 9.3 From Investments Rs m -222 -173 -164
Avg Mkt Cap Rs m 5,238 10,250 19,123 From Financial Activity Rs m 183 611 117
No. of employees `000 NA NA NA Net Cashflow Rs m -135 54 47
Total wages/salary Rs m 193 277 358
Avg. sales/employee Rs Th NA NA NA INTERIM RESULTS
Avg. wages/employee Rs Th NA NA NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA NA NA Net sales Rs m 3,182 3,455 4,101 4,016
Gross profit Rs m 398 438 515 480
INCOME DATA Gross profit margin % 12.5 12.7 12.6 12.0
Net Sales Rs m 6,893 9,539 13,462 Net profit Rs m 169 202 192 205
Other income Rs m 121 194 292 Net profit margin % 5.3 5.8 4.7 5.1
Total revenues Rs m 7,014 9,733 13,754
Gross profit Rs m 634 1,098 1,481 KEY DATA
Depreciation Rs m 56 59 72 Parameters Unit FY06 FY07 FY08
Interest Rs m 259 329 467 Power transmission % of sales 99.8 99.5 100.0
Profit before tax Rs m 440 904 1,234 Power trans. EBIT margins % 10.3 12.4 12.4
Minority Interest Rs m 0 0 0 Raw material costs % of sales 63.8 56.0 65.3
Prior Period Items Rs m 0 -5 -46 Sub-contracting charges % of sales 15.6 14.8 12.4
Extraordinary Inc (Exp) Rs m 0 -22 0
Tax Rs m 182 328 489
NOTES
Profit after tax Rs m 258 549 699
Gross profit margin % 9.2 11.5 11.0 Jyoti Structures Limited (JSL) is one of the largest transmission and distribution
Effective tax rate % 41.4 36.3 39.6 companies in India. It provides EPC services such as designing, engineering,
manufacturing, tower testing, construction and project management of transmission
Net profit margin % 3.7 5.8 5.2
towers and sub-stations. Having executed projects in South East Asia, Middle East,
BALANCE SHEET DATA Australia, the Americas and Africa, JSL has considerable amount of global presence
and experience. The company has executed projects in over 36 countries. During the
Current assets Rs m 4,855 6,499 8,210 period FY04 to FY08, the company has grown its sales and profits at compounded
Current liabilities Rs m 2,711 2,882 3,326 annual rates of 46% and 103% respectively.
Net working cap to sales % 31.1 37.9 36.3
Current ratio x 1.8 2.3 2.5 FY08 saw JSL recording 41% YoY and 32% YoY growth in sales and profits
Inventory Turnover Days 65 31 22 respectively. Higher sales volumes and capacity expansion led to this strong growth.
Debtors Turnover Days 132 139 136 However, on the margins front, the company witnessed a fall in operating and profit
Net fixed assets Rs m 572 605 699 margins by 0.4%. This was mainly on account of higher raw material costs, which
Share capital Rs m 138 161 162 increased from 56% of sales in FY07 to almost 66% in FY08.
"Free" reserves Rs m 979 2,497 3,157
JSL's largest client, Power Grid Corporation of India is expected to invest over Rs 700
Net worth Rs m 1,154 2,681 3,362 bn in the next 4 to 5 years, while the respective State Transmission Corporations
Long term debt Rs m 197 113 469 have planned total investments between Rs 300 bn to 350 bn for expansion and
Total assets Rs m 5,528 7,226 9,005 improvements of the T&D infrastructure during the same period. This holds
Interest coverage x 2.7 3.7 3.6 tremendous opportunities for a T&D company like JSL. Also the fact that the company
Debt to equity ratio x 0.2 0.0 0.1 is focusing on opportunities in the international space through its initiatives hold
Sales to assets ratio x 1.2 1.3 1.5 strong prospects for the company going forward. JSL has 30% stake in the Gulf Jyoti
Return on assets % 38.3 31.4 30.4 International (UAE) and 70% in its South African JV.
Return on equity % 22.4 20.5 20.8
Return on capital % 51.7 43.2 43.2
Exports to sales % 0.0 8.5 26.4
Imports to sales % 8.9 4.0 4.2
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89
 Regd off: 1st Floor, CEAT Mahal, 463, Dr. Annie Besant Rd, Worli, Mumbai - 30
KEC INTERNATIONAL LIMITED. E-Mail: investorpoint@kecrpg.com
Web site: www.kecrpg.com
Telephone: (022) 6667 0200 Fax: (022) 6667 0260
CAPITAL GOODS MISCELLANEOUS Tr agent: Intime Spectrum, C13, Pannalal Silk Mills Cmpd., LBS Marg, Mumbai - 78
Chairman: H. V. Goenka SEC: Ch. V. Jagannadha Rao AUD: Deloitte Haskins & Sells
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1994 532714 KECI:IN 10 407.4 9.0 -31.8 11.7 10.2 1.2 20,098.6 15.0 INE389H01014
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 41.5% Exports (fob) Rs m 5,275
Foreign collaborators : 0.0% Imports (cif) Rs m 393 (Rs)
Indian inst/Mut Fund : 30.0% Fx inflow Rs m 17,398 950
FIIs/GDR : 12.9% Fx outflow Rs m 10,529
Free float : 15.6% Net fx Rs m 6,869
Shareholders : 44,969
750
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
550
High Rs 510 599 922
Low Rs 410 210 492
Sales per share Rs 458.3 541.4 570.4
Earnings per share Rs 13.1 27.8 34.9 350 DAILY
Cash flow per share Rs 20.2 36.6 40.0
Dividends per share Rs 1.20 4.50 5.00 100 DMA
Dividend yield (eoy) % 0.3 1.1 0.7
150
Book value per share Rs 46.2 68.7 98.3
Shares outstanding (eoy) m 37.69 37.69 49.34 Mar-06 Oct-06 Jun-07 Jan-08 Sep-08
Bonus/Rights/Conversions OI - A
Price / Sales ratio x 1.0 0.7 1.2 No. of months 12 12 12
Avg P/E ratio x 35.2 14.6 20.3 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 22.8 11.0 17.7
Price / Book Value ratio x 10.0 5.9 7.2 From Operations Rs m 1,157 -219 43
Dividend payout % 9.2 16.2 14.3 From Investments Rs m -325 -98 -318
Avg Mkt Cap Rs m 17,337 15,246 34,883 From Financial Activity Rs m -1,856 -99 556
No. of employees `000 2 2 3 Net Cashflow Rs m -1,024 -416 282
Total wages/salary Rs m 838 955 1,233
Avg. sales/employee Rs Th 10,467.9 8,872.6 11,258.0 INTERIM RESULTS
Avg. wages/employee Rs Th 507.9 415.2 493.2 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 298.8 455.2 688.8 Net sales Rs m 5,630 7,089 10,310 6,001
Gross profit Rs m 745 1,026 1,134 614
INCOME DATA Gross profit margin % 13.2 14.5 11.0 10.2
Net Sales Rs m 17,272 20,407 28,145 Net profit Rs m 339 523 607 255
Other income Rs m 49 18 7 Net profit margin % 6.0 7.4 5.9 4.2
Total revenues Rs m 17,321 20,425 28,152
Gross profit Rs m 1,622 2,518 3,544 KEY DATA
Depreciation Rs m 269 334 251 Parameters Unit FY06 FY07 FY08
Interest Rs m 637 603 681 Raw material costs % of sales 51.5 45.5 50.2
Profit before tax Rs m 765 1,599 2,619 Employee costs % of sales 4.6 4.7 4.4
Minority Interest Rs m 0 0 0 Sub-contracting charges % of sales 25.8 25.8 22.0
Prior Period Items Rs m 0 0 0 Order backlog Rs m NA 30,000 42,000
Extraordinary Inc (Exp) Rs m 0 0 0 Order backlog to sales x NA 1.5 1.5
Tax Rs m 272 552 897
NOTES
Profit after tax Rs m 493 1,047 1,722
Gross profit margin % 9.4 12.3 12.6 KEC International, which is part of the RPG Group, is one of the leading power
Effective tax rate % 35.6 34.5 34.2 transmission EPC companies in India. The company has a strong presence in design,
manufacture, supply and construction of turnkey projects of power transmission lines
Net profit margin % 2.9 5.1 6.1
of voltages upto 800 KV and in the execution of railway electrification projects. The
BALANCE SHEET DATA company also sets up sub-stations and power distribution networks, optical fiber
cables, provides telecom infrastructure services and maintains power transmission
Current assets Rs m 10,307 12,478 19,735 lines. The company has presence in nearly 40 countries. During FY08, KEC merged
Current liabilities Rs m 9,402 9,908 13,173 the erstwhile RPG Transmission and National Information Technologies with itself. As
Net working cap to sales % 5.2 12.6 23.3 RPG Transmission is also present in the similar business, this consolidation made
Current ratio x 1.1 1.3 1.5 KEC one of the largest transmission tower manufacturing companies in the world with
Inventory Turnover Days 26 27 27 an in-house capacity of 113,000 tonnes per annum.
Debtors Turnover Days 144 162 185
Net fixed assets Rs m 4,290 4,099 4,503 During FY08, KEC executed nearly 36 projects in both, the international and
Share capital Rs m 377 377 493 domestic arena. Its revenues and net profits grew by nearly 38% YoY and 64% YoY
"Free" reserves Rs m 1,365 2,213 3,619 in FY08. The topline growth was aided by execution of some large contracts. At the
end of March 2008, the company had an order backlog of Rs 42 bn (nearly 1.5 times
Net worth Rs m 1,742 2,590 4,848
its FY08 sales), which was higher by 40% as compared to the previous year.
Long term debt Rs m 3,099 3,861 5,918
Total assets Rs m 14,802 16,783 24,243 Acceleration of the reforms process, corporatisation of the state electricity boards
Interest coverage x 2.2 3.7 4.8 (SEBs), the Electricity Act of 2003, the ongoing APRDP (Accelerated Power Reforms
Debt to equity ratio x 1.8 1.5 1.2 & Development Program), focus on reduction of T&D losses, the development of the
Sales to assets ratio x 1.2 1.2 1.2 national transmission grid, and strong opportunities from the high growth regions
Return on assets % 23.3 25.6 22.3 such as the Middle East and North Africa are expected to be the main growth drivers
Return on equity % 28.3 40.4 35.5 for KEC going forward. However, rising input costs, project delays and execution
Return on capital % 29.0 34.1 30.7 continue remain the main concerns for it going forward.
Exports to sales % 10.3 19.5 18.7
Imports to sales % 3.8 1.0 1.4
GET MORE INFO AT WWW.EQUITYMASTER.COM

90
 Regd off: Plot No. 101,Part III, GIDC Estate, Sector 28, Gandhinagar, Gujarat -28
KALPATARU POWER TRANSMISSION LTD. E-Mail: kptl@kalpatarupower.com
Web site: www.kalpatarupower.com
Telephone: (079) 2321 4000 Fax: (079) 2321 1966
CAPITAL GOODS MISCELLANEOUS Tr agent: Intime Spectrum, Sudarshan Complx, Navrangpura, Ahmedabad - 09
Chairman: Mofatraj P. Munot SEC: Bajrang Ramdharani (GM - Finance) AUD: Kishan M. Mehta & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1981 522287 KPP:IN 10 807.4 -3.8 -45.8 13.0 10.5 0.9 21,394.8 16.0 INE220B01014
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 63.7% Exports (fob) Rs m 3,589
Foreign collaborators : 0.0% Imports (cif) Rs m 920 (Rs)
Indian inst/Mut Fund : 20.7% Fx inflow Rs m 3,792 2200
FIIs/GDR : 6.2% Fx outflow Rs m 1,866
Free float : 9.4% Net fx Rs m 1,926
Shareholders : 15,607
1700
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
1200
High Rs 2,013 1,325 2,040
Low Rs 435 541 971
Sales per share Rs 773.2 603.1 1,009.4
Earnings per share Rs 61.1 60.3 62.2 700
Cash flow per share Rs 69.2 67.2 76.7
DAILY
Dividends per share Rs 5.00 7.50 7.50 100 DMA
Dividend yield (eoy) % 0.4 0.8 0.5
200
Book value per share Rs 154.5 243.1 294.5
Shares outstanding (eoy) m 10.86 26.50 26.50 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - B1:1,PP -
Price / Sales ratio x 1.6 1.5 1.5 No. of months 12 12 12
Avg P/E ratio x 20.0 15.5 24.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 17.7 13.9 19.6
Price / Book Value ratio x 7.9 3.8 5.1 From Operations Rs m 230 -281 440
Dividend payout % 8.2 12.4 12.1 From Investments Rs m -1,111 -3,781 -190
Avg Mkt Cap Rs m 13,293 24,725 39,896 From Financial Activity Rs m 1,001 4,014 -189
No. of employees `000 1 1 2 Net Cashflow Rs m 121 -48 62
Total wages/salary Rs m 389 777 1,522
Avg. sales/employee Rs Th 7,633.6 13,318.3 17,832.7 INTERIM RESULTS
Avg. wages/employee Rs Th 353.6 647.5 1,014.7 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 603.6 1,332.5 1,098.0 Net sales Rs m 3,852 3,519 6,295 4,750
Gross profit Rs m 533 522 757 560
INCOME DATA Gross profit margin % 13.8 14.8 12.0 11.8
Net Sales Rs m 8,397 15,982 26,749 Net profit Rs m 322 303 504 290
Other income Rs m 55 123 251 Net profit margin % 8.4 8.6 8.0 6.1
Total revenues Rs m 8,452 16,105 27,000
Gross profit Rs m 1,138 2,563 3,105 KEY DATA
Depreciation Rs m 88 182 386 Parameters Unit FY06 FY07 FY08
Interest Rs m 161 284 485 Raw material costs % of sales 54.4 51.4 49.4
Profit before tax Rs m 944 2,220 2,485 Employee costs % of sales 4.6 4.9 5.7
Minority Interest Rs m 0 -17 -148 Transmission Towers (installed) MT 84,000 84,000 84,000
Prior Period Items Rs m -1 -14 -1 Transmission Towers(production) MT 62,452 78,404 79,531
Extraordinary Inc (Exp) Rs m 0 0 0
Tax Rs m 279 590 689
NOTES
Profit after tax Rs m 664 1,599 1,647
Gross profit margin % 13.6 16.0 11.6 Incorporated in 1981, Kalpataru Power Transmission (KPT) is one of India's leading
Effective tax rate % 29.6 26.6 27.7 engineering, procurement and construction (EPC) companies providing services to
the power transmission sector. KPT has its manufacturing facility in Gandhinagar,
Net profit margin % 7.9 10.0 6.2
Gujarat. The promoter of this firm (63% stake) is the Kalpataru Group, a Mumbai
BALANCE SHEET DATA based real estate and property development organisation. Over the years, KPT has
diversified its business by way of entering businesses like real estate, pipelines, rural
Current assets Rs m 6,009 13,463 17,910 electrification and distribution, biomass energy, construction and warehousing and
Current liabilities Rs m 3,763 6,875 9,424 logistics. Their core competencies lie in EPC services to the power transmission &
Net working cap to sales % 26.7 41.2 31.7 distribution industry and oil & gas pipeline sectors.
Current ratio x 1.6 2.0 1.9
Inventory Turnover Days 60 43 37 KPT witnessed a 67% YoY growth in consolidated sales during FY08 led by a strong
Debtors Turnover Days 129 160 127 83% YoY growth in its civil construction segment (from civil contracting subsidiary -
Net fixed assets Rs m 1,524 3,149 4,377 JMC Projects). However, due to its consolidated operating margins falling drastically
Share capital Rs m 109 265 265 from 16% in FY07 to 11.6% in FY08, the net profits saw an increase of only 3% YoY
"Free" reserves Rs m 1,563 6,171 7,561 in FY08.
Net worth Rs m 1,678 6,442 7,803 Government initiatives to augment the pace of capacity addition, coupled with the
Long term debt Rs m 866 638 1,010 growing demand for power, is likely to attract investments in the generation sector,
Total assets Rs m 7,827 18,087 22,725 providing opportunity to players directly or indirectly involved in the power sector.
Interest coverage x 6.9 8.8 6.1 Linked to the huge capacity additions in generation, the country will require
Debt to equity ratio x 0.5 0.1 0.1 continuous augmentation in transmission capacity. This is expected to result in
Sales to assets ratio x 1.1 0.9 1.2 additional investments of around US$ 65 bn in the transmission and distribution
Return on assets % 32.4 26.6 24.2 sector by PGCIL and other state utilities over the next five years. The volatility in raw
Return on equity % 39.6 24.8 21.1 material prices (especially steel) and foreign exchange rate would however continue
Return on capital % 43.4 34.9 32.0 to be concerns for the company going forward.
Exports to sales % 23.6 19.8 13.4
Imports to sales % 18.4 7.6 3.4
GET MORE INFO AT WWW.EQUITYMASTER.COM

91
 Regd off: 126, Maker Chambers III, Nariman Point, Mumbai - 400 021
KSB PUMPS LIMITED E-Mail: mamehta@ksb.co.in
Web site: www.ksbindia.co.in
Telephone: (022) 6658 8787 Fax: (022) 6658 8788
CAPITAL GOODS MNC Tr agent: Intime Spectrum, C13, Pannalal Silk Mills Cmpd., LBS Marg, Mumbai - 78
Chairman: A. V. Setalvad SEC: M. A. Mehta AUD: A. F. Ferguson & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1960 500249 KSB:IN 10 312.6 -9.7 -38.6 10.7 8.8 1.8 5,438.4 0.4 INE999A01015
SHAREHOLDING FX Transaction (CY07) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 26.0% Exports (fob) Rs m 333
Foreign collaborators : 41.0% Imports (cif) Rs m 349 (Rs)
Indian inst/Mut Fund : 17.0% Fx inflow Rs m 354 720
FIIs/GDR : 0.2% Fx outflow Rs m 524
Free float : 16.3% Net fx Rs m -170
Shareholders : 8,426
595
No. of months 12 12 12
Year ending 31/12/05 31/12/06 31/12/07
EQUITY SHARE DATA
470
High Rs 455 680 679
Low Rs 201 360 415
Sales per share Rs 206.8 234.2 268.1
Earnings per share Rs 24.1 31.4 29.3 345 DAILY
Cash flow per share Rs 29.8 36.4 35.6
100 DMA
Dividends per share Rs 4.50 5.50 5.50
Dividend yield (eoy) % 1.4 1.1 1.0
220
Book value per share Rs 95.7 120.7 143.5
Shares outstanding (eoy) m 17.40 17.40 17.40 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 1.6 2.2 2.0 No. of months 12 12 12
Avg P/E ratio x 13.6 16.6 18.7 Year ending 31/12/05 31/12/06 31/12/07
CASH FLOW
P/CF ratio (eoy) x 11.0 14.3 15.4
Price / Book Value ratio x 3.4 4.3 3.8 From Operations Rs m 328 583 139
Dividend payout % 18.7 17.5 18.8 From Investments Rs m -74 -268 -257
Avg Mkt Cap Rs m 5,707 9,048 9,518 From Financial Activity Rs m -47 -110 24
No. of employees `000 NA NA NA Net Cashflow Rs m 211 204 -94
Total wages/salary Rs m 495 538 626
Avg. sales/employee Rs Th NA NA NA INTERIM RESULTS
Avg. wages/employee Rs Th NA NA NA 3QCY07 4QCY07 1QCY08 2QCY08
Avg. net profit/employee Rs Th NA NA NA Net sales Rs m 1,117 1,318 1,321 1,490
Gross profit Rs m 128 251 212 273
INCOME DATA Gross profit margin % 11.5 19.0 16.0 18.3
Net Sales Rs m 3,599 4,075 4,665 Net profit Rs m 70 196 129 171
Other income Rs m 49 55 65 Net profit margin % 6.3 14.9 9.8 11.5
Total revenues Rs m 3,648 4,130 4,730
Gross profit Rs m 666 874 762 KEY DATA
Depreciation Rs m 100 88 110 Parameters Unit CY05 CY06 CY07
Interest Rs m 5 10 7 Capex Rs m 92 130 293
Profit before tax Rs m 610 831 710 Capex to sales % 2.0 2.5 3.2
Minority Interest Rs m 0 0 0 R.M. Consumed % 44.2 42.8 47.8
Prior Period Items Rs m 25 -11 11 Exports % 13.2 10.3 8.1
Extraordinary Inc (Exp) Rs m 0 0 10
Tax Rs m 216 274 221
NOTES
Profit after tax Rs m 419 546 510
Gross profit margin % 18.5 21.4 16.3 KSB Pumps Limited, a 40% subsidiary of KSB Germany, is engaged in the business
Effective tax rate % 35.4 33.0 31.1 of manufacture of power driven pumps and industrial valves (refineries and power
sector are the key user industry). In CY07, pumps accounted for nearly 75% of the
Net profit margin % 11.6 13.4 10.9
total revenues, while the contribution of valves stood at 25%. KSB also derives a
BALANCE SHEET DATA small proportion of its revenues from service contracts and energy audits. KSB has
its major plants located at Pune and Nashik in Maharashtra, and in Coimbatore in
Current assets Rs m 2,192 2,676 3,246 Tamil Nadu.
Current liabilities Rs m 1,014 1,303 1,587
Net working cap to sales % 32.7 33.7 35.6 KSB witnessed a 15% YoY jump in revenues during CY07 consisting of a 19% YoY
Current ratio x 2.2 2.1 2.0 growth in the valves segment and a 14% YoY growth in the pump segment. Operating
Inventory Turnover Days 88 86 96 margins for the fiscal fell drastically from 20.8% last year to 14.9%. The increased
Debtors Turnover Days 70 74 83 costs of operation such as higher material and personnel cost and other expenses
Net fixed assets Rs m 483 686 898 were a drag on the company's profitability during the fiscal. Thus in spite of an
Share capital Rs m 174 174 174 increase in sales, poor operating performance led to a 6.6% YoY drop in net profits.
"Free" reserves Rs m 1,492 1,926 2,323
As per the company's management, the growth in the pump and valves segments
Net worth Rs m 1,666 2,101 2,497 has come in on account of heavy investments in the energy sector which they expect
Long term debt Rs m 7 5 7 to continue in the 11th five year Plan. Demand for the submersible pumps is
Total assets Rs m 2,793 3,513 4,325 dependent on the weather cycle, while the trend in wastewater, sewage management
Interest coverage x 123.0 84.1 102.4 market in India is encouraging. The pump industry is also expected to continue
Debt to equity ratio x 0.0 0.0 0.0 benefiting from the continuation of the huge investments in the fluid-handling sectors
Sales to assets ratio x 1.3 1.2 1.1 such as oil & gas (production and refining) and petrochemicals. While the company's
Return on assets % 25.3 26.4 20.6 overall prospects appear bright, lowering of import duties has intensified international
Return on equity % 25.2 26.0 20.4 competition especially from Chinese contractors, which would be an area of concern
Return on capital % 38.3 39.4 29.5 going forward.
Exports to sales % 12.3 9.0 7.1
Imports to sales % 3.6 5.1 7.5
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92
 Regd off: Perianaickenpalayam, Coimbatore - 641 020
LAKSHMI MACHINE WORKS LIMITED E-Mail: investorscell@lmw.co.in
Web site: www.lakshmimach.com
Telephone: (0422) 222 1680 Fax: (0422) 222 0912
CAPITAL GOODS MISCELLANEOUS Tr agent: SKDC Consultant, Post Box No. 2979, Coimbatore - 641 012
Chairman: D. Jayavarthanavelu (MD) SEC: K. Duraisami AUD: MS Jagannathan&Viswanathan
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1962 500252 LMW:IN 10 1,068.4 -5.5 -63.5 5.5 3.7 4.2 13,216.1 1.4 INE269B01029
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 25.3% Exports (fob) Rs m 1,295
Foreign collaborators : 0.0% Imports (cif) Rs m 4,068 (Rs)
Indian inst/Mut Fund : 22.7% Fx inflow Rs m 1,295 4100
FIIs/GDR : 1.9% Fx outflow Rs m 4,143
Free float : 50.1% Net fx Rs m -2,848
Shareholders : 37,273
3300
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
2500
High Rs 22,510 3,940 4,100
Low Rs 7,600 1,362 1,360
Sales per share Rs 10,500.8 1,498.5 1,782.7
Earnings per share Rs 1,168.5 166.7 195.9 1700
Cash flow per share Rs 1,619.4 222.3 289.6 DAILY
Dividends per share Rs 300.00 40.00 45.00 100 DMA
Dividend yield (eoy) % 2.0 1.5 1.6
900
Book value per share Rs 3,533.1 469.1 612.4
Shares outstanding (eoy) m 1.24 12.37 12.37 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - FV10 -
Price / Sales ratio x 1.4 1.8 1.5 No. of months 12 12 12
Avg P/E ratio x 12.8 15.9 13.9 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 9.3 11.9 9.4
Price / Book Value ratio x 4.2 5.7 4.5 From Operations Rs m 4,888 4,775 2,384
Dividend payout % 25.6 24.0 23.0 From Investments Rs m -1,595 -1,797 -2,459
Avg Mkt Cap Rs m 18,608 32,793 33,770 From Financial Activity Rs m -353 -764 -370
No. of employees `000 4 4 4 Net Cashflow Rs m 2,940 2,215 -444
Total wages/salary Rs m 1,055 1,286 1,461
Avg. sales/employee Rs Th 3,388.2 4,899.8 6,156.3 INTERIM RESULTS
Avg. wages/employee Rs Th 274.5 339.9 407.9 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 377.0 545.1 676.4 Net sales Rs m 5,827 5,352 6,040 4,591
Gross profit Rs m 1,151 1,049 995 791
INCOME DATA Gross profit margin % 19.8 19.6 16.5 17.2
Net Sales Rs m 13,021 18,536 22,052 Net profit Rs m 746 585 600 477
Other income Rs m 425 881 875 Net profit margin % 12.8 10.9 9.9 10.4
Total revenues Rs m 13,446 19,417 22,927
Gross profit Rs m 2,043 2,899 3,996 KEY DATA
Depreciation Rs m 559 688 1,159 Parameters Unit FY06 FY07 FY08
Interest Rs m 0 0 0 Raw material costs % 50.6 52.2 51.9
Profit before tax Rs m 1,909 3,092 3,712 Power & fuel costs % 1.6 1.4 1.0
Minority Interest Rs m 0 0 0 Maintenance chrgs % 2.5 2.5 2.3
Prior Period Items Rs m -32 -27 -2 Comm. to agents % 3.1 2.8 2.9
Extraordinary Inc (Exp) Rs m -30 -6 0 R & D costs % 0.6 0.5 0.5
Tax Rs m 398 997 1,287
NOTES
Profit after tax Rs m 1,449 2,062 2,423
Gross profit margin % 15.7 15.6 18.1 Lakshmi Machine Works (LMW) is a leading textile machinery manufacturer in India
Effective tax rate % 20.8 32.2 34.7 and one among the three in the world to produce the entire range of spinning
machinery. The company was founded in 1962 to provide the Indian textile mill with
Net profit margin % 11.1 11.1 11.0
the latest spinning technology. Today, it caters to over 50% of the domestic market
BALANCE SHEET DATA and has emerged as the leader in the export of textile machinery in the country.
LMW's global presence has grown over the years, with a market presence not only
Current assets Rs m 7,369 11,327 11,613 in developing countries, but also in Europe.
Current liabilities Rs m 6,300 10,104 10,174
Net working cap to sales % 8.2 6.6 6.5 LMW saw a growth of 19% YoY in its topline during FY08, led by a 21% YoY growth
Current ratio x 1.2 1.1 1.1 in the textile machinery division (which contributed to 91% of its revenues). Operating
Inventory Turnover Days 40 32 23 margins for the company saw an increase from 15.6% in FY07 to 18.1% in FY08. Its
Debtors Turnover Days 17 8 15 net profits grew by 17.5% YoY subdued by higher depreciation costs, a lower other
Net fixed assets Rs m 2,463 3,864 5,579 income (both as a % of sales) and a higher effective tax rate.
Share capital Rs m 124 124 124
An investment of around Rs 550 bn has been estimated for spinning machinery and
"Free" reserves Rs m 3,604 5,128 7,017
infrastructure setup over the next 4 to 5 years, which will tremendously benefit
Net worth Rs m 4,381 5,803 7,575 players operating in this segment. The Union Textile Ministry expects that 50 more
Long term debt Rs m 0 0 0 integrated textile parks will be commissioned during the Eleventh Five-Year Plan
Total assets Rs m 10,847 16,213 18,223 (2007-12). In view of these initiatives, the management expects yarn production to
Interest coverage x NM NM NM grow from 2,461 m kg in FY06 to 4,700 m kg by FY10 at a 22% CAGR. This is
Debt to equity ratio x 0.0 0.0 0.0 expected to lead to a corresponding increase in the demand for spinning machines,
Sales to assets ratio x 1.2 1.1 1.2 where LMW has a stronghold.
Return on assets % 33.1 35.5 32.0
Return on equity % 33.1 35.5 32.0
Return on capital % 42.2 52.7 49.0
Exports to sales % 10.2 4.4 5.9
Imports to sales % 13.3 16.5 18.4
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93
 Regd off: L & T House, Ballard Estate, Mumbai - 400 001
LARSEN & TOUBRO LIMITED + $ E-Mail: igrc@lth.ltindia.com
Web site: www.larsentoubro.com
Telephone: (022) 6752 5656 Fax: (022) 6752 5893
CAPITAL GOODS MISCELLANEOUS Tr agent: Sharepro Services, Satam Estate, Chakala, Andheri (E), Mumbai -99
Chairman: A. M. Naik (MD) SEC: N. Hariharan AUD: Sharp & Tannan
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1946 500510 LT:IN 2 2,616.3 -3.1 1.1 32.7 27.9 0.6 765,017.7 368.1 INE018A01030
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 14,325
Foreign collaborators : 0.0% Imports (cif) Rs m 25,071 (Rs)
Indian inst/Mut Fund : 38.7% Fx inflow Rs m 56,566
4920
FIIs/GDR : 18.3% Fx outflow Rs m 45,309
Free float : 43.0% Net fx Rs m 11,257
Shareholders : 668,034 3765
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
2610
High Rs 2,616 1,778 4,670
Low Rs 919 903 1,508
Sales per share Rs 1,205.4 723.8 1,003.6
Earnings per share Rs 96.7 79.2 80.0 1455 DAILY
Cash flow per share Rs 113.1 89.8 94.0
100 DMA
Dividends per share Rs 22.00 13.00 17.00
Dividend yield (eoy) % 1.2 1.0 0.6
300
Book value per share Rs 359.6 243.7 369.5
Shares outstanding (eoy) m 137.39 283.27 292.33 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions GDR,ESOS B1:1,ESOS GDS,ESOS
Price / Sales ratio x 1.5 1.9 3.1 No. of months 12 12 12
Avg P/E ratio x 18.3 16.9 38.6 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 15.6 14.9 32.9
Price / Book Value ratio x 4.9 5.5 8.4 From Operations Rs m 10,617 23,244 -12,392
Dividend payout % 22.7 16.4 21.3 From Investments Rs m -13,538 -25,625 -66,153
Avg Mkt Cap Rs m 242,837 379,723 903,007 From Financial Activity Rs m 1,198 11,401 76,973
No. of employees `000 23 27 32 Net Cashflow Rs m -1,722 9,020 -1,572
Total wages/salary Rs m 10,469 14,882 20,494
Avg. sales/employee Rs Th 7,154.5 7,540.1 9,184.8 INTERIM RESULTS
Avg. wages/employee Rs Th 452.3 547.3 641.6 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 574.1 824.7 732.1 Net sales Rs m 54,999 63,827 84,669 69,014
Gross profit Rs m 5,863 6,902 11,182 6,574
INCOME DATA Gross profit margin % 10.7 10.8 13.2 9.5
Net Sales Rs m 165,613 205,023 293,371 Net profit Rs m 3,480 4,818 8,796 5,025
Other income Rs m 2,633 5,645 5,115 Net profit margin % 6.3 7.5 10.4 7.3
Total revenues Rs m 168,246 210,668 298,486
Gross profit Rs m 16,943 26,676 36,426 KEY DATA
Depreciation Rs m 2,255 3,011 4,083 Parameters Unit FY06 FY07 FY08
Interest Rs m 1,887 1,584 2,031 Engg. & Constr. sales % 70.5 68.1 68.7
Profit before tax Rs m 15,434 27,726 35,427 Electrical sales % 9.0 9.6 8.7
Minority Interest Rs m -450 -1,162 -683 Orders received Rs m 223,050 306,020 420,190
Prior Period Items Rs m -44 -64 -8 Order backlog Rs m 246,460 368,820 526,820
Extraordinary Inc (Exp) Rs m 2,662 3,251 118 Backlog to standalone sales x 1.7 2.1 2.1
Tax Rs m 4,313 7,327 11,471
NOTES
Profit after tax Rs m 13,289 22,424 23,383
Gross profit margin % 10.2 13.0 12.4 Larsen & Toubro (L&T) is India's largest engineering company with expertise in wide
Effective tax rate % 27.9 26.4 32.4 areas like infrastructure, oil and gas, power and process. The company has broadly
segregated its business into three key segments - Engineering and Construction
Net profit margin % 8.0 10.9 8.0
(E&C), Electrical & Electronics (E&E) and Machinery & Industrial Products (MIP).
BALANCE SHEET DATA While E&C contributed to around 69% of L&T's standalone FY08 revenues, E&E's
contribution was 9%.
Current assets Rs m 116,392 167,133 256,883
Current liabilities Rs m 76,158 105,418 156,012 L&T saw a 44% YoY growth in its consolidated sales during FY08, led by a strong
Net working cap to sales % 24.3 30.1 34.4 performance from the engineering and construction (E&C) segment. The segment,
Current ratio x 1.5 1.6 1.6 which witnessed a 43% YoY growth and formed 69% of the revenues, has been a key
Inventory Turnover Days 55 65 62 beneficiary of increased investments in the infrastructure and hydrocarbon sectors,
Debtors Turnover Days 116 109 102 both in the domestic and international markets. At the end of March 2008, the E&C
Net fixed assets Rs m 28,989 41,084 62,914 division's order backlog stood at Rs 527 bn, almost 2.5 times the segment's full year
Share capital Rs m 275 567 585 sales during the year. Higher construction material and raw material costs led to a
"Free" reserves Rs m 47,632 66,662 104,984 marginal 0.2% YoY contraction in consolidated operating margins during the fiscal.
Consolidated net profits (excluding extraordinary items) grew 31% YoY during FY08.
Net worth Rs m 49,405 69,045 108,026
Long term debt Rs m 22,331 36,477 69,463 A huge order backlog for L&T's E&C division provides the company with a high
Total assets Rs m 162,883 246,316 397,641 revenue visibility into the future. Considering a further accretion to the orders on
Interest coverage x 9.2 18.5 18.4 account of the company's premier position in the engineering space, we expect L&T's
Debt to equity ratio x 0.5 0.5 0.6 revenues to grow at a robust rate in the future. Apart from the infrastructure segment,
Sales to assets ratio x 1.0 0.8 0.7 the company is also looking set to capture a large share of the hydrocarbon segment,
Return on assets % 21.2 22.8 14.3 where deregulation combined with high global demand for crude has led to a surge
Return on equity % 26.9 32.5 21.6 in exploration and production activities in India and globally. However, despite such
Return on capital % 27.2 29.7 20.8 strong growth prospects, the company will continue to face pressure on the employee
Exports to sales % 4.7 5.4 4.9 retention front, as competition for talent from both domestic and MNC players is
Imports to sales % 8.8 9.8 8.5 increasingly eating into the company's human resource pool.
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94
 Regd off: "Praj House", Bhavdan, Pune- 411 021
PRAJ INDUSTRIES LIMITED E-Mail: investorsfeedback@praj.net
Web site: www.praj.net
Telephone: (020) 2295 1511 Fax: (020) 2295 1718
CAPITAL GOODS MISCELLANEOUS Tr agent: Intime Spectrum, C13, Pannalal Silk Mills Compd., LBS Marg, Mumbai- 78
Chairman: Pramod Chaudhari SEC: Deepak Mogal AUD: B. K. Khare & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1985 522205 PRJ:IN 2 172.0 -9.4 -9.1 20.6 19.8 1.2 31,515.6 200.5 INE074A01025
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 21.3% Exports (fob) Rs m 2,749
Foreign collaborators : 0.0% Imports (cif) Rs m 713 (Rs)
Indian inst/Mut Fund : 10.5% Fx inflow Rs m 3,208 320
FIIs/GDR : 14.5% Fx outflow Rs m 888
Free float : 53.7% Net fx Rs m 2,320
Shareholders : 93,269
245
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
170
High Rs 151 415 273
Low Rs 39 124 100
Sales per share Rs 33.6 75.1 40.3
Earnings per share Rs 2.9 10.5 8.4 95 DAILY
Cash flow per share Rs 3.2 10.9 8.7
Dividends per share Rs 1.30 2.70 1.98 100 DMA
Dividend yield (eoy) % 1.4 1.0 1.1
20
Book value per share Rs 6.6 18.6 19.1
Shares outstanding (eoy) m 81.11 83.90 183.16 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions FV2,B1:1 PI,ESOP B1:1,WC
Price / Sales ratio x 2.8 3.6 4.6 No. of months 12 12 12
Avg P/E ratio x 32.9 25.7 22.3 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 29.5 24.7 21.5
Price / Book Value ratio x 14.3 14.5 9.8 From Operations Rs m 556 1,615 934
Dividend payout % 45.1 25.7 23.7 From Investments Rs m -372 -1,511 -1,361
Avg Mkt Cap Rs m 7,706 22,611 34,159 From Financial Activity Rs m -72 35 415
No. of employees `000 <500 1 1 Net Cashflow Rs m 113 139 -11
Total wages/salary Rs m 181 347 612
Avg. sales/employee Rs Th 7,269.3 10,503.3 9,225.0 INTERIM RESULTS
Avg. wages/employee Rs Th 482.7 578.3 765.0 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 624.0 1,468.3 1,912.5 Net sales Rs m 1,703 1,802 2,126 1,548
Gross profit Rs m 175 377 717 298
INCOME DATA Gross profit margin % 10.3 20.9 33.7 19.3
Net Sales Rs m 2,726 6,302 7,380 Net profit Rs m 310 394 599 247
Other income Rs m 43 89 389 Net profit margin % 18.2 21.9 28.2 16.0
Total revenues Rs m 2,769 6,391 7,769
Gross profit Rs m 302 1,072 1,413 KEY DATA
Depreciation Rs m 27 33 58 Parameters Unit FY06 FY07 FY08
Interest Rs m 5 3 1 Distillation equipment % 79.0 82.5 NA
Profit before tax Rs m 313 1,125 1,743 Fermentation equipment % 11.7 8.5 NA
Minority Interest Rs m 1 0 -16 IT/ITES % 6.2 8.8 NA
Prior Period Items Rs m 0 0 17 Imported raw materials % 13.0 15.0 19.0
Extraordinary Inc (Exp) Rs m 0 0 0 Material costs % 64.3 64.0 54.5
Tax Rs m 80 244 214
NOTES
Profit after tax Rs m 234 881 1,530
Gross profit margin % 11.1 17.0 19.1 Praj Industries was promoted in 1985 with the objective of designing, fabrication and
Effective tax rate % 25.6 21.7 12.3 installation of plants for producing ethanol from molasses, a by-product of the sugar
units. Subsequently the company expanded and set up its manufacturing facilities
Net profit margin % 8.6 14.0 20.7
and made a foray into the brewery segment. Praj primarily caters to the distilleries
BALANCE SHEET DATA and breweries segment in domestic market by providing turnkey process plant
solutions, while for international customers, scope is usually limited to supply of
Current assets Rs m 1,188 3,308 3,377 technology, engineering and process critical equipments. To grab the opportunities in
Current liabilities Rs m 1,286 3,912 3,402 regions like Europe, the US and Brazil, the company acquired a 100% stake in a US
Net working cap to sales % -3.6 -9.6 -0.3 firm (now called Praj Schneider) in 2006. It also signed two JVs, one in 2007
Current ratio x 0.9 0.8 1.0 (BioCnergy Europa B.V.,Europe) and the other in 2008 (Jaragua Bioenergia, Brazil).
Inventory Turnover Days 27 56 37 In May 2008, the European JV i.e., BioCnergy won its fourth European contract
Debtors Turnover Days 56 77 85 wherein Praj will supply equipment for a 400 million liter per year fuel ethanol plant.
Net fixed assets Rs m 303 477 1,068 The project is worth Rs 1.2 bn, and is part of the current order backlog of Rs 10.7 bn.
Share capital Rs m 162 258 366
"Free" reserves Rs m 357 1,302 3,123 Praj recorded a growth of 17% YoY in its consolidated topline in FY08 on account of
capacity expansion and high utilisation. Its operating margins were at over 19% for
Net worth Rs m 538 1,559 3,496
the year, while its net profits grew by a healthy 77% YoY on account of expansion in
Long term debt Rs m 1 1 16
operating margins, higher other income (forex gains) and lower tax rates.
Total assets Rs m 1,862 5,531 7,013
Interest coverage x 63.6 376.0 1,744.0 Praj's management has stated that even though the debate over food versus fuel
Debt to equity ratio x 0.0 0.0 0.0 goes on (with respect to the usage of farmlands to grow crops for producing ethanol),
Sales to assets ratio x 1.5 1.1 1.1 they expect food prices to stabilise in the near future, as they have been globally in
Return on assets % 44.3 56.7 43.6 the recent past. Also, as oil prices have been witnessing an upward trend, they expect
Return on equity % 43.5 56.5 43.8 companies' globally to pump in large amount of investments into this (clean fuels like
Return on capital % 59.2 72.3 49.7 ethanol, bio-diesel) segment.
Exports to sales % 24.8 21.2 37.2
Imports to sales % 9.9 12.4 9.7
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95
 Regd off: Punj Lloyd House, 17-18, Nehru Place, New Delhi - 110 019
PUNJ LLOYD LIMITED E-Mail: dthairani@punjlloyd.com
Web site: www.punjlloyd.com
Telephone: (0124) 262 0493 Fax: (0124) 262 0111
CAPITAL GOODS MISCELLANEOUS Tr agent: Karvy Computer, 46, Avenue 4, St. No. 1, Banjara Hills, Hyderabad - 34
Chairman: Atul Punj (MD) SEC: Dinesh Thairani AUD: S. R. Batliboi & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1988 532693 PUNJ:IN 2 296.5 2.2 1.8 25.1 17.8 0.1 89,975.9 1,296.2 INE701B01021
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 19.1% Exports (fob) Rs m 0
Foreign collaborators : 25.4% Imports (cif) Rs m 0 (Rs)
Indian inst/Mut Fund : 16.3% Fx inflow Rs m 0 620
FIIs/GDR : 20.8% Fx outflow Rs m 0
Free float : 18.4% Net fx Rs m 0
Shareholders : 235,404
485
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
350
High Rs 1,204 251 589
Low Rs 988 109 148
Sales per share Rs 322.6 196.2 255.5
Earnings per share Rs 10.6 7.5 11.8 215
Cash flow per share Rs 22.2 11.6 16.6 DAILY
Dividends per share Rs 1.00 0.30 0.40 100 DMA
Dividend yield (eoy) % 0.1 0.2 0.1
80
Book value per share Rs 214.8 49.0 90.4
Shares outstanding (eoy) m 52.22 261.26 303.45 Jan-06 Sep-06 May-07 Jan-08 Sep-08
Bonus/Rights/Conversions PI,B3:5 FV2,ESOP BC,QIB
Price / Sales ratio x 3.4 0.9 1.4 No. of months 12 12 12
Avg P/E ratio x 103.1 23.9 31.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 49.4 15.5 22.2
Price / Book Value ratio x 5.1 3.7 4.1 From Operations Rs m 2 614 -5,183
Dividend payout % 9.4 4.0 3.4 From Investments Rs m -2,572 -8,083 -7,348
Avg Mkt Cap Rs m 57,233 47,027 111,821 From Financial Activity Rs m 3,275 10,627 9,017
No. of employees `000 2 6 15 Net Cashflow Rs m 705 3,159 -3,514
Total wages/salary Rs m 1,862 6,369 8,924
Avg. sales/employee Rs Th 9,200.4 8,544.3 5,346.8 INTERIM RESULTS
Avg. wages/employee Rs Th 1,016.9 1,061.5 615.4 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 303.1 328.2 247.2 Net sales Rs m 18,942 21,170 23,467 26,488
Gross profit Rs m 1,666 1,044 2,469 2,254
INCOME DATA Gross profit margin % 8.8 4.9 10.5 8.5
Net Sales Rs m 16,846 51,266 77,529 Net profit Rs m 894 546 1,177 1,119
Other income Rs m 251 743 803 Net profit margin % 4.7 2.6 5.0 4.2
Total revenues Rs m 17,097 52,009 78,332
Gross profit Rs m 1,751 3,753 6,390 KEY DATA
Depreciation Rs m 604 1,062 1,462 Parameters Unit FY06 FY07 FY08
Interest Rs m 627 825 1,292 Order book Rs m 52,318 159,439 195,960
Profit before tax Rs m 771 2,609 4,439 Order book to sales x 3.1 3.1 2.5
Minority Interest Rs m 7 3 1 Contractor charges % of sales 20.8 26.6 27.5
Prior Period Items Rs m 0 0 0 Raw materials consumed % of sales 32.6 31.9 36.5
Extraordinary Inc (Exp) Rs m 68 47 379
Tax Rs m 291 690 1,235
NOTES
Profit after tax Rs m 555 1,969 3,584
Gross profit margin % 10.4 7.3 8.2 Punj Lloyd (PUNL) is one of India's leading EPC (engineering, construction and
Effective tax rate % 37.7 26.4 27.8 procurement) companies providing services to the energy and infrastructure sector.
The company has presence in diverse businesses such as pipelines, tanks &
Net profit margin % 3.3 3.8 4.6
terminals, process, power, offshore segment, civil construction & infrastructure
BALANCE SHEET DATA services. In October 2006, PUNL acquired 100% stake in Singapore based,
Sembawang Engineers and Constructors (SEC) and its wholly owned UK subsidiary
Current assets Rs m 15,479 44,096 55,820 Simon Carves (SC). These acquisitions have helped the company to pre qualify for
Current liabilities Rs m 5,676 28,923 32,869 large sized orders in their respective segments. During FY08, PUNL acquired 74%
Net working cap to sales % 58.2 29.6 29.6 stake in Technodyne International (UK) and also signed a pact with Singapore
Current ratio x 2.7 1.5 1.7 Technologies Kinetics, a defense equipment company.
Inventory Turnover Days 174 120 97
Debtors Turnover Days 85 87 98 PUNL recorded a strong 51% YoY growth in revenues during FY08. The company
Net fixed assets Rs m 7,176 13,622 16,233 witnessed good contribution from all its areas of business. Its operating margins
Share capital Rs m 522 523 607 expanded by 1% YoY, mainly due to reduction in staff costs and other expenditures.
"Free" reserves Rs m 10,569 12,199 26,508 On the back of a strong topline performance as also the expansion in operating
margins, PUNL's grew its bottomline by 82% YoY during FY08 (including an
Net worth Rs m 11,215 12,789 27,433
extraordinary item).
Long term debt Rs m 1,981 6,834 8,068
Total assets Rs m 23,071 59,416 77,511 PUNL is likely to gain from the robust spending in the hydrocarbon and infrastructure
Interest coverage x 2.2 4.2 4.4 space, both, in the international and domestic regions. At the end of June 2008,
Debt to equity ratio x 0.2 0.5 0.3 PUNL's order backlog stood at Rs 202 bn (2.6 times its FY08 consolidated revenues),
Sales to assets ratio x 0.7 0.9 1.0 providing strong revenue visibility for the next 2-3 years. The acquisitions of SEC and
Return on assets % 9.0 14.2 13.7 SC have impacted the company's margins on a consolidated basis (due to their low
Return on equity % 4.9 15.4 13.1 margin legacy orders). However, on completion of the same, PUNL is expected
Return on capital % 11.2 17.8 17.2 improve its operating margins going forward.
Exports to sales % 0.0 0.0 0.0
Imports to sales % 5.5 4.7 0.0
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96
 Regd off: Survey No. 92, Tathawade, Taluka Mulshi, Pune - 411 033
SANGHVI MOVERS LIMITED E-Mail: cs@sanghvicranes.com
Web site: www.sanghvicranes.com
Telephone: (020) 6674 4700 Fax: (020) 2293 4397
CAPITAL GOODS MISCELLANEOUS Tr agent: Intime Spectrum, C13, Pannalal Silk Mills Compd., LBS Marg, Mumbai-78
Chairman: C. P. Sanghvi SEC: Jitendra R. Shah AUD: L. M. Joshi & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1989 530073 SGM:IN 2 208.0 -4.5 4.9 12.4 7.5 1.4 9,002.2 3.7 INE989A01024
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 44.4% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 1,699 (Rs)
Indian inst/Mut Fund : 4.7% Fx inflow Rs m 0 340
FIIs/GDR : 24.3% Fx outflow Rs m 1,712
Free float : 26.6% Net fx Rs m -1,712
Shareholders : 9,878
260
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
180
High Rs 853 913 337
Low Rs 142 563 123
Sales per share Rs 200.8 221.6 58.7
Earnings per share Rs 43.4 79.8 16.8 100
Cash flow per share Rs 91.4 123.0 27.8 DAILY
Dividends per share Rs 10.00 12.50 3.00 100 DMA
Dividend yield (eoy) % 2.0 1.7 1.3
20
Book value per share Rs 108.9 260.9 70.1
Shares outstanding (eoy) m 7.42 8.06 43.29 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - WC FV2,WC
Price / Sales ratio x 2.5 3.3 3.9 No. of months 12 12 12
Avg P/E ratio x 11.5 9.3 13.7 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 5.4 6.0 8.3
Price / Book Value ratio x 4.6 2.8 3.3 From Operations Rs m 506 700 1,038
Dividend payout % 23.0 15.7 17.8 From Investments Rs m -1,789 -1,759 -2,223
Avg Mkt Cap Rs m 3,691 5,948 9,957 From Financial Activity Rs m 1,215 1,080 1,233
No. of employees `000 1 1 1 Net Cashflow Rs m -69 21 48
Total wages/salary Rs m 52 63 117
Avg. sales/employee Rs Th 1,718.6 1,956.2 2,324.5 INTERIM RESULTS
Avg. wages/employee Rs Th 60.0 69.0 106.9 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 371.4 704.3 665.4 Net sales Rs m 573 644 797 787
Gross profit Rs m 429 469 557 576
INCOME DATA Gross profit margin % 74.9 72.8 69.9 73.2
Net Sales Rs m 1,490 1,786 2,543 Net profit Rs m 167 178 237 227
Other income Rs m 6 15 5 Net profit margin % 29.1 27.6 29.7 28.8
Total revenues Rs m 1,496 1,801 2,548
Gross profit Rs m 985 1,300 1,879 KEY DATA
Depreciation Rs m 356 348 475 Parameters Unit FY06 FY07 FY08
Interest Rs m 136 244 303 Value of New Cranes purchased Rs m 1,700 1,800 2,205
Profit before tax Rs m 499 723 1,106 Revenue from Power Generation % 1.8 1.4 1
Minority Interest Rs m 0 0 0 Repairs and Maintenance % of sales 8.5 6.4 5.1
Prior Period Items Rs m 0 0 0 Employment Costs % of sales 3.5 3.5 4.6
Extraordinary Inc (Exp) Rs m 0 171 0
Tax Rs m 177 251 378
NOTES
Profit after tax Rs m 322 643 728
Gross profit margin % 66.1 72.8 73.9 Pune based Sanghvi Movers Ltd. (SML) is the largest crane hiring company in India
Effective tax rate % 35.5 34.7 34.2 and the 12th largest in the world as per a recent ranking from Cranes International
magazine. It's business is that of providing hydraulic and crawler cranes to various
Net profit margin % 21.6 36.0 28.6
industries in the infrastructure and core sectors. It has a fleet of 278 medium to large
BALANCE SHEET DATA size hydraulic truck mounted telescopic and crawler cranes with lifting capacity of 20-
800 tons. It has tie ups with some of the largest international crane manufacturers.
Current assets Rs m 648 786 1,076 SML has 50% share of the organised market and is largely concentrated in the
Current liabilities Rs m 284 269 364 windmill business.
Net working cap to sales % 24.4 28.9 28.0
Current ratio x 2.3 2.9 3.0 The company recorded a 43% YoY growth in its topline during FY08. This was driven
Inventory Turnover Days 0 0 0 by better utilisation of and higher realisations from the crane fleet. The company
Debtors Turnover Days 80 103 93 enjoys high operating margins, which increased from 72.8% in FY07 to 73.9% in
Net fixed assets Rs m 2,982 4,653 6,423 FY08. The net profit growth during the year stood at 13.2% YoY. However excluding
Share capital Rs m 73 82 88 extraordinary expenses for the year, the net profits of the company grew by 54% YoY.
"Free" reserves Rs m 735 1,959 2,948
To maintain GDP growth rate, an estimated US$ 500 bn of investment in
Net worth Rs m 808 2,103 3,036 infrastructure has been contemplated for the 11th five year plan period. This implies
Long term debt Rs m 1,864 1,957 2,588 an infrastructure investment of around 9% of GDP by the end of the 11th Plan period.
Total assets Rs m 3,630 5,439 7,499 About 38% of this investment (US$ 193 bn) is envisaged in the power sector. The
Interest coverage x 4.7 4.0 4.7 supply of cranes is as essential for the timely execution of the projects. Crane hiring
Debt to equity ratio x 2.3 0.9 0.9 typically cost an average of 0.6% of the cost of setting up wind power projects,
Sales to assets ratio x 0.4 0.3 0.3 cement and steel plants and power plants. This translates into potential revenues to
Return on assets % 17.1 21.8 18.3 the tune of Rs 12.2 bn and Rs 14.0 bn during the 11th and 12th five-year plan periods
Return on equity % 39.9 30.6 24.0 respectively for crane rental companies in the country. The scope for growth in the
Return on capital % 23.8 28.0 25.1 non-renewable power plant business and capital additions in the cement, steel and
Exports to sales % 0.0 0.0 0.0 oil refinery sector offer ample opportunities to the company to multiply its revenue
Imports to sales % 78.7 68.8 66.8 several fold in the coming years.
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97
 Regd off: 130, Pandurang Budhkar Marg, Worli, Mumbai - 400 018
SIEMENS LIMITED $ E-Mail: corporate-secretariat.in@siemens.com
Web site: www.siemens.co.in
Telephone: (022) 2498 7507 Fax: (022) 2498 7043
CAPITAL GOODS MNC Tr agent: TSR Darashaw, 6-10, Haji Moosa Estate, E. Moses, Rd, Mumbai-11
Chairman: Deepak S. Parekh SEC: Ashok P. Jangid AUD: BSR & Co
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1957 500550 SIEM:IN 2 547.4 -5.9 -13.2 26.6 22.1 0.9 184,544.5 50.5 INE003A01024
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 2,368
Foreign collaborators : 55.2% Imports (cif) Rs m 18,058 (Rs)
Indian inst/Mut Fund : 19.1% Fx inflow Rs m 26,714 1110
FIIs/GDR : 7.5% Fx outflow Rs m 26,494
Free float : 18.2% Net fx Rs m 220
Shareholders : 128,732
860
No. of months 12 12 12
Year ending 30/09/05 30/09/06 30/09/07
EQUITY SHARE DATA
610
High Rs 2,657 1,262 1,485
Low Rs 1,031 445 968
Sales per share Rs 1,097.7 357.8 556.3
Earnings per share Rs 93.2 23.2 41.1 360
Cash flow per share Rs 113.8 30.7 49.4 DAILY
Dividends per share Rs 14.50 3.80 4.80 100 DMA
Dividend yield (eoy) % 0.8 0.4 0.4
110
Book value per share Rs 277.0 73.5 108.6
Shares outstanding (eoy) m 33.14 168.58 168.58 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - FV2,A -
Price / Sales ratio x 1.7 2.4 2.2 No. of months 12 12 12
Avg P/E ratio x 19.8 36.7 29.8 Year ending 30/09/05 30/09/06 30/09/07
CASH FLOW
P/CF ratio (eoy) x 16.2 27.8 24.8
Price / Book Value ratio x 6.7 11.6 11.3 From Operations Rs m 3,291 10,367 -776
Dividend payout % 15.6 16.4 11.7 From Investments Rs m -2,629 -4,042 -1,243
Avg Mkt Cap Rs m 61,110 143,883 206,763 From Financial Activity Rs m -284 -1,476 -918
No. of employees `000 5 6 7 Net Cashflow Rs m 378 4,849 -2,937
Total wages/salary Rs m 4,834 7,500 9,139
Avg. sales/employee Rs Th 7,615.4 10,102.5 14,417.5 INTERIM RESULTS
Avg. wages/employee Rs Th 1,011.9 1,256.1 1,404.9 4QFY08 1QFY09 2QFY09 3QFY09
Avg. net profit/employee Rs Th 646.2 655.8 1,065.2 Net sales Rs m 21,885 19,144 21,424 18,097
Gross profit Rs m 3,405 1,497 29 2,546
INCOME DATA Gross profit margin % 15.6 7.8 0.1 14.1
Net Sales Rs m 36,379 60,322 93,786 Net profit Rs m 2,562 724 16 1,694
Other income Rs m 638 892 1,072 Net profit margin % 11.7 3.8 0.1 9.4
Total revenues Rs m 37,017 61,214 94,858
Gross profit Rs m 4,333 6,194 9,525 KEY DATA
Depreciation Rs m 684 1,260 1,403 Parameters Unit FY06 FY07 FY08
Interest Rs m 19 43 45 Power % 19.8 26.0 31.5
Profit before tax Rs m 4,268 5,783 9,149 Automation & Drives % 26.6 23.4 19.3
Minority Interest Rs m -9 -4 -11 IT Services % 20.3 17.0 13.6
Prior Period Items Rs m 0 0 0 Telecommunication % 3.7 9.4 12.2
Extraordinary Inc (Exp) Rs m 256 92 798 Revenue per employee Rs m 4.1 5.1 6.9
Tax Rs m 1,428 1,955 3,007
NOTES
Profit after tax Rs m 3,087 3,916 6,929
Gross profit margin % 11.9 10.3 10.2 Siemens India is a subsidiary of the US$ 113 bn German engineering behemoth
Effective tax rate % 33.5 33.8 32.9 Siemens AG, one of the largest engineering companies in the world. Siemens India
operates in many areas like power (manufacturing generation and T&D equipments)
Net profit margin % 8.5 6.5 7.4
and industrial solutions service (providing process automation, manufacturing
BALANCE SHEET DATA automation drives). In health care services, the company manufactures diagnostic
equipments and hearing equipments. During the period between FY02 and FY07, the
Current assets Rs m 24,042 36,777 475,111 company grew its revenues and net profits at compounded annual rates of 43% and
Current liabilities Rs m 19,849 33,748 40,180 47% respectively.
Net working cap to sales % 11.5 5.0 463.7
Current ratio x 1.2 1.1 11.8 Siemens' sales grew 6% YoY for the nine month period ended June 2008. The sales
Inventory Turnover Days 37 33 31 figures are impacted by the discontinuation of three of its businesses - building
Debtors Turnover Days 107 91 100 technologies (which will continue to exist in the consolidated entity), information &
Net fixed assets Rs m 4,743 6,677 8,649 communication and automotive. On a like to like basis, sales growth stands at 11%
Share capital Rs m 331 337 337 YoY for 9mFY08. Net profits saw an increase of 28% YoY for 9mFY08 largely on the
"Free" reserves Rs m 8,846 11,984 17,917 back of a strong rise in operating margins. Siemens' unexecuted order book stood at
Rs 98 bn, almost 1.3 times the company's last year's total sales.
Net worth Rs m 9,179 12,393 18,301
Long term debt Rs m 20 15 62 Siemens has significantly benefited from the improvement in the country's power
Total assets Rs m 29,632 45,592 485,703 scenario where increased investments have been pumped into setting up generation,
Interest coverage x 225.6 135.5 204.3 transmission and distribution capacities. Robust performance from the industrial
Debt to equity ratio x 0.0 0.0 0.0 solutions business, on the other hand, has been a factor of strong investment-led
Sales to assets ratio x 1.2 1.3 0.2 growth by Indian companies and government agencies. Overall, apart from the
Return on assets % 33.8 31.9 38.0 visibility that a large order book provides to Siemens in terms of future growth, we
Return on equity % 33.6 31.6 37.9 also believe that commencement of the execution cycle will help the company on the
Return on capital % 49.3 47.7 54.4 profitability front. Further, ramp up in manufacturing capacity and, consequently,
Exports to sales % 8.3 3.8 2.5 lower share of outsourced components shall further help Siemens' improve its
Imports to sales % 24.4 23.9 19.3 profitability levels.
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98
 Regd off: 5,Shrimali Society, Nr.Shri Krishna Complex, Navrangpura, Ahmedabad-9
SUZLON ENERGY LIMITED $ E-Mail: investors@suzlon.com
Web site: www.suzlon.com
Telephone: (079) 2647 1100 Fax: (079) 2656 5540
CAPITAL GOODS MISCELLANEOUS Tr agent: Karvy Computershare, 17-24, Vittalrao Nagar, Madhapur, Hyderabad - 81
Chairman: Tulsi R. Tanti SEC: Hemal A. Kanuga AUD: SNK & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1995 532667 SUEL:IN 2 225.5 -6.2 -12.9 32.8 25.6 0.4 337,776.0 1,470.2 INE040H01021
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 65.9% Exports (fob) Rs m 27,968
Foreign collaborators : 0.0% Imports (cif) Rs m 24,565 (Rs)
Indian inst/Mut Fund : 3.6% Fx inflow Rs m 28,378 480
FIIs/GDR : 21.8% Fx outflow Rs m 27,754
Free float : 8.7% Net fx Rs m 624
Shareholders : 265,347
380
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
280
High Rs 1,375 1,511 460
Low Rs 580 756 186
Sales per share Rs 133.6 277.5 91.4
Earnings per share Rs 26.4 30.0 6.9 180 DAILY
Cash flow per share Rs 28.9 36.0 8.8
Dividends per share Rs 5.00 5.00 1.00 100 DMA
Dividend yield (eoy) % 0.5 0.4 0.3
80
Book value per share Rs 94.5 118.9 54.1
Shares outstanding (eoy) m 287.53 287.76 1,496.93 Oct-05 Jul-06 Mar-07 Dec-07 Sep-08
Bonus/Rights/Conversions B2:1,PI ESOP FV2,ESOP
Price / Sales ratio x 7.3 4.1 3.5 No. of months 12 12 12
Avg P/E ratio x 37.0 37.7 46.9 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 33.8 31.5 36.6
Price / Book Value ratio x 10.3 9.5 6.0 From Operations Rs m -3,540 7,372 12,445
Dividend payout % 18.9 16.7 14.5 From Investments Rs m -3,805 -37,199 -46,367
Avg Mkt Cap Rs m 281,061 326,176 483,508 From Financial Activity Rs m 11,315 39,695 88,141
No. of employees `000 3 11 14 Net Cashflow Rs m 3,970 9,868 54,219
Total wages/salary Rs m 1,216 6,682 10,430
Avg. sales/employee Rs Th 12,003.1 7,259.7 9,771.0 INTERIM RESULTS
Avg. wages/employee Rs Th 380.0 607.5 745.0 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 2,373.4 785.5 735.8 Net sales Rs m 36,413 31,698 49,238 27,605
Gross profit Rs m 5,838 4,517 8,077 3,861
INCOME DATA Gross profit margin % 16.0 14.3 16.4 14.0
Net Sales Rs m 38,410 79,857 136,794 Net profit Rs m 3,946 2,057 6,225 1,654
Other income Rs m 745 965 2,646 Net profit margin % 10.8 6.5 12.6 6.0
Total revenues Rs m 39,155 80,822 139,440
Gross profit Rs m 8,652 12,959 19,802 KEY DATA
Depreciation Rs m 716 1,718 2,894 Parameters Unit FY06 FY07 FY08
Interest Rs m 508 2,523 5,320 Capacity MW 1,416 2,700 2,700
Profit before tax Rs m 8,173 9,683 14,234 Capacity installed (Domestic) MW 882 954 976
Minority Interest Rs m -10 -8 -428 Capacity installed (International) MW 88 502 1,336
Prior Period Items Rs m -2 112 -2 % of all-India incremental instaln. % 63.6 51.9 60.4
Extraordinary Inc (Exp) Rs m 0 0 -1,512 % of global incremental instaln. % 0.8 3.8 7.4
Tax Rs m 566 1,146 1,991
NOTES
Profit after tax Rs m 7,595 8,641 10,301
Gross profit margin % 22.5 16.2 14.5 Suzlon Energy is Asia's leading manufacturer of wind turbine generators (WTGs)
Effective tax rate % 6.9 11.8 14.0 having over 50% share of India's wind power installations, and 10.5% share of global
installation in CY07. The company is amongst the five largest manufacturers of
Net profit margin % 19.8 10.8 7.5
WTGs globally in terms of annual installed capacity. The company had recently
BALANCE SHEET DATA acquired the German wind turbine major, REpower Systems AG.

Current assets Rs m 41,687 84,526 175,606 Suzlon installed 2,311 MW of WTGs during FY08, a volume growth of 59% YoY. The
Current liabilities Rs m 17,060 38,339 73,055 company also recorded an 18% YoY increase in overall realisations. These factors
Net working cap to sales % 64.1 57.8 75.0 helped the company achieve a 71% YoY increase in topline. At the end of June 2008,
Current ratio x 2.4 2.2 2.4 the company's order backlog stood at nearly Rs 165 bn, inclusive of Rs 14.5 bn of
Inventory Turnover Days 131 143 109 domestic orders and Rs 150 bn of international orders. Based on volumes, while the
Debtors Turnover Days 157 102 85 domestic backlog stood at 267 MW, the international backlog stood at 2,772 MW.
Net fixed assets Rs m 6,409 40,732 56,877
We believe that, apart from the cost competitive advantage that is inherent in the wind
Share capital Rs m 2,875 2,878 2,994
generated power, the sector is also likely to benefit from countries the world over
"Free" reserves Rs m 24,217 31,271 61,146
increasingly moving towards adopting the Kyoto Protocol towards reducing carbon-
Net worth Rs m 27,183 34,221 81,013 dioxide emissions by 2012. As far as Suzlon is concerned, the company's leadership
Long term debt Rs m 2,446 11,768 82,923 position in the domestic market and rapid global forays on the back of manufacturing
Total assets Rs m 48,188 125,413 263,901 cost advantages and an integrated supply chain are likely to stand it in good stead
Interest coverage x 17.1 4.8 3.7 over the long term. However, it is pertinent to note that risks have increased for the
Debt to equity ratio x 0.1 0.3 1.0 company over the past few quarters owing to consistent delays in equipment
Sales to assets ratio x 0.8 0.6 0.5 supplies, especially in the international markets. Against this, the company continues
Return on assets % 27.3 24.3 9.5 to win large size orders for equipment supply, which raises the concern whether it will
Return on equity % 27.9 25.3 12.7 be able to execute these orders in time or not.
Return on capital % 29.3 26.8 10.7
Exports to sales % 5.5 22.0 20.4
Imports to sales % 38.9 23.7 18.0
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99
 Regd off: D-13, MIDC Industrial Area, Chinchwad, Pune - 411 019
THERMAX LIMITED E-Mail: slalai@thermaxindia.com
Web site: www.thermaxindia.com
Telephone: (020) 2747 5941 Fax: (020) 2747 2049
CAPITAL GOODS MISCELLANEOUS Tr agent: Karvy Computer, Plot 17-24, Vithalrao Nagar, Madhapur, Hyderabad - 81
Chairman: Meher Pudumjee SEC: Sunil Lalai AUD: B. K. Khare & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1979 500411 TMX:IN 2 486.5 4.1 -26.8 19.8 18.4 1.6 57,965.4 248.4 INE152A01029
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 62.0% Exports (fob) Rs m 3,434
Foreign collaborators : 0.0% Imports (cif) Rs m 3,273 (Rs)
Indian inst/Mut Fund : 14.4% Fx inflow Rs m 3,525 1000
FIIs/GDR : 6.5% Fx outflow Rs m 3,898
Free float : 17.2% Net fx Rs m -373
Shareholders : 29,334
775
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
550
High Rs 315 447 968
Low Rs 113 206 361
Sales per share Rs 134.8 192.1 288.1
Earnings per share Rs 9.2 18.1 24.5 325 DAILY
Cash flow per share Rs 10.6 19.7 26.5
Dividends per share Rs 3.40 6.00 8.00 100 DMA
Dividend yield (eoy) % 1.6 1.8 1.2
100
Book value per share Rs 38.5 49.5 63.4
Shares outstanding (eoy) m 119.16 119.16 119.16 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions FV2 - -
Price / Sales ratio x 1.6 1.7 2.3 No. of months 12 12 12
Avg P/E ratio x 23.1 18.1 27.1 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 20.2 16.6 25.1
Price / Book Value ratio x 5.6 6.6 10.5 From Operations Rs m 2,072 3,527 1,408
Dividend payout % 36.8 33.2 32.6 From Investments Rs m -887 -2,079 -1,393
Avg Mkt Cap Rs m 25,500 38,904 79,182 From Financial Activity Rs m -919 -939 -407
No. of employees `000 3 3 4 Net Cashflow Rs m 267 509 -392
Total wages/salary Rs m 1,599 2,139 2,672
Avg. sales/employee Rs Th 4,937.6 7,961.1 7,690.0 INTERIM RESULTS
Avg. wages/employee Rs Th 491.5 743.7 598.6 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 338.8 748.6 654.3 Net sales Rs m 7,701 8,454 9,221 7,170
Gross profit Rs m 1,010 1,050 1,270 911
INCOME DATA Gross profit margin % 13.1 12.4 13.8 12.7
Net Sales Rs m 16,062 22,896 34,328 Net profit Rs m 692 750 785 637
Other income Rs m 315 711 888 Net profit margin % 9.0 8.9 8.5 8.9
Total revenues Rs m 16,377 23,607 35,216
Gross profit Rs m 1,570 2,518 3,780 KEY DATA
Depreciation Rs m 160 195 232 Parameters Unit FY06 FY07 FY08
Interest Rs m 16 15 17 Energy sales % 76.0 79.4 82.7
Profit before tax Rs m 1,709 3,019 4,419 Environment sales % 24.0 20.6 17.3
Minority Interest Rs m -3 0 0 Order backlog Rs m 17,300 36,720 28,000
Prior Period Items Rs m 0 0 0 Backlog to sales x 1.1 1.6 0.8
Extraordinary Inc (Exp) Rs m 99 144 59 Raw material expenses % 61.4 63.5 64.7
Tax Rs m 703 1,010 1,557
NOTES
Profit after tax Rs m 1,102 2,153 2,921
Gross profit margin % 9.8 11.0 11.0 Thermax operates in a niche segment of the engineering sector. It provides
Effective tax rate % 41.1 33.5 35.2 integrated equipments and services in energy (boilers, heaters, and captive power
plants) and environment friendly industrial solutions like water and waste solutions
Net profit margin % 6.9 9.4 8.5
and chemicals. The company manufactures all kinds of fuel boilers and is amongst
BALANCE SHEET DATA the market leaders in the same. Thermax updates its technology through joint
ventures and strategic alliances with global technology leaders and exports its
Current assets Rs m 5,898 10,235 11,191 systems to around 40 countries all over the world.
Current liabilities Rs m 6,553 11,778 12,588
Net working cap to sales % -4.1 -6.7 -4.1 The company reported a 50% YoY growth in consolidated sales during FY08, with net
Current ratio x 0.9 0.9 0.9 profits growing by 36% YoY. Operating margins remained stable at 11% during the
Inventory Turnover Days 29 34 22 fiscal. During FY08, among others agreements, Thermax signed a technical transfer
Debtors Turnover Days 55 64 56 agreement with Babcock & Wilcox, US, which will help it manufacture sub-critical
Net fixed assets Rs m 1,439 1,789 3,485 utility boilers of upto 800 MW, thus putting the company in the big league of power
Share capital Rs m 238 238 238 equipment suppliers. The company's consolidated order book as of June 2008 stood
"Free" reserves Rs m 4,128 5,453 7,187 at Rs 28 bn of which 75% is for the domestic market while the balance is for exports.
Net worth Rs m 4,591 5,898 7,556 In the process of diversifying from the Indian markets, Thermax is now planning to
Long term debt Rs m 0 0 0 expand into West Asia and South East Asia. The company is also looking forward to
Total assets Rs m 11,307 17,766 20,278 creating an identity in Europe and the US. As indicated by the management, globally
Interest coverage x 107.8 202.3 260.9 high crude oil prices have triggered a major fuel shift from liquids to solid fuels,
Debt to equity ratio x 0.0 0.0 0.0 including biomass and coal. This trend is very pronounced in the markets of South
Sales to assets ratio x 1.4 1.3 1.7 East Asia, which has a healthy demand for the company's boilers and heaters. As far
Return on assets % 24.4 36.8 38.9 as the Indian market is concerned, the need to reduce energy costs to become
Return on equity % 24.0 36.5 38.7 globally competitive has led to companies spending on energy efficient systems, of
Return on capital % 39.7 53.9 59.5 which Thermax is a major manufacturer. Also, the company has identified a range of
Exports to sales % 15.0 13.3 10.0 services, including power plant maintenance. These factors should stand Thermax in
Imports to sales % 9.8 11.3 9.5 good stead over the long term.
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100
 Regd off: Makarpura, Vadodara, Gujarat - 390 014
VOLTAMP TRANSFORMERS LIMITED E-Mail: vnm_ipo@voltamptransformers.com
Web site: www.voltamptransformers.com
Telephone: (0265) 264 2011 Fax: (0265) 264 8454
CAPITAL GOODS MISCELLANEOUS Tr agent: Intime Spectrum, 308, Manisha Society., Vasana Rd., Vadodara-015
Chairman: Lalitkumar H. Patel SEC: V. N. Madhani AUD: Chandulal M. Shah & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1963 532757 VAMP:IN 10 832.9 0.1 -31.0 10.5 10.2 1.5 8,428.4 1.3 INE540H01012
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 51.7% Exports (fob) Rs m 4
Foreign collaborators : 0.0% Imports (cif) Rs m 116 (Rs)
Indian inst/Mut Fund : 15.4% Fx inflow Rs m 4 1900
FIIs/GDR : 16.5% Fx outflow Rs m 117
Free float : 16.4% Net fx Rs m -113
Shareholders : 13,202
1500
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
High Rs NM 735 1,940
1100
Low Rs NM 375 563
Sales per share Rs 245.8 401.0 548.7
Earnings per share Rs 22.7 39.1 79.0 700 DAILY
Cash flow per share Rs 24.6 41.3 82.0
Dividends per share Rs 0.50 8.00 12.50 100 DMA
Dividend yield (eoy) % NM 1.4 1.0
300
Book value per share Rs 68.7 98.4 162.7
Shares outstanding (eoy) m 10.12 10.12 10.12 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08
Bonus/Rights/Conversions FV10 - -
Price / Sales ratio x NM 1.4 2.3 No. of months 12 12 12
Avg P/E ratio x NM 14.2 15.9 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x NM 13.4 15.3
Price / Book Value ratio x NM 5.6 7.7 From Operations Rs m -15 553 456
Dividend payout % 2.2 20.4 15.8 From Investments Rs m -26 -287 -406
Avg Mkt Cap Rs m NM 5,617 12,665 From Financial Activity Rs m 38 -199 -98
No. of employees `000 <500 <500 <500 Net Cashflow Rs m -3 67 -49
Total wages/salary Rs m 67 107 168
Avg. sales/employee Rs Th 20,562.0 26,350.6 31,913.8 INTERIM RESULTS
Avg. wages/employee Rs Th 553.7 694.8 965.5 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 1,900.8 2,571.4 4,592.0 Net sales Rs m 1,481 1,429 1,351 1,701
Gross profit Rs m 276 327 335 345
INCOME DATA Gross profit margin % 18.6 22.9 24.8 20.3
Net Sales Rs m 2,488 4,058 5,553 Net profit Rs m 185 227 217 232
Other income Rs m 44 50 111 Net profit margin % 12.5 15.9 16.1 13.6
Total revenues Rs m 2,532 4,108 5,664
Gross profit Rs m 332 602 1,170 KEY DATA
Depreciation Rs m 19 22 31 Parameters Unit FY06 FY07 FY08
Interest Rs m 4 2 0 Installed Capacity KVA 5,400,000 7,200,000 9,000,000
Profit before tax Rs m 353 628 1,250 Capacity utilization % 83.4 85.9 87.7
Minority Interest Rs m 0 0 0 Raw material costs % of sales 77.1 76.3 70.5
Prior Period Items Rs m 2 2 0 Employee costs % of sales 2.7 2.6 3.0
Extraordinary Inc (Exp) Rs m 0 0 0
Tax Rs m 125 234 451
NOTES
Profit after tax Rs m 230 396 799
Gross profit margin % 13.3 14.8 21.1 Established in 1963, Voltamp Transformers Limited (VTL) is a Vadodara based
Effective tax rate % 35.4 37.3 36.1 company involved in the manufacturing of power and distribution transformers. It has
four independent units each for oil filled power transformer, oil filled distribution
Net profit margin % 9.2 9.8 14.4
transformer, resin impregnated dry type transformer and cast resin type transformers
BALANCE SHEET DATA (in technical collaboration with HTT, Germany). The company's total installed capacity
is around 9,000 MVA per annum and its customers include refineries, various
Current assets Rs m 1,126 1,339 1,773 government and semi-government projects, fertiliser plants, various other industries,
Current liabilities Rs m 328 703 894 state electricity boards. Many of these transformers are also specified by consulting
Net working cap to sales % 32.1 15.7 15.8 engineering companies.
Current ratio x 3.4 1.9 2.0
Inventory Turnover Days 93 68 53 VTL achieved a growth of 37% YoY in its topline during FY08. This was on the back
Debtors Turnover Days 56 34 54 of volume growth, good product mix and higher price realisation. Further, an increase
Net fixed assets Rs m 84 126 194 in operating margins from 14.8% in FY07 to 21.1% in FY08, and higher productivity
Share capital Rs m 101 101 101 led to a commendable 102% YoY growth in the bottomline of the company. VLT
"Free" reserves Rs m 593 894 1,546 started FY09 with an order backlog of Rs 4,072 m, which stood at 0.73 times the
company's FY08 sales.
Net worth Rs m 695 996 1,647
Long term debt Rs m 0 0 0 The Indian government is aggressively pressing for accelerated development of
Total assets Rs m 1,211 1,697 2,548 power generation, transmission and distribution capacities. According to the
Interest coverage x 89.3 315.0 NM management, the transformer industry is expected to grow at a compounded annual
Debt to equity ratio x 0.0 0.0 0.0 rate of above 15% for the next five-year period. VTL is in the process of putting up an
Sales to assets ratio x 2.1 2.4 2.2 additional transformer manufacturing facility with an investment of about Rs 350 m,
Return on assets % 33.7 40.0 48.5 which will be operational by April 2009, and is expected to take the company's
Return on equity % 33.1 39.8 48.5 installed capacity to upto 13,000 MVA.
Return on capital % 51.7 63.5 75.9
Exports to sales % 0.0 0.4 0.1
Imports to sales % 0.3 3.4 2.1
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101
 Regd off: Voltas House `A`, Dr. Ambedkar Road, Chinchpokli, Mumbai-33.
VOLTAS LIMITED E-Mail: shareservices@voltas.com
Web site: www.voltas.com
Telephone: (022) 6665 6511 Fax: (022) 6665 6311
CAPITAL GOODS TATA Tr agent: Voltas Ltd, Share Service Centre, T.B. Kadam Marg, Mumbai - 33
Chairman: Ishaat Hussain SEC: V. P. Malhotra (G. M) AUD: Deloitte Haskins & Sell
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1954 500575 VOLT:IN 1 130.8 -2.6 -9.1 20.8 19.3 1.0 43,263.1 334.9 INE226A01021
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 27.6% Exports (fob) Rs m 382
Foreign collaborators : 0.0% Imports (cif) Rs m 4,895 (Rs)
Indian inst/Mut Fund : 24.0% Fx inflow Rs m 1,520 285
FIIs/GDR : 20.0% Fx outflow Rs m 4,925
Free float : 28.4% Net fx Rs m -3,405
Shareholders : 100,979
220
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
155
High Rs 1,088 121 267
Low Rs 218 64 79
Sales per share Rs 590.6 76.4 96.9
Earnings per share Rs 22.2 6.1 6.3 90
Cash flow per share Rs 26.5 6.6 6.8 DAILY
Dividends per share Rs 6.00 1.00 1.35
100 DMA
Dividend yield (eoy) % 0.9 1.1 0.8
25
Book value per share Rs 82.0 12.8 17.5
Shares outstanding (eoy) m 33.09 330.88 330.38 Sep-05 Jun-06 Mar-07 Dec-07 Sep-08
Bonus/Rights/Conversions - FV1 -
Price / Sales ratio x 1.1 1.2 1.8 No. of months 12 12 12
Avg P/E ratio x 29.4 15.2 27.5 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 24.6 14.1 25.5
Price / Book Value ratio x 8.0 7.2 9.9 From Operations Rs m 618 65 3,567
Dividend payout % 27.0 16.4 21.5 From Investments Rs m -350 457 -1,370
Avg Mkt Cap Rs m 21,608 30,606 57,156 From Financial Activity Rs m -588 -143 -857
No. of employees `000 3 6 7 Net Cashflow Rs m -321 379 1,340
Total wages/salary Rs m 1,925 2,597 2,991
Avg. sales/employee Rs Th 6,845.5 4,320.6 4,341.1 INTERIM RESULTS
Avg. wages/employee Rs Th 674.3 444.1 405.4 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 257.8 344.7 281.5 Net sales Rs m 7,127 6,648 8,421 10,067
Gross profit Rs m 637 552 883 777
INCOME DATA Gross profit margin % 8.9 8.3 10.5 7.7
Net Sales Rs m 19,544 25,267 32,029 Net profit Rs m 431 399 739 619
Other income Rs m 310 700 483 Net profit margin % 6.0 6.0 8.8 6.1
Total revenues Rs m 19,854 25,967 32,512
Gross profit Rs m 1,117 1,284 2,533 KEY DATA
Depreciation Rs m 141 156 167 Parameters Unit FY06 FY07 FY08
Interest Rs m 64 99 90 Electro-mechanical % 58.9 56.0 53.7
Profit before tax Rs m 1,222 1,729 2,759 Unitary cooling % 24.7 24.3 26.9
Minority Interest Rs m 0 -2 -1 Engg. Agency % 12.5 16.6 18.1
Prior Period Items Rs m 0 47 0 Order backlog Rs m 18,500 21,900 48,421
Extraordinary Inc (Exp) Rs m -262 696 316 Backlog to electro-mechl. sales x 1.6 1.6 3
Tax Rs m 224 454 997
NOTES
Profit after tax Rs m 736 2,016 2,077
Gross profit margin % 5.7 5.1 7.9 Voltas, a Tata group company, is a major player in the electro-mechanical engineering
Effective tax rate % 18.3 26.3 36.1 segment, which involves all aspects of construction of infrastructure like electricals
and air conditioning barring the civil structure. The company also has presence in
Net profit margin % 3.8 8.0 6.5
manufacture of forklifts, textile auxiliary, agro-chemicals and trading of chemicals. On
BALANCE SHEET DATA the unitary division front, the company has presence in air conditioners and
refrigerators.
Current assets Rs m 10,122 13,409 16,630
Current liabilities Rs m 8,858 11,179 14,788 Voltas' sales grew by 27% YoY during FY08 led by a strong performance in its electro-
Net working cap to sales % 6.5 8.8 5.8 mechanical projects and cooling products businesses. The electro-mechanical
Current ratio x 1.1 1.2 1.1 projects & services business (54% of standalone sales), grew by 21% YoY during
Inventory Turnover Days 60 74 73 FY08. Voltas has been executing certain large projects, both national and
Debtors Turnover Days 82 70 65 international, which has been the driver for growth in this segment. At the end of
Net fixed assets Rs m 1,635 1,601 1,898 FY08, this segment's order backlog stood at Rs 46 bn (95% of consolidated order
Share capital Rs m 331 331 331 backlog), more than double the order backlog it had at the end of FY07. Higher
"Free" reserves Rs m 2,100 3,613 5,190 operating margins lead to a 34% YoY growth in net profits (excluding extraordinary
items in both fiscals).
Net worth Rs m 2,714 4,237 5,772
Long term debt Rs m 651 737 737 Voltas has emerged from being a consumer appliance company operating in a highly
Total assets Rs m 12,218 16,258 21,114 competitive arena to one that has expertise in the niche engineering area of electro-
Interest coverage x 20.1 18.5 31.7 mechanical projects and services. Going forward, the growth prospects of the
Debt to equity ratio x 0.2 0.2 0.1 company are closely linked to the level of infrastructure activity in India and countries
Sales to assets ratio x 1.6 1.6 1.5 like Middle East, China and South East Asia. Specifically on the international front, in
Return on assets % 23.8 42.5 33.3 4QFY08, the company secured some very large projects, including the Barwa City
Return on equity % 27.1 47.6 36.0 Project (Qatar), Ferrari Experience Project, Formula 1 Racing track (Abu Dhabi), and
Return on capital % 30.4 51.6 48.6 District Cooling Plants in Singapore and Dubai.
Exports to sales % 0.9 0.8 1.2
Imports to sales % 9.0 10.8 15.3
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102
 Regd off: Village Jolva & Vadadla, Near Dahej, Taluka Vagra, Bharuch, Gujarat -130
WELSPUN GUJARAT STAHL ROHREN LTD. E-Mail: pradeep_joshi@welspun.com
Web site: www.welspunpipes.com
Telephone: (02641) 256 011 Fax: (02641) 256 285
CAPITAL GOODS MISCELLANEOUS Tr agent: Intime Spectrum, C13, Pannalal Silk Mills Cmpd., LBS Marg, Mumbai - 78
Chairman: G. R. Goenka SEC: Pradeep Joshi AUD: MGB & Co
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1995 532144 WGS:IN 5 335.7 -7.7 31.2 18.4 15.6 0.4 62,581.9 96.3 INE191B01025
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 36.5% Exports (fob) Rs m 16,546
Foreign collaborators : 8.0% Imports (cif) Rs m 28,240 (Rs)
Indian inst/Mut Fund : 13.0% Fx inflow Rs m 17,284 580
FIIs/GDR : 17.5% Fx outflow Rs m 31,834
Free float : 25.1% Net fx Rs m -14,550
Shareholders : 58,967
440
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
300
High Rs 113 126 538
Low Rs 52 47 98
Sales per share Rs 142.0 191.9 224.7
Earnings per share Rs 4.8 10.2 19.2 160
Cash flow per share Rs 7.5 13.6 22.6 DAILY
Dividends per share Rs 0.50 1.00 1.50 100 DMA
Dividend yield (eoy) % 0.6 1.2 0.5
20
Book value per share Rs 37.2 46.7 88.2
Shares outstanding (eoy) m 128.84 139.82 177.75 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions BC BC WC,FCCB
Price / Sales ratio x 0.6 0.5 1.4 No. of months 12 12 12
Avg P/E ratio x 17.3 8.5 16.6 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 11.0 6.4 14.1
Price / Book Value ratio x 2.2 1.9 3.6 From Operations Rs m 132 -265 2,483
Dividend payout % 10.5 9.8 7.8 From Investments Rs m -5,160 -6,503 -18,565
Avg Mkt Cap Rs m 10,629 12,094 56,525 From Financial Activity Rs m 5,633 7,274 15,212
No. of employees `000 NA 4 NA Net Cashflow Rs m 606 507 -870
Total wages/salary Rs m 431 639 860
Avg. sales/employee Rs Th NA 6,341.0 NA INTERIM RESULTS
Avg. wages/employee Rs Th NA 151.0 NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA 336.7 NA Net sales Rs m 9,276 10,364 12,275 10,904
Gross profit Rs m 1,533 1,741 1,963 1,740
INCOME DATA Gross profit margin % 16.5 16.8 16.0 16.0
Net Sales Rs m 18,298 26,835 39,944 Net profit Rs m 825 974 1,022 712
Other income Rs m 131 163 600 Net profit margin % 8.9 9.4 8.3 6.5
Total revenues Rs m 18,429 26,998 40,544
Gross profit Rs m 1,283 2,863 5,783 KEY DATA
Depreciation Rs m 352 476 609 Parameters Unit FY06 FY07 FY08
Interest Rs m 158 360 538 Capacity Utilization % 41 54 67
Profit before tax Rs m 904 2,190 5,236 Welded pipes (installed capacity) MT 930,000 930,000 1,000,000
Minority Interest Rs m 0 0 0 Coating of pipes (installed cap.) Sq. Mts. 14,500,000 14,500,000 14,500,000
Prior Period Items Rs m -4 -27 20 M. S. plates (installed capacity) MT 12,000 12,000 1,000,000
Extraordinary Inc (Exp) Rs m 0 0 0 Raw Materials % 75.6 71.4 68.8
Tax Rs m 286 738 1,847
NOTES
Profit after tax Rs m 614 1,425 3,409
Gross profit margin % 7.0 10.7 14.5 Welspun Gujarat Stahl Rohren Ltd. (WGSRL), the flagship company of the US$ 3
Effective tax rate % 31.6 33.7 35.3 Welspun Group is the second largest (large diameter) pipe producer in the world.
Incorporated in 1995, it manufactures pipe and related niche products. The energy
Net profit margin % 3.4 5.3 8.5
transportation sector (oil, gas, crude and water) is one of its major customers.
BALANCE SHEET DATA WGSRL has grown its revenues over 200 times in the last decade, from Rs 180 m in
FY98 to almost Rs 40,100 m in FY08. The company is amongst the few global pipe
Current assets Rs m 12,788 16,354 26,121 suppliers whose product mix makes it qualified for practically any pipeline contract
Current liabilities Rs m 9,156 10,558 17,061 across the globe. In the last 10-12 years, the company has expanded its operations
Net working cap to sales % 19.8 21.6 22.7 to nearly 20 countries.
Current ratio x 1.4 1.5 1.5
Inventory Turnover Days 108 70 118 WGSRL's revenues increased by 49% YoY during FY08 on account of high volumes
Debtors Turnover Days 61 80 66 as well as high realization per tonne. Despite rise in input cost, operating profit margin
Net fixed assets Rs m 10,113 16,493 26,807 improved from 10.7% in FY07 to 14.5% in FY08, mainly because of supply of higher
Share capital Rs m 644 699 889 application pipes. These factors combined led to a substantial increase of 139% YoY
"Free" reserves Rs m 3,025 4,705 12,562 in net profit.
Net worth Rs m 4,795 6,535 15,672 With an increasing number of orders coming in from the US and its neighboring
Long term debt Rs m 6,298 10,127 23,608 countries, WGSRL is setting up a manufacturing facility in the US. Once complete (by
Total assets Rs m 22,901 33,103 59,745 December 2008), the unit will produce 300,000 tones of tubular pipes and will cater
Interest coverage x 6.7 7.1 10.7 to the US and the adjacent markets. The company has a long term pipe purchase
Debt to equity ratio x 1.3 1.5 1.5 agreements with oil and gas companies like Chevron, Saudi Aramco and
Sales to assets ratio x 0.8 0.8 0.7 TransCanada. It intends to increase its capacity from 1 m tonnes per annum (MTPA)
Return on assets % 7.0 10.7 10.0 to 1.75 MTPA by March 2009. With large investments by both pubic and private
Return on equity % 12.8 21.8 21.8 players, the share of transportation of oil & gas through pipelines is expected to
Return on capital % 9.5 15.1 14.8 increase in future both domestically and globally. The management expects to
Exports to sales % 54.5 40.2 41.4 achieve high growth going forward by increasing utilisation of current capacity, while
Imports to sales % 59.7 55.2 70.7 also aggressively setting up new capacity in India and abroad.
GET MORE INFO AT WWW.EQUITYMASTER.COM

103
 CEMENT
The Indian cement industry with a total capacity of about 190
m tonnes in FY08 is the second largest market after China.
Although consolidation has taken place in the Indian cement
industry with the top five players controlling almost 50% of
the capacity, the balance capacity still remains pretty
fragmented.
Despite the fact that the Indian cement industry has clocked
production of more than 100 m tonnes for the last five years,
registering an average growth of nearly 9%, the per capita
consumption of around 150 kgs compares poorly with the world
average of over 260 kgs and more than 450 kgs in China. This,
more than anything underlines the tremendous scope for
growth in the Indian cement industry in the long term.
Cement, being a bulk commodity, is a freight intensive industry
and transporting cement over long distances can prove to be
uneconomical. This has resulted in cement being largely a
regional play with the industry divided into five main regions
viz. north, south, west, east and the central region. While the
southern region always had excess capacity in the past owing
to abundant availability of limestone, the western and northern
region are the most lucrative markets on account of higher
income levels. However, with capacity addition taking place at
a slower rate as compared to growth in demand, the demand
supply parity has been restored to some extent in the Southern
region for the medium term. Considering the pace at which
infrastructural activity is taking place in different regions, the
players have lined up expansion plans accordingly.
Given the high potential for growth, quite a few foreign
transnationals have been eyeing the Indian markets and are
planning to acquire domestic companies. Already, while
companies like Lafarge, Heidelberg and Italicementi have made
a couple of acquisitions, Holcim has acquired stake in domestic
companies Ambuja Cements and ACC and is increasing its stake
gradually to gain full control. After acquiring stake in big
companies, transnationals eyed median capacity producers.
Italcementi acquired 100% stake in Zuari Cement and 95%
stake in Shree Vishnu. Cimpor, the Portugese cement
manufacturer, acquired Grasim's stake (53.63%) in Shree Dig
vijay. However, it must be noted that the transnationals will
find the going tough since cement is a game of volumes and
with the median capacity of fragmented players, the
transnationals will have to acquire capacities piecemeal and
this route is fraught with a lot of uncertainties. The global
players put together account for quarter share of the domestic
market. Further, turning around few of the companies at a time
when the cycle is at its peak would be a difficult task.
FY08
During FY08 production, consumption and capacity addition
clocked 8%YoY growth. India owing to its locational advantage
has been catering to the cement requirements of the Middle
East and the South East Asian nations. However, the exports
were curtailed in FY08 in order to satisfy the domestic demand
and contain inflation.
While demand growth stood at 8% YoY, average industry
cement realisations (average of price per bag of cement
published in the monthly CMIE) were higher by about 6% YoY.
This was owing to slowdown in demand as inflationary
situation in the economy and the rising cost of funds led to a
lull in the real estate sector and construction activity. Further,
the announced capacities have started coming on stream and
the same have started exerting pressure on realisations.
In the budget, the excise duty on the bulk cement was revised
to Rs 400 per tonne or ad valorem duty of 14% which ever is
higher, while that on clinker was hiked by Rs 100 per tonne to
104
Rs 450 per tonne. While the government refrained from cutting
excise duty and countervailing duties, it increased budgetary
allocation for roads under NHDP. The government has
continued to provide a fillip to the infrastructure sector in the
budget.
KEY POINTS
Supply: The demand-supply situation is currently balanced,
however, excess supply situation is expected to result in as
planned capacities become operational.
Demand: Housing sector acts as the principal growth driver
for cement. However, in recent times, industrial and
infrastructure sector have also emerged as demand drivers
for cement.
Barriers to entry: High capital costs and long gestation
periods. Access to limestone reserves (principal raw material
for the manufacture of cement) also acts as a significant
entry barrier.
Bargaining power of suppliers: Licensing of coal and
limestone reserves, supply of power from the state grid and
availability of railways for transport are all controlled by a
single entity, which is the government. However, nowadays
producers are relying more on captive power, but the
shortage of coal and rising fuel prices remain a concern.
Bargaining power of customers: Cement is a commodity
business and sales volumes mostly depend upon the
distribution reach of the company. However, things are
changing and few brands have started commanding a
premium on account of better quality perception.
Competition: Due to large number of players in the industry
and very little brand differentiation to speak of, the
competition is intense with players resorting to expanding
reach and achieving pan India presence.
CURRENT SCENARIO AND PROSPECTS
The industry is likely to maintain its growth momentum and
continue growing at around 8% to 10% in the medium to long
term. Government initiatives in the infrastructure sector and
the housing sector are likely to be the main drivers of growth
for the industry.
Recently, demand has surpassed supply, resulting in healthy
cement prices across the country. However, this scenario is
likely to reverse as the industry has lined up huge capacity
expansion plans. For the industry, fresh capacities announced
till date will add up 60 to 70 MT to the existing capacity (190
MT), and are expected to go on stream by FY10. As the
capacities become operational (this has started taking place),
supply may once again outstrip demand putting downward
pressure on margins. Having said that, temporary relief may
be provided if there are delays in planned expansion plans.
The infrastructure spending and the steady growth of the
construction sector (read housing) has been a boon. However,
recently the demand has slowed down as real estate and
construction activities have taken a back seat with the
hardening of interest rates. The importance of the housing
sector can be gauged from the fact that it consumes almost
75%-80% of the country's cement. If this support wanes, it
would further lead to demand supply mismatch. Also, the hike
in prices of coal and petroleum products could impact cement
companies' margins.
The budget measures such as increasing excise duties have
proved to be futile and in the future too, we believe that it is
the market dynamics that will determine these variables.
 CEMENT
GLOBAL COMPARISON
FY08/CY07 Unit ACC Holcim Heidelberg Lafarge Cemex
Installed cement plant capacity MTPA 22.4 197.8 87.9 178.0 96.7
Revenues US$ m 1,747 22,543 14,888 24,142 21,673
Cost per tonne US$ m 57 93 136 112 193
EBDITA US$ m 478 4,187 2,975 4,239 2,971
EBDITA margin % 27.4 18.6 20.0 17.6 13.7
Net profit US$ m 359 3,788 2,904 2,955 2,391
Net profit margin % 20.5 16.8 19.5 12.2 11.0
Return on equity % 32.1 24.2 30.3 19.6 12.8
Return on asset % 20.5 9.4 7.2 7.6 4.8
Debt to equity x 0.1 0.7 1.9 0.8 1.1

LAFARGE (FRANCE)

With 90,000 employees and operations in 76 countries, Lafarge, holds top-ranking positions in each of its divisions:
cement, aggregates & concrete and gypsum. The company is number one in the world in cement and aggregates
and ranks third in the world in concrete and gypsum. Lafarge's 2007 sales were 18 bn euros (approx US$ 24 bn).
Founded in 1833, the company established a reputation for effective and innovative R&D. It developed aluminous
cements, and 'Lafarge' became a synonym for these cements throughout the English-speaking world. It was also
an early pioneer in the production of white portland cement. Lafarge is the only company in the construction materials
sector to be listed in the 2008 '100 Global Most Sustainable Corporations in the World'.

CEMEX (MEXICO)

CEMEX, one of the world's largest cement producers operates in more than 50 countries across 5 continents.
Founded in 1906, CEMEX has grown from a local player into a top global building-solutions company with more
than 60,000 employees. The company is strategically positioned in the Americas, Europe, Africa, the Middle East,
Australia and Asia with an annual cement production capacity of 96 MT. The company holds a leading position in the
ready-mix concrete and aggregates markets with annual production levels of over 80 million cubic meters and more
than 222 million metric tons, respectively. The company owns 67 cement plants, more than 2,360 ready-mix concrete
facilities and has a minority participation in 18 cement plants. The company also has in place 274 land-distribution
centers, 97 marine terminals and 564 aggregates quarries. In 2007, Cemex recorded sales of almost US$ 22 bn.

HOLCIM (SWITZERLAND)

Holcim is one of the world's leading suppliers of cement, aggregates (crushed stone, sand and gravel), ready mix
concrete and construction-related services. From its origins in Switzerland, the Group has grown into a global
player with strong market presence in over 70 countries across all continents and employs around 90,000 people.
In 2007, Holcim recorded sales of almost US$ 23 bn. The company initiated production of cement in 1912 in the
village of Holderbank, (Lenzburg district, Canton of Aargau, ca. 40 km from Zrich) and used the name Holderbank
AG until 2001 when it changed to Holcim. The international presence of Holcim consists of a balanced mix of
companies in industrialized and emerging markets.

HEIDELBERG (GERMANY)

Heidelberg Cement is the global market leader in aggregates and a prominent player in the fields of cement,
concrete and other downstream activities, which makes it one of the world's largest manufacturers of building
materials. The company is the largest investor in the building and construction materials industry in Central and
Eastern Europe. The group employs 65,000 people in around 50 countries and its core products are cement, ready-
mixed concrete, aggregates and related activities. It clocked revenues of 11 bn euros (approx US$ 15 bn) in 2007.
The company was founded in Heidelberg in 1873. Up to the end of the 1960s, it operated exclusively in the south of
Germany. First international steps followed with a participation in the French cement company Vicat and the
acquisition of Lehigh Cement in the US at the end of the 1970s.

Source: Yahoo Finance, Company reports TTM - Trailing twelve months

105
 Regd off: Cement House, 121, Maharshi Karve Road, Mumbai - 400 020
ACC LIMITED + $ E-Mail: investorsupport@acccement.com
Web site: www.acclimited.com
Telephone: (022) 6665 4473 Fax: (022) 6631 7458
CEMENT MISCELLANEOUS Tr agent: In-house
Chairman: N. S. Sekhsaria SEC: A. Anjeneyan AUD: S. R. Batliboi & Associates
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1936 500410 ACC:IN 10 584.7 -5.1 -46.0 7.7 6.3 3.4 109,709.6 140.6 INE012A01025
SHAREHOLDING FX Transaction (CY07) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 42.7% Exports (fob) Rs m 0
Foreign collaborators : 0.3% Imports (cif) Rs m 1,774 (Rs)
Indian inst/Mut Fund : 21.1% Fx inflow Rs m 896 1435
FIIs/GDR : 15.9% Fx outflow Rs m 2,288
Free float : 20.1% Net fx Rs m -1,392
Shareholders : 138,445
1160
No. of months 9 12 12
Year ending 31/12/05 31/12/06 31/12/07
EQUITY SHARE DATA
High Rs 569 1,192 1,315 885
Low Rs 318 501 680
Sales per share Rs 182.2 310.7 374.6
Earnings per share Rs 27.7 65.8 75.7 610
Cash flow per share Rs 36.9 79.7 92.2 DAILY
Dividends per share Rs 8.00 15.00 20.00 100 DMA
Dividend yield (eoy) % 1.8 1.8 2.0
335
Book value per share Rs 115.6 168.0 220.5
Shares outstanding (eoy) m 185.56 188.33 188.67 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions ESOS,BC BC,ESOP ESOP,BC
Price / Sales ratio x 2.4 2.7 2.7 No. of months 9 12 12
Avg P/E ratio x 16.0 12.9 13.2 Year ending 31/12/05 31/12/06 31/12/07
CASH FLOW
P/CF ratio (eoy) x 12.0 10.6 10.8
Price / Book Value ratio x 3.8 5.0 4.5 From Operations Rs m 6,743 14,110 20,244
Dividend payout % 28.9 22.8 26.4 From Investments Rs m -2,271 -4,677 -8,431
Avg Mkt Cap Rs m 82,296 159,421 188,186 From Financial Activity Rs m -4,181 -4,273 -10,571
No. of employees `000 9 9 10 Net Cashflow Rs m 291 5,161 1,243
Total wages/salary Rs m 1,992 3,225 3,566
Avg. sales/employee Rs Th 3,686.8 6,338.7 7,067.4 INTERIM RESULTS
Avg. wages/employee Rs Th 217.2 349.4 356.6 3QCY07 4QCY07 1QCY08 2QCY08
Avg. net profit/employee Rs Th 560.2 1,342.9 1,427.4 Net sales Rs m 16,788 17,856 17,958 18,218
Gross profit Rs m 4,485 6,106 4,707 4,136
INCOME DATA Gross profit margin % 26.7 34.2 26.2 22.7
Net Sales Rs m 33,808 58,513 70,674 Net profit Rs m 2,885 4,351 3,210 2,591
Other income Rs m 933 1,573 1,718 Net profit margin % 17.2 24.4 17.9 14.2
Total revenues Rs m 34,741 60,086 72,392
Gross profit Rs m 5,851 16,563 19,314 KEY DATA
Depreciation Rs m 1,717 2,610 3,130 Parameters Unit CY05 CY06 CY07
Interest Rs m 676 792 744 Cement Capacity MTPA 16.8 19.9 22.4
Profit before tax Rs m 4,391 14,734 17,158 Capacity Utilisation % 91.2 94.1 88.8
Minority Interest Rs m -41 -8 -2 Realisation per tonne Rs m 2,037 2,816 3,509
Prior Period Items Rs m -132 -189 0 Cost per tonne Rs m 2,144 2,232 2,580
Extraordinary Inc (Exp) Rs m 2,445 1,609 2,099 Market Share (capacity) % 10.9 12.3 13.2
Tax Rs m 1,526 3,750 4,981
NOTES
Profit after tax Rs m 5,137 12,396 14,274
Gross profit margin % 17.3 28.3 27.3 ACC is the oldest cement manufacturer in the country. The company has a total
Effective tax rate % 34.8 25.5 29.0 capacity of 22.4 MT (million tonnes) and commands a share of little over 13% of
industry capacity. With 14 plants, more than 30 ready mix concrete plants and a 9,000
Net profit margin % 15.2 21.2 20.2
strong dealer network, ACC is one of the few companies to have a pan-India
BALANCE SHEET DATA presence. It is particularly strong in the northern and eastern regions. Ambuja
Cements (previously known as Gujarat Ambuja), one of the leading players in the
Current assets Rs m 14,209 19,540 22,340 industry, in consortium with Switzerland's Holcim, has acquired close to 43% stake in
Current liabilities Rs m 12,504 15,381 20,785 the company.
Net working cap to sales % 5.0 7.1 2.2
Current ratio x 1.1 1.3 1.1 During 1HCY08, ACC reported subdued numbers as slowdown in growth of volumes
Inventory Turnover Days 68 41 38 (sales up 4% YoY) as well as realisations (2.5% YoY) limited growth in topline. The
Debtors Turnover Days 24 14 16 company achieved merely 6% YoY growth in topline. The company's volumes were
Net fixed assets Rs m 31,946 35,345 40,384 impacted partly due to the constraints it faced on the production and dispatches front
Share capital Rs m 1,855 1,875 1,878 and on account of economic slowdown. The spurt in cost of operations, which can be
"Free" reserves Rs m 17,788 27,898 39,535 attributed to the staggering rise in input cost, exerted downward pressure on
operating profits (declined by 18.7% YoY) in 1HCY08. The fall in net profits (17%
Net worth Rs m 21,451 31,638 41,610
YoY) was in tandem with operating profits. If one excludes the extraordinary income,
Long term debt Rs m 7,440 2,971 2,954
the fall in net profits was steeper at 23% YoY.
Total assets Rs m 48,970 59,642 70,629
Interest coverage x 7.5 19.6 24.1 Going forward, ACC would continue to benefit from Holcim's expertise in
Debt to equity ratio x 0.3 0.1 0.1 manufacturing cement and in terms of growth vision and global expertise. ACC has
Sales to assets ratio x 0.7 1.0 1.0 outlined capex to the tune of Rs 36 bn to expand capacity by nearly 8 MT, set up
Return on assets % 20.1 38.1 33.7 ready mix units and captive power plants. While we remain positive on the sector
Return on equity % 23.9 39.2 34.3 from a long term perspective, considering near to medium term scenario we are
Return on capital % 25.4 48.9 44.9 concerned about escalating costs apart from the pressure on realisations. The all
Exports to sales % 0.5 0.0 0.0 time high realisations have started witnessing downward pressure as the announced
Imports to sales % 1.1 1.4 2.5 capacities have started coming on stream.
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106
 Regd off: P. O. Ambujanagar, Taluka Kodinar, Dist. Junagadh, Gujarat - 362 715
AMBUJA CEMENTS LIMITED $ E-Mail: shares@ambujacement.com
Web site: www.gujaratambuja.com
Telephone: (022) 6659 7300 Fax: (022) 2284 6270
CEMENT MISCELLANEOUS Tr agent: Sharepro Services, 3rd Floor, Satam Estate, Chakala, Mumbai - 99
Chairman: Suresh Neotia SEC: B. L. Taparia (WD) AUD: S. R. Batliboi & Associates
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1981 500425 ACEM:IN 2 81.5 -6.8 -40.9 6.7 6.0 4.3 124,011.7 131.0 INE079A01024
SHAREHOLDING FX Transaction (CY07) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.8% Exports (fob) Rs m 2,775
Foreign collaborators : 45.7% Imports (cif) Rs m 3,959 (Rs)
Indian inst/Mut Fund : 14.1% Fx inflow Rs m 2,779 170
FIIs/GDR : 26.9% Fx outflow Rs m 5,288
Free float : 12.6% Net fx Rs m -2,509
Shareholders : 238,159
140
No. of months 12 18 12
Year ending 30/6/2005 31/12/2006 31/12/2007
EQUITY SHARE DATA
110
High Rs 469 148 161
Low Rs 49 59 100
Sales per share Rs 22.8 42.1 38.0
Earnings per share Rs 3.8 11.0 12.1 80
Cash flow per share Rs 5.5 13.1 13.7 DAILY
Dividends per share Rs 1.80 3.30 3.50 100 DMA
Dividend yield (eoy) % 0.7 3.2 2.7
50
Book value per share Rs 17.7 25.7 31.9
Shares outstanding (eoy) m 1,352.22 1,517.16 1,522.38 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions FV2,B1:2 A,ESOS ESOP
Price / Sales ratio x 11.4 2.5 3.4 No. of months 12 18 12
Avg P/E ratio x 67.7 9.4 10.7 Year ending 30/6/2005 31/12/2006 31/12/2007
CASH FLOW
P/CF ratio (eoy) x 47.5 7.9 9.5
Price / Book Value ratio x 14.7 4.0 4.1 From Operations Rs m 7,293 18,409 15,511
Dividend payout % 47.0 30.1 28.9 From Investments Rs m -2,990 -5,891 -1,612
Avg Mkt Cap Rs m 350,495 157,026 198,442 From Financial Activity Rs m -4,122 -9,673 -11,178
No. of employees `000 2 4 NA Net Cashflow Rs m 181 2,816 2,721
Total wages/salary Rs m 1,154 2,389 2,108
Avg. sales/employee Rs Th 14,595.7 14,490.3 NA INTERIM RESULTS
Avg. wages/employee Rs Th 546.9 541.5 NA 3QCY07 4QCY07 1QCY08 2QCY08
Avg. net profit/employee Rs Th 2,455.5 3,773.1 NA Net sales Rs m 14,644 12,999 16,549 15,698
Gross profit Rs m 5,452 4,332 5,160 4,743
INCOME DATA Gross profit margin % 37.2 33.3 31.2 30.2
Net Sales Rs m 30,797 63,931 57,921 Net profit Rs m 4,035 3,133 3,321 2,629
Other income Rs m 1,045 951 1,938 Net profit margin % 27.6 24.1 20.1 16.7
Total revenues Rs m 31,842 64,882 59,859
Gross profit Rs m 8,303 23,261 21,169 KEY DATA
Depreciation Rs m 2,195 3,280 2,372 Parameters Unit FY05 CY06 CY07
Interest Rs m 966 1,195 797 Cement Capacity MTPA 13.3 16.3 18.5
Profit before tax Rs m 6,187 19,737 19,938 Capacity Utilisation % 96.3 138.8 91.1
Minority Interest Rs m -169 -4 0 Realisation per tonne Rs m 2,426 3,922 3,448
Prior Period Items Rs m -24 0 -2,020 Cost per tonne Rs m 1,773 1,882 2,228
Extraordinary Inc (Exp) Rs m -5 308 7,955 Market Share (capacity) % 8.6 10.1 10.9
Tax Rs m 808 3,394 7,413
NOTES
Profit after tax Rs m 5,181 16,647 18,460
Gross profit margin % 27.0 36.4 36.5 Ambuja Cements (previously known as Gujarat Ambuja), with a cement capacity of
Effective tax rate % 13.1 17.2 37.2 18.5 m tonnes (almost 11% of industry capacity) is the third largest player in the
Indian cement industry following ACC, Grasim -Ultratech. Ambuja Cements, which
Net profit margin % 16.8 26.0 31.9
pioneered the concept of transport of cement by sea, is particularly strong in the
BALANCE SHEET DATA northern and western markets. Holcim Mauritius, an indirect wholly owned subsidiary
of Holcim (Europe), over a period of time has acquired directly and indirectly close to
Current assets Rs m 6,457 11,789 15,837 36% stake in the company.
Current liabilities Rs m 4,465 7,047 11,683
Net working cap to sales % 6.5 7.4 7.2 On the back of 6% YoY growth both in volumes and realisations, the company
Current ratio x 1.4 1.7 1.4 reported 12% YoY growth in topline during 1HCY08. The rising cost of operations,
Inventory Turnover Days 42 24 37 which increased by 20% YoY on a cost per tonne basis during 1HCY08, resulted in
Debtors Turnover Days 6 5 9 an 11% YoY fall in operating profits. The drop in net profits (36% YoY) was steeper
Net fixed assets Rs m 24,418 31,396 36,748 as compared to the fall in operating profits on account of higher extraordinary income
Share capital Rs m 2,704 3,034 3,045 earned during the same period last year. If one excludes the extraordinary items then
"Free" reserves Rs m 14,183 29,321 80,797 the fall in net profits was restricted to 2% YoY. The same is attributed to lower interest
costs and tax expenses.
Net worth Rs m 23,915 38,941 48,530
Long term debt Rs m 7,824 6,442 2,448 The prospects of the cement sector for the long term remain intact on account of
Total assets Rs m 43,883 58,485 67,388 infrastructural activity taking place in the economy. However, in the near to medium
Interest coverage x 7.4 17.5 26.0 term, the company's margins are likely to remain under pressure on account of two
Debt to equity ratio x 0.3 0.2 0.1 factors namely the escalating cost of operations and planned capacities coming on
Sales to assets ratio x 0.7 1.1 0.9 stream causing supply to outstrip demand. In order to maintain its market share and
Return on assets % 19.4 39.3 37.8 cater to the long term demand for the commodity, the company has outlined total
Return on equity % 21.7 42.7 38.0 investments of Rs 35 bn to add 6 MT by 2009 to the total current cement capacity of
Return on capital % 21.9 46.8 52.3 18.5 MTPA. In order to control costs the company has also planned to set up captive
Exports to sales % 8.7 8.0 4.8 power plants.
Imports to sales % 0.9 4.9 6.8
GET MORE INFO AT WWW.EQUITYMASTER.COM

107
 Regd off: Dhun Building, 827, Anna Salai, Chennai - 600 002
INDIA CEMENTS LIMITED E-Mail: investor@indiacements.co.in
Web site: www.indiacements.co.in
Telephone: (044) 2852 1526 Fax: (044) 2852 0702
CEMENT MISCELLANEOUS Tr agent: Integrated Enterprises, II Flr.,Kences Tower, North Usman Rd.,Chennai-17
Chairman: N. Srinivasan SEC: G. Balakrishnan (VP) AUD: Brahmayya & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1946 530005 ICEM:IN 10 143.2 -7.9 -45.6 6.3 5.2 1.4 40,365.2 38.8 INE383A01012
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 28.1% Exports (fob) Rs m 9
Foreign collaborators : 0.0% Imports (cif) Rs m 1,708 (Rs)
Indian inst/Mut Fund : 17.8% Fx inflow Rs m 49 390
FIIs/GDR : 30.9% Fx outflow Rs m 1,776
Free float : 23.3% Net fx Rs m -1,727
Shareholders : 80,469
305
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
220
High Rs 172 255 333
Low Rs 61 103 146
Sales per share Rs 80.8 102.4 108.1
Earnings per share Rs 2.2 26.1 22.8 135
Cash flow per share Rs 6.4 30.8 27.3 DAILY
Dividends per share Rs 0.00 1.00 2.00 100 DMA
Dividend yield (eoy) % 0.0 0.6 0.8
50
Book value per share Rs 78.6 94.5 113.8
Shares outstanding (eoy) m 190.77 220.37 281.87 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions GDS WC,ESOP A,ESOP
Price / Sales ratio x 1.4 1.7 2.2 No. of months 12 12 12
Avg P/E ratio x 51.9 6.9 10.5 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 18.2 5.8 8.8
Price / Book Value ratio x 1.5 1.9 2.1 From Operations Rs m 1,597 6,501 10,096
Dividend payout % 0.0 3.8 8.8 From Investments Rs m -239 -2,464 -10,102
Avg Mkt Cap Rs m 22,225 39,446 67,508 From Financial Activity Rs m -945 -2,225 1,959
No. of employees `000 3 3 3 Net Cashflow Rs m 413 1,812 1,953
Total wages/salary Rs m 831 1,042 2,064
Avg. sales/employee Rs Th 5,126.7 7,154.1 9,382.3 INTERIM RESULTS
Avg. wages/employee Rs Th 276.3 330.4 635.3 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 142.3 1,823.1 1,974.8 Net sales Rs m 8,902 8,545 9,781 9,737
Gross profit Rs m 3,073 2,449 2,629 2,981
INCOME DATA Gross profit margin % 34.5 28.7 26.9 30.6
Net Sales Rs m 15,421 22,564 30,483 Net profit Rs m 2,226 1,271 1,525 1,639
Other income Rs m 89 129 615 Net profit margin % 25.0 14.9 15.6 16.8
Total revenues Rs m 15,510 22,693 31,098
Gross profit Rs m 2,497 8,207 10,669 KEY DATA
Depreciation Rs m 790 1,028 1,281 Parameters Unit FY06 FY07 FY08
Interest Rs m 1,417 1,426 1,033 Cement Capacity MTPA 7.7 8.5 8.8
Profit before tax Rs m 379 5,882 8,970 Capacity Utilisation % 94.4 98.8 104.8
Minority Interest Rs m 0 0 0 Realisation per tonne Rs m 2,100 2,673 3,288
Prior Period Items Rs m 0 0 0 Cost per tonne Rs m 1,764 1,805 2,131
Extraordinary Inc (Exp) Rs m 96 0 -481 Market Share (capacity) % 4.8 5.2 4.7
Tax Rs m 47 132 2,073
NOTES
Profit after tax Rs m 428 5,750 6,416
Gross profit margin % 16.2 36.4 35.0 India Cements, South India's largest cement producer and a leading exporter which
Effective tax rate % 12.4 2.2 23.1 successfully emerged from debt restructuring in FY05, has an installed capacity of
about 9 MTPA and enjoys 18% market share in the region. The company has 7 plants
Net profit margin % 2.8 25.5 21.0
out of which 3 are in Tamilnadu and 4 in Andhra Pradesh. The company has access
BALANCE SHEET DATA to huge limestone resources and plans to expand capacity to 18 MTPA through
modernisation of existing plants and by venturing into the northern region. The
Current assets Rs m 12,092 14,130 18,441 company's principal activity is to manufacture and market cement under the brand
Current liabilities Rs m 3,744 4,345 9,851 name Sankar, Coromandel and Raasi. It has a strong distribution network with over
Net working cap to sales % 54.1 43.4 28.2 10,000 stockists.
Current ratio x 3.2 3.3 1.9
Inventory Turnover Days 46 37 40 The company reported impressive 73% YoY growth in topline in FY08 backed by
Debtors Turnover Days 57 42 38 robust growth in realisations (over 50% YoY) and 10% growth in volumes. The strong
Net fixed assets Rs m 22,032 29,499 40,526 growth in realisations led to the 62% YoY growth in operating profits. Net profits
Share capital Rs m 1,908 2,204 2,819 reported significantly lower growth of 42% YoY as compared to the growth in
"Free" reserves Rs m 7,614 9,503 20,590 operating profits mainly due to higher depreciation charges and tax outgo. If one
excludes the six-fold growth in other income, the growth in net profits is still lower at
Net worth Rs m 15,001 20,814 32,073
31% YoY. The company owns an IPL (Indian Premiere League) franchise for the
Long term debt Rs m 7,315 7,557 8,575
Chennai team at approximately Rs 3.6 bn payable over 10 years. The company had
Total assets Rs m 34,734 46,177 62,297 indicated that the move is a part of the company's long-term marketing plan, which
Interest coverage x 1.3 5.1 9.7 has propelled its other expenditure.
Debt to equity ratio x 0.5 0.4 0.3
Sales to assets ratio x 0.4 0.5 0.5 The company has lined up capacity expansion plans to diversify geographically in
Return on assets % 8.3 25.3 18.3 order to de-risk revenues, increase volumes and maintain market share. While this is
Return on equity % 2.9 27.6 20.0 a positive move from a long-term standpoint, the rising costs coupled with expected
Return on capital % 8.5 25.8 23.4 softening of realisations will pressurise margins in the medium term. Given the fact
Exports to sales % 4.2 1.2 0.0 that the current topline growth has been driven more by realisations than volumes,
Imports to sales % 0.4 0.7 5.6 caution needs to be exercised.
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108
 Regd off: Ramamandiram, Rajapalayam - 626 117, Tamil Nadu
MADRAS CEMENTS LIMITED E-Mail: ksn@madrascements.co.in
Web site: www.madrascements.com
Telephone: (044) 2847 8666 Fax: (044) 2847 8676
CEMENT MISCELLANEOUS Tr agent: In-house
Chairman: P. R. Ramasubrahmaneya Rajha SEC: K. Selvanayagam AUD: M. S. Jagannathan
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1957 500260 MC:IN 10 2,547.2 -4.4 -31.2 7.4 6.0 1.6 30,311.7 0.5 INE331A01029
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 41.3% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 1,129 (Rs)
Indian inst/Mut Fund : 21.5% Fx inflow Rs m 0 5000
FIIs/GDR : 5.4% Fx outflow Rs m 3,089
Free float : 31.8% Net fx Rs m -3,089
Shareholders : 12,596
4000
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
3000
High Rs 2,245 3,750 5,040
Low Rs 932 1,745 2,475
Sales per share Rs 834.9 1,303.1 1,690.7
Earnings per share Rs 65.4 255.0 343.1 2000
Cash flow per share Rs 119.4 314.5 421.5 DAILY
Dividends per share Rs 15.00 25.00 40.00 100 DMA
Dividend yield (eoy) % 0.9 0.9 1.1
1000
Book value per share Rs 322.8 550.3 799.1
Shares outstanding (eoy) m 12.08 12.08 11.90 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - BB
Price / Sales ratio x 1.9 2.1 2.2 No. of months 12 12 12
Avg P/E ratio x 24.3 10.8 11.0 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 13.3 8.7 8.9
Price / Book Value ratio x 4.9 5.0 4.7 From Operations Rs m 2,393 3,084 4,758
Dividend payout % 22.9 9.8 11.7 From Investments Rs m -913 -3,256 -13,105
Avg Mkt Cap Rs m 19,184 33,190 44,714 From Financial Activity Rs m -1,422 245 8,011
No. of employees `000 2 2 2 Net Cashflow Rs m 59 73 -336
Total wages/salary Rs m 524 813 1,134
Avg. sales/employee Rs Th 5,981.6 8,052.2 8,902.2 INTERIM RESULTS
Avg. wages/employee Rs Th 310.8 415.9 501.8 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 468.6 1,575.4 1,806.6 Net sales Rs m 5,002 5,124 5,299 6,150
Gross profit Rs m 2,146 1,907 1,642 2,230
INCOME DATA Gross profit margin % 42.9 37.2 31.0 36.3
Net Sales Rs m 10,085 15,742 20,119 Net profit Rs m 1,209 1,106 762 1,140
Other income Rs m 49 75 95 Net profit margin % 24.2 21.6 14.4 18.5
Total revenues Rs m 10,134 15,817 20,214
Gross profit Rs m 2,107 5,560 7,523 KEY DATA
Depreciation Rs m 652 719 933 Parameters Unit FY06 FY07 FY08
Interest Rs m 344 228 517 Cement Capacity MTPA 6.0 6.0 8.0
Profit before tax Rs m 1,160 4,688 6,168 Capacity Utilisation % 78.5 94.5 73.2
Minority Interest Rs m 0 0 0 Realisation per tonne Rs m 2,086 2,700 3,306
Prior Period Items Rs m 0 0 0 Cost per tonne Rs m 1,691 1,794 2,170
Extraordinary Inc (Exp) Rs m -7 -2 0 Market Share (capacity) % 3.8 3.6 4.3
Tax Rs m 363 1,606 2,085
NOTES
Profit after tax Rs m 790 3,080 4,083
Gross profit margin % 20.9 35.3 37.4 Madras Cements has a total capacity of 8 MT (million tonnes) and caters exclusively
Effective tax rate % 31.3 34.3 33.8 to the southern region, with Kerala and Tamil Nadu being its principal markets. The
company caters to over 12% share of the entire southern market. Apart from cement
Net profit margin % 7.8 19.6 20.3
plants, the company has also set up ready mix concrete (RMC) plants to cater to the
BALANCE SHEET DATA growing RMC market. The company is the sixth largest cement manufacturer in the
country and second largest in the south. It accounts for 4% of the total cement
Current assets Rs m 3,271 6,148 7,792 capacity in the country. It was the first company in South India to convert all its
Current liabilities Rs m 2,287 3,945 4,015 capacity to the dry process. While the company's management has constantly
Net working cap to sales % 9.8 14.0 18.8 created value for its shareholders, it has not looked beyond the southern markets to
Current ratio x 1.4 1.6 1.9 diversify geographically, which is a useful strategy for a commodity business like
Inventory Turnover Days 37 30 44 cement.
Debtors Turnover Days 18 15 11
Net fixed assets Rs m 10,012 12,590 24,826 During FY08, with the waning demand supply gap in the southern region, the
Share capital Rs m 121 121 119 company reported robust 28% YoY growth in topline. On the back of improved
"Free" reserves Rs m 3,507 6,338 11,278 realisations and robust demand, the operating profits of the company grew by 35%
YoY. Despite higher interest costs and depreciation charges, net profits grew by 33%
Net worth Rs m 3,900 6,648 9,509
YoY on account of improved performance at the operating level.
Long term debt Rs m 3,774 4,178 10,852
Total assets Rs m 14,169 19,625 33,506 It must be noted that the supply of cement has been outpacing demand in the
Interest coverage x 4.4 21.6 12.9 southern region. However, with no significant new capacity coming up in this region
Debt to equity ratio x 1.0 0.6 1.1 in the medium term, and consumption having shown an improving trend, the demand-
Sales to assets ratio x 0.7 0.8 0.6 supply gap is balancing out. To cater to the increasing demand, the company has
Return on assets % 14.8 30.6 22.6 planned to increase its capacity to 10 MTPA by FY09. While this is a positive for the
Return on equity % 20.3 46.3 42.9 long-term, in the medium-term, this is expected to pressurise the company's net
Return on capital % 19.5 45.4 32.8 margins, as interest and depreciation costs will increase. The company also needs to
Exports to sales % 6.8 1.1 0.0 diversify operations across regions to de-risk revenues.
Imports to sales % 0.9 2.4 5.6
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109
 Regd off: Bangur Nagar, Beawar - 305 901, Dist. Ajmer, Rajasthan
SHREE CEMENT LIMITED E-Mail: khandelwalss@shreecementltd.com
Web site: www.shreecementltd.com
Telephone: (01462) 228 101-06 Fax: (01462) 228 117-19
CEMENT MISCELLANEOUS Tr agent: Karvy Computer, Plot 17-24, Vithalrao Nagar, Madhapur, Hyderabad - 81
Chairman: B. G. Bangur SEC: S. S. Khandelwal AUD: B. R. Maheshwari & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1979 500387 SRCM:IN 10 589.3 -6.0 -56.0 7.9 2.8 1.4 20,529.5 0.5 INE070A01015
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 63.7% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 468 (Rs)
Indian inst/Mut Fund : 7.7% Fx inflow Rs m 171 1850
FIIs/GDR : 6.9% Fx outflow Rs m 518
Free float : 21.7% Net fx Rs m -347
Shareholders : 15,467
1450
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
1050
High Rs 939 1,592 1,695
Low Rs 309 714 851
Sales per share Rs 192.1 392.7 593.0
Earnings per share Rs 5.3 50.8 74.7 650
DAILY
Cash flow per share Rs 52.4 175.1 212.1
Dividends per share Rs 5.00 6.00 8.00 100 DMA
Dividend yield (eoy) % 0.8 0.5 0.6
250
Book value per share Rs 100.7 144.6 193.1
Shares outstanding (eoy) m 34.84 34.84 34.84 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 3.2 2.9 2.1 No. of months 12 12 12
Avg P/E ratio x 117.5 22.7 17.0 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 11.9 6.6 6.0
Price / Book Value ratio x 6.2 8.0 6.6 From Operations Rs m 2,114 4,605 6,626
Dividend payout % 94.2 11.8 10.7 From Investments Rs m -2,544 -6,425 -9,002
Avg Mkt Cap Rs m 21,740 40,171 44,351 From Financial Activity Rs m 491 5,163 3,517
No. of employees `000 2 2 2 Net Cashflow Rs m 60 3,342 1,141
Total wages/salary Rs m 327 580 736
Avg. sales/employee Rs Th 4,261.0 6,902.1 10,423.3 INTERIM RESULTS
Avg. wages/employee Rs Th 208.1 292.6 371.3 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 117.8 893.0 1,313.3 Net sales Rs m 4,664 5,236 6,501 6,143
Gross profit Rs m 2,012 2,252 2,536 2,106
INCOME DATA Gross profit margin % 43.1 43.0 39.0 34.3
Net Sales Rs m 6,694 13,680 20,659 Net profit Rs m 902 350 411 1,185
Other income Rs m 29 209 732 Net profit margin % 19.3 6.7 6.3 19.3
Total revenues Rs m 6,723 13,889 21,391
Gross profit Rs m 2,256 6,324 7,846 KEY DATA
Depreciation Rs m 1,640 4,331 4,788 Parameters Unit FY06 FY07 FY08
Interest Rs m 128 104 497 Cement Capacity MTPA 2.7 4.7 6.8
Profit before tax Rs m 517 2,098 3,293 Capacity Utilisation % 117.5 101.6 92.9
Minority Interest Rs m 0 0 0 Realisation per tonne Rs m 2,090 2,831 3,261
Prior Period Items Rs m -37 6 -150 Cost per tonne Rs m 1,390 1,576 1,899
Extraordinary Inc (Exp) Rs m -208 -210 390 Market Share (capacity) % 1.7 2.9 3.7
Tax Rs m 87 124 930
NOTES
Profit after tax Rs m 185 1,770 2,603
Gross profit margin % 33.7 46.2 38.0 Shree Cement promoted by the Calcutta-based Bangur group is North India's largest
Effective tax rate % 16.8 5.9 28.2 cement producer with installed capacity of almost 6.8 MT. The company, apart from
being an efficient cement manufacturer, is the market leader in the north, with a
Net profit margin % 2.8 12.9 12.6
market share of over 15% within the region. It is also one of the least cost producers
BALANCE SHEET DATA in India and is almost self sufficient in meeting power requirement.

Current assets Rs m 2,182 7,741 10,960 On the back of robust volume growth and improved realisations the company
Current liabilities Rs m 1,532 2,846 4,799 reported 51% YoY growth in topline during FY08. The company witnessed almost
Net working cap to sales % 9.7 35.8 29.8 over 30% YoY growth in volumes and 15% YoY growth in realisations. Operating
Current ratio x 1.4 2.7 2.3 profit growth of 46% YoY in FY08 was lower compared to topline, as costs grew at a
Inventory Turnover Days 62 42 31 faster pace. Despite rising interest costs, net profits grew in line with the operating
Debtors Turnover Days 10 7 9 profits, on account of higher other income and extraordinary item. If one excludes
Net fixed assets Rs m 7,277 8,919 7,779 extraordinary income (the company had written off pre-operative expenses last year),
Share capital Rs m 348 348 348 then the net margins expanded by almost 3.1% YoY in FY08 on account of three-fold
"Free" reserves Rs m 1,463 3,009 5,302 growth in other income.
Net worth Rs m 3,510 5,038 6,728 The company has outlined capital expenditure to increase its total capacity to 9 MTPA
Long term debt Rs m 3,310 8,940 12,383 in order to maintain market share and is foraying into southern markets as a move to
Total assets Rs m 9,459 17,160 24,649 derisk revenues. The company has the option to sell CERs (Carbon Emission
Interest coverage x 5.0 21.2 7.6 Receipts) by July 2010, and hence such income will keep accruing periodically till
Debt to equity ratio x 0.9 1.8 1.8 FY11 giving a boost to net margins. While these are positives, the rising costs
Sales to assets ratio x 0.7 0.8 0.8 coupled with expected softening of realisations will pressurise operating margins
Return on assets % 4.6 13.4 16.2 going forward. While the industry is likely to maintain its growth momentum and
Return on equity % 5.3 35.1 38.7 continue growing volumes in the range of 8% to 10% in the medium to long term, the
Return on capital % 5.9 14.3 21.1 same is unlikely to offset the cost pressures and competitive price pressures
Exports to sales % 0.0 0.0 0.0 (upcoming planned capacities likely to exert pressure on realisations).
Imports to sales % 4.6 3.6 2.3
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110
 Regd off: B Wing, Ahura Centre, 2nd Flr, Mahakali Caves Rd, Mumbai - 93
ULTRATECH CEMENT LIMITED E-Mail: sharesutcl@adityabirla.com
Web site: www.ultratechcement.com
Telephone: (022) 6691 7800 Fax: (022) 6692 8109
CEMENT BIRLA ADITYA Tr agent: Sharepro Services, Satam Estate, 3rd floor, Chakala, Mumbai - 99
Chairman: Kumar Mangalam Birla SEC: S. K. Chatterjee AUD: Deloitte Haskins & Sells
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
2000 532538 UTCEM:IN 10 589.0 -3.8 -40.0 7.3 5.9 0.8 73,318.4 20.9 INE481G01011
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 54.4% Exports (fob) Rs m 5,038
Foreign collaborators : 0.0% Imports (cif) Rs m 8,176 (Rs)
Indian inst/Mut Fund : 8.7% Fx inflow Rs m 5,211 1250
FIIs/GDR : 6.0% Fx outflow Rs m 8,983
Free float : 30.9% Net fx Rs m -3,772
Shareholders : 274,656
1000
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
750
High Rs 689 1,205 1,165
Low Rs 314 501 662
Sales per share Rs 272.0 399.1 451.7
Earnings per share Rs 26.3 63.0 81.1 500
DAILY
Cash flow per share Rs 44.0 81.3 100.3
Dividends per share Rs 1.75 4.00 5.00 100 DMA
Dividend yield (eoy) % 0.3 0.5 0.5
250
Book value per share Rs 83.7 142.0 217.1
Shares outstanding (eoy) m 124.40 124.49 124.49 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 1.8 2.1 2.0 No. of months 12 12 12
Avg P/E ratio x 19.1 13.5 11.3 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 11.4 10.5 9.1
Price / Book Value ratio x 6.0 6.0 4.2 From Operations Rs m 5,641 11,208 13,809
Dividend payout % 6.7 6.3 6.2 From Investments Rs m -3,646 -10,466 -14,419
Avg Mkt Cap Rs m 62,387 106,190 113,722 From Financial Activity Rs m -1,911 -406 769
No. of employees `000 3 4 4 Net Cashflow Rs m 85 335 158
Total wages/salary Rs m 981 1,190 1,745
Avg. sales/employee Rs Th 10,361.3 14,183.3 14,098.3 INTERIM RESULTS
Avg. wages/employee Rs Th 300.4 339.7 437.5 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 1,000.3 2,240.7 2,532.0 Net sales Rs m 11,734 13,821 16,017 14,960
Gross profit Rs m 3,297 4,685 4,885 4,458
INCOME DATA Gross profit margin % 28.1 33.9 30.5 29.8
Net Sales Rs m 33,840 49,684 56,238 Net profit Rs m 1,859 2,795 2,829 2,650
Other income Rs m 318 592 998 Net profit margin % 15.8 20.2 17.7 17.7
Total revenues Rs m 34,158 50,276 57,236
Gross profit Rs m 6,561 14,289 17,281 KEY DATA
Depreciation Rs m 2,204 2,273 2,383 Parameters Unit FY06 FY07 FY08
Interest Rs m 901 868 757 Cement Capacity MTPA 17.0 17.0 18.2
Profit before tax Rs m 3,774 11,740 15,139 Capacity Utilisation % 78.4 86.1 82.8
Minority Interest Rs m -16 -18 -15 Realisation per tonne Rs m 2,319 3,359 3,678
Prior Period Items Rs m 0 0 0 Cost per tonne Rs m 2,058 2,388 2,514
Extraordinary Inc (Exp) Rs m 102 14 14 Market Share (capacity) % 10.6 10.3 9.6
Tax Rs m 593 3,887 5,038
NOTES
Profit after tax Rs m 3,267 7,849 10,100
Gross profit margin % 19.4 28.8 30.7 Ultratech, a 50% subsidiary of Grasim, with a total capacity of 18.2 MT enjoys nearly
Effective tax rate % 15.7 33.1 33.3 10% share of the industry capacity. The company has presence in the western,
eastern and southern regions. It exports over 2.5 MT per annum, which is about 30%
Net profit margin % 9.7 15.8 18.0
of the country's total exports (cement and clinker).
BALANCE SHEET DATA
The de-merged arm of L&T's cement division acquired by Grasim and re-christened
Current assets Rs m 7,761 9,695 13,196 Ultratech, reported a decent topline growth of 12% YoY. The company reported robust
Current liabilities Rs m 5,595 7,574 12,809 21% YoY growth in operating profits mainly on account of improved physical
Net working cap to sales % 6.4 4.3 0.7 performance and 5% YoY growth in realisations. The good show at the operating
Current ratio x 1.4 1.3 1.0 level coupled with lower finance charges and higher other income led to 29% YoY
Inventory Turnover Days 42 32 40 growth in bottomline in FY08.
Debtors Turnover Days 17 13 13
Net fixed assets Rs m 27,005 32,338 48,011 The company's performance in the past has not been heartening. It was only post
FY04 when cement prices moved up that the company reported double digit margins.
Share capital Rs m 1,244 1,245 1,245
The result of branding and benefits of turnaround also kicked in. However, any
"Free" reserves Rs m 7,531 14,503 23,934
decline in sales realisations or slowdown in exports (as capacities are also coming up
Net worth Rs m 10,414 17,682 27,026 in Middle East) and the inability of domestic markets to consume unsold export
Long term debt Rs m 4,168 5,076 6,679 quantity will impact margins. We are positive on the sector growth owing to
Total assets Rs m 36,351 46,716 62,751 infrastructural activity taking place to support and sustain the current economic
Interest coverage x 5.2 14.5 21.0 growth. The upcoming planned capacities have started exerting downward pressure
Debt to equity ratio x 0.4 0.3 0.2 on realisations. The company has embarked on a capex plan of around Rs 33 bn to
Sales to assets ratio x 0.9 1.1 0.9 be spent over the next 2 to 3 years, which includes capacity expansion, setting up of
Return on assets % 28.6 38.3 32.2 captive power plants and ready mix concrete plants.
Return on equity % 31.4 44.4 37.4
Return on capital % 32.6 55.4 47.2
Exports to sales % 14.5 13.5 9.0
Imports to sales % 7.2 10.3 14.5
GET MORE INFO AT WWW.EQUITYMASTER.COM

111
 CONSTRUCTION & REAL ESTATE
India is on the verge of witnessing a sustained investment in
infrastructure build up. With construction component
accounting for 42% of the total investment in infrastructure,
the construction industry has been witness to a strong growth
wave powered by large spends in housing, road, ports, water
supply and airports development. The construction sector has
grown at a CAGR of 16.5% during the last seven years and
now accounts for 6.9% of India's GDP compared to 5.7% in
FY00. The Planning Commission of India has proposed an
investment of around US$ 500 bn in the eleventh five-year
plan (2007-2012), which is nearly 2.3 times more than the
previous five-year plan.
From a policy perspective, there has been a growing
consensus that a private-public partnership is required to
remove difficulties concerning the development of
infrastructure in the country. During the eleventh five-year
plan, the share of private players in the total investment was
30%, as compared to 18% in the previous five year plan.
The real estate industry comprising of construction and
development of properties has grown from family based
entities with focus on single products and having one market
presence into corporate entities with multi-city presence having
differentiated products. The industry has witnessed
considerable shift from traditional financing methods and limited
debt support to an era of structured finance, private equity
and public offering.
The construction sector is a major employment driver, being
the second largest employer in the country, next only to
agriculture. This is because of the chain of backward and
forward linkages that the sector has with other sectors of the
economy. About 250 ancillary industries such as cement, steel,
brick, timber and building material are dependent on the
construction industry. A unit increase in expenditure in this
sector has a multiplier effect and the capacity to generate
income as high as five times.
FY08
The North-South-East-West corridor is likely to be completed
by the end of 2008. As of end-March 2008, only 2,010 km of
the planned 7,300 km have been completed; 146 contracts
covering 4,220 km of roads are under implementation, while
over 11% of project length has not yet been contracted. In
power, two-thirds of the 16,335 MW generation target was
achieved.
The 2008-09 budget saw increase in allocation towards
various infrastructure development schemes. Allocation for
National Highways Development Project (NHDP) has been
enhanced to Rs 129.7 bn in 2008-09 from Rs 108.7 bn in 2007-
08. The budget gave special attention to development of roads
in North Eastern region with the target of developing 300 kms
of roads in 2008-09 as compared to 180 kms in 2007-08. The
budget has also given considerable thrust to irrigation projects,
where the outlay for 2008-09 had been increased to Rs 200
bn from Rs 110 bn in 2007-08.
The government announced the reduction of CENVAT to 14%
from 16% in the previous financial year. As such, this reduction
will be a positive for the sector as it indicates government's
commitment towards the Goods and Service Tax Act.
Post the eruption of the US subprime crisis and the slow down
in the economy, the real estate developers are caught between
112
sluggish housing demand and rising cost of capital. The
increase in capital loans have slowed down immensely, causing
a liquidity crunch for real estate firms, while the slowdown in
demand has led to a fall in real estate prices between the
range of 15% to 30%, even in the normally price-inelastic metro
regions.
KEY POINTS
Supply: Past 2-3 years have seen a substantial increase in
the number of contractors and builders, especially in the
housing and road construction segment.
Demand: Demand exceeds supply by a large margin. Demand
for quality infrastructure construction is mainly emanating
from the housing, transportation and urban development
segments.
Barriers to entry: Low for road and housing construction.
However, high working capital requirements can create
growth problems for companies with weak financial muscle.
Bargaining power of suppliers: Low. Due to the rapid
increase in the number of contractors and construction
service providers, margins have been stagnant despite
strong growth in volumes.
Bargaining power of customers: Low. The country still
lacks adequate infrastructure facilities and citizens have to
pay for using public services.
Co m p e t i t i o n : Ve r y h i g h a c r o s s s e g m e n ts l i k e r o a d
construction, housing and urban infrastructure development.
Relatively less in airport and port development.
CURRENT SCENARIO AND PROSPECTS
Infrastructure investments continue to be the most important
growth driver for construction companies. During FY08, the
Planning Commission of India announced the eleventh five-
year plan. The proposed increase in allocation in the plan will
translate into business for construction companies.
Real estate investments account for about 60% of the total
construction investments. Demand-supply gap for residential
housing, favourable demographics, rising affordability levels,
availability of financing options as well as fiscal benefits
available on availing of home loan are the key drivers
supporting the demand for residential construction. In addition
to this, demand for office space from IT/BPO segment is
expected to continue due to emergence of India as a preferred
outsourcing destination. Also, boom in organized retail is
expected to result in huge demand for real estate construction.
According to industry estimates, the Indian real estate industry
is expected to grow at a compounded rate of 33% between
FY05 to FY10, mainly driven by the residential segment.
While long-term factors are likely to work in favour of the real
estate developers, the outlook for the short term remains bleak.
Also the fact that the realty companies have lined up huge
projects, across all the segments - residential, commercial,
industrial and retail, is likely to widen the supply-demand gap
going forward. This may end up in softening of real estate
prices, hurting the margins of the developers. The total area
to be developed over the next few years is nearly 20 to 30
times the size of projects executed so far and hence, there
are likely to be delays as well.
 CONSTRUCTION & REAL ESTATE
GLOBAL COMPARISON
FY08/CY07 Unit CONSTRUCTION REAL ESTATE
HCC Hochtief Granite Cons. Unitech Sun Hung Kai
Revenues US$ m 747 22,210 2,738 1,026 3,973
EBDITA margin % 11.5 1.2 9.0 53.8 39.1
Profit after tax US$ m 22 190 112 414 1,146
Net profit margin % 3.0 0.9 4.1 40.4 28.8
Return on capital employed % 7.9 10.1 18.1 19.1 6.5
Return on equity % 9.5 6.1 16.0 46.1 4.8
Order backlog US$ m 2,533 40,805 2,085 NA NA
Backlog to sales x 3.4 1.8 0.8 NA NA
Employees Nos. 2,965 52,449 6,700 2,000 27,000
Revenue per employee US$ m 0.3 0.4 0.4 0.5 0.1
Price to earnings (TTM) x 24.3 17.4 13.3 14.9 9.7

HOCHTIEF (GERMANY)

Hochtief is based in Essen, Germany. The company's principal activities are carried out through six divisions:
Hochtief airport (products related to the planning, financing and operation of airports), Hochtief construction (building
construction, civil engineering and structural engineering). Hochtief development (project development, facility and
asset management), Hochtief international (development in the international arena), Hochtief North America (region's
construction market) and Hochtief services (provider of complete solutions). The Group has operations in America,
Asia, Australia and Africa.

GRANITE CONSTRUCTION (US)

Granite Construction Inc. operates as a heavy civil construction contractor in the US. The company operates in two
segments, the branch division and the heavy construction division. The branch division's activities include
construction and improvement of streets, roads, highways, and bridges; and private sector contracts include site
preparation for housing and commercial development, including excavation, grading and street paving, and
installation of curbs, gutters, sidewalks, and underground utilities. The heavy construction division builds
infrastructure projects for both public and private sector clients. Its projects include dams, mass transit facilities,
pipelines, canals, tunnels, waterway locks and dams, and airport infrastructure. The segment also engages in
demolition, clearing, earthwork and grading, dewatering, drainage improvements, structural concrete, rail
signalization, and concrete and asphalt paving activities. The company also produces sand, gravel, ready-mix and
asphalt concrete, and other construction materials. Granite Construction was founded in 1922 and is headquartered
in Watsonville, California.

SUN HUNG KAI PROPERTIES (HK)

Sun Hung Kai Properties (SHKP) was publicly listed in 1972 and is now one of the largest property companies in
Hong Kong. The company operates in the hospitality, residential and property management segments of the real
estate business. The company has in-house expertise in land acquisition, architecture, construction, engineering
and property management. Besides, the group also has investments in telecommunications, information technology,
transportation and logistics business. SHKP has a land bank of 43.3 m square feet (msqft) that includes 18.1 msqft
under development and 25.2 msqft of completed investment properties (let on lease). Besides, the company has
over 23 msqft of agricultural land, most of which is in the process of land use conversion, principally for residential
development.

Source: Yahoo Finance, Company reports TTM - Trailing twelve months

113
 Regd off: Akruti Trade Centre, Rd No. 7, Marol MIDC, Andheri (E), Mumbai - 93
AKRUTI CITY LIMITED E-Mail: investorcell@akrutiestate.com
Web site: www.akrutiestate.com
Telephone: (022) 6677 2301 Fax: (022) 2821 8230
CONSTRUCTION MISCELLANEOUS Tr agent: Intime Spectrum, C13, Pannalal Silk Mills Compd., LBS Marg, Mumbai-78
Chairman: Hemant M. Shah SEC: Chetan S. Mody AUD: Dalal & Shah
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1989 532799 AKCL:IN 10 899.5 19.6 57.8 20.0 19.6 0.3 59,996.7 571.9 INE703H01016
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 90.0% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 6 (Rs)
Indian inst/Mut Fund : 1.3% Fx inflow Rs m 0 1450
FIIs/GDR : 2.3% Fx outflow Rs m 8
Free float : 6.5% Net fx Rs m -8
Shareholders : 22,621
1150
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
850
High Rs NM 729 1,399
Low Rs NM 332 322
Sales per share Rs 42.4 28.4 66.7
Earnings per share Rs 13.2 11.6 44.9 550
Cash flow per share Rs 14.2 12.5 45.9 DAILY
Dividends per share Rs 1.50 1.50 2.50 100 DMA
Dividend yield (eoy) % NM 0.3 0.3
250
Book value per share Rs 22.4 75.7 119.4
Shares outstanding (eoy) m 48.00 66.70 66.70 Feb-07 Jul-07 Nov-07 Apr-08 Sep-08
Bonus/Rights/Conversions B15:1 PI,B1:4 -
Price / Sales ratio x NM 18.7 12.9 No. of months 12 12 12
Avg P/E ratio x NM 45.8 19.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x NM 42.4 18.7
Price / Book Value ratio x NM 7.0 7.2 From Operations Rs m 877 -1,338 -1,090
Dividend payout % 11.4 13.0 5.6 From Investments Rs m -364 -2,979 -1,862
Avg Mkt Cap Rs m NM 35,391 57,395 From Financial Activity Rs m -659 5,016 2,504
No. of employees `000 <500 NA NA Net Cashflow Rs m -146 700 -449
Total wages/salary Rs m 13 67 70
Avg. sales/employee Rs Th 29,897.1 NA NA INTERIM RESULTS
Avg. wages/employee Rs Th 191.2 NA NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 9,308.8 NA NA Net sales Rs m 1,006 1,315 1,410 2,342
Gross profit Rs m 709 985 1,312 2,084
INCOME DATA Gross profit margin % 70.5 74.9 93.0 89.0
Net Sales Rs m 2,033 1,895 4,450 Net profit Rs m 611 721 981 1,714
Other income Rs m 20 91 307 Net profit margin % 60.7 54.8 69.6 73.2
Total revenues Rs m 2,053 1,986 4,757
Gross profit Rs m 764 1,040 3,725 KEY DATA
Depreciation Rs m 48 62 69 Parameters Unit FY06 FY07 FY08
Interest Rs m 67 186 550 Sale of properties/rights % of sales 80.7 89.0 92.0
Profit before tax Rs m 669 883 3,413 Sale of TDR (Traded) % of sales - 2.0 -
Minority Interest Rs m -2 0 -1 Income from lease % of sales 5.3 9.0 6.8
Prior Period Items Rs m 0 -5 -2
Extraordinary Inc (Exp) Rs m -2 1 2
Tax Rs m 32 107 419
NOTES
Profit after tax Rs m 633 772 2,993
Gross profit margin % 37.6 54.9 83.7 Akruti City (ACL, formerly known as Akruti Nirman) is a real estate company involved
Effective tax rate % 4.8 12.1 12.3 in the development, sale and lease of commercial, residential, retail and industrial
properties. ACL has been primarily a Mumbai-centric developer and has been a
Net profit margin % 31.1 40.7 67.3
major player in the slum rehabilitation scheme of the Government of Maharashtra.
BALANCE SHEET DATA The company also takes up projects in various other segments such as SEZs, biotech
park, infotech parks, robotic car parks and warehousing. ACL has completed nearly
Current assets Rs m 1,592 7,207 15,001 5 msqft of construction till date, while the development pipeline accounts 39 msqft,
Current liabilities Rs m 627 922 2,147 with Mumbai accounting for 55% share while Pune and Thane account for 31% and
Net working cap to sales % 47.5 331.7 288.9 14% respectively. ACL is also developing a 700 acres Biotech Park in Gujarat, in joint
Current ratio x 2.5 7.8 7.0 venture with Gujarat State Biotech Mission and TCG Group.
Inventory Turnover Days 208 305 348
Debtors Turnover Days 6 138 90 During FY08, consolidated sales grew by 135% YoY while net profit recorded growth
Net fixed assets Rs m 863 894 1,147 of 288% YoY. The higher growth in net profit was due to a strong expansion in
Share capital Rs m 480 667 667 operating margins. The operating margins expanded from 55% to whopping 84%
"Free" reserves Rs m 593 3,368 7,171 during FY08, while its net profit margins expanded from 41% in FY07 to 67%.
Net worth Rs m 1,073 5,046 7,962 ACL has a large portion of its land bank in the city of Mumbai, exposing it to
Long term debt Rs m 731 2,808 5,426 geographical risks. The management of ACL plans to strengthen its presence in other
Total assets Rs m 2,668 10,849 18,426 cities. The company has planned to large investments over next four years to develop
Interest coverage x 11.0 5.7 7.2 residential, commercial, retail and hospitality projects across India. Ever since the
Debt to equity ratio x 0.7 0.6 0.7 boom in the real estate sector, the company has been focusing towards execution of
Sales to assets ratio x 0.8 0.2 0.2 projects rather than building up its land bank. However, like the other companies from
Return on assets % 38.8 12.2 26.5 the real estate sector, ACL is likely to face pressures due to unfavorable market
Return on equity % 59.0 15.3 37.6 conditions in the medium term.
Return on capital % 40.6 13.6 29.6
Exports to sales % 0.0 0.0 0.0
Imports to sales % 1.5 1.4 0.1
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114
 Regd off: DLF Shopping Mall, 3rd Floor, Phase-I, DLF City, Gurgaon - 122 002
DLF LIMITED + $ E-Mail: setia-subhash@dlfgroup.in
Web site: www.dlf.in
Telephone: (0124) 433 4200 Fax: (0124) 235 5581
CONSTRUCTION MISCELLANEOUS Tr agent: Karvy Computer, Plot 17-24, Vithalrao Nagar, Madhapur, Hyderabad - 81
Chairman: K. P. Singh SEC: Subhash Setia AUD: Walker, Chandiok & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1963 532868 DLFU:IN 2 494.5 -10.6 -22.5 10.8 10.7 0.8 842,953.2 1,646.2 INE271C01023
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 88.2% Exports (fob) Rs m 1,201
Foreign collaborators : 0.0% Imports (cif) Rs m 431 (Rs)
Indian inst/Mut Fund : 0.6% Fx inflow Rs m 1,203 1300
FIIs/GDR : 6.6% Fx outflow Rs m 689
Free float : 4.7% Net fx Rs m 514
Shareholders : 553,445 DAILY
1050
No. of months 12 12 12 100 DMA
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
800
High Rs NM NM 1,225
Low Rs NM NM 490
Sales per share Rs 305.2 17.2 82.4
Earnings per share Rs 50.7 12.6 45.8 550
Cash flow per share Rs 60.3 13.0 46.4
Dividends per share Rs 4.00 2.00 4.00
Dividend yield (eoy) % NM NM 0.5
300
Book value per share Rs 251.3 19.7 109.9
Shares outstanding (eoy) m 37.80 1,529.42 1,704.83 Jul-07 Oct-07 Jan-08 May-08 Sep-08
Bonus/Rights/Conversions DC FV2 PI
Price / Sales ratio x NM NM 10.4 No. of months 12 12 12
Avg P/E ratio x NM NM 18.7 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x NM NM 18.5
Price / Book Value ratio x NM NM 7.8 From Operations Rs m -9,493 -65,635 -25,968
Dividend payout % 7.9 15.8 8.7 From Investments Rs m -20,119 2,364 -60,142
Avg Mkt Cap Rs m NM NM 1,461,892 From Financial Activity Rs m 30,520 64,594 104,368
No. of employees `000 2 2 4 Net Cashflow Rs m 908 1,323 18,258
Total wages/salary Rs m 397 1,051 2,998
Avg. sales/employee Rs Th 6,408.9 10,643.3 37,962.2 INTERIM RESULTS
Avg. wages/employee Rs Th 220.6 424.1 810.3 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 1,065.0 7,803.1 21,113.5 Net sales Rs m 32,499 35,984 43,065 38,106
Gross profit Rs m 22,640 25,076 27,529 23,137
INCOME DATA Gross profit margin % 69.7 69.7 63.9 60.7
Net Sales Rs m 11,536 26,374 140,460 Net profit Rs m 20,186 21,450 21,768 18,641
Other income Rs m 771 1,078 2,309 Net profit margin % 62.1 59.6 50.5 48.9
Total revenues Rs m 12,307 27,452 142,769
Gross profit Rs m 4,633 14,108 92,936 KEY DATA
Depreciation Rs m 361 578 901 Parameters Unit FY06 FY07 FY08
Interest Rs m 1,561 2,300 2,536 Constructed properties % of sales 87.5 85.4 90.8
Profit before tax Rs m 3,482 12,308 91,808 Rent and licence fee % of sales 2.3 5.9 2.0
Minority Interest Rs m -10 -11 -355 Service & maintenance % of sales 2.4 3.3 1.6
Prior Period Items Rs m 0 10 -12 Power % of sales 5.9 3.8 0.9
Extraordinary Inc (Exp) Rs m 113 13,081 4,070
Tax Rs m 1,668 6,052 17,391
NOTES
Profit after tax Rs m 1,917 19,336 78,120
Gross profit margin % 40.2 53.5 66.2 DLF, India's largest real estate company, was incorporated in 1963 as American
Effective tax rate % 47.9 49.2 18.9 Universal Electric (I) Limited (named DLF in 2006). It has developed some of the first
residential colonies in Delhi such as Krishna Nagar in East Delhi, which was
Net profit margin % 16.6 73.3 55.6
completed in 1949. Since then, DLF has been responsible for the development of
BALANCE SHEET DATA many of Delhi's other well known urban colonies like South Extension, Greater
Kailash, Kailash Colony and Hauz Khas. Besides residential properties, it has
Current assets Rs m 35,604 128,343 266,001 presence in commercial and retail projects. DLF's operations span all aspects of real
Current liabilities Rs m 18,469 46,072 72,157 estate development. During the year, the company acquired controlling stake in Aman
Net working cap to sales % 148.5 311.9 138.0 Resorts, a hotel group, having properties across the world.
Current ratio x 1.9 2.8 3.7
Inventory Turnover Days 519 786 246 During FY08, the company's consolidated revenues grew by 440% YoY while its
Debtors Turnover Days 208 210 198 profits grew by 306%. The slower growth in profits is mainly on account of a high
Net fixed assets Rs m 17,043 41,851 100,031 other income earned in the previous year. Adjusting for this non-recurring item, profits
Share capital Rs m 378 3,059 3,410 grew by almost 800%.
"Free" reserves Rs m 8,814 22,257 182,238
DLF has a developable area of around 752 msqft of which 62 msqft is under
Net worth Rs m 9,501 30,174 187,387 development. The company's management has indicated that while it does not
Long term debt Rs m 29,288 79,365 99,495 foresees any significant reduction in demand in the long run, the biggest challenge
Total assets Rs m 69,436 181,236 396,065 for the company will remain securing requisite approvals from the government for
Interest coverage x 3.2 6.4 37.2 purchase and development of land. It has also cited the company's thrust towards
Debt to equity ratio x 3.1 2.6 0.5 entering the hospitality business, where it plans to set up 20,000 business hotel
Sales to assets ratio x 0.2 0.1 0.4 rooms across India over the next few years (in partnership with the Hilton Group).
Return on assets % 9.0 19.8 28.1 Further, the company has plans to invest in infrastructure ventures like wind energy,
Return on equity % 20.2 64.1 41.7 power generation and utilities, where investments in excess of Rs 15 bn have been
Return on capital % 13.3 25.3 34.2 proposed. The management expects the fast growing mid-income housing segment
Exports to sales % 0.0 7.5 0.9 to contribute a significant amount in the future, as presently, most of their projects
Imports to sales % 0.0 0.1 0.3 from this segment are under construction.
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115
 Regd off: 25/1, Skip House, Museum Road, Bangalore - 560 025
GMR INFRASTRUCTURE LIMITED E-Mail: adiseshavataram.cherukupalli@gmrgroup.in
Web site: www.gmrgroup.in
Telephone: (080) 4053 4126 Fax: (080) 2221 3091
CONSTRUCTION MISCELLANEOUS Tr agent: Karvy Computer, Plot 17-24, Vithalrao Nagar, Madhapur, Hyderabad - 81
Chairman: G. M. Rao SEC: A. S. Cherukupalli (CO) AUD: Price Waterhouse
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1996 532754 GMRI:IN 2 103.0 -2.5 -35.0 89.3 48.3 0.0 187,465.8 790.4 INE776C01021
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 73.3% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 0 (Rs)
Indian inst/Mut Fund : 7.5% Fx inflow Rs m 0 280
FIIs/GDR : 9.0% Fx outflow Rs m 22
Free float : 10.3% Net fx Rs m -22
Shareholders : 495,611
215
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
150
High Rs NM 437 270
Low Rs NM 205 65
Sales per share Rs 39.9 50.6 12.0
Earnings per share Rs 2.7 5.3 1.2 85
Cash flow per share Rs 11.0 9.3 2.1 DAILY
Dividends per share Rs 0.00 0.00 0.00 100 DMA
Dividend yield (eoy) % NM 0.0 0.0
20
Book value per share Rs 21.6 60.2 33.6
Shares outstanding (eoy) m 264.44 331.08 1,820.66 Aug-06 Feb-07 Aug-07 Feb-08 Sep-08
Bonus/Rights/Conversions B2:3 PI,PP FV2,PA
Price / Sales ratio x NM 6.3 14.0 No. of months 12 12 12
Avg P/E ratio x NM 60.9 145.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x NM 34.4 78.5
Price / Book Value ratio x NM 5.3 5.0 From Operations Rs m 2,652 6,743 7,071
Dividend payout % 0.0 0.0 0.0 From Investments Rs m -9,124 -19,402 -96,600
Avg Mkt Cap Rs m NM 106,277 304,961 From Financial Activity Rs m 8,720 18,902 85,474
No. of employees `000 NA 2 3 Net Cashflow Rs m 2,248 6,243 -4,056
Total wages/salary Rs m 322 612 1,033
Avg. sales/employee Rs Th NA 8,381.0 6,335.2 INTERIM RESULTS
Avg. wages/employee Rs Th NA 306.0 299.5 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA 872.5 608.9 Net sales Rs m 3,953 5,350 8,853 8,855
Gross profit Rs m 1,333 1,340 1,604 1,943
INCOME DATA Gross profit margin % 33.7 25.0 18.1 21.9
Net Sales Rs m 10,550 16,762 21,850 Net profit Rs m 495 641 500 419
Other income Rs m 101 388 1,796 Net profit margin % 12.5 12.0 5.6 4.7
Total revenues Rs m 10,651 17,150 23,646
Gross profit Rs m 4,192 5,105 4,656 KEY DATA
Depreciation Rs m 2,200 1,346 1,785 Parameters Unit FY06 FY07 FY08
Interest Rs m 1,032 1,314 1,457 Power % of sales 85.6 61.3 59.6
Profit before tax Rs m 1,061 2,833 3,210 Roads % of sales 14.3 7.3 5.4
Minority Interest Rs m -231 -673 -526 Airports % of sales 0.0 30.2 33.9
Prior Period Items Rs m 0 0 0
Extraordinary Inc (Exp) Rs m 0 0 0
Tax Rs m 125 415 584
NOTES
Profit after tax Rs m 705 1,745 2,100
Gross profit margin % 39.7 30.5 21.3 GMR Infrastructure (GMR) is a private sector infrastructure development company
Effective tax rate % 11.8 14.6 18.2 engaged in the verticals of power (60% of revenues), roads (5%) and airports (34%).
It currently operates three power plants with a total installed capacity of 808.5 MW.
Net profit margin % 6.7 10.4 9.6
However, on account of fuel shortage, these plants have been operating at low plant
BALANCE SHEET DATA load factor (PLF). GMR has 5 power projects under development with a combined
power capacity of 3,290 MW (in India and Nepal). In the airport infrastructure space,
Current assets Rs m 11,378 19,173 19,230 GMR commissioned the Rajiv Gandhi International Airport during the year. It is also
Current liabilities Rs m 4,108 7,471 13,661 developing and modernising the Indira Gandhi International Airport, New Delhi. In the
Net working cap to sales % 68.9 69.8 25.5 road segment, the company has been awarded six road projects with a combined
Current ratio x 2.8 2.6 1.4 length of 421 kms.
Inventory Turnover Days 12 7 6
Debtors Turnover Days 82 84 69 During FY08, the consolidated sales grew by 37% YoY driven by its power and airport
Net fixed assets Rs m 29,826 48,059 97,927 segment. However, income from the roads segment dropped by 2% YoY. EBITDA
Share capital Rs m 2,644 3,311 3,641 margins contracted from 32% to 26% in FY08 on account of higher fuel and
"Free" reserves Rs m 1,175 15,104 55,945 administrative expenditure. Net profit growth (20% YoY) was further impacted due to
lower operating margins along with higher tax outgo.
Net worth Rs m 5,704 19,923 61,172
Long term debt Rs m 23,993 30,200 72,313 Over the past few years, the company has been aggressively growing its asset
Total assets Rs m 43,761 69,857 166,153 portfolio. As a new initiative, the company created its international division in FY08.
Interest coverage x 2.0 3.2 3.2 As such, GMR won a mandate, as part of a consortium, to operate and expand
Debt to equity ratio x 4.2 1.5 1.2 Sabiha Gokcen International airport in Istanbul, Turkey. The company also acquired
Sales to assets ratio x 0.2 0.2 0.1 50% stake in Intergen N.V., which operates 8,086 MW of installed capacity and is
Return on assets % 5.8 6.1 2.7 further developing power projects aggregating to 4,680 MW, making GMR the largest
Return on equity % 12.4 8.8 3.4 private power sector player in India. While these developments are likely to benefit
Return on capital % 6.3 6.9 3.1 the company in the long term, we believe that its airport business will be the key
Exports to sales % 0.0 0.0 0.0 growth driver in the coming years.
Imports to sales % 0.0 0.0 0.0
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116
 Regd off: Hincon House, Lal Bahadur Shastri Marg, Vikhroli (W), Mumbai - 400 083
HINDUSTAN CONSTRUCTION COMPANY LTD. E-Mail: secretarial@hccindia.com
Web site: www.hccindia.com
Telephone: (022) 2577 5959 Fax: (022) 2577 5950
CONSTRUCTION WALCHAND Tr agent: TSR Darashaw, H. Moosa Patrawala Ind. Est., E.Moses Rd., Mumbai - 11
Chairman: Ajit Gulabchand SEC: Vithal P. Kulkarni AUD: K. S. Aiyar & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1926 500185 HCC:IN 1 97.0 -5.7 -27.6 27.9 13.3 0.8 24,856.3 417.1 INE549A01026
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 47.0% Exports (fob) Rs m 627
Foreign collaborators : 0.0% Imports (cif) Rs m 1,209 (Rs)
Indian inst/Mut Fund : 17.4% Fx inflow Rs m 627 300
FIIs/GDR : 12.3% Fx outflow Rs m 1,369
Free float : 23.4% Net fx Rs m -742 DAILY
Shareholders : 81,980 100 DMA
240
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
180
High Rs 196 185 279
Low Rs 45 83 83
Sales per share Rs 76.4 89.8 116.9
Earnings per share Rs 3.1 1.3 3.5 120
Cash flow per share Rs 5.2 4.4 7.3
Dividends per share Rs 0.70 0.75 0.80
Dividend yield (eoy) % 0.6 0.6 0.4
60
Book value per share Rs 32.8 34.2 36.5
Shares outstanding (eoy) m 256.25 256.25 256.25 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions FV1,GDS - -
Price / Sales ratio x 1.6 1.5 1.5 No. of months 12 12 12
Avg P/E ratio x 38.9 104.4 52.0 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 23.1 30.3 24.9
Price / Book Value ratio x 3.7 3.9 5.0 From Operations Rs m -1,128 -10,767 -679
Dividend payout % 22.6 58.4 23.0 From Investments Rs m -1,261 -3,212 -4,566
Avg Mkt Cap Rs m 30,878 34,338 46,324 From Financial Activity Rs m 11,536 6,520 5,983
No. of employees `000 NA NA NA Net Cashflow Rs m 9,148 -7,460 738
Total wages/salary Rs m 1,346 2,097 2,958
Avg. sales/employee Rs Th NA NA NA INTERIM RESULTS
Avg. wages/employee Rs Th NA NA NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA NA NA Net sales Rs m 5,487 7,500 10,551 8,659
Gross profit Rs m 601 967 1,310 912
INCOME DATA Gross profit margin % 11.0 12.9 12.4 10.5
Net Sales Rs m 19,581 23,007 29,947 Net profit Rs m 116 251 371 308
Other income Rs m 112 443 491 Net profit margin % 2.1 3.3 3.5 3.6
Total revenues Rs m 19,693 23,450 30,438
Gross profit Rs m 1,840 2,253 3,441 KEY DATA
Depreciation Rs m 542 804 974 Parameters Unit FY06 FY07 FY08
Interest Rs m 487 854 1,614 Order book Rs m 96,720 93,120 101,580
Profit before tax Rs m 923 1,038 1,344 Order book to sales x 4.9 4.0 3.4
Minority Interest Rs m -1 19 23 Construction expenses % of sales 80.1 77.0 74.7
Prior Period Items Rs m 18 -341 0
Extraordinary Inc (Exp) Rs m 26 0 0
Tax Rs m 172 387 477
NOTES
Profit after tax Rs m 794 329 890
Gross profit margin % 9.4 9.8 11.5 Established in 1926 by Walchand Hirachand Group, Hindustan Construction
Effective tax rate % 18.6 37.3 35.5 Company (HCC) is one of the largest and oldest private sector construction
companies in India. The company has been involved in the construction of diverse
Net profit margin % 4.1 1.4 3.0
projects ranging from power dams, highways and bridges to marine structures, water
BALANCE SHEET DATA supply, factories and waste treatment plants. Apart from domestic presence, HCC
has executed several projects overseas in countries like Iraq, Nepal and Tanzania.
Current assets Rs m 22,541 28,817 36,168 During the year, HCC launched its sales and marketing campaign for Lavasa, a
Current liabilities Rs m 8,266 9,498 12,177 12,500 acre property which lies in Maharashtra.
Net working cap to sales % 72.9 84.0 80.1
Current ratio x 2.7 3.0 3.0 HCC's consolidated revenues grew by 30% YoY, while its bottom line grew by a
Inventory Turnover Days 195 360 351 strong 170% YoY. However, during the previous year, the profits were lower due to a
Debtors Turnover Days 1 0 1 one-time adjustment to the tune of Rs 341 m made by the company in the wake of
Net fixed assets Rs m 6,247 10,232 13,652 the withdrawal of tax benefits under the Income Tax Act. If we exclude the same, the
Share capital Rs m 256 256 256 profits grew by 33% YoY. During FY08, the company clocked operating margins and
"Free" reserves Rs m 8,050 8,132 8,707 net profit margins of 11.5% and 3% respectively.
Net worth Rs m 8,417 8,762 9,346 FY08 was a significant year for HCC. The company, through certain initiatives has
Long term debt Rs m 6,112 18,066 25,500 restructured its business by forming two separate subsidiaries - HCC Infrastructure
Total assets Rs m 29,507 39,222 50,262 and HCC Real Estate focusing on the infrastructure (BOT) and real estate projects.
Interest coverage x 2.9 2.2 1.8 Further, the company also restructured its construction business by forming five
Debt to equity ratio x 0.7 2.1 2.7 different verticals - hydel, transport, water, nuclear special projects & thermal. This
Sales to assets ratio x 0.7 0.6 0.6 move will not only help the company to focus its resources on certain projects going
Return on assets % 8.8 4.4 7.2 forward but will also de-risk its profile from being a pure construction company.
Return on equity % 9.4 3.8 9.5
Return on capital % 10.0 5.9 8.6
Exports to sales % 0.2 1.6 2.1
Imports to sales % 5.4 7.5 4.0
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 Regd off: 9-01, Dheeraj Arma, Anant Kanekar Marg, Bandra(E), Mumbai-51
HOUSING DEV. & INFRASTRUCTURE LTD. E-Mail: investors.relations@hdil.in
Web site: www.hdil.in
Telephone: (022) 2658 3500 Fax: (022) 2658 3636
CONSTRUCTION MISCELLANEOUS Tr agent: Karvy Computer, Plot 17-24, Vithalrao Nagar, Madhapur, Hyderabad - 81
Chairman: Rakesh Kumar Wadhawan SEC: Darshan D. Majmudar AUD: Thar & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1996 532873 HDIL:IN 10 306.0 -22.5 -26.5 4.4 4.4 1.6 84301 2,620.9 INE191I01012
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 61.5% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 184 (Rs)
Indian inst/Mut Fund : 1.0% Fx inflow Rs m 0 1200
FIIs/GDR : 9.3% Fx outflow Rs m 331
Free float : 28.2% Net fx Rs m -331 DAILY
Shareholders : 108,073 100 DMA
950
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
700
High Rs NM NM 1,432
Low Rs NM NM 474
Sales per share Rs 87.0 66.9 111.1
Earnings per share Rs 23.5 30.4 65.7 450
Cash flow per share Rs 23.6 30.5 65.8
Dividends per share Rs 0.00 0.00 5.00
Dividend yield (eoy) % NM NM 0.5 200
Book value per share Rs 37.1 39.8 169.8
Shares outstanding (eoy) m 50.00 180.00 214.27
Jul-07 Nov-07 Feb-08 May-08 Sep-08
Bonus/Rights/Conversions B4:1 B13:5 PI,PP
Price / Sales ratio x NM NM 8.6 No. of months 12 12 12
Avg P/E ratio x NM NM 14.5 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x NM NM 14.5
Price / Book Value ratio x NM NM 5.6 From Operations Rs m 664 -1,328 -39,526
Dividend payout % 0.0 0.0 7.6 From Investments Rs m -551 -614 -265
Avg Mkt Cap Rs m NM NM 204,199 From Financial Activity Rs m 276 1,559 43,233
No. of employees `000 NA NA 1 Net Cashflow Rs m 389 -383 3,443
Total wages/salary Rs m 19 85 122
Avg. sales/employee Rs Th NA NA 47,136.6 INTERIM RESULTS
Avg. wages/employee Rs Th NA NA 241.6 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA NA 27,869.3 Net sales Rs m 4,649 4,966 9,751 5,701
Gross profit Rs m 2,562 3,320 8,640 4,655
INCOME DATA Gross profit margin % 55.1 66.9 88.6 81.7
Net Sales Rs m 4,349 12,042 23,804 Net profit Rs m 2,294 2,702 7,082 3,179
Other income Rs m 219 319 798 Net profit margin % 49.3 54.4 72.6 55.8
Total revenues Rs m 4,568 12,361 24,602
Gross profit Rs m 1,364 6,615 16,921 KEY DATA
Depreciation Rs m 3 8 15 Parameters Unit FY06 FY07 FY08
Interest Rs m 210 675 1,677 Sale of properties % of sales 11.2 22.0 14.9
Profit before tax Rs m 1,370 6,251 16,027 Sale of development rights (FSI) % of sales 75.5 68.8 85.1
Minority Interest Rs m 0 0 0 Sale of land % of sales 13.4 9.2 -
Prior Period Items Rs m 0 0 0
Extraordinary Inc (Exp) Rs m -25 -6 -31
Tax Rs m 170 771 1,922
NOTES
Profit after tax Rs m 1,175 5,474 14,074
Gross profit margin % 31.4 54.9 71.1 Founded in 1962, Housing Development and Infrastructure Ltd. (HDIL) is a leading
Effective tax rate % 12.4 12.3 12.0 real estate development company with significant operations in the Mumbai
Metropolitan Region (MMR). Besides, the company has a small presence in Kochi,
Net profit margin % 27.0 45.5 59.1
Hyderabad and Pune. HDIL is part of the Wadhawan Group, which has around 30
BALANCE SHEET DATA years of experience in the Mumbai real estate market and has around 100 million
square feet (msqft) (including HDIL) of completed projects to its credit. Since its
Current assets Rs m 6,830 17,653 72,408 incorporation in 1996, HDIL has developed 29 projects covering approximately 28.8
Current liabilities Rs m 4,189 8,588 7,476 msqft of saleable area. HDIL Entertainment, a 100% subsidiary of the company was
Net working cap to sales % 60.7 75.3 272.8 established during the year to venture into the entertainment industry.
Current ratio x 1.6 2.1 9.7
Inventory Turnover Days 400 401 847 The company reported a stellar performance in FY08, with consolidated revenues
Debtors Turnover Days 66 94 9 witnessing a jump of 98% YoY. During the same period, operating margins expanded
Net fixed assets Rs m 65 254 596 from 54.9% in FY07 to 71.1% in FY08. This sharp increase in operating margins led
Share capital Rs m 500 1,800 2,143 to a 157% YoY growth in net profit.
"Free" reserves Rs m 1,368 5,542 27,147
HDIL has a land reserve equivalent of 196 msqft of saleable area, of which
Net worth Rs m 1,854 7,155 36,391 approximately 87.2% lies in MMR, while the balance lies in Hyderabad (4.6%), Kochi
Long term debt Rs m 1,957 2,890 20,047 (7.7%) and Pune (0.6%). It is also an established player in the market for slum
Total assets Rs m 8,012 19,508 75,010 rehabilitation, which primarily involves construction of residential buildings for slum
Interest coverage x 7.5 10.3 10.6 dwellers and clearing public and private land for development of residential,
Debt to equity ratio x 1.1 0.4 0.6 commercial, retail and infrastructure purposes. It is estimated that over 6.4 m slum
Sales to assets ratio x 0.5 0.6 0.3 dwellers reside within Mumbai city, which translates into a requirement of 1,440 msqft
Return on assets % 36.3 61.2 27.9 of rehabilitated areas. This provides immense opportunities to companies like HDIL.
Return on equity % 63.4 76.5 38.7 However, the major concern for HDIL is that it is highly focused in the MMR, and as
Return on capital % 40.8 68.9 31.3 such any slowdown in the same, could have an adverse impact on the financials of
Exports to sales % 0.0 0.0 0.0 the company.
Imports to sales % 0.0 0.2 0.8
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118
 Regd off: Sector 128, Noida - 201 304, Uttar Pradesh
JAIPRAKASH ASSOCIATES LIMITED + E-Mail: harish.vaid@jalindia.co.in
Web site: www.jalindia.com
Telephone: (0120) 4609 000 Fax: (0120) 4609 363
CONSTRUCTION MISCELLANEOUS Tr agent: Alankit Assignments, Alankit House, 2E/21, Jhandewalan Extn., Delhi - 55
Chairman: Manoj Gaur SEC: Harish K. Vaid AUD: M. P. Singh & Associates
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1983 532532 JPA:IN 2 167.5 -9.5 -7.0 29.0 19.7 0.6 196,603.1 2,671.8 INE455F01025
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 44.5% Exports (fob) Rs m 120
Foreign collaborators : 0.0% Imports (cif) Rs m 6,697 (Rs)
Indian inst/Mut Fund : 11.6% Fx inflow Rs m 775 520
FIIs/GDR : 24.4% Fx outflow Rs m 8,614
Free float : 19.5% Net fx Rs m -7,839
Shareholders : 421,416
395
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
270
High Rs 514 753 510
Low Rs 170 280 101
Sales per share Rs 152.1 179.4 35.9
Earnings per share Rs 29.1 25.2 5.8 145
Cash flow per share Rs 39.1 37.1 8.5 DAILY
Dividends per share Rs 2.70 3.60 1.00
100 DMA
Dividend yield (eoy) % 0.8 0.7 0.3
20
Book value per share Rs 118.8 132.4 42.2
Shares outstanding (eoy) m 215.06 219.24 1,171.52 Sep-05 Jun-06 Mar-07 Dec-07 Sep-08
Bonus/Rights/Conversions A,BC BC FV2,WC
Price / Sales ratio x 2.2 2.9 8.5 No. of months 12 12 12
Avg P/E ratio x 11.8 20.5 52.9 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 8.8 13.9 35.9
Price / Book Value ratio x 2.9 3.9 7.2 From Operations Rs m 2,181 10,996 9,123
Dividend payout % 9.3 14.3 17.3 From Investments Rs m -5,453 -24,112 -46,564
Avg Mkt Cap Rs m 73,551 113,237 357,899 From Financial Activity Rs m 13,471 12,875 43,833
No. of employees `000 NA NA 18 Net Cashflow Rs m 10,200 -241 6,392
Total wages/salary Rs m 1,420 1,958 3,308
Avg. sales/employee Rs Th NA NA 2,334.3 INTERIM RESULTS
Avg. wages/employee Rs Th NA NA 183.8 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA NA 376.0 Net sales Rs m 8,620 9,000 12,960 11,487
Gross profit Rs m 2,210 2,230 4,140 3,123
INCOME DATA Gross profit margin % 25.6 24.8 31.9 27.2
Net Sales Rs m 32,711 39,328 42,012 Net profit Rs m 1,040 1,560 2,100 1,272
Other income Rs m 944 956 2,055 Net profit margin % 12.1 17.3 16.2 11.1
Total revenues Rs m 33,655 40,284 44,067
Gross profit Rs m 8,584 14,623 16,959 KEY DATA
Depreciation Rs m 2,149 2,596 3,188 Parameters Unit FY06 FY07 FY08
Interest Rs m 3,424 4,587 5,579 Construction % of sales 51.3 36.4 27.3
Profit before tax Rs m 3,955 8,396 10,247 Cement % of sales 37.1 45.8 45.0
Minority Interest Rs m -607 -882 -1,202 Hospitality % of sales 3.2 3.5 3.8
Prior Period Items Rs m 736 492 684 Power % of sales 8.4 14.0 16.3
Extraordinary Inc (Exp) Rs m 3,668 0 0 Real estate % of sales NA NA 6.1
Tax Rs m 1,502 2,473 2,961
NOTES
Profit after tax Rs m 6,250 5,533 6,768
Gross profit margin % 26.2 37.2 40.4 Jaipraksh Associates Ltd. (JAL) - the flagship company of the Rs 40 bn Jaypee
Effective tax rate % 38.0 29.5 28.9 Group, is a conglomerate with interests in engineering and construction (hydel power,
river valley & roads), cement, hydroelectric build-own-operate-transfer (BOOT)
Net profit margin % 19.1 14.1 16.1
projects, hotels and real estate. It has had the unique distinction of executing 13
BALANCE SHEET DATA hydropower projects simultaneously spread over 6 states and the neighbouring
country of Bhutan for the generation of 10,290 MW of power. JAL's cement business,
Current assets Rs m 46,222 50,760 73,910 which until recently concentrated in the central region, has an installed capacity of 7
Current liabilities Rs m 13,551 18,823 28,501 MT (million tones) and has India's largest single location plant. In terms of the
Net working cap to sales % 99.9 81.2 108.1 revenue composition, cement and construction segment together account for 72% of
Current ratio x 3.4 2.7 2.6 the revenues, while the rest is accounted by other segments like power (16%), hotels
Inventory Turnover Days 69 65 70 (4%) and real estate (6%).
Debtors Turnover Days 64 69 67
Net fixed assets Rs m 65,715 88,143 131,638 FY08 was a year of mixed results for JAL, with bottomline growing by 22% YoY on
Share capital Rs m 2,151 2,192 2,343 the back of a modest 7% YoY growth in topline. The better performance at the
"Free" reserves Rs m 15,882 20,341 36,582 bottomline level was largely due to an 3.3% margin expansion witnessed in operating
margins. Income from the real estate segments along with growth in its hotel and
Net worth Rs m 25,551 29,027 49,398
power business also helped JAL in growing the revenues during the year.
Long term debt Rs m 52,868 65,836 107,351
Total assets Rs m 111,983 138,980 206,751 JAL is currently in the midst of expansion of its cement capacity for which it has an
Interest coverage x 2.2 2.8 2.8 estimated capital outlay of Rs 30 bn. It is likely to have a manufacturing capacity of
Debt to equity ratio x 2.1 2.3 2.2 30.5 MT by 2011. After expansion, the company will expand its presence to the
Sales to assets ratio x 0.3 0.3 0.2 northern and western regions. During the year, JAL was awarded the access
Return on assets % 12.3 10.7 7.9 controlled 8-lane expressway project, which involves the construction of a 1,047 km
Return on equity % 24.5 19.1 13.7 expressway between Greater Noida and Ballia on a build own transfer basis (BOT).
Return on capital % 14.3 13.3 9.8 It was also allotted a land bank of 12,281 hectares for development. This project is
Exports to sales % 0.4 0.4 0.3 valued at Rs 298 bn.
Imports to sales % 4.2 12.8 15.9
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 Regd off: Mahindra Towers, 5th Floor, Worli, Mumbai - 400 018
MAHINDRA LIFESPACE DEVELOPERS LTD. E-Mail: irc@mahindralifespaces.com
Web site: www.mahindralifespaces.com
Telephone: (022) 2492 9353 Fax: (022) 2497 5084
CONSTRUCTION MAHINDRA Tr agent: Sharepro Services, Satam Est., 3rd Flr., C. G. Rd., Chakala, Mumbai - 99
Chairman: Anand G. Mahindra SEC: Suhas Kulkarni AUD: Kalyaniwalla & Mistry
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1998 532313 MLIFE:IN 10 460.9 -7.2 -13.0 28.3 26.6 0.5 18,807.3 65.3 INE813A01018
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 51.1% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 10 (Rs)
Indian inst/Mut Fund : 11.5% Fx inflow Rs m 20 1420
FIIs/GDR : 22.0% Fx outflow Rs m 16
Free float : 15.4% Net fx Rs m 4
Shareholders : 87,892
1090
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
760
High Rs 535 1,300 907
Low Rs 113 375 336
Sales per share Rs 69.7 63.7 56.6
Earnings per share Rs 5.3 5.3 16.3 430
Cash flow per share Rs 6.1 6.0 17.3 DAILY
Dividends per share Rs 1.00 1.50 2.50 100 DMA
Dividend yield (eoy) % 0.3 0.2 0.4
100
Book value per share Rs 37.2 221.4 207.3
Shares outstanding (eoy) m 31.03 33.95 40.81 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - WC WC
Price / Sales ratio x 4.6 13.1 11.0 No. of months 12 12 12
Avg P/E ratio x 60.9 158.8 38.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 52.9 138.7 35.9
Price / Book Value ratio x 8.7 3.8 3.0 From Operations Rs m -89 -1,215 -2,200
Dividend payout % 18.8 28.4 15.4 From Investments Rs m 2 -1,687 -1,544
Avg Mkt Cap Rs m 10,054 28,433 25,363 From Financial Activity Rs m 6 4,211 2,700
No. of employees `000 <500 <500 <500 Net Cashflow Rs m -82 1,309 -1,044
Total wages/salary Rs m 90 95 121
Avg. sales/employee Rs Th 14,045.5 12,952.1 12,697.8 INTERIM RESULTS
Avg. wages/employee Rs Th 584.4 568.9 664.8 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 1,071.4 1,071.9 3,648.4 Net sales Rs m 343 434 596 482
Gross profit Rs m 27 83 215 69
INCOME DATA Gross profit margin % 7.9 19.1 36.1 14.3
Net Sales Rs m 2,163 2,163 2,311 Net profit Rs m 198 112 222 97
Other income Rs m 45 76 275 Net profit margin % 57.7 25.8 37.2 20.1
Total revenues Rs m 2,208 2,239 2,586
Gross profit Rs m 368 308 654 KEY DATA
Depreciation Rs m 25 26 42 Parameters Unit FY06 FY07 FY08
Interest Rs m 139 86 21 Operation of comm. complexes % of sales 5.3 5.5 6.2
Profit before tax Rs m 249 272 866 Project developments % of sales 87.1 87.1 67.3
Minority Interest Rs m -6 -4 -25 Project management fees % of sales 2.2 1.4 0.2
Prior Period Items Rs m 0 -23 -33 Business centre revenues % of sales 2.0 2.2 3.7
Extraordinary Inc (Exp) Rs m 0 0 60
Tax Rs m 78 66 204
NOTES
Profit after tax Rs m 165 179 664
Gross profit margin % 17.0 14.2 28.3 Mahindra Lifespace Developers Limited (MLDL), formerly known as Mahindra Gesco,
Effective tax rate % 31.3 24.3 23.6 is the real estate development arm of the US$ 6 bn Mahindra Group and a wholly
owned subsidiary of Mahindra & Mahindra Limited. MLDL is one of India's leading
Net profit margin % 7.6 8.3 28.7
real estate development companies with interest in both residential and commercial
BALANCE SHEET DATA segments. The company also undertakes infrastructure projects in select sectors
through a separate subsidiary company in partnership with International Finance
Current assets Rs m 4,291 6,820 8,927 Corporation, Washington. The company through its subsidiary companies is also
Current liabilities Rs m 1,476 1,194 1,666 involved in the development of various infrastructure projects such as industrial parks
Net working cap to sales % 130.1 260.1 314.2 and Special Economic Zones (SEZs).
Current ratio x 2.9 5.7 5.4
Inventory Turnover Days 453 657 1,047 FY08 saw MLDL report an impressive performance, with more than three-fold growth
Debtors Turnover Days 36 38 71 in net profits on the back of 7% YoY growth in topline. The whopping growth in net
Net fixed assets Rs m 654 898 1,368 profits was backed by two-fold growth in operating profits and more than four-fold
Share capital Rs m 310 399 409 growth in other income.
"Free" reserves Rs m 844 7,073 8,049
Over the past few years, MLDL has successfully completed numerous projects in
Net worth Rs m 1,154 7,517 8,458 Mumbai, Pune, Bangalore, Gurgaon and New Delhi and has set higher benchmarks
Long term debt Rs m 396 475 2,855 for its peers. Apart from the residential segment, the company is counting the SEZ
Total assets Rs m 5,131 9,476 13,600 development as a big growth driver for the future. Penetration into newer markets like
Interest coverage x 2.8 4.2 42.2 Pune, Faridabad and Nashik will also help it de-risk its revenue profile. The company
Debt to equity ratio x 0.3 0.1 0.3 has also marked its first international foray by signing a MOU with the Board of
Sales to assets ratio x 0.4 0.2 0.2 Investments of Sri Lanka. The uncertainty prevailing around real estate markets,
Return on assets % 19.6 3.3 6.1 hardening of interest rates, higher input costs and competition from peers are
Return on equity % 14.3 2.4 7.9 challenges that the company needs to address.
Return on capital % 24.6 4.1 7.9
Exports to sales % 0.0 0.0 0.0
Imports to sales % 0.0 0.0 0.4
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120
 Regd off: 41, Nagarjuna Hills, Punjagutta, Hyderabad - 500 082
NAGARJUNA CONSTRUCTION COMPANY LTD. E-Mail: hosecr@ncc-ltd.com
Web site: www.ncclimited.com
Telephone: (040) 2335 1753 Fax: (040) 2335 0214
CONSTRUCTION Nagarjuna Group Tr agent: Sathguru Mgmt. Consultants, 15, Hindi Nagar, Punjagutta, Hyderabad-34
Chairman: A. V. S. Raju SEC: M. V. Srinivasa Murthy AUD: Deloitte Haskins & Sells
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1990 500294 NJCC:IN 2 129.7 -3.9 -38.0 17.7 13.0 1.0 29,669.1 390.9 INE868B01028
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 22.5% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 0 (Rs)
Indian inst/Mut Fund : 24.0% Fx inflow Rs m 0 400
FIIs/GDR : 33.0% Fx outflow Rs m 71
Free float : 20.6% Net fx Rs m -71
Shareholders : 45,801
320
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
240
High Rs 398 236 373
Low Rs 122 98 145
Sales per share Rs 177.7 141.4 158.9
Earnings per share Rs 10.0 4.6 7.3 160
Cash flow per share Rs 11.7 6.5 10.0
DAILY
Dividends per share Rs 1.60 0.40 1.30 100 DMA
Dividend yield (eoy) % 0.6 0.2 0.5
80
Book value per share Rs 91.0 48.7 67.7
Shares outstanding (eoy) m 103.56 208.51 228.84 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions FV2,GDR B1:1,PA PA
Price / Sales ratio x 1.5 1.2 1.6 No. of months 12 12 12
Avg P/E ratio x 26.0 36.1 35.4 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 22.1 25.9 26.0
Price / Book Value ratio x 2.9 3.4 3.8 From Operations Rs m -3,881 -2,411 -1,351
Dividend payout % 16.0 8.7 17.8 From Investments Rs m -1,646 -5,631 -7,965
Avg Mkt Cap Rs m 26,926 34,821 59,270 From Financial Activity Rs m 6,900 8,164 9,560
No. of employees `000 3 3 4 Net Cashflow Rs m 1,373 122 244
Total wages/salary Rs m 2,252 3,817 4,959
Avg. sales/employee Rs Th 7,260.0 9,086.6 10,042.5 INTERIM RESULTS
Avg. wages/employee Rs Th 888.4 1,176.3 1,369.9 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 407.9 297.1 462.4 Net sales Rs m 6,772 7,795 12,541 9,709
Gross profit Rs m 848 863 1,094 916
INCOME DATA Gross profit margin % 12.5 11.1 8.7 9.4
Net Sales Rs m 18,404 29,486 36,354 Net profit Rs m 337 397 526 371
Other income Rs m 114 166 449 Net profit margin % 5.0 5.1 4.2 3.8
Total revenues Rs m 18,518 29,652 36,803
Gross profit Rs m 1,521 2,761 3,724 KEY DATA
Depreciation Rs m 182 381 607 Parameters Unit FY06 FY07 FY08
Interest Rs m 197 543 1,034 Raw material expenses % of sales 41.2 35.7 34.2
Profit before tax Rs m 1,256 2,003 2,532 Subcontractor charges % of sales 34.0 33.7 34.4
Minority Interest Rs m 1 0 -3 Order book Rs m 54,282 73,021 113,800
Prior Period Items Rs m 0 -363 -22 Order book to sales x 2.9 2.5 3.1
Extraordinary Inc (Exp) Rs m 0 0 0
Tax Rs m 223 676 833
NOTES
Profit after tax Rs m 1,034 964 1,674
Gross profit margin % 8.3 9.4 10.2 Incorporated in 1978 as a partnership firm, Nagarjuna Construction Company (NCC)
Effective tax rate % 17.8 33.7 32.9 is one of India's largest infrastructure development companies in India. The company
has a rich and varied experience in execution of turnkey projects, townships,
Net profit margin % 5.6 3.3 4.6
industrial structures, multistoried/commercial buildings, roads and highways, bridges,
BALANCE SHEET DATA water supply schemes and electrical transmission projects. During the year, NCC
ventured into three new business verticals - metal, power and oil & gas, where it will
Current assets Rs m 15,989 24,744 38,883 provide civil and structural services. These new verticals contributed to nearly 19% of
Current liabilities Rs m 4,365 13,590 22,038 the company's total order backlog, which stood at Rs 114 bn as on 31st March 2008
Net working cap to sales % 63.2 37.8 46.3
Current ratio x 3.7 1.8 1.8 NCC reported strong results for the fiscal year ended March 2008. While its topline
Inventory Turnover Days 77 78 102 grew by 23% YoY, bottomline registered a strong increase of 74% YoY. The
Debtors Turnover Days 60 75 98 companys operating margins expanded by 1.1% YoY, while the net profit margins
Net fixed assets Rs m 1,938 7,200 13,061 expanded by 1.3%. The expansion at the operating level was on account of lower raw
Share capital Rs m 207 417 458 material costs and certain stock related adjustments.
"Free" reserves Rs m 9,087 9,601 14,924
Strong order book position provides good revenue visibility for the company in the
Net worth Rs m 9,424 10,155 15,483 coming years. Buildings and housing, transportation and water projects together
Long term debt Rs m 3,425 3,572 6,628 account for 72% (including international) of the current order backlog as well as the
Total assets Rs m 18,488 32,959 53,801 turnover of the company. The company expects to maintain this trend in the near
Interest coverage x 7.4 4.7 3.4 future. Also the fact that NCC has won projects in its new verticals is a positive sign
Debt to equity ratio x 0.4 0.4 0.4 for the company. This extension into these verticals will allow NCC to leverage from
Sales to assets ratio x 1.0 0.9 0.7 its competencies and raise prospects of profitable and sustainable growth.
Return on assets % 9.6 11.0 12.2
Return on equity % 11.0 9.5 10.8
Return on capital % 11.3 15.9 16.0
Exports to sales % 0.0 0.0 0.0
Imports to sales % 0.0 0.0 0.0
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121
 Regd off: Patel Estate Rd., Jogeshwari (W), Mumbai - 400 102
PATEL ENGINEERING LIMITED E-Mail: investors@pateleng.com
Web site: www.patelengineering.com
Telephone: (022) 2678 2916 Fax: (022) 2678 2455
CONSTRUCTION MISCELLANEOUS Tr agent: Intime Spectrum, C13, Pannalal Silk Mills Compd., LBS Marg, Mumbai-78
Chairman: Pravin Patel SEC: Shobha Shetty AUD: Vatsaraj & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1949 531120 PEC:IN 1 408.2 -7.3 -7.7 16.0 11.4 0.4 24,369.5 20.9 INE244B01030
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 52.6% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 560 (Rs)
Indian inst/Mut Fund : 12.5% Fx inflow Rs m 191 1070
FIIs/GDR : 8.5% Fx outflow Rs m 725
Free float : 26.5% Net fx Rs m -534
Shareholders : 46,101
840
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
610
High Rs 499 635 1,070
Low Rs 156 222 310
Sales per share Rs 184.6 215.0 309.9
Earnings per share Rs 14.7 18.8 25.3 380
Cash flow per share Rs 21.0 24.7 35.8 DAILY
Dividends per share Rs 1.30 1.30 1.50 100 DMA
Dividend yield (eoy) % 0.4 0.3 0.2
150
Book value per share Rs 39.5 117.5 140.6
Shares outstanding (eoy) m 50.00 60.00 60.00 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions ESOP PI,ESOP -
Price / Sales ratio x 1.8 2.0 2.2 No. of months 12 12 12
Avg P/E ratio x 22.2 22.8 27.3 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 15.6 17.4 19.3
Price / Book Value ratio x 8.3 3.6 4.9 From Operations Rs m -884 -1,609 -1,474
Dividend payout % 8.8 6.9 5.9 From Investments Rs m -668 -463 -4,516
Avg Mkt Cap Rs m 16,375 25,710 41,400 From Financial Activity Rs m 1,196 4,135 6,385
No. of employees `000 1 0 1 Net Cashflow Rs m -357 2,063 395
Total wages/salary Rs m 5,712 6,171 8,556
Avg. sales/employee Rs Th 7,210.2 NA 12,598.9 INTERIM RESULTS
Avg. wages/employee Rs Th 4,462.5 NA 5,796.7 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 575.8 NA 1,029.1 Net sales Rs m 2,358 2,622 5,020 3,962
Gross profit Rs m 420 470 830 566
INCOME DATA Gross profit margin % 17.8 17.9 16.5 14.3
Net Sales Rs m 9,229 12,900 18,596 Net profit Rs m 324 350 538 311
Other income Rs m 113 319 347 Net profit margin % 13.7 13.3 10.7 7.8
Total revenues Rs m 9,342 13,219 18,943
Gross profit Rs m 1,320 1,661 2,740 KEY DATA
Depreciation Rs m 311 349 627 Parameters Unit FY06 FY07 FY08
Interest Rs m 314 319 605 Domestic operations % of sales 76.7 96.8 86.2
Profit before tax Rs m 808 1,312 1,855 International operations % of sales 23.3 3.2 13.8
Minority Interest Rs m -9 -27 -109 Cost of construction % of sales 77.5 79.2 74.2
Prior Period Items Rs m 4 -15 0 Revenue per employee Rs m 8.7 10.2 12.6
Extraordinary Inc (Exp) Rs m 0 -67 0
Tax Rs m 66 144 227
NOTES
Profit after tax Rs m 737 1059 1,519
Gross profit margin % 14.3 12.9 14.7 Incorporated in 1949, Patel Engineering (PEL) is one of India's leading civil
Effective tax rate % 8.2 11.0 12.2 engineering and construction companies with a niche presence in tunnels and
underground works for hydroelectric and transport projects. The company is also
Net profit margin % 8.0 8.8 8.2
involved in providing activities such as design, construction for power, hydroelectric,
BALANCE SHEET DATA commercial buildings, industrial complexes, dams, steel and concrete structures,
bridges, marine works, flyovers and national highways. The company has completed
Current assets Rs m 8,035 11,282 20,360 over 200 projects worldwide and has a manpower base of about 1,500 employees.
Current liabilities Rs m 4,789 4,872 8,667 As on June 2008, the company's order backlog stood at over Rs 60 bn (3.2 times its
Net working cap to sales % 35.2 49.7 62.9 FY08 sales).
Current ratio x 1.7 2.3 2.3
Inventory Turnover Days 120 120 160 During the year, PEL's consolidated topline and bottomline grew by 44% YoY and
Debtors Turnover Days 68 86 91 43% YoY respectively. On the margin front, the company's operating margin
Net fixed assets Rs m 2,430 2,536 6,702 expanded by 1.9% to 14.7% during the year. The operating margin improved mainly
Share capital Rs m 50 60 60 due to efficient execution of projects, which led to a decline in construction costs (as
"Free" reserves Rs m 1,844 7,013 8,103 a percentages of sales). However, PEL wasn't able to capitalise on the same, as
higher interest and depreciation costs led the company to maintain its profit margins
Net worth Rs m 1,975 7,047 8,436
at 8.2%.
Long term debt Rs m 2,525 3,277 9,764
Total assets Rs m 10,749 15,531 27,423 With strong focus on power, roads and water projects during the eleventh plan, PEL
Interest coverage x 3.6 5.1 4.1 is slated to benefit from the spendings in these segments. Because of the slowdown
Debt to equity ratio x 1.3 0.5 1.2 in economic activities prevailing in India, PEL has chalked out certain strategies to
Sales to assets ratio x 0.9 0.8 0.7 counter the same. These include expanding its overseas operations (currently 14%
Return on assets % 23.4 13.3 11.7 of sales) along with seeking complementary inorganic growth. The company has also
Return on equity % 37.3 15.0 18.0 ventured into asset ownership during the year by taking up build, own and transfer
Return on capital % 24.8 14.7 12.9 road projects along with becoming an independent power producer. The company is
Exports to sales % 0.0 0.0 0.0 in the process of setting up a 1,200 MW thermal power plant in Gujarat and also a
Imports to sales % 2.3 1.1 3.0 100 MW hydro power plant in Arunachal Pradesh.
GET MORE INFO AT WWW.EQUITYMASTER.COM

122
 Regd off: 101, Usha Kamal, 574, Chembur Naka, Chembur, Mumbai - 71
PRATIBHA INDUSTRIES LIMITED E-Mail: investor.relations@pratibhagroup.com
Web site: www.pratibhagroup.com
Telephone: (022) 6641 4499 Fax: (022) 2520 1135
CONSTRUCTION MISCELLANEOUS Tr agent: Intime Spectrum, C13, Pannalal Silk Mills Cmpd., LBS Marg, Mumbai - 78
Chairman: Usha B. Kulkarni SEC: Pankaj S. Chourasia AUD: Jayesh Sanghrajka & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1983 532718 PRIL:IN 10 270.2 16.6 0.7 13.1 11.9 0.7 4,509.6 7.7 INE308H01014
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 60.2% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 292 (Rs)
Indian inst/Mut Fund : 10.6% Fx inflow Rs m 0 500
FIIs/GDR : 18.1% Fx outflow Rs m 624
Free float : 11.2% Net fx Rs m -624
Shareholders : 11,156
400
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
300
High Rs 299 392 470
Low Rs 135 133 144
Sales per share Rs 122.4 210.2 336.4
Earnings per share Rs 8.6 14.3 20.6 200
Cash flow per share Rs 9.1 15.1 22.7 DAILY
Dividends per share Rs 0.00 2.00 2.00 100 DMA
Dividend yield (eoy) % 0.0 0.8 0.7
100
Book value per share Rs 54.5 66.3 110.2
Shares outstanding (eoy) m 14.29 14.29 16.69 Mar-06 Oct-06 Jun-07 Jan-08 Sep-08
Bonus/Rights/Conversions PI - PP
Price / Sales ratio x 1.8 1.2 0.9 No. of months 12 12 12
Avg P/E ratio x 25.2 18.3 14.9 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 23.9 17.4 13.5
Price / Book Value ratio x 4.0 4.0 2.8 From Operations Rs m -14 -390 1,441
Dividend payout % 0.0 13.9 9.7 From Investments Rs m -348 -110 -1,604
Avg Mkt Cap Rs m 3,101 3,751 5,124 From Financial Activity Rs m 518 735 328
No. of employees `000 <500 <500 NA Net Cashflow Rs m 157 235 165
Total wages/salary Rs m 25 83 173
Avg. sales/employee Rs Th 19,433.3 6,675.6 NA INTERIM RESULTS
Avg. wages/employee Rs Th 277.8 184.4 NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 1,366.7 455.6 NA Net sales Rs m 959 1,754 2,192 1,952
Gross profit Rs m 160 184 227 210
INCOME DATA Gross profit margin % 16.7 10.5 10.4 10.8
Net Sales Rs m 1,749 3,004 5,614 Net profit Rs m 68 111 103 116
Other income Rs m 19 25 51 Net profit margin % 7.1 6.3 4.7 5.9
Total revenues Rs m 1,768 3,029 5,665
Gross profit Rs m 173 331 529 KEY DATA
Depreciation Rs m 7 11 36 Parameters Unit FY06 FY07 FY08
Interest Rs m 48 109 142 Construction expenses % of sales 81.9 79.4 79.4
Profit before tax Rs m 137 236 402 SG&A % of sales 4.3 5.7 6.3
Minority Interest Rs m 0 0 0 Personnel expenses % of sales 1.4 2.8 3.1
Prior Period Items Rs m 0 1 2
Extraordinary Inc (Exp) Rs m 0 0 0
Tax Rs m 14 32 61
NOTES
Profit after tax Rs m 123 205 343
Gross profit margin % 9.9 11.0 9.4 Pratibha Industries Ltd. (PIL) is engaged in the infrastructure development business
Effective tax rate % 10.2 13.6 15.2 with a niche in the water segment, providing one stop solution for design,
engineering, construction, commissioning and operation of water supply projects. In
Net profit margin % 7.0 6.8 6.1
FY08, water segment accounted for about 65% of the company's revenues. PIL also
BALANCE SHEET DATA has presence in mass housing projects, commercial complexes, airport terminals,
railway stations, road construction and tunneling projects. During FY08, the company
Current assets Rs m 1,402 2,673 4,378 commissioned its SAW pipes division with a manufacturing capacity of 92,000 tonnes
Current liabilities Rs m 548 878 3,283 per annum.
Net working cap to sales % 48.8 59.8 19.5
Current ratio x 2.6 3.0 1.3 PIL posted a robust 87% YoY growth in consolidated revenues during FY08, led by a
Inventory Turnover Days 79 33 119 strong accretion in its order book. Operating margins contracted by 1% on account of
Debtors Turnover Days 124 195 50 higher administrative expenses and employee costs during the year. This led to a
Net fixed assets Rs m 135 493 1,237 relatively slower (68% YoY) growth in the bottomline during FY08.
Share capital Rs m 143 143 167
As on March 2008, PIL had an order backlog of Rs 20.5 bn, which was nearly 3.6
"Free" reserves Rs m 679 806 1,672
times its FY08 revenue. This puts the company in a comfortable position for the next
Net worth Rs m 779 948 1,839 two to three years. Also the fact that the company has commissioned it pipes division,
Long term debt Rs m 274 326 699 enables it to cater to the growing requirement of pipes for captive consumption as
Total assets Rs m 1,832 3,194 6,468 well as for oil and gas distribution, thus allowing the company to diversify and boost
Interest coverage x 3.9 3.2 3.8 its revenues going forward. The entry into SAW pipes will also give an added
Debt to equity ratio x 0.4 0.3 0.4 advantage in terms of margins.
Sales to assets ratio x 1.0 0.9 0.9
Return on assets % 16.2 24.6 19.1
Return on equity % 15.8 21.6 18.7
Return on capital % 17.6 27.2 21.5
Exports to sales % 0.0 0.0 0.0
Imports to sales % 0.2 4.5 5.2
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123
 Regd off: Unitech House, 6, Community Centre, Saket, New Delhi - 110 017
UNITECH LIMITED $ E-Mail: share.dept@unitechgroup.com
Web site: www.unitechgroup.com
Telephone: (011) 2685 7331 Fax: (011) 2685 7338
CONSTRUCTION MISCELLANEOUS Tr agent: Alankit Assignments, Alankit House, 2E/21, Jhandewalan Ext, Delhi - 55
Chairman: Ramesh Chandra SEC: S. Ravi Aiyar AUD: Goel Garg & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1971 507878 UT:IN 2 157.3 -13.5 -38.0 15.4 15.2 0.2 255,276.5 2,219.5 INE694A01020
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 74.3% Exports (fob) Rs m 0
Foreign collaborators : 0.2% Imports (cif) Rs m 0 (Rs)
Indian inst/Mut Fund : 2.0% Fx inflow Rs m 0 600
FIIs/GDR : 5.4% Fx outflow Rs m 148
Free float : 18.0% Net fx Rs m -148
Shareholders : 333,689
450
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
300
High Rs 2,784 544 624
Low Rs 297 54 239
Sales per share Rs 742.0 40.5 25.3
Earnings per share Rs 67.3 16.1 10.2 150 DAILY
Cash flow per share Rs 76.3 16.2 10.4
Dividends per share Rs 1.00 0.50 0.25 100 DMA
Dividend yield (eoy) % 0.1 0.2 0.1
0
Book value per share Rs 207.5 24.6 22.2
Shares outstanding (eoy) m 12.49 811.69 1,623.38 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - FV2,B12:1 B1:1
Price / Sales ratio x 2.1 7.4 17.0 No. of months 12 12 12
Avg P/E ratio x 22.9 18.6 42.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 20.2 18.5 41.7
Price / Book Value ratio x 7.4 12.2 19.5 From Operations Rs m -2,247 -20,745 -9,750
Dividend payout % 1.5 3.1 2.4 From Investments Rs m -3,083 -7,255 -31,875
Avg Mkt Cap Rs m 19,241 242,858 700,488 From Financial Activity Rs m 6,511 34,327 45,480
No. of employees `000 1 2 3 Net Cashflow Rs m 1,182 6,328 3,855
Total wages/salary Rs m 379 621 960
Avg. sales/employee Rs Th 8,179.2 17,861.6 13,879.3 INTERIM RESULTS
Avg. wages/employee Rs Th 334.5 337.1 323.8 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 742.3 7,090.7 5,603.0 Net sales Rs m 10,135 11,421 11,601 10,317
Gross profit Rs m 5,073 7,370 4,727 6,080
INCOME DATA Gross profit margin % 50.1 64.5 40.7 58.9
Net Sales Rs m 9,267 32,901 41,152 Net profit Rs m 4,101 5,258 3,602 4,233
Other income Rs m 278 683 1,194 Net profit margin % 40.5 46.0 31.0 41.0
Total revenues Rs m 9,545 33,584 42,346
Gross profit Rs m 1,691 18,310 22,093 KEY DATA
Depreciation Rs m 112 73 205 Parameters Unit FY06 FY07 FY08
Interest Rs m 465 1,287 2,804 Construction segment % of sales 21.4 7.8 5.1
Profit before tax Rs m 1,392 17,633 20,278 Real estate segment % of sales 55.2 87.5 87.0
Minority Interest Rs m -33 -11 -129 Consultancy segment % of sales 3.5 0.5 3.0
Prior Period Items Rs m -5 3 -5 Hositality segment % of sales 9.0 0.3 0.3
Extraordinary Inc (Exp) Rs m 0 300 455 Electrical segment % of sales 7.3 2.6 1.6
Tax Rs m 513 4,864 3,986
NOTES
Profit after tax Rs m 841 13,061 16,613
Gross profit margin % 18.2 55.7 53.7 Established in 1972, Unitech is India's second largest listed real estate company. It
Effective tax rate % 36.9 27.6 19.7 has presence across all the segments of real estate development viz., residential,
commercial, retail, hospitality, amusement parks and SEZ. Currently, the company
Net profit margin % 9.1 39.7 40.4
has a land bank of over 13,922 acres, representing nearly 620 msqft of saleable area.
BALANCE SHEET DATA In order to diversify its business from locational risks (the company concentrated in
NCR), over the past few years Unitech has entered new markets like Kolkata,
Current assets Rs m 38,661 117,077 187,062 Chennai, Kochi, Hyderabad, Bangalore, Mohali, Agra and Varanasi. FY08 has been
Current liabilities Rs m 30,032 54,738 91,912 a significant year for the company for two reasons - one being its foray into the
Net working cap to sales % 93.1 189.5 231.2 Mumbai real estate market and second being its foray into the telecommunications
Current ratio x 1.3 2.1 2.0 sector. The company was allotted the Unified Access Services License (UASL) for 22
Inventory Turnover Days 1,216 965 5 telecom circles across India and is expected to start telecom operations by the end
Debtors Turnover Days 41 16 66 of FY09.
Net fixed assets Rs m 4,887 8,148 31,442
Share capital Rs m 125 1,623 3,247 During FY08, Unitech's consolidated revenues and net profits grew by 26% YoY and
"Free" reserves Rs m 2,270 16,215 31,265 27% YoY respectively. The company was able to maintain its profitability, as net
margins remained at 40% during the fiscal. As for its operating performance, the
Net worth Rs m 2,592 19,942 36,004
same was lower by 1.8% YoY mainly due to increase across the cost heads.
Long term debt Rs m 9,106 32,524 70,462
Total assets Rs m 44,517 130,899 233,794 Going forward, the company intends to focus on growing its residential segment, as
Interest coverage x 4.0 14.7 8.2 nearly 70% of its area under development is towards developing residential projects.
Debt to equity ratio x 3.5 1.6 2.0 The company has been following a three-pronged strategy for its future growth -
Sales to assets ratio x 0.2 0.3 0.2 presence across segments, multiple revenue streams (monetising projects before
Return on assets % 11.2 27.3 18.2 completion, regular fee income from projects) and focus on higher value added
Return on equity % 32.4 65.5 46.1 segment. This model is likely to help the company maintain its cash flows going
Return on capital % 15.5 36.6 22.0 forward. However, hardening of interest rates, higher input costs and competition
Exports to sales % 0.0 0.0 0.0 from peers are challenges that the company needs to address.
Imports to sales % 0.0 0.0 0.0
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124
 CONSUMER PRODUCTS
The consumer products sector mainly consists of personal
care (oral care, hair care, soaps, cosmetics and toiletries)
and household care (fabric wash and household cleaners).
The sector is divided into two distinct segments - the premium
segment catering mostly to the urban higher/upper middle
class and the popular segment with prices as low as 40% of
the premium segment, catering to mass segments in urban and
rural markets. The premium segment is less price sensitive
and more brand conscious.
India's rural markets have seen a lot of activity in the last few
years. Since penetration levels are pretty high in most urban
areas, future growth can come only from deeper rural
penetration and higher consumption. As rural income increases
and distribution network improves (in line with road
development projects), the penetration levels are set to
increase. At present, urban India accounts for 66% of total
FMCG consumption, with rural India accounts for the remaining
34%. However, rural India accounts for more than 40% of the
consumption in major FMCG categories such as personal care,
fabric care and hot beverages. FMCG companies cannot
overlook these households as they account for 12.2% of the
world's population.
The industry is volume driven and is characterised by low
margins. The products are branded and backed by marketing,
heavy advertising, slick packaging and strong distribution
networks. Also, raw material prices play an important role in
determining the pricing of the final product.
Despite the strong presence of MNC players, the unorganised
sector has a significant presence in this industry. In most
categories, the unorganised sector is almost as big as the
organised sector, if not bigger. Unorganised players offer
higher margins to stockists in order to gain marketshare. Also,
these players have deeper penetration in key regional markets
as compared to larger players.
Brand building and extensive distribution network is a key
factor. A study conducted by A&M-ORG-MARG reflects that
the share of branded goods is high for a number of daily used
products, and the share of unbranded products is shrinking,
albeit slowly.
FY08
India is the world's 12th largest consumer market. The Rs 700
bn FMCG sector grew by 12% in 2007. Higher penetration, per
capita consumption, increasing population base, and household
income continued to drive growth. The willingness to spend
Rising per capita income, increased literacy and rapid
backed by the ability to do so was also instrumental in
bolstering growth. While food was the fastest growing
segment, health & wellness products followed next. The sector
got further impetus by several tax sops, greater focus on
infrastructure development as well as a boost to rural income.
The rural markets were the main growth drivers. The number
of households in rural areas using FMCG products has gone
up from 136 m in 2004 to 143 m in 2007 implying a CAGR of
1.7%. Higher penetration was also witnessed.
RURAL AREAS : DRIVING GROWTH
Value growth (%) Volume growth (%)
Rural Urban Rural Urban
Hair oil 20.4 14.3 19.8 13.3
Coconut oil 22.0 13.5 21.2 13.5
Shampoo 10.3 14.6 7.4 7.8
Toothpaste 17.4 12.2 14.6 8.0
Source: AC Nielsen
Most of the companies had faced pressure on its input prices.
The situation worsened during the first half of this year too.
Most of the companies had taken judicious price increases.
They also reduced the packet sizes and stock-keeping units
(SKU's). However, a sustained inflationary environment could
hurt growth or margins or both.
With the economy on a high growth flight, robust consumerism,
greater rural penetration and rapidly growing organised retail,
we remain bullish on the growth prospects of the FMCG space.
While rural regions would drive consumption due to higher
penetration, organised retailing in urban markets would help
increase value growth led by demand of premium products.
The shift from unorganised to organised and from unbranded
to branded will add further impetus to growth in this segment.
However, concerns remain with respect to the increasing
competitive environment, input cost pressures and
infrastructure bottlenecks. Companies, which have the ability
to maintain and increase the market share, offset cost
pressures without sacrificing volumes would stand to benefit.
KEY POINTS
Supply : Abundant supply in metros. Distribution networks
are being beefed up to penetrate the rural areas.
Demand : According to a CII-AT Kearney report, the FMCG
sector is expected to grow at a compounded annual growth
rate of 9% to a size of Rs 1,430 bn by 2010, which highlights
the potential.
Barriers to entry : Huge investments in promoting brands,
setting up distribution networks and intense competition, but
the sector is not capital intensive.
Bargaining power of suppliers : Some of the companies
are integrated backwards, which reduces the supplier's
clout. Manufacturing is largely outsourced.
Bargaining power of customers : In case of branded
products, there is little that the consumer can influence, but
intense competition within the FMCG companies results in
value for money deals for consumers (e.g. buy one, get one
free concept).
Competition: Competition is faced from both domestic, MNCs
and also from cheaper imports, which are increasingly visible
in urban markets. Price wars are a common phenomenon.
CURRENT SCENARIO AND PROSPECTS
urbanisation have caused rapid growth and change in demand
patterns. The rising aspiration levels, increase in spending
power has led to a change in the consumption pattern. The
urban population between the ages of 15 to 34 years is
expected to increase from 107 m in 2001 to 138 m in 2011, an
increase of 30%. This would unleash a latent demand with
more money and a new mindset. With growing incomes at
both the rural and the urban level, the market potential is
expected to expand further.
Another key positive for the sector is the current government's
focus on rural India. The aim is to make India the hub of agri-
processing. The e-choupal (ITC) and Shakti (HUL) initiatives
by corporates is likely to shape the dynamics of what farmers
produce going forward, with improved efficiency.
FMCG products are witnessing a retailing revolution. The Indian
market is dominated by more than 12 m small 'mom and pop'
retail outlets. However only 4% is in the organised sector,
thereby reducing the reach. With FDI expected to be allowed,
the share from the retail formats is expected to increase.
125
 CONSUMER PRODUCTS
GLOBAL COMPARISON
FY08/CY07 Unit Unilever P&G Colgate HUL Dabur
Revenues US$ m 55,081 83,503 13,789 3,421 589
EBIDTA margin % of sales 14.7 21.3 21.0 13.7 17.1
Profit after tax US$ m 5,669 12,075 1,737 480 83
Net profit margins % of sales 9.7 14.5 12.6 14.0 14.1
Return on equity % 29.1 17.4 83.0 134.0 54.8
Return on assets % 9.9 8.4 17.2 28.2 22.7
Debt/equity No 0.8 0.3 1.4 0.1 0.2
Inventory days Days 35 35 31 52 47
SG&A expenses % of sales 35.4 30.8 35.7 23.0 24.0
Book value per share US$ 3.1 22.2 3.80 0.2 0.3

UNILEVER (EUROPE)

Unilever is one of the largest producers of some 400 packaged consumer goods. It operates in nearly all countries
in Asia, Africa, North America, the Middle East, Western Europe, and Latin America. The company's brand names for
fragrances, frozen foods, soap, and tea include Calvin Klein, Birds Eye, Dove, and Lipton. Unilever is part of the
Unilever Group owned by the Netherlands-based Unilever N.V. and UK-based Unilever PLC. Unilever has two
global divisions, Home & Personal Care and Food. Unilever Home and Personal Care offers brands such as Dove,
Lux, Omo and Surf. Unilever sells its products through its sales force, independent brokers, agents, distributors,
distribution centers, satellite warehouses, company-operated and public storage facilities, depots and other facilities
to chain, wholesale, co-operative and independent grocery accounts, food service distributors, and institutions. In
2006, Unilever acquired the shares of Elais-Unilever S.A. held by third party shareholders and is Unilever's main
foods business in Greece. It also sold off its frozen foods businesses in Europe to Permira Funds. The company,
formerly known as Lever Brothers Limited, was founded in 1885 by William Hesketh Lever and is based in London.
Today, the company has grown into one of the world's most successful consumer goods companies.

COLGATE (US)

Colgate-Palmolive is a US$ 13 bn MNC, catering to more than 200 countries with consumer products. The company
has a strong focus on its core businesses - Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate has
delivered strong global growth by a defined strategy to increase market leadership positions for key products such
as toothpaste, toothbrushes, bar and liquid soaps, deodorants / antiperspirants, dishwashing detergents, household
cleaners, fabric conditioners and specialty pet food. The company looks at its business based on 4 regions and pet
food separately. The business is thus divided into 5 divisions, namely North America, Latin America, Europe, Asia/
Africa and Hill's pet nutrition. It offers its products primarily under the trademarks Colgate, Palmolive, Kolynos,
Sorriso, Elmex, Mennen, Protex, Softsoap, Irish Spring, Ajax, Axion, Soupline and Suavitel. Colgate-Palmolive was
founded in 1806 and is headquartered in New York City.

P&G (US)

Procter & Gamble is a leading global beauty company with more than 100 brands available in nearly 130 countries.
Its business is divided into three global units: beauty, health and well being, and household care. Some 25 of
P&G's brands are billion-dollar sellers, including Gillette Fusion, Always/Whisper, Braun, Bounty, Charmin, Crest,
Gillette, Iams, Olay, Pampers, Pantene, Pringles, Tide, and Wella, among others. It sells its products primarily
through mass merchandisers, grocery stores, membership club stores, and drug stores. P&G bought Clairol in
2001 and a majority of Wella in 2003. It bought Gillette in a US$ 57 bn deal. Both the companies will be able to grow
faster together than separately, with P&G opening doors for Gillette in markets such as China and Japan, while
Gillette will bring P&G some product segments that are growing faster than the company's overall current portfolio
of products. Procter & Gamble has a research and development agreement with Hutchison MediPharma Limited to
discover and develop new active ingredients from Traditional Chinese Medicine and botanical sources for
incorporation into beauty care products. The company was founded in 1837 and is headquartered in Cincinnati,
Ohio.

Source: Yahoo Finance, Company reports TTM - Trailing twelve months

126
 Regd off: Colgate Research Centre, Main Rd, Hiranandani Gardens, Mumbai - 76
COLGATE-PALMOLIVE (INDIA) LIMITED E-Mail: investor_grievance@colpal.com
Web site: www.colgate.co.in
Telephone: (022) 6709 5050 Fax: (022) 2570 5088
CONSUMER PRODUCTS MNC Tr agent: Sharepro, 912, Raheja Centre, Free Press Journal Rd., Mumbai - 21
Chairman: J. Skala SEC: K. V. Vaidyanathan AUD: Price Waterhouse
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1937 500830 CLGT:IN 1 411.6 -0.3 3.4 23.7 21.8 3.2 55,967.5 12.4 INE259A01022
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 145
Foreign collaborators : 51.0% Imports (cif) Rs m 389 (Rs)
Indian inst/Mut Fund : 13.0% Fx inflow Rs m 656 580
FIIs/GDR : 7.8% Fx outflow Rs m 1,480
Free float : 28.2% Net fx Rs m -824
Shareholders : 133,468
485
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
390
High Rs 432 457 488
Low Rs 182 295 331
Sales per share Rs 82.8 95.3 108.4
Earnings per share Rs 10.3 10.9 17.3 295
DAILY
Cash flow per share Rs 13.5 12.4 18.9
Dividends per share Rs 7.50 9.50 13.00 100 DMA
Dividend yield (eoy) % 2.4 2.5 3.2
200
Book value per share Rs 20.6 20.5 12.3
Shares outstanding (eoy) m 135.99 135.99 135.99 Sep-05 Jun-06 Feb-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 3.7 3.9 3.8 No. of months 12 12 12
Avg P/E ratio x 29.8 34.5 23.6 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 22.8 30.4 21.7
Price / Book Value ratio x 14.9 18.4 33.3 From Operations Rs m 1,878 1,577 2,914
Dividend payout % 72.9 87.1 75.0 From Investments Rs m -354 40 96
Avg Mkt Cap Rs m 41,749 51,132 55,688 From Financial Activity Rs m -1,206 -1,360 -2,781
No. of employees `000 1 1 1 Net Cashflow Rs m 318 257 228
Total wages/salary Rs m 986 1,134 1,238
Avg. sales/employee Rs Th 8,231.0 11,169.8 12,081.1 INTERIM RESULTS
Avg. wages/employee Rs Th 720.8 977.6 1,014.8 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 1,023.4 1,279.3 1,932.0 Net sales Rs m 3,639 3,675 3,913 4,076
Gross profit Rs m 565 612 507 660
INCOME DATA Gross profit margin % 15.5 16.7 13.0 16.2
Net Sales Rs m 11,260 12,957 14,739 Net profit Rs m 548 605 557 719
Other income Rs m 477 659 772 Net profit margin % 15.1 16.5 14.2 17.6
Total revenues Rs m 11,737 13,616 15,511
Gross profit Rs m 1,885 2,082 2,518 KEY DATA
Depreciation Rs m 433 196 209 Parameters Unit FY06 FY07 FY08
Interest Rs m 7 10 12 Soaps& Toileteries % of sales 89.7 84.2 84.2
Profit before tax Rs m 1,922 2,535 3,069 Toothbrush and shavebrushes % of sales 10.0 9.2 10.4
Minority Interest Rs m 0 0 -9 Advertising % of sales 17.6 16.0 17.4
Prior Period Items Rs m 0 0 0 Gross margins % 47.4 46.9 50.9
Extraordinary Inc (Exp) Rs m -15 -580 -10 Inventory days days 24 23 21
Tax Rs m 507 471 693
NOTES
Profit after tax Rs m 1,400 1,484 2,357
Gross profit margin % 16.7 16.1 17.1 Colgate was promoted by Colgate-Palmolive USA, the parent who has a 51% stake
Effective tax rate % 26.4 18.6 22.6 in the Indian subsidiary. The company manufactures and markets products for oral
care, personal care and household care. Oral care products contributes ~ 90% to
Net profit margin % 12.4 11.5 16.0
total revenues. In this core business, Colgate dominates, enjoying a 48.4% market
BALANCE SHEET DATA share in toothpastes and about 34.9% in toothbrushes in India. Other products
include personal care products like shower gels, shower creams, toilet soaps, liquid
Current assets Rs m 3,119 3,577 3,954 handwashes, and shaving creams mostly under the Palmolive brand. In the
Current liabilities Rs m 3,531 4,229 5,532 household segment, Colgate markets dish-washing soaps under the brand name
Net working cap to sales % -3.7 -5.0 -10.7 Axion.
Current ratio x 0.9 0.8 0.7
Inventory Turnover Days 25 23 21 The company achieved a 14% YoY growth in the topline driven by sales across its
Debtors Turnover Days 2 3 2 product categories for FY08. The company increased its Baddi capacity from 24,000
Net fixed assets Rs m 1,735 1,920 2,403 MT to 40,000 MT. The operating margins increased by 50 basis points to 15.6%
Share capital Rs m 1,360 1,360 136 (excluding the VRS cost) on account of higher ad spends. Colgate closed its Sewri
"Free" reserves Rs m 1,445 1,421 1,498 plant, which would improve profitability going forward due to a lower wage bill.
Net worth Rs m 2,807 2,784 1,673 The per capita consumption of toothpaste in India is amongst the lowest in the world,
Long term debt Rs m 43 43 47 and being the No.1 player in this category, the company is poised to benefit from
Total assets Rs m 6,306 6,799 7,009 increased consumption going forward. However, in our view, the prospects are still
Interest coverage x 275.6 254.5 256.8 too leveraged on one product. However, the parent globally, has decided to close a
Debt to equity ratio x 0.0 0.0 0.0 third of its 78 manufacturing units and India could be a favored destination for
Sales to assets ratio x 1.8 1.9 2.1 outsourcing toothpaste. Currently, the China plant produces over 900 m toothbrushes
Return on assets % 49.4 52.8 137.7 per year and supplies to over 60 Colgate subsidiaries worldwide. The parent has a 5-
Return on equity % 49.9 53.3 140.9 year plan of cutting down toothpaste and bar soap manufacturing locations to 15
Return on capital % 67.2 69.5 178.0 each and toothbrush manufacturing locations to 8 globally. This as mentioned before,
Exports to sales % 0.6 0.5 1.0 could benefit the subsidiary in India.
Imports to sales % 4.6 3.9 2.6
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127
 Regd off: Pirojshanagar, Eastern Express Highway, Vikhroli (E), Mumbai - 400 079
GODREJ CONSUMER PRODUCTS LTD. E-Mail: investor.relations@godrejcp.com
Web site: www.godrejcp.com
Telephone: (022) 2518 8010 Fax: (022) 2518 8040
CONSUMER PRODUCTS GODREJ Tr agent: Computech Sharecap Ltd., 147, M. G. Road, Mumbai - 400 001
Chairman: Adi Godrej SEC: Sunil Sapre AUD: Kalyaniwalla & Mistry
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
2001 532424 GCPL:IN 1 126.1 4.6 -10.0 20.4 18.3 3.2 32,543.9 1.7 INE102D01028
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 69.3% Exports (fob) Rs m 125
Foreign collaborators : 0.0% Imports (cif) Rs m 1,829 (Rs)
Indian inst/Mut Fund : 1.4% Fx inflow Rs m 173 202
FIIs/GDR : 18.5% Fx outflow Rs m 1,846
Free float : 10.8% Net fx Rs m -1,673 DAILY
Shareholders : 95,195
174 100 DMA
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
146
High Rs 764 200 178
Low Rs 260 122 95
Sales per share Rs 123.9 37.3 43.1
Earnings per share Rs 21.5 5.6 6.2 118
Cash flow per share Rs 23.5 6.2 6.9
Dividends per share Rs 14.00 3.75 4.00
Dividend yield (eoy) % 2.7 2.3 2.9
90
Book value per share Rs 13.9 4.8 6.6
Shares outstanding (eoy) m 56.46 255.84 255.84 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions BB FV1 -
Price / Sales ratio x 4.1 4.3 3.2 No. of months 12 12 12
Avg P/E ratio x 23.8 28.6 21.9 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 21.8 26.0 19.7
Price / Book Value ratio x 36.7 33.8 20.7 From Operations Rs m 1,427 1,204 1,622
Dividend payout % 65.2 66.6 64.3 From Investments Rs m -1,364 -943 -638
Avg Mkt Cap Rs m 28,908 41,191 34,922 From Financial Activity Rs m -342 -50 -1,034
No. of employees `000 1 1 1 Net Cashflow Rs m -279 212 -49
Total wages/salary Rs m 475 544 725
Avg. sales/employee Rs Th 5,909.6 7,687.9 8,845.4 INTERIM RESULTS
Avg. wages/employee Rs Th 401.2 438.7 580.9 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 1,024.5 1,162.1 1,275.6 Net sales Rs m 2,740 2,728 2,718 3,616
Gross profit Rs m 501 568 567 495
INCOME DATA Gross profit margin % 18.3 20.8 20.9 13.7
Net Sales Rs m 6,997 9,533 11,039 Net profit Rs m 370 430 408 391
Other income Rs m 21 66 46 Net profit margin % 13.5 15.8 15.0 10.8
Total revenues Rs m 7,018 9,599 11,085
Gross profit Rs m 1,387 1,779 2,134 KEY DATA
Depreciation Rs m 115 142 182 Parameters Unit FY06 FY07 FY08
Interest Rs m 42 118 123 Soaps % of sales 56.0 50.0 52.0
Profit before tax Rs m 1,251 1,585 1,875 Hair colour % of sales 23 22.0 23
Minority Interest Rs m 0 0 0 Advertising % of sales 8.1 8.1 8.3
Prior Period Items Rs m 5 48 0 Gross margins % 46.6 45.8 46.4
Extraordinary Inc (Exp) Rs m 70 51 0 Inventory days days 52 52 63
Tax Rs m 113 243 283
NOTES
Profit after tax Rs m 1,213 1,441 1,592
Gross profit margin % 19.8 18.7 19.3 Godrej Consumer Products Ltd. (GCPL) is amongst the well known mid-cap
Effective tax rate % 9.0 15.3 15.1 companies in the Indian FMCG space with presence in the personal care, hair care
and fabric care categories and top-of-the-mind brands such as Cinthol, Fairglow,
Net profit margin % 17.3 15.1 14.4
Godrej No.1 (soaps) and Ezee liquid detergent to name a few. It acquired 100%
BALANCE SHEET DATA ownership of the UK based Keyline Brands, which also owns several international
brands and trademarks in Europe, Jordan, Australia and Canada. In July 2006, GCPL
Current assets Rs m 1,714 2,775 3,519 entered into an agreement to acquire the South African hair color business of
Current liabilities Rs m 1,885 2,617 3,227 Rapidol, UK. In October 2007, it acquired 100% subsidiary of Godrej International,
Net working cap to sales % -2.4 1.7 2.6 Godrej Global Mideast FZE (GGME) at a total cost of Rs 58 m GCPL also completed
Current ratio x 0.9 1.1 1.1 the acquisition of the Kinky Group in April 2008, which is the leader in the natural and
Inventory Turnover Days 52 52 63 artificial hair business in South Africa.
Debtors Turnover Days 16 18 17
Net fixed assets Rs m 850 1,992 2,399 GCPL reported a strong performance with revenues and net profits growing by 16%
Share capital Rs m 226 226 226 YoY and 11% YoY respectively for FY08 (inclusive of acquisitions). The international
"Free" reserves Rs m 535 993 1,488 operations have grown at a CAGR of 125% over the last 2 years. It contributes nearly
20% to the total revenues. GCPL outperformed (19%) the industry growth (10%) in
Net worth Rs m 787 1,220 1,687
soaps yet again. Owing to lower raw material costs, the margins improved by 60
Long term debt Rs m 643 1,314 1,715
basis points (0.6%). GCPL formed a 50:50 joint venture with SCA Hygiene Products
Total assets Rs m 3,425 5,653 6,874 AB, Sweden to manufacture & market sanitary napkins and baby diapers in India.
Interest coverage x 30.8 14.4 16.2
Debt to equity ratio x 0.8 1.1 1.0 Given the company's strong standing in the mid and lower segments of the soap
Sales to assets ratio x 2.0 1.7 1.6 business, scope for further expansion of market share exists. Though the company is
Return on assets % 87.8 61.5 50.4 losing its market share in the hair colour segment, it is planning to launch new
Return on equity % 154.1 118.1 94.4 products in the segment. The acquisitions are growing at a much faster rate than the
Return on capital % 95.7 71.1 58.7 company's established products. Also, the lower margin products are witnessing
Exports to sales % 1.5 1.2 1.1 faster growth. The company's future prospects and access to newer regions look
Imports to sales % 14.7 13.5 16.6 good.
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128
 Regd off: Hindustan Unilever House, 165/166, Backbay Reclamation, Mumbai - 20
HINDUSTAN UNILEVER LIMITED + $ E-Mail: hllshare.cmpt@unilever.com
Web site: www.hll.com
Telephone: (022) 3983 2567 Fax: (022) 2202 6712
CONSUMER PRODUCTS UNILEVER Tr agent: Karvy Computer, 46, Avenue 4, St. No. 1, Banjara Hills, Hyderabad - 34
Chairman: Harish Manwani SEC: Ashok Gupta (VP) AUD: Lovelock & Lewes
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1933 500696 HUVR:IN 1 245.1 2.1 15.4 27.9 26.0 3.7 533,911.1 295.3 INE030A01027
SHAREHOLDING FX Transaction (CY07) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 12,647
Foreign collaborators : 52.1% Imports (cif) Rs m 7,592 (Rs)
Indian inst/Mut Fund : 15.4% Fx inflow Rs m 14,837 310
FIIs/GDR : 14.3% Fx outflow Rs m 19,759
Free float : 18.2% Net fx Rs m -4,922
Shareholders : 374,978
270
No. of months 12 12 12
Year ending 31/12/05 31/12/06 31/12/07
EQUITY SHARE DATA
230
High Rs 201 296 230
Low Rs 136 179 166
Sales per share Rs 52.5 56.2 63.9
Earnings per share Rs 6.2 8.6 8.8 190
Cash flow per share Rs 6.8 9.2 9.4 DAILY
Dividends per share Rs 5.00 6.00 9.00 100 DMA
Dividend yield (eoy) % 3.0 2.5 4.5
150
Book value per share Rs 9.9 11.9 6.9
Shares outstanding (eoy) m 2,201.24 2,206.77 2,177.46 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - ESOP BB,ESOP
Price / Sales ratio x 3.2 4.2 3.1 No. of months 12 12 12
Avg P/E ratio x 27.4 27.7 22.5 Year ending 31/12/05 31/12/06 31/12/07
CASH FLOW
P/CF ratio (eoy) x 24.8 25.9 21.0
Price / Book Value ratio x 17.1 20.0 28.6 From Operations Rs m 19,587 16,714 17,289
Dividend payout % 81.2 70.0 102.3 From Investments Rs m 5,452 -2,441 10,010
Avg Mkt Cap Rs m 370,909 524,108 431,137 From Financial Activity Rs m -28,656 -13,914 -29,284
No. of employees `000 NA NA 15 Net Cashflow Rs m -3,617 359 -1,985
Total wages/salary Rs m 6,851 6,885 7,815
Avg. sales/employee Rs Th NA NA 9,275.6 INTERIM RESULTS
Avg. wages/employee Rs Th NA NA 521.0 3QCY07 4QCY07 1QCY08 2QCY08
Avg. net profit/employee Rs Th NA NA 1,276.5 Net sales Rs m 33,646 36,874 37,939 42,157
Gross profit Rs m 4,476 6,417 4,052 5,515
INCOME DATA Gross profit margin % 13.3 17.4 10.7 13.1
Net Sales Rs m 115,658 124,109 139,134 Net profit Rs m 4,093 6,315 3,758 5,402
Other income Rs m 3,067 3,745 4,223 Net profit margin % 12.2 17.1 9.9 12.8
Total revenues Rs m 118,725 127,854 143,357
Gross profit Rs m 14,361 16,126 19,042 KEY DATA
Depreciation Rs m 1,384 1,357 1,419 Parameters Unit CY05 CY06 CY07
Interest Rs m 242 140 265 HPC % of sales 68.9 73.0 72.5
Profit before tax Rs m 15,802 18,374 21,581 FOODS % of sales 15.5 15.0 16.1
Minority Interest Rs m -27 -36 -40 Exports % of sales 12.8 10.4 9.8
Prior Period Items Rs m 460 -5 50 Selling expenses % of sales 23.0 22.5 22.5
Extraordinary Inc (Exp) Rs m 428 3,889 1,821 Gross margins % 36.1 39.7 24.1
Tax Rs m 3,104 3,317 4,264
NOTES
Profit after tax Rs m 13,559 18,905 19,148
Gross profit margin % 12.4 13.0 13.7 HUL (earlier HLL) changed its name to show its continued commitment towards its
Effective tax rate % 19.6 18.1 19.8 local roots while leveraging the global scale and reputation of Unilever with its
consumers and other stakeholders in India. The company's turnover at Rs 100 bn is
Net profit margin % 11.7 15.2 13.8
over one third of the total branded/organised FMCG market in India. It is present in
BALANCE SHEET DATA over 20 distinct categories in Home & Personal Care Products and Foods &
Beverages. The company has embarked on a major restructuring exercise focusing
Current assets Rs m 29,195 31,897 34,196 on improvement in quality of earnings, pruning its brand portfolio and securing a
Current liabilities Rs m 42,791 46,338 51,950 viable future for its non-core businesses spin-offs.
Net working cap to sales % -11.8 -11.6 -12.8
Current ratio x 0.7 0.7 0.7 Total sales grew by 2% YoY during 1HCY08 with Home and Personal Care (HPC)
Inventory Turnover Days 44 47 53 and Foods businesses growing by 20% YoY and 14% YoY respectively. Stronger
Debtors Turnover Days 18 14 12 volume growth, better mix, effective market activation and appropriate brand support
Net fixed assets Rs m 16,205 15,852 17,477 continued to be the key levers for growth. The margins declined due to higher ad
Share capital Rs m 2,201 2,207 2,177 spend. It has extended its water purifier Purefit to 364 towns and has sold 1 m units.
"Free" reserves Rs m 19,216 23,718 12,601 Barring the extraordinary item, bottomline grew by 19% YoY.
Net worth Rs m 21,695 26,235 15,082 Aggressive pricing actions in its core categories have been targeted towards not only
Long term debt Rs m 36 12 3 countering the commodity inflation, but also enabling the company to expand
Total assets Rs m 63,616 71,272 65,965 margins. HUL has done well in the past two years, even in the face of very aggressive
Interest coverage x 66.3 132.2 82.4 moves by its competitors, to maintain its market share. Also, the company is looking
Debt to equity ratio x 0.0 0.0 0.0 at increasing its presence in new growth areas like foods and water. The
Sales to assets ratio x 1.8 1.7 2.1 management has indicated that it intends to grow its top line aggressively in the
Return on assets % 63.5 72.6 128.7 future. However, pressure on the margins continues to remain a cause of concern.
Return on equity % 62.5 72.1 127.0
Return on capital % 77.8 85.2 157.0
Exports to sales % 11.2 10.1 9.1
Imports to sales % 5.8 6.0 5.5
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129
 Regd off: Rang Sharda, Krishnachandra Marg, Bandra Reclamation, Mumbai - 50
MARICO LIMITED E-Mail: milinvrel@maricoindia.net
Web site: www.maricoindia.com
Telephone: (022) 6648 0480 Fax: (022) 6649 0112
CONSUMER PRODUCTS MARIWALA Tr agent: Intime Spectrum, C-13, Pannalal Mills Compd., LBS Marg, Mumbai - 78
Chairman: Harsh Charandas Mariwala SEC: Vinod Kamath AUD: Price Waterhouse
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1988 531642 MRCO:IN 1 59.0 4.4 -0.3 21.2 18.0 1.2 35,900.6 20.0 INE196A01026
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 63.5% Exports (fob) Rs m 712
Foreign collaborators : 0.0% Imports (cif) Rs m 119 (Rs)
Indian inst/Mut Fund : 9.4% Fx inflow Rs m 814 88
FIIs/GDR : 17.2% Fx outflow Rs m 125
Free float : 9.9% Net fx Rs m 689
Shareholders : 35,086
71
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
54
High Rs 578 68 78
Low Rs 232 33 47
Sales per share Rs 197.2 25.6 31.3
Earnings per share Rs 15.0 1.5 2.8 37 DAILY
Cash flow per share Rs 22.7 2.3 3.3
Dividends per share Rs 6.20 0.70 0.70 100 DMA
Dividend yield (eoy) % 1.5 1.4 1.1
20
Book value per share Rs 45.0 3.2 5.2
Shares outstanding (eoy) m 58.00 609.00 609.00 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - FV1,PP -
Price / Sales ratio x 2.1 2.0 2.0 No. of months 12 12 12
Avg P/E ratio x 27.0 34.6 22.5 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 17.8 21.8 19.0
Price / Book Value ratio x 9.0 16.0 12.1 From Operations Rs m 1,648 1,884 1,431
Dividend payout % 41.4 48.0 25.2 From Investments Rs m -2,832 -2,770 -1,586
Avg Mkt Cap Rs m 23,490 30,755 38,063 From Financial Activity Rs m 1,281 859 472
No. of employees `000 2 2 1 Net Cashflow Rs m 96 -27 316
Total wages/salary Rs m 797 928 1,290
Avg. sales/employee Rs Th 7,333.3 8,462.0 15,955.6 INTERIM RESULTS
Avg. wages/employee Rs Th 510.9 504.3 1,079.5 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 557.1 483.2 1,415.1 Net sales Rs m 4,638 5,062 4,675 6,009
Gross profit Rs m 647 642 455 757
INCOME DATA Gross profit margin % 13.9 12.7 9.7 12.6
Net Sales Rs m 11,440 15,570 19,067 Net profit Rs m 422 459 301 463
Other income Rs m 42 94 90 Net profit margin % 9.1 9.1 6.4 7.7
Total revenues Rs m 11,482 15,664 19,157
Gross profit Rs m 1,423 1,939 2,410 KEY DATA
Depreciation Rs m 447 521 308 Parameters Unit FY06 FY07 FY08
Interest Rs m 45 191 253 Consumer products % of sales 95.3 94.7 94.2
Profit before tax Rs m 973 1,321 1,939 Skin care % of sales 4.7 5.3 5.8
Minority Interest Rs m 0 0 0 International business % of sales 10.2 12.4 16.1
Prior Period Items Rs m -23 -62 0 Advertisement % of sales 12.1 13.3 12.9
Extraordinary Inc (Exp) Rs m 7 -60 112 Gross margins % 24.7 27.0 25.8
Tax Rs m 88 310 360
NOTES
Profit after tax Rs m 869 889 1,691
Gross profit margin % 12.4 12.5 12.6 Marico is one of the leading Indian groups in consumer products and services in the
Effective tax rate % 9.0 23.5 18.6 beauty and wellness space. It has products and services in hair care, skin care and
healthy foods. Marico's brands and their extensions occupy leadership positions with
Net profit margin % 7.6 5.7 8.9
significant market shares in all categories. The company is present in the skin care
BALANCE SHEET DATA services segment through Kaya skin care clinics (65 clinics) in India and the UAE,
and also through the Sundari range of Ayurvedic skin care spa products in the US and
Current assets Rs m 2,782 4,003 5,281 other countries. Marico's branded products are also present in Bangladesh, other
Current liabilities Rs m 1,704 2,827 2,952 South Asian Association for Regional Co-operation (SAARC) countries and the
Net working cap to sales % 9.4 7.6 12.2 Middle East. Marico has been growing both organically and inorganically. It acquired
Current ratio x 1.6 1.4 1.8 'Nihar', 'Oil of Malabar' and 'Manjal' herbal soap brand in India. It acquired a clutch of
Inventory Turnover Days 42 52 51 brands namely 'Camelia', 'Aromatic' and 'Magnolia' in Bangladesh and 'Fiancee' and
Debtors Turnover Days 16 15 17 'Haircode' in Egypt.
Net fixed assets Rs m 3,813 1,654 2,573
Share capital Rs m 580 609 609 Marico reported a strong 23% YoY growth in the consolidated topline for FY08 led by
"Free" reserves Rs m 1,975 1,179 2,348 the 22% YoY growth in consumer product business, 59% YoY growth in international
business and 34% YoY growth in Kaya. The operating margins were at 13% and the
Net worth Rs m 2,612 1,923 3,146
company reported a 50% YoY growth in net profits. It acquired Enaleni
Long term debt Rs m 16 0 1,098
Pharmaceuticals' Consumer Division, which has a presence in the South African
Total assets Rs m 6,796 6,107 8,697 ethnic hair care and health care market.
Interest coverage x 22.6 7.9 8.7
Debt to equity ratio x 0.0 0.0 0.3 Marico's business model is based on focused growth across all its brands and
Sales to assets ratio x 1.7 2.5 2.2 territories driven by continuously improving the value proposition to consumers,
Return on assets % 34.8 56.2 45.8 market expansion and widening its retail reach. It has identified new engines of
Return on equity % 33.3 46.2 53.8 growth and is also focusing on high margin products. It continues to improve its
Return on capital % 38.1 72.3 54.3 market share across product categories and is also doing well in the international
Exports to sales % 5.4 4.7 3.7 business. The management's uncommon thinking of transforming Marico from an oil
Imports to sales % 1.1 1.8 0.6 company to a health and wellness firm is paying off well.
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130
 Regd off: 7th Floor, Regent Chambers, Jamnalal Bajaj Marg, 208, Mumbai - 21
PIDILITE INDUSTRIES LIMITED E-Mail: pil@pidilite.com
Web site: www.pidilite.com
Telephone: (022) 2282 2708 Fax: (022) 2204 3969
CONSUMER PRODUCTS MISCELLANEOUS Tr agent: TSR Darashaw Ltd, Army & Navy Bldg., 148, M. G. Road, Mumbai - 1
Chairman: B. K. Parekh SEC: P. C. Patel AUD: Haribhakti & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1965 500331 PIDI:IN 1 138.5 -4.7 -3.8 20.3 16.0 1.3 35,050.2 2.3 INE318A01026
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 70.3% Exports (fob) Rs m 1,442
Foreign collaborators : 0.6% Imports (cif) Rs m 2,441 (Rs)
Indian inst/Mut Fund : 8.6% Fx inflow Rs m 1,442 240
FIIs/GDR : 9.0% Fx outflow Rs m 2,657
Free float : 11.6% Net fx Rs m -1,215
Shareholders : 26,986
190
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
140
High Rs 107 144 220
Low Rs 37 74 110
Sales per share Rs 36.3 49.5 67.5
Earnings per share Rs 3.5 4.4 6.8 90
Cash flow per share Rs 4.6 5.7 8.6 DAILY
Dividends per share Rs 1.25 1.50 1.75 100 DMA
Dividend yield (eoy) % 1.7 1.4 1.1
40
Book value per share Rs 16.4 19.0 24.4
Shares outstanding (eoy) m 252.39 252.39 253.06 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions FV1 - BC
Price / Sales ratio x 2.0 2.2 2.4 No. of months 12 12 12
Avg P/E ratio x 20.7 24.6 24.1 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 15.7 19.0 19.1
Price / Book Value ratio x 4.4 5.7 6.8 From Operations Rs m 1,086 771 1,102
Dividend payout % 35.9 33.9 25.6 From Investments Rs m -715 -1,077 -2,821
Avg Mkt Cap Rs m 18,172 27,511 41,755 From Financial Activity Rs m -352 526 3,052
No. of employees `000 3 3 4 Net Cashflow Rs m 20 220 1,333
Total wages/salary Rs m 845 1,091 1,640
Avg. sales/employee Rs Th 3,440.9 4,239.8 4,280.1 INTERIM RESULTS
Avg. wages/employee Rs Th 317.1 370.6 410.9 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 329.5 379.4 433.2 Net sales Rs m 3,705 3,889 3,685 4,976
Gross profit Rs m 724 563 493 884
INCOME DATA Gross profit margin % 19.5 14.5 13.4 17.8
Net Sales Rs m 9,170 12,482 17,082 Net profit Rs m 568 409 343 673
Other income Rs m 120 189 315 Net profit margin % 15.3 10.5 9.3 13.5
Total revenues Rs m 9,290 12,671 17,397
Gross profit Rs m 1,397 1,662 2,420 KEY DATA
Depreciation Rs m 278 328 459 Parameters Unit FY06 FY07 FY08
Interest Rs m 15 66 190 Consumer segment % of sales 75.0 75.0 71.7
Profit before tax Rs m 1,224 1,457 2,086 Speciality segment % of sales 25.0 25.0 21.5
Minority Interest Rs m 3 1 2 Advertisement % of sales 4.3 4.6 4.2
Prior Period Items Rs m 20 2 4 Gross margins % 36.0 35.2 36.6
Extraordinary Inc (Exp) Rs m 57 0 0 Inventory days days 62 62 63
Tax Rs m 426 343 363
NOTES
Profit after tax Rs m 878 1,117 1,729
Gross profit margin % 15.2 13.3 14.2 Pidilite is the market leader in craftsmen products, DIY (Do-it-Yourself) products and
Effective tax rate % 34.8 23.5 17.4 industrial specialty chemicals. The product range can be broadly classified into two
main categories - consumer products and speciality industrial products. On the
Net profit margin % 9.6 8.9 10.1
consumer side, it has products under art materials, adhesives, sealants, fabric care
BALANCE SHEET DATA and car care segments. For the industrial product range, it has products in industrial
adhesives, industrial pigments, leather chemicals and textile resins.
Current assets Rs m 3,206 4,700 8,012
Current liabilities Rs m 1,427 2,126 2,823 The company registered an overall growth of 33% YoY in revenues in FY08, backed
Net working cap to sales % 19.4 20.6 30.4 by growth in consumer & bazaar products (up 25% YoY). This segment contributes
Current ratio x 2.2 2.2 2.8 around 72% to revenues. It must be noted that within the consumer products
Inventory Turnover Days 62 65 64 category, the adhesives and sealant market, which is estimated at Rs 7 bn, has been
Debtors Turnover Days 45 46 51 growing at over 15% over the past few years. As for the industrial products segment,
Net fixed assets Rs m 3,072 3,869 6,668 revenues grew by 26% YoY in FY08. The strong growth in the topline was reflected
Share capital Rs m 252 252 253 in the bottomline, which recorded a healthy 57% YoY growth. VAM (which the
"Free" reserves Rs m 3,868 4,542 5,833 company has demerged into a separate company in FY08) earned Rs 1.6 bn for the
full year. Thus the results are not comparable to the extent.
Net worth Rs m 4,128 4,803 6,169
Long term debt Rs m 265 614 3,047 Pidilite's growth is closely linked to the economic growth, particularly the housing
Total assets Rs m 6,438 8,728 14,713 sector. Considering the requirement of new dwelling units over a period of 25 years
Interest coverage x 82.6 23.1 12.0 (1996-97 to 2020-21) will be around 140 m units requiring an investment of
Debt to equity ratio x 0.1 0.1 0.5 approximately Rs. 20,000 bn, the domestic business seems to be on a firm footing.
Sales to assets ratio x 1.4 1.4 1.2 Along with its focus on the domestic markets, Pidilite is investing significantly in the
Return on assets % 20.3 21.8 20.8 international markets of Africa, Middle East, Indonesia, Malaysia and the US in view
Return on equity % 21.3 23.3 28.0 of the rich market potential of these regions. We believe that the company will
Return on capital % 30.0 28.2 24.8 continue to de-risk its portfolio through new product launches and international
Exports to sales % 7.0 7.7 8.4 forays. However, the movement of crude prices (as it impacts the company's cost of
Imports to sales % 14.9 16.4 14.3 sales) will be a determining factor for profitability.
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DIVERSIFIED

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 Regd off: Indian Rayon Compound, Junagadh - Veraval Rd, Veraval, Gujarat-66
ADITYA BIRLA NUVO LIMITED E-Mail: nuvocfd@adityabirla.com
Web site: www.adityabirlanuvo.co.in
Telephone: (022) 6652 5000 Fax: (022) 6652 5821
DIVERSIFIED BIRLA ADITYA Tr agent: In-house
Chairman: Kumar Mangalam Birla SEC: Devendra Bhandari AUD: Khimji Kunverji & Co
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1956 500303 ABNL:IN 10 1,192.3 -8.2 -12.3 76.5 17.1 0.5 115,302.5 19.2 INE069A01017
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 40.2% Exports (fob) Rs m 6,318
Foreign collaborators : 0.0% Imports (cif) Rs m 12,777 (Rs)
Indian inst/Mut Fund : 17.2% Fx inflow Rs m 6,345 2900
FIIs/GDR : 24.0% Fx outflow Rs m 13,071
Free float : 18.7% Net fx Rs m -6,726
Shareholders : 154,778
2250
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
1600
High Rs 777 1,494 2,502
Low Rs 389 510 998
Sales per share Rs 778.6 857.9 1,189.5
Earnings per share Rs 34.1 30.1 15.9 950
Cash flow per share Rs 71.6 75.4 71.1 DAILY
Dividends per share Rs 5.00 5.50 5.75 100 DMA
Dividend yield (eoy) % 0.9 0.5 0.3
300
Book value per share Rs 333.7 334.3 419.2
Shares outstanding (eoy) m 59.89 93.31 95.01 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - A,R PI
Price / Sales ratio x 0.7 1.2 1.5 No. of months 12 12 12
Avg P/E ratio x 17.1 33.3 110.3 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 8.1 13.3 24.6
Price / Book Value ratio x 1.7 3.0 4.2 From Operations Rs m 16,165 23,168 35,370
Dividend payout % 14.7 18.3 36.3 From Investments Rs m -21,622 -48,252 -52,941
Avg Mkt Cap Rs m 34,916 93,497 166,268 From Financial Activity Rs m 6,007 31,702 17,353
No. of employees `000 8 8 10 Net Cashflow Rs m 550 6,618 -219
Total wages/salary Rs m 4,345 12,628 19,954
Avg. sales/employee Rs Th 5,594.5 9,765.4 10,944.3 INTERIM RESULTS
Avg. wages/employee Rs Th 521.3 1,540.6 1,932.4 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 244.9 342.6 145.9 Net sales Rs m 30,005 36,616 38,044 32,283
Gross profit Rs m 3,020 2,851 2,521 2,860
INCOME DATA Gross profit margin % 10.1 7.8 6.6 8.9
Net Sales Rs m 46,630 80,047 113,011 Net profit Rs m 478 302 -218 -283
Other income Rs m 3,904 4,491 9,771 Net profit margin % 1.6 0.8 -0.6 -0.9
Total revenues Rs m 50,534 84,538 122,782
Gross profit Rs m 2,270 6,966 1,520 KEY DATA
Depreciation Rs m 2,250 4,228 5,249 Parameters Unit FY06 FY07 FY08
Interest Rs m 1,051 3,690 4,529 Garments & Textiles (revenues) % of sales 23.8 17.4 13.4
Profit before tax Rs m 2,873 3,539 1,513 Insurance (revenues) % of sales 29.0 24.7 33.1
Minority Interest Rs m 149 383 1,246 Telecom (revenues) % of sales 8.0 17.0 17.6
Prior Period Items Rs m 54 303 351
Extraordinary Inc (Exp) Rs m -40 5 7
Tax Rs m 995 1,422 1,610
NOTES
Profit after tax Rs m 2,041 2,808 1,507
Gross profit margin % 4.9 8.7 1.3 Aditya Birla Nuvo (ABN) is a diversified company from the Aditya Birla Group, and
Effective tax rate % 34.6 40.2 106.4 was formed in FY06 through a merger of Indo Gulf Fertilisers, Indian Rayon and Birla
Global Finance. The company is a leading player in the business segments of
Net profit margin % 4.4 3.5 1.3
viscose filament yarn, carbon black, branded garments, textiles and insulators. Over
BALANCE SHEET DATA the past few years, the company, through its subsidiaries, has made successful
forays into high growth sectors like life insurance, IT services and business process
Current assets Rs m 20,258 34,346 46,567 outsourcing.
Current liabilities Rs m 10,083 16,844 24,507
Net working cap to sales % 21.8 21.9 19.5 In FY08, the company reported a robust 45% YoY growth in topline on account of
Current ratio x 2.0 2.0 1.9 growth across its business segments. The operating margins of the company
Inventory Turnover Days 43 25 27 contracted by 4.5% YoY largely due to decline in profitability of the fertilizer and textile
Debtors Turnover Days 41 45 39 segments. The company also witnessed 46% YoY decline in net profits mainly on
Net fixed assets Rs m 21,576 37,776 54,478 account of poor show of the insurance business. If one excludes the same, company
Share capital Rs m 599 933 950 witnessed 25% YoY growth in net profits on the back of a whopping 108% YoY growth
"Free" reserves Rs m 18,631 29,527 34,257 in Idea Cellular's bottomline.
Net worth Rs m 19,983 31,196 39,829 Apart from the focus on old economy sectors like textiles and carbon black, ABN is
Long term debt Rs m 15,814 41,127 48,748 also putting into place strategies to penetrate deeper into the high-growth markets
Total assets Rs m 80,617 143,505 200,425 like telecom, BPO and insurance. The company is targeting a pan India presence to
Interest coverage x 3.7 2.0 1.3 accelerate growth, while growth in existing circles is targeted through widening of
Debt to equity ratio x 0.8 1.3 1.2 network. ABN is expanding capacities in various value business segments to
Sales to assets ratio x 0.6 0.6 0.6 capitalise upon the growing opportunities and is expanding distribution reach of
Return on assets % 8.6 9.0 6.8 financial services to regain market share. While surge in commodity prices,
Return on equity % 10.2 9.0 3.8 hardening of interest rates and appreciation of rupee that clouded exports remain
Return on capital % 11.4 11.0 8.6 challenging areas that ABN needs to tackle, the outlined initiatives are likely to go a
Exports to sales % 9.9 6.1 5.6 long way in establishing ABN as one of the successful diversified business
Imports to sales % 15.1 12.4 11.3 enterprises in the country.
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133
 Regd off: Dare House, Parrys Corner, Chennai - 600 001
E.I.D. - PARRY (INDIA) LIMITED E-Mail: investorservices@parry.murugappa.com
Web site: www.eidparry.com
Telephone: (044) 2530 6789 Fax: (044) 2534 1609
DIVERSIFIED MURUGAPPA Tr agent: Karvy Computer, 46, Avenue 4, St. No. 1, Banjara Hills, Hyderabad - 81
Chairman: A. Vellayan SEC: G. Jalaja AUD: Deloitte Haskins & Sells
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1975 500125 EID:IN 2 218.7 -7.1 54.1 18.6 9.4 0.2 19,519.0 2.5 INE126A01023
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 45.9% Exports (fob) Rs m 2,231
Foreign collaborators : 0.0% Imports (cif) Rs m 2 (Rs)
Indian inst/Mut Fund : 15.9% Fx inflow Rs m 2,232 344
FIIs/GDR : 17.2% Fx outflow Rs m 58
Free float : 20.9% Net fx Rs m 2,174 DAILY
Shareholders : 24,740
283 100 DMA
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
222
High Rs 291 369 222
Low Rs 93 115 112
Sales per share Rs 324.1 310.2 513.3
Earnings per share Rs 19.2 22.5 11.7 161
Cash flow per share Rs 26.7 31.1 23.3
Dividends per share Rs 4.50 5.90 0.50
Dividend yield (eoy) % 2.3 2.4 0.3
100
Book value per share Rs 80.1 104.3 119.7
Shares outstanding (eoy) m 89.25 89.25 89.25 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions FV2 - -
Price / Sales ratio x 0.6 0.8 0.3 No. of months 12 12 12
Avg P/E ratio x 10.0 10.8 14.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 7.2 7.8 7.2
Price / Book Value ratio x 2.4 2.3 1.4 From Operations Rs m 2,227 1,366 4,730
Dividend payout % 23.4 26.3 4.3 From Investments Rs m -2,848 189 -7,492
Avg Mkt Cap Rs m 17,136 21,599 14,905 From Financial Activity Rs m 861 1,488 350
No. of employees `000 1 2 2 Net Cashflow Rs m 240 3,043 -2,412
Total wages/salary Rs m 1,112 1,247 1,655
Avg. sales/employee Rs Th 20,898.8 16,304.5 27,851.7 INTERIM RESULTS
Avg. wages/employee Rs Th 803.5 734.4 1,006.1 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 1,239.2 1,180.8 636.5 Net sales Rs m 1,615 1,973 1,958 2,160
Gross profit Rs m -203 -334 212 149
INCOME DATA Gross profit margin % -12.6 -16.9 10.8 6.9
Net Sales Rs m 28,924 27,685 45,816 Net profit Rs m -58 -234 379 28
Other income Rs m 463 530 951 Net profit margin % -3.6 -11.9 19.4 1.3
Total revenues Rs m 29,387 28,215 46,767
Gross profit Rs m 3,044 2,849 3,993 KEY DATA
Depreciation Rs m 668 773 1,030 Parameters Unit FY06 FY07 FY08
Interest Rs m 389 480 1,019 Crushing capacity TCD 14,500 16,500 17,500
Profit before tax Rs m 2,450 2,126 2,895 Sugar produced m ton 0.3 0.4 0.4
Minority Interest Rs m -259 -352 -783 Sugar revenue % of sales 28.6 19.3 11.8
Prior Period Items Rs m 0 0 0 Farm inputs % of sales 65.6 73.6 81.0
Extraordinary Inc (Exp) Rs m 229 1,181 0 Sugar realisations Rs 17,123 17,551 12,422
Tax Rs m 705 950 1,065
NOTES
Profit after tax Rs m 1,715 2,005 1,047
Gross profit margin % 10.5 10.3 8.7 Established in the year 1788, EID Parry became a member of the Murugappa Group
Effective tax rate % 28.8 44.7 36.8 in the year 1981. It is engaged in the manufacturing of sugar and bio fertilizer. The
Group underwent a major restructuring in FY04 by demerging EID's farm input
Net profit margin % 5.9 7.2 2.3
division into its subsidiary Coromandal Fertilizers Limited (CFL). The company also
BALANCE SHEET DATA hived off its sanitaryware division (Parryware) to focus purely on the sugar business.
The company is amongst the largest producers of sugar in the country, with a
Current assets Rs m 14,422 18,046 22,504 crushing capacity of 17,500 TCD. It also has a distillery capacity of 135 KLPD and
Current liabilities Rs m 7,895 8,316 9,655 power capacity of 65 MW. Parry is one of the world's largest producers of neem-
Net working cap to sales % 22.6 35.1 28.0 based bio products
Current ratio x 1.8 2.2 2.3
Inventory Turnover Days 59 81 86 On a consolidated basis, the topline grew by 65% YoY for FY08. The profits were up
Debtors Turnover Days 33 34 17 27% YoY excluding the extraordinary item in FY07. While the sugar division grew by
Net fixed assets Rs m 8,094 9,448 14,370 10% YoY, bio products and power division performed strongly. On the standalone
Share capital Rs m 179 179 179 front, the performance was under pressure on account of the bitter scenario of the
"Free" reserves Rs m 5,314 7,481 7,541 sugar segment.
Net worth Rs m 7,152 9,307 10,685 It sold 47% shareholding in Parryware Roca Private Limited, a 50:50 joint venture
Long term debt Rs m 3,999 4,268 7,320 with Roca Sanitario S.A. (Roca), to Roca Bathroom Investments S.L. for Rs. 7.5 bn.
Total assets Rs m 24,608 29,889 40,886 It is also expanding its capacities across all its divisions. Further, it has also signed a
Interest coverage x 7.3 5.4 3.8 JV with Cargill to set up 1 MT pa sugar refinery in Andhra Pradesh. While the
Debt to equity ratio x 0.6 0.5 0.7 company's performance has improved in recent times due to relatively better sector
Sales to assets ratio x 1.2 0.9 1.1 scenario, the risks of government regulations and raw material costs remain.
Return on assets % 18.9 18.3 11.5
Return on equity % 24.0 21.5 9.8
Return on capital % 25.2 25.3 17.4
Exports to sales % 5.3 1.2 4.9
Imports to sales % 3.1 0.0 0.0
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134
 Regd off: Birlagram, Nagda - 456 331 Madhya Pradesh
GRASIM INDUSTRIES LIMITED + $ E-Mail: grasimshares@adityabirla.com
Web site: www.adityabirla.com / www.grasim.com
Telephone: (07366) 246 760 Fax: (07366) 244 114
DIVERSIFIED BIRLA ADITYA Tr agent: In-house
Chairman: Kumar Mangalam Birla SEC: Ashok Malu AUD: G. P. Kapadia & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1947 500300 GRASIM:IN 10 1,955.7 -3.1 -36.0 6.2 5.0 1.5 179,279.0 44.6 INE047A01013
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 25.2% Exports (fob) Rs m 3,778
Foreign collaborators : 0.0% Imports (cif) Rs m 13,950 (Rs)
Indian inst/Mut Fund : 21.0% Fx inflow Rs m 3,869 4200
FIIs/GDR : 33.7% Fx outflow Rs m 15,309
Free float : 20.2% Net fx Rs m -11,440
Shareholders : 170,589
3400
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
2600
High Rs 2,077 2,908 4,074
Low Rs 1,029 1,462 2,025
Sales per share Rs 1,115.3 1,537.6 1,851.6
Earnings per share Rs 113.5 214.6 315.4 1800
Cash flow per share Rs 174.9 281.2 388.5 DAILY
Dividends per share Rs 20.00 27.50 30.00 100 DMA
Dividend yield (eoy) % 1.3 1.3 1.0
1000
Book value per share Rs 523.1 715.9 997.5
Shares outstanding (eoy) m 91.67 91.67 91.67 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 1.4 1.4 1.6 No. of months 12 12 12
Avg P/E ratio x 13.7 10.2 9.7 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 8.9 7.8 7.8
Price / Book Value ratio x 3.0 3.1 3.1 From Operations Rs m 19,900 29,638 36,972
Dividend payout % 17.6 12.8 9.5 From Investments Rs m -12,976 -35,019 -42,316
Avg Mkt Cap Rs m 142,364 200,299 279,548 From Financial Activity Rs m -6,185 6,699 4,715
No. of employees `000 15 15 13 Net Cashflow Rs m 739 1,318 -629
Total wages/salary Rs m 5,429 6,722 8,493
Avg. sales/employee Rs Th 6,745.8 9,382.4 12,859.1 INTERIM RESULTS
Avg. wages/employee Rs Th 358.2 447.4 643.4 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 686.6 1,309.6 2,190.5 Net sales Rs m 25,192 26,299 47,147 44,295
Gross profit Rs m 8,050 8,213 13,722 11,436
INCOME DATA Gross profit margin % 32.0 31.2 29.1 25.8
Net Sales Rs m 102,240 140,952 169,740 Net profit Rs m 4,998 5,148 8,807 6,716
Other income Rs m 2,054 3,159 4,623 Net profit margin % 19.8 19.6 18.7 15.2
Total revenues Rs m 104,294 144,111 174,363
Gross profit Rs m 20,686 39,719 50,072 KEY DATA
Depreciation Rs m 5,631 6,100 6,703 Parameters Unit FY06 FY07 FY08
Interest Rs m 2,183 2,286 2,221 Cement Capacity (standalone) MTPA 13.6 13.6 16.8
Profit before tax Rs m 14,926 34,492 45,771 Cement (revenues) % of sales 53.6 57.3 57.5
Minority Interest Rs m -1,160 -3,915 -4,565 VSF (revenues) % of sales 28.0 27.1 29.2
Prior Period Items Rs m 0 0 0 Others (revenues) % of sales 18.4 15.6 13.3
Extraordinary Inc (Exp) Rs m 667 19 2,367 Market Share (cement capacity) % 8.5 8.2 9.0
Tax Rs m 4,027 10,922 14,658
NOTES
Profit after tax Rs m 10,406 19,674 28,915
Gross profit margin % 20.2 28.2 29.5 Grasim Industries, an Aditya Birla Group company, is one of the largest diversified
Effective tax rate % 27.0 31.7 32.0 commodity companies in the country with a near monopolistic status in the viscose
staple fibre (VSF) segment (29% of FY08 turnover). It is the seventh largest producer
Net profit margin % 10.2 14.0 17.0
of cement in Asia with a total capacity of nearly 35 m tonnes (Grasim-Ultratech). The
BALANCE SHEET DATA VSF and the cement segments together contribute 87% to the total revenues. In a
move to concentrate on its core businesses viz. VSF and Cement, Grasim has hived
Current assets Rs m 26,185 33,011 42,585 off the weak links i.e. textile and sponge iron businesses, while continuing to operate
Current liabilities Rs m 19,663 24,429 36,783 the chemical business. Grasim directly and indirectly holds nearly 54% stake in
Net working cap to sales % 6.4 6.1 3.4 Ultratech Cement.
Current ratio x 1.3 1.4 1.2
Inventory Turnover Days 42 35 38 On a standalone basis, the 19% YoY growth in the topline in FY08 was supported by
Debtors Turnover Days 21 21 22 growth across its offerings. The 29% YoY growth in operating profits was supported
Net fixed assets Rs m 63,901 84,724 129,223 by steady margins of the cement business and impressive numbers reported by the
Share capital Rs m 917 917 917 chemical and the sponge iron business. The VSF business, which is Grasim's cash
"Free" reserves Rs m 45,373 63,004 89,781 cow, displayed a poor show on account of cost concerns and deceleration in demand.
The robust 45% YoY growth in net profits came in on account of 50% YoY growth in
Net worth Rs m 47,948 65,623 91,438
other income and lower finance charges.
Long term debt Rs m 21,755 37,672 43,863
Total assets Rs m 121,334 158,896 208,327 Grasim has outlined huge capex plans to the tune of Rs 39 bn over the next two years
Interest coverage x 7.8 16.1 21.6 towards building up capacity (VSF and cement) and rationalisation of costs by
Debt to equity ratio x 0.5 0.6 0.5 improving operational efficiency. Considering the fact that the company is the only
Sales to assets ratio x 0.8 0.9 0.8 player in VSF business domestically and the outlook of VSF and the cement sector
Return on assets % 18.1 21.3 23.0 from a long-term point of view remains positive, we believe that these two divisions
Return on equity % 21.7 30.0 31.6 will continue to be the growth drivers for the company. However, in the near to
Return on capital % 23.8 31.8 33.8 medium term, softening of prices of the both the commodities would arrest the overall
Exports to sales % 1.9 1.9 2.2 growth of the company.
Imports to sales % 6.5 6.3 8.2
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135
 Regd off: Virginia House, 37, Jawaharlal Nehru Road, Kolkata - 700 071
ITC LIMITED + $ E-Mail: isc@itc.in
Web site: www.itcportal.com
Telephone: (033) 2288 6426 Fax: (033) 2288 2358
DIVERSIFIED ITC Tr agent: In-house
Chairman: Yogesh Chander Deveshwar SEC: Biswa Behari Chatterjee AUD: A. F. Ferguson & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1910 500875 ITC:IN 1 189.6 -0.3 10.8 22.6 19.7 1.8 714,528.5 243.7 INE154A01025
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 15,746
Foreign collaborators : 0.0% Imports (cif) Rs m 10,511 (Rs)
Indian inst/Mut Fund : 38.2% Fx inflow Rs m 21,684 240
FIIs/GDR : 14.2% Fx outflow Rs m 15,476
Free float : 47.6% Net fx Rs m 6,208
Shareholders : 376,665
205
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
170
High Rs 205 213 239
Low Rs 88 140 145
Sales per share Rs 27.5 33.7 38.9
Earnings per share Rs 6.1 7.3 8.4 135
DAILY
Cash flow per share Rs 7.1 8.4 9.6
Dividends per share Rs 2.65 3.10 3.50 100 DMA
Dividend yield (eoy) % 1.8 1.8 1.8
100
Book value per share Rs 24.6 28.3 32.6
Shares outstanding (eoy) m 3,755.18 3,762.22 3,768.61 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions FV1,B1:2 ESOS ESOS
Price / Sales ratio x 5.3 5.2 4.9 No. of months 12 12 12
Avg P/E ratio x 24.0 24.1 22.9 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 20.7 21.1 19.9
Price / Book Value ratio x 6.0 6.2 5.9 From Operations Rs m 20,966 22,476 30,067
Dividend payout % 43.4 42.3 41.8 From Investments Rs m -2,828 -10,842 -19,681
Avg Mkt Cap Rs m 550,134 664,032 723,573 From Financial Activity Rs m -9,638 -10,549 -13,492
No. of employees `000 20 21 22 Net Cashflow Rs m 8,501 1,086 -3,107
Total wages/salary Rs m 7,206 8,589 10,669
Avg. sales/employee Rs Th 5,158.8 6,032.8 6,663.2 INTERIM RESULTS
Avg. wages/employee Rs Th 360.3 409.0 485.0 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 1,147.7 1,312.0 1,435.3 Net sales Rs m 32,734 34,580 39,344 38,997
Gross profit Rs m 10,319 11,997 10,447 11,271
INCOME DATA Gross profit margin % 31.5 34.7 26.6 28.9
Net Sales Rs m 103,175 126,688 146,591 Net profit Rs m 7,708 8,308 7,357 7,487
Other income Rs m 3,245 3,663 5,991 Net profit margin % 23.5 24.0 18.7 19.2
Total revenues Rs m 106,420 130,351 152,582
Gross profit Rs m 34,351 40,928 45,760 KEY DATA
Depreciation Rs m 3,595 3,938 4,729 Parameters Unit FY06 FY07 FY08
Interest Rs m 173 96 192 Cigaretes % of sales 64.0 60.2 58.4
Profit before tax Rs m 33,828 40,557 46,830 Agri business % of sales 15.1 17.3 16.3
Minority Interest Rs m -185 -257 -283 Paper % of sales 10.7 9.9 10
Prior Period Items Rs m 387 363 307 Advertising % of sales 2.5 2.6 3.1
Extraordinary Inc (Exp) Rs m -450 0 0 Gross margins % 53.8 51.4 51.6
Tax Rs m 10,626 13,110 15,277
NOTES
Profit after tax Rs m 22,954 27,553 31,577
Gross profit margin % 33.3 32.3 31.2 ITC commands about 80% of India's Rs 230 bn domestic cigarette market. Out of the
Effective tax rate % 31.4 32.3 32.6 top 10 brands in India, 6 belong to ITC. The growing awareness on harmful effects of
tobacco as well as the government's punitive tax policy forced the company to de-risk
Net profit margin % 22.2 21.7 21.5
its revenue profile. It merged the paperboards subsidiary and invested in growing the
BALANCE SHEET DATA hospitality, retailing, packaged foods and IT businesses. In packaged foods, its
product range includes ready to eat (Kitchens of India), staples, confectionery and
Current assets Rs m 56,555 69,346 73,340 biscuits. ITC has also entered into garment retailing and has 42 Wills Lifestyle stores.
Current liabilities Rs m 36,401 39,906 45,921 Other initiatives include greeting cards, safety matches, incense sticks businesses
Net working cap to sales % 19.5 23.2 18.7 and personal care products.
Current ratio x 1.6 1.7 1.6
Inventory Turnover Days 110 113 106 ITC reported a topline growth of 15% YoY in FY08 driven by the non-cigarette FMCG
Debtors Turnover Days 22 21 22 businesses and paper-business. While the tobacco segment continued to contribute
Net fixed assets Rs m 47,612 59,760 78,193 41% to the revenues in FY08, its share has come down from 64% in FY06. The non-
Share capital Rs m 3,755 3,762 3,769 cigarette portfolio grew by 491% YoY during the year. On the profitability side,
"Free" reserves Rs m 81,936 96,135 113,078 margins were lower as the company invested heavily towards capacity augmentation
and new product launches. The bottomline grew by 16% YoY.
Net worth Rs m 92,208 106,461 122,874
Long term debt Rs m 934 1,226 1,208 The company launched new ranges of snack foods (Bingo) and personal care
Total assets Rs m 134,148 154,164 177,612 products (Vivel, Superia and Fiama di Wills) during the year. While Bingo is doing
Interest coverage x 196.5 423.5 244.9 well, the personal care segment will take some more time to break even. The
Debt to equity ratio x 0.0 0.0 0.0 company recently took hike on its cigarette products to offset the high taxes. It will be
Sales to assets ratio x 0.8 0.8 0.8 investing Rs 200 bn in different businesses over the next five years.
Return on assets % 24.8 25.7 25.6
Return on equity % 24.9 25.9 25.7
Return on capital % 36.2 37.8 37.9
Exports to sales % 12.8 13.6 10.7
Imports to sales % 5.9 8.8 7.2
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136
 Regd off: Near Seven Garnala, Kalol (N.G.) Gujarat - 382 721
SINTEX INDUSTRIES LIMITED E-Mail: lmrathod@sintex.co.in
Web site: www.sintex.in
Telephone: (02764) 253 000 Fax: (02764) 253 100
DIVERSIFIED MISCELLANEOUS Tr agent: Pinnacle Shares, Nr. Ashoka Mills, Naroda Road, Ahmedabad - 380 025
Chairman: Dinesh B. Patel SEC: L. M. Rathod AUD: Deloitte Haskins & Sells
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1995 502742 BVML:IN 2 318.4 -12.9 -0.5 19.2 14.4 0.3 44,308.9 16.3 INE429C01027
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 29.2% Exports (fob) Rs m 400
Foreign collaborators : 0.0% Imports (cif) Rs m 544 (Rs)
Indian inst/Mut Fund : 16.3% Fx inflow Rs m 400 620
FIIs/GDR : 41.6% Fx outflow Rs m 579
Free float : 13.0% Net fx Rs m -179
Shareholders : 28,134
480
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
340
High Rs 258 263 615
Low Rs 85 125 194
Sales per share Rs 86.5 104.1 166.6
Earnings per share Rs 9.3 11.9 16.9 200
Cash flow per share Rs 12.5 15.6 22.5 DAILY
Dividends per share Rs 0.88 0.96 1.00 100 DMA
Dividend yield (eoy) % 0.5 0.5 0.2
60
Book value per share Rs 45.8 58.1 112.7
Shares outstanding (eoy) m 98.67 111.94 136.50 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions FV2,WC WC,BC WC,BC
Price / Sales ratio x 2.0 1.9 2.4 No. of months 12 12 12
Avg P/E ratio x 18.4 16.3 24.0 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 13.7 12.4 18.0
Price / Book Value ratio x 3.7 3.3 3.6 From Operations Rs m 1,812 1,404 586
Dividend payout % 9.4 8.1 5.9 From Investments Rs m -1,252 -2,297 -9,711
Avg Mkt Cap Rs m 16,922 21,716 55,214 From Financial Activity Rs m 2,201 1,539 20,482
No. of employees `000 2 3 3 Net Cashflow Rs m 2,761 647 11,357
Total wages/salary Rs m 374 497 2,091
Avg. sales/employee Rs Th 3,501.8 4,220.6 6,752.7 INTERIM RESULTS
Avg. wages/employee Rs Th 153.5 180.0 620.8 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 377.5 481.3 683.5 Net sales Rs m 3,894 6,129 9,285 7,148
Gross profit Rs m 777 1,013 1,445 782
INCOME DATA Gross profit margin % 20.0 16.5 15.6 10.9
Net Sales Rs m 8,534 11,653 22,743 Net profit Rs m 442 585 945 564
Other income Rs m 298 269 601 Net profit margin % 11.4 9.5 10.2 7.9
Total revenues Rs m 8,832 11,922 23,344
Gross profit Rs m 1,447 2,227 3,826 KEY DATA
Depreciation Rs m 311 420 765 Parameters Unit FY06 FY07 FY08
Interest Rs m 291 415 643 Textile sales % of sales 28.2 26.7 14.9
Profit before tax Rs m 1,143 1,661 3,019 Textile EBIT margins % 15.7 20.6 19.2
Minority Interest Rs m 0 -7 -19 Plastics sales % of sales 68.7 71.4 83.5
Prior Period Items Rs m 0 1 0 Plastics EBIT margins % 13 15.2 14.4
Extraordinary Inc (Exp) Rs m 0 0 0 Raw material costs % of sales 59.8 62.6 58.1
Tax Rs m 223 326 698
NOTES
Profit after tax Rs m 920 1,329 2,302
Gross profit margin % 17.0 19.1 16.8 Sintex is a dominant player in the plastic and textile business segments. The
Effective tax rate % 19.5 19.6 23.1 company manufactures a range of plastic products, including water storage tanks,
pre-fabricated structures and industrial custom molding. It is also a leading player in
Net profit margin % 10.8 11.4 10.1
the monolithic construction space. In the textile business, the company is focused on
BALANCE SHEET DATA niche offerings, possessing specialisation in men's structured shirting in the premium
fashion category wherein it enjoys leadership position in India. During the period
Current assets Rs m 6,293 8,411 26,287 between FY03 and FY08, Sintex grew its topline and bottomline at compounded
Current liabilities Rs m 1,797 3,031 10,046 annual rates of 39% and 57% respectively.
Net working cap to sales % 52.7 46.2 71.4
Current ratio x 3.5 2.8 2.6 During FY08, the company reported consolidated sales growth of 95% YoY. Sintex's
Inventory Turnover Days 37 47 48 plastics business (85% of total sales) was the chief contributor to the company's
Debtors Turnover Days 64 73 127 strong topline performance during the fiscal. This segment reported sales growth of
Net fixed assets Rs m 4,897 6,812 14,577 129% YoY However, it is important to note that Sintex acquired four companies in this
Share capital Rs m 197 222 271 division during the fiscal, which make the numbers skewed. Despite the strong
"Free" reserves Rs m 4,271 6,287 14,487 growth in sales, Sintex recorded a 2.3% YoY contraction in its operating margins
during FY08. This was owing to higher staff costs as also on account of stock related
Net worth Rs m 4,515 6,509 15,380
adjustments. Importantly, the company's raw material costs declined from 62.6% of
Long term debt Rs m 4,785 6,331 18,368
sales in FY07 to 56.9% in FY08, thus paring the pressure on margins.
Total assets Rs m 12,758 17,194 45,961
Interest coverage x 4.9 5.0 5.7 Sintex is a play on India's housing and infrastructure sector in the long-term.
Debt to equity ratio x 1.1 1.0 1.2 Especially through its prefab business, which caters to the need of focused sectors
Sales to assets ratio x 0.7 0.7 0.5 of the government, like education and affordable housing for the common man, the
Return on assets % 13.0 13.6 8.7 company is expected to grow consistently into the future. As for its textiles business,
Return on equity % 20.4 20.4 15.0 the fact that Sintex has differentiated itself from others by eyeing the non-
Return on capital % 15.4 16.1 10.8 commoditised textiles space stands the company in good stead.
Exports to sales % 3.5 3.1 1.8
Imports to sales % 6.6 1.5 2.4
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137
 ENERGY SOURCES
There are two stages in the energy value chain, upstream
(exploration and production) and downstream (refining and
marketing). After extracting crude oil from the reserves, it is
processed to yield various petroleum products, which are then
marketed.
ONGC and Oil India dominate the upstream segment contributing
85% to India's total oil production. In the downstream segment,
major players include IOC, HPCL, BPCL and Reliance.
Independent refineries have now become subsidiaries of these
bigger players. There are a total of 19 refineries in the country
comprising 17 in the public sector and 2 in the private sector
with a combined refining capacity of 149 MMTPA (as per the
monthly statistics in March 08). IOC dominates the refining
capacity with a total share of nearly 32% of the current refining
capacity.
Refining sector got deregulated in FY99 whereas marketing
sector deregulation began to take shape on 1st April 2003,
although it largely remained so on paper. Political intervention
persists in the pricing of sensitive petroleum products. Inspite
of price being regulated, domestic retail fuel market is becoming
increasingly competitive.
ONGC is the major producer of natural gas accounting for
76% of domestic production. GAIL is the monopoly player in
the transmission and distribution of natural gas, accounting
for about 79% of the supplies. However, the country still
witnesses shortage in supply of natural gas. Inspite of huge
discoveries made by RIL in KG basin, the demand growth will
outperform the supply growth for some time to come.
FY08
Spurt in crude prices were due to a combination of geopolitical
events and unplanned outages of some of the oil production
fields. The prices continued to hover at historically high levels
with Brent, WTI and Dubai crude prices averaging at US$ 82.8,
US$ 81.6 and $ US 76.5 per barrel for FY08. This reflected an
increase of 29%, 26% and 25% respectively over the
corresponding levels of FY07.
Demand for petroleum products in India grew by 6.0% from
111.7 m tonnes to 118.8 m tonnes. Transportation fuels grew
faster at over 10.0%. The consumption of diesel, which
accounts for more than a third of the total consumption, grew
at 11.1%. Growth in petrol was at 11.2% and that of jet fuel
was at 14.1%. Demand for liqueified petroleum gas was up by
7.5%, while sales of naphtha and kerosene declined by 14.8%
and 0.6% respectively.
OPEC's reluctance to increase global oil supply and tightening
of product specifications added pressure to an already
stretched refining system. Rising costs and project delays
continued to hamper growth in new refinery capacity
additions. Complex refiners continued to gain due to wide light-
heavy differentials and higher light product margins. Aggregate
Indian refining capacity remained unchanged at 149 m tonnes.
CURRENT SCENARIO AND PROSPECTS
In order to secure the energy security of the country,
government has laid increased thrust on exploration and buying
oil equity outside the country. There have been some significant
discoveries in oil and gas space, with discovery of oil in
Rajasthan by Cairn and discovery of gas by Reliance in KG
basin. ONGC Videsh, the overseas investment arm of ONGC
has also bought stake in oil blocks in as many as 18 countries.
Thus, post 2009 we can see enhanced production of oil and
gas in the country. Coal Bed methane is expected to
commercialize within next couple of years, thus paving the
138
way for alternative sources of energy in the country. The
unmet demand for natural gas in India is estimated to increase
from about 113 m standard cubic meters per day (mmscmd) in
FY08 to 396 mscmd by the year 2022. Demand for petrol,
diesel and jet fuel are expected to grow at a compounded
annual rate of 1.7%, 2.5% and 2.2% respectively till 2010. The
medium term outlook for refining margins looks positive, due to
robust growth in demand, stretched utilisation levels and
lagging new capacity buildup. Refining capacity bottlenecks
are also unlikely to reduce prior to 2012 on account of project
delays. In petrochemicals, substantial investments have been
made in new capacities in emerging economies like China,
India and the Middle East, which is expected to emerge as a
production hub due to availability of cheap feedstock.
KEY POINTS
Supply - In the upstream segment, supply from the domestic
market caters to 30% of the total demand for crude oil in the
country. The remaining supply of the crude is largely met
through import. In the downstream segment, refining has
seen significant capacity additions in the recent past. Lack
of logistics support can hamper large-scale export potential
of products.
Demand - In the past, we have seen a fair degree of
correlation between the growth in petroleum products and
the growth in the overall economic activities. Thus demand
will be in line with economic growth.
Barriers to entry- In the upstream segment, government
permission is required to commence operation. Finding,
exploration, development and production cost of oil fields are
significant, thus barriers are higher. The new players wanting
to enter the retail segment need to pump in a minimum of Rs
20 bn in the sector as eligibility criteria.
Bargaining power of suppliers - High, since crude
availability of country is only about 30% of the requirement.
OPEC, a group of major oil producing countries, has a great
bargaining power. For the petroleum products on the other
hand, given the surplus capacity in the country and the
commodity nature of the product, the bargaining power is
low.
Bargaining power of customers - In the upstream
segment, government allocates the crude oil produced by the
players. Thus, in an indirect way acts as a bargaining arm
for OMCs. In the downstream segment, the standalone
refineries have to share the subsidy burden. On the retail
front, government acts as a strong bargaining arm of
customers, with OMCs having to sell the sensitive petroleum
products at losses. In the industrial and consumer segment,
the competition is moderate and is expected to intensify with
the increase in the refining capacity of the country.
Competition - Upstream segment has been made
c o m p e t i t i v e w i t h i n t r o d u c t i o n o f N E L P, h o w e v e r t h e
dominance of ONGC in the segment will continue for some
time to come. In the downstream segment, increased action
is expected in product pipelines and city gas distribution.
 ENERGY SOURCES
GLOBAL COMPARISON
FY08/CY07 Unit GAIL PLL Ggas BG Group Exxon Chevron
Revenues US$ m 4,698 1,635 310 16,294 404,552 220,904
EBITDA US$ m 1,039 229 67 7,678 83,124 41,148
EBITDA margin % 22.1 14.0 21.5 47.1 20.5 18.6
Net profit US$ m 694 118 38 3,595 40,610 18,688
Net profit margin % 14.8 7.2 12.3 22.1 10.0 8.5
Return on assets % 11.5 13.2 15.7 12.8 17.0 13.3
Return on equity % 21.6 29.3 26.8 25.5 36.2 25.6
Price to earnings (TTM) x 13.1 9.7 11.3 14.9 9.1 8
Price to book value x 2.6 2.8 3.0 4.0 3.2 2.0
Price to sales x 1.9 0.7 1.4 3.4 0.9 0.6

BG GROUP (UK)

BG Group is a natural gas company based in the United Kingdom. The operating segments of the company are
Exploration and Production (E&P), Liquefied Natural Gas (LNG), Transmission and Distribution (T&D) and Power
Generation (Power). In E&P, UK accounted for around 27% of BG Group's production in 2006. Production increased
to 220.3 million barrels of oil equivalents (mmboe) in 2007, a marginal increase of 0.5 % over the previous year. The
main contributor to this increase was the Buzzard oil field in the UK. Proved reserves stood at 2, 039 mmboe (2,149
mmboe in 2006). In LNG, total volumes managed were 13 mt (up 31%) and were delivered to 9 countries. These
supply volumes are long-term, as contracts range between 15 to 20 years in tenure. In T&D, BG Group has focused
on the high-growth markets of Brazil and India. Volume throughput was 9.3 billion cubic meters in 2007. In Power,
BG Group had 4.3 Giga Watt of capacity in 2007. It operates in USA, UK, Brazil, Italy, Malaysia, and Philippines.

EXXON MOBIL (US)

Exxon Mobil Corporation is engaged in the exploration, production, and sale of crude oil and natural gas and
manufacture, transportation, and sale of petroleum products. The company also manufactures and markets basic
petrochemicals and various specialty products. In addition, Exxon Mobil has interests in electric power generation
facilities. It sells about 11 billion cubic feet per day of natural gas to customers in a variety of sectors including
power companies and industrial users. It is the largest global refining company with 38 refinery interests and also
the world's largest manufacturer of lube base stocks with a capacity of 142,000 barrels per day. Its retail business
includes over 32 thousand service stations. Moreover, its three business-to-business segments - Industrial and
Wholesale, Aviation, and Marine - sell fuels to over 1 million customers at locations around the world, including
nearly 630 airports and over 180 marine ports. Exxon Mobil is based in Irving, Texas.

CHEVRON CORPORATION (US)

Chevron Corporation is a leading global energy player with interest spanning the entire energy value chain. In
upstream segment, it undertakes exploration, development and production of crude oil and natural gas. The company
conducts business in more than 100 countries. In 2007, Chevron produced 2.62 m barrels of oil-equivalent per day.
It processes more than 2 million barrels of crude oil per day. Its main refineries are in Singapore, Thailand, South
Korea, and Richmond and El Segundo, California covering the Pacific basin and the refineries in Pascagoula,
Mississippi, and the Pembroke, United Kingdom, covering the Atlantic region. The company markets petroleum
products under the Chevron, Texaco and Caltex brands and has 25,000 retail outlets in Asia, Africa, Europe, Latin
America, the Middle East and North America. The company has invested in 15 power-generating facilities in the US
and Asia. It had a net pipeline length of 22,652 km worldwide as of 2007.

Source: Yahoo Finance, Company reports TTM - Trailing twelve months

139
 Regd off: Technopolis Park, Mahakali Caves Road, Andheri (E), Mumbai - 400 093
CASTROL INDIA LIMITED E-Mail: NA
Web site: www.castrol.co.in
Telephone: (022) 6698 4100 Fax: (022) 6698 4101
ENERGY SOURCES MNC Tr agent: TSR Darashaw, H. Moosa Patrawala Ind. Est., E.Moses Rd., Mumbai - 11
Chairman: S. M. Datta SEC: A. H. Mody AUD: S. R. Batliboi & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1979 500870 CSTRL:IN 10 342.2 11.1 28.4 19.4 17.7 4.1 42,309.6 40.0 INE172A01019
SHAREHOLDING FX Transaction (CY07) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 16
Foreign collaborators : 71.0% Imports (cif) Rs m 3,405 (Rs)
Indian inst/Mut Fund : 10.4% Fx inflow Rs m 191 400
FIIs/GDR : 2.3% Fx outflow Rs m 4,728
Free float : 16.2% Net fx Rs m -4,537
Shareholders : 54,726
330
No. of months 12 12 12
Year ending 31/12/05 31/12/06 31/12/07
EQUITY SHARE DATA
260
High Rs 268 273 361
Low Rs 186 155 210
Sales per share Rs 115.7 141.7 152.7
Earnings per share Rs 11.9 12.5 17.7 190
Cash flow per share Rs 13.4 14.0 19.4
DAILY
Dividends per share Rs 8.25 9.00 14.00 100 DMA
Dividend yield (eoy) % 3.6 4.2 4.9
120
Book value per share Rs 31.6 33.8 34.8
Shares outstanding (eoy) m 123.64 123.64 123.64 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 2.0 1.5 1.9 No. of months 12 12 12
Avg P/E ratio x 19.1 17.1 16.1 Year ending 31/12/05 31/12/06 31/12/07
CASH FLOW
P/CF ratio (eoy) x 16.9 15.3 14.7
Price / Book Value ratio x 7.2 6.3 8.2 From Operations Rs m 1,109 938 3,568
Dividend payout % 69.5 72.0 79.2 From Investments Rs m 195 760 131
Avg Mkt Cap Rs m 28,063 26,481 35,281 From Financial Activity Rs m -1,202 -1,204 -1,413
No. of employees `000 1 1 1 Net Cashflow Rs m 102 494 2,287
Total wages/salary Rs m 673 700 904
Avg. sales/employee Rs Th 15,265.7 19,868.5 20,682.4 INTERIM RESULTS
Avg. wages/employee Rs Th 718.2 793.7 990.1 3QCY07 4QCY07 1QCY08 2QCY08
Avg. net profit/employee Rs Th 1,566.7 1,752.8 2,393.2 Net sales Rs m 4,311 4,750 4,929 6,214
Gross profit Rs m 830 819 1,134 1,265
INCOME DATA Gross profit margin % 19.3 17.2 23.0 20.4
Net Sales Rs m 14,304 17,524 18,883 Net profit Rs m 543 568 728 828
Other income Rs m 201 187 348 Net profit margin % 12.6 12.0 14.8 13.3
Total revenues Rs m 14,505 17,711 19,231
Gross profit Rs m 2,116 2,200 3,296 KEY DATA
Depreciation Rs m 189 180 208 Parameters Unit CY05 CY06 CY07
Interest Rs m 30 41 38 Installed capacity - Lubes MMTPA 147 147 188
Profit before tax Rs m 2,098 2,166 3,398 Production - Lubes MMTPA 230 223 221
Minority Interest Rs m 0 0 0 Capacity utilisation % 156.8 151.7 117.3
Prior Period Items Rs m 39 54 5 Raw material cost % of sales 59.3 66.4 58.1
Extraordinary Inc (Exp) Rs m 8 157 1
Tax Rs m 677 831 1,219
NOTES
Profit after tax Rs m 1,468 1,546 2,185
Gross profit margin % 14.8 12.6 17.5 Castrol India Limited is the largest private sector player in the Indian lubricant industry
Effective tax rate % 32.3 38.4 35.9 with a market share of around 21%. It is a subsidiary of Castrol Limited UK, part of
the BP Group. The company's business consists of three segments, automotive,
Net profit margin % 10.3 8.8 11.6
industrial and marine & energy lubricants. It is the market leader in the retail
BALANCE SHEET DATA automotive lubricant segment. It markets its automotive lubricants under two brands
- Castrol and BP.
Current assets Rs m 4,820 6,163 7,725
Current liabilities Rs m 3,238 3,619 5,116 In CY07, the company registered a topline growth of 8% on the back of higher
Net working cap to sales % 11.1 14.5 13.8 realisations. The core lubricant business is driven more by value than volume, as the
Current ratio x 1.5 1.7 1.5 company's focus has centered on advanced formulations required for modern
Inventory Turnover Days 55 53 43 automobiles and machines. While these machines use lower quantum of lubes, they
Debtors Turnover Days 39 39 29 require higher specification lubricants that are premium in nature. Raw materials
Net fixed assets Rs m 1,383 1,297 1,333 costs declined by nearly 8% in CY07, as a % of sales. This reduction was achieved
Share capital Rs m 1,236 1,236 1,236 primarily through an effective procurement strategy. Bottomline grew by 41% as
"Free" reserves Rs m 2,528 2,804 2,929 topline growth was driven by better realisations, while savings in raw material costs
more than offset the rise in staff and advertising costs.
Net worth Rs m 3,901 4,177 4,302
Long term debt Rs m 28 28 28 Higher drain life (usage period) and improved technology has led to lower
Total assets Rs m 7,285 7,885 9,264 consumption of lubricants. With battle for market share intensifying, margins are
Interest coverage x 70.9 53.8 90.4 expected to be under pressure across the industry leading to commoditisation of the
Debt to equity ratio x 0.0 0.0 0.0 sector. As a result, significantly higher advertising expenditure for the company is
Sales to assets ratio x 2.0 2.2 2.0 expected in the future. Moreover, Castrol largely fulfills its raw material requirements
Return on assets % 38.1 37.7 51.3 through imports. Hence the depreciating rupee has a negative impact on its
Return on equity % 37.6 37.0 50.8 bottomline. Castrol BikeZone - Castrol's foray into the automotive servicing space,
Return on capital % 55.4 57.5 79.5 was rolled out nationally in mid 2006. By the end of 2007, Castrol had 96 BikeZones
Exports to sales % 0.1 0.1 0.1 spread across 18 cities in the country.
Imports to sales % 24.8 23.8 18.0
GET MORE INFO AT WWW.EQUITYMASTER.COM

140
 Regd off: 16, Bhikaiji Cama Place, R. K. Puram, New Delhi - 110 066
GAIL (INDIA) LIMITED $ E-Mail: investorqueries@gail.co.in
Web site: www.gailonline.com
Telephone: (011) 2618 2955 Fax: (011) 2618 5941
ENERGY SOURCES GOVERNMENT Tr agent: MCS, Sri Venkatesh Bhawan, W-40, Okhla Indl. Area, New Delhi - 20
Chairman: Dr. U. D. Choubey SEC: N. K. Nagpal AUD: Mehra & Goel & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1984 532155 GAIL:IN 10 416.3 3.9 33.0 12.6 10.3 2.4 352,001.8 222.2 INE129A01019
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 57.3% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 1,096 (Rs)
Indian inst/Mut Fund : 21.7% Fx inflow Rs m 69 560
FIIs/GDR : 17.7% Fx outflow Rs m 8,122
Free float : 3.3% Net fx Rs m -8,053
Shareholders : 205,903
470
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
380
High Rs 325 325 555
Low Rs 199 210 257
Sales per share Rs 175.9 195.6 222.8
Earnings per share Rs 28.8 30.1 32.9 290
Cash flow per share Rs 35.9 37.1 40.4 DAILY
Dividends per share Rs 10.00 10.00 10.00 100 DMA
Dividend yield (eoy) % 3.8 3.7 2.5
200
Book value per share Rs 121.4 139.8 160.3
Shares outstanding (eoy) m 845.65 845.65 845.65 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 1.5 1.4 1.8 No. of months 12 12 12
Avg P/E ratio x 9.1 8.9 12.3 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 7.3 7.2 10.0
Price / Book Value ratio x 2.2 1.9 2.5 From Operations Rs m 33,965 17,430 37,815
Dividend payout % 34.7 33.2 30.4 From Investments Rs m -9,464 -39,721 -12,386
Avg Mkt Cap Rs m 221,560 226,211 343,334 From Financial Activity Rs m -14,015 4,468 5,955
No. of employees `000 3 3 4 Net Cashflow Rs m 10,486 -17,823 19,474
Total wages/salary Rs m 2,258 3,225 5,073
Avg. sales/employee Rs Th 43,214.6 47,617.4 53,092.7 INTERIM RESULTS
Avg. wages/employee Rs Th 655.8 928.3 1,429.8 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 7,083.9 7,327.0 7,843.6 Net sales Rs m 45,289 42,983 49,353 57,307
Gross profit Rs m 8,784 8,723 11,599 13,994
INCOME DATA Gross profit margin % 19.4 20.3 23.5 24.4
Net Sales Rs m 148,788 165,423 188,373 Net profit Rs m 5,726 6,213 7,224 8,968
Other income Rs m 4,631 5,596 5,759 Net profit margin % 12.6 14.5 14.6 15.6
Total revenues Rs m 153,419 171,019 194,132
Gross profit Rs m 38,174 32,359 43,083 KEY DATA
Depreciation Rs m 6,002 5,944 6,340 Parameters Unit FY06 FY07 FY08
Interest Rs m 1,327 1,201 1,479 Natural gas transmitted MMSCMD 79 77 82
Profit before tax Rs m 35,476 30,810 41,023 LPG production THTPA 1042 1026 1043
Minority Interest Rs m 0 0 0 Propane production THTPA 174 179 156
Prior Period Items Rs m -752 79 218 Ethylene production THTPA 326 367 393
Extraordinary Inc (Exp) Rs m -80 0 0
Tax Rs m 10,254 5,435 13,412
NOTES
Profit after tax Rs m 24,390 25,454 27,829
Gross profit margin % 25.7 19.6 22.9 GAIL (India) Ltd. is the country's largest gas distribution and transmission company
Effective tax rate % 28.9 17.6 32.7 with a pipeline network of over 7,000 kms and with a capacity to carry 150 million
standard cubic metres per day (MMSCMD) of natural gas. It operates in the gas
Net profit margin % 16.4 15.4 14.8
transmission, gas trading, LPG & other liquid hydrocarbons, LPG transmission,
BALANCE SHEET DATA petrochemicals and telecommunications segments. The company's HBJ pipeline is
the lifeline for major gas consumers ranging from power and fertilizer sectors.
Current assets Rs m 128,946 80,284 108,113
Current liabilities Rs m 93,281 48,593 63,976 In FY08, GAIL recorded a standalone topline growth of 12.2% YoY. The
Net working cap to sales % 24.0 19.2 23.4 petrochemical segment grew by 13% in volume terms, but managed a superior
Current ratio x 1.4 1.7 1.7 growth rate of 18% in value terms, due to higher realisations during the year.
Inventory Turnover Days 12 14 12 However, natural gas transmission grew by 6% YoY in volume terms but recorded a
Debtors Turnover Days 19 18 22 3% YoY growth in value indicating lower transmission margins. Standalone
Net fixed assets Rs m 87,435 127,304 133,617 bottomline grew 9% YoY in FY08 due to higher realisations, higher sales quantity of
Share capital Rs m 8,457 8,457 8,457 petrochemicals, LPG and other liquid hydrocarbons, increase in gas throughput,
"Free" reserves Rs m 93,266 108,462 125,167 increase in LPG transmission quantity and some decrease in subsidy sharing in
domestic LPG and PDS kerosene.
Net worth Rs m 102,650 118,220 135,526
Long term debt Rs m 15,138 34,869 37,194 GAIL plans to invest Rs. 34 bn during FY09. Of these, Rs 26 bn will be invested in
Total assets Rs m 230,304 217,253 251,954 pipeline projects, Rs. 5 bn will be invested in E & P projects, Rs. 2 bn will be invested
Interest coverage x 27.7 26.7 28.7 in Petrochemicals, Rs. 1 bn will be invested in business development and the rest will
Debt to equity ratio x 0.1 0.3 0.3 be invested in projects related to city gas, telecom etc. A wholly owned subsidiary,
Sales to assets ratio x 0.6 0.8 0.7 GAIL Gas, is being incorporated to set up city gas projects across country. A JV, GAIL
Return on assets % 21.8 17.4 17.0 China Gas Global Energy Holding, has been floated with China Gas Holding to
Return on equity % 23.8 21.5 20.5 pursue potential projects such as Beijing Gas CNG, CBM in inner Mongolia and
Return on capital % 30.5 21.0 24.7 petrochemicals based on coal.
Exports to sales % 0.0 0.0 0.0
Imports to sales % 0.7 1.1 0.6
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141
 Regd off: 2, Shantisadan Society, Nr. Parimal Garden, Ellis bridge, Ahmedabad-06
GUJARAT GAS COMPANY LIMITED E-Mail: rajeshwari.sharma@gujaratgas.com
Web site: www.gujaratgas.com
Telephone: (079) 2646 2980 Fax: (079) 2646 6249
ENERGY SOURCES MNC Tr agent: Karvy Computer, Plot 17-24, Vithalrao Nagar, Madhapur, Hyderabad-81
Chairman: Hasmukh Shah SEC: Rajeshwari Sharma AUD: Price Waterhouse
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1988 523477 GGAS:IN 2 271.1 10.4 -8.6 11.4 9.1 1.1 17,382.4 12.5 INE374A01029
SHAREHOLDING FX Transaction (CY07) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 0
Foreign collaborators : 65.1% Imports (cif) Rs m 168 (Rs)
Indian inst/Mut Fund : 8.1% Fx inflow Rs m 0 390
FIIs/GDR : 16.0% Fx outflow Rs m 294
Free float : 10.8% Net fx Rs m -294
Shareholders : 19,603
330
No. of months 12 12 12
Year ending 31/12/2005 31/12/2006 31/12/2007
EQUITY SHARE DATA
270
High Rs 1,440 1,530 377
Low Rs 585 920 240
Sales per share Rs 582.2 754.9 194.1
Earnings per share Rs 76.5 68.3 23.8 210
Cash flow per share Rs 97.8 93.1 29.8 DAILY
Dividends per share Rs 10.00 12.50 3.00 100 DMA
Dividend yield (eoy) % 1.0 1.0 1.0
150
Book value per share Rs 289.2 343.5 89.1
Shares outstanding (eoy) m 12.83 12.83 64.13 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - FV2
Price / Sales ratio x 1.7 1.6 1.6 No. of months 12 12 12
Avg P/E ratio x 13.2 17.9 12.9 Year ending 31/12/2005 31/12/2006 31/12/2007
CASH FLOW
P/CF ratio (eoy) x 10.4 13.2 10.3
Price / Book Value ratio x 3.5 3.6 3.5 From Operations Rs m 1,258 1,091 1,797
Dividend payout % 13.1 18.3 12.6 From Investments Rs m -1,649 -752 -1,796
Avg Mkt Cap Rs m 12,990 15,717 19,784 From Financial Activity Rs m 450 -342 13
No. of employees `000 1 1 1 Net Cashflow Rs m 60 -3 15
Total wages/salary Rs m 216 283 307
Avg. sales/employee Rs Th 14,938.0 17,869.0 22,753.2 INTERIM RESULTS
Avg. wages/employee Rs Th 432.0 522.1 561.2 3QCY07 4QCY07 1QCY08 2QCY08
Avg. net profit/employee Rs Th 1,962.0 1,616.2 2,795.2 Net sales Rs m 2,766 3,459 3,347 3,110
Gross profit Rs m 570 637 715 569
INCOME DATA Gross profit margin % 20.6 18.4 21.4 18.3
Net Sales Rs m 7,469 9,685 12,446 Net profit Rs m 341 392 452 439
Other income Rs m 156 161 175 Net profit margin % 12.3 11.3 13.5 14.1
Total revenues Rs m 7,625 9,846 12,621
Gross profit Rs m 1,475 1,510 2,539 KEY DATA
Depreciation Rs m 274 319 384 Parameters Unit CY05 CY06 CY07
Interest Rs m 29 22 1 Volume of gas sold MMSCM 813 1,089 1,202
Profit before tax Rs m 1,328 1,330 2,329 CNG vehicles No.s 30,000 41,000 63,000
Minority Interest Rs m -7 -6 -7 PNG households No.s 170,000 190,000 230,000
Prior Period Items Rs m 0 0 0
Extraordinary Inc (Exp) Rs m 127 -17 -27
Tax Rs m 467 431 766
NOTES
Profit after tax Rs m 981 876 1,529
Gross profit margin % 19.7 15.6 20.4 Gujarat Gas Company (GGCL), a 65% subsidiary of the global major BG group, is
Effective tax rate % 35.2 32.4 32.9 India's largest private sector gas distribution and transmission company. It operates
as the main distributor of natural gas in the industrial, commercial, domestic and
Net profit margin % 13.1 9.0 12.3
automobile (CNG) segments. It has a presence across three major industrial cities of
BALANCE SHEET DATA Surat, Ankleshwar and Bharuch. With a pipeline network of over 2,100 kms, GGCL
supplies approximately 3 million standard cubic meters per day (MMSCMD) to
Current assets Rs m 888 1,467 1,667 230,000 domestic, 4,000 commercial, 63,000 automobiles, and 880 industrial
Current liabilities Rs m 1,611 2,146 2,311 customers. The company started a cogeneration business in CY06. There were
Net working cap to sales % -9.7 -7.0 -5.2 installations of 10.59 MW by the end of 2007.
Current ratio x 0.6 0.7 0.7
Inventory Turnover Days 5 5 5 In CY07, the company's consolidated topline grew by 34% on the back of a volume
Debtors Turnover Days 22 31 26 growth of 10% in distribution. Bottomline grew by 74%. The company purchased gas
Net fixed assets Rs m 4,136 5,218 5,760 from the Panna, Mukta and Tapti (PMT) consortium, Cairn Energy, Gujarat State
Share capital Rs m 128 128 128 Petroleum Corporation (GSPC), NIKO Resources and GAIL during the year.
"Free" reserves Rs m 3,590 4,249 5,535 However, production constraints at Cairn and cessation of contract with GSPC led to
a change in company's usual purchase portfolio.
Net worth Rs m 3,710 4,407 5,712
Long term debt Rs m 29 0 0 GGCL plans expansion and extension of network into new industrial areas. However,
Total assets Rs m 6,984 8,093 9,776 the company faces a challenge to sustain supply to core markets, as the government
Interest coverage x 46.8 61.5 2,330.0 has appointed GAIL as the nominee for all PMT gas from Nov 07. As a result, GGCL
Debt to equity ratio x 0.0 0.0 0.0 will have to buy the gas from GAIL and the cost of gas purchased by the company is
Sales to assets ratio x 1.1 1.2 1.3 expected to remain high in the coming year. The company will also be impacted by
Return on assets % 27.0 20.4 26.8 the purchase of liquefied natural gas, which may have to be procured at a high cost
Return on equity % 26.4 19.9 26.8 in short term contracts. The company also has to secure regulatory licenses for new
Return on capital % 39.5 30.2 40.2 areas and operate in a regulated environment.
Exports to sales % 0.0 0.0 0.0
Imports to sales % 2.8 2.4 1.3
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142
 Regd off: IGL Bhawan, Plot No. 4, Community Centre, Sector 9, New Delhi-22
INDRAPRASTHA GAS LIMITED E-Mail: investors@igl.co.in
Web site: www.iglonline.net
Telephone: (011) 4607 4607 Fax: (011) 2617 1863
ENERGY SOURCES PSU Tr agent: Karvy Computer, Plot 17-24, Vithalrao Nagar, Madhapur, Hyderabad-81
Chairman: U. D. Choubey SEC: S. K. Jain AUD: Deloitte Haskins & Sells
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1998 532514 IGL:IN 10 117.6 2.9 1.3 9.4 6.9 3.4 16,457.0 14.4 INE203G01019
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 45.0% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 181 (Rs)
Indian inst/Mut Fund : 20.8% Fx inflow Rs m 0 200
FIIs/GDR : 19.7% Fx outflow Rs m 181
Free float : 14.5% Net fx Rs m -181 DAILY
Shareholders : 71,002
170 100 DMA
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
140
High Rs 152 154 182
Low Rs 94 86 91
Sales per share Rs 37.2 43.9 50.4
Earnings per share Rs 7.6 9.9 12.5 110
Cash flow per share Rs 11.6 14.1 16.9
Dividends per share Rs 2.50 3.00 4.00
Dividend yield (eoy) % 2.0 2.5 2.9
80
Book value per share Rs 27.1 33.4 41.2
Shares outstanding (eoy) m 140.00 140.00 140.00 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 3.3 2.7 2.7 No. of months 12 12 12
Avg P/E ratio x 16.2 12.2 11.0 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 10.6 8.5 8.1
Price / Book Value ratio x 4.5 3.6 3.3 From Operations Rs m 1,272 1,905 2,044
Dividend payout % 33.0 30.4 32.1 From Investments Rs m -593 -360 -747
Avg Mkt Cap Rs m 17,220 16,786 19,110 From Financial Activity Rs m -821 -399 491
No. of employees `000 <500 <500 <500 Net Cashflow Rs m -142 1,145 806
Total wages/salary Rs m 115 141 153
Avg. sales/employee Rs Th 18,603.6 21,932.1 25,214.3 INTERIM RESULTS
Avg. wages/employee Rs Th 410.7 503.6 546.4 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 3,789.3 4,928.6 6,232.1 Net sales Rs m 1,741 1,827 1,874 1,907
Gross profit Rs m 750 781 783 755
INCOME DATA Gross profit margin % 43.1 42.7 41.8 39.6
Net Sales Rs m 5,209 6,141 7,060 Net profit Rs m 428 451 482 436
Other income Rs m 53 102 234 Net profit margin % 24.6 24.7 25.7 22.9
Total revenues Rs m 5,262 6,243 7,294
Gross profit Rs m 2,137 2,552 3,001 KEY DATA
Depreciation Rs m 565 598 626 Parameters Unit FY06 FY07 FY08
Interest Rs m 22 0 0 CNG volume MMSCM 419 453 505
Profit before tax Rs m 1,603 2,056 2,609 CNG vehicles No.s 106,000 150,000 225,000
Minority Interest Rs m 0 0 0 PNG volume MMSCM 26 37 43
Prior Period Items Rs m -2 0 0 Cost of Natural Gas % of sales 43.3 43.6 42.9
Extraordinary Inc (Exp) Rs m 0 0 0
Tax Rs m 540 676 864
NOTES
Profit after tax Rs m 1,061 1,380 1,745
Gross profit margin % 41.0 41.6 42.5 Indraprastha Gas (IGL) is in the retail gas distribution business supplying
Effective tax rate % 33.7 32.9 33.1 compressed natural gas (CNG) to transport sector and piped natural gas (PNG) to
domestic & commercial sectors in NCT of Delhi. The Company had a network of 163
Net profit margin % 20.4 22.5 24.7
stations for supply of CNG as on March 31,2008. The estimated number of vehicles
BALANCE SHEET DATA using CNG was around 2,25,000 in March 31,2008. The company has provided PNG
connections to over 1,22,000 domestic and 300 commercial customers as on March
Current assets Rs m 789 1,061 2,279 31,2008.
Current liabilities Rs m 986 1,251 1,462
Net working cap to sales % -3.8 -3.1 11.6 During FY08, the company witnessed a topline growth of 15% and a bottomline
Current ratio x 0.8 0.8 1.6 growth of 27%. Although raw material costs in FY08 went up by 13% over FY07 YoY,
Inventory Turnover Days 13 12 12 it fell from 43.6% to 42.9%, as a percentage of sales, thereby having a positive impact
Debtors Turnover Days 13 11 12 on operating margins. Staff costs also declined marginally as a percentage of sales.
Net fixed assets Rs m 3,954 3,944 4,165 The improvement in profitability is mainly due to augmented infrastructure for growth,
Share capital Rs m 1,400 1,400 1,400 increased sales and cost control measures.
"Free" reserves Rs m 2,387 3,275 4,365
Given the spiraling crude prices, the cost advantage of CNG vis--vis petroleum fuels
Net worth Rs m 3,787 4,675 5,765 is sustainable in the years to come and is likely to drive further conversions. The
Long term debt Rs m 0 0 0 management is expected to maintain the parity between the prices of petrol and CNG
Total assets Rs m 5,168 6,281 7,533 in order to further encourage private car conversions. Despite this, margins are still
Interest coverage x 73.9 NM NM expected to be high over the next few years. Furthermore, the benefits of scale on
Debt to equity ratio x 0.0 0.0 0.0 the back of higher CNG volumes in the future are also expected to accrue to it. The
Sales to assets ratio x 1.0 1.0 0.9 company has incurred a capex of Rs 7 bn in the first three quarters of FY08, which
Return on assets % 28.6 29.5 30.3 is higher than the capex for full year FY07 of Rs 6.4 bn. Capital expenditure adds
Return on equity % 28.0 29.5 30.3 value to the company given the high returns on capital in the city gas distribution
Return on capital % 42.9 44.0 45.3 business.
Exports to sales % 0.0 0.0 0.0
Imports to sales % 1.5 3.1 2.6
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143
 Regd off: Jeevan Bharati, Tower II, 124, Indira Chowk, New Delhi - 110 001
OIL & NATURAL GAS CORPORATION LTD. + $ E-Mail: secretariat@ongc.co.in
Web site: www.ongcindia.com
Telephone: (011) 2332 3201 Fax: (011) 2331 6413
ENERGY SOURCES GOVERNMENT Tr agent: Karvy Computershare, Arunachal Bldg., 19, Barakhamba Road, Delhi - 1
Chairman: R. S. Sharma (Dir. Finance) SEC: S. P. Garg AUD: K. K. Soni & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1959 500312 ONGC:IN 10 1,070.8 6.8 28.8 11.5 6.8 3.0 2,290,227.2 254.8 INE213A01011
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 74.1% Exports (fob) Rs m 36,151
Foreign collaborators : 0.0% Imports (cif) Rs m 46,592 (Rs)
Indian inst/Mut Fund : 5.7% Fx inflow Rs m 37,947 1430
FIIs/GDR : 6.9% Fx outflow Rs m 100,529
Free float : 13.3% Net fx Rs m -62,582
DAILY
Shareholders : 433,024 100 DMA
1210
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
990
High Rs 1,325 1,014 1,387
Low Rs 811 623 770
Sales per share Rs 495.7 384.6 452.5
Earnings per share Rs 108.0 83.1 92.9 770
Cash flow per share Rs 175.7 137.7 157.0
Dividends per share Rs 45.00 31.00 32.00
Dividend yield (eoy) % 4.2 3.8 3.0
550
Book value per share Rs 395.5 309.5 361.9
Shares outstanding (eoy) m 1,425.93 2,138.89 2,138.89 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - B1:2 -
Price / Sales ratio x 2.2 2.1 2.4 No. of months 12 12 12
Avg P/E ratio x 9.9 9.9 11.6 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 6.1 5.9 6.9
Price / Book Value ratio x 2.7 2.6 3.0 From Operations Rs m 213,669 277,902 290,289
Dividend payout % 41.7 37.3 34.4 From Investments Rs m -130,364 -84,105 -162,856
Avg Mkt Cap Rs m 1,522,893 1,750,681 2,306,793 From Financial Activity Rs m -94,487 -78,148 -83,652
No. of employees `000 35 34 33 Net Cashflow Rs m -11,182 115,649 43,780
Total wages/salary Rs m 26,067 37,822 29,731
Avg. sales/employee Rs Th 20,357.7 24,330.6 29,331.5 INTERIM RESULTS
Avg. wages/employee Rs Th 750.7 1,118.7 901.0 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 4,434.5 5,255.7 6,022.6 Net sales Rs m 154,139 151,208 156,261 200,522
Gross profit Rs m 84,153 80,318 57,767 117,554
INCOME DATA Gross profit margin % 54.6 53.1 37.0 58.6
Net Sales Rs m 706,859 822,616 967,822 Net profit Rs m 50,975 43,665 26,271 65,929
Other income Rs m 27,733 47,388 45,411 Net profit margin % 33.1 28.9 16.8 32.9
Total revenues Rs m 734,592 870,004 1,013,233
Gross profit Rs m 310,071 356,569 402,893 KEY DATA
Depreciation Rs m 96,555 116,765 137,008 Parameters Unit FY06 FY07 FY08
Interest Rs m 1,597 1,614 1,135 Crude oil production MMT 24 26 26
Profit before tax Rs m 239,652 285,578 310,161 Natural gas production MTOE 23 22 22
Minority Interest Rs m -1,006 -1,424 -3,509 Ultimate reserve accretion MTOE 52 66 64
Prior Period Items Rs m -6,143 -12,755 -930 Capex Rs bn 114 133 162
Extraordinary Inc (Exp) Rs m 6,405 4,751 0
Tax Rs m 84,932 98,454 106,999
NOTES
Profit after tax Rs m 153,976 177,696 198,723
Gross profit margin % 43.9 43.3 41.6 ONGC is India's largest upstream oil and gas company accounting for more than 80%
Effective tax rate % 35.4 34.5 34.5 of the domestic production. It holds 85 blocks out of 162 blocks in the 6 rounds of
NELP, 97 nomination exploration licenses and 284 mining leases. Its overseas
Net profit margin % 21.8 21.6 20.5
subsidiary, ONGC Videsh Ltd has 50 blocks in 17 countries. It has recoverable
BALANCE SHEET DATA reserves of 8.5 bn barrels of oil equivalent and the average production is 1.1 m
barrels of oil equivalent per day. It holds a 72% stake in Mangalore Refinery &
Current assets Rs m 305,443 388,405 475,345 Petrochemicals Ltd. The company also has stakes in Petronet LNG, Pawan Hans
Current liabilities Rs m 132,278 182,956 235,126 Helicopter, ONGC Petro-additions, ONGC Mangalore Petrochemicals, Kakinada
Net working cap to sales % 24.5 25.0 24.8 Refinery & Petrochemicals, ONGC Tripura Power, Dahez SEZ, Mangalore SEZ and
Current ratio x 2.3 2.1 2.0 ONGC Mittal Energy.
Inventory Turnover Days 26 26 28
Debtors Turnover Days 23 21 27 During FY08, ONGC's consolidated topline grew by 18% YoY, while consolidated
Net fixed assets Rs m 568,051 647,399 700,903 bottomline grew by 12% YoY. Sales for FY08 were affected to the tune of Rs 220 bn
Share capital Rs m 14,259 21,389 21,389 due to the under recoveries of oil marketing companies (OMCs) shared by ONGC.
"Free" reserves Rs m 550,381 642,660 755,680 The company allows discounts in the prices of crude oil, kerosene and domestic LPG
that it supplies to the OMCs. The impact was Rs 201 bn at the PBT level and Rs 132
Net worth Rs m 564,017 661,995 774,127
bn at the PAT level.
Long term debt Rs m 10,365 6,952 7,566
Total assets Rs m 926,175 1,102,252 1,246,846 Going forward, the company seeks to leverage government support in obtaining
Interest coverage x 151.1 177.9 274.3 overseas blocks. It is also likely to benefit from its extensive experience, in-place
Debt to equity ratio x 0.0 0.0 0.0 infrastructure and diversification through downstream integration. However, it faces
Sales to assets ratio x 0.8 0.7 0.8 crude price and exchange rate volatility, resource scarcity witnessed in steep rig
Return on assets % 27.1 26.8 25.6 hiring rates, rising costs with drilling complexity, and rising finding & lifting costs.
Return on equity % 27.3 26.8 25.7
Return on capital % 41.9 41.5 39.3
Exports to sales % 3.7 3.6 3.7
Imports to sales % 4.3 4.5 4.8
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144
 Regd off: World trade Centre, 1st Flr, Babar Rd, Barakhamba Lane, New Delhi-01
PETRONET LNG LIMITED E-Mail: investors@petronetlng.com
Web site: www.petronetlng.com
Telephone: (011) 2341 3616 Fax: (011) 2341 4271
ENERGY SOURCES MISCELLANEOUS Tr agent: Karvy Computer, Plot 17-24, Vithalrao Nagar, Madhapur, Hyderabad-81
Chairman: M. S. Srinivasan SEC: R. K. Garg AUD: V. Sankar Aiyar & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1998 532522 PLNG:IN 10 61.1 -4.3 -1.8 9.6 7.9 2.5 45,787.5 224.1 INE347G01014
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 50.0% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 54,199 (Rs)
Indian inst/Mut Fund : 1.60% Fx inflow Rs m 4 140
FIIs/GDR : 9.6% Fx outflow Rs m 54,819
Free float : 38.8% Net fx Rs m -54,815
Shareholders : 521,935
110
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
80
High Rs 72 68 122
Low Rs 39 36 41
Sales per share Rs 51.2 73.5 87.4
Earnings per share Rs 2.6 4.2 6.3 50
Cash flow per share Rs 3.9 5.5 7.7 DAILY
Dividends per share Rs 0.00 1.25 1.50 100 DMA
Dividend yield (eoy) % 0.0 2.4 1.8
20
Book value per share Rs 14.3 17.0 21.6
Shares outstanding (eoy) m 750.00 750.00 750.00 Sep-05 Jun-06 Mar-07 Dec-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 1.1 0.7 0.9 No. of months 12 12 12
Avg P/E ratio x 21.4 12.4 12.9 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 14.1 9.4 10.6
Price / Book Value ratio x 3.9 3.1 3.8 From Operations Rs m 2,528 5,563 8,416
Dividend payout % 0.0 29.9 23.7 From Investments Rs m -1,941 -4,900 -9,237
Avg Mkt Cap Rs m 41,625 39,000 61,125 From Financial Activity Rs m -1,061 236 1,002
No. of employees `000 <500 <500 <500 Net Cashflow Rs m -474 899 181
Total wages/salary Rs m 110 121 210
Avg. sales/employee Rs Th 187,180.5 229,541.7 268,659.8 INTERIM RESULTS
Avg. wages/employee Rs Th 536.6 504.2 860.7 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 9,507.3 13,054.2 19,454.9 Net sales Rs m 16,705 15,811 17,527 16,459
Gross profit Rs m 2,145 2,320 2,149 1,917
INCOME DATA Gross profit margin % 12.8 14.7 12.3 11.6
Net Sales Rs m 38,372 55,090 65,553 Net profit Rs m 1,155 1,310 1,201 1,056
Other income Rs m 194 366 536 Net profit margin % 6.9 8.3 6.9 6.4
Total revenues Rs m 38,566 55,456 66,089
Gross profit Rs m 4,827 6,407 8,580 KEY DATA
Depreciation Rs m 1,010 1,020 1,022 Parameters Unit FY06 FY07 FY08
Interest Rs m 1,061 997 942 Installed capacity MMTPA 5 5 5
Profit before tax Rs m 2,950 4,756 7,152 Production MMTPA 5 6 6
Minority Interest Rs m 0 0 0 LNG Purchased TBTU 248 293 324
Prior Period Items Rs m 0 0 0 RLNG Sold TBTU 247 287 322
Extraordinary Inc (Exp) Rs m 0 0 0 Capacity utilisation % 98 112 126
Tax Rs m 1,001 1,623 2,405
NOTES
Profit after tax Rs m 1,949 3,133 4,747
Gross profit margin % 12.6 11.6 13.1 Petronet LNG (PLL) is promoted by BPCL, ONGC, GAIL and IOC. It is engaged in
Effective tax rate % 33.9 34.1 33.6 the business of regasification of LNG. The strategic location of its Dahej terminal
helps to satisfy the enormous demand from power, fertilizer and other users located
Net profit margin % 5.1 5.7 7.2
in western, central and northern India. PLL has a single source of long-term LNG
BALANCE SHEET DATA supply - RasGas and only three Off-takers- GAIL, IOC and BPCL. It supplements
supplies with spot cargoes and is scouting for them from Algeria, Oman, Abu Dhabi
Current assets Rs m 5,702 10,883 11,476 and Egypt.
Current liabilities Rs m 1,725 5,877 8,588
Net working cap to sales % 10.4 9.1 4.4 In FY08, the standalone topline registered a growth of 19% YoY as Petronet LNG sold
Current ratio x 3.3 1.9 1.3 322 trillion British thermal units (tBtu) of natural gas, up 11% from the 290 tBtu sold
Inventory Turnover Days 10 14 5 in FY07. The company witnessed a 130% capacity utilisation at Dahej. Bottomline
Debtors Turnover Days 12 22 19 registered a growth of 52% YoY due to the higher capacity utilisation, margin
Net fixed assets Rs m 18,627 21,273 26,293 expansion, higher other income and lower interest expenses. Efficiencies of scale
Share capital Rs m 7,500 7,500 7,500 were reflected in the decline of raw materials cost as well as other expenditure as a
"Free" reserves Rs m 3,219 5,255 8,685 % of sales.
Net worth Rs m 10,719 12,755 16,185 The company expects to complete the expansion of the Dahej terminal in phases
Long term debt Rs m 12,505 13,707 15,776 starting October 2008. Its regasification capacity will also go up to 10 million tonnes,
Total assets Rs m 25,898 34,936 43,242 but the tanks will be commissioned by January 2009. Petronet LNG has a long term
Interest coverage x 3.8 5.8 8.6 contract with RasGas for 7.5 m tonnes. As far as short-term contracts are concerned,
Debt to equity ratio x 1.2 1.1 1.0 the company acknowledges that the spot market is tight and availability of LNG
Sales to assets ratio x 1.5 1.6 1.5 cargoes and related price pose problems in bringing in more spot cargoes. However,
Return on assets % 13.0 15.6 17.8 it has a short-term contract for 1.5 m tonnes, which the company hopes to extend in
Return on equity % 18.2 24.6 29.3 2009. The funding for the expansion of the Kochi terminal is almost done. Petronet
Return on capital % 17.3 21.7 25.3 LNG has signed an agreement with IFC Washington. The company needs Rs 8 bn
Exports to sales % 0.0 0.0 0.0 from the market for their various projects. However, if the power project comes up,
Imports to sales % 79.1 84.4 82.7 they will need Rs 30 bn. The company plans to raise debt for these requirements.
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145
 Regd off: 3rd floor, Maker Chambers IV, 222, Nariman Point, Mumbai - 21
RELIANCE INDUSTRIES LIMITED + $ E-Mail: investor_relations@ril.com
Web site: www.ril.com
Telephone: (022) 2278 5000 Fax: (022) 2278 5111
DIVERSIFIED MUKESH AMBANI Tr agent: Karvy Computer, 46, Avenue 4, St. No. 1, Banjara Hills, Hyderabad - 34
Chairman: Mukesh D. Ambani (MD) SEC: Vinod M. Ambani AUD: Chaturvedi & Shah
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1966 500325 RIL:IN 10 2,079.4 -8.6 6.2 15.4 12.3 0.6 3,022,719.8 1,349.3 INE002A01018
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 51.4% Exports (fob) Rs m 759,742
Foreign collaborators : 0.0% Imports (cif) Rs m 949,888 (Rs)
Indian inst/Mut Fund : 8.9% Fx inflow Rs m 760,108 3360
FIIs/GDR : 21.5% Fx outflow Rs m 1,054,259
Free float : 18.2% Net fx Rs m -294,151
Shareholders :2,130,249
2620
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
1880
High Rs 809 1,445 3,252
Low Rs 410 796 1,305
Sales per share Rs 595.8 816.4 943.5
Earnings per share Rs 67.4 82.0 134.6 1140 DAILY
Cash flow per share Rs 92.5 117.2 169.0
100 DMA
Dividends per share Rs 10.00 11.00 13.00
Dividend yield (eoy) % 1.6 1.0 0.6
400
Book value per share Rs 366.1 489.5 588.2
Shares outstanding (eoy) m 1,393.51 1,393.51 1,453.65 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - A
Price / Sales ratio x 1.0 1.4 2.4 No. of months 12 12 12
Avg P/E ratio x 9.0 13.7 16.9 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 6.6 9.6 13.5
Price / Book Value ratio x 1.7 2.3 3.9 From Operations Rs m 102,731 167,490 162,331
Dividend payout % 14.8 13.4 9.7 From Investments Rs m -131,893 -292,451 -304,256
Avg Mkt Cap Rs m 849,344 1,561,428 3,312,210 From Financial Activity Rs m 19,165 107,361 167,168
No. of employees `000 13 25 25 Net Cashflow Rs m -9,998 -17,600 25,244
Total wages/salary Rs m 14,693 25,909 27,382
Avg. sales/employee Rs Th 66,208.0 46,068.2 53,810.5 INTERIM RESULTS
Avg. wages/employee Rs Th 1,171.7 1,049.1 1,074.4 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 7,494.8 4,629.8 7,677.6 Net sales Rs m 320,430 345,900 372,860 415,790
Gross profit Rs m 57,810 58,330 60,180 61,210
INCOME DATA Gross profit margin % 18.0 16.9 16.1 14.7
Net Sales Rs m 830,248 1,137,701 1,371,467 Net profit Rs m 38,370 33,460 39,120 41,100
Other income Rs m 12,046 6,509 58,583 Net profit margin % 12.0 9.7 10.5 9.9
Total revenues Rs m 842,294 1,144,210 1,430,050
Gross profit Rs m 143,487 201,267 185,091 KEY DATA
Depreciation Rs m 34,949 48,995 50,042 Parameters Unit FY06 FY07 FY08
Interest Rs m 9,346 12,311 10,859 Refining capacity MMT 33 33 33
Profit before tax Rs m 111,238 146,470 182,773 Ethylene capacity MT 750,000 1,580,000 1,883,400
Minority Interest Rs m 35 1 -19 Crude oil production MT 466,168 548,058 642,596
Prior Period Items Rs m 0 5 465 Natural gas production BBTU 30,255 28,485 40,884
Extraordinary Inc (Exp) Rs m -993 -6,416 47,335 Petroleum products production TMT 20,622 27,112 29,532
Tax Rs m 16,295 25,723 34,876
NOTES
Profit after tax Rs m 93,985 114,337 195,678
Gross profit margin % 17.3 17.7 13.5 Reliance Industries (RIL) is India's largest private sector company and has interests
Effective tax rate % 14.6 17.6 19.1 in the entire energy value chain of exploration, production, refining, marketing,
petrochemicals, textiles and infrastructure development.
Net profit margin % 11.3 10.0 14.3

BALANCE SHEET DATA In FY08, the standalone topline registered a 20% YoY growth, while bottom line grew
by 29% YoY, excluding the exceptional item of stake sale in Reliance Petroleum
Current assets Rs m 250,122 331,159 514,889 adjusted for tax. The refinery achieved a throughput of 32 m tonnes of crude during
Current liabilities Rs m 170,726 202,516 268,667 the year at an utilisation rate of over 96%. RIL's refining margins were US $ 15/bbl in
Net working cap to sales % 9.6 11.3 18.0 FY08, up from US $ 11.7/bbl in FY07. Margins peaked in 2QFY08 due to high light
Current ratio x 1.5 1.6 1.9 product cracks and tightened product markets but dropped thereafter due to
Inventory Turnover Days 45 40 51 increased crude prices and reduced crack spreads. The petrochemicals segment
Debtors Turnover Days 19 12 16 registered a 5% YoY topline growth in FY08. Higher realisations accounted for 2% of
Net fixed assets Rs m 651,869 941,463 1,139,452 the sales growth, while higher volumes accounted for the balance 3%. It benefited
Share capital Rs m 13,932 13,932 14,534 from the strong demand from downstream users, higher production and firm prices
"Free" reserves Rs m 435,981 592,663 769,140 across the value chain.
Net worth Rs m 510,224 682,145 855,072 RIL's refining segment is expected to deliver robust GRMs going forward, on the back
Long term debt Rs m 159,848 240,555 406,934 of superior product mix and complex refinery configuration. On the petrochemical
Total assets Rs m 968,659 1,325,302 1,749,569 front, margins are going to reduce gradually with incremental capacities coming on
Interest coverage x 12.9 12.9 17.8 stream in the Middle East region. However with lower per capita consumption in the
Debt to equity ratio x 0.3 0.4 0.5 domestic markets coupled with a booming economy, higher volumes are going to
Sales to assets ratio x 0.9 0.9 0.8 propel the petrochemical EBIT. RIL's investments in E&P, organised retail and
Return on assets % 15.4 13.7 16.4 development of special economic zones (SEZs) will all be the cornerstones for future
Return on equity % 18.4 16.8 22.9 growth. In the E&P segment, it has expanded its international E&P footprint to
Return on capital % 17.9 16.5 19.1 Kurdistan, Oman, Yemen and Columbia. There exists immense potential regarding
Exports to sales % 37.1 51.4 55.4 further upside to the company's current reserves.
Imports to sales % 68.1 67.1 69.3
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146
FERTILISERS

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147
 Regd off: Bombay House, 24, Homi Mody Street, Mumbai - 400 001
TATA CHEMICALS LIMITED E-Mail: investor_relations@tatachemicals.com
Web site: www.tatachemicals.com
Telephone: (022) 6665 8282 Fax: (022) 6665 8144
FERTILISERS TATA Tr agent: TSR Darashaw, H. Moosa Patrawala Ind. Est., E.Moses Rd., Mumbai - 11
Chairman: Ratan N. Tata SEC: Rajiv Chandan AUD: S. B. Billimoria & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1939 500770 TTCH:IN 10 322.7 -2.8 27.8 7.9 5.9 2.8 75,744.1 178.5 INE092A01019
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 29.1% Exports (fob) Rs m 668
Foreign collaborators : 0.0% Imports (cif) Rs m 13,826 (Rs)
Indian inst/Mut Fund : 30.2% Fx inflow Rs m 919 470
FIIs/GDR : 11.2% Fx outflow Rs m 15,046
Free float : 29.6% Net fx Rs m -14,127
Shareholders : 199,311
390
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
310
High Rs 267 277 427
Low Rs 145 189 201
Sales per share Rs 185.9 260.4 248.2
Earnings per share Rs 19.9 23.6 41.2 230
DAILY
Cash flow per share Rs 28.5 36.4 54.6
Dividends per share Rs 7.00 8.00 9.00 100 DMA
Dividend yield (eoy) % 3.4 3.4 2.9 150
Book value per share Rs 102.8 119.4 158.8
Shares outstanding (eoy) m 215.10 215.10 234.10
Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - BC
Price / Sales ratio x 1.1 0.9 1.3 No. of months 12 12 12
Avg P/E ratio x 10.3 9.9 7.6 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 7.2 6.4 5.8
Price / Book Value ratio x 2.0 2.0 2.0 From Operations Rs m 1,648 9,121 8,043
Dividend payout % 35.1 33.9 21.8 From Investments Rs m -7,077 -6,536 -33,467
Avg Mkt Cap Rs m 44,311 50,118 73,507 From Financial Activity Rs m -1,142 -2,270 30,306
No. of employees `000 3 3 5 Net Cashflow Rs m -6,571 316 4,881
Total wages/salary Rs m 1,489 3,480 4,778
Avg. sales/employee Rs Th 12,092.3 16,995.8 11,964.0 INTERIM RESULTS
Avg. wages/employee Rs Th 450.4 1,055.8 983.7 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 1,295.8 1,541.3 1,985.6 Net sales Rs m 12,551 12,240 9,276 12,074
Gross profit Rs m 2,092 2,045 1,403 2,695
INCOME DATA Gross profit margin % 16.7 16.7 15.1 22.3
Net Sales Rs m 39,977 56,018 58,109 Net profit Rs m 1,514 1,208 339 1,875
Other income Rs m 1,369 1,577 2,003 Net profit margin % 12.1 9.9 3.7 15.5
Total revenues Rs m 41,346 57,595 60,112
Gross profit Rs m 7,006 9,552 9,200 KEY DATA
Depreciation Rs m 1,840 2,739 3,138 Parameters Unit FY06 FY07 FY08
Interest Rs m 482 943 1,197 Soda Ash capacity TPA 875,000 917,700 917,700
Profit before tax Rs m 6,053 7,447 6,868 Vacuum salt capacity TPA 500,000 550,550 550,550
Minority Interest Rs m 0 0 0 Urea capacity TPA 742,500 742,500 742,500
Prior Period Items Rs m 0 0 0
Extraordinary Inc (Exp) Rs m -46 34 4,891
Tax Rs m 1,723 2,401 2,115
NOTES
Profit after tax Rs m 4,284 5,080 9,644
Gross profit margin % 17.5 17.1 15.8 Established in 1939, Tata Chemicals Limited (TCL) is India's leading manufacturer of
Effective tax rate % 28.5 32.2 30.8 inorganic chemicals, fertilisers and food additives. Part of the US$ 29 bn Tata Group,
the company owns and operates the largest and the most integrated inorganic
Net profit margin % 10.7 9.1 16.6
chemicals complex in the country at Mithapur, Gujarat. The company's fertiliser
BALANCE SHEET DATA complex in Uttar Pradesh, is known for its energy efficiency standards. Close on the
heels of its Brunner Mond acquisition, in 2008, the company made another
Current assets Rs m 18,530 20,143 34,283 acquisition in the soda ash space, acquiring the Soda Ash business of GCIP, a US
Current liabilities Rs m 15,942 19,217 30,135 based company for US$ 1 bn.
Net working cap to sales % 6.5 1.7 7.1
Current ratio x 1.2 1.0 1.1 The company put up a decent show in FY08. Riding on the back of strong demand
Inventory Turnover Days 64 41 58 for soda ash as well as firm realisations, the company managed to grow its topline by
Debtors Turnover Days 70 63 75 2% YoY. This was then translated into a 9% growth in operating profits as lower costs
Net fixed assets Rs m 27,794 30,561 33,712 enabled margins to expand by 1.2%. The company's bottomline surged more than
Share capital Rs m 2,152 2,152 2,341 two-fold, helped to a great extent by sale of investments, from which company made
"Free" reserves Rs m 17,697 20,690 32,568 profits of nearly Rs 5 bn. If one were to exclude the other income component, growth
in bottomline stood at a modest 10% YoY. Among segments, while inorganic
Net worth Rs m 22,123 25,681 37,179
chemicals helped drive topline growth, the crop nutrition business helped drive
Long term debt Rs m 12,401 8,166 46,307
profitability.
Total assets Rs m 58,874 66,089 118,662
Interest coverage x 13.6 8.9 6.7 The acquisition of GCIP represents a major milestone in the history of the soda ash
Debt to equity ratio x 0.6 0.3 1.2 business. It has opened up new markets in North & South America and in certain
Sales to assets ratio x 0.7 0.8 0.5 other countries of the world. TCL is planning to foray into the emerging and fast
Return on assets % 13.8 17.8 13.0 growing field of biofuels. Although the returns from the same are likely to be long-term
Return on equity % 19.4 19.8 25.9 in nature, it can unlock significant value for the company, if successful. Further, its
Return on capital % 18.8 24.9 15.5 recent JV agreement with Europe's largest fresh produce company, Total Produce, to
Exports to sales % 2.0 1.4 1.1 create state-of-the-art distribution facilities for fresh fruits and vegetables is also a big
Imports to sales % 29.4 23.6 23.8 positive. Thus, it looks like the company is emanating all the right vibrations.
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148
 Regd off: 3-11, G. I. D. C., Vapi, Dist. Valsad - 396 195, Gujarat
UNITED PHOSPHORUS LIMITED E-Mail: trivedimb@uniphos.com
Web site: www.uplonline.com
Telephone: (0260) 2400 717 Fax: (0260) 2401 823
CHEMICALS & PESTICIDES SHROFF Tr agent: Sharepro Services, Satam Estate, 3rd Flr, Chakala, Mumbai-99
Chairman: R. D. Shroff SEC: M. B. Trivedi AUD: S. V. Ghatalia & Asso.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1969 512070 UNTP:IN 2 334.4 -7.2 -0.3 28.5 17.9 0.6 73,440.0 170.1 INE628A01036
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 26.9% Exports (fob) Rs m 7,384
Foreign collaborators : 1.1% Imports (cif) Rs m 4,438 (Rs)
Indian inst/Mut Fund : 15.4% Fx inflow Rs m 8,516 450
FIIs/GDR : 41.8% Fx outflow Rs m 7,574
Free float : 14.7% Net fx Rs m 942
Shareholders : 28,906
375
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
300
High Rs 315 352 425
Low Rs 139 204 228
Sales per share Rs 95.9 130.6 169.8
Earnings per share Rs 11.0 13.9 11.7 225
Cash flow per share Rs 18.5 22.7 18.6 DAILY
Dividends per share Rs 1.00 1.20 2.00
100 DMA
Dividend yield (eoy) % 0.4 0.4 0.6
150
Book value per share Rs 68.2 79.7 101.9
Shares outstanding (eoy) m 187.13 187.52 219.65 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions FV2,BC,PP BC WC,ESOS
Price / Sales ratio x 2.4 2.1 1.9 No. of months 12 12 12
Avg P/E ratio x 20.7 20.0 27.9 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 12.3 12.2 17.5
Price / Book Value ratio x 3.3 3.5 3.2 From Operations Rs m 1,513 7,174 -738
Dividend payout % 9.1 8.6 17.1 From Investments Rs m -7,003 -13,008 -5,230
Avg Mkt Cap Rs m 42,479 52,131 71,716 From Financial Activity Rs m 9,311 6,784 7,947
No. of employees `000 2 2 2 Net Cashflow Rs m 3,822 950 1,979
Total wages/salary Rs m 1,758 2,767 5,542
Avg. sales/employee Rs Th 8,879.3 11,399.7 17,927.0 INTERIM RESULTS
Avg. wages/employee Rs Th 869.4 1,287.6 2,663.1 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 1,016.3 1,214.1 1,236.9 Net sales Rs m 8,850 8,006 12,027 12,993
Gross profit Rs m 1,811 1,380 2,412 2,532
INCOME DATA Gross profit margin % 20.5 17.2 20.1 19.5
Net Sales Rs m 17,954 24,498 37,306 Net profit Rs m 882 486 -28 1,477
Other income Rs m 66 212 311 Net profit margin % 10.0 6.1 -0.2 11.4
Total revenues Rs m 18,020 24,710 37,617
Gross profit Rs m 4,622 5,719 6,848 KEY DATA
Depreciation Rs m 1,402 1,656 1,522 Parameters Unit FY06 FY07 FY08
Interest Rs m 730 853 1,259 Specialty chemicals capacity TPA 5,318 5,318 5,318
Profit before tax Rs m 2,556 3,422 4,378 Chloro-Alkaline capacity TPA 112,500 112,500 112,500
Minority Interest Rs m -17 0 -10 Industrial chemicals capacity TPA 36,720 39,480 39,480
Prior Period Items Rs m -156 -212 -226 Pesticides capacity TPA 36,456 45,205 52,018
Extraordinary Inc (Exp) Rs m 0 -76 -1,144
Tax Rs m 328 525 424
NOTES
Profit after tax Rs m 2,055 2,609 2,574
Gross profit margin % 25.7 23.3 18.4 United Phosphorous Ltd (UPL) is the largest producer in India of crop protection
Effective tax rate % 12.8 15.3 9.7 products with a range of products that include fumigants and fungicides among
others. The company ranks amongst the top 5 post- patent agrochemical
Net profit margin % 11.4 10.6 6.9
manufacturers in the world. Through acquisitions, strategic alliances and
BALANCE SHEET DATA subsidiaries, UPL has built a network across the globe and operates across 21
manufacturing sites, 9 in India, 4 in France, 2 in Spain, 1 each in UK, Vietnam,
Current assets Rs m 20,298 25,169 28,581 Argentina, Netherlands, Italy and China. UPL is also one of the world's few
Current liabilities Rs m 7,995 12,504 13,473 companies to manufacture complex organo-phosphorus compounds starting from the
Net working cap to sales % 68.5 51.7 40.5 basic raw material, rock phosphate ore.
Current ratio x 2.5 2.0 2.1
Inventory Turnover Days 109 155 106 UPL continued to witness margin pressure during FY08. The net margins of the
Debtors Turnover Days 87 85 84 company contracted by 4% YoY almost in line with the contraction in EBITDA margins
Net fixed assets Rs m 6,517 10,921 12,797 (4.6% YoY). Though the company reported robust 52% YoY growth in topline, rising
Share capital Rs m 374 375 439 cost of operations seemed to have taken its toll on the company's profitability. The
"Free" reserves Rs m 11,040 12,667 19,870 47% YoY growth in other income was also not enough to prevent the pressure on
bottomline.
Net worth Rs m 12,765 14,947 22,375
Long term debt Rs m 10,527 14,819 15,000 The rainfall in FY09 is expected to be satisfactory across the length and breadth of
Total assets Rs m 33,403 47,815 52,143 the country. This should result into overall better performance of the company. New
Interest coverage x 4.5 5.0 4.5 acquisitions in recent times will not only support growth of exports but will strengthen
Debt to equity ratio x 0.8 1.0 0.7 the company's position in the international markets. While an appreciating rupee
Sales to assets ratio x 0.5 0.5 0.7 might prove to be a dampener, the company is exporting to countries across the world
Return on assets % 12.0 11.6 10.3 to de-risk revenues and negate the adverse weather conditions in one country by
Return on equity % 16.1 17.5 11.5 diverting sales to the other parts of the world. The company has in the recent past
Return on capital % 13.4 13.4 11.4 ventured into the seeds business. There is a very good demand for genetically
Exports to sales % 39.8 28.3 19.8 developed seeds and it is expected that this business will also do very well. Thus,
Imports to sales % 13.8 11.5 11.9 barring unforeseen circumstances, UPL is expected do well in the medium term.
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149
 HOTELS
The travel and hospitality industry continues to be the sector, Investments of US$ 11 bn over the next 2 years are expected
which has largely profited from the fast growing economy of to be earmarked for the hotel industry in India. Further, new
India. This has largely been due to the 5.2 m tourist arrivals in segments like budget hotels, service apartments and
FY08 (11% growth) over the previous period. In the last five management contracts are witnessing increasing interest.
years, growth stood at 17% per annum. The hotel industry
went through a rough patch between FY00 to FY04 owing to KEY POINTS
factors like the Asian financial crisis, Afghan war, Middle East
unrest, September 11 attacks, SARS and domestic riots. Supply: Supply is catching pace. Metros will witness an
India occupies forty-sixth position among the sixty tourist oversupply situation after four to five years.
destinations in the world. A flourishing economy helped boost Demand: Largely depends on business travelers but tourist
demand for the industry. To encourage the tourism sector, the traffic is also on the rise. Demand normally spurts in the peak
government is planning to propose a conditional 10-year tax season between November and March.
holiday for all tourism projects in the country. Companies will
Barriers to entry: High capital costs, poor infrastructure
enjoy full tax exemption up to 50% of profits, but will qualify
facilities and scarcity of land especially in the metros.
for tax benefits for the remaining amount only if they re-invest
it in tourism projects. The Centre and States are also working Bargaining power of suppliers: Limited due to higher
out a PPP (Public-Private-Partnership) model to increase hotel competition, especially in the metros.
capacity. Efforts to diversify tourist attractions by offering Bargaining power of customers: Higher in metro cities
new products such as wellness tourism, medical tourism and due to increasing room supply.
golf tourism are expected to have a positive effect on both
Competition: Intense in metro cities, slowly picking up in
foreign tourist arrivals and domestic tourism.
secondary cities. Competition has picked up due to the entry
The five star hotel segment has grown the fastest during the of foreign hotel chains.
last five years clocking a CAGR of 12%. Further this segment
can be divided into 3 sub-segments namely Luxury, Business
and Leisure. The growth in this segment indicates the type of CURRENT SCENARIO AND PROSPECTS
travelers coming into the country. According to the 2002 estimates of the World Tourism
Organisation (WTO), international tourist inflow in India by 2020
FY08 would be 10 m, which means the tourist influx has to grow at
a CAGR of 6.5% for the next 14 years. This makes the country
India continued to witness cheering trends in the tourism sector one of the fastest growing tourist destinations in the world
in 2007 with 5.2 m tourists visiting the country, registering a second only to China. As of FY08, the increase in the tourist
growth of 11% YoY. The Indian hospitality sector continued to arrivals is well inline with the WTO estimates.
be the forerunner of India's economic growth with support
India accounts for 0.5% of world tourism. Strong GDP growth,
from the government. In the Budget 2007, five-year tax holidays
improving infrastructure, confidence in the country's economic
for new star-category hotels and convention halls coming up
prospects, open sky policy and the 'Incredible India' campaign
in the National Capital Region by 2010 were announced. The
has improved the outlook for India. This positive outlook would
Ministry has sanctioned 225 projects and utilised Rs.4.6 bn
increase the tourist arrival in the country and the hotel industry
for upgradation of infrastructure facilities at important tourist
is expected to be the major beneficiary. Even domestic tourism
destinations. Even public-private partnership is being planned
is gaining momentum. Rising disposable incomes, cheaper
to develop infrastructure projects. As a result of the high room
airfares and better connectivity would continue to increase
rates in branded hotels, unregulated, unorganised hotels and
the demand for rooms.
guesthouse segments have emerged. Even the existing hotel
players entered new segments like budget hotel and service Many international hotel chains either have or are on the look
apartments. out for setting up shop in the country. Companies like the Hilton
and Hyatt group have already tied up with local giants East
However, in the beginning of the year, the global crisis,
India Hotels and Asian Hotels. Others like Four Seasons, are
slowdown in corporate earnings and rising air fares affected
on the lookout for a partner or would be setting up their own
the hotel sector to a certain extent. Occupancy levels at hotels
hotels, government permitting. This clearly shows that India is
catering to business travellers have dropped 5% to 10% since
on the international tourism radar.
the end of January. With the dip in occupancy levels and new
supply coming in certain destinations, the room rates Although prospects are promising, as mentioned earlier, any
witnessed a marginal increase, which was much slower than change in the global geo-political situations can and have
what was witnessed last year. Further, with hotel rooms in adversely affected the performance of this sector. Also, the
India being relatively more expensive (last year was unusual heightened demand for land, especially from real estate players
when tariffs rose by 25%), a slowdown was inevitable. has led to a steep escalation in the prices. Also, shortage of
Average room rates (ARRs) in the branded hotel category in manpower is going to be a huge challenge going forward.
India have increased 280% in the past three years, as per Hotel players with a diversified portfolio across different
HVS International. Bangalore saw a decline in room rates, segments are likely to be the key beneficiaries. This should
while Mumbai and Delhi witnessed a 15% to 18% increase as be one of the determining factors while investing in this sector.
compared to more than 30% hikes witnessed in FY07. Going
forward, the prices will soften by the end of the year as the
supplies would start coming in from FY09, which would bring
tariffs to a more realistic level.
The Planning Commission's High Level Group on services
sector has pegged the room shortage in the country at 150,000
rooms by 2010, out of which more than 100,000 will be in the
budget category. Not only the Indian hotel majors, but even
international players have lined up huge capex plans.
150
 HOTELS
GLOBAL COMPARISON
FY08/CY07 Units Intercontinental Mariott Choice IHCL EIH
Rooms Nos 585,000 535,000 450,000 10,291 3,193
Revenues US$ m 1,773 12,990 616 728 289
Operating margins % of sales 39.1 10.7 31.5 29.9 33.8
Profit after tax US$ m 464 696 111 89 55
Net margin % of sales 26.2 5.4 18.0 12.2 19.1
Revenues from own properties % of sales 13.1 10.0 NA 61.0 97.0
Return on asset % 12.8 7.8 33.8 5.2 8.5
Debt/equity No 18.9 2.0 1.7 1.4 0.7
Book value per share US$ 0.3 4.0 2.5 0.8 0.8

INTERCONTINENTAL (UK)

Intercontinental Hotels Group PLC, through subsidiaries, engages in owning, managing, leasing, and franchising
hotels and guest rooms worldwide. As of December 31, 2007, it had 4,046 hotels and 585,000 guest rooms in
approximately 100 countries and territories. The group owns a portfolio of hotel brands, including InterContinental
Hotels & Resorts, Crowne Plaza Hotels & Resorts, Holiday Inn Hotels and Resorts, Holiday Inn Express, Staybridge
Suites, Candlewood Suites and Hotel Indigo. It also manages a hotel loyalty program, Priority Club Rewards. The
company's newest brand, Hotel Indigo, targets mid-market travelers with upscale appointments. It has moved from
investing heavily in hotel properties to the hotel franchise and management model with only a few owned assets.
Since 2003 it has sold 2.9 bn worth of property . It plans to add around 0.2 m rooms in the next couple of years.
InterContinental Hotels Group was founded in 1967 and is headquartered in Windsor, the United Kingdom.

MARRIOTT INTERNATIONAL (US)

Marriott International is a leading lodging company with 19 brands. The company is one of the world's leading
hoteliers with nearly 3,000 operated or franchised properties in more than 67 countries. Marriott's hotels include
such full-service brands as Renaissance Hotels and its flagship Marriott Hotels & Resorts, as well as select-
service and extended-stay brands Courtyard and Fairfield Inn. It also owns the Ritz-Carlton luxury chain and resorts.
Other brands include Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Bulgari. It also develops
and operates vacation ownership resorts under the Marriott Vacation Club, Horizons, The Ritz-Carlton Club and
Grand Residences by Marriott brands; In fiscal year 2007, Marriott International reported sales from continuing
operations of US$ 13 bn. The company's worldwide pipeline of hotels under construction, awaiting conversion or
approved for development increased to a record 125,000 rooms compared to 100,000 rooms a year ago. Its
heritage can be traced to a small root beer stand opened in Washington, D.C. in 1927 by J. Willard and Alice S.
Marriott.

CHOICE HOTELS (US)

Choice Hotels is a leading hotel franchisor with more than 5,500 locations in the US and about 40 other
countries. Built on the foundation of the venerable Quality Inn brand a pioneer in consistent mid-priced lodging,
Choice Hotels today is the worldwide franchisor of Cambria Suites, Comfort Inn, Comfort Suites, Quality, Sleep
Inn, Clarion, MainStay Suites, Suburban Extended Stay Hotel, Econo Lodge, and Rodeway Inn brand hotels. Its
flagship brands include Comfort Inn, one of the largest limited-service brands with about 2,400 properties. The
company was started in 1939 in Maryland as Quality Courts United. In order to better reflect its growing number
of brands and its presence in other countries, the company changed its name to Choice Hotels International in
1990.

Source: Yahoo Finance, Company reports TTM - Trailing twelve months

151
 Regd off: 4, Mangoe Lane, Kolkata - 700 001
EIH LIMITED E-Mail: isdho@eihho.com
Web site: www.oberoihotels.com
Telephone: (033) 2248 6751 Fax: (033) 2248 6785
HOTELS OBEROI Tr agent: In-house
Chairman: P. R. S. Oberoi SEC: G. Ganguli AUD: Ray & Ray
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1949 500840 EIH:IN 2 144.6 20.0 27.1 25.7 19.8 1.2 56,820.6 33.9 INE230A01023
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 46.4% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 1,770 (Rs)
Indian inst/Mut Fund : 15.4% Fx inflow Rs m 5,973 280
FIIs/GDR : 3.4% Fx outflow Rs m 2,339
Free float : 34.8% Net fx Rs m 3,634
Shareholders : 69,124
220
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
160
High Rs 764 115 247
Low Rs 307 68 91
Sales per share Rs 155.3 25.6 29.5
Earnings per share Rs 37.3 5.0 5.6 100
Cash flow per share Rs 46.7 6.6 7.3 DAILY
Dividends per share Rs 10.00 1.40 1.80
100 DMA
Dividend yield (eoy) % 1.9 1.5 1.1
40
Book value per share Rs 186.5 28.2 31.8
Shares outstanding (eoy) m 52.39 392.95 392.95 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - FV2,B1:1 -
Price / Sales ratio x 3.4 3.6 5.7 No. of months 12 12 12
Avg P/E ratio x 14.4 18.2 30.0 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 11.5 14.0 23.2
Price / Book Value ratio x 2.9 3.2 5.3 From Operations Rs m 2,635 2,142 2,759
Dividend payout % 26.8 27.9 31.9 From Investments Rs m -1,041 -2,621 -2,454
Avg Mkt Cap Rs m 28,055 35,955 66,409 From Financial Activity Rs m -1,651 357 -531
No. of employees `000 8 8 9 Net Cashflow Rs m -57 -122 -226
Total wages/salary Rs m 1,667 1,989 2,334
Avg. sales/employee Rs Th 1,011.1 1,228.7 1,262.1 INTERIM RESULTS
Avg. wages/employee Rs Th 207.2 243.4 254.4 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 242.7 241.6 241.3 Net sales Rs m 2,159 3,086 3,399 2,363
Gross profit Rs m 571 1,300 1,533 709
INCOME DATA Gross profit margin % 26.4 42.1 45.1 30.0
Net Sales Rs m 8,135 10,042 11,580 Net profit Rs m 318 779 828 380
Other income Rs m 537 1,101 1,326 Net profit margin % 14.7 25.2 24.4 16.1
Total revenues Rs m 8,672 11,143 12,906
Gross profit Rs m 2,719 3,212 3,936 KEY DATA
Depreciation Rs m 494 602 653 Parameters Unit FY06 FY07 FY08
Interest Rs m 1,039 1,147 904 Rooms No 2,137 2,137 2,137
Profit before tax Rs m 1,723 2,564 3,705 Rooms revenue % of sales 49.2 50.2 51.3
Minority Interest Rs m -16 -41 -57 F&B % of sales 38.9 38.0 36.6
Prior Period Items Rs m 0 0 0 Average rooms rates Rs 5,542 8,761 10,606
Extraordinary Inc (Exp) Rs m 951 443 -34 Occupancy rate % 68.0 70.0 68.0
Tax Rs m 705 991 1,400
NOTES
Profit after tax Rs m 1,953 1,975 2,214
Gross profit margin % 33.4 32.0 34.0 East India Hotels (EIH) is a member of the Oberoi Group that runs and manages
Effective tax rate % 40.9 38.7 37.8 luxury hotels in India and abroad. The total number of rooms (managed and owned)
stood at around 3,193 in FY08. While the promoters hold 46% stake in the company,
Net profit margin % 24.0 19.7 19.1
ITC (the cigarette manufacturer with large interest in the hospitality sector) holds
BALANCE SHEET DATA 14.9% stake. EIH's property mix is comparatively at a premium to Indian Hotels (Taj)
and ITC (Welcome and Sheraton to name a few). The company recently terminated
Current assets Rs m 4,738 3,703 3,814 its strategic alliance with Hilton International for marketing and co- branding "Trident
Current liabilities Rs m 3,085 2,523 3,038 Hilton" brand in India.
Net working cap to sales % 20.3 11.8 6.7
Current ratio x 1.5 1.5 1.3 EIH's property mix is skewed towards luxury travelers in the business and leisure
Inventory Turnover Days 22 12 12 segments. Its presence in key gateway cities led to the topline growth of 15% YoY in
Debtors Turnover Days 47 43 41 FY08. The company has been successful in managing costs. Operating margins
Net fixed assets Rs m 15,511 17,149 19,686 expanded by 2% and stood at 34% in FY08 on the back of operating leverage. The
Share capital Rs m 524 786 786 profits excluding the extraordinary item were up 12% YoY.
"Free" reserves Rs m 6,759 8,242 9,620
EIH has announced several new ventures going forward. It aims to add 2,300 rooms
Net worth Rs m 9,769 11,075 12,491 in India and abroad through 10 projects within the next 3 to 4 years with an
Long term debt Rs m 14,403 14,994 14,844 investment of Rs 15 m per room including all the back-end support. The termination
Total assets Rs m 22,357 24,059 26,195 of alliance with Hilton took place as Hilton entered into a joint venture for its three star
Interest coverage x 2.7 3.2 5.1 garden inns with another company. This would lead to a low grading of EIH's five star
Debt to equity ratio x 1.5 1.4 1.2 hotels and also pose competition. EIH has invested more than US$ 1 m for
Sales to assets ratio x 0.4 0.4 0.4 rebranding Trident Hilton as Trident and is confident of its success. Though the
Return on assets % 12.4 12.0 11.4 expansion plans would help the company benefit from the sector scenario, the
Return on equity % 20.0 17.8 17.7 execution risk remains.
Return on capital % 15.3 15.8 16.5
Exports to sales % 0.0 0.0 0.0
Imports to sales % 3.6 9.2 15.3
GET MORE INFO AT WWW.EQUITYMASTER.COM

152
 Regd off: The Leela Kempinski, Sahar, Mumbai - 400 059
HOTEL LEELAVENTURE LIMITED E-Mail: dinesh.kalani@theleela.com
Web site: www.theleela.com
Telephone: (022) 6691 1182/83 Fax: (022) 6691 1458
HOTELS MISCELLANEOUS Tr agent: Sharepro Services, Satam Est., 3rd Flr., C. G. Rd., Chakala, Mumbai - 99
Chairman: C. P. Krishnan Nair SEC: Dinesh Kalani AUD: Picardo & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1982 500193 LELA:IN 2 33.8 -0.1 -23.3 8.6 6.6 1.5 12,751.4 1,087.5 INE102A01024
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 49.8% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 365 (Rs)
Indian inst/Mut Fund : 7.6% Fx inflow Rs m 3,243 89
FIIs/GDR : 6.8% Fx outflow Rs m 515 DAILY
Free float : 35.8% Net fx Rs m 2,728
100 DMA
Shareholders : 184,682
73
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
57
High Rs 395 90 76
Low Rs 150 42 38
Sales per share Rs 46.6 11.2 13.6
Earnings per share Rs 9.6 3.4 3.9 41
Cash flow per share Rs 14.3 4.4 5.1
Dividends per share Rs 2.00 0.15 0.50
Dividend yield (eoy) % 0.7 0.2 0.9 25
Book value per share Rs 106.2 24.3 24.6
Shares outstanding (eoy) m 73.71 370.30 377.82 Sep-08 Jun-08 Mar-08 Nov-08 Sep-08
Bonus/Rights/Conversions BC FV2,BC FCCB
Price / Sales ratio x 5.9 5.9 4.2 No. of months 12 12 12
Avg P/E ratio x 28.5 19.4 14.5 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 19.1 14.9 11.1
Price / Book Value ratio x 2.6 2.7 2.3 From Operations Rs m 1,854 1,902 1,202
Dividend payout % 20.9 4.4 12.7 From Investments Rs m -3,866 -1,279 -8,638
Avg Mkt Cap Rs m 20,086 24,440 21,536 From Financial Activity Rs m 3,120 -2,145 10,268
No. of employees `000 2 2 3 Net Cashflow Rs m 1,107 -1,522 2,832
Total wages/salary Rs m 489 613 831
Avg. sales/employee Rs Th 1,691.1 2,047.3 1,928.8 INTERIM RESULTS
Avg. wages/employee Rs Th 240.9 302.0 311.5 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 347.3 620.7 556.6 Net sales Rs m 1,001 1,430 1,547 1,241
Gross profit Rs m 473 739 550 545
INCOME DATA Gross profit margin % 47.3 51.7 35.6 43.9
Net Sales Rs m 3,433 4,156 5,146 Net profit Rs m 401 550 280 334
Other income Rs m 206 366 745 Net profit margin % 40.1 38.5 18.1 26.9
Total revenues Rs m 3,639 4,522 5,891
Gross profit Rs m 1,623 1,928 2,276 KEY DATA
Depreciation Rs m 349 377 453 Parameters Unit FY06 FY07 FY08
Interest Rs m 377 449 335 Rooms No 867 1,086 1,086
Profit before tax Rs m 1,103 1,468 2,233 Rooms revenue % of sales 65.5 66.8 67.6
Minority Interest Rs m 0 0 0 F&B % of sales 25.8 25.4 25.3
Prior Period Items Rs m 0 -6 -16 Average rooms rates Rs 9,554 11,256 12,157
Extraordinary Inc (Exp) Rs m -14 415 0 Occupancy rate % 75.4 75.3 74.7
Tax Rs m 384 617 732
NOTES
Profit after tax Rs m 705 1,260 1,485
Gross profit margin % 47.3 46.4 44.2 Hotel Leelaventure (HLVL) owns a chain of premium hotels across the Western and
Effective tax rate % 34.8 42.0 32.8 Southern regions of India. The company has emerged as one of the major players in
the premium segment of the hospitality business and currently operates four
Net profit margin % 20.5 30.3 28.9
properties, one each in Mumbai, Goa, Kovalam and Bangalore. During the period
BALANCE SHEET DATA between FY04 and FY08, the company grew its revenues and net profits at
compounded rates of 27% and 109% respectively. It has lined up new properties in
Current assets Rs m 4,023 2,371 5,894 Chennai, Hyderabad and Pune. This will take the total room inventory from the
Current liabilities Rs m 1,098 1,260 2,061 current levels of 1,140 rooms to 2,580 rooms by 2011. The company has earmarked
Net working cap to sales % 85.2 26.7 74.5 capital expenditure to the tune of US$ 500 m towards this expansion.
Current ratio x 3.7 1.9 2.9
Inventory Turnover Days 30 30 27 For FY08, the topline registered a growth of 23.8% YoY. Bangalore (contributes 50%
Debtors Turnover Days 30 38 27 of the Leela's revenues) witnessed slowdown on account of the global crisis, new
Net fixed assets Rs m 16,770 18,642 26,737 room supply and rising airfares, As a result, the occupancy rates declined to 74%
Share capital Rs m 737 741 756 (75% in FY07) and the room rates grew by 8% YoY as compared to 18% last year.
"Free" reserves Rs m 4,906 6,079 6,349 The operating margins stood at 45% in FY08.
Net worth Rs m 7,826 8,982 9,300 With a chunk of its revenues coming from Bangalore, the company is witnessing
Long term debt Rs m 9,913 9,118 18,804 increased pressure. Though it is expanding its presence in other locations, the
Total assets Rs m 20,794 21,013 32,632 concentrated risk continues to be high. Given the weak macro economic signals, the
Interest coverage x 3.9 4.3 7.7 business-tourist air-traffic growth has slowed down to 11% to 12% in 1QCY08 as
Debt to equity ratio x 1.3 1.0 2.0 compared to 15% in 1QCY07. This coupled with the fact that the addition of rooms is
Sales to assets ratio x 0.2 0.2 0.2 set to increase, we believe that Hotel Leela would continue to witness pressure in the
Return on assets % 6.1 9.4 6.5 coming quarters.
Return on equity % 9.0 14.0 16.0
Return on capital % 8.3 12.9 9.1
Exports to sales % 0.0 0.0 0.0
Imports to sales % 7.4 9.6 7.1
GET MORE INFO AT WWW.EQUITYMASTER.COM

153
 Regd off: Mandlik House, Mandlik Road, Mumbai - 400 001
INDIAN HOTELS CO. LIMITED E-Mail: shares.dept@tajhotels.com
Web site: www.tajhotels.com
Telephone: (022) 6639 5515 Fax: (022) 2202 7442
HOTELS TATA Tr agent: In-house
Chairman: Ratan N. Tata SEC: P. Sanker AUD: S. B. Billimoria & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1958 500850 IH:IN 1 76.2 -13.4 -34.8 15.5 10.9 2.5 55,123.5 156.3 INE053A01029
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 29.5% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 459 (Rs)
Indian inst/Mut Fund : 25.3% Fx inflow Rs m 8,105 170
FIIs/GDR : 19.3% Fx outflow Rs m 830
Free float : 25.8% Net fx Rs m 7,275
Shareholders : 148,846
140
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
High Rs 1,376 164 178
110
Low Rs 600 83 100
Sales per share Rs 324.2 42.7 48.4
Earnings per share Rs 43.9 6.3 5.9 80 DAILY
Cash flow per share Rs 64.7 8.9 8.4
Dividends per share Rs 13.00 1.60 1.90 100 DMA
Dividend yield (eoy) % 1.3 1.3 1.4
50
Book value per share Rs 339.1 35.5 37.5
Shares outstanding (eoy) m 56.67 586.63 602.85 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions BC FV1,BC R1:5
Price / Sales ratio x 3.0 2.9 2.9 No. of months 12 12 12
Avg P/E ratio x 22.5 19.6 23.6 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 15.3 13.9 16.6
Price / Book Value ratio x 2.9 3.5 3.7 From Operations Rs m 4,529 6,703 5,837
Dividend payout % 29.6 25.4 32.3 From Investments Rs m -2,114 -10,977 -16,510
Avg Mkt Cap Rs m 55,990 72,449 83,796 From Financial Activity Rs m -2,638 1,484 11,273
No. of employees `000 9 10 NA Net Cashflow Rs m -223 -2,791 600
Total wages/salary Rs m 4,846 6,527 7,841
Avg. sales/employee Rs Th 2,148.1 2,501.8 NA INTERIM RESULTS
Avg. wages/employee Rs Th 566.6 651.5 NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 290.8 369.5 NA Net sales Rs m 3,414 5,206 5,560 3,769
Gross profit Rs m 989 2,446 2,484 1,167
INCOME DATA Gross profit margin % 29 47 44.7 31
Net Sales Rs m 18,373 25,063 29,200 Net profit Rs m 532 1,345 1,350 672
Other income Rs m 786 1,261 715 Net profit margin % 15.6 25.8 24.3 17.8
Total revenues Rs m 19,159 26,324 29,915
Gross profit Rs m 5,397 7,679 9,387 KEY DATA
Depreciation Rs m 1,178 1,524 1,487 Parameters Unit FY06* FY07* FY08*
Interest Rs m 1,456 1,701 2,203 Rooms No 3,088 3,848 3,434
Profit before tax Rs m 3,549 5,715 6,412 Rooms revenue % of sales 51.9 54.7 55.5
Minority Interest Rs m -144 -201 -227 F&B % of sales 37.4 33.7 33.2
Prior Period Items Rs m 0 -4 -44 Average rooms rates Rs 7,187 9,234 10,674
Occupancy rate % 70.0 73.0 73.0
Extraordinary Inc (Exp) Rs m -14 154 -165
*standalone
Tax Rs m 904 1,962 2,426
NOTES
Profit after tax Rs m 2,487 3,702 3,550
Indian Hotels Company (IHCL) is the largest hotel company in India in terms of
Gross profit margin % 29.4 30.6 32.1
number of rooms and revenue. It owns/manages 10,291 rooms across several cities
Effective tax rate % 25.5 34.3 37.8 in India and in international destinations in the luxury, business and leisure segments.
Net profit margin % 13.5 14.8 12.2 On a standalone basis, it has 3,434 rooms. It operates under the 'Taj' brand and has
BALANCE SHEET DATA presence across 39 different cities. While IHCL is the largest player in India it also
has properties in overseas locations such as Maldives, Mauritius, the US, the UK and
Current assets Rs m 8,188 6,952 8,850 Australia. Apart from premium and luxury segment, IHCL has identified mid-market
Current liabilities Rs m 5,384 6,527 6,583 hotels, budget hotels, service apartments, wilderness lodges and health spas as
Net working cap to sales % 15.3 1.7 7.8 growth segments.
Current ratio x 1.5 1.1 1.3
Inventory Turnover Days 7 7 7 IHCL registered a 17% YoY and 21% YoY growth in topline and bottomline (excl
Debtors Turnover Days 27 30 26 extraordinary) for FY08. The margins increased by 1.5% due to decline in all the cost
heads (as percentage of sales). 60% of its revenues accrued from the standalone
Net fixed assets Rs m 24,588 35,566 39,495
business while the remaining from its group properties. The company has benefited
Share capital Rs m 567 587 603
immensely from operating leverage and considering the buoyancy in the Indian
"Free" reserves Rs m 16,353 17,234 19,436 hospitality market growth is likely to continue in the future. The company added 720
Net worth Rs m 19,216 20,839 22,599 rooms across its group properties. In the last two years bought, it has some iconic
Long term debt Rs m 13,817 18,264 19,375 properties like The Pierre, Carl Ritz and Blue, Ritz Boston and Campton Place to
Total assets Rs m 43,061 52,294 68,393 increase its presence in the international markets.
Interest coverage x 3.4 4.4 3.9
Debt to equity ratio x 0.7 0.9 0.9 With favourable demand supply gap prevailing in the country, the companies are
Sales to assets ratio x 0.4 0.5 0.4 expanding their capacity. IHCL plans to add nearly 8,500 rooms over the next four
Return on assets % 11.9 13.8 13.7 years. While 40% will come through budget hotels, 30% will be part of management
Return on equity % 12.9 17.8 15.7 contracts. For FY09 alone, it has lined up an expansion plan of 2,100 rooms across
Return on capital % 14.7 18.8 19.5 16 properties, with majority of them being in the domestic market. The cost of the
expansion has been estimated at Rs 14 bn.
Exports to sales % 0.0 0.0 0.0
Imports to sales % 0.9 1.0 1.6
GET MORE INFO AT WWW.EQUITYMASTER.COM

154
 Regd off: Taj Krishna, Road No. 1, Banjara Hills, Hyderabad - 500 034
TAJ GVK HOTELS & RESORTS LTD. E-Mail: balakrishna.kamath@tajhotels.com
Web site: www.tajhotels.com
Telephone: (040) 6666 2323 Fax: (040) 6666 1313
HOTELS GVK Reddy (Novopan) Group Tr agent: Sathguru Mgmt. Consultants, 15, Hindi Nagar, Punjagutta, Hyderabad - 34
Chairman: G. V. Krishna Reddy SEC: S. B. Kamath AUD: Brahmayya & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1999 532390 TAJG:IN 2 90.1 -2.4 -36.2 8.0 6.9 3.6 5,646.2 5.5 INE586B01026
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 74.6% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 81 (Rs)
Indian inst/Mut Fund : 6.8% Fx inflow Rs m 902 350
FIIs/GDR : 3.4% Fx outflow Rs m 104
Free float : 15.3% Net fx Rs m 798 DAILY
Shareholders : 48,634 100 DMA
280
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
210
High Rs 278 344 205
Low Rs 64 156 100
Sales per share Rs 30.1 38.7 41.1
Earnings per share Rs 7.4 10.3 11.2 140
Cash flow per share Rs 9.1 12.0 13.1
Dividends per share Rs 2.00 3.00 3.20
Dividend yield (eoy) % 1.2 1.2 2.1
70
Book value per share Rs 23.6 29.2 36.9
Shares outstanding (eoy) m 62.70 62.70 62.70 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions FV2 - -
Price / Sales ratio x 5.7 6.5 3.7 No. of months 12 12 12
Avg P/E ratio x 23.2 24.4 13.6 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 18.8 20.8 11.7
Price / Book Value ratio x 7.3 8.6 4.1 From Operations Rs m 571 717 792
Dividend payout % 27.1 29.3 28.5 From Investments Rs m -469 -349 -732
Avg Mkt Cap Rs m 10,722 15,675 9,562 From Financial Activity Rs m 27 -258 -200
No. of employees `000 1 2 2 Net Cashflow Rs m 129 110 -139
Total wages/salary Rs m 271 319 352
Avg. sales/employee Rs Th 1,285.0 1,518.1 1,609.4 INTERIM RESULTS
Avg. wages/employee Rs Th 184.4 199.4 220.0 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 314.3 401.9 440.0 Net sales Rs m 592 704 714 585
Gross profit Rs m 278 327 356 263
INCOME DATA Gross profit margin % 47.0 46.4 49.9 45.0
Net Sales Rs m 1,889 2,429 2,575 Net profit Rs m 162 191 200 151
Other income Rs m 4 13 16 Net profit margin % 27.4 27.1 28.0 25.8
Total revenues Rs m 1,893 2,442 2,591
Gross profit Rs m 844 1,138 1,210 KEY DATA
Depreciation Rs m 109 112 115 Parameters Unit FY06 FY07 FY08
Interest Rs m 40 31 28 Rooms No 684 684 684
Profit before tax Rs m 699 1,008 1,083 Rooms revenue % of sales 58.9 61.6 58.7
Minority Interest Rs m 0 0 0 F&B % of sales 35.4 37.4 40.5
Prior Period Items Rs m 0 -7 0 Average rooms rates Rs 5,968 7,700 7,745
Extraordinary Inc (Exp) Rs m 0 0 0 Occupancy rate % 80.0 78.0 78.1
Tax Rs m 237 358 379
NOTES
Profit after tax Rs m 462 643 704
Gross profit margin % 44.7 46.9 47.0 Hyderabad-based Taj GVK Hotels is a joint venture between the Tatas (26% stake by
Effective tax rate % 33.9 35.5 35.0 Indian Hotels) and the GVK Group. The company, with 684 rooms, operates four
luxury hotels - three in Hyderabad (534 rooms) and one in Chandigarh (150 ooms).
Net profit margin % 24.5 26.5 27.3
In Hyderabad, the company operates the Taj Krishna - its flagship luxury hotel, Taj
BALANCE SHEET DATA Residency and Taj Banjara (both business hotels). Taj GVK Chandigarh is one of the
2 five star hotels in Chandigarh. At present, 78% of the room capacity of Taj GVK is
Current assets Rs m 627 619 503 located in Hyderabad and it derives majority of its revenues from the city.
Current liabilities Rs m 507 669 672
Net working cap to sales % 6.4 -2.1 -6.6 Taj GVK reported a 6% YoY growth in topline for FY08 led by 1% YoY growth in room
Current ratio x 1.2 0.9 0.7 rates. The operating margins remained flat at 47%. The bottomline for the whole year
Inventory Turnover Days 5 5 6 grew by 9.5% YoY. On account of lower growth in the topline, the bottomline has also
Debtors Turnover Days 14 9 8 witnessed a subdued growth.
Net fixed assets Rs m 2,139 2,697 3,314
The company has ambitious expansion plans to be executed over the next 4 years in
Share capital Rs m 125 125 125
the cities of Chennai, Hyderabad and Bangalore. Through a mix of greenfield and
"Free" reserves Rs m 1,017 1,360 1,830
brownfield projects it would add 650 rooms in the next three years. This would take
Net worth Rs m 1,478 1,832 2,311 the total room inventory from the current levels of 684 to 1,334 in FY11. For this
Long term debt Rs m 531 531 601 expansion purpose, it has earmarked a figure of Rs 4.4 bn, which will be funded by
Total assets Rs m 2,906 3,316 3,817 a mix of debt and internal accruals. This expansion is likely to be beneficial for Taj
Interest coverage x 18.5 33.5 39.7 GVK in maintaining its growth run in the future, considering that the hospitality
Debt to equity ratio x 0.4 0.3 0.3 industry in India is witnessing a supply crunch with demand for rooms far
Sales to assets ratio x 0.7 0.7 0.7 outperforming supply. However, there is an execution risk attached to this expansion
Return on assets % 25.0 28.5 25.1 going forward.
Return on equity % 31.3 35.1 30.5
Return on capital % 36.8 43.7 38.2
Exports to sales % 0.0 0.0 0.0
Imports to sales % 1.5 3.2 3.1
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155
 INVESTMENT & FINANCE
With the country's largest development financial institutions
(DFIs) like ICICI and IDBI having been converted into banking
entities, the term DFI has lost its relevance in the country.
Institutions that today have replaced them in playing a vital
role in long-term financing and project financing are the NBFCs,
which have their relative specializations, for e.g. HDFC
(mortgage loans), IDFC (infrastructure loans) and Mahindra
Finance, Shriram Transport Finance (auto loans). The trend of
segmental monopoly is now changing with banks entering long
term finance and FIs also meeting the medium and short - term
needs of the business masses.
Non Banking Financial Companies (NBFCs) have come a long
way from the era of concentrated regional operations, lesser
credibility and poor risk management practices to highly
sophisticated operations, pan-India presence and most
importantly an alternate choice of financial intermediation.
Today, NBFCs are present in the competing fields of vehicle
financing, housing loans, hire purchase, lease and personal
loans. More often than not, NBFCs are present where the risk
is higher (and hence the returns), reach is required (strong
last-mile network), recovery needs to be the focus area, loan-
ticket size is small, appraisal and disbursement has to be
speedy and flexibility in terms of loan size and tenor is required.
NBFCs' growth had been constrained due to lack of adequate
capital. Going forward, we believe capital infusion and
leverage thereupon would catapult NBFCs' growth in size and
scale.
NBFCs are not required to maintain cash reserve ratio (CRR)
and statutory liquid ratio (SLR). Priority sector lending norm of
40% (of total advances) is not applicable to them. While this is
at their advantage, they do not have access to low cost
demand deposits. As a result their cost of funds is always
high, resulting in thinner interest spread.
FY08
National Housing Bank (NHB) introduced 'reverse mortgage'
scheme under which a senior citizen who is owner of a house
can avail of a monthly stream of income against mortgage of
his/her house, while remaining the owner and occupying the
house throughout his/her lifetime, without repayment or
servicing of the loan. Regulations are to be put in place to
allow the creation of mortgage guarantee companies.
The Union budget had proposed to create a fund with a corpus
of Rs 1 bn to facilitate Public Private Partnership (PPP) in
infrastructure financing, which would contribute upto 75% of
preparatory expenditure in the form of interest free loan to be
recovered from the successful bidder.
The Budget also proposed that the surplus forex reserves
should be deployed in infrastructure financing schemes by
establishment of two wholly-owned overseas subsidiaries of
IIFCL.
The government eased the external commercial borrowing
(ECB) norms by allowing non-banking finance companies and
housing finance companies to raise money overseas through
FCCBs subject to RBI approval.
CURRENT SCENARIO AND PROSPECTS
The mortgage penetration continues to remain abysmally low -
in India the mortgage to GDP ratio is at around 6% (in FY08)
against over 51% in the USA. Even if one were to benchmark
against more comparable counterparts, the ratio ranges
between 15% to 20% for most South East Asian nations. Also,
mortgage credit accounted for merely 12% of total non-food
credit in FY08, despite the meteoric rise in incremental lending
156
to this segment. While changing demographics and fiscal
incentives, the mortgage sector is envisaged to witness a
healthy growth (at about 20% - 25% YoY) over the next couple
of fiscals too. Nevertheless, the spiraling property prices may
prove to be a dampener. On similar lines, the yawning gap in
infrastructure facilities calls for additional contribution from
the private sector players.
Non-banking finance companies (NBFCs) and housing finance
companies (HFCs) that were banned from accessing the
overseas market for resources by the Finance Ministry a few
years back will now be able to access low cost funds through
the FCCB route. This will not only ease pressure on their fund
mobilisation but also help improve their net interest margins
(NIMs).
Increasing the risk weightage on the home loan portfolios of
HFCs is expected to enforce a cautious stance on their part
with respect to real estate lending and encourage better risk
appraisal. The same, however, also calls for higher capital
adequacy for the housing finance companies.
Once the amendment to the SCRS for the inclusion of mortgage
backed securities (MBS) is passed, banks and housing finance
companies (HFCs) can sell MBS in the market and raise
additional funds at lower rates, which in turn would enable
them to lower the home loan rates. Through MBS, banks and
HFCs can also reduce their reinvestment risk besides shoring
up their capital to meet the capital adequacy requirements and
improve their balance sheets.
MORTGAGE AS A % OF GDP
(%)
100 84
80
80 71
60
36
40
20 6
0
India Singapore USA UK Denmark
Source: NHB
KEY POINTS
Supply : Plenty to meet personal finance needs but not
enough to meet long-term infrastructure needs.
Demand : India is a growing economy, demand for long-term
loans and personal finance is high
Barriers to entry : Licensing requirement, investment in
technology, skills required for project finance, distribution
reach.
Bargaining power of suppliers : Providers of funds could
be more demanding. As quality of services provided with
minimum time matters a lot.
Bargaining power of customers : High, as banks have
also forayed into the long-term finance.
Competition : High - There are public sector, private sector
and foreign banks along with non-banking finance companies
competing in similar business lines.
 Regd off: 14th floor. Express Towers, Nariman Piont, Mumbai - 400 021
EDELWEISS CAPITAL LIMITED E-Mail: investors@edelcap.com
Web site: www.edelcap.com
Telephone: (022) 2286 4400 Fax: (022) 2286 4438
MISCELLANEOUS MISCELLANEOUS Tr agent: Intime Spectrum, C13, Pannalal Silk Mills Compd., LBS Marg, Mumbai-78
Chairman: Rashesh C. Shah (CEO & MD) SEC: Chetan Gandhi AUD: BSR & Asso.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1995 532922 EDEL:IN 5 541.0 -14.8 NM 14.8 14.4 0.4 40,537.1 3.8 INE532F01047
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 38.1% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 0 (Rs)
Indian inst/Mut Fund : 0.2% Fx inflow Rs m 52 1900
FIIs/GDR : 6.1% Fx outflow Rs m 261
Free float : 55.5% Net fx Rs m -209
Shareholders : 187,323
1500
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
DAILY
EQUITY SHARE DATA 100 DMA
1100
High Rs NM NM 1,755
Low Rs NM NM 585
Sales per share Rs 40.8 79.3 116.1
Earnings per share Rs 10.7 24.5 36.5 700
Cash flow per share Rs 11.3 25.3 37.4
Dividends per share Rs 0.15 0.30 2.00
Dividend yield (eoy) % NM NM 0.2
300
Book value per share Rs 47.1 129.5 246.5
Shares outstanding (eoy) m 37.84 44.92 74.93 Dec-07 Feb-08 Apr-08 Jul-08 Sep-08
Bonus/Rights/Conversions FV1,PA,OI PA,ESOP PI,FV5,B
Price / Sales ratio x NM NM 10.1 No. of months 12 12 12
Avg P/E ratio x NM NM 32.1 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x NM NM 31.2
Price / Book Value ratio x NM NM 4.7 From Operations Rs m -392 -5,148 -342
Dividend payout % 1.4 1.2 5.5 From Investments Rs m -156 -363 -6,059
Avg Mkt Cap Rs m NM NM 87,672 From Financial Activity Rs m 1,065 7,526 23,192
No. of employees `000 <500 1 2 Net Cashflow Rs m 516 2,014 16,791
Total wages/salary Rs m 346 805 2,057
Avg. sales/employee Rs Th 5,233.9 4,748.0 5,173.7 INTERIM RESULTS
Avg. wages/employee Rs Th 1,172.9 1,073.3 1,223.7 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 1,376.3 1,465.3 1,625.8 Net sales Rs m 3,232 4,041 2,689
Gross profit Rs m 2,084 2,198 1,471
INCOME DATA Gross profit margin % 64.5 54.4 54.7
Net Sales Rs m 1,544 3,561 8,697 Net profit Rs m 924 826 638
Other income Rs m 36 151 2,192 Net profit margin % 28.6 20.4 23.7
Total revenues Rs m 1,580 3,712 10,889
Gross profit Rs m 734 1,821 4,359 KEY DATA
Depreciation Rs m 21 38 73 Parameters Unit FY06 FY07 FY08
Interest Rs m 54 187 2,011 Employees / Agents nos. 295 750 1,681
Profit before tax Rs m 695 1,747 4,467 Debt / Equity x 0.2 0.3 0.7
Minority Interest Rs m -38 -2 -194 Operating margin % 44.8 52.6 62.8
Prior Period Items Rs m 0 0 0 ROE % 22.8 18.9 14.8
Extraordinary Inc (Exp) Rs m -21 0 0 Net profit margin % 26.3 30.9 31.4
Tax Rs m 230 646 1,540
NOTES
Profit after tax Rs m 406 1,099 2,733
Gross profit margin % 47.5 51.1 50.1 Edelweiss is among the larger institutional brokerage firms in India, with a strong
Effective tax rate % 33.1 37.0 34.5 domestic investment-banking business. It has a 9% estimated market share in the
institutional broking segment, with a strong presence particularly in the derivatives
Net profit margin % 26.3 30.9 31.4
segment (more than 13% share). While its strengths remain in private-equity
BALANCE SHEET DATA syndication and structured finance advisory transactions, it is also strong in mergers
and acquisitions and equity capital markets. Within the capital markets segment,
Current assets Rs m 3,116 11,655 43,416 while the initial focus was on smaller domestic transactions, the company has scaled
Current liabilities Rs m 1,727 1,559 12,650 up its distribution capabilities rapidly and is focused on increasing the size of its
Net working cap to sales % 90.0 283.5 353.8 transactions.
Current ratio x 1.8 7.5 3.4
Inventory Turnover Days 332 590 406 Edelweiss grew its fee and trading revenues by 105% and 206% YoY respectively in
Debtors Turnover Days 86 60 75 FY08. The company's bottomline grew by 149% YoY. It had a 40 member-strong
Net fixed assets Rs m 67 170 434 research team (total employee base 1,610) and over 200 stocks under coverage at
Share capital Rs m 38 45 375 the end of FY08. Edelweiss also has a strong focus on quantitative and alternative
"Free" reserves Rs m 1,721 5,637 17,727 research, along with fundamental research. Historically, Edelweiss' strength has been
its derivatives business, where it has an estimated healthy 13% to 14% market share
Net worth Rs m 1,784 5,818 18,473
based on volumes. It started its broking business by focusing on the derivatives
Long term debt Rs m 171 2,031 7,951
segment, and has rapidly expanded its cash equities business over the past few
Total assets Rs m 3,507 12,639 51,451 years. It currently has a cash market share of 3% to 3.5% and an overall market
Interest coverage x 13.9 10.3 3.2 share of about 9% in the institutional segment. The newly started business of
Debt to equity ratio x 0.2 0.3 0.7 wholesale financing business continued to grow well and has already built up an
Sales to assets ratio x 0.4 0.3 0.2 asset base of about Rs 9 bn in FY08.
Return on assets % 23.5 16.4 18.0
Return on equity % 22.8 18.9 14.8 Edelweiss is currently advising three funds with total assets under management of
Return on capital % 35.3 24.6 23.8 over US$ 625 m. Further, the company has recently received final regulatory
Exports to sales % 0.0 0.0 0.0 approval from the SEBI to start its mutual fund business.
Imports to sales % 0.0 0.0 0.0
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157
 Regd off: Ramon House, 169, Backbay Reclamation, Mumbai - 400 020
HOUSING DEV. FIN. CORP. LTD. + $ E-Mail: investorcare@hdfc.com
Web site: www.hdfc.com
Telephone: (022) 2414 6267 Fax: (022) 2414 7301
INVESTMENT & FINANCE JOINT SECTOR Tr agent: Tel Rasayan Bhawan, Tilak Rd, Dadar TT, Mumbai - 14
Chairman: Deepak S. Parekh SEC: Girish V. Koliyote AUD: Deloitte Haskins & Sells
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1977 500010 HDFC:IN 10 2,281.0 -7.5 11.1 17.3 23.9 1.1 648,283.0 322.8 INE001A01028
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 0 (Rs)
Indian inst/Mut Fund : 10.7% Fx inflow Rs m 177 3500
FIIs/GDR : 75.9% Fx outflow Rs m 1,237
Free float : 13.5% Net fx Rs m -1,060
Shareholders : 111,064
2825
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
2150
High Rs 1,420 1,825 3,257
Low Rs 680 962 1,397
Income per share Rs 156.1 215.8 282.7
Earnings per share Rs 54.1 68.9 95.5 1475
Cash flow per share Rs 87.3 108.8 133.8
DAILY
Dividends per share Rs 20.00 22.00 25.00 100 DMA
Avg Dividend yield % 1.9 1.6 1.1
800
Book value per share Rs 197.1 254.9 450.7
Shares outstanding (eoy) m 249.56 253.01 284.04 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions ESOP BC PA,BC
Avg Price / Income ratio x 6.7 6.5 8.2 No. of months 12 12 12
Avg P/E ratio x 19.4 20.2 24.4 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
Avg P/CF ratio x 18.5 19.2 23.8
Avg Price/Bookvalue ratio x 5.3 5.5 5.2 From Operations Rs m 32,832 37,660 61,323
Dividend payout % 37.0 32.0 26.2 From Investments Rs m -18,597 -19,889 -62,253
Avg Mkt Cap Rs m 262,038 352,569 660,961 From Financial Activity Rs m -2,057 -14,629 52
No. of employees `000 1 1 1 Net Cashflow Rs m 12,178 3,143 -878
Total wages & salary Rs m 2,064 2,686 2,305
Avg. income/employee Rs Th 29,008.2 39,330.0 55,564.0 INTERIM RESULTS
Avg. wages/employee Rs Th 1,536.9 1,935.2 1,595.2 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 10,046.2 12,550.4 18,774.4 Operating income Rs m 18,886 21,504 22,402 22,199
Gross Profit Rs m 6,608 8,300 8,759 6,478
INCOME DATA Gross profit margin % 35.0 38.6 39.1 29.2
Interest income Rs m 38,958 54,590 80,290 Net profit Rs m 3,331 5,280 5,661 4,681
Other income Rs m 7,534 9,342 7,904 Net profit margin % 17.6 24.6 25.3 21.1
Interest expense Rs m 25,203 37,146 52,257
Net interest income Rs m 13,755 17,444 28,033 KEY DATA
Operating expense Rs m 5,649 6,908 7,976 Parameters Unit FY06 FY07 FY08
Gross profit Rs m 8,106 10,536 20,057 Branches nos. 219 234 250
Gross profit margin % 20.8 19.3 25.0 Employees nos. 1,343 1,388 1,445
Provisions/contingencies Rs m 693 927 681 Business / branch Rs m 2,054 2,415 2,916
Profit before tax Rs m 16,908 21,624 30,828 Profit / employee Rs m 10.0 12.6 18.8
Extraordinary Inc (Exp) Rs m 0 337 6,778 NIM % 3.5 3.7 3.8
Minority Interest Rs m -66 -70 -108
NOTES
Prior Period Items Rs m 0 0 0
Tax Rs m 3,350 4,471 10,369 HDFC, India's largest housing finance company, with strong brand equity and market
Profit after tax Rs m 13,492 17,420 27,129 share of 21%, has an extensive reach with 203 branches spread across the country
and abroad. Besides housing loans, HDFC has also been benefiting from the retail
Net profit margin % 34.6 31.9 33.8
reach of its banking subsidiary (HDFC Bank). Over the years, HDFC has emerged as
BALANCE SHEET DATA a financial conglomerate by not restricting its ambitions to just housing finance but
also venturing into new businesses like insurance, banking and asset management
Advances Rs m 460,622 578,927 747,735 (mutual funds).
Deposits Rs m 88,264 105,003 114,711
Credit/Deposit ratio x 521.9 551.3 651.8 The spike in home loan interest rates during FY08, which have not been
Yield on advances % 7.7 8.6 9.9 commensurate to the rise in income levels, has had a lagged impact on HDFC's
Cost of deposits % 6.2 8.3 8.9 incremental approvals, albeit marginally. While the approvals have grown by 29%
Net Interest Margin % 3.5 3.7 3.8 YoY, the disbursal to sanction ratio has also slowed down to 82% from 81% in FY07.
Net fixed assets Rs m 5,238 5,294 4,913 However, the steady demand for the loans helped the institution grow its loan book
Share capital Rs m 2,496 2,530 2,840 by 29% YoY in this fiscal. HDFC remains unscathed from the subprime mortgage
Free reserves Rs m 28,827 38,685 95,584 woes that lenders across the world are bearing the brunt of. Resultantly the
company's net NPAs have remained below 1% level (0.8% in FY08, 0.9% in FY07)
Net worth Rs m 49,184 64,489 128,014
in this fiscal as well. HDFC's other operating income grew by 10% YoY in FY08 due
Borrowings Rs m 818,809 1,002,098 1,318,179
to the trebling of surplus cash deployed with the mutual funds. The same may,
Investments Rs m 57,940 87,504 154,433 however, not be sustainable going forward. The unrealised gains on its listed
Total assets Rs m 579,321 733,981 969,420 investments at the end of the March quarter stood at Rs 360 per share of HDFC.
Debt/equity ratio x 18.4 17.2 11.2
Return on assets % 2.3 2.4 2.8 While we believe that HDFC will continue to be one of the strongest players in the
Return on equity % 27.4 27.0 21.2 mortgage finance industry, being a single-product entity and countering competition
Capital adequacy ratio % 13.3 12.9 16.8 from peers may cause some hiccups in the times to come. Notwithstanding the fact
Net NPAs % 0.2 0.2 0.2 that our concerns with respect to quality of real estate loans were vindicated in FY08,
we see improving prospects for the institution given its risk averseness, in the
medium to long term.
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158
 Regd off: 75 Nirlon Complex, Off. Western Exp. Highway, Goregoan(E), Mumbai-63
INDIA INFOLINE LTD. E-Mail: shareholders@indiainfoline.com
Web site: www.indiainfoline.com
Telephone: (022) 2596 3838 Fax: (022) 2685 0451
MISCELLANEOUS MISCELLANEOUS Tr agent: Intime Spectrum, C13, Pannalal Silk Mills Compd., LBS Marg, Mumbai- 78
Chairman: Nirmal Jain (MD) SEC: Nimish Mehta AUD: Sharp & Tannan Associates
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1995 532636 IIFL:IN 2 131.7 -11.1 -3.2 23.5 20.0 4.6 37,619.0 169.4 INE530B01024
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 33.4% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 0 (Rs)
Indian inst/Mut Fund : 8.9% Fx inflow Rs m 34 440
FIIs/GDR : 26.6% Fx outflow Rs m 27
Free float : 31.1% Net fx Rs m 7
Shareholders : 20,678
330
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
220
High Rs 200 399 1,975
Low Rs 74 87 322
Sales per share Rs 47.3 83.8 178.7
Earnings per share Rs 10.9 15.1 28.0 110
Cash flow per share Rs 12.8 18.0 33.0
DAILY
Dividends per share Rs 3.00 3.00 6.00 100 DMA
Dividend yield (eoy) % 2.2 1.2 0.5
0
Book value per share Rs 43.1 64.8 310.1
Shares outstanding (eoy) m 45.10 50.17 57.10 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions PI,PA BC,ESOP WC,PA,BC
Price / Sales ratio x 2.9 2.9 6.4 No. of months 12 12 12
Avg P/E ratio x 12.6 16.1 41.0 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 10.7 13.5 34.8
Price / Book Value ratio x 3.2 3.8 3.7 From Operations Rs m -1,147 198 -5,405
Dividend payout % 27.5 19.9 21.4 From Investments Rs m -455 -217 -9,553
Avg Mkt Cap Rs m 6,179 12,191 65,579 From Financial Activity Rs m 2,239 476 17,256
No. of employees `000 4 12 12 Net Cashflow Rs m 637 458 2,298
Total wages/salary Rs m 366 1,063 2,426
Avg. sales/employee Rs Th 514.2 357.7 723.2 INTERIM RESULTS
Avg. wages/employee Rs Th 88.2 90.5 172.0 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 118.6 64.3 113.4 Net sales Rs m 1,898 3,073 3,833 2,684
Gross profit Rs m 613 1,187 1,636 953
INCOME DATA Gross profit margin % 32.3 38.6 42.7 35.5
Net Sales Rs m 2,134 4,203 10,201 Net profit Rs m 361 651 658 495
Other income Rs m 46 55 35 Net profit margin % 19.0 21.2 17.2 18.4
Total revenues Rs m 2,180 4,258 10,236
Gross profit Rs m 823 1,357 3,988 KEY DATA
Depreciation Rs m 86 149 282 Parameters Unit FY06 FY07 FY08
Interest Rs m 65 117 913 Employees / Agents nos. 4,150 11,750 12,300
Profit before tax Rs m 718 1,146 2,828 Debt / Equity x 0.4 0.4 0.2
Minority Interest Rs m 1 0 -40 Operating margin % 38.6 32.3 39.1
Prior Period Items Rs m 0 0 0 ROE % 25.3 23.3 9.0
Extraordinary Inc (Exp) Rs m 2 0 -290 Net profit margin % 23.1 18.0 15.7
Tax Rs m 229 390 898
NOTES
Profit after tax Rs m 492 756 1,600
Gross profit margin % 38.6 32.3 39.1 India Infoline is one of the oldest and leading players in the Indian broking services
Effective tax rate % 31.9 34.0 31.8 space. Besides offering the entire gamut of financial services covering investment
products ranging from equities and derivatives, commodities and portfolio
Net profit margin % 23.1 18.0 15.7
management services, the company owns and manages the website
BALANCE SHEET DATA "www.indiainfoline.com". The company had a network of 758 business locations
spread over 346 cities across India in FY08. It catered to a customer base of over
Current assets Rs m 6,105 7,203 20,146 500,000 customers through these offices. Its market share on the NSE jumped to
Current liabilities Rs m 2,825 3,025 7,934 3.4% in FY08 from. 2.2% in FY07. This was attributed to the improved productivity of
Net working cap to sales % 153.7 99.4 119.7 the branches set up during the previous year and a greater contribution from the
Current ratio x 2.2 2.4 2.5 institutional business.
Inventory Turnover Days 0 0 0
Debtors Turnover Days 612 160 138 The company's retail client base has almost doubled from 0.2 m in FY07 to around
Net fixed assets Rs m 214 617 2,192 0.4 m in FY08. Its institutional broking arm IIFL, has entered into an exclusive
Share capital Rs m 451 502 571 partnership with Auerbach Grayson & Company Inc., a New York-based brokerage
"Free" reserves Rs m 1,447 2,676 16,375 firm to offer US investors access to investment opportunities in the Indian capital
markets. India Infoline's average daily volumes in the commodities market grew by
Net worth Rs m 1,943 3,251 17,709
44% YoY in FY08. It also launched the consumer finance business under the brand
Long term debt Rs m 399 263 2,950
name Moneyline in FY08.
Total assets Rs m 6,561 8,086 32,248
Interest coverage x 12.0 10.8 4.1 In FY09, India Infoline plans to expand into consumer finance business (expected
Debt to equity ratio x 0.4 0.4 0.2 book size in FY09 to be Rs 16.8 bn). The company has committed investment of
Sales to assets ratio x 0.3 0.5 0.3 about Rs 1.5 bn in ownership of key offices across the country. This includes a
Return on assets % 23.8 24.8 12.2 300,000 square foot facility at Chennai.
Return on equity % 25.3 23.3 9.0
Return on capital % 33.6 35.9 16.5
Exports to sales % 0.0 0.0 0.0
Imports to sales % 0.0 0.0 0.0
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 Regd off: ITC Centre, 3rd Floor, 760 Anna Salai, Chennai - 600 002
INFRASTRUCTURE DEV. FINANCE CORP. E-Mail: info@idfc.com
Web site: www.idfc.com
Telephone: (022) 6633 9100 Fax: (022) 2202 9711
INVESTMENT & FINANCE MISCELLANEOUS Tr agent: Karvy Computer, Plot 17-24, Vithalrao Nagar, Madhapur, Hyderabad-81
Chairman: Deepak Parekh SEC: Mahendra N. Shah AUD: Delloitte Haskins & Sells
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1997 532659 IDFC:IN 10 91.2 -12.7 -29.5 11.9 15.9 1.3 118,124.1 3,155.0 INE043D01016
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 0 (Rs)
Indian inst/Mut Fund : 41.2% Fx inflow Rs m 12 270
FIIs/GDR : 46.7% Fx outflow Rs m 420
Free float : 12.1% Net fx Rs m -408
Shareholders : 289,663
210
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
High Rs 78 113 235
150
Low Rs 50 43 77
Income per share Rs 9.2 13.9 21.6
Earnings per share Rs 3.5 4.5 5.7 90
Cash flow per share Rs 4.0 6.1 8.9 DAILY
Dividends per share Rs 1.00 1.00 1.20
100 DMA
Avg Dividend yield % 1.6 1.3 0.8
30
Book value per share Rs 22.9 26.2 43.2
Shares outstanding (eoy) m 1,122.45 1,125.93 1,294.30 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions ESOS,PI ESOS PP,ESOS
Avg Price / Income ratio x 6.9 5.6 7.2 No. of months 12 12 12
Avg P/E ratio x 18.4 17.4 27.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
Avg P/CF ratio x 16.6 16.7 24.6
Avg Price/Bookvalue ratio x 2.8 3.0 3.6 From Operations Rs m 1,979 1,952 5,930
Dividend payout % 28.7 22.3 20.9 From Investments Rs m -3,286 -10,392 -33,012
Avg Mkt Cap Rs m 71,837 87,823 201,911 From Financial Activity Rs m 172 15,711 33,480
No. of employees `000 <500 <500 <500 Net Cashflow Rs m -1,135 7,271 6,398
Total wages & salary Rs m 315 480 1,677
Avg. income/employee Rs Th 82,760.0 81,567.7 76,160.8 INTERIM RESULTS
Avg. wages/employee Rs Th 2,520.0 2,500.0 4,569.5 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 31,264.0 26,244.8 20,223.4 Operating income Rs m 6,551 7,634 7,670 8,686
Gross Profit Rs m 3,235 3,661 3,184 3,770
INCOME DATA Gross profit margin % 49.4 48.0 41.5 43.4
Interest income Rs m 10,345 15,661 27,951 Net profit Rs m 1,945 2,173 1,495 2,167
Other income Rs m 22 52 114 Net profit margin % 29.7 28.5 19.5 24.9
Interest expense Rs m 5,008 8,555 14,829
Net interest income Rs m 5,337 7,106 13,122 KEY DATA
Operating expense Rs m 507 777 2,459 Parameters Unit FY06 FY07 FY08
Gross profit Rs m 4,830 6,329 10,663 Branches nos. 10 10 10
Gross profit margin % 46.7 40.4 38.1 Employees nos. 125 175 375
Provisions/contingencies Rs m 426 219 773 Business / branch Rs m 10,191 13,918 19,905
Profit before tax Rs m 4,427 6,280 10,004 Profit / employee Rs m 31.3 26.2 20.2
Extraordinary Inc (Exp) Rs m 0 0 11 NIM % 2.8 2.9 2.8
Minority Interest Rs m -2 0 -113
NOTES
Prior Period Items Rs m 0 0 0
Tax Rs m 517 1,241 2,480 IDFC operates as an infrastructure financing entity whose focus areas are energy,
Profit after tax Rs m 3,908 5,039 7,422 telecom, transportation and industrial and commercial projects. IDFC financed 25%
of the total infrastructure outlay in the country in FY08. Its expertise in the
Net profit margin % 37.8 32.2 26.6
infrastructure sector and strong relationship with government and infrastructure
BALANCE SHEET DATA sponsors provides it with a platform for facilitating private investment and public-
private partnerships in infrastructure projects.
Advances Rs m 100,871 139,184 199,051
Yield on advances % 7.1 8.1 8.6 The institution clocked 47% YoY growth in advances on the back of a buoyant 53%
Net Interest Margin % 2.8 2.9 2.8 YoY growth in disbursements. Further, the disbursement to sanction ratio improved
Net fixed assets Rs m 508 489 3,850 from 55.7% in FY07 to 59.1% in FY08. Despite the firmness in interest rates, the
Share capital Rs m 11,225 11,259 12,943 demand for infrastructure loans remained strong. The institution reduced its exposure
Free reserves Rs m 8,082 9,820 31,715 to energy and telecom sectors. The same was routed to industrial and commercial
Net worth Rs m 25,685 29,476 55,933 infrastructure and tourism sectors. The share of non-interest income to IDFC's
Borrowings Rs m 80,074 129,595 196,729 operating income increased from 26% in FY07 to 50% in FY08. Fee income trebled
Investments Rs m 12,928 23,903 52,257 and the share of fees in non-interest income was 75% in FY08. Asset management
fees comprised 10% of the total fee income generating returns of 2.1% on the total
Total assets Rs m 122,183 182,983 288,439
invested corpus of US$ 665 m. The operating costs for the institution have also
Debt/equity ratio x 3.1 4.4 3.5
increased by 85% YoY in FY08 (cost to income ratio of 10.7%), with the additional
Return on assets % 3.2 2.8 2.6 employee intake (cost of 200 employees of SSKI consolidated in IDFC's book).
Return on equity % 15.2 17.1 13.3
Capital adequacy ratio % 25.6 19.1 22.1 IDFC sees its return on assets contracting from 3.0% in FY08 to 2.5% by FY09 (due
Net NPAs % 0.0 0.0 0.0 to decline in net interest income), while its leverage increases from 5.5 times to 7
times over the same period. The institution is also targeting its AUM (assets under
management) to go up from US$ 670 m currently to US$ 2 bn by the end of FY09
and US$ 3 bn to 4 bn by FY10. The asset management fees are set to increase with
the acquisition of Stanchart's asset management business.

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 Regd off: Bombay Life Bldg., 2nd Floor, 45/47, Veer Nariman Rd., Mumbai - 1
LIC HOUSING FINANCE LIMITED E-Mail: nitin_jage@lichousing.com
Web site: www.lichousing.com
Telephone: (022) 2204 0006 Fax: (022) 2204 9839
INVESTMENT & FINANCE GOVERNMENT Tr agent: Sharex Dynamic Ltd., 17/B, Dena Bank Bldg., 2nd Floor, Fort, Mumbai-1
Chairman: T. S. Vijayan SEC: Nitin K. Jage (GM - Taxation) AUD: P. C. Hansotia & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1989 500253 LICHF:IN 10 329.5 -2.3 59.1 5.2 7.1 3.0 27,984.4 41.5 INE115A01018
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 40.8% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 0 (Rs)
Indian inst/Mut Fund : 8.8% Fx inflow Rs m 3 420
FIIs/GDR : 31.6% Fx outflow Rs m 210
Free float : 18.7% Net fx Rs m -207
Shareholders : 74,520
340
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
260
High Rs 284 234 403
Low Rs 182 128 132
Income per share Rs 145.8 182.2 246.0
Earnings per share Rs 24.6 33.2 46.1 180
Cash flow per share Rs 34.3 52.2 75.3
DAILY
Dividends per share Rs 6.00 8.00 10.00 100 DMA
Avg Dividend yield % 2.6 4.4 3.7
100
Book value per share Rs 160.3 183.9 218.3
Shares outstanding (eoy) m 84.93 84.93 84.93 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Avg Price / Income ratio x 1.6 1.0 1.1 No. of months 12 12 12
Avg P/E ratio x 9.5 5.5 5.8 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
Avg P/CF ratio x 7.3 5.1 5.4
Avg Price/Bookvalue ratio x 1.5 1.0 1.2 From Operations Rs m -21,979 -22,705 -38,737
Dividend payout % 24.4 24.1 21.7 From Investments Rs m -2,340 1,232 -5,256
Avg Mkt Cap Rs m 19,789 15,372 22,719 From Financial Activity Rs m 26,846 24,458 39,824
No. of employees `000 1 1 1 Net Cashflow Rs m 2,528 2,984 -4,170
Total wages & salary Rs m 252 269 348
Avg. income/employee Rs Th 14,179.8 17,190.0 21,212.2 INTERIM RESULTS
Avg. wages/employee Rs Th 288.7 298.9 353.3 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 2,394.0 3,128.9 3,974.6 Operating income Rs m 5,126 5,345 5,896 6,054
Gross Profit Rs m 1,619 1,521 1,832 1,613
INCOME DATA Gross profit margin % 31.6 28.5 31.1 26.6
Interest income Rs m 12,379 15,471 20,894 Net profit Rs m 1,164 1,061 1,181 1,047
Other income Rs m 353 346 948 Net profit margin % 22.7 19.9 20.0 17.3
Interest expense Rs m 8,565 11,024 14,938
Net interest income Rs m 3,814 4,447 5,956 KEY DATA
Operating expense Rs m 925 1,064 1,309 Parameters Unit FY06 FY07 FY08
Gross profit Rs m 2,889 3,383 4,647 Branches nos. 125 128 128
Gross profit margin % 23.3 21.9 22.2 Employees nos. 955 980 958
Provisions/contingencies Rs m 610 196 281 Business / branch Rs m 1,190 1,372 1,734.0
Profit before tax Rs m 2,643 3,564 5,367 Profit / employee Rs m 2.4 3.1 4.0
Extraordinary Inc (Exp) Rs m 0 0 0 NIM % 2.5 2.5 2.7
Minority Interest Rs m 0 0 0
NOTES
Prior Period Items Rs m -44 0 -1
Tax Rs m 509 748 1,451 LIC Housing Finance (LICHF) is a key player in the housing finance industry in India
Profit after tax Rs m 2,090 2,816 3,915 with a 5% market share. It was promoted in 1989 by the LIC (which has 38% stake
in the company). Although competition in the mortgage financing sector has been
Net profit margin % 16.9 18.2 18.7
increasing, LICHF has shown 22% CAGR in its loan book over past the five years.
BALANCE SHEET DATA LICHF markets its products largely to retail clients through a network of 113 outlets.
The company has begun to market its products through direct selling agencies and
Advances Rs m 148,672 175,634 219,364 LIC's insurance agents that incrementally account for around 80% of LICHF's
Yield on advances % 8.0 8.5 9.3 disbursements. LICHF, despite being the second largest housing finance company in
Net Interest Margin % 2.5 2.5 2.7 the country (after HDFC), has been losing market share to banks over the last couple
Net fixed assets Rs m 302 323 389 of years.
Share capital Rs m 850 850 850
Free reserves Rs m 5,685 6,281 8,254 The company's mortgage portfolio registered a growth of 25% YoY in FY08. This was
Net worth Rs m 13,613 15,621 18,542 on the back of 41% and 38% growth in sanctions and disbursements respectively.
Borrowings Rs m 133,559 152,480 201,944 The gross NPAs of the company stood at 1.7% in FY08 as against 2.6% in FY07. Net
Investments Rs m 3,283 2,209 7,936 NPAs were 0.6% as against 1.3% in FY07. The net interest margins stood at 2.7% in
FY08. The company launched a Fixed Deposit scheme to raise resources from
Total assets Rs m 158,351 187,258 232,927
individual depositors and also laid emphasis on strengthening its distribution
Debt/equity ratio x 9.8 9.8 10.9
channels. The institution increased the strength of its home loan agents, direct sales
Return on assets % 1.3 1.5 1.7 agents and home loan counselors by more than 20% in FY08. The company has
Return on equity % 15.4 18.0 21.1 ongoing operations in Dubai and Kuwait. The company has increased its corporate
Capital adequacy ratio % 14.1 12.9 13.3 tie-ups with reputed organizations in the country for granting loans to their
Net NPAs % 1.8 1.3 0.6 employees.

While our outlook is positive on the prospects of the mortgage finance industry in the
longer term, we believe that it will be the larger players who will benefit the most. Also,
our concerns on LICHF remain in terms of asset quality and margin pressures.

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 Regd off: Gateway Building, Apollo Bunder, Mumbai - 400 001
M & M FINANCIAL SERVICES E-Mail: pardiwala.arnavaz@mahindra.com
Web site: www.mahindrafinance.com
Telephone: (022) 6652 6000 Fax: (022) 2497 2741
INVESTMENT & FINANCE MAHINDRA Tr agent: Karvy Computer, Plot 17-24, Vithalrao Nagar, Madhapur, Hyderabad-81
Chairman: Anand G. Mahindra SEC: Arnavaz M. Pardiwala AUD: B. K. Khare & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1991 532720 MMFS:IN 10 244.0 -1.0 6.1 8.5 13.1 1.8 23,643.6 3.7 INE774D01016
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 61.6% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 0 (Rs)
Indian inst/Mut Fund : 0.4% Fx inflow Rs m 0 380
FIIs/GDR : 23.5% Fx outflow Rs m 3
Free float : 14.5% Net fx Rs m -3
Shareholders : 31,198
320
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
260
High Rs 258 298 368
Low Rs 205 137 212
Income per share Rs 70.4 99.6 125.5
Earnings per share Rs 13.1 16.0 18.7 200 DAILY
Cash flow per share Rs 25.3 32.9 28.8
Dividends per share Rs 3.50 4.00 4.50 100 DMA
Avg Dividend yield % 1.5 1.8 1.6
140
Book value per share Rs 82.2 93.1 136.4
Shares outstanding (eoy) m 83.31 84.02 96.90 Mar-06 Oct-06 Jun-07 Jan-08 Sep-08
Bonus/Rights/Conversions PI ESOS PA,ESOS
Avg Price / Income ratio x 3.3 2.2 2.3 No. of months 12 12 12
Avg P/E ratio x 17.7 13.6 15.5 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
Avg P/CF ratio x 9.8 7.0 6.4
Avg Price/Bookvalue ratio x 2.8 2.3 2.1 From Operations Rs m -18,482 -16,539 -13,277
Dividend payout % 26.7 24.9 24.1 From Investments Rs m -2,674 2,629 38
Avg Mkt Cap Rs m 19,286 18,274 28,101 From Financial Activity Rs m 21,628 14,885 13,187
No. of employees `000 2 3 4 Net Cashflow Rs m 472 975 -53
Total wages & salary Rs m 415 684 1,032
Avg. income/employee Rs Th 2,552.7 2,998.2 2,646.1 INTERIM RESULTS
Avg. wages/employee Rs Th 180.7 245.1 224.5 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 475.2 483.0 394.0 Operating income Rs m 2,876 3,187 3,548 2,946
Gross Profit Rs m 1,769 1,901 2,346 1,822
INCOME DATA Gross profit margin % 61.5 59.6 66.1 61.8
Interest income Rs m 5,861 8,368 12,164 Net profit Rs m 377 425 754 268
Other income Rs m 119 104 203 Net profit margin % 13.1 13.3 21.3 9.1
Interest expense Rs m 2,136 3,170 4,466
Net interest income Rs m 3,725 5,198 7,698 KEY DATA
Operating expense Rs m 1,331 1,964 2,559 Parameters Unit FY06 FY07 FY08
Gross profit Rs m 2,394 3,234 5,139 Branches nos. 305 403 440
Gross profit margin % 40.8 38.6 42.2 Employees nos. 2,296 2,791 4,431
Provisions/contingencies Rs m 868 1,270 2,553 Assets financed / branch Rs m 147 135 150.0
Profit before tax Rs m 1,646 2,068 2,788 Profit / employee Rs m 0.5 0.5 0.4
Extraordinary Inc (Exp) Rs m 0 0 0 NIM % 9.3 9.5 9.3
Minority Interest Rs m 0 0 0
NOTES
Prior Period Items Rs m 0 0 0
Tax Rs m 555 720 977 Mahindra & Mahindra Financial Services Ltd (MMFSL), a subsidiary of the auto major
Profit after tax Rs m 1,091 1,348 1,811 Mahindra & Mahindra, is a non-banking finance company (NBFC) focused on the
rural and semi-urban sector providing finance for utility vehicles, tractors and cars.
Net profit margin % 18.6 16.1 14.9
MMFSL seeks to position itself between the organised banking sector and local
BALANCE SHEET DATA moneylenders in the rural and semi-urban areas. The company finances utility
vehicles, tractors and cars. While it predominantly finances M&M's vehicles, it has
Advances Rs m 44,994 58,663 66,475 continued to expand its lending in respect of non-M&M vehicles. MMFSL had a
Yield on advances % 11.8 13.2 16.5 branch network of 436 branches by FY08 providing services to approximately 0.8 m
Net Interest Margin % 9.3 9.5 9.3 customers. MMFSL significantly increased its exposure to commercial vehicle
Net fixed assets Rs m 230 277 314 financing during FY08 by forming an alliance with Ashok Leyland.
Share capital Rs m 833 840 953
Free reserves Rs m 5,293 5,990 10,923 M&M's experience in the rural finance market has enabled MMFSL to price its
Net worth Rs m 6,851 7,821 13,222 products appropriately and M&M's relationship with dealers and customers has
Borrowings Rs m 32,230 41,468 43,378 enabled MMFSL to develop prudent credit appraisal procedures. The company's
Investments Rs m 2,977 264 95 asset under management stood at Rs 79 bn (up 14% YoY) in FY08. Its net profits
grew by 33% YoY in FY08 although there was pressure on NIMs due to higher cost
Total assets Rs m 49,746 62,094 69,114
of funds. The steep rises in interest rates have, however, taken a toll on the
Debt/equity ratio x 4.7 5.3 3.3
company's delinquency rates.
Return on assets % 2.2 2.2 2.6
Return on equity % 15.9 17.2 13.7 Although approximately 55% to 60% of MMFSL's customer base comprises of M&M
Capital adequacy ratio % 18.2 14.7 20.7 customers, the NBFC plans to expand its non-M&M customer base. The NBFC,
Net NPAs % 2.2 2.5 2.9 through a combination of network expansion and dealer associations, is envisaging
higher growth rates in its customer and product portfolio. Towards this, it has entered
into associations with other major vehicle manufacturers. The strategy also includes
providing new products such as personal loans, mutual fund distribution and housing
loans. Also, going forward, M&M Finance plans to venture into rural home and used
vehicle financing.
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 Regd off: Palm Spring Centre, 2nd flr, New Link Rd, Malad (W), Mumbai-64
MOTILAL OSWAL FINANCIAL SERVICES LTD. E-Mail: investors@motilaloswal.com
Web site: www.motilaloswal.com
Telephone: (022) 3080 1000 Fax: (022) 2844 9044
MISCELLANEOUS MISCELLANEOUS Tr agent: Intime Spectrum, C13, Pannalal Silk Mills Compd., LBS Marg, Mumbai-78
Chairman: Motilal Oswal (CEO,MD&CFO) SEC: Tarun Khurana (CS&CO) AUD: Haribhakti & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
2006 532892 MOFS:IN 1 110.7 8.8 NM 9.2 8.5 3.6 15,714.5 33.3 INE338I01027
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 70.4% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 0 (Rs)
Indian inst/Mut Fund : 1.9% Fx inflow Rs m 0 460
FIIs/GDR : 7.7% Fx outflow Rs m 0
Free float : 20.1% Net fx Rs m 0
Shareholders : 18,603
360
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08 DAILY
EQUITY SHARE DATA
260 100 DMA
High Rs NM NM 2,270
Low Rs NM NM 515
Sales per share Rs 92.0 143.7 242.9
Earnings per share Rs 21.5 26.9 60.0 160
Cash flow per share Rs 23.5 31.3 65.2
Dividends per share Rs 0.00 0.00 4.00
Dividend yield (eoy) % NM NM 0.3
60
Book value per share Rs 39.4 131.1 249.6
Shares outstanding (eoy) m 28.00 25.42 28.40 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08
Bonus/Rights/Conversions - FV5,ESOS PI
Price / Sales ratio x NM NM 5.7 No. of months 12 12 12
Avg P/E ratio x NM NM 23.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x NM NM 21.3
Price / Book Value ratio x NM NM 5.6 From Operations Rs m 1,129 438 1,433
Dividend payout % 0.0 0.0 6.7 From Investments Rs m -385 -469 -475
Avg Mkt Cap Rs m NM NM 39,547 From Financial Activity Rs m -82 1,606 3,693
No. of employees `000 NA 2 2 Net Cashflow Rs m 662 1,575 4,651
Total wages/salary Rs m 635 1,012 1,764
Avg. sales/employee Rs Th NA 1,763.5 2,979.7 INTERIM RESULTS
Avg. wages/employee Rs Th NA 488.4 762.0 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA 330.6 736.5 Net sales Rs m 1,520 2,274 1,866 1,374
Gross profit Rs m 535 823 746 464
INCOME DATA Gross profit margin % 35.2 36.2 40.0 33.8
Net Sales Rs m 2,577 3,654 6,898 Net profit Rs m 327 537 442 262
Other income Rs m 149 22 111 Net profit margin % 21.5 23.6 23.7 19.1
Total revenues Rs m 2,726 3,676 7,009
Gross profit Rs m 845 1,345 2,584 KEY DATA
Depreciation Rs m 55 110 148 Parameters Unit FY06 FY07 FY08
Interest Rs m 32 39 149 Employees / Agents nos. NA 2,072 2,315
Profit before tax Rs m 907 1,218 2,398 Debt / Equity x - - 0.2
Minority Interest Rs m -1 -27 -50 Operating margin % 32.8 32.4 37.5
Prior Period Items Rs m 0 -11 0 ROE % 54.7 20.6 24.0
Extraordinary Inc (Exp) Rs m -5 -85 145 Net profit margin % 23.4 18.7 24.7
Tax Rs m 298 410 788
NOTES
Profit after tax Rs m 603 685 1,705
Gross profit margin % 32.8 36.8 37.5 Motilal Oswal Financial Services (MOFSL) continues to derive a significant portion of
Effective tax rate % 32.9 33.7 32.9 its revenues from equity broking (90% in FY07) for both retail and institutional clients.
Accordingly, its revenues and profitability are dependent on favourable capital market
Net profit margin % 23.4 18.7 24.7
conditions, a conducive regulatory and political environment, investor sentiment,
BALANCE SHEET DATA price levels of securities and other factors that affect the volume of stock trading and
the level of interest in business developments. Amongst the large listed broking
Current assets Rs m 3,825 7,463 12,315 houses, MOFSL gets the highest proportion of its revenue from broking activities.
Current liabilities Rs m 3,320 5,627 8,170
Net working cap to sales % 19.6 50.2 60.1 In FY08, MOFSL got almost 82% of its revenue from broking compared to 87% in
Current ratio x 1.2 1.3 1.5 FY07. The company, on the other hand, had an advance book of Rs 2.7 bn at the end
Inventory Turnover Days 3 0 1 of March 2008, largely comprising of margin funding, loan-against-share and IPO
Debtors Turnover Days 190 280 168 funding. The company, however, has no major ambitions in this area and intends to
Net fixed assets Rs m 519 685 854 use the funding book only as a support to its core agency businesses rather than
Share capital Rs m 56 127 142 develop it as an independent business segment. MOFSL's receivables grew by
"Free" reserves Rs m 998 2,247 5,956 13.1% in FY08 as against 81.1% growth in broking and IB revenue.
Net worth Rs m 1,102 3,332 7,090 In FY09, MOFSL plans to achieve growth by ramping up its non-broking business.
Long term debt Rs m 0 0 0 Further, the company expects its investment banking division to contribute nearly
Total assets Rs m 4,423 9,004 16,808 18% of total revenues by the end of this fiscal. The company is also awaiting
Interest coverage x 29.3 32.2 17.1 regulatory approval to launch mutual fund business.
Debt to equity ratio x 0.0 0.0 0.2
Sales to assets ratio x 0.6 0.4 0.4
Return on assets % 57.6 21.7 26.1
Return on equity % 54.7 20.6 24.0
Return on capital % 84.7 34.0 37.3
Exports to sales % 0.0 0.0 0.0
Imports to sales % 0.0 0.0 0.0
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163
 Regd off: Urjanidhi, 1, Barakhamba Lane, Connaught Place, New Delhi - 110 001
POWER FINANCE CORPORATION LTD. E-Mail: ipo@pfcindia.com
Web site: www.pfcindia.com
Telephone: (011) 2345 6740 Fax: (011) 2345 6740
INVESTMENT & FINANCE Central Government Tr agent: Karvy Computer,Karvy House,46,Avenue 4,Banjara Hills,Hyderabad-34
Chairman: V. K. Garg (MD) SEC: J. S. Amitabh AUD: Bansal Sinha & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1986 532810 POWF:IN 10 136.5 -2.8 -28.6 8.8 13.0 2.6 156,613.2 123.2 INE134E01011
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 89.8% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 0 (Rs)
Indian inst/Mut Fund : 2.3% Fx inflow Rs m 11 300
FIIs/GDR : 4.2% Fx outflow Rs m 1,274
DAILY
Free float : 3.8% Net fx Rs m -1,263
Shareholders : 216,210 100 DMA
245
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
190
High Rs NM 121 297
Low Rs NM 101 101
Income per share Rs 30.3 33.3 43.8
Earnings per share Rs 9.4 8.6 10.5 135
Cash flow per share Rs 13.1 14.0 17.2
Dividends per share Rs 3.51 2.41 3.50
Avg Dividend yield % NM 2.2 1.8 80
Book value per share Rs 67.3 74.9 81.3
Shares outstanding (eoy) m 1,030.45 1,147.77 1,147.77
Feb-07 Jul-07 Nov-07 Apr-08 Sep-08
Bonus/Rights/Conversions - PI -
Avg Price / Income ratio x NM 3.3 4.5 No. of months 12 12 12
Avg P/E ratio x NM 12.9 18.9 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
Avg P/CF ratio x NM 12.9 19.0
Avg Price/Bookvalue ratio x NM 1.5 2.4 From Operations Rs m -49,657 -71,651 -62,611
Dividend payout % 37.2 28.0 33.3 From Investments Rs m -74 -410 -77
Avg Mkt Cap Rs m NM 127,316 228,406 From Financial Activity Rs m 49,996 73,488 64,356
No. of employees `000 <500 <500 <500 Net Cashflow Rs m 265 1,428 1,668
Total wages & salary Rs m 232 249 498
Avg. income/employee Rs Th 108,152.2 121,551.0 162,760.5 INTERIM RESULTS
Avg. wages/employee Rs Th 802.8 793.0 1,611.7 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 33,598.6 31,407.6 39,055.0 Operating income Rs m 12,275 12,921 13,652 14,395
Gross Profit Rs m 4,575 4,834 5,149 5,130
INCOME DATA Gross profit margin % 37.3 37.4 37.7 35.6
Interest income Rs m 31,256 38,167 50,293 Net profit Rs m 3,050 3,205 2,973 2,963
Other income Rs m 20 94 108 Net profit margin % 24.8 24.8 21.8 20.6
Interest expense Rs m 17,902 23,061 30,795
Net interest income Rs m 13,354 15,106 19,498 KEY DATA
Operating expense Rs m 839 1,111 1,840 Parameters Unit FY06 FY07 FY08
Gross profit Rs m 12,515 13,995 17,658 Debt / Equity x 3.1 3.4 3.7
Gross profit margin % 40.0 36.7 35.1 Operating margin % 40.0 36.7 35.1
Provisions/contingencies Rs m -15 -11 -59 ROE % 12.3 10.9 11.9
Profit before tax Rs m 12,550 15,116 17,825 Net profit margin % 30.3 24.9 23.8
Extraordinary Inc (Exp) Rs m 0 0 0 NIM % 3.7 3.5 3.8
Minority Interest Rs m 0 0 0
NOTES
Prior Period Items Rs m 99 -143 52
Tax Rs m 2,939 5,111 5,809 Power Finance Corporation (PFC) is a leading power sector public financial institution
Profit after tax Rs m 9,710 9,862 12,068 and a non-banking financial company (NBFC) providing fund and non-fund based
support for the development of the Indian power sector. PFC commenced its
Net profit margin % 31.1 25.8 24.0
operations in fiscal 1988 as part of the Government of India's initiative to enhance
BALANCE SHEET DATA funding of power projects in India. It initially provided funding to power projects for
state electricity boards (SEBs) and power departments. In line with the government's
Advances Rs m 356,025 439,028 515,683 decision to encourage private sector participation, the company began financing
Yield on advances % 8.6 8.6 9.6 power projects in the private sector from fiscal 1997. PFC has been designated as
Net Interest Margin % 3.7 3.5 3.8 the nodal agency by the Government of India for the development of seven ultra
Net fixed assets Rs m 846 815 770 mega power projects. At the end of FY08, PFC had 307 employees of which more
Share capital Rs m 10,305 11,478 11,478 than 50% had worked with the company for more than 10 years.
Free reserves Rs m 20,350 29,927 33,266
Net worth Rs m 69,382 85,931 93,299 A 123% YoY growth in incremental approvals backed by 17% YoY growth in loan
Borrowings Rs m 220,637 269,336 344,558 book in FY08 suggests strength in the institution's performance. Also, due to the
Investments Rs m 165 589 656 higher yield on assets, PFC's net interest margin increased by 0.2% during the fiscal.
The quality of PFC's loan portfolio continued to be excellent, with gross non-
Total assets Rs m 374,890 466,634 547,005
performing loans at just 0.1% of total loan portfolio. The return on net worth at the end
Debt/equity ratio x 3.1 3.4 3.7
of FY08 stood at 13.6%. The company is adequately capitalised with capital
Return on assets % 2.6 2.1 2.2 adequacy ratio (CAR) at 17.4% in FY08.
Return on equity % 14.0 11.5 12.9
Capital adequacy ratio % NA 18.3 17.4 PFC is expected to maintain its good asset quality position amongst the financial
Net NPAs % 0.2 0.1 0.0 entities in India due to its strong credit and project appraisal skills and disciplined risk
management practices. The company is, however, expected to face pressures on the
net interest margin front due to rising interest rates. Since its borrowings are linked to
G-Sec yields, the rise in interest rates will push the cost of funds upwards, while
slower rise in lending rates (due to competition) may put pressure on margins and
thus, impact profitability.
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164
 Regd off: 123, Angappa Naicken Street, Chennai - 600 001
SHRIRAM TRANSPORT FINANCE CO. LIMITED E-Mail: secretarial@stfc.in
Web site: www.stfc.in
Telephone: (044) 2534 1431 Fax: (022) 4095 9597
INVESTMENT & FINANCE MISCELLANEOUS Tr agent: Integrated Enterp., II Flr., Kences Tower, North Usman Rd., Chennai - 17
Chairman: Arun Duggal SEC: K. Prakash (VP Co. Affairs) AUD: S. R. Batliboi & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1979 511218 SHTF:IN 10 335.1 8.3 82.5 11.2 17.5 1.5 68,099.0 15.7 INE721A01013
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 42.0% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 0 (Rs)
Indian inst/Mut Fund : 3.7% Fx inflow Rs m 0 460
FIIs/GDR : 14.8% Fx outflow Rs m 4
Free float : 39.5% Net fx Rs m -4
Shareholders : 38,429
360
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
260
High Rs 143 146 433
Low Rs 52 75 111
Income per share Rs 58.7 75.9 121.3
Earnings per share Rs 11.7 10.3 19.2 160
Cash flow per share Rs 20.5 20.2 34.9 DAILY
Dividends per share Rs 3.00 3.00 5.00 100 DMA
Avg Dividend yield % 3.1 2.7 1.8
60
Book value per share Rs 55.7 59.0 89.4
Shares outstanding (eoy) m 150.54 184.16 203.13 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions A,PA A,WC,ESOS PA,WC
Avg Price / Income ratio x 1.7 1.5 2.2 No. of months 12 12 12
Avg P/E ratio x 8.3 10.7 14.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
Avg P/CF ratio x 5.5 5.5 8.4
Avg Price/Bookvalue ratio x 1.8 1.9 3.0 From Operations Rs m -19,909 -25,657 -58,028
Dividend payout % 25.6 29.0 26.1 From Investments Rs m 669 -5,505 -14,281
Avg Mkt Cap Rs m 14,678 20,350 55,251 From Financial Activity Rs m 17,913 43,520 64,626
No. of employees `000 4 5 10 Net Cashflow Rs m -1,327 12,358 -7,682
Total wages & salary Rs m 470 725 1,252
Avg. income/employee Rs Th 2,381.7 2,823.1 2,541.2 INTERIM RESULTS
Avg. wages/employee Rs Th 126.7 146.4 129.2 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 475.5 384.7 402.1 Operating income Rs m 5,603 6,383 7,497 8,216
Gross Profit Rs m 2,680 2,653 3,357 3,830
INCOME DATA Gross profit margin % 47.8 41.6 44.8 46.6
Interest income Rs m 8,836 13,980 24,634 Net profit Rs m 960 1,071 1,119 1,436
Other income Rs m 232 175 307 Net profit margin % 17.1 16.8 14.9 17.5
Interest expense Rs m 3,974 6,707 12,484
Net interest income Rs m 4,862 7,273 12,150 KEY DATA
Operating expense Rs m 1,843 2,649 3,711 Parameters Unit FY06 FY07 FY08
Gross profit Rs m 3,019 4,624 8,439 Branches nos. 300 339 430
Gross profit margin % 34.2 33.1 34.3 Employees nos. 3,710 4,952 9,694
Provisions/contingencies Rs m 912 1,793 2,688 Business / branch Rs m 177 247 352
Profit before tax Rs m 2,163 2,863 6,058 Profit / employee Rs m 0.5 0.4 0.4
Extraordinary Inc (Exp) Rs m 348 30 0 NIM % 8.5 8.8 7.8
Minority Interest Rs m 0 0 0
NOTES
Prior Period Items Rs m -2 0 0
Tax Rs m 745 988 2,160 Shriram Transport Finance (STF) is the country's largest asset financing NBFC (non-
Profit after tax Rs m 1,764 1,905 3,898 banking finance company) with over 20% share in pre-owned truck financing and
around 8% in new truck financing markets. The company has niche presence in the
Net profit margin % 20.0 13.6 15.8
high-yielding pre-owned CV financing business with expertise in loan origination and
BALANCE SHEET DATA valuation. It had a total employee base of 9,694 at the end of FY08 and had 430
branches across India with 4 m customers (91.3% of the country's truck owners).
Advances Rs m 55,587 85,553 152,855
Yield on advances % 14.7 16.1 14.7 STFC surpassed the sector average asset growth, reporting a 75.4% YoY growth in
Net Interest Margin % 8.5 8.8 7.8 disbursements for FY08. Pre-owned CVs continue to enjoy dominance in the
Net fixed assets Rs m 1,572 1,675 1,426 company's portfolio allocation (72% in FY08). This was also on the back of demand
Share capital Rs m 1,506 1,842 2,032 for working capital loans for the pre-owned CVs. Around 15% of the growth in asset
Free reserves Rs m 5,452 7,441 13,546 book was derived from the partnership with private financers, wherein STFC primarily
Net worth Rs m 8,385 10,863 18,164 took the responsibility of arranging for the funds. The institution maintains a loan to
Borrowings Rs m 36,844 66,699 114,121 value ratio of 65% and intends to get into the old tractor financing and freight bill
Investments Rs m 92 2,246 13,851 discounting businesses. However, the institution's inability to re-price the new CVs,
led to a substantial drop in the net interest margins (NIMs) from 8.5% in FY06 to 7.8%
Total assets Rs m 60,690 108,354 182,684
in FY08.
Debt/equity ratio x 4.4 6.1 6.3
Return on assets % 2.9 1.8 2.1 Going forward with better credit rating and increased institutional funding the NIMs
Return on equity % 21.0 17.5 21.5 are expected to remain in the range of 7.5% to 8%. Over the next four years, the
Capital adequacy ratio % 19.5 13.6 12.7 company is targeting to increase its market share to 40% from the present 25% in the
Net NPAs % 0.4 0.5 0.9 pre-owned vehicle segment (asset size of Rs 150 bn from the current Rs 90 bn). To
ensure commensurate reach, the company has tied up with 250 private financiers to
grow across India on a franchisee basis - to source loans for old trucks and share the
profits therein. It has engaged the erstwhile moneylenders for this purpose.

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165
 MEDIA
India continues to be in the throes of an entertainment revolution
spawned by economic liberalisation and the subsequent rollout
of CAS and DTH. The players in the entertainment industry
can be classified into a three-link chain. First are the studios
(including the animation studios), which comprise the hardware
part of the industry, the second are the content providers and
the third link comprises the distribution trolleys, which include
the cable and satellite channels, multiplex theatres, MSOs and
the DTH players.
There are around 125 m television households (52% of total
homes), and 74 m pay TV households (60% of TV households)
in India. In the next 5 years, the number of TV households is
projected to increase to 170 m (70% of total homes), while the
number of pay TV households is projected to increase to 155
m (70% of TV households). The sector is set to witness a
transformation through digitisation. Digitisation means that
cable penetration will decrease to 78% from the current level
of 95%. This will benefit all the stakeholders. The broadcasters
revenues will increase significantly increasing their ability to
spend on content. Digitisation will also be beneficial to the
viewers as it means a better visual quality at a lower cost.
In India, the ratio of advertising expenditure to GDP is about
0.4%. This is substantially lower in comparison to the developed
economies as well as developing economies. As the Indian
economy continues to develop and the television reach
increases, its advertising expenditure to GDP ratio is expected
to increase over the next 5 years.
FY08
The Indian media and entertainment industry recorded a growth
of around 17% over the previous year. With this, the industry
in India reached an estimated size of Rs 513 bn, up from Rs
438 bn in 2006. Though different segments of the Industry like
online advertising, television, radio, OOH and filmed
entertainment registered variable growth rates, the television
industry recorded a growth of 19% over the previous year. It
reached an approximate size of Rs 226 billion in 2007.
In FY08, the television media sector continued to witness
launch of new channels catering to varied genres. Along with
the growth in television and cable & satellite homes in the
country, new players and channels have sprung up in niche
segments like news, fashion, sports, lifestyle, tourism and
children. Broadcasters such as UTV, Zee launched a youth
oriented channel keeping in mind India's vibrant young
population.
During CY07, advertisement revenues accounted for 38% of
the total ad spend. In India, the broadcasters receive only
10% of the subscription revenues as opposed to 35% to 40%
in the developed countries. One of the key reasons why this
discrepancy exists in India is due to the under-declaration of
connections by cable operators leading to lower subscription
revenues. However, it must be noted that over the last 2 to 3
years, there has been a consistent improvement in realisations
from the subscription segment for broadcasters, largely due
to the rollout of CAS and DTH services.
CURRENT SCENARIO AND PROSPECTS
The future of the entertainment industry will be decided on the
interplay of a number of reasons like consumerism, advertising
spend, content, pricing, technology and regulation. According
to the FICCI-PWC report on the entertainment and media
industry, it is estimated that this industry is set to grow at a
CAGR of 18% to reach an estimated size of Rs 1.1 trillion in
2011. The television industry revenues are expected to grow
from the present size of Rs 226 bn to Rs 600 bn by 2012,
166
implying a 22% compounded annual growth over the next five
years. Subscription revenues are projected to be the key
growth driver for the Indian television industry over the next
five years.
The demographic profile of India also favours higher spends
on entertainment, with the consuming class forming a sizeable
chunk of the country's total households. Thus, this could lead
to the emergence of a huge consumer base for the various
products and services (including entertainment).
New distribution technologies like DTH, Conditional Access
System (CAS) and IPTV, hold the future of the media industry
as increasing digitalisation will radically alter the ways in
which consumers receive channels. Also, these distribution
platforms will give broadcasters direct access to consumers
providing not just routine content but also customized value
added services (like video on demand). As a result of this, the
average revenue per user will increase significantly. Moreover,
broadcasters are also expected to rake in larger advertisement
revenues, as ad spend is likely to go up on the back of the
robust economic growth.
KEY POINTS
Supply: Presently there are approximately 345 channels in
the fight for viewer ship, which has led to a shortfall in
quality programmes. In the near future several more channels
across different languages and genres will be launched.
Demand : The highly fragmented viewership has led to an
increasing preference for niche channels.
Barriers to entry: High for broadcasting since it is very
capital-intensive. It involves the cost of leasing the
transponder, setting up up-linking facilities, setting up pre and
post-production facilities. The barriers to entry are far lower
for content providers. Besides, broadcasters themselves
commission programmes and finance their production. Hence
margins are lower. Broadcasters are tapping the international
securities markets and the private equity investors for funds.
The broadcasters are finding it increasingly difficult to retain
their key personnel. Inspite of the high barriers to entry a
slew of channels across languages and genres are slated to
be launched in the near future.
Bargaining power of suppliers: High for content
providers, reflected by the fact that Balaji Telefilm's relisations
per hour are increasing. However, terrestrial broadcasters
such as Doordarshan and regional broadcasters such as Sun
TV actually commission time slots to content providers.
Bargaining power of customers: Relatively high. There is
a surfeit of channels and programmes to choose from for the
viewer. In the near future several more channels across
different languages and genres will be launched. The rollout
of CAS and DTH services will enable the consumer to choose
the channels that he wishes to view increasing his bargaining
power.
Competition: High amongst broadcasters especially for
general entertainment channels. The Hindi General
Entertainment Space have become more competitive with the
entry of the TV18 group, UTV, NDTV, and INX Media.
 MEDIA
GLOBAL COMPARISON
FY08/CY07 Unit Sun TV Comcast DirecTV EchoStar News Corp
Revenues US$ m 217 30,895 17,246 1,544 32,996
EBIDTA margin % 58.6 38.2 24.2 (5.0) 20.0
Profit after tax US$ m 81 2,587 1,445 (85) 5,387
Net profit margins % 37.6 8.4 8.4 (5.5) 16.3
Return on Assets % 18.7 2.3 9.6 (9.6) 8.9
Return on equity % 22.6 6.3 22.1 (10.0) 17.5
Employees Nos. NA 100,000 11,300 1,500 64,000
Revenue per employee US$ m NA 0.3 1.5 1.0 0.5
Price/Earnings x 28.0 24.9 21.0 NA 7.7
Price/Book value x 6.3 1.5 4.5 0.9 1.2

COMCAST (US)

Comcast Corporation, based in Philadelphia, US operates in two business segments, Cable and Content. The
cable segment develops, manages and operates broadband communications networks, including video, Internet
and phone services. The Content segment operates cable networks such as E!, Entertainment Television, Style
Network, the Golf Channel, OLN, G4 and AZN Television. Through its cable segment, the company offers products
like basic and digital cable, video on demand, digital video recorder, and pay-per-view programming. Its IP-enabled
phone services provide local and domestic long-distance calling, which have features such as voice mail, caller id,
and call waiting. The company earned revenues and net profits of US$ 30.9 bn and US$ 2.6 bn respectively in 2007.

DIRECTV (US)

The DIRECTV Group Inc. provides digital television entertainment in the US and Latin America. The company
delivers content, technology and service to more than 17.1 m customers across the US. It has two business
segments DIRECTV US and DIRECTV Latin America. In the US, it provides direct-to-home digital television services,
which are transmitted via geo-synchronous satellites. In Latin America, the company provides direct-to-house
services to 1.5 m subscribers in Brazil; 1.7 m subscribers in PanAmericana and 1.6 m subscribers in Mexico. The
company was originally incorporated as Hughes Electronics Incorporation in 1977 and later changed its name to
DIRECTV Group Inc. in 2004.

ECHOSTAR (US)

Headquartered in Englewood, Colorado, EchoStar was founded in 1980. It operates through two units - digital set-
top box business and a fixed satellite services business. EchoStar had a spin-off from DISH Network on January 1,
2008. The company's set-top box business designs, develops and distributes set-top boxes and related products
for direct-to-home satellite service providers. The set-top boxes permit consumers to watch, control and record
television programming through digital video recorder technology integrated with satellite receivers. EchoStar's
fixed satellite services business is developed using its eight owned or leased in-orbit satellites, a network of seven
full service digital broadcast centers, and leased fiber optic capacity with points of presence in approximately 150
cities. In 2007, its equipment sales totaled US$ 1.5 bn.

NEWS CORPORATION (US)

News Corp was founded in 1922 by Rupert Murdoch and is headquartered in New York. The company creates and
distributes top quality news, sports and entertainment around the world. The company is vertically integrated and
has operations that span seven key segments - Filmed Entertainment, Television, Cable Network Programming,
Direct Broadcast Satellite Television, Magazines and Inserts, Newspapers and Book Publishing. The company,
through its owned television studios provides content for primetime American television. It also produces, develops
and distributes films. In the television segment, its Fox Broadcasting Company is America's most watched network
among young adults. News Corporation is the world's leading publisher of English-language newspapers with
operations in the US, Europe, and Australia. The company earned sales and net profits of US$ 33 bn and US$ 5.4
bn respectively in 2007.

Source: Yahoo Finance, Company reports TTM - Trailing twelve months

167
 Regd off: Adlabs Films Limited, Films City Complex, Goregaon (E), Mumbai - 65
ADLABS FILMS LIMITED E-Mail: kirti.desai@adlabfilms.com
Web site: www.adlabsfilms.com
Telephone: (022) 2842 3333 Fax: (022) 2842 2211
MEDIA ANIL AMBANI Tr agent: Intime Spectrum Registry, C-13, Pannalal Silk Mills Compd, Mumbai - 78
Chairman: Manmohan Shetty (MD) SEC: Kirti Desai AUD: BSR & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1990 532399 ADLF:IN 5 509.1 -5.2 9.7 49.4 15.4 0.5 23,484.8 672.4 INE540B01015
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 57.8% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 786 (Rs)
Indian inst/Mut Fund : 7.2% Fx inflow Rs m 122 2100
FIIs/GDR : 6.1% Fx outflow Rs m 828
Free float : 28.9% Net fx Rs m -706 DAILY
Shareholders : 99,925
1600 100 DMA
No. of months 12 15 09
Year ending 31/03/06 30/06/07 31/03/08
EQUITY SHARE DATA
1100
High Rs 474 586 1,945
Low Rs 118 171 417
Sales per share Rs 30.5 89.3 67.0
Earnings per share Rs 7.0 22.7 10.3 600
Cash flow per share Rs 9.5 46.4 33.1
Dividends per share Rs 2.25 2.50 2.50
Dividend yield (eoy) % 0.8 0.7 0.2
100
Book value per share Rs 86.0 84.2 149.5
Shares outstanding (eoy) m 39.80 39.80 46.13 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions W,BC,A - BC
Price / Sales ratio x 9.7 4.2 17.6 No. of months 12 15 09
Avg P/E ratio x 42.1 16.7 114.7 Year ending 31/03/06 30/06/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 31.0 8.2 35.7
Price / Book Value ratio x 3.4 4.5 7.9 From Operations Rs m -399 -917 53
Dividend payout % 32.0 11.0 24.3 From Investments Rs m -2,478 -3,570 -5,216
Avg Mkt Cap Rs m 11,781 15,064 54,480 From Financial Activity Rs m 7,361 1,383 6,368
No. of employees `000 NA NA NA Net Cashflow Rs m 4,484 -3,104 1,205
Total wages/salary Rs m 76 231 261
Avg. sales/employee Rs Th NA NA NA INTERIM RESULTS
Avg. wages/employee Rs Th NA NA NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA NA NA Net sales Rs m 1,264 846 436 1,852
Gross profit Rs m -50 198 -140 110
INCOME DATA Gross profit margin % -4.0 23.4 -32.1 5.9
Net Sales Rs m 1,213 3,554 3,092 Net profit Rs m 203 205 51 11
Other income Rs m 99 461 189 Net profit margin % 16.1 24.2 11.7 0.6
Total revenues Rs m 1,312 4,015 3,281
Gross profit Rs m 445 1,391 1,089 KEY DATA
Depreciation Rs m 100 944 1,053 Parameters Unit FY06 FY07 FY08
Interest Rs m 16 45 148 Theatrical exhibition % of sales 24.0 27.3 38.9
Profit before tax Rs m 428 863 77 Film facilities % of sales 62.4 29.8 23.5
Minority Interest Rs m -9 -7 -5 Film distribution % of sales 5.0 42.6 28.9
Prior Period Items Rs m -1 -5 -12 Film/content production % of sales 8.6 0.3 8.7
Extraordinary Inc (Exp) Rs m 0 267 364
Tax Rs m 138 214 -51
NOTES
Profit after tax Rs m 280 904 475
Gross profit margin % 36.7 39.1 35.2 Adlabs Films is part of the Reliance ADA Group. The company is present in film
Effective tax rate % 32.2 24.8 -66.2 production & distribution, processing, exhibition, FM radio and TV content spaces. It
has the largest chain of cinemas with 166 screens across India. It is the market leader
Net profit margin % 23.1 25.4 15.4
in the postproduction business, processing the largest number of Hindi films. It also
BALANCE SHEET DATA rents out broadcast equipment, providing quality equipment for live shows, reality
shows and game shows, among other segments. The company has FM Radio
Current assets Rs m 2,353 6,923 7,399 stations under the name of BIG 92.7 FM in various cities in India.
Current liabilities Rs m 1,774 1,968 2,326
Net working cap to sales % 47.7 139.4 164.1 In FY08, Adlabs presented results for 9 months. The income from production &
Current ratio x 1.3 3.5 3.2 distribution increased by 24% on an annualised basis over the previous period. The
Inventory Turnover Days 17 2 9 company distributed Dhol, Dhamaal, Jab We Met, Mitti Awaajaan Mardi, Dil Dosti Etc,
Debtors Turnover Days 173 61 180 Khoya Khoya Chand during the year. The income from film processing increased by
Net fixed assets Rs m 3,199 3,587 8,923 11% on an annualised basis due to the company's dominant position in Bollywood. It
Share capital Rs m 199 199 231 processed the highest amount of prints ever in a year with a 70% market share.
"Free" reserves Rs m 3,221 3,150 6,662 Income from exhibition rose by 101% on an annualised basis on the back of an
expansion in properties across the country. In the television content space, Synergy
Net worth Rs m 3,423 3,351 6,896
Adlabs produced shows such as Kya Aap Paanchvi Pass Se Tez Hain, Dus ka Dum
Long term debt Rs m 4,616 4,648 5,124
and the second season of Jhalak Dikhla Jaa among others.
Total assets Rs m 10,003 11,472 18,652
Interest coverage x 27.8 20.2 1.5 Going forward, Adlab intends to be present in all 14 domestic film territories. In the
Debt to equity ratio x 1.3 1.4 0.7 cinema segment, Adlabs' strategy is to not only to set-up new standalone properties
Sales to assets ratio x 0.1 0.3 0.2 and cinemas in malls, but also to take over current properties, renovate and operate
Return on assets % 3.7 11.9 5.2 them, thereby taking advantage of their considerable existing infrastructure and local
Return on equity % 8.2 27.0 6.9 brand value. The company has recently acquired 220 screens across 28 locations in
Return on capital % 5.4 14.5 4.8 the US. The chain will play mainstream Hollywood films apart from popular
Exports to sales % 0.0 0.0 0.0 international fare, which includes Indian movies.
Imports to sales % 3.1 4.9 25.4
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168
 Regd off: C-13, Balaji House, Dalia Indl. Estate, New Link Road, Mumbai - 53
BALAJI TELEFILMS LIMITED E-Mail: investor@balajitelefilms.com
Web site: www.balajitelefilms.com
Telephone: (022) 4069 8000 Fax: (022) 4069 8182
MEDIA MISCELLANEOUS Tr agent: Karvy Computer, Plot 17-24, Vithalrao Nagar, Madhapur, Hyderabad-81
Chairman: Jeetendra Kapoor SEC: Alpa Khandor AUD: Deloitte Haskins & Sells
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
2000 532382 BLJT:IN 2 172.5 -6.4 -31.7 11.8 10.4 2.0 11,248.7 101.9 INE794B01026
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 40.0% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 18 (Rs)
Indian inst/Mut Fund : 11.6% Fx inflow Rs m 2,562 400
FIIs/GDR : 13.6% Fx outflow Rs m 41
Free float : 34.8% Net fx Rs m 2,521
Shareholders : 13,635
320
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
240
High Rs 197 194 388
Low Rs 90 95 121
Sales per share Rs 43.0 49.1 58.0
Earnings per share Rs 9.1 12.2 14.7 160
Cash flow per share Rs 11.3 13.9 16.7 DAILY
Dividends per share Rs 3.00 3.50 3.50 100 DMA
Dividend yield (eoy) % 2.1 2.4 1.4
80
Book value per share Rs 38.4 46.6 57.2
Shares outstanding (eoy) m 65.21 65.21 65.21 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 3.3 2.9 4.4 No. of months 12 12 12
Avg P/E ratio x 15.7 11.8 17.3 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 12.7 10.4 15.3
Price / Book Value ratio x 3.7 3.1 4.5 From Operations Rs m 689 703 591
Dividend payout % 32.8 28.7 23.8 From Investments Rs m -656 -209 -582
Avg Mkt Cap Rs m 9,358 9,423 16,596 From Financial Activity Rs m -1 -478 -5
No. of employees `000 <500 <500 <500 Net Cashflow Rs m 32 16 5
Total wages/salary Rs m 72 116 140
Avg. sales/employee Rs Th 18,693.3 21,346.7 34,400.0 INTERIM RESULTS
Avg. wages/employee Rs Th 480.0 773.3 1,272.7 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 3,973.3 5,306.7 8,700.0 Net sales Rs m 779 800 965 916
Gross profit Rs m 331 266 348 317
INCOME DATA Gross profit margin % 42.5 33.3 36.1 34.6
Net Sales Rs m 2,804 3,202 3,784 Net profit Rs m 263 188 238 222
Other income Rs m 31 42 76 Net profit margin % 33.8 23.5 24.7 24.2
Total revenues Rs m 2,835 3,244 3,860
Gross profit Rs m 936 1,195 1,349 KEY DATA
Depreciation Rs m 143 113 129 Parameters Unit FY06 FY07 FY08
Interest Rs m 0 0 0 Total programming Hours 2,113 1,820 1,571
Profit before tax Rs m 824 1,124 1,296 Programming hours (Hindi) Hours 1,085 1,061 928
Minority Interest Rs m 0 0 0 Commissioned programmes % of sales 83.8 92.0 91.0
Prior Period Items Rs m 2 3 -5 Sponsored programmes % of sales 12.3 8.0 9.0
Extraordinary Inc (Exp) Rs m 56 53 100 Cost of prodn. of serials & films % of sales 55.8 50.2 49.0
Tax Rs m 286 384 434
NOTES
Profit after tax Rs m 596 796 957
Gross profit margin % 33.4 37.3 35.7 Balaji Telefilms is a leading entertainment software provider in India's fast growing
Effective tax rate % 34.7 34.2 33.5 television market. It was promoted by veteran Indian actor Jeetendra Kapoor, his wife
Sobha Kapoor and daughter Ekta Kapoor. Balaji develops content for Star Plus, Sony,
Net profit margin % 21.3 24.9 25.3
Zee TV, 9X, Sun TV, Gemini TV, Udaya TV and Surya TV. Balaji's core competence
BALANCE SHEET DATA is in mass programming and family-centric entertainment, although it has now
ventured into new genres like mythology and reality shows. The company had 15
Current assets Rs m 1,086 1,264 1,705 serials (63 shows) on air at the end of FY08. Its serials accounted for 19 of the Top
Current liabilities Rs m 573 391 750 50 shows at the end of FY08.
Net working cap to sales % 18.3 27.3 25.2
Current ratio x 1.9 3.2 2.3 In FY08, Balaji's consolidated turnover increased by 18% YoY, operating profits
Inventory Turnover Days 15 14 18 increased by 13% YoY and bottomline increased by 21% YoY. Balaji's annual
Debtors Turnover Days 96 79 72 revenues are a multiple of programming hours and realisations per hour. Although the
Net fixed assets Rs m 413 443 620 programming hours declined in FY08, an increase in realisations per hour led to an
Share capital Rs m 130 130 130 improvement in topline and bottomline.
"Free" reserves Rs m 2,374 2,909 3,598
Balaji has formed a wholly owned subsidiary Balaji Motion Pictures for undertaking
Net worth Rs m 2,505 3,040 3,729 film ventures. Balaji has also incorporated a wholly owned subsidiary in Sharjah to
Long term debt Rs m 0 0 0 cater to that region and to explore other destinations. However, Balaji has ended its
Total assets Rs m 3,123 3,478 4,522 exclusivity contract with Star, and the latter will divest its 26% stake in the company.
Interest coverage x NM NM NM This opens the door for Balaji to provide more content to other broadcasters. The
Debt to equity ratio x 0.0 0.0 0.0 entry of UTV, TV18, NDTV in the general entertainment space will increase the
Sales to assets ratio x 0.9 0.9 0.8 demand for quality content which should help Balaji to not only increase its
Return on assets % 23.8 26.2 25.7 programming hours but also its realisations per hour. The rollout of CAS and DTH
Return on equity % 23.8 26.2 25.7 should increase the subscription revenues of its customer channels enabling them to
Return on capital % 35.2 38.8 37.3 increase their expenditure on content.
Exports to sales % 0.0 0.0 0.0
Imports to sales % 0.0 0.1 0.5
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169
 Regd off: 4th flr., Matulya Centre, Senapati Bapat Marg, Lower Parel, Mumbai-13
ENTERTAINMENT NETWORK (INDIA) LIMITED E-Mail: mehul.shah@timesgroup.com
Web site: www.enil.co.in
Telephone: (022) 6662 0600 Fax: (022) 6661 5030
MEDIA MISCELLANEOUS Tr agent: Karvy Computer, 46, Avenue 4, St. No. 1, Banjara Hills, Hyderabad - 34
Chairman: Vineet Jain SEC: Mehul Shah AUD: Price Waterhouse & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1999 532700 ENIL:IN 10 295.2 -1.0 -38.6 NM 73.3 0.0 14,068.1 3.1 INE265F01028
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 71.2% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 18 (Rs)
Indian inst/Mut Fund : 2.9% Fx inflow Rs m 1 720
FIIs/GDR : 19.6% Fx outflow Rs m 28
Free float : 6.4% Net fx Rs m -27
Shareholders : 20,184
565
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
410
High Rs 287 355 700
Low Rs 218 161 307
Sales per share Rs 28.9 49.4 86.8
Earnings per share Rs 6.5 5.3 -3.6 255
Cash flow per share Rs 9.1 9.2 4.0 DAILY
Dividends per share Rs 0.00 0.00 0.00 100 DMA
Dividend yield (eoy) % 0.0 0.0 0.0
100
Book value per share Rs 55.8 61.3 92.5
Shares outstanding (eoy) m 47.56 47.58 47.66 Feb-06 Oct-06 May-07 Jan-08 Sep-08
Bonus/Rights/Conversions PI,CR ESOP ESOP
Price / Sales ratio x 8.7 5.2 5.8 No. of months 12 12 12
Avg P/E ratio x 38.6 48.7 -140.3 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 27.6 28.0 125.0
Price / Book Value ratio x 4.5 4.2 5.4 From Operations Rs m 211 -214 -2,083
Dividend payout % 0.0 0.0 0.0 From Investments Rs m -2,517 -527 -496
Avg Mkt Cap Rs m 12,009 12,276 23,997 From Financial Activity Rs m 2,327 773 2,612
No. of employees `000 <500 1 1 Net Cashflow Rs m 20 31 34
Total wages/salary Rs m 274 447 667
Avg. sales/employee Rs Th 3,287.1 3,462.4 4,725.7 INTERIM RESULTS
Avg. wages/employee Rs Th 655.5 658.3 762.3 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 744.0 371.1 -195.4 Net sales Rs m 532 680 632 571
Gross profit Rs m 40 138 134 48
INCOME DATA Gross profit margin % 7.5 20.3 21.2 8.4
Net Sales Rs m 1,374 2,351 4,135 Net profit Rs m 7 80 71 1
Other income Rs m 16 35 128 Net profit margin % 1.3 11.8 11.2 0.2
Total revenues Rs m 1,390 2,386 4,263
Gross profit Rs m 393 435 321 KEY DATA
Depreciation Rs m 124 187 363 Parameters Unit FY06 FY07 FY08
Interest Rs m 26 40 268 Airtime Sales % of sales 84.5 70.4 54.0
Profit before tax Rs m 259 243 -182 Event Income % of sales 13.2 15.2 13.2
Minority Interest Rs m 0 0 5 Out of Home Media Income % of sales 1.2 13.4 32.0
Prior Period Items Rs m 0 0 0 Production Expenses % of sales 13.0 16.5 15.3
Extraordinary Inc (Exp) Rs m 98 0 0 License Fees % of sales 4.9 13.9 32.7
Tax Rs m 46 -9 -6
NOTES
Profit after tax Rs m 311 252 -171
Gross profit margin % 28.6 18.5 7.8 Entertainment Network India (ENIL), a part of the Times Group, is present in
Effective tax rate % 17.8 -3.7 3.3 businesses such as radio, outdoor advertising and live entertainment. ENIL's radio
brand - Radio Mirchi dominates the markets of Mumbai, Delhi and Bangalore. In fact,
Net profit margin % 22.6 10.7 -4.1
Radio Mirchi has a 50% market share of the private FM radio industry. ENIL's
BALANCE SHEET DATA outdoor advertising brand - Times OOH - has won contracts for some of the best
properties like Delhi Airport (domestic and international), Mumbai Airport (domestic
Current assets Rs m 846 1,576 4,301 and international), Delhi Metro and Kolkata Metro. ENIL also operates in the live
Current liabilities Rs m 548 599 910 entertainment business and has the distinction of managing events like Filmfare
Net working cap to sales % 21.7 41.6 82.0 Awards, Femina Miss India Contest.
Current ratio x 1.5 2.6 4.7
Inventory Turnover Days 0 0 0 In FY08, the revenues increased by 76% YoY, whereas the company incurred a loss
Debtors Turnover Days 124 113 118 at the bottomline level consequent to its massive roll out plans. The topline grew due
Net fixed assets Rs m 2,403 3,025 3,182 to an increase in airtime sales and an increase in contribution from its subsidiaries.
Share capital Rs m 476 476 477 Radio Mirchi continues to be the number one player in Mumbai, Delhi and Calcutta.
"Free" reserves Rs m 2,174 2,430 3,927
ENIL is expected to continue to dominate the radio space as its programming is
Net worth Rs m 2,655 2,916 4,407 superior to that of its competitors. The radio industry, fuelled by the positive FM-II
Long term debt Rs m 350 750 780 Radio Policy is projected to grow from Rs 8 bn in 2008 to Rs 18 bn by 2012, implying
Total assets Rs m 3,551 4,626 7,513 a 24% compounded annual growth over the next four years as per the PWC report
Interest coverage x 11.0 7.1 0.3 on the Indian media sector. Driven by heavy infrastructure development, newer
Debt to equity ratio x 0.1 0.3 0.2 advertising sites such as flyovers, metro rails, airports have emerged, which should
Sales to assets ratio x 0.4 0.5 0.6 drive the growth of the out-of-the-home (OOH) advertising market in the future. A slow
Return on assets % 11.2 8.0 1.9 down in India's GDP growth will lead to a decline in the advertising revenues of ENIL.
Return on equity % 11.7 8.6 -3.9 The entry of new players in different cities may also lead to a decline in ENIL's market
Return on capital % 12.7 7.7 1.8 share.
Exports to sales % 0.0 0.0 0.0
Imports to sales % 0.1 3.8 0.4
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170
 Regd off: Hindustan Times House, 18-20, Kasturba Gandhi Marg, New Delhi - 01
HT MEDIA LIMITED E-Mail: investor@hindustantimes.com
Web site: www.hindustantimes.com
Telephone: (011) 6656 1608 Fax: (011) 6656 1445
MEDIA BIRLA K.K. Tr agent: Karvy Computer, 46, Avenue 4, St. No. 1, Banjara Hills, Hyderabad - 34
Chairman: K. K. Birla SEC: Dinesh Mittal AUD: S. R. Batliboi & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
2002 532662 HTML:IN 2 122.1 7.5 -45.7 28.2 18.1 0.3 28,587.8 0.9 INE501G01024
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 68.7% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 3,167 (Rs)
Indian inst/Mut Fund : 10.0% Fx inflow Rs m 68 290
FIIs/GDR : 17.9% Fx outflow Rs m 3,337
Free float : 3.3% Net fx Rs m -3,269
Shareholders : 23,658
230
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
170
High Rs 731 205 266
Low Rs 389 71 128
Sales per share Rs 175.9 44.4 51.4
Earnings per share Rs 7.6 4.1 4.3 110
DAILY
Cash flow per share Rs 16.1 6.0 6.8
Dividends per share Rs 1.20 0.30 0.40 100 DMA
Dividend yield (eoy) % 0.2 0.2 0.2
50
Book value per share Rs 143.3 32.6 36.4
Shares outstanding (eoy) m 46.85 234.23 234.23 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions PI FV2 -
Price / Sales ratio x 3.2 3.1 3.8 No. of months 12 12 12
Avg P/E ratio x 73.7 33.3 45.6 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 34.9 23.0 29.1
Price / Book Value ratio x 3.9 4.2 5.4 From Operations Rs m 513 1,132 1,118
Dividend payout % 15.8 7.2 9.2 From Investments Rs m -2,653 -986 -1,447
Avg Mkt Cap Rs m 26,236 32,324 46,143 From Financial Activity Rs m 2,545 -406 312
No. of employees `000 3 3 4 Net Cashflow Rs m 405 -260 -17
Total wages/salary Rs m 1,244 1,596 1,983
Avg. sales/employee Rs Th 2,954.1 3,308.0 3,410.7 INTERIM RESULTS
Avg. wages/employee Rs Th 445.9 507.8 562.1 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 127.6 308.6 287.1 Net sales Rs m 2,877 3,194 3,134 3,247
Gross profit Rs m 552 593 601 663
INCOME DATA Gross profit margin % 19.2 18.6 19.2 20.4
Net Sales Rs m 8,242 10,397 12,033 Net profit Rs m 319 368 416 377
Other income Rs m 169 367 430 Net profit margin % 11.1 11.5 13.3 11.6
Total revenues Rs m 8,411 10,764 12,463
Gross profit Rs m 1,190 1,680 1,693 KEY DATA
Depreciation Rs m 396 436 570 Parameters Unit FY06 FY07 FY08
Interest Rs m 138 143 172 Advertising revenue % of sales 79.7 84.2 84.0
Profit before tax Rs m 825 1,468 1,381 Sale of publications % of sales 16.7 13.1 12.4
Minority Interest Rs m 4 46 0 Job revenue % of sales 2.9 1.8 0.9
Prior Period Items Rs m 0 0 0 Advertising & promotion exp % of sales 8.3 6.9 9.6
Extraordinary Inc (Exp) Rs m -233 2 9 Inventory days no 49.0 36.0 35.0
Tax Rs m 240 546 377
NOTES
Profit after tax Rs m 356 970 1,013
Gross profit margin % 14.4 16.2 14.1 HT Media is a print media company publishing the newspapers Hindustan (Hindi
Effective tax rate % 29.1 37.2 27.3 news daily), Hindustan Times (English newsdaily) and Mint (financial newspapar).
Both Hindustan and Hindustan Times enjoy a combined daily circulation of 2.25 m
Net profit margin % 4.3 9.3 8.4
copies and have a readership base of 14.5 million readers. For Mint, HT Media has
BALANCE SHEET DATA entered into a JV with The Wall Street Journal (world's largest financial news daily).
It has a presence in Delhi, Mumbai, Bihar, Jharkhand, Uttar Pradesh (UP),
Current assets Rs m 5,388 4,173 5,199 Uttarakhand and Chandigarh. HT Media and BCCL Group have entered into a JV and
Current liabilities Rs m 1,836 2,101 2,804 launched a tabloid Metro in Delhi. HT Media has also entered the radio business by
Net working cap to sales % 43.1 19.9 19.9 launching the radio station Fever 104 in the Delhi and Mumbai markets along with
Current ratio x 2.9 2.0 1.9 Virgin Radio.
Inventory Turnover Days 49 36 35
Debtors Turnover Days 54 52 60 In FY08, the company's revenues increased by 14% YoY, operating profits increased
Net fixed assets Rs m 3,835 5,207 5,829 by 17% YoY, while the bottomline increased by 26% YoY. Operating profit increased
Share capital Rs m 468 468 469 due to an increase in the ad rates. A decline in the tax rates and better operating
"Free" reserves Rs m 6,248 7,132 8,019 margins aided the increase in bottomline. Strong economic growth and spurt in
advertising has enabled HT Media to increase its advertisement rates.
Net worth Rs m 6,715 7,641 8,528
Long term debt Rs m 1,650 1,658 1,673 The company is following a three-step strategy, namely to increase geographical
Total assets Rs m 10,789 11,673 13,685 presence of the existing brands, to enter new segments and to scale up presence into
Interest coverage x 7.0 11.3 9.0 new businesses. With the print segment expected to grow at a 14% CAGR, HTML
Debt to equity ratio x 0.2 0.2 0.2 with its complete packaged offering is in a commendable position. Wide reach, entry
Sales to assets ratio x 0.8 0.9 0.9 into high growth segments and a favourable industrial scenario make it a strong play.
Return on assets % 5.9 12.0 11.6 However execution, raw material price and competition risks are some of our key
Return on equity % 5.3 12.7 11.9 concerns.
Return on capital % 8.8 17.8 15.3
Exports to sales % 0.0 0.0 0.0
Imports to sales % 25.6 27.2 26.3
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171
 Regd off: Jagran Building, 2 Sarvodaya Nagar, Kanpur - 208 005
JAGRAN PRAKASHAN LIMITED E-Mail: amitjaiswal@jagran.com
Web site: www.jagran.com
Telephone: (0512) 2216 161 Fax: (0512) 2216 972
MEDIA MISCELLANEOUS Tr agent: Karvy Computer, 46, Avenue 4, St. No. 1, Banjara Hills, Hyderabad - 34
Chairman: Mahendra Mohan Gupta SEC: Amit Jaiswal AUD: Price Waterhouse
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1975 532705 JAGP:IN 2 75.0 14.5 -35.9 23.0 17.1 2.0 22,587.8 1,010.2 INE199G01027
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 52.1% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 890 (Rs)
Indian inst/Mut Fund : 12.5% Fx inflow Rs m 4 180
FIIs/GDR : 3.7% Fx outflow Rs m 910
Free float : 31.6% Net fx Rs m -906
Shareholders : 27,552
140
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
100
High Rs 314 379 161
Low Rs 253 174 72
Sales per share Rs 95.7 99.3 24.9
Earnings per share Rs 6.3 12.7 3.3 60
Cash flow per share Rs 10.3 16.6 4.4 DAILY
Dividends per share Rs 5.00 7.50 1.50 100 DMA
Dividend yield (eoy) % 1.8 2.7 1.3
20
Book value per share Rs 96.9 84.8 17.9
Shares outstanding (eoy) m 50.20 60.23 301.17 Feb-06 Oct-06 Jun-07 Jan-08 Sep-08
Bonus/Rights/Conversions PI B1:5 FV
Price / Sales ratio x 3.0 2.8 4.7 No. of months 12 12 12
Avg P/E ratio x 44.9 21.9 35.7 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 27.5 16.7 26.6
Price / Book Value ratio x 2.9 3.3 6.5 From Operations Rs m 351 706 947
Dividend payout % 79.2 59.3 46.0 From Investments Rs m -2,270 -722 -911
Avg Mkt Cap Rs m 14,232 16,654 35,086 From Financial Activity Rs m 3,552 -717 -684
No. of employees `000 3 3 4 Net Cashflow Rs m 1,633 -732 -647
Total wages/salary Rs m 567 704 915
Avg. sales/employee Rs Th 1,577.5 1,745.6 1,953.1 INTERIM RESULTS
Avg. wages/employee Rs Th 186.1 205.4 238.4 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 104.1 222.4 255.9 Net sales Rs m 1,772 1,990 1,900 2,065
Gross profit Rs m 392 433 300 497
INCOME DATA Gross profit margin % 22.1 21.8 15.8 24.1
Net Sales Rs m 4,805 5,982 7,496 Net profit Rs m 222 259 154 316
Other income Rs m 63 248 215 Net profit margin % 12.5 13.0 8.1 15.3
Total revenues Rs m 4,868 6,230 7,711
Gross profit Rs m 702 1,198 1,638 KEY DATA
Depreciation Rs m 201 237 336 Parameters Unit FY06 FY07 FY08
Interest Rs m 76 85 60 Advertising revenue % of sales 64.0 64.9 66.5
Profit before tax Rs m 488 1,124 1,457 Sale of publications % of sales 34.4 28.1 24.1
Minority Interest Rs m 0 0 0 Employee Cost % of sales 11.8 11.9 12.2
Prior Period Items Rs m 0 27 1 Materials Cost % of sales 49.2 40.6 36.2
Extraordinary Inc (Exp) Rs m -30 0 0 Operating Margin % of sales 15.9 20.0 21.9
Tax Rs m 141 389 476
NOTES
Profit after tax Rs m 317 762 982
Gross profit margin % 14.6 20.0 21.9 Jagran Prakashan (JPL) commands leadership position in print media. JPL's flagship
Effective tax rate % 28.9 34.6 32.7 newspaper - Dainik Jagran, as per the Indian Readership Survey 2008, has for the
tenth time in a row maintained its No.1 status in the country across all languages with
Net profit margin % 6.6 12.7 13.1
a total readership of 56.6 m. Dainik Jagran has more than 37 editions, thus widening
BALANCE SHEET DATA its spread over a wider consumer base. JPL provides promotional marketing, event
management services and has an outdoor advertising business. It has an Internet
Current assets Rs m 3,400 3,121 3,073 portal, which is the most visited Hindi portal. The company also has Short Code
Current liabilities Rs m 359 652 1,244 Service (7272) for mobile phone users, a monthly magazine 'Sakhi' targeted at
Net working cap to sales % 63.3 41.3 24.4 women, Jagran Varshiki - an annual general knowledge digest and various national
Current ratio x 9.5 4.8 2.5 and state statistical compilations.
Inventory Turnover Days 19 20 17
Debtors Turnover Days 79 70 77 In FY08, JPL's revenues increased by 25% YoY whereas its operating profits
Net fixed assets Rs m 1,598 2,645 3,046 increased by 37% YoY and net profits increased by 29% YoY. While the
Share capital Rs m 502 602 602 advertisement revenues grew by 28% YoY as against the industry growth rate of 21%
"Free" reserves Rs m 4,315 4,434 4,785 YoY, circulation revenues were higher by 7.1%.
Net worth Rs m 4,866 5,109 5,386 Though its new ventures are in losses currently, the company expects them to
Long term debt Rs m 378 66 0 breakeven by the coming year. It has also entered into a joint venture with Television
Total assets Rs m 6,758 7,213 7,952 Eighteen India to launch a business paper in Hindi and other Indian languages across
Interest coverage x 7.4 14.2 25.3 the country. Being the largest player in the Hindi belt, JPL is in a commendable
Debt to equity ratio x 0.1 0.0 0.0 position. Its venture into new growth areas makes JPL a complete solutions provider.
Sales to assets ratio x 0.7 0.8 0.9 However execution, raw material price and competition risks are some of our key
Return on assets % 7.5 16.4 19.3 concerns.
Return on equity % 6.5 14.9 18.2
Return on capital % 10.2 23.9 28.2
Exports to sales % 0.0 0.0 0.0
Imports to sales % 16.4 14.4 11.9
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172
 Regd off: Peninsula Centre, Dr. S.S. Rao Road, Mumbai - 12
MID-DAY MULTIMEDIA LIMITED E-Mail: investor@mid-day.com
Web site: www.middaymultimedia.com
Telephone: (022) 2419 7171 Fax: (022) 2415 0009
MEDIA MISCELLANEOUS Tr agent: Intime Spectrum, C-13, Pannalal Mills Compd., LBS Marg, Mumbai - 78
Chairman: Khalid A. H. Ansari SEC: Vidya Shembekar AUD: Haribhakti & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
2000 532416 MIDM:IN 10 26.0 0.4 -44.4 NM 30.5 0.0 1,373.8 36.9 INE747B01016
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 51.1% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 304 (Rs)
Indian inst/Mut Fund : 0.1% Fx inflow Rs m 0 120
FIIs/GDR : 3.5% Fx outflow Rs m 310
Free float : 45.4% Net fx Rs m -310
Shareholders : 29,046 DAILY
95
No. of months 12 12 12 100 DMA
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
70
High Rs 118 95 68
Low Rs 62 33 23
Sales per share Rs 25.7 24.0 24.6
Earnings per share Rs 1.3 -2.2 -1.9 45
Cash flow per share Rs 2.6 0.4 0.9
Dividends per share Rs 0.00 0.00 0.00
Dividend yield (eoy) % 0.0 0.0 0.0
20
Book value per share Rs 32.8 29.9 30.8
Shares outstanding (eoy) m 44.76 50.37 50.44 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions PP PP PP
Price / Sales ratio x 3.5 2.7 1.8 No. of months 12 12 12
Avg P/E ratio x 69.5 -29.3 -23.4 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 34.1 179.1 51.0
Price / Book Value ratio x 2.7 2.1 1.5 From Operations Rs m 116 -687 -49
Dividend payout % 0.0 0.0 0.0 From Investments Rs m -1,272 75 163
Avg Mkt Cap Rs m 4,028 3,224 2,295 From Financial Activity Rs m 1,123 543 -72
No. of employees `000 NA NA NA Net Cashflow Rs m -33 -69 43
Total wages/salary Rs m 204 322 374
Avg. sales/employee Rs Th NA NA NA INTERIM RESULTS
Avg. wages/employee Rs Th NA NA NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA NA NA Net sales Rs m 254 282 272 292
Gross profit Rs m -13 21 21 7
INCOME DATA Gross profit margin % -5.1 7.4 7.7 2.4
Net Sales Rs m 1,151 1,208 1,243 Net profit Rs m -13 10 3 -9
Other income Rs m 21 31 52 Net profit margin % -5.1 3.5 1.1 -3.1
Total revenues Rs m 1,172 1,239 1,295
Gross profit Rs m 172 -2 -60 KEY DATA
Depreciation Rs m 60 128 143 Parameters Unit FY06 FY07 FY08
Interest Rs m 34 75 98 Cost of Printing % of sales 40.4 42.0 45.9
Profit before tax Rs m 99 -174 -249 Employee Cost % of sales 18.9 24.2 29.1
Minority Interest Rs m 2 47 81 Circulation Revenue % of sales 15.4 12.9 13.1
Prior Period Items Rs m 0 0 0 Advertising revenue % of sales 81.8 80.3 86.4
Extraordinary Inc (Exp) Rs m -5 -36 0 Operating Margin % of sales 8.5 -14.0 2.6
Tax Rs m 38 -53 -70
NOTES
Profit after tax Rs m 58 -110 -98
Gross profit margin % 14.9 -0.2 -4.8 Mid Day Multi Media Limited publishes the popular English newspaper 'Mid Day' in
Effective tax rate % 38.4 30.5 28.1 Mumbai. 'Mid Day' was launched in 1979. It publishes newspapers in the Gujarati and
Urdu ('Inquilab') language. It also has a presence in radio broadcasting in Mumbai. It
Net profit margin % 5.0 -9.1 -7.9
now has a print footprint in 3 major metros and its radio stations now broadcast in 5
BALANCE SHEET DATA metro cities. BBC Worldwide has picked up a strategic stake in its radio business. It
is planning to transfer its printing and publishing business to its new wholly owned
Current assets Rs m 647 726 772 subsidiary Midday Infomedia.
Current liabilities Rs m 174 313 313
Net working cap to sales % 41.1 34.2 36.9 Despite higher ad revenues in FY08, the revenues of the company remained flat on
Current ratio x 3.7 2.3 2.5 account of lower circulation revenues. The company reported losses both at the
Inventory Turnover Days 17 10 8 operating and net levels.
Debtors Turnover Days 81 91 94
Net fixed assets Rs m 1,476 1,693 1,755 A buoyant Indian economy bodes well for the advertisement revenues of the
company. The medium of radio has huge growth potential in India. Its newspaper
Share capital Rs m 448 504 504
'Mid- Day' has a loyal core audience in Mumbai. However Mid Day is facing intense
"Free" reserves Rs m 603 979 1,017
competition from the Times group newspaper 'Mumbai Mirror' in Mumbai. In its radio
Net worth Rs m 1,469 1,508 1,554 business, the company is facing intense competition from the market leader
Long term debt Rs m 574 594 588 Entertainment Network India Limited (ENIL). An increase in newsprint prices can
Total assets Rs m 2,303 2,687 2,577 affect the profit margins of the company going forward.
Interest coverage x 3.9 -1.3 -1.5
Debt to equity ratio x 0.4 0.4 0.4
Sales to assets ratio x 0.5 0.4 0.5
Return on assets % 4.5 -1.7 0.0
Return on equity % 3.9 -7.3 -6.3
Return on capital % 6.4 -4.2 -3.3
Exports to sales % 0.0 0.0 0.0
Imports to sales % 28.4 26.7 24.5
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173
 Regd off: 4, Norton Road, Mandaveli, Chennai - 28
SUN TV NETWORK LTD. E-Mail: ravi@sunnetwork.in
Web site: www.sunnetwork.in
Telephone: (044) 2464 8181 Fax: (044) 2464 8282
MEDIA MISCELLANEOUS Tr agent: Karvy Computer, 46, Avenue 4, St. No. 1, Banjara Hills, Hyderabad - 34
Chairman: Kalanithi Maran (MD) SEC: R. Ravi AUD: S. R. Batliboi & Associates
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1985 532733 SUNTV:IN 5 234.9 -5.3 -31.3 28.3 25.5 1.1 92,549.7 39.1 INE424H01027
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 77.0% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 1,029 (Rs)
Indian inst/Mut Fund : 1.4% Fx inflow Rs m 385 480
FIIs/GDR : 7.2% Fx outflow Rs m 1,033
Free float : 14.4% Net fx Rs m -648
Shareholders : 36,113
410
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
340
High Rs NM 1,849 458
Low Rs NM 840 260
Sales per share Rs 51.9 98.4 22.1
Earnings per share Rs 20.5 47.8 8.3 270
Cash flow per share Rs 22.7 56.8 9.2 DAILY
Dividends per share Rs 2.00 5.00 2.50 100 DMA
Dividend yield (eoy) % NM 0.4 0.7
200
Book value per share Rs 49.5 173.2 36.8
Shares outstanding (eoy) m 62.00 68.89 394.08 Apr-06 Nov-06 Jun-07 Jan-08 Sep-08
Bonus/Rights/Conversions B30:1 PI FV5,B1:1
Price / Sales ratio x NM 13.7 16.3 No. of months 12 12 12
Avg P/E ratio x NM 28.1 43.3 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x NM 23.7 38.9
Price / Book Value ratio x NM 7.8 9.8 From Operations Rs m 1,499 1,303 3,415
Dividend payout % 9.7 10.5 30.2 From Investments Rs m -2,402 -4,531 -5,733
Avg Mkt Cap Rs m NM 92,633 141,475 From Financial Activity Rs m -290 3,936 -166
No. of employees `000 1 1 1 Net Cashflow Rs m -1,193 709 -2,484
Total wages/salary Rs m 300 698 958
Avg. sales/employee Rs Th 4,726.9 5,152.0 6,506.4 INTERIM RESULTS
Avg. wages/employee Rs Th 440.5 530.4 716.5 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 1,870.8 2,501.5 2,443.5 Net sales Rs m 1,945 2,178 2,465 2,236
Gross profit Rs m 1,398 1,710 1,581 1,682
INCOME DATA Gross profit margin % 71.9 78.5 64.1 75.2
Net Sales Rs m 3,219 6,780 8,699 Net profit Rs m 801 1,023 915 1,025
Other income Rs m 136 411 556 Net profit margin % 41.2 47.0 37.1 45.8
Total revenues Rs m 3,355 7,191 9,255
Gross profit Rs m 2,027 4,143 5,099 KEY DATA
Depreciation Rs m 133 623 366 Parameters Unit FY06 FY07 FY08
Interest Rs m 63 60 156 Advertising income % of sales 62.6 53.6 54.2
Profit before tax Rs m 1,967 3,871 5,133 Broadcast fees % of sales 17.7 16.0 14.6
Minority Interest Rs m 0 -9 137 Program licensing income % of sales 5.5 5.0 4.4
Prior Period Items Rs m 0 0 0 Subscription from pay channels % of sales 13.7 24.7 26.6
Extraordinary Inc (Exp) Rs m 0 831 0
Tax Rs m 693 1,401 2,003
NOTES
Profit after tax Rs m 1,274 3,292 3,267
Gross profit margin % 63.0 61.1 58.6 Sun TV Network is the market leader in satellite broadcasting channels in four
Effective tax rate % 35.2 36.2 39.0 languages-Tamil, Telugu, Kannada and Malayalam with over 20 TV channels. It
caters to all genres including general and entertainment, news, music, movies and
Net profit margin % 39.6 48.6 37.6
kids. It has two subsidiaries - Kal Radio and South Asia FM. Kal Radio owns 18 FM
BALANCE SHEET DATA radio licenses in Southern India. South Asia FM owns 23 FM radio licenses all over
India except the Southern states.
Current assets Rs m 2,991 9,613 8,755
Current liabilities Rs m 733 1,693 2,516 During FY08, Sun TV Network witnessed a growth of 28% in consolidated topline and
Net working cap to sales % 70.1 116.8 71.7 a 33% growth in bottomline. During the year, Sun TV's subsidiaries launched 20 FM
Current ratio x 4.1 5.7 3.5 radio stations across the country. Advertising income continues to be the major
Inventory Turnover Days 0 0 0 source of the company's revenues. The company also saw opened up a new revenue
Debtors Turnover Days 109 111 106 stream during the year by airing its channels in the direct-to-home platforms of DISH
Net fixed assets Rs m 2,830 3,543 5,048 TV, Tata Sky and SUN Direct TV. The company launched its first ever regional
Share capital Rs m 620 985 1,970 language channel for kids called 'Chutti' in Tamil.
"Free" reserves Rs m 2,451 10,949 12,515
Sun TV Network stands to benefit with the increasing addressability from larger
Net worth Rs m 3,071 11,932 14,485 penetration and digitization of television. It is likely to benefit from the lower
Long term debt Rs m 400 646 695 underreporting of subscribers by cable operators who form the last link in the chain
Total assets Rs m 6,203 14,478 18,310 to the end user. Moreover, rising disposable income levels and consumerism is
Interest coverage x 32.2 65.5 33.9 driving both media penetration and corporate advertising spend. However, the
Debt to equity ratio x 0.1 0.1 0.0 company operates in an intensely competitive industry, which continues to see
Sales to assets ratio x 0.5 0.5 0.5 fragmentation with the continued influx of not only new channels in the various genres
Return on assets % 38.5 26.6 22.5 but also in the evolution of new genres catering to a niche viewership. As a regional
Return on equity % 41.5 27.6 22.6 broadcaster, the company might face limited opportunities for growth as well as
Return on capital % 58.5 37.8 35.7 attractiveness to advertising customers.
Exports to sales % 0.0 0.0 0.0
Imports to sales % 1.5 0.9 11.8
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174
 Regd off: 1181-1182, 8th Flr,Guru Hargovindji Marg,Chakala,Andheri (E),Mumbai-18
UTV SOFTWARE COMMUNICATIONS LTD. E-Mail: investor@utvnet.com
Web site: www.utvnet.com
Telephone: (022) 4098 1400 Fax: (022) 4098 1510
MEDIA MISCELLANEOUS Tr agent: Karvy Computer, 46, Avenue 4, St. No. 1, Banjara Hills, Hyderabad - 34
Chairman: Rohinton Screwvala (CEO) SEC: Mohd. Sajid Ali AUD: Price Waterhouse & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1990 532619 UTV:IN 10 809.0 5.5 60.9 49.9 46.8 0.1 28,817.4 85.7 INE507B01022
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 15.8% Exports (fob) Rs m 848
Foreign collaborators : 44.8% Imports (cif) Rs m 6 (Rs)
Indian inst/Mut Fund : 8.0% Fx inflow Rs m 848 1180
FIIs/GDR : 14.0% Fx outflow Rs m 18
Free float : 17.4% Net fx Rs m 830
Shareholders : 16,716
890
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
600
High Rs 192 336 1,132
Low Rs 129 130 274
Sales per share Rs 106.9 76.4 174.8
Earnings per share Rs 7.3 20.2 23.2 310
Cash flow per share Rs 9.7 21.6 24.8 DAILY
Dividends per share Rs 0.00 2.50 1.00
100 DMA
Dividend yield (eoy) % 0.0 1.1 0.1
20
Book value per share Rs 68.7 79.2 184.1
Shares outstanding (eoy) m 19.49 22.89 24.84 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - PA PA
Price / Sales ratio x 1.5 3.0 4.0 No. of months 12 12 12
Avg P/E ratio x 22.0 11.5 30.3 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 16.6 10.8 28.3
Price / Book Value ratio x 2.3 2.9 3.8 From Operations Rs m -763 -623 -2,307
Dividend payout % 0.0 12.4 4.3 From Investments Rs m -70 -507 -1,464
Avg Mkt Cap Rs m 3,128 5,333 17,463 From Financial Activity Rs m 766 1,124 3,749
No. of employees `000 <500 <500 1 Net Cashflow Rs m -66 -6 -22
Total wages/salary Rs m 160 161 258
Avg. sales/employee Rs Th 5,647.7 3,713.4 5,250.3 INTERIM RESULTS
Avg. wages/employee Rs Th 433.6 341.8 312.0 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 384.8 983.0 697.7 Net sales Rs m 713 1,232 1,870 1,358
Gross profit Rs m 176 183 108 113
INCOME DATA Gross profit margin % 24.7 14.9 5.8 8.3
Net Sales Rs m 2,084 1,749 4,342 Net profit Rs m 176 177 270 199
Other income Rs m 75 340 239 Net profit margin % 24.7 14.4 14.4 14.7
Total revenues Rs m 2,159 2,089 4,581
Gross profit Rs m 115 71 647 KEY DATA
Depreciation Rs m 47 31 39 Parameters Unit FY06 FY07 FY08
Interest Rs m 27 73 183 Television % of sales 37.0 43.9 23.2
Profit before tax Rs m 116 307 664 Movies % of sales 62.9 41.2 55.8
Minority Interest Rs m 0 -7 -200 Allied Content Services % of sales 3.7 15.7 22.0
Prior Period Items Rs m 0 0 0 Footage expenses % of sales 50.5 40.6 43.4
Extraordinary Inc (Exp) Rs m 51 0 0
Tax Rs m 25 -163 -113
NOTES
Profit after tax Rs m 142 463 577
Gross profit margin % 5.5 4.1 14.9 UTV began as a TV content producer in 1990. It has evolved into an integrated media
Effective tax rate % 21.6 -53.1 -17.0 and entertainment group, with presence in 4 segments- TV content production,
dubbing and airtime sales; movie production and distribution; interactive media,
Net profit margin % 6.8 26.5 13.3
including console and mobile game development, publishing and distribution; and
BALANCE SHEET DATA new media including web and mobile. UTV also plans a presence in broadcasting
through an investment in UTV Global Broadcasting. UTV's subsidiaries include UMP
Current assets Rs m 2,260 3,285 9,309 Plc, UTV Motion Pictures (Mauritius) Ltd., IG Interactive Entertainment, UTV
Current liabilities Rs m 489 944 2,385 Communications (USA) LLC, Ignition Entertainment Limited- UK, Indiagames, UTV
Net working cap to sales % 85.0 133.8 159.5 TV Content, IG Interactive Entertainment, UTV Communications (USA) LLC & UTV
Current ratio x 4.6 3.5 3.9 TV Content. The Walt Disney Company holds a 32% stake in UTV.
Inventory Turnover Days 137 342 341
Debtors Turnover Days 102 97 129 During FY08, UTV registered a consolidated topline growth of 148% and a bottomline
Net fixed assets Rs m 407 877 1,081 growth of 24%. During the year, the company's TV content business provided content
Share capital Rs m 195 229 248 for Star Plus (Bhabhi), Hungama TV (Hero), Bindass (Sun Yaar Chill Maar and
"Free" reserves Rs m 1,143 1,547 2,389 Shakira) and Doordarshan (Soni Mahiwal). The movies segment released Life in a
Metro, The Blue Umbrella, Dhan Dhana Dhan Goal, Atidhi, Taare Zameen Par,
Net worth Rs m 1,338 1,813 4,572
Jodhaa Akbar and Race during the year.
Long term debt Rs m 300 369 121
Total assets Rs m 2,868 4,334 10,392 The company has a strategy in place for each of its segments. For TV, it plans to
Interest coverage x 5.3 5.2 4.6 produce and market a wide array of content. For movies it aims to strengthen the
Debt to equity ratio x 0.2 0.2 0.0 studio approach to movie making, diversify into producing international and Indian
Sales to assets ratio x 0.7 0.4 0.4 regional movies and retain all distribution rights over content. In the broadcasting
Return on assets % 10.3 24.6 16.2 space, it plans to develop unique broadcasting content. For its interactive space, it
Return on equity % 10.6 25.5 12.6 plans to evaluate growth opportunities for growth in the console and mobile gaming
Return on capital % 11.8 17.1 13.8 industry and focus on creating intellectual property rights over gaming content. In new
Exports to sales % 9.9 28.1 19.5 media, the company seeks to monetise in-house and acquired content through Web
Imports to sales % 2.1 0.2 0.1 and handheld platforms.
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175
 Regd off: Continental Bldg., 135, Dr. Annie Besant Road, Worli, Mumbai - 400 018
ZEE ENTERTAINMENT ENTERPRISES LTD. $ E-Mail: sanghavip@zeenetwork.com
Web site: www.zeetelevision.com
Telephone: (022) 6697 1234 Fax: (022) 2490 0302/0213
MEDIA SUBHASH CHANDRA Tr agent: Sharepro Services, Satam Estate, 3rd Flr., Chakala, Mumbai - 99
Chairman: Subhash Chandra SEC: M. Lakshminarayanan AUD: MGB & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1992 505537 Z:IN 1 221.9 7.1 -30.6 25.1 23.7 0.9 96,285.1 157.2 INE256A01028
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 21.7% Exports (fob) Rs m 797
Foreign collaborators : 19.9% Imports (cif) Rs m 107 (Rs)
Indian inst/Mut Fund : 21.0% Fx inflow Rs m 983 370
FIIs/GDR : 26.0% Fx outflow Rs m 607
Free float : 11.4% Net fx Rs m 376
Shareholders : 91,641
290
No. of months 12 12
Year ending 31/03/07 31/03/08
EQUITY SHARE DATA
210
High Rs 381 363
Low Rs 189 169
Sales per share Rs 35.0 42.3
Earnings per share Rs 5.5 8.8 130 DAILY
Cash flow per share Rs 5.9 9.4
Dividends per share Rs 1.50 2.00
100 DMA
Dividend yield (eoy) % 0.5 0.8
50
Book value per share Rs 60.4 66.0
Shares outstanding (eoy) m 433.57 433.57 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions BC -
Price / Sales ratio x 8.2 6.3 No. of months 12 12
Avg P/E ratio x 52.1 30.1 Year ending 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 48.3 28.4
Price / Book Value ratio x 4.7 4.0 From Operations Rs m 1,714 3,011
Dividend payout % 27.4 22.6 From Investments Rs m -4,280 -1,654
Avg Mkt Cap Rs m 123,567 115,330 From Financial Activity Rs m 2,209 -664
No. of employees `000 1 1 Net Cashflow Rs m -357 693
Total wages/salary Rs m 1,017 1,438
Avg. sales/employee Rs Th 22,065.5 22,885.3 INTERIM RESULTS
Avg. wages/employee Rs Th 1,480.3 1,793.0 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 3,455.6 4,779.3 Net sales Rs m 3,986 5,182 5,260 5,420
Gross profit Rs m 1,320 1,568 1,303 1,441
INCOME DATA Gross profit margin % 33.1 30.3 24.8 26.6
Net Sales Rs m 15,159 18,354 Net profit Rs m 970 1,134 1,070 1,607
Other income Rs m 686 1,133 Net profit margin % 24.3 21.9 20.3 29.6
Total revenues Rs m 15,845 19,487
Gross profit Rs m 3,099 5,209 KEY DATA
Depreciation Rs m 185 232 Parameters Unit FY07 FY08
Interest Rs m 219 298 Advertising revenue % of sales 46.4 50.7
Profit before tax Rs m 3,381 5,812 Subscription revenue % of sales 43.9 40.5
Minority Interest Rs m -68 -333 Personnel Cost % of sales 6.7 7.8
Prior Period Items Rs m 2 -31 Selling & Distribution Expenses % of sales 10.6 8.4
Extraordinary Inc (Exp) Rs m 61 -20 Operating Margin % of sales 26.1 21.5
Tax Rs m 1,002 1,595
NOTES
Profit after tax Rs m 2,374 3,833
Gross profit margin % 20.4 28.4 Zee Entertainment is India's first and one of the largest vertically integrated media
Effective tax rate % 29.6 27.4 and entertainment companies with its operations spread across more than 10
countries worldwide including India, USA, UK, Australia, Middle East and many
Net profit margin % 15.7 20.9
African and South Asian countries. The company broadcasts India's leading
BALANCE SHEET DATA television channels including Zee TV, Zee Cinema, Zee Sports, Zee Caf, Zee Studio,
Zee Music and ETC. The company demerged into three different companies. Zee
Current assets Rs m 18,088 21,508 News (News Broadcasting), WWIL (MSO operations), Dish TV (DTH services) in
Current liabilities Rs m 5,106 6,279 FY06. The operations of Zee include content and broadcasting, film production and
Net working cap to sales % 85.6 83.0 distribution and education business (learning centers in animation and media arts).
Current ratio x 3.5 3.4
Inventory Turnover Days 1 1 The company's performance improved remarkably in FY08 with a 22% increase in its
Debtors Turnover Days 128 117 Gross Rating Points (GRPs). The flagship channel Zee TV is now the number two
Net fixed assets Rs m 14,841 15,605 channel in the general entertainment space and is slowly closing in on the market
Share capital Rs m 434 434 leader Star Plus. In fact, Zee TV currently has 24 out of the top 50 programmes. Zee
"Free" reserves Rs m 26,396 29,204 Cinema also maintained its leadership position with 37% share among movie
channels. On a comparable basis, Zee Entertainment's consolidated topline grew
Net worth Rs m 26,179 28,611
21% YoY and its net profit grew 61% YoY. A hike in the advertisement rates led to an
Long term debt Rs m 1,057 2,011
improvement on the profitability front.
Total assets Rs m 35,255 39,629
Interest coverage x 16.4 20.5 Zee's advertising revenues would continue to increase at a fast rate in the future due
Debt to equity ratio x 0.0 0.1 to its strong position in the general entertainment category (GEC). Subscription
Sales to assets ratio x 0.4 0.5 revenues will also increase due to the rollout of CAS and DTH. The entry of other
Return on assets % 9.5 13.5 players such as UTV, NDTV, TV18 in the GEC space can, however, cause a dent in
Return on equity % 9.1 13.4 the viewership ratings of Zee Entertainment and adversely affect its advertisement
Return on capital % 13.2 18.7 and subscription revenues. The slow rollout of CAS and DTH will cause a decline in
Exports to sales % 6.1 4.3 its revenues.
Imports to sales % 4.5 0.6
GET MORE INFO AT WWW.EQUITYMASTER.COM

176
 Regd off: 135, Continental Building, Dr. Annie Besant Rd, Worli, Mumbai - 400 018
ZEE NEWS LTD. E-Mail: sanghavip@zeenetwork.com
Web site: www.zeenews.com
Telephone: (022) 6697 1234 Fax: (022) 2495 5974
MEDIA SUBHASH CHANDRA Tr agent: Sharepro, Satam Estate, III Flr, Chakala, Andheri (E), Mumbai-99
Chairman: Subhash Chandra SEC: Pushpal Sanghavi AUD: MGB & Co
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
2006 532794 ZEEN:IN 1 46.0 6.5 -25.4 29.7 24.2 0.9 11,029.0 1,103.9 INE966H01019
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 54.1% Exports (fob) Rs m 72
Foreign collaborators : 0.0% Imports (cif) Rs m 49 (Rs)
Indian inst/Mut Fund : 20.6% Fx inflow Rs m 96 100
FIIs/GDR : 10.4% Fx outflow Rs m 91
Free float : 14.8% Net fx Rs m 5
Shareholders : 116,117
80
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
60
High Rs NM 59 92
Low Rs NM 30 37
Sales per share Rs 18.1 10.0 15.3
Earnings per share Rs 0.7 0.3 1.5 40
Cash flow per share Rs 1.4 0.5 1.9 DAILY
Dividends per share Rs 0.00 0.00 0.40 100 DMA
Dividend yield (eoy) % NM 0.0 0.6
20
Book value per share Rs 87.5 7.6 8.6
Shares outstanding (eoy) m 19.85 239.76 239.76 Jan-07 Jun-07 Nov-07 Apr-08 Sep-08
Bonus/Rights/Conversions - FV1,OI -
Price / Sales ratio x NM 4.4 4.2 No. of months 12 12 12
Avg P/E ratio x NM 144.2 41.7 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x NM 84.7 33.9
Price / Book Value ratio x NM 5.9 7.5 From Operations Rs m 239 -506 -25
Dividend payout % 0.0 0.0 25.9 From Investments Rs m -1,695 1,076 -92
Avg Mkt Cap Rs m NM 10,669 15,465 From Financial Activity Rs m 1,459 -541 115
No. of employees `000 NA NA NA Net Cashflow Rs m 3 29 -2
Total wages/salary Rs m 96 368 487
Avg. sales/employee Rs Th NA NA NA INTERIM RESULTS
Avg. wages/employee Rs Th NA NA NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA NA NA Net sales Rs m 798 983 1,131 1,127
Gross profit Rs m 107 221 267 175
INCOME DATA Gross profit margin % 13.4 22.5 23.6 15.5
Net Sales Rs m 359 2,405 3,675 Net profit Rs m 56 128 152 94
Other income Rs m 4 131 14 Net profit margin % 7.0 13.0 13.4 8.3
Total revenues Rs m 363 2,536 3,689
Gross profit Rs m 40 71 677 KEY DATA
Depreciation Rs m 15 52 85 Parameters Unit FY06 FY07 FY08
Interest Rs m 13 46 5 Broadcasting % of sales NA 95.2 97.9
Profit before tax Rs m 16 104 601 Program / film rights % of sales NA 4.8 2.1
Minority Interest Rs m 3 16 2 Transmission Cost % of sales NA 2.8 2.0
Prior Period Items Rs m 0 0 -4 Advertisement % of sales NA 6.2 2.7
Extraordinary Inc (Exp) Rs m 0 0 0
Tax Rs m 6 46 228
NOTES
Profit after tax Rs m 13 74 371
Gross profit margin % 11.1 3.0 18.4 Zee News is part of the Essel group. Currently, the company operates 9 channels out
Effective tax rate % 37.5 44.2 37.9 of which 3 are news and the remaining 6 are regional entertainment channels. The
channels operated by the company are Zee News, Zee Business, Zee 24 Taas, Zee
Net profit margin % 3.6 3.1 10.1
Punjabi, Zee Marathi, Zee Bangla, Zee Gujarati, Zee Telugu and Zee Kannada. In
BALANCE SHEET DATA addition, Zee Akaash News Pvt. Ltd, a company in which the Company has a 60%
stake, operates 24 Ghanta, a 24X7 Bengali news channel. The company has an
Current assets Rs m 2,340 2,027 2,816 arrangement with Zee Turner to distribute its pay channels bouquet in India and
Current liabilities Rs m 604 973 1,407 neighbouring countries. Zee Turner has also been assigned to distribute the
Net working cap to sales % 483.6 43.8 38.3 company's bouquet of pay channels on DTH platforms as well.
Current ratio x 3.9 2.1 2.0
Inventory Turnover Days 4 0 0 During FY08, the company achieved a consolidated topline growth of 53% and a
Debtors Turnover Days 762 155 141 396% growth in bottomline on account of improved contribution and healthy growth
Net fixed assets Rs m 568 808 812 in sales of Zee Aakash News Pvt. Ltd. Advertising revenues make up 71.2% of the
Share capital Rs m 133 240 240 company's revenues and this trend is likely to continue in the foreseeable future. The
"Free" reserves Rs m 77 228 487 regional channels continued to grow at double-digit rates.
Net worth Rs m 1,737 1,813 2,071 Going forward, the company aims at improving its position in the television
Long term debt Rs m 7 7 9 broadcasting segment with a focused approach for all 10 channels, expanding its
Total assets Rs m 2,908 2,835 3,628 channel bouquet offerings and focusing on shareholder value enhancement.
Interest coverage x 2.2 3.3 121.2 However, competition is ever increasing with new players entering the news
Debt to equity ratio x 0.0 0.0 0.0 broadcasting industry. Moreover, the company's future prospects depend on
Sales to assets ratio x 0.1 0.8 1.0 viewership ratings and the performance of advertising media like radio, outdoor and
Return on assets % 1.5 6.6 18.1 print. Economic cycles also have a cascading effect on the budgets of advertisers.
Return on equity % 0.7 4.1 17.9
Return on capital % 1.8 9.1 29.0
Exports to sales % 3.3 3.0 2.0
Imports to sales % 0.0 5.4 1.3
GET MORE INFO AT WWW.EQUITYMASTER.COM

177
MISCELLANEOUS

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178
 Regd off: 19, Bishop Gardens, Raja Annamalaipuram, Chennai - 600 028
APOLLO HOSPITALS ENTERPRISE LTD. E-Mail: investor.relations@apollohospitals.com
Web site: www.apollohospitals.com
Telephone: (044) 2829 3896 Fax: (044) 2829 0956
HEALTH SERVICES MISCELLANEOUS Tr agent: Integrated Enterprises, Kences Tower, II Flr., T. Nagar, Chennai - 17
Chairman: Dr. Prathap C. Reddy SEC: S. K. Venkataraman (CFO) AUD: S. Viswanathan
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1979 508869 APHS:IN 10 512.0 5.0 5.8 39.0 23.3 1.2 30,049.3 9.5 INE437A01016
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 27.5% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 304 (Rs)
Indian inst/Mut Fund : 0.9% Fx inflow Rs m 130 610
FIIs/GDR : 30.2% Fx outflow Rs m 453
Free float : 41.5% Net fx Rs m -323
Shareholders : 28,555
540
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
470
High Rs 589 577 627
Low Rs 318 340 365
Sales per share Rs 150.1 183.9 207.0
Earnings per share Rs 10.3 18.5 13.1 400
Cash flow per share Rs 17.7 26.4 21.9 DAILY
Dividends per share Rs 4.50 5.00 6.00 100 DMA
Dividend yield (eoy) % 1.0 1.1 1.2
330
Book value per share Rs 121.8 146.0 221.4
Shares outstanding (eoy) m 50.60 51.64 58.69 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions GDR WC PP
Price / Sales ratio x 3.0 2.5 2.4 No. of months 12 12 12
Avg P/E ratio x 44.1 24.8 37.8 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 25.6 17.4 22.6
Price / Book Value ratio x 3.7 3.1 2.2 From Operations Rs m 848 914 474
Dividend payout % 43.8 27.1 45.7 From Investments Rs m -2,852 -1,265 -5,464
Avg Mkt Cap Rs m 22,947 23,677 29,110 From Financial Activity Rs m 2,259 526 5,496
No. of employees `000 10 13 16 Net Cashflow Rs m 255 175 506
Total wages/salary Rs m 1,121 1,410 1,931
Avg. sales/employee Rs Th 745.6 719.8 762.7 INTERIM RESULTS
Avg. wages/employee Rs Th 110.0 106.9 121.2 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 51.0 72.3 48.4 Net sales Rs m 2,809 2,891 3,040 3,291
Gross profit Rs m 489 434 393 541
INCOME DATA Gross profit margin % 17.4 15.0 12.9 16.4
Net Sales Rs m 7,597 9,495 12,148 Net profit Rs m 236 263 219 292
Other income Rs m 95 71 253 Net profit margin % 8.4 9.1 7.2 8.9
Total revenues Rs m 7,692 9,566 12,401
Gross profit Rs m 1,161 1,452 1,598 KEY DATA
Depreciation Rs m 378 408 517 Parameters Unit FY06 FY07 FY08
Interest Rs m 166 146 227 Hospital sales % of sales 99.1 85.6 82.9
Profit before tax Rs m 712 969 1,107 Retail pharmacy sales % of sales 0.0 13.7 16.3
Minority Interest Rs m 46 0 39 Occupancy ratio % 72.0 77.0 79.0
Prior Period Items Rs m 0 -33 -14 Beds (owned & managed) Nos 4,776 5,291 5,371
Extraordinary Inc (Exp) Rs m 0 310 0 Average length of stay Days 5.7 6.4 5.9
Tax Rs m 238 292 361
NOTES
Profit after tax Rs m 520 954 771
Gross profit margin % 15.3 15.3 13.2 Apollo Hospitals is the largest healthcare group in Asia. Besides owning and
Effective tax rate % 33.4 30.1 32.6 managing hospitals, the Group has leadership positions in hospital project consulting,
healthcare technology and education, medical BPO, retail pharmacies and health &
Net profit margin % 6.8 10.0 6.3
lifestyle clinics. The Group has a chain of 41 hospitals with over 8,000 beds. The
BALANCE SHEET DATA Group also boasts of the largest retail pharmacy chain in India spanning over 200
stores. During the period between FY02 and FY08, the company has grown
Current assets Rs m 3,627 4,159 6,331 consolidated revenues and net profits at compounded rates of 22% and 23%
Current liabilities Rs m 2,087 2,478 3,230 respectively. Its average EBDITA margin for the past five fiscals has been 16.7%,
Net working cap to sales % 20.3 17.7 25.5 which is commendable.
Current ratio x 1.7 1.7 2.0
Inventory Turnover Days 23 23 26 FY08 was a mixed year for the company. While revenues and net profits grew by 28%
Debtors Turnover Days 43 42 43 YoY and 20% YoY respectively, operating margins fell by 1% to 15.3%. The
Net fixed assets Rs m 6,593 7,816 9,541 bottomline growth (excluding the extraordinary item) was in tandem with the growth
Share capital Rs m 506 516 587 in operating profits largely due to a considerably higher other income.
"Free" reserves Rs m 5,336 6,595 12,209
Going forward, on the back of its owned and managed hospitals, Apollo is expected
Net worth Rs m 6,163 7,541 12,993 to benefit from the opportunity that a country with large population like India provides.
Long term debt Rs m 1,514 3,271 5,100 Apart from this, changing lifestyles of customers, increased medical tourism and the
Total assets Rs m 12,013 14,450 22,351 Group's competencies in new specialties is likely to stand it in good stead. On the
Interest coverage x 5.3 7.6 5.9 innovation front, the relationship with John Hopkins Medicine International to jointly
Debt to equity ratio x 0.2 0.4 0.4 develop state-of-the-art concepts, clinical research and medical education will prove
Sales to assets ratio x 0.6 0.7 0.5 to be a big beneficiary for the company. However, intensifying competition from other
Return on assets % 8.9 10.2 5.5 healthcare groups like Wockhardt, Fortis and Max and ability to acquire and retain top
Return on equity % 8.4 12.7 5.9 talent might prove to be the two big challenges for Apollo.
Return on capital % 12.0 12.9 7.5
Exports to sales % 0.0 0.0 0.0
Imports to sales % 2.2 2.4 2.5
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179
 Regd off: Concor Bhavan, C-3, Mathura Rd, Opp. Apollo Hospitals, New Delhi - 76
CONTAINER CORPORATION OF INDIA LTD. E-Mail: co@concorindia.com
Web site: www.concorindia.com
Telephone: (011) 4167 3093 Fax: (011) 4167 3112
LOGISTICS GOVERNMENT Tr agent: Alankit Assign., RTA Div, E/8,1st Flr, Jhandewala Extn, New Delhi - 55
Chairman: V. N. Mathur SEC: Ravi Khandelwal (Ex. Dir. Accounts) AUD: Hingorani M. & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1988 531344 CCRI:IN 10 899.4 6.9 -18.0 15.9 13.9 2.1 116,915.5 1.0 INE111A01017
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 63.1% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 456 (Rs)
Indian inst/Mut Fund : 6.2% Fx inflow Rs m 0 1250
FIIs/GDR : 27.6% Fx outflow Rs m 460
Free float : 3.1% Net fx Rs m -460
Shareholders : 21,925
1075
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
900
High Rs 1,550 2,298 2,444
Low Rs 790 1,280 1,530
Sales per share Rs 374.3 472.8 519.2
Earnings per share Rs 80.9 108.2 112.9 725
Cash flow per share Rs 93.7 122.6 129.6 DAILY
Dividends per share Rs 18.00 22.00 18.50 100 DMA
Dividend yield (eoy) % 1.5 1.2 0.9
550
Book value per share Rs 321.7 404.5 487.0
Shares outstanding (eoy) m 65.00 65.00 65.00 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 3.1 3.8 3.8 No. of months 12 12 12
Avg P/E ratio x 14.5 16.5 17.6 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 12.5 14.6 15.3
Price / Book Value ratio x 3.6 4.4 4.1 From Operations Rs m 5,481 7,527 6,974
Dividend payout % 22.3 20.3 16.4 From Investments Rs m -2,737 -2,556 -1,023
Avg Mkt Cap Rs m 76,050 116,285 129,155 From Financial Activity Rs m -1,479 -1,109 -1,500
No. of employees `000 1 1 1 Net Cashflow Rs m 1,265 3,862 4,450
Total wages/salary Rs m 296 368 561
Avg. sales/employee Rs Th 23,486.5 28,452.8 29,761.9 INTERIM RESULTS
Avg. wages/employee Rs Th 285.7 340.7 494.7 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 5,075.3 6,514.8 6,473.5 Net sales Rs m 8,188 8,432 9,036 8,228
Gross profit Rs m 2,121 2,300 2,322 2,390
INCOME DATA Gross profit margin % 25.9 27.3 25.7 29.0
Net Sales Rs m 24,332 30,729 33,750 Net profit Rs m 1,741 1,930 2,030 2,019
Other income Rs m 560 740 1,537 Net profit margin % 21.3 22.9 22.5 24.5
Total revenues Rs m 24,892 31,469 35,287
Gross profit Rs m 6,977 9,017 8,878 KEY DATA
Depreciation Rs m 833 936 1,085 Parameters Unit FY06 FY07 FY08
Interest Rs m 2 0 26 EXIM revenues % of sales 78.3 80.5 79.1
Profit before tax Rs m 6,702 8,821 9,304 Domestic revenues % of sales 21.7 19.5 20.9
Minority Interest Rs m 0 0 0 EXIM throughput 000 TEUs 1,557 1,716 1977
Prior Period Items Rs m 21 77 17 Domestic throughput 000 TEUs 374 390 470
Extraordinary Inc (Exp) Rs m 0 0 0 Rail freight expenses % of sales 52.8 56.7 57.5
Tax Rs m 1,465 1,862 1,980
NOTES
Profit after tax Rs m 5,258 7,036 7,341
Gross profit margin % 28.7 29.3 26.3 Container Corporation of India (Concor) is a near monopoly as far as container train
Effective tax rate % 21.9 21.1 21.3 operations in India are concerned. Besides transportation, Concor provides a number
of value added services like warehousing (both transit as well as bonded), less than
Net profit margin % 21.6 22.9 21.8
container load (LCL) consolidation, custom clearance, factory stuffing and destuffing,
BALANCE SHEET DATA container maintenance and reefer services (for perishable cargo). In 2006, the
company entered into the cold chain business by setting-up a wholly owned
Current assets Rs m 8,884 13,844 19,000 subsidiary - Fresh and Healthy Enterprises Ltd. Over the past few years, the
Current liabilities Rs m 3,602 4,685 5,486 company has significantly ramped up its fleet of high-speed wagons. As of March
Net working cap to sales % 21.7 29.8 40.0 2008, the company had a total base of 8,421 wagons (including wagons leased from
Current ratio x 2.5 3.0 3.5 the Indian Railways) and a network of 58 rail-linked terminals, with additional three
Inventory Turnover Days 1 1 2 terminals likely to be completed within the current fiscal.
Debtors Turnover Days 1 1 2
Net fixed assets Rs m 15,774 18,086 19,177 During FY08, Concor recorded a 9% YoY growth in its topline on the back of higher
Share capital Rs m 650 650 650 volumes as the realisations (freight rates), remained stable during the year. During
"Free" reserves Rs m 20,262 25,647 31,006 FY08, Concor clocked operating margins of 27%, lower by 2.2 % as compared to
FY07. This drop in margins was on account of higher staff costs and land lease
Net worth Rs m 20,912 26,295 31,655
charges (that Concor pays to Indian Railways). However, a stable topline growth and
Long term debt Rs m 0 303 499
higher other income led the company to grow its profits at 9% YoY.
Total assets Rs m 25,952 32,897 39,380
Interest coverage x 3,352.0 NM 358.8 As the Indian Railways Association has opened up the sector to new players, the
Debt to equity ratio x 0.0 0.0 0.0 main concern for Concor will be the reduction in its market share in the long term.
Sales to assets ratio x 0.9 0.9 0.9 However, on the other side, a handful of private players have tied-up with Concor to
Return on assets % 25.2 26.5 22.9 avoid duplication of infrastructure and problems of wagon shortages in the country.
Return on equity % 25.1 26.8 23.2 Also, the fact that Concor has a well-established network and infrastructure, is likely
Return on capital % 32.2 33.5 29.1 to work in favour of the company going forward.
Exports to sales % 0.0 0.0 0.0
Imports to sales % 1.3 1.1 1.4
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180
 Regd off: CRISIL House, 121-122, Andheri-Kurla Road, Andheri (E), Mumbai-93
CRISIL INDIA LIMITED E-Mail: investor@crisil.com
Web site: www.crisil.com
Telephone: (022) 6691 3001 Fax: (022) 6691 3000
CREDIT RATING MISCELLANEOUS Tr agent: Karvy Computer, Plot 17-24, Vithalrao Nagar, Madhapur, Hyderabad-81
Chairman: B. V. Bhargava SEC: Shrikant Dev AUD: S. R. Batliboi & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1987 500092 CRISIL:IN 10 3,590.9 -2.4 -4.3 31.0 26.1 0.7 25,962.2 0.1 INE007A01017
SHAREHOLDING FX Transaction (CY07) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 0
Foreign collaborators : 51.5% Imports (cif) Rs m 0 (Rs)
Indian inst/Mut Fund : 15.0% Fx inflow Rs m 1,515 4800
FIIs/GDR : 10.0% Fx outflow Rs m 73
Free float : 23.5% Net fx Rs m 1,442
Shareholders : 6,157
3800
No. of months 9 12 12
Year ending 31/12/05 31/12/06 31/12/07
EQUITY SHARE DATA
2800
High Rs 1,710 2,499 4,275
Low Rs 622 1,055 2,020
Sales per share Rs 213.5 425.0 559.2
Earnings per share Rs 37.2 91.0 115.9 1800 DAILY
Cash flow per share Rs 45.6 102.7 137.6
100 DMA
Dividends per share Rs 10.00 15.00 25.00
Dividend yield (eoy) % 0.9 0.8 0.8
800
Book value per share Rs 200.5 279.4 382.3
Shares outstanding (eoy) m 6.58 6.76 7.23 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions ESOP ESOP ESOP
Price / Sales ratio x 5.5 4.2 5.6 No. of months 9 12 12
Avg P/E ratio x 31.3 19.5 27.1 Year ending 31/12/05 31/12/06 31/12/07
CASH FLOW
P/CF ratio (eoy) x 25.6 17.3 22.9
Price / Book Value ratio x 5.8 6.4 8.2 From Operations Rs m 300 625 709
Dividend payout % 26.9 16.5 21.6 From Investments Rs m -296 -426 -730
Avg Mkt Cap Rs m 7,672 12,013 22,741 From Financial Activity Rs m 7 -11 68
No. of employees `000 1 1 2 Net Cashflow Rs m 11 188 47
Total wages/salary Rs m 526 1,157 1,529
Avg. sales/employee Rs Th 1,299.7 1,936.0 2,310.3 INTERIM RESULTS
Avg. wages/employee Rs Th 486.6 779.6 873.7 3QCY07 4QCY07 1QCY08 2QCY08
Avg. net profit/employee Rs Th 226.6 414.4 478.9 Net sales Rs m 993 1,197 1,167 1,251
Gross profit Rs m 305 355 127 400
INCOME DATA Gross profit margin % 30.7 29.7 10.9 32.0
Net Sales Rs m 1,405 2,873 4,043 Net profit Rs m 269 225 315 356
Other income Rs m 16 47 46 Net profit margin % 27.1 18.8 27.0 28.5
Total revenues Rs m 1,421 2,920 4,089
Gross profit Rs m 389 807 1,172 KEY DATA
Depreciation Rs m 55 79 157 Parameters Unit CY05 CY06 CY07
Interest Rs m 0 0 0 Rating fees / Total income % 27.6 32.3 24.8
Profit before tax Rs m 350 775 1,061 Employees nos. 546 1,484 1,750
Minority Interest Rs m 0 0 0 Revenue / employee Rs m 1.6 1.1 1.6
Prior Period Items Rs m 0 0 -4 Profit / employee Rs m 0.3 0.2 0.4
Extraordinary Inc (Exp) Rs m 5 28 46 Net profit margin % 17.4 21.4 20.7
Tax Rs m 110 188 265
NOTES
Profit after tax Rs m 245 615 838
Gross profit margin % 27.7 28.1 29.0 CRISIL (set up in 1987) is India's first and largest credit rating agency with 72%
Effective tax rate % 31.4 24.3 25.0 penetration in volume terms in the country's debt rating services. It is also a leading
global gas advisory, infrastructure and risk solutions provider. In addition, it provides
Net profit margin % 17.4 21.4 20.7
outsourced research and business solutions. The company had 1,750 employees at
BALANCE SHEET DATA the end of December 2007. International revenues comprised nearly 68% of the
agency's total revenue at the end of 2007. The company is also into sectoral and
Current assets Rs m 642 1,215 1,733 economic research (information services) and grades IPOs, mutual funds and real
Current liabilities Rs m 497 868 1,349 estate projects. Standard & Poor's, a division of McGraw Hill, is CRISIL's principal
Net working cap to sales % 10.3 12.1 9.5 promoter and strategic partner. CRISIL's consolidated revenue grew at a CAGR of
Current ratio x 1.3 1.4 1.3 33% YoY while the consolidated bottomline grew a CAGR of 40% YoY over the last
Inventory Turnover Days 0 0 0 5 years.
Debtors Turnover Days 89 85 81
Net fixed assets Rs m 728 1,172 1,372 While revenue from research and information services grew by 56% YoY in CY07,
Share capital Rs m 66 68 72 those from rating services grew 44% YoY. Growth in rating business was relatively
"Free" reserves Rs m 1,251 1,814 2,222 broad based in CY07, unlike in CY06. The EBIDTA margins remained consistent at
30% as was the case over the past 4 years.
Net worth Rs m 1,319 1,889 2,764
Long term debt Rs m 0 0 0 The next two years are likely to offer significant opportunities to CRISIL with nearly
Total assets Rs m 1,850 2,787 4,080 6,500 entities to be rated for Basel-II by 2010. The company intends to further
Interest coverage x NM NM NM develop its relationship with Standard & Poor's to explore various business
Debt to equity ratio x 0.0 0.0 0.0 opportunities with them. The contribution from consultancy and information services
Sales to assets ratio x 0.8 1.0 1.0 to CRISIL's fee revenue is set to improve in the medium term. It has, however, faced
Return on assets % 18.6 32.6 30.3 a high attrition rate over the last 3 fiscals. It also faces a continuing challenge to
Return on equity % 18.6 32.6 30.3 recruit a sufficient number of suitably skilled personnel, particularly as it continues to
Return on capital % 26.9 42.5 39.9 grow. The high attrition levels may add to its increasing personnel expenditures and
Exports to sales % 0.0 0.0 0.0 hamper CRISIL's growth going forward.
Imports to sales % 0.0 0.0 0.0
GET MORE INFO AT WWW.EQUITYMASTER.COM

181
 Regd off: P.O. Vasind, Taluka Shahapur, Dist. Thane, Maharashtra - 421 604
ESSEL PROPACK LIMITED E-Mail: ajay.nagle@ep.esselgroup.com
Web site: www.esselpropack.com
Telephone: (022) 2481 9000 Fax: (022) 2496 3137
PACKAGING MISCELLANEOUS Tr agent: Sharepro Services, 912, Raheja Centre, FPJ Road, Mumbai - 400 021
Chairman: Subhash Chandra SEC: Ajay Nagle AUD: MGB & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1982 500135 ESEL:IN 2 26.5 -3.6 -55.2 6.8 3.3 4.5 4,149.9 820.1 INE255A01020
SHAREHOLDING FX Transaction (CY07) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 37.0% Exports (fob) Rs m 266
Foreign collaborators : 21.9% Imports (cif) Rs m 807 (Rs)
Indian inst/Mut Fund : 10.7% Fx inflow Rs m 630 100
FIIs/GDR : 4.8% Fx outflow Rs m 878
Free float : 25.7% Net fx Rs m -248
Shareholders : 29,781
80
No. of months 12 12 12
Year ending 31/12/05 31/12/06 31/12/07
EQUITY SHARE DATA
60
High Rs 386 97 89
Low Rs 258 61 46
Sales per share Rs 260.7 64.5 76.2
Earnings per share Rs 28.8 6.3 3.9 40
DAILY
Cash flow per share Rs 53.3 11.8 8.1
Dividends per share Rs 22.00 2.00 1.20 100 DMA
Dividend yield (eoy) % 6.8 2.5 1.8
20
Book value per share Rs 222.6 48.7 52.2
Shares outstanding (eoy) m 31.32 156.60 156.60 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - FV2 -
Price / Sales ratio x 1.2 1.2 0.9 No. of months 12 12 12
Avg P/E ratio x 11.2 12.5 17.4 Year ending 31/12/05 31/12/06 31/12/07
CASH FLOW
P/CF ratio (eoy) x 6.0 6.7 8.3
Price / Book Value ratio x 1.4 1.6 1.3 From Operations Rs m 1,293 1,582 845
Dividend payout % 76.4 31.8 30.9 From Investments Rs m -1,213 -1,483 -1,741
Avg Mkt Cap Rs m 10,085 12,371 10,571 From Financial Activity Rs m -24 -170 1,000
No. of employees `000 2 2 3 Net Cashflow Rs m 56 -72 104
Total wages/salary Rs m 1,337 1,956 2,270
Avg. sales/employee Rs Th 4,875.2 5,120.8 4,421.5 INTERIM RESULTS
Avg. wages/employee Rs Th 798.2 992.4 840.7 3QCY07 4QCY07 1QCY08 2QCY08
Avg. net profit/employee Rs Th 538.5 500.3 225.6 Net sales Rs m 3,141 2,830 2,829 3,113
Gross profit Rs m 445 218 468 398
INCOME DATA Gross profit margin % 14.2 7.7 16.5 12.8
Net Sales Rs m 8,166 10,093 11,938 Net profit Rs m 121 12 44 -98
Other income Rs m 304 297 428 Net profit margin % 3.9 0.4 1.6 -3.1
Total revenues Rs m 8,470 10,390 12,366
Gross profit Rs m 1,932 2,180 1,841 KEY DATA
Depreciation Rs m 766 865 667 Parameters Unit CY05 CY06 CY07
Interest Rs m 253 357 674 India share % of sales 30.9 28.0 26.1
Profit before tax Rs m 1,217 1,255 928 America & Europe % of sales 40.7 47.5 46.0
Minority Interest Rs m -7 -34 -43 East Asia Pacific % of sales 30.6 25.9 23.3
Prior Period Items Rs m 0 0 0 selling expenses % of sales 2.4 1.9 2.7
Extraordinary Inc (Exp) Rs m 0 46 -71 Gross margins % 31.4 29.7 24.2
Tax Rs m 308 281 205
NOTES
Profit after tax Rs m 902 986 609
Gross profit margin % 23.7 21.6 15.4 Essel Propack Limited (EPL), promoted by Essel group is the world's largest
Effective tax rate % 25.3 22.4 22.1 packaging company in laminated tubes. The company's operation spans over 15
countries with 25 plants. The company's global sales stand at around 5 bn tubes,
Net profit margin % 11.0 9.8 5.1
which is 32% of the global laminated tubes market. The company caters to the oral
BALANCE SHEET DATA care, cosmetics, personal care, pharmaceutical, food and industrial sectors. Over the
years, the company has acquired the tubing business of the Propack group, UK
Current assets Rs m 4,039 4,923 5,754 based Arista Tubes and Telecon Packaging and recently Packaging India. EPL also
Current liabilities Rs m 2,102 2,409 2,519 acquired 85% equity stake in the medical devices companies Tacpro Inc USA and
Net working cap to sales % 23.7 24.9 27.1 Avalon Medical Services Pte Ltd, Singapore (both under the same management) in
Current ratio x 1.9 2.0 2.3 April 2006.
Inventory Turnover Days 52 58 58
Debtors Turnover Days 46 55 47 On a consolidated basis, the company reported a 2% YoY rise in the topline in
Net fixed assets Rs m 8,935 10,209 11,741 1HCY08 The domestic markets grew by 7.8% YoY, while the international business
Share capital Rs m 313 313 313 reported flat growth The new facilities in US and Poland have yet not started
"Free" reserves Rs m 6,325 6,932 7,270 contributing significantly. The margins fell to 15% in 1HCY08 (19% in 1HCY07) led by
f higher raw material and staff costs. It reported losses for 1HCY08 led by lower
Net worth Rs m 6,971 7,630 8,173
margins, lower other income and higher interest costs
Long term debt Rs m 3,076 4,490 4,747
Total assets Rs m 13,394 15,556 17,944 Essel Propack for a long time had been known as a single-product company.
Interest coverage x 5.8 4.5 2.4 However, now it is transforming into multi product company and its future growth is
Debt to equity ratio x 0.4 0.6 0.6 expected to be driven by its four verticals namely laminated tubes, plastic tubes,
Sales to assets ratio x 0.6 0.6 0.7 specialty packaging and medical devices. . Though the company has entered new
Return on assets % 11.5 11.1 9.9 segments like pharma, cosmetics and medical devices, the contribution from these
Return on equity % 12.9 12.9 7.5 segments is yet to flow in. However, higher raw material costs would continue to
Return on capital % 14.6 13.4 11.5 affect the company in the medium term.
Exports to sales % 3.8 2.8 2.2
Imports to sales % 12.2 10.0 6.8
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182
 Regd off: Yashad Bhawan, Udaipur - 313 004
HINDUSTAN ZINC LIMITED E-Mail: investorgrievanceshzl@vedanta.co.in
Web site: www.hzlindia.com
Telephone: (0294) 242 0813 Fax: (0294) 242 7022
STEEL & RELATED MISCELLANEOUS Tr agent: Sharepro Services, Satam Est., 3rd Flr., C. G. Rd., Chakala, Mumbai - 99
Chairman: Agnivesh Agarwal SEC: Rajendra Pandwal AUD: Deloitte Haskins & Sells
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1966 500188 HZ:IN 10 565.4 -5.8 -19.6 5.4 5.2 0.9 238,877.3 12.2 INE267A01017
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 64.9% Exports (fob) Rs m 22,575
Foreign collaborators : 0.0% Imports (cif) Rs m 3,774 (Rs)
Indian inst/Mut Fund : 30.9% Fx inflow Rs m 22,575 1150
FIIs/GDR : 2.3% Fx outflow Rs m 4,362
Free float : 1.9% Net fx Rs m 18,213
Shareholders : 47,513
900
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
650
High Rs 540 1,119 969
Low Rs 141 415 507
Sales per share Rs 92.1 202.6 186.4
Earnings per share Rs 34.8 105.1 104.0 400
Cash flow per share Rs 38.1 108.8 109.3 DAILY
Dividends per share Rs 2.50 5.00 5.00 100 DMA
Dividend yield (eoy) % 0.7 0.7 0.7
150
Book value per share Rs 81.2 180.5 280.4
Shares outstanding (eoy) m 422.53 422.53 422.53 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 3.7 3.8 4.0 No. of months 12 12 12
Avg P/E ratio x 9.8 7.3 7.1 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 8.9 7.0 6.8
Price / Book Value ratio x 4.2 4.2 2.6 From Operations Rs m 12,652 46,046 42,080
Dividend payout % 7.2 4.8 4.8 From Investments Rs m -10,680 -37,299 -26,936
Avg Mkt Cap Rs m 143,871 324,081 311,827 From Financial Activity Rs m -1,453 -8,290 -2,713
No. of employees `000 6 6 6 Net Cashflow Rs m 519 457 12,431
Total wages/salary Rs m 2,062 2,519 3,095
Avg. sales/employee Rs Th 6,463.4 13,459.6 12,388.4 INTERIM RESULTS
Avg. wages/employee Rs Th 342.6 396.1 486.7 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 2,446.4 6,984.1 6,913.2 Net sales Rs m 19,840 16,580 22,660 16,437
Gross profit Rs m 14,190 10,440 14,810 9,777
INCOME DATA Gross profit margin % 71.5 63.0 65.4 59.5
Net Sales Rs m 38,903 85,603 78,778 Net profit Rs m 11,480 7,850 12,780 8,478
Other income Rs m 1,158 2,313 8,516 Net profit margin % 57.9 47.3 56.4 51.6
Total revenues Rs m 40,061 87,916 87,294
Gross profit Rs m 22,884 64,127 53,774 KEY DATA
Depreciation Rs m 1,383 1,561 2,205 Parameters Unit FY06 FY07 FY08
Interest Rs m 363 245 231 Zinc Installed Capacity THTPA 411 411 581
Profit before tax Rs m 22,296 64,634 59,854 Zinc Production THTPA 317.558 348.6 426.3
Minority Interest Rs m 0 0 0 Zinc % of sales 74.8 71.0 69.5
Prior Period Items Rs m 0 247 797 Lead % of sales 4.1 4.2 9.5
Extraordinary Inc (Exp) Rs m 0 -97 0
Tax Rs m 7,571 20,365 16,690
NOTES
Profit after tax Rs m 14,725 44,419 43,961
Gross profit margin % 58.8 74.9 68.3 Hindustan Zinc, the erstwhile Metal Corporation of India (MCI) is a Sterlite group
Effective tax rate % 34.0 31.5 27.9 company and is today India's leading zinc producer. The company also produces lead
and by-products viz. sulphuric acid and silver. The company is the only integrated
Net profit margin % 37.9 51.9 55.8
zinc producer in India and own captive Zinc mines that supply all of HZL's Zinc
BALANCE SHEET DATA concentrate requirements for its smelters. HZL has undertaken expansion projects in
mining as well as smelting which has raised the capacity of refined zinc to 581,000
Current assets Rs m 13,094 14,810 27,116 tonnes per annum and lead to 93,000 tonnes per annum.
Current liabilities Rs m 6,032 8,268 8,984
Net working cap to sales % 18.2 7.6 23.0 During FY08 the standalone topline of the company declined by 8% YoY on account
Current ratio x 2.2 1.8 3.0 of lower LME prices. However sales volume of zinc and lead grew by 13% and 30%
Inventory Turnover Days 36 21 24 YoY respectively. The operating profits showed a decline of 16% YoY due to lower
Debtors Turnover Days 65 24 21 LME prices and appreciation of rupee. Also the operating margins declined from 75%
Net fixed assets Rs m 19,181 28,706 41,626 in FY07 to 68% in FY08. The bottomline of company declined by 1% YoY, lower than
Share capital Rs m 4,225 4,225 4,225 the topline and operating profits was mainly on account of three fold jump in other
"Free" reserves Rs m 30,066 72,039 114,251 income and decreased interest and tax outgo. The production of zinc and lead stood
at 426,323 tonnes and 58,247 tonnes respectively.
Net worth Rs m 34,298 76,271 118,482
Long term debt Rs m 4 4 4 With GDP growing at about 8%, the demand for zinc is also expected to grow at
Total assets Rs m 48,323 87,548 132,067 about 8%-10% in the medium term. To cater to this growing demand, the company
Interest coverage x 62.4 264.8 260.1 has embarked on expanding its zinc-lead production capacity to 1.06 m tonnes per
Debt to equity ratio x 0.0 0.0 0.0 annum and two 80MW captive power plants with matching expansion of mining and
Sales to assets ratio x 0.8 1.0 0.6 ore dressing plant. With funds not being a problem, the company looks set to
Return on assets % 44.0 58.6 37.3 maintain its string of robust performance although the growth of the magnitude
Return on equity % 42.9 58.2 37.1 witnessed in the recent past may be hard to come by as metal prices have peaked.
Return on capital % 66.1 85.3 51.4
Exports to sales % 22.2 49.2 28.7
Imports to sales % 4.5 3.0 4.8
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183
 Regd off: 1105, Kailash Bldg., 11th flr, 26 Kasturba Gandhi Rd Marg, New Delhi - 1
ICRA LIMITED E-Mail: investors@icraindia.com
Web site: www.icra.in
Telephone: (0124) 454 5300 Fax: (0124) 454 5350
CREDIT RATING MISCELLANEOUS Tr agent: Intime Spectrum, A-31, Naraina Indl. Area, Phase 1, New Delhi - 28
Chairman: Dhruba N. Ghosh SEC: Vijay Wadhwa (CFO) AUD: Vipin Aggarwal & Asso.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1991 532835 ICRA:IN 10 610.3 -7.3 -36.9 21.4 18.9 1.6 6,102.5 0.4 INE725G01011
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 0
Foreign collaborators : 28.5% Imports (cif) Rs m 0 (Rs)
Indian inst/Mut Fund : 46.8% Fx inflow Rs m 1 1180
FIIs/GDR : 0.8% Fx outflow Rs m 3
Free float : 23.9% Net fx Rs m -2 DAILY
Shareholders : 25,656
1010 100 DMA
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
840
High Rs NM 1,125 1,175
Low Rs NM 525 528
Sales per share Rs 61.7 70.6 99.5
Earnings per share Rs 16.3 20.0 28.5 670
Cash flow per share Rs 18.9 22.9 32.3
Dividends per share Rs 4.00 4.50 10.00
Dividend yield (eoy) % NM 0.5 1.2
500
Book value per share Rs 106.0 147.1 163.9
Shares outstanding (eoy) m 8.80 10.00 10.00 Apr-07 Aug-07 Dec-07 Apr-08 Sep-08
Bonus/Rights/Conversions - PA -
Price / Sales ratio x NM 11.7 8.6 No. of months 12 12 12
Avg P/E ratio x NM 41.3 29.9 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x NM 36.0 26.4
Price / Book Value ratio x NM 5.6 5.2 From Operations Rs m 92 159 313
Dividend payout % 24.6 22.5 35.1 From Investments Rs m -34 -398 -183
Avg Mkt Cap Rs m NM 8,250 8,515 From Financial Activity Rs m -37 353 -53
No. of employees `000 <500 <500 <500 Net Cashflow Rs m 21 115 77
Total wages/salary Rs m 238 297 427
Avg. sales/employee Rs Th 7,240.0 9,051.3 9,299.1 INTERIM RESULTS
Avg. wages/employee Rs Th 3,173.3 3,807.7 3,990.7 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 1,906.7 2,564.1 2,663.6 Net sales Rs m 260 246 289 254
Gross profit Rs m 98 91 117 78
INCOME DATA Gross profit margin % 37.7 37.0 40.5 30.7
Net Sales Rs m 543 706 995 Net profit Rs m 82 68 92 73
Other income Rs m 50 60 79 Net profit margin % 31.5 27.6 31.8 28.7
Total revenues Rs m 593 766 1,074
Gross profit Rs m 180 241 363 KEY DATA
Depreciation Rs m 23 29 38 Parameters Unit FY06 FY07 FY08
Interest Rs m 1 0 0 Rating fees / Total income % 53.6 50.7 87.7
Profit before tax Rs m 206 272 404 Consulting / Total income % 22.2 17.7 12.3
Minority Interest Rs m 0 0 0 Operating profit margin % 46.6 54.2 65.3
Prior Period Items Rs m -7 0 0 Personnel exp. / Total income % 30.0 26.9 25.6
Extraordinary Inc (Exp) Rs m 0 0 0 Net profit margin % 26.3 28.3 28.6
Tax Rs m 56 72 119
NOTES
Profit after tax Rs m 143 200 285
Gross profit margin % 33.1 34.1 36.5 ICRA is the second largest credit rating agency in India after CRISIL with a 32% share
Effective tax rate % 27.2 26.5 29.5 in the country's debt rating services. It was established in 1991 by a consortium of
financial institutions. The company had 407 employees (352 professionally qualified)
Net profit margin % 26.3 28.3 28.6
and offices in 9 towns and cities at the end of December 2007. While the rating
BALANCE SHEET DATA services cater to corporate and financial sector debt issuances, the consulting
services have domain expertise in 5 sectors. The company is also into sectoral and
Current assets Rs m 284 28,966 973 economic research (information services) and grades IPOs, mutual funds and real
Current liabilities Rs m 184 28,454 522 estate projects. Moody's Corporation, a company incorporated in the US, is ICRA's
Net working cap to sales % 18.4 72.5 45.3 principal promoter and strategic partner.
Current ratio x 1.5 1.0 1.9
Inventory Turnover Days 0 0 0 ICRA's consolidated revenue grew by 40% YoY in FY08 while the consolidated
Debtors Turnover Days 87 101 80 bottomline was up 43% YoY. The rating business accounted for 56% of the
Net fixed assets Rs m 199 229 237 company's total income (51% in FY07) and 91% of its operating profits (80% in
Share capital Rs m 88 100 100 FY07). Growth in rating business was relatively broad based in FY08, unlike in FY07.
"Free" reserves Rs m 843 1,369 1,539 ICRA's total debt rating volume also grew by 46% YoY. Revenues from the rating
business grew by 55% YoY in FY08 while the operating profits grew by 61% YoY.
Net worth Rs m 933 1,471 1,639
Long term debt Rs m 1 0 0 ICRA intends to further develop its relationship with the Moody's Group to explore
Total assets Rs m 1,124 29,932 2,164 various business opportunities with them. In addition, the Indian rating agency has
Interest coverage x 207.0 NM NM entered into alliances with two rating agencies based outside India. The contribution
Debt to equity ratio x 0.0 0.0 0.0 from consultancy and information services to ICRA's fee revenue is set to improve in
Sales to assets ratio x 0.5 0.0 0.5 the medium term.
Return on assets % 15.4 13.6 17.4
Return on equity % 15.3 13.6 17.4
Return on capital % 21.4 18.5 24.6
Exports to sales % 0.0 0.0 0.0
Imports to sales % 0.0 0.0 0.0
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184
 Regd off: 43-A, Okhla Indl. Estate, New Delhi - 110 020
MOSER BAER INDIA LTD. E-Mail: shares@moserbaer.in
Web site: www.moserbaer.in
Telephone: (011) 4163 5201 Fax: (011) 4163 5211
COMPUTERS & OFFICE EQUIPMENT MISCELLANEOUS Tr agent: MCS Ltd, W-40, Okhla Indl Area, Phase-ll, New Delhi-20
Chairman: Deepak Puri SEC: Minni katariya AUD: Price Waterhouse
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1983 517140 MBI:IN 10 111.1 20.8 -64.3 - 7.7 0.9 18,699.2 1,368.2 INE739A01015
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 16.2% Exports (fob) Rs m 12,965
Foreign collaborators : 0.1% Imports (cif) Rs m 8,808 (Rs)
Indian inst/Mut Fund : 2.4% Fx inflow Rs m 13,442 370
FIIs/GDR : 35.4% Fx outflow Rs m 9,552
Free float : 45.9% Net fx Rs m 3,890
Shareholders : 57,278
290
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
210
High Rs 254 399 514
Low Rs 187 162 119
Sales per share Rs 149.2 177.8 123.0
Earnings per share Rs -0.6 7.1 -12.0 130
DAILY
Cash flow per share Rs 27.8 39.2 14.5
Dividends per share Rs 1.00 1.50 1.00 100 DMA
Dividend yield (eoy) % 0.5 0.5 0.3
50
Book value per share Rs 178.4 183.4 107.5
Shares outstanding (eoy) m 111.51 111.60 168.23 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - ESOP B1:2,ESOP
Price / Sales ratio x 1.5 1.6 2.6 No. of months 12 12 12
Avg P/E ratio x -384.2 39.7 -26.3 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 7.9 7.2 21.9
Price / Book Value ratio x 1.2 1.5 2.9 From Operations Rs m 1,826 5,812 1,441
Dividend payout % -174.2 21.2 -8.3 From Investments Rs m -3,017 -6,315 -11,332
Avg Mkt Cap Rs m 24,588 31,304 53,245 From Financial Activity Rs m -502 288 15,048
No. of employees `000 5 6 6 Net Cashflow Rs m -1,693 -214 5,158
Total wages/salary Rs m 1,033 1,480 2,341
Avg. sales/employee Rs Th 3,319.6 3,389.1 3,372.4 INTERIM RESULTS
Avg. wages/employee Rs Th 206.1 252.8 381.4 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th -12.8 134.6 -329.6 Net sales Rs m 4,466 5,117 4,711 4,789
Gross profit Rs m 1,124 958 810 355
INCOME DATA Gross profit margin % 25.2 18.7 17.2 7.4
Net Sales Rs m 16,641 19,840 20,700 Net profit Rs m 26 -362 -759 -1,040
Other income Rs m 559 766 1,069 Net profit margin % 0.6 -7.1 -16.1 -21.7
Total revenues Rs m 17,200 20,606 21,769
Gross profit Rs m 3,405 4,885 3,359 KEY DATA
Depreciation Rs m 3,168 3,582 4,458 Parameters Unit FY06 FY07 FY08
Interest Rs m 874 1,189 1,982 Debtor days Days 80 58 59
Profit before tax Rs m -78 880 -2,012 Inventory days Days 94 95 115
Minority Interest Rs m 0 10 12 Creditor days Days 76 111 100
Prior Period Items Rs m 7 0 0
Extraordinary Inc (Exp) Rs m 0 0 0
Tax Rs m -7 102 23
NOTES
Profit after tax Rs m -64 788 -2,023
Gross profit margin % 20.5 24.6 16.2 Moser Baer is one of the leading technology companies in India. Established in 1983,
Effective tax rate % 9.0 11.6 -1.1 the company successfully developed cutting edge technologies to become the
world's second largest manufacturer of Optical Storage media like CDs and DVDs. It
Net profit margin % -0.4 4.0 -9.8
also emerged as the first to market the next-generation of storage formats like Blu-
BALANCE SHEET DATA ray Discs and HD DVD. It recently transformed itself from a single business into a
multi-technology organisation, diversifying into areas of Solar Energy, Home
Current assets Rs m 12,857 13,798 22,206 Entertainment and IT Peripherals & Consumer Electronics.
Current liabilities Rs m 2,657 4,485 5,846
Net working cap to sales % 61.3 46.9 79.0 The topline of company declined by 4% YoY in FY08 mainly on account of slack in
Current ratio x 4.8 3.1 3.8 optical media sector due to demand supply imbalances and alternative technologies
Inventory Turnover Days 98 113 128 for data storage. The operating margins also declined by 360 bps to 22.7% due to
Debtors Turnover Days 83 61 66 steep appreciation of rupee and increase in energy costs. The company registered a
Net fixed assets Rs m 25,845 28,811 33,490 loss of around Rs 789 m in FY08 as compared to profit of Rs 1098 m in FY07, mainly
Share capital Rs m 1,115 1,116 1,682 on account of contracting margins and declining sales. However the company's
"Free" reserves Rs m 18,590 19,199 16,126 entertainment and solar energy business have made significant revenues and are
expected to increase their share to the total revenue. The company made huge
Net worth Rs m 19,888 20,471 18,077
investments during the year to expand capacities and to diversify its business.
Long term debt Rs m 12,891 14,604 27,565
Total assets Rs m 39,099 43,559 59,788 Through its wholly owned subsidiaries, the company manufactures photovoltaic cells
Interest coverage x 0.9 1.7 0.0 and thin films. It also offers home video titles in various Indian languages at
Debt to equity ratio x 0.6 0.7 1.5 unmatched prices and is also engaged in film production and theatrical distribution.
Sales to assets ratio x 0.4 0.5 0.3 The company has also initiated marketing of a series of IT Peripherals and Consumer
Return on assets % 2.5 5.6 -0.1 Electronics gadgets. With Blu-ray disc (BDR) emerging as the front runner in the high
Return on equity % -0.3 3.8 -11.2 definition media format, Moser Baer would enjoy a significant advantage as being the
Return on capital % 2.4 5.9 0.0 first non-Japanese Company to have developed its own technology for manufacturing
Exports to sales % 84.4 80.1 62.6 BDR and would benefit from the emerging industry dynamics and its high growth
Imports to sales % 78.5 57.8 42.6 potential, thus helping the company to grow in long term.
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185
 Regd off: Navneet Bhawan, Bhavani Shankar Road, Dadar, Mumbai - 400 028
NAVNEET PUBLICATIONS INDIA LTD. E-Mail: amit.buch@navneet.com
Web site: www.navneet.com
Telephone: (022) 6662 6565 Fax: (022) 6662 6470
MEDIA MISCELLANEOUS Tr agent: Intime Spectrum Ltd, C-13, Pannalal Mills Compd., LBS Marg, Mumbai-78
Chairman: Shivji K. Vikamsey SEC: Amit D. Buch AUD: Ghalla & Bhansali
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1984 508989 NPI:IN 2 67.1 -6.9 10.5 11.8 9.9 3.6 6,394.0 3.2 INE060A01024
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 61.8% Exports (fob) Rs m 291
Foreign collaborators : 0.0% Imports (cif) Rs m 75 (Rs)
Indian inst/Mut Fund : 6.6% Fx inflow Rs m 292 168
FIIs/GDR : 8.0% Fx outflow Rs m 91
DAILY
Free float : 23.6% Net fx Rs m 201
Shareholders : 13,902 100 DMA
136
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
104
High Rs 320 71 166
Low Rs 235 51 51
Sales per share Rs 155.5 34.9 43.1
Earnings per share Rs 18.5 4.5 5.7 72
Cash flow per share Rs 23.3 5.4 6.8
Dividends per share Rs 8.50 2.00 2.40
Dividend yield (eoy) % 3.1 3.3 2.2
40
Book value per share Rs 96.3 21.4 24.2
Shares outstanding (eoy) m 19.06 95.29 95.29 Sep-05 Jun-06 Mar-07 Dec-07 Sep-08
Bonus/Rights/Conversions - FV2 -
Price / Sales ratio x 1.8 1.7 2.5 No. of months 12 12 12
Avg P/E ratio x 15.0 13.6 19.1 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 11.9 11.4 16.0
Price / Book Value ratio x 2.9 2.8 4.5 From Operations Rs m 226 363 213
Dividend payout % 46.0 44.7 42.2 From Investments Rs m -71 -120 -278
Avg Mkt Cap Rs m 5,289 5,813 10,339 From Financial Activity Rs m -156 -216 69
No. of employees `000 NA NA NA Net Cashflow Rs m -1 28 4
Total wages/salary Rs m 240 275 322
Avg. sales/employee Rs Th NA NA NA INTERIM RESULTS
Avg. wages/employee Rs Th NA NA NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA NA NA Net sales Rs m 820 591 607 2,425
Gross profit Rs m 126 79 56 659
INCOME DATA Gross profit margin % 15.4 13.4 9.2 27.2
Net Sales Rs m 2,963 3,323 4,111 Net profit Rs m 84 37 21 402
Other income Rs m 23 14 50 Net profit margin % 10.2 6.3 3.5 16.6
Total revenues Rs m 2,986 3,337 4,161
Gross profit Rs m 589 724 829 KEY DATA
Depreciation Rs m 92 85 105 Parameters Unit FY06 FY07 FY08
Interest Rs m 23 17 31 Publishing Division % of sales 61.5 65.8 66.4
Profit before tax Rs m 497 636 743 Stationery Division % of sales 37.7 32.9 33.0
Minority Interest Rs m 0 0 0 Cost of material % of sales 51.3 49.9 49.0
Prior Period Items Rs m -2 0 0 Salaries % of sales 8.1 8.3 7.8
Extraordinary Inc (Exp) Rs m 0 0 0 Administrative and Selling Exp % of sales 14.5 14.0 16.8
Tax Rs m 143 210 201
NOTES
Profit after tax Rs m 352 426 542
Gross profit margin % 19.9 21.8 20.2 Navneet Publications India Limited, founded by the Gala family in 1959, is in the
Effective tax rate % 28.8 33.0 27.1 business of publishing and paper and non-paper stationery (school and office)
products. The company's three major brands are Navneet, Vikas and Gala. It is a
Net profit margin % 11.9 12.8 13.2
dominant player in the field of publishing with more than 5,000 owned titles in English,
BALANCE SHEET DATA Marathi, Hindi, Gujarati and eight other Indian languages. The company also
produces various titles in the children and general books category. In 1993, the
Current assets Rs m 1,887 2,014 2,632 company started catering to the stationery needs of the Middle East, parts of Africa,
Current liabilities Rs m 214 166 322 US and Europe and has acquired a leading position in those markets as well,
Net working cap to sales % 56.5 55.6 56.2 although competition is intensifying. In 2006, the company launched its first range of
Current ratio x 8.8 12.1 8.2 non-paper stationary products- FfUuNn Pencils.
Inventory Turnover Days 152 140 153
Debtors Turnover Days 59 48 54 The company reported 23% YoY growth in revenues in FY08 on the back of robust
Net fixed assets Rs m 698 683 908 25% YoY growth reported by the publication and stationary divisions. The revenues
Share capital Rs m 191 191 191 from the power generation and scrap sale declined by 45% YoY arresting the overall
"Free" reserves Rs m 1,646 1,855 2,116 growth. The operating costs grew at a faster pace as compared to topline resulting
in an 1.6% YoY contraction in EBITDA margins. More than three fold growth in other
Net worth Rs m 1,836 2,042 2,304
income led to the 27% YoY growth in net profits.
Long term debt Rs m 0 0 169
Total assets Rs m 2,598 2,772 3,542 In FY08, the company re-entered the e-learning business and incurred capex of Rs
Interest coverage x 22.6 38.4 25.0 3.2 bn. Apart from the maintenance capex and marketing of the e-learning product,
Debt to equity ratio x 0.0 0.0 0.1 which is in the range of Rs 80 m to 100 m, there is no other capital outlay as it has in
Sales to assets ratio x 1.1 1.2 1.2 place the required infrastructure and there is no need to expand capacity. The low
Return on assets % 20.4 21.7 23.2 penetration of education in India and the government's thrust to improve the
Return on equity % 19.2 20.9 23.5 education system and extend this right to every Indian only highlights the scope for
Return on capital % 28.2 32.0 31.3 companies like Navneet Publications to grow and expand their business. Intensifying
Exports to sales % 10.8 8.7 7.1 competition and the prolonged inflationary situation, which increases the cost of
Imports to sales % 0.4 2.8 1.8 operations, can derail the growth prospects of the company.
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186
 Regd off: Regent Chambers, 13th Floor, Nariman Point, Mumbai - 21
PAPER PRODUCTS LIMITED E-Mail: investor.communication@pplpack.com
Web site: www.pplpack.com
Telephone: (022) 2282 0969 Fax: (022) 2283 2860
PACKAGING MISCELLANEOUS Tr agent: Sharepro Services, Satam Est., 3rd Flr., C. G. Rd., Chakala, Mumbai - 99
Chairman: K. C. Narang SEC: Sushil Kumar Agarwal AUD: BSR & Associates
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1950 509820 PP:IN 2 39.8 -7.5 -26.7 8.8 4.3 4.5 2,491.9 14.1 INE275B01026
SHAREHOLDING FX Transaction (CY07) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 4.8% Exports (fob) Rs m 996
Foreign collaborators : 58.9% Imports (cif) Rs m 1,331 (Rs)
Indian inst/Mut Fund : 7.7% Fx inflow Rs m 1,018 94
FIIs/GDR : 8.7% Fx outflow Rs m 1,376
Free float : 19.9% Net fx Rs m -358
Shareholders : 9,373
78
No. of months 12 12 12
Year ending 31/12/05 31/12/06 31/12/07
EQUITY SHARE DATA
62
High Rs 328 499 84
Low Rs 203 240 45
Sales per share Rs 345.2 399.7 91.0
Earnings per share Rs 22.1 31.8 4.5 46
Cash flow per share Rs 41.9 50.2 9.1 DAILY
Dividends per share Rs 7.00 9.00 1.80 100 DMA
Dividend yield (eoy) % 2.6 2.4 2.8
30
Book value per share Rs 156.9 178.5 38.0
Shares outstanding (eoy) m 12.54 12.54 62.69 Sep-05 Jun-06 Mar-07 Dec-07 Sep-08
Bonus/Rights/Conversions - - FV2
Price / Sales ratio x 0.8 0.9 0.7 No. of months 12 12 12
Avg P/E ratio x 12.0 11.6 14.2 Year ending 31/12/05 31/12/06 31/12/07
CASH FLOW
P/CF ratio (eoy) x 6.3 7.4 7.1
Price / Book Value ratio x 1.7 2.1 1.7 From Operations Rs m 277 632 305
Dividend payout % 31.7 28.3 39.7 From Investments Rs m -208 -694 -626
Avg Mkt Cap Rs m 3,329 4,634 4,044 From Financial Activity Rs m -60 78 207
No. of employees `000 1 1 1 Net Cashflow Rs m 9 16 -114
Total wages/salary Rs m 321 378 439
Avg. sales/employee Rs Th 3,322.3 3,598.0 3,811.6 INTERIM RESULTS
Avg. wages/employee Rs Th 246.4 271.4 293.3 3QCY07 4QCY07 1QCY08 2QCY08
Avg. net profit/employee Rs Th 212.6 286.4 189.7 Net sales Rs m 1,458 1,533 1,582 1,724
Gross profit Rs m 127 160 180 155
INCOME DATA Gross profit margin % 8.7 10.4 11.4 9.0
Net Sales Rs m 4,329 5,012 5,706 Net profit Rs m 74 92 94 99
Other income Rs m 78 101 109 Net profit margin % 5.1 6.0 5.9 5.7
Total revenues Rs m 4,407 5,113 5,815
Gross profit Rs m 541 544 551 KEY DATA
Depreciation Rs m 249 231 289 Parameters Unit CY05 CY06 CY07
Interest Rs m 1 0 11 Laminates % of sales 86.2 87.6 88.6
Profit before tax Rs m 369 414 360 Cartons % of sales 6.6 6.0 5.5
Minority Interest Rs m 0 0 0 Average realisations Rs/ton 154,255 158,076 166,583
Prior Period Items Rs m 0 0 0 advertisement % of sales 5.0 4.9 5.3
Extraordinary Inc (Exp) Rs m 10 135 -22 Gross margins % 23.9 22.7 21.2
Tax Rs m 102 150 54
NOTES
Profit after tax Rs m 277 399 284
Gross profit margin % 12.5 10.9 9.7 Paper Products Limited (PPL) is India's leading manufacturer of primary consumer
Effective tax rate % 27.6 36.2 15.0 packaging and labeling materials. The company has a history of over seven decades
in the packaging field and its product folio includes flexible packaging, labeling
Net profit margin % 6.4 8.0 5.0
technologies and specialised cartons. PPL presently controls 40-45% of the high-end
BALANCE SHEET DATA packaging market (Rs 11 bn) in India. In 1999, the company became a subsidiary of
Huhtamaki, a global leader in consumer packaging, who holds a 59% stake in the
Current assets Rs m 1,634 1,659 2,047 company. Headquartered in Finland, Huhtamaki is a market leader in several product
Current liabilities Rs m 877 971 1,191 categories and had a turnover of over 2 bn euros as of December 2007 (PPL
Net working cap to sales % 17.5 13.7 15.0 accounted for approximately 4.3% of parent's overall revenues).
Current ratio x 1.9 1.7 1.7
Inventory Turnover Days 45 34 43 For 1HCY08, the topline grew by a 22% YoY as sales improved across most
Debtors Turnover Days 65 63 66 categories and channels. The EBITDA margins for 1HCY08 improved by 50 basis
Net fixed assets Rs m 1,351 1,967 2,145 points (0.5%) to 10.5%. The raw material prices (as percentage of sales) increased
Share capital Rs m 125 125 125 from 70% in 1HCY07 to 71% in 1HCY08. Without considering the extraordinary
"Free" reserves Rs m 1,813 2,084 2,228 income, the bottomline grew by 46% YoY.
Net worth Rs m 1,968 2,239 2,383 The volumes are slated to grow more than 40% over the next three years led by the
Long term debt Rs m 161 199 225 growth in the FMCG sector, the shift of preference from rigid packaging to
Total assets Rs m 3,068 3,631 4,330 convenience packaging and modern retailing. PPL is well positioned to benefit from
Interest coverage x 370.0 NM 33.7 these developments. We believe that the company is not easily dispensable,
Debt to equity ratio x 0.1 0.1 0.1 considering the importance of its packaging material for FMCG companies. Due to
Sales to assets ratio x 1.4 1.4 1.3 low bargaining power, capacity constraints as well as price sensitiveness of markets
Return on assets % 13.1 16.4 11.3 (PPL commands a 10% premium over its competitors), further growth can only come
Return on equity % 14.1 17.8 11.9 from expansions. However, with crude prices expected to remain firm going forward,
Return on capital % 17.8 22.5 13.4 the company might continue to face margin pressure.
Exports to sales % 14.8 14.0 17.5
Imports to sales % 14.0 21.0 23.3
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187
 Regd off: P. O. Box 125, Sesa Ghor, 20 EDC Complex, Patto, Panaji, Goa - 1
SESA GOA LIMITED E-Mail: cdchitnis@sesagoa.com
Web site: www.sesagoa.com
Telephone: (0832) 246 0720 Fax: (0832) 246 0721
STEEL & RELATED MNC Tr agent: Karvy Computershare, 46, Avenue 4, St 1, Banjara Hills, Hyderabad-34
Chairman: S. D. Kulkarni SEC: C. D. Chitnis (GM - Legal) AUD: S. J. Thaly & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1965 500295 SESA:IN 1 149.0 -10.7 49.4 7.6 7.4 30.2 117,253.4 758.3 INE205A01025
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 21
Foreign collaborators : 51.2% Imports (cif) Rs m 3,692 (Rs)
Indian inst/Mut Fund : 7.1% Fx inflow Rs m 21 250
FIIs/GDR : 23.2% Fx outflow Rs m 3,705
Free float : 18.6% Net fx Rs m -3,684
Shareholders : 84,509
190
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
130
High Rs 1,294 2,025 3,969
Low Rs 565 808 1,618
Sales per share Rs 468.4 561.8 963.5
Earnings per share Rs 145.1 164.2 391.6 70
Cash flow per share Rs 152.6 174.1 404.3 DAILY
Dividends per share Rs 40.00 40.00 45.00 100 DMA
Dividend yield (eoy) % 4.3 2.8 1.6
10
Book value per share Rs 291.5 408.8 747.8
Shares outstanding (eoy) m 39.36 39.36 39.36 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 2.0 2.5 2.9 No. of months 12 12 12
Avg P/E ratio x 6.4 8.6 7.1 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 6.1 8.1 6.9
Price / Book Value ratio x 3.2 3.5 3.7 From Operations Rs m 4,300 6,145 13,867
Dividend payout % 27.6 24.4 11.5 From Investments Rs m -2,425 -4,409 -12,033
Avg Mkt Cap Rs m 36,585 55,753 109,952 From Financial Activity Rs m -1,679 -1,896 -1,836
No. of employees `000 NA NA 2 Net Cashflow Rs m 196 -161 -2
Total wages/salary Rs m 519 636 685
Avg. sales/employee Rs Th NA NA 20,975.1 INTERIM RESULTS
Avg. wages/employee Rs Th NA NA 378.9 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA NA 8,526.0 Net sales Rs m 3,311 11,724 16,445 12,517
Gross profit Rs m 1,069 7,337 11,935 8,016
INCOME DATA Gross profit margin % 32.3 62.6 72.6 64.0
Net Sales Rs m 18,435 22,112 37,923 Net profit Rs m 822 4,927 7,983 6,447
Other income Rs m 251 518 1,048 Net profit margin % 24.8 42.0 48.5 51.5
Total revenues Rs m 18,686 22,630 38,971
Gross profit Rs m 8,591 9,535 22,701 KEY DATA
Depreciation Rs m 296 393 500 Parameters Unit FY06 FY07 FY08
Interest Rs m 17 3 0 Iron ore MT 9.56 10.87 12.39
Profit before tax Rs m 8,529 9,657 23,249 Iron ore exports % of sales 82 83 85
Minority Interest Rs m -36 -49 -74 Realisation per tonne Rs 1,544.4 1,624.5 2,616.4
Prior Period Items Rs m 0 0 0
Extraordinary Inc (Exp) Rs m 52 0 0
Tax Rs m 2,833 3,147 7,760
NOTES
Profit after tax Rs m 5,712 6,461 15,415
Gross profit margin % 46.6 43.1 59.9 Sesa Goa with operations in the states of Goa, Karnataka and Orissa is India's
Effective tax rate % 33.2 32.6 33.4 largest exporter of iron ore in the private sector. The company has been one of the
foremost beneficiaries of the ongoing boom in the global metals space and has been
Net profit margin % 31.0 29.2 40.6
able to grow its revenues and net profits in the past five years at a CAGR of 49% and
BALANCE SHEET DATA 108% respectively. The company has also diversified into the manufacturing of pig
iron and metallurgical coke. While the company was 51% owned by Mitsui till recently,
Current assets Rs m 6,501 6,297 8,643 the stake has now been bought over by Vedanta Resources, one of India's leading
Current liabilities Rs m 2,994 2,617 3,763 producers of non-ferrous metals.
Net working cap to sales % 19.0 16.6 12.9
Current ratio x 2.2 2.4 2.3 FY08 saw the company register an excellent performance. The standalone topline
Inventory Turnover Days 66 49 30 grew by 80% YoY backed by robust sales volume and increased realization. The
Debtors Turnover Days 49 45 45 operating profits of the company grew at a higher rate of 149% and expenses growth
Net fixed assets Rs m 4,072 4,799 4,975 at a lower rate of 24%, which meant significant improvement in operating margins
Share capital Rs m 394 394 394 that expanded by 17%. The bottomline growth also came nearly in line with the
"Free" reserves Rs m 11,079 15,695 29,038 operating profits at 146% YoY. However the increased depreciation and tax expense
were set off by the 58% growth in other income.
Net worth Rs m 11,475 16,091 29,435
Long term debt Rs m 0 0 0 Since the company exports more than 90% of its production, the current rise in iron
Total assets Rs m 15,315 19,550 34,128 ore and coking coke prices nearly by (100% and 300% respectively) has had a
Interest coverage x 502.7 3,220.0 NM positive impact on the company's profitability, evident from its first quarter results
Debt to equity ratio x 0.0 0.0 0.0 where profits have jumped five times. While there is a big concern on account of
Sales to assets ratio x 1.2 1.1 1.1 issues raised by domestic steel companies against iron ore exports, a big positive
Return on assets % 49.9 40.2 52.4 from the long-term perspective is the acquisition of a controlling stake in the company
Return on equity % 49.8 40.2 52.4 by Vedanta Resources, one of India's largest metal groups. The latter has said that it
Return on capital % 74.6 59.7 78.7 hopes to increase Sesa Goa's output by as much as 50%, which will no doubt give a
Exports to sales % 63.2 0.8 0.1 big boost to the company's prospects.
Imports to sales % 14.6 12.2 9.7
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188
 Regd off: Thomas Cook Building, Dr. Dadabhai Naoroji Road, Mumbai - 400 001
THOMAS COOK (INDIA) LIMITED E-Mail: sharedept@in.thomascook.com
Web site: www.thomascook.co.in
Telephone: (022) 2204 8556 Fax: (022) 2287 1067
MISCELLANEOUS MNC Tr agent: TSR Darashaw, H. Moosa Patrawala Ind. Est., E.Moses Rd., Mumbai - 11
Chairman: Udayan Bose SEC: Ram Kenkare (Head-Legal) AUD: Lovelock & Lewes
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1978 500413 TC:IN 1 90.1 -1.8 42.0 27.9 23.9 0.6 14,478.2 47.1 INE332A01027
SHAREHOLDING FX Transaction (CY07) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 0
Foreign collaborators : 55.8% Imports (cif) Rs m 0 (Rs)
Indian inst/Mut Fund : 2.2% Fx inflow Rs m 558 140
FIIs/GDR : 6.1% Fx outflow Rs m 96
Free float : 35.9% Net fx Rs m 462 DAILY
Shareholders : 22,354
115 100 DMA
No. of months 12 14 12
Year ending 31/10/05 31/12/06 31/12/07
EQUITY SHARE DATA
High Rs 585 829 144
90
Low Rs 411 411 49
Sales per share Rs 89.8 143.3 17.8
Earnings per share Rs 19.5 24.7 3.2 65
Cash flow per share Rs 24.1 32.6 3.8
Dividends per share Rs 3.75 5.00 0.50
Dividend yield (eoy) % 0.8 0.8 0.5
40
Book value per share Rs 114.4 108.3 5.7
Shares outstanding (eoy) m 14.58 14.58 160.78 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - FV1,ESOP
Price / Sales ratio x 5.5 4.3 5.4 No. of months 12 14 12
Avg P/E ratio x 25.6 25.1 29.9 Year ending 31/10/05 31/12/06 31/12/07
CASH FLOW
P/CF ratio (eoy) x 20.6 19.0 25.6
Price / Book Value ratio x 4.4 5.7 16.9 From Operations Rs m 368 406 -168
Dividend payout % 19.3 20.3 15.5 From Investments Rs m -203 -1,985 21
Avg Mkt Cap Rs m 7,261 9,040 15,515 From Financial Activity Rs m -216 2,312 -46
No. of employees `000 1 1 3 Net Cashflow Rs m -51 733 -193
Total wages/salary Rs m 345 669 958
Avg. sales/employee Rs Th 1,334.4 1,684.1 1,122.4 INTERIM RESULTS
Avg. wages/employee Rs Th 351.7 539.1 375.7 3QCY07 4QCY07 1QCY08 2QCY08
Avg. net profit/employee Rs Th 289.5 290.1 203.5 Net sales Rs m 733 751 761 883
Gross profit Rs m 244 242 211 284
INCOME DATA Gross profit margin % 33.3 32.2 27.7 32.2
Net Sales Rs m 1,309 2,090 2,862 Net profit Rs m 116 214 79 140
Other income Rs m 111 98 156 Net profit margin % 15.8 28.5 10.4 15.9
Total revenues Rs m 1,420 2,188 3,018
Gross profit Rs m 404 554 825 KEY DATA
Depreciation Rs m 68 115 88 Parameters Unit CY05 CY06 CY07
Interest Rs m 6 58 286 Operating margins % of sales 30.8 26.5 28.9
Profit before tax Rs m 441 479 607 Net margins % of sales 20.6 17.2 18.1
Minority Interest Rs m 0 0 0 Staff expenses % of sales 26.4 32.0 33.4
Prior Period Items Rs m 0 0 0 Advertisement % of sales 7.6 7.6 7.5
Extraordinary Inc (Exp) Rs m 0 88 49 Debtor days days 225 315 254
Tax Rs m 157 207 137
NOTES
Profit after tax Rs m 284 360 519
Gross profit margin % 30.9 26.5 28.8 Thomas Cook India (TCIL) offers a broad spectrum of leisure travel related services
Effective tax rate % 35.6 43.2 22.6 such as package tours, currency exchange and travel insurance as well as hotel and
flight reservations. TCIL has been present in India for 126 years. In 2006, the
Net profit margin % 21.7 17.2 18.1
company acquired LKP Forex, Travel Corporation (India) and sold off 100% stake in
BALANCE SHEET DATA Hindustan Cargo. Thomas Cook continues to be the number one company in the
financial services sector involved in retail foreign exchange and bank notes business.
Current assets Rs m 2,123 4,324 4,627 It signed a co-operation agreement with Japanese Travel Bureau (JTB Corp.) one of
Current liabilities Rs m 1,096 2,426 1,969 the largest travel companies in the world.
Net working cap to sales % 78.5 90.8 92.9
Current ratio x 1.9 1.8 2.3 TCIL posted an impressive 37% YoY growth increase in revenues for CY07. The
Inventory Turnover Days 0 0 0 impressive performance was due mainly to buoyant growth of the travel and tourism
Debtors Turnover Days 225 315 254 industry and introduction of growth oriented initiatives and newer products.
Net fixed assets Rs m 556 2,139 2,173 Efficiencies in operations derived from synergies from acquisition of TCI and merger
Share capital Rs m 146 146 161 of LKP Forex led to the bottomline growth of 68% YoY.
"Free" reserves Rs m 1,444 319 706
The travel market is growing fast and changing dramatically. Customised travel plans
Net worth Rs m 1,668 1,579 916 to meet individual needs are also set for strong growth going forward. The mergers
Long term debt Rs m 0 2 2 have further provided the company an expanded base and network across its
Total assets Rs m 2,820 6,588 6,806 business segment. With acquisition by TCGP, TCIL will also have access to TCGP's
Interest coverage x 74.5 9.3 3.1 strong global network. The business opportunities are expected to remain robust,
Debt to equity ratio x 0.0 0.0 0.0 albeit concerns like a volatile currency, slowdown in economy, and a consequent
Sales to assets ratio x 0.5 0.3 0.4 decline in disposable income remain.
Return on assets % 17.4 26.4 87.7
Return on equity % 17.0 22.8 56.7
Return on capital % 26.8 39.5 102.6
Exports to sales % 0.0 0.0 0.0
Imports to sales % 0.0 0.0 0.0
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189
 PAINTS
The market size of the Indian paints sector has been pegged All the key players are in an expansion phase. While Asian
at Rs 134 bn in value terms and is very fragmented. While in Paints is enhancing capacity at its manufacturing facility in
value terms, the industry grew by 18% in FY08, in volume Sriperumbudur and setting up a plant in Rohtak, Haryana,
terms, the growth stood at 15% YoY. The current demand is Kansai Nerolac is undertaking brownfield expansions at its
estimated to be around 650,000 tonnes per annum and is Lote and Bawal plants and a greenfield project in Hosur, Tamil
seasonal in nature. The per capita consumption of paints in Nadu. After exterior paints, industrial paints seems to be the
India stands at 0.5 kg per annum as compared to 1.6 kgs in focus area for paint majors.
China and 22 kgs in the developed economies. India's share in
the world paint market is just 0.6%. KEY POINTS
The unorganised sector controls around 35% of the paint
market, with the organised sector accounting for the balance. Supply: Supply exceeds demand in both the decorative as
In the unorganised segment, there are about 2,000 units having well as the industrial paints segments. Industry is
small and medium sized paints manufacturing plants. Top fragmented.
organised players include Asian Paints (30% market share), Demand: Demand for decorative paints depends on the
Kansai Nerolac (20% market share), Berger Paints (19% market housing sector and good monsoons. Industrial paint demand
share) and ICI (12% market share). is linked to user industries like auto, engineering and
Demand for paints comes from two broad categories: consumer durables.
Decoratives: Major segments in decoratives include exterior Barriers to entry: Brand, distribution network, working
wall paints, interior wall paints, wood finishes and enamel capital efficiency and technology play a crucial role.
and ancillary products such as primers, putties etc. Decorative Bargaining power of suppliers: Price increase
paints account for over 75% of the overall paint market in constrained with the presence of the unorganised sector for
India. Asian Paints is the market leader in this segment. Demand the decorative segment. Sophisticated buyers of industrial
for decorative paints arises from household painting, paints also limit the bargaining power of suppliers. It is
architectural and other display purposes. Demand in the festive therefore that margins are better in the decorative segment.
season (September-December) is significant, as compared to
Bargaining power of customers: High due to availability
other periods. This segment is price sensitive and is a higher
of wide choice.
margin business as compared to industrial segment.
Competition: In both categories, companies in the
Industrial: Three main segments of the industrial sector include
organised sector focus on brand building. Higher prices
automotive coatings, powder coatings and protective coatings.
through product differentiation are also followed as a
Kansai Nerolac is the market leader in this segment. User
competitive strategy.
industries for industrial paints include automobiles engineering
and consumer durables. The industrial paints segment is far
more technology intensive than the decorative segment. CURRENT SCENARIO AND PROSPECTS
The paints sector is raw material intensive, with over 300 raw The market for paints in India is expected to grow at 1.5 times
materials (30% petro-based derivatives) involved in the to 2 times GDP growth rate in the next five years. With GDP
manufacturing process. Since most of the raw materials are growth expected to be over and above 7% levels, the top
petroleum based, the industry benefits from softening crude three players are likely to clock above industry growth rates,
prices. especially given the fact that protection that was available to
With the steady decline in excise duties (from 40% to 16% unorganised players has come down significantly.
over five years), viability of small-scale units has eroded Decorative paints are expected to witness higher growth going
considerably. Without the price advantage, these units have forward. The fiscal incentives given by the government to the
found it difficult to compete with their peers in the organised housing sector have benefited the housing sector immensely.
sector. The unorganised sector has been consistently losing This will benefit key players in the long term.
market share to the organised sector.
This apart, above normal monsoons in the current year would
lead to higher agricultural output thereby increasing demand
FY08
for paint from rural areas. We expect paint demand to grow
by 12% to 15% in the next two to three years, largely led by
Since the paint sector tracks the overall GDP growth, the
post festive season demand.
growth in topline for the top three players was strong, with
Kansai Nerolac considerably lagging the other two companies Demand in case of industrial segment is also expected to
viz., Asian Paints and Berger Paints. Asian Paints outpaced its increase going forward. This is on account of increasing
peers with a 20% YoY rise in net sales led by strong investments in infrastructure. Domestic and global auto majors
performances by both the industrial and decorative segments. have long term plans for the Indian market, which augur well
With the GDP growing at 9% in FY08, the topline growth was for automotive paint manufacturers like Kansai Nerolac and
strong. However, the slowdown in the auto industry exerted Asian-PPG. Increased industrial paint demand, especially
pressure on automotive paints, explaining the tepid powder coatings and high performance coatings will also
performance of Kansai Nerolac in comparison to its peers. propel topline growth of paint majors in the medium term.
Also, against a backdrop of firm crude prices, all the three The reduction in peak customs duty from 12.5% to 7.5% will
companies undertook price increases in solvent based paints. lower the import cost of key raw materials. With more residual
All the three companies were able to maintain their operating income with the population, home loan disbursals are expected
margins if not increase them despite the firm crude prices. to grow at 25% CAGR in the next three years, which is a
This was largely due to the appreciation of the rupee against positive for paint companies.
the dollar. During the year, prices of raw materials increased,
led by major increases in solvent and oil prices.

190
 PAINTS
GLOBAL COMPARISON
FY08/CY07 Unit Asian Paints Kansai Hempel Sherwin PPG Ind.
Revenues US$ bn 1.1 0.3 1.3 8.0 11.2
EBDITA margin % 14.9 14.1 10.4 14.1 12.5
Profit after tax US$ bn 0.1 0.03 0.1 0.6 0.8
Net profit margins % 9.3 9.1 7.4 7.7 7.4
Return on capital employed % 32.1 17.5 23.0 25.0 12.9
Return on assets % 16.3 12.7 11.5 12.7 6.6
Capex US$ m 32 14 0 71 (70)
Raw material costs % of sales 58.5 54.8 67.9 55.0 63.2
SG&A expenses % of sales 19.6 14.9 21.7 32.4 19.1
Price/Earnings x 26.7 14.0 NA 13.2 14.1

SHERWIN WILLIAMS (US)

Sherwin-Williams engages in the manufacture, distribution and sale of coatings and related products to industrial,
commercial and retail customers primarily in North and South America. The company operates through four segments:
Paint Stores, Consumer, Automotive Finishes and International Coatings. The Paint Stores Segment markets and
sells Sherwin-Williams branded architectural paints and coatings, industrial and marine products and original
equipment manufacturer product finishes. The Consumer segment develops, manufactures and distributes various
paints, coatings and related products to third party customers and the Paint Stores segment. The Automotive
Finishes segment develops, manufactures and distributes various motor vehicle finish, refinish and touch-up
products. The International Coatings segment develops, licenses, manufactures and distributes various paints,
coatings and related products worldwide through 76 company-operated specialty paint stores.

PPG INDUSTRIES (US)

PPG Industries, Inc. supplies coatings, glass, fiberglass and chemicals worldwide. Its coating products include
protective and decorative coatings for industrial equipment, appliances and packaging, factory-finished aluminum
extrusions and coils, automotive original equipment and other industrial and consumer products. PPG's glass
products comprise flat glass, fabricated glass and continuous-strand fiberglass. It offers products directly to
independent distributors and through PPG distribution outlets. PPG also produces and markets chlor-alkali
chemicals, including chlorine, caustic soda, vinyl chloride monomer, chlorinated solvents directly to manufacturing
companies in the chemical processing, rubber and plastics, paper, minerals, metals and water treatment industries,
and supplies specialty chemicals for various products, such as transitions lenses, optical monomers and advanced
intermediates and bulk active ingredients for the pharmaceutical industry.

THE HEMPEL GROUP (DENMARK)

The Hempel Group is a leader in the production and sale of coatings in the protective, marine, decorative, container
and yacht market segments. Marine coatings have traditionally been the core business of Hempel, and Hempel
has - since the establishment of the company in 1915 - grown to become one of the most extensive supply networks
in this market. Hempel's protective coatings cover a wide range of applications in the industrial world. The field of
activity includes offshore constructions, wind turbines, bridges, rail cars and petrochemical plants. In the decorative
segment, Hempel's range includes emulsions and enamels, primer/sealers and fillers. In 2007, while the topline
of the company grew by 19% to 927 m euros, bottomline registered a superlative 89% YoY growth.

Source: Yahoo Finance, Company reports TTM - Trailing twelve months

191
 Regd off: 6A, Shanti Nagar, Santacruz (East), Mumbai - 400 055
ASIAN PAINTS (INDIA) LIMITED E-Mail: investor.relations@asianpaints.com
Web site: www.asianpaints.com
Telephone: (022) 3981 8000 Fax: (022) 3981 8888
PAINTS MISCELLANEOUS Tr agent: Sharepro Services, Satam Est, 3rd Flr, Chakala, Mumbai - 99
Chairman: Ashwin C. Choksi SEC: Jayesh Merchant (CFO) AUD: Shah & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1945 500820 APNT:IN 10 1,197.3 -3.4 26.6 28.1 24.5 1.4 114,840.2 1.0 INE021A01018
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 49.5% Exports (fob) Rs m 145
Foreign collaborators : 0.0% Imports (cif) Rs m 3,425 (Rs)
Indian inst/Mut Fund : 11.0% Fx inflow Rs m 243 1400
FIIs/GDR : 15.0% Fx outflow Rs m 3,572
Free float : 24.5% Net fx Rs m -3,329
Shareholders : 47,573
1150
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
900
High Rs 790 835 1,320
Low Rs 362 501 731
Sales per share Rs 315.0 382.6 459.2
Earnings per share Rs 22.1 29.3 42.7 650 DAILY
Cash flow per share Rs 28.4 35.7 48.8 100 DMA
Dividends per share Rs 12.50 13.00 17.00
Dividend yield (eoy) % 2.2 1.9 1.7
400
Book value per share Rs 67.4 81.1 102.4
Shares outstanding (eoy) m 95.92 95.92 95.92 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 1.8 1.7 2.2 No. of months 12 12 12
Avg P/E ratio x 26.0 22.8 24.0 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 20.3 18.7 21.0
Price / Book Value ratio x 8.5 8.2 10.0 From Operations Rs m 1,787 2,579 4,977
Dividend payout % 56.5 44.4 39.8 From Investments Rs m -1,250 -1,095 -3,349
Avg Mkt Cap Rs m 55,250 64,075 98,366 From Financial Activity Rs m -416 -1,108 -1,490
No. of employees `000 4 4 4 Net Cashflow Rs m 121 377 138
Total wages/salary Rs m 2,233 2,620 3,067
Avg. sales/employee Rs Th 8,207.3 9,487.8 11,224.3 INTERIM RESULTS
Avg. wages/employee Rs Th 606.6 677.4 781.6 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 576.2 726.5 1,042.8 Net sales Rs m 11,332 9,162 11,330 12,420
Gross profit Rs m 1,753 1,542 1,554 1,687
INCOME DATA Gross profit margin % 15.5 16.8 13.7 13.6
Net Sales Rs m 30,211 36,699 44,044 Net profit Rs m 1,206 1,078 1,018 1,062
Other income Rs m 320 373 620 Net profit margin % 10.6 11.8 9.0 8.6
Total revenues Rs m 30,531 37,072 44,664
Gross profit Rs m 3,907 4,776 6,583 KEY DATA
Depreciation Rs m 606 611 592 Parameters Unit FY06 FY07 FY08
Interest Rs m 114 189 212 Paint capacity MT 300,150 354,150 369,150
Profit before tax Rs m 3,507 4,349 6,399 Avg realisation per MT 84,512 87,240 90,147
Minority Interest Rs m 23 -21 -189 Raw material costs % of sales 59.3 59.9 58.5
Prior Period Items Rs m -10 27 -16 Manuf. admin & selling expenses % of sales 20.3 19.9 19.6
Extraordinary Inc (Exp) Rs m -76 -78 -68 Capex Rs m 411 1,066 1,281
Tax Rs m 1,323 1,467 2,034
NOTES
Profit after tax Rs m 2,121 2,810 4,092
Gross profit margin % 12.9 13.0 14.9 Asian Paints is the leader in the Indian paint industry. It has an overall market share
Effective tax rate % 37.7 33.7 31.8 of around 30% and a 54% market share in the decorative paint segment. The
company, through a 50:50 joint venture with PPG Industries, US, also has presence
Net profit margin % 7.0 7.7 9.3
in the automotive paints segment. The company has significant global presence
BALANCE SHEET DATA through acquisitions, which are being restructured. The management of the company
is acclaimed for consistently outperforming industry and its peers in the last decade.
Current assets Rs m 10,454 12,913 15,115 Though conservative in nature, the company is well focused on its core business of
Current liabilities Rs m 7,046 8,532 11,702 paints and has posted a CAGR of 21% over the last five years in topline (PAT CAGR
Net working cap to sales % 11.3 11.9 7.7 at 24% during the same period).
Current ratio x 1.5 1.5 1.3
Inventory Turnover Days 59 59 59 For FY08, on a consolidated basis, the strong 20% YoY growth in the topline was
Debtors Turnover Days 42 42 38 largely led by the paints business both in India and the Middle East. The Indian
Net fixed assets Rs m 4,519 4,932 6,917 business was driven by the decorative segment, led by a strong demand for
Share capital Rs m 959 959 959 decorative paints. As far as the international business is concerned, the 12% YoY
"Free" reserves Rs m 5,544 6,840 9,026 growth in revenues was led by the Middle East and the South Asian region. The
company managed to expand its operating margins despite firm crude prices owing
Net worth Rs m 6,463 7,778 9,824
to the favourable impact of the rising rupee. Net profits grew by 48% YoY.
Long term debt Rs m 1,662 1,488 1,569
Total assets Rs m 17,062 20,241 25,242 The growth of the paint sector, on an average, is pegged at 1.5 to 2 times the GDP.
Interest coverage x 31.8 24.0 31.2 With the latter expected to grow at a strong pace, the topline of Asian Paints is
Debt to equity ratio x 0.3 0.2 0.2 expected to register strong growth going forward. While the decorative business will
Sales to assets ratio x 1.8 1.8 1.7 continue to do well, the company is also likely to garner good market share in the
Return on assets % 27.5 32.4 37.8 industrial segment. Having said that, the management has opined that inflation and
Return on equity % 32.8 36.1 41.7 rising interest rates are a cause for concern going forward. As far as the international
Return on capital % 43.8 48.2 55.6 business is concerned, focus would be on increasing the market share through
Exports to sales % 0.4 0.5 0.3 initiatives such as new product launches, dealer tinting systems and increasing
Imports to sales % 6.8 6.1 7.8 operating efficiency.
GET MORE INFO AT WWW.EQUITYMASTER.COM

192
 Regd off: Berger House, 129 Park Street, Kolkata - 700 017
BERGER PAINTS INDIA LIMITED E-Mail: consumerfeedback@bergerindia.com
Web site: www.bergerpaints.com
Telephone: (033) 2229 9724 Fax: (033) 2249 9729
PAINTS MISCELLANEOUS Tr agent: C B Management Services P Ltd., P22 Bondel Road, Kolkata - 700 019
Chairman: Kuldip Singh Dhingra SEC: Aniruddha Sen AUD: Lovelock & Lewes
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1923 509480 BRGR:IN 2 40.0 0.1 -20.1 13.7 11.3 1.3 12,740.9 17.1 INE463A01020
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 65.5% Exports (fob) Rs m 8
Foreign collaborators : 8.1% Imports (cif) Rs m 986 (Rs)
Indian inst/Mut Fund : 6.7% Fx inflow Rs m 13 70
FIIs/GDR : 2.7% Fx outflow Rs m 1,014 DAILY
Free float : 17.0% Net fx Rs m -1,001
100 DMA
Shareholders : 42,563
60
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
50
High Rs 95 94 69
Low Rs 40 35 33
Sales per share Rs 51.4 38.2 43.8
Earnings per share Rs 3.7 2.7 2.9 40
Cash flow per share Rs 4.6 3.3 3.5
Dividends per share Rs 2.00 1.00 0.50
Dividend yield (eoy) % 3.0 1.6 1.0
30
Book value per share Rs 11.9 9.1 11.4
Shares outstanding (eoy) m 199.34 318.92 318.92 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions BB B3:5 -
Price / Sales ratio x 1.3 1.7 1.2 No. of months 12 12 12
Avg P/E ratio x 18.1 23.5 17.5 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 14.5 19.3 14.4
Price / Book Value ratio x 5.7 7.1 4.5 From Operations Rs m 1,082 -12 902
Dividend payout % 53.6 36.4 17.1 From Investments Rs m -384 -351 -474
Avg Mkt Cap Rs m 13,455 20,570 16,265 From Financial Activity Rs m -634 302 -223
No. of employees `000 2 2 2 Net Cashflow Rs m 65 -61 206
Total wages/salary Rs m 542 630 745
Avg. sales/employee Rs Th 5,212.6 5,964.8 8,251.6 INTERIM RESULTS
Avg. wages/employee Rs Th 275.7 308.1 440.0 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 378.4 428.9 549.3 Net sales Rs m 3,505 3,560 3,363 3,782
Gross profit Rs m 376 364 357 317
INCOME DATA Gross profit margin % 10.7 10.2 10.6 8.4
Net Sales Rs m 10,248 12,198 13,970 Net profit Rs m 250 232 241 232
Other income Rs m 151 154 171 Net profit margin % 7.1 6.5 7.2 6.1
Total revenues Rs m 10,399 12,352 14,141
Gross profit Rs m 1,068 1,212 1,371 KEY DATA
Depreciation Rs m 182 187 201 Parameters Unit FY06 FY07 FY08
Interest Rs m 70 107 137 Paint capacity MT 154,133 155,157 163,227
Profit before tax Rs m 967 1,072 1,204 Avg realisation per MT 67,829 71,089 71,728
Minority Interest Rs m 0 0 0 Raw material costs % of sales 64.1 65.3 65.5
Prior Period Items Rs m 0 0 0 Advertising and sales promotion % of sales 3.9 3.9 4.0
Extraordinary Inc (Exp) Rs m -3 -1 -3 Capex Rs m 374 187 444
Tax Rs m 220 194 271
NOTES
Profit after tax Rs m 744 877 930
Gross profit margin % 10.4 9.9 9.8 Berger Paints is the third largest paint manufacturer in India with an overall market
Effective tax rate % 22.8 18.1 22.5 share of 19%. It is India's second largest decorative paint manufacturer (11% share)
and also the third largest industrial paint manufacturer (14%). Over two-thirds of its
Net profit margin % 7.3 7.2 6.7
turnover comes from decorative paints and the balance from industrial paints. The
BALANCE SHEET DATA company acquired Bolix, a Poland based company in April 2008, which is a leading
provider of External Insulation Finishing Systems (EIFS). The latter is a
Current assets Rs m 3,870 4,901 5,561 comprehensive solution for meeting both the insulation and decorative requirements
Current liabilities Rs m 2,342 2,244 2,413 of external walls of buildings.
Net working cap to sales % 14.9 21.8 22.5
Current ratio x 1.7 2.2 2.3 In FY08, Berger's topline grew by 15% YoY inspite of a lower GDP growth and
Inventory Turnover Days 75 80 75 slowdown in the auto sector. The topline growth was fuelled by the decorative
Debtors Turnover Days 41 46 44 segment and the company's initiatives of catering to the market through new product
Net fixed assets Rs m 1,407 1,578 1,866 launches and value added services was instrumental in bolstering growth. The
Share capital Rs m 399 638 638 company was also able to marginally expand its operating margins despite the firm
"Free" reserves Rs m 1,965 2,236 2,978 crude prices. The bottomline grew by 11% YoY and was lower than the 17% YoY
growth in operating profits due to higher tax expenses.
Net worth Rs m 2,379 2,887 3,623
Long term debt Rs m 143 976 1,119 Considering the needs of housing and the rapid development in this field that is
Total assets Rs m 5,290 6,491 7,440 expected to take place, the company does not expect a considerable slowdown in the
Interest coverage x 14.8 11.0 9.8 sector. This along with a strong growth in the infrastructure sector is expected to drive
Debt to equity ratio x 0.1 0.3 0.3 demand for paints in the long term and Berger Paints is likely to benefit from the
Sales to assets ratio x 1.9 1.9 1.9 same. Berger Paints has also been very active in terms of launching new products,
Return on assets % 32.3 25.5 22.5 which is expected to augur well for the company going forward. The acquisition of
Return on equity % 31.3 30.4 25.7 Bolix is expected to widen Berger's geographical reach and will also enable the latter
Return on capital % 41.0 30.5 28.2 to launch the former's products in the Indian market. Having said that, firm crude
Exports to sales % 0.1 0.1 0.1 prices are likely to pressurise operating margins going forward.
Imports to sales % 6.6 8.0 7.1
GET MORE INFO AT WWW.EQUITYMASTER.COM

193
 Regd off: Nerolac House, Ganpatrao Kadam Marg, Lower Parel, Mumbai - 400 013
KANSAI NEROLAC PAINTS LIMITED E-Mail: investor@nerolac.com
Web site: www.nerolac.com
Telephone: (022) 2499 2807 Fax: (022) 2491 9439
PAINTS MNC Tr agent: Sharepro Services, Satam Est., 3rd Flr., C. G. Rd., Chakala, Mumbai - 99
Chairman: J. J. Irani SEC: G. T. Govindarajan AUD: A. F. Ferguson & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1920 500165 KNPL:IN 10 608.9 -0.3 -13.3 13.7 10.2 2.0 16,408.5 0.1 INE531A01016
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 43
Foreign collaborators : 66.4% Imports (cif) Rs m 1,921 (Rs)
Indian inst/Mut Fund : 9.7% Fx inflow Rs m 55 990
FIIs/GDR : 7.2% Fx outflow Rs m 2,033
Free float : 16.7% Net fx Rs m -1,978
Shareholders : 9,558
855
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
720
High Rs 903 960 911
Low Rs 509 634 476
Sales per share Rs 395.8 479.9 519.4
Earnings per share Rs 49.8 39.0 44.3 585
DAILY
Cash flow per share Rs 62.3 52.4 59.9
Dividends per share Rs 20.00 11.50 12.00 100 DMA
Dividend yield (eoy) % 2.8 1.4 1.7
450
Book value per share Rs 162.0 191.9 222.2
Shares outstanding (eoy) m 25.51 26.95 26.95 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - A -
Price / Sales ratio x 1.8 1.7 1.3 No. of months 12 12 12
Avg P/E ratio x 14.2 20.4 15.6 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 11.3 15.2 11.6
Price / Book Value ratio x 4.4 4.2 3.1 From Operations Rs m 22 1,057 1,415
Dividend payout % 40.1 29.5 27.1 From Investments Rs m 505 -511 -1,229
Avg Mkt Cap Rs m 18,010 21,479 18,694 From Financial Activity Rs m -195 -833 -64
No. of employees `000 2 2 2 Net Cashflow Rs m 332 -287 122
Total wages/salary Rs m 559 699 797
Avg. sales/employee Rs Th 5,250.1 6,185.6 6,672.5 INTERIM RESULTS
Avg. wages/employee Rs Th 290.7 334.3 379.9 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 660.9 503.1 569.6 Net sales Rs m 3,484 3,454 3,084 3,543
Gross profit Rs m 512 497 405 448
INCOME DATA Gross profit margin % 14.7 14.4 13.1 12.6
Net Sales Rs m 10,096 12,934 13,999 Net profit Rs m 331 302 239 302
Other income Rs m 229 223 256 Net profit margin % 9.5 8.7 7.7 8.5
Total revenues Rs m 10,325 13,157 14,255
Gross profit Rs m 1,622 1,726 1,876 KEY DATA
Depreciation Rs m 318 360 420 Parameters Unit FY06 FY07 FY08
Interest Rs m 8 18 23 Paint capacity MT 153,900 158,700 165,500
Profit before tax Rs m 1,525 1,571 1,689 Avg realisation per MT 100,213 101,300 103,865
Minority Interest Rs m 1 15 12 Raw material costs % of sales 52.1 54.9 54.8
Prior Period Items Rs m 0 0 0 Manuf, admin & selling exp. % of sales 15.8 15.0 14.9
Extraordinary Inc (Exp) Rs m 356 0 0 Capex Rs m 603 698 557
Tax Rs m 611 534 506
NOTES
Profit after tax Rs m 1,271 1,052 1,195
Gross profit margin % 16.1 13.3 13.4 Kansai Nerolac Limited is the second largest paint company in India with an
Effective tax rate % 40.1 34.0 30.0 estimated market share of 20%. The company is the market leader as the OEM paint
supplier to the likes of Maruti, Mitsubishi and Tata Motors (60% share in automotive).
Net profit margin % 12.6 8.1 8.5
To reduce the dependency on automotive paint, Kansai Nerolac has been making a
BALANCE SHEET DATA concerted effort to increase contribution from the decorative paint market. The
industrial-decorative contribution of the company at the current juncture is at 50:50.
Current assets Rs m 4,320 4,847 5,176 Kansai Paints, the Japanese paint major, holds 66.4% stake in the company. India
Current liabilities Rs m 2,301 2,158 2,774 ranks among the top three international markets for Kansai Paints, apart from Japan
Net working cap to sales % 20.0 20.8 17.2 and the US (Nerolac contributed to 18% of Kansai's net sales as on December 2006).
Current ratio x 1.9 2.2 1.9
Inventory Turnover Days 64 56 52 Kansai Nerolac's topline growth of 8% in FY08 was tepid in comparison to its peers
Debtors Turnover Days 52 59 62 Asian Paints and Berger Paints. Given that the company has a strong presence in the
Net fixed assets Rs m 1,779 2,422 2,666 automotive paints sector, the slowdown in the auto industry impacted its overall sales.
Share capital Rs m 255 269 269 The company was able to maintain its operating margins despite firm crude prices
"Free" reserves Rs m 3,875 4,890 5,708 largely due to the appreciation of the rupee against the dollar. Bottomline grew by
11% YoY, slightly higher than the 9% YoY growth in operating profits due to lower tax
Net worth Rs m 4,132 5,172 5,988
expenses.
Long term debt Rs m 933 1,113 1,167
Total assets Rs m 7,611 8,684 10,045 Going forward, in the long-term, while paint sales will track the GDP growth rate,
Interest coverage x 191.6 88.3 74.4 margins are likely to remain under pressure, especially if crude prices remain firm.
Debt to equity ratio x 0.2 0.2 0.2 With competition growing rapidly in the automotive segment, auto manufacturers will
Sales to assets ratio x 1.3 1.5 1.4 look to protect their margins. In such a scenario, Kansai Nerolac might feel the heat
Return on assets % 25.3 17.0 17.0 given its strong presence in the automotive segment.
Return on equity % 30.8 20.3 20.0
Return on capital % 37.3 25.5 24.1
Exports to sales % 0.3 0.1 0.3
Imports to sales % 14.0 12.8 13.7
GET MORE INFO AT WWW.EQUITYMASTER.COM

194
 PHARMACEUTICALS
The Indian Pharmaceutical industry is highly fragmented with
about 24,000 players (around 330 in the organised sector).
The top ten companies make up for more than a third of the
market. The revenues generated by the industry are
approximately US$ 7.6 bn and have grown at an average rate
of 10% over last five years. The Indian pharma industry
accounts for about 1% of the world's pharma industry in value
terms and 8% in volume terms.
In the recent past, Indian companies have targeted international
markets and have extended their presence there. While some
companies are exporting bulk drugs, others have moved up
the value chain and are exporting formulations and generic
products. India also offers excellent exports opportunities for
clinical trials, R&D, custom synthesis and technical services
like Bioinformatics.
The drug price control order (DPCO) continues to be a menace
for the industry. There are three tiers of regulations - on bulk
drugs, on formulations and on overall profitability. This has
made the profitability of the sector susceptible to the whims
and fancies of the pricing authority. The new Pharmaceutical
Policy 2006, which proposes to bring 354 essential drugs under
price control has not been officially passed as yet and has
been stiffly opposed by the pharmaceutical industry.
The R&D spend of the top five companies is about 5% to 10%
of revenues. Despite growing at a CAGR of over 50% over
the last four years, the ratio is still way below the global
average of 15% to 20% of sales. However, despite the
relatively low R&D spending, Indian companies are stepping
up their research activities to make themselves more self
sufficient in terms of product development, now that the
product patent regime has come into force.
FY08
FY08/CY07 was a mixed year for domestic pharma companies.
In the US generics market, the potential of drugs going off The product patents regime heralds an era of innovation and
patent (in terms of innovator sales) was high this year, though
not as high as that witnessed last year. However, while pricing
pressure continued unabated in this market, the erosion was
considerably higher in new molecules facing patent expiry.
The price erosion on the base business remained stable and
volumes largely drove growth in the US generics market.
Two important trends witnessed during the year were the
hiving of the R&D business into a separate company and
settlement of patent suits. As of date, companies such as Sun
Pharma and Piramal Healthcare have demerged their R&D units
into separate listed companies. Wockhardt has also announced
its intention of following suit. Ranbaxy, however, shelved its
plans in this respect after the sale of its promoter stake to
Daiichi Sankyo. On the patent settlement front, Ranbaxy was
the most active of the lot reaching agreements for blockbuster The life style segments such as cardiovascular, anti-diabetes
drugs such as 'Imitrex', 'Valtrex, 'Flomax', 'Nexium' and 'Lipitor'.
Cadila Healthcare and Wockhardt were active on the
acquisitions front acquiring companies in the semi regulated
and the regulated markets respectively. On the 180-day
exclusivity front, Sun Pharma emerged on top garnering the
exclusivity window for three drugs.
The European market posed a set of challenges for Indian
generic companies. While the UK was bogged with severe
pricing pressure, the governments of Germany and France
undertook various healthcare reforms, which impacted the
revenues of companies having a presence in these countries.
In the domestic market, FY08 was a decent year for the
pharmaceutical industry with the top players clocking a healthy
double-digit growth. However, it was the chronic therapy
195
segment, which once again took centrestage recording a
robust 20% YoY growth, while the acute segment grew by
11% YoY.
Mirroring the trend witnessed last year, MNC companies
performed poorly as compared to their domestic counterparts
in FY08/CY07. For instance, on an average, while the domestic
companies grew their topline by around 10% to 20% in FY08/
CY07, MNC companies were able to clock topline growth in
the range of only 2% to 5%. Various factors contributing to
the lower growth were increasing competition, low number of
new product launches, and trade related issues, divestment
of certain businesses and the like.
KEY POINTS
Supply: Higher for traditional therapeutic segments, which is
typical of a developing market. Relatively lower for lifestyle
segment.
Demand: Very high for certain therapeutic segments. Will
change as life expectancy, literacy increases.
Barriers to entry: Licensing, distribution network, patents,
plant approval by regulatory authority.
Bargaining power of suppliers: Distributors are
increasingly pushing generic products in a bid to earn higher
margins.
Bargaining power of buyers: High, a fragmented industry
has ensured that there is widespread competition in almost
all product segments. (Currently also protected by the DPCO).
Competition: High. Very fragmented industry with the top
300 (of 24,000 manufacturing units) players accounting for
85% of sales value. Consolidation is likely to intensify.
CURRENT SCENARIO AND PROSPECTS
research resulting in the launch of new patented product
launches. In the longer run, domestic companies would face
fresh competition from MNCs, as they would make aggressive
new launches. However, the latter would most likely be subject
to price negotiation.
Drugs having estimated sales of over US$ 28 bn are expected
to go off patent in the US between CY08 and CY10. With the
governments in the developed markets looking to cut down
healthcare costs by facilitating a speedy introduction of generic
drugs into the market, domestic pharma companies will stand
to benefit. However, despite this huge promise, intense
competition and consequent price erosion would continue to
remain a cause for concern.
and anti-depressants will continue to be lucrative and fast
growing owing to increased urbanisation and change in
lifestyles. Growth in domestic sales in the future will depend
on the ability of companies to align their product portfolio
towards the chronic segment.
Contract manufacturing and research (CRAMS) is expected to
gain momentum going forward. India's competitive strengths
in research services include English-language competency,
availability of low cost skilled doctors and scientists, large
patient population with diverse disease characteristics and
adherence to international quality standards. As for contract
manufacturing, both global innovators and generic majors are
finding it profitable to outsource production. Currently, India
has the highest number of US FDA approved plants outside
the US at 75.
 PHARMACEUTICALS
GLOBAL COMPARISON
CY07/FY08 Unit Ranbaxy Teva Mylan Pfizer Inc GSK Plc
Revenues US$ bn 1.7 9.4 1.6 48.4 45.8
EBDITA margin % 10.5 31.0 30.3 26.3 37.4
Profit after tax US$ bn 0.2 2.0 0.2 8.1 10.6
Net profit margins % 11.4 20.7 13.5 16.8 23.1
Return on capital employed % 13.4 10.2 7.9 10.9 28.1
Raw material costs % of sales 40.1 48.2 47.7 23.1 23.3
R&D expenditure % of sales 6.3 6.2 6.4 16.7 14.6
SG&A expenses % of sales 29.9 20.2 13.4 32.3 26.0
Debt to Equity 1.5 0.4 1.1 0.2 1.1
Price/Earnings x 33.0 21.9 NA 14.4 14.1

PFIZER INC (US)

Pfizer, Inc. is engaged in the discovery, development, manufacture, and marketing of prescription medicines for
humans and animals worldwide. The pharmaceutical segment offers treatments for cardiovascular and metabolic
diseases, central nervous system disorders, arthritis and pain, infectious and respiratory diseases, cancer, eye
disease and allergies. The Animal Health segment discovers, develops, and sells products for the prevention and
treatment of diseases in livestock and companion animals. Pfizer is also involved in contract manufacturing and
bulk pharmaceutical chemicals businesses.

GLAXOSMITHKLINE PLC (UK)

GlaxoSmithKline Plc is involved in the creation, discovery, development, manufacture, and marketing of
pharmaceutical and consumer health-related products worldwide. The company operates in two segments,
Pharmaceuticals and Consumer Healthcare. The Pharmaceutical segment offers prescription pharmaceuticals
and vaccines. The Consumer Healthcare segment provides various over-the-counter medicines, oral care, and
nutritional healthcare products. Its oral care products include toothpastes and mouthwashes, toothbrushes, and
denture care products. Its nutritional healthcare products include glucose energy and sports drinks, a blackcurrant
juice-based drink, and a range of milk-based malted food and chocolate drinks.

TEVA PHARMACEUTICALS (ISRAEL)

Teva Pharmaceutical Industries Ltd. specialises in the development, production and marketing of generic and
proprietary branded pharmaceuticals and active pharmaceutical ingredients (APIs). Teva is among the top twenty
pharmaceutical companies and the largest generic pharmaceutical company in the world. Its generic pharmaceutical
products include tablets, capsules, ointments, creams, liquids, and injectables. The company's APIs include peptide
active pharmaceutical ingredients. It also develops technologies, such as fermentation processes. Headquartered
in Israel, 80% of Teva's sales (US$ 9.4 bn in 2007) are from North America and Europe. Teva has approximately
28,000 employees worldwide and production facilities in Israel, North America, Europe and Latin America.

MYLAN LABORATORIES INC (USA)

Mylan Laboratories, Inc., through its subsidiaries, is engaged in the development, manufacture, marketing, licensing,
and distribution of generic, and branded generic pharmaceutical products in the United States. The company offers
its products for cardiovascular, central nervous system, dermatology, gastrointestinal, endocrine and metabolic,
and renal diseases. It markets its products directly to wholesalers, distributors, retail pharmacy chains, mail order
pharmacies, group purchasing organizations; and indirectly to independent pharmacies, managed care
organisations, hospitals, nursing homes, pharmacy benefit management companies, and government entities.
Mylan acquired a 71% stake in Matrix Laboratories, India in 2006 and in May 2007, the company acquired the
European generics major Merck Generics for US$ 6.6 bn.

Source: Yahoo Finance, Company reports TTM - Trailing twelve months

196
 Regd off: Aventis House, 54/A, Mathuradas Vasanji Road, Mumbai - 93
AVENTIS PHARMACEUTICALS LIMITED E-Mail: K.Subramani@sanofi-aventis.com
Web site: www.aventispharmaindia.com
Telephone: (022) 2827 8000 Fax: (022) 2837 0939
PHARMACEUTICALS MNC Tr agent: Intime Spectrum, C13, Pannalal Silk Mills Cmpd., LBS Marg, Mumbai - 78
Chairman: Dr. Vijay Mallya SEC: K. Subramani AUD: S. R. Batliboi & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1956 500674 HOEC:IN 10 836.5 8.6 -30.8 13.3 11.8 1.9 19,264.6 0.7 INE058A01010
SHAREHOLDING FX Transaction (CY07) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 10.3% Exports (fob) Rs m 1,668
Foreign collaborators : 50.1% Imports (cif) Rs m 2,206 (Rs)
Indian inst/Mut Fund : 20.6% Fx inflow Rs m 1,846 2200
FIIs/GDR : 7.8% Fx outflow Rs m 2,299
Free float : 11.2% Net fx Rs m -453
Shareholders : 19,235
1800 DAILY
No. of months 12 12 12
Year ending 31/12/05 31/12/06 31/12/07 100 DMA
EQUITY SHARE DATA
1400
High Rs 1,725 2,140 1,500
Low Rs 1,175 1,241 960
Sales per share Rs 350.8 383.8 379.3
Earnings per share Rs 63.0 73.5 62.7 1000
Cash flow per share Rs 70.5 81.2 70.7
Dividends per share Rs 16.00 32.00 16.00
Dividend yield (eoy) % 1.1 1.9 1.3
600
Book value per share Rs 227.4 264.1 306.9
Shares outstanding (eoy) m 23.03 23.03 23.03 Sep-05 Jun-06 Mar-07 Dec-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 4.1 4.4 3.2 No. of months 12 12 12
Avg P/E ratio x 23.0 23.0 19.6 Year ending 31/12/05 31/12/06 31/12/07
CASH FLOW
P/CF ratio (eoy) x 20.6 20.8 17.4
Price / Book Value ratio x 6.4 6.4 4.0 From Operations Rs m 1,541 1,325 1,031
Dividend payout % 25.4 43.5 25.5 From Investments Rs m 138 30 -120
Avg Mkt Cap Rs m 33,394 38,932 28,327 From Financial Activity Rs m -421 -422 -845
No. of employees `000 1 2 2 Net Cashflow Rs m 1,259 933 66
Total wages/salary Rs m 735 785 1,037
Avg. sales/employee Rs Th 5,514.0 4,881.3 4,230.0 INTERIM RESULTS
Avg. wages/employee Rs Th 501.7 433.5 502.2 3QCY07 4QCY07 1QCY08 2QCY08
Avg. net profit/employee Rs Th 990.4 934.8 699.3 Net sales Rs m 2,264 2,040 2,169 2,486
Gross profit Rs m 446 290 405 504
INCOME DATA Gross profit margin % 19.7 14.2 18.7 20.3
Net Sales Rs m 8,078 8,840 8,735 Net profit Rs m 368 270 345 418
Other income Rs m 331 471 739 Net profit margin % 16.3 13.2 15.9 16.8
Total revenues Rs m 8,409 9,311 9,474
Gross profit Rs m 2,205 2,206 1,676 KEY DATA
Depreciation Rs m 172 178 185 Parameters Unit CY05 CY06 CY07
Interest Rs m 0 2 2 Domestic revenues % of sales 71.7 74.5 80.5
Profit before tax Rs m 2,364 2,497 2,228 Exports % of sales 28.3 25.5 19.5
Minority Interest Rs m 0 0 0 Raw material costs % of sales 46.5 48.5 48.4
Prior Period Items Rs m 0 0 0 SG&A expenses % of sales 16.7 17.7 20.6
Extraordinary Inc (Exp) Rs m 0 0 0 Staff costs % of sales 9.1 8.9 11.9
Tax Rs m 913 804 784
NOTES
Profit after tax Rs m 1,451 1,693 1,444
Gross profit margin % 27.3 25.0 19.2 Aventis Pharma, the 50% subsidiary of Aventis SA, France, is the second largest
Effective tax rate % 38.6 32.2 35.2 pharma MNC in India. It has a market share of 2.1% in the pharma market (retail and
hospital). Domestic sales constituted 81% of total sales in 1HCY08 and exports
Net profit margin % 18.0 19.2 16.5
constituted the remaining 19%. Over the years, Aventis has progressively
BALANCE SHEET DATA transformed itself into a company catering to the chronic therapeutic segments. Apart
from catering to the Indian markets, Aventis supplies bulk drugs to its parent. The
Current assets Rs m 5,419 6,942 7,526 parent merged with another France based pharma company, Sanofi, thus making it
Current liabilities Rs m 1,710 2,500 2,087 part of one of the largest pharma conglomerates in the world.
Net working cap to sales % 45.9 50.2 62.3
Current ratio x 3.2 2.8 3.6 In 1HCY08, the 6% YoY growth in domestic sales led by its key brands contributed to
Inventory Turnover Days 62 66 76 the 5% YoY growth in overall topline. Having said that, the company faced supply
Debtors Turnover Days 23 28 24 constraints of its key anti-rabies vaccine 'Rabipur'. While growth in exports was flat,
Net fixed assets Rs m 1,418 1,456 1,450 there was some revival in this business in the last few quarters, which is an
Share capital Rs m 230 230 230 encouraging sign. Operating margins contracted during 1HCY08 due to a rise in raw
"Free" reserves Rs m 4,802 5,654 6,650 material costs (as percentage of sales) leading to a 3% YoY fall in operating profits
and a 5% YoY decline in the bottomline.
Net worth Rs m 5,238 6,082 7,069
Long term debt Rs m 0 0 0 In the domestic market, Aventis' strong presence in the fast-growing lifestyle segment
Total assets Rs m 6,890 8,451 9,029 along with its focus on strategic brands are expected to be the key growth drivers
Interest coverage x NM 1,249.5 1,115.0 going forward. The company has undertaken several brand awareness initiatives
Debt to equity ratio x 0.0 0.0 0.0 over the years, which will augur well in terms of increased visibility for its products.
Sales to assets ratio x 1.2 1.0 1.0 Having said that, we expect the pressure on margins to continue going forward. Also,
Return on assets % 27.7 27.9 20.5 while the growth in exports during the past few quarters is a positive sign, whether
Return on equity % 27.7 27.8 20.4 there is a revival in this segment can only be gauged from the performance of this
Return on capital % 45.1 41.1 31.5 business in the coming quarters. As such, the inconsistent growth in export sales will
Exports to sales % 27.5 25.0 19.1 continue to remain a cause for concern till such time there is clarity on this front.
Imports to sales % 26.2 24.8 25.3
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197
 Regd off: 20th KM Hosur Road, Electronic City, Bangalore - 560 100
BIOCON LIMITED E-Mail: kiran.kumar@biocon.com
Web site: www.biocon.com
Telephone: (080) 2808 2808 Fax: (080) 2852 3423
PHARMACEUTICALS MISCELLANEOUS Tr agent: Karvy Computershare, 46, Avenue 4, Banjara Hills, Hyderabad-34
Chairman: Kiran Mazumdar Shaw SEC: Kiran Kumar G AUD: S. R. Batliboi & Associates
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1978 532523 BIOS:IN 5 413.2 5.7 -11.5 8.9 7.4 1.2 41,315.0 40.6 INE376G01013
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 40.4% Exports (fob) Rs m 4,776
Foreign collaborators : 20.5% Imports (cif) Rs m 2,840 (Rs)
Indian inst/Mut Fund : 11.1% Fx inflow Rs m 5,226 700
FIIs/GDR : 7.2% Fx outflow Rs m 3,277
Free float : 20.9% Net fx Rs m 1,949 DAILY
Shareholders : 73,706
600 100 DMA
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
500
High Rs 538 513 663
Low Rs 392 306 345
Sales per share Rs 78.9 98.6 105.4
Earnings per share Rs 17.4 20.0 46.4 400
Cash flow per share Rs 20.4 26.7 55.8
Dividends per share Rs 2.50 3.00 5.00
Dividend yield (eoy) % 0.5 0.7 1.0
300
Book value per share Rs 88.8 106.9 148.4
Shares outstanding (eoy) m 100.00 100.00 100.00 Sep-05 Jun-06 Mar-07 Dec-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 5.9 4.2 4.8 No. of months 12 12 12
Avg P/E ratio x 26.7 20.4 10.9 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 22.8 15.3 9.0
Price / Book Value ratio x 5.2 3.8 3.4 From Operations Rs m 809 1,548 3,178
Dividend payout % 14.4 15.0 10.8 From Investments Rs m -888 -1,912 -3,401
Avg Mkt Cap Rs m 46,500 40,950 50,400 From Financial Activity Rs m 47 431 232
No. of employees `000 2 3 3 Net Cashflow Rs m -32 67 9
Total wages/salary Rs m 618 909 1,127
Avg. sales/employee Rs Th 4,290.9 3,876.1 3,801.6 INTERIM RESULTS
Avg. wages/employee Rs Th 336.1 357.5 406.6 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 945.6 787.7 1,673.5 Net sales Rs m 2,790 2,373 2,666 2,639
Gross profit Rs m 830 605 856 905
INCOME DATA Gross profit margin % 29.7 25.5 32.1 34.3
Net Sales Rs m 7,891 9,857 10,538 Net profit Rs m 540 533 652 660
Other income Rs m 50 39 366 Net profit margin % 19.4 22.5 24.5 25.0
Total revenues Rs m 7,941 9,896 10,904
Gross profit Rs m 2,291 2,826 2,976 KEY DATA
Depreciation Rs m 298 667 941 Parameters Unit FY06 FY07 FY08
Interest Rs m 18 88 92 Biopharmaceuticals % of sales 76.4 73.9 74.6
Profit before tax Rs m 2,025 2,110 2,309 Enzymes % of sales 10.9 9.6 4.3
Minority Interest Rs m 20 62 65 Contract research % of sales 12.8 13.8 16.7
Prior Period Items Rs m 0 0 0 R&D expenditure % of sales 5.2 5.2 5.2
Extraordinary Inc (Exp) Rs m 0 0 2,394 Raw material costs % of sales 50.8 45.7 41.3
Tax Rs m 306 169 129
NOTES
Profit after tax Rs m 1,739 2,003 4,639
Gross profit margin % 29.0 28.7 28.2 Biocon is India's largest biotechnology company with presence in
Effective tax rate % 15.1 8.0 5.6 biopharmaceuticals, enzymes, custom and clinical research. It started as an enzymes
manufacturer and leveraged its expertise in fermentation to evolve into an integrated
Net profit margin % 22.0 20.3 44.0
bio-pharmaceutical company. The company has two subsidiaries - Syngene and
BALANCE SHEET DATA Clinigene - which are involved in custom research and clinical research respectively.
These subsidiaries contribute over 16.7% to the total consolidated revenues.
Current assets Rs m 3,601 5,295 5,346
Current liabilities Rs m 2,613 2,749 3,005 Biocon's topline grew by 7% YoY during FY08 led by its biopharmaceutical and
Net working cap to sales % 12.5 25.8 22.2 contract research businesses. Besides statins, growth in the biopharma business
Current ratio x 1.4 1.9 1.8 was driven by the strong performance of insulin (namely 'Insugen'), its branded
Inventory Turnover Days 51 60 62 products for nephrology and oncology in India and the licensing income for various
Debtors Turnover Days 103 113 90 products. Revenues from the enzymes business more than halved due to the
Net fixed assets Rs m 8,270 9,145 10,419 divestment of this business in FY07. While the contract research business did grow
Share capital Rs m 500 500 500 by 29% YoY, it was nevertheless impacted by the sharp appreciation of the rupee
"Free" reserves Rs m 8,246 9,897 13,951 against the US dollar. Operating margins contracted due to expenses incurred to
ramp up capabilities at Syngene. Higher other income and lower tax expenses
Net worth Rs m 8,881 10,686 14,841
ensured that the bottomline grew at a faster rate than the growth in operating profits.
Long term debt Rs m 373 1,200 1,200
Total assets Rs m 12,874 15,743 20,789 Given that statins is facing pricing pressure, Biocon's strategy to increasingly focus
Interest coverage x 113.5 25.0 26.1 on insulin, immunosuppressants, branded formulations and monoclonal antibodies in
Debt to equity ratio x 0.0 0.1 0.1 a bid to reduce its dependence on statins will be critical to drive growth in the future.
Sales to assets ratio x 0.6 0.6 0.5 The company has unveiled plans of listing its 100% subsidiary Syngene on the Indian
Return on assets % 19.0 17.6 29.5 bourses during FY09 given that this business has attained critical mass. The
Return on equity % 19.6 18.7 31.3 company is also gearing up for biosimilar launches in Europe beginning with insulin
Return on capital % 22.3 19.0 30.3 and is focusing on branding of products and getting closer to the markets. Higher
Exports to sales % 45.3 45.5 45.3 depreciation charges and increased R&D spend, however, are expected to impact
Imports to sales % 35.9 26.2 27.0 performance in the medium term.
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198
 Regd off: `Zydus Tower", Satellite Cross Roads, Ahmedabad - 380 015
CADILA HEALTHCARE LIMITED E-Mail: upen.shah@zyduscadila.com
Web site: www.zyduscadila.com
Telephone: (079) 2686 8100 Fax: (079) 2686 8365
PHARMACEUTICALS MISCELLANEOUS Tr agent: Pinnacle Shares Registry, Naroda Rd., Near Asoka Mills, Ahmedabad-25
Chairman: Pankaj R. Patel (M.D.) SEC: Upen H. Shah AUD: Mukesh M Shah & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1995 532321 CDH:IN 5 332.1 0.4 2.4 16.2 11.8 1.4 41,715.1 2.2 INE010B01019
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 72.0% Exports (fob) Rs m 4,358
Foreign collaborators : 0.0% Imports (cif) Rs m 1,630 (Rs)
Indian inst/Mut Fund : 15.5% Fx inflow Rs m 4,379 400
FIIs/GDR : 3.0% Fx outflow Rs m 2,487
Free float : 9.5% Net fx Rs m 1,892
Shareholders : 44,481
350
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
300
High Rs 685 400 412
Low Rs 408 231 203
Sales per share Rs 234.1 144.3 183.1
Earnings per share Rs 24.3 18.6 20.5 250 DAILY
Cash flow per share Rs 36.7 25.2 28.2
100 DMA
Dividends per share Rs 6.00 4.00 4.50
Dividend yield (eoy) % 1.1 1.3 1.5
200
Book value per share Rs 111.3 68.9 84.6
Shares outstanding (eoy) m 62.81 125.61 125.61 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - B1:1 -
Price / Sales ratio x 2.3 2.2 1.7 No. of months 12 12 12
Avg P/E ratio x 22.5 17.0 15.0 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 14.9 12.5 10.9
Price / Book Value ratio x 4.9 4.6 3.6 From Operations Rs m 1,111 2,521 1,853
Dividend payout % 24.7 21.5 21.9 From Investments Rs m -1,401 -1,674 -4,918
Avg Mkt Cap Rs m 34,326 39,630 38,576 From Financial Activity Rs m 116 -295 3,001
No. of employees `000 NA NA 9 Net Cashflow Rs m -174 552 -64
Total wages/salary Rs m 1,855 2,181 2,892
Avg. sales/employee Rs Th NA NA 2,540.1 INTERIM RESULTS
Avg. wages/employee Rs Th NA NA 319.5 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA NA 284.6 Net sales Rs m 6,097 5,614 5,469 6,857
Gross profit Rs m 1,327 902 924 1,260
INCOME DATA Gross profit margin % 21.8 16.1 16.9 18.4
Net Sales Rs m 14,704 18,122 22,993 Net profit Rs m 841 516 552 897
Other income Rs m 214 245 308 Net profit margin % 13.8 9.2 10.1 13.1
Total revenues Rs m 14,918 18,367 23,301
Gross profit Rs m 2,636 3,325 4,396 KEY DATA
Depreciation Rs m 779 823 969 Parameters Unit FY06 FY07 FY08
Interest Rs m 188 267 448 Domestic revenues % of sales 75.3 67.7 63.8
Profit before tax Rs m 1,883 2,480 3,287 US % of sales 3.3 7.6 10.9
Minority Interest Rs m -1 -72 -37 France % of sales 4.1 6.8 7.0
Prior Period Items Rs m 0 0 0 Raw material costs % of sales 38.5 35.0 34.3
Extraordinary Inc (Exp) Rs m -115 254 -61 R&D expenditure % of sales 5.4 7.4 5.8
Tax Rs m 243 324 613
NOTES
Profit after tax Rs m 1,524 2,338 2,576
Gross profit margin % 17.9 18.3 19.1 Cadila Healthcare is one of the leading players in the Indian pharma market having
Effective tax rate % 12.9 13.1 18.6 a presence in both the domestic and the international markets. In India, Cadila
consolidated its position with the acquisition of Recon Healthcare and German
Net profit margin % 10.4 12.9 11.2
Remedies. In the international markets, the company had adopted the strategy of
BALANCE SHEET DATA competing directly in the generics market and also focusing on contract
manufacturing. On the contract manufacturing front, Cadila has a JV with Nycomed
Current assets Rs m 6,491 9,871 11,223 (erstwhile Altana) for the latter's drug 'Protonix' and has also entered into more such
Current liabilities Rs m 3,009 5,446 5,051 contracts with other innovator companies.
Net working cap to sales % 23.7 24.4 26.8
Current ratio x 2.2 1.8 2.2 Cadila's topline for FY08 registered a robust 27% YoY growth driven by an impressive
Inventory Turnover Days 61 78 75 growth in both its formulations exports and animal healthcare businesses; the latter
Debtors Turnover Days 49 56 56 was largely acquisition led as the company acquired the remaining 50% stake in the
Net fixed assets Rs m 8,329 9,873 14,001 joint venture with Sarabhai. The growth in exports formulations was led by the 80%
Share capital Rs m 314 628 628 YoY and 55% YoY growth in the US and French generics business respectively. The
"Free" reserves Rs m 6,217 7,586 9,293 JV with Nycomed, in which Cadila has a 50% stake, saw its sales and net profits fall,
as the drug 'Protonix' was subject to generic competition. While operating margins
Net worth Rs m 6,989 8,655 10,622
improved marginally, bottomline grew by 25% YoY (excluding extraordinary items).
Long term debt Rs m 2,765 3,076 6,705
Total assets Rs m 15,534 20,005 25,478 Going forward, we expect Cadila's growth to be driven by increasing scale of its US
Interest coverage x 11.0 10.3 8.3 and French generics businesses and strong performances by the consumer
Debt to equity ratio x 0.4 0.4 0.6 healthcare and contract manufacturing businesses. The patent expiry of the drug
Sales to assets ratio x 0.9 0.9 0.9 'Protonix' has considerably reduced revenues and profitability from this JV. In a bid to
Return on assets % 17.6 22.2 17.5 rectify this, Cadila has extended the scope of the JV with Nycomed by undertaking to
Return on equity % 21.8 27.0 24.3 manufacture 18 APIs over a period of 4 years. Besides this, the JV that it has inked
Return on capital % 20.0 25.0 21.0 with Hospira, is also expected to enhance revenues and profits going forward. Having
Exports to sales % 14.1 16.2 19.0 said that, ability to sustain the pricing pressure in the global generics market will be
Imports to sales % 8.9 9.2 7.1 the key challenge for Cadila.
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199
 Regd off: 289, J. B. B. Marg, Mumbai Central, Mumbai - 400 008
CIPLA LIMITED $ E-Mail: cosecretary@cipla.com
Web site: www.cipla.com
Telephone: (022) 2302 5272 Fax: (022) 2300 8101
PHARMACEUTICALS MISCELLANEOUS Tr agent: Karvy Computershare, Karvy House, 146, Avenue 4, Hyderabad - 34
Chairman: Y. K. Hamied SEC: Mital Sanghvi AUD: R. S. Bharucha & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1935 500087 CIPLA:IN 2 234.4 3.6 28.1 26.0 21.9 0.9 182,157.9 145.6 INE059A01026
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 17.9% Exports (fob) Rs m 21,017
Foreign collaborators : 21.5% Imports (cif) Rs m 9,466 (Rs)
Indian inst/Mut Fund : 13.8% Fx inflow Rs m 22,552 320
FIIs/GDR : 18.4% Fx outflow Rs m 10,677
Free float : 28.4% Net fx Rs m 11,875 DAILY
Shareholders : 196,809 100 DMA
270
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
220
High Rs 665 305 260
Low Rs 226 178 160
Sales per share Rs 96.4 44.2 51.6
Earnings per share Rs 20.3 8.6 9.0 170
Cash flow per share Rs 22.9 9.9 10.7
Dividends per share Rs 2.00 2.00 2.00
Dividend yield (eoy) % 0.4 0.8 1.0
120
Book value per share Rs 66.1 41.6 48.3
Shares outstanding (eoy) m 299.87 777.29 777.29 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - B3:2,GDR -
Price / Sales ratio x 4.6 5.5 4.1 No. of months 12 12 12
Avg P/E ratio x 22.0 28.1 23.3 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 19.4 24.3 19.6
Price / Book Value ratio x 6.7 5.8 4.3 From Operations Rs m 2,772 3,339 3,670
Dividend payout % 9.9 23.3 22.2 From Investments Rs m -3,892 -4,847 -6,744
Avg Mkt Cap Rs m 133,592 187,716 163,231 From Financial Activity Rs m 1,454 2,386 2,548
No. of employees `000 NA NA NA Net Cashflow Rs m 333 878 -526
Total wages/salary Rs m 1,481 1,835 2,509
Avg. sales/employee Rs Th NA NA NA INTERIM RESULTS
Avg. wages/employee Rs Th NA NA NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA NA NA Net sales Rs m 10,984 11,045 11,221 12,071
Gross profit Rs m 2,241 2,623 2,027 2,701
INCOME DATA Gross profit margin % 20.4 23.7 18.1 22.4
Net Sales Rs m 28,914 34,383 40,103 Net profit Rs m 1,906 2,107 1,794 1,400
Other income Rs m 941 2,304 3,393 Net profit margin % 17.4 19.1 16.0 11.6
Total revenues Rs m 29,855 36,687 43,496
Gross profit Rs m 6,131 6,877 6,411 KEY DATA
Depreciation Rs m 802 1,034 1,307 Parameters Unit FY06 FY07 FY08
Interest Rs m 114 70 117 Domestic revenues % of sales 51.9 49.2 47.0
Profit before tax Rs m 6,156 8,077 8,380 API exports % of sales 16.8 13.6 12.8
Minority Interest Rs m 0 0 0 Formulation exports % of sales 35.6 36.4 37.2
Prior Period Items Rs m 0 0 0 Raw material costs % of sales 48.7 48.4 49.2
Extraordinary Inc (Exp) Rs m 942 0 0 SG&A expenses % of sales 25.9 23.6 24.2
Tax Rs m 1,022 1,400 1,369
NOTES
Profit after tax Rs m 6,076 6,677 7,011
Gross profit margin % 21.2 20.0 16.0 Cipla is the third largest pharma company in the domestic retail market (ORG survey)
Effective tax rate % 16.6 17.3 16.3 and has presence in formulations and bulk drugs manufacturing. All the bulk drug
manufacturing facilities of the company have been approved by the US FDA and the
Net profit margin % 21.0 19.4 17.5
formulation facilities have been approved by regulatory authorities in the UK, South
BALANCE SHEET DATA Africa and Australia and other international agencies. Cipla has strategic alliances
with major global generic companies such as Watson, Mylan, Barr and Ivax for supply
Current assets Rs m 22,923 28,357 37,446 of bulk drugs and has a very wide product range in the domestic market.
Current liabilities Rs m 9,082 9,413 12,477
Net working cap to sales % 47.9 55.1 62.3 Cipla clocked a decent 18% YoY topline growth during FY08, which was largely owing
Current ratio x 2.5 3.0 3.0 to the strong performances of both its domestic and exports formulation businesses.
Inventory Turnover Days 121 104 102 Sales from the domestic business grew by 13% YoY driven by the anti-asthmatics,
Debtors Turnover Days 111 109 128 cardiovascular, anti-biotics and anti-retrovirals segments. Formulation exports
Net fixed assets Rs m 11,436 14,613 18,945 clocked a robust 21% YoY growth. While the performance of the API exports segment
Share capital Rs m 600 1,555 1,555 left a lot to be desired during the first half of the year, revenues picked up during the
"Free" reserves Rs m 19,139 30,715 35,907 last two quarters of FY08, enabling the business to post a respectable 12% YoY
growth for the full year. Operating margins, however, declined by 2.5%, consequently
Net worth Rs m 19,833 32,360 37,552
leading to the muted 5% YoY growth in the bottomline.
Long term debt Rs m 310 54 50
Total assets Rs m 34,583 44,135 57,326 We believe that Cipla's focus on contract manufacturing shall gather momentum in
Interest coverage x 55.0 116.4 72.6 the future, keeping in mind the global generics potential. In the domestic market, the
Debt to equity ratio x 0.0 0.0 0.0 company is likely to maintain its strength with its strong field presence and strong
Sales to assets ratio x 0.8 0.8 0.7 brands. However, in the longer term, the company's minimal focus on R&D is likely
Return on assets % 30.7 20.8 19.0 to remain a cause for concern.
Return on equity % 30.6 20.6 18.7
Return on capital % 35.8 25.1 22.6
Exports to sales % 52.3 51.8 52.4
Imports to sales % 19.9 18.9 23.6
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200
 Regd off: 3, Factory Road, Adjacent Safdarjung Hospital, New Delhi - 110 029
DABUR PHARMA LIMITED E-Mail: rajat.aggarwal@daburpharma.com
Web site: www.daburpharma.com
Telephone: (011) 2619 7433 Fax: (011) 2619 8436
PHARMACEUTICALS MISCELLANEOUS Tr agent: MCS Limited, Ohkla Industrial Estate, Phase II, New Delhi - 110 020
Chairman: Mohit Burman SEC: Nikhil Kulshreshtha AUD: G. Basu & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
2004 532545 DABRP:IN 1 69.7 9.7 -8.8 11.1 9.3 0.0 10,920.6 9.0 INE575G01010
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 65.3% Exports (fob) Rs m 1,750
Foreign collaborators : 0.0% Imports (cif) Rs m 383 (Rs)
Indian inst/Mut Fund : 6.3% Fx inflow Rs m 1,846 100
FIIs/GDR : 8.4% Fx outflow Rs m 770
Free float : 20.0% Net fx Rs m 1,076
Shareholders : 47,166
85
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
70
High Rs 62 94 92
Low Rs 46 49 48
Sales per share Rs 16.4 20.0 17.2
Earnings per share Rs 1.0 1.3 6.3 55 DAILY
Cash flow per share Rs 1.4 1.7 7.5
Dividends per share Rs 0.20 0.00 0.00 100 DMA
Dividend yield (eoy) % 0.4 0.0 0.0
40
Book value per share Rs 19.0 20.5 27.0
Shares outstanding (eoy) m 156.08 156.67 156.67 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions PI,ESOS ESOP -
Price / Sales ratio x 3.3 3.6 4.1 No. of months 12 12 12
Avg P/E ratio x 52.0 57.0 11.1 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 38.3 41.6 9.3
Price / Book Value ratio x 2.8 3.5 2.6 From Operations Rs m 167 87 -275
Dividend payout % 19.3 0.0 0.0 From Investments Rs m -899 -1,324 80
Avg Mkt Cap Rs m 8,428 11,233 10,967 From Financial Activity Rs m 1,246 743 329
No. of employees `000 1 1 1 Net Cashflow Rs m 514 -494 134
Total wages/salary Rs m 345 480 568
Avg. sales/employee Rs Th 2,858.6 3,126.9 3,982.2 INTERIM RESULTS
Avg. wages/employee Rs Th 384.2 479.5 841.5 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 180.4 196.8 1,460.7 Net sales Rs m 623 650 439 789
Gross profit Rs m 101 117 -61 215
INCOME DATA Gross profit margin % 16.2 18.0 -13.9 27.2
Net Sales Rs m 2,567 3,130 2,688 Net profit Rs m 85 83 -9 123
Other income Rs m 38 41 74 Net profit margin % 13.6 12.8 -2.1 15.6
Total revenues Rs m 2,605 3,171 2,762
Gross profit Rs m 243 255 -16 KEY DATA
Depreciation Rs m 58 73 190 Parameters Unit FY06 FY07 FY08
Interest Rs m 23 65 130 Domestic oncology % of sales 24.8 24.9 29.0
Profit before tax Rs m 200 158 -262 International formulations % of sales 24.0 26.2 49.0
Minority Interest Rs m 0 0 0 API exports % of sales 19.7 22.0 22.0
Prior Period Items Rs m 0 0 0 Raw material costs % of sales 27.7 28.5 28.2
Extraordinary Inc (Exp) Rs m 0 86 1,688 R&D expenditure % of sales 10.0 10.6 9.8
Tax Rs m 38 47 440
NOTES
Profit after tax Rs m 162 197 986
Gross profit margin % 9.5 8.1 -0.6 Dabur Pharma, incorporated in March 2003, is an associate company of Dabur India
Effective tax rate % 19.0 29.7 -167.9 Limited. The company is a leading player in oncology in India and the international
markets. Dabur Pharma operates in the regulated markets namely the US and
Net profit margin % 6.3 6.3 36.7
Europe and in some other markets through its fully owned subsidiary - Dabur
BALANCE SHEET DATA Oncology Plc. The company's R&D expenditure stood at 10% of sales in FY08. In
FY08, the Burman family sold off their 65% stake to the German based healthcare
Current assets Rs m 1,801 1,592 2,537 company Fresenius Kabi for Rs 8.7 bn.
Current liabilities Rs m 532 718 1,148
Net working cap to sales % 49.4 27.9 51.7 Dabur Pharma reported a 20% YoY decline in sales in FY08 largely due to the sale
Current ratio x 3.4 2.2 2.2 of the non-oncology business. As a result, sales from the domestic market also fell by
Inventory Turnover Days 88 79 122 51% YoY. While the oncology sales witnessed a tepid 5% YoY growth, sales from the
Debtors Turnover Days 61 68 99 international business grew by 7% YoY. In the US market, Dabur Pharma filed 7
Net fixed assets Rs m 3,627 5,033 5,357 ANDAs taking the number of filings to 14. Net profits increased four fold on account
Share capital Rs m 156 157 157 of the extraordinary income received on sale of the non-oncology business.
"Free" reserves Rs m 2,805 3,039 4,032
Going forward, Dabur Pharma's strong presence in the oncology segment (a niche
Net worth Rs m 2,971 3,210 4,229 therapeutic area) in India and the semi-regulated markets is expected to significantly
Long term debt Rs m 410 741 1,423 gain traction in the future. The Indian oncology market, which is valued at US$ 225
Total assets Rs m 5,463 6,656 8,434 m currently, is expected to touch US$ 850 m by 2012, reflecting a CAGR growth of
Interest coverage x 9.7 3.4 -1.0 30% and providing a huge opportunity to Dabur Pharma. In the international markets,
Debt to equity ratio x 0.1 0.2 0.3 the US is expected to be the critical growth driver to bolster revenues from oncology
Sales to assets ratio x 0.5 0.5 0.3 generics, where the competition is relatively limited as compared to that in plain
Return on assets % 5.5 6.6 19.7 vanilla generics.
Return on equity % 5.5 6.1 23.3
Return on capital % 6.6 7.8 27.5
Exports to sales % 45.1 52.9 65.1
Imports to sales % 6.0 11.3 14.2
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201
 Regd off: Bhadr-Raj Chambers, Swastik Cross Rd, Navrangpura, Ahmedabad - 09
DISHMAN PHARMA. AND CHEMICALS LTD. E-Mail: deepak@dishmangroup.com
Web site: www.dishmangroup.com
Telephone: (079) 2644 3053 Fax: (079) 2642 0198
PHARMACEUTICALS MISCELLANEOUS Tr agent: Intime Spectrum, C13, Pannalal Silk Mills Compd., LBS Marg, Mumbai- 78
Chairman: Rajnikant T. Vyas (MD) SEC: Deepak S. Pandya (CO) AUD: Delloite Haskins & Sells
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1983 532526 DISH:IN 2 316.5 5.5 7.1 21.3 15.3 0.3 25,540.6 1.1 INE353G01020
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 60.7% Exports (fob) Rs m 2,349
Foreign collaborators : 0.0% Imports (cif) Rs m 651 (Rs)
Indian inst/Mut Fund : 18.4% Fx inflow Rs m 2,396 475
FIIs/GDR : 11.8% Fx outflow Rs m 729
Free float : 9.2% Net fx Rs m 1,667
Shareholders : 9,030
375
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
275
High Rs 248 267 410
Low Rs 119 141 204
Sales per share Rs 41.0 80.1 100.8
Earnings per share Rs 7.4 12.7 15.0 175
Cash flow per share Rs 9.1 16.3 20.9
DAILY
Dividends per share Rs 0.70 1.00 1.00 100 DMA
Dividend yield (eoy) % 0.4 0.5 0.3
75
Book value per share Rs 27.3 43.8 71.9
Shares outstanding (eoy) m 68.67 72.21 79.68 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions FV2 BC BC
Price / Sales ratio x 4.5 2.5 3.0 No. of months 12 12 12
Avg P/E ratio x 24.8 16.1 20.4 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 20.1 12.5 14.7
Price / Book Value ratio x 6.7 4.7 4.3 From Operations Rs m 154 427 494
Dividend payout % 9.5 7.9 6.7 From Investments Rs m -817 -4,176 -2,532
Avg Mkt Cap Rs m 12,601 14,731 24,462 From Financial Activity Rs m 1,923 2,752 2,053
No. of employees `000 1 1 1 Net Cashflow Rs m 1,260 -996 16
Total wages/salary Rs m 343 1,409 2,154
Avg. sales/employee Rs Th 4,745.4 8,532.4 10,322.6 INTERIM RESULTS
Avg. wages/employee Rs Th 578.4 2,078.2 2,768.6 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 856.7 1,352.5 1,538.6 Net sales Rs m 855 1,001 1,031 1,100
Gross profit Rs m 206 282 269 467
INCOME DATA Gross profit margin % 24.1 28.2 26.1 42.5
Net Sales Rs m 2,814 5,785 8,031 Net profit Rs m 134 210 112 298
Other income Rs m 81 260 511 Net profit margin % 15.7 21.0 10.9 27.1
Total revenues Rs m 2,895 6,045 8,542
Gross profit Rs m 686 1,152 1,528 KEY DATA
Depreciation Rs m 120 263 472 Parameters Unit FY06 FY07 FY08
Interest Rs m 102 189 339 MM revenues % of sales 47.0 28.2 22.7
Profit before tax Rs m 545 960 1,228 CRAMS % of sales 53.0 33.1 31.0
Minority Interest Rs m -6 0 0 Carbogen Amcis & others % of sales 0.0 38.7 46.3
Prior Period Items Rs m 0 -11 -18 Raw material costs % of sales 45.9 34.5 36.5
Extraordinary Inc (Exp) Rs m 0 0 0 SG&A expenses % of sales 18.7 21.3 17.6
Tax Rs m 31 32 13
NOTES
Profit after tax Rs m 508 917 1,197
Gross profit margin % 24.4 19.9 19.0 Dishman Pharmaceuticals is involved in the manufacture of APIs (active
Effective tax rate % 5.7 3.3 1.1 pharmaceutical ingredients), API intermediates, quaternary compounds and fine
chemicals. The company's initial focus was on QUATS (chemical substances, which
Net profit margin % 18.1 15.9 14.9
find applications in the manufacture of bulk drugs, drug intermediates, speciality
BALANCE SHEET DATA chemicals, polymers and resins), but it has now evolved into a significant player in
the CRAMS (Contract Research and Manufacturing) space (72% of revenues). In
Current assets Rs m 3,746 5,424 6,587 August 2006, Dishman acquired the Swiss based Carbogen Amcis to lend a further
Current liabilities Rs m 816 2,648 2,472 fillip to its overall CRAMS business.
Net working cap to sales % 104.1 48.0 51.2
Current ratio x 4.6 2.0 2.7 In FY08, revenues grew by an impressive 39% YoY largely led by the robust growth
Inventory Turnover Days 140 188 138 in the CRAMS business, which includes revenue contribution from the acquired
Debtors Turnover Days 112 79 93 company Carbogen Amcis. While revenues from the CRAMS segment reported a
Net fixed assets Rs m 2,123 5,943 8,168 45% YoY growth, the marketable molecules (MM) segment clocked a relatively lower
Share capital Rs m 137 144 159 12% YoY growth in revenues. Dishman maintained its strong presence in the CRAMS
"Free" reserves Rs m 1,671 2,950 5,256 segment with around 75% of its total revenues coming from exports. Despite the
decline in operating margins, the company was able to grow its bottomline by a robust
Net worth Rs m 1,874 3,165 5,728
31% YoY.
Long term debt Rs m 3,093 4,593 3,904
Total assets Rs m 5,944 11,594 14,930 While Dishman began its CRAMS initiative by entering into a long-term contract with
Interest coverage x 6.3 6.1 4.6 the global innovator Solvay Pharmaceuticals, dependence on this contract is
Debt to equity ratio x 1.7 1.5 0.7 expected to reduce going forward as the company is focusing on adding more clients
Sales to assets ratio x 0.5 0.5 0.5 and products. Besides Solvay, Dishman has entered into 4 long-term contracts with
Return on assets % 12.3 14.3 15.9 MNC pharma majors such as Merck, AstraZeneca, GSK and KRKA. The acquisition
Return on equity % 27.1 29.0 20.9 of Carbogen Amcis is also expected to fuel the growth of the CRAMS business in the
Return on capital % 12.9 14.7 16.1 future. Having said that, operating margins are likely to come under pressure, as
Exports to sales % 50.9 33.1 29.2 Dishman could face pressure on pricing and consequently on the realisation front.
Imports to sales % 19.0 12.0 8.1
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202
 Regd off: 7-1-77/E/1/303, Divi Towers, Dharam Karan Rd., Ameerpet, Hyderabad-16
DIVI'S LABORATORIES LIMITED E-Mail: cs@divislaboratories.com
Web site: www.divislaboratories.com
Telephone: (040) 2373 1318 Fax: (040) 2373 3242
PHARMACEUTICALS MISCELLANEOUS Tr agent: Karvy Computer, 46, Avenue 4, St. No. 1, Banjara Hills, Hyderabad - 34
Chairman: Murali K. Divi SEC: P. V. Lakshmi Rajani AUD: P. V. Lakshmi Rajani
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1990 532488 DIVI:IN 2 1,512.7 4.5 29.8 28.1 25.5 0.3 97,823.1 31.5 INE361B01024
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 53.5% Exports (fob) Rs m 9,628
Foreign collaborators : 0.0% Imports (cif) Rs m 2,196 (Rs)
Indian inst/Mut Fund : 14.4% Fx inflow Rs m 9,670 2020
FIIs/GDR : 15.5% Fx outflow Rs m 2,270
Free float : 16.6% Net fx Rs m 7,400
Shareholders : 25,529
1520
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
1020
High Rs 1,920 3,541 1,930
Low Rs 901 1,118 600
Sales per share Rs 300.0 563.4 160.6
Earnings per share Rs 54.2 143.9 53.8 520 DAILY
Cash flow per share Rs 65.8 161.2 59.4
Dividends per share Rs 10.00 10.00 4.00 100 DMA
Dividend yield (eoy) % 0.7 0.4 0.3
20
Book value per share Rs 265.1 414.7 133.4
Shares outstanding (eoy) m 12.82 12.91 64.56 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - ESOP FV2
Price / Sales ratio x 4.7 4.1 7.9 No. of months 12 12 12
Avg P/E ratio x 26.0 16.2 23.5 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 21.5 14.5 21.3
Price / Book Value ratio x 5.3 5.6 9.5 From Operations Rs m 488 -1,820 2,925
Dividend payout % 18.4 6.9 7.4 From Investments Rs m -1,108 -1,499 -2,254
Avg Mkt Cap Rs m 18,083 30,074 81,668 From Financial Activity Rs m 681 -345 -651
No. of employees `000 NA NA NA Net Cashflow Rs m 60 -24 20
Total wages/salary Rs m 250 468 705
Avg. sales/employee Rs Th NA NA NA INTERIM RESULTS
Avg. wages/employee Rs Th NA NA NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA NA NA Net sales Rs m 2,425 2,842 2,784 2,661
Gross profit Rs m 1,051 1,121 1,156 1,098
INCOME DATA Gross profit margin % 43.3 39.4 41.5 41.3
Net Sales Rs m 3,846 7,273 10,366 Net profit Rs m 913 1,006 944 965
Other income Rs m 71 107 101 Net profit margin % 37.6 35.4 33.9 36.3
Total revenues Rs m 3,917 7,380 10,467
Gross profit Rs m 1,188 2,609 4,188 KEY DATA
Depreciation Rs m 148 223 357 Parameters Unit FY06 FY07 FY08
Interest Rs m 43 89 82 North America % of sales 39.8 48.2 48.2
Profit before tax Rs m 1,068 2,404 3,850 Europe % of sales 34.2 26.4 26.4
Minority Interest Rs m 0 0 0 India % of sales 10.2 6.1 6.1
Prior Period Items Rs m 4 -2 -16 Raw material costs % of sales 44.6 44.6 44.0
Extraordinary Inc (Exp) Rs m -11 -212 -75 SG&A expenses % of sales 25.1 22.5 22.0
Tax Rs m 366 332 283
NOTES
Profit after tax Rs m 695 1,858 3,476
Gross profit margin % 30.9 35.9 40.4 Established in the year 1990, Divi's Laboratories has been focusing on CRAMS and
Effective tax rate % 34.3 13.8 7.4 is an established player in custom chemical synthesis (CCS) and API/Intermediate
segment. Around 50% of Divi's revenues are derived from custom manufacturing for
Net profit margin % 18.1 25.5 33.5
global innovator companies, while the balance is derived from generic exports where
BALANCE SHEET DATA it derives strong economies of scale and competes globally.

Current assets Rs m 3,539 4,239 5,630 Divi's Labs posted an excellent performance in FY08 with revenues and net profits
Current liabilities Rs m 1,311 1,265 1,930 registering a 43% YoY and 84% YoY growth respectively. Exports contributed almost
Net working cap to sales % 57.9 40.9 35.7 94% of the total revenues. This was attributed to the company's continued focus to
Current ratio x 2.7 3.4 2.9 work with global innovator companies developing compounds under custom
Inventory Turnover Days 175 107 99 synthesis, besides its strategic positioning on its range of generic products in the
Debtors Turnover Days 102 81 74 international market. The company has been undertaking various capex programs to
Net fixed assets Rs m 2,951 4,196 5,601 cater to the CRAMS potential and this has also helped the company rake in strong
Share capital Rs m 128 129 129 revenues.
"Free" reserves Rs m 3,242 5,111 8,285
Divi's is working with 20 of the top 25 global innovator companies on various custom
Net worth Rs m 3,399 5,354 8,614 manufacturing contracts, which are expected to boost the company revenues and
Long term debt Rs m 576 673 673 margins going forward. Growth is expected to come from increasing volumes as well
Total assets Rs m 6,491 8,436 11,787 as commercialisation of late stage products. The company is also a market leader in
Interest coverage x 25.8 28.0 48.0 its key products like 'Diltiazem', 'Naproxen' and 'Dextromethorphan', which are
Debt to equity ratio x 0.2 0.1 0.1 expected to grow at a steady pace over the next few years and drive its generic
Sales to assets ratio x 0.6 0.9 0.9 exports. Divi's presence in peptides and nucleotides is also likely to benefit the
Return on assets % 18.6 32.3 38.3 company in the long run as both products involve high entry barriers due to complex
Return on equity % 20.4 34.7 40.4 chemistry skills.
Return on capital % 27.8 37.8 41.4
Exports to sales % 87.1 92.3 92.9
Imports to sales % 28.5 23.5 21.2
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203
 Regd off: 7-1-27, Ameerpet, Hyderabad - 500 016 A.P (India)
DR. REDDY'S LABORATORIES LIMITED E-Mail: nikhilshah@drreddys.com
Web site: www.drreddys.com
Telephone: (040) 2373 1946 Fax: (040) 2373 1955
PHARMACEUTICALS Dr. Reddy's Group Tr agent: Bigshare Services Ltd., G-10, Left wing, Amrutha Ville, Hyderabad - 82
Chairman: K. Anji Reddy SEC: V. Viswanath AUD: BSR & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1984 500124 DRRD:IN 5 584.7 -0.8 -11.7 22.5 11.7 0.6 98,394.8 27.9 INE089A01023
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 25.1% Exports (fob) Rs m 22,599
Foreign collaborators : 0.0% Imports (cif) Rs m 7,357 (Rs)
Indian inst/Mut Fund : 20.9% Fx inflow Rs m 23,668 890
FIIs/GDR : 39.9% Fx outflow Rs m 10,710
Free float : 14.0% Net fx Rs m 12,958
Shareholders : 91,938
755
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
620
High Rs 1,513 877 760
Low Rs 613 579 501
Sales per share Rs 308.1 388.6 296.8
Earnings per share Rs 19.1 57.5 26.1 485
Cash flow per share Rs 40.2 80.1 50.0 DAILY
Dividends per share Rs 5.00 3.75 3.75 100 DMA
Dividend yield (eoy) % 0.5 0.5 0.6
350
Book value per share Rs 269.8 238.1 267.4
Shares outstanding (eoy) m 76.69 167.91 168.18 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions ESOS B1:1,ADR ESOS
Price / Sales ratio x 3.5 1.9 2.1 No. of months 12 12 12
Avg P/E ratio x 55.6 12.7 24.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 26.4 9.1 12.6
Price / Book Value ratio x 3.9 3.1 2.4 From Operations Rs m 1,105 11,961 6,123
Dividend payout % 26.1 6.5 14.4 From Investments Rs m -27,614 436 -9,600
Avg Mkt Cap Rs m 81,521 122,238 106,037 From Financial Activity Rs m 26,882 1,754 -6,828
No. of employees `000 8 9 NA Net Cashflow Rs m 373 14,151 -10,305
Total wages/salary Rs m 3,495 6,433 7,311
Avg. sales/employee Rs Th 3,139.8 7,250.7 NA INTERIM RESULTS
Avg. wages/employee Rs Th 464.5 714.8 NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 195.0 1,073.2 NA Net sales Rs m 12,557 11,992 12,712 14,813
Gross profit Rs m 1,772 1,487 1,876 1,987
INCOME DATA Gross profit margin % 14.1 12.4 14.8 13.4
Net Sales Rs m 23,627 65,256 49,917 Net profit Rs m 1,105 625 779 920
Other income Rs m 885 1,162 2,038 Net profit margin % 8.8 5.2 6.1 6.2
Total revenues Rs m 24,512 66,418 51,955
Gross profit Rs m 2,677 16,370 8,293 KEY DATA
Depreciation Rs m 1,617 3,791 4,019 Parameters Unit FY06 FY07 FY08
Interest Rs m 252 1,342 862 API % of sales 33.7 18.2 23.8
Profit before tax Rs m 1,693 12,399 5,450 Formulations % of sales 41.4 18.9 30.7
Minority Interest Rs m 0 4 9 Generics % of sales 16.3 51.0 36.0
Prior Period Items Rs m 0 0 0 R&D expenditure % of sales 7.4 3.8 7.0
Extraordinary Inc (Exp) Rs m 320 0 0 Raw material costs % of sales 37.0 44.4 37.5
Tax Rs m 546 2,744 1,077
NOTES
Profit after tax Rs m 1,467 9,659 4,382
Gross profit margin % 11.3 25.1 16.6 Dr. Reddy's Laboratories is a leading Indian pharmaceutical company, with presence
Effective tax rate % 32.3 22.1 19.8 across the pharmaceutical value chain. The company derives revenues from APIs
(24% of sales), formulations (31%), generics (36%) and the rest from custom
Net profit margin % 6.2 14.8 8.8
pharmaceutical services, critical care and biotechnology businesses. In 2005, Dr.
BALANCE SHEET DATA Reddy's formed India's first integrated drug research company, Perlecan Pharma, for
conducting clinical trials on the former's 4 NCE assets.
Current assets Rs m 26,618 37,492 30,342
Current liabilities Rs m 10,658 11,229 11,508 FY08 for Dr.Reddy's was a difficult year as revenues fell by 23% YoY. The high base
Net working cap to sales % 67.5 40.2 37.7 effect of FY07 due to authorised generics deals, supply constraints faced by
Current ratio x 2.5 3.3 2.6 Betapharm and softening of demand for a key product of its Mexican business
Inventory Turnover Days 103 42 81 tarnished the company's overall revenues. Margins contracted by 8.6% largely
Debtors Turnover Days 79 44 48 driven by a steep rise in R&D expenditure and SG&A expenses (as percentage of
Net fixed assets Rs m 35,315 38,252 41,803 sales). A 49% YoY drop in operating profits led to the 55% YoY dip in net profits
Share capital Rs m 383 840 841 despite the higher other income and lower interest costs.
"Free" reserves Rs m 20,062 38,544 42,295
Going forward, Dr. Reddy's focus on a stronger product flow in the US, growth in
Net worth Rs m 20,689 39,973 44,969 Betapharm, custom manufacturing business and other core businesses will be the
Long term debt Rs m 15,892 14,783 14,892 key long-term drivers. The company is focusing on building a strong pipeline in the
Total assets Rs m 63,271 77,085 76,966 US market with the aim of launching around 15 products in this market every year.
Interest coverage x 7.7 10.2 7.3 Besides this, it is increasing its focus on biologicals as they attract higher margins due
Debt to equity ratio x 0.8 0.4 0.3 to lesser competition and complexity in manufacture. On the R&D front, the company
Sales to assets ratio x 0.4 0.8 0.6 will buy back the remaining stake in Perlecan from ICICI Ventures and Citigroup for
Return on assets % 4.7 20.1 8.8 US$ 18 m. As regards Betapharm, the company is expected to face difficult
Return on equity % 7.1 24.2 9.7 conditions in the medium term due to regulatory changes in the German market.
Return on capital % 6.2 25.1 10.6 However, the company has taken steps to ease the supply constraints, which has
Exports to sales % 50.6 43.6 45.3 resulted in Betapharm reporting a pick up in volumes. In the long-term, Betapharm is
Imports to sales % 11.6 6.9 14.7 expected to boost Dr. Reddy's presence in the European region.
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204
 Regd off: Dr. Annie Besant Road, Worli, Mumbai - 400 025
GLAXOSMITHKLINE PHARMACEUTICALS LTD E-Mail: ajay.a.nadkarni@gsk.com
Web site: www.gsk-india.com
Telephone: (022) 2495 9595 Fax: (022) 2495 9494
PHARMACEUTICALS MNC Tr agent: Karvy Computer, Plot 17-24, Vithalrao Nagar, Madhapur, Hyderabad-81
Chairman: Deepak Parekh SEC: A. A. Nadkarni AUD: Price Waterhouse & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1924 500660 GLXO:IN 10 1,179.2 6.1 2.8 18.2 17.6 1.5 99,878.2 2.9 INE159A01016
SHAREHOLDING FX Transaction (CY07) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 403
Foreign collaborators : 50.7% Imports (cif) Rs m 1,298 (Rs)
Indian inst/Mut Fund : 15.7% Fx inflow Rs m 837 1600
FIIs/GDR : 15.3% Fx outflow Rs m 2,669
Free float : 18.4% Net fx Rs m -1,832 DAILY
Shareholders : 114,746
1400 100 DMA
No. of months 12 12 12
Year ending 31/12/05 31/12/06 31/12/07
EQUITY SHARE DATA
1200
High Rs 1,175 1,551 1,340
Low Rs 667 891 935
Sales per share Rs 179.3 186.8 189.9
Earnings per share Rs 59.9 65.1 64.6 1000
Cash flow per share Rs 62.2 67.4 67.1
Dividends per share Rs 28.00 31.00 18.00
Dividend yield (eoy) % 3.0 2.5 1.6
800
Book value per share Rs 112.5 142.2 163.0
Shares outstanding (eoy) m 84.70 84.70 84.70 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions BB - -
Price / Sales ratio x 5.1 6.5 6.0 No. of months 12 12 12
Avg P/E ratio x 15.4 18.8 17.6 Year ending 31/12/05 31/12/06 31/12/07
CASH FLOW
P/CF ratio (eoy) x 14.8 18.1 17.0
Price / Book Value ratio x 8.2 8.6 7.0 From Operations Rs m 3,494 2,586 3,188
Dividend payout % 46.8 47.7 27.8 From Investments Rs m 708 -14 989
Avg Mkt Cap Rs m 78,009 103,419 96,346 From Financial Activity Rs m -4,440 -2,691 -2,985
No. of employees `000 4 4 4 Net Cashflow Rs m -238 -120 1,192
Total wages/salary Rs m 1,555 1,537 1,513
Avg. sales/employee Rs Th 3,781.1 4,109.1 4,442.5 INTERIM RESULTS
Avg. wages/employee Rs Th 387.2 399.2 418.0 3QCY07 4QCY07 1QCY08 2QCY08
Avg. net profit/employee Rs Th 1,262.7 1,431.2 1,512.4 Net sales Rs m 4,208 3,393 4,181 4,169
Gross profit Rs m 2,765 1,004 1,522 1,511
INCOME DATA Gross profit margin % 65.7 29.6 36.4 36.2
Net Sales Rs m 15,185 15,820 16,082 Net profit Rs m 2,490 809 1,213 1,148
Other income Rs m 677 711 935 Net profit margin % 59.2 23.8 29.0 27.5
Total revenues Rs m 15,862 16,531 17,017
Gross profit Rs m 4,424 5,159 5,551 KEY DATA
Depreciation Rs m 200 201 205 Parameters Unit CY05 CY06 CY07
Interest Rs m 17 6 6 Pharmaceuticals % of sales 85.1 88.2 96.2
Profit before tax Rs m 4,884 5,663 6,275 Other businesses % of sales 14.9 11.8 5.7
Minority Interest Rs m 0 0 0 Raw material costs % of sales 42.1 39.9 39.6
Prior Period Items Rs m 0 0 0 SG&A expenses % of sales 18.6 19.4 16.5
Extraordinary Inc (Exp) Rs m 1,954 1,838 1,379 Staff costs % of sales 10.2 9.7 9.4
Tax Rs m 1,767 1,991 2,179
NOTES
Profit after tax Rs m 5,071 5,510 5,475
Gross profit margin % 29.1 32.6 34.5 GSK Pharma is the largest pharma company in the domestic pharma market. It is a
Effective tax rate % 36.2 35.2 34.7 51% subsidiary of the US$ 45.8 bn GSK Plc, the world's second-largest pharma
company with an R&D war chest of US$ 6.6 bn. GSK Pharma's product portfolio
Net profit margin % 33.4 34.8 34.0
boasts of some of the leading brands like Augmentin, Cobadex and Zevit in the
BALANCE SHEET DATA domestic pharma market. The company sold off its animal healthcare and fine
chemicals businesses in CY06 and CY07 respectively to focus on its core business
Current assets Rs m 4,686 5,189 5,666 of pharmaceuticals.
Current liabilities Rs m 5,465 5,682 6,396
Net working cap to sales % -5.1 -3.1 -4.5 GSK Pharma's topline during 1HCY08 reported a muted 2% YoY growth, which was
Current ratio x 0.9 0.9 0.9 largely due to the divestment of the fine chemicals business. Excluding the same, the
Inventory Turnover Days 53 57 48 core business of pharmaceuticals recorded an 8% YoY growth during 1HCY08.
Debtors Turnover Days 16 14 9 Operating margins expanded owing to an improvement in the product mix (the
Net fixed assets Rs m 1,056 989 929 company has been concentrating on increasing its focus on priority products as these
Share capital Rs m 847 847 847 are not under price control) and decline in raw material costs (as percentage of
"Free" reserves Rs m 8,667 11,183 11,184 sales).
Net worth Rs m 9,532 12,047 13,808 Going forward, GSK Pharma intends to continue its focus on its priority products,
Long term debt Rs m 48 55 57 which account for a third of its revenues and increase the contribution from the
Total assets Rs m 14,746 17,537 20,060 chronic therapy segment through in-licensing opportunities and brand acquisitions.
Interest coverage x 288.3 944.8 1,046.8 Continued emphasis will be placed on improving the product mix and focusing on
Debt to equity ratio x 0.0 0.0 0.0 higher margin products. The company launched 'Carzec' and 'Arixtra' in CY07 and
Sales to assets ratio x 1.0 0.9 0.8 the anti-cancer drug 'Tykerb' in CY08. Other plans on the anvil include the launch of
Return on assets % 53.1 45.6 39.5 an in-licensed cardiovascular product and the vaccine 'Rotarix' (for treating diarrhea
Return on equity % 53.2 45.7 39.7 in children) in the domestic market by CY08. Besides this, the company has
Return on capital % 71.6 62.0 55.2 envisaged launching 3 more new drugs and 3 vaccines in the domestic market in
Exports to sales % 1.8 1.9 2.5 CY09 and CY10. GSK Pharma is also planning to increase activities on the clinical
Imports to sales % 7.6 8.4 8.1 trials front, which shows that the Indian subsidiary is high on the parent's radar.
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205
 Regd off: 159, C.S.T. Road, Kalina, Santacruz (E), Mumbai - 400 098
LUPIN LIMITED E-Mail: investorservices@lupinpharma.com
Web site: www.lupinworld.com
Telephone: (022) 6640 2323 Fax: (022) 2652 8806
PHARMACEUTICALS MISCELLANEOUS Tr agent: In-house
Chairman: D. B. Gupta SEC: R. V. Satam AUD: Deloitte Haskins & Sells
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1983 500257 LPC:IN 10 750.2 -0.4 22.8 14.6 12.6 1.3 61,576.4 8.6 INE326A01029
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 51.1% Exports (fob) Rs m 13,555
Foreign collaborators : 0.0% Imports (cif) Rs m 6,146 (Rs)
Indian inst/Mut Fund : 20.4% Fx inflow Rs m 15,305 800
FIIs/GDR : 12.4% Fx outflow Rs m 7,755
Free float : 16.1% Net fx Rs m 7,550
Shareholders : 45,805
675
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
550
High Rs 1,050 678 755
Low Rs 525 406 430
Sales per share Rs 422.4 250.7 329.7
Earnings per share Rs 42.2 37.8 49.7 425
Cash flow per share Rs 52.4 43.6 57.6 DAILY
Dividends per share Rs 6.50 5.00 10.00 100 DMA
Dividend yield (eoy) % 0.8 0.9 1.7
300
Book value per share Rs 155.3 108.7 155.9
Shares outstanding (eoy) m 40.14 80.34 82.08 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - B1:1 BC,ESOP
Price / Sales ratio x 1.9 2.2 1.8 No. of months 12 12 12
Avg P/E ratio x 18.6 14.3 11.9 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 15.0 12.4 10.3
Price / Book Value ratio x 5.1 5.0 3.8 From Operations Rs m 1,315 1,779 2,585
Dividend payout % 15.4 13.2 20.1 From Investments Rs m -772 -1,516 -4,918
Avg Mkt Cap Rs m 31,610 43,544 48,628 From Financial Activity Rs m 3,958 -1,108 820
No. of employees `000 5 6 9 Net Cashflow Rs m 4,501 -844 -1,513
Total wages/salary Rs m 1,690 2,200 3,076
Avg. sales/employee Rs Th 3,390.8 3,356.3 3,007.1 INTERIM RESULTS
Avg. wages/employee Rs Th 338.0 366.7 341.8 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 339.0 505.8 453.7 Net sales Rs m 6,590 7,213 7,504 8,623
Gross profit Rs m 1,127 1,215 1,196 1,527
INCOME DATA Gross profit margin % 17.1 16.8 15.9 17.7
Net Sales Rs m 16,954 20,138 27,064 Net profit Rs m 757 1,809 959 1,121
Other income Rs m 741 634 794 Net profit margin % 11.5 25.1 12.8 13.0
Total revenues Rs m 17,695 20,772 27,858
Gross profit Rs m 2,014 2612 4045 KEY DATA
Depreciation Rs m 409 466 647 Parameters Unit FY06 FY07 FY08
Interest Rs m 91 62 61 Domestic revenues % of sales 54.0 52.0 44.9
Profit before tax Rs m 2,255 2718 4131 Formulation exports % of sales 18.0 24.0 36.2
Minority Interest Rs m -4 -1 -1 API exports % of sales 28.0 24.0 19.0
Prior Period Items Rs m -35 -51 0 Raw material costs % of sales 48.7 46.3 43.0
Extraordinary Inc (Exp) Rs m 0 1,357 1,271 SG&A expenses % of sales 28.1 28.3 29.5
Tax Rs m 521 988 1,318
NOTES
Profit after tax Rs m 1,695 3035 4083
Gross profit margin % 11.9 13.0 14.9 Lupin is a leading pharmaceutical company with a strong presence in anti-TB,
Effective tax rate % 23.1 36.4 31.9 cephalosporins (anti-infectives), cardiovascular (prils and statins) and asthma. Apart
from having a strong domestic presence, the company markets its products in the
Net profit margin % 10.0 15.1 15.1
regulated markets of the US and Europe and semi-regulated markets of South East
BALANCE SHEET DATA Asia, Africa and the CIS. During the period between FY02 and FY08, the company
has grown revenues and net profits at compounded rates of 19% and 33%
Current assets Rs m 13,674 14,629 20,441 respectively.
Current liabilities Rs m 3,984 4,222 7,470
Net working cap to sales % 57.2 51.7 47.9 Lupin's revenues grew by a robust 34% YoY during FY08 driven by strong
Current ratio x 3.4 3.5 2.7 performance of the company's domestic formulations business and robust growth of
Inventory Turnover Days 74 78 106 formulation exports to the regulated markets of North America and Europe. Besides
Debtors Turnover Days 67 73 100 'Suprax', the overall performance of the US business was also bolstered by the
Net fixed assets Rs m 6,718 7,971 11,125 launch of 4 new products. Growth in the domestic market was led by the therapeutic
Share capital Rs m 401 803 821 areas of asthma, cardiovascular, CNS, diabetes and anti-infectives. Lupin's operating
"Free" reserves Rs m 5,221 7,329 11,411 margins improved largely due to a substantial fall in raw material costs (as
percentage of sales). While Lupin's bottomline grew by a healthy 32% YoY, it was
Net worth Rs m 6,233 8,733 12,797
nevertheless lower than the growth in operating profits due to higher tax and
Long term debt Rs m 5,180 4,076 5,589
depreciation charges. The company received extraordinary income of Rs 1.1 bn
Total assets Rs m 20,061 22,630 31,766 during FY08 on account of sale of IP on 'Perindopril'.
Interest coverage x 25.8 44.8 68.7
Debt to equity ratio x 0.8 0.5 0.4 The US market is expected to witness an increase in the number of products
Sales to assets ratio x 0.8 0.9 0.9 launched in the coming years. Cephalosporins (around 50% to Lupin's revenues) are
Return on assets % 15.6 24.2 22.5 expected to be a key growth driver going forward especially in the US generics
Return on equity % 27.2 34.8 31.9 market. The company's strong presence in the cephalosporins and anti-TB space
Return on capital % 20.2 31.9 29.7 gives it an edge over its peers. The company has also unveiled plans of establishing
Exports to sales % 46.1 46.1 50.1 a presence in Europe and its strategy there will be a combination of alliances with
Imports to sales % 20.4 22.3 22.7 global generic players as well as participating directly into certain markets.
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206
 Regd off: Shiv Sagar Estate `A`, Dr. Annie Besant Road, Worli, Mumbai - 400 018
MERCK LIMITED E-Mail: hu.shenoy@merck.co.in
Web site: www.merck.co.in
Telephone: (022) 6660 9177 Fax: (022) 2495 0307
PHARMACEUTICALS MNC Tr agent: Sharepro Services, 912, Raheja Centre, Nariman Point, Mumbai-400 021
Chairman: S. N. Talwar SEC: H. U. Shenoy AUD: BSR & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1967 500126 EMER:IN 10 350.0 5.4 -11.4 8.6 7.8 5.7 5,901.0 2.3 INE199A01012
SHAREHOLDING FX Transaction (CY07) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 197
Foreign collaborators : 51.0% Imports (cif) Rs m 416 (Rs)
Indian inst/Mut Fund : 19.4% Fx inflow Rs m 206 670
FIIs/GDR : 1.2% Fx outflow Rs m 521
Free float : 28.8% Net fx Rs m -315
Shareholders : 25,719 DAILY
565
No. of months 12 12 12 100 DMA
Year ending 31/12/05 31/12/06 31/12/07
EQUITY SHARE DATA
High Rs 590 639 500
460
Low Rs 375 426 372
Sales per share Rs 235.1 195.4 186.7
Earnings per share Rs 46.6 79.1 40.9 355
Cash flow per share Rs 51.2 82.9 44.8
Dividends per share Rs 15.00 20.00 20.00
Dividend yield (eoy) % 3.1 3.8 4.6
250
Book value per share Rs 176.8 233.1 250.8
Shares outstanding (eoy) m 16.86 16.86 16.86 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 2.1 2.7 2.3 No. of months 12 12 12
Avg P/E ratio x 10.3 6.7 10.7 Year ending 31/12/05 31/12/06 31/12/07
CASH FLOW
P/CF ratio (eoy) x 9.4 6.4 9.7
Price / Book Value ratio x 2.7 2.3 1.7 From Operations Rs m 684 661 381
Dividend payout % 32.2 25.3 48.9 From Investments Rs m -115 -152 303
Avg Mkt Cap Rs m 8,135 8,978 7,351 From Financial Activity Rs m -190 -287 -575
No. of employees `000 1 1 1 Net Cashflow Rs m 380 222 109
Total wages/salary Rs m 308 340 333
Avg. sales/employee Rs Th 4,163.9 3,831.4 3,279.2 INTERIM RESULTS
Avg. wages/employee Rs Th 323.5 395.3 346.9 3QCY07 4QCY07 1QCY08 2QCY08
Avg. net profit/employee Rs Th 825.6 1,550.0 717.7 Net sales Rs m 818 796 834 1,051
Gross profit Rs m 181 155 143 165
INCOME DATA Gross profit margin % 22.1 19.5 17.1 15.7
Net Sales Rs m 3,964 3,295 3,148 Net profit Rs m 192 174 162 180
Other income Rs m 184 312 395 Net profit margin % 23.5 21.9 19.4 17.1
Total revenues Rs m 4,148 3,607 3,543
Gross profit Rs m 1,066 794 670 KEY DATA
Depreciation Rs m 78 64 66 Parameters Unit CY05 CY06 CY07
Interest Rs m 0 0 0 Pharmaceutical % of sales 56.7 73.1 80.8
Profit before tax Rs m 1,172 1,042 999 Chemicals % of sales 43.3 26.9 19.2
Minority Interest Rs m 0 0 0 Raw material costs % of sales 45.3 42.3 40.2
Prior Period Items Rs m -3 -25 0 SG&A expenses % of sales 19.9 23.3 28.0
Extraordinary Inc (Exp) Rs m -2 655 0 Staff costs % of sales 7.8 10.3 10.5
Tax Rs m 381 339 310
NOTES
Profit after tax Rs m 786 1,333 689
Gross profit margin % 26.9 24.1 21.3 Merck, the Indian arm of Merck KgaA (Germany), is a relatively smaller player among
Effective tax rate % 32.5 32.5 31.0 MNC pharma majors in the country. Merck has two business segments namely
Pharmaceuticals and Chemicals. The pharmaceutical business, accounting for 81%
Net profit margin % 19.8 40.5 21.9
of total sales, comprises of Ethicals and Consumer Healthcare. The Ethicals division
BALANCE SHEET DATA deals with therapeutic segments such as vitamins, cough and cold preparations,
cardiologicals and the like. The Consumer Healthcare division deals with nasal drops,
Current assets Rs m 1,975 1,893 2,151 oral rehydration salts, health supplements etc. The Chemicals business (19% of
Current liabilities Rs m 822 800 618 sales) consists of bulk drugs and pigments.
Net working cap to sales % 29.1 33.2 48.7
Current ratio x 2.4 2.4 3.5 Merck's topline in 1HCY08 grew by 23% YoY driven by the core pharmaceuticals
Inventory Turnover Days 39 40 42 business, which registered a robust 23% YoY growth. Sales from the chemicals
Debtors Turnover Days 53 31 36 business grew by 22% YoY during the half year period. However, operating margins
Net fixed assets Rs m 447 403 405 were at the receiving end as they fell drastically from 22% in 1HCY07 to 16% in
Share capital Rs m 169 169 169 1HCY08 resulting in the 8% YoY decline in operating profits. However, higher other
"Free" reserves Rs m 2,810 3,759 4,058 income and lower tax expenses propped up the bottomline, which managed to post
a 6% YoY growth during the half year period.
Net worth Rs m 2,981 3,930 4,229
Long term debt Rs m 0 0 0 While the company has been undertaking steps to launch new products and acquire
Total assets Rs m 3,829 4,776 4,895 brands, the biggest apprehension is with respect to the pricing policy of the
Interest coverage x NM NM NM government. Because of the high coverage of vitamin formulations, around 58% of
Debt to equity ratio x 0.0 0.0 0.0 the company's pharmaceutical products fall within the purview of the Drug Pricing
Sales to assets ratio x 1.0 0.7 0.6 Control Order (DPCO). In this context, any adverse announcement on the drug
Return on assets % 26.4 33.9 16.3 pricing front is likely to have a material impact on the company's performance.
Return on equity % 26.4 33.9 16.3
Return on capital % 39.1 42.5 23.6
Exports to sales % 3.8 5.3 6.3
Imports to sales % 16.6 15.8 13.2
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207
 Regd off: Sandoz House, Shiv Sagar Estate, Dr. Annie Besant Road, Mumbai-18
NOVARTIS INDIA LIMITED E-Mail: hemang.maniar@novartis.com
Web site: www.novartis.co.in
Telephone: (022) 2495 8807 Fax: (022) 2493 8666
PHARMACEUTICALS MNC Tr agent: Sharepro Services, Satam Estate, 3rd Floor, Chakala, Mumbai - 99
Chairman: P. Jager SEC: H. K. Maniar AUD: Price WaterHouse
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1947 500672 HCBA:IN 5 293.1 -0.2 -2.6 9.6 9.4 3.4 9,367.5 2.0 INE234A01025
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 23
Foreign collaborators : 50.9% Imports (cif) Rs m 583 (Rs)
Indian inst/Mut Fund : 17.5% Fx inflow Rs m 92 650
FIIs/GDR : 1.7% Fx outflow Rs m 663
Free float : 29.9% Net fx Rs m -571
Shareholders : 50,383 DAILY
550
No. of months 12 12 12 100 DMA
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
450
High Rs 635 596 440
Low Rs 441 307 269
Sales per share Rs 164.5 169.7 173.2
Earnings per share Rs 33.8 27.7 30.4 350
Cash flow per share Rs 33.9 28.6 31.3
Dividends per share Rs 10.00 10.00 10.00
Dividend yield (eoy) % 1.9 2.2 2.8
250
Book value per share Rs 105.6 121.6 140.3
Shares outstanding (eoy) m 31.96 31.96 31.96 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 3.3 2.7 2.0 No. of months 12 12 12
Avg P/E ratio x 15.9 16.3 11.7 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 15.8 15.8 11.3
Price / Book Value ratio x 5.1 3.7 2.5 From Operations Rs m 619 507 661
Dividend payout % 29.6 36.1 32.9 From Investments Rs m 384 -818 -474
Avg Mkt Cap Rs m 17,194 14,430 11,330 From Financial Activity Rs m -392 -895 -88
No. of employees `000 1 1 1 Net Cashflow Rs m 611 -1,206 99
Total wages/salary Rs m 502 552 599
Avg. sales/employee Rs Th 5,982.9 6,045.7 6,095.8 INTERIM RESULTS
Avg. wages/employee Rs Th 571.1 615.4 659.7 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 1,227.5 987.7 1,070.5 Net sales Rs m 1,479 1,362 1,306 1,537
Gross profit Rs m 276 157 212 341
INCOME DATA Gross profit margin % 18.7 11.5 16.2 22.2
Net Sales Rs m 5,259 5,423 5,535 Net profit Rs m 244 182 215 297
Other income Rs m 375 501 589 Net profit margin % 16.5 13.4 16.5 19.3
Total revenues Rs m 5,634 5,924 6,124
Gross profit Rs m 856 888 992 KEY DATA
Depreciation Rs m 6 27 29 Parameters Unit FY06 FY07 FY08
Interest Rs m 26 6 6 Pharmaceuticals % of sales 69.3 70.7 69.8
Profit before tax Rs m 1,199 1,356 1,546 OTC % of sales 13.7 14.7 14.2
Minority Interest Rs m 0 0 0 Animal health % of sales 6.5 6.6 7.7
Prior Period Items Rs m 19 30 -24 Generics % of sales 10.5 8.0 8.3
Extraordinary Inc (Exp) Rs m 271 -2 -3 Raw material costs % of sales 49.2 45.0 43.5
Tax Rs m 410 498 547
NOTES
Profit after tax Rs m 1,079 886 972
Gross profit margin % 16.3 16.4 17.9 Novartis is a 51% subsidiary of Novartis AG - Switzerland, a global leader in the life
Effective tax rate % 34.2 36.7 35.4 sciences business. It has a countrywide presence in the healthcare business with
pharmaceuticals contributing 70% to total revenues (FY08). Generics (8%),
Net profit margin % 20.5 16.3 17.6
consumer healthcare i.e. OTC (14%) and animal health (8%) make up for the rest. It
BALANCE SHEET DATA has identified therapeutic segments of CVS (Cardiovascular), oncology, CNS
(Central Nervous System) and gynaecology as the key growth drivers for the future.
Current assets Rs m 4,489 4,605 5,382
Current liabilities Rs m 1,329 893 1,327 Novartis' performance during FY08 left a lot to be desired with revenues growing by
Net working cap to sales % 60.1 68.4 73.3 a staid 2% YoY. Revenues from the pharmaceutical division recorded a staid 1% YoY
Current ratio x 3.4 5.2 4.1 growth due to reduction in the price of one of its key products 'Tegrital' by the
Inventory Turnover Days 43 45 45 Government and increasing competition for its key brands. While the generics
Debtors Turnover Days 27 29 26 division grew by 6%, the animal health business turned out to be the strongest
Net fixed assets Rs m 101 97 93 performer of the lot logging a growth of 18% YoY. The OTC business slumped by 2%
Share capital Rs m 160 160 160 YoY, as it was hampered by the pressures of increasing competition. Novartis'
"Free" reserves Rs m 3,215 3,725 4,323 operating margins expanded by 1.6% during the year largely due to lower raw
material and advertising expenses. Bottomline growth (up 10% YoY) failed to keep
Net worth Rs m 3,376 3,886 4,484
pace with the growth in operating profits (up 12% YoY) largely due to higher tax
Long term debt Rs m 0 43 0
expenses.
Total assets Rs m 4,660 4,739 5,695
Interest coverage x 47.1 227.0 258.7 Going forward, the pharmaceutical and OTC businesses are expected to be the key
Debt to equity ratio x 0.0 0.0 0.0 growth drivers, which will largely be driven by new product launches. In the pharma
Sales to assets ratio x 1.1 1.1 1.0 business, the company has chalked a strategy of driving growth through life cycle
Return on assets % 32.7 22.7 21.8 management of existing products and in-licensing opportunities. In the OTC segment,
Return on equity % 32.0 22.8 21.7 consolidation of existing brands and launch of new products in various categories is
Return on capital % 44.9 35.4 34.0 expected to augur well for this business. Besides this, the management's plans of
Exports to sales % 0.3 0.4 0.4 launching patented products in India from 2008 onwards can be construed as a
Imports to sales % 12.2 14.8 10.5 positive step.
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208
 Regd off: Pfizer Centre, Patel Estate, S. V. Road, Jogeshwari, Mumbai-102
PFIZER LIMITED E-Mail: Prajeet.nair@pfizer.com
Web site: www.pfizerindia.com
Telephone: (022) 6693 2000 Fax: (022) 6693 2377
PHARMACEUTICALS MNC Tr agent: Karvy Computershare, 7 Andheri Industrial Est., Off V. D. Rd., Mumbai-53
Chairman: R. A. Shah SEC: Prajeet Nair AUD: BSR & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1950 500680 PFIZ:IN 10 559.9 -5.6 -18.5 4.9 4.8 4.9 16,705.9 4.1 INE182A01018
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 5
Foreign collaborators : 41.2% Imports (cif) Rs m 348 (Rs)
Indian inst/Mut Fund : 32.4% Fx inflow Rs m 2,105 1240
FIIs/GDR : 1.2% Fx outflow Rs m 727
Free float : 25.2% Net fx Rs m 1,378
Shareholders : 72,991
1055 DAILY
No. of months 12 12 12
Year ending 30/11/05 30/11/06 30/11/07 100 DMA
EQUITY SHARE DATA
870
High Rs 929 1,225 925
Low Rs 567 621 635
Sales per share Rs 211.0 232.2 233.9
Earnings per share Rs 23.7 35.7 113.9 685
Cash flow per share Rs 28.3 40.0 117.2
Dividends per share Rs 10.00 22.50 27.50
Dividend yield (eoy) % 1.3 2.4 3.5
500
Book value per share Rs 113.7 131.5 216.8
Shares outstanding (eoy) m 29.84 29.84 29.84 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions A - -
Price / Sales ratio x 3.5 4.0 3.3 No. of months 12 12 12
Avg P/E ratio x 31.6 25.9 6.8 Year ending 30/11/05 30/11/06 30/11/07
CASH FLOW
P/CF ratio (eoy) x 26.4 23.0 6.7
Price / Book Value ratio x 6.6 7.0 3.6 From Operations Rs m 1,027 1,232 165
Dividend payout % 42.2 63.1 24.1 From Investments Rs m -731 75 2,325
Avg Mkt Cap Rs m 22,320 27,542 23,275 From Financial Activity Rs m -460 -338 -759
No. of employees `000 2 2 2 Net Cashflow Rs m -164 968 1,731
Total wages/salary Rs m 1,001 1,023 1,017
Avg. sales/employee Rs Th 2,765.0 2,972.5 3,695.1 INTERIM RESULTS
Avg. wages/employee Rs Th 439.6 438.9 538.4 4QFY08 1QFY09 2QFY09 3QFY09
Avg. net profit/employee Rs Th 310.5 456.5 1,799.9 Net sales Rs m 1,773 1,504 1,634 1,877
Gross profit Rs m 146 316 339 368
INCOME DATA Gross profit margin % 8.2 21 20.7 19.6
Net Sales Rs m 6,296 6,929 6,980 Net profit Rs m 220 -170 380 381
Other income Rs m 144 215 481 Net profit margin % 12.4 -11.3 23.3 20.3
Total revenues Rs m 6,440 7,144 7,461
Gross profit Rs m 1,348 1,659 1,565 KEY DATA
Depreciation Rs m 138 131 96 Parameters Unit FY06 FY07 FY08
Interest Rs m 2 1 0 Pharmaceuticals % of sales 86.6 87.7 87.1
Profit before tax Rs m 1,352 1,742 1,950 Animal health % of sales 9.5 8.6 9.9
Minority Interest Rs m 0 0 0 Clinical services % of sales 4.0 3.7 3.0
Prior Period Items Rs m 0 0 0 Raw material costs % of sales 32.7 32.5 33.4
Extraordinary Inc (Exp) Rs m -234 -115 2,563 SG&A expenses % of sales 29.3 27.6 28.5
Tax Rs m 411 563 1,113
NOTES
Profit after tax Rs m 707 1,064 3,400
Gross profit margin % 21.4 23.9 22.4 Pfizer India is a 41% subsidiary of the world's largest pharmaceuticals company -
Effective tax rate % 30.4 32.3 57.1 Pfizer Inc. The company is ranked ninth in the Indian pharma industry with a share of
2.6%. Pfizer derives a larger share of its revenues from the pharmaceuticals division
Net profit margin % 11.2 15.4 48.7
(86%). The company also has presence in the animal health (10%) and clinical
BALANCE SHEET DATA development operations (4%) segments. In the animal health segment, Pfizer plans
to capitalize on its parent's global leader status and become a major player. Pfizer
Current assets Rs m 4,526 5,514 7,806 also carries out clinical trials on behalf of its parent.
Current liabilities Rs m 2,001 2,402 2,177
Net working cap to sales % 40.1 44.9 80.6 During 1HCY08, Pfizer's topline declined by 2% YoY due to the 4% YoY decline in
Current ratio x 2.3 2.3 3.6 sales reported by the pharma business. Further, Pfizer's sales were also affected as
Inventory Turnover Days 53 52 50 the company had sold four brands from its consumer healthcare division namely
Debtors Turnover Days 48 37 32 'Benadryl', 'Caladryl', 'Benylin' and 'Listerine' to Johnson & Johnson. These four
Net fixed assets Rs m 777 668 704 products accounted for 10% of Pfizer's total sales. Revenues from the consumer
Share capital Rs m 298 298 298 health business, which Pfizer has retained with itself, posted a decent 17% YoY
"Free" reserves Rs m 3,461 3,759 6,199 growth. The company made three product launches during the first half of the year.
While operating margins remained stable, excluding the impact of extraordinary
Net worth Rs m 3,393 3,924 6,468
items, bottomline registered a strong 23% YoY growth led by higher other income and
Long term debt Rs m 0 0 0
low depreciation charges.
Total assets Rs m 5,303 6,182 8,516
Interest coverage x 677.0 1,743.0 NM We expect Pfizer's operating margins to improve going forward backed by an
Debt to equity ratio x 0.0 0.0 0.0 improvement in product mix and continued efficiency at the operating level. The
Sales to assets ratio x 1.2 1.1 0.8 company already launched three blockbuster drugs from its parent's product portfolio
Return on assets % 20.9 27.1 52.6 in the Indian markets in CY07 and has unveiled plans of launching around three more
Return on equity % 20.8 27.1 52.6 products going forward as well. Out of these, the smoking cessation drug 'Champix'
Return on capital % 33.0 41.5 69.8 has been launched and has already amassed revenues of Rs 10 m. Two more new
Exports to sales % 0.3 0.2 0.1 products are slated to be launched during the year; one in the anti-infectives space
Imports to sales % 5.9 6.3 5.0 and the other catering to the cardiovascular therapeutic area.
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209
 Regd off: Nicholas Piramal Tower, Ganpatrao Kadam Marg,Lower Parel, Mumbai-13
PIRAMAL HEALTHCARE LTD E-Mail: complianceofficer@nicholaspiramal.co.in
Web site: www.nicholaspiramal.com
Telephone: (022) 3046 6666 Fax: (022) 2490 2363
PHARMACEUTICALS AJAY PIRAMAL Tr agent: Amtrac Management Services, Plot No. 101/2, MIDC, Satpur, Nasik-7
Chairman: Ajay G. Piramal SEC: Leonard D`souza AUD: Price Waterhouse
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1947 500302 PIHC:IN 2 341.6 -3.1 16.0 21.4 16.7 1.2 71,397.8 3.1 INE140A01024
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 49.8% Exports (fob) Rs m 4,537
Foreign collaborators : 0.0% Imports (cif) Rs m 2,342 (Rs)
Indian inst/Mut Fund : 9.0% Fx inflow Rs m 4,657 425
FIIs/GDR : 23.6% Fx outflow Rs m 2,471
Free float : 17.6% Net fx Rs m 2,186
Shareholders : 77,788
350
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
275
High Rs 301 283 383
Low Rs 201 150 231
Sales per share Rs 75.7 115.8 136.3
Earnings per share Rs 5.8 10.4 16.0 200 DAILY
Cash flow per share Rs 9.1 14.3 20.5
Dividends per share Rs 3.00 3.50 4.20 100 DMA
Dividend yield (eoy) % 1.2 1.6 1.4
125
Book value per share Rs 46.0 50.1 52.3
Shares outstanding (eoy) m 209.01 209.01 209.01 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions R1:10 - -
Price / Sales ratio x 3.3 1.9 2.3 No. of months 12 12 12
Avg P/E ratio x 43.5 20.8 19.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 27.7 15.1 15.0
Price / Book Value ratio x 5.5 4.3 5.9 From Operations Rs m 1,579 2,395 3,359
Dividend payout % 51.9 33.6 26.3 From Investments Rs m -2,510 -4,012 -2,809
Avg Mkt Cap Rs m 52,462 45,251 64,192 From Financial Activity Rs m 1,734 1,165 -560
No. of employees `000 7 7 7 Net Cashflow Rs m 802 -452 -10
Total wages/salary Rs m 1,927 4,201 4,710
Avg. sales/employee Rs Th 2,296.5 3,588.1 4,033.8 INTERIM RESULTS
Avg. wages/employee Rs Th 279.6 622.8 667.0 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 175.2 323.2 472.6 Net sales Rs m 7,646 7,323 7,679 7,083
Gross profit Rs m 1,302 1,158 2,036 1,198
INCOME DATA Gross profit margin % 17.0 15.8 26.5 16.9
Net Sales Rs m 15,825 24,202 28,483 Net profit Rs m 848 728 1,596 722
Other income Rs m 334 558 690 Net profit margin % 11.1 9.9 20.8 10.2
Total revenues Rs m 16,159 24,760 29,173
Gross profit Rs m 1,976 3,362 5,198 KEY DATA
Depreciation Rs m 688 818 947 Parameters Unit FY06 FY07 FY08
Interest Rs m 270 519 866 Domestic revenues % of sales 78.6 58.1 53.8
Profit before tax Rs m 1,352 2,583 4,075 Exports % of sales 7.5 10.5 11.7
Minority Interest Rs m -4 -1 -14 Custom manufacturing % of sales 13.9 33.5 35.4
Prior Period Items Rs m -35 -102 0 R&D expenditure % of sales 4.9 5.2 2.8
Extraordinary Inc (Exp) Rs m 132 89 -347 Raw material costs % of sales 42.6 36.3 38.4
Tax Rs m 238 389 377
NOTES
Profit after tax Rs m 1,207 2,180 3,337
Gross profit margin % 12.5 13.9 18.2 Piramal Healthcare is the fourth largest company in the domestic market. The biggest
Effective tax rate % 17.6 15.1 9.3 contributors to the company's revenues are the respiratory and anti-infective
segments. The other segments are cardiovascular, nutritional, and gastro intestinal.
Net profit margin % 7.6 9.0 11.7
Nicholas Piramal has also identified custom manufacturing as its area of growth
BALANCE SHEET DATA going forward and has signed five contracts to date. Nicholas acquired the contract-
manufacturing organisation (CMO), Avecia Pharmaceuticals, UK in 2005 and Pfizer's
Current assets Rs m 7,759 10,494 11,694 Morpeth facility in the UK in 2006 to establish a footprint in the global custom
Current liabilities Rs m 4,340 4,866 5,898 manufacturing space.
Net working cap to sales % 21.6 23.3 20.3
Current ratio x 1.8 2.2 2.0 Piramal Healthcare's revenues grew by 16% YoY during FY08, driven by both the
Inventory Turnover Days 64 66 52 domestic formulations and custom manufacturing businesses. The 10% YoY growth
Debtors Turnover Days 56 55 57 in branded formulations was aided by the anti-infectives, gastrointestinal,
Net fixed assets Rs m 10,418 12,238 12,585 ophthalmology and OTC segments. Revenues from the custom manufacturing
Share capital Rs m 418 418 418 business registered a 19% YoY growth led by growth in Avecia, Morpeth and its
"Free" reserves Rs m 8,289 9,628 10,047 Indian assets. Custom manufacturing revenues relating to contracts from Indian
facilities witnessed significant traction. The pathlabs business also clocked an
Net worth Rs m 9,610 10,478 10,926
impressive 72% YoY growth, which was due to a combination of organic as well as
Long term debt Rs m 1,186 1,874 2,000
inorganic growth. While operating margins expanded by 3.4%, the company's
Total assets Rs m 18,464 23,018 24,932 bottomline (up 53% YoY) grew at a much faster clip than the growth in operating
Interest coverage x 6.0 6.0 5.7 profits due to higher other income and lower tax expenses.
Debt to equity ratio x 0.1 0.2 0.2
Sales to assets ratio x 0.9 1.1 1.1 We believe that the global custom manufacturing business will bolster the
Return on assets % 13.7 21.9 32.5 performance of the company going forward with the Avecia acquisition, operations
Return on equity % 12.6 20.8 30.5 from the Indian assets and Morpeth facility being the key growth drivers. The
Return on capital % 15.9 25.0 35.4 company is also taking initiatives to boost growth in the domestic market by in-
Exports to sales % 13.9 11.8 15.9 licensing new products and improving the productivity of its field force. The de-merger
Imports to sales % 11.0 9.0 8.2 of the R&D business will lead to an improvement in operating margins going forward.
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210
 Regd off: A-11, Industrial Area, Sahibzada Ajit Singh Nagar, Mohali , Punjab - 55
RANBAXY LABORATORIES LIMITED + $ E-Mail: secretarial@ranbaxy.com
Web site: www.ranbaxy.com
Telephone: (0124) 4185 888 Fax: (0124) 4106 490
PHARMACEUTICALS PARVINDER SINGH Tr agent: Alankit Assignments, Alankit House, 2E/21, Jhandewalan Extn., Delhi - 55
Chairman: Harpal Singh SEC: S. K. Patawari AUD: Walker, Chandiok & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1961 500359 RBXY:IN 5 450.3 -12.8 12.6 22.1 17.3 1.9 171,108.5 1,532.9 INE015A01028
SHAREHOLDING FX Transaction (CY07) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 34.8% Exports (fob) Rs m 25,173
Foreign collaborators : 0.0% Imports (cif) Rs m 5,408 (Rs)
Indian inst/Mut Fund : 23.3% Fx inflow Rs m 26,609 616
FIIs/GDR : 20.7% Fx outflow Rs m 11,188
Free float : 21.2% Net fx Rs m 15,421 DAILY
Shareholders : 184,253 100 DMA
532
No. of months 12 12 12
Year ending 31/12/05 31/12/06 31/12/07
EQUITY SHARE DATA
448
High Rs 633 530 490
Low Rs 340 317 306
Sales per share Rs 140.3 164.5 180.8
Earnings per share Rs 6.9 14.1 20.8 364
Cash flow per share Rs 10.6 19.0 26.5
Dividends per share Rs 8.50 8.50 8.50
Dividend yield (eoy) % 1.7 2.0 2.1
280
Book value per share Rs 65.7 69.4 75.1
Shares outstanding (eoy) m 372.44 372.69 373.07 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions FV5 ESOP ESOP
Price / Sales ratio x 3.5 2.6 2.2 No. of months 12 12 12
Avg P/E ratio x 70.9 30.1 19.2 Year ending 31/12/05 31/12/06 31/12/07
CASH FLOW
P/CF ratio (eoy) x 46.0 22.2 15.0
Price / Book Value ratio x 7.4 6.1 5.3 From Operations Rs m 2,037 5,292 10,232
Dividend payout % 123.9 60.3 40.9 From Investments Rs m -8,381 -19,931 -8,408
Avg Mkt Cap Rs m 181,192 157,833 148,482 From Financial Activity Rs m 7,460 15,128 -392
No. of employees `000 10 11 12 Net Cashflow Rs m 1,117 490 1,433
Total wages/salary Rs m 7,816 9,004 10,237
Avg. sales/employee Rs Th 5,417.5 5,406.4 5,696.4 INTERIM RESULTS
Avg. wages/employee Rs Th 810.1 793.8 864.4 3QCY07 4QCY07 1QCY08 2QCY08
Avg. net profit/employee Rs Th 264.9 462.9 654.1 Net sales Rs m 17,730 19,023 16,986 12,169
Gross profit Rs m 2,831 2,977 3,360 -274
INCOME DATA Gross profit margin % 16.0 15.6 19.8 -2.3
Net Sales Rs m 52,268 61,325 67,462 Net profit Rs m 1,851 1,834 1,287 237
Other income Rs m 1,164 673 6,446 Net profit margin % 10.4 9.6 7.6 1.9
Total revenues Rs m 53,432 61,998 73,908
Gross profit Rs m 2,564 8,716 7,077 KEY DATA
Depreciation Rs m 1,387 1,843 2,153 Parameters Unit CY05 CY06 CY07
Interest Rs m 671 1,036 1,412 India % of sales 20.1 20.6 18.2
Profit before tax Rs m 1,670 6,510 9,958 US % of sales 27.7 28.0 23.6
Minority Interest Rs m -25 -50 -124 Europe % of sales 17.1 14.3 14.8
Prior Period Items Rs m -62 148 1 R&D expenditure % of sales 9.4 6.4 6.3
Extraordinary Inc (Exp) Rs m 275 0 30 Raw material costs % of sales 42.5 38.7 40.1
Tax Rs m -698 1,357 2,119
NOTES
Profit after tax Rs m 2,556 5,251 7,746
Gross profit margin % 4.9 14.2 10.5 Ranbaxy is the largest Indian pharmaceutical company (in terms of revenues). The
Effective tax rate % -41.8 20.8 21.3 company manufactures and markets generic formulations and APIs and invests 6%
of revenues in R&D. It has about 239 ANDA filings out of which 146 have been
Net profit margin % 4.9 8.6 11.5
approved by the US FDA and 93 are awaiting approval. The company is ranked
BALANCE SHEET DATA amongst the top ten global generic companies having a global footprint in 49
countries and manufacturing operations in 11.
Current assets Rs m 33,329 41,426 44,760
Current liabilities Rs m 15,008 17,918 21,327 Ranbaxy's 11% YoY topline growth during 1HCY08 was led by the US and the
Net working cap to sales % 35.1 38.3 34.7 emerging markets. Growth in the US was driven by new product launches, continuing
Current ratio x 2.2 2.3 2.1 volume growth across generics, branded generics and OTC segments. The company
Inventory Turnover Days 95 96 89 also entered into settlement agreements with Pfizer and AstraZeneca for their
Debtors Turnover Days 80 94 81 respective drugs 'Lipitor' and 'Nexium', granting Ranbaxy 180-day exclusivity when
Net fixed assets Rs m 26,187 42,534 45,619 the patent on these products nears expiry. Europe put up a dismal show as revenues
Share capital Rs m 1,862 1,863 1,865 in the UK, Germany and Romania were considerably hampered. Growth in the
"Free" reserves Rs m 22,409 23,416 26,644 emerging markets was led by CIS and Latin America. While operating margins during
1HCY08 substantially improved due to fall in raw material costs, the bottomline
Net worth Rs m 24,467 25,850 28,022
declined by 60% YoY due to higher forex losses as against forex gains during
Long term debt Rs m 6,652 25,565 29,019
1HCY07.
Total assets Rs m 59,687 84,322 92,782
Interest coverage x 3.5 7.3 8.1 Recently, the promoters of the company sold their stake (35%) to the Japanese
Debt to equity ratio x 0.3 1.0 1.0 company Daiichi Sankyo for a consideration of Rs 737 per share. Against a backdrop
Sales to assets ratio x 0.9 0.7 0.7 of severe pricing pressure in the US generics market, Ranbaxy has adopted the
Return on assets % 10.4 12.2 16.1 strategy of increasing its product flow and widening its geographical reach. As far as
Return on equity % 10.4 20.3 27.6 Para IV filings are concerned, the company has been entering into settlement
Return on capital % 8.1 14.9 19.8 agreements that will provide some semblance of certainty in terms of product
Exports to sales % 42.6 42.2 37.3 launches going forward. Also, its focus on the branded and emerging markets will
Imports to sales % 12.5 9.2 8.0 play a significant role in offsetting the difficult conditions in the developed markets.
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211
 Regd off: Sun Pharma Advanced Research Centre, Akota Road, Vadodara - 20
SUN PHARMACEUTICAL INDUS. LTD. $ E-Mail: secretarial@sunpharma.com
Web site: www.sunpharma.com
Telephone: (022) 6696 9696 Fax: (022) 2821 2010
PHARMACEUTICALS MISCELLANEOUS Tr agent: Intime Spectrum, C13, Pannalal Silk Mills Compd., LBS Marg, Mumbai- 78
Chairman: Dilip S. Shanghvi (MD) SEC: Kamlesh H. Shah AUD: Deloitte Haskins
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1993 524715 SUNP:IN 5 1,500.5 3.2 52.7 20.9 19.6 0.7 310,773.2 52.1 INE044A01028
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 63.7% Exports (fob) Rs m 8,065
Foreign collaborators : 0.0% Imports (cif) Rs m 2,681 (Rs)
Indian inst/Mut Fund : 4.9% Fx inflow Rs m 8,951
1680
FIIs/GDR : 20.2% Fx outflow Rs m 3,735
Free float : 11.2% Net fx Rs m 5,216
Shareholders : 34,913
1360
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
High Rs 921 1,082 1,352 1040
Low Rs 449 640 886
Sales per share Rs 88.1 110.4 162.1
Earnings per share Rs 30.9 40.5 71.8 720
Cash flow per share Rs 34.2 44.8 76.5 DAILY
Dividends per share Rs 5.50 6.35 10.50 100 DMA
Dividend yield (eoy) % 0.8 0.7 0.9
400
Book value per share Rs 85.5 143.3 241.0
Shares outstanding (eoy) m 185.73 193.40 207.12 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions BC BC BC
Price / Sales ratio x 7.8 7.8 6.9 No. of months 12 12 12
Avg P/E ratio x 22.2 21.2 15.6 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 20.1 19.2 14.6
Price / Book Value ratio x 8.0 6.0 4.6 From Operations Rs m 1,872 2,395 5,048
Dividend payout % 17.8 15.7 14.6 From Investments Rs m 758 639 -6,060
Avg Mkt Cap Rs m 127,225 166,517 231,767 From Financial Activity Rs m -146 -4,498 661
No. of employees `000 5 7 8 Net Cashflow Rs m 2,485 -1,464 -352
Total wages/salary Rs m 1,722 2,558 3,042
Avg. sales/employee Rs Th 3,273.8 2,925.9 4,195.8 INTERIM RESULTS
Avg. wages/employee Rs Th 344.4 350.4 380.3 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 1,146.6 1,074.2 1,858.6 Net sales Rs m 6,679 8,040 12,572 10,418
Gross profit Rs m 2,305 3,366 7,210 5,118
INCOME DATA Gross profit margin % 34.5 41.9 57.3 49.1
Net Sales Rs m 16,369 21,359 33,566 Net profit Rs m 2,185 3,184 7,228 5,014
Other income Rs m 1,840 2,373 1,539 Net profit margin % 32.7 39.6 57.5 48.1
Total revenues Rs m 18,209 23,732 35,105
Gross profit Rs m 4,895 6,724 15,512 KEY DATA
Depreciation Rs m 610 813 969 Parameters Unit FY06 FY07 FY08
Interest Rs m 156 127 88 Domestic revenues % of sales 59.9 56.7 46.6
Profit before tax Rs m 5,969 8,157 15,994 API exports % of sales 10.9 10.6 7.7
Minority Interest Rs m 3 -559 -640 Formulation exports % of sales 29.0 32.6 48.7
Prior Period Items Rs m 0 0 0 R&D expenditure % of sales 9.6 11.7 8.3
Extraordinary Inc (Exp) Rs m 0 177 0 Raw material costs % of sales 30.5 27.7 21.9
Tax Rs m 239 -67 485
NOTES
Profit after tax Rs m 5,733 7,842 14,869
Gross profit margin % 29.9 31.5 46.2 Sun Pharma holds 3.4% share of the domestic pharma market (as per the latest ORG
Effective tax rate % 4.0 -0.8 3.0 IMS MAT data) and has a strong presence in the lifestyle therapeutic segments. The
company started focusing on the exports market in FY02, when it increased its stake
Net profit margin % 35.0 36.7 44.3
to 48% in the US-based Caraco Pharma. Currently, the stake in Caraco stands at
BALANCE SHEET DATA 76%. Exports contribute around 57% to revenues. With the help of Caraco, Sun
Pharma has been able to grow its US business, which brings in synergies by way of
Current assets Rs m 26,522 29,889 40,368 backward integration in both manufacturing and R&D.
Current liabilities Rs m 3,515 3,046 6,373
Net working cap to sales % 140.6 125.7 101.3 Sun Pharma's revenues during FY08 grew by an impressive 57% YoY largely driven
Current ratio x 7.5 9.8 6.3 by the domestic and export formulation businesses. Caraco's (76% subsidiary)
Inventory Turnover Days 114 114 84 superlative topline growth of 199% YoY during the year enabled Sun Pharma's export
Debtors Turnover Days 80 116 154 formulations to grow at a healthy pace. This growth was largely due to the exclusivity
Net fixed assets Rs m 8,977 10,122 11,040 window garnered for three products namely 'Trileptal', 'Protonix' and 'Ethyol'.
Share capital Rs m 929 967 1,036 Operating margins surged by 14.7% YoY largely due to the 180-day exclusivity
"Free" reserves Rs m 14,700 26,488 48,620 window that the company received for these three products. While the bottomline
reported a robust 90% YoY growth, a substantial reduction in other income kept it
Net worth Rs m 15,888 27,714 49,915
from moving in tandem with the growth in operating profits.
Long term debt Rs m 10,480 82 6
Total assets Rs m 35,499 43,250 59,701 Sun Pharma's domestic formulations business is likely to witness strong growth going
Interest coverage x 39.3 65.2 182.8 forward, due to the company's focus on the lifestyle segment and technologically
Debt to equity ratio x 0.7 0.0 0.0 complex products. As far as the US markets are concerned, Sun Pharma is in a
Sales to assets ratio x 0.5 0.5 0.6 position to leverage its cost advantage in manufacturing and R&D by launching new
Return on assets % 22.3 28.7 30.0 drugs through Caraco Pharma. However, the pricing pressure in the US is likely to be
Return on equity % 36.1 28.3 29.8 an area of concern going forward. Sun Pharma's acquisition of Taro having run into
Return on capital % 23.2 28.4 30.9 trouble; uncertainty with respect to the same remains. It must be noted that Taro had
Exports to sales % 22.3 22.5 24.0 incurred considerable losses in the past two years and Sun Pharma had infused cash
Imports to sales % 12.7 13.1 8.0 to the tune of US$ 60 m in the beleaguered company.
GET MORE INFO AT WWW.EQUITYMASTER.COM

212
 Regd off: Wockhardt Towers, C/2-G Block, Bandra Kurla Complex, Mumbai-51
WOCKHARDT LIMITED E-Mail: investorrelations@wockhardtin.com
Web site: www.wockhardt.com
Telephone: (022) 2653 4444 Fax: (022) 2653 4242
PHARMACEUTICALS KHORAKIWALA Tr agent: Intime Spectrum, C13, Pannalal Silk Mills Cmpd., LBS Marg, Mumbai - 78
Chairman: H. F. Khorakiwala SEC: Rajiv B. Gandhi (Corp. Affairs) AUD: S. R. Batliboi & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1973 532300 WPL:IN 5 206.7 4.8 -48.4 5.9 4.9 5.4 22,621.2 25.0 INE049B01025
SHAREHOLDING FX Transaction (CY07) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 73.6% Exports (fob) Rs m 3,632
Foreign collaborators : 0.0% Imports (cif) Rs m 1,895 (Rs)
Indian inst/Mut Fund : 10.5% Fx inflow Rs m 3,986 620
FIIs/GDR : 3.9% Fx outflow Rs m 2,393
Free float : 12.0% Net fx Rs m 1,593
Shareholders : 46,580
470
No. of months 12 12 12
Year ending 31/12/05 31/12/06 31/12/07
EQUITY SHARE DATA
320
High Rs 549 562 450
Low Rs 330 318 324
Sales per share Rs 129.3 158.0 242.4
Earnings per share Rs 23.5 22.0 35.3 170
Cash flow per share Rs 27.4 27.7 42.4 DAILY
Dividends per share Rs 5.00 5.00 11.25
100 DMA
Dividend yield (eoy) % 1.1 1.1 2.9
20
Book value per share Rs 74.7 97.4 116.4
Shares outstanding (eoy) m 109.30 109.44 109.44 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions BC,ESOP ESOP -
Price / Sales ratio x 3.4 2.8 1.6 No. of months 12 12 12
Avg P/E ratio x 18.7 20.0 11.0 Year ending 31/12/05 31/12/06 31/12/07
CASH FLOW
P/CF ratio (eoy) x 16.0 15.9 9.1
Price / Book Value ratio x 5.9 4.5 3.3 From Operations Rs m 2,047 1,885 3,772
Dividend payout % 21.3 22.7 31.9 From Investments Rs m -1,456 -8,763 -16,677
Avg Mkt Cap Rs m 48,037 48,154 42,329 From Financial Activity Rs m -871 9,539 6,777
No. of employees `000 4 5 6 Net Cashflow Rs m -281 2,661 -6,128
Total wages/salary Rs m 2,096 2,692 4,679
Avg. sales/employee Rs Th 3,532.5 3,602.3 4,422.0 INTERIM RESULTS
Avg. wages/employee Rs Th 524.0 560.8 779.8 3QCY07 4QCY07 1QCY08 2QCY08
Avg. net profit/employee Rs Th 642.8 502.5 643.0 Net sales Rs m 7,381 7,620 7,857 9,350
Gross profit Rs m 1,809 1,915 1,475 2,434
INCOME DATA Gross profit margin % 24.5 25.1 18.8 26.0
Net Sales Rs m 14,130 17,291 26,532 Net profit Rs m 1,083 1,069 509 1,058
Other income Rs m 461 573 774 Net profit margin % 14.7 14.0 6.5 11.3
Total revenues Rs m 14,591 17,864 27,306
Gross profit Rs m 3,171 4,002 6,424 KEY DATA
Depreciation Rs m 426 621 785 Parameters Unit CY05 CY06 CY07
Interest Rs m 261 409 1,638 India % of sales 37.3 39.1 29.4
Profit before tax Rs m 2,945 3,545 4,775 Europe % of sales 38.4 41.4 53.1
Minority Interest Rs m 0 0 0 US % of sales 10.6 9.6 10.2
Prior Period Items Rs m 0 0 0 R&D expenditure % of sales 7.3 3.5 1.9
Extraordinary Inc (Exp) Rs m 0 -604 0 Raw material costs % of sales 40.8 38.6 37.4
Tax Rs m 374 529 917
NOTES
Profit after tax Rs m 2,571 2,412 3,858
Gross profit margin % 22.4 23.1 24.2 Wockhardt is one of the leading domestic pharmaceutical companies with strong
Effective tax rate % 12.7 14.9 19.2 presence in the lifestyle segment and a growing focus on biotechnology. The
company acquired 'Esparma GmbH' in Germany, 'Pinewood' in Ireland and 'Negma'
Net profit margin % 18.2 13.9 14.5
in France and also has a presence in the UK and the US. The company also acquired
BALANCE SHEET DATA the US based company Morton Grove to enhance its presence in the US generics
market.
Current assets Rs m 13,605 20,024 20,109
Current liabilities Rs m 3,645 5,808 8,875 Wockhardt's revenue growth of 49% YoY during 1HCY08 was driven by contribution
Net working cap to sales % 70.5 82.2 42.3 from acquisitions both in the US and Europe and ramp up in product launches in the
Current ratio x 3.7 3.4 2.3 US market. In the domestic market, growth was driven by the company's focused
Inventory Turnover Days 71 91 106 marketing efforts in strengthening the existing and new specialty areas. The
Debtors Turnover Days 73 97 92 superlative revenue growth in Europe was driven by a healthy performance of its
Net fixed assets Rs m 7,881 17,068 30,713 custom manufacturing business in the UK and the newly acquired business of Negma
Share capital Rs m 547 547 547 (France). Having said that, Pinewood had a difficult 1HCY08 due to a depreciating
"Free" reserves Rs m 7,523 9,320 11,737 UK Pound against the Euro, as nearly half of the revenues are contributed by exports
from Ireland to the UK. While operating margins during 1HCY08 improved marginally
Net worth Rs m 8,161 10,663 12,736
by 0.2%, the bottomline growth was hampered (down 7% YoY) due to the sharp rise
Long term debt Rs m 8,787 19,180 26,855
in interest costs and extraordinary expenses.
Total assets Rs m 21,489 37,142 51,531
Interest coverage x 12.3 9.7 3.9 In the domestic market, biopharmaceuticals and in-licensing will be the key growth
Debt to equity ratio x 1.1 1.8 2.1 drivers for Wockhardt going forward. As far as Europe is concerned, besides creating
Sales to assets ratio x 0.7 0.5 0.5 value from the acquisitions, focus on the hospital segment and contract
Return on assets % 16.7 9.5 13.9 manufacturing will drive growth. In the US, besides stepping up the pace of product
Return on equity % 31.5 22.6 30.3 launches, the company's focus on niche and difficult to replicate products will be the
Return on capital % 18.9 11.2 16.2 key due to relatively lesser competition in these areas. However, pricing pressure in
Exports to sales % 22.7 20.9 13.7 the US and German markets, slower growth in the rest of the world markets and high
Imports to sales % 9.5 8.1 7.1 interest costs would continue to remain a cause for concern going forward.
GET MORE INFO AT WWW.EQUITYMASTER.COM

213
 POWER
With the coming of Electricity Act 2003, the power sector,
which was highly regulated with lot of licensing requirements,
is in the throes of a long awaited change. The licensing
requirements have been reduced, as the generation company
will be free to enter distribution business and vice-a-versa.
The generating capacity in India stands at 143,061 MW (1,253
bn units). Out of this, the total generation was only about 704
bn units, due to lack of fuel sufficiency. As a result, it has
become necessary to resort to power cuts and other
regulatory measures to ration power supply.
Currently central institutions like National Thermal Power
Corporation (NTPC) and the State Electricity Boards (SEBs)
dominate the power scene in India. India has adopted a blend
of thermal, hydel and nuclear sources with a view to increasing
the availability of electricity. Thermal plants at present account
for 64% (91,907 MW) of the total power generation, hydro-
electricity plants contribute 25% (35,909 MW) and the rest
comes from nuclear and wind.
Average transmission and distribution (T&D) losses exceed
25% of total power generation compared to less than 15% for
developing economies. The T&D losses are due to a variety of
reasons, viz., substantial energy sold at low voltage, sparsely
distributed loads over large rural areas, inadequate investment
in distribution system, improper billing, and high pilferage.
FY08
In FY08, the total power generation figure for the country
stood at 704 bn units as compared to 663 bn units in FY07,
thus representing a growth of 6.2% YoY. This was largely on
the back of higher capacity addition and improved plant load
factor. However, owing to sustenance in strong demand for
electricity, the shortages remained high, with the month of
February 2008 recording a shortage of as high as 14.5%.
POWER SHORTAGE: WORSE IN FY08!
(%)
16
13
FY07 FY08
10
7
4 regulatory processes, especially in the distribution segment,
Apr Jun Aug Oct Dec Feb
Source: CMIE
The average PLF in the Central Public Sector Undertakings in
FY08 was much higher than that achieved by the SEBs as a
whole. Wide inter-state variations are noticed in the average
PLF of thermal power plants with southern and northern zones
having better performances.
As far as T&D segments of the sector are concerned, there
was little that actually happened in FY08. The country
continues to reel under the pressure of higher T&D losses
and with the government running very slow with the reforms
in these segments, the long-term sustainable growth of the
sector seems doubtful.
CURRENT SCENARIO AND PROSPECTS
Recognising that electricity is one of the key drivers for rapid
economic growth and poverty alleviation, the industry has set
itself the target of providing access to all households in next
214
four years. As per Census 2001, about 44% of the households
do not have access to electricity. Hence, meeting the target of
providing universal access is a daunting task requiring
significant addition to generation capacity and expansion of
the transmission and distribution network.
Restoration of the financial health of SEBs and improvement in
their operating performance continue to remain a critical issue
in the power sector. The Electricity Act of 2003 contains
provision for securitisation of accumulated SEB dues.
On overall basis, power distribution has been loss-making
business in India. But with the privatization coming in, the
investment in transmission and distribution networking is
expected to improve. Distribution business has already been
privatized in Delhi and a five years target has been set to
bring down its T&D losses from 52% to 31%. Following Delhi's
example, many states like Uttar Pradesh, Gujarat and
Maharashtra are looking at corporatising their distribution
circles.
Trading in electricity has brought a sea change in the structure
of the industry because some parts of country are power
surplus and some are deficient. Power trading company buys
power from surplus area and sells it in deficit area using and
transfers power through transmission lines. While the
potential for power trading is huge, the regulator has to play a
key role in removing all discrepancies that occur in terms of
electricity pricing across trading regions.
POWER TRADING VOLUMES IN INDIA
(bn units)
25.0
20.0
15.0
10.0
5.0
-
FY02 FY03 FY04 FY05 FY06 FY07 FY08
Source: CERC
KEY POINTS
Supply: Many projects have been planned but due to slow
the supply is far lesser than demand.
Demand: The average demand has grown by 6% to 7% per
annum and is expected to grow at faster rate in the future.
Barriers to entry: Barriers to entry are high, especially in
the transmission and distribution segments, which are
largely state monopolies. Also, entering the power generation
business requires heavy investment initially. The other
barriers are fuel linkages, payment guarantees from state
governments that buy power and retail distribution license.
Bargaining power of suppliers: Not very high as
government controls tariff structure. However, this may
change in the future.
Bargaining power of customers: Bargaining power of
retail customers is low, as power is in short supply. However
government is a big buyer and payment by government can
be erratic, as has been seen in the past.
Competition: Not high currently. The Electricity Act 2003
aims to encourage investments, thereby increasing
competition.
 POWER
GLOBAL COMPARISON
FY08/CY07 Unit NTPC Huaneng Power Korea Electric AES Progress Energy
Revenues US$ m 9,645 6,823 31,136 13,588 9,153
EBIDTA margin % 30.1 30.7 29.7 30.4 26.8
Net profit margins % 19.3 12.4 4.9 (0.7) 5.5
Return on capital employed % 14.6 10.5 5.1 12.0 8.3
Return on equity % 14.1 13.1 3.2 (3.0) 6.0
Generation capacity MW 27,350 33,723 58,140 43,000 21,776
Revenue per MW US$ m 0.4 0.2 0.5 0.3 0.4
Employees Nos. 24,547 22,899 37,490 28,000 10,500
Employee per MW Nos. 0.9 0.7 0.6 0.7 0.5
Price/Earnings (TTM) x 21.7 20.3 13.3 7.2 13.4

HUANENG POWER (CHINA)

Huaneng Power International Inc. develops, constructs, operates and manages large thermal power plants in
China. The company is one of the largest independent power producers in China with a current total generation
capacity of 33,723 MW. The company was incorporated in June 1994. During the last few years, the company has
continuously expanded the scale of its operations and increased its profitability through project development and
asset acquisitions. The total generation capacity has increased from 2,900 MW to 33,723 MW currently. At present,
the company wholly owns 16 power plants, has controlling interest in 13 power plants, minority interest in 5 power
plants, all of which are highly advanced, efficient and reliable.

KOREA ELECTRIC POWER (SOUTH KOREA)

Korea Electric Power Corporation engages in the generation, transmission and distribution of electricity and
development of electric power resources in the Republic of Korea. As of December 31, 2007, it had in operation 669
substations with an installed transformer capacity of 228,249 MVA, transmission system of approximately 29,526
circuit kilometers of lines of 765 KV and distribution system that comprised 92,964 MVA of transformer capacity and
7.9 m units of support with a total line length of 401,485 circuit kilometers. Korea Electric Power provides electricity
primarily to industrial, commercial, residential customers, as well as to educational, agricultural and street lighting
customers. The company was founded in 1961 and is headquartered in Seoul, South Korea.

AES (US)

The AES Corporation, through its subsidiaries, engages in the ownership and operation of electric power generation
and distribution businesses worldwide. It operates in four segments: Contract Generation, Competitive Supply,
Large Utilities, and Growth Distribution. The Contract Generation segment supplies wholesale electricity under
long-term contracts. The Competitive Supply segment supplies wholesale electricity pursuant to short-term contracts
or to spot electricity markets. Competitive Supply segment owns power plants, which sell electricity to wholesale
customers. The Large Utility segment owns utilities that maintain a franchise within a defined service area. Growth
Distribution segment operates electricity distribution facilities, which offers generation, transmission, distribution,
and related services. As of July 2008, it owned and operated 123 generation facilities, with generation capacity
totaling approximately 43,000 megawatts, in 29 countries on 5 continents. The company was formed in 1981 and is
based in Arlington, US.

PROGRESS ENERGY (US)

Progress Energy, together with its subsidiaries, operates as an integrated energy company serving the southeast
region of the United States. It engages in the generation, transmission, distribution and sale of electricity in North
Carolina, South Carolina and west central Florida. The company also provides coal terminal services, which include
procuring and processing coal, and transloading and marketing synthetic fuels. As of December 31, 2007, it had
21,776 megawatts of regulated electric generation capacity and served approximately 3.1 million retail electric
customers. Progress Energy, formerly known as CP&L Energy, was founded in 1925 and is headquartered in
Raleigh, North Carolina.

Source: Yahoo Finance, Company reports TTM - Trailing twelve months

215
 Regd off: CESC House, Chowringhee Square, Kolkata - 700 001
CESC LIMITED E-Mail: secretarial@cesc.co.in
Web site: www.cesc.co.in
Telephone: (033) 2225 6040 Fax: (033) 2225 5155
POWER GOENKA R.P. Tr agent: Intime Spectrum Registry, 59C, 3rd floor, Chowringhee Rd, Kolkata - 20
Chairman: Rama Prasad Goenka SEC: Subhasis Mitra (VP) AUD: Lovelock & Lewes
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1978 500084 CESC:IN 10 327.7 -7.7 -28.8 11.5 7.8 1.2 40,943.1 11.0 INE486A01013
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 52.5% Exports (fob) Rs m 0
(Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 1,148
Indian inst/Mut Fund : 13.7% Fx inflow Rs m 12 750
FIIs/GDR : 23.7% Fx outflow Rs m 1,352
Free float : 10.2% Net fx Rs m -1,340
Shareholders : 34,122
600
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
450
High Rs 343 377 715
Low Rs 175 201 320
Sales per share Rs 305.4 294.6 222.1
Earnings per share Rs 21.6 35.7 28.4 300
Cash flow per share Rs 52.4 54.4 41.9 DAILY
Dividends per share Rs 2.50 3.50 4.00 100 DMA
Dividend yield (eoy) % 1.0 1.2 0.8
150
Book value per share Rs 447.4 451.4 366.4
Shares outstanding (eoy) m 82.32 84.32 124.94 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions GDR WC A,PA
Price / Sales ratio x 0.8 1.0 2.3 No. of months 12 12 12
Avg P/E ratio x 12.0 8.1 18.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 4.9 5.3 12.3
Price / Book Value ratio x 0.6 0.6 1.4 From Operations Rs m 7,228 10,266 9,625
Dividend payout % 11.6 9.8 14.1 From Investments Rs m -1,930 -5,549 -10,738
Avg Mkt Cap Rs m 21,321 24,368 64,656 From Financial Activity Rs m -2,991 -1,363 3,663
No. of employees `000 9 11 11 Net Cashflow Rs m 2,308 3,355 2,550
Total wages/salary Rs m 2,625 3,078 3,378
Avg. sales/employee Rs Th 2,737.5 2,348.3 2,636.1 INTERIM RESULTS
Avg. wages/employee Rs Th 285.8 291.0 320.9 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 193.3 284.2 337.5 Net sales Rs m 7,300 6,760 6,380 7,830
Gross profit Rs m 1,410 1,550 1,260 1,220
INCOME DATA Gross profit margin % 19.3 22.9 19.7 15.6
Net Sales Rs m 25,141 24,843 27,750 Net profit Rs m 810 930 860 940
Other income Rs m 732 884 1,554 Net profit margin % 11.1 13.8 13.5 12.0
Total revenues Rs m 25,873 25,727 29,304
Gross profit Rs m 5,975 5,781 5,523 KEY DATA
Depreciation Rs m 2,539 1,579 1,685 Parameters Unit FY06 FY07 FY08
Interest Rs m 2,124 1,679 1,363 Capacity MW 975 975 975
Profit before tax Rs m 2,044 3,407 4,029 Generation m units 7,630 7,702 7,980
Minority Interest Rs m 0 0 0 Plant load factor % 89.3 90.0 NA
Prior Period Items Rs m 0 0 0 Fuel cost Rs/unit 1.1 1.1 1.1
Extraordinary Inc (Exp) Rs m -69 0 0
Tax Rs m 200 400 476
NOTES
Profit after tax Rs m 1,775 3,007 3,553
Gross profit margin % 23.8 23.3 19.9 CESC, earlier known as The Calcutta Electric Supply Corporation Limited, is a part
Effective tax rate % 9.8 11.7 11.8 of the RPG Group. The company is engaged in the generation and distribution
electricity in and around the twin cities of Kolkata and Howrah. Starting with a
Net profit margin % 7.1 12.1 12.8
licensed area of only 14.4 sq km and serving a few hundred consumers, the company
BALANCE SHEET DATA today operates over a licensed area of 567 sq km, serving more than 2 m consumers.
The total requirement of power in CESC's licensed area is in the region of 1,300 MW.
Current assets Rs m 13,045 15,424 19,616 Its four generating stations contribute around 900 MW to the system. And the balance
Current liabilities Rs m 7,490 9,829 12,137 power is purchased mainly from West Bengal State Electricity Board.
Net working cap to sales % 22.1 22.5 27.0
Current ratio x 1.7 1.6 1.6 During FY08, CESC grew its total income by about 14% YoY and there was around
Inventory Turnover Days 25 25 23 18% YoY increase in profits. This performance was achieved mainly due to an
Debtors Turnover Days 76 61 41 improvement in operational efficiency across the company. The generating stations
Net fixed assets Rs m 55,658 55,558 58,292 sent out higher volume of power, distribution loss dropped further, sales volume to all
Share capital Rs m 830 850 1,256 consumer segments recorded a growth and interest payout was lower.
"Free" reserves Rs m 12,577 15,511 24,155
CESC has drawn up ambitious growth plans for the future, which includes setting up
Net worth Rs m 36,832 38,059 45,779 a 250 MW third unit at Budge Budge generating station, coal washery along with 40
Long term debt Rs m 14,459 11,471 13,616 MW generation from washery rejects at its captive coal mine at Sarishatali, and a
Total assets Rs m 69,016 73,395 83,605 2,000 MW power plant at Haldia. Further, the company is planning to create a
Interest coverage x 2.0 3.0 4.0 national footprint in the power sector, by way of setting up generating stations in other
Debt to equity ratio x 0.4 0.3 0.3 states like Jharkhand, Orissa, Rajasthan, Madhya Pradesh and Gujarat. Rising fuel
Sales to assets ratio x 0.4 0.3 0.3 prices and regulated tariffs, which have been falling for the last three fiscals, are key
Return on assets % 7.6 9.5 8.3 concerns with respect to the company's growth in the future.
Return on equity % 4.8 7.9 7.8
Return on capital % 8.0 10.3 9.1
Exports to sales % 0.0 0.0 0.0
Imports to sales % 3.8 3.1 4.1
GET MORE INFO AT WWW.EQUITYMASTER.COM

216
 Regd off: "Paigah House" 156-159, Sardar Patel Rd, Secunderabad - 500 003
GVK POWER & INFRASTRUCTURE LTD. E-Mail: cs.gvkpil@gvk.com
Web site: www.gvk.com
Telephone: (040) 2790 2663 Fax: (040) 2790 2665
POWER MISCELLANEOUS Tr agent: Karvy Computer, Plot 17-24, Vithalrao Nagar, Madhapur, Hyderabad-81
Chairman: G. V. Krishna Reddy SEC: P. V. Rama Seshu AUD: S R Batliboi & Associates
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1995 532708 GVKP:IN 1 39.3 -2.0 -30.0 40.8 25.9 0.0 55,179.6 649.6 INE251H01024
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 60.9% Exports (fob) Rs m 0
(Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 0
Indian inst/Mut Fund : 5.0% Fx inflow Rs m 0 97
FIIs/GDR : 24.8% Fx outflow Rs m 6
Free float : 9.3% Net fx Rs m -6
Shareholders : 101,043
74
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
51
High Rs 400 352 94
Low Rs 240 131 32
Sales per share Rs 64.7 168.6 3.3
Earnings per share Rs 4.7 24.5 1.0 28
Cash flow per share Rs 16.0 58.6 1.5 DAILY
Dividends per share Rs 0.00 2.50 0.00 100 DMA
Dividend yield (eoy) % 0.0 1.0 0.0
5
Book value per share Rs 225.8 251.9 15.6
Shares outstanding (eoy) m 23.64 23.64 1,405.85 Feb-06 Oct-06 Jun-07 Jan-08 Sep-08
Bonus/Rights/Conversions R,PI,B - FV1,A
Price / Sales ratio x 4.9 1.4 18.8 No. of months 12 12 12
Avg P/E ratio x 68.8 9.9 65.4 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 20.0 4.1 41.6
Price / Book Value ratio x 1.4 1.0 4.1 From Operations Rs m -140 1,439 435
Dividend payout % 0.0 10.2 0.0 From Investments Rs m -2,549 -4,641 -4,580
Avg Mkt Cap Rs m 7,565 5,709 88,569 From Financial Activity Rs m 3,312 3,144 7,937
No. of employees `000 NA NA NA Net Cashflow Rs m 578 -58 3,792
Total wages/salary Rs m 41 134 146
Avg. sales/employee Rs Th NA NA NA INTERIM RESULTS
Avg. wages/employee Rs Th NA NA NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA NA NA Net sales Rs m 898 1,033 1,873 1,330
Gross profit Rs m 572 605 786 624
INCOME DATA Gross profit margin % 63.7 58.6 42.0 46.9
Net Sales Rs m 1,529 3,986 4,700 Net profit Rs m 395 404 429 406
Other income Rs m 18 247 622 Net profit margin % 44.0 39.1 22.9 30.5
Total revenues Rs m 1,547 4,233 5,322
Gross profit Rs m 652 2,343 2,262 KEY DATA
Depreciation Rs m 269 806 776 Parameters Unit FY06 FY07 FY08
Interest Rs m 142 627 414 Fuel Costs (% of electricity sales)% 47.6 44.9 54.2
Profit before tax Rs m 259 1,157 1,694 Employee Costs (% of sales) % 2.7 3.4 3.1
Minority Interest Rs m -140 -328 -101 Revenue from power segment % 100.0 68.7 68.2
Prior Period Items Rs m 1 -16 4 Revenue from roads segment % 0 29.0 29.1
Extraordinary Inc (Exp) Rs m 0 0 0 Revenue from other segments % 0 2.3 2.7
Tax Rs m 10 234 243
NOTES
Profit after tax Rs m 110 579 1,354
Gross profit margin % 42.6 58.8 48.1 GVK is a diversified business group with interests in a range of businesses including
Effective tax rate % 3.9 20.2 14.3 power, roads, urban infrastructure, bioscience, hotels and manufacturing. Out of
these business areas, the group has been increasingly focusing on power and
Net profit margin % 7.2 14.5 28.8
infrastructure sectors and has identified these as its core business areas for future
BALANCE SHEET DATA growth. GVK Power & Infrastructure Limited (GVKPIL) is the holding company of its
infrastructure business having interest in various types of power generation (viz., gas,
Current assets Rs m 3,821 3,392 4,879 hydro and thermal), roads & expressways, airports, aviation, SEZs, mining etc. and
Current liabilities Rs m 625 696 297 operates in these sectors through its subsidiary / associate companies. The
Net working cap to sales % 209.0 67.6 97.5 company's revenue comprises of O&M fee, incentives and dividends from its
Current ratio x 6.1 4.9 16.4 subsidiary / associate companies and interest income from surplus funds.
Inventory Turnover Days 55 26 18
Debtors Turnover Days 184 55 51 GVKPIL's topline grew by 18% YoY during FY08. The increase in revenues was
Net fixed assets Rs m 12,601 21,227 25,776 mainly attributable to increase in revenue of operating subsidiaries in power and road
Share capital Rs m 236 236 1,406 sectors. Further, the bottomline of the company saw an impressive rise of 134% YoY
"Free" reserves Rs m 3,913 3,681 16,534 led by the improved performance of the subsidiaries and associate companies.
Net worth Rs m 5,339 5,956 21,866 The Economic Survey by the Ministry of Finance has estimated the investment in
Long term debt Rs m 5,513 7,817 12,047 physical infrastructure to be US$ 500 bn during the 11th five-year plan with the share
Total assets Rs m 17,744 27,593 37,723 of the private sector pegged at 30.1%, translating into US$ 150 bn. The estimated
Interest coverage x 2.8 2.8 5.1 investment of airport development over the next five years is US$ 9 Billion while
Debt to equity ratio x 1.0 1.3 0.6 expected annual growth in passenger traffic is of 15%. The private sector is playing
Sales to assets ratio x 0.1 0.1 0.1 a major role in road development projects and is poised to contribute 50% of the total
Return on assets % 2.3 8.8 5.2 investment in National Highways during the 11th plan. Management also expects the
Return on equity % 2.1 9.7 6.2 strong encouragement of development of SEZs by the government to continue. The
Return on capital % 2.4 10.5 5.9 company has been facing acute shortage of fuels like gas for its power plants, which
Exports to sales % 0.0 0.0 0.0 would continue to remain a concern.
Imports to sales % 0.0 0.0 0.0
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217
 Regd off: JUIT Complex, Waknaghat, P.O. Dumehar Bani, Kandaghat-173215,(H.P.)
JAIPRAKASH HYDRO POWER LTD. E-Mail: ab.chugh@jalindia.co.in
Web site: www.jhpl.com
Telephone: (0120) 4609 000 Fax: (0120) 4609 464
POWER Jaiprakash Group Tr agent: Karvy Computer, 46, Avenue 4, St. No. 1, Banjara Hills, Hyderabad - 34
Chairman: Manoj Gaur SEC: A. B. Chugh AUD: R. Nagpal & Associates
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1994 532627 JHPL:IN 10 52.1 -13.1 2.7 12.0 9.9 2.9 25,581.1 701.5 INE351F01018
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 63.3% Exports (fob) Rs m 0
(Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 2
Indian inst/Mut Fund : 2.2% Fx inflow Rs m 0 150
FIIs/GDR : 0.4% Fx outflow Rs m 78
Free float : 34.1% Net fx Rs m -78
Shareholders : 362,098
115 DAILY
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08 100 DMA
EQUITY SHARE DATA
High Rs 38 40 144
80
Low Rs 27 22 27
Sales per share Rs 5.5 6.7 6.1
Earnings per share Rs 3.0 4.1 4.3 45
Cash flow per share Rs 3.9 5.0 5.3
Dividends per share Rs 0.00 0.00 1.50
Dividend yield (eoy) % 0.0 0.0 1.8
10
Book value per share Rs 13.8 18.4 20.9
Shares outstanding (eoy) m 491.00 491.00 491.00 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 5.9 4.6 14.0 No. of months 12 12 12
Avg P/E ratio x 10.9 7.6 19.7 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 8.4 6.2 16.2
Price / Book Value ratio x 2.4 1.7 4.1 From Operations Rs m 1,305 882 2,008
Dividend payout % 0.0 0.0 34.5 From Investments Rs m -462 -400 370
Avg Mkt Cap Rs m 15,958 15,221 41,981 From Financial Activity Rs m -861 -387 -2,011
No. of employees `000 NA NA NA Net Cashflow Rs m -18 95 367
Total wages/salary Rs m 50 59 75
Avg. sales/employee Rs Th NA NA NA INTERIM RESULTS
Avg. wages/employee Rs Th NA NA NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA NA NA Net sales Rs m 1,184 432 452 951
Gross profit Rs m 1,131 368 374 893
INCOME DATA Gross profit margin % 95.5 85.2 82.7 93.9
Net Sales Rs m 2,718 3,291 3,008 Net profit Rs m 733 70 221 546
Other income Rs m 24 274 417 Net profit margin % 61.9 16.2 48.9 57.4
Total revenues Rs m 2,742 3,565 3,425
Gross profit Rs m 2,258 3,010 2,737 KEY DATA
Depreciation Rs m 440 456 459 Parameters Unit FY06 FY07 FY08
Interest Rs m 977 1,072 973 Plant Availability % 95.6 98.8 99.9
Profit before tax Rs m 865 1,756 1,722 Installed Capacity MW 300 300 300
Minority Interest Rs m 0 0 0 Net Saleable Energy MU 1,029 1,122 1,121
Prior Period Items Rs m 0 492 684 Operation & Maint. (% of sales) % 2.6 2.5 2.5
Extraordinary Inc (Exp) Rs m 734 0 0 Employee Costs (% of sales) % 1.8 1.7 2.3
Tax Rs m 141 253 272
NOTES
Profit after tax Rs m 1,458 1,995 2,134
Gross profit margin % 83.1 91.5 91.0 Incorporated in 1994, Jaiprakash Hydro-Power Limited (JHPL) is a part of the
Effective tax rate % 16.3 14.4 15.8 diversified Jaypee Group. It was formed with the objective of implementing and
operating the 300 MW Baspa-II HEP (commissioned in 2003) in Himachal Pradesh.
Net profit margin % 53.6 60.6 70.9
When the Government of India announced major policy reforms in 1991 allowing
BALANCE SHEET DATA private sector participation in power generation to reduce the gap in generation and
demand of power, Baspa Stage-II project was one of the projects identified for private
Current assets Rs m 2,724 4,737 4,929 sector for the development and utilisation of the untapped hydro potential.
Current liabilities Rs m 827 896 1,231
Net working cap to sales % 69.8 116.7 122.9 JHPL's revenues saw a decline of 8.6% YoY during FY08 while its operating margins
Current ratio x 3.3 5.3 4.0 also fell by 50 basis points from 91.5% in FY07 to 91%. Despite this, a higher other
Inventory Turnover Days 9 7 6 income coupled with a lower interest expense led to a 7% YoY growth in net profits.
Debtors Turnover Days 238 284 260
Net fixed assets Rs m 15,696 15,886 15,957 As the company has been operating the hydro power station now for more than 5
years, it is in an advantageous position in terms of implementation of Hydro Projects
Share capital Rs m 4,910 4,910 4,910
vis--vis the new entrants, to reap the benefit of growing opportunities in this sector.
"Free" reserves Rs m 1,647 3,642 4,915
Also, the company is diversifying its business into transmission sector and has
Net worth Rs m 6,787 9,029 10,286 formed a joint venture company namely, Jaypee Powergrid Limited, with Power Grid
Long term debt Rs m 9,817 8,296 8,296 Corporation of India Limited (PGCIL) for developing a transmission system to
Total assets Rs m 18,420 20,623 20,886 evacuate power to be generated by 1000 MW Karcham Hydro-Electric Project. With
Interest coverage x 1.9 2.6 2.8 the company's plant expected to have fairly stable generation and sale of energy
Debt to equity ratio x 1.4 0.9 0.8 going forward, coupled with the joint venture of the company with PGCIL, the future
Sales to assets ratio x 0.1 0.2 0.1 outlook of the company seems quite stable.
Return on assets % 14.7 17.7 16.7
Return on equity % 21.5 22.1 20.7
Return on capital % 15.5 19.2 18.2
Exports to sales % 0.0 0.0 0.0
Imports to sales % 2.6 4.1 0.1
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218
 Regd off: Neyveli House, No. 135, Periyar EVR High Road, Chennai - 600 010
NEYVELI LIGNITE CORPORATION LIMITED E-Mail: investors@nlcindia.com
Web site: www.nlcindia.com
Telephone: (04142) 252 205 Fax: (04142) 825 5499
POWER GOVERNMENT Tr agent: Integrated Enterprises, II Flr, Kences Towers, T.Nagar, Chennai - 17
Chairman: J. N. Prasanna Kumar SEC: K. Viswanath AUD: P. B. Vijayaraghavan & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1956 513683 NLC:IN 10 113.3 -8.8 35.5 17.2 12.2 1.8 190,000.7 252.6 INE589A01014
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 93.6% Exports (fob) Rs m 0
(Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 1,309
Indian inst/Mut Fund : 3.9% Fx inflow Rs m 0 300
FIIs/GDR : 0.4% Fx outflow Rs m 2,192
Free float : 2.2% Net fx Rs m -2,192
Shareholders : 133,027
230
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
160
High Rs 90 100 274
Low Rs 65 47 49
Sales per share Rs 13.0 12.6 17.8
Earnings per share Rs 4.2 3.4 6.6 90
Cash flow per share Rs 6.3 6.0 9.3 DAILY
Dividends per share Rs 2.00 1.20 2.00 100 DMA
Dividend yield (eoy) % 2.6 1.6 1.2
20
Book value per share Rs 47.6 49.5 53.7
Shares outstanding (eoy) m 1,677.71 1,677.71 1,677.71 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 6.0 5.8 9.1 No. of months 12 12 12
Avg P/E ratio x 18.5 21.8 24.6 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 12.4 12.2 17.4
Price / Book Value ratio x 1.6 1.5 3.0 From Operations Rs m 10,559 10,930 11,080
Dividend payout % 47.8 35.5 30.5 From Investments Rs m 1,747 4,689 -13,777
Avg Mkt Cap Rs m 130,023 123,312 270,950 From Financial Activity Rs m -6,502 1,240 7,596
No. of employees `000 19 19 19 Net Cashflow Rs m 5,804 16,858 4,898
Total wages/salary Rs m 5,117 5,505 8,500
Avg. sales/employee Rs Th 1,148.7 1,102.9 1,574.3 INTERIM RESULTS
Avg. wages/employee Rs Th 269.0 288.0 448.8 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 369.2 296.5 581.6 Net sales Rs m 7,278 6,746 8,017 10,871
Gross profit Rs m 2,588 2,552 3,841 6,224
INCOME DATA Gross profit margin % 35.6 37.8 47.9 57.3
Net Sales Rs m 21,852 21,081 29,817 Net profit Rs m 2,310 2,045 4,401 5,579
Other income Rs m 5,010 5,971 6,564 Net profit margin % 31.7 30.3 54.9 51.3
Total revenues Rs m 26,862 27,052 36,381
Gross profit Rs m 7,489 7,966 13,099 KEY DATA
Depreciation Rs m 3,495 4,473 4,545 Parameters Unit FY06 FY07 FY08
Interest Rs m 548 696 877 Capacity MW 2,490 2,490 2,490
Profit before tax Rs m 8,456 8,768 14,241 Generation m units 16,242 15,787 17,457
Minority Interest Rs m 0 0 0 Plant load factor % 74.5 72.4 80.0
Prior Period Items Rs m 163 49 -27 Energy % of sales 92.6 91.2 91.2
Extraordinary Inc (Exp) Rs m 1,255 -70 -2 Lignite % of sales 7.3 8.8 8.8
Tax Rs m 2,850 3,079 3,197
NOTES
Profit after tax Rs m 7,024 5,668 11,015
Gross profit margin % 34.3 37.8 43.9 Neyveli Lignite Corporation Limited (NLC) is a government-owned lignite mining
Effective tax rate % 33.7 35.1 22.4 company in India. One of the public sector undertakings, the company is wholly
owned by the government and administered through the Ministry of Coal. NLC
Net profit margin % 32.1 26.9 36.9
operates the largest open-pit lignite mines in India and mines around 24 m tonnes of
BALANCE SHEET DATA lignite per year for fuel, with an installed capacity of 2,490 MW of electricity per year.
Of this, the origin state of Tamil Nadu consumes 1,167 MW, with the neighbouring
Current assets Rs m 36,164 53,981 58,838 states (Kerala, Karnataka, and Andra Pradesh) consuming most of the rest.
Current liabilities Rs m 7,402 16,533 14,660
Net working cap to sales % 131.6 177.6 148.2 NLC grew its net sales by 41% YoY during FY08. However, before adjusting for the
Current ratio x 4.9 3.3 4.0 reversal of the prior period sales, net sales growth stood at 16% YoY, driven by the
Inventory Turnover Days 60 79 55 revenue growth contribution from both the segments i.e., power and lignite. The
Debtors Turnover Days 28 15 27 company's net profits grew by 13% YoY as the reduced interest cost more than offset
Net fixed assets Rs m 45,857 58,261 75,294 the increase in the wage provisioning expenditure.
Share capital Rs m 16,777 16,777 16,777
As for the future, large lignite reserves (89% of Indias lignite reserves), merchandise
"Free" reserves Rs m 60,585 64,702 71,751
sales (10% to small-scale industries), sales to electricity boards and foray into coal-
Net worth Rs m 79,904 83,093 90,088 based power generation would ensure smooth revenue flows for NLC. The company
Long term debt Rs m 6,041 14,143 27,454 plans to expand its power capacity by almost five times to 11,990 MW and its lignite
Total assets Rs m 107,936 121,536 142,394 mining capacity by 250% to 62 m tonnes by the end of the XII Plan (FY17). With cash
Interest coverage x 16.4 13.6 17.2 of over Rs 48 bn and power bonds of Rs 8 bn, the company is in a strong position to
Debt to equity ratio x 0.1 0.2 0.3 support its expansion plans.
Sales to assets ratio x 0.2 0.2 0.2
Return on assets % 8.8 6.5 10.1
Return on equity % 8.8 6.8 12.2
Return on capital % 12.1 9.7 12.8
Exports to sales % 0.0 0.0 0.0
Imports to sales % 5.1 11.8 4.4
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219
 Regd off: NTPC Bhawan, Scope Complex, 7, Institutional Area, Lodi Rd, N. Delhi- 3
NTPC LIMITED + $ E-Mail: akrastogi@ntpc.co.in
Web site: www.ntpc.co.in
Telephone: (011) 2436 0071 Fax: (011) 2436 0241
POWER Government Tr agent: Karvy Computer, Plot 17-24, Vithalrao Nagar, Madhapur, Hyderabad-81
Chairman: R. S. Sharma SEC: A. K. Rastogi AUD: Varma & Varma
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1975 532555 NATP:IN 10 173.5 -4.8 -6.4 19.1 14.8 2.0 1,430,175.0 3,465.7 INE733E01010
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 89.5% Exports (fob) Rs m 0
(Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 12,295
Indian inst/Mut Fund : 2.6% Fx inflow Rs m 35 300
FIIs/GDR : 4.1% Fx outflow Rs m 16,323
Free float : 3.8% Net fx Rs m -16,288
Shareholders : 1006530
245
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
190
High Rs 142 158 291
Low Rs 80 91 146
Sales per share Rs 33.4 41.1 46.9
Earnings per share Rs 7.1 8.4 9.1 135
Cash flow per share Rs 9.6 10.9 11.7 DAILY
Dividends per share Rs 2.80 3.20 3.50 100 DMA
Dividend yield (eoy) % 2.5 2.6 1.6
80
Book value per share Rs 54.6 59.1 64.1
Shares outstanding (eoy) m 8,245.46 8,245.46 8,245.46 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 3.3 3.0 4.7 No. of months 12 12 12
Avg P/E ratio x 15.7 14.9 24.1 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 11.6 11.4 18.6
Price / Book Value ratio x 2.0 2.1 3.4 From Operations Rs m 60,646 83,063 104,083
Dividend payout % 39.5 38.2 38.6 From Investments Rs m -47,938 -34,168 -70,380
Avg Mkt Cap Rs m 915,246 1,026,560 1,801,633 From Financial Activity Rs m 11,384 2,011 -17,079
No. of employees `000 24 24 25 Net Cashflow Rs m 24,092 50,906 16,624
Total wages/salary Rs m 9,964 12,007 19,533
Avg. sales/employee Rs Th 11,468.7 13,897.7 15,755.9 INTERIM RESULTS
Avg. wages/employee Rs Th 414.4 492.6 795.7 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 2,429.2 2,830.1 3,043.1 Net sales Rs m 80,169 93,308 107,436 95,395
Gross profit Rs m 27,490 29,691 28,222 24,218
INCOME DATA Gross profit margin % 34.3 31.8 26.3 25.4
Net Sales Rs m 275,754 338,757 386,759 Net profit Rs m 19,255 17,799 13,395 17,266
Other income Rs m 28,736 28,988 30,866 Net profit margin % 24.0 19.1 12.5 18.1
Total revenues Rs m 304,490 367,745 417,625
Gross profit Rs m 73,112 99,012 116,259 KEY DATA
Depreciation Rs m 20,710 20,998 22,060 Parameters Unit FY06 FY07 FY08
Interest Rs m 12,243 17,497 18,807 Capacity MW 24,640 26,350 29,644
Profit before tax Rs m 68,895 89,505 106,258 Generation m units 170,880 188,674 200,863
Minority Interest Rs m 0 0 0 Realisation Rs/unit 1.6 1.8 1.9
Prior Period Items Rs m -2,488 -3,441 -6,383 Fuel cost Rs/unit 1.0 1.1 1.1
Extraordinary Inc (Exp) Rs m 0 0 0 Capex Rs m 29,334 47,296 45,528
Tax Rs m 7,999 17,081 25,176
NOTES
Profit after tax Rs m 58,408 68,983 74,699
Gross profit margin % 26.5 29.2 30.1 NTPC is the largest power generating company in India with a nationwide presence
Effective tax rate % 11.6 19.1 23.7 and an installed capacity of 29,644 MW, which is over 20% of India's total installed
capacity. Of the 20 plants under NTPC's fold, while 13 are coal-based and 7 are gas-
Net profit margin % 21.2 20.4 19.3
based power stations (17%). In FY08, the company generated 200 bn units of power
BALANCE SHEET DATA and accounted for around 28% of the total power generated in the country. The PLF
(plant load factor or capacity utilisation) of NTPC's coal-based plants (at over 92% in
Current assets Rs m 160,305 228,224 263,157 FY08) is among the best in the country. The overall PLF of the company has been
Current liabilities Rs m 63,574 76,934 86,225 lower at nearly 80%, due to low PLF of its gas-based plants (68% in FY08).
Net working cap to sales % 35.1 44.7 45.7
Current ratio x 2.5 3.0 3.1 The 13.7% YoY growth in NTPC's FY08 topline was largely driven by growth in
Inventory Turnover Days 31 28 26 volume sales as also improved realisations. While volume sales of electricity grew by
Debtors Turnover Days 13 15 30 6.5% YoY, electricity tariffs improved by 4.3% YoY. Higher volume sales were a
Net fixed assets Rs m 395,842 461,642 537,900 consequence of 6.8% YoY rise in generation led by higher PLF of its coal stations as
Share capital Rs m 82,455 82,455 82,455 also the capacity additions. The company's operating margins contracted by 0.6%
"Free" reserves Rs m 356,928 391,331 430,687 YoY during FY08, owing to higher fuel and other costs. NTPC reported net
exceptional items to the tune of Rs 8.4 bn during the fourth quarter, which impacted
Net worth Rs m 450,006 487,125 528,629
the overall performance for the fiscal. After adjusting profits for the exceptional items,
Long term debt Rs m 199,403 240,616 282,531
net profits grew by 15% YoY during FY08.
Total assets Rs m 742,069 841,300 935,533
Interest coverage x 6.6 6.1 6.6 NTPC has outlined an aggressive generation capacity addition plan for the 11th five-
Debt to equity ratio x 0.4 0.5 0.5 year plan (2007-12), which will take its cumulative capacity to near 46,000 MW by the
Sales to assets ratio x 0.4 0.4 0.4 end of FY12 (target for 2017 stands at 75,000 MW). This, it expects by way of
Return on assets % 10.9 11.9 11.5 greenfield projects, brownfield expansion, joint ventures and acquisitions. The
Return on equity % 13.0 14.2 14.1 company is also diversifying into segments like power equipment manufacturing, coal
Return on capital % 12.1 14.2 14.6 mining, power trading, oil/gas exploration, renewable and nuclear energy, which shall
Exports to sales % 0.0 0.0 0.0 change the business matrix and growth potential. Fuel supply issue, however, will
Imports to sales % 2.5 2.4 3.2 continue to remain a concern.
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220
 Regd off: 2nd Floor, NBCC Tower, 15 Bhikaji Cama Place, New Delhi - 66
PTC INDIA LIMITED E-Mail: info@ptcindia.com
Web site: www.ptcindia.com
Telephone: (011) 4165 9500 Fax: (011) 4165 9144
POWER Government Tr agent: MCS Limited, W-40, Okhla Industrial Area, Phase II, New Delhi - 20
Chairman: Tantra N. Thakur SEC: Rajiv Maheshwari AUD: T. R. Chadda & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1999 532524 PTCIN:IN 10 75.8 -8.1 -12.4 35.9 34.7 1.3 17,227.0 225.1 INE877F01012
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 21.1% Exports (fob) Rs m 0
(Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 0
Indian inst/Mut Fund : 28.3% Fx inflow Rs m 0 202
FIIs/GDR : 30.8% Fx outflow Rs m 15
Free float : 19.9% Net fx Rs m -15
Shareholders : 129,160
159
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
116
High Rs 67 83 202
Low Rs 41 44 54
Sales per share Rs 207.2 251.1 171.8
Earnings per share Rs 2.7 2.3 2.1 73
Cash flow per share Rs 2.8 2.4 2.2 DAILY
Dividends per share Rs 1.00 1.00 1.00 100 DMA
Dividend yield (eoy) % 1.9 1.6 0.8
30
Book value per share Rs 16.3 17.5 65.6
Shares outstanding (eoy) m 150.00 150.00 227.42 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - PP
Price / Sales ratio x 0.3 0.3 0.7 No. of months 12 12 12
Avg P/E ratio x 20.0 27.1 60.6 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 19.3 26.1 58.7
Price / Book Value ratio x 3.3 3.6 2.0 From Operations Rs m 467 121 138
Dividend payout % 36.9 42.6 47.4 From Investments Rs m 166 -21 -11,734
Avg Mkt Cap Rs m 8,100 9,525 29,110 From Financial Activity Rs m -135 -171 12,310
No. of employees `000 NA NA NA Net Cashflow Rs m 497 -71 715
Total wages/salary Rs m 57 57 83
Avg. sales/employee Rs Th NA NA NA INTERIM RESULTS
Avg. wages/employee Rs Th NA NA NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA NA NA Net sales Rs m 14,672 7,338 5,466 12,031
Gross profit Rs m 99 11 22 59
INCOME DATA Gross profit margin % 0.7 0.1 0.4 0.5
Net Sales Rs m 31,085 37,667 39,061 Net profit Rs m 115 62 189 189
Other income Rs m 120 193 462 Net profit margin % 0.8 0.8 3.5 1.6
Total revenues Rs m 31,205 37,860 39,523
Gross profit Rs m 479 299 151 KEY DATA
Depreciation Rs m 14 13 16 Parameters Unit FY06 FY07 FY08
Interest Rs m 13 20 17 Units traded m units 10,119 9,549 9,889
Profit before tax Rs m 572 459 580 Realisation Rs/unit 3.0 3.9 3.9
Minority Interest Rs m 0 0 -2 EBIDTA margins % 1.6 0.8 0.4
Prior Period Items Rs m -2 -1 -1 Capex Rs m 2 5 379
Extraordinary Inc (Exp) Rs m 0 0 0
Tax Rs m 164 106 97
NOTES
Profit after tax Rs m 406 352 480
Gross profit margin % 1.5 0.8 0.4 PTC was incorporated in April 1999 with the objective of carrying out the business of
Effective tax rate % 28.7 23.1 16.7 purchase of electricity from state power utilities, licensees, generating companies,
independent power producers and captive power plants. In the process, the company
Net profit margin % 1.3 0.9 1.2
sells power to the state power utilities, licensees, bulk consumers, whether in private
BALANCE SHEET DATA or public sector in India and abroad. Thus the business of the company is to buy
power from power plants in surplus areas and sell it to entities in power deficient
Current assets Rs m 2,289 2,658 3,717 states.
Current liabilities Rs m 1,923 2,273 2,682
Net working cap to sales % 1.2 1.0 2.6 PTC traded 9,889 m units (MUs) of electricity during FY08, a 4% YoY increase over
Current ratio x 1.2 1.2 1.4 the 9,549 MUs that it had traded in FY07. This helped the company record an
Inventory Turnover Days 0 0 0 equivalent growth in sales in value terms. However, its operating profitability
Debtors Turnover Days 12 16 17 remained under pressure because of regulatory ceiling on trading margins.
Net fixed assets Rs m 183 175 546
PTC has the first mover advantage in power trading in India. The company currently
Share capital Rs m 1,500 1,500 2,274
has over 25 customers who are either trading power or have traded power through
"Free" reserves Rs m 982 1,156 12,641
the company. The company has also entered into a number of MoUs (memorandum
Net worth Rs m 2,446 2,621 14,915 of understanding) with Mega Power Producers for off take of power to the tune of
Long term debt Rs m 0 0 0 8,000 MW. The company is targeting captive power plants with surplus power of
Total assets Rs m 4,385 4,904 18,084 around 10,000 MW. The company has also has been appointed as the nodal agency
Interest coverage x 45.0 24.0 35.1 for cross-border trades in power with Nepal and Bhutan. Both these countries have a
Debt to equity ratio x 0.0 0.0 0.0 large hydropower potential. In fact, Bhutan has potential hydropower resources of
Sales to assets ratio x 7.1 7.7 2.2 30,000 MW and Nepal has 43,000 MW. This should present PTC with a huge growth
Return on assets % 17.1 14.2 3.3 opportunity into the future. The biggest challenge to the company's growth will,
Return on equity % 16.6 13.4 3.2 however, be the regulator's pricing of traded power and pace of investments in the
Return on capital % 23.8 18.2 4.0 transmission capacity. As a matter of fact, the 4 paise margin per unit of traded power
Exports to sales % 0.0 0.0 0.0 as fixed by the regulator has severely impacted PTC's margins during the past three
Imports to sales % 0.0 0.0 0.0 years.
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221
 Regd off: Reliance Energy Centre, Santacruz (East), Mumbai - 400 055
RELIANCE INFRASTRUCTURE LTD. + $ E-Mail: ramesh.shenoy@relianceada.com
Web site: www.rel.co.in
Telephone: (022) 3009 9999 Fax: (022) 3009 9775
POWER ANIL AMBANI Tr agent: Karvy Computershare, Karvy House, 146, Avenue 4, Hyderabad - 34
Chairman: Anil Ambani SEC: Ramesh Shenoy AUD: Price Waterhouse
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1929 500390 RELI:IN 10 1,015.9 -2.6 23.4 20.0 15.9 0.6 235,646.7 1,323.1 INE036A01016
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 36.7% Exports (fob) Rs m 0
(Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 4,488
Indian inst/Mut Fund : 23.8% Fx inflow Rs m 7 2780
FIIs/GDR : 19.7% Fx outflow Rs m 7,543
Free float : 19.9% Net fx Rs m -7,536
Shareholders :1,597,366
2135
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
1490
High Rs 706 652 2,632
Low Rs 471 362 474
Sales per share Rs 189.0 299.6 354.2
Earnings per share Rs 30.6 36.5 50.0 845
Cash flow per share Rs 47.0 49.8 63.1 DAILY
Dividends per share Rs 5.00 5.30 6.30
100 DMA
Dividend yield (eoy) % 0.8 1.0 0.4
200
Book value per share Rs 370.8 417.1 694.3
Shares outstanding (eoy) m 212.36 228.57 235.62 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions GDR WC WC
Price / Sales ratio x 3.1 1.7 4.4 No. of months 12 12 12
Avg P/E ratio x 19.2 13.9 31.1 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 12.5 10.2 24.6
Price / Book Value ratio x 1.6 1.2 2.2 From Operations Rs m 3,809 11,956 1,751
Dividend payout % 16.3 14.5 12.6 From Investments Rs m -21,036 -69,310 -26,745
Avg Mkt Cap Rs m 124,974 115,885 365,918 From Financial Activity Rs m 13,303 22,545 3,820
No. of employees `000 NA 1 2 Net Cashflow Rs m -3,925 -34,810 -21,175
Total wages/salary Rs m 2,128 2,918 3,727
Avg. sales/employee Rs Th NA 57,074.2 37,094.2 INTERIM RESULTS
Avg. wages/employee Rs Th NA 2,431.7 1,656.4 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA 6,954.2 5,236.9 Net sales Rs m 15,417 15,055 16,420 21,981
Gross profit Rs m 1,813 741 2,024 -242
INCOME DATA Gross profit margin % 11.8 4.9 12.3 -1.1
Net Sales Rs m 40,126 68,489 83,462 Net profit Rs m 2,501 3,016 3,113 2,526
Other income Rs m 5,953 9,257 13,575 Net profit margin % 16.2 20.0 19.0 11.5
Total revenues Rs m 46,079 77,746 97,037
Gross profit Rs m 7,006 5,114 5,698 KEY DATA
Depreciation Rs m 3,486 3,032 3,074 Parameters Unit FY06 FY07 FY08
Interest Rs m 1,658 2,756 4,015 Energy % of sales 79.0 69.7 82.6
Profit before tax Rs m 7,815 8,583 12,184 EPC % of sales 21.0 30.3 17.4
Minority Interest Rs m 0 0 -7 Order book Rs m 33,580 55,000 78,500
Prior Period Items Rs m -806 511 933 Order book to EPC sales x 3.9 2.6 5.3
Extraordinary Inc (Exp) Rs m 0 0 564
Tax Rs m 506 749 1,891
NOTES
Profit after tax Rs m 6,503 8,345 11,783
Gross profit margin % 17.5 7.5 6.8 Reliance Infrastructure (RIFL; erstwhile Reliance Energy) is a leading private sector
Effective tax rate % 6.5 8.7 15.5 power company in the country and has presence in generation, transmission and
distribution in the states of Maharashtra, Goa and Andhra Pradesh. The company has
Net profit margin % 16.2 12.2 14.1
an installed generation capacity of 941 MW. It also has a presence in the engineering,
BALANCE SHEET DATA procurement and construction (EPC) business. In a major business restructuring
exercise recently, the company hived off its new new power generation projects into
Current assets Rs m 105,153 102,546 97,515 a special purpose vehicle (SPV) called Reliance Power Limited (RPL), which floated
Current liabilities Rs m 22,140 34,289 38,615 India's largest public issue of shares early this year. Post this restructuring, while
Net working cap to sales % 206.9 99.7 70.6 RIFL will continue to operate its existing 941 MW of generation capacity, its major
Current ratio x 4.7 3.0 2.5 business will that be of a contractor for setting up power projects for RPL as also
Inventory Turnover Days 28 20 18 other companies in India and internationally.
Debtors Turnover Days 99 73 72
Net fixed assets Rs m 28,737 43,878 50,118 RIFL grew its standalone topline by 11% YoY during FY08, which was led by strong
Share capital Rs m 2,124 2,286 2,356 performance from the electricity business, which recorded a sales growth of 34% YoY
"Free" reserves Rs m 63,207 76,279 91,750 during the fiscal. The company sold 9,282 m units of power during FY08,
representing a 6% YoY growth. What is more, these sales were at an average tariff
Net worth Rs m 78,733 95,344 163,587
of Rs 5.4 per unit, almost 26% higher than the realised rate in FY07 (Rs 4.3 per unit).
Long term debt Rs m 28,721 47,358 48,834
However, the EPC division saw its sales decline by 31% YoY. The reason for the
Total assets Rs m 145,818 198,646 264,630 same can be attributed to the lumpy nature of the business. At the end of March 2008,
Interest coverage x 5.7 4.1 4.0 the EPC business had an order backlog of Rs 78 bn (almost 5.5 times the segment's
Debt to equity ratio x 0.4 0.5 0.3 FY08 revenues).
Sales to assets ratio x 0.3 0.3 0.3
Return on assets % 7.6 7.8 7.4 Owing to a large base of the previous fiscal, revenues from the EPC division
Return on equity % 8.3 8.8 7.2 witnessed a decline during FY08. However, we believe it to be the key growth driver
Return on capital % 8.1 8.3 8.3 for RIFL in the future. Considering the large capex plans of several Indian industrial
Exports to sales % 0.0 0.0 0.0 houses, as also power projects being worked upon by RPL, this division is likely to
Imports to sales % 5.5 11.7 5.4 be a big contributor to RIFL's growth going forward.
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222
 Regd off: Bombay House, 24, Homi Mody Street, Mumbai - 400 001
TATA POWER CO. LIMITED + $ E-Mail: investorcomplaints@tatapower.com
Web site: www.tatapower.com
Telephone: (022) 6665 8282 Fax: (022) 6665 8801
POWER TATA Tr agent: TSR Darashaw, H. Moosa Patrawala Ind. Est., E.Moses Rd., Mumbai - 11
Chairman: Ratan N. Tata SEC: B. J. Shroff AUD: Deloitte Haskins & Sells
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1919 500400 TPWR:IN 10 1,080.4 -1.9 51.6 22.7 14.8 1.0 239,092.3 173.3 INE245A01013
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 33.4% Exports (fob) Rs m 38
(Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 14,846
Indian inst/Mut Fund : 26.4% Fx inflow Rs m 188 1800
FIIs/GDR : 20.9% Fx outflow Rs m 15,375
Free float : 19.3% Net fx Rs m -15,187
Shareholders : 158,924
1400
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
1000
High Rs 594 614 1,627
Low Rs 332 395 496
Sales per share Rs 274.8 314.6 478.7
Earnings per share Rs 36.7 37.3 46.6 600
Cash flow per share Rs 53.7 57.7 71.3 DAILY
Dividends per share Rs 8.50 9.50 10.50 100 DMA
Dividend yield (eoy) % 1.8 1.9 1.0
200
Book value per share Rs 238.4 265.5 338.0
Shares outstanding (eoy) m 203.54 203.54 226.34 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - PA,BC
Price / Sales ratio x 1.7 1.6 2.2 No. of months 12 12 12
Avg P/E ratio x 12.6 13.5 22.8 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 8.6 8.7 14.9
Price / Book Value ratio x 1.9 1.9 3.1 From Operations Rs m 5,875 7,720 16,912
Dividend payout % 23.1 25.5 22.5 From Investments Rs m -7,337 -13,247 -65,518
Avg Mkt Cap Rs m 94,239 102,686 240,260 From Financial Activity Rs m 1,477 5,271 41,398
No. of employees `000 3 3 3 Net Cashflow Rs m 15 -256 -7,208
Total wages/salary Rs m 2,366 2,797 4,548
Avg. sales/employee Rs Th 16,641.8 22,121.2 38,059.7 INTERIM RESULTS
Avg. wages/employee Rs Th 704.0 966.1 1,597.5 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 2,223.7 2,623.8 3,705.7 Net sales Rs m 13,506 14,194 16,344 20,261
Gross profit Rs m 2,703 2,637 1,382 3,438
INCOME DATA Gross profit margin % 20.0 18.6 8.5 17.0
Net Sales Rs m 55,933 64,041 108,356 Net profit Rs m 1,723 1,947 3,197 1,905
Other income Rs m 3,227 3,467 5,340 Net profit margin % 12.8 13.7 19.6 9.4
Total revenues Rs m 59,160 67,508 113,696
Gross profit Rs m 10,799 10,303 20,726 KEY DATA
Depreciation Rs m 3,457 4,148 5,593 Parameters Unit FY06 FY07 FY08
Interest Rs m 1,638 2,761 4,988 Capacity MW 2,304 2,449 2,474
Profit before tax Rs m 8,931 6,861 15,485 Generation m units 13,746 14,269 14,717
Minority Interest Rs m 2 -189 -1,170 Average tariff Rs/unit 3.3 3.5 4.7
Prior Period Items Rs m -62 1,806 318 Fuel cost Rs/unit 1.7 1.9 2.8
Extraordinary Inc (Exp) Rs m 224 -66 0 Capex Rs m 11,293 12,203 99,515
Tax Rs m 1,621 816 4,083
NOTES
Profit after tax Rs m 7,474 7,596 10,550
Gross profit margin % 19.3 16.1 19.1 Tata Power (TPC) is the largest private player in the power sector with a generation
Effective tax rate % 18.2 11.9 26.4 capacity of over 2,400 MW, which is around 19% of the total power generation
capacity of the private sector in India. Out of this installed capacity, around 80% is
Net profit margin % 13.4 11.9 9.7
used for supplying electricity to the Mumbai region. Apart from power generation, the
BALANCE SHEET DATA company also has interests in areas like transmission and distribution and power
trading.
Current assets Rs m 32,933 43,317 50,049
Current liabilities Rs m 17,134 22,238 38,539 Tata Power's standalone and consolidated sales grew by 26% YoY and 68% YoY
Net working cap to sales % 28.2 32.9 10.6 during FY08 - the latter aided by consolidation of numbers of the Indonesian coal
Current ratio x 1.9 1.9 1.3 mine companies. The company's standalone operating margins expanded by 1% YoY
Inventory Turnover Days 32 27 22 during the fiscal, owing to lower cost of power purchased (as percentage of sales).
Debtors Turnover Days 81 99 85 On a consolidated basis, margins were up almost 3% due to lower cost of fuel and
Net fixed assets Rs m 54,788 63,001 140,901 power purchased (both as percentage of sales). Its consolidated bottomline grew by
Share capital Rs m 1,979 1,979 2,207 39% YoY.
"Free" reserves Rs m 36,273 40,618 60,388
Tata Power has outlined a capex of Rs 500 bn to set up additional generation
Net worth Rs m 48,515 54,040 76,505 capacities of around 10,500 MW over the next 5-6 years. This shall take the
Long term debt Rs m 40,464 29,291 86,324 company's capacity to 12,861 MW by 2013, from the current levels of around 2,400
Total assets Rs m 116,353 137,151 222,203 MW. As part of this broader plan, the company is already working on a capacity of
Interest coverage x 6.5 3.5 4.1 6,000 MW requiring a capex of Rs 250 bn. These projects are expected to be funded
Debt to equity ratio x 0.8 0.5 1.1 in a debt to equity ratio of 70:30, as per the electricity regulator's specified norms.
Sales to assets ratio x 0.5 0.5 0.5 Towards meeting the requirements of the expanded capacity, Tata Power has outlined
Return on assets % 10.2 12.4 9.5 doubling its coal imports to 3 m tonnes during FY09. Most of these supplies will come
Return on equity % 15.4 14.1 13.8 from the company's Indonesian coal mines. Timely execution of the ongoing projects
Return on capital % 12.1 13.4 12.1 will also add significant value to its growth in the future. However, we remain
Exports to sales % 0.7 0.6 0.0 concerned about the general rise in raw material costs, which continue to pare the
Imports to sales % 9.1 14.4 13.7 company's profitability levels.
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223
 Regd off: Torrent House, Off Ashram Road, Ahmedabad - 380 009
TORRENT POWER LIMITED E-Mail: rajivshah@torrentpower.com
Web site: www.torrentpower.com
Telephone: (079) 2658 3060 Fax: (079) 2658 2326
POWER Torrent Group Tr agent: Sharepro Services, Satam Est., 3rd Flr., C. G. Rd., Chakala, Mumbai - 99
Chairman: Sudhir Mehta SEC: Rajiv Shah AUD: C. C. Chokshi & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
2004 532779 TPW:IN 10 112.4 -0.7 25.1 25.1 14.8 1.1 53,103.4 318.8 INE813H01021
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 52.7% Exports (fob) Rs m 0
(Rs)
Foreign collaborators : 0.0% Imports (cif) Rs m 2,035
Indian inst/Mut Fund : 24.4% Fx inflow Rs m 0 280
FIIs/GDR : 0.1% Fx outflow Rs m 2,056
DAILY
Free float : 22.8% Net fx Rs m -2,056
Shareholders : 82,453 100 DMA
220
No. of months 18 06 12
Year ending 30/09/06 31/03/07 31/03/08
EQUITY SHARE DATA
160
High Rs 85 100 270
Low Rs 69 56 56
Sales per share Rs 80.2 29.2 76.7
Earnings per share Rs 3.8 1.5 4.5 100
Cash flow per share Rs 10.0 2.9 7.6
Dividends per share Rs 1.20 0.40 1.20
Dividend yield (eoy) % 1.6 0.5 0.7
40
Book value per share Rs 55.7 57.3 61.2
Shares outstanding (eoy) m 472.45 472.45 472.45 Nov-06 May-07 Oct-07 Mar-08 Sep-08
Bonus/Rights/Conversions A - -
Price / Sales ratio x 1.0 2.7 2.1 No. of months 18 06 12
Avg P/E ratio x 20.3 51.4 36.5 Year ending 30/09/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 7.7 26.9 21.4
Price / Book Value ratio x 1.4 1.4 2.7 From Operations Rs m 5,694 4,016 4,458
Dividend payout % 31.6 26.4 26.8 From Investments Rs m -13,041 -14,101 -12,484
Avg Mkt Cap Rs m 36,379 36,851 76,986 From Financial Activity Rs m 4,431 9,052 9,383
No. of employees `000 5 NA NA Net Cashflow Rs m -2,917 -1,033 1,357
Total wages/salary Rs m 2,790 900 2,295
Avg. sales/employee Rs Th 7,898.5 NA NA INTERIM RESULTS
Avg. wages/employee Rs Th 581.3 NA NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 373.5 NA NA Net sales Rs m 9,109 8,626 9,208 11,134
Gross profit Rs m 1,350 1,217 1,299 1,413
INCOME DATA Gross profit margin % 14.8 14.1 14.1 12.7
Net Sales Rs m 37,913 13,811 36,255 Net profit Rs m 655 593 505 538
Other income Rs m 1,364 467 882 Net profit margin % 7.2 6.9 5.5 4.8
Total revenues Rs m 39,277 14,278 37,137
Gross profit Rs m 5,538 1,572 4,715 KEY DATA
Depreciation Rs m 2,909 652 1,479 Parameters Unit FY06 FY07 FY08
Interest Rs m 563 169 435 Sales / employee Rs m 7.9 2.9 7.6
Profit before tax Rs m 3,430 1,218 3,683 Profit / employee Rs m 0.4 0.1 0.4
Minority Interest Rs m 0 0 0 T & D Losses % 9.7 9.3 8.6
Prior Period Items Rs m -37 0 -233 Plant Availability Factor % 95.5 89.2 95.3
Extraordinary Inc (Exp) Rs m 173 78 83 Plant Load Factor % 90.4 83.3 90.6
Tax Rs m 1,773 579 1,421
NOTES
Profit after tax Rs m 1,793 717 2,112
Gross profit margin % 14.6 11.4 13.0 Torrent Power Ltd. (TPL) promoted by Torrent Group was incorporated in April 2005
Effective tax rate % 51.7 47.5 38.6 by amalgamating the power companies like Torrent Power AEC Ltd., Torrent Power
SEC Ltd. and Torrent Power Generation Ltd. TPL is an integrated power company
Net profit margin % 4.7 5.2 5.8
primarily engaged in the generation, transmission and distribution of electricity with
BALANCE SHEET DATA operations in the states of Gujarat and Maharashtra. The Ahmedabad and Surat
licensed area operations in Gujarat contributed about 82.2% of the power business
Current assets Rs m 8,307 8,948 12,397 revenues and Bhiwandi Franchise (it has a franchisee agreement with Maharashtra
Current liabilities Rs m 9,866 12,243 14,404 State Electricity Distribution Co. Ltd.) in Maharashtra contributed about 17.8% in
Net working cap to sales % -4.1 -23.9 -5.5 FY08.
Current ratio x 0.8 0.7 0.9
Inventory Turnover Days 9 40 17 Since the company had a change in its accounting period, with the company reporting
Debtors Turnover Days 33 91 42 figures for 18 months, 6 months and 12 months respectively, the financial
Net fixed assets Rs m 34,816 48,690 60,233 performance could not be compared on a like-to-like basis. The operating margin for
Share capital Rs m 4,724 4,724 4,724 the company for FY08 stood at 13% while its net margin for the year was 5.8%.
"Free" reserves Rs m 19,527 20,029 21,478
The company will commission its most ambitious 1147.5 MW gas based power
Net worth Rs m 26,321 27,054 28,898 project at SUGEN near Surat by end of FY09. The company's business growth is
Long term debt Rs m 8,563 13,586 22,936 mainly driven by the industrial and commercial activities, which depend on economic
Total assets Rs m 45,200 58,891 73,026 growth. The company's Ahmedabad, Gandhinagar and Surat distribution areas have
Interest coverage x 7.1 8.2 9.5 witnessed high growth on account of increase in commercial and industrial activities
Debt to equity ratio x 0.3 0.5 0.8 in last few years and the management expects that growth in demand for energy
Sales to assets ratio x 0.8 0.2 0.5 would continue to rise in line with economic growth. High dependence on domestic
Return on assets % 6.8 2.2 4.9 coal, however, exposes the company to potential availability risks, which does not
Return on equity % 6.8 2.7 7.3 bode well for the company in a scenario of high shortages of fuel and volatility in
Return on capital % 11.8 3.6 7.7 price.
Exports to sales % 0.0 0.0 0.0
Imports to sales % 8.5 56.1 5.6
GET MORE INFO AT WWW.EQUITYMASTER.COM

224
 RETAIL
India is currently the fifth largest retail market in the world and
the market size in 2007 was estimated at US$ 330 bn. Retailing
has played a major role the world over in increasing
productivity across a wide range of consumer goods and
services. In the developed countries, the retail industry has
developed into a full-fledged industry where the organised
sector accounts for almost 80% of the total retail trade. In
contrast to this, in India organised retail trade accounts for
merely 4% of the total retail trade. This highlights tremendous
scope for growth of the retail sector in India.
The sector can be broadly divided into two segments: Value
retailing, which is typically a low margin-high volume business
(primarily food and groceries) and Lifestyle retailing, a high
margin-low volume business (primarily apparel, footwear, etc).
The sector is further divided into various categories, depending
on the types of products serviced. Clothing & accessories
dominate the market followed by food & grocery. The low
contribution of other categories indicates opportunity for
organised retail growth in these segments.
KEY SEGMENTS
Categories % of organised retailing
Clothing & accessories 39
Food & grocery& Catering(F&B) 22
Footwear 9
Consumer durables 9 factors, including assortment, format, products, advertising,
Furniture & Fixtures 7 price, quality, service, location, reputation, credit and
Jewellery& watches 6
Others 8 further liberalised) are expected to further intensify the
Source: Koutons retail IPO prospectus - India Retail Report by Images and
F&R 2007
Historically, Indians have not been the ones to splurge on luxury
items. However, increased awareness among consumers,
media proliferation and the desire to look good and try new
things have led to the growth of lifestyle retailing and in luxury
items. There has been a transition from the traditional retail to
organised retailing. The time constraint and the convenience
of shopping with multiplicity of choice under one roof are the
major drivers of organised retailing in the country.
FY08
The year has witnessed lot of activities such as joint ventures,
expansion, capital raising to fund expansion plans such as
Vishal Retail's IPO to raise Rs 1.1 bn, Trent's rights issue to
raise Rs 1.5 bn, entry of new players like Reliance Retail,
Aditya Birla Group (the latter's store is to be called More) and
so on. Further, players have also been engaged in
strengthening their back end activity by joining hands with the
allied service provider. The new entrants are finding it easier
to pay a premium and acquire regional players in order to
rapidly scale up their operations and establish a footprint in
the sector.
Historically, availability of quality retail space has been a
constraint for Indian retail. However, while the surge in mall
development in the recent past had to a certain extent increased
supply, high rents had a dampening effect apart from the usual
problems of delays in store opening and high manpower
attrition. The effect of rising costs of operation was reflected
in the bottomline, which either remained flat or contracted for
the major players.
225
KEY POINTS
Supply: Players are now moving to Tier I and Tier II cities to
increase penetration and explore untapped markets as Tier I
cities have been explored enough and have reached a
saturation level.
Demand: A healthy economic growth, changing demographic
profile, increasing disposable incomes, changing consumer
tastes and preferences are some of the key factors that are
driving and will continue to drive growth in the organised
retail market in India.
Barriers to entry: Reforms by India in opening up its
economy have greatly improved trade prospects, but major
barriers still exist such as regulatory issues, supply chain
complexities, inefficient infrastructure, automatic approval not
being allowed for foreign investment in retail.
Bargaining power of suppliers: The bargaining power of
suppliers varies depending upon the target segment, the
format that they follow and the products they offer. The
unorganised sector has a dominant position. There are few
players who have a slight edge over others on account of
being established players and enjoying brand distinction.
Bargaining power of customers: High due to availability
of wide choice.
Competition: High. Competition is characterised by many
availability of retail space etc. New entrants (business
houses and international players if foreign participation is
competition.
CURRENT SCENARIO AND PROSPECTS
Retailing in India has witnessed tremendous growth in the last
few years. Organised retail that touched US$ 25.4 bn in size
in 2007 ((Source: IBEF) is on a high growth path and is
expected to continue to grow at the rate of 40% over the next
few years. The growth is being fuelled by a strong economy,
favourable demographics, rising disposable income and rapidly
changing lifestyles and consumer aspirations of an ever-
burgeoning middle class. Retailers are taking benefit of this
growth and accordingly are aiming to expand. This fast-paced
growth is aided by mall development, fuelled by the government
bodies' initiative of releasing real estate space for retail
development in prime areas. Consumers are now showing a
growing preference for organised retail, resulting in increased
penetration.
While there is immense potential, growth prospects might face
hurdles owing to factors such as restrictions on FDI (foreign
direct investment), the lack of a uniform tax structure across
states and increasing pressure on infrastructure in key
consumer markets (logistics issue). Going forward, we believe
that accretion to income levels of the rising Indian middle class
(represented by the financially independent young population)
and the consequent rise in disposable incomes will fuel growth
of the retailing sector.
Basically retail is a volume game. Going forward, with the
competition intensifying and the costs scaling up, the players
who are able to cater to the needs of the consumers and
grow volumes by ensuring footfalls, while being able to reduce
costs as well as withstand a downturn or face competition
will have the competitive advantage.
 RETAIL
GLOBAL COMPARISON
FY08/CY07 Unit Trent Shopper's Stop Walmart Carrefour Metro Ag
Stores / Locations No 29* 24** 7,390 7,906 2,221
Revenues US$ m 128 272 374,526 112,594 88,181
Operating cost US$ m 124 258 356,803 109,655 87,610
EBDITA US$ m 4 14 17,723 2,938 572
EBDITA margin % 3.0 5.2 4.7 2.6 0.6
Net profit US$ m 8 2 12,731 3,398 1,347
Net profit margin % 6.4 0.6 3.4 3.0 1.5
Return on equity % 5.4 2.4 19.7 23.3 15.1
Return on asset % 4.0 1.0 7.8 4.8 2.9
Debt to equity x 0.1 0.6 0.5 1.0 1.2
*Westside stores ** Shopper's Stop departmental stores

WAL-MART (US)

Wal-Mart Stores, Inc. opened its first store in 1962 and today is the world's largest retailer and the world's largest
company with more than US$ 375 bn in sales annually. Wal-Mart employs more than 2 m associates worldwide in
7,390 Wal-Mart stores along with Sam's Club locations in 14 markets. It primarily operates retail stores worldwide
through three segments: Wal-Mart Stores, Sam's Club and Wal-Mart International. However, it does business under
nine different retail formats: supercenters, food and drugs, general merchandise stores, bodegas (small markets),
cash and carry stores, membership warehouse clubs, apparel stores, soft discount stores and restaurants.

CARREFOUR GROUP (France)

Carrefour is a French international hypermarket chain with a global network of outlets. Over the past 40 years the
Carrefour group has grown to become one of the world's leading distribution groups and is the second largest
retail group in the world in terms of revenues after Wal-Mart and the largest in Europe. Spread across 30 countries,
the Group has presence in three major markets: Europe, Latin America and Asia. The group currently operates four
main grocery store formats: hypermarkets, supermarkets, hard discount and convenience stores. The Carrefour
group currently has over 15,000 stores, either company-operated or franchises and employs 490,000 people. The
Group was the first international retailer to establish a presence in Asia in 1989, when it entered in Taiwan through
a joint venture with Uni President Enterprises Corporation.

THE METRO AG (Germany)

The 35 year old group Metro (METRO AG) is a diversified retail and wholesale / cash and carry group based in
Germany. The Metro Group is the third largest retailer worldwide. The company employs around 280,000 staff at
over 2,200 outlets spread across 31 countries in Europe, Africa and Asia. It has the largest market share in its home
market and is the world's market leader in cash and carry business, besides being a leader in consumer electronic
retailing in Europe. The company's operative business is divided into the business segments of wholesale, food
retail, non-food specialty stores and department stores.

Source: Yahoo Finance, Company reports TTM - Trailing twelve months

226
 Regd off: Eureka Towers, B Wing, 9th Floor, Mindspace, Malad, Mumbai - 64
SHOPPER'S STOP LIMITED E-Mail: investor@shoppersstop.co.in
Web site: www.shoppersstop.com
Telephone: (022) 6688 7688 Fax: (022) 2880 8877
RETAIL MISCELLANEOUS Tr agent: Karvy Computershare, 46, Avenue 4, St. No. 1, Banjara Hills, Hyd. - 34
Chairman: Chandru L. Raheja SEC: Prashant Mehta AUD: Deloitte Haskins & Sells
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1997 532638 SHOP:IN 10 294.4 -3.0 -46.8 394.8 22.3 0.5 10,265.7 0.0 INE498B01016
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 66.1% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 281 (Rs)
Indian inst/Mut Fund : 8.2% Fx inflow Rs m 494 800
FIIs/GDR : 14.8% Fx outflow Rs m 376
Free float : 10.9% Net fx Rs m 118
Shareholders : 8,133
660
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
520
High Rs 615 777 703
Low Rs 331 370 350
Sales per share Rs 184.6 237.7 316.6
Earnings per share Rs 7.1 6.9 0.7 380
DAILY
Cash flow per share Rs 11.9 15.2 13.2
Dividends per share Rs 1.50 1.50 1.50 100 DMA
Dividend yield (eoy) % 0.3 0.3 0.3
240
Book value per share Rs 76.5 82.1 81.3
Shares outstanding (eoy) m 34.38 34.83 34.86 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions PI ESOP ESOP
Price / Sales ratio x 2.6 2.4 1.7 No. of months 12 12 12
Avg P/E ratio x 66.9 82.5 705.9 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 39.8 37.6 39.8
Price / Book Value ratio x 6.2 7.0 6.5 From Operations Rs m 327 -159 143
Dividend payout % 21.2 21.6 201.1 From Investments Rs m -278 -568 -1,621
Avg Mkt Cap Rs m 16,262 19,975 18,354 From Financial Activity Rs m 1,069 611 582
No. of employees `000 3 3 4 Net Cashflow Rs m 1,118 -116 -896
Total wages/salary Rs m 436 600 809
Avg. sales/employee Rs Th 2,528.9 2,622.7 2,940.1 INTERIM RESULTS
Avg. wages/employee Rs Th 173.8 190.1 215.5 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 96.9 76.7 6.9 Net sales Rs m 2,774 3,100 2,975 2,817
Gross profit Rs m 134 152 160 -41
INCOME DATA Gross profit margin % 4.8 4.9 5.4 -1.5
Net Sales Rs m 6,345 8,280 11,037 Net profit Rs m 2 8 -4 -214
Other income Rs m 78 127 88 Net profit margin % 0.1 0.3 -0.1 -7.6
Total revenues Rs m 6,423 8,407 11,125
Gross profit Rs m 486 676 544 KEY DATA
Depreciation Rs m 166 289 435 Parameters Unit FY06 FY07 FY08
Interest Rs m 27 46 125 Sq ft m 1.0 1.2 1.6
Profit before tax Rs m 371 468 72 Revenues per sq ft Rs 6,192 6,831 6,804
Minority Interest Rs m 5 0 33 Salaries and wages % of sales 6.8 7.3 7.2
Prior Period Items Rs m 0 0 0 Advertisement & publicity % of sales 2.0 2.2 2.4
Extraordinary Inc (Exp) Rs m 0 0 0 Capex Rs m 381 387 1,256
Tax Rs m 133 226 79
NOTES
Profit after tax Rs m 243 242 26
Gross profit margin % 7.7 8.2 4.9 Shoppers Stop is the pioneer of pan-nation one-stop retail outlets. The total area of
Effective tax rate % 35.8 48.3 109.7 operation of Shoppers Stop (24 departmental stores in FY08) and its various formats
total to 1.6 m sq feet. The company has a distinctive business model as it is present
Net profit margin % 3.8 2.9 0.2
across retail formats except medical care and health services. While the group
BALANCE SHEET DATA primarily caters to lifestyle retailing segment, it has forayed into speciality retailing
and has taken up some other initiatives too such as airport retailing. The company
Current assets Rs m 2,733 3,772 3,989 holds 19% stake in Hypercity and can increase it to 51% by the end of 2008. The
Current liabilities Rs m 950 1,413 2,190 other initiatives of the company include airport retailing (Nuance group) and Time
Net working cap to sales % 28.1 28.5 16.3 Zone entertainment (interactive entertainment, games).
Current ratio x 2.9 2.7 1.8
Inventory Turnover Days 42 51 60 On a consolidated basis in FY08, the company reported 33% YoY growth in topline
Debtors Turnover Days 5 6 3 backed by new initiatives and growth across offerings. While the company was able
Net fixed assets Rs m 1,388 1,738 2,767 to expand gross margins by 0.8% in FY08, skyrocketing rentals, business revamping
Share capital Rs m 344 348 349 and expansion plans dragged down operating profits by 19% YoY. A poor show at the
"Free" reserves Rs m 2,277 2,504 2,475 operating level coupled with higher depreciation and finance charges led net profits
to tumble down by almost 89% YoY. On a standalone basis, the topline grew by 36%
Net worth Rs m 2,629 2,861 2,833
YoY in FY08, while bottomline declined by almost 67% YoY on account of rising cost
Long term debt Rs m 0 173 203
of operations and ambitious expansion plans of the company.
Total assets Rs m 4,218 5,619 7,078
Interest coverage x 14.7 11.2 1.6 The company has filed rights issue to raise funds for its ambitious expansion plans in
Debt to equity ratio x 0.0 0.1 0.1 the luxury segment. The expansion plans across formats will broaden its offerings
Sales to assets ratio x 1.5 1.5 1.6 and de-risk its dependence on the flagship Shoppers Stop stores from a long-term
Return on assets % 10.3 9.5 5.0 perspective. The company's presence across retail formats, which account for a lion's
Return on equity % 9.2 8.5 0.9 share of the consumption basket and its positioning in the retail sector is expected to
Return on capital % 15.3 16.9 7.6 help it capitalise on future opportunities. As for the risks, the company's business is
Exports to sales % 0.0 0.0 0.0 driven by discretionary spending of consumers, which is the first to get impacted in
Imports to sales % 0.6 2.7 2.5 case of a prolonged economic slowdown.
GET MORE INFO AT WWW.EQUITYMASTER.COM

227
 Regd off: 3, SIPCOT Industrial Complex, Hosur, Tamil Nadu - 635 126
TITAN INDUSTRIES LIMITED E-Mail: ushai@titan.co.in
Web site: www.titanworld.com
Telephone: (080) 6660 9610 Fax: (080) 2526 3001
RETAIL TATA Tr agent: TSR Darashaw, H. Moosa Patrawala Ind. Est., E.Moses Rd., Mumbai - 11
Chairman: M. F. Farooqui SEC: Usha Iyengar AUD: A. F. Ferguson & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1984 500114 TTAN:IN 10 1,231.7 -2.5 -5.9 37.0 30.2 0.6 54,672.9 19.9 INE280A01010
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 53.1% Exports (fob) Rs m 1,384
Foreign collaborators : 0.0% Imports (cif) Rs m 11,419 (Rs)
Indian inst/Mut Fund : 5.9% Fx inflow Rs m 1,424 1850
FIIs/GDR : 11.5% Fx outflow Rs m 11,550
Free float : 29.6% Net fx Rs m -10,126
Shareholders : 53,651
1450
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
1050
High Rs 880 1,041 1,795
Low Rs 228 519 808
Sales per share Rs 340.5 471.0 675.1
Earnings per share Rs 19.2 22.5 33.3 650
Cash flow per share Rs 23.9 28.3 40.8 DAILY
Dividends per share Rs 3.00 5.00 8.00
100 DMA
Dividend yield (eoy) % 0.5 0.6 0.6
250
Book value per share Rs 41.3 75.0 100.4
Shares outstanding (eoy) m 42.28 44.39 44.39 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - OI -
Price / Sales ratio x 1.6 1.7 1.9 No. of months 12 12 12
Avg P/E ratio x 28.9 34.7 39.1 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 23.2 27.5 31.9
Price / Book Value ratio x 13.4 10.4 13.0 From Operations Rs m 1,287 1,559 1,066
Dividend payout % 15.7 22.2 24.1 From Investments Rs m -414 -1,198 -643
Avg Mkt Cap Rs m 23,423 34,624 57,774 From Financial Activity Rs m -928 -243 -408
No. of employees `000 3 4 4 Net Cashflow Rs m -55 118 15
Total wages/salary Rs m 1,117 1,596 1,929
Avg. sales/employee Rs Th 4,540.5 5,826.9 7,712.0 INTERIM RESULTS
Avg. wages/employee Rs Th 352.3 444.8 496.4 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 255.4 278.1 379.8 Net sales Rs m 7,251 8,135 8,450 8,103
Gross profit Rs m 796 501 812 561
INCOME DATA Gross profit margin % 11.0 6.2 9.6 6.9
Net Sales Rs m 14,398 20,907 29,969 Net profit Rs m 463 309 579 323
Other income Rs m 57 60 34 Net profit margin % 6.4 3.8 6.9 4.0
Total revenues Rs m 14,455 20,967 30,003
Gross profit Rs m 1,430 1,891 2,551 KEY DATA
Depreciation Rs m 200 260 333 Parameters Unit FY06 FY07 FY08
Interest Rs m 248 212 208 Time product sales % of sales 40.9 33.8 30.2
Profit before tax Rs m 1,039 1,479 2,044 Jewellery sales % of sales 52.1 59.0 66.7
Minority Interest Rs m 0 0 0 Others* % of sales 7.0 7.2 3.2
Prior Period Items Rs m -2 -3 -80 Capex Rs m 203 951 426
*includes precision engineering, licensed products and accessories.
Extraordinary Inc (Exp) Rs m -101 -101 -42
Tax Rs m 126 377 446
NOTES
Profit after tax Rs m 810 998 1,476
Gross profit margin % 9.9 9.0 8.5 Titan is India's largest watchmaker (17% of FY08 turnover) with a 60% share of the
Effective tax rate % 12.1 25.5 21.8 domestic organised watch market. The company diversified into related areas of
organised branded jewellery which now accounts for almost 67% of sales. Post
Net profit margin % 5.6 4.8 4.9
FY03, the company started curtailing its international unprofitable businesses and
BALANCE SHEET DATA also writing off losses of European operations. After establishing itself in select growth
countries in the Middle East and Asia Pacific, Titan hopes to grow aggressively in the
Current assets Rs m 6,428 8,891 13,035 domestic market. In 2005, the company forayed into the mass market jewellery
Current liabilities Rs m 3,632 5,937 9,123 business with the launch of Gold Plus stores. It has also recently forayed into the
Net working cap to sales % 19.4 14.1 13.1 prescription eyewear business segment.
Current ratio x 1.8 1.5 1.4
Inventory Turnover Days 95 119 127 Titan clocked 42% YoY growth in revenues on the back of 17% YoY growth in the time
Debtors Turnover Days 23 17 12 products segment and 57% YoY growth in the jewellery segment in FY08. Costs
Net fixed assets Rs m 2,007 2,717 2,877 outpaced topline growth resulting in a subdued growth in operating profits (26% YoY).
Share capital Rs m 423 444 444 The growth was arrested as the jewellery business, that contributes over 60% to the
"Free" reserves Rs m 1,538 2,874 3,805 topline did not put up an impressive performance. The rising cost of operations and
volatile prices of the yellow metal pressurised the jewellery division's margins. The
Net worth Rs m 1,746 3,329 4,458
new initiatives are yet to turn profitable.
Long term debt Rs m 429 892 1,094
Total assets Rs m 8,715 11,924 15,936 Going forward, new initiatives are expected to augur well and give a further fillip to
Interest coverage x 5.2 8.0 10.8 the topline growth. Having said that, volatility in raw material prices, intensifying
Debt to equity ratio x 0.2 0.3 0.2 competition coupled with expansion plans outlined by the company may continue to
Sales to assets ratio x 1.7 1.8 1.9 pressurise margins, till the new initiatives break-even. Further, the growth of specialty
Return on assets % 48.6 28.7 30.3 retail, which is more a concept near to lifestyle retailing, is impacted by discretionary
Return on equity % 46.4 30.0 33.1 spending, which is the first to get impacted in case of a prolonged economic
Return on capital % 54.4 37.6 38.4 slowdown.
Exports to sales % 6.1 5.5 4.6
Imports to sales % 14.2 21.1 38.1
GET MORE INFO AT WWW.EQUITYMASTER.COM

228
 Regd off: Bombay House, 24, Homi Mody Street, Fort, Mumbai - 400 001
TRENT LIMITED E-Mail: hr.wadia@trent-tata.com
Web site: www.tata.com/trent/
Telephone: (022) 2207 1464 Fax: (022) 2207 0216
RETAIL TATA Tr agent: TSR Darashaw, H. Moosa Patrawala Ind. Est., E.Moses Rd., Mumbai - 11
Chairman: F. K. Kavarana SEC: Mrs. H. R. Wadia AUD: N. M. Raiji & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1952 500251 TRENT:IN 10 518.3 6.4 -22.0 30.0 21.9 1.4 10,122.4 0.7 INE849A01012
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 32.2% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 49 (Rs)
Indian inst/Mut Fund : 22.6% Fx inflow Rs m 155 950
FIIs/GDR : 9.7% Fx outflow Rs m 82
Free float : 35.6% Net fx Rs m 73
Shareholders : 37,494
800
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
650
High Rs 1,002 1,010 829
Low Rs 531 641 473
Sales per share Rs 277.6 386.7 366.7
Earnings per share Rs 19.5 21.5 17.3 500
DAILY
Cash flow per share Rs 26.4 28.3 23.7
Dividends per share Rs 6.50 7.00 7.00 100 DMA
Dividend yield (eoy) % 0.8 0.8 1.1
350
Book value per share Rs 197.0 260.3 319.3
Shares outstanding (eoy) m 14.43 15.76 19.53 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions DC PA,WC R1:5,WC
Price / Sales ratio x 2.8 2.1 1.8 No. of months 12 12 12
Avg P/E ratio x 39.4 38.4 37.7 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 29.0 29.2 27.5
Price / Book Value ratio x 3.9 3.2 2.0 From Operations Rs m 789 -160 327
Dividend payout % 33.4 32.5 40.6 From Investments Rs m -2,101 -956 -2,165
Avg Mkt Cap Rs m 11,059 13,010 12,714 From Financial Activity Rs m 1,341 1,173 1,793
No. of employees `000 NA NA NA Net Cashflow Rs m 30 57 -45
Total wages/salary Rs m 250 388 547
Avg. sales/employee Rs Th NA NA NA INTERIM RESULTS
Avg. wages/employee Rs Th NA NA NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA NA NA Net sales Rs m 1,195 1,442 1,289 1,334
Gross profit Rs m 74 45 -68 9
INCOME DATA Gross profit margin % 6.2 3.1 -5.3 0.7
Net Sales Rs m 4,006 6,094 7,162 Net profit Rs m 91 102 57 82
Other income Rs m 132 166 290 Net profit margin % 7.6 7.1 4.4 6.1
Total revenues Rs m 4,138 6,260 7,452
Gross profit Rs m 384 433 263 KEY DATA
Depreciation Rs m 100 107 125 Parameters Unit FY06 FY07 FY08
Interest Rs m 44 72 105 Sq ft m 0.6 0.7 0.8
Profit before tax Rs m 372 420 323 Revenues per sq ft Rs 5,728 6,466 6,221
Minority Interest Rs m -8 -11 -3 Salaries and wages % of sales 5.9 6.3 7.1
Prior Period Items Rs m 0 8 3 Advertisement & publicity % of sales 8.7 8.4 8.0
Extraordinary Inc (Exp) Rs m 40 54 89 Capex Rs m 150 132 388
Tax Rs m 123 132 75
NOTES
Profit after tax Rs m 281 339 337
Gross profit margin % 9.6 7.1 3.7 Trent Ltd., a Tata Group company, is one of the oldest retail players with presence in
Effective tax rate % 33.1 31.4 23.2 lifestyle and value retailing business. The company operates in three formats namely
Westside, Star India Bazaar and Landmark. It also acts as a franchisee to the
Net profit margin % 7.0 5.6 4.7
Benetton group to market Sisley brand. In a move to improve backend activities like
BALANCE SHEET DATA sourcing, the company's hypermarket business has recently entered into a franchise
agreement with UK's largest retailer Tesco to develop wholesale cash-and-carry
Current assets Rs m 2,253 3,390 3,976 business in India.
Current liabilities Rs m 1,441 1,752 2,234
Net working cap to sales % 20.3 26.9 24.3 During FY08, Trent opened 2 Westside stores and 2 Star Bazaar stores taking the
Current ratio x 1.6 1.9 1.8 total store count to 31 stores. The company reported muted 13% YoY growth in
Inventory Turnover Days 72 79 77 topline as the discretionary spending was impacted by inflationary situation in the
Debtors Turnover Days 2 6 6 economy. While operating profits declined by almost 55% YoY as costs grew at a
Net fixed assets Rs m 2,272 2,542 3,093 faster pace as compared to the topline, net profits reported marginal growth of 1.4%
Share capital Rs m 144 158 195 YoY on the back of higher other income. Excluding other income, corporate costs
"Free" reserves Rs m 2,390 3,398 5,515 such as finance charges, depreciation costs and tax expenses almost ate into the
profits.
Net worth Rs m 2,842 4,102 6,235
Long term debt Rs m 1,181 1,061 1,199 Though the company grew at a slower pace in FY08, given the fact that the
Total assets Rs m 6,145 8,119 10,876 management is focused on the strategy of setting up new stores using internal
Interest coverage x 9.5 6.8 4.1 accruals and is looking at other related retail initiatives, the long-term growth
Debt to equity ratio x 0.4 0.3 0.2 prospects of the company look promising. As for the risks, the management has
Sales to assets ratio x 0.7 0.8 0.7 indicated that a prolonged economic slowdown can impact its growth in the future
Return on assets % 8.1 8.0 5.9 apart from the timely delivery of the agreed retail space by builders.
Return on equity % 9.9 8.3 5.4
Return on capital % 11.1 10.5 7.0
Exports to sales % 0.0 0.0 0.0
Imports to sales % 0.9 0.5 0.7
GET MORE INFO AT WWW.EQUITYMASTER.COM

229
 SHIPPING
Shipping is a global industry and its prospects are closely tied
to the level of economic activity in the world. A higher level of
economic growth would generally lead to higher demand for
industrial raw materials, which in turn will boost imports and
exports. The shipping market is cyclical in nature and freight
rates generally tend to be volatile.
Freight rates and earnings of the shipping companies are
primarily a function of demand and supply in the markets. While
demand drivers are a function of trade growth and
geographical balance of trade (which determines the length
of haul required), the supply drivers are a function of new
ship building orders as well as scrapping of existing tonnage.
The global shipping industry can be broadly classified into
wet bulk (like crude and petroleum products), dry bulk (like
iron ore and coal) and liners. Under liners, it has containers,
MPP and Ro-Ros types of vessels. There are various
benchmarks that determine freight rates for these segments.
The prominent amongst them are Baltic Freight Index, Baltic
Handymax Index (for dry bulk segment) and World Scale (for
tankers).
FY08
Even with an annual expansion rate in world shipbuilding of
16% to 20%, the fleet growth of 8.4% in 2007 was marginally
lower than the estimated tonnage demand growth of 9%.
OPEC production cuts towards the end of 2006 and early 2007
in anticipation of slower demand growth and willingness of
the refiners to cut down on the inventories in view of
backwardation in oil prices resulted in decline in tanker
earnings in the 1st half of FY08. OPEC raised production in
November, which led to increased imports by US refiners to
replenish the depleted inventories, resulting in increased
loadings from the Arabian Gulf. Overall, tanker rates in 2007,
though healthy as compared to historical averages, fell during
the middle of the year as a result of subdued demand emanating
from high oil prices and an increasing world tanker fleet.
The world tanker fleet increased to 387.7 mdwt at the end of
FY08, higher by 5% YoY over 369.2 mdwt at the end of FY07.
The tanker orderbook stood at about 159.9 mdwt or 41.2% of
the fleet, at the end of March 2008.
2007 was the strongest year ever for the dry bulk markets.
Yearly average freight rates more than doubled compared to
the previous year. The dry-bulk markets in 2007 were
predominantly driven by the Chinese demand for commodities.
Chinese imports of iron ore grew by 57.3 million tones (MT)
over the 2006 level, totaling 383.6 MT, while steel production
moved up 73 MT to 487 MT in 2007. India too registered a
robust increase in steel production from 42 MT in 2006 to 49.5
MT in 2007.
Surging demand for both coking coal and steam coal led to
record waiting delays in Australian ports in the second quarter
of FY08. Drought in Australia led to increased grain shipments
from South America to Asia. Also, demand of cement clinker in
the Middle East firmed up significantly in 2007. Against this,
the world dry bulk fleet increased to 396.7 mdwt at the end of
FY08, 7% YoY growth. Though the fleet growth was robust,
it was not enough to service the trade growth adequately.
230
KEY POINTS
Supply: Determined by the addition to shipping capacity
Demand: Closely related to growth in world trade.
Barriers to entry: Highly capital intensive and adequate
cash flows required for funding working capital
requirements. Moreover, expertise and technical know-how
are critical factors.
Bargaining power of suppliers: Diminishing with gradual
increase in fleet supply and intense global competition.
Bargaining power of customers: High bargaining power
as competition is high in the industry.
C o m p e t i t i o n : C o m p e t i t i o n i s p r i c e b a s e d . H o w e v e r,
companies with younger fleet command a premium.
CURRENT SCENARIO AND PROSPECTS
After five years with persistent high economic growth it seems
like 2008 is bringing a slow-down, initiated by the US subprime
crisis. The global economy is projected to grow by about 4%
in CY08 down from last year's 5.2%. The demand for dry bulk
commodities is expected to grow by 4.5-5%. A total of 30.4
mdwt is due for delivery in CY08 resulting in a fleet growth of
about 7%. Average earnings may therefore be slightly lower
than FY08. However, due to periodic supply demand
mismatches, sharp volatility in freight markets may continue
during FY09 as well.
International Energy Agency (IEA) expects that the average oil
demand for CY08 in total will be 87.2 million barrels per day or
a 1.5% growth over CY07, hence showing belief in continued
demand growth. It is expected that the incremental demand
for tankers will be approximately 3% to 4%. With a total of
40.5 mdwt of tankers to be delivered in CY08 and about 18
mdwt of removals expected, the net fleet growth in tankers in
CY08 will be about 6%. Hence broadly the average earnings
for tanker markets in FY09 may not far exceed the averages
for FY08. However, on the larger size crude tankers, there is
an upside potential in spot earnings due to tighter tonnage
supply.
The sharp increase in domestic refining capacity and a pick up
in oil exploration activity globally will benefit the offshore
shipping lines as demand for their services picks up. As a
result of the commissioning of large domestic refining
capacities, the import of crude is expected to jump in the future.
This would benefit shipping majors.
Following some big accidents in seas, environmental
regulations have hardened for single hull tankers. The
International Maritime Organistaion (IMO) has stipulated that
all single hull ships be scrapped by 2010.
Under investment in earlier years, surge in Chinese growth
and scrapping of vessels built in 1970s have all created
conditions for a strong market for tankers. Further, the gap in
charter rates between single hull and double hull vessels is
widening as more charterers prefer double hull tonnage and
many countries impose restrictions on single hull tonnage. In
the coming years as single hull will be mandatorily required to
be phased out, the demand for double hull tonnage will be
strong.
All major Indian ports are presently working at 100% capacity,
whereas India further expects 7 to 8% growth rate. This would
translate into an exponential rise in sea borne trade from
current levels of about 400 MT to 900 MT by the year 2013.
The Indian Government plans to develop new ports, as well
as deepen the existing ports to absorb additional requirements.
 SHIPPING
GLOBAL COMPARISON
FY08/CY07 Unit GE Shipping Teekay Ship. OSG Great Offshore Tidewater
Sales US$ m 829 2,407 1,129 186 1,270
EBDITA US$ m 393 772 386 78 508
EBDITA margin % 47.4 32.1 34.2 41.8 40.0
Net profit US$ m 362 181 211 50 349
Net profit margin % 43.7 7.5 18.7 27.0 27.5
Return on equity % 33.6 6.7 11.6 27.6 18.1
Return on asset % 22.8 1.8 5.1 16.1 12.7
Price to sales (TTM) x 1.9 0.8 1.5 2.7 2.3
Price to book value x 1.2 0.8 1.1 2.8 1.5

TEEKAY SHIPPING (CANADA)

Founded in 1973, Teekay Shipping is a recognized international leader in energy shipping, carrying more than 10%
of the world's seaborne oil. The company operates in four segments - crude oil and product transportation (tanker),
shuttle and offshore services, gas transportation and marine services. In the tanker segment, Teekay is the largest
operator of medium sized tankers with a fleet of Aframaxes and Suezmaxes. As a tanker service provider, Teekay
connects upstream oil and gas production with their downstream refining and distribution. In the gas transportation
space, the company provides LNG transportation services under long-term fix rate contracts to major energy and
utility companies. Teekay is also one of the leading operators of offshore loading shuttle tankers, providing a variety
of services in storing and transferring offshore oil. As of December 31, 2007, the company's fleet consisted of
approximately 200 VLCC, Suezmax, small product, large product, and Aframax vessels.

OVERSEAS SHIPHOLDING (US)

Overseas Shipholding Group (OSG) has leading positions in the crude tanker, the product carrier and the US flag
markets. It is the only large tanker company with a significant presence in both the international flag and the US flag
markets. OSG also has presence in the dry bulk and LNG segments. The company operates VLCC (very large crude
carriers), Aframax and product vessels under the foreign flag, and Handysize and ATB (articulated tug barge) vessels
under the US flag. As of December 31, 2007, the company owned or operated a fleet of 112 vessels (aggregating
12.2 mdwt (million deadweight tonnes) and 432,400 cubic meters) of which 93 vessels operated in the international
market and 19 operated in the US market. In addition, the company also owned 44 newbuild chartered-in vessels.
OSG's customers include independent and state-owned oil companies, oil traders, and US and international
government entities. The company was founded in 1948 and is headquartered in New York.

TIDEWATER (US)

Tidewater, Inc., through its subsidiaries, provides offshore supply vessels and marine support services to the
energy industry. It offers services to support various phases of offshore exploration, development, and production,
including towing of and anchor handling of mobile drilling rigs and equipments; transporting supplies and personnel
necessary to sustain drilling, workover, and production activities; assisting in offshore construction activities; and
various specialized services, such as pipe laying, cable laying, and three dimensional seismic work. In addition, it
operates two shipyards in Houma, Louisiana, which construct, modify, and repair vessels. As of March 31, 2008, the
company had approximately 460 vessels, including 10 vessels operated through joint ventures, 53 vessels stacked,
and 20 vessels withdrawn from service. It has operations in the U.S. Gulf of Mexico, the Persian Gulf, the Caspian
Sea, and areas offshore Australia, Brazil, Egypt, India, Indonesia, Malaysia, Mexico, Trinidad, Venezuela, and West
Africa. The company was founded in 1956 and is headquartered in New Orleans, Louisiana.

Source: Yahoo Finance, Company reports TTM - Trailing twelve months

231
 Regd off: Ocean House, 134-A, Dr. Annie Besant Road, Worli, Mumbai - 400 018
GREAT EASTERN SHIPPING CO. LTD. E-Mail: shares@greatship.com
Web site: www.greatship.com
Telephone: (022) 6661 3000 Fax: (022) 2492 5900
SHIPPING SHETH Tr agent: Sharepro, Satam Estate, 3rd Floor, Chakala, Andheri (E), Mumbai-99
Chairman: K. M. Sheth SEC: Jayesh M. Trivedi AUD: Kalyaniwalla & Mistry
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1948 500620 GESCO:IN 10 367.1 -13.0 15.8 3.8 3.1 4.1 55,890.7 83.1 INE017A01032
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 29.8% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 0 (Rs)
Indian inst/Mut Fund : 13.0% Fx inflow Rs m 0 650
FIIs/GDR : 21.2% Fx outflow Rs m 0
Free float : 36.0% Net fx Rs m 0
Shareholders : 99,868
510
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
370
High Rs 278 353 572
Low Rs 131 171 194
Sales per share Rs 133.7 142.3 218.4
Earnings per share Rs 56.0 59.9 95.4 230
Cash flow per share Rs 74.6 77.5 118.8 DAILY
Dividends per share Rs 11.20 11.50 15.00 100 DMA
Dividend yield (eoy) % 5.5 4.4 3.9
90
Book value per share Rs 159.0 205.3 284.5
Shares outstanding (eoy) m 152.27 152.27 152.27 Sep-05 Jun-06 Mar-07 Dec-07 Sep-08
Bonus/Rights/Conversions OI - -
Price / Sales ratio x 1.5 1.8 1.8 No. of months 12 12 12
Avg P/E ratio x 3.7 4.4 4.0 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 2.7 3.4 3.2
Price / Book Value ratio x 1.3 1.3 1.3 From Operations Rs m 13,718 10,205 17,984
Dividend payout % 20.0 19.2 15.7 From Investments Rs m -6,610 -13,969 -20,089
Avg Mkt Cap Rs m 31,139 39,895 58,319 From Financial Activity Rs m -3,627 1,312 2,823
No. of employees `000 1 1 1 Net Cashflow Rs m 3,481 -2,452 719
Total wages/salary Rs m 1,606 1,843 2,465
Avg. sales/employee Rs Th 17,689.8 22,958.7 59,076.4 INTERIM RESULTS
Avg. wages/employee Rs Th 1,395.3 1,952.3 4,378.3 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 7,403.1 9,665.5 25,813.5 Net sales Rs m 6,013 6,043 7,380 7,024
Gross profit Rs m 4,423 3,618 3,896 3,831
INCOME DATA Gross profit margin % 73.6 59.9 52.8 54.5
Net Sales Rs m 20,361 21,673 33,260 Net profit Rs m 3,428 2,936 2,994 2,722
Other income Rs m 768 1,136 1,474 Net profit margin % 57.0 48.6 40.6 38.8
Total revenues Rs m 21,129 22,809 34,734
Gross profit Rs m 9,294 10,622 15,760 KEY DATA
Depreciation Rs m 2,831 2,684 3,551 Parameters Unit FY06 FY07 FY08
Interest Rs m 906 1,046 1,568 Vessels Nos 41 45 46
Profit before tax Rs m 6,325 8,028 12,115 Tonnage mdwt 2.9 3.3 3.1
Minority Interest Rs m 1 -1 0 Operating days* Days 15,327 14,922 17,017
Prior Period Items Rs m -49 54 -2 Voyage charter % of sales 53.0 55.0 53.0
Extraordinary Inc (Exp) Rs m 2,590 1,368 2,894 Time charter % of sales 47.0 45.0 47.0
*including inchartered vessels
Tax Rs m 346 325 474
Profit after tax Rs m 8,521 9,124 14,533
Gross profit margin % 45.6 49.0 47.4 NOTES
Effective tax rate % 5.5 4.0 3.9 Great Eastern Shipping (GES) is the largest private sector shipping company in India.
Net profit margin % 41.8 42.1 43.7 Currently, the company has a fleet of 46 vessels, including 33 tankers (12 crude
carriers, 19 product carriers and 2 LPG carriers) and 13 dry bulk carriers, with an
BALANCE SHEET DATA aggregate tonnage of 3.07 mdwt (million dead weight tonne). The company is
predominantly focused in the crude and product transportation segment, which
Current assets Rs m 16,245 15,378 15,794
together account for almost 80% of the total tonnage of the company (with the rest in
Current liabilities Rs m 3,593 3,481 4,988
the dry bulk segment).
Net working cap to sales % 62.1 54.9 32.5
Current ratio x 4.5 4.4 3.2 GES' FY08 topline growth of 29% YoY was largely a combined result of higher
Inventory Turnover Days 7 6 7 revenue days and strong freight rates (especially in the dry bulk segment). Revenue
Debtors Turnover Days 16 29 16 days for the fiscal stood at 17,017 days, higher by 14% YoY. As far as dry bulk rates
Net fixed assets Rs m 28,656 40,387 56,805 are concerned, these more than doubled during the year (from an average of US$
Share capital Rs m 1,523 1,523 1,523 17,500 per day in FY07 to US$ 38,400 per day in FY08). Better tonne-mile demand
"Free" reserves Rs m 16,636 22,090 34,265 for iron ore and coal and higher proportion of tonnage utilised in the spot markets
Net worth Rs m 24,204 31,260 43,317 have led to this spike in dry bulk rates during the fiscal (these rates increased by
Long term debt Rs m 18,562 21,782 27,344 127% YoY in 4QFY08). As far as the tanker business is concerned, freight rates were
largely flat. GES recorded a 2.3% contraction in its operating margins during FY08,
Total assets Rs m 46,576 57,360 75,774
largely a result of higher costs of in-chartered vessels. Net profits during the fiscal
Interest coverage x 8.0 8.7 8.7
grew by 43% YoY.
Debt to equity ratio x 0.8 0.7 0.6
Sales to assets ratio x 0.4 0.4 0.4 Going forward, GES plans to phase out all its single-hull tankers by 2010 as required
Return on assets % 22.0 19.2 22.8 by the IMO regulations. It has planned a capex of approx US$ 780 m to be spent over
Return on equity % 35.2 29.2 33.6 the next four years. Out of this, nearly US$ 104 m will be invested during the current
Return on capital % 22.9 19.8 23.5 fiscal, while the balance will be spread through out the next three years. On the
Exports to sales % 0.0 0.0 0.0 completion of this capex the company will have an additional capacity of 1.17 mdwt.
Imports to sales % 0.0 0.0 0.0
GET MORE INFO AT WWW.EQUITYMASTER.COM

232
 Regd off: Energy House, 81, Dr. D. N. Road, Mumbai - 400 001
GREAT OFFSHORE LIMITED E-Mail: badrinath_durvasula@greatoffshore.com
Web site: www.greatoffshore.com
Telephone: (022) 6635 2222 Fax: (022) 2267 3639
SHIPPING SHETH Tr agent: TSR Darashaw, Haji Moosa Indust. Est, E. Moses Rd, Mumbai - 11
Chairman: Sevantilal J. Parekh SEC: Badrinath Durvasula AUD: Kalyaniwalla & Mistry
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
2006 532786 GOFF:IN 10 535.0 26.8 -36.9 10.1 6.8 3.0 20,392.3 81.1 INE892H01017
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 20.1% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 0 (Rs)
Indian inst/Mut Fund : 23.1% Fx inflow Rs m 5,748 1200
FIIs/GDR : 13.0% Fx outflow Rs m 4,113
Free float : 43.9% Net fx Rs m 1,635
Shareholders : 108,103
975
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
750
High Rs NM 905 1,150
Low Rs NM 502 560
Sales per share Rs 101.9 152.7 195.7
Earnings per share Rs 25.5 38.1 52.9 525
DAILY
Cash flow per share Rs 37.3 56.7 78.8
Dividends per share Rs 10.00 8.00 16.00 100 DMA
Dividend yield (eoy) % NM 1.1 1.9
300
Book value per share Rs 131.1 162.0 191.9
Shares outstanding (eoy) m 38.12 38.12 38.12 Dec-06 May-07 Oct-07 Apr-08 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x NM 4.6 4.4 No. of months 12 12 12
Avg P/E ratio x NM 18.5 16.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x NM 12.4 10.9
Price / Book Value ratio x NM 4.3 4.5 From Operations Rs m 1,773 2,435 1,807
Dividend payout % 39.3 21.0 30.2 From Investments Rs m -2,173 -5,934 -1,910
Avg Mkt Cap Rs m NM 26,817 32,593 From Financial Activity Rs m 857 3,055 2,761
No. of employees `000 <500 <500 NA Net Cashflow Rs m 457 -444 2,658
Total wages/salary Rs m 759 1,144 1,540
Avg. sales/employee Rs Th 16,891.3 20,645.4 NA INTERIM RESULTS
Avg. wages/employee Rs Th 3,300.0 4,056.7 NA 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 4,221.7 5,148.9 NA Net sales Rs m 1,523 1,940 2,030 2,027
Gross profit Rs m 722 1,012 910 842
INCOME DATA Gross profit margin % 47.4 52.2 44.8 41.5
Net Sales Rs m 3,885 5,822 7,459 Net profit Rs m 413 514 424 356
Other income Rs m 31 79 555 Net profit margin % 27.1 26.5 20.9 17.6
Total revenues Rs m 3,916 5,901 8,014
Gross profit Rs m 1,609 2,610 3,116 KEY DATA
Depreciation Rs m 449 709 986 Parameters Unit FY06 FY07 FY08
Interest Rs m 164 342 675 Offsgore support vessels (OSVs) Nos 19 25 26
Profit before tax Rs m 1,027 1,638 2,010 Drilling vessels Nos 2 2 2
Minority Interest Rs m 0 0 0 Harbour tugs Nos 11 11 11
Prior Period Items Rs m 0 0 0 Construction barge Nos 1 1 1
Extraordinary Inc (Exp) Rs m 0 0 180
Tax Rs m 56 186 173
NOTES
Profit after tax Rs m 971 1,452 2,017
Gross profit margin % 41.4 44.8 41.8 Great Offshore Ltd. (GOL), the erstwhile offshore division of Great Eastern Shipping
Effective tax rate % 5.5 11.4 8.6 is India's largest integrated offshore service provider. The company operates in two
broad segments - 'Port & Terminal Services' and 'Oil & Gas Offshore'. While the
Net profit margin % 25.0 24.9 27.0
former involves providing berthing, unberthing, towing of vessels and other harbour
BALANCE SHEET DATA services to ports, the latter involves exploratory drilling, offshore support and
construction services to oil & gas companies. The company's fleet, comprising of two
Current assets Rs m 2,100 2,291 6,583 drilling vessels, twenty six offshore support vessels, eleven harbour tugs, one
Current liabilities Rs m 1,081 1,573 2,460 construction barge and one heavy load carrier, totaling forty one (41) vessels are
Net working cap to sales % 26.2 12.3 55.3 deployed with global and Indian charters. Petronas Carigali, Total E & P, Energy
Current ratio x 1.9 1.5 2.7 Africa Kudu (Tullow Oil), P T Aquaria Shipping, Jamil Operations & Maintenance Co.
Inventory Turnover Days 7 4 4 and Dockwise Shipping B V, etc. are some of the company's existing global clients
Debtors Turnover Days 72 78 86 whereas Hercules Offshore, Allseas Marine and Leighton Contractor (India) Pvt. Ltd.
Net fixed assets Rs m 7,817 12,890 13,905 are some of the Indian clients.
Share capital Rs m 381 381 381
"Free" reserves Rs m 4,430 5,404 6,046 During FY08, GOL reported a 26% YoY growth in topline, driven by higher revenue
days for rigs. Its operating margins however declined to 45.8% from 48.5% in FY07.
Net worth Rs m 4,997 6,175 7,315
GOL's bottomline grew by 44% YoY, including extraordinary income in the form of
Long term debt Rs m 3,529 7,393 9,453
profit on sale of vessels. Excluding the same, net profits were up 31% YoY during the
Total assets Rs m 9,918 15,181 20,674 fiscal.
Interest coverage x 7.3 5.8 4.0
Debt to equity ratio x 0.7 1.2 1.3 Rapidly rising demand for hydrocarbons and volatile oil and gas prices are providing
Sales to assets ratio x 0.4 0.4 0.4 fundamental strength to the exploration & production (E&P) activities globally. As a
Return on assets % 13.3 13.2 16.1 consequence, the demand for offshore assets and other services is on the rise. As
Return on equity % 19.4 23.5 27.6 far as the domestic market is concerned, rapid growing demand and spiraling
Return on capital % 14.0 14.6 17.1 hydrocarbon import bill poses a major challenge in sustaining economic growth. With
Exports to sales % 0.0 0.0 0.0 ageing oil fields, domestic exploration programmes have never been so strong. With
Imports to sales % 0.0 0.0 0.0 the momentum expected to sustain, GOL is likely to benefit going forward
GET MORE INFO AT WWW.EQUITYMASTER.COM

233
 Regd off: 3rd Floor, Mittal Tower, B - Wing, Nariman Point, Mumbai - 21
MERCATOR LINES LIMITED E-Mail: investors@mercator.in
Web site: www.mercator.com
Telephone: (022) 6637 3333 Fax: (022) 6637 3344
SHIPPING MISCELLANEOUS Tr agent: Intime Spectrum, C-13, Pannalal Silk Mills Compd., LBS Rd, Mumbai - 78
Chairman: H. K. Mittal SEC: Supriya Joshi AUD: Nayak & Kishnadwala
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1983 526235 MRLN:IN 1 81.7 -12.4 42.6 5.9 3.9 1.3 19,280.4 1,574.6 INE934B01028
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 37.9% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 2,218 (Rs)
Indian inst/Mut Fund : 13.6% Fx inflow Rs m 2,690 180
FIIs/GDR : 18.6% Fx outflow Rs m 6,021
Free float : 29.8% Net fx Rs m -3,331
Shareholders : 73,503
140
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
100
High Rs 61 55 177
Low Rs 32 29 34
Sales per share Rs 42.6 57.9 61.9
Earnings per share Rs 10.4 6.9 14.0 60
Cash flow per share Rs 15.2 12.3 21.1 DAILY
Dividends per share Rs 1.80 1.00 1.10 100 DMA
Dividend yield (eoy) % 3.9 2.4 1.0
20
Book value per share Rs 25.8 30.3 69.0
Shares outstanding (eoy) m 194.04 194.04 234.90 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions B3:2,W - FCCB
Price / Sales ratio x 1.1 0.7 1.7 No. of months 12 12 12
Avg P/E ratio x 4.5 6.1 7.6 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 3.1 3.4 5.0
Price / Book Value ratio x 1.8 1.4 1.5 From Operations Rs m 1,020 3,630 10,478
Dividend payout % 17.4 14.4 7.9 From Investments Rs m -7,161 -5,203 -15,031
Avg Mkt Cap Rs m 9,023 8,150 24,782 From Financial Activity Rs m 7,099 4,179 9,329
No. of employees `000 <500 <500 <500 Net Cashflow Rs m 958 2,606 4,776
Total wages/salary Rs m 272 231 384
Avg. sales/employee Rs Th 211,846.2 207,925.9 223,830.8 INTERIM RESULTS
Avg. wages/employee Rs Th 6,974.4 4,277.8 5,907.7 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 51,512.8 24,888.9 50,415.4 Net sales Rs m 3,631 3,722 4,664 4,929
Gross profit Rs m 1,296 1,266 1,396 1,785
INCOME DATA Gross profit margin % 35.7 34.0 29.9 36.2
Net Sales Rs m 8,262 11,228 14,549 Net profit Rs m 905 457 1,081 759
Other income Rs m 183 249 1,187 Net profit margin % 24.9 12.3 23.2 15.4
Total revenues Rs m 8,445 11,477 15,736
Gross profit Rs m 3,451 3,029 5,874 KEY DATA
Depreciation Rs m 937 1,038 1,675 Parameters Unit FY06 FY07 FY08
Interest Rs m 694 897 1,620 Freight income % of shipping rev. 45.1 61.0 56.1
Profit before tax Rs m 2,003 1,343 3,766 Charter income % of shipping rev. 52.7 35.8 41.3
Minority Interest Rs m 0 -1 -299 Despatch & demurrage % of shipping rev. 2.2 3.3 2.7
Prior Period Items Rs m 28 -4 -428 Bunker consumed % of shipping rev. 10.4 13.0 15.8
Extraordinary Inc (Exp) Rs m 5 40 328 Vessel/equipment hire charges % of shipping rev. 27.5 38.5 21.8
Tax Rs m 27 34 90
NOTES
Profit after tax Rs m 2,009 1,344 3,277
Gross profit margin % 41.8 27.0 40.4 Mercator Lines is engaged in shipping and related activities. The company operates
Effective tax rate % 1.3 2.5 2.4 in four business segments - shipping, offshore, logistic solutions and mining. At the
end of March 2008, it owned a total of 13 vessels of aggregate tonnage of 1.1 m
Net profit margin % 24.3 12.0 22.5
deadweight tonnes (mdwt) consisting of 1 VLCC, 1 Suezmax tanker, 5 Aframax
BALANCE SHEET DATA tankers, 2 MR Tankers, 1 Panamax, and 3 dredgers. Seven vessels of aggregate
tonnage of 543,105 metric tons were owned by subsidiary of the company. Its
Current assets Rs m 4,733 7,985 15,077 subsidiaries include Mercator International Pte. Ltd., Mercator Offshore Ltd., Mercator
Current liabilities Rs m 672 2,073 8,654 Oil and Gas Ltd., Varsha Marine Pte Limited and Mercator Lines (Singapore) Ltd.
Net working cap to sales % 49.2 52.7 44.1
Current ratio x 7.0 3.9 1.7 The company grew its consolidated sales by 39% YoY during FY08, while its
Inventory Turnover Days 10 8 7 operating profits were up a whopping 123% YoY. Profits after tax grew by 165% YoY.
Debtors Turnover Days 34 60 52 The key driver of this exciting consolidated performance of the company was timely
Net fixed assets Rs m 13,454 17,848 32,401 expansion of the fleet, culminating in achievement of 99% fleet utilisation. Further, in
Share capital Rs m 189 189 235 order to minimise earnings volatility, it has employed 70% of its shipping fleet in long-
"Free" reserves Rs m 2,680 4,205 9,425 term fixed charter rates, while another 30% of the fleet is deployed in spot markets to
cash in on high spot rates.
Net worth Rs m 5,010 5,884 16,207
Long term debt Rs m 10,074 13,409 19,883 Mercator Lines is planning to take over a 50 m tonne coal mine in Indonesia. For the
Total assets Rs m 19,185 26,704 47,521 proposed acquisition, the company is looking to spend between US$ 50 to 75 m. The
Interest coverage x 3.9 2.5 3.3 company has rendered its Singapore-based subsidiary named Mercator Lines
Debt to equity ratio x 2.0 2.3 1.2 Singapore for coal mining activities. Its foray into dredging and coal mining business
Sales to assets ratio x 0.4 0.4 0.3 coupled with demand for vessels, its transformation into complete logistics solution
Return on assets % 17.9 11.6 13.6 provider and contract renewals at higher rates will provide a boost to the earnings
Return on equity % 40.1 22.8 20.2 growth of the company going forward. However, any downturn in commodity cycle
Return on capital % 18.1 11.8 13.8 with addition of new vessels will impact freight rates, which in turn could impact
Exports to sales % 0.0 0.0 0.0 earnings of the company.
Imports to sales % 77.8 25.4 15.2
GET MORE INFO AT WWW.EQUITYMASTER.COM

234
 Regd off: Laxmi Building, 6, Shoorji Vallabhdas Marg, Ballard Estate, Mumbai - 1
VARUN SHIPPING COMPANY LIMITED E-Mail: secretarial@varunship.com
Web site: www.varunship.com
Telephone: (022) 6635 0100/109 Fax: (022) 6635 0274
SHIPPING KHATAU Tr agent: Datamatics Fin., Plt A-16&A-17 MIDC, Part B Crosslane, Mumbai-93
Chairman: Dilip D. Khatau SEC: Manali Parekh AUD: Sorab S. Engineer & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1971 500465 VRNS:IN 10 66.4 -6.1 4.3 4.6 2.4 7.5 10,458.0 16.5 INE702A01013
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 42.7% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 0 (Rs)
Indian inst/Mut Fund : 5.8% Fx inflow Rs m 0 116
FIIs/GDR : 18.2% Fx outflow Rs m 0
Free float : 33.3% Net fx Rs m 0
Shareholders : 84,584
97
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
78
High Rs 92 99 111
Low Rs 33 50 51
Sales per share Rs 56.4 47.9 62.2
Earnings per share Rs 16.0 10.3 15.2 59
Cash flow per share Rs 26.8 21.7 29.3 DAILY
Dividends per share Rs 4.50 4.50 5.00 100 DMA
Dividend yield (eoy) % 7.2 6.0 6.2
40
Book value per share Rs 42.4 53.1 63.0
Shares outstanding (eoy) m 117.30 142.76 150.01 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions WC PI,WC WC
Price / Sales ratio x 1.1 1.6 1.3 No. of months 12 12 12
Avg P/E ratio x 3.9 7.2 5.3 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 2.3 3.4 2.8
Price / Book Value ratio x 1.5 1.4 1.3 From Operations Rs m 4,321 3,087 6,644
Dividend payout % 28.2 43.7 33.0 From Investments Rs m -10,659 -7,977 -9,038
Avg Mkt Cap Rs m 7,331 10,636 12,151 From Financial Activity Rs m 5,656 5,187 2,376
No. of employees `000 1 1 1 Net Cashflow Rs m -683 297 -18
Total wages/salary Rs m 550 808 992
Avg. sales/employee Rs Th 9,691.1 11,465.7 12,845.7 INTERIM RESULTS
Avg. wages/employee Rs Th 805.3 1,353.4 1,366.4 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 2,745.2 2,464.0 3,135.0 Net sales Rs m 2,014 2,299 2279 2,086
Gross profit Rs m 1,074 1,477 1179 1,148
INCOME DATA Gross profit margin % 53.3 64.2 51.7 55.0
Net Sales Rs m 6,619 6,845 9,326 Net profit Rs m 577 737 -323 213
Other income Rs m 15 20 48 Net profit margin % 28.6 32.1 -14.2 10.2
Total revenues Rs m 6,634 6,865 9,374
Gross profit Rs m 3,898 3,845 5,748 KEY DATA
Depreciation Rs m 1,268 1,629 2,120 Parameters Unit FY06 FY07 FY08
Interest Rs m 742 1,192 1,395 Vessels Nos 19 19 20
Profit before tax Rs m 1,903 1,044 2,281 LPG % of sales 69.0 72.8 62.7
Minority Interest Rs m 0 0 0 Tankers (crude and product) % of sales 26.0 22.0 17.8
Prior Period Items Rs m 0 0 0 Time charter % of sales 22.2 32.8 58.8
Extraordinary Inc (Exp) Rs m 1 497 19 Pool charter % of sales 33.8 40.0 24.6
Tax Rs m 29 70 24
NOTES
Profit after tax Rs m 1,875 1,471 2,276
Gross profit margin % 58.9 56.2 61.6 Varun Shipping Company Ltd. (VSC) is the largest LPG tanker operator in the
Effective tax rate % 1.5 6.7 1.1 country, accounting for 80% of the total LPG tonnage under the Indian flag. In
addition to LPG, VSC has presence in crude, products and offshore segments. The
Net profit margin % 28.3 21.5 24.4
current fleet comprises 11 LPG carriers, 1 product tanker, 3 crude oil tankers and 5
BALANCE SHEET DATA AHTS (anchor handling towing and supply vessels).

Current assets Rs m 1,123 1,811 1,552 In FY08, on a consolidated basis, while VSCs topline grew by 36% YoY, net profits
Current liabilities Rs m 1,075 878 1,575 grew by a robust 56% YoY. This growth was backed by the more than six-fold growth
Net working cap to sales % 0.7 13.6 -0.2 in revenues from the offshore segment. The same has been the result of acquisition
Current ratio x 1.0 2.1 1.0 of new vessels. The operating margins of the company improved from 56% in FY07
Inventory Turnover Days 2 2 5 to 58% in FY08 on account of change in revenue mix. Time charter pool operated for
Debtors Turnover Days 26 28 22 nearly 77% of the vessel revenue days.
Net fixed assets Rs m 17,521 24,385 31,243
Increase in demand for both wet and dry bulk products have resulted in substantial
Share capital Rs m 1,177 1,482 1,500
increase in shipping activities. About 90% of the world trade in volumes is carried
"Free" reserves Rs m 1,915 3,835 5,105
through sea transportation, hence the growth in cargo availability has fuelled an
Net worth Rs m 4,976 7,574 9,450 impressive growth in shipping fleet and the world cargo carrying tonnage. In January
Long term debt Rs m 8,114 17,875 22,008 2008, the company had outlined investment of US$ 400 m towards capacity
Total assets Rs m 18,827 26,401 33,017 expansion programme and acquired 1 modem AHTS vessel MV Suvama in March,
Interest coverage x 3.6 1.9 2.6 2008. VSC's move to expand fleet capacity will enable it to maintain growth pace and
Debt to equity ratio x 1.6 2.4 2.3 market share. The threat of over supply in one particular sector may be hedged by
Sales to assets ratio x 0.4 0.3 0.3 VSC's diversified expansion plans into high end sectors. While VSC is well positioned
Return on assets % 20.0 10.5 11.7 domestically and international in terms of tonnage, the cost disadvantages (on
Return on equity % 37.7 19.4 24.1 account of tax disincentives - direct and indirect) are not providing a level playing
Return on capital % 20.2 10.7 11.7 field.
Exports to sales % 0.0 0.0 0.0
Imports to sales % 0.0 0.0 0.0
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235
 SOFTWARE
India's IT industry can be divided into five main components,
viz. software products, IT services, engineering and R&D
services, ITES (IT-enabled services) and hardware. Export
revenues continue to drive growth. Amongst the export
revenues, project-based services accounted for more than
50% of the Indian IT services exports. Multi-year annuity based
outsourcing agreements are expected to increase going
forward. However, the majority share of the project based
revenues is going to continue on the back of custom application
development and application management.
Cost leadership has been the competitive edge of the Indian
software sector over the last few years. However, this seems
to be threatened now by MNCs who are replicating the Indian
outsourcing model and setting up bases in the country. Going
forward, the advantage of low employee costs could peter
out and the sector could get commoditised. Increased
competition within the segment could lead players to ramp up
selling and marketing expenses in order to acquire new
customers and improve the market share, which in turn will
lead to further pressure on margins.
Increasing competition, pressure on billing rates and increasing
commoditisation of lower-end application development and
maintenance (ADM) services are among the key reasons
forcing the Indian software industry to make a fast move up
the software value chain.
The software services segment of the industry continues to
grow by leaps and bounds. However, growth in the domestic
market has been relatively staid. Given that India is among the
fastest-growing economies in the world and the burgeoning
IT budgets of India Inc., focusing on the domestic market will
definitely be an opportunity to take advantage of.
FY08
As per NASSCOM 'Strategic Review 2008' report, the Indian IT
industry is estimated to have grown by 33% in FY08 and
generate revenues of US$ 64 bn. The domestic market is also
growing as robustly as the export of IT services from India. Over the next 3-4 years, the total global spending on IT is
Indian IT services exports (excluding revenues earned from
the export of software products, engineering and R&D
services, ITES and hardware) are estimated to have grown at
a four-year CAGR of 32% to US$ 40.8 bn in FY08.
The ITES-BPO industry continued to grow at a scorching pace,
with India retaining its market leadership position in this space. The integration of IT-BPO contracts is expected to become
The movement up the value chain continues in this space as
well, as companies move from voice-based services to non-
voice services. As per IDC and NASSCOM, the global BPO
industry is expected to grow from a size of US$ 462 bn in
2007 (29% share of global technology spending) to US$ 677 IT being a resource-intensive industry, human resources will
bn (34% share) in 2011. The BPO industry in India, which
currently employs 700,000 professionals and generates
revenues of US$ 11 bn, is expected to grow at a CAGR of
38% over the next 5 years.
The broad trend in the industry globally is that the deal sizes Billing rates are expected to be stable, with the major clients
are getting smaller. This has suited the Indian industry
perfectly, as it does not as yet have the capabilities, scale
and resources to execute huge billion dollar deals. On the
other side, most Tier-I companies walked away with the high
profile deals and the gap between Tier-I and Tier-II companies
widened in FY08. The cross-movement of work and labour
has created a competitive dynamic for cost structure and
knowledge leadership of concept, technology, and process
innovation. Indian IT firms (especially the top notch Indian firms
like TCS, Infosys and Wipro) are increasingly competing against
top global players such as IBM, Accenture and EDS for large
deals. The top Indian IT companies are more frequently being
236
invited to bid on large deals that were earlier closed to them.
India's top outsourcers are competing effectively with the top
three global service providers on large deals.
KEY POINTS
Supply: Abundant supply across segments, mainly lower-
end, such as ADM (application development and
maintenance). Lower in higher-end areas like IT/business
consulting, but competition is very tough.
Demand: Demand largely depends on the state of the global
economy and willingness of corporations to opt for new
software services and greater discretionary spending rather
than consolidating existing systems.
Barriers to entry: Low in the ADM segment, which is prone
to relatively easy commoditisation. In high-end services like
IT/business consulting, domain expertise creates a barrier.
The size of a particular company/scalability also creates
barriers to entry, as these firms have built up long-term
relationships with major clients and to take business away
from them is not easy.
Bargaining power of suppliers: Low, due to intense
competition (oversupply), particularly in the lower-end ADM
space. Low differentiating power is also another reason.
High, at the higher end of the value chain (services like
consulting and systems integration).
Bargaining power of customers: High, mainly due to
intense competition among suppliers. Though, lower in higher-
end services like consulting and package implementation.
Competition: Competition is global in nature and stretches
across boundaries and geographies. It is expected to
intensify due to the attempted replication of the Indian
offshoring model by MNC IT majors.
CURRENT SCENARIO AND PROSPECTS
expected to grow at a CAGR of 6%. The services spend (IT
services and ITES/BPO) is expected to grow faster as
compared to the other segments. In particular, the offshore
outsourcing story is expected to continue to play out, as firms
look for quality work done at lower cost.
more common, as clients look out for end-to-end service
providers. Companies like Infosys, TCS, Wipro, Satyam, HCL
Technologies and MphasiS, all of which are also into BPO, will
benefit from this trend.
play a major role in times to come. Companies will have to
manage attrition rates in order to preserve margins, firms will
have to maintain workforce at optimum level, improve utilization
rates and control selling, general and administrative expenses.
giving no leeway on any possible increases. The increases
by and large come from the new clients. Given that new clients
contribute less than 10% to overall revenues for most IT
companies, this will not have any major impact. Higher rates
will be a factor of the business mix. As IT companies move
higher up the value chain, they will get better billing rates for
services such as consulting.
Rupee's volatility is expected to remain a major concern for
Indian IT companies having significant offshore presence.
Coupled with this, higher employee costs are expected to take
a toll on the companies' profitability levels.
 SOFTWARE
GLOBAL COMPARISON
FY08/CY07 Unit Infosys Wipro TCS IBM EDS Microsoft
Revenues US$ m 4,142 4,982 5,673 98,786 22,134 60,420
EBDITA US$ m 1,300 996 1,477 31,413 1,132 22,492
EBDITA margin % 31.4 20.0 26.0 31.8 5.1 37.2
Net profit US$ m 1,156 819 1,255 10,418 729 17,681
Net profit margin % 27.9 16.4 22.1 10.5 3.3 29.3
Return on capital employed % 60.1 27.7 38.6 20.2 5.7 41.2
Return on equity % 34.3 30.0 47.8 36.6 7.5 48.7
Price to earnings (TTM) x 19.1 20.2 15.0 15.2 60.7 13.3
Price to book value x 6.4 5.7 6.1 5.6 5.1 6.5
Price to sales (TTM) x 5.3 3.4 3.3 1.6 2.2 3.9

IBM (US)

IBM, founded in 1910, is headquartered in the US and is the world's largest computer company. It was formerly
known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines
Corporation in 1924. The company's Global Services segment provides consulting services for application and
systems integration, client relationship management, financial management and supply chain management. This
is the major arm of the company and contributes to nearly 50% of its revenues. IBM also provides system and
component design services, outsourcing of clients' design teams, and technology and manufacturing consulting
services, apart from data storage products, including disk, tape, and storage area networks. The company has
started concentrating on services as a key engine of growth. The company has also been concentrating on offshoring
in a big way, which is a relatively new business model in the global software industry. The company earned net
sales and profits of US$ 96 bn and US$ 10 bn in 2007.

EDS (US)

EDS, formerly Electronic Data Systems, was founded in 1962. It is based in Texas, US. It is one of the largest IT
companies in the world, spreading across 57 countries. The company employs around 130,000 people and offers
a wide range of IT and BPO services. In August 2008, HP completed the acquisition of EDS, creating a leading force
in technology services. EDS delivers a broad portfolio of information technology and business process outsourcing
services to clients in the manufacturing, financial services, healthcare, communications, energy, transportation,
and consumer and retail industries and to governments around the world. Last year, EDS acquired the Indian IT
services and BPO major, Mphasis to take advantage of low cost offshoring like its peers. As a business group, EDS
will be one of the market's leading outsourcing services providers - with the ability to provide complete lifecycle
capabilities in health care, government, manufacturing, financial services, energy, transportation, consumer &
retail, communications, and media & entertainment. Post acquisition, the combined revenue of HP and EDS for the
IT services business will be more than US$ 38 bn (in 2007, EDS and HP recorded IT services revenue of US$22 bn
and US$ 16.6 bn respectively), which will take HP much closer to IBM (IT services revenue of US$ 54 bn in 2007) in
the US$ 748 bn global technology services market.

MICROSOFT (US)

Microsoft Corporation, the world's most valuable technology company by market capitalisation, was founded in
1975 by Bill Gates. The company is headquartered in Redmond, Washington. Microsoft engages in the development,
manufacture, license, and support of software products for computing devices. It operates in three divisions -
Platforms and Services, Business, and Entertainment and Devices. The company also offers operating systems for
servers, personal computers, server applications and developer tools, training and certification services. Its products
provide messaging and collaboration, database management, e-commerce, and mobile information access
capabilities. It also offers consulting services. Microsoft also provides online communication and information
services, including email and instant messaging, and online search and premium content. The company earned
net sales and profits of US$ 60 bn and US$ 18 bn for the year ended June 2008.

Source: Yahoo Finance, Company reports TTM - Trailing twelve months

237
 Regd off: Tower 5, 3 - 6 Floor, Intl. Infotech Park, Vashi, Navi Mumbai - 703
3I INFOTECH LIMITED E-Mail: co@3i-infotech.com
Web site: www.3i-infotech.com
Telephone: (022) 6792 8000 Fax: (022) 6792 8094
SOFTWARE MISCELLANEOUS Tr agent: In-house
Chairman: Hoshang N. Sinor SEC: Shivanand R. Shettigar AUD: Lodha & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1994 532628 III:IN 10 110.1 -3.5 -25.9 8.1 7.2 1.4 14,378.0 24.2 INE748C01020
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 39.5% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 0
(Rs)
Indian inst/Mut Fund : 24.4% Fx inflow Rs m 1,928 172
FIIs/GDR : 8.8% Fx outflow Rs m 1,232
Free float : 27.3% Net fx Rs m 696
Shareholders : 98,336
139
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
106
High Rs 201 324 165
Low Rs 88 125 84
Sales per share Rs 78.8 116.4 92.3
Earnings per share Rs 10.8 18.4 13.5 73
Cash flow per share Rs 15.7 21.4 15.4 DAILY
Dividends per share Rs 2.00 2.00 1.50
100 DMA
Dividend yield (eoy) % 1.4 0.9 1.2
40
Book value per share Rs 50.5 70.3 49.3
Shares outstanding (eoy) m 53.04 56.30 130.54 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions PI BC,ESOS B1:1,FCCB
Price / Sales ratio x 1.8 1.9 1.3 No. of months 12 12 12
Avg P/E ratio x 13.4 12.2 9.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 9.2 10.5 8.1
Price / Book Value ratio x 2.9 3.2 2.5 From Operations Rs m 264 1,153 2,877
Dividend payout % 18.5 10.8 11.1 From Investments Rs m -1,064 -4,448 -6,325
Avg Mkt Cap Rs m 7,664 12,639 16,252 From Financial Activity Rs m 3,224 1,650 5,106
No. of employees `000 3 4 7 Net Cashflow Rs m 2,424 -1,645 1,658
Total wages/salary Rs m 1,679 2,780 4,944
Avg. sales/employee Rs Th 1,671.2 1,638.3 1,854.3 INTERIM RESULTS
Avg. wages/employee Rs Th 671.6 695.0 760.6 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 229.6 259.5 271.7 Net sales Rs m 2,779 3,173 3,499 4,685
Gross profit Rs m 559 657 744 916
INCOME DATA Gross profit margin % 20.1 20.7 21.3 19.6
Net Sales Rs m 4,178 6,553 12,053 Net profit Rs m 401 484 501 587
Other income Rs m 62 155 183 Net profit margin % 14.4 15.3 14.3 12.5
Total revenues Rs m 4,240 6,708 12,236
Gross profit Rs m 858 1,321 2,549 KEY DATA
Depreciation Rs m 261 169 244 Parameters Unit FY06 FY07 FY08
Interest Rs m 80 209 505 Products % of revenues 46.7 49.5 49.0
Profit before tax Rs m 579 1,098 1,983 Services % of revenues 53.3 42.0 39.0
Minority Interest Rs m -2 -7 -66 BFSI % of products 33.5 40.6 41.0
Prior Period Items Rs m 0 0 -1 ERP % of products 13.2 9.0 8.0
Extraordinary Inc (Exp) Rs m 0 0 0 Employee cost % of revenues 33.7 37.4 40.0
Tax Rs m 3 53 150
NOTES
Profit after tax Rs m 574 1,038 1,766
Gross profit margin % 20.5 20.2 21.1 3i Infotech is a mid-size IT company focusing mainly on the banking, financial
Effective tax rate % 0.5 4.8 7.6 services and insurance (BFSI) vertical. The company earns revenues from products
as well as IT services. It has products for the BFSI space and also has an ERP
Net profit margin % 13.7 15.8 14.7
product suite, providing solutions for the retail, manufacturing, distribution, trading,
BALANCE SHEET DATA fashion, and automotive, pharmaceutical and chemical industries. During the period
FY03 to FY08, the company grew its revenues and net profits at compounded rates
Current assets Rs m 5,167 5,780 10,185 of 41% and 73% respectively.
Current liabilities Rs m 1,210 2,037 3,023
Net working cap to sales % 94.7 57.1 59.4 3i Infotech has devised a mix of organic and inorganic growth strategy, which has
Current ratio x 4.3 2.8 3.4 done well for it over the past 2-3 years. It has acquired close to 25 companies since
Inventory Turnover Days 0 0 0 2000. Out of these, 10 were acquired in the last financial year itself. The company
Debtors Turnover Days 100 106 82 recorded a 84% YoY growth in topline during FY08. This was a combined effort of
Net fixed assets Rs m 2,238 1,554 2,931 strong performances from both the services and products divisions. 3i's operating
Share capital Rs m 530 563 1,305 profits grew by 93% YoY during the fiscal leading to its operating margins expansion
"Free" reserves Rs m 2,161 3,397 4,686 by 1% YoY. It grew its net profits by 70% YoY during FY08. However, the net profit
margin contracted by 1.1% owing to higher interest and tax expenses.
Net worth Rs m 2,679 3,960 6,441
Long term debt Rs m 2,993 5,713 12,337 The company's products are being accepted across different industries and this is
Total assets Rs m 8,110 13,118 23,180 evident from the huge order book, which the company has built upon. The current
Interest coverage x 8.2 6.3 4.9 order book stands at Rs 3.8 bn for products and Rs 4.7 bn for services, which has to
Debt to equity ratio x 1.1 1.4 1.9 be executed within a period of 12 months. We believe that the company is well
Sales to assets ratio x 0.5 0.5 0.5 equipped to face any slowdown in the US economy as it draws only 27% of its
Return on assets % 11.5 12.9 12.1 revenues from the North American region. It is focusing on the Asian (especially
Return on equity % 21.4 26.2 27.4 India) and other emerging markets for growth, which is a positive.
Return on capital % 11.6 13.4 12.9
Exports to sales % 0.0 0.0 0.0
Imports to sales % 9.6 1.1 0.0
GET MORE INFO AT WWW.EQUITYMASTER.COM

238
 Regd off: CMC Centre, Old Mumbai Highway, Gachibowli, Hyderabad - 500 032
CMC LIMITED E-Mail: investor.relations@cmcltd.com
Web site: www.cmcltd.com
Telephone: (011) 2373 6151 Fax: (011) 2373 6159
SOFTWARE TATA Tr agent: Karvy Computershare, 46, Avenue 4, St. No. 1, Banjara Hills, Hyd. - 34
Chairman: S. Ramadorai SEC: Vivek Agarwal (Head-Legal) AUD: S. B. Billimoria & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1975 517326 CMC:IN 10 563.8 10.5 -49.8 9.2 8.5 2.0 8,540.8 0.5 INE314A01017
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 51.1% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 2,072
(Rs)
Indian inst/Mut Fund : 23.0% Fx inflow Rs m 1,425 1650
FIIs/GDR : 14.7% Fx outflow Rs m 2,412
Free float : 11.2% Net fx Rs m -987
Shareholders : 32,200
1300
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
950
High Rs 676 1,429 1,550
Low Rs 452 335 528
Sales per share Rs 584.8 711.8 700.0
Earnings per share Rs 32.0 45.7 61.0 600
Cash flow per share Rs 38.0 51.2 66.2 DAILY
Dividends per share Rs 5.00 8.00 11.00 100 DMA
Dividend yield (eoy) % 0.9 0.9 1.1
250
Book value per share Rs 140.0 157.4 206.4
Shares outstanding (eoy) m 15.15 15.15 15.15 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 1.0 1.2 1.5 No. of months 12 12 12
Avg P/E ratio x 17.6 19.3 17.0 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 14.8 17.2 15.7
Price / Book Value ratio x 4.0 5.6 5.0 From Operations Rs m 214 1,575 1,024
Dividend payout % 15.6 17.5 18.0 From Investments Rs m 161 -356 -88
Avg Mkt Cap Rs m 8,545 13,362 15,741 From Financial Activity Rs m -265 -619 -34
No. of employees `000 3 4 5 Net Cashflow Rs m 110 599 902
Total wages/salary Rs m 1,952 2,206 2,371
Avg. sales/employee Rs Th 2,582.0 3,073.2 2,024.2 INTERIM RESULTS
Avg. wages/employee Rs Th 568.9 628.7 452.6 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 141.4 197.5 176.4 Net sales Rs m 2,702 2,942 2,611 2,812
Gross profit Rs m 266 313 296 275
INCOME DATA Gross profit margin % 9.8 10.6 11.3 9.8
Net Sales Rs m 8,859 10,784 10,605 Net profit Rs m 230 220 240 236
Other income Rs m 61 74 175 Net profit margin % 8.5 7.5 9.2 8.4
Total revenues Rs m 8,920 10,858 10,780
Gross profit Rs m 484 977 1,148 KEY DATA
Depreciation Rs m 91 83 79 Parameters Unit FY06 FY07 FY08
Interest Rs m 41 40 10 Customer service % of revenues 59.5 53.6 58.3
Profit before tax Rs m 413 928 1,234 System integration % of revenues 32.7 35.9 30.3
Minority Interest Rs m 0 0 0 ITES % of revenues 3.5 6.6 6.6
Prior Period Items Rs m 0 0 0 Education and training % of revenues 4.3 3.9 4.8
Extraordinary Inc (Exp) Rs m 247 0 0
Tax Rs m 175 235 310
NOTES
Profit after tax Rs m 485 693 924
Gross profit margin % 5.5 9.1 10.8 CMC is an IT solutions company and a subsidiary of TCS. It has domain expertise in
Effective tax rate % 42.4 25.3 25.1 the entire information technology spectrum namely IT architecture, hardware,
software (including systems and application software, development or
Net profit margin % 5.5 6.4 8.7
implementation, maintenance, and frameworks), network consulting, and IT-enabled
BALANCE SHEET DATA processing services. CMC has around 3,600 employees on its rolls. The company's
growth strategy focuses on capitalising on its skill sets and leveraging the synergies
Current assets Rs m 5,289 5,367 5,062 with TCS and other Tata group companies, for growth in revenue and profitability of
Current liabilities Rs m 3,000 3,685 3,494 operations.
Net working cap to sales % 25.8 15.6 14.8
Current ratio x 1.8 1.5 1.4 In FY08, CMC's sales declined by 1.2% YoY, mainly on account of 3.6% decline in
Inventory Turnover Days 22 8 7 low margin equipment business. The share of equipment business in total operating
Debtors Turnover Days 101 87 79 revenue declined from 41% in FY07 to 40% in FY08 whereas the share of services
Net fixed assets Rs m 565 831 848 revenue increased from 59% to 60%. The operating profit of CMC increased by 24%
Share capital Rs m 152 152 152 in FY08 and EBITDA margin increased from 9% to 11.6%. Bottomline grew by 38%
"Free" reserves Rs m 1,952 2,220 2,974 YoY.
Net worth Rs m 2,121 2,385 3,127 Going forward, CMC is expected to benefit from the current trends in IT spends, in
Long term debt Rs m 121 28 270 both the domestic and international markets. Liberalisation and opening up of more
Total assets Rs m 5,858 6,202 6,870 infrastructure sectors like roads, airports and seaports, national e-governance
Interest coverage x 11.1 24.2 124.4 initiatives and implementation of mission mode projects, is going to drive increase in
Debt to equity ratio x 0.1 0.0 0.1 domestic IT spend. The company is well poised to exploit the emerging opportunities
Sales to assets ratio x 1.5 1.7 1.5 both in India and global market synergy along with TCS.
Return on assets % 23.5 30.4 27.5
Return on equity % 22.9 29.1 29.5
Return on capital % 31.3 40.1 36.6
Exports to sales % 0.0 0.0 0.0
Imports to sales % 19.7 19.0 19.5
GET MORE INFO AT WWW.EQUITYMASTER.COM

239
 Regd off: 1211, Padma Tower-1, 5, Rajendra Place, New Delhi-110 008
EDUCOMP SOLUTIONS LIMITED E-Mail: mohit.maheshwari@educomp.com
Web site: www.educomp.com
Telephone: (011) 2576 6484 Fax: (011) 2576 6775
SOFTWARE MISCELLANEOUS Tr agent: Intime Spectrum, C13, Pannalal Silk Mills Compd., LBS Marg, Mumbai-78
Chairman: Shantanu Prakash (MD) SEC: Mohit Maheshwari AUD: Anupam Bansal & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1994 532696 EDSL:IN 10 3,700.3 15.4 30.7 90.8 61.8 0.1 63,940.3 46.3 INE216H01019
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 55.0% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 1
(Rs)
Indian inst/Mut Fund : 2.8% Fx inflow Rs m 368 6020
FIIs/GDR : 33.0% Fx outflow Rs m 59
Free float : 9.2% Net fx Rs m 309
Shareholders : 17,769
4520
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
High Rs 467 1,080 5,650
3020
Low Rs 185 291 972
Sales per share Rs 34.8 68.9 165.9
Earnings per share Rs 8.7 18.2 40.8 1520
Cash flow per share Rs 12.2 24.2 60.0 DAILY
Dividends per share Rs 1.50 2.00 2.50 100 DMA
Dividend yield (eoy) % 0.5 0.3 0.1
20
Book value per share Rs 56.0 71.7 167.1
Shares outstanding (eoy) m 15.96 15.99 17.25 Jan-06 Sep-06 May-07 Jan-08 Sep-08
Bonus/Rights/Conversions PI,PA,B BC FCCB
Price / Sales ratio x 9.4 10.0 20.0 No. of months 12 12 12
Avg P/E ratio x 37.4 37.7 81.1 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 26.7 28.3 55.2
Price / Book Value ratio x 5.8 9.6 19.8 From Operations Rs m 135 165 505
Dividend payout % 17.2 11.0 6.1 From Investments Rs m -167 -719 -2,102
Avg Mkt Cap Rs m 5,203 10,961 57,115 From Financial Activity Rs m 616 1,088 3,393
No. of employees `000 1 1 4 Net Cashflow Rs m 583 534 1,796
Total wages/salary Rs m 91 126 488
Avg. sales/employee Rs Th 466.4 774.3 723.4 INTERIM RESULTS
Avg. wages/employee Rs Th 76.5 88.6 123.4 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 116.8 204.6 178.0 Net sales Rs m 449 715 1,181 694
Gross profit Rs m 229 334 551 379
INCOME DATA Gross profit margin % 51.0 46.7 46.7 54.6
Net Sales Rs m 555 1,101 2,861 Net profit Rs m 137 190 314 168
Other income Rs m 15 59 178 Net profit margin % 30.5 26.6 26.6 24.2
Total revenues Rs m 570 1,160 3,039
Gross profit Rs m 267 508 1,261 KEY DATA
Depreciation Rs m 56 96 331 Parameters Unit FY06 FY07 FY08
Interest Rs m 6 14 48 Smart Class PBIT margins, % 59.8 58.1 58.0
Profit before tax Rs m 220 457 1,060 ICT PBIT margins, % 37.9 32.5 29.2
Minority Interest Rs m -1 -1 -3 Professional Development PBIT margins, % 60.7 59.9 61.2
Prior Period Items Rs m -1 1 0 Retail and Consulting PBIT margins, % 28.3 47.2 56.4
Extraordinary Inc (Exp) Rs m 0 4 -2
Tax Rs m 79 170 351
NOTES
Profit after tax Rs m 139 291 704
Gross profit margin % 48.1 46.1 44.1 Educomp is a technology based education service company, and currently serves
Effective tax rate % 35.9 37.2 33.1 approximately 6 m learners and educators across India, the US and Singapore. It has
11 offices in India, 1 each in the US, Canada, Sri Lanka and Singapore. The company
Net profit margin % 25.0 26.4 24.6
has a sales presence in over 57 locations. Educomp works closely with schools to
BALANCE SHEET DATA implement innovative models to create and deliver content to enhance student-
learning experience.
Current assets Rs m 930 1,761 4,639
Current liabilities Rs m 182 242 610 In FY08, Educomp registered a 160% YoY growth in topline, mainly driven by strong
Net working cap to sales % 134.8 138.0 140.8 growth across key business segments of Smart Class (up 174%), Instructional &
Current ratio x 5.1 7.3 7.6 Computing Technology (ICT) (up 209%), Professional Development (up 46%) and
Inventory Turnover Days 11 11 2 Retail & Consulting (up 25%). The number of schools signing for the company's
Debtors Turnover Days 168 164 148 products also saw a robust growth. However, its operating margins declined by 2%
Net fixed assets Rs m 252 831 2,714 due to increased contribution from both SmartClass and ICT, which are relatively low
Share capital Rs m 160 160 172 margin businesses Educomp's net profits grew by 150% YoY during the year, and the
"Free" reserves Rs m 735 988 2,629 same can be attributed to higher growth in operating profits and substantially higher
other income.
Net worth Rs m 894 1,147 2,883
Long term debt Rs m 13 78 3,491 Going forward, Educomp is expected to derive its growth from growing Indian
Total assets Rs m 1,204 2,831 7,669 education market (with 361m children in the Kindergarten-to-Grade 12 (K-12)
Interest coverage x 37.7 33.6 23.1 category). The country's core education market is estimated to be worth around US$
Debt to equity ratio x 0.0 0.1 1.2 20 bn, comprising US$ 15 bn of unaided schools and US$ 5 bn aided schools. With
Sales to assets ratio x 0.5 0.4 0.4 broadband penetration increasing, education content is emerging as the key driver
Return on assets % 16.0 24.9 11.8 for broadband adoption at the home level. The company has also forged a
Return on equity % 15.5 25.4 24.4 partnership with Microsoft to make available its graphical curriculum content and
Return on capital % 24.7 38.8 17.3 formed a JV with Raffles Education in China. These global partnerships will help
Exports to sales % 0.0 0.0 0.0 Educomp offer better products and derive revenue from the international markets.
Imports to sales % 1.3 0.3 0.0
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 Regd off: Plant 6, Pirojshanagar, Vikhroli (W) Mumbai - 400 079
GEOMETRIC LIMITED E-Mail: investor-relations@geometricsoftware.com
Web site: www.geometricsoftware.com
Telephone: (022) 6705 6500 Fax: (022) 6705 6891
SOFTWARE GODREJ Tr agent: Intime Spectrum, C-13, Pannalal Mills Compd., LBS Marg, Mumbai - 78
Chairman: J. N. Godrej SEC: Ravishankar. G AUD: Kalyaniwala & Mistry
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1994 532312 GEO:IN 2 62.8 15.7 -37.5 12.1 7.5 1.3 3,893.6 249.4 INE797A01021
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 27.4% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 3
(Rs)
Indian inst/Mut Fund : 14.8% Fx inflow Rs m 1,663 150
FIIs/GDR : 3.9% Fx outflow Rs m 326
Free float : 54.0% Net fx Rs m 1,337
Shareholders : 29,275
120
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
90
High Rs 132 147 134
Low Rs 82 64 43
Sales per share Rs 39.4 61.9 78.2
Earnings per share Rs 4.6 6.0 5.2 60 DAILY
Cash flow per share Rs 7.6 9.5 8.4
Dividends per share Rs 0.80 0.80 0.80 100 DMA
Dividend yield (eoy) % 0.7 0.8 0.9
30
Book value per share Rs 25.1 36.1 39.7
Shares outstanding (eoy) m 56.66 61.93 62.10 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions FV2,ESOS PA,ESOP ESOP
Price / Sales ratio x 2.7 1.7 1.1 No. of months 12 12 12
Avg P/E ratio x 23.5 17.5 17.1 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 14.1 11.1 10.6
Price / Book Value ratio x 4.3 2.9 2.2 From Operations Rs m 440 57 645
Dividend payout % 17.6 13.2 15.5 From Investments Rs m -381 -1,203 -256
Avg Mkt Cap Rs m 6,063 6,534 5,496 From Financial Activity Rs m -93 1,236 -302
No. of employees `000 2 2 3 Net Cashflow Rs m -34 90 87
Total wages/salary Rs m 1,259 2,421 2,968
Avg. sales/employee Rs Th 1,358.9 1,711.8 1,636.8 INTERIM RESULTS
Avg. wages/employee Rs Th 765.8 1,081.8 1,000.0 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 156.9 167.1 108.2 Net sales Rs m 1,225 1,240 1,265 1,404
Gross profit Rs m 112 129 151 97
INCOME DATA Gross profit margin % 9.1 10.4 11.9 6.9
Net Sales Rs m 2,234 3,831 4,858 Net profit Rs m 91 68 47 38
Other income Rs m 68 112 203 Net profit margin % 7.4 5.5 3.7 2.7
Total revenues Rs m 2,302 3,943 5,061
Gross profit Rs m 494 638 490 KEY DATA
Depreciation Rs m 172 212 198 Parameters Unit FY06 FY07 FY08
Interest Rs m 0 32 53 Projects % of revenues 84.5 89.0 92.8
Profit before tax Rs m 390 506 442 Products % of revenues 15.5 11.0 7.2
Minority Interest Rs m -64 -64 -55 Revenues from US % of revenues 60.0 63.0 70.8
Prior Period Items Rs m 0 0 -9 Revenues from Europe % of revenues 29.0 29.0 19.8
Extraordinary Inc (Exp) Rs m 0 0 0
Tax Rs m 68 68 57
NOTES
Profit after tax Rs m 258 374 321
Gross profit margin % 22.1 16.7 10.1 Geometric operates in the highly niche area of providing product lifecycle
Effective tax rate % 17.4 13.4 12.9 management (PLM) technologies and solutions to the global mechanical design,
manufacturing, hi-tech and industrial markets. The company's presence in the
Net profit margin % 11.5 9.8 6.6
domain of geometry provides it with a competitive advantage in the form of high entry
BALANCE SHEET DATA barriers on account of high-levels of technical skill-set requirements.

Current assets Rs m 637 1,583 1,635 Geometric recorded a 27% YoY growth in topline during FY08. This was aided by
Current liabilities Rs m 393 635 640 strong performances from the company's software and engineering service
Net working cap to sales % 10.9 24.7 20.5 businesses, which grew by 10% YoY and 86% YoY respectively. Geometric's
Current ratio x 1.6 2.5 2.6 operating margins contracted by 6.5% YoY during the fiscal. This was largely owing
Inventory Turnover Days 0 0 0 to the rupee's appreciation (11% YoY) against the US dollar and a higher share of
Debtors Turnover Days 69 71 59 revenue coming from onsite projects, which have relatively lower margins as
Net fixed assets Rs m 1,068 2,209 2,196 compared to offshore projects. The company recorded a 14% YoY decline in net
Share capital Rs m 113 124 124 profits during FY08, which was chiefly on account of a sharp contraction in operating
"Free" reserves Rs m 1,311 2,113 2,364 margins and was despite an 81% YoY rise in other income.
Net worth Rs m 1,424 2,237 2,468 We believe that Geometric faces the risk of execution and scalability going forward.
Long term debt Rs m 0 606 794 The company is witnessing pressure in the US automobile market, from where it
Total assets Rs m 1,918 3,913 4,009 (including its subsidiary Modern Engineering) derives a large share of its products'
Interest coverage x NM 16.8 9.3 revenue. Further, the repayment of debt that was taken for acquiring Modern
Debt to equity ratio x 0.0 0.3 0.3 Engineering will start from this fiscal onwards, which will again impact net profitability.
Sales to assets ratio x 1.2 1.0 1.2 On the positive side, revenues from the 'enterprise products' division are expected to
Return on assets % 18.1 14.3 11.5 flow in from the current onwards, which can help the company improve its margins,
Return on equity % 18.1 16.7 13.0 which are currently under pressure. The company is also targeting Europe and Asia-
Return on capital % 22.9 16.7 13.2 Pacific markets for growth, thereby reducing its dependence on the US. However, in
Exports to sales % 0.0 0.0 0.0 the medium term, the real test will be to make Modern a profitable company at the
Imports to sales % 1.4 0.7 0.1 EBITDA level and to successfully bring the work offshore.
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 Regd off: 152, Mil. Business Park, Sector 3, TTC IndI. Area, Navi Mumbai - 710
HEXAWARE TECHNOLOGIES LIMITED E-Mail: bhagwantb@hexaware.com
Web site: www.hexaware.com
Telephone: (022) 6791 9595 Fax: (022) 6791 9578
SOFTWARE MISCELLANEOUS Tr agent: Sharepro Services,3rd Floor,Satam Estate,Chakala, Mumbai - 99
Chairman: Atul K. Nishar SEC: Bhagwant P. Bhargawe AUD: Deloitte Haskins & Sells
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1990 532129 HEXW:IN 2 47.4 -5.9 -61.1 94.5 22.2 1.7 6,807.6 23.6 INE093A01033
SHAREHOLDING FX Transaction (CY07) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 23.6% Exports (fob) Rs m 0
Foreign collaborators : 0.3% Imports (cif) Rs m 144
(Rs)
Indian inst/Mut Fund : 5.2% Fx inflow Rs m 4,438 210
FIIs/GDR : 46.2% Fx outflow Rs m 1,125
Free float : 25.0% Net fx Rs m 3,313 DAILY
Shareholders : 96,165 100 DMA
165
No. of months 12 12 12
Year ending 31/12/05 31/12/06 31/12/07
EQUITY SHARE DATA
120
High Rs 165 205 204
Low Rs 90 110 71
Sales per share Rs 56.9 64.3 72.4
Earnings per share Rs 7.7 9.4 0.5 75
Cash flow per share Rs 9.4 10.9 2.1
Dividends per share Rs 1.20 1.60 0.80
Dividend yield (eoy) % 0.9 1.0 0.6
30
Book value per share Rs 29.1 44.7 49.2
Shares outstanding (eoy) m 119.36 131.98 143.62 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions FV2,ESOP PP,ESOP GDR,ESOP
Price / Sales ratio x 2.2 2.5 1.9 No. of months 12 12 12
Avg P/E ratio x 16.6 16.7 274.3 Year ending 31/12/05 31/12/06 31/12/07
CASH FLOW
P/CF ratio (eoy) x 13.5 14.4 64.3
Price / Book Value ratio x 4.4 3.5 2.8 From Operations Rs m 668 1,178 893
Dividend payout % 15.7 17.0 159.6 From Investments Rs m -365 -3,634 -510
Avg Mkt Cap Rs m 15,218 20,787 19,748 From Financial Activity Rs m -180 2,709 -265
No. of employees `000 4 6 7 Net Cashflow Rs m 123 252 117
Total wages/salary Rs m 3,738 4,662 6,149
Avg. sales/employee Rs Th 1,861.5 1,455.1 1,471.1 INTERIM RESULTS
Avg. wages/employee Rs Th 1,025.2 799.8 870.0 3QCY07 4QCY07 1QCY08 2QCY08
Avg. net profit/employee Rs Th 251.0 213.2 10.2 Net sales Rs m 2,546 2,592 2,670 2,845
Gross profit Rs m 299 182 257 155
INCOME DATA Gross profit margin % 11.7 7.0 9.6 5.4
Net Sales Rs m 6,787 8,482 10,398 Net profit Rs m 270 221 208 95
Other income Rs m 101 244 289 Net profit margin % 10.6 8.5 7.8 3.3
Total revenues Rs m 6,888 8,726 10,687
Gross profit Rs m 1,083 1,321 1,180 KEY DATA
Depreciation Rs m 210 199 235 Parameters Unit CY05 CY06 CY07
Interest Rs m 7 3 1 BFSI % of revenues 44.9 39.0 36.6
Profit before tax Rs m 967 1,363 1,233 Manufacturing % of revenues 32.7 30.62 29.3
Minority Interest Rs m 0 0 2 Airlines & Transports % of revenues 16.1 16.6 17.9
Prior Period Items Rs m -1 -5 0 Others % of revenues 6.3 8.08 11.0
Extraordinary Inc (Exp) Rs m 45 0 -1,030
Tax Rs m 96 115 133
NOTES
Profit after tax Rs m 915 1,243 72
Gross profit margin % 16.0 15.6 11.3 Hexaware is a provider of IT and process outsourcing services focusing extensively
Effective tax rate % 9.9 8.4 10.8 on managing large IT applications real time as well as on providing high value
services around packaged enterprise applications such as SAP and PeopleSoft.
Net profit margin % 13.5 14.7 0.7

BALANCE SHEET DATA In the last fiscal (CY07), Hexaware grew its topline by 23% YoY. The net profit for the
fiscal however nose-dived by 95% on account of the exceptional loss on foreign
Current assets Rs m 2,936 3,847 4,221 exchange transactions. Operating margin declined by 4.2%. The rupee appreciation
Current liabilities Rs m 1,015 1,566 2,793 of 11% against the US dollar impacted the operations both by way of margin erosion
Net working cap to sales % 28.3 26.9 13.7 and lower translation profits. Majority of the company's revenues were from repeat
Current ratio x 2.9 2.5 1.5 businesses from existing clients mainly because of old client retention. While, North
Inventory Turnover Days 0 0 0 America stands to be the major revenue contributor, the company is focusing on
Debtors Turnover Days 99 96 76 entering new geographical areas. During CY07, Hexaware was able to improve its
Net fixed assets Rs m 933 2,501 3,277 revenues from the European and emerging markets such as the South-East Asian
Share capital Rs m 239 264 287 and Far East regions. The company grew its revenue from Europe by 28% and from
"Free" reserves Rs m 3,248 5,623 6,978 other geographies by 59%.
Net worth Rs m 3,474 5,895 7,059 Hexaware is facing tough time in the wake of on going financial service crisis in the
Long term debt Rs m 0 0 0 US. However, 66 new client additions during the year and increase in new orders
Total assets Rs m 4,522 8,964 9,807 booked from existing clients and new clients (increased by 58% to US$ 271.5 m) give
Interest coverage x 139.1 455.3 1,234.0 good revenue visibility. In CY07, the company has expanded its offerings in
Debt to equity ratio x 0.0 0.0 0.0 Transportation by adding offerings for Hospitality and Third Party Logistics (3PL)
Sales to assets ratio x 1.5 0.9 1.1 companies, which will enable Hexaware to strengthen its position as niche service
Return on assets % 26.5 21.1 1.0 provider. Going forward, the Independent testing and enterprise solutions segment is
Return on equity % 26.3 21.1 1.0 expected to aid the growth of Hexaware.
Return on capital % 29.3 23.1 2.9
Exports to sales % 0.0 0.0 0.0
Imports to sales % 1.0 0.9 1.4
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242
 Regd off: GF-12A, 94, Meghdoot Building, Nehru Place, New Delhi - 110 019
INFO EDGE (INDIA) LTD. E-Mail: amit.gupta@naukri.com
Web site: www.infoedge.in
Telephone: (0120) 308 2000 Fax: (0120) 308 2095
SOFTWARE MISCELLANEOUS Tr agent: Intime Spectrum, A31, 3rd Flr, Naraina Indl. Area, Phase-I, New Delhi - 28
Chairman: Kapil Kapoor SEC: Amit Gupta AUD: Price Waterhouse
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1995 532777 INFOE:IN 10 853.0 -0.5 0.9 42.0 38.1 0.1 23,285.5 0.1 INE663F01024
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 54.2% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 0
(Rs)
Indian inst/Mut Fund : 2.7% Fx inflow Rs m 216 1750
FIIs/GDR : 23.7% Fx outflow Rs m 77 DAILY
Free float : 19.5% Net fx Rs m 139
Shareholders : 11,497 100 DMA
1425
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
1100
High Rs NM 778 1,688
Low Rs NM 480 665
Sales per share Rs 37.7 51.1 80.2
Earnings per share Rs 6.1 9.9 20.3 775
Cash flow per share Rs 7.4 11.6 22.4
Dividends per share Rs 1.50 0.75 0.75
Dividend yield (eoy) % NM 0.1 0.1
450
Book value per share Rs 11.3 78.2 98.2
Shares outstanding (eoy) m 21.84 27.30 27.30 Nov-06 Apr-07 Sep-07 Mar-08 Sep-08
Bonus/Rights/Conversions FV10,B5:2 PI,PA -
Price / Sales ratio x NM 12.3 14.7 No. of months 12 12 12
Avg P/E ratio x NM 63.4 57.9 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x NM 54.2 52.6
Price / Book Value ratio x NM 8.0 12.0 From Operations Rs m 328 520 706
Dividend payout % 24.6 7.6 3.7 From Investments Rs m -153 -2,047 -612
Avg Mkt Cap Rs m NM 17,172 32,118 From Financial Activity Rs m -10 1,621 -24
No. of employees `000 1 1 2 Net Cashflow Rs m 165 94 71
Total wages/salary Rs m 280 488 742
Avg. sales/employee Rs Th 947.1 1,116.8 1,326.7 INTERIM RESULTS
Avg. wages/employee Rs Th 321.8 390.4 449.7 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 152.9 216.8 336.4 Net sales Rs m 526 548 650 631
Gross profit Rs m 162 154 200 167
INCOME DATA Gross profit margin % 30.8 28.1 30.8 26.5
Net Sales Rs m 824 1,396 2,189 Net profit Rs m 152 131 156 129
Other income Rs m 17 76 207 Net profit margin % 28.9 23.9 24.0 20.4
Total revenues Rs m 841 1,472 2,396
Gross profit Rs m 221 365 635 KEY DATA
Depreciation Rs m 28 46 56 Parameters Unit FY06 FY07 FY08
Interest Rs m 0 0 0 Recruitment Business % of revenues 94.0 92.0 90.0
Profit before tax Rs m 210 395 786 Matrimonial and Real Estate % of revenues 6.0 8.0 10.0
Minority Interest Rs m 0 0 0
Prior Period Items Rs m 0 0 0
Extraordinary Inc (Exp) Rs m 0 0 0
Tax Rs m 77 124 231
NOTES
Profit after tax Rs m 133 271 555
Gross profit margin % 26.8 26.1 29.0 Info Edge India is a leading provider of online recruitment matrimonial and real estate
Effective tax rate % 36.7 31.4 29.4 classifieds and related services. The company was incorporated in 1995 as Info Edge
(India) and went public in April 2006. The company has four divisions - online
Net profit margin % 16.1 19.4 25.4
recruitment classified (www.naukri.com), online matrimonial classified
BALANCE SHEET DATA (www.jeevansathi.com), online real estate classified (www.99acres.com), and offline
executive search (quadrangle division). Total income of the company has increased
Current assets Rs m 397 536 646 at a compound annual growth rate (CAGR) of over 88% during the period FY04 to
Current liabilities Rs m 383 704 1,021 FY08.
Net working cap to sales % 1.7 -12.0 -17.1
Current ratio x 1.0 0.8 0.6 In FY08, Info Edge recorded a 58% YoY growth in its topline. Naukri (online
Inventory Turnover Days 0 0 0 recruitment classified division) mainly aided the growth during the fiscal. Its operating
Debtors Turnover Days 5 6 6 margins expanded by 3.2% as operating profit grew by 73% YoY, faster than the
Net fixed assets Rs m 95 104 382 growth in topline. Info Edge's bottomline grew by a whopping 105% YoY mainly on
Share capital Rs m 218 273 273 account of higher operating margins and other income growth (up 172% YoY).
"Free" reserves Rs m 23 1,857 2,391
We expect the company to grow with significant operating leverage in the key
Net worth Rs m 247 2,135 2,681 recruitment segment and through improvements at various ends of the value chain.
Long term debt Rs m 1 2 2 We believe that the company will be a direct beneficiary of increase in internet
Total assets Rs m 634 2,836 3,695 penetration and usage in the country. The economic growth, demography, changing
Interest coverage x NM NM NM behavioural patterns and improved communications infrastructure would also aid the
Debt to equity ratio x 0.0 0.0 0.0 future growth of the company. However, economic slowdown can adversely affect its
Sales to assets ratio x 1.3 0.5 0.6 performance as a major chunk of revenue comes from Naukri, which is dependent on
Return on assets % 53.6 12.7 20.7 recruitments (especially in the IT segment).
Return on equity % 53.8 12.7 20.7
Return on capital % 84.7 18.5 29.3
Exports to sales % 0.0 0.0 0.0
Imports to sales % 0.0 0.0 0.0
GET MORE INFO AT WWW.EQUITYMASTER.COM

243
 Regd off: Electronics City, Hosur Road, Bangalore - 560 100
INFOSYS TECHNOLOGIES LIMITED + $ E-Mail: Parvatheesam_k@infosys.com
Web site: www.infosys.com
Telephone: (080) 2852 0261 Fax: (080) 2852 0362
SOFTWARE MISCELLANEOUS Tr agent: Karvy Computer, T.K.N Compx, 51/2, Opp. National College, Bangalore-4
Chairman: Narayana Murthy (Chief Mentor) SEC: K. Parvatheesam AUD: BSR & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1981 500209 INFO:IN 5 1,713.3 2.1 -9.7 21.1 18.7 1.9 982,206.2 338.4 INE009A01021
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 16.5% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 3,040
(Rs)
Indian inst/Mut Fund : 7.1% Fx inflow Rs m 144,900 2600
FIIs/GDR : 52.6% Fx outflow Rs m 69,250
Free float : 23.8% Net fx Rs m 75,650
Shareholders : 555,562
2200
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
1800
High Rs 3,055 2,378 2,128
Low Rs 1,887 1,242 1,313
Sales per share Rs 345.5 243.2 291.8
Earnings per share Rs 89.2 67.5 81.5 1400
Cash flow per share Rs 105.1 76.5 91.9 DAILY
Dividends per share Rs 45.00 11.50 33.25 100 DMA
Dividend yield (eoy) % 1.8 0.6 1.9
1000
Book value per share Rs 252.8 197.0 241.2
Shares outstanding (eoy) m 275.55 571.21 571.99 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions ESOS B1:1,ESOP ESOP
Price / Sales ratio x 7.2 7.4 5.9 No. of months 12 12 12
Avg P/E ratio x 27.7 26.8 21.1 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 23.5 23.7 18.7
Price / Book Value ratio x 9.8 9.2 7.1 From Operations Rs m 24,100 35,210 40,830
Dividend payout % 50.4 17.0 40.8 From Investments Rs m -4,230 -11,210 -11,200
Avg Mkt Cap Rs m 680,884 1,033,890 984,109 From Financial Activity Rs m 1,710 -3,230 -7,360
No. of employees `000 53 72 91 Net Cashflow Rs m 21,580 20,770 22,270
Total wages/salary Rs m 48,010 71,120 88,780
Avg. sales/employee Rs Th 1,806.1 1,923.1 1,830.5 INTERIM RESULTS
Avg. wages/employee Rs Th 910.7 984.5 973.6 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 466.3 533.8 510.9 Net sales Rs m 41,060 42,710 45,420 48,540
Gross profit Rs m 12,840 13,920 14,590 14,790
INCOME DATA Gross profit margin % 31.3 32.6 32.1 30.5
Net Sales Rs m 95,210 138,930 166,920 Net profit Rs m 11,000 12,310 12,490 13,020
Other income Rs m 1,390 3,720 7,040 Net profit margin % 26.8 28.8 27.5 26.8
Total revenues Rs m 96,600 142,650 173,960
Gross profit Rs m 30,900 43,890 52,380 KEY DATA
Depreciation Rs m 4,370 5,140 5,980 Parameters Unit FY06 FY07 FY08
Interest Rs m 0 0 0 Application Dev. & Maintenance % of revenues 50.4 50.3 48.2
Profit before tax Rs m 27,920 42,470 53,440 Re-engg and other services % of revenues 14.4 11.5 9.6
Minority Interest Rs m -210 -110 0 Consulting + Pkg implementation % of revenues 20.0 21.1 23.8
Prior Period Items Rs m 0 0 0 Testing % of revenues 5.9 6.9 7.5
Extraordinary Inc (Exp) Rs m 0 60 0 Others % of revenues 7.8 8.6 9.3
Tax Rs m 3,130 3,860 6,850
NOTES
Profit after tax Rs m 24,580 38,560 46,590
Gross profit margin % 32.5 31.6 31.4 Infosys is India's second largest software company and is recognised globally for its
Effective tax rate % 11.2 9.1 12.8 world-class management practices and work ethics. It offers services like software
development, maintenance, consulting, testing and packaging implementation.
Net profit margin % 25.8 27.8 27.9
Infosys offers all these services through its highly integrated and globally recognised
BALANCE SHEET DATA delivery model. The company's revenues and profits have grown at compounded
rates of 36% and 37% respectively during the period FY03 to FY08.
Current assets Rs m 63,340 95,210 130,180
Current liabilities Rs m 39,880 73,710 41,910 Infosys' topline registered a growth of 20% YoY during FY08. This was mainly
Net working cap to sales % 24.6 15.5 52.9 propelled by strong growth in volumes and billing rates. The company recorded the
Current ratio x 1.6 1.3 3.1 strongest performance in the 'consulting and package implementation' service,
Inventory Turnover Days 0 0 0 followed by 'application maintenance' and 'application development'. Its operating
Debtors Turnover Days 62 64 72 margins recorded a marginal 0.2% YoY decline, which was mainly on account of the
Net fixed assets Rs m 22,260 37,710 47,770 rupee's appreciation against the US dollar. Infosys reported a 21% YoY growth in its
Share capital Rs m 1,380 2,860 2,860 net profits during the fiscal. This growth was largely aided by an 89% YoY rise in other
"Free" reserves Rs m 67,740 109,640 134,810 income, whish was a result of a sharp increase in the company's interest income on
deposits with banks, which increased by almost 250% YoY.
Net worth Rs m 69,660 112,550 137,950
Long term debt Rs m 0 0 0 Going forward, while the company faces short-term challenges on account of
Total assets Rs m 93,150 133,170 178,670 continued global economic uncertainties, there are significant growth opportunities in
Interest coverage x NM NM NM the medium to long term. Infosys added 38 new clients during FY08 (170 on a gross
Debt to equity ratio x 0.0 0.0 0.0 basis). This included addition of 1 client that will give the company US$ 300 m in
Sales to assets ratio x 1.0 1.0 0.9 annual revenues and 3 that will give it US$ 100 m in annual revenues. Importantly,
Return on assets % 35.3 34.3 33.8 the company also increased the share of repeat business in its sales from 95.3% in
Return on equity % 35.3 34.3 33.8 FY07 to 97% in FY08. These factors give a clear indication of sound offshoring
Return on capital % 39.8 37.7 38.7 momentum and future revenue growth of company.
Exports to sales % 0.0 0.0 0.0
Imports to sales % 2.3 1.9 1.8
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 Regd off: MindTree House, 27th Cross, Banashankari 2nd Stage, Bangalore - 70
MINDTREE LIMITED E-Mail: investors@mindtree.com
Web site: www.mindtree.com
Telephone: (080) 2671 1777 Fax: (080) 2671 4000
SOFTWARE MISCELLANEOUS Tr agent: Intime Spectrum, C-13 Pannalal Silk Mills Compd, LBS Marg, Mumbai-78
Chairman: Ashok Soota (MD) SEC: Usha T N AUD: BSR & Associates
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1999 532819 MTCL:IN 10 339.3 -14.3 -41.9 12.5 9.3 0.6 12,876.4 13.3 INE018I01017
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 30.3% Exports (fob) Rs m 0
Foreign collaborators : 5.1% Imports (cif) Rs m 256
(Rs)
Indian inst/Mut Fund : 1.7% Fx inflow Rs m 6,831 1000
FIIs/GDR : 2.0% Fx outflow Rs m 2,504
Free float : 61.0% Net fx Rs m 4,327
Shareholders : 81,694
825
No. of months 12 12 12 DAILY
Year ending 31/03/06 31/03/07 31/03/08 100 DMA
EQUITY SHARE DATA
650
High Rs NM 1,022 891
Low Rs NM 575 321
Sales per share Rs 152.9 156.4 195.1
Earnings per share Rs 18.5 23.9 27.2 475
Cash flow per share Rs 25.6 30.3 36.6
Dividends per share Rs 0.00 2.00 2.00
Dividend yield (eoy) % NM 0.3 0.3
300
Book value per share Rs 43.9 115.4 140.6
Shares outstanding (eoy) m 29.36 37.75 37.92 Mar-07 Jul-07 Nov-07 Apr-08 Sep-08
Bonus/Rights/Conversions A,ESOP PI,FV10,B ESOP
Price / Sales ratio x NM 5.1 3.1 No. of months 12 12 12
Avg P/E ratio x NM 33.5 22.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x NM 26.3 16.5
Price / Book Value ratio x NM 6.9 4.3 From Operations Rs m 434 820 914
Dividend payout % 0.0 8.4 7.3 From Investments Rs m -605 -2,122 -1,501
Avg Mkt Cap Rs m NM 30,143 22,980 From Financial Activity Rs m 163 1,807 373
No. of employees `000 3 4 6 Net Cashflow Rs m -8 505 -214
Total wages/salary Rs m 2,444 3,263 4,357
Avg. sales/employee Rs Th 1,434.8 1,418.5 1,311.7 INTERIM RESULTS
Avg. wages/employee Rs Th 781.3 784.0 772.5 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 173.3 216.5 183.2 Net sales Rs m 1,820 1,865 2,039 2,222
Gross profit Rs m 361 318 384 463
INCOME DATA Gross profit margin % 19.8 17.1 18.8 20.8
Net Sales Rs m 4,488 5,904 7,398 Net profit Rs m 271 206 357 -129
Other income Rs m 66 74 279 Net profit margin % 14.9 11.0 17.5 -5.8
Total revenues Rs m 4,554 5,978 7,677
Gross profit Rs m 753 1,096 1,254 KEY DATA
Depreciation Rs m 209 244 356 Parameters Unit FY06 FY07 FY08
Interest Rs m 53 30 59 United States % of revenues 63 63.3 65.5
Profit before tax Rs m 557 896 1,118 Europe % of revenues 22.6 22.1 18.2
Minority Interest Rs m 0 0 0 India % of revenues 6 5.2 6.5
Prior Period Items Rs m 0 0 0 Asia Pacific % of revenues 8.4 9.4 9.8
Extraordinary Inc (Exp) Rs m 0 0 0
Tax Rs m 15 -5 85
NOTES
Profit after tax Rs m 542 901 1,033
Gross profit margin % 16.8 18.6 17.0 MindTree is a mid-size IT and R&D services company. The company has two
Effective tax rate % 2.7 -0.6 7.6 business units that focus on software development - IT services and R&D services.
Around 75% of the revenues come from IT services and the balance 25% come from
Net profit margin % 12.1 15.3 14.0
R&D services. MindTree's IT services business comprises of IT strategic consulting,
BALANCE SHEET DATA application development, data warehousing and business intelligence, application
maintenance, package implementation and application product engineering. The
Current assets Rs m 1,918 2,770 3,318 R&D services division is organised into two sub-divisions namely engineering and
Current liabilities Rs m 814 1,038 1,392 research.
Net working cap to sales % 24.6 29.3 26.0
Current ratio x 2.4 2.7 2.4 MindTree recorded a 9% QoQ growth in topline during 4QFY08, aided by IT service
Inventory Turnover Days 0 0 0 segment which grew by 12% QoQ. The segment grew sales by 29% YoY during the
Debtors Turnover Days 89 72 87 full year. Growth in this segment was mainly driven by independent testing, business
Net fixed assets Rs m 389 699 2,625 intelligence, package implementation, infrastructure management and tech support
Share capital Rs m 59 378 379 businesses. MindTree's operating margins declined by 1.5% YoY during FY08,
"Free" reserves Rs m 1,228 3,964 4,919 largely owing to the rupee's 11% YoY appreciation against the US dollar. Bottomline
growth stood at 16% YoY for the fiscal.
Net worth Rs m 1,288 4,355 5,331
Long term debt Rs m 264 90 919 While we are positive on the company's business model as also its management
Total assets Rs m 2,844 5,610 7,553 strength, the fact that R&D services are the first to get impacted in case of a
Interest coverage x 11.5 30.9 19.9 slowdown in global technology spending is one of the biggest risks for the company.
Debt to equity ratio x 0.2 0.0 0.2 The company is heavily dependent on the ADM space for its revenues, which we
Sales to assets ratio x 1.6 1.1 1.0 believe, is a risk as scalability is very less over there.
Return on assets % 38.3 20.9 17.5
Return on equity % 42.1 20.7 19.4
Return on capital % 39.3 20.8 18.8
Exports to sales % 0.0 0.0 0.0
Imports to sales % 1.8 2.8 3.5
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 Regd off: Bagmane Tech. Park, Byrasandra, C.V. Raman Nagar, Bangalore - 93
MPHASIS LIMITED E-Mail: sivaram.nair@mphasis.com
Web site: www.mphasis.com
Telephone: (080) 4004 0404 Fax: (080) 4004 9999
SOFTWARE MNC Tr agent: Alpha Systems, 30, Ramana resi., 4th Cross, Sampige Rd, Bangalore - 3
Chairman: Michael Coomer SEC: A. Sivaram Nair AUD: BSR & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1992 526299 MPHL:IN 10 246.2 15.6 -20.5 20.1 13.0 1.3 51,413.4 12.5 INE356A01018
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 0
Foreign collaborators : 60.9% Imports (cif) Rs m 705
(Rs)
Indian inst/Mut Fund : 3.3% Fx inflow Rs m 15,635 360
FIIs/GDR : 16.6% Fx outflow Rs m 5,708
Free float : 19.3% Net fx Rs m 9,927
Shareholders : 24,321
295
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
230
High Rs 216 340 340
Low Rs 109 123 150
Sales per share Rs 58.4 107.3 116.1
Earnings per share Rs 9.3 11.0 12.2 165
Cash flow per share Rs 12.5 17.2 18.9 DAILY
Dividends per share Rs 3.00 3.00 3.30 100 DMA
Dividend yield (eoy) % 1.8 1.3 1.3
100
Book value per share Rs 41.0 61.5 55.4
Shares outstanding (eoy) m 161.03 164.09 208.74 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions B1:1,ESOP ESOP A,ESOP
Price / Sales ratio x 2.8 2.2 2.1 No. of months 12 12 12
Avg P/E ratio x 17.5 21.1 20.0 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 13.0 13.5 12.9
Price / Book Value ratio x 4.0 3.8 4.4 From Operations Rs m 1,664 1,668 2,011
Dividend payout % 32.2 27.3 27.0 From Investments Rs m -1,560 -1,646 -2,302
Avg Mkt Cap Rs m 26,167 37,987 51,141 From Financial Activity Rs m -63 -225 -631
No. of employees `000 11 18 27 Net Cashflow Rs m 41 -203 -921
Total wages/salary Rs m 5,294 9,515 13,802
Avg. sales/employee Rs Th 823.6 985.4 895.9 INTERIM RESULTS
Avg. wages/employee Rs Th 463.8 532.5 510.3 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 131.3 100.8 94.4 Net sales Rs m 6,017 6,323 6,576 7,422
Gross profit Rs m 701 1,105 1,075 1,230
INCOME DATA Gross profit margin % 11.7 17.5 16.3 16.6
Net Sales Rs m 9,401 17,606 24,231 Net profit Rs m 663 663 715 790
Other income Rs m 103 75 85 Net profit margin % 11.0 10.5 10.9 10.6
Total revenues Rs m 9,504 17,681 24,316
Gross profit Rs m 1,972 2,925 3,979 KEY DATA
Depreciation Rs m 518 1,017 1,402 Parameters Unit FY06 FY07 FY08
Interest Rs m 0 0 0 IT Services % of revenues 68.3 70.0 65.3
Profit before tax Rs m 1,557 1,983 2,662 BPO % of revenues 31.7 30.0 24.9
Minority Interest Rs m 0 0 0 Onsite revenues % of IT services 59.0 55.0 22.0
Prior Period Items Rs m 0 0 0 Offshore revenues % of IT services 41.0 45.0 78.0
Extraordinary Inc (Exp) Rs m 0 0 0 Revenues per employee Rs m 0.57 0.81 0.89
Tax Rs m 58 182 109
NOTES
Profit after tax Rs m 1,499 1,801 2,553
Gross profit margin % 21.0 16.6 16.4 Mphasis is a mid-sized player in the Indian software sector. However, despite its
Effective tax rate % 3.7 9.2 4.1 small size, the company has carved a niche due to its broad range of quality offerings,
particularly in the BFSI segment. The company has a special focus on the BPO
Net profit margin % 15.9 10.2 10.5
segment, which contributes to nearly 30% of the total revenues. During the period
BALANCE SHEET DATA between FY03 and FY08, Mphasis' revenues and net profits grew at compounded
rates of 40% and 31% respectively.
Current assets Rs m 3,819 7,706 9,713
Current liabilities Rs m 1,474 2,999 4,429 Mphasis' consolidated revenues grew by 38% YoY during FY08, aided by higher
Net working cap to sales % 24.9 26.7 21.8 volumes of business from existing clients and service offerings to new clients.
Current ratio x 2.6 2.6 2.2 Revenues from IT services grew by 32% YoY during the fiscal with a healthy growth
Inventory Turnover Days 0 0 0 in the financial services business. The BPO segment sales grew by 29% YoY and IT
Debtors Turnover Days 82 87 87 outsourcing service segment sales grew by 114% YoY during the fiscal. Mphasis'
Net fixed assets Rs m 1,455 2,518 3,633 profit after tax increased by 42% YoY during FY08. This was mainly on account of
Share capital Rs m 1,610 1,641 2,087 strong topline growth, maintenance of operating margins and lower taxes.
"Free" reserves Rs m 4,969 7,884 9,698
For the future, MphasiS has embarked upon a strategy of focusing on BFSI, high-
Net worth Rs m 6,606 10,085 11,569 tech and transportation in terms of verticals, and application development &
Long term debt Rs m 28 28 57 maintenance, consulting and platform-based BPO in terms of service lines. The
Total assets Rs m 7,951 12,935 15,794 success of this focused strategy remains to be seen and will only be reflected over
Interest coverage x NM NM NM the next two to three years. The company is likely to grow strongly in the future on
Debt to equity ratio x 0.0 0.0 0.0 account of its relationship with EDS. Furthermore, the company is planning a US$ 70
Sales to assets ratio x 1.2 1.4 1.5 m capital expenditure during FY09 to build up capabilities.
Return on assets % 22.6 17.8 22.0
Return on equity % 22.7 17.9 22.1
Return on capital % 23.5 19.6 22.9
Exports to sales % 0.0 0.0 0.0
Imports to sales % 0.4 3.5 2.9
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246
 Regd off: NIIT House, C-125, Okhla Phase I, New Delhi - 110 020
NIIT LIMITED E-Mail: investor@niit.com
Web site: www.niit.com
Telephone: (011) 4140 7000 Fax: (011) 2681 7344
SOFTWARE MISCELLANEOUS Tr agent: Alankit Assign., Alankit house, 2E/21, Jhandewala Extn, New Delhi - 55
Chairman: Rajendra S. Pawar SEC: Parveen Jain AUD: Price Waterhouse
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1981 500304 NIIT:IN 2 87.3 -2.7 -32.9 19.0 11.2 1.5 14,370.1 29.2 INE161A01038
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 30.1% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 111
(Rs)
Indian inst/Mut Fund : 6.8% Fx inflow Rs m 641 180
FIIs/GDR : 42.9% Fx outflow Rs m 311
Free float : 20.2% Net fx Rs m 330
Shareholders : 59,270
140
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
100
High Rs 372 804 172
Low Rs 180 261 85
Sales per share Rs 233.2 402.6 61.1
Earnings per share Rs 20.7 29.0 4.6 60
Cash flow per share Rs 40.0 53.0 7.8
DAILY
Dividends per share Rs 6.00 6.50 1.30 100 DMA
Dividend yield (eoy) % 2.2 1.2 1.0
20
Book value per share Rs 138.0 159.2 24.4
Shares outstanding (eoy) m 19.33 19.75 164.71 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - ESOP B1:2,FV2
Price / Sales ratio x 1.2 1.3 2.1 No. of months 12 12 12
Avg P/E ratio x 13.3 18.4 28.0 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 6.9 10.1 16.5
Price / Book Value ratio x 2.0 3.3 5.3 From Operations Rs m 114 566 1,255
Dividend payout % 29.0 22.4 28.3 From Investments Rs m -348 -1,237 -804
Avg Mkt Cap Rs m 5,335 10,517 21,165 From Financial Activity Rs m 517 446 -543
No. of employees `000 2 3 4 Net Cashflow Rs m 284 -225 -93
Total wages/salary Rs m 1,280 2,555 3,054
Avg. sales/employee Rs Th 1,995.1 2,474.6 2,615.1 INTERIM RESULTS
Avg. wages/employee Rs Th 566.6 795.2 793.2 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 177.1 178.3 196.6 Net sales Rs m 1,262 1,025 1,440 1,206
Gross profit Rs m 175 76 233 121
INCOME DATA Gross profit margin % 13.9 7.4 16.2 10.0
Net Sales Rs m 4,507 7,951 10,068 Net profit Rs m 59 8 282 32
Other income Rs m 84 95 102 Net profit margin % 4.7 0.8 19.6 2.7
Total revenues Rs m 4,591 8,046 10,170
Gross profit Rs m 765 1,106 1,349 KEY DATA
Depreciation Rs m 374 473 529 Parameters Unit FY06 FY07 FY08
Interest Rs m 46 161 190 Individual % of revenues 37.1 31.0 32.0
Profit before tax Rs m 429 567 732 Institutional % of revenues 26.1 12.0 13.0
Minority Interest Rs m -1 7 1 Corporate % of revenues 36.9 57.0 55.0
Prior Period Items Rs m -5 13 0 Employee cost % of revenues 28.9 32.1 30.3
Extraordinary Inc (Exp) Rs m 1 3 4
Tax Rs m 24 17 -20
NOTES
Profit after tax Rs m 400 573 757
Gross profit margin % 17.0 13.9 13.4 NIIT Ltd. is India's premier IT training company with a 30% share of the Indian IT
Effective tax rate % 5.6 3.0 -2.7 education and training market. The company has a major presence in the retail
segment, which caters to the staffing requirements of IT and BPO sectors. Apart from
Net profit margin % 8.9 7.2 7.5
the above segments, the company earns nearly 40% of its revenues from the
BALANCE SHEET DATA corporate segment, where it provides learning solutions, e-learning and content
development solutions to technology and other companies, mainly in the US and the
Current assets Rs m 3,298 4,511 4,578 UK.
Current liabilities Rs m 1,289 3,203 3,611
Net working cap to sales % 44.6 16.5 9.6 In FY08, NIIT recorded revenue growth of 27% YoY mainly due the growth in the
Current ratio x 2.6 1.4 1.3 individual and corporate learning solutions. While the former grew by 31% YoY, the
Inventory Turnover Days 7 6 5 later recorded growth of 21% YoY. The new business of Finance & Management
Debtors Turnover Days 153 101 74 Training (FMT) grew by 323% YoY to net revenue of Rs 308 m. NIIT Ltd.'s operating
Net fixed assets Rs m 1,387 3,847 3,981 margins improved marginally by 0.2% on account of higher operating expenses,
Share capital Rs m 193 198 329 which increased due to the growing level of operations, changes in product mix,
"Free" reserves Rs m 2,405 2,863 3,679 launch of new businesses and wage inflation. The net profit of the company grew by
32% YoY during the year. The bottomline was mainly aided by lower tax outgo and
Net worth Rs m 2,668 3,144 4,019
higher share of profit from associates.
Long term debt Rs m 910 1,930 1,399
Total assets Rs m 5,084 8,969 9,451 Going forward, given that the IT industry is expected to show strong growth between
Interest coverage x 10.3 4.5 4.9 25% and 30% annually over the medium-term, the improvement in sentiment for IT
Debt to equity ratio x 0.3 0.6 0.3 as a career and favourable trends in recruiting IT personnel, we believe that NIIT, with
Sales to assets ratio x 0.9 0.9 1.1 its market leadership position, could be a major beneficiary. The increase in corporate
Return on assets % 12.5 14.5 17.5 spends on training in the US, new product launches by technology majors like
Return on equity % 15.0 18.2 18.8 Microsoft and greater interest in training outsourcing from European corporates also
Return on capital % 13.1 14.8 17.1 provides NIIT with a good opportunity to grow at a faster rate in the medium-to-long
Exports to sales % 0.0 0.0 0.0 term. However, risks such as the volatile nature of the institutional business and its
Imports to sales % 0.3 0.6 1.1 lower margins could play spoilsport
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247
 Regd off: NIIT Technologies Ltd., NIIT House, C-125 Okhla Phase-1, New Delhi - 20
NIIT TECHNOLOGIES LTD. E-Mail: investors@niit-tech.com
Web site: www.niit.com
Telephone: (011) 4140 7000 Fax: (011) 2681 7344
SOFTWARE MISCELLANEOUS Tr agent: Alankit Assignments, Alankit House, 2E/21, Jhandewalan Extn., Delhi - 55
Chairman: Rajendra S. Pawar SEC: Surender Varma AUD: Price Waterhouse
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
2004 532541 NITEC:IN 10 119.0 4.5 -65.2 6.9 5.3 5.5 9,305.8 56.4 INE591G01017
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 39.7% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 59
(Rs)
Indian inst/Mut Fund : 13.0% Fx inflow Rs m 4,059 450
FIIs/GDR : 9.2% Fx outflow Rs m 1,083
Free float : 38.1% Net fx Rs m 2,976
Shareholders : 80,563
350
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
High Rs 232 535 638 250
Low Rs 118 131 85
Sales per share Rs 157.2 226.6 160.4
Earnings per share Rs 17.1 33.1 23.0 150
Cash flow per share Rs 27.2 44.2 29.7 DAILY
Dividends per share Rs 6.00 6.50 6.50 100 DMA
Dividend yield (eoy) % 3.4 2.0 1.8
50
Book value per share Rs 70.1 94.7 75.2
Shares outstanding (eoy) m 38.65 39.10 58.70 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - ESOP B1:2
Price / Sales ratio x 1.1 1.5 2.3 No. of months 12 12 12
Avg P/E ratio x 10.2 10.1 15.7 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 6.4 7.5 12.2
Price / Book Value ratio x 2.5 3.5 4.8 From Operations Rs m 969 1,616 1,175
Dividend payout % 35.0 19.7 28.2 From Investments Rs m -568 -1,742 -1,039
Avg Mkt Cap Rs m 6,764 13,020 21,220 From Financial Activity Rs m -400 17 -395
No. of employees `000 4 4 5 Net Cashflow Rs m 1 -109 -259
Total wages/salary Rs m 3,142 4,746 5,405
Avg. sales/employee Rs Th 1,714.6 1,991.7 1,839.6 INTERIM RESULTS
Avg. wages/employee Rs Th 886.8 1,067.0 1,056.1 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 186.8 290.7 264.2 Net sales Rs m 1,175 1,184 1,239 1,243
Gross profit Rs m 327 322 282 313
INCOME DATA Gross profit margin % 27.8 27.2 22.8 25.2
Net Sales Rs m 6,075 8,859 9,415 Net profit Rs m 311 285 546 245
Other income Rs m 57 185 186 Net profit margin % 26.5 24.1 44.1 19.7
Total revenues Rs m 6,132 9,044 9,601
Gross profit Rs m 1,176 1,804 1,763 KEY DATA
Depreciation Rs m 389 435 389 Parameters Unit FY06 FY07 FY08
Interest Rs m 33 38 51 BFSI % of revenues 33.0 42.0 44.0
Profit before tax Rs m 811 1,516 1,509 Transportation % of revenues 26.0 25.0 25.0
Minority Interest Rs m -12 -38 -19 Retail & Manufacuring % of revenues 16.0 12.0 12.0
Prior Period Items Rs m 0 0 0 Others % of revenues 25.0 21.0 19.0
Extraordinary Inc (Exp) Rs m -22 0 0
Tax Rs m 115 185 138
NOTES
Profit after tax Rs m 662 1,293 1,352
Gross profit margin % 19.4 20.4 18.7 NIIT Technologies is a global IT solutions provider, servicing customers in the US,
Effective tax rate % 14.2 12.2 9.1 Europe, Asia and Australia. The company offers services in Application Development
and Management, Enterprise Solutions including Managed Services and BPO to
Net profit margin % 10.9 14.6 14.4
enterprises in the BFSI, Travel & Transportation and Retail & Manufacturing sectors.
BALANCE SHEET DATA NIIT Technologies' subsidiaries NIIT SmartServe Limited and NIIT GIS Limited offer
BPO and GIS Solutions, respectively.
Current assets Rs m 2,728 3,381 3,648
Current liabilities Rs m 1,179 1,791 2,295 In FY08, NIIT Technologies posted a revenue growth of 6% YoY. This was mainly
Net working cap to sales % 25.5 17.9 14.4 driven by the growth in BFSI (banking, financial services & insurance - 44% of total
Current ratio x 2.3 1.9 1.6 revenue) and transportation (25%) segments, which grew by 11% and 6%
Inventory Turnover Days 0 0 0 respectively. The revenue profile of the company is well diversified across the three
Debtors Turnover Days 72 77 84 main geographies with Europe contributing 50% of revenues, Americas 32% and the
Net fixed assets Rs m 949 1,530 2,377 balance coming from Asia and Australia. NIIT Tech's operating margins contracted by
Share capital Rs m 386 391 587 1.7% mainly on account of higher personnel expenses (48% of revenue as compared
"Free" reserves Rs m 2,111 3,084 3,817 to 39% in FY07). The bottomline growth was a mere 5% YoY.
Net worth Rs m 2,710 3,702 4,413 Going forward, we believe that NIIT Tech will benefit directly from its strategy to
Long term debt Rs m 270 595 624 concentrate on selected verticals. The company has taken a number of inorganic
Total assets Rs m 4,326 6,356 7,337 initiatives in the recent past and the risks we see over here is that of cost overrun due
Interest coverage x 25.6 40.9 30.6 to staffing and advisory fees, due diligence lapses and most importantly the post
Debt to equity ratio x 0.1 0.2 0.1 merger integration associated with inorganic growth. Though the company is
Sales to assets ratio x 1.4 1.4 1.3 constantly de-risking its business model and not relying on selected customers for
Return on assets % 23.3 31.0 27.9 revenues and is continuously focusing on its core strength i.e., in the BFSI and
Return on equity % 24.4 34.9 30.6 transportation segments.
Return on capital % 27.2 35.3 30.6
Exports to sales % 0.0 0.0 0.0
Imports to sales % 0.4 0.3 0.6
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248
 Regd off: Unit 10-11, SDF-1, SEEPZ, Andheri (East), Mumbai - 400 096
ORACLE FINANCIAL SERV. SOFTWARE LTD. E-Mail: investors@iflexsolutions.com
Web site: www.oracle.com
Telephone: (022) 5676 2000 Fax: (022) 2829 2767
SOFTWARE MISCELLANEOUS Tr agent: Intime Spectrum, C13, Pannalal Silk Mills Compund, LBS Rd., Mumbai-78
Chairman: Rajesh Hukku SEC: Deepak Ghaisas AUD: S. R. Batliboi & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1992 532466 OFSS:IN 5 1,200.9 -17.0 -40.7 24.2 20.7 0.0 100,571.2 10.8 INE881D01027
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 0.0% Exports (fob) Rs m 0
Foreign collaborators : 80.6% Imports (cif) Rs m 226
(Rs)
Indian inst/Mut Fund : 2.3% Fx inflow Rs m 17,371 2800
FIIs/GDR : 0.2% Fx outflow Rs m 5,785
Free float : 16.9% Net fx Rs m 11,586
Shareholders : 22,322
2250
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
1700
High Rs 1,400 2,174 2,630
Low Rs 541 840 892
Sales per share Rs 194.3 247.5 284.2
Earnings per share Rs 31.2 44.7 49.6 1150
DAILY
Cash flow per share Rs 37.2 52.5 58.1
Dividends per share Rs 5.00 0.00 0.00 100 DMA
Dividend yield (eoy) % 0.5 0.0 0.0
600
Book value per share Rs 181.0 288.4 331.6
Shares outstanding (eoy) m 76.29 83.28 83.75 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions ESOP,WC PA,ESOP ESOP
Price / Sales ratio x 5.0 6.1 6.2 No. of months 12 12 12
Avg P/E ratio x 31.1 33.7 35.5 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 26.1 28.7 30.3
Price / Book Value ratio x 5.4 5.2 5.3 From Operations Rs m 1,079 1,646 4,012
Dividend payout % 16.0 0.0 0.0 From Investments Rs m -1,519 -6,718 -4,073
Avg Mkt Cap Rs m 74,039 125,503 147,484 From Financial Activity Rs m 117 6,407 14
No. of employees `000 7 9 11 Net Cashflow Rs m -323 1,335 -47
Total wages/salary Rs m 7,269 10,378 12,517
Avg. sales/employee Rs Th 2,161.4 2,272.7 2,162.6 INTERIM RESULTS
Avg. wages/employee Rs Th 1,059.9 1,144.5 1,137.3 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 346.6 410.6 377.6 Net sales Rs m 5,758 6,196 6,715 6,318
Gross profit Rs m 956 3,048 1,690 1,673
INCOME DATA Gross profit margin % 16.6 49.2 25.2 26.5
Net Sales Rs m 14,823 20,609 23,802 Net profit Rs m 874 1,067 1,848 1,062
Other income Rs m 285 360 175 Net profit margin % 15.2 17.2 27.5 16.8
Total revenues Rs m 15,108 20,969 23,977
Gross profit Rs m 3,206 4,432 5,133 KEY DATA
Depreciation Rs m 460 653 706 Parameters Unit FY06 FY07 FY08
Interest Rs m 0 0 0 Products % of revenues 51.5 54.4 58.3
Profit before tax Rs m 3,031 4,139 4,602 Services % of revenues 46.8 43.3 39.4
Minority Interest Rs m 3 0 -4 KPO % of revenues 1.6 2.2 2.0
Prior Period Items Rs m -97 0 0 Joint ventures % of revenues 0.1 0.2 0.4
Extraordinary Inc (Exp) Rs m 0 0 0
Tax Rs m 560 416 442
NOTES
Profit after tax Rs m 2,377 3,723 4,156
Gross profit margin % 21.6 21.5 21.6 Oracle Financial Services Software (OFSS), erstwhile i-flex is India's premier
Effective tax rate % 18.5 10.1 9.6 software products company, focused on the banking and financial services (BFSI)
vertical. The company's portfolio of offerings comprises products (51% of FY07
Net profit margin % 16.0 18.1 17.5
consolidated revenues) like Flexcube, an end-to-end product suite for retail,
BALANCE SHEET DATA corporate and investment banking, asset management and treasury. The company
also provides software services (49% of revenues) like application software
Current assets Rs m 14,515 20,212 23,798 development and deployment, maintenance and business and IT consulting.
Current liabilities Rs m 3,989 5,332 6,129
Net working cap to sales % 71.0 72.2 74.2 OFSS recorded a topline growth of 15% YoY in FY08, which was mainly a result of
Current ratio x 3.6 3.8 3.9 strong performance of the products division. This business, which contributed to
Inventory Turnover Days 0 0 0 almost 60% of the consolidated revenues, grew its sales by 24% YoY during the
Debtors Turnover Days 129 133 130 fiscal. Growth for the products business was led by 35% YoY increase in
Net fixed assets Rs m 3,159 8,941 9,827 implementation fees (which formed 59% of product revenues). However, the services
Share capital Rs m 381 416 419 business sales grew by a marginal 5% YoY during the fiscal. The operating margins
"Free" reserves Rs m 13,415 23,202 27,352 contracted by 1.9% YoY, largely due to cost increases in the product business. OFSS'
Net worth Rs m 13,807 24,020 27,771 net profits grew by 12% YoY during FY08. The expansion was largely driven by
Long term debt Rs m 0 0 0 increase in other income, which grew by 78% YoY, on account of higher interest
income and a one-time forex gain.
Total assets Rs m 17,727 29,212 33,680
Interest coverage x NM NM NM The management of OFSS has already acknowledged the cross-selling opportunities
Debt to equity ratio x 0.0 0.0 0.0 it is witnessing after the Oracle acquisition. Secondly, the company has already
Sales to assets ratio x 0.8 0.7 0.7 invested heavily in Islamic banking, which is slowly beginning to yield results and it
Return on assets % 17.2 15.5 15.0 expects to become a leader in providing Islamic banking solutions going forward. The
Return on equity % 17.2 15.5 15.0 growing software product business is also providing huge opportunity to OFSS.
Return on capital % 21.3 17.2 16.6
Exports to sales % 0.0 0.0 0.0
Imports to sales % 1.0 0.7 0.9
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249
 Regd off: S -1A, Irani Market Compound, Yerawada, Pune - 411 006
PATNI COMPUTER SYSTEMS LIMITED E-Mail: investors.redressal@patni.com
Web site: www.patni.com
Telephone: (022) 2669 3457 Fax: (022) 2669 3859
SOFTWARE MISCELLANEOUS Tr agent: Karvy Computershare, 46, Avenue 4, St. No. 1, Banjara Hills, Hyd. - 34
Chairman: Narendra K. Patni SEC: Arun Kanakal AUD: BSR & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1978 532517 PATNI:IN 2 228.8 1.9 -54.7 6.6 5.5 1.3 31,810.0 15.7 INE660F01012
SHAREHOLDING FX Transaction (CY07) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 29.2% Exports (fob) Rs m 11,620
Foreign collaborators : 14.6% Imports (cif) Rs m 953
(Rs)
Indian inst/Mut Fund : 4.5% Fx inflow Rs m 11,625 650
FIIs/GDR : 43.7% Fx outflow Rs m 2,287
Free float : 7.9% Net fx Rs m 9,338
Shareholders : 43,573
525
No. of months 12 12 12
Year ending 31/12/05 31/12/06 31/12/07
EQUITY SHARE DATA
400
High Rs 495 496 573
Low Rs 326 261 300
Sales per share Rs 144.2 188.6 193.6
Earnings per share Rs 14.4 17.7 34.8 275
DAILY
Cash flow per share Rs 19.3 23.8 41.9
Dividends per share Rs 2.50 3.00 3.00 100 DMA
Dividend yield (eoy) % 0.6 0.8 0.7
150
Book value per share Rs 154.2 168.6 196.8
Shares outstanding (eoy) m 137.80 138.30 139.00 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions ADS ESOP ESOP
Price / Sales ratio x 2.8 2.0 2.3 No. of months 12 12 12
Avg P/E ratio x 28.5 21.4 12.5 Year ending 31/12/05 31/12/06 31/12/07
CASH FLOW
P/CF ratio (eoy) x 21.2 15.9 10.4
Price / Book Value ratio x 2.7 2.2 2.2 From Operations Rs m 3,047 2,292 4,120
Dividend payout % 17.3 16.9 8.6 From Investments Rs m -4,795 -6,631 -4,822
Avg Mkt Cap Rs m 56,567 52,347 60,674 From Financial Activity Rs m 5,159 -310 -363
No. of employees `000 12 13 15 Net Cashflow Rs m 3,411 -4,649 -1,065
Total wages/salary Rs m 11,198 14,447 15,390
Avg. sales/employee Rs Th 1,683.5 2,036.9 1,800.7 INTERIM RESULTS
Avg. wages/employee Rs Th 948.8 1,128.3 1,029.8 3QCY07 4QCY07 1QCY08 2QCY08
Avg. net profit/employee Rs Th 168.4 191.2 323.7 Net sales Rs m 6,747 3,165 6,934 7,673
Gross profit Rs m 1,169 1,014 1,064 1,067
INCOME DATA Gross profit margin % 17.3 32.0 15.3 13.9
Net Sales Rs m 19,869 26,080 26,911 Net profit Rs m 993 859 801 1,192
Other income Rs m 199 519 1,424 Net profit margin % 14.7 27.1 11.6 15.5
Total revenues Rs m 20,068 26,599 28,335
Gross profit Rs m 3,740 5,674 5,287 KEY DATA
Depreciation Rs m 678 843 985 Parameters Unit CY05 CY06 CY07
Interest Rs m 81 190 147 United States % of revenues 84.8 80.8 77.9
Profit before tax Rs m 3,180 5,160 5,579 Europe % of revenues 9.1 11.6 14.7
Minority Interest Rs m 0 0 0 Japan % of revenues 4.3 3.8 3
Prior Period Items Rs m -713 -221 0 Asia Pacific (excluding Japan) % of revenues 0.7 2.3 2.7
Extraordinary Inc (Exp) Rs m 183 77 266 Reat of the world % of revenues 1.1 1.5 1.7
Tax Rs m 663 2,568 1,008
NOTES
Profit after tax Rs m 1,987 2,448 4,837
Gross profit margin % 18.8 21.8 19.6 Patni Computer Systems (PCS) is engaged in providing software solutions and
Effective tax rate % 20.8 49.8 18.1 services, domestically and internationally. The company's offerings include
application development and integration, application maintenance, enterprise
Net profit margin % 10.0 9.4 18.0
application systems, R&D services and business process outsourcing services. PCS
BALANCE SHEET DATA has a substantial presence in the financial services, insurance, telecom and
manufacturing verticals.
Current assets Rs m 11,766 9,041 9,529
Current liabilities Rs m 4,492 6,169 6,827 PCS' topline grew by a marginal 3% YoY during CY07. The growth was mainly driven
Net working cap to sales % 36.6 11.0 10.0 by Product Engineering Service business, which grew by 22% and accounted for
Current ratio x 2.6 1.5 1.4 17% of total revenue. The Manufacturing segment registered growth of 13% (24%
Inventory Turnover Days 0 0 0 of total revenue). The company's operating margins contracted by 2% from 22% in
Debtors Turnover Days 59 72 72 CY06. The net profit increased by 98% chiefly on account of higher other income and
Net fixed assets Rs m 4,173 5,869 8,317 lower tax expense.
Share capital Rs m 276 277 278
PCS' revenues from the US form a considerable chunk of the total business and are
"Free" reserves Rs m 20,965 23,021 27,455
considerably higher (in proportionate terms) compared to its peers. As such, the
Net worth Rs m 21,247 23,324 27,361 company faces considerable risk to its business and profitability because of adverse
Long term debt Rs m 19 17 13 development in the US markets. In terms of operating metrics, PCS trails its peers
Total assets Rs m 25,192 29,009 33,641 across parameters like sales growth, operating margins, profit growth, revenue de-
Interest coverage x 40.3 28.2 39.0 risking and revenues per employee. Going forward, the consistency of performance
Debt to equity ratio x 0.0 0.0 0.0 will need to be watched if the stock is to be warranted as an investment vis--vis
Sales to assets ratio x 0.8 0.9 0.8 larger peers like Infosys and TCS, which have maintained more consistent financial
Return on assets % 9.7 11.3 18.2 performances and have greater scalability.
Return on equity % 9.4 10.5 17.7
Return on capital % 12.8 22.3 21.9
Exports to sales % 43.8 38.0 43.2
Imports to sales % 1.6 1.1 3.5
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 Regd off: 139 / 25, Ring Road, Domlur, Bangalore - 71
SASKEN COMM. TECHNOLOGIES LTD. E-Mail: investor@sasken.com
Web site: www.sasken.com
Telephone: (080) 3989 1122 Fax: (080) 3981 3329
SOFTWARE MISCELLANEOUS Tr agent: Karvy Computer, Plot 17-24, Vittalrao Nagar, Madhapur, Hyderabad - 81
Chairman: Rajiv C. Mody SEC: R. Vittal AUD: S. R. Batliboi & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1989 532663 SACT:IN 10 142.3 -4.9 -62.3 10.3 6.1 2.8 4,064.1 504.0 INE231F01020
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 22.0% Exports (fob) Rs m 0
Foreign collaborators : 4.5% Imports (cif) Rs m 18
(Rs)
Indian inst/Mut Fund : 6.4% Fx inflow Rs m 3,817 670
FIIs/GDR : 8.1% Fx outflow Rs m 681
Free float : 59.1% Net fx Rs m 3,136
Shareholders : 39,150
515
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
360
High Rs 575 624 584
Low Rs 301 240 84
Sales per share Rs 110.3 167.4 199.6
Earnings per share Rs 4.6 15.5 13.8 205
Cash flow per share Rs 11.2 23.8 23.4 DAILY
Dividends per share Rs 3.00 4.00 4.00 100 DMA
Dividend yield (eoy) % 0.7 0.9 1.2
50
Book value per share Rs 137.8 148.1 160.6
Shares outstanding (eoy) m 27.94 28.50 28.56 Sep-05 Jun-06 Mar-07 Dec-07 Sep-08
Bonus/Rights/Conversions PI,PA ESOP ESOP
Price / Sales ratio x 4.0 2.6 1.7 No. of months 12 12 12
Avg P/E ratio x 95.6 27.9 24.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 39.1 18.2 14.3
Price / Book Value ratio x 3.2 2.9 2.1 From Operations Rs m 69 288 595
Dividend payout % 65.5 25.8 29.0 From Investments Rs m -2,256 -837 -101
Avg Mkt Cap Rs m 12,238 12,312 9,539 From Financial Activity Rs m 2,229 740 -271
No. of employees `000 3 4 4 Net Cashflow Rs m 43 191 215
Total wages/salary Rs m 1,832 2,890 3,641
Avg. sales/employee Rs Th 1,196.5 1,321.2 1,573.8 INTERIM RESULTS
Avg. wages/employee Rs Th 711.5 800.3 1,005.0 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 49.7 122.4 108.7 Net sales Rs m 1,432 1,413 1,573 1,681
Gross profit Rs m 199 124 264 332
INCOME DATA Gross profit margin % 13.9 8.8 16.8 19.8
Net Sales Rs m 3,081 4,771 5,702 Net profit Rs m 143 39 148 138
Other income Rs m 64 97 234 Net profit margin % 10.0 2.8 9.4 8.2
Total revenues Rs m 3,145 4,868 5,936
Gross profit Rs m 387 726 648 KEY DATA
Depreciation Rs m 185 235 274 Parameters Unit FY06 FY07 FY08
Interest Rs m 1 45 40 Software services % of revenues 83.8 89.2 85.86
Profit before tax Rs m 265 543 568 Network engineering services % of revenues 7.3 6.1 6.0
Minority Interest Rs m 0 0 0 Software products % of revenues 8.9 4.7 8.14
Prior Period Items Rs m 0 0 0
Extraordinary Inc (Exp) Rs m -68 0 0
Tax Rs m 69 101 174
NOTES
Profit after tax Rs m 128 442 394
Gross profit margin % 12.6 15.2 11.4 Sasken is an embedded communications solutions company that helps businesses
Effective tax rate % 26.0 18.6 30.6 across the communications value chain accelerate product development life cycles.
The company offers combination of research and development consultancy, wireless
Net profit margin % 4.2 9.3 6.9
software products and software services, and works with network OEMs (original
BALANCE SHEET DATA equipment manufacturers), semiconductor vendors, terminal device OEMs and
operators across the world.
Current assets Rs m 1,223 2,212 2,801
Current liabilities Rs m 381 778 899 Sasken witnessed a topline growth of 20% YoY during FY08, which was driven by
Net working cap to sales % 27.3 30.1 33.4 15% YoY growth in software services revenue, 102% YoY growth in software
Current ratio x 3.2 2.8 3.1 products revenue and 19% YoY growth in network engineering revenue. The revenue
Inventory Turnover Days 4 1 2 mix amongst software services, network engineering services and software products
Debtors Turnover Days 77 85 85 was 86:6:8 during the fiscal, as against 89:6:5 in FY07. Sasken's EBITDA margins
Net fixed assets Rs m 1,011 2,996 3,072 contracted by 2% largely due to high costs incurred in the products development
Share capital Rs m 279 285 286 segment and its subsequent amortisation. The company's bottomline declined by
"Free" reserves Rs m 3,563 3,954 4,159 11% YoY mainly on account of lower operating profit and higher tax outgo.
Net worth Rs m 3,850 4,220 4,588 Going forward, the opportunities are huge for Sasken. In the network equipment
Long term debt Rs m 0 828 876 space, platforms are being standardized and companies are moving towards a
Total assets Rs m 4,241 5,908 6,352 Service Oriented Architecture (SOA) approach. Opportunities for support and
Interest coverage x 266.0 13.1 15.2 deployment of 2.5G/3G networks are also high, as more networks get rolled out
Debt to equity ratio x 0.0 0.2 0.2 across the world, especially in emerging nations. But the real threat is from the fact
Sales to assets ratio x 0.7 0.8 0.9 that as the scale of operation increases, the company may not to be able to recruit
Return on assets % 3.4 9.6 7.9 and retain quality talent to meet customer requirements.
Return on equity % 3.3 10.5 8.6
Return on capital % 5.1 11.6 11.1
Exports to sales % 0.0 0.0 0.0
Imports to sales % 5.7 3.1 0.3
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251
 Regd off: Mayfair Centre, 1-8-303/36, Sardar Patel Road, Secunderabad - 3
SATYAM COMPUTER SERVICES LTD. + $ E-Mail: investorservices@satyam.com
Web site: www.satyam.com
Telephone: (040) 3065 4343 Fax: (040) 2789 7769
SOFTWARE MISCELLANEOUS Tr agent: In-house
Chairman: B. Ramalinga Raju SEC: G Jayaraman (VP-Corp Gov) AUD: Price Waterhouse
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1987 500376 SCS:IN 2 415.8 4.0 -7.3 16.6 15.1 0.8 279,629.7 311.4 INE275A01028
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 8.6% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 916
(Rs)
Indian inst/Mut Fund : 14.4% Fx inflow Rs m 65,354 580
FIIs/GDR : 67.1% Fx outflow Rs m 47,745
Free float : 9.9% Net fx Rs m 17,609
Shareholders : 191,221
490
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
400
High Rs 862 525 522
Low Rs 364 271 305
Sales per share Rs 147.7 97.2 126.4
Earnings per share Rs 35.2 21.1 25.2 310
DAILY
Cash flow per share Rs 39.4 23.3 27.6
Dividends per share Rs 7.00 3.50 3.50 100 DMA
Dividend yield (eoy) % 1.1 0.9 0.8
220
Book value per share Rs 133.1 85.5 108.0
Shares outstanding (eoy) m 324.45 667.20 670.48 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions ESOP B1:1,ESOP ESOP
Price / Sales ratio x 4.1 4.1 3.3 No. of months 12 12 12
Avg P/E ratio x 17.4 18.9 16.4 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 15.6 17.1 15.0
Price / Book Value ratio x 4.6 4.7 3.8 From Operations Rs m 7,511 9,962 13,286
Dividend payout % 19.9 16.6 13.9 From Investments Rs m -451 -17,088 -5,387
Avg Mkt Cap Rs m 198,888 265,546 277,243 From Financial Activity Rs m 343 702 -2,368
No. of employees `000 29 36 46 Net Cashflow Rs m 7,404 -6,424 5,531
Total wages/salary Rs m 28,053 38,596 52,634
Avg. sales/employee Rs Th 1,674.3 1,818.1 1,843.3 INTERIM RESULTS
Avg. wages/employee Rs Th 980.1 1,082.0 1,145.0 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 398.9 393.8 367.2 Net sales Rs m 20,317 21,956 24,160 26,208
Gross profit Rs m 4,027 4,712 5,506 6,323
INCOME DATA Gross profit margin % 19.8 21.5 22.8 24.1
Net Sales Rs m 47,926 64,851 84,735 Net profit Rs m 4,091 4,337 4,668 5,477
Other income Rs m 1,168 1,833 2,672 Net profit margin % 20.1 19.8 19.3 20.9
Total revenues Rs m 49,094 66,684 87,407
Gross profit Rs m 11,551 15,297 18,284 KEY DATA
Depreciation Rs m 1,373 1,484 1,636 Parameters Unit FY06 FY07 FY08
Interest Rs m 24 80 137 Software Dev. and Maintenance % of revenues 50.5 47.5 44.0
Profit before tax Rs m 11,322 15,566 19,183 Consl. and Enter. Business Soln. % of revenues 38.9 41.4 44.9
Minority Interest Rs m 6 1 0 Extended Engineering Solutions % of revenues 6.6 6.6 6.8
Prior Period Items Rs m 0 0 0 Infra. Management Services % of revenues 3.9 4.6 4.3
Extraordinary Inc (Exp) Rs m 2,164 0 0 Employee cost % of revenues 58.5 59.5 45.5
Tax Rs m 2,075 1,520 2,304
NOTES
Profit after tax Rs m 11,417 14,047 16,879
Gross profit margin % 24.1 23.6 21.6 Satyam is one of the leading players in the Indian software services space and its
Effective tax rate % 18.3 9.8 12.0 offerings include software development and maintenance (44% of revenues),
consulting and enterprise business solutions (45%), extended engineering solutions
Net profit margin % 23.8 21.7 19.9
and infrastructure management services. The IT Services segment provides a range
BALANCE SHEET DATA of services, including software development, packaged software integration, system
maintenance, and engineering design services. Its BPO segment provides services
Current assets Rs m 45,752 60,291 75,372 covering human resource, finance and accounting, customer contact, and transaction
Current liabilities Rs m 7,130 9,947 14,480 processing. Its Software Products segment engages in the product development and
Net working cap to sales % 80.6 77.6 71.9 creation of propriety software.
Current ratio x 6.4 6.1 5.2
Inventory Turnover Days 0 0 0 Satyam recorded a topline growth of 31% YoY in FY08. This was a combined result
Debtors Turnover Days 89 98 102 of higher volumes and improved billing rates. The application development and
Net fixed assets Rs m 5,573 8,223 12,794 maintenance segment, which contributes 44% of the total revenues, grew by 21%
Share capital Rs m 649 1,334 1,341 YoY. In the high-end services- consulting and enterprise business solutions, extended
"Free" reserves Rs m 34,443 47,891 62,387 engineering solutions and infrastructure management services, the revenue growth
was 42%, 35% and 24% respectively. Over the past couple of years, the company
Net worth Rs m 43,173 57,071 72,392
has managed to move up the software value chain, and the higher growth in services
Long term debt Rs m 717 731 831
like package implementation and consulting domain confirm the fact.
Total assets Rs m 51,325 68,515 88,166
Interest coverage x 472.8 195.6 141.0 Satyam emerged as the best performer among its peers during FY08, both in terms
Debt to equity ratio x 0.0 0.0 0.0 of topline and bottomline growth. This was seemingly on account of the fact that the
Sales to assets ratio x 0.9 0.9 1.0 company derives the lowest proportion of revenues from the US markets, which is
Return on assets % 26.1 24.4 23.2 currently in the midst of a slowdown. At present, Satyam has two customers with an
Return on equity % 26.4 24.6 23.3 annual run-rate greater than US$ 100 m, The company has 50 customers that
Return on capital % 30.8 27.1 26.4 exceeded US$ 10 m run-rate and the list of customers with an annual run rate of US$
Exports to sales % 0.0 0.0 0.0 1 m is 230. This wide client base demonstrates the ability of Satyam to win new
Imports to sales % 1.3 1.4 1.1 customers, and indicates future growth potential.
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252
 Regd off: 9th Flr., Nirmal Bldg., Nariman Point, Mumbai-400 021
TCS LIMITED + $ E-Mail: investor.relations@tcs.com
Web site: www.tcs.com
Telephone: (022) 6778 9595 Fax: (022) 6778 9660
SOFTWARE TATA Tr agent: TSR Darashaw, H. Moosa Patrawala Ind. Est., E.Moses Rd., Mumbai - 11
Chairman: Ratan N. Tata SEC: Suprakash Mukhopadhyay AUD: S. B. Billimoria & Co
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1960 532540 TCS:IN 1 838.2 0.9 -21.8 16.3 14.7 1.7 820,222.0 158.9 INE467B01029
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 76.4% Exports (fob) Rs m 490
Foreign collaborators : 0.0% Imports (cif) Rs m 2,728
(Rs)
Indian inst/Mut Fund : 6.4% Fx inflow Rs m 168,254 1400
FIIs/GDR : 11.2% Fx outflow Rs m 68,090 DAILY
Free float : 6.1% Net fx Rs m 100,164
Shareholders : 726,274
100 DMA
1200
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
High Rs 2,010 1,399 1,330
1000
Low Rs 1,093 728 730
Sales per share Rs 271.1 190.9 233.6
Earnings per share Rs 62.9 43.0 51.4 800
Cash flow per share Rs 68.6 47.5 57.1
Dividends per share Rs 13.50 11.50 14.00
Dividend yield (eoy) % 0.9 1.1 1.4
600
Book value per share Rs 122.6 90.4 124.7
Shares outstanding (eoy) m 489.30 978.61 978.61 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions A B1:1 -
Price / Sales ratio x 5.7 5.6 4.4 No. of months 12 12 12
Avg P/E ratio x 24.7 24.7 20.1 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 22.6 22.4 18.0
Price / Book Value ratio x 12.7 11.8 8.3 From Operations Rs m 24,883 34,719 39,068
Dividend payout % 21.5 26.7 27.3 From Investments Rs m -14,357 -18,136 -26,187
Avg Mkt Cap Rs m 759,149 1,040,752 1,007,968 From Financial Activity Rs m -9,168 -6,868 -14,410
No. of employees `000 66 89 111 Net Cashflow Rs m 1,358 9,714 -1,529
Total wages/salary Rs m 47,192 80,029 78,546
Avg. sales/employee Rs Th 1,995.2 2,089.6 2,052.2 INTERIM RESULTS
Avg. wages/employee Rs Th 709.9 895.0 705.0 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 462.7 470.7 451.1 Net sales Rs m 56,397 59,230 60,978 64,107
Gross profit Rs m 14,771 15,596 15,559 14,744
INCOME DATA Gross profit margin % 26.2 26.3 25.5 23.0
Net Sales Rs m 132,640 186,852 228,634 Net profit Rs m 12,516 13,267 12,450 12,905
Other income Rs m 877 1,622 4,861 Net profit margin % 22.2 22.4 20.4 20.1
Total revenues Rs m 133,517 188,474 233,495
Gross profit Rs m 36,837 51,400 59,544 KEY DATA
Depreciation Rs m 2,824 4,402 5,637 Parameters Unit FY06 FY07 FY08
Interest Rs m 91 95 300 Appl. Dev. and Maintenance % of revenues 71.5 52.2 48.3
Profit before tax Rs m 34,799 48,525 58,468 Enterprise Solutions % of revenues 22.5 12.2 13.1
Minority Interest Rs m -298 -428 -344 Asset Leveraged Solutions % of revenues 2.6 2.8 3.6
Prior Period Items Rs m -269 0 0 Others % of revenues 3.4 32.8 35.0
Extraordinary Inc (Exp) Rs m 1,624 629 0
Tax Rs m 5,096 6,640 7,863
NOTES
Profit after tax Rs m 30,760 42,086 50,261
Gross profit margin % 27.8 27.5 26.0 TCS is the largest software company in Asia, having a wide range of offerings and
Effective tax rate % 14.6 13.7 13.4 catering to industries like banking and financial services, manufacturing, telecom,
and retail. The company was one of the pioneers of the much-acclaimed global
Net profit margin % 23.2 22.5 22.0
delivery model and has the largest employee base in the Indian software sector. It
BALANCE SHEET DATA has grown revenues and profits from FY03 to FY08 at compounded rates of 33% and
36% respectively.
Current assets Rs m 51,653 78,266 100,305
Current liabilities Rs m 22,981 34,955 44,772 TCS grew its sales by 22% YoY during FY08, which was in fact a sub-par
Net working cap to sales % 21.6 23.2 24.3 performance as compared to its peers. The key reason for this subdued performance
Current ratio x 2.2 2.2 2.2 on the topline front can be attributed to the rupee's 11% YoY appreciation against the
Inventory Turnover Days 2 1 1 US dollar (which actually cost the company Rs 18 bn in revenue). TCS' operating
Debtors Turnover Days 90 84 86 margins contracted by 1.5% YoY during the fiscal. Substantial increase in overseas
Net fixed assets Rs m 19,981 29,116 35,765 business expenditure hurt the company hard on operating margins. TCS reported a
Share capital Rs m 489 979 979 19% YoY growth in net profits for FY08, which was subdued on the back of a poor
"Free" reserves Rs m 59,392 86,603 121,118 4QFY08 performance. The company added 212 new customers during the full year.
Net worth Rs m 59,988 88,501 122,001 Like its peers, TCS faces concerns from the external environment, especially the US
Long term debt Rs m 37 4,463 4,233 financial sector crisis and the overall economic situation. However, in the long run,
Total assets Rs m 86,019 131,137 174,781 the company would continue to benefit from the strong offshoring momentum. Pricing
Interest coverage x 383.4 511.8 195.9 (billing rates) is however expected to be stable. TCS' deal pipeline looks promising
Debt to equity ratio x 0.0 0.1 0.0 with closer of 7 deals of US$ 100 m in FY08 (increasing from 3 in FY07), 20 deals of
Sales to assets ratio x 1.5 1.4 1.3 US$ 50 m-plus and one mega deal of US$1.2 bn for 10-year with the Nielsen
Return on assets % 51.4 45.4 40.1 Company. These deals give strong revenue visibility to the company. Its geographical
Return on equity % 51.3 47.6 41.2 diversification strategy has also started witnessing traction.
Return on capital % 59.9 52.5 46.3
Exports to sales % 0.2 0.1 0.2
Imports to sales % 1.6 1.4 1.2
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253
 Regd off: Gateway Building, Apollo Bunder, Mumbai - 400 001
TECH MAHINDRA LIMITED E-Mail: investor.relations@techmahindra.com
Web site: www.techmahindra.com
Telephone: (020) 6601 8100 Fax: (020) 2542 4466
SOFTWARE MAHINDRA Tr agent: Intime Spectrum, Block 202, Akshay complx, Off Dhole Patil Rd, Pune 1
Chairman: Anand G. Mahindra SEC: Vikrant Gandhe (Asst. CS & CO) AUD: Deloitte, Haskins & Sells
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1986 532755 TECHM:IN 10 758.0 -0.1 -41.1 27.9 22.5 0.7 92,106.1 8.8 INE669C01028
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 44.3% Exports (fob) Rs m 0
Foreign collaborators : 39.2% Imports (cif) Rs m 453
(Rs)
Indian inst/Mut Fund : 3.8% Fx inflow Rs m 35,637 2200
FIIs/GDR : 1.5% Fx outflow Rs m 18,586
Free float : 11.3% Net fx Rs m 17,051 DAILY
Shareholders : 156,229 100 DMA
1750
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
1300
High Rs NM 2,050 1,729
Low Rs NM 521 575
Sales per share Rs 110.5 241.6 310.3
Earnings per share Rs 20.9 10 27.2 850
Cash flow per share Rs 24.5 14.3 33.7
Dividends per share Rs 6.9 2.3 5.5
Dividend yield (eoy) % NM 0.2 0.5
400
Book value per share Rs 54.7 75.8 103.6
Shares outstanding (eoy) m 112.44 121.22 121.36 Aug-06 Mar-07 Aug-07 Feb-08 Sep-08
Bonus/Rights/Conversions ESOP,A PI,ESOP,B ESOP
Price / Sales ratio x NM 5.3 3.7 No. of months 12 12 12
Avg P/E ratio x NM 128.3 42.4 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x NM 90.1 34.1
Price / Book Value ratio x NM 17 11.1 From Operations Rs m 1,326 337 1,946
Dividend payout % 33 22.9 20.2 From Investments Rs m -1,865 -1,242 -1,795
Avg Mkt Cap Rs m NM 155,828 139,807 From Financial Activity Rs m -7 839 102
No. of employees `000 10 20 23 Net Cashflow Rs m -546 -66 253
Total wages/salary Rs m 5,624 11,134 15,599
Avg. sales/employee Rs Th 1,184.30 1,483.10 1,645.70 INTERIM RESULTS
Avg. wages/employee Rs Th 536 563.8 681.7 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 224.2 61.5 144.2 Net sales Rs m 8,976 9,704 10,218 11,164
Gross profit Rs m 1,974 2,131 2,220 2,866
INCOME DATA Gross profit margin % 22.0 22.0 21.7 25.7
Net Sales Rs m 12,427 29,290 37,661 Net profit Rs m 1,817 1,996 2,185 2,585
Other income Rs m 340 60 1,044 Net profit margin % 20.2 20.6 21.4 23.2
Total revenues Rs m 12,767 29,350 38,705
Gross profit Rs m 2,678 7,381 8,267 KEY DATA
Depreciation Rs m 397 515 796 Parameters Unit FY06 FY07 FY08
Interest Rs m 0 61 62 Onsite revenues % of revenues 34 39 44
Profit before tax Rs m 2,621 6,865 8,453 Offsiterevenues % of revenues 66 61 56
Minority Interest Rs m 0 -1 -5 Utilization % of revenues 70 69 68
Prior Period Items Rs m 0 340 0 Active clients % of revenues 62 83 107
Extraordinary Inc (Exp) Rs m 0 -5,249 -4,401
Tax Rs m 268 740 748
NOTES
Profit after tax Rs m 2,353 1,215 3,299
Gross profit margin % 21.5 25.2 22 The company was incorporated in 1986 as Mahindra-British Telecom Limited, and
Effective tax rate % 10.2 10.8 8.8 subsequently, in February 2006, was re-christened as Tech Mahindra Limited. The
company was formed as a joint venture between Mahindra & Mahindra (M&M) and
Net profit margin % 18.9 4.1 8.8
British Telecommunications Plc. Its major focus areas are telecom service providers
BALANCE SHEET DATA (TSP) and telecom equipment manufacturers (TEM). British Telecommunications is
Tech Mahindra's largest client and has a long-standing relationship of nearly 18 years
Current assets Rs m 5,676 10,395 15,562 with the company.
Current liabilities Rs m 4,036 6,435 9,268
Net working cap to sales % 13.2 13.5 16.7 Tech Mahindra's recorded a topline growth of 29% YoY growth during FY08. This was
Current ratio x 1.4 1.6 1.7 driven by growth in the TSP segment's revenue which grew by 26% YoY during the
Inventory Turnover Days 0 0 0 fiscal (the segment contributes 91% to total revenues). Operating margins however
Debtors Turnover Days 129 102 106 contracted by 3.3%, largely on account of rupee's 11% YoY appreciation against the
Net fixed assets Rs m 2,898 4,421 5,996 US dollar, transition cost incurred to meet needs of long term contract and higher
Share capital Rs m 208 1,212 1,214 sales and administrative expense. Tech Mahindra's net profits grew by 277% YoY
"Free" reserves Rs m 5,930 7,951 11,330 during the fiscal mainly due to a sixteen fold jump in other income (excluding the
impact of extraordinary items upfront payments for taking over large size deals - fully
Net worth Rs m 6,154 9,185 12,572
booked during the fourth quarter).
Long term debt Rs m 0 0 0
Total assets Rs m 10,079 15,795 22,191 Going forward, Tech Mahindra could face challenges on the scalability front and
Interest coverage x NM 113.5 137.3 margins are also likely to be under pressure. The deal with BT is a fixed price contract
Debt to equity ratio x 0 0 0 and maintaining margins on the same will be a major challenge for the company.
Sales to assets ratio x 1.2 1.9 1.7 While a slowdown in the US and unpredictable rupee movement against the US
Return on assets % 38.2 13.9 26.7 dollar might affect the company's performance going forward, we can take comfort
Return on equity % 38.2 13.2 26.2 from the fact that it drives around 74% of its revenue from the European region and
Return on capital % 42.6 21.9 32.7 relatively much smaller portion from the US (unlike its peers who derive a majority of
Exports to sales % 0 0 0 their sales from the US).
Imports to sales % 0.8 0.8 1.2
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254
 Regd off: Doddakannelli, Sarjapur Road, Bangalore - 560 035
WIPRO LIMITED + $ E-Mail: ramachandran.venkatesan@wipro.com
Web site: www.wipro.com
Telephone: (080) 2844 0011 Fax: (080) 2844 0054
SOFTWARE MISCELLANEOUS Tr agent: Karvy Computer Share, 51/2, Vanivilas Rd, TKN Complex, Bangalore-1
Chairman: Azim Hasham Premji SEC: V. Ramachandran AUD: BSR & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1945 507685 WPRO:IN 2 426.3 -4.8 -9.8 19.0 16.5 1.4 623,181.8 140.9 INE075A01022
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 79.4% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 0
(Rs)
Indian inst/Mut Fund : 0.5% Fx inflow Rs m 0 720
FIIs/GDR : 9.1% Fx outflow Rs m 0
Free float : 11.0% Net fx Rs m 0 DAILY
Shareholders : 214,391 100 DMA
615
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
510
High Rs 586 690 635
Low Rs 272 383 324
Sales per share Rs 74.4 102.8 136.7
Earnings per share Rs 12.3 20.2 22.5 405
Cash flow per share Rs 14.3 22.7 25.9
Dividends per share Rs 5 6 6
Dividend yield (eoy) % 1.2 1.1 1.3
300
Book value per share Rs 48.4 65.8 80
Shares outstanding (eoy) m 1,425.75 1,458.99 1,461.45 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions B1:1,ESOP ESOP ESOP
Price / Sales ratio x 5.8 5.2 3.5 No. of months 12 12 12
Avg P/E ratio x 34.9 26.6 21.3 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 29.9 23.6 18.5
Price / Book Value ratio x 8.9 8.2 6 From Operations Rs m 19,560 28,051 23,059
Dividend payout % 40.7 29.8 26.7 From Investments Rs m -16,672 -19,533 -25,568
Avg Mkt Cap Rs m 611,647 782,748 700,765 From Financial Activity Rs m 266 2,495 21,985
No. of employees `000 54 68 100 Net Cashflow Rs m 3,154 11,013 19,476
Total wages/salary Rs m 43,847 62,397 82,726
Avg. sales/employee Rs Th 1,974.50 2,211.50 1,998.00 INTERIM RESULTS
Avg. wages/employee Rs Th 816.5 920.1 827.3 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 326.5 433.8 328.3 Net sales Rs m 47,574 52,706 57,156 60,365
Gross profit Rs m 9,596 10,202 11,560 12,237
INCOME DATA Gross profit margin % 20.2 19.4 20.2 20.3
Net Sales Rs m 106,030 149,982 199,796 Net profit Rs m 8,237 8,540 8,800 8,864
Other income Rs m 1,536 2,732 4,174 Net profit margin % 17.3 16.2 15.4 14.7
Total revenues Rs m 107,566 152,714 203,970
Gross profit Rs m 22,083 34,371 39,884 KEY DATA
Depreciation Rs m 2,910 3,696 4,965 Parameters Unit FY06 FY07 FY08
Interest Rs m 35 124 1,690 Technology Infra. Services % of revenues 8.2 11.0 12.0
Profit before tax Rs m 20,674 33,283 37,403 Package Implementation % of revenues 10.9 11.0 11.0
Minority Interest Rs m -1 6 -24 Consulting % of revenues 1.3 1.0 1.0
Prior Period Items Rs m 0 0 0 BPO % of revenues 9.6 8.0 9.0
Extraordinary Inc (Exp) Rs m 251 0 0 ADM % of revenues 70.0 69.0 55.0
Tax Rs m 3,391 3,868 4,550
NOTES
Profit after tax Rs m 17,533 29,421 32,829
Gross profit margin % 20.8 22.9 20 Wipro is India's third largest software services exporter and also has interests in the
Effective tax rate % 16.4 11.6 12.2 hardware and consumer care and lighting businesses. The IT Services segment
provides research and development services for hardware and software design to
Net profit margin % 16.5 19.6 16.4
technology and telecommunication companies and software application development
BALANCE SHEET DATA services to corporate enterprises. The BPO services segment provides services to
global corporations. The India and Asia Pacific IT Services and Products segment
Current assets Rs m 45,013 70,433 115,997 focuses on addressing the IT and electronic commerce requirements of companies
Current liabilities Rs m 31,215 42,383 54,420 in India, Middle-East and Asia-Pacific regions. Over the period FY03 to FY08, Wipro's
Net working cap to sales % 13 18.7 30.8 consolidated revenues and profits have grown at compounded annual rates of 36%
Current ratio x 1.4 1.7 2.1 and 32% respectively.
Inventory Turnover Days 7 10 12
Debtors Turnover Days 73 71 74 Wipro's strong performance on the topline front, which grew by 33% YoY during
Net fixed assets Rs m 21,683 37,962 83,792 FY08, was mainly aided by robust growth in the global IT services division (23% YoY
Share capital Rs m 2,852 2,918 2,923 growth). Wipro recorded a 2.9% YoY reduction in its operating margins during FY08.
"Free" reserves Rs m 62,735 92,320 112,137 This was chiefly on account of the rupee's 11% YoY appreciation against the US
dollar. The company managed only 12% YoY growth in net profits for FY08 on
Net worth Rs m 69,056 95,995 116,954
account of the contraction in operating margins as also a sharp increase in interest
Long term debt Rs m 302 2,870 44,315
expenses. The company interest expenses increased by almost 13 times on account
Total assets Rs m 97,508 141,644 215,811 of the loans that it had taken on its books for funding the acquisitions of Infocrossing
Interest coverage x 591.7 269.4 23.1 and Unza.
Debt to equity ratio x 0 0 0.4
Sales to assets ratio x 1.1 1.1 0.9 Going forward we believe that the company will immensely benefit from the strong
Return on assets % 25.3 29.9 21.4 offshoring potential and increase in IT spend by companies based in the US, Europe
Return on equity % 25.4 30.6 28.1 and emerging markets. However, the major issue for Wipro will be maintaining
Return on capital % 30.2 33.8 24.2 operating margins, which the company is expected to improve on the back of
Exports to sales % 66.5 0 0 initiatives like operational improvement, increased offshore contribution and higher
Imports to sales % 3.6 0 0 utilisation levels.
GET MORE INFO AT WWW.EQUITYMASTER.COM

255
 STEEL
India is currently the fifth largest steel-producing nation in the
world with production of over 53 million tonnes (MT). However,
it has a very low per capita consumption of steel of around 46
kgs as against an average of 200 kgs of the world. This wide
gap in relative steel consumption indicates that the potential
ahead for India to raise its steel consumption is high.
Being a core sector, steel industry tracks the overall economic
growth in the long term. Also, steel demand, being derived
from other sectors like automobiles, consumer durables and
infrastructure, its fortune is dependent on the growth of these
user industries.
The Indian steel sector enjoys advantages of domestic
availability of raw materials and cheap labour. Iron ore is also
available in abundant quantities. This provides major cost
advantage to the domestic steel industry, with companies like
Tata Steel being one of the lowest cost producers in the world.
However, Indian steel companies have to bear additional costs
pertaining to capital equipment, power and inefficiencies (low
per employee productivity). This has resulted in the erosion of
the edge they would have otherwise enjoyed due to availability
of cheap labour and raw materials.
The basic import duty on steel has been consistently brought
down and is nil currently while the government has levied
exports duty on steel products. The global prices of steel are
rising continuously due to increasing prices of raw materials
while the domestic prices of steel are held back and are lower
than the global prices.
FY08
FY08 was the sixth consecutive year of impressive
performance for the Indian steel industry. Domestic
consumption increased by over 11% YoY (nearly 49 MT) from
about 44 MT in FY07. Moreover strong demand from domestic
markets made imports to register a record growth of 46%
YoY. Production growth, on the other hand, grew at 6% YoY,
nearly touching the 53 MT mark. Thus, steel production has
grown at a compounded rate of 9% during the period FY03 to
FY08.
Apart from infrastructure activities, demand for steel is
dependent on the growth of auto and consumer durables. Both
these sectors continued to perform well in FY08. To put things
in perspective, for FY08, production of LCVs recorded an
increase of 13% YoY. Further, the passenger cars/multi-utility
vehicles continued with its robust performance by registering
a higher consumption of 14% YoY respectively. The consumer
durables sector also ended FY08 with nearly double-digit
production numbers in various categories like air-conditioners
and refrigerators.
Domestic steel prices and the international steel prices
remained buoyant during the year under review. However, the
domestic prices are lower than the global prices due to control
of government over the prices to curb the inflation. Thus there
has been significant pressure on margins from increased raw
material prices. In fact, sustained performance by steel
companies could be attributed to the demand growth and
production, leading to gains for domestic steel companies. It
must be noted that integrated steel companies are relatively
insulated from the volatilities in input prices owing to the
advantage of having their own mines to meet their input
requirements.
CURRENT SCENARIO AND PROSPECTS
The International Iron & Steel Institute (IISI) forecasts global
steel consumption to grow by more than 6% in 2008 and 2009,
driven by strong demand from Asia, Africa and South America.
The apparent steel demand is likely to increase by 500 MT to
reach a level of 1,750 MT in 2016 a growth of 4% CAGR over
the consumption level of 2007. China is expected to remain
the largest market with steel demand likely to increase by 13%
(46 MT) in 2007, which represents 71% of global steel
consumption growth in 2007.
However, the concern with respect to new steel capacities
cropping up across the globe have become louder, as this
development would lead to significant pressure on steel prices
going forward. Further, the biggest disruption in the growth
pattern could be from an expected slowdown in Chinese steel
consumption, which would make available a good amount of
excess steel for world consumption. As global companies have
realised the threat of excess supply, they are looking at M&A
(mergers and acquisitions) option to retain market share and
improve margins. On the domestic front, steel consumption is
expected to increase to 65 MT by FY10 and over 125 MT by
FY 2014-15.
Also, the domestic steel sector may face threat from cheap
imports, now that the import duties on steel in India being
amongst the lowest in the world. Import pressures could
consequently lead to pressure on margins of the domestic
companies on account of lower steel realisations. However,
if the Indian government increases the import duty on steel
products, domestic steel industry could get protection to an
extent. But since India has already agreed to the WTO norms,
it might become difficult for the government to increase duties
substantially.
Going forward, we remain apprehensive about the continuation
of the strong performance by steel companies. Though we
believe that volume growth would be visible in the years to
come, largely due to the continuation of infrastructure spending
(including housing), strong demand from the auto sector, which
could help in driving demand for value added steel products
like CR (cold roll) steel and exports, we expect realisations to
come under pressure on account of excessive supplies.
However, a sharp fall in steel prices could be prevented if
steel producers across the globe take conscious efforts at
curtailing production.
The government over the last couple of years has continued
to lay emphasis on continuation of infrastructure activities in
the country. Increased spending on infrastructure will be a
key positive for the steel sector, as the demand for steel will
get a boost. The continuance of tax sops to the housing sector
is another positive for steel demand.
KEY POINTS
Supply: With trade barriers having been lowered over the
years, imports play an important role in the domestic markets.
Demand: The demand is derived from sectors that include
infrastructure, consumer durables and automobiles.
Barriers to entry: High capital costs, technology.
Bargaining power of suppliers: The government's move
on railway freight costs and grid power costs would
determine the final price of the metal.
Bargaining power of customers: High, presence of a large
number of suppliers and access to global markets.
Competition: High, presence of a large number of players
in the unorganized sector.
256
 STEEL
GLOBAL COMPARISON
FY08/CY07 Unit Tata Steel ArcelorMittal Posco Nucor Corp
Production MTPA 29 116 31 20
Revenues US$ m 32,655 105,216 33,795 16,592
EBDITA US$ m 4,331 19,400 5,260 2,552
EBDITA margin % 13.3 18.4 15.6 15.4
Net profit US$ m 3,066 10,368 3,867 1,472
Net profit margin % 9.4 9.9 11.4 8.9
Return on equity % 36.0 18.3 15.5 29.4
Debt to equity x 1.4 0.4 0.2 0.4
Return on asset % 13.0 8.3 10.9 17.0

POSCO (KOREA)

POSCO is a leading steel-manufacturing company engaged in the production and selling of steel products, including
hot-rolled and cold-rolled products, plates, wire rods, silicon steel sheets and stainless steel products. The company
primarily operates in Asia. It is headquartered in Kyongsang buk do, Korea. Posco operates two steel companies
in South Korea, one in Pohang and the other in Gwangyang. In addition to this, Posco operates in a joint venture
with US Steel under the name of USS-Posco, located in Pittsburgh, California. With 31 MT of production capacity, it
is the world's fourth largest company in terms of production and employs approximately 17,523 people.

ARCELOR MITTAL (LUXEMBOURG)

Created in December 2006 by the merger of Arcelor S.A. and Mittal Steel, ArcelorMittal, is world's largest steel
producer. With operations in more than 60 countries and workforce in the region of 320,000, the company produces
a range of finished and semi-finished carbon steel products. ArcelorMittal is the leader in all major global markets,
including automotive, construction, household appliances and packaging. The company also leads in R&D and
technology and holds sizeable captive supplies of raw materials and operates extensive distribution networks. Its
key pro forma financials for 2007 show combined revenues of US$ 105.2 billion and production, which was equivalent
to around 10% of world steel output.

NUCOR CORPORATION (US)

Nucor Corporation is the largest steel producer in the United States and the largest recycler with net sales of US
$16.6 bn in 2007. The company employs over 18,000 workers and operates in 17 states in the US. Nucor was
among the first steel companies in the United States to use electric arc furnace to melt recycled steel. Nucor
revolutionized the sheet steel industry by pioneering thin slab casting technology in Crawfordsville, Indiana. Thin
slab casting was a revolutionary process that substantially reduced the capital investment and costs to produce
sheet steel. Forbes magazine described this accomplishment as the most substantial, technological, industrial
innovation in the past 50 years.

Source: Yahoo Finance, Company reports TTM - Trailing twelve months

257
 Regd off: Jindal Mansion, 5A, Dr. G. Deshmukh Marg, Mumbai - 26
JSW STEEL LIMITED E-Mail: jswsl.investor@jsw.in
Web site: www.jsw.in
Telephone: (022) 2492 7000 Fax: (022) 2491 7933
STEEL & RELATED JINDAL O.P. Tr agent: Karvy Computer,Plot 17-24,Vittalrao Nagar, Madhapur, Hyderabad-81
Chairman: Mrs. Savitri Devi Jindal SEC: Lancy Varghese AUD: Deloitte Haskins & Sells
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1994 500228 JSTL:IN 10 710.4 -15.1 4.4 8.1 5.6 2.0 132,878.9 376.5 INE019A01020
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 43.9% Exports (fob) Rs m 31,585
Foreign collaborators : 3.1% Imports (cif) Rs m 32,847 (Rs)
Indian inst/Mut Fund : 7.4% Fx inflow Rs m 32,987 1525
FIIs/GDR : 26.4% Fx outflow Rs m 37,201
Free float : 19.3% Net fx Rs m -4,214
Shareholders : 589,625
1175
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
825
High Rs 396 508 1,390
Low Rs 183 205 470
Sales per share Rs 395.9 521.7 666.0
Earnings per share Rs 54.6 79.5 87.7 475
Cash flow per share Rs 80.4 109.9 127.3 DAILY
Dividends per share Rs 8.00 12.50 14.00 100 DMA
Dividend yield (eoy) % 2.8 3.5 1.5
125
Book value per share Rs 240.4 316.2 406.3
Shares outstanding (eoy) m 156.98 163.98 187.05 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions A WC WC,A
Price / Sales ratio x 0.7 0.7 1.4 No. of months 12 12 12
Avg P/E ratio x 5.3 4.5 10.6 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 3.6 3.2 7.3
Price / Book Value ratio x 1.2 1.1 2.3 From Operations Rs m 18,636 28,218 32,657
Dividend payout % 14.7 15.7 16.0 From Investments Rs m -15,927 -22,433 -97,886
Avg Mkt Cap Rs m 45,446 58,459 173,936 From Financial Activity Rs m -2,650 -3,844 66,947
No. of employees `000 NA 5 7 Net Cashflow Rs m 59 1,941 1,719
Total wages/salary Rs m 1,270 1,758 3,922
Avg. sales/employee Rs Th NA 18,020.6 17,644.1 INTERIM RESULTS
Avg. wages/employee Rs Th NA 370.3 555.5 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th NA 2,746.6 2,322.9 Net sales Rs m 24,941 25,631 41,898 36,715
Gross profit Rs m 8,359 6,920 9,473 6,327
INCOME DATA Gross profit margin % 33.5 27.0 22.6 17.2
Net Sales Rs m 62,155 85544 124,567 Net profit Rs m 5,380 3,282 3,219 2,193
Other income Rs m 167 864 2,947 Net profit margin % 21.6 12.8 7.7 6.0
Total revenues Rs m 62,322 86,408 127,514
Gross profit Rs m 16,646 26,549 34,327 KEY DATA
Depreciation Rs m 4,058 4,983 7,419 Parameters Unit FY06 FY07 FY08
Interest Rs m 3,437 3,820 5,946 HRC & CRC combined sales MT 1.3 1.5 1.9
Profit before tax Rs m 9,318 18,610 23,909 Realisation per tonne Rs 26,030 30,202 32,628
Minority Interest Rs m 0 0 -41 Exports % of sales 34.4 38.5 25.5
Prior Period Items Rs m 0 0 0
Extraordinary Inc (Exp) Rs m 3,701 661 190
Tax Rs m 4,454 6,233 7,658
NOTES
Profit after tax Rs m 8,565 13,038 16,400
Gross profit margin % 26.8 31.3 27.6 JSW Steel is a fully integrated steel producer having units across the two states of
Effective tax rate % 47.8 33.5 32.0 Karnataka and Maharashtra, producing everything from pellets to colour coated steel.
The company came into existence in 2003 through a merger between Jindal
Net profit margin % 13.8 15.2 13.2
Vijaynagar Steel (JVSL) and Jindal Iron & Steel Co. (JISCO). The company recently
BALANCE SHEET DATA acquired Southern Iron and Steel Company Ltd (SISCOL), taking the total production
capacity of company to 4.8 MTPA, making it second largest private sector steel
Current assets Rs m 25,679 24,790 41,207 company in India. The company is the only one in India to employ the rare 'Corex'
Current liabilities Rs m 21,426 22,805 47,064 technology. The company has recently inked a joint venture (JV) agreement with a
Net working cap to sales % 6.8 2.3 -4.7 Chilean entity viz. Minera Santa to develop iron ore mines and other projects in Chile
Current ratio x 1.2 1.1 0.9 and South America.
Inventory Turnover Days 54 43 64
Debtors Turnover Days 14 11 16 JSW Steel put up a good show during FY08. The standalone topline of the company
Net fixed assets Rs m 83,799 102,020 208,017 grew by 33% backed by both increased realizations and volumes. The contribution of
Share capital Rs m 2,180 2,468 2,481 domestic sales increased to 68% while, exports showed a decline and stood at 32%
"Free" reserves Rs m 37,770 50,902 70,891 of total revenues. Operating profits grew by 24%, however EBITDA margins showed
a decline from 31.5% in FY07 to 29.4% in FY08 mainly on account of increased
Net worth Rs m 37,732 51,848 75,999
prices of raw materials. The bottomline of the company grew by 34% mainly on
Long term debt Rs m 29,436 36,551 112,757
account of growth in volume and better product mix. The production of company
Total assets Rs m 110,329 129,299 261,751 showed a jump of 38% YoY mainly on account of merger of SISCOL (1 MTPA). The
Interest coverage x 3.7 5.9 5.0 company saleable steel sales grew by 31% YoY basis.
Debt to equity ratio x 0.8 0.7 1.5
Sales to assets ratio x 0.6 0.7 0.5 Like most of its peers in the sector, the company is also embarking on a huge capex
Return on assets % 17.9 19.1 11.8 plan and has emerged as the most aggressive of the lot. It plans to raise its capacity
Return on equity % 22.7 25.1 21.6 to 20 MTPA by 2010 and to 32 MTPA by 2020. The company plans to produce around
Return on capital % 24.5 26.1 15.9 16% of total steel production of India by 2020.The company has also acquired mining
Exports to sales % 33.0 38.8 25.4 rights for coal and iron ore in Africa and Latin America, so as to ensure raw material
Imports to sales % 37.6 36.3 26.4 security for its increased capacity plans thus insulating itself from input price volatility.
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258
 Regd off: Ispat Bhawan, Lodi Road, New Delhi - 110 003
STEEL AUTHORITY OF INDIA LIMITED $ E-Mail: secy.sail@sailex.com
Web site: www.sail.co.in
Telephone: (011) 2436 7481 Fax: (011) 2436 7015
STEEL & RELATED GOVERNMENT Tr agent: MCS, Sri Venkatesh Bhawan, W-40, Okhla Indl. Area, New Delhi - 20
Chairman: S. K. Roongta SEC: Devinder Kumar AUD: Ray & Ray
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1973 500113 SAIL:IN 10 146.1 -3.5 -11.4 7.9 6.8 2.5 603,451.4 3,105.4 INE114A01011
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 85.8% Exports (fob) Rs m 12,340
Foreign collaborators : 0.0% Imports (cif) Rs m 68,234 (Rs)
Indian inst/Mut Fund : 7.3% Fx inflow Rs m 12,340 320
FIIs/GDR : 4.0% Fx outflow Rs m 69,975
Free float : 2.9% Net fx Rs m -57,635
Shareholders : 342,105
245
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
170
High Rs 87 122 293
Low Rs 42 61 106
Sales per share Rs 68.1 82.2 95.8
Earnings per share Rs 7.7 15.2 18.4 95
DAILY
Cash flow per share Rs 10.7 18.2 21.5
Dividends per share Rs 2.00 3.10 3.70 100 DMA
Dividend yield (eoy) % 3.1 3.4 1.9
20
Book value per share Rs 30.2 42.0 56.2
Shares outstanding (eoy) m 4,130.40 4,130.40 4,130.40 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 0.9 1.1 2.1 No. of months 12 12 12
Avg P/E ratio x 8.4 6.0 10.8 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 6.0 5.0 9.3
Price / Book Value ratio x 2.1 2.2 3.5 From Operations Rs m 39,405 57,740 85,489
Dividend payout % 26.1 20.4 20.1 From Investments Rs m -4,472 -7,274 -16,806
Avg Mkt Cap Rs m 266,411 377,932 824,015 From Financial Activity Rs m -36,200 -14,796 -27,459
No. of employees `000 138 133 129 Net Cashflow Rs m -1,267 35,671 41,223
Total wages/salary Rs m 42,043 51,414 80,146
Avg. sales/employee Rs Th 2,035.1 2,553.2 3,071.9 INTERIM RESULTS
Avg. wages/employee Rs Th 304.2 386.6 622.2 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 229.2 471.1 589.8 Net sales Rs m 91,635 95,333 134,779 110,294
Gross profit Rs m 26,291 29,834 33,437 27,735
INCOME DATA Gross profit margin % 28.7 31.3 24.8 25.1
Net Sales Rs m 281,278 339,505 395,672 Net profit Rs m 17,002 19,346 20,635 18,351
Other income Rs m 11,578 14,923 19,144 Net profit margin % 18.6 20.3 15.3 16.6
Total revenues Rs m 292,856 354,428 414,816
Gross profit Rs m 63,430 95,143 112,007 KEY DATA
Depreciation Rs m 12,571 12,615 12,835 Parameters Unit FY06 FY07 FY08
Interest Rs m 4,459 3,272 2,454 Finished Steel Capacity MTPA 11.0 11.0 11.0
Profit before tax Rs m 57,978 94,179 115,862 Finished Steel Production MTPA 11.6 12.1 12.5
Minority Interest Rs m -2 -1 -3 Finished Steel Sales MTPA 11.0 11.4 11.9
Prior Period Items Rs m -140 170 12 Realistion per tonne Rs m 25,989 30,263 34,347
Extraordinary Inc (Exp) Rs m -9,103 1,169 0 Exports Sales % 3.4 3.0 3.0
Tax Rs m 17,057 32,880 39,905
NOTES
Profit after tax Rs m 31,676 62,637 75,966
Gross profit margin % 22.6 28.0 28.3 Steel Authority of India Ltd. (SAIL) is India's largest steel producer and is the world's
Effective tax rate % 29.4 34.9 34.4 19th largest (source: IISI). It commands almost 26% of the domestic market share
with its 14 MTPA capacity. After the merger of IISCO, it now operates 5 integrated
Net profit margin % 11.3 18.4 19.2
steel plants and 2 specialty steel plants. After bleeding at the net profit level during
BALANCE SHEET DATA the period FY99 to FY03 owing to an unfavorable steel cycle, the company turned
around in FY04 and has continued posting impressive performances one year after
Current assets Rs m 159,072 208,180 267,628 the other.
Current liabilities Rs m 108,492 112,018 135,445
Net working cap to sales % 18.0 28.3 33.4 FY08 saw the company achieve an all time high turnover and highest-ever PBT on
Current ratio x 1.5 1.9 2.0 the back of continued strength in the steel cycle. During the year, the company not
Inventory Turnover Days 82 73 64 only benefited from a favorable macro environment but also took rapid strides in
Debtors Turnover Days 25 25 29 improving internal efficiency. This resulted into a 22% jump in standalone bottomline
Net fixed assets Rs m 135,228 137,626 154,275 on the back of a 16% growth in topline in FY08 over FY07. The operating margins of
Share capital Rs m 41,304 41,304 41,304 the company remained stable at 29%. Apart from improved operating performance,
"Free" reserves Rs m 81,778 129,852 188,790 retirement of debt helped it pare its interest costs by 24% YoY and robust cash flows
ensured a 55% jump in other income. Total sales of 12.3 MT during the year, a growth
Net worth Rs m 124,908 173,597 232,291
of 3.7% over the previous year, was also a new record.
Long term debt Rs m 30,967 25,912 28,023
Total assets Rs m 294,501 346,175 422,260 Considering the fast growing demand for steel, SAIL has revised its growth plans to
Interest coverage x 14.0 29.8 48.2 expand capacity to 26 MTPA by FY11, entailing a total investment of over Rs 400 bn.
Debt to equity ratio x 0.2 0.1 0.1 Further, in order to ensure its increased raw material requirements for the future,
Sales to assets ratio x 1.0 1.0 0.9 SAIL has been forming JVs and inking pacts pertaining to development of coking coal
Return on assets % 23.2 33.0 30.1 and iron ore mines. Thus, while on one hand the demand for steel remains robust,
Return on equity % 25.4 36.1 32.7 but at the same time rising prices of raw materials may put pressure on the margins.
Return on capital % 34.1 49.5 45.5
Exports to sales % 3.9 3.4 3.1
Imports to sales % 21.9 21.4 17.2
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259
 Regd off: Bombay House, 24, Homi Mody Street, Mumbai - 400 001
TATA STEEL LTD. + $ E-Mail: cosectisco@tata.com
Web site: www.tatasteel.com
Telephone: (022) 6665 8282 Fax: (022) 6665 7724
STEEL & RELATED TATA Tr agent: TSR Darashaw, H. Moosa Patrawala Ind. Est., E.Moses Rd., Mumbai - 11
Chairman: Ratan Tata SEC: J. C. Bham AUD: Deloitte Haskins & Sells
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1907 500470 TATA:IN 10 561.1 -17.0 -17.9 3.3 2.5 2.9 409,995.8 1,734.7 INE081A01012
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 33.9% Exports (fob) Rs m 21,234
Foreign collaborators : 0.0% Imports (cif) Rs m 22,256 (Rs)
Indian inst/Mut Fund : 22.1% Fx inflow Rs m 22,886 1100
FIIs/GDR : 19.8% Fx outflow Rs m 31,203
Free float : 24.2% Net fx Rs m -8,317
Shareholders : 655,274
900
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
700
High Rs 536 671 991
Low Rs 331 385 424
Sales per share Rs 367.2 434.0 1,799.8
Earnings per share Rs 67.5 72.0 169.0 500
DAILY
Cash flow per share Rs 83.0 89.4 225.6
Dividends per share Rs 13.00 15.50 16.00 100 DMA
Dividend yield (eoy) % 3.0 2.9 2.3 300
Book value per share Rs 181.2 248.6 390.9
Shares outstanding (eoy) m 553.40 580.40 730.70
Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - PP R1:5,9:10
Price / Sales ratio x 1.2 1.2 0.4 No. of months 12 12 12
Avg P/E ratio x 6.4 7.3 4.2 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 5.2 5.9 3.1
Price / Book Value ratio x 2.4 2.1 1.8 From Operations Rs m 37,355 55,030 134,202
Dividend payout % 19.3 21.5 9.5 From Investments Rs m -25,002 -162,882 -461,953
Avg Mkt Cap Rs m 239,900 306,451 516,970 From Financial Activity Rs m -9,451 204,803 205,127
No. of employees `000 38 37 78 Net Cashflow Rs m 2,902 96,951 -122,624
Total wages/salary Rs m 16,725 18,850 166,732
Avg. sales/employee Rs Th 5,322.4 6,770.8 16,910.7 INTERIM RESULTS
Avg. wages/employee Rs Th 438.0 506.7 2,143.9 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 978.1 1,122.8 1,588.0 Net sales Rs m 324,249 318,985 360,579 435,083
Gross profit Rs m 47,576 39,561 105,056 69,739
INCOME DATA Gross profit margin % 14.7 12.4 29.1 16.0
Net Sales Rs m 203,221 251,908 1,315,143 Net profit Rs m 14,428 12,907 76,902 42,043
Other income Rs m 2,927 6,610 9,298 Net profit margin % 4.4 4.0 21.3 9.7
Total revenues Rs m 206,148 258,518 1,324,441
Gross profit Rs m 63,766 75,078 181,398 KEY DATA
Depreciation Rs m 8,604 10,110 41,370 Parameters Unit FY06 FY07 FY08
Interest Rs m 2,076 6,341 45,394 Finished Steel Sales Volume* MT 4.05 4.51 4.55
Profit before tax Rs m 56,013 65,237 103,932 Realisation per tonne* Rs 30,168 32,179 35,774
Minority Interest Rs m -186 -675 -1,399 Exports % of sales 14.0 11.2 10.9
Prior Period Items Rs m 0 0 0
* standalone basis
Extraordinary Inc (Exp) Rs m -542 -1,315 61,460
Tax Rs m 17,939 21,474 40,493
NOTES
Profit after tax Rs m 37,346 41,773 123,500
Gross profit margin % 31.4 29.8 13.8 Tata Steel is world's 6th and India's largest private sector steel company with a
Effective tax rate % 32.0 32.9 39.0 capacity of 30 m tonnes. It is among the lowest cost producers of steel in the world.
It is world's second most geographically diversified steel producer, with operations in
Net profit margin % 18.4 16.6 9.4
26 countries and commercial presence in over 50 countries.The company also has
BALANCE SHEET DATA joint venture Tata BlueScope Steel Limited, which caters the steel building and
construction applications market.
Current assets Rs m 59,081 184,441 614,667
Current liabilities Rs m 43,675 75,238 328,515 The standalone topline grew by 12% YoY and bottomline by 11% YoY in FY08. Sales
Net working cap to sales % 7.6 43.4 21.8 volumes remained nearly flat at 4.78 m tonnes compared to FY07. Although volumes
Current ratio x 1.4 2.5 1.9 growth both in the domestic markets as well as exports have remain robust for the
Inventory Turnover Days 41 46 59 industry, the company was unable to utilize the same to its advantage owing to
Debtors Turnover Days 22 24 52 capacity constraints. Adverse rupee/dollar rate also played spoilsport to some extent
Net fixed assets Rs m 107,881 142,205 419,631 as while exports in dollar terms were up more than 20%, in rupee terms they were
Share capital Rs m 5,530 5,800 7,301 higher by only 9%. The increase in realisations was on account of higher steel prices.
"Free" reserves Rs m 88,857 130,524 223,443 EBDITA margins increased by 2% to 41.8% in FY08. On consolidated basis, topline
jumped five fold to Rs. 1,315 bn and bottomline three fold to Rs. 123 bn. However,
Net worth Rs m 100,258 144,299 285,633
EBDITA margins fell to 14%. This can be owed to lower margins at Corus.
Long term debt Rs m 26,113 175,130 530,920
Total assets Rs m 202,891 493,818 1,248,472 The company has made long-term plans of becoming a 50 MTPA steel producer by
Interest coverage x 28.0 11.3 3.3 FY15 having multi-locational manufacturing facilities with strong regional presence
Debt to equity ratio x 0.3 1.2 1.9 focusing mainly on auto, packaging and construction sectors across the global
Sales to assets ratio x 1.0 0.5 1.1 markets. Its 6.8 MTPA Jamshedpur Works plans to achieve 10 MT capacity by 2010.
Return on assets % 31.2 15.1 20.7 The Company also has three greenfield steel projects in India and proposed steel
Return on equity % 37.2 28.9 43.2 making facilities in Vietnam. It is also striving towards raw materials security through
Return on capital % 45.4 21.8 25.6 joint ventures in various countries. Further, like the Corus acquisition, Tata Steel will
Exports to sales % 10.1 7.8 1.6 also resort to making acquisitions in mature markets that will provide it with a strong
Imports to sales % 8.6 8.7 1.7 research and development capability.
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 SUGAR

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261
 Regd off: Bajaj Bhavan, 2nd Floor, 226 Nariman Point, J. B. Marg, Mumbai - 21
BAJAJ HINDUSTHAN LIMITED E-Mail: investors@bajajhindusthan.com
Web site: www.bajajhindusthan.com
Telephone: (022) 2204 9056 Fax: (022) 2204 8681
SUGAR BAJAJ Tr agent: Sharepro Services, Satam Estate, Floor 3, C.G. Rd., Chakala, Mumbai-99
Chairman: Shishir Bajaj (MD) SEC: Pradeep Parakh AUD: Dalal & Shah
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1931 500032 BJH:IN 1 163.8 -5.1 20.6 308.8 13.7 0.4 23,163.0 472.7 INE306A01021
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 45.7% Exports (fob) Rs m 286
Foreign collaborators : 0.0% Imports (cif) Rs m 0 (Rs)
Indian inst/Mut Fund : 11.7% Fx inflow Rs m 286 580
FIIs/GDR : 20.9% Fx outflow Rs m 134
Free float : 21.7%
DAILY
Net fx Rs m 152
Shareholders : 72,340 100 DMA
455
No. of months 12 12 12
Year ending 30/09/05 30/09/06 30/09/07
EQUITY SHARE DATA
330
High Rs 222 569 569
Low Rs 73 180 134
Sales per share Rs 72.7 104.9 125.9
Earnings per share Rs 12.1 13.1 0.5 205
Cash flow per share Rs 15.1 18.4 11.9
Dividends per share Rs 0.50 0.60 0.60
Dividend yield (eoy) % 0.3 0.2 0.2 80
Book value per share Rs 52.8 96.3 99.4
Shares outstanding (eoy) m 116.33 141.41 141.41
Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions GDR GDR -
Price / Sales ratio x 2.0 3.6 2.8 No. of months 12 12 12
Avg P/E ratio x 12.2 28.6 662.7 Year ending 30/09/05 30/09/06 30/09/07
CASH FLOW
P/CF ratio (eoy) x 9.8 20.3 29.5
Price / Book Value ratio x 2.8 3.9 3.5 From Operations Rs m 1,434 -1,271 -2,624
Dividend payout % 4.1 4.6 113.1 From Investments Rs m -6,925 -13,776 -16,485
Avg Mkt Cap Rs m 17,159 52,958 49,706 From Financial Activity Rs m 5,510 17,221 19,471
No. of employees `000 NA NA NA Net Cashflow Rs m 19 2,175 363
Total wages/salary Rs m 297 585 1,423
Avg. sales/employee Rs Th NA NA NA INTERIM RESULTS
Avg. wages/employee Rs Th NA NA NA 4QFY08 1QFY09 2QFY09 3QFY09
Avg. net profit/employee Rs Th NA NA NA Net sales Rs m 4,323 3,440 4,903 4,589
Gross profit Rs m 2,143 940 975 180
INCOME DATA Gross profit margin % 49.6 27.3 19.9 3.9
Net Sales Rs m 8,462 14,829 17,805 Net profit Rs m 851 296 430 -354
Other income Rs m 87 874 802 Net profit margin % 19.7 8.6 8.8 -7.7
Total revenues Rs m 8,549 15,703 18,607
Gross profit Rs m 2,096 3,122 1,855 KEY DATA
Depreciation Rs m 351 759 1,611 Parameters Unit FY06 FY07 FY08
Interest Rs m 147 497 1,341 Crushing capacity TCD 31,000 53,000 96,000
Profit before tax Rs m 1,685 2,740 -295 Sugar produced m ton 0.4 0.7 1.4
Minority Interest Rs m 0 0 115 Sugar revenue % of sales 90.0 91.9 90.1
Prior Period Items Rs m 0 6 54 Sugar realisations Rs 17,925 18,442 15,258
Extraordinary Inc (Exp) Rs m 20 0 0 Inventory days days 24 31 207
Tax Rs m 301 897 -201
NOTES
Profit after tax Rs m 1,404 1,849 75
Gross profit margin % 24.8 21.1 10.4 Bajaj Hindusthan (BHL), a part of the 'Bajaj Group', is India's number one sugar and
Effective tax rate % 17.9 32.7 68.1 ethanol manufacturing company. It has ten sugar plants, which are all located in Uttar
Pradesh. BHL has a cane crushing capacity of around 96,000 TCD and is also the
Net profit margin % 16.6 12.5 0.4
country's largest ethanol producer with 640 KLPD capacity. It also commissioned the
BALANCE SHEET DATA power plant in FY08 (90 MW saleable). BHL's wholly owned subsidiary, Bajaj Eco-tec
Products Limited (BEPL), commenced trial production of environment-friendly
Current assets Rs m 1,823 8,847 20,549 Medium Density Fibre Boards (MDF) and Particle Boards (PB), both from its bagasse
Current liabilities Rs m 975 4,015 10,129 waste,. Its three units, put together, will turn out 210,000 cubic metres of MDF and
Net working cap to sales % 10.0 32.6 58.5 Particle Boards in a year.
Current ratio x 1.9 2.2 2.0
Inventory Turnover Days 24 35 89 BHL reported a flat topline growth for 9mFY08. With the sugar sector witnessing
Debtors Turnover Days 8 16 23 tough times, growth in by products provided some relief. Sugar sales fell by 6% YoY,
Net fixed assets Rs m 10,797 24,457 40,846 while the distillery division reported 112% YoY growth. The power segment
Share capital Rs m 116 141 141 contributed 8% to topline sales in 9mFY08. The operating margins in 9mFY08
"Free" reserves Rs m 5,880 12,162 12,162 improved to 16% (0.3% in 9mFY07). The improvement in operating margin was
mainly due to decrease in the cost of sugarcane, which the company has accounted
Net worth Rs m 6,142 13,615 14,060
at the rate of Rs 110 per quintal pursuant to the interim order of the Allahabad High
Long term debt Rs m 3,913 10,101 29,636
Court. However, the final decision of the Supreme Court is still pending and any
Total assets Rs m 12,671 33,305 61,395 liability in this respect will have to be accounted for
Interest coverage x 12.5 6.5 0.8
Debt to equity ratio x 0.6 0.7 2.1 Though the performance is still a tad subdued, the improving scenario of the sugar
Sales to assets ratio x 0.7 0.4 0.3 sector in recent times due to lower production and higher realisations aided the
Return on assets % 15.4 9.9 3.2 company to some extent in this quarter. The company is also increasing capacities of
Return on equity % 22.9 13.6 0.5 by products, which would provide some cushion to its overall performance. However,
Return on capital % 18.4 13.7 2.8 risks still remain on the margin front as the decision on the cane prices is still awaited.
Exports to sales % 0.0 0.8 1.6
Imports to sales % 0.1 0.0 0.0
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262
 Regd off: FMC Fortuna, 234/3A, A. J. C. Bose Road, Kolkata - 700 020
BALRAMPUR CHINI MILLS LIMITED E-Mail: santoshk.agrawala@bcml.in
Web site: www.chini.com
Telephone: (033) 2287 4749 Fax: (033) 2240 3083
SUGAR MISCELLANEOUS Tr agent: In-house
Chairman: K. N. Saraogi SEC: S. K. Agarwala AUD: G. P. Agarwal & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1975 500038 BRCM:IN 1 87.6 -4.5 43.3 61.3 0.0 22,369.0 733.2 INE119A01028
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 33.8% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 105 (Rs)
Indian inst/Mut Fund : 12.6% Fx inflow Rs m 0 200
FIIs/GDR : 32.1% Fx outflow Rs m 461
Free float : 21.5% Net fx Rs m -461 DAILY
Shareholders : 87,444 100 DMA
160
No. of months 12 18 12
Year ending 31/03/05 30/09/06 30/09/07
EQUITY SHARE DATA
120
High Rs 730 203 115
Low Rs 253 54 50
Sales per share Rs 35.1 76.5 56.2
Earnings per share Rs 5.4 11.8 -1.9 80
Cash flow per share Rs 7.0 14.5 1.5
Dividends per share Rs 1.60 3.50 0.00
Dividend yield (eoy) % 0.3 2.7 0.0
40
Book value per share Rs 21.2 36.3 34.5
Shares outstanding (eoy) m 231.80 248.15 248.15 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions FV1,R25:3 GDR -
Price / Sales ratio x 14.0 1.7 1.5 No. of months 12 18 12
Avg P/E ratio x 91.1 10.9 -43.4 Year ending 31/03/05 30/09/06 30/09/07
CASH FLOW
P/CF ratio (eoy) x 70.2 8.9 56.2
Price / Book Value ratio x 23.2 3.5 2.4 From Operations Rs m 1,179 5,577 968
Dividend payout % 29.6 29.8 0.0 From Investments Rs m -911 -8,017 -7,379
Avg Mkt Cap Rs m 113,930 31,887 20,516 From Financial Activity Rs m -160 2,413 6,412
No. of employees `000 4 4 5 Net Cashflow Rs m 109 -27 1
Total wages/salary Rs m 350 719 808
Avg. sales/employee Rs Th 2,219.3 4,290.4 2,808.1 INTERIM RESULTS
Avg. wages/employee Rs Th 95.6 162.5 162.7 4QFY08 1QFY09 2QFY09 3QFY09
Avg. net profit/employee Rs Th 341.6 659.0 -95.2 Net sales Rs m 2,925 4,275 3,080 3,163
Gross profit Rs m -16 332 1,315 835
INCOME DATA Gross profit margin % -0.5 7.8 42.7 26.4
Net Sales Rs m 8,127 18,985 13,948 Net profit Rs m -337 -1 657 169
Other income Rs m 32 72 150 Net profit margin % -11.5 0.0 21.3 5.3
Total revenues Rs m 8,159 19,057 14,098
Gross profit Rs m 2,396 4,597 762 KEY DATA
Depreciation Rs m 373 671 838 Parameters Unit FY06 FY07 FY08
Interest Rs m 192 349 644 Crushing capacity TCD 29,000 47,500 73,500
Profit before tax Rs m 1,863 3,649 -570 Sugar produced m ton 0.4 0.7 0.9
Minority Interest Rs m 0 0 0 Sugar revenue % of sales 78.9 88.1 80.9
Prior Period Items Rs m 0 0 162 Sugar realisations Rs 16,635 18,461 14,560
Extraordinary Inc (Exp) Rs m -223 0 0 Inventory days days 167 25 90
Tax Rs m 389 733 65
NOTES
Profit after tax Rs m 1,251 2,916 -473
Gross profit margin % 29.5 24.2 5.5 Balrampur Chini Mills Limited (BCML) is one of the largest integrated sugar
Effective tax rate % 20.9 20.1 -11.4 companies in India. The allied businesses of the company comprise distillery
operations, cogeneration of power and manufacturing of bio-compost. The company
Net profit margin % 15.4 15.4 -3.4
presently has nine sugar factories located in Eastern Uttar Pradesh (India) having an
BALANCE SHEET DATA aggregate sugarcane crushing capacity of 73,500 TCD, distillery and co-generation
operations of 320 KLPD and 126 MW (Saleable) respectively.
Current assets Rs m 5,860 4,728 6,803
Current liabilities Rs m 2,058 2,371 4,001 With the sugar sector witnessing volatile times, the company reported a decline of 4%
Net working cap to sales % 46.8 12.4 20.1 in topline. However the margins improved by 15% over 9mFY07 to 24%. Revenues
Current ratio x 2.8 2.0 1.7 were lower on account of decline in volumes primarily witnessed in the sugar
Inventory Turnover Days 210 38 115 segment although allied businesses continued to perform well. The improvement in
Debtors Turnover Days 14 11 12 operating margin was mainly due to decrease in the cost of sugarcane, which the
Net fixed assets Rs m 5,532 13,319 19,879 company has accounted at the rate of Rs 110 per quintal pursuant to the interim order
Share capital Rs m 232 248 248 of the Allahabad High Court. However, the final decision of the Supreme Court is still
"Free" reserves Rs m 4,673 8,794 8,320 pending and any liability in this respect will have to be accounted for.
Net worth Rs m 4,905 9,012 8,559 The company's sugar division has been severely hit due to low realisations. However,
Long term debt Rs m 1,395 3,300 9,438 the integrated model of its business was the saving grace in the overall performance.
Total assets Rs m 11,845 18,049 26,688 Cogeneration and distillery businesses would continue to deliver robust performance.
Interest coverage x 10.7 11.5 0.1 Going forward, although the management is hopeful of strong performance on
Debt to equity ratio x 0.3 0.4 1.1 account of improving sector scenario and its integrated business model, the raw
Sales to assets ratio x 0.7 1.1 0.5 material prices continue to be the determining factor. Until there is clarity on the cane
Return on assets % 22.9 26.5 1.0 pricing issue, there will be an element of uncertainty with regard to the future outlook.
Return on equity % 25.5 32.4 -5.5
Return on capital % 29.1 32.5 1.3
Exports to sales % 0.0 0.0 0.0
Imports to sales % 0.6 0.4 0.8
GET MORE INFO AT WWW.EQUITYMASTER.COM

263
 TELECOM
Although India's teledensity has improved from under 4% in
March 2001 to over 26% by the end of March 2008, we are
still way behind other developing nations. Cellular telephony
has emerged as the fastest growing segment in the Indian
telecom industry. The mobile subscriber base (GSM and CDMA
combined) has grown from under 2 m at the end of FY00 to
touch 261 m at the end of March 2008 (compounded annual
growth of nearly 85% during this eight year period). Tariff
reduction and decline in handset costs has helped the segment
to gain in scale. The cellular segment is playing an important
role in the industry by making itself available in the rural and
semi urban areas where teledensity is the lowest.
As far as Internet services are concerned, India currently has
a subscriber base of around 11 m. Of this, around 20% is
accounted for by broadband users (>=256 kbps). PSU major,
BSNL holds the top spot with a market share of over 40%,
followed by MTNL with a share of 12%. This is followed closely
by Sify, which ranks third with a market share of 11%.
FY08
FY08 saw the continuance of strong growth for the Indian
telecom market, which witnessed a 46% YoY increase in its
subscriber base during the 12-month period. At the end of
March 2008, the country's total telecom subscriber base (fixed
plus mobile) stood at 300 m. Teledensity crossed the 26%
mark by the end of the fiscal.
around 4 m users, as against 1.4 m at the end of March 2007.
KEY POINTS
Supply: Intense competition has resulted in prompt service
to the subscribers. However, smaller towns and villages
continue to have waiting periods on account of non-
availability of adequate infrastructure.
Demand: Given the low penetration levels in the country and
continuously falling tariffs, demand will continue to remain
higher in the foreseeable future across all the segments.
Barriers to entry: High capital investments, older and well-
established players who have nation wide network, license
fee, continuously evolving technology and falling tariffs.
Bargaining power of suppliers: Improved competitive
scenario and commoditisation of telecom services has led to
reduced bargaining power for services providers.
B a r g a i n i n g p o w e r o f c u s t o m e r s : A wide variety of
choices available to customers both in fixed as well as mobile
telephony has resulted in increased bargaining power for the
customers.
Competition: The entry of fourth cellular player and
commencement of WLL services has resulted in intense
competition in the bigger cities. Reducing tariffs will hurt the
new entrants, as they will be unable to recover their high
capital investments.

INDIA'S GSM MARKET IN FY08 (Million) CURRENT SCENARIO AND PROSPECTS

220 10 As far as the fixed line business goes, the low penetration
Subscriber base levels in the country and the increasing demand for data based
195 Net adds (RHS) 9 services such as the Internet will act as major catalysts in the
growth of this segment, which had a subscriber base of over
170 7 39 m at the end of FY08. The huge market share of public
sector behemoths, MTNL and BSNL is likely to get reduced
145 6 further as the penetration by private players spreads. In spite
of this the PSUs will continue to retain their dominant position
120 4 this is on account of high capital investments required in setting
Apr-07 Jul-07 Oct-07 Jan-08 up a nation wide network. As a result, the private sector players
will have to rely on key business centers and pockets of high
Source: CMIE urbanization for their growth.
Increasing choice and one of the lowest tariffs in the world
INDIAN TELECOM MARKET (Million)
have made cellular services an attractive proposition for the
average consumer. The segment's subscriber base grew by
320 100 59% YoY in FY08. Policy measures like lowering of taxes on
Subscriber base the cellular industry and benefits of enhanced FDI limits shall
250 Net adds (RHS) 80 further the prospects of the cellular industry.
180 60 The International Long Distance (ILD) telephony business is
expected to witness increased competition with the entry of
110 40 private players. Already, private players like Bharti, Reliance
and Data Access have started providing ILD services and this
40 20 has pulled the tariffs significantly down. Although increased
FY03 FY04 FY05 FY06 FY07 FY08 competition will result in depressed revenues in the near term,
low tariffs would ultimately result in increased volumes and
Source: CMIE
higher usage.

After a strong 75% YoY increase in subscriptions during FY07,
the GSM industry recorded another good performance during
FY08, growing subscriber base by 59% YoY to over 192 m.
During FY08, India's mobile subscriber base grew by 58%
YoY, from 165 m to 261 m, while the fixed subscriber base
declined by 3%, from 40.8 m to 39 m.
The year also saw a strong 67% YoY rise in the Internet
broadband subscriber base. Currently, the base stands at
According to industry estimates, total subscribers are
expected to increase by about 34% to touch 402 m by 2009.
Cellular subscribers will continue to propel the subscriber
growth. As per the CMIE, cellular subscriber base is estimated
to grow by around 40% during FY09. On the other hand, landline
subscribers are expected to decline by 6% to 37 m, while the
total teledensity is expected to touch 35% by the end of the
fiscal.

264
 TELECOM
GLOBAL COMPARISON
FY08/CY07 Unit Bharti Airtel China Mobile France Tele. Vodafone Nippon Tele
Revenues US$ m 6,736 48,939 78,651 70,782 106,809
EBIDTA margin % 40.6 53.8 35.3 36.9 29.6
Profit after tax US$ m 1,595 11,952 10,044 13,479 6,352
Net profit margin % 23.7 24.4 12.8 19.0 5.9
Return on capital employed % 24.8 32.2 11.9 8.6 10.1
Return on equity % 29.4 23.3 19.9 8.7 8.6
Cellular subscribers m 62 369 174 260 99
EBIDTA per subscriber per year US$ 44 71 160 101 319
Price/Earnings (TTM) x 20.4 13.4 9.4 11.0 5.2
EV/Subscriber (TTM) US$ 620 471 718 671 700

CHINA MOBILE (CHINA)

The company was incorporated in 1997 under the name China Telecom (Hong Kong) Limited and changed its
name to China Mobile (Hong Kong) Limited in 2000. Further, it changed its name to China Mobile Limited in May
2006. It provides mobile telecommunications services in mainland China. The company provides various voice-
related services, including local calls, domestic long distance calls, international long distance calls. As at the end
of December 2007, it had approximately 369 m subscribers. The company is headquartered in Hong Kong.

FRANCE TELECOM (FRANCE)

France Telecom S.A., through its subsidiaries, provides fixed and mobile communications, data transmission,
Internet and multimedia, and other services to consumers, businesses, and other telecommunications operators
worldwide. The company operates in four segments: Personal Communication Services, Home Communication
Services, Enterprise Communication Services, and Directories. At the end of June 2008, France Telecom served
approximately 174 m customers worldwide. The company was founded in 1990 and is based in Paris, France.

VODAFONE (UK)

Vodafone Group Plc provides an extensive range of mobile telecommunications services, including voice and data
communications, and is the world's largest mobile telecommunications company, with a significant presence in
Continental Europe, the United Kingdom, the United States and the Far East through the company's subsidiary
undertakings, associated undertakings and investments. The Group's mobile subsidiaries operate under the brand
name 'Vodafone'. In the US, its associated undertaking operates as Verizon Wireless. During the last two financial
years, Vodafone has also entered into arrangements with network operators in countries where the Group does not
hold an equity stake. Under the terms of these Partner Network Agreements, the Group and its partner networks co-
operate in the development and marketing of global services under dual brand logos. As of March 31, 2008, the
company had 260 m proportionate customers worldwide.

NIPPON TELE (JAPAN)

Nippon Telegraph and Telephone Corporation (NTT) and its subsidiaries provide fixed and mobile voice-related
services, Internet protocol/packet communications services, telecommunications equipment, systems integration,
and other telecommunications related services in Japan. The company primarily provides regional communications,
long distance and international communications, mobile communications, and data communications services.
The company's data communications business includes system integration services and network system services.
As of March 31, 2008, it provided telephone and ISDN services to 46 m subscribers and 53 m mobile phone
subscribers in Japan. The company was incorporated in 1952 and is headquartered in Tokyo, Japan.

Source: Yahoo Finance, Company reports TTM - Trailing twelve months

265
 Regd off: Qutab Ambience, H-5/12, Mehrauli Road, New Delhi - 110 030
BHARTI AIRTEL LIMITED + $ E-Mail: compliance.officer@bharti.in
Web site: www.bhartiairtel.in
Telephone: (011) 4666 6111 Fax: (011) 4666 6137
TELECOM MISCELLANEOUS Tr agent: Karvy Computershare, 46, Avenue 4, St. No. 1, Banjara Hills, Hyd. - 34
Chairman: Sunil B. Mittal SEC: Vijaya Sampath AUD: Price Waterhouse
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1995 532454 BHARTI:IN 10 804.1 -4.2 -5.3 23.9 15.0 0.0 1,526,197.9 437.8 INE397D01016
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 45.3% Exports (fob) Rs m 0
Foreign collaborators : 21.2% Imports (cif) Rs m 48,678
Indian inst/Mut Fund : 5.7% Fx inflow Rs m 15,462 1265
FIIs/GDR : 23.6% Fx outflow Rs m 64,359
Free float : 4.2% Net fx Rs m -48,897
Shareholders : 172,368
1005
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
High Rs 429 850 1,149
745
Low Rs 193 310 700
Sales per share Rs 61.6 97.2 142.3
Earnings per share Rs 10.7 21.4 33.7 485 DAILY
Cash flow per share Rs 19.4 35.2 53.8
Dividends per share Rs 0.00 0.00 0.00 100 DMA
Dividend yield (eoy) % 0.0 0.0 0.0
225
Book value per share Rs 38.8 60.6 114.5
Shares outstanding (eoy) m 1,893.88 1,895.93 1,897.91 Sep-05 Jun-06 Mar-07 Dec-07 Sep-08
Bonus/Rights/Conversions DC,BC BC,ESOP ESOP
Price / Sales ratio x 5.0 6.0 6.5 No. of months 12 12 12
Avg P/E ratio x 29.0 27.1 27.4 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 16.0 16.5 17.2
Price / Book Value ratio x 8.0 9.6 8.1 From Operations Rs m 48,699 84,664 123,244
Dividend payout % 0.0 0.0 0.0 From Investments Rs m -53,029 -83,425 -184,827
Avg Mkt Cap Rs m 588,997 1,099,639 1,754,618 From Financial Activity Rs m 3,698 3,771 59,987
No. of employees `000 11 20 26 Net Cashflow Rs m -631 5,010 -1,596
Total wages/salary Rs m 7,581 11,488 13,972
Avg. sales/employee Rs Th 10,701.0 9,210.1 10,575.2 INTERIM RESULTS
Avg. wages/employee Rs Th 695.5 574.4 547.0 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 1,860.5 2,031.1 2,503.7 Net sales Rs m 63,249 69,501 78,637 85,060
Gross profit Rs m 26,380 28,846 31,482 34,253
INCOME DATA Gross profit margin % 41.7 41.5 40.0 40.3
Net Sales Rs m 116,641 184,202 270,122 Net profit Rs m 16,438 14,286 18,989 21,667
Other income Rs m 756 1,730 3,600 Net profit margin % 26.0 20.6 24.1 25.5
Total revenues Rs m 117,397 185,932 273,722
Gross profit Rs m 40,982 73,280 109,697 KEY DATA
Depreciation Rs m 16,420 26,191 38,102 Parameters Unit FY06 FY07 FY08
Interest Rs m 1,863 2,035 2,080 Mobile subscribers m 19.6 37.1 62.0
Profit before tax Rs m 23,455 46,784 73,115 Market share (GSM) % 28.3 30.6 32.2
Minority Interest Rs m -267 -482 -1,000 Avg. Rev. per Subscriber Rs/month 452 402 357
Prior Period Items Rs m 0 -14 -1,286 Sales (Broadband & Tele. Serv.) Rs m 15 23 29
Extraordinary Inc (Exp) Rs m 0 0 0 Capex Rs m 49,834 90,711 140,000
Tax Rs m 2,909 5,667 6,876
NOTES
Profit after tax Rs m 20,279 40,621 63,953
Gross profit margin % 35.1 39.8 40.6 Bharti Airtel is the largest mobile telephony operator in the GSM space with 24.2%
Effective tax rate % 12.4 12.1 9.4 share of the Indian wireless market (as at the end of June 2008). The company, apart
from being the largest player in the mobile segment with subscribers in all the 23-
Net profit margin % 17.4 22.1 23.7
telecom circles of the country, also provides varied services like fixed line, broadband
BALANCE SHEET DATA and retail Internet access. Bharti's network spans over 364,000 non-census towns
and villages in India. During the period FY05 to FY08, the company grew its sales
Current assets Rs m 30,121 45,403 64,978 and profits at compounded annual rates of 49% and 74% respectively.
Current liabilities Rs m 70,840 104,575 148,138
Net working cap to sales % -34.9 -32.1 -30.8 Bharti's mobile services segment (70% of FY08 revenues) has continued to lead the
Current ratio x 0.4 0.4 0.4 strong growth in the company's topline. This has been made possible by a strong
Inventory Turnover Days 1 2 2 addition to the subscriber base and growth in average minutes of use per user. Strong
Debtors Turnover Days 35 37 38 subscriber addition has been duly helped by the company's faster penetration into the
Net fixed assets Rs m 162,551 229,753 361,194 non-census towns and rural market. Strong growth in the mobile business has also
Share capital Rs m 18,939 18,959 18,979 helped the company perk up its profitability on account of operating leverage benefits.
"Free" reserves Rs m 53,487 95,050 160,040 It is also looking at niche businesses in the Telemedia and Enterprise segments and
expects its DTH (direct-to-home) foray to take the company to the next level of
Net worth Rs m 73,544 114,857 217,242
growth.
Long term debt Rs m 25,884 41,597 76,940
Total assets Rs m 195,151 276,627 474,269 Bharti has reaped fruits of its early entry into the Indian GSM mobile market, which is
Interest coverage x 13.6 24.0 36.2 the fastest growing in the world, now adding over 8 m subscribers a month. We
Debt to equity ratio x 0.4 0.4 0.4 believe that this is likely to give the company a greater leverage to grow faster into
Sales to assets ratio x 0.6 0.7 0.6 the future. We expect a faster rollout of networks and lower priced (read affordable)
Return on assets % 22.3 27.3 22.4 recharge coupons to be amongst the biggest growth drivers for the company in the
Return on equity % 27.6 35.4 29.4 future. The de-merger of the tower business into a separate company is expected to
Return on capital % 25.2 30.9 24.8 help the company unlock value from this passive infrastructure, which will also add to
Exports to sales % 0.0 0.0 0.0 its cash flows.
Imports to sales % 14.0 16.3 18.0
GET MORE INFO AT WWW.EQUITYMASTER.COM

266
 Regd off: H Block, Dhirubhai Ambani Knowledge City, Navi Mumbai - 400 710
RELIANCE COMMUNICATIONS LTD. + $ E-Mail: RCOM.Investors@relianceada.com
Web site: www.rcom.co.in
Telephone: (022) 3038 6286 Fax: (022) 3037 6622
TELECOM ANIL AMBANI Tr agent: Karvy Computershare, VittalRoa Nagar, Madhapur, Hyderabad - 81
Chairman: Anil Ambani SEC: Hasit Shukla AUD: BSR & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1997 532712 RCOM:IN 5 394.0 -10.9 -26.9 15.1 9.9 0.2 813,123.0 1,194.9 INE330H01018
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 66.1% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 44,108
Indian inst/Mut Fund : 9.0% Fx inflow Rs m 12,962 862
FIIs/GDR : 12.6% Fx outflow Rs m 53,574
Free float : 12.4% Net fx Rs m -40,612
Shareholders :2,050,301
684
No. of months 15 12
Year ending 31/03/07 31/03/08
EQUITY SHARE DATA
506
High Rs 518 844
Low Rs 186 389
Sales per share Rs 84.1 91.2
Earnings per share Rs 17.3 26.2 328
Cash flow per share Rs 31.5 39.8 DAILY
Dividends per share Rs 0.50 0.75 100 DMA
Dividend yield (eoy) % 0.1 0.1
150
Book value per share Rs 112.2 140.6
Shares outstanding (eoy) m 2,044.61 2,064.03 Mar-06 Oct-06 Jun-07 Jan-08 Sep-08
Bonus/Rights/Conversions - BC
Price / Sales ratio x 4.2 6.8 No. of months 15 12
Avg P/E ratio x 20.4 23.6 Year ending 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 11.2 15.5
Price / Book Value ratio x 3.1 4.4 From Operations Rs m 128,564 44,465
Dividend payout % 2.9 2.9 From Investments Rs m -100,374 -195,955
Avg Mkt Cap Rs m 719,703 1,272,474 From Financial Activity Rs m 18,342 89,335
No. of employees `000 22 37 Net Cashflow Rs m 46,533 -62,154
Total wages/salary Rs m 10,848 11,837
Avg. sales/employee Rs Th 7,851.6 5,137.1 INTERIM RESULTS
Avg. wages/employee Rs Th 495.5 323.0 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 1,612.7 1,473.7 Net sales Rs m 45,533 47,763 52,499 52,295
Gross profit Rs m 19,366 19,862 21,671 22,639
INCOME DATA Gross profit margin % 42.5 41.6 41.3 43.3
Net Sales Rs m 171,904 188,274 Net profit Rs m 13,291 13,728 14,783 15,122
Other income Rs m 8,986 15,386 Net profit margin % 29.2 28.7 28.2 28.9
Total revenues Rs m 180,890 203,660
Gross profit Rs m 64,779 79,573 KEY DATA
Depreciation Rs m 29,193 28,053 Parameters Unit FY07 FY08
Interest Rs m 8,645 10,681 Mobile subscribers (CDMA) m 25.2 38.8
Profit before tax Rs m 35,927 56,225 Market share (CDMA) % 57.0 59.0
Minority Interest Rs m 49 -13,901 Market share (GSM) % 2.8 3.6
Prior Period Items Rs m 0 0 Avg. Revenue per Subscriber Rs/month 313 277
Extraordinary Inc (Exp) Rs m 63 14,523 ILD & NLD volumes m minutes 18,750 30,045
Tax Rs m 731 2,836
NOTES
Profit after tax Rs m 35,308 54,011
Gross profit margin % 37.7 42.3 Reliance Communication Ltd. (RCL) is the second largest private sector mobile
Effective tax rate % 2.0 5.0 telephone operator in India with a wireless (CDMA and GSM) subscriber base of
nearly 50 m. The business of the company is spread across three segments - Global,
Net profit margin % 20.5 28.7
Enterprise and Personal. The 'Global' business caters to voice and data market. The
BALANCE SHEET DATA 'Enterprise' segment serves 750 of the top 1,000 enterprises in India, by offering a
wide array of products that comprise of voice, data, Internet, and IT infrastructure
Current assets Rs m 131,130 105,817 management services. The 'Personal' segment offers voice, data and value added
Current liabilities Rs m 161,482 200,776 services for the individual consumers and enterprises, via its CDMA and GSM-based
Net working cap to sales % -17.7 -50.4 mobile and fixed wireless services.
Current ratio x 0.8 0.5
Inventory Turnover Days 10 8 During FY08, RCL reported a 32% YoY growth in its topline and a 71% YoY growth
Debtors Turnover Days 39 53 in net profits. The growth in topline was mainly due to a strong accretion to its
Net fixed assets Rs m 330,422 523,126 subscriber base. The company added a net of 17.8 m wireless subscribers (inclusive
Share capital Rs m 10,223 10,320 of GSM and CDMA) during the fiscal.
"Free" reserves Rs m 218,655 267,638
RCL has seen pressure on its wireless business growth over the past two quarters
Net worth Rs m 229,307 290,263 and this has been brought about by a decline in both ARPU (average revenues per
Long term debt Rs m 84,011 141,081 user) and MoU (minutes of usage). While wireless net additions have remained
Total assets Rs m 565,254 774,593 robust, there are increased chances that the company's profitability could be
Interest coverage x 5.2 6.3 impacted due to a fall in these two variables. While, the management seems
Debt to equity ratio x 0.4 0.5 confident of raking in a strong growth and ARPU upside from its GSM foray going
Sales to assets ratio x 0.3 0.2 forward, execution will be the key to growth, especially considering that the GSM
Return on assets % 14.0 15.0 market is already so competitive.
Return on equity % 15.4 18.6
Return on capital % 14.3 15.7 * The company was demerged as an independent entity from Reliance Inds. It has
Exports to sales % 0.0 0.0 made available only two years of financial information.
Imports to sales % 8.8 23.4
GET MORE INFO AT WWW.EQUITYMASTER.COM

267
 Regd off: Videsh Sanchar Bhavan, M. G. Road, Mumbai - 400 001
TATA COMMUNICATIONS LIMITED. $ E-Mail: satish.ranade@tatacommunications.com
Web site: www.tatacommunications.com
Telephone: (022) 6657 8765 Fax: (022) 6659 1962
TELECOM TATA Tr agent: Sharepro Services, Satam Estate, 3rd Flr., Chakala, Mumbai-99
Chairman: Subodh Bhargava SEC: Satish Ranade (CLO) AUD: S. B. Billimoria & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1986 500483 TCOM:IN 10 424.6 -4.2 5.2 1,174.9 15.2 1.1 121,011.0 24.8 INE151A01013
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 76.2% Exports (fob) Rs m 0
Foreign collaborators : 0.0% Imports (cif) Rs m 3,139
Indian inst/Mut Fund : 12.5% Fx inflow Rs m 10,353 800
FIIs/GDR : 7.8% Fx outflow Rs m 11,079
Free float : 3.4% Net fx Rs m -726
Shareholders : 56,719 DAILY
660
No. of months 12 12 12 100 DMA
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
High Rs 494 515 783
520
Low Rs 180 300 361
Sales per share Rs 160.1 302.1 289.9
Earnings per share Rs 2.4 0.5 0.4 380
Cash flow per share Rs 19.5 28.0 27.9
Dividends per share Rs 4.50 4.50 4.50
Dividend yield (eoy) % 1.3 1.1 0.8
240
Book value per share Rs 189.5 184.3 180.8
Shares outstanding (eoy) m 285.00 285.00 285.00 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 2.1 1.3 2.0 No. of months 12 12 12
Avg P/E ratio x 137.5 754.1 1,582.7 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 17.3 14.5 20.5
Price / Book Value ratio x 1.8 2.2 3.2 From Operations Rs m 9,533 8,271 12,852
Dividend payout % 183.7 832.8 1,245.1 From Investments Rs m -19,764 -12,430 -19,136
Avg Mkt Cap Rs m 95,974 116,138 163,020 From Financial Activity Rs m 12,240 2,148 6,940
No. of employees `000 4 4 5 Net Cashflow Rs m 2,010 -2,010 656
Total wages/salary Rs m 3,797 8,662 8,950
Avg. sales/employee Rs Th 11,521.2 19,566.5 16,054.0 INTERIM RESULTS
Avg. wages/employee Rs Th 958.8 1,968.2 1,738.9 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 176.3 35.0 20.0 Net sales Rs m 9,477 10,407 8,502 8,632
Gross profit Rs m 1,698 1,535 1,474 1,924
INCOME DATA Gross profit margin % 17.9 14.7 17.3 22.3
Net Sales Rs m 45,624 86,112 82,630 Net profit Rs m 732 1,131 599 984
Other income Rs m 2,314 2,027 2,748 Net profit margin % 7.7 10.9 7.0 11.4
Total revenues Rs m 47,938 88,139 85,378
Gross profit Rs m 6,249 10,604 8,471 KEY DATA
Depreciation Rs m 4,857 7,830 7,844 Parameters Unit FY06 FY07 FY08
Interest Rs m 398 1,436 1,754 ILD voice traffic bn minutes 18.3 19.7 24.4
Profit before tax Rs m 3,308 3,365 1,621 Staff costs (% of sales) % 8.3 10.1 10.8
Minority Interest Rs m 0 137 383 Employee base Nos. 4,013 4,401 5,147
Prior Period Items Rs m 109 -68 -20 Revenue per employee Rs m 11.4 19.6 16.1
Extraordinary Inc (Exp) Rs m -640 -486 -112
Tax Rs m 2,079 2,794 1,769
NOTES
Profit after tax Rs m 698 154 103
Gross profit margin % 13.7 12.3 10.3 Tata Communications (erstwhile VSNL) is the largest and incumbent international
Effective tax rate % 62.8 83.0 109.1 long distance (ILD) telephony services operator in the country. Being the pioneer of
Internet services in the country, it provides international telecommunication services,
Net profit margin % 1.5 0.2 0.1
operates a network of earth stations, switches, submarine cable systems and value
BALANCE SHEET DATA added service nodes to provide international telephony, telex and telegraph and
Internet services. The company also operates DLD (domestic long distance) and
Current assets Rs m 33,167 33,354 46,628 broadband services in the country.
Current liabilities Rs m 40,491 42,093 56,870
Net working cap to sales % -16.1 -10.1 -12.4 Tata Communications recorded a 4% YoY decline in its consolidated sales during
Current ratio x 0.8 0.8 0.8 FY08, which was largely a result of lacklustre performance of its wholesale voice
Inventory Turnover Days 1 0 0 business where revenues declined by 10% YoY. This was largely on the back of
Debtors Turnover Days 120 71 92 continued pressure on long distance tariffs due to increasing competition and
Net fixed assets Rs m 63,455 68,401 82,963 regulatory reasons. Revenues from the enterprise and carrier data business also
Share capital Rs m 2,850 2,850 2,850 recorded a decline (4% YoY) during the year. The company's EBIDTA margins came
"Free" reserves Rs m 49,077 47,498 46,066 down to 10.3%, from 12.3% in FY07. This was on the back of significantly higher
operating and other expenses.
Net worth Rs m 54,002 52,524 51,520
Long term debt Rs m 10,615 23,003 28,979 One of Tata Communications' biggest strengths is its infrastructure across the country
Total assets Rs m 115,673 121,066 143,309 as well as bandwidth capacity in the international markets. The company has linkages
Interest coverage x 9.3 3.3 1.9 to 237 countries, 30 earth stations, 12 gateway switches and ownership in nearly four
Debt to equity ratio x 0.2 0.4 0.6 submarine cables. This includes equity stake in the likes of FLAG and SEA-ME-WE
Sales to assets ratio x 0.4 0.7 0.6 that offers in-house bandwidth. In 2005, the company acquired Tyco Global Network,
Return on assets % 1.7 2.1 2.3 an undersea cable network that spans a length of 60,000 kms and connects the North
Return on equity % 1.3 0.3 0.2 American, European and Asian continents. Also, the acquisition of Teleglobe gives
Return on capital % 4.9 5.8 4.5 the company an upper hand in the Internet telephony space.
Exports to sales % 0.0 0.0 0.0
Imports to sales % 3.8 2.8 3.8
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 TEXTILES
US and European markets dominate the global textile trade, reduction in fiscal benefits, tighter environment controls and
accounting for 64% of clothing and 39% of the textile market. increasing labour costs.
With the dismantling of quotas, global textile trade is expected The Budget proposed allocations of funds to the scheme for
to grow (as per McKinsey estimates) to US$ 650 bn by 2010 Integrated Textiles Parks that will facilitate setting up of
(3-year CAGR of 10%). However, as against expectations, in dedicated textile hubs.
the post-quota regime, the resurgence in exports to the now
unregulated markets took off rather slowly.
KEY POINTS
India's overall market share at 5.7% in April 2008 was at an
all-time high, while that of China's has declined over the past Supply : The supply of denim has nearly doubled in the last
couple of months. Also, India's average realization per metre 15 months. Most new capacities in the apparel and home
has improved in recent months. textile segments are not operating at full capacities.
Post quota (FY05 - FY08) India has witnessed the third highest Demand : High for premium and branded products due to
CAGR (9%) in apparel exports to the US after Indonesia (21%) increasing per capita disposable income.
and Vietnam (17%), while China lags behind (7%).
Barriers to entry : Superior technology, skilled and unskilled
Several Indian textile companies have formed alliances with labour, distribution network, access to global customers
their global counterparts, particularly those with strong front-
Bargaining power of suppliers : Because of over supply
end capabilities, in a bid to access global markets, tap
in the unorganised market like that of denim, suppliers have
technological know-how, design skills and branding and
little bargaining power. However, premium products and
retailing ability. The alliances have been struck in most cases
branded players continue to garner higher margins.
by way of JVs or stake acquisition. Tie-up with overseas
companies will help them move up the value chain and focus Bargaining power of customers : Domestic customers -
on the more lucrative branding and retailing business. Low for premium and branded product segments.
Global customers : High due to presence of alternate low
FY08 cost sourcing destinations
Competition : High. Very fragmented industry. Competition
In FY08, the rupee's appreciation against the US dollar and
from other low cost producing nations is likely to intensify.
35% rise in cotton prices impacted the export of textiles from
India and also its profitability. To mitigate the impact of the
negative factors, Indian textiles companies took recourse to CURRENT SCENARIO AND PROSPECTS
measures such as replacing US dollar denominated export
Most large textile companies in India, realising the growth
orders with other currencies, increasing revenue from value-
potential in domestic retailing, have drawn up aggressive
added products, and diversifying into other emerging export
strategies to expand their footprint in the domestic market.
markets.
These include companies like Welspun and Himatsingka, which
Most companies in the sector timed their expansion plans FY04 were traditionally export-oriented, as also Raymond, which
onwards, so as to avail themselves of the funding under TUF has been the pioneer in domestic textile retailing.
(Technology Upgradation Fund, offering loans at 6% subsidy).
With retailers like Wal-Mart, JC Penney and GAP planning to
This led to the capex-spending phase in the textile sector
substantially increase their outsourcing from India and FDI in
peaking in the last two fiscals. Against this backdrop, we
single brand retailing making its way into the country, the
believe most of the capex in the sector has already been
opportunities for domestic apparel exporters are immense.
incurred or is in the last leg of completion. With the FY08
However, oversupply led pricing pressures and forex losses
Union Budget allowing the scheme to continue during the 11th
continue to mar the long-term earnings visibility of the textile
plan (2007- 2012), the smaller players in the sector would
companies.
continue to benefit. However, we believe that given the steep
interest rates, most players in the sector would wait until the India and China are currently competing in the same categories
new capacities stabilise and the utilisation levels get (premium segment) of apparels and home textiles and given
normalised, before embarking on further expansions. India's established presence in the high end segment, India
could gain significant market share in US apparel imports.
The global textile industry also faced the brunt of economic
However, the ongoing economic slowdown in the US could
slowdown in FY08, wherein, the US textiles and clothing
result in lower orders from US retailers that, in turn, may result
imports declined by 3.8% YoY due to lower offtake by US
in lower capacity utilisation and impact profitability of textile
retailers. US' total textiles imports from China dipped 5.4%
companies in India.
while imports from India registered a reasonable 4.6% growth.
Notably, China has been seeing slowdown in exports since
the past few months due the appreciation of its currency,

OVERSEAS ALLIANCES
Indian company Overseas entity Profile of overseas entity Nature of alliance
Raymond UCO NV, Belgium Market leader in high-end denim in Europe JV (50:50)
Gruppo Zambaiti, Italy Amongst Italy's top 3 high fashion cotton textile companies JV (50:50)
Lanificio Fedora, Italy Largest producer of carded wollen fabrics in the world JV (50:50)
Arvind Ltd. VF Corporation VF Corp owns popular denim and apparel brands including JV(40% stake of Arvind)
Lee, Wrangler, Vanity Fair, Nautica, JanSports and Kipling
Welspun India Christy, UK UK's largest towel brand Acquisition (85% stake)
Alok Industries Teviz, Portugal Manufacturer of high end shirting fabric JV
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 TEXTILES
GLOBAL COMPARISON
FY08 / CY07 Unit Raymond Arvind Ltd. VF Corp. GAP Inc. AnnTaylor Stores
Total revenue US$ m 622 140 2,599 15,410 2,390
EBIDTA US$ m 42 14 375 2,050 301
EBIDTA margin % 7.1 10.1 13.1 10.2 7.6
Net profit margin % 0.9 0.7 8.2 6.4 3.7
No. of employees 18,000 4,000 54,200 154,000 5,700
Manufacturing cost / Sales % 49.0 38.9 56.2 64.7 46.8
Debt / Equity x 0.9 1.3 0.4 0.1 N.A.
ROA % 3.8 0.8 10.1 11.7 8.4
ROE % 7.4 1.9 18.2 20.7 10.7
Cash per share US$ 2.8 0.1 2.5 2.3 1.9
Price to earnings (TTM) x 41.5 23.2 14.5 14.7 17.0

VF CORPORATION (US)

VF Corporation (known as VF Corp.) is a US$ 7 bn plus apparel manufacturer, with one of the most diverse,
international portfolio of brands and products. Together with its subsidiaries, the company engages in the design,
manufacture, and marketing of branded apparel and related products in the US and internationally. VF Corp. offers
its product lines under various brands, including Wrangler, Lee, JanSport, Kipling, Harley-Davidson and Nautica
amongst others. It sells its products through specialty stores, department stores, national chains, mass merchants,
as well as through licensees, distributors, and company-operated retail stores. The company had earlier licensed
several of its brands to Arvind Ltd. (India). VF Corp. has stated a new long-term revenue growth target of 8% to 10%
per annum fueled by both organic growth and acquisitions, while maintaining its operating margin at 15%. It is also
targeting profit growth of 10% to 11% per annum and dividend payout of 40%. VF Corp expects international revenues
will comprise a third of its total revenues by 2012, while its direct-to-consumer business is expected to account for
22% of total revenues in the same period. It aims to touch US$ 11 bn in revenues by the year 2012.

GAP INC. (US)

Founded in 1969, Gap Inc. operates as a specialty retailing company primarily in the US. It operates retail and outlet
stores that sell casual apparel, accessories, and personal care products for men, women, and children under the
Gap, Old Navy, Banana Republic, and Forth & Towne brands. The company is headquartered in San Francisco,
California and provides a range of products, including denim, khakis, and T-shirts, fashion apparel, shoes,
accessories, intimate apparel, and personal care products. The company also offers products through gap.com,
bananarepublic.com, and oldnavy.com web sites in the US. In 1992, Gap became the second-largest selling apparel
brand in the world. At the end of March 2007, the company operated approximately 3,131 stores in the United States,
Canada, the United Kingdom, France, and Japan. GAP has 1,54,000 employees all over the world and had 39.6 m
square feet of retailing space at the end of August 2008. The company generated revenues of US$ 16 bn in 2007.

ANNTAYLOR STORES (US)

AnnTaylor Stores Corporation, through its subsidiaries, operates as a specialty retailer of women's apparel, shoes,
and accessories in the US. Its stores offer career and casual wears, dresses, tops, weekend wear, shoes, and
accessories. The company also sells its products through the Internet at www.anntaylor.com and anntaylorLOFT.com.
At the end of February 2008, AnnTaylor operated 869 retail stores in 46 states, the district of Columbia and Puerto
Rico under the names of 'Ann Taylor', 'Ann Taylor Loft', and 'Ann Taylor Factory'. The company was founded in 1986,
is headquartered in New York City and has 5,900 employees all over the world.

Source: Yahoo Finance, Company reports TTM - Trailing twelve months

270
 Regd off: Naroda Road, Ahmedabad - 380 025, Gujarat, India.
ARVIND LIMITED E-Mail: rv.bhimani@arvind.com
Web site: www.arvindmills.com
Telephone: (079) 2220 3030 Fax: (079) 2220 1608
TEXTILES LALBHAI Tr agent: Pinnacle Share, AAA Hospital Premises, Naroda Rd, Ahmedabad - 25
Chairman: Sanjay S. Lalbhai (MD) SEC: R. V. Bhimani AUD: Sorab S. Engineer & Co.
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1931 500101 ARVND:IN 10 34.6 -4.8 -33.4 48.5 4.0 0.0 7,565.8 240.9 INE034A01011
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 35.1% Exports (fob) Rs m 9,637
Foreign collaborators : 0.0% Imports (cif) Rs m 1,234 (Rs)
Indian inst/Mut Fund : 15.3% Fx inflow Rs m 9,639 145
FIIs/GDR : 6.7% Fx outflow Rs m 2,048
Free float : 42.8% Net fx Rs m 7,591
DAILY
Shareholders : 228,168
115 100 DMA
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA
85
High Rs 144 114 94
Low Rs 89 43 34
Sales per share Rs 101.6 104.2 121.2
Earnings per share Rs 4.1 5.8 0.7 55
Cash flow per share Rs 13.7 14.4 8.7
Dividends per share Rs 1.00 0.00 0.00
Dividend yield (eoy) % 0.9 0.0 0.0
25
Book value per share Rs 69.9 60.7 60.4
Shares outstanding (eoy) m 209.38 209.38 218.98 Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions GDR - WC
Price / Sales ratio x 1.1 0.8 0.5 No. of months 12 12 12
Avg P/E ratio x 28.4 13.5 89.8 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 8.5 5.5 7.3
Price / Book Value ratio x 1.7 1.3 1.1 From Operations Rs m 1,146 3,639 2,964
Dividend payout % 24.4 0.0 0.0 From Investments Rs m -1,966 -515 -1,901
Avg Mkt Cap Rs m 24,393 16,436 14,015 From Financial Activity Rs m 764 -3,082 -1,124
No. of employees `000 4 5 4 Net Cashflow Rs m -56 42 -61
Total wages/salary Rs m 1,991 2,450 2,903
Avg. sales/employee Rs Th 5,064.5 4,364.4 6,637.5 INTERIM RESULTS
Avg. wages/employee Rs Th 474.0 490.0 725.8 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 204.3 242.8 39.0 Net sales Rs m 5,637 5,368 6,584 5,454
Gross profit Rs m 782 610 707 548
INCOME DATA Gross profit margin % 13.9 11.4 10.7 10.0
Net Sales Rs m 21,271 21,822 26,550 Net profit Rs m 105 57 108 54
Other income Rs m 781 228 -49 Net profit margin % 1.9 1.1 1.6 1.0
Total revenues Rs m 22,052 22,050 26,501
Gross profit Rs m 3,385 3,570 3,886 KEY DATA
Depreciation Rs m 2,001 1,791 1,754 Parameters Unit FY06 FY07 FY08
Interest Rs m 1,235 1,670 1,822 Denim capacity m metres 120.0 120.0 100.0
Profit before tax Rs m 930 337 261 % of sales % 52.3 41.7 33.5
Minority Interest Rs m 34 -33 -31 Debt to equity x 1.2 1.3 1.4
Prior Period Items Rs m 0 0 0 EBIDTA margin % 25.4 16.5 12.7
Extraordinary Inc (Exp) Rs m 0 943 0 ROCE % 8.6 5.7 6.4
Tax Rs m 106 33 74
NOTES
Profit after tax Rs m 858 1,214 156
Gross profit margin % 15.9 16.4 14.6 Arvind Ltd. is India's largest denim manufacturer and exporter, with a total capacity of
Effective tax rate % 11.4 9.8 28.4 120 m metres (mm). The company also ranks among the top three denim producers
worldwide. It manufactures and sells textiles (34 mm capacity) and ready to wear
Net profit margin % 4.0 5.6 0.6
garments as well. The company has also aggressively entered the garmenting and
BALANCE SHEET DATA knits businesses. However, poor performance of the denim division and forex losses
has eroded the company's bottomline over the past couple of quarters. The company
Current assets Rs m 17,217 14,215 15,387 changed its name from 'The Arvind Mills' to 'Arvind Ltd' in FY08.
Current liabilities Rs m 2,935 4,061 4,557
Net working cap to sales % 67.1 46.5 40.8 In FY08, Arvind Ltd's topline grew by 23% YoY on the back of appreciable
Current ratio x 5.9 3.5 3.4 performance of the garmenting and retail business. The EBIDTA margins, however,
Inventory Turnover Days 121 127 100 contracted from 16.7% in FY07 to 12.7% in FY08 due to cost pressure; particularly
Debtors Turnover Days 29 35 39 higher cotton and power costs. In the denim business, while the realisations improved
Net fixed assets Rs m 23,237 24,746 25,057 to Rs 102 per metre in FY08, the volume off-takes were lower by 12.5% YoY. The
Share capital Rs m 2,094 2,094 2,190 garmenting business, which has been the second largest revenue generator for
"Free" reserves Rs m 12,209 10,047 10,501 Arvind Ltd. following denim, after the initial hiccups in the scale-up phase, started
showing signs of placid growth in the past fiscal. However, with new capacities
Net worth Rs m 14,632 12,717 13,225
coming on stream in phases, the company is deriving the benefits of scale. Arvind has
Long term debt Rs m 12,815 13,820 13,968
provided for mark-to-market (MTM) loss of Rs 126 m on forex derivatives entered into
Total assets Rs m 40,851 39,145 40,613 this year. Further, 5 lac pieces of garments destroyed in a major fire in one of the
Interest coverage x 1.8 1.2 1.1 godowns.
Debt to equity ratio x 0.9 1.1 1.1
Sales to assets ratio x 0.5 0.6 0.7 Arvind Ltd. is targeting a capacity of 12 m pieces in the garment business by FY09
Return on assets % 7.6 10.9 7.3 and would follow that up with an addition of 50% of the capacity over the next 3
Return on equity % 5.9 9.5 1.2 fiscals. However, with the garment and brand business showing promising signs for
Return on capital % 8.6 5.7 6.4 the future, we believe that an integrated player like Arvind Ltd. will see better days
Exports to sales % 34.2 37.6 36.3 going ahead. Having said that, investors must note that the company will continue to
Imports to sales % 7.4 7.2 4.6 witness hiccups by way of forex losses and cost pressures in the near term.
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271
 Regd off: Plot No. 156, H. No. 2, Village Zadgaon, Ratnagiri, Maharashtra - 415 612
RAYMOND LIMITED E-Mail: investorrelations@raymondindia.com
Web site: www.raymondindia.com
Telephone: (02352) 232 514 Fax: (02352) 232 513
TEXTILES SINGHANIA V. Tr agent: Intime Spectrum, C13, Pannalal Silk Mills Cmpd., LBS Marg, Mumbai - 78
Chairman: Gautam Hari Singhania SEC: R. Narayanan (Director- Legal) AUD: Dalal & Shah
Yr of Inc B. Code BL. Code F.V. Price % ch 1-m % ch 12-m P/E P/CF Yield Mkt cap Vol. ISIN
1925 500330 RW:IN 10 194.3 -5.4 -29.3 55.2 6.3 1.3 11,923.1 4.3 INE301A01014
SHAREHOLDING FX Transaction (FY08) ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters : 36.7% Exports (fob) Rs m 1,511
Foreign collaborators : 0.0% Imports (cif) Rs m 1,869 628 (Rs)
Indian inst/Mut Fund : 29.6% Fx inflow Rs m 1,515
FIIs/GDR : 6.0% Fx outflow Rs m 2,275
Free float : 27.7% Net fx Rs m -760
Shareholders : 123,490 516
No. of months 12 12 12
Year ending 31/03/06 31/03/07 31/03/08
EQUITY SHARE DATA 404
High Rs 555 625 474
Low Rs 306 289 228
Sales per share Rs 274.2 324.3 379.8
Earnings per share Rs 22.2 22.8 3.5 292 DAILY
Cash flow per share Rs 36.4 43.3 31.0
100 DMA
Dividends per share Rs 5.00 5.00 2.50
Dividend yield (eoy) % 1.2 1.1 0.7 180
Book value per share Rs 207.5 233.8 235.8
Shares outstanding (eoy) m 61.38 61.38 61.38
Sep-05 Jun-06 Mar-07 Nov-07 Sep-08
Bonus/Rights/Conversions - - -
Price / Sales ratio x 1.6 1.4 0.9 No. of months 12 12 12
Avg P/E ratio x 19.4 20.0 99.7 Year ending 31/03/06 31/03/07 31/03/08
CASH FLOW
P/CF ratio (eoy) x 11.8 10.6 11.3
Price / Book Value ratio x 2.1 2.0 1.5 From Operations Rs m 1,569 400 -55
Dividend payout % 22.5 21.9 71.0 From Investments Rs m -3,947 -3,186 -800
Avg Mkt Cap Rs m 26,424 28,051 21,544 From Financial Activity Rs m 2,445 2,773 861
No. of employees `000 18 18 18 Net Cashflow Rs m 66 -13 6
Total wages/salary Rs m 2,759 3,669 4,166
Avg. sales/employee Rs Th 934.9 1,105.9 1,295.1 INTERIM RESULTS
Avg. wages/employee Rs Th 153.3 203.8 231.4 2QFY08 3QFY08 4QFY08 1QFY09
Avg. net profit/employee Rs Th 75.6 77.8 12.0 Net sales Rs m 3,455 3,321 4,358 2,357
Gross profit Rs m 358 229 424 -385
INCOME DATA Gross profit margin % 10.4 6.9 9.7 -16.3
Net Sales Rs m 16,829 19,906 23,312 Net profit Rs m 313 100 279 -412
Other income Rs m 1,165 1,534 2,097 Net profit margin % 9.1 3.0 6.4 -17.5
Total revenues Rs m 17,994 21,440 25,409
Gross profit Rs m 2,200 1,992 928 KEY DATA
Depreciation Rs m 874 1,257 1,689 Parameters Unit FY06 FY07 FY08
Interest Rs m 390 691 969 Worsted fabric capacity m metres 28.0 31.0 31.0
Profit before tax Rs m 2,101 1,578 367 % of sales % 65.6 77.3 80.5
Minority Interest Rs m -50 -8 -8 Debt to equity x 0.6 0.6 0.6
Prior Period Items Rs m -17 10 71 EBIDTA margin % 17.9 13.3 7.1
Extraordinary Inc (Exp) Rs m -63 370 73 ROCE % 9.2 8.4 4.5
Tax Rs m 610 549 287
NOTES
Profit after tax Rs m 1,361 1,401 216
Gross profit margin % 13.1 10.0 4.0 Raymond is India's largest and world's third largest integrated manufacturer of wool
Effective tax rate % 29.0 34.8 78.2 and wool blended fabrics with production capacity of 24 mm (million meters). It is also
the domestic market leader in files and tools with around 80% market share. The
Net profit margin % 8.1 7.0 0.9
company is the second largest denim producer in the country with a capacity of 40
BALANCE SHEET DATA million meters (mm). It has a widespread distribution network across the country,
which it can leverage to sell some of its well-recognised brands.
Current assets Rs m 9,707 13,188 15,568
Current liabilities Rs m 4,080 5,543 5,762 Steep rise in wool prices (up 40% YoY) took a toll on Raymond's textile division in
Net working cap to sales % 33.4 38.4 42.1 FY08. The company opened 13 new textile retailing stores (28,440 sq feet) and sales
Current ratio x 2.4 2.4 2.7 from these stores grew by 21% YoY. Consolidated topline grew by 17% YoY in FY08
Inventory Turnover Days 96 105 104 while the proportion of branded apparel and textile retail sales increased from 30% in
Debtors Turnover Days 66 76 73 FY07 to 33% in FY08. However, the consolidated EBIDTA and net profit margins fell
Net fixed assets Rs m 11,196 14,826 14,356 from 13.3% and 6.9% in FY07 to 7.1% and 0.9% respectively in FY08. While
Share capital Rs m 614 614 614 Raymond Apparels witnessed a revenue growth of 48% YoY, Colorplus (having the
"Free" reserves Rs m 11,740 13,168 13,180 distinction of being the most profitable brand in the country) grew its revenues by 22%
YoY.
Net worth Rs m 12,738 14,350 14,474
Long term debt Rs m 8,014 9,434 11,556 We believe that while on one hand, the wider retail presence will continue to enable
Total assets Rs m 27,155 33,822 36,294 the company to consolidate its domestic market share, on the other hand, overseas
Interest coverage x 6.4 3.3 1.4 alliances will give it an edge over players who continue to rely on their standalone
Debt to equity ratio x 0.6 0.7 0.8 marketing and distribution capabilities overseas for export orders. On the cost side,
Sales to assets ratio x 0.6 0.6 0.6 however, the firm trend in input prices restrict the upsides to the company's operating
Return on assets % 8.4 8.8 4.6 margins in the near term. The benefits of the denim JV, break-even in the garmenting
Return on equity % 10.7 9.8 1.5 business, capacity expansion, extended retail network and auto component foray will
Return on capital % 9.2 8.4 4.5 percolate into the company's bottomline in the longer term.
Exports to sales % 16.0 10.5 6.5
Imports to sales % 17.3 16.9 8.0
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