Gujarat State Petronet Limited - Initiating Coverage

7/31/2019 Gujarat State Petronet Limited - Initiating Coverage

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Gujarat State Petronet Limited (GSPL)

Investment Rationale

Strong Transmission Volumes: GSPL which transports approximately 37 MMSCMDof gas in Gujarat, has seen a 32% CAGR in volumes from FY06-FY10. We expectGSPLs transmission volumes to register a CAGR of 10% from 32.4 MMSCMD in FY10to 48 MMSCMD in FY14 driven by strong demand and steady supplies from RIL, PetronetLNG, Shell, Cairn, PMT who transmit through GSPLs network.

Demand to remain robust over long term led by: (i) Commencement of three unitsof 350 MW each of GSPC Power plant over the next three quarters of FY12. (ii) Com-missioning of gas based power plants by Torrent Power and DMIC (Delhi Mumbai In-dustrial Corridor) expected to add approximately 18-20 MMSCMD to the demand overthe next 3-4 years. (iii) City Gas Distribution expected to grow from 7 MMSCMD in 2009to 19 MMSCMD in 2020. (iv) Expected increase in demand (from 35 MMSCMD in 2009to 73 MMSCMD in 2020) from industries such as sponge iron, petrochemicals, etc.

Transmission Tariffs to remain stable at 750 per TSCM: All the sourcing pointsfor natural gas in Gujarat are located in South while the pipeline infrastructure of GSPL isexpanding across the state which would provide connectivity to the new consumers ofgas . Hence we believe gas transported over longer distances will result into higher tariffs.Accordingly, we do not expect the transmission tariffs to fall below `750 per TSCM,which has been consistently re-iterated by the GSPL management.

Expansion in Pipeline network: GSPL plans to cover all the 25 districts in Gujarat byFY14 by adding approximately 1000 km of pipeline infrastructure to the existing pipelinenetwork. With pipeline infrastructure connecting all the major natural gas suppliers inplace, GSPL is expanding its network to cater to the industrial clusters in Gujarat which

are spread across the state.

Outlook & Valuation: We expect GSPLs revenue and EBIDTA to grow at a CAGR of6% each on the back of 10% growth in transmission volumes and stable tariffs at `750per TSCM over the period FY10-13E. At CMP, the stock trades at a P/E of 11.6x and10.4x for FY12E and FY13E respectively. Using the DCF valuation method, we arrive at afair value of`119/share for the core natural gas transmission business of GSPL and as-sign `8/share for its investment in CGD business. We initiate coverage on GSPL with aBUY recommendation and price target of`127/share.

Key Catalyst: Increase in the output of gas from KG - D6 block of RIL will translate intohigher volume of gas flowing through GSPLs pipeline network.

Nifty and Stock Movement

BUY

GUJS IN, GSPT.BO

CMP:`

103Price Target: `127

Durgesh Poyekar

(91-22) 3028-4714

[email protected]

ULJK Financial Services Private Limited

ULJK research reports are available on Bloomberg (ULJK

April 26, 2011

Initiating Coverage

Natural Gas Transmission

Please refer to the important dissures and analyst certifications atend of the document

Source: Company, ULJK Research

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GSPL NIFTY

Market Data

Market Cap. (`Mn) 5Outstanding Shares (Mn) 5

52 Week High/Low (`) 12

Avg. Volume ('000s)

Face Value

Shareholding

Promoter 3

MF/ Banks/ Indian Fis 3

FII/ NRIs/ OCB 1

Indian Public/ Others 2

Revenue (`Mn) 4875 9920 10184 10800 11881Growth (Y-o-Y) 16.7% 103.5% 2.7% 6.1% 10.0%

EBIDTA Margins 87.2% 93.7% 93.2% 93.2% 93.2%PAT (`Mn) 1229 4119 4825 5010 5563

PAT Margins 25.2% 41.5% 47.4% 46.4% 46.8%EPS 2.19 7.37 8.58 8.91 9.89P/E (x) 46.9 14.0 12.0 11.6 10.4P/BV (x) 4.8 3.7 2.9 2.4 2.0EV/EBIDTA (x) 16.1 7.4 7.4 6.9 6.1


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Investment Thesis

Strong Transmission Volumes

The performance of GSPL is linked to the volume of the gas that flows through its pipeline network. Thetransmission volumes of GSPL has increased at a CAGR of 32% from 10.6 MMSCMD in FY06 to 32.4

MMSCMD in FY10 which aided revenue to grow at a CAGR of 39% from `2635 Mn in FY06 to `9920Mn in FY10. Currently GSPL operates more than 1,692 km of pipeline network in the state of Gujarat andtransports approximately 37 MMSCMD of gas.

The main suppliers of gas are RIL, Petronet LNG, Shell, Cairn, PMT, etc. who transmit through GSPLs net-work. We expect RIL to transmit around 19 MMSCMD gas in FY12 through GSPLs network (after factoringin the recent decline in production). However, the recent deal between RIL and BP will help RIL to leveragethe technical capabilities of BP in deepwater exploration blocks and increase its production. Accordingly,we expect an increase in transmission volumes to 22 MMSCMD of gas in FY13.

The current shortfall from RIL will be made up by the increasing transmission of volumes by Petronet LNGwhich is expected to run at more than 95% capacity utilization in FY12 (See Chart, Page 3). We expect 14MMSCMD of gas from Petronet LNG to flow through GSPLs network in FY12 and 6-7 MMSCMD of gasto be transmitted by Shell, GSPC, Cairn, PMT. GSPC will commence production from its Deendayal blockin KG basin in FY13 which along with expected increase in production from RIL KG-D6 and increasingLNG imports will provide visibility beyond FY14.

Gujarat State Petron

GSPLs Transmission Volumes, Revenue and PAT


Source: ULJK Research, MoPNG

MMSCMD FY11E FY12E FY13E FY14E

Petronet LNG 11 14 14 14

RIL - KG D6 20 19 22 25

Shell/ GSPC/Cairn/PMT 5.5 7 7 7

GSPC - KG basin 1 2

GSPLs Transmission Volumes from the Source side

10.6

14.617.1

15.1

32.4

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Source: MoPNG, ULJK Research

Plant Sector Gas Allocated (MMSCMD)

Kribhco-Hazira Fertilizer 1.370

GSFC - Vadodara Fertilizer 0.720

IFFCO - Kalol Fertilizer 1.273

GNFC-Bharuch Fertilizer 0.342

GAIL (Vaghodia, Gandhar,Vijayapur, Usar & Auriya) LPG plant 2.594

Utran CCGT + Ext Power 1.447

Hazira CCPP - (GSEG) Power 0.130

Dhuvaran CCPP (GSEL)+ Extn. Power 0.437

Vatwa CCGT (AEC) Power 0.373

GPEC Paguthan CCGT Power 1.302

GIPCL-Stage-ll CCGT Power 0.089

Essar IMP CCGT Power 1.167

Torrent Sugen Power 3.310

NTPC Gandhar & Kawas Power 1.690

Sabarmati Gas Ltd CGD 0.078

HPCL CGD 0.049

Essar Steel Steel 3.200

RIL., Gandhar & Nagothane Petro-Chem 1.918

RIL-Jamnagar Refinery 2.340

OCL Refinery 0.860

Allocation of RILs KG-D6 Gas in Gujarat

Petronet LNG Capacity Utilization

Source: Petronet LNG data, ULJK Research; Assuming 10.9 MTPA Production in FY12 and FY13

72% 75%78%

87%

99%105% 105%

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Volumes (MMSCMD) Capacity Utilization


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We expect GSPLs transmission volumes to register a CAGR of 10% from 32.4 MMSCMD in FY10 to 48MMSCMD in FY14, revenue to register a CAGR of 7% from `9920 Mn in FY10 to `12960 Mn in FY14and expect PAT to post a CAGR of 10% from `4146 Mn in FY10 to `6147 Mn in FY14.

With demand for natural gas expected to remain robust, GSPL is dependent upon the development ofnatural gas supplies in Gujarat over the long term as it is developing the gas grid in the state. As such anypositive development on the supply front (of natural gas) in Gujarat will benefit GSPL.

According to Gujarat Industrial Development Board, the supply of natural gas is expected to increase at aCAGR of 7% from 48 MMSCMD in 2009 to 101 MMSCMD in 2020. Over the longer term, gas supplieswill improve on account of increase in gas supply from RIL, GSPC - LNG terminal and GSPCs Deendayalgas discovery in KG basin.

Supply Projections of Gas in Gujarat

The supplies of RLNG and new gas find volumes are likely to augment the availability of natural gas inGujarat. New gas supplies are expected from the following sources:

PLL has been operating the LNG re-gasification terminal since March, 2004.Currently, the capacity at Dahej terminal is 10 MTPA which can go upto 11.5 MTPA through de-bottlenecking exercise. PLL is also planning to set up another jetty at Dahej which would increase the ca-pacity of Dahej terminal by another 3-4mmtpa and is expected to be commissioned by mid FY13E.

Shell is likely to increase supplies to a level of 13.5 MMSCMD or 3.5 MMTPA by FY12 withmost of it to be consumed in Gujarat.

Reliance is expected to supply around 19 MMSCMD of natural gas toconsumers in Gujarat in FY12. Currently RIL is producing approximately 51 MMSCMD of gas from KG-D6block. We expect RIL to ramp-up production from KG-D6 block with the technical expertise of BP whichhas vast experience in exploration and production from deepwater blocks.

GSPC LNG terminal is likely to come-up in Mundra and would be commissioned byFY2014 to take advantage of the increased supplies of LNG in the world market and the increasing de-mand in India by that time.

GSPLs Transmission Volumes, Revenue and PAT Estimates



32.436.5

40.044.0

48.0

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GSPC has a large discovery of natural gas from its KG basinshallow water block KG-OSN-2001/3 awarded during NELP III. The estimated in-place reserves were ini-tially put at around 20 trillion cubic feet (TCF) by GSPC and in December 2010, Director General of Hy-drocarbons approved 2 TCF FDP. Considering the current state of progress, the gas production is expectedto commence in FY13.

Cairn discovered CB-X and Ambe fields in Gujarat, which are estimated to supply 1.2MMSCMD from FY12 for a period of 7 years.

The region of North Gujarat from Vadnagar to South of Ahmedabad has vastcoal deposition at depths varying from 800 to 1300 meters. The total reserves of coal are estimated at 60billion tonnes. CBM recovery from these Coal Seams appears to be a commercially viable proposition vis--vis mining.

MMSCMD 2009 2012 2015 2020

5 4 3 1

9 6 4 2

13 18 18 18

6 8 8 8

15 19 30 30

0 8 8 8

0 0 13 13

0 1 0 0

0 3 3 5

0 0 6 16

Supply projections for Gujarat

Source: GIDB, ULJK Research



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Demand to Remain Robust over Long Term

As of FY10, GSPL has signed firm GTAs (Gas Transmission Agreements) for transporting 35.5 MMSCMD ofgas to various customers as well as interruptible/short-term GTAs for 6.49 MMSCMD. GSPLs main cus-tomers include RIL, the Essar Group, Torrent Power, Shell, Petronet LNG, Cairn India and GSPC. GSPL hasentered into a 15-year agreement with RIL for transmission of 11MMSCMD to its Jamnagar refinery, and

with Torrent Power for transmission of 4.5 MMSCMD for 20 years. Over the next three quarters, GSPLsvolumes will be driven by the commencement of three units of 350 MW each of GSPC Power plant in Q1,Q2 and Q3 of FY12. Over the next 3-4 years, the demand for natural gas would come from the commis-sioning of gas based power plants by Torrent Power and DMIC (Delhi Mumbai Industrial Corridor) whichcan add approximately 18-20 MMSCMD to the demand for natural gas.

We believe the demand for natural gas in Gujarat will remain robust and there will always be off-takers fornatural gas with supply being the lone constraint. The presence in Indias most industrialized state gives anatural advantage to GSPL. According to GIDB (Gujarat Industrial Development Board), the demand fornatural gas in Gujarat is set to increase at a CAGR of 7% from 70 MMSCMD in the year 2009 to 146MMSCMD in the year 2020. The incremental demand will largely be driven by industries (sponge iron, pet-rochemicals, etc) where demand is expected to increase from 35 MMSCMD in 2009 to 73 MMSCMD in2020 as well as City Gas Distribution which is expected to grow from 7 MMSCMD in 2009 to 19

MMSCMD in 2020 depending upon the availability of natural gas.


MMSCMD 2009 2012 2015 2020

19 32 43 43

10 12 12 12

35 49 53 73

7 10 14 19

Gas Demand build-up in Gujarat 2009-2020

Long term Gas demand in Gujarat and Transmission Volumes through GSPLs network



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GSPL Transmission Volumes (MMSCMD)

GSPL's volume as a % of total volumes in Gujarat


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Transmission Tariffs to remain stable around 750 per TSCM

We expect GSPLs transmission tariffs to remain at around `750 per TSCM which has been consistentlyre-iterated by the GSPL management. All the sourcing points for natural gas in Gujarat are located insouth and the pipeline infrastructure of GSPL is now spreading across the state to provide connectivity tothe new consumers of gas in future. Hence we believe gas transported over longer distances will resultinto higher tariffs. Accordingly, we do not expect the transmission tariffs to fall below `750 per TSCM.

GSPLs transmission tariffs are based on Gas Transmission Agreement (GTA). GTA specifies tariffs, tenureand capacity reserved for the transportation of natural gas. Tariffs primarily consist of capacity charges,which are fixed fees for the reservation of capacity and typically cover 90% of the customers tariff com-mitment, and commodity charges, which are linked to the actual transportation of natural gas throughgas transmission network. GTAs include ship or pay provisions, which require customers to pay thecapacity charge for the capacity reserved by them regardless of the amount of natural gas they transport.

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GSPLs Pipeline network



Transmission Tariffs and Revenue Trend


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Revenue (Rs Mn) (LHS) Transmission Tariffs (Rs per TSCM)


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Expansion in Pipeline network to Enhance Reach Across Gujarat

GSPL plans to cover all the 25 districts in Gujarat by FY14 by adding approximately 1000 km of pipelineinfrastructure to the existing pipeline network. GSPL has already put in place the pipeline infrastructure toconnect all the major sources of natural gas suppliers to Gujarat namely RIL (Bharuch Is the landfall point),Petronet LNG at Dahej, Shell at Hazira, Cairn, Niko Resources, GSPC and PMT.

GSPL already has strong presence in the south of Gujarat and is now expanding its network across thestate. As shown in the figure below, the industrial clusters in Gujarat are not concentrated in any one par-ticular region, rather spread across the whole state. With the increase in availability of natural gas, indus-tries across the state including small as well as medium enterprises are expected to shift to using this cleansource of fuel. State-wide gas transmission grid will help GSPL to connect the gas suppliers who are lo-cated in south of Gujarat to the gas consumers who are spread across the state. Industry Cluster across Gujarat

Source: Vibrant Gujarat, ULJK Research



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Holdings in CGD Business in Gujarat

GSPL has 36.5% stake in GSPC Gas Company and 13.5% stake in Sabarmati Gas which are into the CityGas Distribution business in the state of Gujarat. GSPC Gas is currently supplying around 3.60 MMSCMDof natural gas while Sabarmati Gas is supplying approximately 0.85 MMSCMD of gas. Currently boththese companies have a Gross Margin of`2.5 per SCM. Both these companies being unlisted, we valuethem at a discount to their listed peers namely IGL and GGCL.


Company Volume (MMSCM) EV (`Mn) EV / Volume

GGCL 1212 54562 45.0

IGL 979 47321 48.3

Average 46.7

Assigning a 50% discount 23.3

Company EV(`Mn)

Net Debt(`Mn)

GSPLs Stake GSPLs Share(`Mn)

GSPC Gas Co. 30247 3000 36.5% 9945

Sabarmati Gas 7142 - 13.5% 964

Assigning a 60% discount

Equity Value(`Mn)

27247

7142

Enterprise Value of GSPC Gas Co. and Sabarmati Gas

Value Accretion of GSPC Gas and Sabarmati Gas to GSPL




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Peer Comparison

For peer comparison, we have chosen global peers of GSPL which are in the business of transmission orstorage of natural gas or petroleum products. Further all the peers mentioned below do not have any ex-posure to commodity price risk like GSPL.

GSPL trades at 11.6x one-year forward earnings as compared to the average of 19.7x for its global peers.

The stock looks attractive with P/BV of 2.4x and 2.0x for FY12E and FY13E and EV/EBIDTA of 6.9x and6.1x for FY12E and FY13E respectively.

Key Risks & Concerns

RIL KG-D6 gas supply

In the near term, GSPLs transmission volumes are dependent on the RIL KG-D6 ramp up. RIL recently an-nounced decline in gas output to 51 MMSCMD from expected 60 MMSCMD. Accordingly, we have esti-mated 19 MMSCMD of RIL KG-D6 gas in FY12 and 22 MMSCMD of gas in FY13 to flow through GSPLstransmission network in Gujarat. We believe going forward RIL will be able to ramp up its KG-D6 produc-tion with the technical expertise of BP. Any failure to ramp up gas output can impact our valuations nega-tively.

Transmission Tariffs below 750 per TSCM

GSPL expects tariff notification from PNGRB for the existing pipelines in the next 3 to 6 months. If PNGRBdetermines tariffs below `750 per TSCM then it would affect the future revenue and earnings of GSPL.

Source: Bloomberg, ULJK Research


GSPL vis--vis its Peers

GSPLs FY12 EPS Sensitivity to Transmission Volumes and Tariffs

Source: ULJK Research

36 38 42 44

700 6.96 7.53 8.09 8.66 9.23725 7.32 7.91 8.50 9.09 9.68

7.69 8.30 9.51 10.12775 8.05 8.68 9.31 9.94 10.57800 8.42 9.07 9.72 10.37 11.02

GSPL (ULJK est) 57.94 11.6 10.4 2.4 2.0 6.9 6.1 93.2% 93.2% 20.7% 19.1

Boardwalk Pipeline 6.23 20.4 20.2 1.8 1.9 13.3 12.6 59.0% 58.7% 8.3% 9.1%Magellan Midstream 6.79 19.4 17.7 4.7 4.5 14.9 13.9 36.5% 38.9% 27.1% 24.0Spectra Energy 3.00 19.4 18.0 2.1 2.2 22.7 20.3 91.9% 90.7% 11.0% 13.1


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Outlook & Valuation

We expect GSPLs revenue and EBIDTA to grow at a CAGR of 6% each on the back of 10% growth intransmission volumes and stable tariffs at `750 per TSCM over the period FY10-13E. At CMP, the stocktrades at a P/E of 11.6x and 10.4x for FY12E and FY13E respectively. We initiate coverage on the com-pany with BUY recommendation and price target of`127/share. Using the DCF valuation method, wearrive at a fair value of`119/share for the core natural gas transmission business of GSPL and assign `8/

share for its investment in CGD business, which represents a potential upside of approximately 23% fromthe current levels. We have not factored in any upside from the new cross-country pipelines that GSPL hasrecently been awarded by PNGRB.


Sensitivity Analysis

DCF Valuation Assumptions

DCF Analysis

Sales 10,184 10,800 11,881 12,960 13,500

EBIT 8,334 8,718 9,551 10,406 10,799

Less: Cash Taxes 2,767 2,894 3,171 3,455 3,585

NOPLAT 5,567 5,824 6,380 6,952 7,214Depreciation 1,157 1,347 1,522 1,672 1,783

Capital expenditure (6,500) (5,000) (5,000) (3,500) (2,500)

Changes in working capital (30) (52) (91) (91) (46)

FCFF 194 2,119 2,810 5,033 6,451

Discounting factor 1.00 0.90 0.82 0.74 0.67

Present value of FCFF 194 1916 2299 3725 4319

Explicit year Cash Flows 37,358Terminal Value 39,958

Gross Asset Value 77,316

Add: Cash and Equivalents 1,947

Less: Debt 12,596

Net Asset Value 66,668

1.0% 1.5% 2.5% 3.0%11.54% 97 100 103 107 110

11.04% 104 107 111 115 119111 115 124 130

10.04% 120 124 129 135 1419.54% 129 134 140 147 155

Market Premium 6.00%

Risk Free Rate 8.00%

Beta 0.89

Nominal Marginal Cost of Debt 9.50%

Debt/Capital Ratio 40.00%

Nominal Tax Rate 33.20%

ost of Debt (Tax-Adjusted) 6.35%Cost of Equity 13.34%


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GSPL 1-Yr Forward P/E Bands

Source: Company, Capital-line , ULJK Research

GSPL 1-Yr Forward PBV Bands


GSPL 1-Yr Forward EV/EBITDA Bands


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GSP L E V/EBITDA -4 EV/E BIT DA -6 EV/E BIT DA-8 EV/EBITDA-10 E V/EBITDA -12


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Company Overview

Gujarat State Petronet Limited (GSPL), a subsidiary of Gujarat State Petroleum Corporation (GSPC) wasincorporated in the year 1998 to develop energy transportation infrastructure in Gujarat by connectingmajor natural gas supply sources and demand markets. GSPL is the first company in India to transportnatural gas on an open access basis i.e. it makes the gas transmission capacity available to any shipper

on a nondiscriminatory basis. Currently it transports approximately 37 MMSCMD of gas through its pipe-line network of 1692 km and plans to cover all the 25 districts of Gujarat in next 4 to 5 years.


Network / Region Length (km)

Anand-Rajkot 290

Mora-Vapi 129

Rajkot-Vadinar 110

Bhadbhut-Gana 109

Paguthan-Baroda 83.5Kalol-Himmatnagar 63

Amboli-Dahej 44.8

Kalol-Mehsana 40

Anklav-Dhuvran 30

Bhadbhur-Pagutha GPEC spur line 25.7

Mora-Uran 25

Anbapur-Gandhinagar 15.5

Petronet-Santej 15

Hazira-mora 13.8

Cairn-Mora 6.4

GNFC Videocon Mora-KRIBHCO spur line 4.7

Mora-KRIBHCO spur line 2.6

Videocon spur line 0.7

Gana-Hadala 85

Morbi-Mundra 130

Others 468.3

GSPLs Existing Pipeline Network in Gujarat

Network / Region Length (km)

Darod - Jafrabad 220

Mundra spurlines 40

Salej - Sanand 35

Mehsana - Palanpur 75

GSPLs Under Construction Pipeline Network in Gujarat

Source: CRISIL, ULJK Research


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The consortium led by GSPL (GSPC - 52%, IOC - 26%, HPCL - 11% and BPCL - 11%) has won bids to laythree cross-country pipelines which will make GSPL a pan-India player providing visibility in the long term.GSPL is awaiting the Letter of Intent from PNGRB for these pipelines which it expects in the next 6 months.

Mallavaram - Bhilwara Pipeline (1585 km)

Mehsana - Bhatinda Pipeline (1670 km)

Bhatinda -Srinagar Pipeline (740 km)

The consortium has also submitted EoI for Surat - Paradip Pipeline (1680 km) with PNGRB.


Management Team

Name Designation

Mr. Tapan Ray Managing Director

Mr. A K Joti Non-Executive Chairman

Ms. Reena Desai Company Secretary

Mr. Suresh Mathur Independent Director

Mr. J K Jain Independent Director

Mr. R Vaidyanathan Independent Director

Mr. N K Mitra Independent Director

Mr. D J Pandian Non-Executive Director

Mr. Atanu Chakraborty Non-Executive Director

Source: Company


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Financial Statements


`in Millio

Income Statement Cash Flow Statement

Income from Operations 4,875 9,920 10,184 10,800 11,881 Profit before Tax 1,913 6,242 7,223 7,500 8,3

Total expenditure 626 622 692 734 808 Depreciation 1,706 2,365 1,157 1,347 1,5

EBITDA 4,249 9,297 9,491 10,066 11,073 Change in Working Capital (1,752) 1,420 (27) (52)

EBITDA Margins 87.2% 93.7% 93.2% 93.2% 93.2% Direct Taxes (500) (1,959) (2,398) (2,490) (2,7

Depreciation 1,705 2,365 1,157 1,347 1,522

EBIT 2,544 6,933 8,334 8,718 9,551 Capital Expenditure (4,579) (7,777) (6,500) (5,000) (5,0

EBIT Margins 52.2% 69.9% 81.8% 80.7% 80.4%

Other income 232 247 178 189 208 Equity Raised 2 5 0 0

Interest 870 938 1,289 1,407 1,431 Debt Raised 1,849 1,086 2,400 500

PBT 1,907 6,242 7,223 7,500 8,328 Dividend Paid (329) (493) (656) (658) (6

Total Tax 678 2,123 2,398 2,490 2,765

PAT 1,229 4,119 4,825 5,010 5,563 Net Change in Cash (1,594) 767 806 1,239 1,6

PAT Margins 25.2% 41.5% 47.4% 46.4% 46.8% Opening Cash & Cash Eq 2,569 975 1,743 2,549 3,7

EPS 2.19 7.37 8.58 8.91 9.89

Balance Sheet Key Ratios

Share Capital 5,621 5,624 5,626 5,626 5,626 EPS (`) 2.2 7.4 8.6 8.9

Reserves & Surplus 6,531 10,014 14,181 18,532 23,437 CEPS (`) 5.2 11.6 10.6 11.3 1

Networth 12,152 15,638 19,806 24,158 29,063 Book Value (`) 21.6 27.8 35.2 42.9 5

Total Debt 11,509 12,596 14,996 15,496 15,496

Deferred tax Liability (Net) 1,144 1,405 1,405 1,405 1,405 Sales 16.7% 103.5% 2.7% 6.1% 10PAT 23.4% 236.2% 16.4% 3.8% 11

Net Block 17,686 24,368 29,709 33,862 37,840 EBITDA Margin 87.2% 93.7% 93.2% 93.2% 93

Capital WIP 6,446 5,387 5,387 4,887 4,387 Net profit Margin 25.3% 41.8% 47.4% 46.4% 46

Investments 356 666 666 666 666 RoCE 12.1% 28.0% 26.8% 24.4% 23

CA, Loans & Advances RoE 10.1% 26.5% 24.4% 20.7% 19

Sundry debtors 544 753 977 1,036 1,139

Inventories 926 1,327 1,395 1,479 1,627 PE (x) 46.9 14.0 12.0 11.6 1

Cash & bank balance 975 1,742 2,549 3,787 5,397 Price to Cash Earnings (x) 19.7 8.9 9.7 9.1

Other Current Assets 153 129 129 129 129 P/BV (x) 4.8 3.7 2.9 2.4

Loans & Advances 3,018 3,600 3,564 3,780 4,158 EV/EBIDTA (x) 16.1 7.4 7.4 6.9

Less: CL & Provisions EV/Sales (x) 14.0 6.9 6.9 6.4

Current liabilities 3,742 4,848 5,075 5,382 5,920

Provisions 1,590 3,486 3,092 3,184 3,459 Debt/Equity Ratio 0.95 0.81 0.76 0.64 0

Net Current Assets 284 (785) 446 1,645 3,071 Interest Coverage Ratio 2.93 7.39 6.47 6.19 6

Misc Expenditure 33 3 0 0 0



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