Stock Note

RETAIL RESEARCH

24 Oct 2016

The Indian Cements Ltd

Industry

CMP

Recommendation

Add on Dips to band

Sequential Targets

Time Horizon

Cement

Rs. 157

Buy at CMP and add on declines

Rs. 123-134

Rs. 211.5-263

2-3 quarters

HDFCSec Scrip Code

INDCEMEQNR

BSE Code

530005

NSE Code

INDIACEM

Bloomberg

ICEM IN

CMP (as on 24 Oct, 16)

Rs. 157

Equity Capital (Rs crs)

307.2

Face Value (Rs)

10.00

Equity Sh Outstanding crs

30.72

Market Cap (Rs crs)

4822.7

Book Value (Rs)

111.7

Avg. 52 Week Volumes

4601724

52 Week High

Rs. 164.2

52 Week Low

Rs. 63.9

Shareholding Pattern % (June 2016)

Promoters

28.63

Institutions

41.81

Non Institutions

29.56

Total

Fundamental Research Analyst:

Zececa Mehta
zececa.mehta@hdfcsec.com

RETAIL RESEARCH

100.00

The India Cements Ltd (ICL) is the largest producer of cement in South India and one of the largest cement manufacturers in
the country with a consolidated installed cement manufacturing capacity of 15.55 mtpa (million tonnes per annum). ICL owns
and operates eight cement manufacturing units and two cement grinding units in the states of Telangana, Andhra Pradesh,
Tamil Nadu and Maharashtra.
Investment Rationale
Management steps to correct the problems besetting the company could unlock value
Dominant player in South headed by industry veteran
Government infrastructure projects, housing demand to drive growth
Focus on cost rationalisations & better pricing to drive margin expansion
ICL aims for 8-10% sales growth in FY17
Improvement in Financial matrix led by gradual & sustained debt reduction
Risks and Concerns
Slowdown in Cement demand due to poor monsoon and weak infrastructure growth
MMDR Act and Environmental rules & regulations
Continuity in Managements aim and efforts to remain focussed on cement business, reduce debt and unwind
intercompany investments/loans
Old vintage cement plants at some locations could mean that despite its efforts to improve the manufacturing efficiencies,
the EBITDA per tonne for India Cements will fall slightly short of its more efficient peers
Outlook and view
India Cements was once a torch bearer of Cement industry especially in the South. However due to the distractions of the
promoters in sports and other activities, focus on the company and the group came down. In the meanwhile, the debt levels
kept rising, the company invested monies in other companies by way of equity/loans which did not yield the desired returns.
The promoter has over the past 1-2 quarters started to take corrective steps. He has started meeting the investor
community, heard their concerns and reportedly assured fast corrective action (including bringing down debt, unwinding of
investments/loans to group companies, improving manufacturing efficiencies etc). The results of the past few quarters also
bear out this change in terms of volumes and debt repayment (and interest payouts). ICL repaid Rs.258 crore of debt in FY16.
ICL which had skipped dividend in FY14 and FY15 came back in FY16 to declare 10% dividend.

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The companys profit and return ratios have not moved much over the years due to the weak demand environment and its
large investments in unrelated non-core assets. However, with the improved demand outlook and better realizations, we
expect profitability to mend, resulting in greater capacity utilisation from present levels.
We think we can take a bet on the changes promised to be implemented by the management (which is capable and now
supposedly focused on its core business) especially given the fact that the current valuations (EV/tonne) of the company as
per FY16 consolidated results stands at ~$70 is quite low compared to its peers. As the component of debt in the EV/tonne is
high in the case of India Cements, repayment of debt aided by the above will lead to more than proportionate increase in the
Equity component of EV/Ton for ICL. The fact that the company owns 26,000 acres of land (mainly limestone mines related
apart from ~250 acres that can be monetized) means that brownfield/greenfield expansion in Cement can be made at a
comparatively lower costs in an age when acquiring fresh limestone mines is a challenge under the new MMDR regulations.
Also, ICL has about 1.99 crore shares of ICL held as treasury stocks through its subsidiaries (reflected in its consolidated noncurrent investment) whose cost is Rs. 167.31 crore but the market value is Rs. 312.43 crore which is about 6.5% of ICLs
current market cap. This provides a buffer for future debt reduction.
At the CMP of Rs. 157 Indian Cements quotes at EV/ton of $70. We think that investors could buy the stock at the CMP and
add on declines to Rs. 123-134 band (~EV/Ton of $56 & ~ 10.8x FY18E EPS) for sequential targets of Rs. 211.5 (~EV/Ton of $80
~ 17.7x FY18E EPS) and Rs. 263 (~EV/Ton of $95 ~ 22x FY18E EPS) over 2-3 quarters. The EV/ton of its more efficient
comparable peer Ramco Cements in FY18 is expected to be $175.
Financial Summary - Consolidated
Particulars (Rs in Cr)
Total Operating Income
Operating Profit
Reported Profit After Tax after MI
EPS (Rs.)
P/E (x)
EV/EBITDA
RoNW (%)

FY12
4645.5
956.9
259.9
8.5
18.4
7.6
6.6

FY13
5178.7
975.5
188.0
6.1
25.5
8.0
5.8

FY14
5104.8
611.4
-243.4
-7.9
-19.7
12.6
0.3

FY15
5082.7
785.1
-3.3
-0.1
NA
9.9
-0.1

FY16
4889.6
890.8
134.4
4.4
35.7
8.3
3.9

FY17E
4993.6
988.7
222.7
7.3
21.5
7.2
6.2

FY18E
5548.1
1137.4
366.4
11.9
13.1
6.0
9.4

(Source: Company, HDFC Sec)

Business Overview
ICL is the largest producer of cement in South India and one of the largest cement manufacturer in the country with a total
installed cement manufacturing capacity of 15.55 mtpa (million tonnes per annum). ICL was established in 1946 by Shri
Sankaralinga Iyer and Shri T S Narayanswami and is today headed by Mr.N.Srinivasan, Vice Chairman and Managing Director.
ICL has 7 operating units in Tamil Nadu, Telangana and Andhra Pradesh and the group as such (including Trinetra Cement
Limited, Company's subsidiary) has 8 operating units with capacity of 15.55 million tonnes per annum. This is apart from the
2 cement grinding plants - one at Chennai, Tamil Nadu and other at Parli, Maharashtra. The company primarily manufactures
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two standard types of cement: Ordinary Portland Cement (OPC) and Portland Pozzolana Cement (PPC), the mix being 30:70.
The company is in the process of merging two of its subsidiaries, Trinetra Cement Limited (TCL) and Trishul Concrete Products
Limited (TCPL) with itself. TCL runs a cement manufacturing plant with a capacity of 1.5 mtpa in the state of Rajasthan. TCPL
manufactures ready-mix concrete (RMC) marketed under the brand Coromandel.
About 50 percent of ICLs cement is sold in Tamil Nadu and Kerala, 10-12 percent in Karnataka, about 13-14 percent in
Maharashtra and about 12-14 percent in Andhra Pradesh and balanced is sold in Rajasthan, Gujarat, some parts of Madhya
Pradesh and Chhattisgarh
Brands
Sankar Super Power
Sankar Super Power is a six decade brand with emotional values providing trust and confidence for its customers over
generations. It is the most popular brand across TN and Kerala.
Coromandel King
Coromandel is a brand with rationale value offering reassurance for the strength and durability of cement and provides value
for money. It is a brand most popular in all metros.
Raasi Gold
Raasi Gold is a brand with sentimental value foreseeing golden times for those living in their stronger homes. It is a
household name in Andhra Pradesh & Orissa.
These brands are also available under sub brands such as Shankar Shakti & Coromandel Super Power. Based on customer
requirement, these brands are supplied in HDPE, Paper & Laminated packing.

ICL has, as on date, 10 subsidiaries controlled through shareholdings in such Companies. It has one listed subsidiary namely
Trinetra Cement Limited (TCL).

RETAIL RESEARCH

Name of the
Company

Location

Subsidiary/Associate

Industrial Chemicals
and Monomers

Tirunelveli

Subsidiary

% of ICL
Holding
Stake
98.59%

Description

Industrial Chemicals And Monomers Limited manufactures basic chemicals.

However, the operations of the company remain suspended during the

Turnover
FY16 (Rs.
in Crore)
0.0

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Limited
ICL Financial
Services Limited
ICL Securities
Limited
ICL International
Limited

Chennai

Subsidiary

100.00%

ICL Financial Services Ltd. offers investment and financial services.

0.0

Chennai

Subsidiary

100.00%

ICL Financial Services Ltd. is engaged in Securities & Commodity exchanges.

0.0

Chennai

Subsidiary

100.00%

It is an exporter and manufacturer of yarn, home furnishing, cotton fabrics,

kitchen towels, kitchen linen, pot holders, kitchen gloves, aprons, table

1.7

Coromandel Electric
Company Limited
India Cements
Infrastructures
Limited
Trinetra Cement
Limited
Trishul Concrete
Products Limited
PT. Coromandel
Minerals Resources
Coromandel
Minerals Pte. Ltd.

Chennai

Subsidiary

57.86%

86.4

Chennai

Subsidiary

100.00%

Coromandel Electric Company Ltd. engages in power generation and

distribution.
The company focuses on Infrastructure projects mainly water and road
related projects

Chennai

Subsidiary

61.22%

Details given below

495.9

Chennai

Subsidiary

88.47%

Details given below

102.5

Indonesia

Foreign Subsidiary

100.00%

ICL set up this subsidiary in Indonesia for acquiring coal concessions.

0.0

Singapore

Foreign Subsidiary

100.00%

It engages in the mining and transportation.

0.0

Hyderabad

Associate

28.94%

Coromandel Sugars
Limited

Chennai

Associate

49.99%

India Cements
Capital Limited

Chennai

Associate

47.91%

Coromandel Travels
Limited

Chennai

Associate

49.50%

It manufactures ordinary portland cement, pozzolana portland cement,

blast furnace slag cement, masonary cement, oil well cement, rapid
hardening cement and acid resistant cement.
Coromandel Sugars Limited engages in the production of sugar.
Coromandel Sugars Limited was formerly known as ICL Sugars Ltd. and
changed its name to Coromandel Sugars Limited in 2007.
The main focus of the Company continues to be on various fee-based
activities such as, Full Fledged Money Changing [FFMC], Travel & Tours and
Forex Advisory Services.
Coromandel Travels is leading travel agency. It provides information,
pricing, availability, and booking facility for domestic and international air
travel, railway reservation, hotel bookings, holiday packages, buses, and car
rentals.

Unique Receivable
Management Pvt.
Limited

Chennai

Associate

49.20%

Raasi Cement
Limited

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year due to unviable operations

0.0

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The Board of Directors have approved a Scheme of Amalgamation of Trinetra Cement Limited and Trishul Concrete Products
Limited with the Company effective 1st January 2014. Petitions have been filed in the Honorable High Court of Judicature at
Madras under Sections 391 to 394 of the Companies Act, 1956 for completing the procedural requirements for the said
Scheme. The Shareholders of the respective Companies have since approved the Scheme of Amalgamation.
Trishul Concrete Products - Ready Mix Concrete
Trishul Concrete Products, promoted by India Cements, commissioned its first ready mix concrete unit at Thirumudivakkam,
Chennai on 16th September, 1999. Since then, it has been expanding operations by installing more RMC units. RMC is
suitable for large construction projects like dams, bridges, industrial structures as well as small and medium projects.
The plants are equipped with following facilities:
Automatic batching plant of M1 & CP 30 models
Transit Mixers 6 M3 Capacity based on the output of the plant
Concrete pumps 350 D, Line Pump, 1400 D & 1800 BP which can pump up to 30 floors high rise buildings
State of art of Full Fledged Concrete Laboratory with all equipment from AMIL CIVIL Laboratory Systems
100 MT capacity weigh bridge with Computer systems
Centralised accounting and monitoring system of operation and accountability to maintain & monitor the operations
and issues on daily basis precisely to provide the quality products and service to end users
The Technical Services cell offers Concrete testing facilities, Technical assistance for designing concrete mixes and Technical
guidance for customers in construction aspects
Trishul Concrete Products Plants

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Trinetra Cement Ltd
Trinetra Cement Limited (formerly Indo Zinc Limited) was incorporated on March 12, 1987 as a private limited company in
the State of Maharashtra under the Companies Act, 1956. The Company was converted into a public limited company in the
year 1992.
During the year 2009-10, ICL Financial Services Limited (ICLFSL), the wholly owned subsidiary of The India Cement Limited,
acquired 60.89% (including shares acquired under open offer) of equity share capital of the Company in compliance with the
Securities and Exchange Board of India (Substantial Acquisition of Shares And Takeovers) Regulations, 2007. Consequently,
the Company became a subsidiary of ICLFSL and ultimate subsidiary of The India Cements Limited in January, 2010.
Under the new management, the abandoned cement plant at Banswara was revived and plant capacity increased to 1.5
MTPA. The Plant has commenced commercial production of cement in January 2011.
Forward & backward Integration strategy in place for ICL
Backward Integration Projects with Synergy
While retaining cement as its mainstay, India Cements has ventured into related fields like shipping (owns 3 ships), captive
power and coal mines (in Indonesia), which has purposeful synergy with the core business. It is in line with the companys
game plan of becoming cost efficient by combating uncertainties in the availability of critical inputs like energy & coal.
Power Plants
The company has its captive power plant of 50 MW capacity at Sankarnagar to cater to the energy needs of the cement
plants in Tamil Nadu. A similar capacity power plant is in operation at Vishnupuram in Telangana. The plant caters to the
power requirement of cement plants in Telangana and also in Andhra Pradesh.
A state of art heat recovery power plant of 8.5 MW is successfully running at Vishnupuram Plant supplementing its power
requirements.
Besides holding shares in Andhra Pradesh Gas Power Corporation (APGPCL), a collective captive power plant in Vijjeswaram
in Andhra Pradesh to get low cost power equivalent to 21.5 MW, ICL operates a gas-based power plant of 26.25 MW capacity
at Ramanathapuram in Tamil Nadu through its subsidiary, Coromandel Electric Company Ltd.
In addition the company operates 9.9 MW wind farms at Palladam and 8.75 MW wind farms at Thevarkulam in Tamil Nadu.
A 20 MW captive power plant is in operation in Banswara Plant, Rajasthan, since 2012 and it fully meets the power
requirements of the Cement Plant there.

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Shipping
The shipping division has three bulk carriers-two handy-size vessels, Chennai Jyanam & Chennai Perumain and a supermax
53K, Chennai Selvam.
Coal Mines
The company had acquired its own coal mines in Indonesia to ensure timely supply at competitive cost. The company
received the first shipment of Coal from its coal mines in Indonesia in May 2013. However, taking advantage of the current
low price of imported coal available in the markets, the operation of the mines has been suspended temporarily.
Forward Integration Business
India Cements Infrastructure Ltd
The company ventured into Infrastructure Development & Construction business during 2012. The objective is to become a
significant player in the Construction business which is a natural forward integration for the Cement business of India
Cements. The expertise of Captive projects in industrial plants set up by the company over the years in Cement, Sugar and
Power industry helped India Cements in launching and operating this new initiative.
Currently, India Cements is developing Coromandel Enclave a Real Estate project in Coimbatore; a prestigious gated
community residential project comprising of 36 Villaments and 64 Apartments spread across 2.5 acres of land set in the
natural serene surroundings of Uppilipalayam, Coimbatore. Coromandel Enclave, a unique project, is owned by the Trishul
Concrete Products Limited, backed and supported by financial muscle and technical expertise of The India Cements Limited,
and engineered, constructed & marketed by the India Cements Infrastructures Limited. Necessary approvals for the project
have been obtained and the work has already commenced. During the current year, depending on the market, the Company
is expected to take up additional projects.
Indian Cement Industry
Demand growth remains patchy, but good monsoons offer hope of strong 2H
Cement production during April-July 2016 witnessed a modest growth of 4.6%, which is higher when compared to 1.4%
growth during April-July 2015 on a YoY basis - while production growth was lower in April-May 2016, the same picked up in
June 2016 supported by pre-monsoon demand. ICRA expects demand growth to pick up to 6% during FY2017 and 7% during
FY2018. However, most players agree that rainfall across most parts of the country has been normal and this has raised
hopes of a pick-up in housing demand across rural parts, tier-2 and tier-3 cities in the second half of this year. Road
construction activity has remained strong, barring the normal slackness seen in the monsoon season. This is likely to support
cement prices in the near term.
No new capacity addition to drive in higher prices
The pace of recovery in the cement industry is likely to mirror the trends in economic recovery. Given the capacity overhang,
the capacity utilisation is likely to remain moderate at 68% in FY2017 (in Q1FY17 it was 64-65%). With the pace of new
capacity addition slowing down and improvement in the supply-demand scenario, utilisation is likely to increase to 71% in
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FY2018, which should support cement prices and profitability indicators for cement manufacturers, especially in FY2018.
Notwithstanding monsoons being active across most parts of the country, the price correction in the majority of regions has
been minimal (2-4%), and in some cases (Maharashtra and Andhra/Telangana) has actually improved.
which can offset some cost pressures; and drive margin improvement
While pet coke costs on landed cost basis have indeed moved up by 58% from the March quarter levels, we see the recent
cement price hike trends as a precursor to more healthy trends in H2, which should hence drive margin improvement as well
as a sustained recovery in earnings.
Energy and freight costs are under pressure on the back of rising pet coke, coal and diesel prices in the recent months. During
H2 FY2016, pet coke prices reported a decline of ~30% when compared to the corresponding period in the previous year.
However, pet coke prices have been increasing since February 2016 and increased ~87% when compared to the low of
January 2016. This has been due to the higher domestic demand of pet coke, coupled with the supply constraints. Pet coke
prices during July August 2016 are higher by 8% when compared to the corresponding period last year, hence, going
forward, the cost savings are likely to get diluted. Further, the coal prices, which declined during FY2016, have witnessed
some recovery during May-July 2016. In July 2016, coal prices were higher by 12.5% as against the price recorded during July
2015. The recovery in coal prices can be primarily attributed to supply side cuts and improved demand from China. Also,
during April-August 2016, there has been a nearly 15% increase in diesel prices when compared to Q4 FY2016 and around 6%
when compared to the April-August 2015. This is likely to put pressure on freight costs of the cement companies during
FY2017.
Investment Rationale
Management steps to correct the problems besetting the company could unlock value
India Cements was once a torch bearer of Cement industry especially in the South. However due to the distractions of the
promoters in sports and other activities, focus on the company and the group came down. In the meanwhile, the debt levels
kept rising, the company invested monies in other companies by way of equity/loans which did not yield the desired returns.
The promoter has over the past 1-2 quarters started to take corrective steps. He has started meeting the investor
community, heard their concerns and reportedly assured fast corrective action (including bringing down debt, unwinding of
investments/loans to group companies, improving manufacturing efficiencies etc). The results of the past few quarters also
bear out this change in terms of volumes and debt repayment (and interest payouts). ICL repaid Rs.258 crore of debt in FY16.
ICL which had skipped dividend in FY14 and FY15 came back in FY16 to declare 10% dividend.
Focus back on Cement rather than Cricket
During February 2015, the franchise rights in Indian Premier League (IPL) were transferred to Chennai Super Kings Cricket
Limited (CSKCL), a wholly owned subsidiary at its Net Asset Value (NAV as at March 31, 2014) as per books at Rs. 7.83 Crores.
This is the first step in slowly getting into a fully cement-focused company. Then in July 2015, there was a ban imposed on
Chennai Super Kings (CSK) for two years by the Supreme Court. The two-year ban on CSK was sentimentally negative for
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India Cements, the owner of the IPL franchise. However, it will not have any significant impact on the company's financials,
which also means that the downside is limited. The financial impact is negligible, as the franchise rights of CSK had already
been transferred to a separate entity at the end of the March'15 quarter. Thus, no profits from the IPL franchise were to be
included. Although the ban will mean no cash inflow on account from sale of the franchise, the verdict dissipated the
skepticism for India Cements.

Dominant player in South

With 15.55 mtpa capacity, ICL is the largest cement company in the south. Utilisation levels in the south seem to have
bottomed out as the company's capacity utilization in Q4FY16 was 68 %, an improvement on the 60 % which were running
earlier. However in Q1FY17, company is running at about 64-65%. Hence, because of the likely pick-up in demand for
construction for the new state capital and other large infrastructure projects announced by the AP and Telangana
governments, we expect higher utilisation in future. Its eight cement plants in Tamil Nadu, Telangana, Andhra Pradesh and
Rajasthan have 15.55 mtpa capacity. It has a 61% stake in Trinetra Cements, with a 1.5m tpa plant in the north (Rajasthan). It
has a grinding unit each at Chennai (TN) and Parli (Maharashtra).

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Sr. No.
1

Capacity (MTPA)
2.05

0.86

Location
Sankarnagar, Tamil Nadu
Sankari, Tamil Nadu

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3

1.85

Dalavoi, Tamil Nadu

1.1

Vallur Village, Tamil Nadu

1.46

Chilamakur, Andhra Pradesh

0.73

Yerraguntla, Andhra Pradesh

2.5

Vishnupuram, Telangana

2.4

Malkapur, Telangana

1.1

Parli Vaijnath, Maharashtra

10

1.5

Banswara, Rajasthan

Total

15.55

Note: Highlighted in blue are Cement grinding plants

Being dominant in the south, ICL will be a major beneficiary of a likely pick-up in demand from construction for the new state
capital
Government infrastructure projects, housing demand to drive growth
The companys key markets have witnessed an oversupply situation over the past few years. However, going forward, we
expect cement demand to improve led by creation of Telangana, political stability in Andhra Pradesh, Tamil Nadu housing
scheme for poor and increase in demand from individual house builders. There is an expectation of strong growth in volumes
especially in AP & Telangana as both governments of Andhra Pradesh & Telangana are planning to invest heavily in
infrastructure projects. Further, in the southern markets, the demand is likely to recover during H2FY17, supported by the
construction of a new capital for Andhra Pradesh and with the focus on irrigation and water grid schemes by the Telangana
Government. As ~50% of the companys capacity is in AP and Telangana, we expect the companys utilisation and volumes to
register healthy growth over the next few years.
ICL aims for 8-10% volume growth in FY17
Company expects a good monsoon to trigger the cement sector's growth and South India region is likely to lead the cement
demand rise, which would boost company's profits & margins in coming years. Riding on an upswing in the cement demand
in the past few quarters, company expects volume growth to be in the range of 7-8% in FY17 to exceed 9.6 million tonne it
clocked in FY16. EBITDA/tonne was Rs. 932/tonne in FY16 (on consolidated level) and it expects a stronger EBITDA/tonne in
FY17.
The company also continues to tap export markets for cement and clinker. It has been exporting 30,000 tonnes of cement
per month to Sri Lanka besides clinker. It is also planning to introduce a range of specialised cement to improve capacity
utilisation and bottomline. It is planning to introduce oil well and sleeper cement.

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Focus on cost rationalisations & better pricing to drive margin expansion

As per the channel checks, pricing in AP and Telangana has increased by Rs. 60-70/bag in September 2016. While the price
hike of Rs. 40-45/bag has been absorbed by the market, the remaining Rs. 25/bag is expected to be absorbed post Diwali. As
a result, the company is expected to witness healthy realisation H2FY17. Further, ICL is planning to increase pet coke usage to
80%. Also, the company has installed a captive power plant of 50 MW at Vishnupuram in Andhra Pradesh, which is expected
to stabilise from FY17. Management puts savings in power at ~Rs. 7bn, and ~$5-7 per ton of coal due to its captive coal
mines, substituting for high-cost imported coal. The plant has helped the company to increase overall captive consumption to
70%. In addition, ICL is investing Rs. 250 crore in FY17 to improve efficiency of its cement plants. This coupled with
refinancing of debt (from 11.5% to 11.0%) will further boost margins.
Due to old plant mix and less focus on manufacturing efficiencies, the EBITDA/Tonne of ICL has been short of its larger peers
like Ramco Cement.
Ramco Cement earned EBITDA/Tonne of Rs. 1,451 in FY16 while that of Ultratech was Rs. 922, Shree Cement was Rs. 1,367
compared to ICL which earned Rs. 932 on consolidated basis and Rs. 828 on standalone basis.
The management has promised to take corrective action to improve the EBITDA/ton and bridge the gap with its regional
peers over the next 1-2 years (except to the extent of difference in age composition of plants).
In FY16, the power generation from the gas power plant was continued to be affected due to restrictions imposed on the
evacuation of power by State Load Despatch Centre of Tamil Nadu Transmission Corporation Limited during the year and
hence the plant was able to generate only 163 million KWH as against 187 million KWH in the previous financial year. Power
evacuation is a critical function that allows generated power to be immediately evacuated from the WPP to the grid for
distribution. Tamil Nadu government today said it is in a position to sell surplus wind power generated in the state and urged
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the Centre to allocate dedicated transmission capacity on a priority basis for its evacuation. ICL is hopeful of better
evacuation infrastructure in future as a result of which its power cost can come down.
Improvement in Financial matrix
India Cements has invested considerably in unrelated non-core low return assets. Its FY15 RoE and RoCE were in low single
digits, respectively -0.1% and 7.6%, because of the high investments in noncore assets, resulting in low return on capital.
Management is considering restructuring or divesting its non-core businesses and retiring debt. However in FY16, RoE and
RoCE came in at 3.9% and 10.3% respectively showing signs of improvement on business front as well as lower debt in FY16
of Rs. 2639.8 crore as against Rs. 2978.2 crore in FY15. Its debt/equity ratio has also improved from 0.79 in FY14, 0.88 in FY15
to 0.77 in FY16. Going forward we expect Debt Equity to improve to 0.7x in FY17 and 0.5x in FY18E and RoE will improve to
6.2% in FY17 and 9.4% in FY18.
FY16 results review
The cement industry had to operate in a surplus situation throughout the year with a meagre growth of around 5% only
during the year as per the information published by the Department of Industrial Policy and Promotion (DIPP). The South in
particular had to operate under a nil growth scenario with a negative growth in production of around 5% in Tamil Nadu
during the year under review. Considering the fact that the entire southern Indian cement industry operated at sub 60% of its
capacity, the performance of the Company can be considered to be satisfactory with capacity utilization of around 63%
during the year. The sales volume including clinker was at 86.78 lakh tons as compared to 91.10 lakh tons in the previous
year.
With fairly consistent selling prices of cement during the year, the total sales and other income was at Rs.4,249 crores as
compared to Rs.4,454 crores in the previous year, a drop of nearly 5%. The operating parameters of power and fuel
consumption were kept under control despite the lower capacity utilization. This together with the improvement in blending
efficiency along with reduction in the fuel prices resulted in a higher EBIDTA of Rs.791.88 crores, an improvement of 11%
over that of previous year of Rs.713.35 crores. The interest charges were lower at Rs.370.35 crores as compared to Rs.425.99
crores while depreciation was at Rs.218.02 crores as compared to Rs.257.91 crores in the previous year. The consequent
profit before exceptional items and tax was at Rs.203.51 crores compared to Rs.29.45 crores in the previous year. The
performance can be considered to be satisfactory considering the weak growth in cement demand.
Shipping Division
The Shipping Division continued to operate 2 vessels during the year and performed 45 voyages mainly in Coastal Trade and
tramping. The total earnings of the Division were at Rs.40.71 crores, a drop of 13% when compared to Rs.46.97 crores in the
previous year due to reduction in the overall shipping freight rates.

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Chennai Super Kings Cricket Limited (CSKCL)
The Company was informed that CSKCL had sought the permission of BCCI, for the distribution of its shares by India Cements
Shareholders Trust to the non-promoter shareholders of India Cements and India Cements Ex-cricketers Trust, on September
30, 2015. The Company has also been informed that the approval of BCCI is awaited.
Trinetra Cement Limited
During FY16, the Northern markets had a reasonable growth of around 8% of cement production during the year under
review.
The only plant which is situated in the Northern India achieved significant strides in its operations clocking the highest clinker
and cement production since inception, during the year under review. The clinker production was at 9.78 lakh tons as
compared to 8.68 lakh tons in the previous year while the cement grinding was at 13.46 lakh tons (12.10 lakh tons)
registering a capacity utilization of 90%. The operating parameters further improved during the year under review and the
unit turned out a much improved bottom line with a net profit of Rs.9.32 crores as compared to a loss of Rs.24.18 crores in
the previous year.
Trishul Concrete Products Limited
The meagre demand growth for cement also had its impact on the sale of ready mix concrete with the unit achieving only
2.54 lakh cubic meters of sale of concrete as compared to 3.04 lakh cubic meters achieved in the earlier year. The total
revenue was at Rs.103 crores against Rs.121 crores in the previous year. While the selling prices were maintained as that of
previous year, the lower volume resulted in a profit before tax of Rs.67 lakhs only during the year as compared to a profit
before tax of Rs.3.88 crores in the previous year.
Q1FY17 Result Review
Revenues declined 1.5% YoY to Rs. 1202.5 crore as lower cement realisation more than offset volume growth. Cement
realisation declined owing to decline in cement prices in the South region. Volumes have increased to 2.31 mn tonnes led by
improved demand in Andhra Pradesh / Telangana, and higher sales in the East and West regions and export markets. Income
from wind-mills and shipping were respectively Rs. 43 million and Rs. 48 million. The regional sales mix was Tamil Nadu &
Kerala 46%, Karnataka 12%, AP & Telangana 16%, 20% in Maharashtra and the balance in the Eastern region.
ICL continues to expect 6-7% demand growth in the South in FY17. Management has guided for ~10% YoY volume growth in
FY17 as incremental growth will be driven by higher sales outside the South region.
At Rs. 886, the EBITDA/ton is lower than year ago EBITDA/ton of Rs.955 and is flat compared to quarter ago figure of Rs.882.
The YoY EBITDA is down due to higher other expenses and higher transport expenses as a percent of sales. The greater use of
pet-coke (now 80%) led to lower power & fuel costs (down 14% YoY). Employee cost was also down by 13% YoY. Lower

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interest (down by 15% YoY) and depreciation cost (down by 8% YoY) counter-balanced the higher tax outgo and drop in other
income, which led to an PAT of Rs. 44 crore, up 16% YoY.
As per reports, Subsidiary Trinetra Cement reported better performance: Trinetra Cements volumes increased 8% QoQ with
~90% utilisation. EBITDA increased by 3% QoQ to Rs. 26 crore (vs Rs. 8.6 crore in Q1FY16) on improved realisation. Trinetra
reported PBT of Rs. 9 crore for the quarter.
ICLs gross debt is Rs. 2,924 crore and cash balance is about Rs. 4 crore. Management expects capex to be Rs. 200-250 crore
p.a. and expect net debt to reduce by similar amount over the next few years.
Risks and Concerns
Slowdown in Cement demand due to poor monsoon and weak infrastructure growth
The primary risk faced by the Cement Industry in general is the poor demand for cement. Deficit in monsoon may impact the
demand for cement. While the Indian economy has withered the global down turn with a nominal growth of 7%, in ground
reality, it has not helped in demand improvement as the basic infrastructure growth has been weak. Thus if the Government
does not push for Indias overall infrastructure, cement demand is affected.
MMDR Act and Environmental rules & regulations
The Mines & Minerals (Development & Regulation) Act (MMDR Act) has prescribed new rules which complicates
procurement/mining of Limestone. As per the present rules, the mining activity can be carried out only after acquiring the
mining rights through auction. But, ICL has good amount of limestone reserves with itself. This is beneficial for the company
as its peers might have to buy through auction which means they incur high cost.
The norms prescribed by the Environmental authorities for pollution and emission levels and other gases would also mean
huge investments. The company on its part has been investing on several equipments in a phased manner in the past few
years to comply with the revised norms. The necessary approvals for ICL are in place from the environmental authorities for
installing new energy efficient cement grinding facility at Sankarnagar replacing some of the old cement mills. The company
has also got approval from the authorities for enhancing the capacity of its Sankari plant and its Dalavoi plant in Tamil Nadu.
Any further changes in rules would hinder the growth of the company.
Loans and advances given to related parties
ICL has given a total of Rs. 1303.35 crore (in FY16 on standalone basis) as loans and advances to subsidiaries, associates and
others in the nature of strategic long term investments in Cement, Sugar, Shipping, etc. some of these companies do not
generate revenues and are into losses. In future, if any of these advances have to be written off, ICLs financials would get
negatively affected. The Company has however as a prudent measure created a Contingency Reserve in the earlier years to
the extent of Rs. 200.00 Crores for any possible under recovery of these advances.

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Risks associated with forex fluctuations and international freight rates
Paucity of good quality coal at economic prices within the country has led the Industry to depend more on import of coal and
other fuels. The non-availability of good quality gypsum within India in adequate quantities is a constraint resulting in import
of high purity gypsum from other countries. With higher dependence on imported fuel and raw materials the Industry is open
to risks associated with forex fluctuations and international freight rates. The exchange risks are partially covered through
earnings from the shipping voyages and also through covering such transactions at appropriate time through hedging
mechanism.
Volatility in logistics cost and fuel charges
The Industry is also under pressure with continuous increase in logistics cost and frequent tariff revision by the Railways.
However, the impact during the current year was low on account of steep fall in the diesel prices. But the volatility in the
price of petroleum products is a cause of concern. The Company judiciously uses the rail and road transport mix driving home
the benefits of least cost transport model.
Pending cases in courts/designated authorities can lead to heavy penalties
The order passed by the Competition Commission of India (CCI) on 20th June 2012 against certain cement manufacturers
including ICL alleging contravention of the provisions of The Competition Act, 2002 and imposing a penalty of Rs.187.48
crores on the company, was appealed against and the Competition Appellate Tribunal (COMPAT) allowed the same and has
remitted the matter back again to the CCI for re-adjudication while directing the refund of the pre-deposit of Rs.18.75 crores
to the company. The matter is pending before the CCI after completion of the hearing on 22nd January 2016.
The Company has been informed that CSKCL, is contesting the demand of "Franchise Fee" by BCCI for the current season (for
which CSKCL has been suspended). The matter is currently sub-judice.
The Authorities have issued an attachment notice under the Prevention of Money Laundering Act, 2002 (PMLA) attaching
certain assets of the company for an aggregate value of Rs. 120.34 Crores. The Company filed an appeal against the Order of
the adjudicating authority specified under PMLA. The matter is currently sub-judice.
Low stake of promoter and pledge
The promoter has about 29% stake in the company which is low as compared to normal standards. Also about 76% of
promoters stake in pledged. Any volatility in stock prices can lead to sell off of promoters stake and cause unpleasant
market situation.
Conclusion & Recommendation
India Cements was once a torch bearer of Cement industry especially in the South. However due to the distractions of the
promoters in sports and other activities, focus on the company and the group came down. In the meanwhile, the debt levels
kept rising, the company invested monies in other companies by way of equity/loans which did not yield the desired returns.
The promoter has over the past 1-2 quarters started to take corrective steps. He has started meeting the investor
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RETAIL RESEARCH
community, heard their concerns and reportedly assured fast corrective action (including bringing down debt, unwinding of
investments/loans to group companies, improving manufacturing efficiencies etc). The results of the past few quarters also
bear out this change in terms of volumes and debt repayment (and interest payouts). ICL repaid Rs.258 crore of debt in FY16.
ICL which had skipped dividend in FY14 and FY15 came back in FY16 to declare 10% dividend.
The companys profit and return ratios have not moved much over the years due to the weak demand environment and its
large investments in unrelated non-core assets. However, with the improved demand outlook and better realizations, we
expect profitability to mend, resulting in greater capacity utilisation from present levels.
We think we can take a bet on the changes promised to be implemented by the management (which is capable and now
supposedly focused on its core business) especially given the fact that the current valuations (EV/tonne) of the company as
per FY16 consolidated results stands at ~$70 is quite low compared to its peers. As the component of debt in the EV/tonne is
high in the case of India Cements, repayment of debt aided by the above will lead to more than proportionate increase in the
Equity component of EV/Ton for ICL. The fact that the company owns 26,000 acres of land (mainly limestone mines related
apart from ~250 acres that can be monetized) means that brownfield/greenfield expansion in Cement can be made at a
comparatively lower costs in an age when acquiring fresh limestone mines is a challenge under the new MMDR regulations.
Also, ICL has about 1.99 crore shares of ICL held as treasury stocks through its subsidiaries (reflected in its consolidated noncurrent investment) whose cost is Rs. 167.31 crore but the market value is Rs. 312.43 crore which is about 6.5% of ICLs
current market cap. This provides a buffer for future debt reduction.
At the CMP of Rs. 157 Indian Cements quotes at EV/ton of $70. We think that investors could buy the stock at the CMP and
add on declines to Rs. 123-134 band (~EV/Ton of $56 & ~ 10.8x FY18E EPS) for sequential targets of Rs. 211.5 (~EV/Ton of $80
~ 17.7x FY18E EPS) and Rs. 263 (~EV/Ton of $95 ~ 22x FY18E EPS) over 2-3 quarters. The EV/ton of its more efficient
comparable peer Ramco Cements in FY18 is expected to be $175.
Particulars (Rs in Cr)
Total Operating Income
Operating Profit
Reported Profit After Tax after MI
EPS (Rs.)
P/E (x)
EV/EBITDA
RoNW (%)

FY12
4645.5
956.9
259.9
8.5
18.4
7.6
6.6

FY13
5178.7
975.5
188.0
6.1
25.5
8.0
5.8

FY14
5104.8
611.4
-243.4
-7.9
-19.7
12.6
0.3

FY15
5082.7
785.1
-3.3
-0.1
NA
9.9
-0.1

FY16
4889.6
890.8
134.4
4.4
35.7
8.3
3.9

FY17E
4993.6
988.7
222.7
7.3
21.5
7.2
6.2

FY18E
5548.1
1137.4
366.4
11.9
13.1
6.0
9.4

(Source: Company, HDFC sec)

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RETAIL RESEARCH
RETAIL RESEARCH
Financials
Quarterly Standalone
Particulars (Rs cr)
Income from Operations
Other Operating Income
Total Income
Raw Material Cost
Employee Expenses
Power & Fuel
Transportation & Handling
Other Expenses
Total Expenditure
Operating Profit
Other Income
PBIDT
Interest
PBDT
Depreciation
Exceptional Item
PBT
Tax (including DT & FBT)
Reported Profit After Tax
EPS (Rs.)
Equity
OPM (%)
PATM (%)

Q1FY17
1202.5
3.2
1205.7
177.7
79.3
201.9
232.5
309.7
1001.1
204.6
0.0
204.6
82.5
122.2
51.1
0.0
71.0
27.1
44.0
1.4
307.2
17.02
3.65

Q1FY16
1221.3
4.4
1225.7
184.3
91.0
235.2
221.0
293.7
1025.3
200.4
0.0
200.4
96.5
103.9
55.4
10.7
37.8
0.0
37.8
1.2
307.2
16.41
3.08

% chg
-1.5%
-26.8%
-1.6%
-3.6%
-12.9%
-14.2%
5.2%
5.4%
-2.4%
2.1%
2.1%
-14.6%
17.6%
-7.7%
-100.0%
87.9%
16.3%

bps
60
56

Q4FY16
1147.1
7.0
1154.1
175.9
93.3
258.9
234.4
173.2
935.7
218.4
0.1
218.5
91.3
127.2
52.2
0.0
75.0
23.8
51.2
1.7
307.2
19.04
4.44

% chg
4.8%
-53.5%
4.5%
1.0%
-14.9%
-22.0%
-0.8%
78.8%
7.0%
-6.3%
-6.3%
-9.7%
-4.0%
-2.1%
-5.3%
13.8%
-14.1%

bps
-202
-79

FY16
4226.9
22.1
4249.0
676.4
343.1
944.6
870.3
622.8
3457.1
791.8
0.1
791.9
370.4
421.5
218.0
3.2
200.3
62.5
137.8
4.5
307.2
18.73
3.24

FY15
4423.6
30.3
4453.9
658.7
318.2
1136.4
953.1
674.8
3741.1
712.8
0.6
713.4
426.0
287.4
257.9
0.0
29.5
0.0
29.5
1.0
307.2
16.11
0.66

% chg
-4.4%
-26.9%
-4.6%
2.7%
7.8%
-16.9%
-8.7%
-7.7%
-7.6%
11.1%
-89.1%
11.0%
-13.1%
46.7%
-15.5%
580.2%
367.9%

bps
262
258

(Source: Company, HDFC sec)

Profit & Loss - Consolidated

Particulars
Net Sales
Other Operating Income
Total Income
Total Expenditure
Raw Material Cost
Employee expense
Power & Fuel
Transportation & Handling
Other Expenses

RETAIL RESEARCH

FY12
4631.0
14.4
4645.5
3688.6
679.3
324.9
1164.2
828.4
691.9

FY13
5159.5
19.2
5178.7
4203.2
702.7
361.8
1346.0
1041.5
751.2

FY14
5084.8
20.0
5104.8
4493.3
784.9
384.9
1371.1
1109.8
842.8

FY15
5060.4
22.3
5082.7
4297.6
849.3
355.8
1235.6
1058.3
798.6

FY16
4865.4
24.2
4889.6
3998.9
848.0
381.1
1044.9
977.7
747.1

FY17E
4966.4
27.1
4993.6
4004.8
843.9
374.5
1038.7
988.7
759.0

FY18E
5516.8
31.2
5548.1
4410.7
926.5
410.6
1142.9
1093.0
837.8

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RETAIL RESEARCH
RETAIL RESEARCH
Operating Profit
Other Income
PBIDT
Interest
Exchange(gain) / loss on foreign loan
PBDT
Depreciation
Exceptional Item loss/ (profit)
PBT
Tax (including DT & FBT)
Reported Profit After Tax
Minority Interest and SoA
Reported PAT after MI & SoA

956.9
10.5
967.4
333.3
0.0
634.2
285.5
0.0
348.7
88.8
259.9
0.0
259.9

975.5
4.6
980.1
369.1
0.0
611.0
324.0
20.0
267.1
88.4
178.6
9.4
188.0

611.4
4.3
615.7
410.7
0.0
205.0
319.7
126.6
-241.2
1.2
-242.5
-0.9
-243.4

785.1
0.2
785.3
478.1
0.0
307.2
302.9
0.0
4.4
5.5
-1.2
-2.12
-3.3

890.8
0.0
890.8
420.8
0.0
470.0
263.9
3.2
202.9
68.8
134.0
0.33
134.4

988.7
1.0
989.7
376.5
0.0
613.2
276.5
0.0
336.7
114.5
222.2
0.50
222.7

1137.4
2.0
1139.4
314.7
0.0
824.6
278.8
0.0
545.8
180.1
365.7
0.75
366.4

(Source: Company, HDFCSec)

Balance Sheet Consolidated

RETAIL RESEARCH

Particulars (Rs in Cr)

Equity & Liabilities
Shareholders Funds
Equity Share Capital
Reserves & Surplus
Share Application money pending allotment

FY12

FY13

FY14

FY15

FY16

FY17E

FY18E

3937.9
307.2
3630.7
0.1

3991.2
307.2
3683.9
0.1

3670.9
307.2
3363.8
0.0

3380.6
307.2
3073.4
0.0

3430.2
307.2
3123.0
0.0

3606.7
307.2
3299.5
0.0

3917.6
307.2
3610.4
0.0

Non-Current Liabilities
Minority Interest
Long Term borrowings
Deferred Tax Liabilities (Net)
Other Long Term Liabilities
Long Term Provisions

2342.5
13.5
1751.9
331.1
174.1
71.8

2717.4
21.3
2132.1
335.9
148.5
79.4

2841.9
25.0
2240.7
336.7
160.3
79.1

2947.2
26.4
2445.4
337.9
65.7
71.9

2614.8
28.7
2075.5
367.3
68.3
75.0

2426.4
29.2
1805.7
422.4
80.6
88.5

2097.0
29.5
1408.5
473.1
88.6
97.4

Current Liabilities
Short Term Borrowings
Trade Payables
Other Current Liabilities
Short Term Provisions

2389.1
802.5
756.5
758.2
71.9

2514.0
869.3
886.5
682.5
75.8

2618.9
677.5
983.1
957.9
0.4

2359.6
532.8
948.3
878.0
0.5

2551.1
564.3
1012.7
936.7
37.5

2681.3
592.5
1063.3
983.6
42.0

2849.3
622.1
1148.4
1032.7
46.2

Total Equity & Liabilities

8669.5

9222.6

9131.7

8687.3

8596.1

8714.3

8864.0

Assets
Non-Current Assets

7375.3

7646.2

7464.0

6894.1

6784.1

6844.1

6791.6

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RETAIL RESEARCH
RETAIL RESEARCH
Fixed Assets
Gross Block
Depreciation
Net Block (Tangible Assets)
Intangible Assets
Capital Work-in-Progress
Non-Current Investment
Long -term Loans and Advances

5377.2
7203.1
2275.8
4927.3
279.5
170.4
420.8
1577.3

5555.2
7551.7
2602.8
4948.9
250.5
355.8
436.2
1654.7

5322.1
7807.1
2814.3
4992.8
216.91
112.4
440.1
1701.8

4697.3
7884.4
3349.6
4534.8
64.0
98.5
439.6
1757.3

4491.5
7979.5
3640.7
4338.7
56.8
96.0
442.1
1850.4

4635.2
8378.4
3917.2
4461.2
63.6
110.4
451.0
1757.9

4714.3
8713.6
4196.1
4517.5
73.1
123.7
460.0
1617.3

Current Assets
Current Investments
Inventories
Trade Receivables
Cash & Cash Equivalents
Short Term Loans & Advances

1294.2
1.6
562.7
247.3
12.2
470.6

1576.5
9.8
556.1
491.5
10.2
508.9

1667.8
2.1
602.2
461.7
7.2
594.7

1793.2
0.0
676.1
516.0
7.2
594.0

1812.0
0.0
666.4
564.5
36.2
545.0

1870.3
0.0
699.7
592.7
60.1
517.7

2072.4
0.0
769.6
663.9
69.4
569.5

Total Assets

8669.5

9222.6

9131.7

8687.3

8596.1

8714.3

8864.0

(Source: Company, HDFCSec)

Cash Flow - Consolidated

Cash from Operating Activities:
PBT
Add: Depreciation
Interest Paid
Less: Other Income

FY13
267.1
324.0
369.1
4.6

FY14
-241.2
319.7
410.7
4.3

FY15
4.4
302.9
478.1
0.2

FY16
202.9
263.9
420.8
0.0

FY17E
336.7
276.5
376.5
1.0

FY18E
545.8
278.8
314.7
2.0

Before adjustment of working capital

Working Capital Changes
Add: Inc. in current liabilities
Less: Inc. in Current Assets
Add: Increase in deferred tax liability
Less: Increase in deferred tax asset
Tax
Cash flow from Operations (I)

955.5

484.9

785.1

887.6

988.7

1137.4

58.2
276.0
4.8
0.0
88.4
654.1

296.6
102.0
0.8
0.0
1.2
679.1

-114.7
127.5
1.1
0.0
5.5
538.5

160.1
-10.2
29.4
0.0
68.8
1018.5

102.0
34.3
55.1
0.0
114.5
997.0

138.4
192.9
50.7
0.0
180.1
953.5

-348.6
-45.9
-8.2
-249.3
-652.0

-255.4
-181.7
7.7
226.1
-203.3

-77.4
-56.5
2.1
111.9
-19.9

-95.0
-20.2
0.0
-86.0
-201.3

-399.0
1.5
0.0
62.5
-335.0

-335.1
2.8
0.0
108.8
-223.6

Cash from Investing Activities:

Fixed Assets
Other adjustments
Current Investments
Long Term Loans & Advances & Other Current Assets
Cash Flow from Investing Activities (II)

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RETAIL RESEARCH
RETAIL RESEARCH
Cash from Financing Activities:
Dividend Paid
Long Term Borrowings
Other Non-Current Liabilities
Interest Paid
Cash Flow from Financing Activities (III)
Net Increase in Cash Flow
Opening Balance
Closing Balance(Estimated)

-71.9
447.0
-10.1
-369.1
-4.1

0.0
-83.2
15.1
-410.7
-478.8

0.0
60.0
-100.5
-478.1
-518.5

-37.0
-338.5
8.1
-420.8
-788.2

-46.2
-241.6
26.3
-376.5
-638.1

-55.5
-367.6
17.2
-314.7
-720.6

-2.0
12.2
10.1

-3.0
10.2
7.2

0.0
7.2
7.2

29.1
7.2
36.2

23.9
36.2
60.1

9.3
60.1
69.4

(Source: Company, HDFCSec)

Key Financial Ratios Consolidated

Particulars
No of Equity Shares
Current Market Price
Market Capitalization
Enterprise Value
FD EPS
Cash EPS (PAT + Depreciation)
PE(x)
Book Value (Rs.)
P/BV (x)
OPM (%)
PBT (%)
NPM (%)
ROCE (%)
RONW (%)
Debt-Equity
Current Ratio
Mcap/Sales(x)
EV/EBITDA

FY12
30.7
157.0
4822.7
7363.4
8.5
17.8
18.6
128.2
1.2
20.6
7.5
5.6
10.5
6.6
0.6
0.5
1.0
7.6

FY13
30.7
157.0
4822.7
7804.2
6.1
18.0
25.7
129.9
1.2
18.8
5.2
3.6
9.1
4.7
0.8
0.6
0.9
8.0

FY14
30.7
157.0
4822.7
7731.7
-7.9
10.7
-19.8
119.5
1.3
12.0
-4.7
-4.8
2.6
-6.4
0.8
0.6
0.9
12.6

FY15
30.7
157.0
4822.7
7793.8
-0.1
9.8
110.1
1.4
15.4
0.1
-0.1
7.6
-0.1
0.9
0.8
0.9
9.9

FY16
30.7
157.0
4822.7
7426.3
4.4
13.0
35.9
111.7
1.4
18.2
4.1
2.7
10.3
3.9
0.8
0.7
1.0
8.3

FY17E
30.7
157.0
4822.7
7160.8
7.3
16.3
21.7
117.4
1.3
19.8
6.7
4.5
11.9
6.2
0.7
0.7
1.0
7.2

FY18E
30.7
157.0
4822.7
6783.8
11.9
21.0
13.2
127.5
1.2
20.5
9.8
6.6
14.5
9.4
0.5
0.7
0.9
6.0

(Source: Company, HDFCSec)

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Fundamental Research Analyst: Zececa Mehta (zececa.mehta@hdfcsec.com)

HDFC securities Limited, I Think Techno Campus, Building - B, "Alpha", Office Floor 8, Near Kanjurmarg Station, Opp. Crompton Greaves, Kanjurmarg (East), Mumbai 400 042 Phone: (022) 3075 3400 Fax: (022) 2496 5066 Website:
www.hdfcsec.com Email: hdfcsecretailresearch@hdfcsec.com.
____________________________________________________________________________________________________________________________________________________________________________________________

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