2QFY2012 Result Update | Infrastructure

November 4, 2011

Nagarjuna Construction
Performance Highlights
Y/E March (` cr) Net sales Operating profit Net profit 2QFY12 1,090 103.2 11.4 2QFY11 1,201 123.4 46.0 1QFY12 1,142 116.5 23.3 % chg (yoy) (9.2) (16.4) (75.2) % chg (qoq) (4.5) (11.4) (51.0)

BUY
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Infrastructure 1,386 1.2 158/50 148,345 2 17,563 5,284 NGCN.BO NJCC@IN

`54 `75
12 Months

Source: Company, Angel Research

NCC posted a poor performance for 2QFY2012, below our and street expectations. Owing to the companys poor performance in 1HFY2012 and as no respite is expected from the macro challenges faced by the company in the medium term, we are revising our estimates downwards for FY2012 and FY2013. However, owing to its attractive valuations and diversified order book with exposure to most growth sectors, we maintain our Buy view on NCC. Dismal performance on all fronts: For 2QFY2012, NCC reported a 9.2% yoy decline in its top line to `1,090cr, which was below our/street expectations of `1,261cr/`1,271cr. EBITDA margin for the quarter came in at 9.5%, lower than our estimate of 10.3%. Interest cost during the quarter came in at `70.9cr a yoy/qoq jump of 89.4%/10.9% which above our estimates. The companys bottom line came in at `11.4cr, registering a yoy decline of 75.2%, owing to subdued topline growth and escalating interest costs, and much lower than our/street estimate of `29.8cr/`29.1cr. Outlook and valuation: The current outstanding order book of NCC stands at `16,570cr (3.3x FY2011 revenue), with order inflow of `1,746cr for 2QFY2012. Going ahead, we believe the NCCs order inflow would be driven by EPC work of its own power plant. However, earnings would continue to reel under pressure due to a soaring interest costs owing to high interest rate regime and increased debt levels to fund its investments in the captive projects (read power project/road BOT project) and working capital requirements. At the current price, the stock is trading at attractive valuations (4.4x its FY2013E earnings adjusted for its investments and subsidiaries) and at 0.5x FY2013E on P/BV basis (standalone). Our revised target price of `75 (earlier `82) is arrived on SOTP basis and implies an upside of ~38.0% from current levels hence we maintain Buy on the stock.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 19.5 21.4 44.7 14.4

Abs. (%) Sensex NCC

3m

1yr

3yr 65.2 (27.3)

(0.7) (15.9) (21.4) (65.7)

Key financials (Standalone)

Y/E March (` cr) Net sales (incl. op. income) % chg Adj. net profit % chg FDEPS (`) EBITDA margin (%) P/E (x) RoAE (%) RoACE (%) P/BV (x) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

FY2010 4,778 15.1 200.3 30.2 7.8 10.1 6.9 10.2 12.8 0.6 0.6 5.7

FY2011 5,074 6.2 163.4 (18.4) 6.4 9.6 8.5 7.1 9.7 0.6 0.7 7.6

FY2012E 5,095 0.4 91.4 (44.1) 3.6 9.5 15.2 3.8 8.1 0.6 0.8 8.2

FY2013E 6,139 20.5 146.9 60.9 5.7 9.8 9.4 5.9 9.0 0.5 0.8 8.0

Shailesh Kanani
022-39357800 Ext: 6829 [email protected]

Nitin Arora
022-39357800 Ext: 6842 [email protected]

Please refer to important disclosures at the end of this report

NCC | 2QFY2012 Result Update

Exhibit 1: Quarterly performance (Standalone)

Y/E March (` cr) Net sales Total expenditure Operating profit OPM (%) Interest Depreciation Non operating income Nonrecurring items Profit before tax Tax Reported net profit PAT (%) FDEPS (`)
Source: Company, Angel Research

2QFY12 1090.3 987.1 103.2 9.5 70.9 20.2 2.2 0.0 14.3 2.9 11.4 1.0 0.4

2QFY11 1201.3 1078.0 123.4 10.3 37.5 16.8 5.4 0.0 74.5 28.5 46.0 3.8 1.8

1QFY12 1141.5 1025.0 116.5 10.3 64.0 19.7 2.1 0.0 34.9 11.6 23.3 2.0 0.9

% Chg (yoy) (9.2) (8.4) (16.4) (80)bp 89.4 19.8 (58.9) (80.8) (89.9) (75.2) (280)bp (75.2)

% Chg (qoq) (4.5) (3.7) (11.4) (80)bp 10.9 2.4 7.4 (59.0) (75.1) (51.0) (100)bp (51.0)

1HFY12 2231.8 2012.1 219.7 9.8 134.9 39.9 4.3 0.0 49.2 14.5 34.7 1.6 1.4

1HFY11 2287.8 2058.7 229.1 10.0 66.8 32.5 6.7 0.0 136.6 49.2 87.4 3.8 3.4

% Chg (2.4) (2.3) (4.1) (20)bp 102.0 22.9 (35.6) (64.0) (70.5) (60.3) (220)bp (60.3)

Exhibit 2: 2QFY2012 Actual vs. Estimates

Estimates Net sales (` cr) OPM (%) PAT (` cr)
Source: Company, Angel Research

Actual 1,090.3 9.5 11.4

Variation (%) (13.6) (80)bps (61.8)

1,261.4 10.3 29.8

Decline in revenue owing to muted execution pace

For 2QFY2012, NCC posted a poor set of numbers on all fronts, below our and street expectations. The company reported a 9.2% yoy decline in its top line to `1,090cr, which was below our/street expectations of `1,261cr/`1,271cr. As per management, muted revenue performance was because Uttar Pradesh road project did not move as per expectations on account of heavy rainfall. Few of the companys mining and other projects in Andhra Pradesh also faced delays on account of Telangana issue. Going ahead, management has given a revenue guidance of `5,600cr (standalone) implying a run rate of ~20.9% growth for 2HFY2012, which we believe is aggressive given the NCCs poor performance since the last few quarters and persistent macro headwinds faced by the company. Hence, we have factored in lower top line of `5,095cr and `6,139cr for FY2012 and FY2013, respectively.

November 4, 2011

NCC | 2QFY2012 Result Update

Exhibit 3: Execution pace takes a hit

1,600 1,400 1,200 1,000 800 600 400 200 0 (11.1) 4.6 2.0 31.1 16.1 8.6 12.6 12.6 5.1 (4.7) (9.2) 54.5 39.0 60.0 50.0 40.0 30.0 20.0 10.0 (10.0) (20.0)

Exhibit 4: Decent order inflow for the quarter

3,500 3,000 2,500 2,000 1,500 1,000 500 (21.3) (28.8) (32.7) 59.5 25.2 0.9 31.5 (16.1) (29.5) 15.6 (33.3) (72.1) 102.1 120.0 100.0 80.0 60.0 40.0 20.0 0.0 (20.0) (40.0) (60.0) (80.0) (100.0)

4QFY11

1QFY12

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

Sales (` cr, LHS)

Growth (yoy %, RHS)

2QFY12

Order Booking (` cr, LHS)

Growth (yoy %, RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Projects update
Pondicherry Tindivanam: NCC has completed execution for this project and is awaiting approval from NHAI, which is expected in November 2011. Nelcast Power Project (1,320MW): As per management, Nelcast Energy and NCC Powers merger was approved by the High Court in October 2011. On the financial closure (FC) front, NCC has tied up debt of `5,300cr and is hopeful of declaring FC in November 2011. NCC has identified coal mines in Indonesia (30 million tonnes) with its share at 50% (15 million tonnes) for fuel linkage for the plant. Total investment in the mine for NCC would be at around `30cr, out of which `8cr-10cr has already been invested.
NCC has qualified for signing power purchase agreement (PPA) of 500MW with the Government of Andhra Pradesh. Further, the company is hopeful of tying up with the Government of Karnataka and Tamil Nadu for more PPAs to ensure that it ties up 900-950MW of power through PPAs.

Himachal Sorang: NCC is confident of achieving completion of this project as per

schedule in March 2012.

Net margin under severe pressure due to higher interest cost and subdued top-line growth
NCCs EBITDA margin for the quarter came in at 9.5% (10.3%), lower than our estimate of 10.3%. The company continues to reel under pressure on the earnings front on account of subdued top-line growth and escalating interest costs. Interest cost during the quarter came in at `70.9cr a yoy/qoq jump of 89.4%/10.9% which above our estimates. The companys bottom line came in at `11.4cr, registering a yoy decline of 75.2%, owing to subdued top-line growth and escalating interest costs, and much lower than our/street estimate of `29.8cr/`29.1cr. The companys debt level (`2,601cr) has remained flat on a sequential basis, but the rise in interest rates has bloated its interest cost. This has resulted in NCCs PATM falling to dismal level of 1.0% for the quarter.

November 4, 2011

3QFY11

2QFY12

NCC | 2QFY2012 Result Update

Exhibit 5: Soft performance at EBITDAM level

180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 10.4 10.4 10.2 8.8 7.6 10.3 9.7 9.6 9.0 10.2 9.5 12.0 11.5 11.0 10.5 10.0 9.5 9.0 8.5 8.0 7.5 7.0

Exhibit 6: PATM under pressure

120.0 100.0 80.0 60.0 40.0 20.0 0.0 4.0 4.1 4.0 3.8 3.8 3.8 3.0 2.5 2.0 1.0 6.7 8.0 7.0 6.0 3.5 3.5 5.0 4.0 3.0 2.0 1.0 0.0

9.9 10.0

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

EBITDA (` cr, LHS)

EBITDAM (%, RHS)

PAT (` cr, LHS)

PATM (%, RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Order book analysis

NCC had a decent order inflow of `1,746cr during the quarter, registering a yoy/qoq growth of 15.6%/26.1%. The companys order book stands at `16,570cr (3.3x FY2011 revenue) as of 2QFY2012, which is spread across nine verticals and the major contributors include the building, irrigation and water segments. Going ahead, we believe order inflow would be driven by EPC work of its own power plant and management expects the road, building, water and electrical segments to gather momentum and add significantly to the order book as well. NCC is confident of bagging atleast one road order of `2,500cr-3,000cr by this fiscal end.

Exhibit 7: Order backlog of `16,570cr (as of 2QFY2012, ` cr)

Source: Company, Angel Research

November 4, 2011

2QFY12

NCC | 2QFY2012 Result Update

Change in estimates
Owing to the companys poor performance in 1HFY2012 and given the macro challenges faced by the company, we are revising our estimates downwards for FY2012 and FY2013. We have factored in revenue of `5,095cr (earlier `5,755cr) and `6,139cr (earlier `6,689cr) for FY2012 and FY2013, respectively, as we believe NCC will continue to face sluggishness in execution as no respite is expected from the several headwinds faced by the sector. Further, due to high interest rates and subdued revenue growth expectations, we are estimating earnings of `91.4cr (earlier `141.3cr) and `146.9cr and (earlier `171.3cr) for FY2012 and FY2013, respectively.

Exhibit 8: Change in estimates to factor in lower top-line growth and higher interest cost
FY2012E Earlier estimates Revenue (` cr) EBITDA margin (%) PAT (` cr)
Source: Company, Angel Research

FY2013E Earlier estimates 6,689.2 9.8 171.3 Revised estimates Variation (%) 6,139.2 9.8 146.9 (8.2) (14.2) 5,095.0 9.5 91.4 (11.5) (35.4)

Revised estimates Variation (%)

5,754.6 9.5 141.3

Outlook and valuation

The current outstanding order book of NCC stands at `16,570cr (3.3x FY2011 revenue), with order inflow of `1,746cr for 2QFY2012. Going ahead, we believe the NCCs order inflow would be driven by EPC work of its own power plant. However, earnings would continue to reel under pressure due to a soaring interest costs owing to high interest rate regime and increased debt levels to fund its investments in the captive projects (read power project/road BOT project) and working capital requirements. At the current price, the stock is trading at attractive valuations (4.4x its FY2013E earnings adjusted for its investments and subsidiaries) and at 0.5x FY2013E on P/BV basis (standalone). Our revised target price of `75 (earlier `82) is arrived on SOTP basis and implies an upside of ~38.0% from current levels hence we maintain Buy on the stock.

November 4, 2011

NCC | 2QFY2012 Result Update

Exhibit 9: Derivation of SOTP-based target price for NCC (FY2013E)

Business Segment Core Construction - Parent NCC International (Construction) Real Estate Road BOT Projects Brindavan Infra Bangalore Elevated Tollway Western UP Tollway OB Infra Pondicherry Tindivanam Power venture Himachal Sorang NCC Power Himalaya Green Total CMP (`) Upside (%)
Source: Company, Angel Research

Methodology P/E P/E P/BV NPV NPV NPV NPV NPV P/BV P/BV P/BV

Remarks 8x FY2013E Earnings 5x FY2013E Earnings 0.5 of equity invested; NCC's share 80.0% CoE -14%, NCC's share 33.3% CoE -14%, NCC's share 35.4% CoE -14%, NCC's share 30.0% CoE -14%, NCC's share 64.0% CoE -14%, NCC's share 49.0% 1.0x FY11E equity invested; NCC's share 67.0% 0.5x FY11E equity invested; NCC's share 55.0% 1.0x FY11E equity invested; NCC's share 54.0%

` cr 1,176 195.0 48.0 215.1 12.4 55.3 28.3 47.1 72.0 278.2 103.2 125.0 50.0 1,912

`/share 45.8 7.6 1.9 8.4 0.5 2.2 1.1 1.8 2.8 10.8 4.0 4.9 1.9 74.5 54.0 38.0

% to TP 61.5 10.2 2.5 11.3 0.6 2.9 1.5 2.5 3.8 14.6 5.4 6.5 2.6 100.0

Exhibit 10: Key assumptions Order inflow is expected to get a boost in FY12 on account of captive power order
FY2007 Order inflow Revenue Order backlog (Y/E) OB-to-sales ratio (x)
Source: Company, Angel Research

FY2008 7,571 3,473 11,400 3.3

FY2009 4,951 4,151 12,200 2.9

FY2010 7,948 4,778 15,370 3.2

FY2011 6,800 5,074 16,180 3.2

FY2012E 11,691 5,095 24,549 4.8

FY2013E 12,820 6,139 29,930 4.9

4,745 2,871 7,302 2.5

Exhibit 11: Angel EPS forecast vs. consensus

Angel forecast Bloomberg consensus FY2012E FY2013E
Source: Company, Angel Research

Variation (%) (34.6) (12.0)

3.6 5.7

5.4 6.5

November 4, 2011

NCC | 2QFY2012 Result Update

Exhibit 12: Recommendation summary

Company CCCL HCC IRB Infra IVRCL JP Assoc. Punj Lloyd NCC Sadbhav Simplex In. Patel Engg Madhucon L&T ITNL CMP 21 28 169 41 79 58 54 134 209 99 67 205 TP Rating FY11 17 Reduce - Neutral 193 60 85 75 165 299 106 259 Accu. Buy 2,199 4,093 2,438 5,651 7,850 5,074 2,209 4,889 3,499 1,816 4,049 Top line (` cr) FY12E 2,362 4,152 3,024 5,798 FY13E CAGR (%) 2,646 4,633 3,980 6,994 9.7 6.4 27.8 11.2 13.1 18.3 10.0 11.9 12.4 1.2 17.6 19.4 26.5 2.5 1.2 13.6 5.9 5.5 (5.4) 6.4 8.0 21.5 18.4 5.6 54.3 22.3 EPS (`) FY11 FY12E FY13E CAGR (%) (0.4) (1.0) 12.5 4.2 3.7 2.5 3.6 9.1 20.4 17.1 5.8 64.2 23.9 2.4 0.6 14.0 6.1 5.3 4.0 5.7 9.8 29.9 16.7 6.8 74.0 25.3 (3.5) (25.8) 1.5 1.6 (1.8) (5.2) 11.1 18.1 (4.7) 10.7 16.7 6.4 8.1 5.7 3.9 14.4 4.0 7.3 9.7 0.9 3.7 18.6 1.6 Adj. P/E 6.2 5.5 21.3 23.3 7.1 6.3 10.2 1.0 3.5 15.7 1.5 8.7 5.5 3.8 15.0 14.3 4.4 5.9 7.0 1.0 3.0 13.7 1.4 OB/ 2.7 4.0 4.2 3.0 3.3 2.8 2.9 2.7 3.5 3.2 5.5 FY11 FY12E FY13E Sales(x)

Accu. 13,832 15,092 17,683 9,585 10,992 5,095 2,602 5,286 3,272 1,959 4,910 6,139 2,768 6,178 3,587 2,512 6,484 Buy Buy Buy Buy Buy

- Neutral

- Neutral

1,393 1,714

Buy 43,905 53,503 62,568

Source: Company, Angel Research

Exhibit 13: SOTP break-up

Company ` CCCL HCC IRB Infra IVRCL JP Assoc. Punj Lloyd NCC Sadbhav Simplex In. Patel Engg Madhucon L&T ITNL 17 4 101 43 31 72 46 89 299 40 59 1,332 90 Core Const. % to TP 100 9 52 71 37 100 62 54 100 33 55 78 35 ` 23 30 2 47 2 Real Estate % to TP 54 35 3 38 2 ` 16 70 8 76 16 33 143 Road BOT % to TP 37 36 11 46 13 31 55 Invst. In Subsidiaries ` 4 17 382 % to TP 2 29 22 ` 18 24 18 19 12 25 Others % to TP 9 29 25 16 12 10 Total ` 17 44 193 60 85 72 75 165 299 122 106 1,714 259

Source: Company, Angel Research

November 4, 2011

NCC | 2QFY2012 Result Update

Profit & loss statement (Standalone)

Y/E March ( ` cr) Net Sales Other operating income Total operating income % chg Total Expenditure Net Raw Materials Other Mfg costs Personnel Other EBITDA % chg (% of Net Sales) Depreciation& Amortisation EBIT % chg (% of Net Sales) Interest & other Charges Other Inc. (incl pft from Ass/JV) (% of PBT) Recurring PBT % chg Extraordinary Expense/(Inc.) PBT (reported) Tax (% of PBT) PAT (reported) Add: Share of earnings of asso. Less: Minority interest (MI) Prior period items PAT after MI (reported) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) (Reported) Fully Diluted EPS (`) (Diluted) % chg FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E 3,473 3,473 21.0 3,113 1,096 1,704 140 173 360 33.4 10.4 48 312 29.9 9.0 112 45 18.4 245 12.1 245 81 33.1 164 2.2 162 162 40.0 4.7 6.9 6.3 40.0 4,151 4,151 19.5 3,778 1,304 2,084 189 201 374 3.9 9.0 53 320 2.8 7.7 162 70 30.7 228 (6.9) 228 74 32.6 154 154 154 (5.0) 3.7 6.5 6.0 (5.0) 4,778 4,778 15.1 4,294 1,807 2,066 184 237 483 29.4 10.1 53 431 34.5 9.0 196 69 22.6 303 33.0 (34) 337 116 34.5 221 4.1 217 200 30.2 4.2 8.4 7.8 30.2 5,074 5,074 6.2 4,586 1,756 2,335 244 251 488 0.9 9.6 69 419 (2.7) 8.3 257 103 38.9 266 (12.5) 266 97 36.7 168 4.8 163 163 (18.4) 3.2 6.4 6.4 (18.4) 5,095 5,095 0.4 4,609 1,573 2,570 211 255 486 (0.4) 9.5 78 407 (2.8) 8.0 361 89 65.6 135 (49.1) 135 44 32.4 91 91 91 (44.1) 1.8 3.6 3.6 (44.1) 6,139 6,139 20.5 5,540 1,903 3,081 249 308 599 23.3 9.8 92 507 24.5 8.3 411 122 56.0 218 60.9 218 71 32.4 147 147 147 60.9 2.4 5.7 5.7 60.9

November 4, 2011

NCC | 2QFY2012 Result Update

Balance sheet (Standalone)

Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Preference Capital Reserves& Surplus Shareholders Funds Minority Interest Total Loans Deferred Tax Liability Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Investments Current Assets Inventories Sundry Debtors Cash Loans & Advances Other Current liabilities Creditors/Adv/Other Liabilities Mobilisation Advance & Others Provisions Net Current Assets Mis. Exp. not written off Total Assets 662 142 519.7 14.3 565 3,029 549 868 233 1,372 6.1 1,644 1,073 483.3 88.0 1,384 0.0 2,483 623 164 459.2 28.1 740 3,361 750 1,026 135 1,448 3.0 1,641 1,088 466.6 86.7 1,721 0.0 2,948 756 202 553.8 43.4 941 4,092 754 1,299 184 1,852 3.2 1,845 1,270 479.8 95.7 2,247 3,785 923 249 674.5 46.9 1,201 4,946 896 1,454 140 2,447 9.3 1,974 1,356 546.9 71.2 2,971 4,894 1,053 327 726.4 50.5 1,501 4,965 900 1,250 128 2,676 11.1 2,051 1,389 576.7 85.5 2,915 5,192 1,233 418 814.8 56.7 1,849 5,960 1,077 1,507 146 3,216 13.4 2,557 1,725 729.6 102.6 3,403 6,123 46.0 1,526 1,572 894 17 2,483 45.8 1,640 1,686 1,244 19 2,948 51.3 2,178 2,230 1,530 25 3,785 51.3 2,327 2,379 2,484 31 4,894 51.3 2,377 2,428 2,734 31 5,192 51.3 2,482 2,533 3,559 31 6,123 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

November 4, 2011

NCC | 2QFY2012 Result Update

Cash flow statement (Standalone)

Y/E March (` cr) Profit before tax (excl MI) Depreciation Change in Working Capital Less: Other income Direct taxes paid Cash Flow from Operations (Inc.)/ Dec. in Fixed Assets (Inc.)/ Dec. in Investments Other income Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E 245 48 608 45 112 (472) (159) (88) 45 (202) 429 257 23 (1) 663 (10) 243 233 228 53 435 70 132 (355) (7) (175) 70 (113) 350 35 55 370 (98) 233 135 337 53 477 69 116 (272) (148) (201) 69 (280) 361 286 39 (6) 602 49 135 184 266 69 768 103 97 (635) (170) (260) 103 (327) 954 30 (6) 918 (44) 184 140 135 78 (45) 89 44 126 (134) (300) 89 (345) 249 42 207 (12) 140 128 218 92 470 122 71 (353) (186) (348) 122 (412) 826 42 784 18 128 146

November 4, 2011

10

NCC | 2QFY2012 Result Update

Key ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Order Book to Sales Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value DuPont Analysis EBIT margin Tax retention ratio Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) ROACE (Pre-tax) Angel ROIC (Pre-tax) ROAE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) WC cyc (ex-cash/mob.adv)(days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage 0.4 1.8 2.8 0.7 3.0 2.0 0.6 2.8 2.2 1.0 4.8 1.6 1.1 5.4 1.1 1.3 5.7 1.2 6.0 50 76 144 89 6.5 57 83 137 120 6.9 57 89 126 139 6.0 59 99 131 176 5.2 64 97 139 201 5.4 59 82 131 180 14.9 16.9 12.4 11.8 12.7 9.4 12.8 13.4 10.2 9.7 10.0 7.1 8.1 8.3 3.8 9.0 9.2 5.9 9.0 0.7 1.9 11.3 9.8 0.4 11.9 7.7 0.7 1.6 8.5 10.2 0.5 7.6 9.0 0.7 1.5 8.8 9.3 0.6 8.5 8.3 0.6 1.2 6.4 8.1 0.8 5.0 8.0 0.7 1.0 5.6 9.3 1.0 1.8 8.3 0.7 1.1 6.2 8.8 1.2 3.0 6.9 6.3 8.2 1.3 61.3 6.5 6.0 8.1 1.1 65.7 8.4 7.8 9.9 1.3 86.9 6.4 6.4 9.0 1.0 92.7 3.6 3.6 6.6 1.4 94.6 5.7 5.7 9.3 1.4 98.7 8.6 6.6 0.9 2.4 0.6 5.7 0.8 3.3 9.0 6.7 0.8 2.0 0.6 6.7 0.8 2.9 6.9 5.5 0.6 2.4 0.6 5.7 0.7 3.2 8.5 6.0 0.6 1.9 0.7 7.6 0.8 3.8 15.2 8.2 0.6 2.6 0.8 8.2 0.8 4.8 9.4 5.8 0.5 2.6 0.8 8.0 0.8 4.9 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

November 4, 2011

11

NCC | 2QFY2012 Result Update

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

NCC No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors.

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

November 4, 2011

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