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(in INR millions) Mar-09 Mar-10 Mar-11 Mar-12 Mar-13

Assets
Cash & equivalents 114.95 813.65 2,950.87 943.69 12.34
Short-term investments 43.75 237.93 301.90 423.21 432.64
Trade receivables 597.26 1,032.39 1,556.35 1,467.95 1,425.87
Total current assets 755.95 2,083.98 4,809.12 2,834.86 1,870.85

Loans and advances 112.14 100.27 351.59 2,383.03 664.45


Investments 108.47 98.94 456.08 544.09 197.00

Gross fixed assets 160.87 527.35 588.11 693.44 3458.72*


Less: Cumulative depreciation 19.19 34.09 71.40 109.62 148.83
Net fixed assets 141.68 493.26 516.71 583.81 3,309.89
NFA % Revenue 7% 15% 14% 19% 21%
Total assets 1,118.24 2,776.44 6,133.50 6,345.79 6,042.18

Liabilities & equity


Trade payables 65.77 105.85 135.41 143.63 88.75
Short-term borrowings 0.62 0.11 619.71 813.27 793.82
Other current liabilities 8.05 5.09 32.36 44.48 96.17
Total current liabilities 74.43 111.05 787.48 1,001.38 978.73

Provisions 41.11 46.66 34.33 32.73 43.21


Deferred tax liabilities (net) 30.95 51.65 63.66 65.21 74.19
Long-term borrowings 397.28 296.99 51.95 30.90 4.57

Share capital 129.24 205.41 299.99 299.99 299.99


Reserve & surplus 445.25 2,064.67 4,896.09 4,915.58 4,641.50
Total equity 574.48 2,270.09 5,196.08 5,215.57 4,941.49

Total liabilities & equity 1,118.24 2,776.44 6,133.50 6,345.79 6,042.18


* Includes land acquisition of INR 2,765.28 million.

Interest expense 47.47 51.66 72.50 117.83 126.59


Interest Bearing Debt 397.90 297.10 671.66 844.17 798.38
11.9% 17.4% 10.8% 14.0% 15.9%

Debtors I.O. 3.57 3.12 2.45 2.11 1.82


DSO 102 117 149 173 200
Creditor IO 32.45 30.42 28.13 21.61 29.25
CSO 11 12 13 17 12
1,337.12

2,962.28

693.44

18.326

3059.76

14.0%
Taken

100

25
(in INR millions) Mar-09 Mar-10 Mar-11 Mar-12
Revenue 2,134.01 3,220.12 3,808.79 3,103.50
Direct operating cost 1,754.90 2,724.24 3,267.88 2,824.33
Other operating expenses 155.62 171.62 177.26 121.41
Depreciation 11.39 14.90 48.83 48.68
EBIT 212.09 309.35 314.82 109.08
Other income 6.52 3.72 12.52 25.83
Interest expense 47.47 51.66 72.50 117.83
PBT 171.14 261.41 254.84 17.08
Tax 59.65 56.00 30.94 5.55
PAT 111.49 205.41 223.90 11.54

% Revenue 2014 2015 2016


Revenue 2,856 3,141 3,455
Direct Operating Cost 86% 2,456 2,701 2,971
Other operating expenses 3% 86 94 104
Depreciation 2% 57 63 69
EBIT 257 283 311
Interest expense 14% 112 112 112
PBT 145 171 199
TAX (Corporate Tax) 33.50% 49 57 67
PAT 97 114 132
Change in Working Capital -750 59 65
Capital Expendeture 112 123 135
FCFF (EBIT-Tax-CWC-CAPEX+Depreciatio) 904 107 114
Terminal Value
Net FCFF 904 107 114
NPV 1,823
WACC 14.41%

A Value of Operating Asset (NPV) 1,823.39


Cash & Equivalents 12.34
Short term Investment 432.64
Loan and Advances 664.45
Long term Investment 2,962.28
b1 Total at Asset Side 4,071.70
Short term borrowing 793.82
Long term borrowing 4.57
Provission 43.21
Deferred tax liabilities (net) 74.19
Others Current Libility 96.17
b2 Total at Liability Side 1,011.94

B Value of Non-Operatiing Asset (b1-b2) 3,059.76


Equity Value (OA + NOA) (A+B) 4,883.15

Share Capital 299.99


Face Value (₹) 1 Source: http://economictimes.indiatimes.com/aqua-log
Nos. of outstanding Share 299.99
Value per Share 16.28

Calculation for Interest Rate Expenses


Interest expense 47.47 51.66 72.50
Interest Bearing Debt 397.90 297.10 671.66
Interest rate 12% 17% 11%
Average Cost of Debt 14%
Interest Expense (Assuming Debt Const) 111.7

Calculation for Change in Working Capital (Delta NWC)


Trade Recivable - 782.33 860.56 946.62
Trade Payable - 195.58 215.14 236.66
Working Capital 1,337.12 586.75 645.42 709.97
Change in Working Capital -750.38 58.67 64.54

Calcultion for Capital Expendeture (Changed in GFA)


NFA 21% 600 660 726
Cumolative Depreciation 148.83 206 269 338
GFA 693.44 806 928 1063
Change in GFA (CAPEX) 112 123 135

Calculation for Beta


Debt to total
Beta* as on Beta
Dec. 2013
capitalization D/E
(market values) (Unleavered)
Allcargo Logistics Ltd. 0.45 0.24 0.32 0.37
Blue Dart Express Ltd. 0.58 0.00 0.00 0.58
Gati Ltd. 1.46 0.45 0.82 0.95
Patel Integrated Logistics Ltd. 1.32 0.65 1.90 0.58
Transport Corporation of India Ltd. 1.14 0.45 0.82 0.74
Average Market Beta(unleveared) Taken as β(ul) for Aqua Logistic 0.64
Target Capital Structure of Aqua L (D:E) 20 : 80 0.25
Aqua Logistic Leveared Beta = 0.75 = β(ul)*(1+ (1-t)*D/E)

Calculation for WACC


Cost of Debt (Average Interest Rate) 14%
Cost of Equity
Risk free Rate 8.19% Exhibit 10
Risk Premium 10.55% Exhibit 10
COE 16.11%
WACC 14.41%
Mar-13 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13
2,595.92 CAGR 13.3% 5.0%
2,334.89 82% 85% 86% 91% 90%
80.34 7% 8% 8% 6% 4%
49.20 1% 1% 2% 2% 2%
131.48
-279.98
126.59
-275.09
8.98
-284.07

2017 2018
3,801 4,181
3,269 3,595
114 125
76 84
342 376
112 112
230 264
77 89
153 176
71 78
149 163
121 130
1448
121 1,578
ndiatimes.com/aqua-logistics-ltd/stocks/companyid-30953.cms

117.83 126.59
844.17 798.38
14% 16%

1,041.28 1,145.41
260.32 286.35
780.96 859.06
71.00 78.10

798 878
414 497
1212 1375
149 163
Financial Year Mar-09 Mar-10 Mar-11 Mar-12

Income Statement (INR millions): Transport Logistics Services Industry


Revenue 230,348.03 263,546.94 248,141.06 246,853.98
Direct operating cost 159,231.27 190,940.58 204,463.87 197,554.61
Other operating expenses 17,908.00 18,606.82 8,081.79 7,959.93
Depreciation 61,797.83 62,955.72 8,097.76 8,912.70
EBIT -8,589.07 -8,956.18 27,497.64 32,426.74
Other income -476.07 -252.64 -333.40 -1,055.94
Interest expense 9,116.63 9,504.70 6,130.60 7,951.32
PBT -18,181.77 -18,713.52 21,033.64 23,419.48
Tax 4,861.60 4,712.28 4,841.14 6,056.52
PAT -23,043.37 -23,425.80 16,192.50 17,362.96
Count 99 109 121 106
Mar-13

s Industry
224,671.74
181,590.06 0.69 0.72 0.82 0.80 0.81
7,593.80 8% 7% 3% 3% 3%
8,483.82 27% 24% 3% 4% 4%
27,004.06
-544.20
7,621.08
18,838.78
5,049.70
13,789.08
83
Year-Month Aqua Logistics Ltd. Year-Month Aqua Logistics Ltd.
10-Feb 23.21 12-Jan 12.42
10-Mar 27.11 12-Feb 12.27
10-Apr 36.49 12-Mar 12.69
10-May 43.88 12-Apr 11.56
10-Jun 54.00 12-May 9.77
10-Jul 54.95 12-Jun 8.89
10-Aug 64.11 12-Jul 10.40
10-Sep 63.53 12-Aug 9.43
10-Oct 58.90 12-Sep 9.72
10-Nov 50.50 12-Oct 9.41
10-Dec 40.40 12-Nov 13.21
11-Jan 29.25 12-Dec 14.11
11-Feb 17.30 13-Jan 12.94
11-Mar 17.50 13-Feb 5.83
11-Apr 17.00 13-Mar 2.64
11-May 15.85 13-Apr 3.45
11-Jun 16.00 13-May 2.58
11-Jul 15.30 13-Jun 2.20
11-Aug 14.35 13-Jul 1.90
11-Sep 13.54 13-Aug 1.99
11-Oct 14.02 13-Sep 2.44
11-Nov 13.89 13-Oct 2.69
11-Dec 8.94 13-Nov 1.94
Dec-13* 1.36
*The last trading day of ALL on the Bombay Stock Exchange (BSE) was on
December 9, 2013.
Category 2010 2011 2012 2013
Promoters 43.52 29.79 26.46 6.61
Other bodies corporate 34.89 23.45 21.31 20.01
Financial institutions 0.00 0.05 3.29 21.71
Foreign institutional investor 7.24 6.88 10.07 12.26
Non-resident Indians 0.02 0.04 0.05 0.09
Non-resident (non-repatriable) 0.01 0.02 0.02 0.03
Officer bearers 0.85 0.55 0.23 0.09
Clearing member 2.88 0.73 1.13 1.92
Public 10.59 6.96 9.63 9.47
Global depository receipts 0.00 31.53 27.81 27.81
Total 100.00 100.00 100.00 100.00
Financial Year Mar-09 Mar-10 Mar-11 Mar-12 Mar-13

Gearing, Liquidity, Efficiency Ratios: Transport Logistics Services Industry


Liquidity
Cash to current liabilities 0.64 0.51 0.60 0.66 0.58
Cash to avg. cost of sales 73.58 66.78 64.76 73.26 73.14
Quick ratio 5.37 4.22 1.38 1.36 1.17
Current ratio 1.21 1.06 1.46 1.58 1.46
Debt to equity ratio 0.80 0.78 0.56 0.58 0.48
Interest cover -1.23 -1.17 4.39 4.14 3.73
Working capital & turnover ratios
Debtors 37.48 46.74 51.08 50.38 54.82
Creditors 84.90 109.72 63.92 58.07 55.29
Asset utilization ratios
Total income / Total assets 0.56 0.51 0.97 0.92 0.88
Sales / NFA excl. reval. 2.65 2.21 2.53 2.31 2.31
Count 99 109 121 106 83
GDP growth rates and yield on treasury securities*

GDP growth Yield on 5-year treasury


Year rate (%) securities (%)
2008-09 6.700 8.578
2009-10 8.600 7.028
2010-11 9.300 7.715
2011-12 6.200 8.362
2012-13 5.000 8.193

Bank group-wise base rate for quarter ended December 2013*

Bank group Interest rate range (%)


Minimum Maximum Median
Public-sector banks 9.95 10.25 10.25
Private-sector banks 10.00 11.50 10.75
Foreign banks 7.50 14.25 10.00

Additional information
Corporate tax rate in India 33.50%

Market risk premium 10.55%**


Debt to total Debt to total
Beta* as on capitalization capitalization (market
Dec. 2013 (book values) values)**
Allcargo Logistics Ltd. 0.45 0.29 0.24
Blue Dart Express Ltd. 0.58 0.00 0.00
Gati Ltd. 1.46 0.18 0.45

Patel Integrated Logistics Ltd. 1.32 0.36 0.65


Transport Corporation of India
Ltd. 1.14 0.46 0.45
* Beta estimated through regression of historical stock returns on broad market index.
** Market value debt to capitalization ratio is the ratio of book debt to book debt plus market equity.
Revenue
CAGR (last 5
years)
24.73%
-23.55%
14.68%

11.77%

10.22%

arket equity.