NBS Research Report

1
 15 Dec 2017

Buy
For the long term

MARKET DATA
Buying Range : Rs.540-560
Market Cap : Rs.6230cr.
Cyient Ltd. No. of shares : 11.26cr.
Free Float : Rs.3989cr.
Face value : Rs.5
A structurally well placed growth story 52-w High/Low : Rs.605/440
BSE Code : 532175
NSE Code : CYIENT
Bloomberg Code : CYL:IN
Promoter Holding: 22.18%
Public Holding : 77.82%

2
 Dec 2017 NBS Report
Cyient Ltd.
Company Overview Sector: Information Tech.

o Founded in 1991, CYL provides engineering, manufacturing, geospatial, network and operations
management services to a diversified base of 300 clients across eleven industries which include
aerospace and defence, communications, rail transportation, heavy equipment and industrial,
navigation and semiconductors.
o The company was initially formed as a GIS service provider and later ventured into engineering
services in 2000's, with its first contract with Pratt and Whitney. The company expanded its
engineering services capabilities to other industries as well, including transportation, semiconductors,
industrial, energy and natural resources.
o With Rangsons acquisition in 2014, the company also ventured into design led manufacturing business
(small scale prototype manufacturing), with an intention to provide services through-out the value
chain to the clients.
o Cyient went through a strategic restructuring in 2014. It rebranded itself from erstwhile Infotech
Enterprises, appointed Krishna as MD and CEO. The company moved to a vertical (business unit)
organization structure (from earlier service line driven structure), with a focus on further building
domain specific capabilities.
o The company is now gearing-up to offer integrated services, ideation-design-prototype-maintenance
in case of engineering, and plan build-operate for telecom and utility verticals. The top clients'
momentum is solid (high correlation with the overall growth), trends are stable to positive in all the
key verticals, and order intake is healthy.

3
 Dec 2017 NBS Report
Cyient Ltd.
Business Analysis Sector: Information Tech.

Cyient (CYL) is among the few Indian companies with a large exposure to faster growing engineering
services and has niche capabilities in rapidly expanding network engineering (telecom) and utility/GIS
practices. These segments are relatively immune from the difficult transition that the traditional IT
companies are undergoing. Engineering services is among the fastest growing sub-segments of the
overall Indian IT services market as per NASSCOM. It involves the design, development, testing, rollout
and maintenance aspects of the product and process development chain (excludes mass manufacturing)
across the industries including automotives, hi-tech, aerospace/defense and healthcare.
Company has gone through several strategic changes in the last three years, including verticalisation,
broadening of service portfolio (through several M&As) and venturing into design led manufacturing. In
FY14, CYL articulated its strategy of diversifying its offerings towards systems, solutions and services
(termed as S3 strategy) and it has made several acquisitions in this direction since then. We expect this
strategy to yield very good results over the long term.
CYL mainly operates in three broad business segments - ER&D services (65% of revenues), telecom
network design and implementation (20%) and geospatial services (15%). With momentum by its side in
the key verticals and larger accounts we see a steady growth in each of these segments.
Structurally well placed in the fast changing IT industry:
With an exposure in niche segments CYL is structurally well placed in an otherwise fast changing IT
industry. Engineering services is a large and relatively underpenetrated market and is expected to grow
slightly faster than the Indian IT and BPO exports. Cyient has leadership positioning in the aerospace and
transportation verticals (together, they account for 75% of the engineering services revenue), with some

4
 Dec 2017 NBS Report
Cyient Ltd.
Business Analysis Sector: Information Tech.

REVENUES BY INDUSTRIES (FY17)

REVENUES BY VERTICALS (FY17)
Semiconductor, Med Tech.,
Utility & GIS,
3.7% 1.7%
15% Industrial, 8.4%
Aerospcae &
Transportation, Defence, 33.0%
8.7%

Communicati
on, 20%
DLM, 10.1%

ER&D
Services, 65%
Communications,
Utilities & GIS, 19.1%
15.3%

very strong client relationships. Indeed, it is among the few Indian IT companies with such a large
exposure to engineering services. In communications, there are opportunities in the new network roll-
out/upgradation and Cyient has built some strong capabilities in this area, with an expanding client base
and increasing wallet share. In utilities and geospatial, Cyient's business has been growing in areas such
as smart grid/smart meters, analytics and asset utilization.
Aerospace/Defense & Transportation– Niche business with leadership position:
Cyient is a mature player in the aerospace/defense and transportation verticals (particularly rail
transportation) and has been consistently recognized as a leader in these verticals by the industry analyst
Zinnov. These verticals account for about 58% and 8.7% of Cyient's engineering revenue, respectively.

5
 Dec 2017 NBS Report
Cyient Ltd.
Business Analysis Sector: Information Tech.

Cyient has strong mechanical and evolving electronic capabilities. In aerospace/defense, it offers services
ranging from new engine/engine component design (mechanical design using computer aided tools),
avionics solutions (communication system, cockpit display and navigation, etc.), manufacturing
engineering solutions (such as process planning, assembly engineering), and MRO (preparing repair
schedules, predictive maintenance, etc.). In the transportation segment, Cyient provides services
including 3D design for rail electrification, signaling design, and installation, testing and commissioning
support. It also has a large pool of employees with certain pre-requisite certifications such as IRSE.
Aerospace/defense manufacturing behemoth Pratt and Whitney (United Technologies Corporation's
subsidiary manufacturing aircraft engines that are used in both civil and military aviation) is CYL's largest
client. Cyient has strengthened its relationship over the years with UTC by broadening the service
portfolio and has been recognized as the most innovative supplier for three years in a row. Pratt and
Whitney is also a strategic investor in the company with 14% stake.
In transportation, Cyient works very closely with Bombardier in its rail segment, particularly in rail
signaling and electrification. The company has a pool of 450 signal design engineers and this is a Europe
dominated business. The semiconductor segment's share has come down over the years, given industry
consolidation and client specific factors; however, the company believes this segment has bottomed-out.
Medical and consumer electronics is a small but high potential segment as per management.
Design led manufacturing - A differentiated play:
CYL acquired Rangsons in 2015 to strengthen its strategy of providing solutions and systems along with
services and becoming an end-to-end ER&D provider. Rangsons is engaged in manufacturing and

6
 Dec 2017 NBS Report
Cyient Ltd.
Business Analysis Sector: Information Tech.

assembly of electronic systems. While Rangsons specialized in build-to-specifications where design is

provided by the customer, CYL wants to extend this to build-to-design where the entire process from
design to manufacturing the product is done by CYL. It could yield lucrative margins and increased wallet
share for CYL among its key customers, as per management.
However, since the acquisition, when its revenues were c.USD70mn with low double-digit Ebitda
margins, revenues declined to USD40mn in FY16 before recovering to USD54mn by FY17 and the
segment remained loss making. We believe Rangsons/DLM is now on a recovery path with 20% growth
guided by the management in FY18 and decent order book announced for the segment. Although the
strategy is differentiated, proof of execution is required for investors to ascribe value to this acquisition.
We expect 20%+ growth and EBITDA margins to improve to mid-single digits over the next two years
which would also aid overall margin expansion for the company.
Unique capabilities in telecom and utility segments:
Cyient helps the telecom service providers with new network roll-outs (including fiber deployment and
network optimization). Its services include planning, designing and managing wireless and wireline
networks, tools that automate error detection in network design and help correct the error, and data
analytics, besides business operations management. It also has geospacial offerings for the
communication vertical.
Communication is the second largest segment for Cyient (19.1% of the services revenue) and it has built
some strong capabilities on the network side. Cyient's client base includes some of the leading telecom
service providers (for example, Telstra in Australia has witnessed significant traction for Cyient). Besides

7
 Dec 2017 NBS Report
Cyient Ltd.
Business Analysis Sector: Information Tech.

these, LTE Broadcast is also an opportunity for the company as per management. The company believes
this segment can sustain the strong growth momentum built-up over the recent quarters.
Utility and geospatial (U&G) accounts for 17% of the company's services revenue and has picked-up
momentum in the recent quarters. The growth is primarily driven by increasing work on smart meters,
smart grids (upgradation of grids that have been in service for many years), smart cities and incremental
focus of utilities to optimize cost by better asset utilization. From spatial data creation, this business has
graduated to generating insights from the data. With smart meters and grids, Cyient is also incrementally
witnessing opportunities on the data analytics side. Some of the key clients in this segment include
Southern California Edison and TomTom. This is one of the key growth verticals for the company in the
medium term, besides communication.
Business model is different from IT services:
The traditional IT business has been going through several structural shifts at the moment. While the
overall IT spends are likely to increase, there is a shift in mix from old to new. Cloud, automation, and
overall cost pressure are having a deflationary impact on the traditional IT spends of the clients. Unlike
the IT services, the engineering services business is relatively immune to the industry headwinds and
scope for automation is also limited.
The other niche offerings on the network and GIS are also relatively immune to these structural shifts.
Indeed, with the incremental focus on smart meters/smart grids and upgradation in telecom networks to
support the data usage, the digital shift has been driving the company's business in the utility and
telecom segments.

8
 Dec 2017 NBS Report
Cyient Ltd.
Business Analysis Sector: Information Tech.

Active M&A strategy to fill the service gaps:

CYL has believed in re-investing the cash it generates in strengthening its S3 strategy. Company has done
acquisitions worth almost Rs.6bn over the past four years. Rangsons acquisition in FY15 addressed the
solutions part of the S3 strategy. The GSEA acquisition in FY16 was towards scaling-up the MRO practice
in the aerospace/defense verticals. Softential acquisition was on the operations side of the telecom
business, and the most recent Certon acquisition brings testing capabilities for avionics. Company
typically looks for 6-8 years payback on acquisitions. The focus is on integrating the service offerings in
the first year of acquisition itself.
Cyient also has a corporate venture arm that invests in start-ups in the emerging area— the company has
identified medical technology, communication technology, IoT and advanced avionics as the preferred
area of investments.
Growth momentum to continue:

FY12 FY13 FY14 FY15 FY16 FY17

Revenues (Cr.) 1553.1 1873.1 2206.4 2736.5 3102 3606.5

Growth (%) 20.6 17.8 24.0 13.4 16.3

Cyient's last three years have been volatile due to client-specific issues and low predictability on margins.
However, things have stabilised in the recent quarters and the company is well positioned for a decent
earnings growth in the medium term. Management has sounded more constructive on its business in the
9
 Dec 2017 NBS Report
Cyient Ltd.
Business Analysis Sector: Information Tech.

recent quarters and this is backed by the numbers as well. Momentum is stable to positive in the larger
verticals and top accounts too are growing at a solid pace now, with both top-5 and top-10 accounts
growing at 20%.
With momentum by its side in the key verticals and the larger accounts, we expect the company to
report close to 15% revenue CAGR over FY17-20. Acquisitions such as Certon and Blom Aerofilms will
have an incremental 2% revenue contribution to FY18 revenue. Rangsons can grow at over 20% CAGR.
Similar to the any other mid-sized Indian IT firm, Cyient has a high client concentration, and hence, any
significant momentum change in the top accounts can impact the overall momentum for the company.
Margins have enough room to improve:
Cyeint’s operating margins have enough headroom to improve from the current levels, Margins have
been compressed over the past two years broadly due to pricing pressure and change in the business
mix. Margins too deteriorated from 18%+ levels in FY14 to around 14% levels in FY13, and have further

FY12 FY13 FY14 FY15 FY16 FY17

EBITDA (Cr.) 286.7 380.5 427.2 522.63 522.5 570.6

EBITDAM (%) 17.33 18.28 18.60 14.65 13.35 13.24

PAT (Cr.) 161.48 231.2 265.44 351.1 320.1 339.8

PATM (%) 10.40 12.34 12.03 12.83 10.32 9.42

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 Dec 2017 NBS Report
Cyient Ltd.
Business Analysis Sector: Information Tech.

come down significantly to 13.2% in FY17. We believe the margins have some scope to expand from the
current levels and operate in the 14-15% range at the company level. In the services business, we expect
the EBITDA margins to slightly expand from the current 15% to 15.7% by FY19, helped by better G&A
leverage, employee pyramid correction and some recovery in Softential's margins. For the DLM
(Rangsons) business, we expect margins to recover from the current (FY17) 1% levels to 6% by FY19,
taking the overall company margins to close to 15.5%
Greater focus on cash generation:

FY12 FY13 FY14 FY15 FY16 FY17

OCF (Cr.) 123.9 140.2 227.2 361.7 278 419.9

Cash balances (Cr.) 478.20 559.40 732.10 656.50 773.90 970.60

Debtor Days 99 95 87 83 79 74

Consistent and better cash generation has been one of the focus areas of the company, through better
receivable management and prudent capex. The receivable days have come down from the peak of 99
days in FY12 to close to 70 days in FY17 for the company as a whole.
Rangsons business has been generating negative free cash flow at the moment (over Rs200 mn in 9M
FY17) and the focus is on turning it positive in the medium term. We believe that this should further
support the overall cash generation going forward.

11
 Dec 2017 NBS Report
Cyient Ltd.
Business Analysis Sector: Information Tech.

Risk – Reward attractive with good valuations:

Cyient is a unique technology company with its large exposure to faster growing engineering services
and telecom networking/utility domains. Company is structurally well placed relative to its IT Services
peers. The on-going structural shifts in the IT Services industry are relatively less relevant for company’s
businesses. The company's strong positioning in industry and positive momentum in the top accounts
and business verticals should help the company grow at a pace higher than the overall industry average.
We expect the company’s revenues and earnings to grow at 15% CAGR and 18% CAGR over the next
three years. With the improved operating performance and margins, we expect the return ratios (RoE-
16% and RoCE-22.8%) to enhance further going forward from current levels. At the CMP of Rs.556,
company is trading at 12.8x FY19E earnings which we believe is very attractive and risk reward is clearly
in favor of investors. The long term investors can buy the stock at the current market price with the
potential upside of 40-50% in the next one year.

12
 Dec 2017 NBS Report
Cyient Ltd.
Engineering services is a large market globally Sector: Information Tech.

13
 Dec 2017 NBS Report
Cyient Ltd.
India engineering services market Sector: Information Tech.

14
 Dec 2017 NBS Report
Cyient Ltd.
Leading player in engineering services—aerospace Sector: Information Tech.

15
 Dec 2017 NBS Report
Cyient Ltd.
Leading player in engineering services—Transport Sector: Information Tech.

16
 Dec 2017 NBS Report
Cyient Ltd.
Revenues Sector: Information Tech.

Revenues (Cr.) o Company’s business is geographically well

3606.5 diversified with all the regions contributing in
3102 significant proportion.
2736.5
2206.4 o During FY17, the 54% of revenue came from
1873.1
1553.1 America region, 30% from EMEA including India
and remaining 16% from Asia pacific region. We
believe that the geographical spread will be
same going forward.
FY12 FY13 FY14 FY15 FY16 FY17

REVENUES BY GEPGRAPHY (FY17)

o Company’s revenues have grown at 18.4% CAGR APAC, 16%
over the last six years from Rs.1553cr to
Rs.3606cr.
o We expect the recent momentum in its key Americas,
verticals continue. With strong growth in top EMEA &
54%
accounts and good deal pipeline we expect India, 30%
revenue to grow at 15% CAGR over the FY17-
20E period.

17
 Dec 2017 NBS Report
Cyient Ltd.
Operating Profitability Sector: Information Tech.

Emp. Cost as % of Sales o The EBITDA has grown at 14.8%CAGR over the
62.4
last six years (less than revenue growth) due to
62.0
60.9 61.2 pricing pressure and change in business mix.
o Margins too deteriorated from 18%+ levels in
58.4
FY14 to around 14% levels in FY13, and have
56.8
further come down significantly to 13.2% in
FY17. We believe the margins have some scope
to expand from the current levels and operate in
FY12 FY13 FY14 FY15 FY16 FY17
the 14-15% range at the company level by FY19.
570.6
o Employee cost as a percent of total revenue is in 600
522.63 522.5
25.00
20.31 19.36
continuously declining trend. The same has 500 18.46 19.10 20.00
380.5 427.2 16.84
decreased from 62.4% of sales in FY12 to 56.8% 400 15.82
286.7 15.00
in FY17 which indicates higher utilization and 300
10.00
improved productivity. 200
100 5.00
o CYL’s utilization (including trainees) is currently
0 0.00
at 75.9% as of 2QFY18, about 240 bps below its FY12 FY13 FY14 FY15 FY16 FY17
peak and could improve by at least 200-300bps
EBITDA (Cr.) EBITDAM (%)
over the medium term.

18
 Dec 2017 NBS Report
Cyient Ltd.
Earnings & Efficiency Metrics Sector: Information Tech.

400 14.00
12.83
350 12.34 12.03 12.00 o Company’s has share capital of Rs.56.3cr as
300 10.40 10.32
9.42
10.00 on FY17 with face value per share of Rs.5.
250
200
8.00 Due to ESOPS there is small dilution in the
150
6.00 equity capital every year.
100 4.00
o The earnings per share (eps) has grown from
50 2.00
Rs.14.5 in FY12 to Rs.30.53 in FY17. We
0 0.00
FY12 FY13 FY14 FY15 FY16 FY17 expect the EPS to grow to Rs.43.5 by FY19E.
PAT (Cr.) PATM (%)

Earnings Per Share (Rs)

o Company’s PAT has grown at 16% CAGR from 31.37 30.53

28.90
INR161.5cr in FY12 to INR339.8cr in FY17. 23.70
20.68
o With improved operational performance and
14.49
increase in margins we expect the company’s
net profit to grow at 18% CAGR over the next
three years.
FY12 FY13 FY14 FY15 FY16 FY17

19
 Dec 2017 NBS Report
Cyient Ltd.
Efficiency Metrics Sector: Information Tech.

25.56 26.30 o Debtor days is a calculation used by a

24.41 23.28
21.70 22.75 company to estimate their average collection
19.04 period. It is a financial ratio that illustrates
17.49 16.71 17.49
16.05
13.95 how well a company's accounts receivables
are being managed.
o CYL’s debtor days have come down from the
peak of 99 days in FY12 to close to 70 days in
FY12 FY13 FY14 FY15 FY16 FY17 FY17 for the company as a whole with
ROE (%) ROCE (%) improved cash collection.
Debtor Days
o Company’s return metrics are lower than typical
99 95
IT services firm due to its nature of business. 87 83 79
RoE and RoCE got affected over the last two 74

years due to acquisitions made by the company.

o We expect the return metrics to increase from
the current levels (RoE-16.05% & RoCE– 22.75%)
going forward with improved performance.
FY12 FY13 FY14 FY15 FY16 FY17

20
 Dec 2017 NBS Report
Cyient Ltd.
Cash Flows & Cash Position Sector: Information Tech.

OCF (Cr.) o Company’s cash pile is growing with better cash

419.9 flow generation. CYL has revised its dividend
361.7 policy recently to pay out up to 40% of its profits
278 in the form of dividends, up from the previous
227.2 payout policy of up to 30%.
123.9 140.2 o With net cash on hand of Rs8bn or nearly
Rs70/share, we believe CYL may continue to
increase its payout ratios marginally despite
FY12 FY13 FY14 FY15 FY16 FY17 maintaining enough cash to make acquisitions.
Cash balances (Cr.)
o Company focus was always on cash generation.
970.60
The OCF is on uptrend consistently with better
773.90
receivable management and prudent capex. 732.10
656.50
559.40
o Rangsons business has been generating negative 478.20

free cash flow at the moment and the focus is

on turning it positive in the medium term. We
believe that this should further support the
FY12 FY13 FY14 FY15 FY16 FY17
overall cash generation going forward.

21
 Dec 2017 NBS Report
Cyient Ltd.
Outlook… Sector: Information Tech.

Cyient Ltd is structurally well placed in the fast changing IT industry with large exposure to fast growing
Engineering R&D (ER&D) services. India has a relatively low share of the global outsourcing market (28%
vs. 62% for IT); and ER&D services are relatively less affected by digital/automation-related disruptions. In
addition, CYL has been inorganically expanding downstream into electronic/mechanical manufacturing and
aftermarket services to offer integrated design-build-maintenance services to clients.
After reorganization, company’s business model is looking attractive where it is focusing domain specific
capabilities. With top accounts performing well, the business momentum is solid in the telecom, utility and
medical (through small) verticals, and there is stability in the largest vertical aerospace/defense and the
third largest vertical, transportation. After several quarters of sluggish growth, the semiconductor and
energy verticals seem to have bottomed out and may no longer be a significant overhang on the
company's growth rates. Rangsons business too has witnessed the order book translating into revenue.
We expect the company’s revenues and earnings to grow at 15% CAGR and 18% CAGR over the next three
years. With the improved operating performance and margins, we expect the return ratios (RoE-16% and
RoCE-22.8%) to enhance further going forward from current levels. Company has cash per share of Rs.70
and also has dividend yield of nearly 2% per year.
At the CMP of Rs.556, company is trading at 12.8x FY19E earnings which we believe is very attractive and
risk reward is clearly in favor of investors. The long term investors can buy the stock at the current market
price with the potential upside of 40-50% in the next one year.

22
 Dec 2017 NBS Report
Cyient Ltd.
Financial Projections Sector: Information Tech.

In Cr. FY14 FY15 FY16 FY17 FY18E FY19E

Sales 2206.4 2736.5 3102 3606.5 4147.5 4894.0

Sales growth (%) 24.0 13.4 16.3 15.0 18.0

Operating Profit 410.3 400.9 414.0 477.4 613.8 758.6

Operating Profit margin (%) 18.6 14.7 13.3 13.2 14.8 15.5

Net Profit 265.4 351.1 320.1 339.8 394.0 489.4

Net Profit Margin (%) 12.0 12.8 10.3 9.4 9.5 10.0

EPS (Rs.) 23.70 31.37 28.90 30.53 35.0 43.5

Book Value (Rs.) 141.86 164.12 162.74 188.09 212.5 242.3

Cash Flows (Cr.) 227.2 361.7 278.0 419.9 453.1 538.3

Price/Earnings (x) 23.4 17.7 19.2 18.2 15.9 12.8

Price/Book Value (X) 3.9 3.4 3.4 3.0 2.6 2.3

23
 Dec 2017 NBS Report
Cyient Ltd.
Risks & Concerns Sector: Information Tech.

High client concentration:

CYL’s top10 clients account for 58% of its revenues. Thus, any client-specific issues, especially among
larger clients, that affects their ER&D spend, could have a material impact on CYL, as the contribution to
revenue from new customers is typically small for the first year. Hence, growth among existing large
clients is a key for CYL to sustain its growth trajectory.
Volatility in currency rates:
The majority of the company’s revenues comes from outside of India. The high volatility in rupee rate will
impact the topline as well as profitability of the company
Volatility in DLM:
Margins in the erstwhile Rangsons business are still trending below the levels at the time of acquisition.
Further, it is exposed the typical cyclicality in the manufacturing business. Management expects the DLM
business to break even in FY18 and grow margins to 5%-10% over the next 2-3 years. An
underperformance on either revenue growth or margins could affect our forecasts.
Changes to R&D budgets:
Some of CYL’s largest industry segments such as aerospace and communications are cyclical in nature and
their R&D budgets tend to be exposed to macroeconomic factors as well as demand and production
trends in the industrial sectors. A reduction in the R&D budgets of CYL’s existing or prospective customers
on macroeconomic or other factors could materially affect its revenue growth. For instance, an internal
technology transition and a concurrent price renegotiation at TomTom, a large client for geospatial
services, affected CYL’s revenue growth in FY16.

24
 Nov 2017 NBS Report
Sinclairs Hotels Ltd
Financials: Profit & Loss Industry: Hotels

In Cr. FY12 FY13 FY14 FY15 FY16 FY17

Net Sales 1553.1 1873.1 2206.4 2736.5 3102 3606.5
Expenditure
Employee Expense 969 1140.6 1367.7 1675.6 1812.5 2049
Cost of Materials Consumed 0 0 0 45.8 188.7 274
Excise duty on sale of goods 0 0 0 0.57 8 20.7
Travelling & Conveyance 94.8 97.9 106.6 120.3 109.4 126
Sub Contracting charges 38.1 73.2 64.9 164.8 165.4 238.2
General and Admin. Expenses 165.5 198 256.34 301.6 381.5 385
Miscellaneous Expenses 16.5 21 0.56 26.9 22.5 36.2
Total Expenditure 1283.9 1530.7 1796.1 2335.57 2688 3129.1
Operating Profit (Excl OI) 269.2 342.4 410.3 400.93 414 477.4
Other Income 17.5 38.1 16.9 121.7 108.5 93.2
Operating Profit 286.7 380.5 427.2 522.63 522.5 570.6
Depreciation 49.4 63.5 71.9 71.3 88.8 95.3
EBIT 237.3 317 355.3 451.33 433.7 475.3
Interest 0.73 0.29 1.36 5.76 16.4 17.2
Profit Before Tax, Excep, & Share 236.57 316.71 353.94 445.57 417.3 458.1
Exceptional Items 1.59 1.81 8.7 26.1
Share in profit of JV & Others 10 12.9 15.2 15.03 12.5 12.3
Profit Before Tax 244.98 327.8 369.14 460.6 421.1 444.3
Provision for Tax 83.5 96.6 103.7 109.5 101 104.5
Profit after Tax 161.48 231.2 265.44 351.1 320.1 339.8
EPS (Rs.) 14.49 20.68 23.7 31.37 28.9 30.53

25
 Nov 2017 NBS Report
Sinclairs Hotels Ltd
Financials: Balance Sheet (Liabilities) Industry: Hotels

FY12 FY13 FY14 FY15 FY16 FY17

Equity and Liabilities
Share Capital 55.7 55.8 55.98 56.2 56.2 56.3
Total Reserves 1101.7 1266.3 1532.3 1787.9 1774.3 2061
Shareholder's Funds 1157.4 1322.1 1588.28 1844.1 1830.5 2117.3
Minority Interest 12.2 6.7 2.6
Non-Current Liabilities
Long term barrowings 46.7 68.1 49.2
Long term Provisions 45.2 38.1 38.2 58.2 71.7 81.3
Deffered Tax Liabilites 3.3 4.5 5.2 5.1 17.9 30.2
Other Long term Liabilities 0 0 0.96 0.31 69.1 26.7
Total Non-Current Liabilities 48.5 42.6 44.36 110.31 226.8 187.4
Current Liabilities
Short term barrowings 3.4 0.32 5.8 81.3 114.7 115.9
Trade Paybles 109.8 121.2 174.5 275.4 309.8 402.1
Other Current Liabilities 36.7 74.9 71.9 159.8 222.1 287.6
Short term provisions 47.7 48.4 71.2 95.6 20.2 23.5
Total Current Liabilities 197.6 244.82 323.4 612.1 666.8 829.1
Total Liabilities 1403.5 1609.5 1956.04 2578.71 2730.8 3136.4

26
 Nov 2017 NBS Report
Sinclairs Hotels Ltd
Financials: Balance Sheet (Assets) Industry: Hotels

FY12 FY13 FY14 FY15 FY16 FY17

Non-Current Assets

Tangible Assets 280 296.5 286.7 315.6 302 301.7

Intangible Assets 25.8 36.2 47.5 46.5 84.4 121.5
Capital Work in Progress 19.7 22.7 7 9.6 10 26.5
Non Current Investments 24.4 37.3 52.5 67.5 80.8 103.2
Longterm Loans & Advances 73.5 91.2 106.8 135.9 18.3 20.5
Other Non-Current Assets 27.2 6.4 9.9 432.9 443.8 491.7
Total Non-Current Assets 450.6 490.3 510.4 1008 939.3 1065.1
Current Assets
Current Investments 22.2 61 40.8 33.6 79 92.5
Inventories 0 0 0 60.6 97.9 93.5
Trade Receivables 367.5 400.7 480 533.6 614.5 649.6
Cash and Bank 456 498.4 691.3 622.9 694.9 878.1
Short term loans & advances 35.3 58.7 71 136.3 217.7 266
Other Current Assets 71.9 100.4 162.5 183.4 87.5 91.6
Total Current Assets 952.9 1119.2 1445.6 1570.4 1791.5 2071.3
Total Assets 1403.5 1609.5 1956 2578.4 2730.8 3136.4

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 Nov 2017 NBS Report
Sinclairs Hotels Ltd
Financials: Key ratios Industry: Hotels

FY12 FY13 FY14 FY15 FY16 FY17

Adjusted EPS (Rs.) 14.49 20.68 23.70 31.37 28.90 30.53

Cash EPS (Rs.) 18.92 26.40 30.19 37.78 36.83 39.01
DPS(Rs) 2.50 4.50 5.00 8.00 7.00 10.50
Adjusted Book Value (Rs) 104.65 118.47 141.86 164.12 162.74 188.09
Tax Rate(%) 34.08 29.47 28.09 23.77 23.98 23.52
Dividend Pay Out Ratio(%) 17.25 21.76 21.10 25.50 24.22 34.39
EBITDA (%) 18.46 20.31 19.36 19.10 16.84 15.82
EBITM (%) 15.28 16.92 16.10 16.49 13.98 13.18
PATM (%) 10.40 12.34 12.03 12.83 10.32 9.42
ROA (%) 48.5 68.2 77.1 44.2 38.6 37.1
ROE (%) 13.95 17.49 16.71 19.04 17.49 16.05
ROCE (%) 21.70 25.56 24.41 26.30 23.28 22.75
Fixed Capital/Sales(x) 0.53 0.50 0.46 0.47 0.44 0.41
Receivable days 99 95 87 83 79 74
Payable days 31 29 35 43 42 47
Total Debt/Equity(x) 0.00 0.00 0.00 0.03 0.04 0.02
Current Ratio(x) 4.92 4.57 4.47 2.57 2.69 2.50
Quick Ratio(x) 4.28 3.92 3.75 1.94 2.08 1.95

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 Dec 2017 NBS Report
Cyient Ltd.
Disclaimer Sector: Information Tech.

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