2QFY2012 Result Update | Infrastructure

November 11, 2011

IRB Infrastructure
Performance Highlights
Y/E March (` cr) Net sales Op. profit Net profit 2QFY12 735.9 321.5 110.1 2QFY11 490.3 236.4 99.1 1QFY12 801.3 329.4 134.2 % chg (yoy) 50.1 36.0 11.1 % chg (qoq) (8.2) (2.4) (18.0)

ACCUMULATE
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 5,429 1.2 263/132 379,540 10 17,193 5,169 IRBI.BO IRB@IN

`163 `182
12 Months

Source: Company, Angel Research

For 2QFY2012, on a consolidated basis, IRB Infrastructure (IRB) reported a healthy set of numbers on all fronts, in-line with our estimates. We have marginally tweaked our estimates for FY2013 and SOTP target price to factor the removal of Goa Karnataka project (EPC `698cr) from the order book and high interest cost due to increased rates. We recommend Accumulate on the stock. Robust performance: IRB reported strong top-line growth of 50.1% yoy to `735.9cr (`490.3cr), marginally ahead of our estimate of `686.9cr. IRBs EBITDAM for the quarter came in at 43.7% (48.2%), lower than our estimate of 45.2%, due to higher than expected contribution from the relatively low-margin C&EPC segment. Interest cost come in at `141.1cr (`69.3cr), up 103.7%/20.2% yoy/qoq because of elevated debt levels (increase of `1,455cr since FY2011) and MTM loss of ~`14cr. IRB reported decent growth of 22.1%/11.1% to `147.6cr (`120.9cr) and `110.1cr (`99.1cr) on a yoy basis at the PBT/PAT levels, respectively, in line with our estimate of `147.1cr/`107.3cr, respectively. Outlook and valuation: NHAI has awarded ~3,300km of projects so far in FY2012 in the road segment; and as per IRBs management, NHAI would finish the year by awarding more than 6,000km of projects. Further, management believes that aggressive bidding has started to come down, as witnessed in some recent projects. Against this backdrop we believe IRB being one of the leaders in the road segment is going to benefit in the medium to long term. Moreover, IRB has a robust order book (excluding O&M orders and Goa Karnataka project) of `7,568cr (4.5x FY2011 C&EPC revenue), which lends high revenue visibility for the next twothree years and, hence, management has indicated that internal benchmark to bid is equity IRRs of ~18%. We have arrived at an SOTP-based target price of `182/share, which implies an upside of 11.2%. Hence, we recommend an Accumulate rating on the stock.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 74.9 6.8 13.6 4.8

Abs. (%) Sensex IRB

3m

1yr

3yr 74.7 96.1

0.8 (16.5) (0.7) (36.7)

Key financials (Consolidated)

Y/E March (` cr) Net sales % chg Adj. net profit % chg EBITDA (%) FDEPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

FY2010 1,705 71.9 385.4 119.2 46.9 11.6 14.1 2.7 20.4 13.2 4.6 9.8

FY2011 2,438 43.0 452.4 17.4 44.9 13.6 12.0 2.2 20.2 14.2 3.6 8.1

FY2012E 3,037 24.6 395.3 (12.6) 43.3 11.9 13.7 2.0 15.2 11.6 3.5 8.1

FY2013E 3,781 24.5 434.0 9.8 40.4 13.1 12.5 1.7 14.7 10.4 3.1 7.7

Shailesh Kanani
022-39357800 Ext: 6829 shailesh.kanani@angelbroking.com

Nitin Arora
022-39357800 Ext: 6842 nitin.arora@angelbroking.com

Please refer to important disclosures at the end of this report

2QFY2012 Result Update | India Research

Exhibit 1: 2QFY2012 performance (Consolidated)

Y/E March (` cr) Income from Operations Total Expenditure Operating Profit OPM (%) Interest* Depreciation Non Operating Income Nonrecurring items/Dividend from SPV's PBT Tax PAT Share of Profits/ (Losses) of Asso. Share of Profits/ (Losses) of MI PAT after MI and Share of Assoc. PAT (%) FDEPS (`)
#

2QFY12 735.9 414.4 321.5 43.7 141.1 62.9 30.1 147.6 36.7 110.9 0.8 110.1 15.0 3.3

2QFY11 490.3 253.9 236.4 48.2 69.3 54.4 8.2 120.9 19 101.8 3 99.1 20.2 3.0

% chg(yoy) 50.1 63.2 36.0 (450)bp 103.7 15.5 265.8 22.1 8.9 (70.3) 11.1 (520)bp 11.1

1QFY12 801.3 471.9 329.4 41.1 117.4 60.2 28.2 180.0 44.3 135.7 1.6 134.2 16.7 4.0

% chg(qoq) (8.2) (12.2) (2.4) 260bp 20.2 4.4 6.6 (18.0) (18.3) (48.0) (18.0) (170)bp (18.0)

1HFY12 1,537.2 886.3 650.9 42.3 258.6 123.1 58.3 327.6 80.9 246.6 2.4 244.2 15.9 7.3

1HFY11 1,002.3 516.7 465.7 46.5 135.4 108.1 29.9 #20.0 272.0 49.4 222.7 6.0 216.6 21.6 6.5

% chg(yoy) 53.4 71.5 39.8 (420)bp 90.9 13.8 95.0 20.4 64.0 10.8 12.8 (570)bp 12.8

Source: Company, Angel Research; Note: Dividend of `20cr from SPV is deducted from operating profit and has been put under extraordinary income, *Interest cost for 2QFY2012 includes ~`14cr and 1QFY2012 includes `8cr10cr MTM loss on the Mumbai Pune project

Exhibit 2: Segmental revenue break-up

Particulars Construction Segment BOT Segment Total Income Construction Segment BOT Segment EBITDA Construction Segment (%) BOT Segment (%) EBITDAM (%) Construction Segment BOT Segment Financial Expenses Construction Segment BOT Segment Depreciation & Amortization Construction Segment BOT Segment PBT Construction Segment BOT Segment PAT
Source: Company, Angel Research

2QFY12 527.5 238.5 766.0 139.9 211.6 351.6 26.5 88.8 45.9 31.9 109.2 141.1 14.0 48.8 62.9 93.9 53.6 147.6 65.5 44.5 110.1

2QFY11 295.4 203.2 498.5 71.0 173.6 244.6 24.0 85.4 49.1 6.8 62.5 69.3 11.8 42.6 54.4 52.5 68.4 120.9 37.0 64.5 101.6

% chg 78.6 17.4 53.6 97.0 21.9 43.7 250bp 340bp (320)bp 372.6 74.6 103.7 18.8 14.5 15.5 79.1 (21.6) 22.1 76.9 (31.0) 8.4

1QFY12 597.2 232.4 829.5 154.8 202.9 357.7 25.9 87.3 43.1 28.5 88.9 117.4 13.7 46.5 60.2 112.6 67.4 180.0 76.6 57.6 134.2

% chg (11.7) 2.6 (7.7) (9.6) 4.3 (1.7) 60bp 150bp 280bp 12.2 22.8 20.2 2.3 5.0 4.4 (16.6) (20.5) (18.0) (14.4) (22.7) (18.0)

1HFY12 1,124.7 470.8 1,595.5 294.7 414.5 709.2 26.2 88.0 44.5 60.4 198.1 258.6 27.7 95.4 123.1 206.5 121.0 327.6 142.1 102.1 244.2

1HFY11 625.5 406.7 1,032.2 166.2 349.3 515.6 26.6 85.9 49.9 12.6 122.8 135.4 22.8 85.3 108.1 130.8 141.2 272.1 93.0 129.4 222.4

% chg 79.8 15.8 54.6 77.3 18.7 37.6 (40)bp 210bp (540)bp 378.5 61.4 91.0 21.7 11.7 13.8 57.9 (14.3) 20.4 52.8 (21.1) 9.8

November 11, 2011

2QFY2012 Result Update | India Research

Exhibit 3: 2QFY2012 Actual vs. Angel estimates

Parameter Revenue (` cr) EBITDA margin (%) PAT (` cr)
Source: Company, Angel Research

Estimates 686.9 45.2 107.3

Actual 735.9 43.7 110.1

Variation (%) 7.1 (150)bp 2.6

Robust top-line performance, in-line with estimate

IRB reported strong top-line growth of 50.1% yoy to `735.9cr (`490.3cr), marginally ahead of our estimate of `686.9cr. This stellar performance was led by stupendous 78.6% yoy growth in the C&EPC segments revenue to `527.5cr (`295.4cr), which had a significant contribution (~50%) from the Surat Dahisar project. During the quarter, the company almost completed two projects (Surat Dahisar and Kolhapur ~95%). While Surat Dahisar project is likely to receive substantial work completion certificate from NHAI shortly, Kolhapur project has already received it and tolling is expected to commence soon. Therefore, IRB is expecting the remaining under construction projects (Jaipur Deoli, Amritsar Pathankot, Talegaon Amravati and Tumkur Chitradurga projects) to drive its revenue growth going ahead. However, we believe the C&EPC segments revenue is expected to witness a decline, as these two completed projects were contributing >50% to the segments revenue, and under construction projects are still at an nascent stage of execution (15-20% work completed) and will take some time for ramping up.

Exhibit 4: Healthy pace of execution

900.0 800.0 700.0 600.0 500.0 400.0 300.0 200.0 100.0 0.0 23.6 80.0 76.5 81.1 56.3 37.8 54.4 52.9 56.5 50.1 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 -

Exhibit 5: Segmental break up of revenue (` cr)

700.0 600.0 500.0 400.0 300.0 200.0 100.0 -

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

Net Sales (` cr, LHS)

Growth (yoy %, RHS)

2QFY12

C&EPC

BOT

Source: Company, Angel Research

Source: Company, Angel Research

November 11, 2011

2QFY12

2QFY2012 Result Update | India Research

BOT toll revenue

On the toll collection front, for 2QFY2012, Surat Dahisar, Mumbai Pune and Bharuch Surat projects witnessed 13.4%, 24.2% and 13.8% growth in toll revenue on a yoy basis, respectively. During the quarter, Bharuch Surat and Surat Dahisar projects had a toll hike of 10% each effective from July 1, 2011, and September 1, 2011, respectively. Overall growth in toll income for 2QFY2012 came in at 34.0% yoy because of the addition of the Tumkur Chitradurga project which started toll collection since 1QFY2012. On the Tumkur Chitradurga project, management does not see any major impact of the mining ban in Tumkur, and currently per day collections are worth ~`42lakhs.

BOT projects update

Goa Karnataka: During the quarter, IRB removed the Goa Karnataka project from its order book, as the project was not moving since the last few quarters. Although IRB had achieved financial closure (FC) (March 2010), execution on the same had not started due to inability of the state government to provide land. Management believes that if the land is handed over to IRB, terms of the contract will be renegotiated or else if the project is scrapped then IRB will receive a termination charge as per the provisions of the concession agreement. Ahmedabad Vadodara: IRB expects to achieve FC for this project by January 2012 and is confident of starting construction and tolling by April 2012. IRB is looking for a mix of external commercial borrowing (ECB) and rupee loan for the project to bring the blended cost of loan to 11-11.5%.

Exhibit 6: Road BOT project-wise toll revenue growth

Project Name Surat Dahisar BOT Project^ Mumbai Pune BOT Project Thane Bhiwandi Bypass 4 Lane BOT Project Thane Ghodbunder BOT Project Pune Nashik BOT Project Pune Sholapur BOT Project Nagar Karmala Tembhurni BOT Project Mohol Mandrup Kamtee BOT Project Kharpada Bridge BOT Project Bharuch Surat BOT Project
$

2QFY12 93.9 99.7 14.5 6.9 5.5 3.9 3.5 1.9 1.9 34.7 38.7 305.1
$

2QFY11 82.8 80.3 12.2 6.5 5.3 3.1 3.5 2.0 1.5 30.5 227.7

% chg 13.4 24.2 18.9 6.2 3.8 25.8 (5.0) 26.7 13.8 34.0

1QFY12 94.2 98.6 15.6 7.0 5.6 4.3 3.7 2.0 2.3 33.6 11.4 278.3

% chg(qoq) (0.3) 1.1 (7.1) (1.4) (1.8) (9.3) (5.4) (5.0) (17.4) 3.3 239.5 9.6

1HFY12 188.1 198.3 30.1 13.9 11.1 8.2 7.2 3.9 4.2 68.3 50.1 583.4
^

1HFY11 171.0 160.5 25.5 13.7 10.1 6.7 7.3 3.7 3.4 60.3 462.2

% chg(yoy) 10.0 23.6 18.0 1.5 9.9 22.4 (1.4) 5.4 23.5 13.3 26.2

Kaman Paygaon BOT Project ** Khambatki Ghat BOT Project * Tumkur Chitradurga# Total
February 20, 2009,

Source: Company, Angel Research; Note: * Concession period of Khambatki Ghat BOT project ended on May 3, 2009, November 22, 2009, # Tumkur Chitradurga Project commissioned on June 4, 2011

Surat-Dahisar commissioned on

Bharuch Surat BOT project commissioned on September 25, 2009, ** Kaman-Paygaon BOT project concession period stopped from

November 11, 2011

2QFY2012 Result Update | India Research

Lower EBITDAM and higher interest cost leads to modest earnings growth
IRBs EBITDAM came in at 43.7% (48.2%), lower than our estimate of 45.2%, due to higher than expected contribution from the relatively low-margin C&EPC segment. The construction segment posted EBITDA margin of 26.5% for the quarter, reporting a yoy jump of 250bp. Also, on the BOT front, the company reported EBITDAM of 88.8% (85.4%). Going ahead, the management has guided that the company would be able to maintain such kind of margins. Interest cost come in at `141.1cr (`69.3cr), up 103.7%/20.2% yoy/qoq because of elevated debt levels (increase of `1,455cr since FY2011) and MTM loss of ~`14cr. IRB reported decent growth of 22.1%/11.1% to `147.6cr (`120.9cr) and `110.1cr (`99.1cr) on a yoy basis at the PBT/PAT levels, respectively, in line with our estimate of `147.1cr/`107.3cr for PBT and PAT, respectively.

Exhibit 7: Higher EBITDAM to be maintained

350.0 300.0 250.0 200.0 150.0 100.0 50.0 53.5 46.2 39.6 51.2 54.5 45.3 48.3 44.8 48.2 60.0 43.9 41.0 41.1 43.7 50.0 40.0 30.0 20.0 10.0 -

Exhibit 8: PATM expected to be under pressure

160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 20.4 16.0 13.6 19.7 19.9 21.1 28.2 22.9 20.2 19.9 16.7 13.4 15.0 30.0 25.0 20.0 15.0 10.0 5.0 -

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)

EBITDAM (%, RHS)

PAT (` cr, LHS)

PATM (%, RHS)

Source: Company, Angel Research

Source: Company, Angel Research

November 11, 2011

2QFY12

2QFY2012 Result Update | India Research

Outlook and valuation

We are revising our estimates for FY2012 and FY2013. On the revenue front, we expect IRB to post revenue of `3,781cr (earlier `3,980cr) for FY2013, mainly to factor in removal of the Goa Karnataka project from the order book. We are lowering our estimate to 43.3% (earlier 44.3%) for EBITDAM for FY2012 owing to higher than expected contribution from the relatively low-margin C&EPC segment. However, for FY2013, we are factoring EBITDAM of 40.4% (earlier 38.3%) as management is confident of maintaining ~20.0% margins on the C&EPC segment while earlier we were expecting margin compression. Post accounting for higher interest cost, earnings are expected at `395.3cr (earlier `416.5cr) and `434.0cr (earlier `465.9cr) for FY2012 and FY2013, respectively.

Exhibit 9: Change in estimates

FY2012E Earlier estimates Revenues (` cr) EBITDA margin (%) PAT (` cr)
Source: Company, Angel Research

FY2013E Earlier estimates Revised estimates Variation (%) 3,980.2 38.3 465.9 3,781.2 40.4 434.0 (5.0) 210bp (6.8) (110)bp (5.1)

Revised estimates Variation (%) 3,036.9 43.3 395.3

3,036.9 44.4 416.5

NHAI has awarded ~3,300km of projects so far in FY2012 in the road segment; and as per IRBs management, NHAI would finish the year by awarding more than 6,000km of projects. Further, management believes that aggressive bidding has started to come down, as witnessed in some recent projects. Against this backdrop we believe IRB being one of the leaders in the road segment is going to benefit in the medium to long term. Moreover, IRB has a robust order book (excluding O&M orders and Goa Karnataka project) of `7,568cr (4.5x FY2011 C&EPC revenue), which lends high revenue visibility for the next twothree years and, hence, management has indicated that internal benchmark to bid is equity IRRs of ~18%. We have arrived at an SOTP-based target price of `182/share, which implies an upside of 11.2%. Hence, we recommend an Accumulate rating on the stock.

November 11, 2011

2QFY2012 Result Update | India Research

Exhibit 10: SOTP break-up

Business Segment 4 BOT Projects Kharpada Bridge BOT Project Nagar-Karmala Tembhurni BOT Project Mohol-Mandup-Kamtee BOT Project Pune-Solapur BOT Project Pune-Nashik BOT Project Mumbai-Pune BOT Project Thane Ghodbunder BOT Project Surat Dahisat BOT Project Bharuch-Surat BOT Project IRDP Kolhapur Pathankot-Amritsar Jaipur Deoli Talegaon-Amravati Tumkur-Chitradurga Ahmedabad Vadodara Total Road BOT Asset Portfolio Valuation Modern Road Makers Pvt.Ltd Land Parcel Valuation Sindhudurg Airport Project Net standalone cash adj for adv to subs Total 6 EV/EBITDA 1x Book Value 1x Book Value 3,155 125 15 696 66 Methodology NPV NPV NPV NPV NPV NPV NPV NPV NPV NPV NPV NPV NPV NPV NPV NPV ` cr 248 23 60 39 68 165 937 203 (90) 46 364 86 283 59 163 (622) IRB's stake (%) 100 100 100 100 100 100 100 100 90 100 100 100 100 100 100 100 `/share 7.5 0.7 1.8 1.2 2.0 5.0 28.2 6.1 (2.4) 1.4 10.9 2.6 8.5 1.8 4.9 (18.7) 61.4 94.9 3.7 0.7 20.9 181.6 52.3 2.0 0.4 11.5 100.0 % to Target Price 4.1 0.4 1.0 0.6 1.1 2.7 15.5 3.4 (1.3) 0.8 6.0 1.4 4.7 1.0 2.7 (10.3)

Source: Company, Angel Research; Note: Goa Karnataka has been removed from the SOTP calculation given the persistent delay in awarding of the same.

Exhibit 11: Key assumptions

Project Status KM Issuing Auth. State Concession (Yrs) Con. Start Con. End TPC (` cr) Equity (` cr) Debt (` cr) Grant (` cr) Traffic Growth (%) Toll inc (%) Int Rate (%) 4 BOT Projects Oper. 24 PWD Mah. 18.5 Jan-99 May-17 104 34 70 7% 5% Kharpada Oper. 1 MORTH Mah. 17.8 Nov-97 Aug-15 32 10 22 5% 0% NKT Oper. 60 PWD Mah. 15.0 Nov-01 Dec-16 37 15 22 4% 5% MMK Oper. 33 PWD Mah. 16.0 May-02 May-18 18 7 11 5% 5% PuneSolapur Oper. 26 MORTH Mah. 16.0 Mar-03 Mar-19 63 18 45 2% 3% PuneNashik Oper. 30 MORTH Mah. 18.0 Sep-03 Sep-21 74 6 68 7% 5% MumbaiPune Oper. 206 MSRDC Mah. 15.0 Aug-04 Aug-19 1,292 105 1,187 5% #18% 10.6% Thane Ghod Oper. 15 MSRDC Mah. 15.0 Dec-05 Dec-20 249 32 217 7% 3% BharuchSurat Oper. 65 NHAI Gujarat 15.0 Jan-07 Jan-22 1,470 198 1,272 7% 5% 10.8% Surat Dahisat Under Dev. 240 NHAI Guj./Mah 12.1 Feb-09 Mar-21 2,460 960 1,500 $ 9% 5% 10.8% IRDP Kolhapur Under Dev. 50 MSRDC Mah. 30.0 Jan-09 Jan-39 430 172 258 (27.0) 7% 5% 11.5% Goa Karnataka Under Dev. 69 NHAI Goa 30.0 Apr-13 Apr-43 821 335 300 186.3 7% 5% 10.5% PathankotAmritsar Under Dev. 102 NHAI Punjab 20.0 Apr-10 Mar-30 1,442 391 924 126.9 7% 5% 10.5% Jaipur Deoli Under Dev. 146 NHAI Rajasthan 25.0 Apr-10 Mar-35 1,705 499 900 306.0 7% 5% 10.5% TalegaonAmravati Under Dev. 67 NHAI Mah. 22.0 Apr-10 Mar-32 885 194 475 216.0 7% 5% 10.5% TumkurChitradurga Under Dev. 114 NHAI Karnataka 26.0 Jun-11 May-37 1,142 311 831 140.4 7% 5% 10.8% A'bad Baroda Under Dev. 102 NHAI Gujarat 25.0 Apr-12 Apr-37 4,920 1,420 3,500 @ 7/6/5% 5% 10.5%

Source: Company, Angel Research, Note: #Once in three years; $ IRB had shared 38% of its FY2011 revenue with NHAI and the same increases by 1% every year; @ IRB is expected to pay a sum of `309.6cr to NHAI from FY2013 and the sum increases by 5% every year

November 11, 2011

2QFY2012 Result Update | India Research

Exhibit 12: Angel EPS forecast vs. consensus

Angel forecast FY2012E FY2013E
Source: Company, Angel Research

Bloomberg consensus 14.7 16.5

Variation (%) (19.1) (20.6)

11.9 13.1

Investment arguments
Vast opportunity in the road sector IRB the prime beneficiary: IRB has some of the very high-density, strategically aligned road stretches in its gamut. These high-density stretches reduce the average payback period for a typical road BOT project. Further, given the large number of projects that are still to be bided in the road sector, the magnitude of opportunity for the players cannot be undermined and IRB being one of the market leaders is expected to gain from the same. Integrated road play: IRB has an integrated business model, wherein the internal construction arm, MRMPL, undertakes EPC work related to secured road BOT projects. While the time-bound construction work of secured road BOT projects lends revenue visibility for the construction arm, any prior completion of construction work ushers in revenue upsides from the road BOT (toll) segment. We believe via this integrated business model, the company captures the complete value chain of road development.

Concerns
Delay in order awarding: IRB being a road-focused player is dependent on NHAI for road awarding activity. Thus, any slowdown from NHAIs end would affect IRBs order inflow. However, given the huge bidding pipeline of NHAI, IRB should perform well, as it is one of the market leaders. Interest rate: BOT projects are inherently high-leverage projects. Hence, IRBs business model is vulnerable to interest rate fluctuations, and any hike in interest rates could increase the companys interest costs. Commodity risks: Road players are facing pressures from the recent price inflation in commodities such as cement and steel, which directly affect margins.

November 11, 2011

2QFY2012 Result Update | India Research

Exhibit 13: Recommendation summary

Company CCCL HCC IRB Infra IVRCL JP Assoc. Punj Lloyd NCC Sadbhav Simplex In. Patel Engg Madhucon L&T ITNL CMP 21 28 163 38 76 56 50 134 207 93 62 201 TP 17 182 60 85 75 165 299 106 260 Rating FY11 Sell Accu. Buy Accu. Buy Buy Buy Buy Buy Buy 2,199 4,093 2,438 5,651 7,850 5,074 2,209 4,889 3,499 1,816 4,049 - Neutral Top-line (` cr) FY12E 2,362 4,152 3,037 5,798 FY13E CAGR (%) 2,646 4,633 3,781 6,994 9.7 6.4 24.5 11.2 13.1 18.3 10.0 11.9 12.4 1.2 17.6 23.1 27.8 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) 11.9 4.2 3.7 1.9 3.6 9.1 20.4 17.1 5.8 64.2 24.4 2.4 0.6 13.1 6.1 5.3 3.6 5.7 9.8 29.9 16.7 6.8 74.0 25.7 (3.5) (25.8) (2.1) 1.6 (1.8) (5.2) 11.1 18.1 (4.7) 10.7 16.7 7.4 8.2 5.2 3.4 13.8 3.4 7.2 9.6 0.6 2.8 17.5 1.4 Adj. P/E 6.0 4.8 20.4 29.4 6.1 6.3 10.1 0.7 2.7 14.8 1.3 8.8 5.5 3.3 14.3 15.5 3.8 5.9 6.9 0.7 2.3 12.8 1.2 OB/ 2.7 4.0 4.2 3.3 3.4 2.8 2.9 2.7 3.5 3.2 5.2 FY11 FY12E FY13E Sales(x)

13,832 15,092 17,683 9,585 10,992 5,095 2,602 5,286 3,272 1,959 5,169 6,139 2,768 6,178 3,587 2,512 6,609

- Neutral

- Neutral

1,331 1,714

43,905 52,695 66,551

Source: Company, Angel Research

Exhibit 14: SOTP break-up

Company ` CCCL HCC IRB Infra IVRCL JP Assoc. Punj Lloyd NCC Sadbhav Simplex In. Patel Engg Madhucon L&T ITNL 17 4 116 43 31 71 46 89 299 40 59 1,332 91 Core Const. % to TP 100 9 64 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 62 8 76 16 33 143 Road BOT % to TP 37 34 11 46 13 31 55 Invst. In Subsidiaries ` 4 17 382 % to TP 2 29 22 24 18 19 12 25 ` Others % to TP 29 25 16 12 10 Total ` 17 44 182 60 85 71 75 165 299 122 106 1,714 260

Source: Company, Angel Research

November 11, 2011

2QFY2012 Result Update | India Research

Profit & loss statement (Consolidated)

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 Income (% of PBT) Share in profit of Associates 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 (`) Fully Diluted EPS (`) % chg FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E 733 733 139.7 321 159 39.2 95.3 27.4 412 148.9 56.2 101.6 310 174.8 42.3 195.8 52.0 31.2 166.5 273.4 166.5 40.0 24.0 126.5 12.6 113.9 113.9 403.9 15.5 4.2 4.2 357.3 992 992 35.4 554 305 57.0 134.5 57.6 437 6.2 44.1 114.4 323 4.1 32.6 137.7 29.6 13.8 214.9 29.1 214.9 37.8 17.6 177.2 1.3 175.8 175.8 54.4 17.7 5.3 5.3 26.6 1,705 1,705 71.9 906 450 65.4 283.8 106.4 799 82.7 46.9 181.9 617 91.0 36.2 249.4 49.0 11.7 416.7 93.8 416.7 13.3 3.2 403.4 17.9 385.4 385.4 119.2 22.6 11.6 11.6 119.2 2,438 2,438 43.0 1,344 413 88.3 721.5 121.9 1,094 36.9 44.9 225.4 869 40.7 35.6 357.2 64.5 11.2 575.8 38.2 575.8 111.7 19.4 464.1 11.7 452.4 452.4 17.4 18.6 13.6 13.6 17.3 3,037 3,037 24.6 1,723 887 185.3 484.4 167.0 1,313 20.1 43.3 328.2 985 13.4 32.4 550.5 96.7 18.2 531.5 (7.7) 531.5 126.0 23.7 405.5 10.2 395.3 395.3 (12.6) 13.0 11.9 11.9 (12.6) 3,781 3,781 24.5 2,254 1,187 234.4 623.9 208.0 1,528 16.3 40.4 455.0 1,073 8.9 28.4 587.1 116.1 19.3 601.7 13.2 601.7 156.4 26.0 445.2 11.2 434.0 434.0 9.8 11.5 13.1 13.1 9.8

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2QFY2012 Result Update | India Research

Balance sheet (Consolidated)

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 Goodwill Investments Current Assets Cash Loans & Advances Other Current liabilities Net Current Assets Misc. Exp. not written off Total Assets 2,219 334 1,885 889 198 959 522 375 62 260 699 2 3,673 2,460 444 2,016 1,455 111 1,033 415 399 218 321 712 1 4,294 4,019 551 3,467 880 45 1,148 510 438 199 482 666 1 5,060 4,132 769 3,362 2,508 55 2,038 1,200 635 203 794 1,244 1 7,171 7,397 1,098 6,299 1,442 61 2,839 1,792 791 256 811 2,028 1 9,830 7,397 1,553 5,844 3,515 67 2,502 1,199 985 318 1,161 1,341 1 10,768 332.4 1,288 1,621 28 2,021 3 3,673 332.4 1,398 1,730 60 2,486 18 4,294 332.4 1,708 2,040 78 2,915 27 5,060 332.4 2,100 2,433 90 4,626 23 7,171 332.4 2,436 2,768 90 6,949 23 9,830 332.4 2,810 3,143 90 7,512 23 10,768 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

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2QFY2012 Result Update | India Research

Cash flow statement (Consolidated)

Y/E March (` cr) Profit before tax 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 167 102 42 52 40 134 (433) (157) 52 (538) 1,090 (497) 3 63 653 250 272 522 215 114 120 30 38 142 (807) 87 30 (690) (1) 465 65 43 441 (107) 522 415 417 182 (141) 49 13 677 (984) 66 49 (869) 429 76 (66) 288 95 415 510 FY2011 FY2012E FY2013E 564 225 (112) 64 112 725 (1,741) (10) 64 (1,687) (0) 1,710 60 1 1,652 690 510 1,200 521 328 191 97 126 436 (2,198) (6) 97 (2,107) 2,323 60 2,264 592 1,200 1,792 590 455 (94) 116 156 866 (2,073) (6) 116 (1,963) 564 60 504 (593) 1,792 1,199

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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 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 (%) ROCE (Pre-tax) Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) W.cap cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage 0.9 3.6 1.6 1.2 4.7 2.3 1.2 3.0 2.5 1.4 3.1 2.4 1.9 3.9 1.8 2.0 4.1 1.8 0.3 15 39 118 78 0.4 47 5 77 87 0.5 40 5 58 48 0.6 25 5 87 15 0.5 22 5 96 17 0.5 22 6 90 18 9.3 14.3 11.4 8.1 13.8 10.5 13.2 20.3 20.4 14.2 24.4 20.2 11.6 19.6 15.2 10.4 17.0 14.7 42.3 76.0 0.3 8.1 6.6 3.3 13.4 32.6 82.4 0.3 7.6 5.0 1.1 10.3 36.2 96.8 0.4 14.2 8.9 1.2 20.4 35.6 80.6 0.5 13.3 7.6 1.3 20.6 32.4 76.3 0.4 10.7 7.3 1.6 16.4 28.4 74.0 0.4 9.0 6.0 1.9 14.8 3.4 3.4 6.5 0.0 48.8 5.3 5.3 8.7 1.5 52.1 11.6 11.6 17.1 1.5 61.4 13.6 13.6 20.4 2.0 73.2 11.9 11.9 21.8 2.0 83.3 13.1 13.1 26.7 2.0 94.5 47.7 25.2 3.3 0.0 9.5 16.8 1.9 30.9 18.7 3.1 0.9 7.6 17.1 1.7 14.1 9.6 2.7 0.9 4.6 9.8 1.5 12.0 8.0 2.2 1.2 3.6 8.1 1.2 13.7 7.5 2.0 1.2 3.5 8.1 1.1 12.5 6.1 1.7 1.2 3.1 7.7 1.1 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

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2QFY2012 Result Update | India Research

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

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

IRB Infra 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%)

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