4QFY2012 Result Update | Infrastructure

April 28, 2012

HCC
Performance Highlights
Y/E March (` cr) Net sales Operating profit Net profit
Source: Company, Angel Research

NEUTRAL
CMP Target Price
% chg (yoy) (3.9) (49.1) 3QFY12 946 113 (130) % chg (qoq) 22.2 (21.9) -

`20 -

4QFY12 1,156 88 (54)

4QFY11 1,202 173 23

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 1,231 1.7 38/16 872,013 1 17,187 5,209 HCNS.BO HCC@IN

For 4QFY2012, HCC continued its poor performance on the numbers front as expected. HCCs top line came in higher-than-expected owing to inclusion of arbitration award in the top line. Further, abysmal EBITDAM and high interest cost lead to higher-than-expected loss at the earnings level. The total outstanding order book stands at `15,336cr (excluding L1 orders of `1,713cr) with muted order inflow of `1,889cr (decline of ~44% on yoy basis) for FY2012. Owing to concerns such as slowdown in order inflow, high debt and stretched working capital, we remain Neutral on the stock. Dismal performance continues: On the top-line front, HCCs revenue declined by 3.9% yoy to `1,156cr against our estimate of `1,022cr. However, it includes ~`166cr (total arbitration award `256cr) of arbitration award excluding which it would have stood at ~`990cr. EBITDAM came in at shocking 7.6%, a dip of 680bp yoy and lower than our estimate of 11.8%. On the earnings front, HCC reported a loss of `54cr vs. profit of `23cr in 4QFY2011, against our estimate of loss of `23cr owing to lower EBITDA margin and higher interest cost. Interest cost witnessed an increase of 39.4% and 6.3% on yoy and qoq basis respectively. Outlook and valuation: On the back of poor performance in 4QFY2012 we are revising our estimates downwards for FY2013 and FY2014. The outlook for HCC remains bleak given the fact that its execution has slowed down considerably; its balance sheet is loaded with debt resulting in high interest cost. Although HCC is hoping to get approval for final debt restructuring package in next 30-35 days we believe HCC has long way to go before the company is able to turnaround itself. Hence we continue to maintain our Neutral view on the stock. Further, in the infrastructure space, we believe there are better bets than HCC such as L&T, Sadbhav and IRB.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 39.9 11.3 24.4 24.5

Abs. (%) Sensex HCC

3m

1yr

3yr 50.7 (29.1)

(0.6) (11.9) (14.3) (45.8)

Key financials (Standalone)

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

FY2011 4,093 12.3 71 (12.8) 13.2 1.2 17.3 0.8 4.7 8.3 1.1 8.4

FY2012 3,988 (2.6) (222) (413.0) 11.0 (3.7) 1.0 (16.1) 5.0 1.4 12.8

FY2013E 4,239 6.3 (109) (51.0) 11.1 (1.8) 1.2 (9.5) 4.9 1.3 11.7

FY2014E 4,522 6.7 (47) (56.5) 11.7 (0.8) 1.3 (4.7) 5.9 1.2 10.3

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

Please refer to important disclosures at the end of this report

HCC | 4QFY2012 Result Update

Exhibit 1: 4QFY2012 performance (Standalone)

Y/E March (` cr) Income from operations Total expenditure Operating profit OPM (%) Interest Depreciation Other income Nonrecurring items Profit before tax Tax PAT PAT (%) FDEPS (`)
Source: Company, Angel Research

4QFY12 1,156 1,068 88 7.6 151 40 28 (75) (21) (54) (4.7) (0.9)

4QFY11 1,202 1,030 173 14.4 108 44 25 45 23 23 1.9 0.4

% chg(yoy) (3.9) 3.7 (49.1) (680)bp 39.4 (8.5) 11.9 -

3QFY12 946 834 113 11.9 142 41 46 (166) (191) (61) (130) (13.8) (2.1)

% chg(qoq) 22.2 28.1 (21.9) (430)bp 6.3 (2.5) (38.7) -

FY2012 3,988 3,548 440 11.0 543 162 113 (166) (318) (96) (222) (5.6) (3.7)

FY2011 4,091 3,550 541 13.2 329 153 53 112 41 71 1.7 1.2

% chg(yoy) (2.5) (0.0) (18.7) (220)bp 65.1 6.2 114.9 -

Exhibit 2: 4QFY2012 Actual vs. Angel estimates

(` cr) Revenues EBITDA Interest Tax PAT
Source: Company, Angel Research

Actual 1,156 88 151 (21) (54)

Estimates 1,022 121 113 (11) (23)

Variation (%) 13.1 (27.1) 34.0 88.2 133.3

Higher-than-expected top line owing to arbitration award

On the top-line front, HCCs revenue declined by 3.9% yoy to `1,156cr against our estimate of `1,022cr. However, it includes ~`166cr (total arbitration award `256cr) of arbitration award excluding which it would have stood at ~`990cr. As per management, revenue has declined due to slow order inflow in last few quarters, execution bottlenecks, rising interest cost and payment delays by clients. Further, the infrastructure sector is facing strong headwinds which include slowdown in order activity caused by shortfall in investments in infrastructure sector and a high interest rate scenario which will keep revenue growth under check for next few quarters. The management believes that FY2013 will continue to be a challenging year for infrastructure companies and hence the company would focus on the following: 1) 2) Recovery of claims to the tune of `2,000cr Lean organisation structure and cost optimisation to control employee cost & other expenditure

April 28, 2012

HCC | 4QFY2012 Result Update

Exhibit 3: Revenue growth to be muted for next quarters

1,400 1,200 1,000 800 600 400 200 (7.2) 0.8 (6.3) (5.6) (3.9) 10.2 10.8 20.4 14.1 13.2 11.1 10.8 6.3 27.0 22.0 17.0 12.0 7.0 2.0 (3.0) (8.0) (13.0) (18.0)

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

Sales (` cr, LHS)

Growth (yoy %, RHS)

Source: Company, Angel Research

BOT Projects update

For Dhule-Palasner project, HCC has achieved provisional commercial operational date (COD) in 4QFY2012 which is four months ahead of scheduled COD - June 2012. As per the management, the initial toll collection is ahead of companys estimates. The company expects to achieve 100% completion by June 2012. With completion of this project, HCC has three operational projects under its belt. For the under construction projects (3 West Bengal projects) the company has achieved ~25% completion. As per the management, Raiganj Dalkhola project has been delayed by 3-4 months. HCC is expecting road BOT portfolio to contribute `200cr of revenue in FY2013 and `400-450cr in FY2014.

Lavasa update
The Ministry of Environment and Forest (MOEF), through its order dated 9th November, 2011 accorded environment clearance to the 1st phase of Lavasa. As per the company, Lavasa has completed booking for all residential property in its first town Dasve. Further, it has also launched new apartments in its second town Mugaon and expects things to pick up speed by October 2012. For FY2012 Lavasa posted revenue of `75.3cr and loss of `138cr and has a debt of ~`2,200cr which the company is trying to restructure.

Corporate Debt Restructuring (CDR) update

The Board of Directors in its meeting held on 9th March 2012 had decided to approach the banks through the CDR process for restructuring of HCCs debt. The CDR Empowered Group in its meeting held on 29th March 2012 admitted the Companys proposal under the CDR. The final debt restructuring proposal is under consideration and the company expects the same in next 30-35 days. HCCs proposal: 1) Two years of moratorium and eight years of repayment; 2) Nominal cut in interest rate; and 3) Additional working capital to continue business operations

April 28, 2012

4QFY12

HCC | 4QFY2012 Result Update

Lower EBITDA, high interest cost leads to higher-than-expected loss

EBITDAM came in at shocking 7.6%, a dip of 680bp yoy and lower than our estimate of 11.8%. However, going ahead the management believes that the company should be able to maintain EBITDAM in the range of 11-11.5%. Hence we have lowered our EBITDAM estimates to 11.1% and 11.7% for FY2012 and FY2013 respectively. On the earnings front, HCC reported a loss of `54cr vs. profit of `23cr in 4QFY2011, against our estimate of loss of `23cr owing to lower EBITDA margin and higher interest cost. Interest cost witnessed an increase of 39.4% and 6.3% on yoy and qoq basis respectively and stood at `151cr for the quarter. It should be noted that as per Schedule VI of Companies Act, HCC has reported gross interest expense and interest income has been added to other income.

Exhibit 4: EBITDAM take a hit

180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 7.6 15.4 18.0 14.0 11.3 13.0 11.3 12.6 12.8 12.6 13.8 13.0 16.0 11.3 11.7 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0

Exhibit 5: Lower EBITDAM and high int. cost lead to loss

80.0 60.0 40.0 20.0 0.0 5.2 2.1 0.7 1.6 4.0 2.8 10.0

1.4 0.8 1.9 0.3

5.0

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

(20.0) (40.0) (60.0) (80.0) (100.0) (120.0) (140.0)

4QFY12
(4.7)

(5.0)

(4.9)

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

(13.8)

(10.0)

(15.0) PAT (` cr, LHS) PATM (%, RHS)

EBITDA (`cr, LHS)

EBITDAM (%, RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Order book analysis

HCCs order book, as of 4QFY2012, stood at `15,336cr (3.8x FY2012 revenue) excluding L1 orders worth `1,713cr, with the company bagging orders worth ~`48cr during the quarter. For FY2012, HCC order inflow stood at `1,889cr, implying a decline of ~44% on yoy basis. The companys order book comprises hydro power (38%), water solutions (24%), transportation (24%) and nuclear and special (14%) projects. Further, as per management order inflow will remain muted going ahead as well hence we are factoring order inflow of `2,382cr and `2,731cr for FY2013 and FY2014 respectively.

April 28, 2012

HCC | 4QFY2012 Result Update

Exhibit 6: Order booking and order book trend

19,500 14,500 9,500 (4.0) (2.3) 4,500 (500) (2.0) (9.1) (5.3) 42.4 32.1 26.3 13.0 16.7 29.2 30.8 20.4 50.0 40.0 30.0 20.0 10.0 0.0 (10.0)

Exhibit 7: Segmental order book break-up (%)

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

3QFY12

2QFY11

3QFY11

4QFY11

1QFY12

Order Book (` cr, LHS) L1 Status (` cr, LHS)

Order Inflow (` cr, LHS) Order Book growth (%, RHS)

Source: Company, Angel Research

2QFY12

4QFY12

(20.0)

Source: Company, Angel Research

Outlook and valuation

Owing to HCCs poor performance in 4QFY2012, we are revising our estimates downwards for FY2013 and FY2014. On the top line front, we have lowered our estimates by 2.6 and 4.3% for FY2013 and FY2014 to `4,239cr and `4,522cr respectively. On the EBITDAM front, we have lowered our estimates by 130bp and 100bp for FY2013 and FY2014 respectively in line with managements guidance. We expect HCC to post loss of `109cr and `47cr for FY2013 and FY2014 respectively.

Exhibit 8: Change in estimates

FY2013E Earlier estimates Revenue (` cr) EBITDA margin (%) PAT (` cr)
Source: Company, Angel Research

FY2014E Variation (%) (2.6) (130)bp Earlier estimates 4,728 12.7 39 Revised estimates 4,522 11.7 (47) Variation (%) (4.3) (100)bp 4,239 11.1 (109)

Revised estimates

4,350 12.4 (16)

The outlook for HCC remains bleak given the fact that its execution has slowed down considerably; its balance sheet is loaded with debt resulting in high interest cost. Although HCC is hoping to get approval for final debt restructuring package in next 30-35 days we believe HCC has long way to go before the company is able to turnaround itself. Hence, we continue to maintain our Neutral view on the stock. Further, in the infrastructure space, we believe there are better bets than HCC such as L&T, Sadbhav and IRB.

Exhibit 9: Key assumptions

` cr Order inflow Revenue Order backlog (Y/E) Order book-to-Sales ratio (x)
Source: Company, Angel Research

FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E 7,616 3,314 14,460 4.4 6,054 3,644 16,870 4.6 3,410 4,093 16,187 4.0 3,137 3,988 15,336 3.8 2,382 4,239 13,479 3.2 2,731 4,522 11,687 2.6

April 28, 2012

HCC | 4QFY2012 Result Update

Recommendation rationale
Huge investments and elongated working capital = Balance sheet stretched: HCCs balance sheet is loaded with debt (~`4,293cr as of 4QFY2012; net D/E = 3.2 standalone level) because of its BOT/real estate investments and funding of its working capital requirements. Going ahead as well, owing to its commitments, we believe HCC will not get any respite on these fronts. Deteriorating business environment: Slowdown on the execution front, along with macro headwinds faced by the sector, has resulted in eroding the companys profitability. Further, the fact that there are no signs of reversal in sight paints a bleak outlook for the company in the medium term. Uncertainty on the Lavasa project: Lavasa received clearance for the construction and development for Phase 1 in November 2011, post one year of legal battle with MOEF, which resulted in huge losses to HCC. However, the project still remains under the cloud of uncertainty and continues to be an overhang on the stock.

April 28, 2012

HCC | 4QFY2012 Result Update

Exhibit 10: Recommendation summary

Company ABL CCCL HCC IRB Infra ITNL IVRCL JP Assoc. L&T Madhucon NCC Patel Engg Punj Lloyd Sadbhav Simplex In. CMP 214 16 20 170 189 62 73 1,220 51 51 104 53 144 234 TP Rating FY12E 302 Buy 1,522 2,145 3,988 3,176 5,178 5,057 - Neutral - Neutral 228 265 79 104 1,641 84 76 Buy Buy Buy Top line (` cr) FY13E 2,014 2,526 4,239 3,821 6,619 5,758 2,294 2,792 4,522 4,582 7,263 6,860 22.7 14.1 6.5 20.1 18.4 16.5 14.7 14.0 21.9 19.1 3.6 9.6 12.8 15.4 18.0 (1.1) (3.7) 14.2 22.4 2.0 2.9 63.5 4.4 1.4 14.9 3.5 9.3 19.6 EPS (`) 28.4 1.8 (1.8) 15.0 24.7 4.7 4.2 70.7 5.8 3.5 14.0 2.9 10.2 27.2 30.8 2.8 (0.8) 16.9 26.2 6.0 5.0 76.2 6.5 5.4 14.5 4.5 11.3 35.1 30.8 9.4 8.3 72.7 30.9 9.5 21.8 97.6 (1.1) 13.6 10.5 33.9 11.9 12.0 8.4 30.5 24.9 19.2 11.5 36.8 7.0 15.1 15.5 11.9 Adj. P/E FY13E 7.5 8.5 11.3 7.7 13.2 17.4 17.3 8.8 14.6 7.4 18.3 14.1 8.6 6.9 5.5 10.0 7.2 10.2 14.5 16.0 7.8 9.4 7.2 11.7 12.7 6.7 OB/ FY14E Sales (x) 4.2 2.7 3.8 5.2 4.4 3.3 3.8 4.3 2.7 3.6 2.7 2.9 FY14E CAGR (%) FY12E FY13E FY14E CAGR (%) FY12E

Buy 13,963 16,017 18,359 Buy 53,779 60,258 69,900 Buy Buy 1,952 4,946 3,573 2,604 5,929 2,503 5,790 3,609 2,989 6,732 2,903 7,022 3,836 3,314 7,902

- Neutral 199 316 Buy Buy

- Neutral 10,147 10,592 12,193

Source: Company, Angel Research

Exhibit 11: SOTP break up

Company ` ABL CCCL HCC IRB Infra ITNL IVRCL JP Assoc. L&T Madhucon NCC Patel Engg Punj Lloyd Sadbhav Simplex In. 128 20 (5) 136 38 54 34 1,296 33 43 55 75 102 316 Core Const. % to TP 42 100 (20) 60 14 69 32 79 39 57 51 100 51 100 ` 12 27 2 2 17 Real Estate % to TP 50 26 2 2 16 ` 174 16 88 195 50 10 16 98 Road BOT % to TP 58 70 38 74 59 13 15 49 Invst. In Subsidiaries ` 4 25 344 % to TP 2 31 21 22 19 ` 32 43 Others % to TP 12 42 28 18 Total ` 302 20 23 228 265 79 104 1,641 84 76 106 75 199 316

Source: Company, Angel Research

April 28, 2012

HCC | 4QFY2012 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 Income (% of PBT) Share in profit of Associates Recurring PBT % chg Extraordinary Expense/(Inc.) PBT (reported) Tax (% of PBT) PAT (reported) Add: Share 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 FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E 3,314 3,314 7.5 2,882 1,236 1,271 375 431 17.7 13.0 115 316 16.9 9.5 211 9 8.2 (0) 115 (4.3) 49 165 39 23.8 125 125 76 3.9 2.3 3.0 1.3 3.9 3,644 3,644 10.0 3,201 1,060 1,747 394 443 2.6 12.2 114 329 4.0 9.0 205 13 10.7 (15) 122 5.8 122 40 33.2 81 81 81 7.2 2.2 2.7 1.3 7.2 4,093 4,093 12.3 3,553 1,222 1,864 468 540 21.9 13.2 153 387 17.7 9.5 329 53 47.2 112 (8.3) 112 41 36.4 71 71 71 (12.8) 1.7 1.2 1.2 (12.8) 3,988 3,988 (2.6) 3,548 1,090 2,020 439 440 (18.5) 11.0 162 278 (28.3) 7.0 543 113 (74.5) (152) (236.2) (166) (318) (96) 30.2 (222) (222) (222) (413.0) (5.6) (3.7) (3.7) (413.0) 4,239 4,239 6.3 3,769 1,297 1,988 484 470 6.9 11.1 187 283 1.8 6.7 507 63 (38.9) (161) 5.9 (161) (52) 32.4 (109) (109) (109) (51.0) (2.6) (1.8) (1.8) (51.0) 4,522 4,522 6.7 3,991 1,370 2,105 517 531 13.0 11.7 207 324 14.6 7.2 469 75 (107.4) (70) (56.5) (70) (23) 32.4 (47) (47) (47) (56.5) (1.0) (0.8) (0.8) (56.5)

April 28, 2012

HCC | 4QFY2012 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 Goodwill Investments Current Assets Cash Loans & Advances Other Current liabilities Net Current Assets Misc. Exp. not written off Total Assets 1,683 555 1,128 46 366 3,467 154 528 2,785 1,568 1,900 3,440 1,814 664 1,150 35 409 4,624 188 863 3,573 2,043 2,581 4,174 1,987 803 1,184 26 531 6,096 194 1,395 4,508 2,677 3,419 5,160 2,161 965 1,196 62 627 6,921 118 1,812 4,990 2,871 4,049 5,934 2,370 1,153 1,217 63 740 6,801 113 2,074 4,613 3,203 3,598 5,618 2,599 1,360 1,239 64 873 6,754 101 2,178 4,476 3,487 3,267 5,444 26 979 1,005 2,322 113 3,440 30 1,502 1,517 2,515 143 4,174 61 1,462 1,522 3,471 166 5,160 61 1,191 1,236 4,532 166 5,934 61 1,018 1,063 4,388 166 5,618 61 907 952 4,325 166 5,444 FY2009 FY2010 FY2011 FY2012E FY2013E FY2014E

April 28, 2012

HCC | 4QFY2012 Result Update

Cash flow statement (Standalone)

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 (Inc.)/ Dec. in loans and adv. 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 FY2009 FY2010 FY2011 FY2012E FY2013E FY2014E 165 115 364 9 39 (133) (252) (70) 9 (313) (71) 477 (24) (47) 335 (111) 264 154 122 114 647 13 40 (465) (120) (43) 13 (150) 459 193 (28) 25 649 34 154 188 112 153 832 53 41 (661) (164) (123) 53 (234) (38) 957 (28) 10 901 5 188 194 (318) 162 706 113 (96) (879) (210) (96) 113 (193) 1,060 (64) 997 (75) 194 118 (161) 187 (447) 63 (52) 462 (210) (113) 63 (260) (143) (64) (207) (5) 118 113 (70) 207 (318) 75 (23) 402 (231) (133) 75 (288) (63) (64) (127) (13) 113 100

April 28, 2012

10

HCC | 4QFY2012 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 (%) ROCE (Pre-tax) Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) Work. cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage 2.2 5.0 1.5 1.5 5.3 1.6 2.2 6.1 1.2 3.6 10.0 0.5 4.0 9.1 0.6 4.4 8.0 0.7 2.1 271 1 153 172 2.1 318 1 186 207 2.2 360 0 229 250 1.9 434 0 278 327 1.9 413 0 286 319 1.8 366 0 298 268 9.9 10.6 7.6 8.6 9.0 6.5 8.3 8.6 4.7 5.0 5.2 (16.1) 4.9 5.0 (9.5) 5.9 6.0 (4.7) 9.5 0.8 1.1 8.1 7.7 1.9 8.7 9.0 0.7 1.0 6.0 5.7 1.8 6.7 9.5 0.6 0.9 5.5 7.0 1.8 2.7 7.0 0.7 0.7 3.6 9.5 2.9 (13.2) 6.7 0.7 0.7 3.4 7.7 3.8 (12.9) 7.2 0.7 0.8 4.0 7.3 4.2 (9.7) 3.0 1.3 3.2 0.8 16.6 2.7 1.3 3.2 0.8 25.0 1.2 1.2 3.7 0.9 25.1 (3.7) (3.7) (1.0) 0.9 20.4 (1.8) (1.8) 1.3 0.9 17.5 (0.8) (0.8) 2.6 0.9 15.7 16.2 6.4 1.2 3.9 1.0 7.9 1.0 4.4 15.1 6.3 0.8 3.9 1.0 8.0 0.9 4.6 17.3 5.5 0.8 4.4 1.1 8.4 0.9 4.0 1.0 4.4 1.4 12.8 1.0 3.8 15.7 1.2 4.4 1.3 11.7 1.0 3.2 7.7 1.3 4.4 1.2 10.3 1.0 2.6 FY2009 FY2010 FY2011 FY2012E FY2013E FY2014E

April 28, 2012

11

HCC | 4QFY2012 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angeltrade.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

HCC 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%)

April 28, 2012

12