initiating coverage plastic products nilkamal ltd.€¦ · · 2017-10-11annum initiating coverage...

Incorporated in 1985, Nilkamal is an industry pioneer in the manufacturing business of moulded furniture and material handling products with diversified product profile across various segments along with a strong customer base including household customers, industrial customers and retail buyers. It also has presence in the retail business of lifestyle furniture, furnishings and accessories under its brand '@home' & Nilkamal Mattresses.

The Indian Plastics industry provides immense growth potential in the coming years, given the low per capita consumption, anticipated revival in economy, shifting consumer preference towards branded plastic products, rising youth population and increasing usage of plastics by manufacturing segments. Various Government initiatives such as Make in India campaign, Digital India, Swachh Bharat Abhiyan, Skill India, etc are opening up opportunities for more accelerated growth in this industry. By 2020, plastics consumption in India is expected to increase from the current 12mn MMTPA to ~20mn MMTPA.

Nilkamal holds leadership position in Material Handling and Moulded furniture segments (key revenue growth drivers). Strong brand recall, diversified product offerings and improving reach puts the company in an advantageous position to leverage its strength and capitalize on the available opportunities in the plastics industry. Economic revival is likely to result in faster growth across all its segments of plastics. Post the integration with furniture vertical, the new business of Mattress has witnessed improved performance and we expect this segment to catch up pace.

As regards the retail division '@home', various steps are being taken by the company to re-strategize its business model. We expect the division to witness improved growth over the next three years, aided by revival in consumer spending, GST implementation & company initiatives (by closing down the non-profitable stores). Improving revenue per sq ft, driving growth in new categories, increasing brand reach in E-commerce channel are likely to remain key focus areas, which will drive the growth.

Led by demand uptick and company's efforts towards expanding its reach, product offerings and sustained investments in brand building, we expect Nilkamal's consolidated revenue to grow at a faster pace by 9.3% CAGR over FY17-20E. The growth would be largely volume led and is likely to be driven across segments of Plastics and Retail division. The negative impact of GST transition on the volume growth is likely to be short lived. While the operating margins could remain under pressure in FY18E due to higher input prices, we expect a healthy rebound from FY19E onwards, aided by operating leverage and stability in the crude oil prices. Market leadership, leverage free balance sheet, healthy cash flows would provide valuation comfort. We recommend a BUY on the stock with target price of Rs 2,097 with a 12 to 15 months perspective.

Financial Summary

Religare Investment Call

October 11, 2017

Plastic Products

CMP (Rs)

Target Price (Rs)

Potential Upside

Sensex

Nifty

Key Stock data

BSE Code

NSE Code

Bloomberg

Shares o/s, Cr (FV 10)

Market Cap (Rs Cr)

3M Avg Volume

52 week H/L

Shareholding Pattern

(%)

Promoter

FII

DII

Others

1 Year relative price performance

1,610

2,097

30.2%

31,924

10,017

523385

NILKAMAL

NILK:IN

1.5

2,399

57,294

2,275/1,210

Dec-16

64.1

6.1

1.5

28.3

Mar-17

64.1

4.9

5.4

25.6

Jun-17

64.1

4.0

7.3

24.6

Research Analyst

Mehernosh Panthaki, CA [email protected]

Investment rationale

Outlook & Valuation

Initiating Coverage Nilkamal Ltd.

Strong beneficiary of economic revival BUY

Particulars, Rs cr FY17 FY18E FY19E

Net Revenue

EBITDA

EBITDAM (%)

APAT

APATM (%)

EPS (Rs)

ROE (%)

P/E (x)

2,024.0

231.7

11.4

122.5

6.1

82.2

17.9

19.6

2,165.8

223.1

10.3

116.9

5.4

78.5

14.7

20.5

2,382.4

262.1

11.0

147.5

6.2

99.0

16.0

16.3

2,644.4

298.8

11.3

173.6

6.6

116.5

16.2

13.8Source : Company; RSL Research

FY20E

80

100

120

140

160

180

Oct

-16

No

v-1

6

Dec

-16

Jan

-17

Feb

-17

Mar

-17

Ap

r-1

7

May

-17

Jun

-17

Jul-

17

Au

g-1

7

Sep

-17

Oct

-17

Nilkamal Ni�y

Initiating Coverage Plastic Products


Nilkamal Ltd.

Investment rationale

Strong presence in the moulded plastic furniture and material handling segment

Nilkamal is an industry pioneer in the manufacturing business of moulded furniture and material handling products. The company holds a leadership position in the moulded furniture segment (36.5% contribution to total revenue), commanding market share of ~32%, more than double the share of its closest competitor 'Supreme Industries'. The products under this segment (for usage across homes, schools, offices, etc) include chairs, tables, stools, racks, trolleys, corner cabinets, ready-to-assemble furniture, school benches, planters, etc. The company's ready furniture vertical currently offers a range of 450 products with a combination of metal chairs/selected office chairs manufactured in its Hosur plant and traded products across all segments of home & office furniture segments like bedroom, living, desking and storage, dining, etc. The company has a strong distribution network of nearly 980 channel partners, over 15,000 dealers on a pan India basis and 40+ depots. Further, it has 15 “Nilkamal Home Ideas” stores ranging from 4,000-8,000 sq. ft. in various 2-3 tier cities and 33 Dealer Owned Dealer Operated stores across various geographies, which showcase and sell both its Ready Furniture Products & Mattress (new business, which the company ventured in 2012, now integrated in furniture vertical).

With 39 regional offices, 41 warehouses and a sales strength of 400+, the company is a leading player in material handling segment (51.4% revenue share). It offers a wide range of products like crates, pallets, material handling equipments, shelving and racking solutions, ice boxes, fish tubs, vaccine carriers, etc, which find usage across industries like Automobile, Pharmaceutical, Engineering, Logistics, Textiles, Electronics, Food & Beverages, Agriculture and Hospitality.

Bright industry prospects, wide reach and diversified offerings augurs well for Nilkamal

Plastics industry offers immense growth potential

As per FICCI (Federation of Indian Chambers of Commerce and Industry), the per capita consumption of plastics in India is about 11kg per person, which is significantly lower compared to developed countries like US (109kg) and Europe (65kg), emerging markets like China (38kg) & Brazil (32kg) and global average (28kg). The per capita consumption in India is low, largely due to low penetration levels of plastic products in the Indian market, especially the rural segment.

However, the scenario is changing rapidly and we expect a meaningful improvement in per capita plastic consumption going forward. New technologies are being developed and usage of polymers is increasing in newer areas like construction, agriculture, health and others thereby increasing the demand for plastic products. Due to increasing domestic consumption and high potential, India is emerging as one of the focus destinations for plastics and downstream players worldwide. Anticipated revival in economy, shifting consumer preferences (towards branded plastic products), rising youth population (majority including middle income group) and increasing usage of plastics by manufacturing segments provides immense growth potential for the Indian plastic industry in the coming years. Various Government initiatives such as Make in India campaign, Digital India, Swachh Bharat Abhiyan, Skill India etc are opening up opportunities for even more accelerated growth in this industry. While the transition into GST could put near term pressures on the volume growth, we expect this reform of the Government to benefit the organized plastic industry in a big way. By 2020, plastics consumption in India is expected to increase from the current 12mn metric tonnes per annum (MMTPA) to ~20 MMTPA. Further, the export of finished plastic products is estimated to double to $ 15bn in the next 5 years (Source: Plastindia Foundation).

Nilkamal commands market leadership with ~32% share in the moulded furniture segment

With strong network, the company also holds leadership position in the material handling segment

L o w p e r c a p i t a c o n s u m p t i o n , government init iatives provides significant growth potential for Indian plastics industry

Nilkamal placed in an advantageous position to capitalize on available opportunities

The Plastics division of Nilkamal is a key revenue contributor, accounting for 89.3% of the total consolidated revenues. Within this, Moulded Furniture (41% revenue share) and Material Handling segments (57% share) together contribute nearly 98%. Despite domestic & global challenges, the plastics division has witnessed a steady CAGR growth of 6.5% over FY13-17, driven by good performance from both its segments. Nilkamal's sustained brand building efforts, widening distribution reach across geographies and diversified & quality offerings has enabled the company to create a strong reputation with its customers and maintain its leadership position in plastics business. Its new business of manufacturing Mattress (revenue share of 2% within plastics division) has also witnessed improved performance (though on a low base), post its integration with the furniture vertical in FY16.

Given the strong growth potential of plastics industry, anticipated revival in demand, company's market leadership, strong brand recall and its steady efforts towards enhancing its reach and offerings across segments, Nilkamal is placed in the best position to leverage its strength and drive the growth of its plastics business at a fa ster pace.

Initiating Coverage


Market leadership, widening reach, enhanced product offerings places Nilkamal in an advantageous position

Segments of plastics division

Company's efforts which could drive growth

Material Handling

The company's focus is on tapping the growing industrial segments, scaling up infrastructure and operations, and investing in new products and services.

The Company continues to invest in more solutions for the Swachh Bharat Abhiyan initiative by the Government and isready for new initiatives like Make - in - India, Invest-in-India, Start Up India & E-biz Mission Mode. These initiatives will facilitate investments in warehousing & manufacturing, which would strongly benefit its Material Handling segment.

Moulded Furniture

The company introduced 9 new models in FY17, largely in thepremium range to provide innovative designs. It has alsoplanned an additional investment for 10 new products in theMonoblock and value added segments like plasticstorage/non-monoblock category in FY18.

The Furniture industry (~85% catered by unorganized sector)is witnessing an accelerated shift towards organized ReadyFurniture sector due to better aesthetics, design, quality, etc.This augurs well for Nilkamal, which is fast expanding itsdistribution network (40% CAGR over FY14 - 17) and productofferings (launched 25 to 30 products in FY17) in this vertical.

Mattress Post the integration with furniture vertical, the mattressbusiness has witnessed a marked improvement in growth(44% in FY17 compared to CAGR of 7% over FY13 - 16). Presently the Company has manufacturing facilities in South& East and has plans to expand its foot print throughinvestments in production units in North & West in FY18.

The organized Indian Mattress industry, currently sized~Rs 32bn [dominated by a few major players such as Kurlon, Sleepwell (Sheela group), Springwel, Peps Ind & Coirfoam], is estimated to grow by 12-15% going forward. With Nilkamal's increasing focus on improving reach, enhanced product offerings, increasing awareness for Nilkamal Mattress brand and commencement of production of bubble guard in Q1FY18, we expect the growth rate in this vertical to accelerate. The company targets Rs 200cr revenue from this vertical within the next three years.

Plastic Products Nilkamal Ltd.

We estimate Nilkamal's plastics division to grow by 9.2% CAGR over FY17-20E (largely volume led: at ~7.7% CAGR), likely to be driven by strong growth across all its segments, namely 'Material Handling, Moulded Furniture and Mattress'. While GST transition could impact the volumes in H1FY18, we expect a meaningful improvement from H2FY18E.

@home to witness improved performance

Nilkamal's retail division, '@home', has 17 large format stores, one Go-to-Market (GTM) store and 8 shop-in-shop stores (Shoppers Stop), spread across 14 cities, covering a retail space of over 2.87 lakh sq. ft. The furniture is displayed in 'actual room settings' viz. the furniture with furnishings & accessories are displayed in actual room layouts having different themes. The settings on display are for living, dining & bedroom. The division contributes 10.7% to the total revenues of Nilkamal and has grown by 3.4% CAGR over FY13-17. The slower growth can be attributed to macro challenges and steps being taken by the company to re-strategize its business.

Standardization of assortment, pricing & planogram related to household category and implementation of Auto Replenishment System & supply chain management has started to yield positive benefits. The company recorded same store sales growth of 5% in FY17 with good growth in channels like Shop-in-shop, E-commerce and Customized furniture. The company has successfully forayed into customised kitchens, wall units and wardrobes. A fall of 1.2% in the overall sales in FY17 was largely due to closing of non-profitable stores.

Going forward, improving the sales per sq. ft. and ensuring conversions by bridging the inventory gap using digital mediums and various loyalty programs, driving the growth in new categories, increasing the brand reach geographically in E-commerce channel would be the key focus area. While growing competition in the organized sector could continue to pose challenges, we expect @home to deliver better performance on the revenue and profit front in the coming years, led by improvement in consumer spending, GST implementation (to benefit the organized retail) and company initiatives. We estimate the retail division to grow by 9.2% CAGR over FY17-20E.

Initiating Coverage


Plastics division is estimated to grow by 9.2% CAGR over FY17-20E, likely to be driven by strong growth across all its segments

@home has 17 large format stores spread across 14 cities covering a retail space of over 2.87 lakh sq. ft.

Growth to improve over FY17-20E, aided by revival in consumer spending, GST implementation & company initiatives

Improving revenue per sq ft, driving growth in new categories, increasing brand reach to remain key focus area

1,8

40

.3

1,9

51

.8

2,0

83

.6

2,2

91

.9

2,5

44

.0

5.0 6.1

6.8

10.0 11.0

0

2

4

6

8

10

12

0

500

1,000

1,500

2,000

2,500

3,000

FY16 FY17 FY18E FY19E FY20E

Revenues (Rs cr) - LHS Growth (%) - RHS

Plastics division to witness improved growth

Source : Company; RSL Research

Volumes to grow by 7.7% CAGR over FY17-20E


3.0

8.0

5.0

8.0

10.0

0

2

4

6

8

10

12

FY16 FY17 FY18E FY19E FY20E

Plas�c Division Volume Growth (%)

Growth to improve over FY17-20E


Average Revenue per Sq Ft / month

20

3.9

21

8.8

21

7.5

23

5.8

23

2.9

25

2.4

27

5.4

30

3.1

6.6 7.3

(0.6)

8.4

(1.2)

8.4 9.1

10.1

-3

0

3

6

9

12

15

50

100

150

200

250

300

350

FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E

Revenues (Rs cr) - LHS Growth (%) - RHS

50

5.8

57

8.9

55

2.6

79

8.6

67

6.4

3.4 3.2 3.3

2.5

2.9

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0

200

400

600

800

1,000

FY13 FY14 FY15 FY16 FY17

Avg Rev per Sq. Ft. (Rs) - LHS Retail Space (Lac Sq Ft) - RHS

Revenue to grow by 9.3% CAGR over FY17-20E, margins to revive from FY19E

Led by revival in demand and company's efforts towards expanding its reach, product offerings and sustained investments in brand building, we expect Nilkamal's consolidated revenue to grow at a faster pace by 9.3% CAGR over FY17-20E (compared to 4.4% CAGR over FY13-17). The growth would be largely volume led and is likely to be driven across segments of Plastics and Lifestyle Furniture, Furnishings & Accessories division. While GST transition could result in near term pressure on the volume growth, we expect a meaningful improvement from H2FY18E.

While the operating margins could remain under pressure in FY18E (estimated to decline by 115bps to 10.3%) due to higher input prices (Polyethylene and Polypropylene, derivatives of crude oil, which is inching up) and lower volume growth anticipated in H1FY18, we expect a healthy rebound in margins in FY19E (+70bps) & FY20E (+30bps), aided by operating leverage and expected stability in the crude oil prices (our assumption). Even if crude oil prices remain high, we feel Nilkamal would be able to pass on the cost inflation comfortably to its customers, given its strong brand recall, innovative offerings and anticipated revival in demand. Higher operating margins, along with sharp decline expected in the interest cost (as we expect the company to be debt free by FY20E) will boost the PAT growth (12.3% CAGR over FY17-20E) & PAT margins (6.6% by FY20E).

Initiating Coverage


Consolidated revenue is likely to grow by 9.3% CAGR over FY17-20E, largely volume led

Operating leverage & stability in the input prices to drive the margins in FY19E & FY20E

Decline in the interest cost would support the PAT growth

Revenues to grow by 9.3% CAGR over FY17-20E


EBITDA margins to revive from FY19E


Lower interest cost to boost the PAT margins


1,7

41

.8

1,8

94

.6

1,9

26

.5

2,0

24

.0

2,1

65

.8

2,3

82

.4

2,6

44

.4

2.3

8.8

1.7

5.1

7.0

10.0

11.0

1

3

5

7

9

11

13

1,000

1,300

1,600

1,900

2,200

2,500

2,800

FY1

4

FY1

5

FY1

6

FY1

7

FY1

8E

FY1

9E

FY2

0E

Net Revenue (Rs cr) - LHS Growth (%) - RHS

15

7.1

15

3.6

23

0.0

23

1.7

22

3.1

26

2.1

29

8.8

9.0 8.1

11.9 11.4 10.3

11.0 11.3

4

6

8

10

12

14

16

50

100

150

200

250

300

350

FY1

4

FY1

5

FY1

6

FY1

7

FY1

8E

FY1

9E

FY2

0E

EBITDA (Rs cr) - LHS EBITDA margins (%) - RHS

47

.1

50

.5

11

4.1

12

2.5

11

6.9

14

7.5

17

3.6

2.7 2.7

5.9 6.1 5.4

6.2 6.6

2

3

4

5

6

7

8

20

50

80

110

140

170

200

FY1

4

FY1

5

FY1

6

FY1

7

FY1

8E

FY1

9E

FY2

0E

PAT (Rs cr) - LHS PAT margins (%) - RHS

Strengthening Balance Sheet

Nilkamal has a leverage free balance sheet with D/E of just 0.1x (in FY17). With healthy cash flows, the company has managed to reduce its borrowings significantly from Rs 3.3bn in FY12 to Rs 0.8bn in FY17, thus resulting in sharp decline in D/E ratio from 0.8x in Fy12.

With steady growth in profits, we expect the cash flow generation to remain robust over the next three years. This would enable the company to meet its future CAPEX / working capital requirements through internal accruals and reduce its borrowings, thus resulting in further decline in D/E. We expect the company to become debt free by FY20E. With improving profits, the return ratios are also expected to remain healthy. Further, surplus cash could be utilized to pay higher dividends going forward.

Initiating Coverage


Healthy cash flows has helped Nilkamal reduce its D/E from 0.8x in FY12 to 0.1x in FY17

We expect the company to become debt free by FY20E

D/E to decline further


ROCE to remain healthy


0.80 0.82

0.67

0.39

0.17 0.11 0.07

0.02 -0.0

0.2

0.4

0.6

0.8

1.0

FY1

2

FY1

3

FY1

4

FY1

5

FY1

6

FY1

7

FY1

8E

FY1

9E

FY2

0E

Debt-Equity (x)

0

5

10

15

20

25

FY1

2

FY1

3

FY1

4

FY1

5

FY1

6

FY1

7

FY1

8E

FY1

9E

FY2

0E

ROCE (%)

Initiating Coverage


Incorporated in 1985, Nilkamal is an industry pioneer in the manufacturing business of moulded furniture and material handling products with diversified product profile across various segments along with a diversified customer base including household customers, industrial customers and retail buyers. It also has presence in the retail business of lifestyle furniture, furnishings and accessories under its brand '@home' & Nilkamal Mattresses.

The company operates under two business segments viz; i) Plastics and ii) Lifestyle Furniture, furnishings and accessories. Plastics division contributes 89.3% to the total revenues (consolidated) and includes verticals like Material Handling, Moulded Furniture and Mattresses (which got integrated into the furniture vertical in FY16). Material handling accounts for ~57% of the total revenues of Plastics division while Moulded Furniture contributes ~41% and balance 2% comes from Mattress business (new business, which the company ventured in 2012). The retail division of the company '@home' derives 10.7% revenues.

With manufacturing facilities located at Hosur (Tamil Nadu), Barjora and Hooghly (West Bengal), Kharadapada and Vasona (Dadra & Nagar Haveli), Jammu, Noida (UP), Sinnar (Maharashtra) and in Pudducherry, the company has a strong network of nearly 980 channel partners, over 15,000 dealers on a pan India basis, 40+ depots and nearly 300+ sales staff. Further, the company has 15 “Nilkamal Home Ideas” stores ranging from 4,000-8,000 sq.ft in various 2-3 tier cities. Besides, it has also commissioned 33 DODOs (Dealer Owned Dealer Operated) stores across various geographies. These stores showcase and sell both its Ready Furniture products & Mattress. Its retail division, @home has 17 large format stores, one Go-to-Market (GTM) store and 8 shop-in-shop stores (Shoppers Stop), spread across 14 cities, covering a retail space of over 2.87 lakh sq. ft. and continues to be a trusted brand among the consumers. The company has a strong domestic presence with ~93% of its revenues from India, while the balance 7% comes from overseas markets (including exports from India). From developed and sophisticated markets of North America and Australia, to developing markets in Africa, South America and GCC, Nilkamal products are available in over 30 countries.

The company is a leader in the Moulded Furniture business in India, commanding market share of ~32%, more than double its closest competitor [other notable players engaged in similar business include Supreme Industries (2nd largest), Wim Plast, etc]. The Ready furniture vertical offers a range of 450 products with a combination of metal chairs/selected office chairs manufactured in Hosur plant and traded products across all segments of Home & Office Furniture Segments like Bedroom, Living, Desking and Storage, Dining, etc. Under the material handling segment, Nilkamal, with 39 regional offices, 41 warehouses and a sales strength of 400+, offers a comprehensive product mix, from crates to pallets to material handling equipment to shelving and racking solutions and continues to hold the leadership position in this segment (Supreme Industries and Wim Plast are other players). Nilkamal serves more than 30,000 customers across India in this segment.

Plastics division is a major revenue contributor, accounting for 89.3% of total revenues

The company has a strong network of 980 channel partners & 15,000 dealers on a pan India basis

The company holds leadership position in Material Handling and Moulded Furniture segments

Company background

Segmental Revenue Breakup (Consolidated)


Revenue Break – Plastics Division


Plas�cs

89.3%

Lifestyle Furniture, Furnishings &Accessories

10.7%

Material

Handling

57%

Moulded

Furniture

41%

Ma�ress

2%

Initiating Coverage


The company currently has three foreign subsidiaries [two in Sri Lanka (76% stake) and one wholly owned subsidiary in UAE], namely, i) Nilkamal Eswaran Plastics Pvt Ltd (into manufacturing of moulded furniture), ii) Nilkamal Eswaran Marketing Pvt Ltd, iii) Nilkamal Crates and Bins FZE (manufacturing of plastic containers, pallets, waste bins, ice boxes, etc) and one Indian subsidiary Nilkamal Foundation (98% stake; incorporated in FY17 for carrying out CSR activities). Further, it has two 50:50 JVs, viz i) Nilkamal Bito Storage System Pvt Ltd (Indo-German JV, engaged in metal storage systems) and ii) Cambro Nilkamal Pvt Ltd (Indo-US JV, engaged in manufacturing of hospitality products).

Polyethylene (PE) and Polypropylene (PP), derivatives of crude oil, are key inputs, which account for ~55% of the total material cost. A sharp rise in the crude oil prices could result in higher prices of PE & PP and impact the company's margins in the event of its inability to pass on the input cost inflation to its customers.

Slowdown in economic growth could lower the consumer spending and impact the demand for company's products in both segments viz; plastics and @home, resulting in subdued volume growth. Further, sluggish trend in real estate purchases could impact the performance of the retail division.

Increasing competition from the organized players could result in pricing pressure and impact the overall operational performance.

The product offer ings are wel l d i v e r s i fi e d a c r o s s i t s b u s i n e s s segments

Key risks include: i) sharp spike in crude oil prices, ii) economic slowdown and iii) increasing competition

Nilkamal's product offerings across segments

Business segment

Product / Service offerings

Moulded Furniture

,

Living room Furniture (sofa sets, sofa cum beds, centre tables, TVtrolleys), Storage Solution (cabinets, drawers), Bedroom Furniture(wardrobe, bedroom set), Dining Table Set Home Utility Furniture(shoe rack, compute tables, cloth dryers), Office Furniture (chairs,tables, corporate sofas, personal lockers, storage cabinets) PlasticFurniture (racks & trolleys, planters, stools, kids furniture), SchoolFurniture mattresses (coir, spring & foam), pillows and differenttypes of chairs (armless, high back, mid back, crystal).

Material Handling

Crates, pallets, metal shelving & racking (various storage systems),material handling equipments (pallet truck, order picker, stacker, forklift, tow tractors, vacuum lifters, electric cart, etc), ice boxes, fishtubs, vaccine carriers, road safety products (barricade & road fences,hexagonal safety cones, road light barriers), waste management tools(free stand, wheeled & compactor compatible bins), cold storagesolution (fruit ripening) and hospitality products (containers, tray &dish cart, ice caddies, food pans, pitchers, etc).

Retail (@home)

Displays furniture in ‘actual room settings’ viz. the furniture withfurnishings & accessories are displayed in actual room layouts havingdifferent themes. The settings on display are for living room, dining &bedroom.

Risks & Concerns


Net Revenue

Growth (%)

Material Expenses

Employee Expenses

Other Operating Expenses

EBITDA

EBITDAM (%)

EBITDA Growth (%)

Depreciation

EBIT

Other Income

Interest

PBT

Tax

Minority Interest

Share of Profit/(Loss) in

Associated Company

RPAT

RPAT Growth (%)

EO items (net of tax)

APAT

APAT Growth (%)

EPS

EPS Growth (%)

Particulars, Rs cr FY18EE FY19E

FY17


2,024.0

5.1

1,159.5

154.6

478.2

231.7

11.4

0.7

50.5

181.1

3.3

11.7

172.8

53.6

1.8

5.2

122.5

7.4

-

122.5

7.4

82.2

7.4

2,382.4

10.0

1,374.6

181.1

564.6

262.1

11.0

17.5

55.0

207.0

6.8

3.2

210.6

67.4

2.1

6.4

147.5

26.2

-

147.5

26.2

99.0

26.2

2,644.4

11.0

1,520.5

201.0

624.1

298.8

11.3

14.0

60.2

238.6

9.2

-

247.8

79.3

2.5

7.6

173.6

17.7

-

173.6

17.7

116.5

17.7

2,165.8

7.0

1,254.0

166.8

522.0

223.1

10.3

(3.7)

51.7

171.4

5.3

8.9

167.7

53.7

1.7

4.6

116.9

(4.6)

-

116.9

(4.6)

78.5

(4.6)

P&L Account - Consolidated


Initiating Coverage

FY20E

SOURCES OF FUNDS

Share Capital

Reserves

Total Shareholders' Funds

Minority Interest

Total Debt

Net Deferred Taxes

Long Term Provisions & Others

TOTAL SOURCES OF FUNDS

APPLICATION OF FUNDS

Net Block

CWIP

Investments

LT Loans & Advances and

Others

Total Non-Current Assets

Inventories

Trade Receivables

Cash & Equivalents

ST Loans & Advances and Other

Current Assets

Total Current Assets

Trade Payables

Other Current Liabilities &

Provisions

Total Current Liabilities

Net current Assets

TOTAL APPLICATION OF FUNDS


FY17P


14.9

835.9

850.8

8.9

62.9

6.5

59.4

988.5

289.0

32.0

68.4

53.5

442.9

367.9

322.2

19.2

51.0

760.3

124.6

90.1

214.7

545.6

988.5

14.9

974.4

989.3

11.1

22.9

6.5

62.7

1,092.6

294.0

32.0

74.4

58.9

459.3

401.4

354.4

38.4

56.1

850.3

124.0

93.0

217.0

633.3

1,092.6

14.9

727.0

741.9

7.2

82.9

6.5

56.4

895.0

270.7

32.0

41.5

50.0

394.3

336.1

301.0

14.2

47.7

698.9

111.4

86.8

198.2

500.7

895.0

Balance sheet - Consolidated

14.9

1,137.3

1,152.2

13.6

-

6.5

64.9

1,237.2

293.8

32.0

81.6

70.7

478.0

441.9

393.4

86.1

64.2

985.7

130.4

96.1

226.5

759.2

1,237.2

FY20E



Initiating Coverage

Reported PBT

Non-operating & EO items

Interest Expenses

Depreciation

Working Capital Change

Tax Paid

OPERATING CASH FLOW ( a )

Capex

Free Cash Flow

Investments

Non-operating income

Others

INVESTING CASH FLOW ( b )

Debt Issuance / (Repaid)

Interest Expenses

FCFE

Dividend

Others

FINANCING CASH FLOW ( c )

NET CASH FLOW (a+b+c)

Closing Cash


FY17P


172.8

2.3

11.7

50.5

(77.1)

53.6

102.0

(71.1)

30.9

2.0

2.3

5.5

(61.4)

(22.3)

(11.7)

(3.1)

(7.2)

(1.1)

(42.2)

(1.6)

14.2

210.6

4.6

3.2

55.0

(68.5)

67.4

128.3

(60.0)

68.3

(6.0)

4.6

(5.4)

(66.8)

(40.0)

(3.2)

25.1

(8.9)

9.4

(42.8)

18.8

38.4

247.8

6.3

-

60.2

(78.2)

79.3

144.3

(60.0)

84.3

(7.2)

6.3

(11.8)

(72.7)

(22.9)

-

61.4

(10.7)

10.2

(23.4)

48.1

86.1

167.7

3.6

8.9

51.7

(39.9)

53.7

131.2

(70.0)

61.2

(26.8)

3.6

(3.5)

(96.8)

(20.0)

(8.9)

32.3

(8.0)

8.0

(28.9)

5.5

19.2

Cash Flow statement - Consolidated

FY20E

PROFITABILITY (%)

GPM

EBITDAM

APATM

RoE

RoCE

EFFICIENCY

Tax Rate (%)

Fixed Asset Turnover (x)

Cash Conversion Cycle (days)

Debt/Equity (x)

PER SHARE DATA

EPS

CEPS

BV

Dividend

VALUATION

P/E (x)

P/BV (x)

EV/EBITDA (x)

Dividend Yield (%)


FY17P


42.7

11.4

6.1

17.9

23.3

31.0

5.5

95.0

0.1

82.2

116.1

497.9

4.0

19.6

3.2

10.6

0.2

42.3

11.0

6.2

16.0

21.5

32.0

4.8

97.0

0.0

99.0

135.9

664.0

5.0

16.3

2.4

8.8

0.3

42.5

11.3

6.6

16.2

22.0

32.0

4.7

97.5

-

116.5

156.9

773.3

6.0

13.8

2.1

7.5

0.4

42.1

10.3

5.4

14.7

19.7

32.0

4.9

95.5

0.1

78.5

113.2

571.0

4.5

20.5

2.8

10.7

0.3

Key Financial ratios - Consolidated

FY20E



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