consolidated construction consortium result updated

8/3/2019 Consolidated Construction Consortium Result Updated

1/12

Please refer to important disclosures at the end of this report 1

Y/E March (` cr) 3QFY12 3QFY11 2QFY12 % chg (yoy) % chg (qoq)Net sales 446.5 496.2 535.8 (10.0) (16.7)Operating profit 20.5 48.3 7.5 (57.7) 171.5

Net profit (3.2) 16.7 - - -Source: Company, Angel Research

Consolidated Construction Consortium (CCCL) posted a disappointing set of

numbers for 3QFY2012, as expected. The company reported a decline in

revenue, with continued dismal performance at EBITDAM level, which along with

interest cost burden led to loss at the earnings front. We are revising our

estimates further downwards for FY2012 to factor in the poor performance on

the revenue front during the quarter; however, we are keeping our FY2013

estimates unchanged. We recommend Reduce on the stock.Decline in revenue, continued abysmal EBITDAM performance -> Loss atearnings level (as expected):On the top-line front, the company posted a 10.0%yoy decline to`446.5cr, lower than our estimate of`535.9cr. On the EBITDAM

front, CCCL continued its dismal performance and registered a dip of 510bp yoy

to 4.6%, which was higher than our estimate of 3.2%. Interest cost came in at

`18.3cr a yoy/qoq jump of 45.1%/6.4%, respectively, and in-line with our

estimate of`18.6cr. Owing to poor show at the revenue and margin level, along

with interest burden, the bottom line posted a loss of `3.2cr in 3QFY2012 vs.

profit of`16.7cr in 3QFY2011 and against our estimate of loss of`5.2cr.

Outlook and valuation: CCCL has been posting erratic numbers on the EBITDAMfront and consequently has been performing poorly on the earnings front as well

since the past few quarters. However, in 3QFY2012, the company performed

badly on the revenue front as well. Further, slow-moving orders (`1,315cr, 22%

of order book) and poor EBITDAM performance expected for another 3-4

quarters would result in subdued performance from CCCL going forward as

well. Our target price for CCCL is `17/share based on 7.0x on its FY2013E EPSof `2.4, implying a downside of ~11% from current levels; hence,werecommendReduce on the stock.Key financials (Consolidated)Y/E March (` cr) FY2010 FY2011 FY2012E FY2013ENet sales (incl op. income) 1,976 2,199 2,258 2,646% chg 7.3 11.3 2.7 17.2

Adj. net profit 91.6 46.9 (28.0) 43.6% chg 26.6 (48.8) - -

FDEPS (`) 5.0 2.5 (1.5) 2.4EBITDA margin (%) 9.1 7.0 3.3 5.9

P/E (x) 3.8 7.3 - 7.9

RoAE (%) 16.6 7.7 (4.6) 7.2

RoACE (%) 19.3 13.2 4.9 10.7

P/BV (x) 0.6 0.5 0.6 0.6

EV/Sales (x) 0.3 0.3 0.4 0.4

EV/EBITDA (x) 2.9 4.5 11.3 6.0

Source: Company, Angel Research

REDUCECMP `19

Target Price `17

Investment Period 12 Months

Stock Info

Sector

Bloomberg Code

Shareholding Pattern (%)

Promoters 50.7

MF / Banks / Indian Fls 21.3

FII / NRIs / OCBs 13.9

Indian Public / Others 14.2

Abs. (%) 3m 1yr 3yr

Sensex 2.2 1.6 84.0

CCCL (9.5) (64.8) (31.1)

Face Value (`)

BSE SensexNifty

Reuters Code

344

0.3

57/14

23,935

Infrastructure

Avg. Daily Volume

Market Cap (` cr)

Beta

52 Week High / Low

2

17,7495,382

CCON.BO

CCCL@IN

Shailesh Kanani022-39357800 Ext: 6829

[email protected]

Nitin Arora022-39357800 Ext: 6842

[email protected]

Consolidated Construction ConsortiumPerformance Highlights

3QFY2012 Result Update | Infrastructure

February 11, 2012


2/12

CCCL | 3QFY2012 Result Update

February 11, 2012 2

Exhibit 1:Quarterly performance (Standalone)

Y/E March (` cr) 3QFY12 3QFY11 2QFY12 % Chg (yoy) % Chg (qoq) 9MFY12 9MFY11 % ChgNet sales 446 496 536 (10.0) (16.7) 1,489 1,494 (0.3)Total expenditure 426 448 528 (4.9) (19.4) 1437 1365 5.2Operating profit 20 48 8 (57.7) 171.5 53 129 (59.1)OPM (%) 4.6 9.7 1.4 (510)bp 320bp 3.5 8.6 (510)bp

Interest 18 13 17 45.1 6.451 35 44.5

Depreciation 4 3 4 10.6 3.0 11 9 12.9

Non operating income 3 1 1 74.3 71.6 5 4 23.6

Nonrecurring items - - - - - - 2 -

Profit before tax 1 34 (12) (97.2) - (4) 90 -Tax 3 12 4 (76.3) (33.7) 11 30 (63.8)

Net profit before JV share (2) 22 (16) - - (15) 59 -Share of pfts to JV partner 1 6 3 (74) 100 7 9 (29)

Net profit after JV share (3) 17 (19) - - (21) 50 -PAT (%) (0.7) 3.4 (3.5) - - (1.4) 3.4 -

Reported EPS (0.2) 0.9 (1.0) - - (1.2) 2.7 -Source: Company, Angel Research

Exhibit 2:3QFY2012 Actual vs. estimates

(` cr) Actual Estimates Variation (%)Net sales 446.5 535.9 (16.7)

EBITDA 20.5 17.1 19.3

Interest 18.3 18.6 (1.4)Tax 2.8 (1.3) -

PAT (3.2) (5.2) (37.6)


Revenue declines on account of marred execution pace

For 3QFY2012, the company posted a 10.0% yoy decline in its top line to

`446.5cr, lower than our estimate of `535.9cr. As per management, the main

reasons for this decline were 1) vigorous monsoon season affecting sites in

southern India and cyclone affecting the sites in coastal areas; 2) couple of jobs

were on hold during the quarter; 3) design and build jobs have stage-wise billing,which impacted turnover.

Slow-moving orders in the infrastructure segment (`2,577cr) as of 3QFY2012

stand at `1,315cr, thus resulting in 22% of order book (`5,906cr) being slow

moving.


3/12


February 11, 2012 3

Projects update

On the Chennai Airport project, CCCL booked revenue of `105cr during the

quarter. The company is hopeful of completing the balance project (~`50cr) by

April 2012 and is expecting billing for the same by June 2012.

On the 5MW solar power plant front, CCCL expects to achieve completion by

February 2012 end. However, the Delhi car park project has not begun yet due to

approval pending from Delhi Municipal Corporation, which is expected soon.

Exhibit 3:Revenue growth takes a hit


Exhibit 4:Decent order inflow for the quarter


EBITDAM disappoints again, high interest costEarnings in red

On the EBITDAM front, CCCL continued its dismal performance and registered adip of 510bp yoy to 4.6%, which was higher than our estimate of 3.2%. However,

on a sequential basis, the company reported an improvement of 320bp. This

improvement was on account of drop in material cost in absolute value during the

current quarter as 1) substantial portion of steel and cement was procured on

advance payments, which enabled to reduce price of procurement; 2) favorable

conditions prevailed for procurement of cement at slightly better prices in view of

the fact that cement companies were not operating at full capacity; 3) bulk

material prices reduced from their peak due to better availability of materials.

However, employee cost increased during the quarter by 2.3% on a yoy basis due

to salary revisions, which took effect from July 2011, despite the fact that averageemployee strength stands reduced by 8.33%. Sales and administration cost during

3QFY2012 increased by 16.9%, owing to revision of sales tax rates in TNVAT

coupled with implementation of the point of taxation rules requiring provisioning

based on certification as opposed to payments and design fees incurred for some

specified jobs.

Interest cost came in at`18.3cr, a yoy/qoq jump of 45.1%/6.4%, respectively, and

in-line with our estimate of `18.6cr. This was because 1) advance payments to

procure steel and cement coupled with delayed payments from debtors resulted in

higher borrowing; 2) overall borrowings increased from`518.2cr as of 2QFY2012

to `528.8cr during the current quarter; 3) higher utilization of CC limit and

short-term loan facility during the current quarter; and 4) increased interest rate of

borrowings. Owing to poor show at the revenue and margin level, along with

interest burden, the bottom line posted loss of `3.2cr in 3QFY2012 vs. profit of

`16.7cr in 3QFY2011 and against our estimate of loss of`5.2cr.

30.2

2.7

8.5

(3.4)4.5

33.2

23.4

8.5 10.0

1.1 (0.2)

9.5

(10.0)

(15)

(10)

(5)

0

510

15

20

25

30

35

40

0

100

200

300

400

500

600

700

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

Sales (` cr, LHS) Growth (yoy %, RHS)

496

1,541

321678 693

443 352

1,706

553 250

1160

1939

319 452

(100)

(50)

0

50

100

150

200

250

-

500

1,000

1,500

2,000

2,500

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

Order Booking (` cr, LHS) Growth (yoy %, RHS)


4/12


February 11, 2012 4

Exhibit 5:Poor show at the EBITDAM level continues


Exhibit 6:Earnings remain in red


Order book analysis

As of 3QFY2012, CCCLs order book stood at`5,906cr (2.7x FY2011 revenue),

up 14% yoy, dominated by the infrastructure (43.6%) and commercial (42.9%)

segments. The industrial and residential segments accounted for the balance.

During the quarter, the company bagged orders worth`453.2cr (majority of which

came from the commercial (38%) and infrastructure (40%) segments).

The companys order book is spread across price protected (62.4%), fixed price

(21.6%) and without material (16.0%) contracts.

Exhibit 7:Segmental order inflow for the quarter (`cr)


Exhibit 8:Order book at 2.7x FY2011 revenue(`cr)


6.8

5.4

7.1 7.3

8.9 9.0

11.4

8.3 7.8

9.7

3.5

4.8

1.4

4.6

-

2.0

4.0

6.0

8.0

10.0

12.0

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

EBITDA (` cr, LHS) EBITDAM (%, RHS)

4.1

3.0

4.3 4.34.7 4.7

5.3

3.52.8

3.4

0.2 0.1

(3.5)

(0.7)

(4.0)

(3.0)

(2.0)

(1.0)

-

1.0

2.0

3.0

4.0

5.0

6.0

(30.0)

(20.0)

(10.0)

-

10.0

20.0

30.0

40.0

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

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


5/12


February 11, 2012 5

Outlook and valuation

We are revising our estimates further downwards for FY2012 to factor in the poor

performance on the revenue front during the quarter. We are factoring in`2,258cr

(earlier `2,350cr) on the revenue front due to subdued performance in

3QFY2012. EBITDAM has been tweaked to 3.5% for FY2012 from 3.5% earlier.

Hence, we are estimating loss of `28cr for the year against our earlier loss

estimate of`20cr.

Exhibit 9:Change in estimates

FY2012E FY2013EEarlier Estimates Revised Estimates Variation (%) Earlier Estimates Revised Estimates Variation (%)

Revenues 2,350 2,258 (3.9) 2,646 2,646 -

EBITDA 82 74 (9.7) 156 156 -

EBITDAM (%) 3.5 3.3 (20)bp 5.9 5.9 -

Interest 73 73 - 80 80 -

APAT (20) (28)40.0 44 44 -

EPS (`) (1.1) (1.5) 40.0 2.4 2.4 -


CCCL has been posting erratic numbers on the EBITDAM front and consequently

has been performing poorly on the earnings front as well since the past few

quarters. However, in 3QFY2012, the company performed badly on the revenue

front as well. Further, slow-moving orders (`1,315cr, 22% of order book) and poor

EBITDAM performance expected for another 3-4 quarters would result in subdued

performance from CCCL going forward as well. Our target price for CCCL is`17/share based on 7.0x on its FY2013E EPS of `2.4, implying a downside of ~11%from current levels; hence,werecommend Reduce on the stock.

Exhibit 10:Key assumptions

FY2008 FY2009 FY2010 FY2011 FY2012E FY2013EOrder inflow (`cr) 2,138 2,512 2,166 3,537 3,408 3,965

Revenue (`cr) 1,477 1,841 1,976 2,199 2,258 2,646

Order backlog (Y/E) 2,652 3,323 3,392 4,968 6,117 7,436

Order book-to-sales ratio (x) 1.8 1.8 1.7 2.3 2.7 2.8


Exhibit 11:Angel EPS forecast vs. consensus

Angel forecast Bloomberg consensus Variation (%)FY2012E (1.5) (0.4) (76.9)

FY2013E 2.4 1.8 (22.7)



6/12


February 11, 2012 6

Recommendation rationale

Slow-moving orders: As of 3QFY2012, of its total order book of`5,906cr, CCCLhad ~`1,315cr (22% of order book) worth of slow-moving orders in the

infrastructure segment, which would keep its revenue growth under check for the

next few quarters.

EBITDAM to remain under pressure: Since the past few quarters, CCCL has beenreporting EBITDAM of 1.4-4.8%, owing to: 1) managements error in estimating

commodity prices for fixed price contracts; 2) high labor and procurement costs;

3) low-margin legacy orders; and 4) higher employee and sales and

administration cost. Further, as per management, pressure on EBITDAM is

expected to remain for the next few quarters, which continues to be an overhang

on the stock.

Return ratios take a hit: In the past, CCCL has enjoyed superior return ratios,because of which the stock traded at a premium to its peers. Currently, the

companys return ratios have taken a hit due its poor performance. Going ahead,

we see pressure on return ratios to continue and expect some improvement only

in FY2013.

Exhibit 12:Return ratios take a hit


27.8

14.916.6

7.7

(4.6)

7.2

35.3

17.519.3

13.2

4.9

10.7

(10.0)

(5.0)

-

5.0

10.0

15.0

20.025.0

30.0

35.0

40.0

FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

RoAE (%) RoACE (%)


7/12


February 11, 2012 7

Exhibit 13:Recommendation summary

Company CMP TP Rating Top-line (` cr) EPS (`) Adj. P/E OB/FY11 FY12E FY13E CAGR (%) FY11 FY12E FY13E CAGR (%) FY11 FY12E FY13E Sales(x)

ABL 196 245 Buy 1,302 1,648 1,853 19.3 19.2 21.7 25.4 15.2 10.2 9.1 7.7 4.2CCCL 19 17 Reduce 2,199 2,258 2,646 9.7 2.5 (1.5) 2.4 (3.6) 7.3 - 7.9 2.7HCC 27 - Neutral 4,093 3,915 4,633 6.4 1.2 (3.1) 0.6 (25.8) 23.1 - 42.0 4.0

IRB Infra 171 182 Accu. 2,438 3,176 3,781 24.5 13.6 14.2 13.1 (2.0) 12.6 12.1 13.1 -

ITNL 205 235 Accu. 4,049 5,178 6,619 27.9 22.3 22.9 26.0 7.8 9.2 8.9 7.9 5.2

IVRCL 57 - Neutral 5,651 5,598 6,458 6.9 5.9 3.8 4.6 (11.5) 9.6 15.0 12.2 4.5

JP Assoc. 77 88 Accu. 13,832 13,763 16,017 7.6 5.5 2.7 4.2 (12.6) 14.0 28.0 18.3 -

L&T 1,350 1,608 Buy 43,905 53,779 60,258 17.2 54.3 63.7 70.9 14.2 24.9 21.2 19.1 3.3

Madhucon 61 77 Buy 1,816 1,952 2,503 17.4 5.6 4.4 4.7 (8.1) 11.0 13.9 13.1 3.8

NCC 53 58 Accu. 5,074 4,946 5,749 6.4 6.4 1.4 3.7 (24.0) 8.3 38.5 14.4 4.3

Patel Engg 115 - Neutral 3,476 3,573 3,609 1.9 17.6 14.9 14.8 (8.3) 6.5 7.7 7.8 2.7

Punj Lloyd 59 - Neutral 7,850 9,585 10,592 16.2 (5.4) 1.9 2.9 - - 31.0 20.2 3.3

Sadbhav 142 157 Accu. 2,209 2,602 2,585 8.2 8.0 9.3 9.2 7.3 17.8 15.3 15.5 2.7

Simplex In. 202 233 Buy 4,889 5,562 6,485 15.2 21.5 18.9 25.9 9.8 9.4 10.7 7.8 3.1

Source: Company, Angel Research;

Exhibit 14:SOTP breakup Across players

Company Core Const. Real Estate Road BOT Invst. In Subsidiaries Others Total` % to TP ` % to TP ` % to TP ` % to TP ` % to TP `

ABL 10442 - - 141 58 - - - - 245

CCCL 17 100 - - - - - - - - 17HCC 4 12 12 37 16 51 - - - - 32

IRB Infra 116 64 - - 61 34 4 2 - 182

ITNL 59 25 - - 152 65 - - 25 10 235

IVRCL 37 66 - - - - 19 34 - - 56

JP Assoc. 31 35 24 27 - - - - 33 37 88

L&T 1,276 79 - - - - 332 21 - - 1,608

Madhucon 23 30 2 3 52 68 - - - 77

NCC 29 51 2 3 8 14 - - 18 32 58

Patel Engg 55 51 17 16 16 15 - - 19 18 106

Punj Lloyd 47 100 - - - - - - - - 47

Sadbhav 83 53 - - 75 47 - - - - 157

Simplex In. 233 100 - - - - - - - - 233



8/12


February 11, 2012 8

Profit & loss statement (Consolidated)

Y/E March (` cr) FY2008 FY2009 FY2010 FY2011 FY2012E FY2013ENet sales 1,477 1,841 1,976 2,199 2,258 2,646Other operating income - - - - - -Total operating income 1,477 1,841 1,976 2,199 2,258 2,646% chg 70.1 24.6 7.3 11.3 2.7 17.2

Total Expenditure 1,308 1,712 1,797 2,046 2,183 2,490

Net Raw Materials 959 1,439 1,545 1,744 1,763 2,011

Other Mfg costs 217 47 - - 122 124

Personnel 71 106 114 143 135 164

Other 61 120 138 158 163 191

EBITDA 169 128 179 153 74 156% chg 126.8 (24.1) 39.5 (14.6) (51.4) 109.7

(% of Net Sales) 11.5 7.0 9.1 7.0 3.3 5.9

Depreciation& Amortisation 6 9 11 14 16 18

EBIT 164 120 168 139 58 138% chg 130.6 (27.0) 40.7 (17.3) (58.3) 137.3

(% of Net Sales) 11.1 6.5 8.5 6.3 2.6 5.2

Interest & other Charges 12 18 33 49 73 80

Other Inc (incl pft frm As/JV) 8 9 6 5 6 7

(% of PBT) 4.9 8.5 4.5 5.5 (76.3) 10.5

Recurring PBT 160 111 142 95 (8) 65% chg 149.5 (31.0) 28.5 (33.2) (108.9) (861.9)

Extraordinary Expense/(Inc.) - - - - - -

PBT (reported) 160 111 142 95 (8) 65Tax 45 38 50 36 10 21

(% of PBT) 28.3 34.5 35.5 37.7 (118.0) 32.4

PAT (reported) 115 72 92 59 (18) 44Less: Share of JV Partn profit 12.2 9.5 -

Less: Minority interest (MI) - - - - - -

Prior period items - - - - - -

PAT after MI (reported) 115 72 92 47 (28) 44ADJ. PAT 89 72 92 47 (28) 44% chg 87.2 (18.9) 26.6 (48.8) - -

(% of Net Sales) 6.0 3.9 4.6 2.1 (1.2) 1.6Basic EPS (`) (Reported) 6.2 3.9 5.0 2.5 (1.5) 2.4Fully Diluted EPS ( ) 4.8 3.9 5.0 2.5 (1.5) 2.4% chg 87.2 (18.9) 26.6 (48.8) - -


9/12


February 11, 2012 9

Balance sheet (Consolidated)

Y/E March (` cr) FY2008 FY2009 FY2010 FY2011 FY2012E FY2013ESOURCES OF FUNDSEquity Share Capital 37 37 37 37 37 37Preference Capital - - - - - -

Reserves& Surplus 417 479 552 591 552 583

Shareholders Funds 454 516 589 628 588 620Minority Interest - - - - - -Total Loans 125 198 339 431 582 670

Deferred Tax Liability 30 44 60 61 61 61

Total Liabilities 609 758 988 1,121 1,232 1,351APPLICATION OF FUNDSGross Block 94 161 190 220 250 280

Less: Acc. Depreciation 13 22 33 47 63 81

Net Block 81 138 157 173 186 198

Capital Work-in-Progress 2 6 15 36 36 36

Investments 99 57 9 3 33 43

Current Assets 865 1,089 1,358 1,514 1,597 1,801Inventories 633 807 1,020 1,204 1,237 1,449

Sundry Debtors 13 9 12 8 8 9

Cash 88 130 170 85 86 77

Loans & Advances 132 144 156 217 267 266

Other - - - - - -

Current liabilities 452 546 554 605 621 728Net Current Assets 413 544 805 909 976 1,074Misc. Exp. not written off 14 12 1 - - -

Total Assets 609 758 988 1,121 1,232 1,351


10/12


February 11, 2012 10

Cash flow statement (Consolidated)

Y/E March (` cr) FY2008 FY2009 FY2010 FY2011 FY2012E FY2013EProfit before tax (excluding MI) 160 111 142 83 (18) 65

Depreciation 6 9 11 14 16 18Change in Working Capital 159 89 221 189 67 106

Less: Other income 8 9 6 5 6 7

Direct taxes paid 32 24 38 36 10 21

Cash Flow from Operations (34) (2) (112) (133) (85) (51)(Inc.)/ Dec. in Fixed Assets (37) (71) (38) (51) (30) (30)

(Inc.)/ Dec. in Investments (99) 42 47 6 (30) (10)

Other income 8 9 6 5 6 7

Cash Flow from Investing (128) (19) 16 (39) (54) (33)Issue of Equity 189 - - - - -

Inc./(Dec.) in loans 10 72 141 93 151 87

Dividend Paid (Incl. Tax) 11 9 11 11 12 12

Others (28) 0 6 6 - -

Cash Flow from Financing 160 63 136 88 139 75Inc./(Dec.) in Cash (1) 42 40 (85) 1 (9)

Opening Cash balances 89 88 130 170 85 86Closing Cash balances 88 130 170 85 86 77


11/12


February 11, 2012 11

Key Ratios

Y/E March FY2008 FY2009 FY2010 FY2011 FY2012E FY2013EValuation Ratio (x)P/E (on FDEPS) 3.9 4.8 3.8 7.3 - 7.9P/CEPS 3.6 4.2 3.3 5.6 - 5.5

P/BV 0.8 0.7 0.6 0.5 0.6 0.6

Dividend yield (%) 2.7 2.7 2.7 2.7 3.0 3.0

EV/Sales 0.3 0.2 0.3 0.3 0.4 0.4

EV/EBITDA 2.3 3.2 2.9 4.5 11.3 6.0

EV / Total Assets 0.6 0.5 0.5 0.6 0.7 0.7

Per Share Data (`)EPS (Basic) 6.2 3.9 5.0 2.5 (1.5) 2.4

EPS (fully diluted) 4.8 3.9 5.0 2.5 (1.5) 2.4

Cash EPS 5.1 4.4 5.6 3.3 (0.6) 3.4

DPS 0.5 0.5 0.5 0.5 0.6 0.6

Book Value 24.6 27.9 31.9 34.0 31.8 33.6

DuPont AnalysisEBIT margin 11.1 6.5 8.5 6.3 2.6 5.2

Tax retention ratio 0.7 0.7 0.6 0.6 2.2 0.7

Asset turnover (x) 3.9 3.2 2.7 2.4 2.1 2.2

ROIC (Post-tax) 31.3 13.6 15.0 9.4 11.6 7.7

Cost of Debt (Post Tax) 6.9 7.5 7.8 8.0 31.4 8.6

Leverage (x) 0.1 0.1 0.2 0.4 0.7 0.9

Operating ROE 33.7 14.3 16.5 9.9 (2.1) 6.8

Returns (%)ROACE (Pre-tax) 35.3 17.5 19.3 13.2 4.9 10.7

Angel ROIC (Pre-tax) 43.6 20.8 23.3 15.0 5.3 11.4

ROAE 27.8 14.9 16.6 7.7 (4.6) 7.2

Turnover ratios (x) Asset Turnover (Gross Block) 19.2 14.4 11.3 10.7 9.6 10.0

Inventory / Sales (days) 120 143 169 185 197 185

Receivables (days) 2 2 2 2 1 1

Payables (days) 77 93 100 94 97 91

W. cap cycle (ex-cash) (days) 62 73 97 121 139 130

Solvency ratios (x)Net debt to equity 0.1 0.1 0.3 0.6 0.8 1.0

Net debt to EBITDA 0.2 0.5 0.9 2.3 6.7 3.8

Interest Coverage 14.2 6.5 5.2 2.8 0.8 1.7


12/12


February 11 2012 12

Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com

DISCLAIMERThis 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 makesuch 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 reliablesources 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 thisdocument is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any wayresponsible 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. WhileAngel 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, pleaserefer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited andits affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement CCCL

1. Analyst ownership of the stock No

2. Angel and its Group companies ownership of the stock No

3. Angel and its Group companies' Directors ownership of the stock No

4. Broking relationship with company covered No

Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors.

Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to 15%) Sell (< -15%)

consolidated construction consortium result updated

Documents