Ashoka Buildcon, 1Q FY 2014

7/27/2019 Ashoka Buildcon, 1Q FY 2014

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

Quarterly highlights ConsolidatedY/E March (` cr) 1QFY14 1QFY13 4QFY13 % chg (yoy) % chg (qoq)Net sales 469 466 650 0.6 (27.8)Op. profit 94 102 109 (8.0) (13.2)

Net profit 30 41 6 (26.0) 373.2Source: Company, Angel Research

For 1QFY2014, Ashoka Buildcon (ABL) reported a poor set of numbers. The poor

performacne was mainly on the back of slowdown in execution, lower-than-

expected operating performance and higher interest cost, leading to

disappointment at the earnings level. The company has an order book of`3,206cr (down by 31% yoy) as of 1QFY2014 thereby converting into an OB-to-

sales of 2.2x trailing E&C revenues. We maintain our Buy rating on the stock.Execution disappoints:ABL reported a flat top-line growth of 0.6% yoy to`469crin 1QFY2014 which was lower than our estimate by 7.7%. This was mainly on

account of slower execution pace in the under-construction projects. During the

quarter, the E&C segments revenue grew meagerly by 1.2% yoy to`400.1cr (including

other income) and was lower than our estimate of`424cr. The BOT segment revenues

came in at`72.9cr (including other income) in 1QFY2014, indicating a decline of 8.0%

yoy. On the EBITDAM front, ABLs margins came in at 20.1% (vs 22.0% in 1QFY2013),

lower than our estimate of 22%, owing to lower-than-expected revenue growth and high

input costs. On the bottom-line front, ABLs PAT declined by 26.0% yoy to `30cr(vs`41cr in 1QFY2013) and was slightly below our estimate of`32cr. This was mainly

on account of lower-than-expected revenue growth and higher interest expenses.

Outlook and valuation: ABL has a robust order book of `3,206cr (2.2x trailingE&C revenues), which lends revenue visibility. Although a slowdown in order

awarding by NHAI in the road sector has been witnessed in 1QFY2014, ABL

expects ordering activity to improve going ahead. On back of delay in start of

construction activity owing to various issues (MOEF clearances, land acquisition)

the company has terminated the concession agreement signed with NHAI for

Cuttack Angul. We have valued ABL on an SOTP basis to arrive at a target priceof `60, which implies an upside of 30% from the current levels.Key financials (Consolidated)Y/E March (` cr) FY2012 FY2013 FY2014E FY2015ENet Sales 1,500 1,853 1,912 2,131% chg 15.1 23.5 3.2 11.5

Adj.Net Profit 125 100 95 86% chg 23.8 (20.0) (4.9) (9.0)

EBITDA (%) 21.7 20.1 21.0 21.5

FDEPS (`) 7.9 5.3 5.0 5.5P/E (x) 5.8 8.6 9.1 8.3

P/BV (x) 0.7 0.7 0.7 0.6

RoE (%) 12.9 9.6 8.8 7.6

RoCE (%) 6.7 2.9 2.1 2.4

EV/Sales (x) 1.6 1.7 1.7 1.7EV/EBITDA (x) 7.3 8.4 8.0 8.1

OB/sales(x) 3.3 2.0 2.3 2.2

Order inflow 1,800 372 2,358 2,448

% chg (58.2) (79.4) 534.8 3.8

Source: Company, Angel Research; Note CMP as of August 8,2013

BUYCMP `46

Target Price `60

Investment Period 12 Months

Stock Info

Sector

Net Debt (`cr) 2,500

Bloomberg Code

Shareholding Pattern (%)

Promoters 67.5

MF / Banks / Indian Fls 18.5

FII / NRIs / OCBs 0.0

Indian Public / Others 14.0

Abs. (%) 3m 1yr 3yr

Sensex (6.0) 6.8 2.7

ABL (35.4) (37.6) #

Note:#

listing in Oct 2010

Nifty 5,566

Reuters Code ABDL.BO

ASBL@IN

Avg. Daily Volume 8,540

Face Value (`) 5

BSE Sensex 18,789

52 Week High / Low 93/41

Infrastructure

Market Cap (`cr) 721

Beta 0.5

Viral Shah022-39357800 Ext: 6842

[email protected]

Ashoka BuildconPerformance Highlights

1QFY2014 Result Update | Infrastructure

August 10, 2013


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Ashoka Buildcon| 1QFY2014 Result Update

August 10, 2013 3

Exhibit 3:1QFY2014 Actual vs Angel estimates

Parameter (` cr) Estimates Actual Variation (%)Revenue 508 469 (7.7)

EBITDA 107 94 (11.8)Interest 35 31 (11.2)

PAT 32 30 (5.5)

Source: Company, Angel Research

Execution disappoints

ABL reported a flat top-line growth of 0.6% yoy to`469cr in 1QFY2014 which was

lower than our estimate by 7.7%. This was mainly on account of slower execution

pace in the under-construction projects. During the quarter, the E&C segments

revenue grew meagerly by 1.2% yoy to`400.1cr (including other income) and was

lower than our estimate of`424cr. The BOT segments revenue came in at`72.9cr(including other income) in 1QFY2014, indicating a decline of 8.0% yoy. This was

mainly due to (a) low traffic growth in some BOT toll projects and (b) termination

of toll collection rights in Nagar Karmala BOT projects.

Going forward, the Management expects its under-construction projects (a)

Sambalpur-Baragarh, (b) Belgaum-Dharwad and (c) Dhankuni-Kharagpur to drive

the companys E&C revenue growth. On the back of healthy order book and

strong execution pipeline we estimate ABL to report a revenue CAGR of 7.2% over

FY2013-15 respectively.

Exhibit 4:Slower-than-expected execution performance


353

468

466

305

431

650

469

49.3

(22.4)

20.1

6.5

22.1

38.8

0.6

(30.0)

(20.0)

(10.0)

-

10.0

20.0

30.0

40.0

50.0

60.0

0

100

200

300

400

500

600

700

3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14

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


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August 10, 2013 4

BOT toll revenue

On the toll collection front, ABL witnessed a growth of 12.1% yoy/11.6% qoq in

1QFY2014. This growth was on the back of commencement of toll collection on

Pimpalgaon-Nashik-Gonde and toll rate hike witness in some of the BOT projects

during the quarter.

Toll collection: During the quarter, the Belgaum-Dharwad BOT project, Jaora-

Nayagaon BOT project and the Indore-Edalabad BOT project witnessed a toll rate

hike of ~9%, ~7% and 7% respectively. Due to completion of the critical bridge

over Roopnarayan River in 4QFY2013, the Dhankuni-Kharagpur BOT project

witnessed a toll rate hike of ~30% w.e.f April 1, 2013.

Exhibit 5:Road BOT project-wise toll revenue growth (`cr)

Project Name 1QFY14 1QFY13 % chg 4QFY13 % chg(qoq) FY2013 FY2012 % chg(yoy)Indore -Edalabad 21 18 19.2 18 18.1 68 65 5.4

Ahmednagar-Aurangabad 5 4 16.6 4 18.0 16 16 (2.4)

WaingangaBridge 6 6 2.1 6 (4.0) 22 21 4.7

DewasBypass 6 6 5.4 6 4.6 23 19 17.5

KatniBypass 5 5 (1.3) 5 (0.4) 18 19 (2.2)

Pune-Shirur$ 5 6 (4.9) 5 5.2 21 21 2.8

Nagar -Karmala^ - 6 - - - 15 25 (39.9)

Jaora -Nayagaon** 29 27 9.0 27 8.6 109 65 68.3

Bhandara 11 11 4.0 12 (5.7) 46 45 3.5

Belgaum Dharwad # 15 15 2.4 14 6.4 58 48 20.6

Durg 15 14 2.4 15 (2.7) 58 - -Dhankuni- Kharagpur@ 52 40 - 40 30.3 155 - -

Pimpalgaon-Nashik-Gonde 11 - - 10 - 19 - -

Others * 5 9 (47.9) 5 2.7 23 47 (50.4)

Total 187 167 12.1 167 11.6 652 391 67.0Source: Company, Angel Research; Note: $ Toll collection disturbed in 3QFY2011 and 4QFY2011, Toll on one toll plaza discontinued, # Toll collectionadjusted in Capital WIP, Toll collection started from May 2011, *Others include Anawali Kasegaon, Dhule Bye pass, Nashirabad & Sherinala, ** Toll on the

second section started in May 2011 and that on the third section started on February 15, 2012

Under-construction projects

Dhankuni Kharagpur: Due to completion of the critical bridge over RoopnarayanRiver, the toll rate has been revised upwards by ~30% w.ef April 1, 2013. As on

1QFY2014, it has completed ~45% of EPC work and is expected to get

commissioned by 2QFY2015.Belgaum Dharwad: The company has completed 84% of EPC work of the totalproject. The project is expected to get commissioned by 3QFY2014.

Sambalpur Baragarh project: The construction work on the project commencedfrom November 2011; ~59% of the construction work is complete. The project is

expected to get commissioned by 1QFY2015.


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August 10, 2013 6

Outlook and valuation

ABL has a robust order book of`3,206cr (2.2x trailing E&C revenues), which lends

revenue visibility. Although a slowdown in order awarding by NHAI in the road

sector has been witnessed in 1QFY2014, ABL expects ordering activity to improve

going ahead. ABLs subsidiary Ashoka Concessions Ltd has received its second

tranche of`380cr from SBI-Macquarie in 1QFY2014. On back of delay in start of

construction activity owing to various issues (such as MOEF clearances, land

acquisition) the company has terminated the concession agreement signed with

NHAI for Cuttack Angul.We have valued ABL on a SOTP basis by assigning 4x P/E to its standalone

business and valued its BOT projects on NPV basis - (it be noted that we have been

conservative than the companys Management on revenue estimates [toll receipts]

for under-construction projects, keeping an eye on revenue yield given the current

competitive environment) to arrive at a target price of`60. We have not included

the Cuttack-Angul BOT project in our SOTP valuation. We maintain our Buy ratingon the stock.

Exhibit 8:SOTP valuation break-up

Particulars Segment Driver Multiple ABL's value (` cr) ABL's value(`/ share) Proportionatestake (%) BasisAshoka's construction business Construction 69 4 277 18 29.2

P/E of 4x one year rollingforward earnings

Total 277 18 29.2Ashoka Concession Road BOT projectsPune Shirur Toll 11 100 11 1 1.2 NPV at CoE of 14%

Nagar Aurangabad Toll 5 100 5 0 0.5 NPV at CoE of 14%

Nagar Karmala Toll 67 100 67 4 7.0 NPV at CoE of 14%

Wainganga Toll 77 50 39 2 4.1 NPV at CoE of 14%

Sherinala Toll 11 100 11 1 1.2 NPV at CoE of 14%

Indore Edalabad Toll 166 100 166 11 17.5 NPV at CoE of 14%

Dewas Bye Pass Toll 47 100 47 3 4.9 NPV at CoE of 14%

Katni Bye Pass Toll 42 100 42 3 4.5 NPV at CoE of 14%

Total 387 25 40.8ACL Road BOT ProjectsBhandara Toll 50 51 25 2 2.7 NPV at CoE of 14%

Belgaum Dharwad Toll 112 100 112 7 11.8 NPV at CoE of 14%

Pimpalgaon-Nasik-Gonde Toll 305 26 79 5 8.4 NPV at CoE of 14%

Sambalpur Baragarh Toll 116 100 116 7 12.2 NPV at CoE of 14%

Durg Toll 83 51 42 3 4.5 NPV at CoE of 14%

Jaora-Nayagaon Toll 375 37.7 142 9 14.9 NPV at CoE of 14%

Dhankuni-Kharagpur Toll 7 100 7 0 0.7 NPV at CoE of 14%

Total 524 33 55.2

Net debt (239) (15) (25.2) Standalone net debt

Grand Total 561 60 100.0Source: Company, Angel Research


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August 10, 2013 7

Exhibit 9:ABL BOT projects details/assumptions

(` cr)Project Client Lane Kms ABL's Stake TPC SPV Equity Debt Grant/(Prem.) Con. sign Int. Rate Toll Inc Traffic IncOperational Projects (%) (%) (%) (%)Indore -Edalabad MPRDC 407 87 165.0 64.7 55.6 45.0 22-Sep-01 11.9 7.0 5.0

Ahmednagar-Aurangabad PWD 168 100 103.0 36.0 67.0 - 18-Dec-06 10.0 15.0* 5.0

Wainganga Bridge MORTH 26 50 41.0 14.5 26.5 - 16-Nov-98 9.5 6.0 5.0

Dewas Bypass PWD 40 100 61.0 25.0 36.0 - 31-Aug-01 13.8 25.0* 5.0

Katni Bypass PWD 35 100 71.0 28.0 43.0 - 19-Aug-02 14.0 5.0 5.0

PuneShirur PWD 216 100 161.0 55.0 106.0 - 7-May-03 11.0 18.0* 5.0

Nagar -Karmala PWD 160 100 50.0 31.5 18.5 - 19-Feb-99 11.3 18.0* 5.0

Bhandara NHAI 377 51 535.0 150.0 375.0 10.0 18-Sep-07 11.0 6.0 5.0

Dhule Bypass PWD 12 100 6.0 0.6 5.4 - 28-Aug-97 No debt - 5.0

Nashirabad MORTH 8 100 15.0 14.5 0.5 - 16-Nov-98 No debt 21.0# 5.0

Sherinala PWD 7 100 14.0 7.0 7.1 - 23-Mar-99 No debt 16.0 5.0

Anawali Kasegaon PWD 22 5 7.4 3.3 4.1 - 1-Mar-04 No debt n.a. 5.0

Under cons./develop.JaoraNayagaon MPRDC 340 15 835 273.0 562.0 (15.3)^ 20-Aug-07 11.0 5.0 5.0

Durg NHAI 368 51 587 201.0 386.0 (1.0) 23-Jan-08 13.3 5.0 5.0

PNG NHAI 452 26 1,691 339.0 1,352.0 6.2%@ 8-Jul-09 10.3 5.0 5.0

Belgaum Dharwad NHAI 454 100 694 215.0 479.0 (31.0)^ 29-Jun-10 12.3 5.0 5.0

Sambalpur-Baragarh NHAI 408 100 1,142 332.0 810.0 (1.3)^ 29-Jun-10 11.8 5.0 5.0

DhankuniKharagpur NHAI 840 100 2,200 450.0 1,750.0 (126.1)^ 21-Jun-11 11.0 5.0 5.0

Total 3,611 8,378 2,240 6,084Source: Company, Angel Research, Note:* Every three years, # Every five years, ^ 5% increment per annum, @ 6.19% of revenue payable as premium and

increment of 1% per annum

Exhibit 10:Angel EPS forecast vs consensus

Angel forecast Bloomberg consensus Variation (%)FY2014E 5.0 7.3 (31.2)

FY2015E 5.5 8.3 (34.1)



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August 10, 2013 8

Investment arguments

Integrated business model: ABL is able to undertake all activities related to BOTroad projects in-house from tendering for the project to collection of tolls. ABLs

integrated structure enables it to bid for a BOT project with confidence, given itsability to complete and operate projects on a profitable basis. It also allows

capturing the entire value in the BOT development business, including EPC

margins, developer returns and operation and maintenance margins.

Road sector; opportunities galore: NHAI plans to award 5,000kms of road projectsin FY2014 despite having awarded only ~1,200kms in FY2013. Of these, it is

targeting to award ~3,000kms on an EPC basis and the rest on BOT basis. Going

ahead, we believe there is fair amount of awarding remaining from NHAIs end

(~21,000km), state projects, expressways and mega highways which would

provide humungous opportunities for road-focused players such as ABL.

Concerns

Interest rate risks: The inherent nature of BOT projects requires high leverage.Going by the thumb rule, most road BOT projects have a debt-equity blend of

70:30. Hence, the companys business model is vulnerable to interest rate

fluctuations, and any hike in interest rates could increase its interest costs.

Traffic growth risks:Revenue from BOT toll-based projects is directly affected bytraffic growth. Companies bid for projects assuming long-term traffic growth

patterns, which may be higher/aggressive than actual traffic growth. This

aberration in estimates could result in lower returns for companies. Moreover, anyeconomic slowdown could impact our estimates. The thumb rule for traffic growth

is a factor of 0.8-0.9x of real GDP growth. Therefore, we have conservatively

factored in 5% traffic growth in ABLs BOT projects.

Commodity risks: Prices of commodities like cement, steel and bitumen play animportant role in shaping EBITDAM. We have factored in a flat EBITDAM for ABL

for the C&EPC and BOT segments owing to inclusion of escalation clause while

estimating costs and due to the integrated business model of ABL. However, if the

movement in the prices of these commodities is higher than estimates, it would

have a negative impact on the companys EBITDAM.


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August 10, 2013 9

Exhibit 11:Recommendation summary

Company CMP TP Rating Top-line (` cr) EPS (`) P/E OB/FY13 FY14E FY15E CAGR (%) FY13 FY14E FY15E CAGR (%) FY13 FY14E FY15E Sales(x)

ABL 46 60 Buy 1,853 1,912 2,131 7.2 5.3 5.0 5.5 1.3 8.6 9.1 8.4 2.2CCCL 7 - Neutral 1,931 2,281 2,492 13.6 (3.3) 0.7 2.0 - (2.0) 9.6 3.3 2.2

IRB Infra 71 106 Buy 3,687 3,805 4,248 7.3 16.7 15.0 15.8 (3.0) 4.2 4.7 4.5 2.1

ITNL 120 156 Buy 6,645 7,423 7,970 9.5 26.8 30.3 31.9 9.2 4.5 4.0 3.8 2.2

IVRCL 11 - Neutral 3,759 5,673 5,892 8.4 (3.3) 1.4 1.8 - - 7.8 6.1 4.8

JP Assoc. 31 41 Buy 13,415 12,946 14,897 5.4 2.5 1.2 2.7 4.1 12.6 25.4 11.6 -

L&T 780 1,002 Buy 60,873 66,532 74,520 10.6 44.8 46.9 52.2 8.0 17.4 16.6 14.9 2.5

NCC 19 27 Buy 5,725 6,044 6,533 6.8 2.4 2.4 2.6 2.4 7.6 7.7 7.2 3.2

Punj Lloyd 24 - Neutral 11,408 12,726 14,226 11.7 (0.2) 0.9 1.0 - - 28.4 23.8 1.8

Sadbhav 71 100 Buy 1,811 2,462 2,731 22.8 0.9 5.9 6.7 177.2 82.1 12.1 10.7 5.6

Simplex In. 50 - Neutral 5,897 6,308 7,033 9.2 10.8 11.9 18.7 31.9 4.7 4.2 2.7 2.7

Unity Infra 20 - Neutral 2,040 2,146 2,339 7.1 12.5 11.0 11.5 (4.0) 1.6 1.8 1.7 1.6


Exhibit 12:SOTP break-up for coverage universe

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

ABL 18 30 - - 42 70 - - - - 60CCCL 16 100 - - - - - - - - 16

IRB Infra 30 28 - - 76 72 - - - - 106

ITNL 58 37 - - 98 63 - - - - 156IVRCL 9 31 - - - - 20 69 - - 29

JP Assoc. 15 37 15 37 - - - - 11 27 41

L&T 731 73 - - - - 271 27 - - 1,002

NCC 13 48 - - 7 26 - - 7 26 27

Punj Lloyd 44 100 - - - - - - - - 44

Sadbhav 47 33 - - 93 67 - - - - 139

Simplex In. 75 100 - - - - - - - - 75

Unity Infra 27 100 - - - - - - - - 27



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August 10, 2013 10

Profit & loss statement (Consolidated)

Y/E March (` cr) FY2010 FY2011 FY2012 FY2013 FY2014E FY2015ENet Sales 796 1,303 1,500 1,853 1,912 2,131Other operating income - - - - - -Total operating income 796 1,303 1,500 1,853 1,912 2,131% chg 53.5 63.8 15.1 23.5 3.2 11.5

Total Expenditure 581 1,052 1,175 1,481 1,510 1,673R.M. consumed 358 396 401 459 554 607

Construction expenses 184 593 700 924 851 948

Employee expenses 21 33 43 50 55 62

SG&A 18 29 31 48 50 55

EBITDA 214 251 325 372 401 458% chg 30.6 17.0 29.7 14.4 7.9 14.1

(% of Net Sales) 26.9 19.2 21.7 20.1 21.0 21.5

Depreciation & Amortisation 66 69 85 132 157 171

EBIT 148 182 240 240 245 287% chg 48.8 22.6 32.2 (0.2) 2.2 17.1

(% of Net Sales) 18.6 13.9 16.0 12.9 12.8 13.5

Interest & other Charges 49 69 114 139 153 183

Other Income 19 25 26 21 22 25

(% of PBT) 15.8 17.9 17.1 17.7 19.5 19.3

Share in profit of Associates - - - - - -

Recurring PBT 118 137 152 122 114 128% chg 135.9 16.6 10.5 (19.9) (6.3) 12.6

Extraordinary Expense/(Inc.) - 107.2 - (15.7) (15.7) -

PBT (reported) 118 244 152 106 98 128Tax 32 42 45 68 39 44

(% of PBT) 27.1 17.4 29.8 64.7 39.4 34.0

PAT (reported) 86 202 107 37 59 85Add: Share of earnings of asso. - 8 9 8 (5) (15)

Less: Minority interest (MI) 6 2 (9) (39) (25) (17)

Prior period items - - - - - -

PAT after MI (reported) 80 208 125 84 79 86ADJ. PAT 80 101 125 100 95 86% chg 130.8 25.4 23.8 (20.0) (4.9) (9.0)(% of Net Sales) 10.1 7.7 8.3 5.4 5.0 4.1

Basic EPS (`) 5.1 13.2 7.9 5.3 5.0 5.5Fully Diluted EPS ( ) 5.1 13.2 7.9 5.3 5.0 5.5% chg 130.8 158.7 (40.0) (32.5) (5.8) 8.9

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

previous year numbers


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August 10, 2013 12

Cash flow statement (Consolidated)Y/E March (` cr) FY2010 FY2011 FY2012 FY2013 FY2014E FY2015EProfit before tax 118 244 152 106 98 128

Depreciation 71 38 82 77 157 171Change in Working Capital (89) (224) 94 121 (84) (1)

Less: Other income (19) (25) (26) (21) (22) (25)

Direct taxes paid (32) (42) (45) (68) (39) (44)

Cash Flow from Operations 50 (8) 256 214 110 231(Inc.)/ Dec. in Fixed Assets (483) (457) (2,692) (6,883) (241) (565)

(Inc.)/ Dec. in Investments (58) 9 (66) (77) - -

Other income 19 25 26 21 22 25

Cash Flow from Investing (522) (423) (2,732) (6,939) (219) (541)Issue of Equity (1) 5 (8) (3) - -

Inc./(Dec.) in loans 399 161 424 747 100 500

Dividend Paid (Incl. Tax) - - - (13) (13) (13)

Others 89 242 2,049 5,995 36 (182)

Cash Flow from Financing 487 407 2,465 6,726 123 306Inc./(Dec.) in Cash 15 (24) (10) 2 14 (4)

Opening Cash balances 69 85 60 50 52 66Closing Cash balances 85 60 50 52 66 62




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August 10, 2013 13

Key RatiosY/E March FY2010 FY2011 FY2012 FY2013 FY2014E FY2015EValuation Ratio (x)P/E (on FDEPS) 9.0 3.5 5.8 8.6 9.1 8.3P/CEPS 7.3 4.9 2.6 3.4 3.3 3.1

P/BV 1.6 0.8 0.7 0.7 0.7 0.6

Dividend yield (%) - - - - 0.3 0.3

EV/Sales 2.2 1.5 1.6 1.7 1.7 1.7

EV/EBITDA 8.2 7.8 7.3 8.4 8.0 8.1

EV / Total Assets 1.1 0.8 0.5 0.3 0.3 0.3

Per Share Data (`)EPS (Basic) 5.1 13.2 7.9 5.3 5.0 5.5

EPS (fully diluted) 5.1 13.2 7.9 5.3 5.0 5.5

Cash EPS 6.3 9.3 17.5 13.3 13.7 14.9

DPS - - - - 0.1 0.1

Book Value 29.3 56.6 65.5 66.5 69.8 74.5

Dupont AnalysisEBIT margin 18.6 13.9 16.0 12.9 12.8 13.5

Tax retention ratio 72.9 82.6 70.2 35.3 60.6 66.0

Asset turnover (x) 0.6 0.7 0.4 0.2 0.2 0.2

ROIC (Post-tax) 8.3 7.9 4.8 1.0 1.3 1.6

Cost of Debt (Post Tax) 3.9 4.7 5.4 2.4 3.7 4.3

Leverage (x) 2.1 1.8 1.5 1.9 2.3 2.4

Operating ROE 17.6 13.5 3.9 (1.6) (4.3) (5.0)

Returns (%)ROCE (Pre-tax) 10.7 9.2 6.7 2.9 2.1 2.4

Angel ROIC (Pre-tax) 20.8 15.7 13.1 11.8 11.6 9.9

ROE 20.3 14.9 12.9 9.6 8.8 7.6

Turnover ratios (x)Asset Turnover (Gross Block) 1.0 1.2 0.9 0.9 0.9 0.7

Inventory / Sales (days) 60 61 61 79 105 98

Receivables (days) 50 65 68 43 33 33

Payables (days) 175 132 139 166 201 191

Wcap cycle (ex-cash) (days) 181 183 191 178 200 193

Solvency ratios (x)Net debt to equity 2.2 1.4 1.6 2.3 2.3 2.5

Net debt to EBITDA 4.8 4.9 5.1 6.5 6.2 6.5

Interest Coverage 3.0 2.6 2.1 1.7 1.6 1.6




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Angel Broking Pvt. 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 Pvt. 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 thelatest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates mayhave investment positions in the stocks recommended in this report.

Disclosure of Interest Statement Ashoka Buildcon

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%)

Documents

Ashoka Buildcon, 1Q FY 2014