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8/22/2019 Crompton Greaves, 1Q FY 2014
1/12
Please refer to important disclosures at the end of this report 1
Quarterly Data (Consolidated)(` cr) 1QFY14 1QFY13 % chg (yoy) 4QFY13 % chg (qoq)Revenue 3,157 2,811 12.3 3,387 (6.8)EBITDA 145 167 (13.2) 779 (81.4)
EBITDA margin (%) 4.6 5.9 (135)bp 2.3 228bp
Adj. PAT 60 86 (30.1) 25 143.2Source: Company, Angel Research
For 1QFY2014, Crompton Greaves reported a 12.3% yoy growth in its top-line to
`3,157cr (compared to our estimate of `3,011cr) due to better-than-expected
revenues from the domestic consumer products segment (up 20.6% yoy to`789cr). However, Net profit came in below our estimate of `67cr, declining by
30.1% yoy to `60cr (due to increase in interest cost from `10cr to `20cr).
Reduction in losses of overseas operations: In the last few quarters, the companysinternational business has been a drag on consolidated margins due to its
Belgium facilitys restructuring. However, international operations are showing
signs of recovery, reporting a reduction in EBITDA losses from `64cr in
4QFY2013 to `8cr in 1QFY2014. Belgium and Hungary units reported positive
EBITDA in 1QFY2014. However, overseas operations are still in the negative due
to losses in Canada and in the US subsidiary.
Order intake and backlog: The consolidated order intake for 1QFY2014 declinedby 10.2% yoy to `2,441cr, mainly on account of sluggish ordering from Middle-
East and the US. Order intake in the power segment declined 11.0% yoy to
`1,886cr, while that of industrial segment declined by 7.7% yoy to `534cr. The
order backlog stood at `9,771cr, increasing 6.5% yoy.
Outlook and Valuation: Although the company is expected to register a moderatesales growth, supported by healthy order backlog, its overseas operating margins are
expected to remain under pressure for the next few quarters. We are of the opinion
that CGs margins have bottomed out in FY2013 and we expect the operating margin
to gradually improve over the next year. Given the attractive valuation (stock trading
at 0.5x FY2014E EV/Sales compared to its five year trading range of 0.6x to 1.6x and
median of 1.1x), we maintain our Buy recommendation on the stock. We haveassigned a multiple of 0.7x EV/Sales to arrive at a target price of `103.Key Financials (Consolidated)Y/E March (` cr) FY2012 FY2013 FY2014E FY2015EOperating Income 11,249 12,094 13,418 14,654% chg 12.4 7.5 10.9 9.2
Adj. PAT 374 85 372 499% chg (59.7) (77.4) 340.4 34.1
EBITDA (%) 7.1 3.2 5.8 6.7
EPS (`) 5.8 (0.6) 5.8 7.8P/E (x) 15.1 - 15.1 11.3
P/BV (x) 1.6 1.6 1.5 1.3
RoE (%) 10.9 2.4 10.1 12.5
RoCE (%) 13.4 3.7 10.0 12.3
EV/Sales (x) 0.5 0.5 0.5 0.5
EV/EBITDA (x) 7.0 16.8 8.9 7.2
Source: Company, Angel Research
BUYCMP `88
Target Price `103
Investment Period 12 months
Stock Info
Sector
Net Debt (`cr) 978
Bloomberg Code
Shareholding Pattern (%)
Promoters 41.7
MF / Banks / Indian Fls 23.7
FII / NRIs / OCBs 16.0
Indian Public / Others 18.7
Abs. (%) 3m 1yr 3yr
Sensex (6.2) 7.2 2.9
CG (10.4) (25.1) (68.7)
Reuters Code CRG.BO
CRG@IN
BSE Sensex 18,665
Nifty 5,519
Avg. Daily Volume 438,992
Face Value (`) 2
Beta 1.4
52 Week High / Low 142/72
Capital Goods
Market Cap (`cr) 5,639
Amit Patil022-39357800 Ext: 6839
Crompton GreavesPerformance Highlights
1QFY2014 Result Update | Capital Goods
August 8, 2013
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Crompton Greaves| 1QFY2014 Result Update
August 8, 2013 2
Exhibit 1:Quarterly performance (consolidated)
(` cr) 1QFY14 1QFY13 % chg (yoy) 4QFY13 % chg (qoq) FY2013 FY2012 % chg (yoy)Net Sales 3,157 2,811 12.3 3,387 (6.8) 12,094 11,249 7.5Other operating income - - - - -Total income 3,157 2,811 12.3 3,387 (6.8) 12,094 11,249 7.5Stock adjustments 543 (297) 177 (251) 516
Raw Material 2,332 2,173 7.3 2,265 2.9 8,597 7,169 19.9
(% of total income) 69.6 66.7 2.9 72.1 69.0 68.3
Employee Cost 449 421 6.7 438 2.6 1,740 1,466 18.7
(% of total income) 14.2 15.0 12.9 14.4 13.0
Other Expenses 365 348 4.9 430 (15.1) 1,625 1,294 25.6
(% of total income) 11.6 12.4 12.7 18.9 18.0
Total Expenditure 3,012 2,644 13.9 3,309 (9.0) 11,711 10,445 12.1EBITDA 145 167 (13.2) 779 (81.4) 383 804 (52.3)(EBITDA %) 4.6 5.9 (135) 2.3 3.2 7.1
Interest 20 10 103.6 21 (3.3) 71 46 53.1
Depreciation 53 47 13.1 45 16.4 203 260 (21.9)
Other Income 35 19 84.1 5 587.2 75 52 44.0
PBT 107 129 (17.2) 17 533.3 185 550 (66.4)PBT (%) 3.4 4.6 0.5 1.5 4.9
Total Tax 46 45 4.2 (8) (696.9) 101 182 (44.6)
(% of PBT) 43.3 34.4 (45.9) 54.6 33.1
Reported PAT (After MI) 60 86 (30.1) 25 143.2 84 368 (77.2)PAT Margins(%) 1.9 3.1 0.7 0.7 3.3
Extra ordinary exp/(inc) 0 0 0 121 -
Adj PAT 60 86 (30.1) 25 143.2 (37) 368EPS (`) 0.9 1.3 (30.1) 0.4 143.2 (0.6) 5.8
Source: Company, Angel Research
Exhibit 2:Actual vs Estimates
Actual Estimates Var (%)Revenue 3,157 3,011 4.9EBITDA 145 148 (1.9)
PAT 60 67 (9.8)
Source: Company, Angel Research
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August 8, 2013 3
Exhibit 3:Segment-wise performance (Standalone)
Y/E March (` cr) 1QFY14 1QFY13 % chg (yoy) 4QFY13 % chg (qoq) FY2013 FY2012 % chg (yoy)RevenuePower Systems 565 595 (5.1) 836 (32.5) 2,725 2,800 (2.7)Consumer Products 789 654 20.6 748 5.5 2,593 2,134 21.5
Industrial Systems 370 339 9.4 395 (6.3) 1,499 1,520 (1.4)
Others 110 86 28.4 97 13.9 377 78 386.2
Total 1,834 1,673 9.6 2,076 (11.7) 7,194 6,531 10.1EBITPower Systems 46 56 (18.7) 59 (22.8) 231 322 (28.5)
Consumer Products 94 85 10.5 74 26.9 278 263 5.8
Industrial Systems 42 43 (1.2) 52 (18.7) 213 225 (5.5)
Others (4) 4 (215.8) (2) 118.9 11 (11) (201.0)
Total 178 188 (5.5) 184 (3.1) 732 800 (8.5)Revenue mix (%)Power Systems 30.8 35.6 40.3 37.9 42.9
Consumer Products 43.0 39.1 36.0 36.0 32.7
Industrial Systems 20.2 20.2 19.0 20.8 23.3
Others 6.0 5.1 4.7 5.2 1.2
EBIT Margin (%)Power Systems 8.1 9.5 7.1 8.5 11.5
Consumer Products 11.9 13.0 9.9 10.7 12.3
Industrial Systems 11.5 12.7 13.2 14.2 14.8
Others (4.0) 4.4 (2.1) 2.8 (13.6)
Source: Company, Angel Research
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Crompton Greaves| 1QFY2014 Result Update
August 8, 2013 4
Exhibit 4:Segment-wise performance (Consolidated)
Y/E March (` cr) 1QFY14 1QFY13 % chg (yoy) 4QFY13 % chg (qoq) FY2013 FY2012 % chg (yoy)RevenuePower Systems 1,818 1,676 8.5 2,060 (11.7) 7,336 7,247 1.2Consumer Products 789 654 20.6 748 5.5 2,593 2,134 21.5
Industrial Systems 452 405 11.6 496 (8.9) 1,835 1,849 (0.8)
Others 113 90 25.8 99 13.7 390 93 318.3
Total 3,172 2,825 12.3 3,403 (6.8) 12,153 11,323 7.3EBITPower Systems 27 43 (36.3) (59) (146.4) (110) 251 (144.0)
Consumer Products 94 85 10.5 74 26.9 278 263 5.8
Industrial Systems 39 36 5.8 56 (31.1) 214 210 1.6
Others (4) 4 (201.5) (2) 164.9 12 (8) (244.3)
Total 156 168 (7.4) 70 123.0 393 716 (45.2)Revenue mix (%)Power Systems 57.3 59.3 60.5 60.4 64.0
Consumer Products 24.9 23.1 22.0 21.3 18.8
Industrial Systems 14.3 14.3 14.6 15.1 16.3
Others 3.6 3.2 2.9 3.2 0.8
EBIT Margin (%)Power Systems 1.5 2.6 (2.8) (1.5) 3.5
Consumer Products 11.9 13.0 9.9 10.7 12.3
Industrial Systems 8.5 9.0 11.3 11.6 11.4
Others (3.5) 4.4 (1.5) 3.0 (8.6)
Source: Company, Angel Research
Reduction in losses of overseas business
In the last few quarters, the companys international business has been a drag on
its consolidated margins due to Belgium restructuring. However, international
operations are showing signs of recovery, reporting reduction in EBITDA losses
from `64cr in 4QFY2013 to `8cr in 1QFY2014. Belgium and Hungary units
reported a positive EBITDA in 1QFY2014. However, overseas operations are still in
the red due to losses in Canada and US units.
A new Management has been appointed at the Canada unit which plans
to improve Canadas performance by the end of FY2014. However, the
US power system plant is likely to remain in losses considering the weak ordering
scenario in the US.
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Crompton Greaves| 1QFY2014 Result Update
August 8, 2013 5
Exhibit 5:Employee expense as % of total revenuemoderating
Source: Company, Angel Research
Exhibit 6:Reduction in losses of Internationaloperations
Source: Company, Angel Research
Standalone business margin expands sequentially
Although steady ordering from Power Grid Corporation of India (PGCIL) continues
in spite of slowdown in generation capacity addition, CG has seen intense
competition from domestic as well as Chinese and Korean companies in the last
few quarters, which had impacted its market share and margins. However, CG has
bounced back in 1QFY2014 with standalone business margins expanding by
148bp sequentially to 8.4% (although a 117bp contraction yoy).
Exhibit 7:Consolidated: EBITDA and EBITDA margin
Source: Company, Angel Research
Exhibit 8:Standalone: EBITDA and EBITDA margin
Source: Company, Angel Research
Consumer Products
For the domestic Consumer Products segment, the company reported a robust
revenue growth of 20.6% yoy to `789cr in 1QFY2014 (`654cr in corresponding
quarter last year). The company is extending its reach (adding distributors and
retailers) in order to maintain the growth momentum. However, the OPM
contracted by 109bp yoy to 11.9%.
24 2522
16
24
21 22
27 28 27 2825 25
5 5 6 56 6 6 5
6 6 6 5 6
0
5
10
15
20
25
30
1QFY11
2QFY11
3QFY11
4QFY11
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
Inte rnational Subs Standalone busine ss
9.210.7 11.2 9.5
(0.5)
5.1
0.5 1.4 0.7(0.8)
(10.6)
(4.8) (0.6)
(17)
(12)
(7)
(2)
3
8
13
18
(1,500)
(1,000)
(500)
-
500
1,000
1,500
1QFY11
2QFY11
3QFY11
4QFY11
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
EBIDTA (`cr) EBIDTA Margins (%)
12.913.9 14.2
12.8
7.58.4
6.0 6.9
5.94.7
0.1
2.3
4.6
0.0
4.0
8.0
12.0
16.0
20.0
-
90
180
270
360
450
1QFY11
2QFY11
3QFY11
4QFY11
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
EBITDA (` cr, LHS) EBITDAM (%, RHS)
15.6 16.016.3
15.0
12.711.1 10.8 10.2 9.5 8.8
7.6 6.98.4
0.0
4.0
8.0
12.0
16.0
20.0
-
90
180
270
360
1QFY11
2QFY11
3QFY11
4QFY11
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
EBITDA (` cr, LHS) EBITDAM (%, RHS)
8/22/2019 Crompton Greaves, 1Q FY 2014
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Crompton Greaves| 1QFY2014 Result Update
August 8, 2013 6
Industrial Systems
The Industrial systems Segments revenue grew by 11.6% yoy on a consolidated
basis to `452cr However, on the margins front, the segment witnessed a
contraction in EBIT margin by 47bp yoy to 8.5%.
Order book:
The consolidated order intake for 1QFY2014 declined by 10.2% yoy to `2,441cr,
mainly on account of sluggish ordering from the Middle-East and US. Order intake
in the Power segment declined 11.0% yoy to `1,886cr, while that of Industrial
segment declined by 7.7% yoy to `534cr. The order backlog stood at `9,771cr,
increasing 6.5% yoy.
Exhibit 9:Order intake
Source: Company, Angel Research
Exhibit 10:Order backlog
Source: Company, Angel Research
A play on margin recovery
Revival in International subsidiaries key to margin expansion:
CGs Power and Industrial segment are facing several headwinds on the
international and domestic business fronts. As far as the domestic Power segment
(standalone) is concerned, even though PGCIL orders have retained traction,
CG has been facing intense competition leading to falling margins as well as
declining market share. CGs overseas business has suffered on account of
slowdown in Europe and transfer of orders from the Belgium unit to Hungary unit,
leading to execution delays. The restructuring at Belgium unit has been a drag on
profitability of the company. However, we are of the opinion that CGs margins
have bottomed out in FY2013 and we expect operating margin to gradually
improve over the next 14 to 18 months.Outlook and valuation
Although the company is expected to register a moderate sales growth, supported by
healthy order backlog, its overseas operating margins are expected to remain under
pressure for the next few quarters. We are of the opinion that CGs margins have
bottomed out in FY2013 and we expect the operating margin to gradually improve
over the next year. Given the attractive valuation (stock trading at 0.5x FY2014E
EV/Sales compared to its five year trading range of 0.6x to 1.6x and median of 1.1x),
we maintain our Buy recommendation on the stock. We have assigned a multipleof 0.7x EV/Sales to arrive at a target price of `103.
1,7
04
2,2
60
3,4
01
2,8
96
2,7
18
2575
2267
2983
2441
-
700
1,400
2,100
2,800
3,500
4,200
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
(`c
r)
7,0
88
7,1
20
8,0
00
8366
9172
9400
9200
9126
9771
4
0
1417
29
32
15
97
0
5
10
15
20
25
30
35
-
1,500
3,000
4,500
6,000
7,500
9,000
10,500
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
%(`
cr)
order backlog order backlog
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Crompton Greaves| 1QFY2014 Result Update
August 8, 2013 7
Exhibit 11:One-year forward P/E band
Source: Company, Angel Research
Exhibit 12:Peer comparison
Company Reco. CMP Tgt. price Upside P/BV(x) P/E(x) FY2013-15E RoE (%)(`) (`) (%) FY14E FY15E FY14E FY15E EPS CAGR FY14E FY15E
ABB* Neutral 475 - - 3.8 3.6 41.2 28.0 61.6 9.3 13.1
BHEL Neutral 116 - - 1.2 1.1 5.7 6.8 (20.9) 23.1 17.2
BGR Energy Neutral 85 - - 0.5 0.4 3.9 3.5 3.6 22.3 20.3
Crompton Greaves Buy 88 103 17.2 1.5 1.3 15.1 11.3 - 10.1 12.5Jyoti Structures Neutral 17 - - 0.2 0.2 3.7 2.6 17.7 5.5 7.4
KEC International Buy 25 36 43.0 0.5 0.5 4.9 3.1 78.4 16.6 21.5
Thermax Neutral 559 - - 3.2 2.8 19.4 17.0 10.7 17.2 17.3
Source: Company, Angel Research Note*: December year end.
Company Background
Crompton Greaves (CG), part of the US$4bn Avantha Group, is one of the
leading players in the power T&D equipment business in India. The company
operates across three segments - Power Systems, Consumer Products And
Industrial Systems. CG is a globally diversified company and derives ~50% of itsorder backlog from international operations, led by a series of acquisitions
undertaken over FY2006-12. Europe and North America are the two biggest
markets outside Asia and jointly account for ~40% of the company's order
backlog.
0
80
160
240
320
400
Apr-07
Sep-0
7
Feb-0
8
Jul-08
Dec-0
8
May-0
9
Oct-09
Mar-10
Aug-1
0
Jan-1
1
Jun-1
1
Nov-1
1
Apr-12
Sep-1
2
Feb-1
3
Jul-13
(`)
Share Price (`) 6x 12x 18x 24x
8/22/2019 Crompton Greaves, 1Q FY 2014
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Crompton Greaves| 1QFY2014 Result Update
August 8, 2013 8
Profit & Loss statement (consolidated)
Y/E March (` cr) FY2010 FY2011 FY2012 FY2013 FY2014E FY2015EOperating income 9,141 10,005 11,249 12,094 13,418 14,654% chg 4.6 9.5 12.4 7.5 10.9 9.2Total Expenditure 7,864 8,661 10,445 11,711 12,645 13,666EBITDA 1,277 1,344 804 383 772 988% chg 28.3 5.2 (40.2) (52.3) 101.5 27.9
(% of Net Sales) 14.0 13.4 7.1 3.2 5.8 6.7
Depreciation 155 194 260 203 218 239
EBIT 1,122 1,150 544 180 554 749
% chg 28.4 2.5 (52.7) (66.8) 207.6 35.1
(% of Net Sales) 12.3 11.5 4.8 1.5 4.1 5.1
Interest & other Charges 43 34 57 71 83 96
Other Income 110 113 63 75 84 91
(% of PBT) 9.2 9.2 11.4 40.8 15.1 12.3
Recurring PBT 1,189 1,229 550 185 555 744
% chg 37.1 3.4 (55.3) (66.4) 200.3 34.2
Extraordinary Inc/(exp) 35 (38) 0 (121) 0 0
PBT 1,224 1,191 550 64 555 744Tax 365 310 182 101 183 246
(% of PBT) 30.7 25.2 33.1 54.6 33.0 33.0
PAT (reported) 859 881 368 (37) 372 499
Add: Share of earnings of asso. 3 8 5 (0) (0) (0)
Less: Minority interest (MI) 3 0.4 (1) (1) (1) (1)
Prior period items 0 0 0 0 0 0
Reported PAT (After MI) 860 889 374 (36) 372 499Adjusted PAT 825 927 374 85 372 499% chg 47.3 12.4 (59.7) (77.4) 340.4 34.1
(% of Net Sales) 9.0 9.3 3.3 0.7 2.8 3.4
Basic EPS (`) 12.9 14.4 5.8 (0.6) 5.8 7.8Fully Diluted EPS ( ) 12.9 14.4 5.8 (0.6) 5.8 7.8% chg (15.8) 12.4 (59.7) (109.8) (1,122.0) 34.1
Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable withprevious year numbers
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August 8, 2013 9
Balance Sheet (consolidated)
Y/E March (` cr) FY2010 FY2011 FY2012 FY2013E FY2014E FY2015ESOURCES OF FUNDSEquity Share Capital 128 128 128 128 128 128Preference Capital - - - - - -
Reserves & Surplus 2,376 3,146 3,483 3,433 3,701 4,061
Shareholders Funds 2,504 3,275 3,611 3,562 3,830 4,189Minority Interest 4 16 16 9 9 9
Total Loans 501 395 985 1,851 2,136 2,336
Deferred Tax Liability 95 124 136 147 147 147
Others - 266 235 218 218 218
Total Liabilities 3,104 4,076 4,982 5,788 6,341 6,900APPLICATION OF FUNDSNet Block 1,262 1,837 2,148 2,956 3,258 3,539Capital Work-in-Progress 114 104 110 111 110 110
Goodwill - - - - - -
Investments 254 272 285 290 200 200Deferred Tax Asset 90 108 187 315 315 315
Current Assets 4,402 4,967 6,036 6,481 6,879 7,372Cash 669 298 498 583 443 391
Loans & Advances 246 436 522 382 613 667
Inventories 1,041 1,189 1,223 1,637 1,397 1,526
Debtors 2,146 2,543 3,143 3,160 3,750 4,095
Others 300 501 649 719 677 694
Current liabilities 3,017 3,213 3,783 4,365 4,421 4,636Net Current Assets 1,385 1,755 2,253 2,116 2,458 2,736
Mis. Exp. not written off - - - - - -
Total Assets 3,104 4,076 4,982 5,788 6,341 6,900Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with
previous year numbers
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Cash Flow Statement (consolidated)
Y/E March (` cr) FY2010 FY2011 FY2012 FY2013E FY2014E FY2015EProfit before tax 1,189 1,229 550 64 555 744Depreciation 155 194 260 203 218 239(Inc)/Dec in Working Capital 54 (507) (228) 19 (483) (330)
Others (50) (15) 75 71 83 96
Direct taxes paid (292) (334) (244) (101) (183) (246)
Cash Flow from Operations 1,056 567 413 256 190 504(Inc.)/Dec.in Fixed Assets (290) (746) (372) (409) (429) (520)
(Inc.)/Dec. in Investments (294) (10) (90) - - -
Other income - - - - - -
Cash Flow from Investing (585) (756) (462) (409) (429) (520)Issue of Equity - - - - - -
Inc./(Dec.) in loans (217) (38) 423 300 285 200
Dividend Paid (Incl. Tax) (116) (119) (119) 10 (104) (139)
Others (45) (14) (55) (71) (83) (96)
Cash Flow from Financing (378) (172) 248 239 98 (35)Inc./(Dec.) in Cash 94 (361) 199 86 (141) (51)
Opening Cash balances 566 659 298 498 583 443Closing Cash balances 659 298 498 583 443 391
Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable withprevious year numbers
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Crompton Greaves| 1QFY2014 Result Update
August 8, 2013 11
Key Ratios
Y/E March FY2010 FY2011 FY2012 FY2013E FY2014E FY2015EValuation Ratio (x)P/E (on FDEPS) 6.8 6.1 15.1 (154.7) 15.1 11.3P/CEPS 5.8 5.0 8.9 19.6 9.6 7.6
P/BV 2.3 1.7 1.6 1.6 1.5 1.3
Dividend yield (%) 1.8 1.8 1.8 (0.2) 1.8 2.5
EV/Sales 0.6 0.5 0.5 0.5 0.5 0.5
EV/EBITDA 4.1 4.0 7.0 16.8 8.9 7.2
EV / Total Assets 1.7 1.3 1.1 1.1 1.1 1.0
OB/Sales 0.7 0.7 0.7 0.6 0.4 0.2
Per Share Data (`)EPS (Basic) 12.9 14.4 5.8 (0.6) 5.8 7.8
EPS (fully diluted) 12.9 14.4 5.8 (0.6) 5.8 7.8
Cash EPS 15.3 17.5 9.9 4.5 9.2 11.5
DPS 1.5 1.6 1.6 (0.2) 1.6 2.2
Book Value 38.8 50.8 56.3 55.5 59.7 65.3
DuPont Analysis (%)EBIT margin 12.3 11.5 4.8 1.5 4.1 5.1
Tax retention ratio (%) 69.3 74.8 66.9 45.4 67.0 67.0
Asset turnover (x) 1.8 1.8 1.6 1.5 1.5 1.5
RoIC (Pre-tax) 22.6 20.1 7.9 2.2 6.1 7.5
RoIC (Post-tax) 15.6 15.1 5.3 1.0 4.1 5.0
Cost of Debt (Post Tax) 4.9 5.7 5.5 2.3 2.8 2.9
Leverage (x) (0.1) (0.1) (0.0) 0.1 0.3 0.3
Operating ROE 14.6 13.8 5.3 0.9 4.4 5.7
Returns (%)RoCE (Pre-tax) 39.0 33.7 13.4 3.7 10.0 12.3
Angel RoIC (Pre-tax) 22.9 20.5 8.0 2.2 6.1 7.6
RoE 38.0 32.1 10.9 2.4 10.1 12.5
Turnover ratios (x)Asset Turnover (Gross Block) (x) 3.0 3.0 2.7 2.5 2.4 2.4
Inventory / Sales (days) 43 41 39 43 41.3 36.4
Receivables (days) 84 86 92 95 94.0 97.7
Payables (days) 139 133 130 137 135.4 128.9WC cycle (ex-cash) (days) 24 37 43 39 39.5 46.3
Solvency ratios (x)Net debt to Equity (0.2) (0.1) (0.0) 0.2 0.3 0.3
Net debt to EBITDA (0.4) (0.2) (0.0) 2.0 1.5 1.5
Interest Coverage 26.2 33.5 9.6 2.5 6.7 7.8
Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable withprevious year numbers
8/22/2019 Crompton Greaves, 1Q FY 2014
12/12
Crompton Greaves| 1QFY2014 Result Update
August 8 2013 12
Research Team Tel: 022 3935 7800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Crompton Greaves
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%)