NCC 4Q FY 2013

7/30/2019 NCC 4Q FY 2013

1/11

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

Quarterly Highlights StandaloneY/E March (` cr) 4QFY13 4QFY12 3QFY13 % chg (yoy) % chg (qoq)Net sales 1,741 1,755 1,184 (0.8) 47.1Operating profit 157 102 86 53.9 82.9

Net profit 27 11 11 151.9 151.2Source: Company, Angel Research

NCC posted poor set of numbers for 4QFY2013 which were below our and

street expectations. The current outstanding order book of NCC stands at

`18,553cr (3.2x trailing revenues) in 4QFY2013, indicating a decline of 8% yoy.

During the year, the company secured orders worth `4,813cr (excluding slowing

moving order worth`853cr in the power segment).

Deleveraging balance sheet through monetization of assets: On the top line front,NCC reported revenues of`1,741cr in 4QFY2013, indicating a decline of 0.8%

yoy, which was lower than our estimate of `1,879cr respectively. This is mainly

due to (a) slower-than-expected execution in some projects particularly in power

segment (delay at clients side) and (b) depleting order book. On the EBITDAM

front, owing to profit from sale of real estate asset, the companys EBITDA

margins grew by 320bp yoy to 9.0% (our estimate was 8.5%) in 4QFY2013.

Interest cost came in at`113cr a growth of 14.9% yoy. On the bottom line level, NCC

reported a yoy growth of 151.9% to `27cr, lower than our and consensus estimate

owing to lower-than-expected revenue performance and higher tax rate (45%).

Outlook and valuation: During the quarter, NCC has reduced its debt by`297crto `2,225cr as on 4QFY2013 and is in process of reducing its debt to below

`2,000cr through stake sale in two of its road BOT projects (Western UP tollways

and Bangalore Elavated expressway), continued monetization of its land bank and

completion of stake sale in the Himachal Sorang project. The stock currently

trades at a PE of 3.0x and 2.2x (excluding subsidiaries valuation) our FY2014

and FY2015 EPS estimates. Further, on account of the stake sale initiated by thecompany in some of its projects and decline in its stock price, we upgrade ourrecommendation on the stock to Buy with a target price of `42.Key financials (Standalone)

Y/E March (` cr) FY2012 FY2013E FY2014E FY2015ENet Sales 5,250 5,725 6,167 6,945% chg 3.5 9.0 7.7 12.6

Adj.Net Profit 36.0 62.7 68.6 93.3% chg (78.0) 74.2 9.4 36.1

EBITDA (%) 7.6 8.2 8.0 8.2

FDEPS (`) 1.4 2.4 2.7 3.6P/E (x) 22.3 12.8 11.7 8.6

P/BV (x) 0.3 0.3 0.3 0.3

RoE (%) 1.5 2.6 2.7 3.6

RoCE (%) 6.6 8.2 8.4 9.2

EV/Sales (x) 0.6 0.5 0.5 0.5

EV/EBITDA (x) 7.4 5.9 6.0 5.5

OB/sales(x) 3.3 2.5 3.0 3.2

Order inflows 10,118 4,813 9,918 11,902

%chg 48.2 (52.4) 106.1 20.0

Source: Company, Angel Research

BUYCMP `31

Target Price `42

Investment Period 12 Months

Stock Info

Sector

Net Debt (` cr) 5,145

Bloomberg Code

Shareholding Pattern (%)

Promoters 20.3

MF / Banks / Indian Fls 10.4

FII / NRIs / OCBs 39.7Indian Public / Others 29.7

Abs. (%) 3m 1yr 3yr

Sensex 0.2 23.4 19.5

NCC (27.2) (0.3) (80.3)

Face Value (`)

BSE Sensex

Nifty

Reuters Code

802

1.8

61/28

287,581

Infrastructure

Avg. Daily Volume

Market Cap (` cr)

Beta

52 Week High / Low

2

19,674

5,967

NGCN.BO

NJCC@IN

Viral Shah022-39357800 Ext: 6842

[email protected]

NCCPerformance Highlights

4QFY2013 Result Update | Infrastructure

May 23, 2013

7/30/2019 NCC 4Q FY 2013

2/11

NCC | 4QFY2013 Result Update

May 23, 2013 2

Exhibit 1:Quarterly performance (Standalone)

Y/E March (` cr) 4QFY13 4QFY12 3QFY13 % Chg (yoy) % Chg (qoq) FY2013 FY2012 % ChgNet sales 1741 1755 1184 (0.8) 47.1 5725 5250 9.0Total expenditure 1584 1653 1098 (4.1) 44.3 5254 4851 8.3Operating profit 157 102 86 53.9 82.9 471 399 18.0OPM (%) 9.0 5.8 7.2 320bp 177bp 8.2 7.6 62bp

Interest 113 98.4 99 14.9 14.3 407 384 6.0

Depreciation 23 21.7 23 5.8 (2.1) 92 83 10.9

Non operating income 29 33.6 48 (14.1) (40.4) 126 121 4.4

Nonrecurring items 0 0 0 0 0 0 0 -

Profit before tax 50 15 12 221.1 320.4 98 53 85.5Tax 22.5 4.7 1.0 380.3 2145.8 35.1 16.9 107.0

Reported net profit 27 11 11 151.9 151.2 63 36 75.4PAT (%) 1.6 0.6 0.9 95bp 65bp 1.1 0.7 41bp

FDEPS 1.1 0.4 0.4 - 151.2 2.4 1.4 75.4Source: Company, Angel Research

Exhibit 2:4QFY2013 Actual vs Estimates

( ` cr) Estimates Actual Variation (%)Net Sales 1,879 1,741 (7.3)

EBITDA 160 157 (1.8)

Interest 103 113 9.8

Tax 23 23 (3.0)

PAT 45 27 (39.7)


Top-line came in below estimates

On the top line front, NCC reported revenues of `1,741cr in 4QFY2013,

indicating a decline of 0.8% yoy, which was lower than our estimate of

`1,879cr respectively. This is mainly due to (a) due to slower-than-expected

execution in some projects particularly power segment (delay at clients side)

and (b) depleting order book.

During the quarter, NCC has reduced its debt by`297cr to `2,225cr as on

4QFY2013 and is in process of reducing its debt to below `2,000cr through stake

sale in two of its road BOT projects (Western UP tollways and Bangalore Elavated

expressway), continued monetization of its land bank and completion of stake sale

in the Himachal Sorang project.

7/30/2019 NCC 4Q FY 2013

3/11


May 23, 2013 3

Exhibit 3:Execution continues to disappoint


Exhibit 4:Muted order inflows for FY2013


Projects update

Pondicherry-Tindivanam: Toll collection for the project decline by 12.5% qoqto `3.5lakhs/day, much lower than the breakeven level of `7-8lakhs/day.

However, the company believes that toll revenue will pick up going ahead.

Western UP: Due to mining ban in the state imposed by the government, tollcollection is currently at`18-20lakh/day. Going ahead, with lifting of the mining

ban, the Management expects toll collection to increase to`24lakh/day.

Bangalore Elevated Toll Way (BETL): During the quarter, the toll collection hasincreased to`25lakh/day against`20-22lakh/day in 3QFY2013.

Himachal Sorang: As per the Management, the company is in an advanced stageof negotiation with some investors for part/full stake sale in the Himachal Sorang

project. The Management expects the deal to be completed within a period of 9-

10 months. Further, the company is also in talks with some regulatory authorities

for signing short term power purchase agreement (PPA).

Nelcast Power Project (1,320MW): The construction activity for the 1,320MW(660MW x 2) Krishnapatnam power project is going as per schedule and the

company has already placed orders for BTG. However, the company has not

signed any power purchase agreement (PPA) till date and is hopeful of tying up for

one within the next few quarters. The company has participated in case- I biddingin UP and also would participate for case- I in Tamil Nadu and Karnataka.

Real estate asset sale boost EBITDAM

Company reported an EBITDA of `157cr, a growth of 53.9% yoy; EBITDA

margins grew by 320bp yoy at 9.0% were above our estimate of 8.5%. The

EBIDTA margin includes profit from sale of real estate asset and non recurring

expense of`40cr. Adjusting to this, EBITDAM came in at 8.4% in 4QFY2013.

Interest cost came in at `113cr in 4QFY2013 a growth of 14.9% yoy. On the

bottom line level, NCC reported a yoy growth of 151.9% to `27cr, however was

lower than our and consensus estimate owing to lower-than-expected revenue

performance and higher effective tax rate (45%).

1090

1264

1755

1472

1328

1184

1741

(9.2)(5.4)

21.0

29.0

21.8

(6.3)

(0.8)

(15.0)

(10.0)

(5.0)

-

5.0

10.0

15.020.0

25.0

30.0

35.0

0

200

400

600

800

1,000

1,2001,400

1,600

1,800

2,000

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

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

16,

570

21,

990

20,

196

20,

520

19,

639

18,

799

18,

553

3.1

27.3 24.8 26.8

18.5

(14.5)

(8.1)

(20.0)

(15.0)

(10.0)

(5.0)

0.0

5.0

10.0

15.0

20.0

25.0

30.0

-

5,000

10,000

15,000

20,000

25,000


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

7/30/2019 NCC 4Q FY 2013

4/11


May 23, 2013 4

Exhibit 5:EBITDA margins trend


Exhibit 6:Low NPMs a cause of worry


Order book analysis

NCC secured net orders worth `4,813cr (excluding slow moving power order of

`853cr) in FY2013, thus taking the order book to `18,553cr indicating a decline

of 8% yoy. The order backlog converts into an order book to sales of 3.2x trailing

revenues. Going forward, we estimate order inflows of`9,918cr and`11,902cr in

FY2014 and FY2015 respectively.

Exhibit 7:Order backlog of`18,553cr (as of 4QFY2013,%)


Change in estimates

Due to slower execution and depleting order book in FY2013, we have revised our

estimate for FY2014 and also introduced our FY2015 estimate.

Exhibit 8:Change in estimates to factor in lower top-line growth and higher interest cost

FY2014E FY2015EEarlier estimates Revised estimates Variation (%) Earlier estimates Revised estimates Variation (%)

Revenue 6,576 6,167 (6.2) 6,945 6,945 0.0

EBITDA margin (%) 8.2 8.0 (2.6) 8.2 8.2 0.0PAT 105 69 (34.7) 93 93 0.0


103

77

102

117

112

86

157

9.5

6.1 5.8

7.9

8.4

7.2

9.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

0

20

40

60

80

100

120

140

160

180


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

11

(9)

11

17

8

11

27

1.0

(0.8)

0.6

1.1

0.6

0.9

1.6

(1.0)

(0.5)

0.0

0.5

1.0

1.5

2.0

(15)

(10)

(5)

0

5

10

15

20

25

30


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

31%

16%

9%

5%

26%

1%2%

10%Buildings, Roads & Oil &Gas

Water, Env. & Railways

Irrigation

Electricals

Power

Mining

Metals

International

7/30/2019 NCC 4Q FY 2013

5/11


May 23, 2013 5

Outlook and valuation

During the quarter, NCC has reduced its debt by`297cr to `2,225cr as on

4QFY2013 and is in process of reducing its debt to below `2,000cr through stake

sale in two of its road BOT projects (Western UP tollways and Bangalore Elavatedexpressway), continued monetization of its land bank and completion of stake sale

in the Himachal Sorang project. The company has already signed a term sheet

with an investor for one of its road BOT project (Western UP tollways) during the

quarter. The stock currently trades at a PE of 3.0x and 2.2x (excluding subsidiaries

valuation) our FY2013 and FY2014 EPS estimates. Further, on account of the stakesale initiated by the company in some of its projects and decline in its stock price,we upgrade our recommendation on the stock to Buy with a target price of `42.

Exhibit 9:Derivation of SOTP-based target price for NCC (FY2015E)

Particulars SegmentValue ( `

cr)Value per share

(`) BasisNCC Standalone Construction 466 18 P/E of 5x FY15 earnings

NCC - Internationalbusiness

Construction 109 4 P/E of 3x FY15 earnings

Total 576 22Road BOT

Brindavan Infra Annuity 37 1 NPV at CoE of 16%

Bangalore Elevated Toll 55 2 NPV at CoE of 16%

OB Infra Annuity 52 2 NPV at CoE of 16%

Western UP Toll 16 1 NPV at CoE of 16%

Pondicherry Tindivanam Toll 16 1 NPV at CoE of 16%

Total 175 7Power BOT

Himachal Sorang Merchant 115 4 P/BV multiple of 1x on FY12 end investment

NCC PowerPPA /Merchant

200 8 P/BV multiple of 0.5x on FY12 end investment

Total 315 12NCC Urban Infra +others

Real Estate 0 0No value ascribed on account of uncertainity relating to DubaiHarmony project

Grand Total 1,066 42Source: Company, Angel Research

Exhibit 10:Key assumptions

(` cr) FY2010 FY2011 FY2012 FY2013 FY2014E FY2015EOrder Inflow 8,914 6,828 10,118 4,813 9,918 11,902

Revenue 4,754 4,872 5,236 6,556 6,154 6,931

Order Backlog (Y/E) 15,370 16,180 20,197 18,553 21,832 26,173

OB to Sales ratio (x) 3.2 3.3 3.9 2.8 3.5 3.8


7/30/2019 NCC 4Q FY 2013

6/11


May 23, 2013 6

Exhibit 11:Recommendation summary

Company CMP TP Rating Top line (` cr) EPS (`) P/E OB/FY12 FY13E FY14E CAGR (%) FY12 FY13E FY14E CAGR (%) FY12 FY13E FY14E Sales(x)

ABL 202 255 Buy 1,853 1,928 2,234 9.8 16.0 18.0 22.2 17.7 12.6 11.2 9.1 2.3CCCL 12 - Neutral 1,931 2,281 2,492 13.6 (3.3) 0.7 2.0 - (3.6) 17.6 6.0 2.2

IRB Infra 122 157 Buy 3,687 3,997 4,312 8.1 16.7 15.7 16.6 (0.3) 7.3 7.8 7.3 2.4

ITNL 171 230 Buy 6,645 7,444 8,041 10.0 26.8 29.8 32.1 9.4 6.4 5.7 5.3 2.2

IVRCL 19 35 Buy 3,773 6,287 6,836 34.6 (3.9) 2.3 3.0 - - 8.2 6.3 4.9

JP Assoc. 67 90 Buy 13,358 14,850 15,631 8.2 2.2 2.5 2.9 13.8 30.6 26.6 23.6 -

L&T 1,419 1,761 Buy 60,873 68,946 78,040 13.2 67.5 77.9 88.3 14.4 21.0 18.2 16.1 2.5

NCC 31 42 Buy 5,725 6,167 6,945 10.1 2.4 2.7 3.6 22.0 12.8 11.7 8.6 3.2Punj Lloyd 47 - Neutral 11,717 12,954 14,740 12.2 (0.2) 0.5 0.9 - - 93.2 50.8 1.9

Sadbhav 107 153 Buy 1,565 2,511 2,736 32.2 1.5 7.3 7.8 131.3 73.6 14.8 13.7 3.3

Simplex In. 106 164 Buy 6,026 6,824 7,563 12.0 14.1 18.0 23.4 28.8 7.5 5.9 4.5 2.5

Unity Infra 31 45 Buy 2,180 2,455 2,734 12.0 12.7 14.6 14.9 8.0 2.4 2.1 2.1 2.0

ABL 202 255 Buy 1,853 1,928 2,234 9.8 16.0 18.0 22.2 17.7 12.6 11.2 9.1 2.3


Exhibit 12:SOTP break-up

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

ABL 87 34 - - 168 66 - - - - 255

CCCL 16 100 - - - - - - - - 16

IRB Infra 45 29 - - 112 71 - - - - 157

ITNL 80 35 - - 120 52 - - 30 13 230

IVRCL 15 43 - - - - 20 57 - - 35

JP Assoc. 24 27 23 25 - - - - 43 48 90

L&T 1,318 75 - - - - 443 25 - - 1,761

NCC 23 55 - - 7 17 - - 12 29 42Punj Lloyd 64 100 - - - - - - - - 64

Sadbhav 54 35 - - 99 65 - - - - 153

Simplex In. 164 100 - - - - - - - - 164

Unity Infra 45 100 - - - - - - - - 45


Company background

NCC, having started off as a building/industrial construction company, has

emerged as an EPC contractor with a diversified product portfolio. NCCs presence

across all the key infrastructure verticals: 1) roads; 2) buildings; 3) water; 4)

irrigation; 5) electrical; 6) power; 7) oil and gas; and 8) metals endows it with a

relatively de-risked business model. NCC has also ventured in international

geographies such as Oman and UAE, which further diversifies its business.

7/30/2019 NCC 4Q FY 2013

7/11


May 23, 2013 7

Profit & loss statement (Standalone)

Y/E March (` cr) FY2010 FY2011 FY2012 FY2013E FY2014E FY2015ENet Sales 4,764 5,065 5,248 5,659 6,154 6,931Other operating income 14.1 8.6 2.0 65.5 12.3 13.9Total operating income 4,778 5,074 5,250 5,725 6,167 6,945% chg 15.1 6.2 3.5 9.0 7.7 12.6

Total Expenditure 4,294 4,588 4,851 5,254 5,673 6,375R.M. consumed 1,766 1,756 1,961 2,080 2,232 2,507

Construction expenses 1,797 1,866 1,856 2,234 2,399 2,702

Employee expenses 184 244 240 243 286 329

SG&A 547 722 794 697 756 837

EBITDA 483 485 399 471 493 570% chg 29.4 0.4 (17.7) 17.9 4.8 15.6

(% of Net Sales) 10.1 9.6 7.6 8.2 8.0 8.2

Depreciation & Amortisation 53 69 83 92 102 116

EBIT 431 417 316 379 391 454% chg 34.5 (3.3) (24.1) 19.8 3.3 16.0

(% of Net Sales) 9.0 8.2 6.0 6.7 6.4 6.5

Interest & other Charges 196 257 384 407 423 465

Other Income 69 106 121 126 135 152

(% of PBT) 22.6 39.8 227.8 128.8 130.4 107.9

Share in profit of Associates - - - - - -

Recurring PBT 303 266 53 98 104 141% chg 33.0 (12.5) (80.1) 84.7 6.3 36.1

Extraordinary Expense/(Inc.) 49.6 - - - - -

PBT (reported) 353 266 53 98 104 141Tax 120.4 102.1 16.9 35.1 35.3 48.1

(% of PBT) 34.1 38.5 32.0 35.9 34.0 34.0

PAT (reported) 233 163 36 63 69 93Add: Share of earnings of asso. - - - - - -

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

Prior period items - - - - - -

PAT after MI (reported) 233 163 36 63 69 93ADJ. PAT 183 163 36 63 69 93% chg 19.0 (10.7) (78.0) 74.2 9.4 36.1(% of Net Sales) 3.8 3.2 0.7 1.1 1.1 1.3

Basic EPS (`) 9.5 6.4 1.4 2.4 2.7 3.6Fully Diluted EPS (`) 9.5 6.4 1.4 2.4 2.7 3.6% chg 41.4 (32.9) (78.0) 74.5 9.4 36.1

7/30/2019 NCC 4Q FY 2013

8/11


May 23, 2013 8

Balance sheet (Standalone)Y/E March (` cr) FY2010 FY2011 FY2012 FY2013E FY2014E FY2015ESOURCES OF FUNDSEquity Share Capital 51 51 51 51 51 51Share App Money - - - - - -

Reserves & Surplus 2,194 2,327 2,360 2,417 2,476 2,561

Shareholders Funds 2,246 2,379 2,411 2,468 2,528 2,612Minority Interest - - - - - -Total Loans 1,530 2,484 2,234 2,056 2,256 2,456

Deferred Tax Liability 25 31 25 23 23 23

Total Liabilities 3,801 4,894 4,671 4,547 4,807 5,091APPLICATION OF FUNDSGross Block 756 923 1,039 1,094 1,274 1,455

Less: Acc. Depreciation 202 249 313 405 507 623Net Block 554 675 726 690 768 831Capital Work-in-Progress 43 46 35 35 35 35

Goodwill - - - - - -

Investments 941 1,201 1,240 1,254 1,254 1,254Current Assets 4,108 4,947 6,052 6,149 6,514 7,046Inventories 754 896 1,234 1,426 1,539 1,712

Sundry Debtors 1,299 1,454 1,307 1,143 1,216 1,351

Cash 200 121 65 80 82 96

Loans & Advances 1,852 2,466 3,432 2,583 2,716 2,869

Other 3 9 15 916 961 1,018

Current liabilities 1,845 1,974 3,382 3,580 3,764 4,075

Net Current Assets 2,263 2,972 2,669 2,569 2,750 2,971Mis. Exp. not written off - - - - - -

Total Assets 3,801 4,894 4,671 4,547 4,807 5,091

7/30/2019 NCC 4Q FY 2013

9/11


May 23, 2013 9

Cash flow statement (Standalone)Y/E March (` cr) FY2010 FY2011 FY2012 FY2013E FY2014E FY2015EProfit before tax 353 266 53 98 104 141

Depreciation 38 46 64 92 102 116Change in Working Capital (477) (788) 246 116 (180) (206)

Less: Other income (69) (106) (121) (126) (135) (152)

Direct taxes paid (120) (102) (17) (35) (35) (48)

Cash Flow from Operations (275) (684) 226 145 (145) (149)(Inc.)/ Dec. in Fixed Assets (148) (169) (105) (56) (180) (180)

(Inc.)/ Dec. in Investments (201) (260) (39) (13) - -

Other income 69 106 121 126 135 152

Cash Flow from Investing (280) (323) (24) 57 (45) (28)Issue of Equity 6 - - (0) - -

Inc./(Dec.) in loans 286 954 (250) (178) 200 200

Dividend Paid (Incl. Tax) (39) (30) (9) (9) (9) (9)

Others 368 5 0 1 0 (0)

Cash Flow from Financing 620 929 (259) (186) 191 191Inc./(Dec.) in Cash 65 (78) (57) 15 2 15

Opening Cash balances 135 200 121 65 80 82Closing Cash balances 200 121 65 80 82 96

7/30/2019 NCC 4Q FY 2013

10/11


May 23, 2013 10

Key ratios

Y/E March FY2010 FY2011 FY2012E FY2013E FY2014E FY2015EValuation Ratio (x)P/E (on FDEPS) 3.3 4.9 22.3 12.8 11.7 8.6P/CEPS 3.1 3.5 6.7 5.2 4.7 3.8

P/BV 0.4 0.3 0.3 0.3 0.3 0.3

Dividend yield (%) 4.2 3.2 1.0 1.0 1.0 1.0

EV/Sales 0.4 0.6 0.6 0.5 0.5 0.5

EV/EBITDA 4.4 6.5 7.4 5.9 6.0 5.5

EV / Total Assets 0.6 0.6 0.6 0.6 0.6 0.6

Per Share Data (`)EPS (Basic) 9.5 6.4 1.4 2.4 2.7 3.6

EPS (fully diluted) 9.5 6.4 1.4 2.4 2.7 3.6

Cash EPS 10.0 9.0 4.6 6.0 6.6 8.2

DPS 1.3 1.0 0.3 0.3 0.3 0.3

Book Value 87.5 92.7 94.0 96.2 98.5 101.8

Dupont AnalysisEBIT margin 9.0 8.2 6.0 6.7 6.4 6.5

Tax retention ratio 65.9 61.5 68.0 64.1 66.0 66.0

Asset turnover (x) 1.5 1.2 1.1 1.2 1.3 1.4

ROIC (Post-tax) 8.9 6.1 4.6 5.4 5.6 6.2

Cost of Debt (Post Tax) 9.3 7.9 11.1 12.2 12.9 13.0

Leverage (x) 0.6 0.8 0.9 0.9 0.8 0.9

Operating ROE 8.6 4.7 (1.5) (0.4) (0.5) 0.1

Returns (%)ROCE (Pre-tax) 12.8 9.6 6.6 8.2 8.4 9.2

Angel ROIC (Pre-tax) 13.6 10.1 6.8 8.4 8.6 9.4

ROE 9.3 7.1 1.5 2.6 2.7 3.6

Turnover ratios (x)Asset Turnover (Gross Block) 6.9 6.0 5.4 5.4 5.2 5.1

Inventory / Sales (days) 57 59 74 85 88 85

Receivables (days) 89 99 96 78 70 67

Payables (days) 141 145 200 248 231 219

Wcap cycle (ex-cash) (days) 139 177 190 162 153 146

Solvency ratios (x)Net debt to equity 0.6 1.0 0.9 0.8 0.9 0.9

Net debt to EBITDA 2.8 4.9 5.4 4.2 4.4 4.1

Interest Coverage 2.2 1.6 0.8 0.9 0.9 1.0

7/30/2019 NCC 4Q FY 2013

11/11


May 23 2013 11

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 investmentdecision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make

such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies

referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and

risks of such an investment.

Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make

investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this

document are those of the analyst, and the company may or may not subscribe to all the views expressed within.

Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and

trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's

fundamentals.

The information in this document has been printed on the basis of publicly available information, internal data and other 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. While

Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory,compliance, or other reasons that prevent us from doing so.

This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,

redistributed or passed on, directly or indirectly.

Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or

other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or inthe 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 NCC

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

NCC 4Q FY 2013