Analysis

Gammon India
BSE: 509550
NSE: GAMMONIND
ISIN: INE259B01020
 Gammon India
• Business Activities: - Engineering Procurement & Construction

• Official Establishment:- 1922

• Landmark Achievement:- Piling and Civil Foundation work at Gateway of

India in 1919

• Present Employees:- Top Management (Strong talent) – 3500 Nos; Officers

of pay roll & Staff:- 10, 000 Nos; Labor Staff of Daily wages basis:- 200,000
Nos.

• Turn Over (2009-2010):- Stand-alone US$ 1 Billion

Group Turn-over US$ 1.5 Billion

• Group Associates:- a. Subsidiary Companies -52 Nos

b. Overseas Subsidiaries:- 11 Nos
c. Associates – 2 Nos.
 Sales Turn-over - Gammon India – TOP LINE
Rs. In Crorers
%Cha
Average % nge
Change %Change %Chang %Change %Chang FY'05t
FY 06 to FY'09 to e FY'08 FY'07- e FY'06 o
FY 10 FY’10 Mar '10 to FY’09 Mar '09 FY’08 Mar '08 to FY’07 Mar '07 FY06 Mar '06

Sales
Turnover 33.34% 22.88% 4,551.24 57.95% 3,703.86 26.63% 2,344.91 25.89% 1,851.69 - 1,470.89

%Change FY'09 to %Change FY'08 to %Change FY'06 to %Change FY'05 to

FY'10 FY'09 %Change FY'07 to FY'08 FY'07 FY'06

Sales
Turnover 22.88% 57.95% 26.63% 25.89% -

Percentage Change in Sales Turnover

70.00%
57.95%
60.00%
50.00%
40.00%
30.00% 26.63% 25.89%
22.88%
20.00%
10.00%
0.00
0.00%
%Change FY'09 to FY'10 %Change FY'08 to FY'09 %Change FY'07 to FY'08 %Change FY'06 to FY'07 %Change FY'05 to FY'06
 Net Sales - Gammon India – TOP LINE

Rs. In Crorers
%Chan
Average % %Chang ge
Change %Change e FY'08 %Chang %Chang FY'05
FY 06 to FY'09 to to FY’ e FY'07- e FY'06to to
FY 10 FY’10 Mar '10 09 Mar '09 FY’ 08 Mar '08 FY’07 Mar '07 FY’06 Mar '06
Net Sales 32.78% 22.62% 4,485.10 55.99% 3,657.86 26.63% 2,344.91 25.89% 1,851.69 - 1,470.89

%Change FY'09 to %Change FY'08 to %Change FY'07- %Change FY'06 to %Change Fy'05 to
FY'10 FY'09 FY'08 FY'07 FY'06
Net
Sales 22.62% 55.99% 26.63% 25.89% -

Percentage Increase in Net Sales

60.00% 55.99%

50.00%
40.00%
30.00% 26.63% 25.89%
22.62%
20.00%
10.00%
0.00
0.00%
%Change FY'09 to %Change FY'08 to %Change FY'07-FY'08 %Change FY'06 to %Change Fy'05 to
FY'10 FY'09 FY'07 FY'06
 Operating Profit - Gammon India – MIDDLE LINE

Rs. In Crorers
Average
Operating Profit %Change %Change %Chang %Change %Change
Percentage (%) FY'09 to FY'08 to Mar e FY'07- Mar FY'06to Mar FY'05to
FY 06 to FY’10 FY10 Mar '10 FY’09 '09 FY’08 '08 FY’07 '07 FY’06 Mar '06

Operating
Profit 23.00% 22.38% 404.35 54.95% 330.40 19.06% 213.21 -4.4% 179.07 - 187.37

%Chan %Chan %Chan

%Change %Change ge ge ge
FY'09 to FY'08 to FY'07- FY'06t FY'05t
FY10 FY’09 FY’08 o FY07 o FY06
Operating Profit 22.38% 54.95% 19.06% -4.40% -

Percentage Change in Net Sales

54.95%
60.00%

40.00%
22.38% 19.06%
20.00%
0
0.00%
%Change Fy'09 to Fy10 %Change Fy'08 to Fy09 %Change Fy'07-Fy08 %Change Fy'06to Fy07 %Change Fy'05to Fy06

-20.00% -4.40%
 Operating Ratio - Gammon India – MIDDLE LINE

Rs. In Crorers
Year --> Mar '10 Mar '09 Mar '08 Mar '07 Mar '06

Operating Profit 404.35 330.40 213.21 179.07 187.37

Net Sales 4,485.10 3,657.86 2,344.91 1,851.69 1,470.89

Operating Profit Ratio 9.02 9.03 9.09 9.67 12.74

Operating Ratio

14.00 12.74
12.00
9.67 Mar '10
10.00 9.02 9.03 9.09
Mar '09
8.00
Mar '08
6.00
Mar '07
4.00
Mar '06
2.00
0.00
Operating Profit Ratio
 Net Profit - Gammon India – BOTTOM LINE

Rs. In Crorers
Average Net %Change %Change %Chang %Change %Change
Profit FY 06 to FY'09 to FY'08 to e FY07- Mar FY'06to Mar FY'05to
FY 10 FY10 Mar '10 FY’09 Mar '09 FY08 '08 FY07 '07 FY06 Mar '06
Net Profit 8.50% -10.51% 125.72 59.06% 140.48 -10.21% 88.32 -4.36% 98.36 - 102.84

%Chan
%Chan ge %Chan %Chan %Chan
ge FY'08 ge ge ge
FY'09 to to FY'07- FY'06t FY'05t
FY10 FY’09 FY’08 o FY07 o FY06
Net Profit -10.51% 59.06% -10.21% -4.36% -

Percentage Change in Net Profit

70.00%
59.06%
60.00%

50.00%

40.00%

30.00%

20.00%

10.00%
0
0.00%
%Change %Change %Change %Change %Change
-10.00%
Fy'09 to Fy'08 to Fy'07-Fy08 Fy'06to Fy07 Fy'05to Fy06
-20.00% Fy10 Fy09
-10.51% -10.21% -4.36%
 Historical Graph of Share Price

250 235.1

200

Open
150
High
Low
100
68 Close
50

0
Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11

Period High: 235.10

Period Low: 68.00
Change in Market-cap: -63.2%
 Observation

• Gammon performed exceptionally well in FY 2008-2009 as

compared with over all performance during FY 2006 to FY 2010
• Net Sales in FY 2010 have increased by 22.62% as compared to FY
2009
• Average Net Profit during FY 2006 to FY 2010 is 8.50%
• Gammon is able to maintain operating profit ratio of around 9.0 to
9.5 during 2007 to 2010
• Financial figures available for FY 2006 are computed for a period of
15 Months (instead of 12 Months)
• Percentage Change in Operating profit is negative for FY 2006 to
2007.
• Negative change (-63.2 %) in Market Capitalization during Sept
2010 to Sept 2011
 Conclusion
Conclusion

• Gammon needs to focus on increasing net

profit as company show negative profits
from past 4 years except FY’08 – FY’09.
Thank you
Thank you

From
Madhur Shah
Roll No:- 6592