4QFY2012 Result Update | Infrastructure

May 16, 2012

Madhucon Projects
Performance Highlights
Y/E March (` cr) Net sales Operating profit Net profit
Source: Company, Angel Research

BUY
CMP Target Price
3QFY12
625 53 8

`47 `70
12 Months

4QFY12 4QFY11
432 51 15 593 63 19

% chg (yoy) % chg (qoq)

(27.1) (18.5) (22.5) (30.8) (3.2) 98.3

Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code

Infrastructure 337 0.8 108/45 8,225 1 16,030 4,858 MAPR.BO MDHPJ@IN

For 4QFY2012, Madhucon Projects (MPL) reported a mixed set of numbers with revenue coming below our expectations; however, higher EBITDAM and other income resulted in in-line earnings performance. MPLs order book,
which is witnessing good traction, stands tall at ~`7,700cr (4.3x FY2012 revenue), providing good visibility for the next couple of years. However, we are revising our numbers for FY2013 and FY2014 to factor in the companys 4QFY2012 performance. We maintain our Buy recommendation on the stock. Mixed performance: On the top-line front, MPL posted a disappointing

performance, with a yoy/qoq decline of 27.1%/30.8% to `432cr, much below our expectation of `659cr. EBITDAM came in at 11.8%, posting a jump of 120bp/340bp on a yoy/qoq basis, against our expectation of 9.2%. EBITDAM came in ahead of our expectation, owing to higher revenue contribution from the power project. Interest cost stood at `27cr, a jump of 9.5% yoy, but a decline of 9.8% on a sequential basis. On the earnings front, the company posted a decline of 22.5% yoy to `15cr, in-line with our expectation of `14cr, despite higher tax rate (38.2%) on the back of higher EBITDAM and other income (`14cr).
Outlook and valuation Raising capital is the key catalyst: MPL has an equity requirement of ~`570cr for its BOT road projects. We believe key triggers to watch out for MPL should be pick-up in execution in the development business and raising money for the same. Hence, we believe until then the stock would be a sector performer and real value would be created only on unlocking at the subsidiary level. We have valued MPL on an SOTP basis to arrive at a revised target price of `70 (`84 earlier) and maintain our Buy rating on the stock.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 57.8 22.4 9.4 10.4

Abs. (%) Sensex MPL

3m

1yr

3yr 12.2 (3.7)

(11.7) (12.6) (34.2) (57.0)

Key financials (Standalone)

Y/E March (` cr) Net sales (incl op. income) % chg Adj. net profit % chg FDEPS (`) EBITDA margin (%) P/E (x) RoAE (%) RoACE (%) P/BV (x) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

FY2011 1,816 30.8 41 (10.2) 5.6 9.5 8.2 6.9 10.1 0.6 0.6 5.9

FY2012 1,802 (0.7) 37 (11.2) 4.9 11.3 9.3 5.8 9.5 0.5 0.8 7.0

FY2013E 2,206 22.4 34 (5.9) 4.6 10.7 9.8 5.2 8.6 0.5 0.7 6.8

FY2014E 2,502 13.4 35 0.8 4.7 10.7 9.8 5.0 8.3 0.5 0.7 6.6

Nitin Arora
022-39357800 Ext: 6842 nitin.arora@angelbroking.com

Please refer to important disclosures at the end of this report

Madhucon Projects | 4QFY2012 Result Update

Exhibit 1: Quarterly performance (Standalone)

Y/E March (` cr) Net sales Total expenditure Operating profit OPM (%) Interest Depreciation Non operating income Nonrecurring items Profit before tax Tax Reported net profit PAT (%) Reported EPS (`)
Source: Company, Angel Research

4QFY12 432 381 51 11.8 27 14 14 24 9 15 3.5 2.0

4QFY11 593 531 63 10.6 25 12 3 30 10 19 3.3 2.6

3QFY12 625 572 53 8.4 30 12 2 13 5 8 1.2 1.0

% Chg (yoy) (27.1) (28.2) (18.5) 120bp 9.5 20.3 320.7 (18.4) (10.6) (22.5) 20bp (22.5)

% Chg (qoq) (30.8) (33.4) (3.2) 340bp (9.8) 19.2 818.6 92.9 84.8 98.3 230bp 98.3

FY2012 1802 1598.4 204 11.3 109 51 17 61 25 37 2.0 4.9

FY2011 1705 1520 185 10.9 62 47 5 81 30 51 3.0 6.9

% Chg 5.7 5.2 10.3 40bp 76.6 7.8 225.7 (24.6) (18.1) (28.4) (100)bp (28.4)

Exhibit 2: 4QFY2012 Actual vs. Estimates

(` cr) Net Sales EBITDA Interest PAT
Source: Company, Angel Research

Estimates 659 61 30 14

Actual 432 51 27 15

Variation (%) (34.4) (15.8) (9.8) 7.2

May 14, 2012

Madhucon Projects | 4QFY2012 Result Update

Revenue growth loses momentum

After 3QFY2012s stunning performance of 77.5% yoy growth, MPL posted a

disappointing performance in 4QFY2012 on the revenue front, with a yoy/qoq decline of 27.1%/30.8% to `432cr, much below our expectation of `659cr.
Operational projects: On the BOT front, four operational projects witnessed toll collection of `42lakhs-46lakhs/day, which is broadly in-line with our estimate. Further, management is expecting toll collections to improve for Madurai Tuticorin project in the next few quarters. Under construction projects: MPL has achieved 25% completion for the Chhapra Hazipur project. Further, MPL has achieved financial closure (FC) for Barasat Krishnagar and Ranchi Rargon Jamshedpur projects. However, for the two recently won road projects Vijayawada Machilipatnam and Rajauli Bakhtiyarpur the company is yet to achieve FC.

Exhibit 3: Revenue growth falters

700.0 600.0 500.0 400.0 300.0 200.0 100.0 38.8 18.8 4.9 (19.2) (27.1) 23.3 49.2 43.0 38.0 25.6 22.0 18.3 77.5 100.0 80.0 60.0 40.0 20.0 (20.0) (40.0)

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

Sales (` cr, LHS)

Source: Company, Angel Research

Growth (yoy %, RHS)

EBITDAM better, earnings aided by other income

EBITDAM came in at 11.8%, posting a jump of 120bp/340bp on a yoy/qoq basis, against our expectation of 9.2%. EBITDAM came in ahead of our expectation owing to higher revenue contribution from the power project. Interest cost stood at `27cr, a jump of 9.5% yoy, but a decline of 9.8% on a sequential basis. On the earnings front, the company posted a decline of 22.5% yoy to `15cr, in-line with our expectation of `14cr, despite higher tax rate (38.2%) on the back of higher EBITDAM and other income (`14cr).

May 14, 2012

4QFY12

Madhucon Projects | 4QFY2012 Result Update

Exhibit 4: Erratic performance on the EBIDTAM front

70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 7.4 6.4 12.5 11.2 12.4 10.7 9.7 12.7 10.6 8.4 14.1 13.0 16.0 11.8 14.0 12.0 10.0 8.0 6.0 4.0 2.0 -

Exhibit 5: EBITDAM and other inc. pull PATM upwards

25.0 20.0 15.0 10.0 5.0 2.4 1.9 1.4 1.5 1.2 4.6 4.7 3.9 3.3 3.3 3.3 2.4 3.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 -

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

EBITDA (` cr, LHS)

EBITDAM (%, RHS)

PAT (` cr, LHS)

PATM (%, RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Soaring debt levels owing to elongated WC requirements and funding its captive projects Spike in interest cost and earnings growth under pressure: MPL has invested heavily in its asset-owning business for the past few years, resulting in increased debt levels. Further, given the companys expansion plans (sometimes unexplainable), including the recent one to foray into the power project in Indonesia, there seems to be no respite on the debt front as per our calculations. The only savior could be access to capital markets, which is under the initial stages of planning, via IPO/stake sale etc. We have highlighted before as well in our notes that increasing debt levels and the resulting increase in interest outlay are eating away profits from the standalone business. Therefore, we believe early raising of funds is the key catalyst for the stocks performance going ahead.

Exhibit 6: Interest cost on a declining trend

35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 (33.0) 22.4 51.9 31.0 15.1 13.3 31.9 27.2 5.9 (6.4) (9.8) 53.8 108.0 120.0 100.0 80.0 60.0 40.0 20.0 (20.0) (40.0) (60.0)

Exhibit 7: Rising debt levels with no respite in sight

300.0 250.0 200.0 150.0 0.8 100.0 50.0 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E FY2014E
Net debt to equity Increase in Investments WC cycle (ex-cash) (days)

3QFY12

4QFY12
2.5 2.0 2.0 1.5 1.0 0.5 -

1.9 1.7

1.1

0.4 0.2

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

Interst cost (` cr, LHS)

qoq growth

Source: Company, Angel Research

4QFY12

Source: Company, Angel Research

May 14, 2012

Madhucon Projects | 4QFY2012 Result Update

Order book analysis

MPLs order book, as of 4QFY2012, stood at ~`7,700cr (4.3x FY2012 revenue), which is dominated by the roads (61.2%) and irrigation (19.8%) segments. The balance was contributed by the power, real estate and mining and other segments.

Exhibit 8: Segment wise order book break-up (` cr)

Source: Company, Angel Research

Key developments
Simhapuri Energy (100% subsidiary of Madhucon Projects Ltd.) is developing the 1,920MW Simhapuri project in three phases. The first phase and second phase have two units of 150MW each and the third phase has two units of 660MW. TPC of the project is `11,270cr and is based on imported coal. The company declared the commercial operations of the 150MW unit on May 4, 2012, and expects to add another unit by June 2012. The company expects to complete the implementation of the second phase of 300MW in FY2013. MPL has been chosen as the preferred bidder for a 300MW (TPC `2,000cr) thermal power project in Indonesia for 25 years on BOT basis; the plant is located at a distance of 4kms from its existing coal reserves site. Further, on May 1, 2012, MPL's subsidiary entered into a power purchase agreement with PTPLN of Indonesian government to supply power to PLN for 25 years.

May 14, 2012

Madhucon Projects | 4QFY2012 Result Update

Outlook and valuation

Raising of capital The key catalyst
We believe the key triggers to watch out for MPL should be the pick-up in execution in the development business and building of an attractive asset portfolio to raise money. Hence, we believe until then the stock would be a sector performer and real value would be created only on unlocking at the subsidiary level. We have valued MPL at 3040% discount to its larger peers, given its scale of operations, high leverage on the balance sheet, consistent delays in expansion plans and high dependence on captive orders for its core construction growth. Based on the SOTP methodology, we have assigned P/E of 4x on FY2014E earnings (`18.7/share) and valued the BOT projects on NPV basis (`37.8/share) and other investments in Madhucon Infra and the real estate venture on BV basis (`12.0/share and `2.0/share, respectively). Thus, our revised target price stands at `70 (`84 earlier).

Exhibit 9: Derivation of SOTP-based target price for MPL (FY2014E)

Business Segment MPL - Parent Madhucon Infra. Agra Jaipur TN (DK) Exp Trichy Thanjavur Madhurai Tuticorin Simhapuri Energy Coal Venture Real Estate Total
Source: Company, Angel Research

Methodology

Remarks P/E 4x FY2014E Earnings NPV CoE -14%, Traffic and Toll increase 4% and 5% respectively NPV CoE -14%, Traffic and Toll increase 3% and 3% respectively NPV CoE -14%, Traffic and Toll increase 4% and 5% respectively NPV CoE -14%, Traffic and Toll increase 3% and 4% respectively

` cr 138.5 434.5 198.9 38.1 (22.0) 64.7 132.3 22.5 14.5 587.5

`/share 18.7 49.8 26.9 5.1 (3.0) 8.7 8.9 3.0 2.0 70.4

% to TP 26.6 70.7 38.2 7.3 (4.2) 12.4 12.7 4.3 2.8 100.0

Investment 0.5x of investments Investment 0.5x of investments 9acres at Kukatpally 0.5x of investments

Exhibit 10: Change in estimates to factor in performance of 4QFY2012

FY2013E Earlier estimates Revenue (` cr) EBITDA margin (%) PAT (` cr)
Source: Company, Angel Research

FY2014E Earlier estimates 2,903 10.7 48 Revised estimates Variation (%) 2,502 10.7 35 (13.8) (28.6) 2,206 10.7 34 (11.8) (20.1)

Revised estimates Variation (%)

2,503 10.7 43

May 14, 2012

Madhucon Projects | 4QFY2012 Result Update

Exhibit 11: BOT We have been conservative in our estimates, given the assets have not witnessed traffic flow
as expected and are marred by delays, which are impacting the IRRs of the projects
Agra Jaipur Toll Oper. 57 NHAI Rajasthan 25 May-09 326.7 198.5 99.4 96.0 6.0 5.0 11.5 261.2 2.0 TN (DK) Exp Toll Oper. 73 NHAI TN 20 Nov-09 375.5 224.0 74.7 86.0 3.0 3.0 9.8 56.5 0.4 Trichy Thanjavur Toll Oper. 56 NHAI Pondicherry & TN 20 May-11 390.0 260.4 64.7 78.4 4.0 5.0 9.8 (21.7) (0.2) BOT project Type Status KM Issuing Auth. State Concession (yrs.) CoD TPC (` cr) Debt (`cr) Equity (` cr) Grant (upfront and maintenance) (` cr) Expected traffic growth (%) Expected toll inc (%) Interest rate (%) NPV (` cr) Implied P/BV FY13E
Source: Company, Angel Research

Madhurai Tuticorin Toll Oper. 126 NHAI TN 20 Jul-11 920.0 594.4 173.7 143.9 3.0 4.0 9.8 57.5 0.2

May 14, 2012

Madhucon Projects | 4QFY2012 Result Update

Investment arguments
Captive order inflows drive the companys order book growth: As of 4QFY2012, MPL has an order book of ~`7,700cr, spread across the power, highway and irrigation segments. In recent times, the companys order book witnessed traction in the road segment via winning of BOT projects and captive power projects. Value unlocking at the subsidiary level A key to enhance value: We believe MPL has a decent portfolio of road BOT assets (four operational + four under development), power projects and coal mining projects, which have latent potential. However, we believe faster execution and value unlocking at the subsidiary level would act as a trigger for the companys performance. We expect MPL to access the capital markets in FY2013, when it would have reached more milestones and enhanced its asset visibility. Therefore, in the short to medium term, the stock would continue to be a sector performer.

Key concerns
Dependability on capital markets for equity: MPL has plans to raise money from markets to fund its asset-expansion spree. In case MPL is unsuccessful in doing so, it may face delays, which will negatively impact the IRRs of the companys projects. Rising commodity prices: MPL has high proportion of captive road BOT projects, which are fixed-price contracts. In such contracts, some price escalations can be factored in; however, the company may face risk of margin erosion if commodity prices increase beyond estimates. Awarding from NHAI: Slowdown in awarding activity by NHAI would hit order inflow for road-focused players such as MPL.

May 14, 2012

Madhucon Projects | 4QFY2012 Result Update

Exhibit 12: Recommendation summary

Company ABL CCCL HCC IRB Infra ITNL IVRCL JP Assoc. L&T Madhucon NCC Patel Engg Punj Lloyd Sadbhav Simplex In. CMP 199 15 19 116 166 47 61 47 33 88 45 129 211 TP Rating FY12E 302 Buy - Neutral - Neutral 186 Buy 265 Buy 61 Buy 104 Buy 70 Buy 76 Buy - Neutral 199 Buy 316 Buy 1,522 2,128 3,988 3,131 5,606 4,971 Top line (` cr) FY13E 2,014 2,526 4,239 3,821 6,619 5,510 Adj. P/E FY12E FY13E FY14E FY14E CAGR (%) FY12E FY13E FY14E CAGR (%) 2,294 2,792 4,522 4,582 7,925 6,722 22.7 14.5 6.5 21.0 18.9 16.3 14.7 14.0 17.8 19.1 3.6 10.9 12.8 15.4 18.0 (0.4) (3.7) 14.9 25.6 0.9 2.9 64.7 4.9 1.4 14.9 2.8 9.3 19.6 28.4 1.8 (1.8) 15.0 22.0 2.5 4.2 70.8 4.6 3.5 14.0 1.8 10.2 27.2 30.8 2.8 (0.8) 16.9 26.7 4.6 5.0 76.5 4.7 5.4 14.5 3.2 11.3 35.1 30.8 6.5 2.1 125.5 30.9 8.7 (2.6) 97.6 (1.1) 7.2 10.5 33.9 11.0 7.7 6.5 52.1 20.7 18.6 9.5 23.9 5.9 16.1 13.9 10.8 7.0 8.0 7.7 7.5 18.5 14.4 17.0 10.1 9.5 6.3 24.5 12.7 7.7 6.4 5.2 6.8 6.2 10.2 12.1 15.8 10.0 6.1 6.0 14.0 11.4 6.0 EPS (`) OB/ Sales 4.2 2.8 3.8 4.3 5.6 2.7 4.3 4.3 2.7 2.6 2.7 2.9

13,963 16,017 18,359 53,171 59,559 69,089 1,802 4,946 3,573 2,604 5,929 2,206 5,790 3,609 2,989 6,732 2,502 7,022 3,836 3,314 7,902

1,206 1,553 Buy

- Neutral 10,557 11,592 12,993

Source: Company, Angel Research

Exhibit 13: SOTP break-up

Company ABL CCCL HCC IRB Infra ITNL IVRCL JP Assoc. L&T Madhucon NCC Patel Engg Punj Lloyd Sadbhav Simplex In. Core Const. ` 128 17 (5) 98 53 41 34 1,223 19 43 55 72 102 316 % to TP 42 100 (20) 59 20 67 32 79 27 57 51 100 51 100 ` 12 27 2 2 17 Real Estate % to TP 50 26 3 2 16 ` 174 16 64 180 38 10 16 98 Road BOT % to TP 58 70 39 68 54 13 15 49 Invst. In Subsidiaries ` 4 20 330 % to TP 3 33 21 ` 33 43 12 22 19 Others % to TP 12 42 17 28 18 Total ` 302 17 23 166 265 61 104 1,553 70 76 106 72 199 316

Source: Company, Angel Research

May 14, 2012

Madhucon Projects | 4QFY2012 Result Update

Profit & loss statement (Standalone)

Y/E March (` cr) Net Sales Other operating income Total operating income % chg Total Expenditure Net Raw Materials Other Mfg costs Personnel Other EBITDA % chg (% of Net Sales) Depreciation& Amortisation EBIT % chg (% of Net Sales) Interest & other Charges Other Inc. (incl pft from Ass/JV) (% of PBT) Recurring PBT % chg Extraordinary Expense/(Inc.) PBT (reported) Tax (% of PBT) PAT (reported) Add: Share of earnings of asso. Less: Minority interest (MI) Prior period items PAT after MI (reported) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) (Reported) Fully Diluted EPS (`) % chg FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E 1,025 1,025 38.9 901 706 118 46 31 124 15.5 12.1 43 81 9.9 7.9 27 19.1 26.1 73 5.2 73 26 35.6 47 47 47 (0.7) 4.6 6.4 6.3 (0.7) 1,388 1,388 35.4 1,253 1,022 135 50 47 135 9.2 9.8 46 89 10.4 6.4 25 5.6 8.1 69 (5.0) 69 24 34.1 46 46 46 (2.4) 3.3 6.2 6.2 (2.4) 1,816 1,816 30.8 1,644 1,397 120 58 69 172 27.2 9.5 48 124 39.9 6.9 63 8.9 12.5 71 1.9 71 23 33.0 47 47 41 (10.2) 2.3 6.4 5.6 (10.2) 1,802 1,802 (0.7) 1,598 1,417 57 124 204 18.4 11.3 51 153 22.8 8.5 109 17.3 28.4 61 (13.7) 61 25 40.3 37 37 37 (11.2) 2.0 4.9 4.9 (11.2) 2,206 2,206 22.4 1,971 1,533 267 90 79 236 15.5 10.7 64 172 12.3 7.8 139 19.1 36.7 52 (14.8) 52 18 34.0 34 34 34 (5.9) 1.6 4.6 4.6 (5.9) 2,502 2,502 13.4 2,235 1,739 303 103 90 267 13.4 10.7 80 187 9.1 7.5 156 21.0 40.0 52 0.7 52 18 33.9 35 35 35 0.8 1.4 4.7 4.7 0.8

May 14, 2012

10

Madhucon Projects | 4QFY2012 Result Update

Balance sheet (Standalone)

Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Preference Capital Reserves& Surplus Shareholders Funds Minority Interest Total Loans Deferred Tax Liability Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Investments Current Assets Inventories Sundry Debtors Cash Loans & Advances Other Current liabilities Net Current Assets Misc. Exp. not written off Total Assets 462 173 288 373 715 52 88 85 491 508 207 868 491 218 273 639 753 75 124 55 498 563 189 1,101 505 264 241 756 1,386 178 379 64 764 1,020 366 1,363 535 315 220 870 1,813 417 400 124 872 1,051 761 1,851 595 379 216 1,043 2,188 340 513 214 1,121 1,286 903 2,162 664 459 205 1,252 2,407 275 600 197 1,335 1,531 876 2,333 7 529 536 320 12 868 7 571 578 513 10 1,101 7 601 609 751 4 1,363 7 634 641 1,206 4 1,851 7 664 671 1,487 4 2,162 7 694 702 1,628 4 2,333 FY2009 FY2010 FY2011 FY2012E FY2013E FY2014E

May 14, 2012

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Madhucon Projects | 4QFY2012 Result Update

Cash flow statement (Standalone)

Y/E March (` cr) Profit before tax (excluding MI) Depreciation Change in Working Capital Less: Other income Direct taxes paid Cash Flow from Operations (Inc.)/ Dec. in Fixed Assets (Inc.)/ Dec. in Investments Other income Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances FY2009 FY2010 FY2011 FY2012E FY2013E FY2014E 73 43 71 19 26 1 (83) (73) 19 (137) 124 3 (1) 119 (17) 102 85 69 46 11 6 26 73 (29) (266) 6 (290) 193 3 (2) 187 (29) 85 55 71 48 168 9 23 (81) (7) (117) 9 (116) 238 2 (30) 206 9 55 64 61 51 336 17 25 (265) (30) (113) 17 (126) 456 4 451 60 64 124 52 64 52 19 18 28 (60) (174) 19 (215) 281 4 277 90 124 214 52 80 (10) 21 18 104 (69) (209) 21 (257) 140 4 136 (17) 214 197

May 14, 2012

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Madhucon Projects | 4QFY2012 Result Update

Key Ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value DuPont Analysis EBIT margin Tax retention ratio Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) ROACE (Pre-tax) Angel ROIC (Pre-tax) ROAE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Loans and Advances (days) Payables (days) W.cap cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage 0.4 1.9 3.0 0.8 3.4 3.5 1.1 4.0 2.0 1.7 5.3 1.4 1.9 5.4 1.2 2.0 5.4 1.2 2.4 29 32 159 180 31 2.9 17 28 130 133 34 3.6 25 51 127 153 44 3.5 60 79 166 202 95 3.9 63 76 165 186 110 4.0 45 81 179 198 100 10.3 11.7 9.1 9.0 9.7 8.2 10.1 10.6 6.9 9.5 10.1 5.8 8.6 9.3 5.2 8.3 9.2 5.0 7.9 0.6 1.5 7.5 6.6 0.3 7.8 6.4 0.7 1.5 6.4 4.0 0.6 7.9 6.9 0.7 1.5 7.1 6.6 1.0 7.6 8.5 0.6 1.2 6.0 6.7 1.4 5.2 7.8 0.7 1.2 6.2 6.8 1.8 5.0 7.5 0.7 1.2 6.1 6.6 2.0 5.0 6.4 6.3 12.2 0.8 72.4 6.2 6.2 12.5 0.4 78.1 6.4 5.6 12.0 0.2 82.2 4.9 4.9 11.8 0.5 86.6 4.6 4.6 13.3 0.5 90.7 4.7 4.7 15.5 0.5 94.8 7.2 3.7 0.6 1.7 0.6 4.6 0.7 7.4 3.7 0.6 0.9 0.6 5.9 0.7 8.2 3.8 0.6 0.5 0.6 5.9 0.8 9.3 3.9 0.5 1.1 0.8 7.0 0.8 9.8 3.4 0.5 1.1 0.7 6.8 0.7 9.8 3.0 0.5 1.1 0.7 6.6 0.8 FY2009 FY2010 FY2011 FY2012E FY2013E FY2014E

May 14, 2012

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Madhucon Projects | 4QFY2012 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www. angelbroking.com

DISCLAIMER
This 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 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 reliable sources 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 this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible 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 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, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Madhucon Projects No No No No

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

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

May 14, 2012

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