4QFY2012 Result Update | Infrastructure

May 29, 2012

Nagarjuna Construction
Performance Highlights
Quarterly Highlights Standalone
Y/E March (` cr) Net sales Operating profit Net profit
Source: Company, Angel Research

BUY
CMP Target Price `32 `41
12 Months Investment Period
Stock Info Sector Market Cap (` cr) Net Debt (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Infrastructure 821 1,991 1.6 89/30 171,821 2 16,439 4,990 NGCN.BO NJCC@IN

4QFY12 1,755 102 11

4QFY11 1,450 131 36

3QFY12 1,264 78 (9)

% chg (yoy) 21.0 (22.1) (69.7)

% chg (qoq) 38.8 31.3 -

For 4QFY2012, Nagarjuna Construction Company (NCC) posted better-than expected numbers on the revenue and earnings front. However, the company disappointed on the EBITDAM level. The current outstanding order book of NCC stands at `20,196cr, with order inflow of `10,116cr (including captive power order worth `5,186cr) for FY2012. We maintain our Buy view on the stock. Earnings pulled down by poor EBITDAM and higher interest cost, despite higher revenue: For 4QFY2012, on the top-line front, NCC reported a jump of 21.0% yoy to `1,755cr, which was higher than our expectation of `1,429cr. On the EBITDAM front, the companys margin was disappointing at 5.8%, a dip of 320bp yoy and lower than our estimate of 7.4%. As per the company, provisions, time and cost overruns and higher input costs resulted in lower EBITDAM for the quarter. Interest cost came in at `98cr, registering a yoy jump of 19.9% but a decline of 8.1% on a sequential basis. On the bottom-line level, NCC reported a yoy decline of 69.7% to `11cr, almost in-line with our estimate of `10cr despite posting higher revenue owing to lower EBITDAM and higher interest cost. Outlook and valuation: NCCs performance on the revenue front in 4QFY2012 was a positive surprise, but poor EBITDAM and higher interest cost continue to affect the companys earnings in a negative way. Thus, we are revising our estimates downwards for FY2013 and FY2014, respectively, mainly to factor in poor performance at the EBITDAM level and as we do not expect the company to get respite from its high debt and stretched working capital in the near future. However, after a steep correction (46.2%) in the past three months, the stock is currently trading at low valuation of 0.3x FY2014E P/BV (standalone) and, hence, we maintain our Buy view on the stock with an SOTP target price of `41.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 19.6 19.9 44.9 15.7

Abs. (%) Sensex NCC

3m

1yr

3yr 12.4 (77.0)

(7.4) (10.0) (46.2) (63.0)

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 5,074 6.2 163 (18.4) 6.4 9.6 5.0 7.1 9.7 0.3 0.6 6.5

FY2012 5,250 3.5 36 (78.0) 1.4 7.6 22.8 1.5 6.7 0.3 0.5 7.0

FY2013E 5,453 3.9 42 17.2 1.6 8.1 19.5 1.7 7.4 0.3 0.6 7.3

FY2014E 6,169 13.1 50 17.4 1.9 8.5 16.6 2.0 7.8 0.3 0.7 7.8

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

Please refer to important disclosures at the end of this report

NCC | 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 (%) FDEPS (`)
Source: Company, Angel Research

4QFY12 1,755 1653 102 5.8 98 22 34 0 15 4.7 11 0.6 0.4

4QFY11 1,450 1319 131 9.0 82 19 30 0 60 25 36 2.5 1.4

3QFY12 1,264 1186 78 10.3 107 21 39 0 (12) (2.2) (9) (0.8) (0.4)

% Chg (yoy) 21.0 25.3 (22.1) (320)bp 19.9 16.9 11.4 0 (74.4) (81.1) (69.7) (190)bp (69.7)

% Chg (qoq) 38.8 39.3 31.3 (450)bp (8.1) 1.6 (13.8) 0 -

FY2012 5,250 4851 399 7.6 384 83 121 0 53 17 36 0.7 1.4

FY2011 5,074 4588 485 9.6 257 69 106 0 266 102 164 3.2 6.4

% Chg 3.5 5.7 (17.7) (200)bp 49.5 21.1 14.1 (80.1) (83.4) (78.0) (250)bp (78.0)

Exhibit 2: 4QFY2012 Actual vs. Estimates

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

Estimates 1,429 106 71 5 10

Actual 1,755 102 98 5 11

Variation (%) 22.8 (3.5) 39.1 0.1 10.7

Better-than-expected revenue growth

For 4QFY2012, on the top-line front, NCC reported a jump of 21.0% yoy to `1,755cr, which was higher than our expectation of `1,429cr. We were expecting lower revenue on the back of muted performance by NCC on the revenue front in the past few quarters. Further, during 3QFY2012, management had indicated slowdown in execution pace owing to delay in payments by clients as one of the reasons of lower revenue. However, the company has surprised positively in 4QFY2012 by posting better-than-expected revenue growth. For FY2012, NCC reported yoy revenue growth of 3.5% to `5,250cr.

May 29, 2012

NCC | 4QFY2012 Result Update

Exhibit 3: Pick-up in execution led to revenue growth

2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 21.0 12.6 8.6 12.6 5.1 (4.7) (9.2) 1,086 1,201 1,335 1,450 1,142 1,090 1,264 1,755 (5.4) 25.0 20.0 15.0 10.0 5.0 (5.0) (10.0) (15.0)

Exhibit 4: Subdued order inflow for 4QFY2012

8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 (29.5) (16.1) (72.1) 31.5 (33.3) 15.6 152.6 200.0 150.0 73.3 100.0 50.0 0.0 (50.0) (100.0)

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

4QFY11

1QFY12

2QFY12

3QFY12

1QFY11

2QFY11

Sales (` cr, LHS)

Growth (yoy %, RHS)

Order Booking (` cr, LHS)

3QFY11

Growth (yoy %, RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Projects update
Pondicherry Tindivanam: Currently, toll collection is `3.5lakhs/day, much lower than the breakeven level of `8lakhs/day. However, the company believes that toll revenue will pick up going ahead.
Western UP: Toll collection is currently at `20lakhs/day. Management expects `24lakhs/day going ahead.

Bangalore Elevated Toll Way (BETL): NCC is getting `22lakhs/day as against

breakeven level of `25lakhs/day.

Nelcast Power Project (1,320MW): NCC has achieved financial closure for the
project and has begun with civil works. On the fuel supply front, for 70% of coal requirement, the company has tied up with Coal India; and for the balance 30%, it has identified coal mines in Indonesia (30mn tonnes) with its share at 50% (15mn tonnes). Total investment in the mine for NCC would be at around `50cr, out of which `8cr-10cr has already been invested. NCC has been shortlisted for signing a power purchase agreement (PPA) of 500MW with Government of Andhra Pradesh for `3.7 per unit. Further, the company is hopeful of tying up with Government of Karnataka and Tamil Nadu for more PPAs to ensure that it ties up 900-950MW of power through PPAs.

Himachal Sorang: NCC is now looking to achieve completion of this project in

December 2012 from its earlier guidance of June 2012.

Poor EBITDAM and higher interest cost drag earnings downwards

On the EBITDAM front, the companys margin was disappointing at 5.8%, registering a dip of 320bp yoy and lower than our estimate of 7.4%. As per the company, provisions, time and cost overruns and higher input costs resulted in lower EBITDAM for the quarter. Interest cost came in at `98cr, registering a yoy jump of 19.9% but a decline of 8.1% on a sequential basis. On the bottom-line level, NCC reported a yoy decline of 69.7% to `11cr, almost in-line with our estimate of `10cr despite posting higher revenue owing to lower EBITDAM and higher interest cost. For FY2012, NCCs EBITDAM and PAT stood at 7.6% and `36cr, respectively.

May 29, 2012

4QFY12

NCC | 4QFY2012 Result Update

Exhibit 5: Dismal performance continues

140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 6.1 5.8 9.7 106 10.3 9.6 9.0 123 128 131 117 103 10.2 9.5 78 102 12.0 11.0 10.0 9.0 8.0 7.0 6.0 5.0

Exhibit 6: Low NPMs a cause of worry

50.0 40.0 30.0 20.0 10.0 0.0 3.8 3.8 3.0 2.5 2.0 41 46 41 36 23 11 (9) 11 5.0 4.0 3.0 2.0 1.0

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12
0.6

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

(10.0) (20.0)

0.0 (1.0)

1.0 PAT (` cr, LHS)

(0.8)

EBITDA (` cr, LHS)

EBITDAM (%, RHS)

PATM (%, RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Order book analysis

NCC had a muted order inflow of ~`1,000cr during the quarter, taking the total order inflow for FY2012 to `10,117cr. However, this includes `5,186cr captive power project booked by the company during the year; and adjusting for the same, order inflow would have stood at `4,931cr. Order book as of 4QFY2012 stands at `20,196cr (3.8x FY2012 revenue), which is spread across nine verticals and the major contributors include the power, building, irrigation and water segments. Going ahead, management expects the road, building, water and electrical segments to gather momentum and add significantly to the companys order book. NCC is targeting `8,500cr worth of orders for FY2013. However, we believe this is aggressive given its performance in FY2012 and, hence, we have factored order inflow of `7,938cr for FY2013.

Exhibit 7: Order backlog of `20,196cr (as of 4QFY2012, ` cr)

1,078 349 1,528 5,640 488 Roads Buildings Water Irrigation 6,333 2,264 2,064 Electricals Power Oil/gas etc Metals International 453
Source: Company, Angel Research

May 29, 2012

NCC | 4QFY2012 Result Update

Outlook and valuation

NCCs performance on the revenue front in 4QFY2012 was a positive surprise, but poor EBITDAM and higher interest cost continue to affect the companys earnings in a negative way. Thus, we are revising our estimates downwards for FY2013 and FY2014, respectively, mainly to factor in poor performance at the EBITDAM level and as we do not expect the company to get respite from its high debt and stretched working capital in the near future. However, after a steep correction (46.2%) in the past three months, the stock is currently trading at low valuation of 0.3x P/BV FY2014 and, hence, we maintain our Buy view on the stock with an SOTP target price of `41.

Exhibit 8: Derivation of SOTP-based target price for NCC (FY2014E)

Business Segment Core Construction - Parent NCC International (Construction) Real Estate Road BOT Projects Brindavan Infra Bangalore Elevated Tollway Western UP Tollway OB Infra Pondicherry Tindivanam Power venture Himachal Sorang NCC Power Himalaya Green Total
Source: Company, Angel Research

Methodology P/E P/E P/BV NPV NPV NPV NPV NPV P/BV P/BV P/BV

Remarks 7x FY2014E Earnings 4x FY2014E Earnings 0.5 of equity invested; NCC's share 80.0% CoE -14%, NCC's share 33.3% CoE -14%, NCC's share 35.4% CoE -14%, NCC's share 30.0% CoE -14%, NCC's share 64.0% CoE -14%, NCC's share 49.0% 1.0x FY12E equity invested; NCC's share 67.0% 0.5x FY12E equity invested; NCC's share 55.0% 1.0x FY12E equity invested; NCC's share 54.0%

` cr 346.5 156.0 48.0 152.2 12.4 53.6 28.3 47.1 10.9 338.2 103.2 185.0 50.0 1,041

Rs/share 13.5 6.1 1.9 5.9 0.5 2.1 1.1 1.8 0.4 13.2 4.0 7.2 1.9 41

% to TP 33.3 15.0 4.6 14.6 1.2 5.1 2.7 4.5 1.0 32.5 9.9 17.8 4.8 100

Exhibit 9: Key assumptions

FY2009 Order Inflow Revenues Order Backlog (Y/E) OB to Sales ratio (x)
Source: Company, Angel Research

FY2010 7,948 4,778 15,370 3.2

FY2011 6,800 5,074 16,180 3.2

FY2012 10,117 5,250 20,196 3.8

FY2013E 7,938 5,453 22,681 4.2

FY2014E 8,525 6,169 25,037 4.1

4,951 4,151 12,200 2.9

May 29, 2012

NCC | 4QFY2012 Result Update

Exhibit 10: Recommendation summary

Company ABL CCCL HCC IRB Infra ITNL IVRCL JP Assoc. L&T Madhucon NCC Patel Engg Punj Lloyd Sadbhav Simplex In. CMP 200 14 18 114 171 42 62 42 32 87 45 123 213 TP 273 Rating FY12E Buy 1,514 2,128 3,988 3,131 5,606 4,971 - Neutral - Neutral 186 265 61 98 70 41 Buy Buy Buy Top line (` cr) FY13E 2,014 2,526 4,239 3,821 6,619 5,510 2,293 2,792 4,522 4,582 7,925 6,722 23.1 14.5 6.5 21.0 18.9 16.3 14.7 14.0 17.8 8.4 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 EPS (`) 22.6 1.8 (1.8) 15.0 22.0 2.5 4.2 70.8 4.6 1.6 14.0 1.8 10.2 27.2 26.7 2.8 (0.8) 16.9 26.7 4.6 5.0 76.5 4.7 1.9 14.5 3.2 11.3 35.1 21.7 6.5 2.1 125.5 30.9 8.7 (2.6) 17.3 (1.1) 7.2 10.5 33.9 11.1 7.6 6.7 46.6 21.2 18.6 8.5 22.8 5.8 16.2 13.3 10.9 Adj. P/E 8.8 7.7 7.6 7.8 16.6 14.8 17.0 9.0 19.5 6.2 24.7 12.1 7.8 7.5 5.0 6.7 6.4 9.2 12.3 15.7 9.0 16.6 5.9 14.1 10.9 6.1 OB/ 3.9 2.8 3.8 4.3 5.6 2.7 4.3 3.8 2.7 2.6 2.7 2.9 FY14E CAGR (%) FY12E FY13E FY14E CAGR (%) FY12E FY13E FY14E Sales(x)

Buy 13,963 16,017 18,359 Buy 53,171 59,559 69,089 Buy Buy 1,802 5,250 3,573 2,604 5,929 2,206 5,453 3,609 2,989 6,732 2,502 6,169 3,836 3,314 7,902

1,201 1,553

- Neutral 199 316 Buy Buy

- Neutral 10,557 11,592 12,993

Source: Company, Angel Research

Exhibit 11: SOTP break-up

Company ` ABL CCCL HCC IRB Infra ITNL IVRCL JP Assoc. L&T Madhucon NCC Patel Engg Punj Lloyd Sadbhav Simplex In. 87 17 (5) 98 53 41 34 1,223 19 14 44 72 102 316 Core Const. % to TP 32 100 (20) 59 20 67 35 79 27 33 46 100 51 100 ` 12 26 2 2 17 Real Estate % to TP 50 26 3 5 18 ` 186 16 64 180 38 6 16 98 Road BOT % to TP 68 70 39 68 54 15 16 49 Invst. In Subsidiaries ` 4 20 330 % to TP 3 33 21 ` 33 39 12 19 19 Others % to TP 12 39 17 48 20 Total ` 273 17 23 166 265 61 98 1,553 70 41 95 72 199 316

Source: Company, Angel Research

May 29, 2012

NCC | 4QFY2012 Result Update

Company background
Nagarjuna Construction Company (NCC), starting 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% of order book); 2) buildings (28%); 3) water (11%); 4) irrigation (10%); 5) electrical (2%); 6) power (31%); 7) oil and gas (5%); and 8) metals (2%) endows it with a relatively de-risked business model. NCC has also ventured in international geographies (8% of order book) such as Oman and UAE, which further diversifies its business.

May 29, 2012

NCC | 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 (`) (Diluted) % chg FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E 4,151 4,151 19.5 3,778 1,304 2,084 189 201 374 3.9 9.0 53 320 2.8 7.7 162 70 30.7 228 (6.9) 228 74 32.6 154 154 154 (5.0) 3.7 6.5 6.0 (5.0) 4,778 4,778 15.1 4,294 1,807 2,066 184 237 483 29.4 10.1 53 431 34.5 9.0 196 69 22.6 303 33.0 (34) 337 116 34.5 221 4 217 200 30.2 4.2 8.4 7.8 30.2 5,074 5,074 6.2 4,586 1,756 2,335 244 251 488 0.9 9.6 69 419 (2.7) 8.3 257 106 39.4 268 (11.7) 268 97 36.3 170 5 166 163 (18.4) 3.2 6.5 6.4 (18.4) 5,250 5,250 3.5 4,851 1,961 2,463 240 187 399 (18.1) 7.6 83 316 (24.5) 6.0 384 121 227.8 53 (80.2) 53 17 32.0 36 36 36 (78.0) 0.7 1.4 1.4 (78.0) 5,453 5,453 3.9 5,013 1,782 2,737 221 273 440 10.2 8.1 91 349 10.4 6.4 409 123 196.6 62 18.0 62 20 32.4 42 42 42 17.2 0.8 1.6 1.6 17.2 6,169 6,169 13.1 5,643 1,988 3,096 250 309 526 19.6 8.5 104 422 20.9 6.8 477 128 174.7 73 17.4 73 24 32.4 50 50 50 17.4 0.8 1.9 1.9 17.4

May 29, 2012

NCC | 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 Creditors/Adv/Other Liabilities Mobilisation Adv & Others Provisions Net Current Assets Mis. Exp. not written off Total Assets 623 164 459 28 740 3,361 750 1,026 135 1,448 3 1,641 1,088 467 87 1,721 0 2,948 756 202 554 43 941 4,092 754 1,299 184 1,852 3 1,845 1,270 480 96 2,247 3,785 923 249 675 47 1,201 4,946 896 1,454 140 2,447 9 1,974 1,356 547 71 2,971 4,894 1,043 331 711 50 1,240 6,052 1,234 1,307 65 2,537 909 3,561 3,512 48 2,491 4,492 1,223 422 801 56 1,588 5,961 1,270 1,338 122 3,216 13 3,447 3,397 51 2,514 4,958 1,403 526 877 61 1,936 6,526 1,082 1,514 90 3,824 16 3,602 3,549 53 2,924 5,798 46 1,640 1,686 1,244 19 2,948 51 2,178 2,230 1,530 25 3,785 51 2,327 2,379 2,484 31 4,894 51 2,360 2,411 2,056 25 4,492 51 2,360 2,411 2,521 25 4,958 51 2,367 2,419 3,354 25 5,798 FY2009 FY2010 FY2011 FY2012E FY2013E FY2014E

May 29, 2012

NCC | 4QFY2012 Result Update

Cash flow statement (Standalone)

Y/E March (` cr) Profit before tax (excl 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 228 53 435 70 132 (355) (7) (175) 70 (113) 350 35 55 370 (98) 233 135 337 53 477 69 116 (272) (148) (201) 69 (280) 361 286 39 (6) 602 49 135 184 268 69 768 106 97 (635) (170) (260) 106 (324) 954 30 (9) 915 (44) 184 140 53 83 (405) 121 17 403 (123) (39) 121 (41) (428) 42 33 (437) (75) 140 65 62 91 (35) 123 20 45 (186) (348) 123 (411) 466 42 424 58 65 122 73 104 443 128 24 (417) (185) (348) 128 (405) 832 42 790 (32) 122 90

May 29, 2012

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NCC | 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 Order Book to Sales 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) Payables (days) WC cyc (ex-cash/mob.adv)(days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage 0.7 3.0 2.0 0.6 2.8 2.2 1.0 4.8 1.6 0.8 5.0 0.8 1.0 5.5 0.9 1.3 6.2 0.9 6.5 57 83 137 120 6.9 57 89 126 139 6.0 59 99 131 176 5.3 74 96 188 183 4.8 84 89 231 161 4.7 70 84 205 155 11.8 12.7 9.4 12.8 13.4 10.2 9.7 10.0 7.1 6.7 6.9 1.5 7.4 7.5 1.7 7.8 8.0 2.0 7.7 0.7 1.6 8.5 10.2 0.5 7.6 9.0 0.7 1.5 8.8 9.3 0.6 8.5 8.3 0.6 1.2 6.4 8.1 0.8 5.0 6.0 0.7 1.1 4.7 11.5 0.9 (1.5) 6.4 0.7 1.2 5.1 12.1 0.9 (1.3) 6.8 0.7 1.2 5.4 11.0 1.2 (1.1) 6.5 6.0 8.1 1.1 65.7 8.4 7.8 9.9 1.3 86.9 6.5 6.4 9.0 1.0 92.7 1.4 1.4 4.6 1.4 94.0 1.6 1.6 5.2 1.4 94.0 1.9 1.9 6.0 1.4 94.3 5.3 4.0 0.5 3.4 0.5 5.2 0.7 2.9 4.1 3.2 0.4 4.1 0.5 4.5 0.6 3.2 5.0 3.5 0.3 3.1 0.6 6.5 0.6 3.8 22.8 6.9 0.3 4.4 0.5 7.0 0.6 3.8 19.5 6.2 0.3 4.4 0.6 7.3 0.6 4.2 16.6 5.3 0.3 4.4 0.7 7.8 0.7 4.1 FY2009 FY2010 FY2011 FY2012E FY2013E FY2014E

May 29, 2012

11

NCC | 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

NCC 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 29, 2012

12