Electric Power Generation, Transmission and Distribution - Q4, 2010_ISI

T r e n d s o f Y o u r B u s i n e s s

E x c l u s i v e l y d i s t r i b u t e d b y

India, Q4 2010

Electric Power Generation, Transmission and Distribution

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E lec tric P ower Generation, T ransmiss ion and Dis tribution

! This report has been compiled to the best of the authors’ knowledge, using information originating from verifiedsources. The authors of the report take no responsibility for the consequences of any decisions and actions taken as aresult of the use of this report. This report refers to the Indian economy.

Contents Page1. Macroeconomic Scenario - 4

2. Analysis of Investment Attractiveness - 5

- Attractiveness Indicators - 5

- Driving Forces of Attractiveness - 5

- Risk-Profitability Maps - 7

3. Analysis of Revenue - 9

- Long-term Trend. Business Cycle. Correlation - 9

- Seasonality in Revenues. Seasonal Adjusted Revenues - 10

4. Concentration in the Sector - 11

5. Analysis of Financial Ratios - 12

- Distributions of Financials in the sector - 12

- General Indicators - 13

- Profitability Ratios - 18

- Liquidity Ratios - 21

- Financial Cycles - 22

- Financial Leverage Ratios - 23

- Production Factors - 25

- Investment Outlays - 27

- Costs - 29

- Structure of Fixed Assets - 33

- Structure of Current Assets - 34

- Structure of Current Liabilities - 35

- Main Leverages - 36

- DuPont’s Pyramid - 37

6. Companies from the Sector - 38

- Top Players - market shares - 38

- Top Players from the Sector - 39

- Listed Companies from the Sector - 40

- Mergers and Acquisitions - 41

7. Key Concepts - 42

- Definitions of Indices - 42

- Definitions of Selected Concepts - 44



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Analysed sector:

Class Electric Power Generation, Transmission and Distribution

The following sub-classes are included in the class:

Hydroelectric Power Generation Electric Power Transmission, Control, and Distribution Nuclear Electric Power Generation Fossil Fuel Electric Power Generation Other Electric Power Generation

Only the sub-classes marked by an arrow are covered by EconTrends reports.

EconTrends for India is the unique tool for analyzing various Indian industries. It contains description ofmacroeconomic environment, analysis of investment attractiveness, detailed analysis of revenue as well as in-depthanalysis of a wide scope of financial ratios. The report covers not the full sector but only its major part, since it is buildon the bottom-up aggregated financial data on listed companies from the Accord Fintech database reporting onquarterly basis. Quarterly financial data from Income Statement are adjusted to assert their consistency with yearlyaudited figures.

Profitability of a given industry is evaluated on the basis of average forecasted dynamics of EBITDA in two followingquarters. Every industry has a granted profitability mark that ranges from 1 up to 5, which reflects its profitabilityversus other industries. Higher mark indicates higher profitability. Risk of an industry in turn is measured by thestandard deviation of forecasted Profitability Index. Every industry has also an assigned risk mark that ranges from 1up to 5, which reflects its risk versus other industries. Higher mark means here lower risk. Each industry is at the endcharacterized by the following two parameters – its profitability and risk. They are used for evaluation of the short term investment attractiveness, that reflects preferences of investors seeking to maximize their rates of return and tominimize the risk they face.

The final Short-Term Investment Attractiveness Ranking of an analyzed industry explains its relative attractivenesscomparing to other sectors. The lower a position within the ranking the higher is attractiveness of an industry. Changesin this position replicate either changes in profitability or in risk. Additionally like in the case of profitability and riskmeasurement the final attractiveness is graded from 1 to 5, where the highest grade means the highest attractiveness.Lower grade means worse “investment-weather conditions”, so either lower profitability or higher risk. The Short-TermInvestment Attractiveness Ranking is presented according to the structure of the North American IndustryClassification System (NAICS). However the used system of industry classification is not fully compatible with theNational Classification of Activities in India due to Indian statistics - specific factors.

The Short-Term Investment Attractiveness Ranking developed for India under the EconTrends ® methodology is basedon the so called Profitability Index, that shows forecasted dynamics of EBITDA. It serves as a proxy for dynamics ofdirty cash flows in enterprises from a given industry. Fundamental components of the Profitability Index like net salesand EBITDA margin, are forecasted using econometric models. The behavior over time of all these categories isillustrated using appropriate pictograms in the “Map of Forces”.



-4-


-> expected slight fall of GDP nominal y/y growth in Q2 2011 comparying to the value from Q4 2010-> expected slight fall of GDP real y/y growth in Q2 2011 comparying to the value from Q4 2010-> expected slight rise of CPI inflation (eop) in Q2 2011 comparying to the value from Q4 2010-> expected slight fall of PPI inflation (eop) in Q2 2011 comparying to the value from Q4 2010-> expected strenghtening of USD/INR exchange rate in Q2 2011 comparying to the value from Q4 2010

Macroeconomic Scenario

Nominal GDP Growth

70

80

90

100

110

120

130

Q1 2

007

Q2 2

007

Q3 2

007

Q4 2

007

Q1 2

008

Q2 2

008

Q3 2

008

Q4 2

008

Q1 2

009

Q2 2

009

Q3 2

009

Q4 2

009

Q1 2

010

Q2 2

010

Q3 2

010

Q4 2

010

Q1 2

011

Q2 2

011

Period

Gro

wth

Fo

recast

Period Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Nominal GDP Growth 121.6 119.2 119.0 117.2 117.6

Real GDP Growth 109.3 108.9 108.3 107.8 108.2

Inflation (CPI) eop 113.7 110.3 109.2 109.0 109.2

Inflation (PPI) eop 110.6 109.2 108.2 108.9 107.6

USD/INR exchange rate, quarter av 45.67 46.50 44.86 45.26 44.74Datasource: ISI, EMIS, CEIC

Inflation (CPI) eop

70

75

80

85

90

95

100

105

110

115

120

Q1 2

007

Q2 2

007

Q3 2

007

Q4 2

007

Q1 2

008

Q2 2

008

Q3 2

008

Q4 2

008

Q1 2

009

Q2 2

009

Q3 2

009

Q4 2

009

Q1 2

010

Q2 2

010

Q3 2

010

Q4 2

010

Q1 2

011

Q2 2

011

Period

Gro

wth

Fo

recast

Inflation (PPI) eop

70

75

80

85

90

95

100

105

110

115

Q1 2

007

Q2 2

007

Q3 2

007

Q4 2

007

Q1 2

008

Q2 2

008

Q3 2

008

Q4 2

008

Q1 2

009

Q2 2

009

Q3 2

009

Q4 2

009

Q1 2

010

Q2 2

010

Q3 2

010

Q4 2

010

Q1 2

011

Q2 2

011

Period

Gro

wth

Fo

recast



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expected fall of attractiveness in the sector-> expected stabilisation of profitability-> expected stabilisation of risk (expected stabilisation in risk mark shown on the chart)

5 0

4 0

3 0

2 1

1 1

5 1

4 1

3 1

2 1

1 1

Cu

rren

t A

ttra

cti

ven

ess

Pro

fita

bilit

yR

isk

0

1

2

3

4

5

Current Attractiveness5 0

4 0

3 0

2 1

1 1

5 1

4 1

3 1

2 1

1 1

Fo

recaste

d A

ttra

cti

ven

ess

Pro

fita

bilit

yR

isk

0

1

2

3

4

5

Forecasted Attractiveness

Driving Forces of Attractiveness - Profitability Index - y/y dynamics- Net Revenue per Company - y/y dynamics - EBITDA Margin - y/y dynamics

Current situation b a aForecasted situation e d e

Map of forces for the sector Net revenue per company - Y/Y dynamics

EBITDA margin - Y/Y dynamics

Profitability index - Y/Y dynamics

"+""-""o"

▲▼■

Symbol's colour Dynamics of profit Positive impact on profit’s dynamics Negative impact on profit’s dynamics Neutral impact on profit’s dynamics

Symbol’s sign

Fall of dynamics comparing to previous quarter Stabilisation of dynamics comparing to previous quarter

Symbol’s orientation Rise of dynamics comparing to previous quarter

Positive dynamics of "driving force" Negative dynamics of "driving force" Close to zero dynamics of "driving force"

expected rise in dynamics of net revenue in Q1 2011

expected fall in dynamics of net revenue in Q2 2011

Analysis of Investment Attractiveness Attractiveness Indicators

Net revenue per company - Y/Y dynamics

-10%

-5%

0%

5%

10%

15%

20%

Q1 2

009

Q2 2

009

Q3 2

009

Q4 2

009

Q1 2

010

Q2 2

010

Q3 2

010

Q4 2

010

Q1 2

011

Q2 2

011

Period

Net

reven

ue p

er

com

pan

y -

Y/Y

dyn

am

ics

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

Pro

fita

bilit

y in

dex -

Y/Y

dyn

am

ics

Net revenue per company - Y/Y dynamics Profitability index - Y/Y dynamics

Forecast



-6-


expected rise in dynamics of EBITDA margin in Q1 2011

expected rise in dynamics of EBITDA margin in Q2 2011

EBITDA Margin - Y/Y dynamics

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

Q1 2

009

Q2 2

009

Q3 2

009

Q4 2

009

Q1 2

010

Q2 2

010

Q3 2

010

Q4 2

010

Q1 2

011

Q2 2

011

Period

EB

ITD

A M

arg

in -

Y/Y

dyn

am

ics

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

Pro

fita

bilit

y in

dex -

Y/Y

dyn

am

ics

EBITDA Margin - Y/Y dynamics Profitability index - Y/Y dynamics

Forecast



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Risk-Profitability Maps

Risk - Profitability Map (current situation)

-0.6

-0.4

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

0.0 0.2 0.4 0.6 0.8 1.0 1.2

Risk

Pro

fita

bil

ity

All sectorsMost efficient sectorssub-classes belonging to selected groupSelected sector (C lass): Electric Power Generation, Transmission and DistributionInvestors' utility function

Risk - Profitability Map (current situation)Zoom

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14

Risk

Pro

fita

bil

ity

All sectorsMost efficient sectorssub-classes belonging to selected groupSelected sector (Class): Electric Power Generation, Transmission and DistributionInvestors' utility function

risk - profitability map (current situation)



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risk - profitability map (forecasted situation)

Risk - Profitability Map (forecasted situation)

-0.2

-0.1

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8

Risk

Pro

fita

bil

ity

All sectorsMost efficient sectorssub-classes belonging to selected groupSelected sector (C lass): Electric Power Generation, Transmission and DistributionInvestors' utility function

Risk - Profitability Map (forecasted situation)Zoom

0.00

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.10

Risk

Pro

fita

bil

ity

All sectorsMost efficient sectorssub-classes belonging to selected groupSelected sector (Class): Electric Power Generation, Transmission and DistributionInvestors' utility function



-9-


Analysis of Revenue Long-term Trend. Business Cycle. Correlation

Long-term trend in net revenue per company

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

Mar

-07

Jun-

07

Sep-

07

Dec-0

7

Mar-0

8

Jun-

08

Sep-08

Dec-0

8

Mar

-09

Jun-

09

Sep-

09

Dec-0

9

Mar

-10

Jun-

10

Sep-

10

Dec-1

0

Mar

-11

Jun-

11

Sep-

11

Dec-1

1

Period

[mn

IN

R]

Net revenue per company Long-term trend in net revenue per company

ForecastM

ar-

08

Jun

-08

Sep

-08

Dec-0

8

Mar-

09

Jun

-09

Sep

-09

Dec-0

9

Mar-

10

Jun

-10

Sep

-10

Dec-1

0

Mar-

11

Jun

-11

Sep

-11

Dec-1

1

Net Revenues per company [mn INR]

12 2

63.0

9 9

17.6

11 4

56.8

12 5

12.2

14 4

24.4

11 2

17.4

11 2

65.0

11 5

23.2

14 8

21.3

11 6

87.8

12 3

25.9

12 2

04.1

16 2

93.3

12 6

31.0

12 7

45.4

13 0

03.9

Longterm trend in net sales per company [mn INR] 1

0 8

87.6

11 0

98.4

11 3

07.3

11 5

13.6

11 7

17.3

11 9

19.4

12 1

20.7

12 3

22.3

12 5

25.3

12 7

30.0

12 9

36.5

13 1

45.0

13 3

56.2

13 5

69.8

13 7

12.5

13 8

37.7

Long run growth of nominal GDP

102 104 106 108 110 112 114 116

Implied long run growth of the sector [%]

2.04% 4.10% 6.15% 8.21% 10.26% 12.32% 14.38% 16.43%

Forecast of sector's long run growth

Rise of long-term trend

in net revenue per

company

expec ted low but

inc reas ing use of

capac ity utilisation

ratio and assoc iated

poss ible fall in

dynamics of prices and

employment in 1s t

quarter 2011

Business cycle in net revenue per company

Mar

-07

Jun-

07

Sep-07

Dec-0

7

Mar

-08

Jun-

08

Sep-

08

Dec-0

8

Mar

-09

Jun-

09

Sep-

09

Dec-0

9

Mar-1

0

Jun-

10

Sep-10

Dec-1

0

Mar

-11

Jun-

11

Sep-

11

Dec-1

1

Period

Negative part of business cycle Positive part of business cycle

Pres

sure

for

ris

e of

pri

ces’

dyn

amic

s

Pres

sure

for

fal

l of

pri

ces’

dyn

amic

s

Forecast

Lead of net sales Y/Y + 0Q + 1Q + 2Q + 3Q

Value (quarterly data) -29.47% -17.32% -0.04% -18.58%

Lag of net sales Y/Y - 0Q - 1Q - 2Q - 3Q

Value (quarterly data) -29.47% -32.63% -36.49% -23.33%

Correlation of decumulated net revenue Y/Y growth with past GDP growth

Correlation of decumulated net revenue Y/Y growth with future GDP growth

< 1 ; 0.8 ) < 0.8 ; 0.6 ) < 0.6 ; 0.4 ) < 0.4 ; 0.2 ) < 0.2 ; 0 ) < 0 ; -0.2 ) < -0.2 ; -0.4 ) < -0.4 ; -0.6 ) < -0.6 ; -0.8 ) < -0.8 ; -1 )

Degree of correlation



-10-


Seasonality in Revenues. Seasonal Adjusted Revenues

in Q 1 pos ivive

seasonal deviation

prevails

in Q 2 pos ivive

seasonal deviation

prevails

in Q 3 negative

seasonal deviation

prevails

in Q 4 negative

seasonal deviation

prevails

Seasonality in net revenue per company

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

Mar

-07

Jun-

07

Sep-

07

Dec-0

7

Mar-0

8

Jun-

08

Sep-

08

Dec-0

8

Mar

-09

Jun-

09

Sep-09

Dec-0

9

Mar-1

0

Jun-

10

Sep-

10

Dec-1

0

Mar

-11

Jun-

11

Sep-11

Dec-1

1

Period

[mn

IN

R]

0

20

40

60

80

100

120

140

Seaso

nali

ty(m

ult

ipli

cati

ve d

evia

tio

n)

Net revenue per company Seasonality in net revenue per company

Forecast

Seasonality (per quarter) in net revenue per company

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

Q1 07

Q1 08

Q1 09

Q1 10

Q2 07

Q2 08

Q2 09

Q2 10

Q3 07

Q3 08

Q3 09

Q3 10

Q4 07

Q4 08

Q4 09

Q4 10

Period

[mn

IN

R]

0

20

40

60

80

100

120

140

Seaso

nali

ty(m

ult

ipli

cati

ve d

evia

tio

n)

Net revenue per company (per quarter) Seasonality (per quarter) in net revenue per company

1st quarter 2nd quarter 3rd quarter 4th quarter

Net revenue per company Seasonally adjusted net revenue per company

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

Mar

-07

Jun-

07

Sep-

07

Dec-0

7

Mar

-08

Jun-

08

Sep-08

Dec-0

8

Mar

-09

Jun-

09

Sep-

09

Dec-0

9

Mar

-10

Jun-

10

Sep-

10

Dec-1

0

Mar

-11

Jun-

11

Sep-11

Dec-1

1

Period

[mn

IN

R]

Net revenue per company Seasonally adjusted net revenue per company

Forecast



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Market power concentration measured by Herfindahl-Hirschman Index was weak in 2010

Net sales of top five companies in the sector reached the market share of 50.97% in 2010

Market share of top companies in the sector

Year 2010

The Herfindahl-Hirschman Index 825

Top 1 company 20.58%

Top 2 companies 35.34%




Number of listed and non-listed companies in the sector 225

Concentration in the Sector

Distribution of net revenues in the sector (2010)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Cumulative share of companies from lower market share

Cu

mu

lati

ve m

ark

et

sh

are

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Gini Coefficient92.60%

Lorenz Curve

Perfect Inequality Line

Perfect Equality Line



-12-


Source: ISI , EM IS, C EIC

Analysis of Financial Ratios Distributions of Financials in the sector

20% 40% 60% 80%

Q310 Q410 I II III IV0 0General IndicatorsNumber of companies 35 36

Y /Y dynamics of net revenue per company [%] 9.42% 5.91% -27.42% 4.71% 21.51% 56.82%

Y/Y dynamics of total operating (excl. depreciation) cost per company [%] 7.41% 4.79% -6.78% 10.01% 16.64% 52.33%

Y/Y dynamics of EBITDA profit per company [%] 12.71% -2.66% -25.02% -10.30% 18.55% 57.12%

Y/Y dynamics of EBITDA profit per profit-making company [%] 12.75% -3.60% -22.59% -7.85% 18.20% 52.49%

Y/Y dynamics of gross profit per company [%] 16.79% -1.39% -52.23% -22.80% 3.84% 40.53%

Y/Y dynamics of gross profit per profit-making company [%] 16.28% -4.32% -43.44% -21.25% 2.02% 21.39%

Y/Y dynamics of net profit per company [%] 13.47% -5.29% -56.68% -24.56% 2.36% 17.55%

Y/Y dynamics of net profit per profit-making company [%] 11.66% -10.63% -47.66% -16.89% 2.96% 16.07%

Profitability RatiosEBITDA Sales Margin [%] 29.34% 28.76% 10.56% 20.68% 29.62% 69.39%

Net Sales Margin [%] 14.13% 13.76% 2.63% 7.79% 15.38% 27.46%

Effec tive tax rate [%] 23.79% 24.97% 17.24% 19.88% 24.42% 32.78%

Share of profit-making companies [%] 85.71% 86.11%

D I S T R I B U T I O N O F P A R A M E T E R S(The distribution of financial indicators in the sector)

Average value for the company in

2009 2010 I II III IV0 0General IndicatorsY /Y dynamics of cash flow per company [%] -11.51% 18.40% -73.61% -66.74% 30.28% 54.95%

Y/Y dynamics of cash flow per profit-making company [%] -17.92% 11.47% -75.23% -66.86% 10.93% 52.48%

Profitability RatiosReturn on Equity [%] 13.62% 11.18% 3.27% 8.52% 12.67% 16.51%

Return on A ssets [%] 7.85% 6.34% 1.68% 4.63% 6.35% 10.53%

Equity dividend ratio [%] 11.46% 15.04% 0.00% 9.04% 14.87% 21.54%

Liquidity RatiosC urrent ratio [%] 237.73% 245.28% 181.92% 236.43% 322.62% 465.03%

Q uick ratio [%] 212.25% 220.58% 176.57% 207.00% 282.89% 446.37%

Super quick ratio [%] 62.72% 66.90% 5.80% 19.22% 69.74% 140.20%

Sundry debtors to sundry c reditors ratio [%] 190.53% 181.51% 92.75% 132.52% 197.56% 274.87%

Financial CyclesDays of coverage for C ash & Equivalent [days] -73 -81 -192 -70 3 52

Days of coverage for receivables [days] 106 105 44 70 107 201

Days of coverage for inventories [days ] 39 39 2 10 26 43

Days of coverage for short term liabilities [days] 219 224 77 134 210 454

Financial Leverage RatiosDebt to Equity ratio [%] 73.48% 76.25% 32.55% 60.66% 81.04% 132.22%

Equity to total assets ratio [%] 57.64% 56.74% 43.08% 55.24% 62.25% 75.58%

Share of loans from banks in total debt [%] 100.00% 100.00% 99.90% 100.00% 100.00% 100.00%

Secured to unsecured loans ratio [%] 129.84% 183.63% 28.38% 178.27% 350.77% 687.39%

O perating profit coverage [years] 2.70 3.26 1.6 2.2 3.2 5.4

Production FactorsLabour intens ity of produc tion [%] 8.30% 8.34% 1.18% 3.52% 5.14% 12.50%

Energy intens ity of production [%] 35.54% 35.09% 0.33% 1.21% 43.35% 62.65%

Material intens ity of produc tion [%] 23.27% 21.10% 0.00% 0.00% 0.00% 48.84%

Total as sets turnover [%] 54.94% 46.04% 8.45% 28.17% 52.93% 210.66%

Net fixed assets produc tivity [%] 150.25% 125.22% 47.54% 107.69% 398.93% 1084.32%

InvestmentsInves tment outlays per company [mn INR] 16876.83 19652.85 24.55 297.59 2170.69 7472.18

Share of quoted equity inves tments [%] 0.78% 0.65% 0.00% 0.00% 0.00% 0.19%

Investment outlays as share in net revenue [%] 36.19% 40.00% 3.68% 19.44% 45.99% 144.37%

Investment outlays to deprec iation ratio [%] 772.58% 809.88% 60.54% 330.69% 1413.89% 5853.81%

Investment outlays index [%] 47.33% 43.90% -1.87% 14.13% 40.65% 713.18%

CostsShare of labor cos ts in total operating cos ts [%] 9.94% 10.20% 2.07% 4.68% 6.85% 14.98%

Share of s tock inc rease cos ts in total operating cos ts [%] 0.14% 0.11% 0.00% 0.00% 0.00% 0.27%

Share of energy cos ts in total operating cos ts [%] 42.57% 42.90% 0.76% 1.66% 24.50% 76.97%

Share of raw material cos t in total operating cos ts [%] 27.87% 25.79% 0.00% 0.00% 0.00% 55.56%

Share of other manufac turing expenses in total operating cos ts [%] 10.05% 9.99% 0.43% 6.28% 9.50% 20.25%

Share of selling and admin. expenses in total operating cos ts [%] 1.52% 1.95% 1.29% 3.15% 6.28% 15.80%

Share of mis cellaneous expenses in total operating cos ts [%] 2.30% 1.85% 0.16% 1.03% 2.06% 4.81%

Share of deprec iation in total operating cos ts [%] 5.61% 6.04% 0.97% 2.97% 7.53% 14.40%



-13-



Number of companiesPeriod Q 108 Q 208 Q 308 Q 408

Value 28 31 30 30

Q /Q inc rease 0 3 -1 0

Y/Y inc rease 3 5 1 2

Period Q 109 Q 209 Q 309 Q 409

Value 29 34 35 34

Q /Q inc rease -1 5 1 -1

Y /Y inc rease 1 3 5 4

Period Q 110 Q 210 Q 310 Q 410

Value 33 35 35 36

Q /Q inc rease -1 2 0 1

Y/Y inc rease 4 1 0 2

Net revenue per company [mn INR]Period Q 108 Q 208 Q 308 Q 408

Value [mn INR] 12 263.0 9 917.6 11 456.8 12 512.2

Q /Q dynamics [%] 20.44% -19.13% 15.52% 9.21%

Y/Y dynamics [%] 4.53% 9.02% 25.94% 22.89%

Period Q 109 Q 209 Q 309 Q 409

Value [mn INR] 14 424.4 11 217.4 11 265.0 11 523.2

Q /Q dynamics [%] 15.28% -22.23% 0.42% 2.29%

Y/Y dynamics [%] 17.63% 13.11% -1.67% -7.90%

Period Q 110 Q 210 Q 310 Q 410

Value [mn INR] 14 821.3 11 687.8 12 325.9 12 204.1

Q /Q dynamics [%] 28.62% -21.14% 5.46% -0.99%

Y/Y dynamics [%] 2.75% 4.19% 9.42% 5.91%

Period Q 108 Q 208 Q 308 Q 408

Value [mn INR] 10 293.8 8 248.3 9 615.2 10 507.8

Q /Q dynamics [%] 25.07% -19.87% 16.57% 9.28%

Y/Y dynamics [%] 7.10% 6.75% 30.63% 27.67%

Period Q 109 Q 209 Q 309 Q 409

Value [mn INR] 12 546.8 9 121.8 9 078.8 9 339.5

Q /Q dynamics [%] 19.40% -27.30% -0.47% 2.87%

Y/Y dynamics [%] 21.89% 10.59% -5.58% -11.12%

Period Q 110 Q 210 Q 310 Q 410

Value [mn INR] 12 720.3 9 438.9 9 751.7 9 786.6

Q /Q dynamics [%] 36.20% -25.80% 3.31% 0.36%

Y/Y dynamics [%] 1.38% 3.48% 7.41% 4.79%

Total operating cost (incl. depreciation) per company [mn INR]

Net revenue & total operating costs per company

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

Q10

8

Q20

8

Q30

8

Q40

8

Q10

9

Q20

9

Q30

9

Q40

9

Q11

0

Q21

0

Q31

0

Q41

0

Period

[mn

IN

R]

Net revenue per company [mn INR] Total operating cos t (inc l. deprec iation) per company [mn INR]

General Indicators

rise of number of listed companies covered by the database in Q410 comparing to the value in Q310

fall of Y/Y dynamics of net revenue per company in Q410 comparing to the value in Q310

fall of Y/Y dynamics of total operating cost (incl. depreciation) per company in Q410 comparing to the value in Q310



-14-



EBITDA profit per company [mn INR]Period Q 108 Q 208 Q 308 Q 408

Value [mn INR] 3 158.1 2 606.7 2 933.9 3 281.1

Q /Q dynamics [%] 2.27% -17.46% 12.55% 11.83%

Y/Y dynamics [%] -3 .79% 9.93% 2.95% 6.25%

Period Q 109 Q 209 Q 309 Q 409

Value [mn INR] 3 642.4 3 127.9 3 350.9 3 647.4

Q /Q dynamics [%] 11.01% -14.13% 7.13% 8.85%

Y/Y dynamics [%] 15.33% 19.99% 14.21% 11.16%

Period Q 110 Q 210 Q 310 Q 410

Value [mn INR] 3 994.1 3 357.9 3 776.8 3 550.3

Q /Q dynamics [%] 9.51% -15.93% 12.48% -6.00%

Y/Y dynamics [%] 9.66% 7.35% 12.71% -2.66%

EBITDA profit per company [mn INR]

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Period

[mn

IN

R]

-5%

0%

5%

10%

15%

20%

25%

Y/Y

dynam

ics

of

EB

ITD

A

pro

fit

per

com

pany (

all

com

panie

s) [

%]

EBITDA profit per company [mn INR] Y /Y dynamics of EBITDA profit per company (all companies) [%]

P eriod Q 108 Q 208 Q 308 Q 408

Value [mn INR] 3 689.7 2 886.0 3 143.6 3 786.8

Q /Q dynamics [%] 15.22% -21.78% 8.93% 20.46%

Y/Y dynamics [%] 7.91% 17.03% 10.31% 18.25%

Period Q 109 Q 209 Q 309 Q 409

Value [mn INR] 4 086.4 3 702.3 3 909.5 4 277.2

Q /Q dynamics [%] 7.91% -9.40% 5.60% 9.40%

Y/Y dynamics [%] 10.75% 28.28% 24.36% 12.95%

Period Q 110 Q 210 Q 310 Q 410

Value [mn INR] 4 718.7 3 976.3 4 408.1 4 123.3

Q /Q dynamics [%] 10.32% -15.73% 10.86% -6.46%

Y/Y dynamics [%] 15.47% 7.40% 12.75% -3.60%

EBITDA profit per profit-making company [mn INR]

EBITDA profit per profit-making company [mn INR]

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Period

[mn

IN

R]

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

Y/Y

dynam

ics

of

EB

ITD

A

pro

fit

per

com

pany (

pro

fit-

makin

g c

om

panie

s) [

%]

EBITDA profit per profit-making company [mn INR]Y /Y dynamics of EBITDA profit per company (profit-making companies ) [%]

fall of Y/Y dynamics of EBITDA profit per company in Q410 comparing to the value in Q310

fall of Y/Y dynamics of EBITDA profit per profit-making company in Q410 comparing to the value in Q310



-15-



Gross profit per company [mn INR]Period Q 108 Q 208 Q 308 Q 408

Value [mn INR] 2 255.2 1 566.0 1 846.0 2 009.3

Q /Q dynamics [%] 1.47% -30.56% 17.88% 8.85%

Y/Y dynamics [%] -6 .02% -16.09% -9.64% -9.59%

Period Q 109 Q 209 Q 309 Q 409

Value [mn INR] 2 443.8 2 107.1 2 172.0 2 421.5

Q /Q dynamics [%] 21.62% -13.78% 3.08% 11.49%

Y/Y dynamics [%] 8.36% 34.56% 17.66% 20.52%

Period Q 110 Q 210 Q 310 Q 410

Value [mn INR] 2 549.5 2 149.8 2 536.8 2 387.9

Q /Q dynamics [%] 5.29% -15.68% 18.00% -5.87%

Y/Y dynamics [%] 4.33% 2.03% 16.79% -1.39%

Gross profit per profit-making company [mn INR]Period Q 108 Q 208 Q 308 Q 408

Value [mn INR] 2 638.5 1 734.9 1 977.9 2 409.2

Q /Q dynamics [%] 14.30% -34.25% 14.01% 21.80%

Y/Y dynamics [%] 5.51% -10.61% -3.18% 4.37%

Period Q 109 Q 209 Q 309 Q 409

Value [mn INR] 2 728.6 2 527.0 2 577.4 2 904.6

Q /Q dynamics [%] 13.26% -7.39% 2.00% 12.69%

Y/Y dynamics [%] 3.42% 45.66% 30.31% 20.56%

Period Q 110 Q 210 Q 310 Q 410

Value [mn INR] 3 138.2 2 648.6 2 997.1 2 779.1

Q /Q dynamics [%] 8.05% -15.60% 13.16% -7.27%

Y/Y dynamics [%] 15.01% 4.81% 16.28% -4.32%

Gross profit per company [mn INR]

0

500

1 000

1 500

2 000

2 500

3 000

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Period

[mn

IN

R]

-20%

-10%

0%

10%

20%

30%

40%

Y/Y

dynam

ics

of

gro

ss

pro

fit

per

com

pany (

all

com

panie

s) [

%]

Gross profit per company [mn INR] Y /Y dynamics of gross profit per company (all companies ) [%]

Gross profit per profit-making company [mn INR]

0

500

1 000

1 500

2 000

2 500

3 000

3 500

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Period

[mn

IN

R]

-20%

-10%

0%

10%

20%

30%

40%

50%

Y/Y

dynam

ics

of

gro

ss

pro

fit

per

com

pany (

pro

fit-

makin

g c

om

panie

s) [

%]

Gross profit per profit-making company [mn INR]Y /Y dynamics of gross profit per company (profit-making companies) [%]

fall of Y/Y dynamics of gross profit per company in Q410 comparing to the value in Q310

fall of Y/Y dynamics of gross profit per profit-making company in Q410 comparing to the value in Q310



-16-



Net profit per company [mn INR]Period Q 108 Q 208 Q 308 Q 408

Value [mn INR] 1 612.4 1 219.4 1 505.4 1 420.2

Q /Q dynamics [%] 0.97% -24.37% 23.46% -5.66%

Y/Y dynamics [%] -3 .42% -17.14% -3.82% -11.06%

Period Q 109 Q 209 Q 309 Q 409

Value [mn INR] 1 913.9 1 596.0 1 620.5 1 766.5

Q /Q dynamics [%] 34.76% -16.61% 1.53% 9.02%

Y/Y dynamics [%] 18.70% 30.88% 7.64% 24.39%

Period Q 110 Q 210 Q 310 Q 410

Value [mn INR] 1 906.5 1 605.0 1 838.8 1 673.2

Q /Q dynamics [%] 7.92% -15.81% 14.56% -9.01%

Y/Y dynamics [%] -0 .39% 0.57% 13.47% -5.29%

Net profit per company [mn INR]

0

500

1 000

1 500

2 000

2 500

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Period

[mn

IN

R]

-20%

-10%

0%

10%

20%

30%

40%

Y/Y

dynam

ics

of

net

pro

fit

per

com

pany (

all c

om

panie

s)

[%]

Net profit per company [mn INR] Y /Y dynamics of net profit per company (all companies) [%]

Net profit per profit-making company [mn INR]Period Q 108 Q 208 Q 308 Q 408

Value [mn INR] 1 887.3 1 351.2 1 613.1 1 810.9

Q /Q dynamics [%] 13.96% -28.41% 19.38% 12.26%

Y/Y dynamics [%] 8.46% -11.72% 3.06% 9.35%

Period Q 109 Q 209 Q 309 Q 409

Value [mn INR] 2 207.7 1 927.9 1 955.1 2 179.7

Q /Q dynamics [%] 21.91% -12.67% 1.41% 11.49%

Y/Y dynamics [%] 16.97% 42.68% 21.20% 20.37%

Period Q 110 Q 210 Q 310 Q 410

Value [mn INR] 2 531.7 2 013.0 2 182.9 1 947.9

Q /Q dynamics [%] 16.15% -20.49% 8.44% -10.77%

Y/Y dynamics [%] 14.68% 4.42% 11.66% -10.63%

Net profit per profit-making company [mn INR]

0

500

1 000

1 500

2 000

2 500

3 000

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Period

[mn

IN

R]

-20%

-10%

0%

10%

20%

30%

40%

50%

Y/Y

dynam

ics

of

net

pro

fit

per

com

pany (

pro

fit-

makin

g

com

panie

s) [

%]

Net profit per profit-making company [mn INR]Y /Y dynamics of net profit per company (profit-making companies) [%]

fall of Y/Y dynamics of net profit per company in Q410 comparing to the value in Q310

fall of Y/Y dynamics of net profit per profit-making company in Q410 comparing to the value in Q310



-17-



Cash flow per company [mn INR]

-1 000

-500

0

500

1 000

1 500

2 000

2007

2008

2009

2010

Period

[mn

IN

R]

-50%

0%

50%

100%

150%

200%

250%

300%

350%

400%

450%

Y/

Y d

yn

am

ics o

f cash

flo

w

per

co

mp

an

y [

%]

C ash flow per company [mn INR] Y /Y dynamics of cash flow per company [%]

rise of Y/Y dynamics of cash flow per company in 2010 comparing to the value in 2009

Cash flow per company [mn INR]Period 2007 2008 2009 2010

Value [mn INR] -464.54 1 490.12 1 318.56 1 561.15

Y/Y dynamics [%] 50.41% 420.78% -11.51% 18.40%

Cash flow per profit-making company [mn INR]

-1 000

-500

0

500

1 000

1 500

2 000

2007

2008

2009

2010

Period

[mn

IN

R]

-100%

0%

100%

200%

300%

400%

500%

600%

Y/

Y d

yn

am

ics o

f cash

flo

w p

er

pro

fit-

makin

g c

om

pan

y [

%]

C ash flow per profit-making company [mn INR] Y /Y dynamics of cash flow per profit-making company [%]

rise of Y/Y dynamics of cash flow per profit-making company in 2010 comparing to the value in 2009

Cash flow per profit-making company [mn INR]Period 2007 2008 2009 2010

Value [mn INR] -464.54 1 793.86 1 472.34 1 641.16

Y/Y dynamics [%] 50.41% 486.16% -17.92% 11.47%



-18-



Profitability Ratios Share of profit-making companies [%]Period Q 108 Q 208 Q 308 Q 408

Value [%] 85.71% 90.32% 93.33% 86.67%

Q /Q inc rease [%] -10 .71% 4.61% 3.01% -6.67%

Y/Y inc rease [%] -10 .29% -5.83% -6.67% -9.76%

Period Q 109 Q 209 Q 309 Q 409

Value [%] 89.66% 85.29% 85.71% 85.29%

Q /Q inc rease [%] 2.99% -4.36% 0.42% -0.42%

Y/Y inc rease [%] 3.94% -5.03% -7.62% -1.37%

Period Q 110 Q 210 Q 310 Q 410

Value [%] 84.85% 85.71% 85.71% 86.11%

Q /Q inc rease [%] -0 .45% 0.87% 0.00% 0.40%

Y/Y inc rease [%] -4 .81% 0.42% 0.00% 0.82%

Share of profit-making companies [%]

80%

82%

84%

86%

88%

90%

92%

94%

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Period

EBITDA Sales Margin [%]Period Q 108 Q 208 Q 308 Q 408

Value [%] 28.22% 28.23% 26.90% 25.96%

Q /Q inc rease [%] -0 .68% 0.01% -1.33% -0.94%

Y/Y inc rease [%] 1.28% 1.33% -1.35% -2.94%

Period Q 109 Q 209 Q 309 Q 409

Value [%] 25.80% 26.17% 27.12% 28.43%

Q /Q inc rease [%] -0 .16% 0.37% 0.95% 1.31%

Y/Y inc rease [%] -2 .42% -2.05% 0.22% 2.47%

Period Q 110 Q 210 Q 310 Q 410

Value [%] 28.92% 29.11% 29.34% 28.76%

Q /Q inc rease [%] 0.49% 0.19% 0.23% -0.58%

Y/Y inc rease [%] 3.12% 2.94% 2.22% 0.33%

EBITDA Sales Margin [%]

23%

24%

25%

26%

27%

28%

29%

30%

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Period

rise of share of profit-making companies in Q410 comparing to the value in Q310

fall of EBITDA sales margin in Q410 comparing to the value in Q310



-19-



Net Sales Margin [%]Period Q 108 Q 208 Q 308 Q 408

Value [%] 15.37% 14.46% 13.54% 12.48%

Q /Q inc rease [%] -0 .35% -0.91% -0.92% -1.07%

Y/Y inc rease [%] 0.63% -0.62% -2.34% -3.24%

Period Q 109 Q 209 Q 309 Q 409

Value [%] 12.54% 12.97% 13.26% 14.24%

Q /Q inc rease [%] 0.07% 0.43% 0.28% 0.99%

Y/Y inc rease [%] -2 .83% -1.49% -0.29% 1.77%

Period Q 110 Q 210 Q 310 Q 410

Value [%] 14.11% 13.99% 14.13% 13.76%

Q /Q inc rease [%] -0 .13% -0.12% 0.14% -0.37%

Y/Y inc rease [%] 1.57% 1.02% 0.88% -0.48%

Net Sales Margin [%]

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Period

Effective tax rate [%]Period Q 108 Q 208 Q 308 Q 408

Value [%] 25.66% 25.96% 24.85% 23.95%

Q /Q inc rease [%] -0 .51% 0.30% -1.11% -0.90%

Y/Y inc rease [%] 3.44% 2.38% 0.59% -2.22%

Period Q 109 Q 209 Q 309 Q 409

Value [%] 21.10% 21.60% 22.85% 22.98%

Q /Q inc rease [%] -2 .85% 0.50% 1.25% 0.12%

Y/Y inc rease [%] -4 .56% -4.36% -2.00% -0.97%

Period Q 110 Q 210 Q 310 Q 410

Value [%] 22.90% 22.98% 23.79% 24.97%

Q /Q inc rease [%] -0 .08% 0.08% 0.82% 1.18%

Y/Y inc rease [%] 1.80% 1.37% 0.94% 1.99%

Effective tax rate [%]

0%

5%

10%

15%

20%

25%

30%

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Period

rise of effective tax rate in Q410 comparing to the value in Q310

fall of net sales margin in Q410 comparing to the value in Q310



-20-



Return on Assets [%]Period 2007 2008 2009 2010

Value [%] 13.16% 8.27% 7.85% 6.34%

Y/Y inc rease [%] 0.63% -4.89% -0.42% -1.51%

Equity dividend ratio [%]Period 2007 2008 2009 2010

Value [%] 11.75% 11.75% 11.46% 15.04%

Y/Y inc rease [%] 1.56% 0.00% -0.29% 3.59%

fall of return on assets in 2010 comparing to the value in 2009

rise of equity dividend ratio in 2010 comparing to the value in 2009

Return on Assets [%]

0%

2%

4%

6%

8%

10%

12%

14%

2007

2008

2009

2010

Period

Equity dividend ratio [%]

0%

2%

4%

6%

8%

10%

12%

14%

16%

2007

2008

2009

2010

Period

Return on Equity [%]Period 2007 2008 2009 2010

Value [%] 17.40% 12.99% 13.62% 11.18%

Y/Y inc rease [%] -0 .48% -4.41% 0.62% -2.44%

fall of return on equity in 2010 comparing to the value in 2009

Return on Equity [%]

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

2007

2008

2009

2010

Period



-21-



Liquidity Ratios

Current ratio [%]Period 2007 2008 2009 2010

Value [%] 228.69% 253.90% 237.73% 245.28%

Y/Y inc rease [%] -37 .02% 25.21% -16.16% 7.55%

Current ratio [%]

215%

220%

225%

230%

235%

240%

245%

250%

255%

260%

2007

2008

2009

2010

Period

Quick ratio [%]Period 2007 2008 2009 2010

Value [%] 197.86% 223.14% 212.25% 220.58%

Y/Y inc rease [%] -35 .13% 25.28% -10.89% 8.33%

Quick ratio [%]

180%

185%

190%

195%

200%

205%

210%

215%

220%

225%

230%

2007

2008

2009

2010

Period

Super quick ratio [%]Period 2007 2008 2009 2010

Value [%] 47.08% 72.02% 62.72% 66.90%

Y/Y inc rease [%] -19 .81% 24.94% -9.30% 4.19%

Super quick ratio [%]

0%

10%

20%

30%

40%

50%

60%

70%

80%

2007

2008

2009

2010

Period

rise of current ratio in 2010 comparing to the value in 2009

rise of quick ratio in 2010 comparing to the value in 2009

rise of super quick ratio in 2010 comparing to the value in 2009



-22-



Sundry debtors to sundry creditors ratio [%]Period 2007 2008 2009 2010

Value [%] 233.88% 179.18% 190.53% 181.51%

Y/Y inc rease [%] 3.04% -54.69% 11.35% -9.02%

Sundry debtors to sundry creditors ratio [%]

0%

50%

100%

150%

200%

250%

2007

2008

2009

2010

Period

Financial Cycles

fall of sundry debtors to sundry creditors ratio in 2010 comparing to the value in 2009

Days of coverage for Cash & Equivalent [days]Period 2007 2008 2009 2010

Value [days] -77 -62 -73 -81

Y/Y inc rease [days] -26 15 -12 -7

Days of coverage for Cash & Equivalent [days]

-90

-80

-70

-60

-50

-40

-30

-20

-10

0

2007

2008

2009

2010

Period

Days of coverage for receivables [days]Period 2007 2008 2009 2010

Value [days] 141 96 106 105

Y/Y inc rease [days] 7 -46 10 -1

Days of coverage for receivables [days]

0

20

40

60

80

100

120

140

160

2007

2008

2009

2010

Period

fall of days of coverage for cash & equivalent in 2010 comparing to the value in 2009

fall of days of coverage for receivables in 2010 comparing to the value in 2009



-23-



Days of coverage for inventories [days]Period 2007 2008 2009 2010

Value [days] 60 42 39 39

Y/Y inc rease [days] 5 -17 -3 -1

Days of coverage for inventories [days]

0

10

20

30

40

50

60

70

2007

2008

2009

2010

Period

Days of coverage for short term liabilities [days]Period 2007 2008 2009 2010

Value [days] 277 200 219 224

Y/Y inc rease [days] 38 -78 19 6

Days of coverage for short term liabilities [days]

0

50

100

150

200

250

300

2007

2008

2009

2010

Period

stabilisation of days of coverage for inventories in 2010 comparing to the value in 2009

rise of days of coverage for short term liabilities in 2010 comparing to the value in 2009

Financial Leverage Ratios

rise of debt to equity ratio in 2010 comparing to the value in 2009

Debt to Equity ratio [%]Period 2007 2008 2009 2010

Value [%] 32.27% 57.17% 73.48% 76.25%

Y/Y inc rease [%] -10 .51% 24.91% 16.30% 2.77%

Debt to Equity ratio [%]

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2007

2008

2009

2010

Period



-24-



Equity to total assets ratio [%]Period 2007 2008 2009 2010

Value [%] 75.60% 63.62% 57.64% 56.74%

Y/Y inc rease [%] 5.56% -11.98% -5.98% -0.91%

Share of loans from banks in total debt [%]Period 2007 2008 2009 2010

Value [%] 100.00% 100.00% 100.00% 100.00%

Y/Y inc rease [%] 0.00% 0.00% 0.00% 0.00%

Secured to unsecured loans ratio [%]Period 2007 2008 2009 2010

Value [%] 81.66% 68.08% 129.84% 183.63%

Y/Y inc rease [%] 13.78% -13.57% 61.76% 53.79%

Equity to total assets ratio [%]

0%

10%

20%

30%

40%

50%

60%

70%

80%

2007

2008

2009

2010

Period

Share of loans from banks in total debt [%]

0 .00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

2007

2008

2009

2010

Period

Secured to unsecured loans ratio [%]

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

2007

2008

2009

2010

Period

fall of equity to total assets ratio in 2010 comparing to the value in 2009

stabilisation of share of loans from banks in total debt in 2010 comparing to the value in 2009

rise of secured to unsecured loans ratio in 2010 comparing to the value in 2009



-25-



rise of operating profit coverage in 2010 comparing to the value in 2009

Operating profit coverage [years]

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2007

2008

2009

2010

Period

Operating profit coverage [years]Period 2007 2008 2009 2010

Value [year] 1.01 2.11 2.70 3.26

Y/Y inc rease [year] -0 .32 1.10 0.58 0.57

Production Factors

Labour intensity of production [%]

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

2007

2008

2009

2010

Energy intensity of production [%]

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

2007

2008

2009

2010

Labour intensity of production [%]Period 2007 2008 2009 2010

Value [%] 9.14% 6.48% 8.30% 8.34%

Y/Y inc rease [%] 0.93% -29.04% 28.08% 0.49%

Energy intensity of production [%]Period 2007 2008 2009 2010

Value [%] 31.95% 40.19% 35.54% 35.09%

Y/Y inc rease [%] 4.67% 25.79% -11.57% -1.28%

rise of labour intensity of production in 2010 comparing to the value in 2009

fall of energy intensity of production in 2010 comparing to the value in 2009



-26-



fall of material intensity of production in 2010 comparing to the value in 2009

fall of total assets turnover in 2010 comparing to the value in 2009

fall of net fixed assets productivity in 2010 comparing to the value in 2009

Material intensity of production [%]Period 2007 2008 2009 2010

Value [%] 26.84% 24.30% 23.27% 21.10%

Y/Y inc rease [%] 1.49% -2.54% -1.03% -2.17%

Material intensity of production [%]

0%

5%

10%

15%

20%

25%

30%

2007

2008

2009

2010

Total assets turnover [%]Period 2007 2008 2009 2010

Value [%] 83.43% 66.33% 54.94% 46.04%

Y/Y inc rease [%] -1 .91% -20.50% -17.17% -16.19%

Net fixed assets productivity [%]Period 2007 2008 2009 2010

Value [%] 310.29% 221.19% 150.25% 125.22%

Y/Y inc rease [%] 35.83% -89.10% -70.94% -25.03%

Total assets turnover [%]

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2007

2008

2009

2010

Net fixed assets productivity [%]

0%

50%

100%

150%

200%

250%

300%

350%

2007

2008

2009

2010



-27-



Investment OutlaysInvestment outlays per company [mn INR]Period 2007 2008 2009 2010

Value [mn INR] 12 221.84 15 884.86 16 876.83 19 652.85

Y/Y dynamics [%] 80.31% 29.97% 6.24% 16.45%

Share of quoted equity investments [%]Period 2007 2008 2009 2010

Value [%] 2.17% 0.78% 0.78% 0.65%

Y/Y inc rease [%] -2 .78% -1.39% 0.00% -0.13%

Investment outlays as share in net revenue [%]Period 2007 2008 2009 2010

Value [%] 31.72% 34.79% 36.19% 40.00%

Y/Y inc rease [%] 13.15% 3.06% 1.40% 3.81%

rise of investment outlays per company in 2010 comparing to the value in 2009

fall of share of quoted equity investments in 2010 comparing to the value in 2009

rise of investment outlays as share in net revenue in 2010 comparing to the value in 2009

Investment outlays per company [mn INR]

0

5 000

10 000

15 000

20 000

25 000

2007

2008

2009

2010

Period

[mn

IN

R]

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Y/

Y d

yn

am

ics o

f in

vestm

en

t o

utl

ays p

er

co

mp

an

y [

%]

Inves tment outlays per company [mn INR] Y /Y dynamics of inves tment outlays per company [%]

Share of quoted equity investments [%]

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

2007

2008

2009

2010

Investment outlays as share in net revenue [%]

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2007

2008

2009

2010



-28-



rise of investment outlays to depreciation ratio in 2010 comparing to the value in 2009

fall of investment outlays index in 2010 comparing to the value in 2009

Investment outlays to depreciation ratio [%]Period 2007 2008 2009 2010

Value [%] 944.86% 918.85% 772.58% 809.88%

Y/Y inc rease [%] 90.67% -2.75% -15.92% 4.83%

Investment outlays index [%]Period 2007 2008 2009 2010

Value [%] 88.02% 68.57% 47.33% 43.90%

Y/Y inc rease [%] 47.33% -19.45% -21.24% -3.43%

Investments structure [%]

Q uoted Equity [%] 0.78% 0.78% 0.65%

Unquoted Equity [%] 18.59% 16.33% 13.37%

O ther Inves tments [%] 80.63% 82.90% 85.98%

Period 2008 2009 2010

Investment outlays to depreciation ratio [%]

0%

100%

200%

300%

400%

500%

600%

700%

800%

900%

1000%

2007

2008

2009

2010

Investment outlays index [%]

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2007

2008

2009

2010



-29-



Investments structure [%]

0%

20%

40%

60%

80%

100%

2008 2009 2010

Period

Quoted Equity [%] Unquoted Equity [%] Other Investments [%]

Costs

Share of labor costs in total operating costs [%]Period 2007 2008 2009 2010

Value [%] 10.16% 7.38% 9.94% 10.20%

Y/Y inc rease [%] -0 .14% -2.79% 2.57% 0.26%

Share of labor costs in total operating costs [%]

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2007

2008

2009

2010

Period

rise of share of labor costs in total operating costs in 2010 comparing to the value in 2009

Investments structure [%] (2010)

0.6%13.4%

86.0%

Q uoted Equity [%] Unquoted Equity [%] O ther Investments [%]



-30-



fall of share of stock increase costs in total operating costs in 2010 comparing to the value in 2009

rise of share of energy costs in total operating costs in 2010 comparing to the value in 2009

fall of share of raw material cost in total operating costs in 2010 comparing to the value in 2009

Period 2007 2008 2009 2010

Value [%] 0.00% 0.07% 0.14% 0.11%

Y/Y inc rease [%] 0.00% 0.07% 0.07% -0.03%

Share of stock increase costs in total operating costs [%]

Share of stock increase costs in total operating costs [%]

0.0%

0.0%

0.0%

0.1%

0.1%

0.1%

0.1%

0.1%

0.2%

2007

2008

2009

2010

Period

Period 2007 2008 2009 2010

Value [%] 35.55% 45.75% 42.57% 42.90%

Y/Y inc rease [%] 0.79% 10.19% -3.18% 0.33%

Share of energy costs in total operating costs [%]

Share of energy costs in total operating costs [%]

0 .0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

2007

2008

2009

2010

Period

Period 2007 2008 2009 2010

Value [%] 29.86% 27.66% 27.87% 25.79%

Y/Y inc rease [%] 0.99% -2.21% 0.21% -2.08%

Share of raw material cost in total operating costs [%]

Share of raw material cost in total operating costs [%]

23.0%

24.0%

25.0%

26.0%

27.0%

28.0%

29.0%

30.0%

31.0%

2007

2008

2009

2010

Period



-31-



fall of share of other manufacturing expenses in total operating costs in 2010 comparing to the value in 2009

rise of share of selling and administration expenses in total operating costs in 2010 comparing to the value in 2009

fall of share of miscellaneous expenses in total operating costs in 2010 comparing to the value in 2009

Period 2007 2008 2009 2010

Value [%] 12.56% 8.54% 10.05% 9.99%

Y/Y inc rease [%] -2 .38% -4.01% 1.50% -0.06%

Share of other manufacturing expenses in total operating costs [%]

Period 2007 2008 2009 2010

Value [%] 3.33% 2.69% 1.52% 1.95%

Y/Y inc rease [%] -0 .04% -0.64% -1.17% 0.43%

Share of selling and admin. expenses in total operating costs [%]

Period 2007 2008 2009 2010

Value [%] 4.80% 3.61% 2.30% 1.85%

Y/Y inc rease [%] 1.31% -1.19% -1.31% -0.45%

Share of miscellaneous expenses in total operating costs [%]


0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2007

2008

2009

2010

Period

Share of selling and admin. expenses in total operating costs [%]

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

2007

2008

2009

2010

Period

Share of miscellaneous expenses in total operating costs [%]

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

2007

2008

2009

2010

Period



-32-



Share of depreciation in total operating costs [%]

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

2007

2008

2009

2010

Period

Period 2007 2008 2009 2010

Value [%] 3.74% 4.31% 5.61% 6.04%

Y/Y inc rease [%] -0 .53% 0.57% 1.30% 0.43%

Share of depreciation in total operating costs [%]rise of share of depreciation in total operating costs in 2010 comparing to the value in 2009

Costs structure [%]

Inc rease in Stock [%] 0.07% 0.14% 0.11%

Raw Materials C os ts [%] 27.66% 27.87% 25.79%

P ower Generation & Dis tribution C os t [%] 45.75% 42.57% 42.90%

O ther Manufac turing Expenses [%] 8.54% 10.05% 9.99%

Employee C os t [%] 7.38% 9.94% 10.20%

Selling and A dminis tration Expenses [%] 2.69% 1.52% 1.95%

Miscellaneous Expenses [%] 3.61% 2.30% 1.85%

Deprec iation [%] 4.31% 5.61% 6.04%

O ther operational cos ts [%] 0.00% 0.00% 1.18%

Period 2008 2009 2010

Costs structure [%]

0%

20%

40%

60%

80%

100%

2008 2009 2010

PeriodIncrease in Stock [%] Raw Materials Costs [%]

Power Generation & Distribution Cost [%] Other Manufacturing Expenses [%]

Employee Cost [%] Selling and Administration Expenses [%]

Miscellaneous Expenses [%] Depreciation [%]

Other operational costs [%]

power generation & distribution cost dominates in the cost structure



-33-


Structure of Fixed Assets

Costs structure [%] (2010)

0 .1%

25.8%

10.0%

10.2%

1.9%1.8%

1.2%

6.0%

42.9%Increase in Stock [%] Raw Materials C os ts [%]

Power Generation & Dis tribution C os t [%] O ther Manufac turing Expenses [%]

Employee C os t [%] Selling and A dminis tration Expenses [%]

M iscellaneous Expenses [%] Deprec iation [%]

O ther operational cos ts [%]

Fixed assets structure [%]

Goodwill [%] 0.00% 0.46% 0.49%

Freehold Land [%] 2.68% 2.18% 1.95%

Land Improvements [%] 0.00% 0.01% 0.01%

Buildings [%] 6.73% 5.75% 5.93%

P lant & Machinery [%] 74.17% 78.57% 74.52%

Furniture & Fixtures & O ffice A ppliances [%] 0.97% 0.79% 0.71%

V ehic les [%] 0.25% 0.19% 0.18%

Railway T racks & Sidings [%] 1.09% 0.76% 0.62%

A irc rafts & Helicopters [%] 0.03% 0.04% 0.06%

Leasehold Land [%] 0.93% 0.71% 1.05%

C omputer Software [%] 0.81% 0.68% 0.61%

Technical know-how [%] 0.02% 0.01% 0.01%

O ther Fixed A ssets [%] 12.32% 9.85% 13.85%

Period 2008 2009 2010

Fixed assets structure [%]

0%

20%

40%

60%

80%

100%

2008 2009 2010

PeriodGoodwill [%] Freehold Land [%]Land Improvements [%] Buildings [%]Plant & Machinery [%] Furniture & Fixtures & Office Appliances [%]Vehicles [%] Railway Tracks & Sidings [%]Aircrafts & Helicopters [%] Leasehold Land [%]Computer Software [%] Technical know-how [%]Other Fixed Assets [%]

plant& machinery dominate in the fixed assets structure




-34-


Fixed assets structure [%] (2010)

0.5%2.0% 5.9%

74.5%

0.7%0.2%1.1%0.6%

13.9%

0.0%0.0%

0.6%

0.1%

Goodwill [%] Freehold Land [%]Land Improvements [%] Buildings [%]P lant & Machinery [%] Furniture & Fixtures & O ffice A ppliances [%]V ehic les [%] Railway T racks & Sidings [%]A irc rafts & Helicopters [%] Leasehold Land [%]C omputer Software [%] Technical know-how [%]O ther Fixed A ssets [%]

Structure of Current AssetsCurrent assets structure [%]

Inventories [%] 12.11% 10.72% 10.07%

Sundry Debtors [%] 27.41% 28.81% 27.43%

C ash & Bank [%] 28.37% 26.38% 27.28%

Loans and A dvances [%] 28.62% 30.71% 31.91%

O ther current assets [%] 3.49% 3.38% 3.32%

Period 2008 2009 2010 loans and advances dominate in the current assets structure

Current assets structure [%]

0%

20%

40%

60%

80%

100%

2008 2009 2010

Period

Inventories [%] Sundry Debtors [%] Cash & Bank [%] Loans and Advances [%] Other current assets [%]




-35-


Current assets structure [%] (2010)

10.1%

27.4%

31.9%

3.3%

27.3%

Inventories [%] Sundry Debtors [%] C ash & Bank [%] Loans and A dvances [%] O ther current assets [%]

Structure of Current Liabilities

Short-term liabilities structure [%]

Sundry C reditors [%] 26.71% 25.40% 25.80%

Unc laimed Dividend [%] 0.04% 0.05% 0.05%

Interes t A cc rued But Not Due [%] 0.80% 1.30% 1.44%

P rovis ions [%] 31.22% 29.35% 30.38%

O ther Short-term Liabilities [%] 41.24% 43.91% 42.33%

Period 2008 2009 2010 other short-term liabilities dominate in the short-term liabilities structure

Short-term liabilities structure [%]

0%

20%

40%

60%

80%

100%

2008 2009 2010

Period

Sundry Creditors [%] Unclaimed Dividend [%] Interest Accrued But Not Due [%]

Provisions [%] Other Short-term Liabilities [%]




-36-


Short-term liabilities structure [%] (2010)

25.8%

0.0%

30.4%

42.3%

1.4%

Sundry C reditors [%] Unc laimed Dividend [%] Interes t A ccrued But Not Due [%]

P rovis ions [%] O ther Short-term Liabilities [%]


Main LeveragesMain leveragesPeriod Q 108 Q 208 Q 308 Q 408

Total leverage (DTL) 1.49 1.49 1.48 1.44

Financ ial leverage (DFL) 1 .36 1.35 1 .34 1.30

EBITDA leverage (DO L) 1 .10 1.10 1 .10 1.11

Period Q 109 Q 209 Q 309 Q 409




Period Q 110 Q 210 Q 310 Q 410




Main leverages

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Period

DTL DFL DOL

Leverage Name of leverage Definition of leverage

DFL Degree of financial leverage = (ΔNP / NP) / (ΔEBITDA / EBITDA)

DEL Degree of EBITDA leverage = (ΔEBITDA / EBITDA) / (ΔNS / NS)

DTL Degree of total leverage = DFL * DOL

EBITDA

NS

NP Net profit

Key:

Earnings before interest, taxes, amortization and depreciation

Net sales

strong degree of total leverage

strong degree of financial leverage

strong degree of EBITDA leverage



-37

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//

/ISIEmergingMarketsPDF us-mckinsey1 from 115.249.53.242 on 2011-08-29 13:41:30 EDT. DownloadPDF.


-38-



Top players - Market Shares

Companies from the Sector

Company Net salesMarket share

Net sales dynamics

Net profit

NTPC Ltd. 532 731.7 26.45% 11.67% 83 384.0

Bharat Heavy Electricals Ltd. 380 596.6 18.90% 24.87% 51 227.4

Reliance Infrastructure Ltd 99 286.5 4.93% 0.67% 8 335.5

Power Grid Corpn. of India Ltd. 84 083.3 4.17% 16.56% 24 957.9

PTC India Ltd. 82 292.5 4.09% 6.76% 1 196.0

Tata Power Company Ltd. 69 509.0 3.45% 2.56% 9 043.8

Torrent Power Ltd. 68 293.5 3.39% 30.07% 10 141.0

Lanco Infratech Ltd. 58 798.5 2.92% -3.66% 3 665.1

Adani Enterprises Ltd. 51 299.8 2.55% -55.36% 2 767.2

Suzlon Energy Ltd. 46 080.5 2.29% 23.34% -12 790.5

Data on net sales and net profit are in mn INR and represent s tandlone values from 4 las t quarters

Market shares of top listed companies from the sectorQ4 2010

Top listed companies and their market shares (Q4 2010)

2 .29%

2.55%

2.92%

3.39%

3.45%

4.09%

4.17%

4.93%

18.90%

26.45%

0% 20% 40% 60%

Suzlon Energy Ltd.

A dani Enterprises Ltd.

Lanco Infratech Ltd.

Torrent P ower Ltd.

Tata P ower C ompany Ltd.

P TC India Ltd.

P ower Grid C orpn. of India Ltd.

Reliance Infras truc ture Ltd

Bharat Heavy E lec tricals Ltd.

NTPC Ltd.

0 500 1000 1500 2000



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19 0

64.0

160 4

51.1

54 4

14.1

192 6

70.9

20 9

62.4

85 3

45.5

527 7

11.4

164 9

57.8

174 8

72.2

58 9

43.8

245 9

39.3

Equit

y

[mn I

NR]

624 3

75.0

159 1

73.6

19 7

01.0

151 5

21.9

20 9

62.4

33 4

14.9

159 4

19.0

106 2

37.7

28 4

73.2

31 6

06.4

133 4

88.5

Y/Y

dyn

amic

s of

net

pro

fit

6.4

2%

37.3

6%

-22.0

6%

1.1

2%

3.6

0%

75.8

9%

20.7

2%

1.8

0%

17.1

2%

83.6

3%

22.5

6%

Net

Pro

fit

[mn I

NR]

87 2

82.0

43 1

06.4

2 5

44.1

11 5

16.9

941.0

1 2

40.6

20 4

09.4

9 3

87.6

2 8

86.6

4 8

63.8

18 4

17.8

Y/Y

dyn

amic

s of

net

reve

nues

10.4

9%

24.7

7%

0.0

8%

-0.5

1%

19.0

1%

2.7

9%

8.3

2%

-1.9

1%

3.2

8%

44.1

9%

11.0

5%

Net

Rev

enue

[mn I

NR]

463 7

77.0

332 6

00.0

115 8

47.8

96 8

98.5

77 7

03.4

72 9

94.8

71 2

74.5

70 9

82.7

64 3

42.2

58 8

67.0

142 5

28.8

Mar

ket

shar

e in

2010

20.5

8%

14.7

6%

6.1

9%

5.1

4%

4.3

0%

3.6

2%

3.5

4%

3.5

2%

3.1

9%

2.9

2%

6.7

8%

v v v v v v v v

Da

ta f

rom

20

10

Sh

are

of

net

reven

ues

of

top 1

0 c

om

pan

ies

in t

he

sect

or

67

.77

%

NT

PC

Ltd

.(M

ar,

20

10

)

Bh

ara

t H

eavy E

lectr

icals

Ltd

.(M

ar,

20

10

)

Ad

an

i E

nte

rpri

ses L

td.

(Mar,

20

10

)

Reli

an

ce I

nfr

astr

uctu

re L

td(M

ar,

20

10

)

PT

C I

nd

ia L

td.

(Mar,

20

10

)

Gu

jara

t S

tate

Ele

ctr

icit

y

Co

rpo

rati

on

Ltd

.(M

ar,

20

10

)

Po

wer

Gri

d C

orp

n.

of

Ind

ia

Ltd

.(M

ar,

20

10

)

Tata

Po

wer

Co

mp

an

y L

td.

(Mar,

20

10

)

An

dh

ra P

rad

esh

Po

wer

Gen

era

tio

n C

orp

ora

tio

n

Lim

ited

(Mar,

20

10

)

Lan

co

In

frate

ch

Ltd

.(M

ar,

20

10

)

Avera

ge

Main

in

dic

ato

rsPu

blic

com

-

pan

y

*)

Str

ate

gic

co

nclu

sio

ns

Po

ten

tial

for:

Effec

tive

tax

rate

Du

Po

nt

pyra

mid

Th

e d

ata

fo

r 2

00

8 a

nd

20

09

are

fro

m t

he A

cco

rd F

inte

ch

data

base.

Hen

ce,

the q

uali

ty o

f p

resen

ted

data

is

str

ictl

y l

imit

ed

by t

he q

uali

ty o

f d

ata

in

th

e A

cco

rd F

inte

ch

data

base.

*)

Pu

bli

c c

om

pan

ies r

ep

resen

t o

nly

th

ese P

LC

th

at

are

lis

ted

on

NS

E (

Nati

on

al

Sto

ck E

xch

an

ge)

or

BS

E

(Bo

mb

ay S

tock E

xch

an

ge)

Th

e d

ate

belo

w t

he c

om

pan

y's

nam

e r

ep

resen

ts t

he e

nd

of

fiscal

year.

Hig

h p

ote

nti

al

Med

ium

po

ten

tial

Lo

w p

ote

nti

al

In d

uP

on

t P

yra

mid

sto

ck v

ari

ab

les a

re n

ot

avera

ged

over

tim

e f

or

calc

ula

tio

n p

urp

oses

du

e t

o l

ack o

f th

ese d

ata



-40

-

Ele

ctri

c Po

wer

Gen

erat

ion, Tra

nsm

issi

on a

nd D

istr

ibuti

on

Lis

ted

co

mp

an

ies f

rom

th

e s

ect

or

(fro

m B

SE

& N

SE

)

βU - -

13.0

%

12.9

%

11.0

%

10.9

%

15.1

%

12.0

%

- -

8.8

%

8.7

%

12.4

%

11.6

%

16.3

%

16.0

%

11.7

%

12.7

%

- -

12.6

%

12.1

%

βL - -

13.0

%

12.9

%

15.8

%

15.5

%

16.8

%

13.0

%

- -

10.5

%

10.0

%

14.3

%

13.1

%

21.1

%

20.7

%

14.1

%

15.8

%

- -

15.1

%

14.4

%

βU - -

0.9

7

0.9

6

0.5

9

0.5

6

1.3

8

0.7

9

- -

0.1

8

0.1

5

0.8

7

0.7

0

1.6

1

1.5

5

0.7

2

0.9

2

- -

0.9

0

0.8

0

βL - -

0.9

8

0.9

6

1.5

2

1.4

6

1.7

1

0.9

8

- -

0.4

9

0.4

1

1.2

3

0.9

9

2.5

4

2.4

6

1.1

8

1.5

2

- -

1.3

8

1.2

5

P/BV

2.6

2.5

6.3

6.3

16.8

16.7

1.1

1.1

1.2

1.2

2.7

2.7

3.0

3.0

3.0

3.0

3.0

3.0

1.3

1.3

4.1

4.1

P/E

18.2

18.2

23.4

23.4

130.5

129.4

14.6

14.6

26.1

26.1

21.0

21.0

33.6

33.6

19.6

19.6

14.2

14.1

14.9

14.9

31.6

31.5

Δ%

P

(y/y

)

-6.8

%

-6.8

%

-13.7

%

-13.6

%

41.9

%

40.9

%

-31.1

%

-31.1

%

-25.6

%

-25.6

%

-4.9

%

-5.0

%

-3.1

%

-3.1

%

-24.2

%

-24.2

%

-13.2

%

-13.6

%

-16.9

%

-16.9

%

-9.8

%

-9.9

%

P

193.1

193.0

2 0

62.7

2 0

60.9

666.6

661.0

687.8

687.8

83.4

83.3

101.9

101.8

1 3

30.4

1 3

30.4

39.6

39.7

250.8

249.6

25.3

25.4

544.1

543.3

1 5

92.2

1 5

91.4

1 0

09.7

1 0

08.8

332.0

329.2

168.4

168.4

24.6

24.5

428.9

428.5

315.7

315.7

95.2

95.5

118.5

117.9

311.2

311.8

439.6

439.2

0.5

0.1

1.3

0.2

0.5

0.1 -

0.4

0.1

0.0

0.5

0.1 -

0.1

0.3

0.1

0.1

0.0

0.2

0.1

0.4

0.1

++

++

++

++

++

++

++

++

++

-+

++

++

++

++

++

++

++

-+

++

++

++

++

++

++

++

++

++

++

++

++

++

++

++

+ +

19.8

2%

34.5

9%

9.7

5%

11.2

0%

28.6

0%

22.2

9%

25.4

5%

32.4

6%

29.4

9%

12.9

7%

22.6

6%

RO

S

18.8

2%

12.9

6%

2.2

0%

11.8

9%

1.2

1%

28.6

3%

13.2

3%

8.2

6%

14.3

6%

48.2

6%

15.9

8%

TAT

0.4

55

2.0

73

2.1

29

0.5

03

3.7

07

0.1

35

0.4

30

0.9

99

0.7

69

0.1

12

1.1

31

RO

A

8.5

6%

26.8

7%

4.6

8%

5.9

8%

4.4

9%

3.8

7%

5.6

9%

8.2

5%

11.0

4%

5.4

2%

8.4

8%

leve

rage

1.6

32

1.0

08

2.7

62

1.2

72

1.0

00

3.3

10

1.5

53

1.8

65

1.9

13

1.6

58

1.7

97

RO

E

13.9

8%

27.0

8%

12.9

1%

7.6

0%

4.4

9%

12.8

0%

8.8

4%

15.3

9%

21.1

2%

8.9

8%

13.3

2%

Boo

k

Val

ue

[mn I

NR]

624 3

75.0

159 1

73.6

19 7

01.0

151 5

21.9

20 9

62.4

159 4

19.0

106 2

37.7

31 6

06.4

39 6

01.5

232 7

31.9

154 5

33.0

Net

Pro

fit

[mn I

NR]

87 2

82.0

43 1

06.4

2 5

44.1

11 5

16.9

941.0

20 4

09.4

9 3

87.6

4 8

63.8

8 3

65.5

20 9

05.0

20 9

32.2

Net

Rev

enue

[mn I

NR]

463 7

77.0

332 6

00.0

115 8

47.8

96 8

98.5

77 7

03.4

71 2

74.5

70 9

82.7

58 8

67.0

58 2

41.8

43 3

19.8

138 9

51.3

Mar

ket

shar

e in

2010

20.5

8%

14.7

6%

6.1

9%

5.1

4%

4.3

0%

3.5

4%

3.5

2%

2.9

2%

2.9

1%

2.1

6%

6.6

0%

NSE

BSE

NSE

BSE

NSE

BSE

NSE

BSE

NSE

BSE

NSE

BSE

NSE

BSE

NSE

BSE

NSE

BSE

NSE

BSE

Da

ta f

rom

20

10

Co

mp

an

y's

nam

e(E

nd

of

fiscal

year)

NT

PC

Ltd

.(M

ar,

20

10

)

Bh

ara

t H

eavy E

lectr

icals

Ltd

.(M

ar,

20

10

)

Ad

an

i E

nte

rpri

ses L

td.

(Mar,

20

10

)

Reli

an

ce I

nfr

astr

uctu

re L

td(M

ar,

20

10

)

PT

C I

nd

ia L

td.

(Mar,

20

10

)

Po

wer

Gri

d C

orp

n.

of

Ind

ia

Ltd

.(M

ar,

20

10

)

Tata

Po

wer

Co

mp

an

y L

td.

(Mar,

20

10

)

Lan

co

In

frate

ch

Ltd

.(M

ar,

20

10

)

To

rren

t P

ow

er

Ltd

.(M

ar,

20

10

)

NH

PC

Ltd

.(M

ar,

20

10

)

Avera

ge

Ave

rage

dai

ly

volu

me

-

last

yea

r

[bn I

NR]

Liquid

ity

Main

in

dic

ato

rs

Th

ere

are

giv

en

bo

th m

ark

et

ind

idato

rs f

or

each

co

mp

an

y,

top

valu

e r

ep

resen

ts v

alu

e o

n N

SE

(N

ati

on

al

Sto

ck

Exch

an

ge),

bo

tto

n f

or

BS

E (

Bo

mb

ay S

tock E

xch

an

ge).

Th

e d

ate

belo

w t

he c

om

pan

y's

nam

e r

ep

resen

ts t

he e

nd

of

fiscal

year.

All

fin

an

cia

ls a

re a

ud

ited

an

d s

tan

dalo

ne.

- h

igh

liq

uid

ity

- avera

ge l

iqu

idit

y-

low

liq

uid

ity

Mark

et

Fin

an

cia

l In

dic

ato

rs (

20

10

)

Effec

tive

tax

rate

Du

Po

nt'

s p

yra

mid

Ma

rke

t In

dic

ato

rs (

31

/1

2/

20

10

)

Req

uir

ed

re

turn

rate

Mark

et

mu

ltip

les

Beta

(β

)

Com

pan

y'

s m

arke

t

valu

e

[mn I

NR]

Pri

ce



-41

-

Ele

ctri

c Po

wer

Gen

erat

ion, Tra

nsm

issi

on a

nd D

istr

ibuti

on

Me

rge

rs a

nd

Acq

uis

itio

ns

Takin

g o

ver

co

mp

an

y

Inte

rnational Fi

nance

C

orp

ora

tion

Arg

onaut

Ventu

res

LLC

, B

ess

em

er

Ventu

res,

New

Silk

R

oute

Advis

ors

National Therm

al

Pow

er

Corp

ora

tion

(NTPC

)

Ess

ar

Energ

y P

lc

Gre

enko G

roup

India

Pow

er

Corp

Ltd

(I

PC

L)

Tech

no E

lect

ric

&

Engg.

Com

pany L

td.

Gre

en I

nfr

a L

td

Chlo

ride G

roup

Lum

inous

Pow

er

Tech

nolo

gie

s

Taken

over

co

mp

an

y

Tech

no E

lect

ric

&

Engin

eeri

ng C

o.

Ltd

Kir

an E

nerg

y S

ola

r Pow

er

Pvt

Ltd

Katw

a p

ow

er

pro

ject

Navabhara

t Pow

er

Pvt

Ltd (

NPPL)

(S

PV

)

LVS

Pow

er

Ltd

Dis

herg

arh

Pow

er

Supply

Co (

DPS

C)

Super

Win

d P

roje

ct

from

Suzl

on G

reen

Pow

er

BP E

nerg

y I

ndia

Pvt

Ltd

DB

Pow

er

Ele

ctro

nic

s (P

) Lt

d

Tri

tronic

s (I

ndia

) Pvt.

Lt

d

An

no

un

cem

en

t d

ate

(Sta

tus o

f a d

eal)

Jan-3

1,2

011

(com

ple

ted)

Jan-2

7,2

011

(com

ple

ted)

Dec-

08,2

010

(announce

d)

Jul-

06,2

010

(announce

d)

Apr-

08,2

010

(com

ple

ted)

Nov-2

1,2

009

(com

ple

ted)

Sep-1

7,2

009

(com

ple

ted)

Sep-1

1,2

009

(com

ple

ted)

Jul-

30,2

009

(com

ple

ted)

Jul-

14,2

009

(com

ple

ted)

Bu

yer'

s N

am

e

Ess

ar

Energ

y P

lc

3i G

roup,

Tem

ase

k

Hold

ings

Pte

Ltd

Bhoru

ka P

ow

er

Corp

ora

tion L

imited

India

n A

lum

iniu

m

Com

pany

Gre

en I

nfr

a L

td

Genera

l Ele

ctri

c C

om

pany

Riv

er

Valle

y H

ydro

V

entu

res

Hin

dust

an P

etr

ole

um

C

orp

ora

tion L

td

Chlo

ride G

roup

Pro

lec,

S.A

. de C

.V.

Sell

er'

s N

am

e

Mala

xm

i Energ

y

Ventu

res,

Nava B

hara

t V

entu

res

Ltd.

BP A

ltern

ative E

nerg

y

Inte

rnational Lt

d

Targ

et

Co

mp

an

y

Navabhara

t Pow

er

Pvt

Ltd (

NPPL)

(S

PV

)

Adani Pow

er

Ltd

SLS

Pow

er

Indust

ries

Suvas

Hold

ings

BP E

nerg

y I

ndia

Pvt

Ltd

Indo T

ech

Tra

nsf

orm

ers

Am

ritj

al V

entu

re

GA

IL I

ndia

Ltd

DB

Pow

er

Ele

ctro

nic

s (P

) Lt

d

Indo T

ech

Tra

nsf

orm

ers

An

no

un

cem

en

t d

ate

Jul-

06,2

010

Sep-1

7,2

008

Jul-

04,2

007

Feb-0

4,2

004

Sep-1

1,2

009

Dec-

04,2

008

Feb-1

9,2

009

Jun-0

9,2

006

Jul-

30,2

009

May-1

9,2

009

Valu

e o

f a d

eal

[mn

US

D]

(Sta

tus o

f a d

eal)

2 0

00.0

0(a

nnounce

d)

388.3

9(a

nnounce

d)

343.5

5(c

om

ple

ted)

331.5

0(c

om

ple

ted)

96.1

5(c

om

ple

ted)

80.9

6(a

nnounce

d)

60.1

4(a

nnounce

d)

56.6

2(c

om

ple

ted)

52.7

3(c

om

ple

ted)

48.5

3(c

om

ple

ted)

The s

tatu

s of

pre

sente

d d

eals

may c

hange o

r so

me o

f deals

may d

rop o

ut

from

the s

ubse

quent

report

s (e

.g.

due t

o c

ance

lations

of

them

)

La

st

me

rge

rs

The last

merg

ers

refe

r to

the t

ransa

ctio

ns

aff

ect

ing a

naly

sed s

ect

or.

The d

ata

sourc

e is

ISI

Dealw

atc

h

Th

e la

rge

st

bu

y/

se

ll o

ffe

rs

The larg

est

buy/s

ell

off

ers

refe

r to

the t

ransa

ctio

ns

aff

ect

ing a

naly

sed s

ect

or.

The d

ata

sourc

e is

ISI

Dealw

atc

h



-42-


Key Concepts Definitions of Indices

Number of companies Number of reporting listed companies V

Net revenue per company [mn INR]Net sales

-----------------------------Number of companies

V---V

Total operating cost (incl. depreciation) per company [mn INR]Net Sales - EBIT


V---V

EBITDA profit per company [mn INR]EBIT + Depreciation


V---V

EBITDA profit per profit-making company [mn INR]EBITDA

---------------------------------------------Number of profit-making companies

V---V

Gross profit per company [mn INR]Profit before tax


V---V

Gross profit per profit-making company [mn INR]Profit before tax


V---V

Net profit per company [mn INR]Profit after tax

----------------------------Number of companies

V---V

Net profit per profit-making company [mn INR]Profit after tax


V---V

EBITDA Sales Margin [%]EBITDA

--------------Net sales

SV4-----SV4

Net Sales Margin [%]Profit after tax

----------------------Net sales

SV4-----SV4

Effective tax rate [%]Profit befor tax - Profit after tax

-------------------------------------------Profit befor tax

SV4-----SV4

Share of profit-making companies [%]Number of profit making companies

---------------------------------------------Number of companies

V-----

V

V - Value for a given quarterSV4 - Sum of values over the last four quartersAV4 - Average of values over the last four quarters

Definition of index

Ge

ne

ral

ind

ice

sP

rofi

tab

ilit

y r

ati

os

Quarterly financials

Yearly financials

Cash flow per company [mn INR]Net cash flow

---------------------------Number of companies

V---V

Cash flow per profit-making company [mn INR]Net cash flow


V---V

Return on Equity [%]Profit after tax

--------------------------Shareholders' funds

V---V

Return on Assets [%]Profit after tax

-----------------------Total assets

V---V

Equity dividend ratio [%]Equity dividend for ordinary and prefered shares------------------------------------------------------

Profit after tax

V---V

Current ratio [%]Current assets

------------------------Short-term liabilities

V---V

Quick ratio [%]Current assets - Inventory

-------------------------------Short-term liabilities

V---V

Super quick ratio [%]Cash & Bank

-------------------------Short-term liabilities

V---V

Sundry debtors to sundry creditors ratio [%]Sundry debtors

------------------------Sundry creditors

V---V

Definition of index

Ge

ne

ral

ind

ica

tors

Pro

fita

bil

ity

rati

os

Liq

uid

ity r

ati

os

V - Value for a given year



-43-


Yearly financials

Days of coverage for Cash & Equivalent [days](Receivables + Inventories - Short term liabilities) * 360

------------------------------------------------------------------Net sales

V---V

Days of coverage for receivables [days]Receivables * 360

-------------------------Net sales

V---V

Days of coverage for inventories [days]Inventories * 360

----------------------------Net sales

V---V

Days of coverage for short term liabilities [days]Short term liabilities * 360

-----------------------------------Net sales

V---V

Debt to Equity ratio [%]Total debt

-----------------------Shareholders' funds

V---V

Equity to total assets ratio [%]Shareholders' funds

------------------------Total assets

V---V

Share of loans from banks in total debt [%]Secured and unsecured loans from banks

-------------------------------------------------Total debt

V---V

Secured to unsecured loans ratio [%]Secured loans

-----------------------Unsecured loans

V---V

Operating profit coverage [years]Total debt

---------------EBITDA

V-----

V

Labour intensity of production [%]Cost of employees

-----------------------Net sales

V---V

Energy intensity of production [%]Power generation and distribution costs--------------------------------------------

Net sales

V---V

Material intensity of production [%]Raw material costs

--------------------------------------------Net sales

V---V

Total assets turover [%]Net sales

------------------Total assets

V---V

Net fixed assets productivity [%]Net sales

------------------Net block

V-----

V

Investment outlays per company [mn INR]Investments

--------------------------Number of companies

V---V

Share of quoted equity investments [%]Quoted equity investments

-----------------------------------Investments

V---V

Investment outlays as share in net revenue [%]Investments

----------------------Net sales

V---V

Investment outlays to depretiation ratio [%]Investments

----------------------Depreciation

V---V

Investment outlays index [%]Investments - Depretiation

-----------------------------------Net block

V---V

Share of labor costs in total operating costs [%]Cost of employees

-------------------------Total operating costs

V---V

Share of stock increase costs in total operating costs [%]Stock increase costs

---------------------------Total operating costs

V---V

Share of energy costs in total operating costs [%]Power generation and distribution costs

------------------------------------------------Total operating costs

V---V

Share of raw material cost in total operating costs [%]Raw material costs

------------------------------------------------Total operating costs

V---V


Other manufacturing expenses-------------------------------------

Total operating costs

V---V

Share of selling and administration expenses in total operating costs [%]

Selling and administration expenses------------------------------------------

Total operating costs

V---V

Share of miscellaneous expenses in total operating costs [%]Miscellaneous expenses

-----------------------------Total operating costs

V---V

Share of depreciation in total operating costs [%]Depreciation

-------------------------Total operating costs

V---V

Fin

an

cia

l le

ve

rag

e r

ati

os

Pro

du

ctio

n f

act

ors

V - Value for a given year

Inve

stm

en

t o

utl

ays

Co

sts

Fin

an

cia

l cy

cle

sDefinition of index



-44-


Definitions of Selected Concepts

EconTrends for India are based to large extent on the structure of the North American IndustryClassification System (NAICS). Analyses made for respective industry divisions, groups, classes andsub-classes are consistent with this classification. However the used system of industry classificationis not fully compatible with the National Industrial Classification in India due to Indian statistics -specific factors. Moreover the reports are based on the bottom-up aggregation of individual companies financial data from the Accord Fintech database, which provides the financials not for all, but for allmajor companies from the non-financial sector. The measurement units in several observations in thedatabase have been adjusted to ensure appropriate consistency and accuracy of the data. Quarterlyfinancial data from Income Statement are adjusted to assert their consistency with yearly auditedfigures. Hence the report covers not the full sector but only its major part. It is worth emphasizingthat the aggregated financials from a given year/quarter apply to companies whose fiscal year/quarterended in that year/quarter. Aggregated financials are calculated only for listed companies reported on

Forecasting models used in EconTrends have a hierarchical structure. The first layer consists ofmodels that transmit behavior of macroeconomic variables like nominal GDP growth, increases in pricesto the behaviors of financial parameters like net sales per company and EBITDA margin in all analyzedeconomic divisions. EBITDA margin should be understood as earnings before interest, taxes,amortisation and depreciation. The next and last layer of models translates the behavior of the aboveparameters in economic divisions into the groups within them. The econometric models that are usedin respective layers have a linear structure and belong to a well known group of ADL (AutoregressiveDistributed Lags) models. The long term relation between GDP growth and growth of sales in a givensector (called implied long term growth) is also developed on the ground of these models.

quarterly basis to assert maximum consistency between quarterly and yearly figures.

Seasonal adjustment is an econometric procedure consisting of elimination of seasonal deviations thatimpair the effectiveness of econometric modeling. This statistical procedure is based on appropriate,specialized econometric tools (the Tramo/Seats method). The software applied performs seasonaladjustment according to the Indian calendar (e.g. public and religious holidays, etc.), to set off theimpact of differences in the number of working days in particular quarters. Forecasts of financialparameters in the given sectors are derived based on forecasts of deseasonalised trend. The accuracy of the seasonal adjustment procedure is additionally supported by verification of key statistical tests,inclusion of incidental factors and drastic leaps in production volume, as well as testing the model.

Seasonal deviations are obtained by using the Tramo/Seats econometric procedure. A seasonaldeviation shows the average deviation of the value of revenue at a given quarter from the long termtrend. Seasonal variation informs us about an additional changeability associated with a particularseason of the year, which is a result of temporarily increased or decreased revenue. Skilfulassessment of seasonal deviation may be one of the advantages of a firm, which will be able to assess the level of revenue in a given quarter, that in turn will result in better production planning. However,a bad assessment of seasonal changes may be a source of additional risk. The graph of seasonaldeviation for the period shows deviation from the long term trend in a given quarter (quarterly valuesare arranged chronologically in years i.e. January '98, '99 etc.), which allows for precise forecasting ofdeviation in the analyzed quarter. In the above materials we can see two methods of presentingseasonality. The first is the additive one, when the revenues are decomposed as a sum of long termtrend and nominal value seasonal deviations. The second way of presenting seasonality is the multipli-cative one, where seasonal deviations are calculated as the percentage deviations from the long termtrend (in that case a deviation of 103 means a deviation of 3% from the value of the trend, and e.g.98 a deviation of -2%).

Seasonal adjustment

Seasonal deviations

Forecasting models



-45-


Forecasts presented in EconTrends for India relate to a period of two quarters ahead in relation tothe end of the time period for which statistical data are available.

Risk-profitability maps show the location of sectors depending on the value of profitability and riskthey achieve. Sectors singled out by being encircled by a red ring are most useful –„efficient” forinvestors, due to the relatively highest return at the lowest variability of profit (relatively high value ofthe Sharp’s index). On the basis of the coordinate values of „efficient” sectors, the preferences ofinvestors on the market are shown by a grey dotted line visible on the graphs – this is a level line ofthe linear function of utility for investors (Investors Utility Function). The level line shows preferencesof the majority of investors with regard to achieved profitability at a given risk. Sectors, which areplaced above the linear function of usefulness are preferred by investors due to the possibility ofachieving a high profitability, at a particular level of risk. Sectors lying below the level line are not asattractive for investors, due to the relatively high variability in profit as against their profitability.

The forces map shows decompositions of the profitability index into particular driving forces. The ideaof the strengths map is to show the effect of particular variables on the dynamics of profit both incurrent and forecasted situation.

coefficient is a measure of statistical dispersion in the market shares defined as the field between thediagonal and the Lorentz curve. It is defined as a ratio with values between 0 and 1. A low Ginicoefficient indicates more equal market shares, while a high Gini coefficient indicates more unequaldistribution. 0 corresponds to perfect equality (all companies having exactly the same market share)and 1 corresponds to perfect inequality (where one monopolist has all the market share, whileeveryone else has zero share in the market). It is worth noting that concentrations measurespresented above may be of limited use if the dataset for an analyzed sector consists of a only fewcompanies. Concentration measures are calculated for listed and non-listed companies reporting onyearly basis.

Y/Y Increase (Q/Q Increase), Y/Y Dynamics (Q/Q dynamics). Increases are calculated as absolutedifferences with respect to the preceding year (Y/Y) or preceding quarter (Q/Q). Dynamics arecalculated as relative [%] differences with respect to the preceding year (Y/Y) or preceding quarter(Q/Q).

Several concentration measures are used to examine the degree of the market power concentrationwithin the analyzed sectors. The Herfindahl-Hirschman Index (known as HHI), is a measure of the sizeof firms in relationship to the industry and an indicator of the amount of competition among them. It isdefined as the sum of the squares of the market shares of each individual firm: ie the average marketshare, weighted by market share. As such, it can range from 0 to 10,000 moving from a very largeamount of very small firms to a single monopolistic producer. Decreases in the Herfindahl indexgenerally indicate a loss of market power and an increase in competition, whereas increases imply theopposite. The Lorenz curve in turn, is a graph showing the proportion of the distribution assumed bythe bottom % market share values. It is used to represent market shares distribution, where it showsfor the bottom x% of companies in the sector, what percentage y% of the market share they have.The percentage of companies is plotted on the x-axis, the percentage of market share on the y-axis.It is considered it to be a measure of inequality of the market shares within the given sector. The Gini

Risk-profitability maps

The forces map

Concentration measures

Y/Y Increase (Q/Q Increase), Y/Y Dynamics (Q/Q dynamics)

Forecasts

The Lorenz curve in turn, is a graph showing the proportion of the distribution assumed by the bottom% market share values. It is used to represent market shares distribution, where it shows for thebottom x% of companies in the sector, what percentage y% of the market share they have. Thepercentage of companies is plotted on the x-axis, the percentage of market share on the y-axis. It isconsidered it to be a measure of inequality of the market shares within the given sector.

The Gini coefficient is a measure of statistical dispersion in the market shares defined as the fieldbetween the diagonal and the Lorentz curve. It is defined as a ratio with values between 0 and 1. Alow Gini coefficient indicates more equal market shares, while a high Gini coefficient indicates moreunequal distribution. 0 corresponds to perfect equality (all companies having exactly the same marketshare) and 1 corresponds to perfect inequality (where one monopolist has all the market share, whileeveryone else has zero share in the market).

It is worth noting that concentrations measures presented above may be of limited use if the datasetfor an analyzed sector consists of a only few companies.

Several concentration measures are used to examine the degree of the market power concentrationwithin the analyzed sectors.

The Herfindahl-Hirschman Index (known as HHI) is a measure of the size of firms in relationship to theindustry and an indicator of the amount of competition among them. It is defined as the sum of thesquares of the market shares of each individual firm: ie the average market share, weighted by marketshare. As such, it can range from 0 to 10,000 moving from a very large amount of very small firms to asingle monopolistic producer. Decreases in the Herfindahl index generally indicate a loss of marketpower and an increase in competition, whereas increases imply the opposite.

Herfindahl-Hirschman Index

Lorenz Curve

Gini coefficient



-46-


Liquidity (of public company) - ranked accordingly to the averaged daily shares' turnover from the lastyear

Betas and Required Rates of Return - are calculated for listed companies under CAPM model.

- rate of return from investments in shares of an analysed company,

- Leveraged Beta,

- Unleveraged Beta,

- Required Rate of Return, where:

- effective tax rate.

- required (by investors) rate of return from investments in the shares of an analysed company; i.e. the expected rate of return when the market stays in equilibrium under CAPM assumptions,

- expected rate of return of the stock market index (BSESN, NSEI),

- risk-free rate of return (Yield of 364-days Treasury Bills)

- debt to equity ratio,

DuPont Pyramid is a very useful tool to decompose Return on Equity (ROA) into various ratios like:Return on Assets (ROA), Return on Sales (ROS) and Total Assets Turnover (TAT). It enables easydrawing of conclusions about the efficiency of an analyzed company in various areas of its activity.

The long-term trend indicates so-called potential level of production for a given sector i.e. a level atwhich there is no significant tension for a rise/fall in price dynamics and employment within the sector.

The business cycle shows fluctuations of business activity for a given sector around a long-term trendrepresenting the potential level of production for the sector. Positive values of the business cycleindicate a possibility of price dynamics’ increase pressure, increase of employment or rebound ininvestments, since the capacity utilization ratio remains currently high. Negative values of thebusiness cycle indicate a possibility of price dynamics’ decrease pressure, decrease of employment ordeterioration in investment activity, since the capacity utilization ratio remains relatively weak.

- rate of return of a stock market index (BSESN, NSEI),

Distributions of Financials present critical values of the distributions of various financials in theanalyzed sector. The presented critical values represent quartiles of the empirical distribution i.e. theyare calculated for 20%, 40%, 60% and 80% of the total population of companies from the givensector in a given year. These distributions make possible easy comparison of an analyzed company toother companies in the sector, looking at it from various financial angles.

Market multipliers (P/E, P/BV) - are widely used for the valuation purposes. Price to Earnings (P/E) iscalculated by dividing closury company's capitalisation in the quarter after analysed quarter by theearnings (net profits) from the last audited year. For the calculation of Price to Book Value (P/BV) theending year book value is taken.

( )( )M

MiL RVar

RRCov ,=β

( )ED

LU

τ

ββ

−+=

11

iRiRΕ

MR

MRΕ

fR

ED

τ

( )fMfi RRRR −Ε+=Ε β

The long-term trend

Distributions of Financials

DuPont Pyramid

Market multiples (P/E, P/BV)

Betas and Required Rates of Return

Liquidity

The business cycle



Electric Power Generation, Transmission and Distribution - Q4, 2010_ISI

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