Britannia Industries Ltd Bloomberg Code: BRIT IN

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1 Consumer Staples - Consumer Products - Packaged Food Jan 6, 216 Bloomberg Code: BRIT IN India Research - Stock Broking Delicious Brand, Backed by Healthy Financials Increasing outlets to penetrating into rural markets: Britannia is continuously focusing towards improving its rural presence and strengthening its portfolio to drive higher revenue growth. Penetration into rural markets will offer a huge growth opportunity and Britannia is well handling to capture the market share. The company is planning to scale up its rural presence by expanding its distribution network, which is almost doubled in two years and managed to come up with over 1 Mn outlets across the country as on March 215. In Q1FY16, the company managed to add approx 8, outlets to its distribution network. Decline in raw material prices to boost the EBITDA margins: The prices of some of the key raw materials/inputs such as Flour, Sugar and Refined Palm Oil (RPO) declined by 8%, 1% and 9% respectively in Q1FY16. EBITDA margins improved due to decrease in the cost of material consumed. Cost of raw materials as a percentage of total revenue is decreased by 65 basis points to reach 52.4% in the FY15 from the levels of 58.9% in the FY11. We expect the raw material prices continue to fall for FY16E and remain constant at that level for FY17E to put on the EBITDA margins of 14.6% for FY16E and 15.% in FY17E. Valuation and Outlook Britannia, with its improving operational efficiencies and aggressive strategies in expanding its distribution in terms of direct reach, is moving up the value chain and capturing more market share. Britannia is earning more than 8% of its revenue from biscuit business. At CMP of Rs.2967 per share, the stock is trading at 33.5x FY17E EPS. We value the company at 39.x and arrive at target price of Rs.3453 with a potential upside of 16.4% with BUY rating. Key Risks yvolatility in raw material prices. ycompetition from other players. ydependency on biscuit business. Exhibit 1: Valuation Summary YE Mar (Rs. Mn) FY13 FY14 FY15 FY16E FY17E Net Sales EBITDA EBITDA Margin (%) Adj. Net Profit EPS (Rs.) RoE (%) PE (x) , *Represents multiples for FY13, FY14 & FY15 are based on historic market price For private circulation only. For important information about Karvy s rating system and other disclosures refer to the end of this material. Karvy Stock Broking Research is also available on Bloomberg, KRVY<GO>, Thomson Publishers & Reuters BUY Recommendation (Rs.) CMP (as on Jan 5, 216) 2967 Target Price 3453 Upside (%) 16.4 Stock Information Mkt Cap (Rs.mn/US$ mn) / wk High/Low (Rs.) 3435 / M Avg. daily volume (mn).2 Beta (x).7 Sensex/Nifty 2558 / 7784 O/S Shares(mn) 12. Face Value (Rs.) 2. Shareholding Pattern (%) Promoters 5.7 FIIs 19.8 DIIs 8.8 Others 2.6 Stock Performance (%) 1M 3M 6M 12M Absolute 1. (7.7) Relative to Sensex 1.3 (3.3) Source: Bloomberg Relative Performance* Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 BRIT IN Sensex Source: Bloomberg; *Index 1 Analyst Contact Jagannadham Thunuguntla jagannadham.t@karvy.com 1

2 Company Financial Snapshot (Y/E Mar) Profit & Loss (Rs. Mn) FY15 FY16E FY17E Net sales Optg. Exp EBITDA Other Income & Exceptional Items Depreciation Interest PBT Tax Adj. PAT Profit & Loss Ratios EBITDA margin (%) Net margin (%) P/E (x) EV/EBITDA (x) Dividend Yield % Balance sheet (Rs. Mn) FY15 FY16E FY17E Total Assets Net Fixed assets Current assets Other assets Total Liabilities Networth Long Term & Short Term Debt Current Liabilities Other Liabilities 83 (191) (468) Balance Sheet Ratios RoE (%) RoCE (%) Debt/Equity.1.1. Equity/Total Assets P/BV (x) Exhibit 2: Shareholding Pattern (%) Company Background Britannia Industries Limited (Britannia) is one of the major players in the Indian food market with leadership position in Biscuits segment. Its brand portfolio includes Good day, Tiger, Marie Gold, 5:5 and Treat Jim Jam. Britannia was established in the year 1892 in Kolkata and incorporated as a public limited company in the year The company s plants are located in Kolkata, Delhi, Chennai and other 4 locations. The company is expanding its customer base by launching new products and renovating existing ones. Britannia s brands now have greater availability in rural markets and extensive presence in modern trade. Now, Britannia is a leading company with more than Rs. 79mn in revenues, delivering products in over 5 categories through 3.5 Mn retail outlets to more than half the Indian population. Britannia is recognized as one of the most trusted, valuable and popular brands among Indian consumers in various reputed surveys. Cash Flow (Rs. Mn) FY15 FY16E FY17E PBT Depreciation Interest (net) Tax (315) (498) (587) Changes in WC 253 (331) 339 Others (2373) (56) (582) CF from Operations Capex (1177) (1637) (1642) Proceeds from sale of fixed assets 164 Investments & Others (3326) (2998) (558) CF from Investing (453) (4635) (67) Change in Equity Change in Debt (1) (189) (121) Dividends & Interest (1714) (2342) (2338) CF from Financing (1814) (2531) (246) Change in Cash (472) Exhibit 3: Revenue Segmentation (%) Others 2.6% Biscuits 8.% DIIs 8.8% FIIs 19.8% Promoters 5.7% Non-Biscuits and Others 15.% Dairy 5.% Source: BSE, Karvy Research 2

3 Increasing outlets to penetrating into rural markets Exhibit 4: Number of Outlets (mn) Source: Industry, Karvy Research FY13 FY14 FY15 Q1FY16 Number of Outlets (Mn) Britannia is continuously focusing towards improving its rural presence and strengthening its portfolio to drive higher revenue growth. Penetration into rural markets will offer a huge growth opportunity and Britannia is well handling to capture the market share. Britannia s rural market share is only two-thirds of its urban market share. The company is planning to scale up its rural presence by expanding its distribution network, which has almost doubled in two years and managed to come up with over 1 Mn outlets across the country as on March 215. In Q1FY16, the company managed to add approx 8, outlets to its distribution network, which is 8% of its total outlets existing as on March 215. To make distribution in urban areas more efficient, Britannia built a split route model. The company had implemented this strategy in 558 towns by the end of FY15 and has added another 73 towns in Q1FY16. The split route strategy has done well for the company and is yielding good results in some of the towns. Britannia introduced route-to-market strategy to reduce the distance travelled by a biscuit. The company remains focused on this strategy and has implemented in 13 cities in Q1FY16 which comes to approx 2% of the top line. Britannia is also focusing to expand its base in the Hindi speaking belt. So, the company is planning to penetrate states of Gujarat, Madhya Pradesh, Rajasthan and Uttar Pradesh where Britannia has only 1% of market share. We believe that the company s strong brand value, premium product portfolio and strategies undertook will help it to maintain future growth. Market leader in the premium biscuit category: Britannia is one of the major players in the Indian food market and operating in two segments, namely, bakery products which include Biscuits, Breads, Cakes and Rusk, and dairy products which include Milk, Butter, Cheese, Ghee, Dahi and milk-based beverages. Britannia has strong brands in its portfolio, including Tiger, Treat Jim Jam, 5-5, Good Day and Milk Bikis and enjoying strong recognition in the domestic market. Britannia derives over 8% of its revenue from the biscuits segment, more than 1% is coming from non-biscuits category, international market and dairy segment accounts for more than 5% of the total turnover. Biscuits is the largest category accounting for a little over two-thirds of the overall bakery industry which is growing at 1-14% per annum in the last five years. Biscuits have been one of the fastest growing categories in the FMCG segment and Britannia is currently enjoying approx 28% market share in the biscuit market. The company s focus towards its premium brands would generate significant returns in the coming years and focusing on the value segment will strengthen its position. The value segment contributes about 45% of the overall biscuit industry. As per Foodnavigator-asia, India s biscuits market was valued at US$ 2.3bn by 214 and is expected to grow at an annual rate of 14% to reach US$ 4.4bn by 219. Innovation of new products and improvement in the premium biscuit category will be the drivers for the revenue growth. Britannia is now planning to expand its market share in the cream biscuit segment. It has recently launched premium cookies under the brand name of Good Day, Nutri Choice Heavens, Pure Magic, Muffills and Nut & Raisin. Exhibit 5: Market Share in Biscuit segment Exhibit 6: Market Share in Cream Biscuit segment ITC 11.% Others 33.5% Parle 14.% Others 41.% Parle 27.5% Britannia 28.% Britannia 18.% ITC 27.% Source: timesofindia, Karvy Research Source: timesofindia, Karvy Research 3

4 Bakery Industry (Rs. 199 Bn) Biscuits and Cookies (Rs. 145 Bn) Bread (Rs. 3 Bn) Cakes and Pastry (Rs Bn) Other Products (Rs. 5.5 Bn) Source: Valuenotes, Karvy Research Decline in raw material prices to boost the EBITDA margins: The prices of some of the key raw materials/inputs such as Flour, Sugar and Refined Palm Oil (RPO) declined by 8%, 1% and 9% respectively in Q1FY16. EBITDA margins improved due to decrease in the cost of material consumed. Cost of raw materials as a percentage of total revenue is decreased by 65 basis points to reach 52.4% in the FY15 from the levels of 58.9% in the FY11. We expect the raw materials prices continue to fall for FY16E and remain constant at that level for FY17E to put on the EBITDA margins of 14.6% for FY16E and 15.% in FY17E. The company has been focusing on developing a competitive edge in its manufacturing by deploying cost efficiencies through Total Quality Management (TQM), Kaizen, Lean etc. and Operational Excellence programs across the value chain and is also working on scaling up some of the existing manufacturing units. Britannia is focused to balance cost, quality and aspiration in its brand for consumer affordability at every price point. Cost effectiveness has been a key pillar of the company s value creation strategy and this was achieved through scale in operations, technology interventions, energy efficiencies & conservation and wastage reduction in the value chain along with efficient management of working capital. Britannia is well managed to reduce its conversion charges and Advertising & Sales promotion expenses when compared as a percentage of total revenue. Exhibit 7: Raw Material Cost as % of total revenues % 56.7% 54.2% 52.9% 52.4% 49.% 49.% FY11 FY12 FY13 FY14 FY15 FY16E FY17E 6% 5% 4% 3% 2% Exhibit 8: Wheat Price (Rs./ Ton) Dec-1 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Raw Material Cost (Rs.mn) % of Total revenues Wheat Price (Rs./ Ton) Source: Industry, Karvy Research Exhibit 9: Sugar Price (Rs./ Pound) Exhibit 1: Palm Oil Price (Rs./ Ton) Dec-1 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-1 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Source: Industry, Karvy Research Sugar Price (Rs./ Pound) Source: Industry, Karvy Research Palm Oil Price (Rs./ Ton) 4

5 Significant opportunity in Dairy Segment: Growth in the FMCG sector will be the key driver: Jan 6, 216 India remains the largest producer and consumer of dairy. Total market value of the dairy industry comes to Rs.43bn as on FY15, out of which organized sector comes to Rs.75bn. There is a huge opportunity in the unorganized sector to penetrate. Britannia is now planning to improve its market position in this segment. The company is continuing to explore opportunities to grow their dairy business on a strong foothold. Britannia is also striving to expand its share in snack categories also, which has market value of Rs.3bn. At present, dairy segment is contributing only 5% of the total revenues, which comes to more than Rs.3mn in the FY15. India is one of the largest populated countries in the world with more than 1.2 Bn people. India s population is growing at a rate of 1.41% annually. It is a young country with almost 65% of the population below the age of 3 years. The consumption of goods will therefore be driven by younger and more affluent consumers. Rising incomes, growing youth population and brand consciousness have been key growth drivers of the sector. Low penetration levels in rural market offer room for growth. The overall market size of FMCG in India is estimated to grow at a CAGR of 17% from US$ 47.3 Bn in 215 to US$ 13.7 Bn in 22E. The urban segment is the largest contributor to the sector, accounting for more than 6% of total revenue and had a market size of around US$ Bn in 215. Semi-urban and rural segments are growing at a rapid pace; they currently account for 4% of revenues. The rural FMCG market expected to increase at a CAGR of 18.1% to US$1 Bn during FY12 25E. The overall rural FMCG consumption continues to grow at 12.5% during FY14. Total consumption expenditure to reach nearly US$3.6 Tn by 22 from US$1.3 Tn in 212. India has 7% of its population living in rural areas. With rising urbanization, more people will have exposure to modern products and brands and thus shift to branded and packaged goods and products. Exhibit 11: FMCG market (US$ Bn) 11 Exhibit 12: Urban/Rural industry break-up (215) Rural 4% FY7 FY8 FY9 FY1 FY11 FY12 FY13 FY15 FY2E Urban 6% Source: IBEF, Karvy Research Source: IBEF, Karvy Research 215 Growing demand: Attractive opportunities: 22E FMCG market size: US$47.3 Bn 1. Rising incomes and growing youth population have been key growth drivers of the sector. Brand consciousness has also aided demand. 2. Tier II/III cities are witnessing faster growth in modern trade. 1. Low penetration levels in rural market offers room for growth. 2. Disposable income in rural India has increased due to the direct cash transfer scheme. 3. Growing demand for premium products. FMCG market size: US$13.7 Bn Advantage Indian Higher investments: 1. Many players are expanding into new geographies and categories. 2. Organized retail share is expected to double to 14-18% of the overall retail market by 215. Policy support: 1. Investment approval of up to 1% foreign equity in single brand retail and 51% in multi-brand retail. 2. The minimum capitalization for foreign FMCG companies to invest in India is US$1mn. Source: IBEF, Karvy Research 5

6 Huge opportunity on the back of per capita consumption of biscuits: Exhibit 13: Biscuit Consumption per capita per Kg USA Europe Japan ASEAN* SA India China Africa Consumption (Kgs) Although India is considered as the third largest producer of Biscuits after USA and China, per capita consumption remains relatively low. Developed markets of Western Europe, North America and Japan have per capita consumption of around kg as against 2 kg for the Indian market, reflecting the huge potential for growth of the industry. However, industry experts believe that this segment is set to grow at the rate of 15 to 2% over the next few years. There is a huge untapped opportunity for growth in this segment. Source: bakerybazar, Karvy Research; *Represents Association of Southeast Asian Nations Until recently, biscuits and cookies were considered to be products of mass consumption. Consumer perception has changed and now biscuits are also considered as premium consumption products. Increasing indulgence, health concerns and familiarity with luxurious taste have led manufacturers to invest in Research and Development (R&D) to develop a variety of premium biscuits and cookies. This has also led to higher growth in the premium segment compared to the economical and mid segments of the industry. Share of premium biscuits is likely to increase by FY19E as manufacturers are now aggressively entering the premium biscuit and cookie segment on account of higher margins prevalent in the segment. Increase in disposable income, changing lifestyles, growth in organized retail and increasing consumption of processed and packaged food are the main drivers of the industry. The Indian Biscuit industry for the organized sector produces around 6% of the total production, the balance 4% being contributed by the unorganized segment. Exhibit 14: Biscuits segmentation by Price in FY14 (By Value) Exhibit 15: Organized Vs Unorganized Premium 2% Unorganized 4.% Economical 5% Medium 3% Organized 6.% Source: Nielsen India, Karvy Research Source: Industry, Karvy Research Biscuits have taken top spot in the top selling FMCG sector: Biscuit segment has 23% market share in FMCG category and has been growing at CAGR of 12-14% in the last few years and is dominated by Britannia, Parle & relatively new entrant ITC. In biscuit segment, cream biscuits have been growing at faster pace mainly backed by higher realization compared to biscuits. Value contribution among the biscuits is captured by cookies and next comes cream biscuits which have 48% segment share in biscuits. Exhibit 16: Value Contribution of Biscuits Exhibit 17: Revenue of few top selling FMCG, 213 Cream 2% Glucose 17% Marie 12% Cookies 28% Non-Salt Cracker 11% Salt Cracker 7% Milk 3% Others 2% Salty Snacks 13% Toilet Soap 14% Refined Oils 15% Washing Powder 13% Non-refined Oil 11% Biscuits 23% Chocolate 7% Packaged Atta 4% Source: Nielsen India, Karvy Research Source: IBEF, Karvy Research 6

7 Exhibit 18: Business Assumptions Y/E Mar (Rs. Mn) FY14 FY15 FY16E FY17E Comments Revenue Revenue Growth (%) EBITDA EBITDA Margins (%) PAT (normalized) EPS Capex (111) (1177) (1637) (1642) Net CFO Net Debt 391 (861) (2976) (4968) Free Cash Flow We expect the revenue to grow at the current pace on the back of strong distribution network and market share. EBITDA is likely to grow from Rs.8639mn in FY15 to Rs.15196mn in FY17E. We expect the EBITDA margins to improve 36 basis points by FY16E due to decreasing prices of raw materials and better operational efficiencies. PAT margins are expected to reach 1.2% in FY16E and 1.5% in FY17E. Exhibit 19: Karvy vs Consensus Karvy Consensus Divergence (%) Comments Revenues (Rs. Mn) FY16E FY17E (2.) EBITDA (Rs. Mn) FY16E FY17E EPS (Rs.) We expect the raw material prices continue to fall for FY16E and remain constant at those level for FY17E. FY16E FY17E Source: Bloomberg, Karvy Research 7

8 Exhibit 2: Revenue Growth % 19% 14% 13% 14% 13% 12% FY11 FY12 FY13 FY14 FY15 FY16E FY17E 25% 2% 15% 1% 5% % Revenue (Rs. Mn) Growth (%) Britannia revenues grew at CAGR of 14.3% for the period FY11-15, aided by volume and higher contribution from value added products. We expect the revenues to reach more than Rs.1bn by FY17E from the current level of Rs.79bn in FY15. For FY15-17E, revenues are expected to grow at CAGR of 13.6%. Exhibit 21: EBITDA margins to improve % 15.% 11.% 9.1% 5.1% 5.7% 6.8% 2349 FY FY FY FY FY FY16E FY17E 2% 15% 1% 5% % -5% EBITDA (Rs. Mn) Margins (%) EBITDA is expected to grow at CAGR of 32.6% for FY15 to FY17E and margins are likely to improve by 398 bps to 15.% in FY17E on the back of better lower raw material costs, developments in its manufacturing by deploying cost efficiencies and operational excellence programs across the value chain. EBITDA margins have been consistently increasing from 5.1% in FY11 to 11.% in FY15. EBITDA grew at CAGR of 38.5% in the past four years. EBIT is expected grow from Rs.874mn in FY15 to Rs.1526mn in FY17E at a CAGR of 36.4%. EBIT grew at CAGR of 36.2% over FY Net profit margins are expected to improve by 17 bps to 1.5% by FY17E compared to 8.8% in FY15. Over the period of FY11-15, PAT grew at CAGR of 5.5%. Bottom line is boosted by strong revenue growth and margin expansion. Exhibit 22: EBIT Margins Exhibit 23: PAT Margins % 8.4% 5.1% 5.6% 6.5% % 14.4% FY11 FY12 FY13 FY14 FY15 FY16E FY17E EBIT (Rs. Mn) Margins % 2% 15% 1% 5% % -5% % FY % 1.5% 8.8% 5.7% 3.6% 4.2% FY12 FY13 FY14 FY15 FY16E FY17E PAT (Rs. Mn) Margins % 13% 1% 7% 4% 1% -2% -5% Exhibit 24: Robust Return Ratios FY12 FY13 FY14 FY15 FY16E FY17E RoE (%) RoCE (%) Britannia s return ratios are healthy over the years and we expect the company will be able to maintain them going forward. RoE has improved from 54.3% in FY12 to 67.7% in FY15 and RoCE has improved from 36.1% in FY12 to 75.% in FY15. 8

9 Exhibit 25: Dividend Payout Ratio 6% 5% 4% 3% 2% 5.9% 39.2% 36.4% 48.5% 21.2% 22.6% Britannia is consistent in maintaining the dividend payout ratio. Dividend payout ratio is increased from 39.2% in FY13 to 48.5% in FY15 and we expect the company will maintain the payout ratio going forward. 1% FY12 FY13 FY14 FY15 FY16E FY17E Dividend Payout Ratio Exhibit 26: Healthy operating and Free cash flows FY11 FY12 FY13 FY14 FY15 FY16EFY17E Operating cash flows (Rs. mn) Free Cash flows (Rs. mn) Strong revenue growth and expansion in margins are expected to generate strong cash flow over the next couple of years. Cash flows are improving on the back of operational efficiencies and better management of distribution networks. Sensitivity Analysis Exhibit 27: Sensitivity of earnings and target prices for % of cost of raw material price movement Base YoY Cost of Raw Materials as % of Revenue -5% -3% -1% 1% 3% 5% EBITDA Margin (%) FY16E 14.6% FY17E 15.% EPS (Rs.) FY16E FY17E Target Price (in Rs.) Change in Target Price (%) (3.2) (9.7) (16.1) 9

10 Exhibit 28: Company Snapshot (Ratings) Low High Quality of Earnings 33 Domestic Sales 33 Exports 33 Net Debt/Equity 33 Working Capital Requirement 33 Quality of Management 33 Depth of Management 33 Promoter 33 Corporate Governance 33 1

11 Valuation & Outlook Britannia, with its improving operational efficiencies and aggressive strategies in expanding its distribution in terms of direct reach, is moving up the value chain and capturing more market share. Britannia is earning more than 8% of its revenue from biscuit business. At CMP of Rs.2967 per share, the stock is trading at 33.5x FY17E EPS. We value the company at 39.x and arrive at target price of Rs.3453 with a potential upside of 16.4% with BUY rating. Exhibit 29: PE Band Aug/12 Apr/13 Dec/13 Aug/14 Apr/15 Dec/15 PE Average SD1 SD2-1SD Source: Prowess, Karvy Research Exhibit 3: PB Band Aug/12 Apr/13 Dec/13 Aug/14 Apr/15 Dec/15 PB Average SD1 SD2-1SD Source: Prowess, Karvy Research Exhibit 31: EV/EBITDA Band Aug/12 Dec/12 Apr/13 Aug/13 Dec/13 Apr/14 Aug/14 Dec/14 Apr/15 Aug/15 Dec/15 EV/EBITDA Average SD1 SD2 -SD1 Source: Prowess, Karvy Research Key Risks yvolatility in raw material prices. ycompetition from other players. ydependency on biscuit business. 11

12 Financials Exhibit 32: Income Statement YE Mar (Rs. Mn) FY13 FY14 FY15 FY16E FY17E Revenues Growth (%) Operating Expenses EBITDA Growth (%) Depreciation & Amortization Other Income EBIT Interest Expenses PBT Tax Adjusted PAT Growth (%) Exhibit 33: Balance Sheet YE Mar (Rs. Mn) FY13 FY14 FY15 FY16E FY17E Cash & Bank Balances Sundry Debtors Inventory Loans & Advances Investments Gross Block Net Block CWIP Miscellaneous Total Assets Current Liabilities & Provisions Debt Other Liabilities (226) (511) Total Liabilities Shareholders Equity Reserves & Surplus Total Networth Minority Interest Total Networth & Liabilities

13 Exhibit 34: Cash Flow Statement YE Mar (Rs. Mn) FY13 FY14 FY15 FY16E FY17E PBT Depreciation Interest (net) Tax Paid (892) (1858) (315) (498) (587) Inc/dec in Net WC (161) (331) 339 Other Income (252) (144) (45) (56) (582) Other non cash items (226) (153) (1968) Cash flow from operating activities Inc/dec in capital expenditure (225) (111) (1177) (1637) (1642) Inc/dec in investments 155 (843) (2768) (364) (564) Others 982 (512) (559) Cash flow from investing activities 282 (2456) (453) (4635) (67) Inc/dec in borrowings (2268) (2431) (1) (189) (121) Issuance of equity Dividend paid (1178) (1189) (1681) (239) (239) Interest paid (423) (89) (33) (33) (29) Others 5 Cash flow from financing activities (3782) (3573) (1814) (2531) (246) Net change in cash (32) 685 (472) Exhibit 35: Key Ratios YE Mar FY13 FY14 FY15 FY16E FY17E EBITDA Margin (%) EBIT Margin (%) Net Profit Margin (%) Dividend Payout ratio (%) Debt/Equity (x) RoE (%) RoCE (%) Exhibit 36: Valuation Parameters YE Mar FY13 FY14 FY15 FY16E FY17E EPS (Rs.) DPS (Rs.) BV (Rs.) PE (x) P/BV (x) EV/EBITDA (x) EV/Sales (x) ; *Represents multiples for FY13, FY14 & FY15 are based on historic market price 13

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