D.S. KULKARNI DEVELOPERS LTD REAL ESTATE INDUSTY BSE Scrip Code:

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1 Independent Equity Research D.S. KULKARNI DEVELOPERS LTD REAL ESTATE INDUSTY BSE Scrip Code: CMP Rs.55 1 July 20, 2012 Update for Quarter and Year ended 31 st March, 2012 Decline in revenue D. S. Kulkarni Developers Ltd (DSKDL) reported a decline in net sales during the Q4FY12 (refers to the period April 1 to March 31) by 13.1 per cent y-o-y to Rs.49.2 crore in Q4FY12 as compared to Rs.56.6 crore in Q4FY11. This was on account of relatively lower demand in the real estate sector. Improvement in profits and margins during the quarter DSKDL reported improvement in PAT by per cent y-o-y to Rs.5.4 crore in Q4FY12 as compared to Rs.2.8 crore in Q4FY11. The EBIDTA margins of the company improved to per cent in Q4FY12 as compared to per cent in Q4FY11. On annual basis, however margins were under pressure. The operating margins were down 443 bps at 6.3 per cent; adjusted net margins were lower by 78 bps at 2.7 per cent in FY12. DSKDL reported an EPS of Rs.2.1 per share in Q4FY12 as against Rs.0.9 per share in Q4FY11. Quarterly Performance Snapshot (standalone) (Rs Crore) Q4 FY12 Q4 FY11 Net sales % EBITDA % Adjusted PAT % EPS* (diluted) (Rs.) % EBITDA Margin (%) Adjusted PAT Margins (%) * Calculated on Current Face Value of Rs.10/- per share 1 Initiative of the BSE Investors Protection Fund

2 CARE Decline in revenue D. S. Kulkarni Developers Ltd (DSKDL) reported a decline in net sales during the Q4FY12 (refers to the period April 1 to March 31) by 13.1 per cent y-o-y to Rs.49.2 crore in Q4FY12 as compared to Rs.56.6 crore in Q4FY11. This was on account of relatively lower demand in the real estate sector. DSKDL: Snapshot of Interim Financial Performance (Rs Crore) Q4 FY12 Q4 FY11 FY12 FY11 Net sales % % EBITDA % % Adjusted PAT % (9.7) % EBITDA Margin (%) Adjusted PAT Margins (%) NM 3.5 Note: Q4FY12 financial analysis on standalone basis Improvement in revenue from education segment in Q4FY12 DSKDL reported improvement in revenue in the education segment by 24.9 per cent y-o-y to Rs.20.6 crore in FY12 as compared to Rs.16.5 crore in FY11. Higher intake of students in animation institute run by the DSK Global Education & Research (P) Ltd, subsidiary of the company resulted in improvement in segmental revenue. DSKDL: Segmental Performance (Rs Crore) FY12 FY11 Revenue Real Estate % Education % Contracting NM 8.9 NM PBIT Real Estate % Education (13.6) (3.0) NM Contracting NM 0.3 NM PBIT Margins (%) Real Estate 13.7% 15.1% Education NM NM Contracting NM 3.2% 2 Initiative of the BSE Investors Protection Fund

3 Improvement in profits and margins during the quarter DSKDL reported improvement in PAT by per cent y-o-y to Rs.5.4 crore in Q4FY12 as compared to Rs.2.8 crore in Q4FY11. The EBIDTA margins of the company improved to per cent in Q4FY12 as compared to per cent in Q4FY11. On annual basis, however margins were under pressure. The operating margins were down 443 bps at 6.3 per cent in FY12. DSKDL s interest cost increased by 16.1 per cent y-o-y to Rs.13.4 crore in FY12 as compared to Rs.11.6 crore in FY11. Consequently, adjusted PAT was lower by 28.4 per cent in FY12 at Rs.5.4 crore as against Rs. 7.5 crores in FY11. DSKDL reported an EPS of Rs.2.1 per share in Q4FY12 as against Rs.0.9 per share in Q4FY11. 3 Initiative of the BSE Investors Protection Fund

4 CARE Quarterly financial performance (standalone) (Rs crore) Q4 FY12 Q4 FY11 Q3FY12 (q-o-q) Net Sales % % EBITDA % % Depreciation and amortization % % EBIT % % Interest % % PBT % % Adjusted PAT % % Fully Diluted Earnings Per Share* (Rs.) EBITDA Margin (%) Adjusted PAT Margin (%) Consolidated annual financial performance # (Rs crore) FY12 FY11 Net sales % EBITDA % Depreciation and amortisation % EBIT % Interest % PBT % Adjusted PAT % Fully Diluted Earnings Per Share* (Rs.) EBITDA margin 6.3% 10.7% Adjusted PAT margin 2.7% 3.5% # Based on abridged financials 4 Initiative of the BSE Investors Protection Fund

5 DISCLOSURES Each member of the team involved in the preparation of this grading report, hereby affirms that there exists no conflict of interest that can bias the grading recommendation of the company. This report has been sponsored by the BSE Investors Protection Fund. DISCLAIMER CARE Research, a division of Credit Analysis & REsearch Limited [CARE] has taken utmost care to ensure accuracy and objectivity while developing this report based on information available in public domain or from sources considered reliable. However, neither the accuracy nor completeness of information contained in this report is guaranteed. Opinions expressed herein are our current opinions as on the date of this report. Nothing in this report can be construed as either investment or any other advice or any solicitation, whatsoever. The subscriber / user assumes the entire risk of any use made of this report or data herein. CARE specifically states that it or any of its divisions or employees do not have any financial liabilities whatsoever to the subscribers / users of this report. This report is for personal information only of the authorised recipient in India only. This report or part of it should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person or published or copied for any purpose. PUBLISHED BY CARE Research is an independent research division of CARE Ratings, a full-service rating company. CARE Research is involved in preparing detailed industry research reports with 5-year demand and 2-year profitability outlook on the industry besides providing comprehensive trend analysis and the current state of the industry. CARE Research also offers research that is customized to client requirements. Credit Analysis & REsearch Ltd. (CARE) is a full service rating company that offers a wide range of rating and grading services across sectors. CARE has an unparallel depth of expertise. CARE Ratings methodologies are in line with the best international practices. Head Office: 4th Floor Godrej Coliseum, Off Eastern Express Highway, Somaiya Hospital Road, Sion East, Mumbai Tel: Fax: Regional Offices: New Delhi Kolkata Ahmedabad Bangalore Hyderabad Chennai Pune Published on behalf of The Stock Exchange Investors' Protection Fund First Floor, P J Towers, Dalal Street, Mumbai. Tel: / Initiative of the BSE Investors Protection Fund