JSPL by Ventura

Jindal Steel and Power Ltd

BUY

Target Price ₹ 472 CMP ₹ 155 FY20E EV/EBITDA 4.0X

Index Details We believe that the steel industry is headed for a cyclical upturn
given that China has undertaken intiatives to cut excess capacities
Sensex 32,575 citing environmental issues. Following this we have seen a rebound
in global steel prices. In India too the government measures to check
Nifty 10,114 dumping have resulted in prices firming up. With prices set to rally
there is always the threat of imports increasing, especially flat
Industry Steel & Power products. However given the fact that JSPL is primarily into long
products it should remain unaffected.
Scrip Details 14,160
Mkt Cap(₹ cr) 328.4 Post capex completion at Angul, we expect JSPL to near double its
BVPS (₹) 91.5 revenues by FY20. This coupled with the fact that coal linkages with
O/s Shares (Cr) 13.9 Coal India have been firmed up for five years and the domestic iron
ore prices are quoting at lows, the steel business is expected to do
Av Vol (Lacs) 62.6/158.3 well. The power business is also expected to perform well given that
0 FSA & PPAs are in place. Further with the sale of its power asset
52 Week H/L 2 Tamnar I (1,000 MW) already inked the company should be able to
Div Yield (%) leverage its gearing to a certain extent.
FVPS (₹)
We expect revenues to grow at a CAGR of 22.7% to Rs. 39,184 crores
Shareholding Pattern % while EBITDA is expected to grow at a faster clip of 27% CAGR to Rs. STOCK POINTER
Shareholders 61.9 9,615 crores by FY20. Net earnings are expected to turn the corner in
Promoters 38.1 FY18 and should scale to Rs.1,954 crores by FY20. We initiate with a
Public 100 BUY for a price target of Rs. 472 (target 7.0X FY20 EV/EBITDA)
Total representing an upside of 204.5% from the CMP of Rs.155 over the
next 21 months.
Jindal Steel & Power vs. Sensex
We are optimistic given that :
00000000000
 Completion of capex at Angul should enhance crude steelmaking
35000 200 capacity to 8.9 million tonnes from 6 million tonnes in FY17. Steel
30000 150 volumes are expected to grow at a CAGR of 21% to 8.4 million
25000 100 tonnes in FY20. On the back of improving realisations, revenues
20000 50 from the steel business are expected to grow at a CAGR of 25%
15000 0 from Rs. 16,280 crores in FY17 to Rs. 31,574 crores by FY20.
10000

5000
0

SENSEX JSPL

0000000000000000000;/’;;.

Key Financials (₹ in Cr)

Y/E Mar Net EBITDA PAT EPS EPS RONW ROCE P/E EV/EBITDA
Sales Growth (%) (%)
-2281 -24.93 (x) (x)
2017 21051 4658 115 1.64 (%) -7.6 -3.8
2018E 31415 7745 1865 20.38 0.4 0.3 NA 11.5
2019E 37329 8991 1955 21.36 NA 6.4 2.6 119.9 6.3
2020E 39184 9615 6.5 4.3 4.6
NA 7.5 4.0
7.1
1508

5

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Tuesday 1st August, 2017
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 With signing of PPAs & FSAS (barring Tamnar I) visibility of
power business should improve. We expect overall PLF
utilizations to improve to 70% by FY20 from the current 35%. In
line with this revenues are expected to grow at a CAGR of 17% to
Rs. 5,063 crores by FY20 from the current Rs. 3120 crores.

 JSPL skipped its debt repayment schedule in FY16 as it was cash
strapped. To overcome this the company has inked an agreement to
sell its 1,000 MW power generating asset (Tamnar I) to JSW energy
for a consideration of Rs. 4,000 crores in FY19. This should help the
company deleverage. Further improving business fundamentals
should help lower debt gearing to 1.0X by FY20 from 1.3X reported
in FY17. This compares very favourably with that of peers JSW and
Tata Steel.

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 Company Background :
Jindal Steel and Power Limited (JSPL) has operations in India and overseas. JSPL’s
business segments include Iron & Steel, Power and Others. JSPL’s steel division has a
total capacity of 9.94 million tonnes of iron making capacity and 8.9 million tonne of
crude steel capacity. It has a integrated steel plants at Raigarh (3.4 MTPA), Angul (5
MTPA) & Oman (1.5 MTPA). Its Power Division (Jindal Power Ltd) has 3,400 MW power
plant at Tamnar, Chhattisgarh. It is also backward integrated into mining with assets in
Australia, Mozambique and South Africa.

Jindal Steel and Power Ltd

Steel business Power Business Mining
3400 MW Business
8.9 million tonnes
Australia
Raigarh Tamnar-1 Reserves : 175 MT
3 million tonnes 2x250 MW Mining Capacity:2 MTPA
1000 MW
Angul Mozambique & South
4.4 million tonnes Tamnar-2 Africa
4x600 MW
Oman 2400 MW Reserves: 132 MT
1.5 million tonnes Mining Capacity : 3 MTPA

Captive Power
1700 MW

- 3 of 34- Tuesday 1st July, 2017
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Steel manufacturing flowchart
Processing of Iron Ore into molten iron

Iron Ore
1.4 tonne

 Sponge Iron
 1 tonne



 Thermal

 Coal

 1.6 tonne








 Molten iron conversion into liquid steel

 Liquid
 steel
 Ferro Sponge 0.84
 Chrome iron 1 tonne
 20 kgs tonne







 Continuous casting into finished steel products








 Liquid steel Billet TMT bars,
 1 tonne 1tonne Wire Rod,
 Structural1

tonne






 Source: Ventura Research













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 Key Investment Highlights

 Revival of steel cycle augurs well for revenue growth

The period FY13-16 was a lean period on account of declining revenue from the steel
business and erratic performance of the power vertical.

Steel business suffered from sluggish demand and poor pricing.

Since JSPL primarily manufactures long products it was insulated from dumping by
Chinese and other international players. However, the sluggish demand for long
products led to flat steel sales volume (around 4.4 MTPA in FY16), which resulted in the
steel revenue’s degrowing at a CAGR of 3% from Rs.16,615 crores in FY13 to Rs.
14,525 crores in FY16. Due to pricing pressure, realization per tonne dropped sharply by
37% YoY to Rs. 32,787 per ton in FY16 from Rs. 45,047 per ton in FY15.

Steel business Recovery in sight

10 Better realisation and volume 50000 35000 In Rs. Crores Green shoots 35
In MTPA growth expected 40000 30000 30
25000
8 20000
15000
10000 25

6 30000 5000 20
0
4 20000 15

2 10000 10

5

00 0
FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E

Capacity Volumes Average realization per tonne Revenue EBIDTA margin

Source: Steel Mint, Ventura Research Source: Company, Ventura Research

Power business - erratic performance

Barring FY15 when the power business recorded its highest unit sales, the performance
of this business has been rather erratic. As the company was concentrating on merchant
sales, realizations were not as per anticipation given the weak demand for power.

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Power Generation & Power Revenue (including Tamnar I )

16000 In Million Units 14891 14891 7000 In Rs. Crores 3.50
14000 12381 6000 3.40
12000 10636 9542 5000 3.30
10000 8281 9176 4000 3.20
7973 3000 3.10
8000 2000 3.00
6000 1000 2.90
4000 2.80
2000 2.70

0 0
FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Power Generation Revenue Gross Realization per unit

Source: Company, Ventura Research

Revenue share of JSPL’s business verticals

% share FY13 % Share 2 FY16 % share FY20
19 15
3 5
16

81 79 81

Iron & Steel Power Mining

Source: Company, Ventura Research

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Steel Business - green shoots seen in FY17.

FY17 was the year of revival not only for the overall global steel cycle but also for the
Indian steel industry and JSPL. This was on account of -

1. Sharp cut backs by China in its installed capacity citing environmental concerns.

2. Anti-dumping measures undertaken by major steel importers viz. India, US & Europe on
Chinese dumping.

3. Decrease in domestic iron ore prices which have improved profitability.

4. Revival of Indian infrastructure given the measures taken by the Modi government.

5. Shrinking demand supply gap in the domestic market which has improved long term
visibility.

6. Completion of capex at the Angul plant which augurs well for JSPL’s steel revenue
growth. Long products in particular plates, rails & TMT bars which are the revenue
spinners of JSPL have strong drivers in place.

7. Existing operations at Raigarh to function at full throttle from FY19.

8. Oman facility to produce value added products (TMT bars) from FY18.

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1. Sharp cut backs by China in its installed capacity citing environment concerns

The Chinese government in 2016 enacted the “13th Five Year Plan” with a blue print to
reduce crude steel production capacity by 100-150 million tonnes by FY20-21. In 2016,
The State Council & the National Development and Reform Commission in China issued
a number of diktats to reduce 45 million tonnes of capacity. But provinces and
municipalities determined targets for reducing 84.975 million tonnes of steel
overcapacity in 2016-nearly twice of the original figure established by their Central
Government. This sharp scale back in production should lead to a sharp reduction in
global capacities.

Capacity cuts undertaken by Chinese provinces (Capacity in Million Tonnes)

targets for "13th Remaining steel Utilization
Province Five-Year Plan" Completed in 2016 production
Rate (%)
capacity

Hebei 49.1 16.4 32.7 75.0

Shandong 15.0 2.7 12.3 83.3

Jiangsu 17.5 5.8 11.7 20.0

Xinjiang 7.0 0.9 6.1 72.9

Tianjin 9.0 3.7 5.3 0.0

Anhui 6.6 3.1 3.5 0.0

Gansu 3.0 1.4 1.6 0.0

Shaanxi 1.0 0.0 1.0 72.9

Yunnan 4.5 3.8 0.8 0.0

Central state owned 20.7 19.3 1.4 0.0
enterpris es

Total 133.5 57.1 76.4

Source: Greenpeace, Ventura Research

Global Steel Supply & Demand dynamics

3000 Capacity adequate
2500 even after 85 MT
capacity cut in China

2000 Capacity adequate
1500 even after capacity
1000 cut back in China

500

0 2011 2012 2013 2014 2015 2016 2017E
2010 Tuesday 1st July, 2017

Global Capacity Global Demand

Source: World Steel Association, Ventura Research

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Although the global capacity still far exceeds consumption, the low price steel supply
cuts by China will elevate marginal pressures and lend to buoyancy in steel prices.

Chinese finished steel prices revival augurs well for global industry

China TMT Rebar YoY China TMT Rebar MoM

550 (USD/MT) 480 (USD/MT)
500 460

450 440

400 420

350 400

300 380

250 FY14 FY15 FY16 FY17 YTD FY18 360
FY13 YTD FY18 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17

Source: Bloomberg, Ventura Research Source: Bloomberg, Ventura Research

China Billet YoY China Billet MoM

550 (USD/MT) 480 (USD/MT)
500 470

460

450 450

440

400 430

350 420

410

300 400

390

250 380
FY13
FY14 FY15 FY16 FY17 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17

Source: Bloomberg, Ventura Research Source: Bloomberg, Ventura Research

China Sections YoY China Sections MoM

650 (USD/MT) 550 (USD/MT)
600 530
510
550 490
470
500 450
430
450 410
390
400 370
350
350
Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17
300
Source: Bloomberg, Ventura Research
250 FY14 FY15 FY16 FY17 YTD FY18
FY13

Source: Bloomberg, Ventura Research

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China HR Plate YoY China HR Plate MoM

600 (USD/MT) 500 (USD/MT)
550 490
480
500 470
460
450 450
440
400 430
420
350 410
400
300
Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17
250 FY14 FY15 FY16 FY17 YTD FY18
FY13 Source: Bloomberg, Ventura Research

Source: Bloomberg, Ventura Research Hot Rolled Coil China MoM

Hot Rolled Coil China YoY 550
(USD/MT)
550 (USD/MT)
500 450

450 350
Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17
400
Source: Bloomberg, Ventura Research
350
Cold Rolled Coil China MoM
300
600 (USD/MT)
250 FY14 FY15 FY16 FY17 YTD FY18 580
FY13 560
540
Source: Bloomberg, Ventura Research 520
500
Cold Rolled Coil China YoY 480
460
650 (USD/MT) 440
600 420
400
550
Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17
500
Source: Bloomberg, Ventura Research
450

400

350 FY14 FY15 FY16 FY17 YTD FY18
FY13

Source: Bloomberg, Ventura Research

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Coking coal Australia YoY Coking coal Australia MoM

180 (USD/MT) 240 (USD/MT)

160 220
200
140 180
160
120 140
120
100 100

80 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17

60 FY14 FY15 FY16 FY17 YTD FY18 Source: Steel Mint, Ventura Research
FY13
Coking coal USA MoM
Source: Steel Mint, Ventura Research
245 (USD/MT)
Coking coal USA YoY
225
200 (USD/MT) 205
185
180 165
145
160 125

140 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17

120 Source: Steel Mint, Ventura Research

100

80 FY14 FY15 FY16 FY17 YTD FY18
FY13

Source: Steel Mint, Ventura Research

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Domestic Price Trends

Iron Ore Fines YoY Iron Ore Fines MoM

2500 (Rs./MT) 1450 (Rs./MT)
2100 1400 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
1350
1700 1300
1250
1300 1200
1150
900 1100
1050
500 1000
FY13
FY14 FY15 FY16 FY17 YTD FY18 Jul-17

Source: Steel Mint, Ventura Research Source: Steel Mint, Ventura Research

45000 Hot Rolled Coil YoY Hot Rolled Coil MoM

(Rs./MT) 45000 (Rs/MT)

35000 40000

35000

25000 30000
Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17
FY13 FY14 FY15 FY16 FY17 YTD FY18
Source: Steel Mint, Ventura Research
Source: Steel Mint, Ventura Research

HR Plate YoY HR Plate MoM

37500 (Rs./MT) 40000 (Rs./MT)
39000 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
27500 38000
37000
36000
35000
34000
33000

FY13 FY14 FY15 FY16 FY17 YTD FY18 Jul-17

Source: Bloomberg, Ventura Research Source: Bloomberg, Ventura Research

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Cold Rolled Coil YoY Cold Rolled Coil MoM

60000 (Rs./MT) 60000 (Rs./MT)
50000
40000
40000

30000

20000

10000

20000 0
Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17
FY13 FY14 FY15 FY16 FY17 YTD FY18

Source: Steel Mint, Ventura Research Source: Steel Mint, Ventura Research

Billet Price YoY Billet Price MoM

35000 (Rs/MT) 29000 (Rs/MT)
30000 28000

25000 27000

26000

20000 25000

15000 24000

10000 23000
Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17
FY13 FY14 FY15 FY16 FY17 YTD FY18

Source: Bloomberg, Ventura Research Source: Steel Mint, Ventura Research

Structural’s Mumbai YoY Structural’s Mumbai MoM

40000 (Rs./MT) 35000 (Rs./MT)
35000 34000

33000

30000 32000

31000

25000

30000

20000 29000
Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17
FY13 FY14 FY15 FY16 FY17 YTD FY18

Source: Steel Mint, Ventura Research Source: Steel Mint, Ventura Research

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40000 Raipur Wire Rod 5.5 MM YoY Raipur Wire Rod 5.5 MM MoM
35000
(Rs./MT) 33000

30000 (Rs./MT)

25000 32000

20000 31000

FY13 FY14 FY15 FY16 FY17 YTD FY18 30000

Source: Steel Mint, Ventura Research 29000

28000

27000
Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17

Source: Steel Mint, Ventura Research

TMT Bar YoY TMT Bar MoM

60000 (Rs./MT) 36500 (Rs./MT)
50000 36000 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
35500
40000 35000
34500
30000 34000
33500
20000 33000
32500

FY13 FY14 FY15 FY16 FY17 YTD FY18 Jul-17

Source: Steel Mint, Ventura Research Source: Steel Mint, Ventura Research

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2. Anti-dumping measures undertaken by major steel importers India, US & Europe
on Chinese dumping

Government of India was expeditious to act against the deteriorating steel industry by
implementing a series of measures such as (a) higher import duty of 12.5% vs. 10% on
HRC imports (b) safeguard duty (c) minimum import price (MIP) (d) anti-dumping duty.

Currently, there is a safeguard duty at 15% on HRC imports (14 March 2017- 13
September 2017), which will fall to 10% (14 September 2017- 13 March 2018) and nil
thereafter. Safeguard duty is applicable to China, Ukraine and all developed countries
including Japan, South Korea and Europe. MIP (HRC import price was US$445/t) has
been replaced with anti-dumping duty (reference price for imports is US$489/t).

Landed cost of import of CFR HRC on 12th July, 2017

HRC prices, CFR mumbai US$ per MT
CFR + BCD (@12.5%) 495.0
556.9

Safeguard duty @ 10% on CFR 74.3

Anti Dumping duty Not applicable as CIF prices is
greater than references prices
Port handling
Miscellaneous expenses of US$ 489/MT
20.0
Total in USD 5.0
Landed cost of Import ( In INR) 656.1

Ex-Mumbai (Including GST) 42188.8
41890.0
Source: Steel Mint, Ventura Research

Currently prices are much above the reference prices. However, this provides a cushion
to domestic players from any pricing pressures (a much needed succor for the ailing
steel industry)

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3. Decrease in iron ore prices have improved profitability

Most of the players in India have captive mines. With mining issues being resolved more
iron ore mines are expected to be allotted thereby easing future supply pressures.
Decreasing trend in iron ore pricing is observed from FY13 onwards and it is expected to
fall further which would aid profitability of primary steel producers.

Out of the total iron ore requirement (FY18) of 8.9 Million Tonnes, JSPL purchased 4.89
million tonnes of iron ore fines from nearby mines, while iron ore pellets of 4 million
tonnes were sourced internally from its pellet plant in Barbil. For the production of pellets
in Barbil (which has a capacity of 9 million tonnes) it sources iron ore requirements from
the captive Tensa Mine (upto 3 Million Tonnes) and the rest is purchased.

Domestic prices correcting…

NMDC 6-40 MM Iron Ore Lumps YoY NMDC 6-40 MM Iron Ore Lumps MoM

6000 (Rs./MT) 2500 (Rs./MT)
5000 2450
2400 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17
4000 2350
2300
3000 2250
2200
2000 2150
2100
1000

0 FY14 FY15 FY16 FY17 YTD FY18
FY13

Source: Steel Mint, Ventura Research Source: Steel Mint, Ventura Research

NMDC 64% Iron Ore Fines YoY NMDC 64% Iron Ore Fines MoM

3500 (Rs./MT) 2250 (Rs./MT)
3000 2200
2500 2150 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
2000 2100
1500 2050
1000 2000
1950
500 1900
0 1850

FY13 FY14 FY15 FY16 FY17 YTD FY18 Jul-17

Source: Steel Mint, Ventura Research Source: Steel Mint, Ventura Research

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…despite global prices moving up

China Iron Ore 62% Fines YoY China Iron Ore 62% Fines MoM

140 (USD/MT) 100 (USD/MT)
80
120
60
100
40
80
20
60
0
40
Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17
20 Source: Bloomberg, Ventura Research

0 FY14 FY15 FY16 FY17 YTD FY18
FY13

Source: Bloomberg, Ventura Research

Brazil Iron Ore 65% Fines YoY Brazil Iron Ore 65% Fines MoM

160 (USD/MT) 100 (USD/MT)
140
80
120
60
100
40
80
20
60
0
40 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17

20 Source: Steel Mint, Ventura Research

0 FY14 FY15 FY16 FY17 YTD FY18
FY13

Source: Steel Mint, Ventura Research

Australia Iron 61.5% Fines YoY Australia Iron Ore 61.5% Fines MoM

140 (USD/MT) 90 (USD/MT)
80
120 70
60
100 50
40
80 30
20
60 10
0
40
Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17
20
Source: Steel Mint, Ventura Research
0 FY14 FY15 FY16 FY17 YTD FY18
FY13

Source: Steel Mint, Ventura Research

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4. Revival of Indian infrastructure given the measures undertaken by the Modi
Government

India became the 3rd largest producer of steel in 2015 and is well poised to emerge as
the 2nd largest producer after China. There is significant potential for growth given the
low per capita steel consumption of 61 kgs in India, as compared to the world average of
208 kgs. The Indian economy is rapidly growing with enormous focus on the
infrastructure and construction sector. Several initiatives mainly, affordable housing,
expansion of railway networks, development of shipbuilding industry, opening of defense
sector for private participation, and the anticipated growth in the automobile sector, are
expected to create a significant amount of demand for steel in the country.

Compelling growth prospects Growth in India’s GDP

600 492.7 3500000 9
3000000 8
500 282.7 2500000 7
2000000 6
400 311.4 222 1500000
300 1000000
31.3 63
200 India 500000
US Africa Middle China 0
100 east
FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E
0 World steel per capita consumption
European
Union

GDP ( In Million USD) % GDP Growth (RHS)

Source: World Steel Association, Ventura Research Source: Thomson Reuters, Ventura Research

Indian steel demand set to grow at a CAGR of 7.1% from FY17 onwards

Particulars (in MTPA) FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E

Capacity 97.0 100.0 110.0 122.0 125.0 130.0 133.0 133.0

Utilisation (%) 81.0 80.0 81.0 74.0 77.0 79.7 82.6 87.6

Crude Steel production 78.6 80.0 89.1 90.3 96.3 103.6 109.9 116.5
Import 7.9 5.5 9.3 11.7 7.4 5.5 5.5 5.5

Export 5.4 6.0 5.6 4.1 8.2 8.2 8.2 8.2

Double counting 7.6 5.4 15.8 16.4 11.8 11.0 11.0 11.0
Crude Steel demand 73.5 74.1 77.0 81.5 83.7 89.9 96.2 102.8

Source: Steel Ministry, Ventura Research

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Sector wise Steel demand growth

Current Estimated Current Future

Sr. No. industry application Demand Demand CAGR (%) Share Share Product Profile

2015-16 2030-31 (%) (%)

(in MTPA)

1 Construction & Infrastructure 50.5 138.0 7.4 62.0 60.0 Bar & Rods, structurals,

2 Engineering & Fabrication plates and pipes
3 Automotive
4 Other Transport 18.0 50.0 7.6 22.1 21.7 Plates, Bars & Rods
5 Packaging & others 8.2 28.0
2.4 8.0 9.2 10.1 12.2 HRC , CRC, Plates
Total Finished Steel Consumption 2.4 6.0
Per Capita (Kg/Capita) 81.5 230.0 9.0 2.9 3.5 Railway material
61.0 158.0
Source: Steel Ministry, Ventura Research 6.8 2.9 2.6 Diversified

5. Shrinking demand supply gap of domestic manufacturers

Investment in new steel capacity creation has come to a halt in India over the last three
years due to the deteriorating global steel industry environment and highly leveraged
balance sheets of Indian companies. It is estimated that Indian steel demand supply will
tighten significantly post FY19 given slowing supply and gradually improving demand.

Indian Steel Supply

Particulars (in MTPA) FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E
125.0 130.0 133.0 133.0
Capacity 97.0 100.0 110.0 122.0 77.0 79.7 82.6 87.6
96.3 103.6 109.9 116.5
Utilisation (%) 81.0 80.0 81.0 74.0
Crude Steel production 78.6
80.0 89.1 90.3

Source: Steel Ministry, Ventura Research

6. Culmination of capex at Angul augurs well for JSPL

The Angul plant consists of 1.8 million tonnes of a coal fired synthetic gas based DRI
plant and the recently commissioned 3.2 MTPA blast furnace. With these facilities now in
operation, crude steel capacity is expected to grow 3X to 4.5MTPA from 1.5 MTPA. We
expect steel volumes to grow at a CAGR of 65% to 4.5 MTPA by FY20.

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Steelmaking capacity to grow 3 fold by FY18 at Angul

v

5 4.5 4.5 4.5

(In MTPA)

4

3

2

1.5 1.5 1.5

1 FY16 FY17 FY18E FY19E FY20E
FY15

Source: Company, Ventura Research

Steel Volumes to be main contributor

5 (In %) 100
FY20E 90
(In MTPA) 80
70
4 60
50
3 40
30
2

1

0 FY16 FY17 FY18E FY19E
FY15

Angul Steel Volumes Utilisation Rate (RHS)

Source: Company, Ventura Research

Break up of finished steel production at Angul Plant

Product Capacity Production ('000 tonnes)
('000 tonnes)
FY14 FY15 FY16 FY17 FY18E FY19E FY20E
40.0 40.0 480.0 960.0 1104.0 1140.0
Plates 1200.0 40.0 NA NA 420.0 980.0 1288.0 1330.0

TMT Bar 1400.0 NA

Source: Company, Ventura Research

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7. Existing operations at Raigarh to function at full throttle from FY18 onwards

Total steel making capacity at Raigarh plant is expected to increase by 0.5 MTPA to 3
MTPA by FY20. We expect high steady utilization rates from FY19 onwards.

Stable Steel Volumes expected (In %) 100
90
4 In Milliion Tonnes FY20E 80
70
3 60
50
2 40

1

0 FY18E FY19E
FY17 Raigarh utilisation % (RHS)

Source: Company, Ventura Research

Break up of finished steel production at Raigarh Plant

Product Capacity Production ('000 tonnes)
('000 tonnes)
FY14 FY15 FY16 FY17 FY18E FY19E FY20E
Rails 750.0 252.0 343.6 250.4 225.0 450.0 712.5 712.5
680.7 705.9 500.0 700.0 920.0 950.0
Plates 1000.0 759.9 280.2 352.0 390.0 450.0 552.0 570.0

Sections 600.0 253.5

Source: Company, Ventura Research

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8. Oman facility to produce value added products (TMT bars) from FY18 onwards

JSPL completed acquisition in Shadeed Iron & Steel LLC in 2010 (for $464 millions),
and commissioned a Hot Briquetted Iron Plant of 1.5 MTPA capacity in FY11. Thereafter
in FY14, the Company added a 2 MTPA steel melting shop to manufacture billets. This
facility was commissioned in FY15. Further, the company undertook forward integration
of 1.4 MTPA TMT bar rolling mill. With TMT bar volumes slowly ramping up, the product
mix is expected to help improve average realizations.

Value added product mix

1.6 (In Million Tonnes)

1.4

1.2 0.5

1.0 0.9

0.8 1.5 1.4 1.4 FY17 1.0 1.1 1.3
0.6
1.1
0.4
FY16
0.2 0.4 0.2

0.0 FY14 FY15 FY18E FY19E 0.1
FY13
FY20E

Billet TMT Bars

Source: Company, Ventura Research

Revenues from this business are expected to grow at a CAGR of 4.8% to Rs. 3,753
crores by FY20.

Stable Revenues

4000 Rs. In crores 3674 3714 3753
3500
3000 3200 3133 3260 FY19E FY20E
2500 2891
2000 2816
1500
1000

500

FY13 FY14 FY15 FY16 FY17 FY18E

Source: Company, Ventura Research

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 Power Business – scripting a strong growth story



In a renewable world, generation mix to still be dominated by coal assets

Despite the high growth of renewables, India’s energy mix will predominantly remain
skewed towards thermal sources.

Generation Mix 2016 Generation Mix 2019
1.91 % share 4.64 % share

14.13 14.7

14.15

19.48 61.18

69.81

Thermal Renewable Hydro Nuclear Thermal Renewable Hydro Nuclear

Source: PWC, Ventura Research Source: PWC ,Ventura Research

Electricity Demand
The overall deficit in fulfilling the energy requirement of the country has declined from
11.5% in FY97 to 2.1% in FY16. The energy requirement is estimated to increase at a
CAGR of 7% from 1,354,874 million units in FY17 to 1,904,862 million units in FY22.
Hence, we expect production to keep pace with demand.

Region wise Electricity Demand (In Million Units)

Region 2016-17 2021-22

Northern 422498 594000

Western 394188 539310

Southern 357826 510786

Eastern 163790 236952

North East 16154 23244

A & N Island 366 505

Lakshdweep 52 65

Total 1354874 1904862

Source: CEA, Ventura Research

Despite sale of assets JSPL’s power revenues set to grow
JSPL has 3,400 MW of generating assets.

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Power generation portfolio

Tamnar I (2 unitsx250 MW) 1000 MW

Sold to JSW Tamnar II (4 units x600 MW)2400 MW
energy
Total 3400 MW

Source: Company, Ventura Research

However, to deleverage its balance sheet and improve liquidity, it concluded a binding
agreement for the sale of a thermal power plant worth Rs. 4,000 crores (1,000 MW plant
located at Tamnar, Chhattisgarh). This deal has two options:

Option 1: Sale of asset without Fuel Source Agreement (FSA) for Rs. 4,000 crores
Option 2: Sale of asset with FSA for Rs. 6,500 crores

This deal is expected to conclude in H1FY19. In our model we have assumed option 1
for cash flow consideration. This would mean in case of option 2, there would be an
upside risk to our EPS estimates by ~ Rs. 9.8 per share in FY19.

Details of Power purchase agreements

Sold to JSW Project Buyer Period Quantity (MW) FSA
energy Tamnar I Tamil Nadu Sep 2014 to Aug 17 400 r
Tamnar II Tamil Nadu Feb 2014 to Sep 2028 400 a
Tamnar II Karnataka Jun 2016 to May 4041 200 a
Tamnar II Karnataka Oct 2017 to Sep 2042 150 a
Tamnar II Chattisgarh From start of commercial operation 60 a
Tamnar II Chattisgarh From start of commercial operation 60 r

Total 870

Source: Company, Ventura Research

After the asset sale JSPL will be left with a portfolio of 2,400 MW of thermal power. We
expect the revenues to grow at a CAGR of 17.5% to Rs. 5,063 crores by FY20. We
expect the overall portfolio PLF to improve to 70% from the current 35%. We expect
EBIDTA to grow at a CAGR of 20% to Rs. 1,814 crores by FY20.

Capacity reduction with stable utilizations Stable revenue from long term PPA’s

4000 In MW Decline in capacity post 120 6000 In Rs. Crores 3.5
3500 sale of Tanmar I 100 5000 FY13 FY14 FY15 3.4
3000 FY13 FY14 80 4000 3.3
2500 FY17 FY18E FY19E FY20E 60 3000 3.2
2000 40 2000 3.1
1500 20 1000 3.0
1000 0 2.9
0 2.8
500 2.7
0

FY15 FY16 FY16 FY17 FY18E FY19E FY20E

Capacity Overall PLF % (RHS) Revenue Gross realisation Per unit

Source: Company, Ventura Research Source: Company, Ventura Research

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 Mining Business – sizable reserves

Revenues from the mining segment were on a declining trend given the shutdown of its
Australian assets (Labour unrest) and scaling down of its Mozambique assets given not
so remunerative pricing for coking coal prevalent globally. However with the revival of
coking coal prices, the mining operations were reinstated in FY17. We expect strong
volume growth of 66% CAGR to 3.9 million tonnes by FY20. In line we expect revenues
to grow at a CAGR of 27% to Rs. 1,890 crores citing the expected improvement in
realizations.

JSPL’s mining vertical has sizeable reserves

Location Annual Production (MTPA) Realisation
Reserves Capacity $/Ton
88.0
MT MTPA FY17 FY18 FY19 FY20 76.5
NA
Australia 175.0 2.0 0.3 1.0 1.2 1.5

Mozambique 132.0 3.0 0.6 1.5 2.1 2.4

South Africa 22.0 1.2 NA NA NA NA

Source: Company, Ventura Research

Mining business revenue

2000

1800 In Rs. Crores

1600

1400

1200

 1000
 800
 600
 400
 200
0
 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E

     Source: Company, Ventura Research     




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 Strong revenue & profitability growth on cards



Overall on a consolidated basis we expect revenue to grow at a CAGR of 22.7% to Rs.

39,184 crores by FY20. On the back of the strong growth trajectory, improved pricing,

and stable raw material costs, EBITDA is expected to grow at a faster CAGR of 27% to

Rs. 9,615 crores by FY20.

Consolidated Revenue Consolidated EBITDA

45000 50,000 (Rs in crore) ( In %) 40
 40000 Rs. In Crores
30
 40,000
 35000
 30000 30,000 20
 25000 20,000 10
20000 0
 15000
 10000  10,000 -10

 5000    FY16 FY17 FY18EFY19E FY20E  0      -20
 0  FY14 FY15 
   FY13FY14 FY15 FY16 FY17 FY18E FY19E FY20E
FY13   Net Sales  EBITDA Margin (RHS)

Source:Company, Ventura Research   
 Source: Company, Ventura Research 

Debt deleveraging on the anvil

In line with the sagging fortunes of the steel industry, JSPL had defaulted on its debt
obligations in FY16. JSPL’s debt obligations too had ballooned to Rs. 45,956 crores and
debt gearing had peaked at 1.3x. However with the cycle turning for the better in
FY2017, JSPL’s servicing of debt was regularized. On the back of our optimistic outlook,
expected improvement in profitability and proceeds from the Tamnar I asset (Rs. 4,000
crores) being used to repay debt, we expect the gearing to reduce to 1.0X (FY20 overall
debt of Rs. 28,459 crores).

Debt to Equity to Improve Debt to EBITDA ratio

5.0 (X) 14 (X)
4.0 12
10
3.0 8
6
2.0 4
2
1.0 0

- FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E

FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E Debt to EBIDTA ratio
Interest Coverage Ratio
(1.0) Debt to Equity ratio Source: Company, Ventura Research


v
Source: Company, Ventura Research





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Resurgence in profitability

As a result we expect net earnings to turn around in FY18 (from loss making in FY17)
and post a profit of Rs. 1,954 crores by FY20. Although optically profit growth between
FY19 and FY20 is seemingly flat, we need to take into account that FY19 profit figure of
Rs. 1,864 crores includes an exceptional one time profit of Rs. 1,000 crores. (On Sale of
Tamnar I assets to JSW energy)

4000 Strong profitability on track In % 20
3000 15
2000 Rs. In Crores 10
1000 5
FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E 0
0 -5
-1000 -10
-2000 -15
-3000 -20
-4000

PAT PAT margin

Source: Company, Ventura Research

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 Financial Performance

JSPL’s top line grew by 29% YoY in Q4FY17 to Rs. 6,290.5 crores from Rs. 4,872.4
crores in Q4FY16 on account of higher realization from the steel segment. Revenues of
the steel segment grew by Rs. 687 crores on the back of a 23% jump in average
realization to Rs. 40,163 per tonne in Q4FY17 from Rs. 32,673 per tonne in Q4FY16.
Revenues from the power segment increased marginally by 8% YoY to Rs. 1,564.5
crores. The Mining vertical too reported a strong performance with revenues growing to
Rs. 279 crores in Q4YF17 from Rs. 30 crores in Q4FY16. EBITDA increased by 42%
YoY from Rs. 838.2 crores in Q4FY16 to Rs. 1,522.1 crores and the EBITDA margin
improved by 630bps to 24.7% on account of operational leverage and decrease in other
expenditure.

In FY17, JSPL net sales stood at Rs. 21,050.5 crores registering a growth of 14.6%
YoY. Steel sales volumes increased by 6% from 4.4 million metric tonnes in FY16 to 4.7
million metric tonnes in FY17 leading to a revenue growth of 7.9% to Rs.16,611 crores.
The Power segment showed a growth of 12% YoY to Rs. 3880 crores. Further, revenue
from mining business increased by 2X from Rs. 409 crores in FY16 to Rs. 891 crores in
FY17. EBITDA margin improved by 340 bps to 22.1% in FY17 due to a decrease in raw
material costs. Net losses decreased substantially by 24% on reversal of amortization
expenses for the mining business.

Financial Performance (Rs. In Crores)

Particulars Q4FY17 Q4FY16 FY17 FY16

Net Sales 6290.5 4872.4 21050.5 18371.6

Growth 29.1% 14.6%

Total Expenditure 4738.4 3974.2 16392.5 14934.7

EBITDA 1552.1 898.2 4658.1 3436.9

Margin (%) 24.7% 18.4% 22.1% 18.7%

Depreciation 1005.8 1232.4 3949.0 4067.9

EBIT (Ex OI) 546.2 -334.2 709.0 -631.0

Non Operating Income 9.0 107.4 10.0 156.7

EBIT 555.2 -226.8 719.0 -474.3

Margin (%) 8.8% -4.7% 3.4% -2.6%

Finance cost 864.2 853.2 3389.6 3253.6

Exceptional items 253.4 -112.6 -372.3 -235.8

PBT -55.5 -967.4 -3042.9 -3963.7

Margin (%) -0.9% -19.9% -0.1 -0.2

Provision for Tax 42.7 330.8 -502.7 -877.5

Profit after tax -98.2 -636.7 -2540.2 -3086.2

Margin (%) -1.6% -13.1% -0.1 -0.2

Minority 50.5 58.7 -258.9 119.9

Profit after Tax and allocation of

minority -47.7 -578.0 -2281.3 -2966.3

e

Source: Company ,Ventura Research

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 Financial Outlook

We expect net sales to grow at a 3 year CAGR of 22.7% from Rs. 21,050.5 crores in
FY17 to Rs. 39,184 crores in FY20 on the back of an Infrastructure push by the
Government, revival of the global steel cycle, completion of capex and monetization of
the thermal power plant asset. EBITDA margin is set to improve to ~24% (+200 bps) by
FY20 due to improved sales and stabilization of production cost. Further, the PAT
margins are expected to improve to ~3.75% by FY20 from current levels on account of a
gradual decrease in the interest cost. As a consequence, the return ratios, ROE and
ROCE are set to improve significantly from -8% and -4% in FY17 to 7% and 4%
respectively by FY20.

Strong Business growth visible Reducing Debt

45,000 (Rs in crore) ( In %) 40 2.4 (No of times)
40,000 2.1
35,000 30
1.8
30,000 20
1.5
25,000 10
20,000 1.2

15,000 0 0.9

10,000 -10 0.6
5,000
0.3
0 -20
-
FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E
Debt to Equity ratio
Net Sales EBITDA Margin (RHS) PAT Margin (RHS)

Source: Company, Ventura Research Source: Company, Ventura Research

Upswing in return ratios Healthy working capital cycle

15 (In %) 100 (No of days)
90
10
80

5 70

60

0 50
FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E
40
-5
30

20

-10 10

-15 0

FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E

RoCE RoE Inventory Days Debtor Days Credit Days

Source: Company, Ventura Research Source: Company, Ventura Research

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 Key Risk

 Coal block allocation scam

CBI had registered a case against Mr. Naveen Jindal in the allocation of the Amarkonda
Murgadangal coal block in Jharkhand. On 24th April, 2017 Mr. Jindal was formally
charged with criminal misconduct & false representation of facts in the allocation of
above coal block. Further, on 10th July, 2017 CBI filed another supplementary charge
sheet against Mr. Jindal in the Urtan North coal block case. In our view, the above
mentioned cases will not have any financial impact on the company. Markets have
already priced in the impact of above cases & any adverse order will not impact the
fortunes of the company.

 Slow down in Infrastructure boom

Steel demand is expected to grow at a CAGR of 7.1% on the back of a boost given to
infrastructure by the launch of “Housing for all by 2020”, infrastructure status given to
housing projects, opening up of the defence sector to private players and growth in the
automobile industry. Any delays in achieving the stipulated targets would mean a
setback to anticipated steel demand and hence impact the profitability assumption for
JSPL negatively.

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 Valuation

We initiate coverage on JSPL as a BUY with a price objective of Rs. 472 (7.0X
EV/EBIDTA) representing a potential upside of ~204.5% from the CMP of Rs. 155. At
present, the stock is trading at 4.5X and 3.9X its estimated EV/EBIDTA for FY19 and
FY20. Although our valuation is aggressive, we believe that the following factors
warrant a premium:

1. Robust outlook of the Steel sector, not only on the domestic front but globally too,
augurs well for JSPL.

2. Commissioning of the 3.2 MTPA blast furnace at Angul to bolster the steel
segment’s revenue at a CAGR of 24% from Rs.16,280 crores in FY17 to Rs. 31,574
crores by FY20.

3. Improving outlook on Power business, revenues are going to grow at a CAGR of
17.5% to Rs. 5,063 crores by FY20.

4. Mining operations to get a fillip, therefore revenues are going to grow at a CAGR of
27% to Rs. 1,890 crores by FY20.

5. Sale of 1000 MW Tamnar-I asset to create liquidity which in turn would aid in
bringing down debt and improve the solvency position of the company

JSPL EV/EBIDTA trend

90000 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
80000
70000
60000
50000
40000
30000
20000
10000

0
Mar-10

EV 7X 8X 9X 10X 11X

Source: Company, Ventura Research

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Peer Comparison (Rs. In crore)

Y/E March Sales EBITDA PAT EBITDA PAT ROE ROCE P/E P/BV EV/ Debt/
Margin Margin (%) (%) (x) (x) EBITDA Equity

(%) (%) 0.4 (x)
0.4
Jindal Steel and Power 100.00% 0.4
0.4
2016 18,371.0 3,436.0 -2,730 18.7 -14.9 -9 -5 N/A 3 1.4
0.7 11.2 1.3
2017 21,051.0 4,658.0 -2,281 22.1 -10.8 -7.6 -3.8 N/A 1.2 6.2 1.2
1.5 4.5 1.1
2018E 13,415.0 7,745.0 115 24.7 0.4 0.4 0.3 11,1.3 1.3

2019E 37,329.0 8,991.0 1,865 24.1 5 6.4 2.6 6.9 0.4
0.7
Tata Steel 0.7
0.7
2016 1,15,951.7 7,585.7 925.6 6.5 0.8 3.0 2.2 15.6 17.0 2.0
1.6 7.3 2.4
2017 1,11,562.1 17,535.3 3,947.6 15.7 3.5 3.1 9.6 14.1 2.0 7.2 2.3
2.0 6.7 2.0
2018E 1,23,001.2 18,507.2 5,350.7 15.0 4.4 15.4 8.2 11.3 1.7

2019E 1,24,918.5 19,942.0 6,133 16.0 4.9 15.2 6.4 9.4 0.6
0.6
Steel Authority of India 0.8
0.8
2016 38,513.7 -3,632.8 -4,137.3 -9.4 -10.7 -10.0 -9.5 N/A N/A 0.9
1,634.4 0.9
2017 44,452.4 38.0 -2,616.5 0.1 -5.9 -7.0 -3.5 N/A 1.2
12.9 1.2
2018E 55,243.1 4,856.0 -715.5 8.8 -1.3 -0.5 2.0 77.8 9.0

2019E 61,437.8 6,949.6 924.8 11.3 1.5 2.3 4.6 21.2

JSW Steel

2016 41,217.3 6,073.0 1,383.5 14.7 3.4 6.2 5.1 N/A 15.4 1.8
7.7 1.6
2017 54,628.2 12,174.2 3,523.1 22.3 6.4 15.9 14.9 12.7 7.2 1.7
6.6 1.5
2018E 62,293.7 12,981.1 4,011.6 20.8 6.4 15.9 11.7 13.0

2019E 65,558.7 14,306.6 4,797.6 21.8 7.3 16.4 12.5 10.9

Prakash Industries

2016 2,055.3 159.5 20.6 7.8 1.0 1.0 3.3 64.1 10.1 0.3
7.6 0.2
2017 2,173.5 261.2 81 12.0 3.7 3.7 5.8 16.3 6.3 0.2
5.0 0.2
2018E 3,059.9 427.0 192.3 14.0 6.3 7.7 10.3 10.8

2019E 3,475.6 482.5 243.0 13.9 7.0 8.9 11.4 8.6

Source: Thomson Reuters, Ventura Research

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Financials and Projections

Y/E March, Fig in ₹ Cr FY16 FY17 FY18E FY19E FY20E Y/E March, Fig in ₹ Cr FY16 FY17 FY18E FY19E FY20E

Profit & Loss Statement Per Share Data (Rs)

Net Sales 18371.6 21050.5 31414.9 37239.1 39183.7 Adj. EPS -32.4 -24.9 1.3 20.4 21.4

% Chg. 14.6 49.2 18.5 5.2 Cash EPS 12.0 18.2 47.6 68.7 69.7

Total Expenditure 14934.7 16392.5 23669.8 28248.0 29569.0 DPS 0.0 0.0 0.0 0.0 0.0

% Chg. 9.8 44.4 19.3 4.7 Book Value 354.5 328.4 314.9 320.5 327.0

EBDITA 3436.9 4658.1 7745.2 8991.1 9614.7 Capital, Liquidity, Returns Ratio

EBDITA Margin % 18.7 22.1 24.7 24.1 24.5 Debt / Equity (x) 1.4 1.3 1.2 1.1 1.0

Other Income 156.7 10.0 10.0 10.0 10.0 Current Ratio (x) 0.8 0.6 0.6 0.8 1.0

PBDIT 3593.6 4668.0 7755.2 9001.1 9624.7 ROE (%) -9% -8% 0% 6% 7%

Depreciation 4067.9 3949.0 4237.2 4420.6 4425.5 ROCE (%) -5% -4% 0% 3% 4%

Interest 3253.6 3389.6 3368.6 3031.9 2681.6 Dividend Yield (%) 0.0 0.0 0.0 0.0 0.0

Exceptional items 235.8 372.3 0.0 1000.0 0.0 Valuation Ratio (x)

PBT -3963.7 -3042.9 149.4 2548.6 2517.5 P/E NA NA 119.9 7.5 7.1

Tax Provisions -877.5 -502.7 32.1 663.0 541.3 P/BV 0.4 0.5 0.5 0.5 0.5

Reported PAT -3086.2 -2540.2 117.3 1885.7 1976.3 EV/Sales 3.1 2.5 1.6 1.1 1.0

Minority Interest -119.9 -258.9 1.3 20.8 21.8 EV/EBIDTA 16.7 11.5 6.3 4.6 4.0

PAT -2966.3 -2281.3 116.0 1864.9 1954.5 Efficiency Ratio (x)

PAT Margin (%) -16.1 -10.8 0.4 5.0 5.0 Inventory (days) 64.7 65.0 65.0 65.0 65.0

RM / Sales (%) 35.6 33.6 30.9 31.6 32.0 Debtors (days) 28.4 32.0 31.0 30.0 30.0

Tax Rate (%) 22.1 16.5 21.5 26.0 21.5 Creditors (days) 46.0 50.0 50.0 48.0 48.0

Balance Sheet Cash Flow Statement

Share Capital 91.5 91.5 91.5 91.5 91.5 Profit Before Tax -2674.9 -3042.9 149.4 2548.6 2517.5

Reserves & Surplus 32344.6 29959.0 28721.0 29231.9 29832.4 Depreciation 3046.2 3949.0 4237.2 4420.6 4425.5

Minority Interest 899.8 646.7 647.9 666.7 820.0 Working Capital Changes 1366.0 4462.5 735.2 -1575.0 -2245.3

Long Term Borrowings 36353.0 32598.3 28398.1 23944.6 21099.6 Others 2594.7 -2896.9 -3346.5 -3704.9 -3232.9

Deferred Tax Liability 6621.2 5358.6 4913.8 4945.1 4483.1 Operating Cash Flow 4332.0 2471.8 1775.3 1689.3 1464.8

Other Non Current Liabilities 289.4 1071.6 1104.0 1167.0 1188.0 Capital Expenditure -2254.3 121.5 -300.0 5728.9 -300.0

Total Liabilities 76599.5 69725.8 63876.2 60046.7 57514.6 Other Investment Activities -7.3 -1017.7 -55.6 -3040.0 -11.8

Gross Block 84142.8 86131.5 86431.5 89416.6 89716.6 Cash Flow from Investing-2261.6 -896.1 -355.6 2688.9 -311.8

Less: Acc. Depreciation 22930.0 23942.0 29404.5 32026.4 37687.5 Changes in Share Capital 0.0 0.0 0.0 0.0 0.0

Net Block 61212.7 62189.5 57027.1 57390.2 52029.1 Changes in Borrowings 923.0 -4172.5 -4200.3 -4453.5 -2845.0

Capital Work in Progress 11826.8 9716.2 9716.2 1002.2 1002.2 Dividend and Interest -3594.9 2453.7 2924.9 3082.1 2373.0

Non Current Investments 4217.2 3742.1 3613.4 3490.0 3371.6 Cash Flow from Financin-g2671.9 -1718.8 -1275.4 -1371.4 -472.0

Net Current Assets -3862.1 -7938.1 -8496.5 -3851.7 -904.3 Net Change in Cash -601.5 -143.2 144.4 3006.8 681.0

Long term Loans & Advances3204.9 2016.1 2016.1 2016.1 2016.1 Opening Cash Balance 1221.9 620.0 477.2 621.6 3628.4

Total Assets 76599.5 69725.8 63876.2 60046.7 57514.6 Closing Cash Balance 620.4 477.2 621.6 3628.4 4309.4

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Disclosures and Disclaimer
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Ventura Securities Limited
Corporate Office: C-112/116, Bldg No. 1, Kailash Industrial Complex, Park Site, Vikhroli (W), Mumbai – 400079

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