October 11, 2007 1 Quarterly Preview

CEMENT

Cautious optimism...

We maintain a cautiously positive stance on cement sector. While

Analyst: cement companies would have some maneuverability to raise prices
Rajan Kumar post monsoon due to demand supply mismatch and virtual
+91 22 30286392 withdrawal of most of the price control measures against the
rajan@nsbl.co.in industry, possible delays in the execution of the announced projects
would extend the cement cycle to FY09 end. Besides for bulk buyers
Reco* Imports are still not a lucrative proposition on account of logistic
constraints, rising international sea freight, rising international
ACC Neutral
CMP: 1180 1100.0 cement prices. On the other hand, sharp increase in international
coal prices and sea freight could be a concern for companies
Ambuja Cement Neutral dependent on coal import. Besides the government’s policy of limiting
CMP: 148 148.0
coal linkages to power and fertilizer sector poses another medium
Ultratech Cement Buy term risk to the sector.
CMP: 1050 1300.0
For the July-August, All India Cement production and dispatches
Grasim Industries Ltd. Accu were up by 13.36% and 13.17% to 26.2 and 25.99 million tons.
CMP: 3615 3968.0
While the domestic consumption was up 16.6% to 25.52 million MT
Shree Cement Buy exports were down 29% to 6.4 million tons. Domestic Production
CMP: 1592 1900.0 and consumption was led by western zone (21.3% and 37% to 4.07
India Cement Accu and 4.62 MT), Northern zone (18.5% and 14.7% to 5.7 and 5.2 MT)
CMP: 281 320.0 South (9.1 and 10.3 to 9.02 and 8.2) Central (7.9% and 18.4 to 3.93
and 3.83) and East (16.8 and 9.3 to 3.4 and 3.8 MT).
* Target for FY09E
During the quarter the all India prices were up Rs 3-5 per bag
across region except for south where average price rise were to the
tune of Rs 9-10 per bag. All India prices are up 10% yoy and 3.3%
QoQ, with south India showing highest increase of 17% and 7% on
150 YoY and QoQ basis respectively.
140
130
120
On the cost front the there has been a significant rise in International
110 Coal Price / petcoke price and Sea Freight which is expected to put
cost pressure on the India cement (70% dependence on imported
100
90
80
coal), Gujarat Ambuja and Ultratech (30% dependence on imported
16-Jul

23-Jul

30-Jul
2-Jul

9-Jul

13-Aug

20-Aug

27-Aug

10-Sep

17-Sep

24-Sep
6-Aug

3-Sep

coal). Grasim (40% petcoke) and Shree Cement (100% petcoke).

Result Highlights Q2FY08 : Net sales (for six cement companies in
BSE_SENSEX ACC Ambuja Grasim
Ultratech Shree India

our coverage) is expected to grow by 26.3% yoy led by 11.5% yoy

Quarterly Estimates

Particulars Net Sales Operating Profit Net Profit Valuation FY08/CY07

Rs. Mn JAS 08 % YoY JAS 08 % YoY JAS 08 % YoY EPS (Rs) PE EV/EBIDTA EV/Ton
ACC 17016.2 23.9 5317.2 45.3 3432.0 52.8 77.4 15.2 9.8 228.9
Ambuja Cement 12776.9 29.8 4598.3 29.3 3158.8 29.1 10.5 14.1 8.6 310.8
Ultratech 11860.0 20.5 3689.5 45.0 2058.3 61.5 83.5 12.5 8.4 219/170.0*
Grassim 38197.6 20.0 11877.0 41.2 6084.6 45.5 278.8 13.0 7.3 230.33/160*
Shree Cement 4522.2 43.1 1817.2 27.4 762.1 -11.0 127.5 12.5 6.4 147.1
India Cement 7685.0 48.8 2915.4 68.9 1814.0 54.6 26.3 10.7 7.7 195.5

* based on expanded capacity

October 11, 2007 2 Quarterly Preview

 increase in average cement realization and 7.49% growth in cement
volume. EBIDTA growth of 41.2% and PAT growth of 39.9% for
Q2FY08.
Valuation and View: While there could be positive upsides in the
earning from the increase in cement prices post monsoon, the key
determining factor for valuation of cement sector would be actual
comissioning of new capacities during Q1-Q3 FY09. The cement
stocks are trading at an average PE of 12.9X and EV/EBIDTA of 8.33
X FY08 earning and looks attractive compared to Sensex.
We prefer Grasim and Ultratech Cements among frontline and India
cements and Shree Cements among Mid caps.

Performance of Sensex Vs Cement Sector during Q2FY08

October 11, 2007 3 Quarterly Preview

ACC Ltd. - Neutral (CMP Rs.1180)
Highlights for the quarter
➚ ACC posted a production and despatch growth of 15% and 14.4% y-o-y for the month of July-Sept 07.
We expect the company to post 23.9% growth in net sales to Rs.17 billion on the back of 12.2% y-o-y
growth in realizations and 14.4% increase in volumes. We have assumed a price realization of Rs.3426
per ton for Q3CY07 which is Rs 50 per tone more than Q2CY07. We have factored in an assumption of
Rs 50 hike in Q4CY08 and revised our price assumption for CY08 to Rs 3400 from Rs3264.
➚ We expect ACC to post a 45% y-o-y growth in EBIDTA and 52% growth in earnings for the quarter.
EBIDTA margin is expected to expand by 460 basis point to 31.2%.
➚ While PBT is estimated to rise by 56% to Rs.4.9 billion, we expect ACC to post growth of 52.8% YoY in
Adj Net profit to Rs.3.43 bn as against Rs.2.24 bn during Q3CY06.
➚ Because of company’s higher dependence on linkage coal ACC would be possibly more hit among
cement pack in case proposal to reduce the coal linkage see the light of the day. In light of change of
price assumption, We revise our CY 07 and CY08 EPS estimate by 1.8 and 12 % to 77.4 and 77.36.

Valuation
At 1180, ACC trades at a P/E of 15.2x and 15.25x its CY07E and CY08E earnings and 9.8x and 9.8x CY07E and
CY08E EV/ EBIDTA. On EV/ton basis, ACC trades at $229/ton of its CY07 expanded capacity of 23 million ton.
We view the valuation to be on demanding and have a “NEUTRAL” view on the stock with one year price
target of Rs.1100 valuing the stock at 14.2xCY08E earning and 9.1xCY08E EV/EBIDTA.

Financials (Rs.mn)
Q3CY07E Q3CY06 Q2CY07 CY06A CY07E CY08E
Cement Sale 4.76 4.16 5.32 18.62 20.21 21.62
Realization 3426.0 3132.7 3376.1 2965.6 3400.3 3400.0
Revenue 17016.2 13735.1 18679.5 58034.8 71399.2 77015.1
% Change (YoY) 23.9 27.8
Operating Expenses 11699.0 10075.1 13235.5 41799.8 49301.5 55073.8
EBIDTA 5317.2 3660.0 5444.0 16235.0 22097.6 21941.3
% Change (YoY) 45.3 19.5
EBIDTA Margin (%) 31.2 26.6 29.1 15.1 14.5 24.3
EBIDTA /ton 1117.1 1022.7 1022.7 871.9 1093.4 1014.6
Interest -22.7 144.1 -22.7 520.3 -28.2 -140.0
Depreciation 720.9 592.8 633.4 2542.5 2696.4 3005.7
Other Income 283.9 216.9 283.0 1328.8 1134.7 1300.0
PBT 4902.9 3140.0 5116.3 14501.0 20564.1 20375.6
Extra Ord Items 0.0 0.0 0.0 1696.8 199.0 0.0
Tax 1470.9 894.3 1603.9 3876.6 6087.8 5908.9
% of PBT 30.0 28.5 31.3 26.7 29.6 29.0
Rep Net Profit 3432.0 2245.7 3512.4 12321.2 14675.4 14466.7
Adj Net Profit 3432.0 2245.7 3512.4 10624.4 14476.4 14466.7
Margin 20.2 16.4 18.8 18.3 20.3 18.8
% Change (YoY) 52.8 36.3 -0.1
Equity 1872.0 1869.0 1872.0 1847.2 1872.0 1872.0
EPS 18.3 12.0 18.8 56.81 77.41 77.36
P/E 19.4 14.2 14.2
EV/EBIDTA 12.8 9.1 9.1
EV/Ton 254.4 213.0 200.7
ROCE 38.5 44.2 39.3
ROE 39.2 34.8 27.7

October 11, 2007 4 Quarterly Preview

Ambuja Cement Ltd. - Neutral (CMP Rs.148)
Highlights for the quarter
➚ Ambuja Cement has shown a muted volume growth of 6.4% yoy in Q3CY07. The company saw a
disruption in production at it Gujarat plant during September.
➚ We estimate Ambuja Cement sales to grow by 29% y-o-y on the back of 19% volume growth and 8.8%
realization growth. EBIDTA is expected to grow by 29.3% to Rs.4.59 billion with margin maintained at
36%. The figures are not comparable as it includes the impact of consolidation of ACEL.
➚ We estimate PBT to grow by 35.8% to Rs.4.39 billion while higher provisioning of tax would lead to net
profit growth being curtailed at 29 % to 3.15 billion.
➚ Rise in price of imported coal prices to put further cost pressure going ahead but Rs appreciation to
have neutral impact on account of natural hedge of cement export.
➚ Holcim further acquired 3.94% stake in Ambuja Cements from the original promoter group at Rs154/
share, crossing 5% limit for creeping acquisition which triggered a mandatory open offer for 20% stake.
Consequently, Holcim is making an open offer for 20% stake at Rs154/share

Valuation
At Rs.148, the stock is trading at P/E of 14.2X and 14.8X its CY07 and CY08 earnings and EV/EBIDTA of 8.6x and
8.9x for CY07 and CY08. On EV per ton basis it trades at $300 per ton and $219 per tons of CY07 and CY08 end
capacity. We believe the stock is richly valued and maintain “NEUTRAL” view on the stock with one year price
target of 148. At our price target the stock would be valued at 14.8 times CY08E earnings and 8.9X CY08 EV/
EBIDTA.

Financials (Rs.mn)
Q3CY07E Q5FY06 Q2CY07 CY06A CY07E CY08E
Cement Sale 3.8 3.2 4.4 22.6 17.1 18.6
Revenue 12776.9 9841.4 14643.6 62682.9 56993.9 61882.8
% Change (YoY) 29.8 140.6 -9.1 8.6
Realization 3336.0 3065.9 3335.7 2775.5 3340.0 3336.0
Operating Expenses 8178.6 6285.2 9190.5 41352.0 34463.2 39908.7
EBIDTA 4598.3 3556.2 5453.1 21330.9 22530.7 21974.1
% Change (YoY) 29.3 194.6 5.6 -2.5
EBIDTA Margin (%) 36.0 36.1 37.2 34.0 39.5 35.5
EBIDTA/Ton 1200.6 1107.9 1242.2 944.5 1320.4 1184.6
Interest -100.6 85.1 -210.6 790.3 -442.4 -738.8
Depreciation 64.0 50.0 58.3 326.1 248.3 284.7
Other Income 328.3 258.0 486.7 1136.6 1352.3 850.0
PBT 4387.2 3229.6 5567.4 18416.0 21842.4 20716.0
% Change (YoY) 35.8
Tax 1228.4 783.0 1522.7 3383.5 5930.5 5593.3
EO 0 420.18 714.68
R PAT 3158.81 4455.88 16626.63
Adj Net Profit 3158.8 2446.6 4035.7 15032.5 15912.0 15122.7
% Change (YoY) 29.1 5.9 -5.0
% Change (QoQ) -21.7
Equity 3033.0 2708.8 3033.0 3033.0 3033.0 3033.0
EPS 2.3 1.8 3.0 9.9 10.5 10.0
P/E 14.7 14.1 14.8
EV/EBIDTA 9.7 8.6 8.9
EV/Ton 298.5 283.2 205.5
ROCE 25.4 31.9 25.8
ROE 28.7 30.8 24.0

October 11, 2007 5 Quarterly Preview

Ultratech Cement - Buy (CMP Rs 1050)
Highlights for the quarter
➚ Ultratech combine sale in terms of (Cement+ Clinker) is expected to be growing by 4.6% to 3.8 million
tons on the quarter ended Sept 07.While Cement sale(Domestic and exports) is expected to see a growth
of 17%,clinker sale is expected to decline by 60% to 2.36.
➚ We estimate Ultra tech’s Sale to grow by 20.5% y-o-y on the back of 4.6% volume growth and 15.6 %
realization growth. EBIDTA is expected to grow by 45% to Rs.3.68 billion with margin expanding by
480 basis point to 31.1%.
➚ We estimate PBT to grow by 62% to Rs.2.87 billion while net profit is expected to grow by 61% to 2.05
billion.
➚ In light of significant rise in prices of southern market we have revised our price assumption for
Ultratech Cement by 4% and 10% to Rs3093 and Rs3138 for FY08 and FY08 leading to upward revision
in EPS by 8.2 and 13% to Rs 83 and 100 respectively.
➚ The Company is expanding its capacity by 4.9 million MT and adding 225 MW power plant which
would result in substantial savings in power cost.

Valuation
AAt 1050 the stock trades at 12.5X and 10.4 X its FY08E and FY09E earnings and EV/EBIDTA of 8.4x and 6.6x
for FY08 and FY09. On EV per ton basis it trades at $212 (170 on expanded capacity) and $167 per ton of FY
08 and FY09 end capacity. We view Ultratech cement to be attractively valued in light of volume expansion,
cost saving, high leverage of it’s earning to rising price scenario and recommend “BUY” with a price target
of Rs 1300. At our price target the stock would be valued at 12.8 times FY08E earnings and 8X FY09 EV/
EBIDTA.

Financials (Rs.mn)
Q2FY08E Q2FY07 Q1FY08 FY07A FY08E FY09E
Cement Sale 3.8 3.6 4.4 17.1 17.5 20.4
Realization 3,140.9 2,715.7 3,051.2 2,899.2 3,093.7 3,138.9
Revenue 11,860.0 10,045.4 13,652.7 49,687.0 61,640.0 73,955.0
% Change (YoY) 20.5 24.1 20.0
Operating Expenses 8,170.5 7,500.5 9,317.4 35,370.9 43,334.5 51,336.2
EBIDTA 3,689.5 2,544.9 4,335.3 14,316.1 18,305.5 22,618.8
% Change (YoY) 45.0 27.9 23.6
EBIDTA Margin (%) 31.1 25.3 31.8 28.8 29.7 30.6
EBIDTA /ton 977.1 705.0 978.6 835.3 1,028.9 1,090.5
Interest 201.5 237.4 201.5 868.3 1,020.0 1,110.0
Depreciation 558.6 547.4 558.6 2,286.6 2,468.8 3,376.2
Other Income 120.0 119.0 268.9 592.2 700.0 600.0
PBT 3,049.4 1,879.1 3,844.1 1,175.3 1,551.7 1,873.3
Tax 991.0 604.7 1,250.3 3,886.8 5,120.5 6,181.8
Rep Net Profit 2,058.3 1,274.4 2,593.8 7,866.6 10,396.2 12,550.8
Margin 17.4 12.7 19.0 15.8 16.9 17.0
% Change (YoY) 61.5 32.2 20.7
Equity 1243.9 1243.9 1243.9 1244.9 1244.9 1244.9
EPS 16.55 10.25 20.85 63.2 83.5 100.8
P/E 16.6 12.5 10.4
EV/EBIDTA 10.2 8.4 6.6
EV/Ton 210.2 212.8 167.3
ROCE 37.4 32.6 33.5
ROE 56.0 46.5 38.3

October 11, 2007 6 Quarterly Preview

Grasim Industries Ltd. - Accumulate (CMP Rs 3615)
Highlights for the quarter
➚ Grasim Industries is expected to show strong performance on back of continued momentum in its cement and
VSF Business. We expect Grasim Industries to post a 20% Y-o-Y growth in revenue and 41.1% Y-o-Y growth in
EBIDTA with margins improving by 467 basis point to 31.1% on a consolidated basis.
➚ On the back of 7.5% growth in cement dispatches (Standalone) and 11% growth in realization, we expect
Grasim’s cement division to post a 19% y-o-y growth in revenue to 11.37 billion. PBIDT is likely to be up by 140
basis points to 34.5%.
➚ VSF business is expected to show a 22% growth in revenues to Rs 6.83 Bn on the back of 6% growth in volume
and 16% higher realization. EBIDTA is expected to be higher by 44.8% to 2.52 bn with margins improving by
580 basis points to 36.9%.
➚ Chemical Business is expected to show improved performance (46% volume growth and a margin improvement
of 20PP to 32%) on account of low base effect as production was impacted last year due to breakdown in
captive power plant, Firm Scrap price to translate into improved performance for Sponge Iron business with
(45% revenue growth and PBIDT increasing 5 times to Rs.284 million as against Rs.54 million last year.
➚ Backed by strong Ultratech performance, Grasim Industries is expected to report a 45.5% yoy growth in net
profit to Rs.6.62 billion.

Valuation
At Rs.3615, Grasim Industries trades at a P/E of 13 and 12.1 X FY08E and FY09 E earning and EV of 7.4X and 6.2 X
FY08E and FY09 E EBIDTA and at EV/Ton of $230($159 on Expanded Capacity) and $147/Ton on FY 08 and FY09 end
capacity of 31 and 45 million MT . Compared to other cement majors, Grasim is trading at an attractive valuation
on all parameters. We remain bullish on the stock and we recommend “ACCUMULATE” with one year price target
of Rs.3968 based on sum of parts valuation.

Financials (Rs.mn)
Q2FY08E Q2FY07 Q1FY08 FY07A FY08E FY09E
Revenues 38197.6 31838.0 40628.5 141737.9 168570.8 201268.1
% Change (YoY) 20.0
Operating Expenses 26320.6 23424.0 27951.1 101294.2 116765.8 142455.9
EBIDTA 11877.0 8414.0 12677.4 40443.7 51805.0 58812.2
% Change (YoY) 41.2 28.1 13.5
EBIDTA Margin 31.1 26.4 31.2 28.5 30.7 29.2
Interest 597.5 551.0 559.6 2286.4 2780.0 3480.0
Depreciation 1594.6 1484.0 1586.5 6099.7 6564.2 9717.8
Other Income 622.0 534.0 1014.2 2456.4 2456.4 2456.4
PBT excluding ext. items 10306.9 6913.0 11545.5 34514.0 44917.2 48070.8
Extraordinary
PBT after Extraordinary 34514.0 44917.2 48070.8
Tax 3213.7 2069.0 3557.0 10920.7 14238.7 15238.4
Net Profit 7093.2 4844.0 7988.5 23593.3 30678.4 32832.4
Minority share 1008.6 661.0 1296.1 3919.0 5091.1 5534.6
less: Pre Acquisition Pro/(Loss) 0.0 0.0 0.0
RPAT 6084.6 4183.0 6692.4 19674.3 25587.3 27297.8
% Change (YoY) 45.5 30.1 6.7
APAT 6084.6 4183.0 6692.4 19674.3 25587.3 27297.8
% change YoY 45.5 30.1 6.7
Net Profit margin 15.9 13.1 16.5 13.9 15.2 13.6
Equity 918.9 918.9 917.9 917.9 917.9 916.9
EPS (Rs) 66.2 45.5 72.9 214.3 278.8 297.7
PE 16.8 13.0 12.1
EV/EBIDTA 8.7 7.3 6.2
ROCE 31.8 29.3 29.5
ROE 29.6 28.8 24.2

October 11, 2007 7 Quarterly Preview

Shree Cement - Buy (CMP Rs 1592)
Highlights for the quarter
➚ Shree cement is expected to post a 34% increase in production and despatches to 1.49 million MT on
account of ramp up of production from line IV.
➚ We estimate Shree Cement sales to grow by 43.1% y-o-y on the back of 34% volume growth and 6.5%
yoy realization growth. EBIDTA is expected to grow by 27.2% to Rs.1.81 billion with margin declining
by 500 basis point to 40.2% mainly on account of higher fuel and freight cost.
➚ Higher depreciation (up 216% due to new plant and ) and interest cost (140%) would lead to reported
PBT and PAT declining by 14% and 11% respectively to 1.01 Bn and Rs762 million.
➚ The company added another 1 million clinker capacity and 2 million grinding unit were commissioned
during September 07.
➚ In Line with our changed price assumption we are revising our EPS FY08 and FY09 estimate to Rs 127
(down 2%) and Rs 151 (up 7%).

Valuation
At 1592, Shree Cement trades at a P/E of 12.5x and 10.5x its FY08E and FY09E earnings and 6.4x and 5.4x
FY08E and FY09E EV/ EBIDTA. On EV/ton basis, Shree Cement trades at $147/ton and $136 of its FY08 and
FY09 expanded capacity of 6 and 9.5 million ton. We view the valuation to be on very reasonable compared
to the peers and recommend investors to “BUY” the stock with one year price target of Rs.1900 valuing the
stock at 12.6xFY09E earning and 6.6 xFY09E EV/EBIDTA.

Financials (Rs.mn)
Q2FY08E Q2FY07 Q1FY08 FY07A FY08E FY09E
Cement Sale 1.5 1.1 1.4 4.8 6.6 8.6
Realization 3035.0 2849.2 3035.2 2830.6 3078.3 2980.0
Net Revenue 4522.2 3159.6 4258.3 13679.8 20449.2 25720.4
% CHANGE YOY 43.1 104.9 49.5 285.2
Other Income 96.0 43.1 126.3 211.9 414.3 742.6
Operating Expenses 2705.0 1732.9 2434.1 7687.5 11852.9 16649.9
EBIDTA 1817.2 1426.7 1824.2 5992.2 8596.4 9070.5
% CHANGE YOY 27.4 160.0 43.5 293.6
Margin (%) 40.2 45.2 42.8 43.8 42.0 35.3
EBIDTA/Ton 1219.6 1286.5 1300.2 1239.9 1294.0 1050.9
Interest 65.7 27.0 39.3 103.7 236.5 339.3
Depreciation 831.6 262.9 358.0 2335.9 2727.9 2322.9
PBT after OI before EO 1015.9 1179.9 1553.2 3694.5 5976.3 7080.9
% CHANGE YOY -13.9 126.8 61.8 334.7
PBT after EO 1015.9 1179.9 1553.2 1843.9 5925.5 7030.1
Tax 253.7 323.4 378.7 124.4 1484.2 1770.2
% of PBT -21.5 27.4 24.4 6.7 25.0 25.2
PAT 762.1 856.6 1174.5 1719.5 4441.2 5259.9
Extraordinary (Exp) -1850.6
Adj Pat 762.1 856.6 1174.5 3570.0 4441.2 5259.9
% CHANGE YOY -11.0 223.1 24.4 376.1
Margin (%) 16.9 27.1 27.6 59.6 51.7 58.0
Equity 345.4 349.4 346.4 348.4 348.4 347.4
EPS 22.1 24.5 33.9 102.5 127.5 151.4
PE 15.5 12.5 10.5
EV/EBIDTA 10.0 6.4 5.5
EV/Ton 261.9 147.1 136.9
ROCE 17.9 36.0 33.5
ROE 70.9 49.4 39.3

October 11, 2007 8 Quarterly Preview

India Cement - Accumulate (CMP Rs 281)
Highlights for the quarter
➚ India cement is expected to post a 27% yoy increase in production and dispatches to 2.38 million
MT.The numbers are not comparable on like to like basis due to consolidation of Visaka Cement.
➚ We estimate India Cement sales to grow by 48% y-o-y to 7.68 bn on the back of 27% volume growth
and 17% yoy realization growth.
EBIDTA is expected to increase by 69 % to 2.9 Bn with margin expanding by 450 basis point to 37.9%
with EBIDTA/ton at Rs 1250/ton
➚ Higher depreciation and provisioning for tax as against to restrict PAT growth to 54.6%
➚ The company is expanding its capacities at its various locations through debottlenecking exercise and
brownfield expansion at Visaka plant by 2 million Mt which will take its capacity 14 million MT by
Oct 08.The average cost of capacity expansion comes at $40/ton.

Valuation
At 281, India Cement trades at a P/E of 8.8x and 7.9x its FY08E and FY09E earnings and 7.7x and 6.3x FY08E
and FY09E EV/ EBIDTA. On EV/ton basis, India Cement trades at $196/ton and $151/Ton of its FY08 and FY09
expanded capacity of 11.5 and 14 million ton. We view the valuation to be on in line compared to the peers
and recommend investors to “ACCUMULATE” the stock with one year price target of Rs.320 valuing the
stock at 10.9xFY09E earning and 7 xFY09E EV/EBIDTA.

Financials (Rs.mn)
Q2FY08E Q2FY07 Q1FY08 FY07A FY08E FY09E
Cement Sales Million MT 2.38 1.87 2.31 8.43 9.60 12.00
Net Revenue 7685.0 5163.5 7013.6 22552.1 30996.5 38760.0
% CHANGE YOY 48.8
Operating Expenses 4769.6 3437.8 4368.6 15209.5 19241.8 24914.4
Realization Per Ton (Rs) 3229.0 2754.0 3041.5 2674.6 3228.8 3230.0
EBIDTA 2915.4 1725.7 2645.0 7342.6 11754.7 13845.6
% CHANGE YOY 68.9 60.1 17.8
Margin (%) 37.9 33.4 37.7 32.6 37.9 35.7
EBIDTA/Ton (Rs/ton) 1225.0 920.4 1147.0 870.8 1224.5 1153.8
Interest 355.0 364.2 314.0 1498.0 1623.0 1255.8
Depreciation 274.8 192.6 274.8 1026.3 1185.5 1390.5
PBT 2285.6 1168.9 2056.2 4818.3 8946.3 11199.4
% CHANGE YOY 95.5
Other Income 30.0 8.3 97.3 101.3 167.3 200.0
PBT After Other Income 2315.6 1177.2 2153.5 4919.6 9113.6 11399.4
Tax 501.7 4.0 300.0 114.3 2268.2 3761.8
% of PBT 21.7 0.3 13.9 2.3 24.9 33.0
PAT 1814.0 1173.2 1853.5 4805.3 6845.4 7637.6
% CHANGE YOY 54.6
Margin (%) 23.6 22.7 26.4 21.3 22.1 19.7
Equity 2603.7 2203.7 2603.7 2603.7 2603.7 2603.7
EPS 7.0 5.3 7.1 18.5 26.3 29.3
P/E 12.9 10.7 9.6
EV/EBIDTA 12.3 7.7 6.2
EV/Ton 233.8 195.5 151.5
ROCE 17.9 26.5 27.9
ROE 33.6 36.1 30.9

October 11, 2007 9 Quarterly Preview

 Networth Research: E-mail- research@nsbl.co.in
Research Sector E-mail id Telephone nos.
Huzaifa Suratwala Auto / Banks / Shipping / Logistics huzaifa.s@nsbl.co.in 022-30286389
Rishi Maheshwari Information Technology rishi@nsbl.co.in 022-30286389
Rajan Kumar Cement / Pharmaceuticals rajan@nsbl.co.in 022-30286389
Rati Pandit Hotels / Aviation rati@nsbl.co.in 022-30286389
Brijesh Rajvanshi Telecom / Media brijesh@nsbl.co.in 022-30286389
Vishal Sanghavi Textiles vishalsanghavi@nsbl.co.in 022-30286389
Surya N. Nayak Mid Caps suryanarayan@nsbl.co.in 022-30286389
Ashwani Sharma Power / Power Equipments ashwanisharma@nsbl.co.in 022-30286389
Deepak Kumar KS Associate ksdeepakkumar@nsbl.co.in 022-30286389
Rabindra Basu Associate rabindrabasu@nsbl.co.in 022-30286389
Shruti Bhargava Associate shrutibhargava@nsbl.co.in 022-30286389
Shashin Shah Mid Caps sdshah@networthstock.com
Amar More Production amar@nsbl.co.in 022-30286389

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Raj Bhandari / Rameshwar Singh 022-22633020/1/2

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October 11, 2007 10 Quarterly Preview