Simplex Infra

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					                                                                                                3QFY2012 Result Update | Infrastructure
                                                                                                                             February 14, 2012



 Simplex Infrastructures                                                                          BUY
                                                                                                  CMP                                      `200
 Performance Highlights                                                                           Target Price                             `261
 Y/E March (` cr)               3QFY12      3QFY11        2QFY12    % chg (yoy)   % chg (qoq)     Investment Period                12 Months
 Net sales                      1,594.3     1,166.7       1,322.0         36.7          20.6
                                                                                                   Stock Info
 Operating profit                127.4        107.6        119.0          18.4           7.0
                                                                                                   Sector                           Infrastructure
 Net profit                       18.0             23.2     17.9         (22.3)          0.9
                                                                                                   Market Cap (` cr)                          988
 Source: Company, Angel Research
                                                                                                   Beta                                        0.4
 For 3QFY2012, Simplex Infra’s (Simplex) numbers came above our and street’s                       52 Week High / Low                      366/157
 expectations on the revenue and earnings front and marginally lower at the                        Avg. Daily Volume                        3,615
 EBITDAM level. At the end of the quarter, the company’s order book stood at                       Face Value (`)                               2
 `14,442cr (2.9x FY2011 revenue). Order inflow for the quarter stood at                            BSE Sensex                               17,849
 `1,018cr, with the company having L1 orders worth `2,565cr. We are revising                       Nifty                                     5,416
 our estimates for FY2012 and FY2013 upwards owing to better-than-expected
                                                                                                   Reuters Code                            SINF.BO
 performance during the quarter. We maintain our Buy view on the stock.
                                                                                                   Bloomberg Code                          SINF@IN
 Healthy set of numbers: On the top-line front, Simplex reported robust growth of
 36.7% yoy to `1,594cr, higher than our estimate of `1,348cr (consensus
                                                                                                   Shareholding Pattern (%)
 `1,145cr). This performance was on account of 40% and 15% yoy growth in the
                                                                                                   Promoters                                 55.0
 domestic and overseas segments, respectively. EBITDAM dipped by 120bp yoy to
                                                                                                   MF / Banks / Indian Fls                   25.2
 8.0% for the quarter, marginally lower than our estimate of 8.6%. Interest cost
 came in at `55.0cr, reporting a jump of 52.0% yoy/7.6% qoq and in-line with                       FII / NRIs / OCBs                         14.7

 our estimate of `54.3cr. PAT declined by 22.3% yoy to `18.0cr, above our                          Indian Public / Others                     5.2

 estimate of `13.6cr. Better-than-expected bottom-line performance was due to
 robust revenue growth during the quarter.
                                                                                                   Abs. (%)                  3m     1yr        3yr
 Outlook and valuation: Prior to 2QFY2012, Simplex’s performance was affected                      Sensex                   4.3    (1.9)     91.8
 by slowdown on the execution front, stretched working capital and subdued                         Simplex                  (1.4) (40.4)     33.2
 order inflow. However, in the past two quarters, Simplex’s performance has
 improved, with execution and order inflow picking up along with improvement
 on the working capital front (during 3QFY2012). Hence, we have revised our
 estimates upwards for FY2012 and FY2013. Our revised target price for the
 stock is `261 (`233), based on 9x FY2013E earnings, implying an upside of
 30.9%. Hence, we recommend Buy on the stock.

 Key financials (Consolidated)
  Y/E March (` cr)                    FY2010              FY2011      FY2012E       FY2013E
  Net Sales (incl op. income)             4,564            4,889         5,961        6,732
  % chg                                    (3.1)             7.1          21.9          12.9
  Adj. Net Profit                         127.1            106.7         119.0        144.3
  % chg                                     9.2            (16.1)         11.5          21.3
  FDEPS (`)                                25.6             21.5          24.0          29.1
  EBITDA Margin (%)                        10.0              9.8           9.4           9.5
                                                                                                 Shailesh Kanani
  P/E (x)                                   7.8              9.3           8.3           6.9
                                                                                                 022-39357800 Ext: 6829
  RoAE (%)                                 13.5             10.3          10.4          11.4
                                                                                                 shailesh.kanani@angelbroking.com
  RoACE (%)                                13.0             11.8          11.6          11.9
  P/BV (x)                                  1.0              0.9           0.8           0.7     Nitin Arora
  EV/Sales (x)                              0.5              0.5           0.5           0.4     022-39357800 Ext: 6842
  EV/EBITDA (x)                             4.8              5.3           5.6           4.7     nitin.arora@angelbroking.com
  Source: Company, Angel Research

Please refer to important disclosures at the end of this report                                                                                 1
                                                                                        Simplex Infra | 3QFY2012 Result Update




Exhibit 1: Quarterly performance (Standalone)
Y/E March (` cr)                  3QFY12        3QFY11       2QFY12     % chg (yoy)      % chg (qoq)     9MFY12        9MFY11       % chg
Net Sales                           1,594            1,167    1,322             36.7           20.6          4,177         3,395       6.9
Total Expenditure                   1,467            1,059    1,203             38.5           21.9          3,811         3,062       7.0
Operating Profit                     127              108       119             18.4            7.0           367           333        5.9
OPM (%)                               8.0              9.2      9.0           (120)bp       (100)bp             9            10 (100)bp
Interest                              55                36       51             52.0            7.6           156            94      17.9
Depreciation                          49                40       44             20.9           10.2           135           119        5.7
Non Operating Income                   3                3         2             (2.0)          38.9            13              7     31.7
Nonrecurring items                      -                -         -                -              -             -             -         -
Profit Before tax                     27                34       26            (22.0)           3.1            88           128        0.8
Tax                                    9                11        8            (21.4)           8.1            28            41        4.0
Net Profit before MI                  18                23       18            (22.3)           0.9            60            86      (1.1)
PAT (%)                               1.1              2.0      1.4                 -              -           1.4           2.5         -
Minority Interest (MI)                  -                -         -                -              -             -             -         -
Net Profit after MI                   18                23       18            (22.3)           0.9            60            86      (1.5)
Adj. PAT (%)                          1.1              2.0      1.4                 -              -           1.4           2.5         -
Adj. FDEPS                            3.6              4.7      3.6            (22.3)           0.9           12.1          17.4     (1.5)
Source: Company, Angel Research


                                        Exhibit 2: 3QFY2012 Actual vs. Estimates
                                            (` cr)                                             Estimates       Actual         Variation (%)
                                            Net Sales                                           1,348.4       1594.3                  18.2
                                            EBITDA                                                116.4         127.4                  9.4
                                            EBITDAM (%)                                                8.6           8.0            (60)bp
                                            Interest and Financial Charges                         54.3          55.0                  1.3
                                            PAT                                                    13.6          18.0                 32.7
                                            Source: Company, Angel Research


                                        Robust top-line growth

                                        On the top-line front, Simplex reported robust growth of 36.7% yoy to `1,594cr,
                                        higher than our estimate of `1,348cr (consensus `1,145cr). This better-than-
                                        expected performance was on account of 40% and 15% yoy growth in the
                                        domestic and overseas segments, respectively. At the end of the quarter, the
                                        company’s order book stood at `14,442cr (2.9x FY2011 revenue). Order inflow
                                        for the quarter stood at `1,018cr, down 47.8% qoq and 52.2% yoy. As per
                                        management, the infrastructure, building and power segments have witnessed
                                        good order inflow activity, whereas the industrial segment has seen poor order
                                        awarding activity. Further, for FY2012, management expects to achieve order
                                        inflow of ~`7,000cr (`6,000cr already achieved) and accordingly we are factoring
                                        in order inflow of `7,696cr and `8,194cr for FY2012 and FY2013, respectively.




February 14, 2012                                                                                                                         2
                                                                                                                                                                                                                    Simplex Infra | 3QFY2012 Result Update




Exhibit 3: Robust top-line growth                                                                                                                                       Exhibit 4: Composition of revenue (3QFY2012, ` cr)
1,800               79.5                                                                                                                                       100.0 
        74.1 
1,600                                                                                                                                                          80.0 
1,400
                                44.8                                                                                                                           60.0 
1,200                                                                                                                                                36.7 
1,000                                                                                                                                      25.7                40.0 
                                           11.1                                                              9.4  9.2  7.1 
 800                                                  5.1                              4.1  (0.5)                                                              20.0 
 600                                                                        (9.6)
                                                               (15.9)                                                                                          0.0 
 400
 200                                                                                                                                                           (20.0)
   0                                                                                                                                                           (40.0)
        2QFY09

                    3QFY09

                                4QFY09

                                           1QFY10

                                                      2QFY10

                                                                 3QFY10

                                                                            4QFY10

                                                                                       1QFY11

                                                                                                  2QFY11

                                                                                                             3QFY11

                                                                                                                       4QFY11

                                                                                                                                 1QFY12

                                                                                                                                           2QFY12

                                                                                                                                                     3QFY12
                                  Sales (` cr, LHS)                                                  Growth (yoy %, RHS)

Source: Company, Angel Research                                                                                                                                         Source: Company, Angel Research



                                                                                                                                 Lower EBITDAM and interest burden mar earnings growth

                                                                                                                                 The company’s EBITDAM dipped by 120bp yoy to 8.0% for the quarter, marginally
                                                                                                                                 lower than our estimate of 8.6%. EBITDAM was lower on account of initial start-up
                                                                                                                                 cost incurred in few projects and owing to foreign exchange loss (`3.3cr). Interest
                                                                                                                                 cost came in at `55.0cr, growth of 52.0% yoy/7.6% qoq and in-line with our
                                                                                                                                 estimate of `54.3cr. PAT declined by 22.3% yoy to `18.0cr, above our estimate of
                                                                                                                                 `13.6cr. Better-than-expected bottom-line performance was due to robust revenue
                                                                                                                                 growth during the quarter.


Exhibit 5: EBITDAM takes a hit                                                                                                                                          Exhibit 6: PATM falls due to lower EBITDAM and higher int. cost
160.0                                       10.3 10.4                        10.3 10.2 10.1                                                                    12.0     50.0                                                          3.5                                                                     4.0 
          9.9                                                     9.6                                                  10.0
                      9.1                                                                                     9.2                9.5
140.0                                                                                                                                       9.0                                                                                                3.1                                                            3.5 
                                                                                                                                                               10.0             3.0 
                                  8.1                                                                                                                8.0                40.0                                        2.8                                                   2.7 
120.0                                                                                                                                                                                                      2.5               2.5                        2.6                                                   3.0 
                                                                                                                                                               8.0
100.0                                                                                                                                                                                             2.2                                                                                                         2.5 
                                                                                                                                                                        30.0             2.0                                                                     2.0               1.9 
 80.0                                                                                                                                                          6.0
                                                                                                                                                                                                                                                                                                              2.0 
 60.0                                                                                                                                                                                                                                                                                       1.4 
                                                                                                                                                               4.0      20.0                                                                                                                         1.1      1.5 
 40.0
                                                                                                                                                               2.0                                                                                                                                            1.0 
 20.0                                                                                                                                                                   10.0 
                                                                                                                                                                                                                                                                                                              0.5 
  0.0                                                                                                                                                          0.0
                                                                                                                                                                         0.0                                                                                                                                  0.0 
           2QFY09

                       3QFY09

                                  4QFY09

                                             1QFY10

                                                        2QFY10

                                                                   3QFY10

                                                                              4QFY10

                                                                                         1QFY11

                                                                                                   2QFY11

                                                                                                              3QFY11

                                                                                                                        4QFY11

                                                                                                                                  1QFY12

                                                                                                                                            2QFY12

                                                                                                                                                      3QFY12




                                                                                                                                                                                2QFY09

                                                                                                                                                                                         3QFY09

                                                                                                                                                                                                  4QFY09

                                                                                                                                                                                                           1QFY10

                                                                                                                                                                                                                    2QFY10

                                                                                                                                                                                                                             3QFY10

                                                                                                                                                                                                                                      4QFY10

                                                                                                                                                                                                                                               1QFY11

                                                                                                                                                                                                                                                        2QFY11

                                                                                                                                                                                                                                                                 3QFY11

                                                                                                                                                                                                                                                                          4QFY11

                                                                                                                                                                                                                                                                                   1QFY12

                                                                                                                                                                                                                                                                                            2QFY12

                                                                                                                                                                                                                                                                                                     3QFY12




                                   EBITDA (`cr, LHS)                                                        EBITDAM (%, RHS)                                                                                PAT (` cr, LHS)                                  PATM (%, RHS)

Source: Company, Angel Research                                                                                                                                         Source: Company, Angel Research


                                                                                                                                 Order book analysis

                                                                                                                                 Simplex reported order inflow of `1,018cr for the quarter, down 47.8% qoq and
                                                                                                                                 52.2% yoy. The company is L1 for orders worth `2,565cr. Therefore, the
                                                                                                                                 company’s order book stands at `14,442cr, 1.8% below that in FY2011 ending.
                                                                                                                                 However, going forward, the company’s order book position is set to improve,
                                                                                                                                 as order awarding activity picks up (Simplex has already bagged `2,094cr worth
                                                                                                                                 of projects in January and February 2012). The company’s order book comprises
                                                                                                                                 88% domestic and 12% overseas orders. Client mix for the quarter stands at ~63%
                                                                                                                                 for private sector orders and ~28% for government sector orders, and the balance
                                                                                                                                 from the PPP side.



February 14, 2012                                                                                                                                                                                                                                                                                               3
                                                                                                                                                                                                            Simplex Infra | 3QFY2012 Result Update




Exhibit 7: Order inflow for 3QFY12 – Segment wise (%)                                                         Exhibit 8: Order backlog – Segment wise (%)




Source: Company, Angel Research                                                                                 Source: Company, Angel Research


                                        Outlook and valuation

                                        Prior to 2QFY2012, Simplex’s performance was affected by slowdown the on
                                        execution front, stretched working capital and subdued order inflow. However, in
                                        the past two quarters, Simplex’s performance has improved, with execution and
                                        order inflow picking up along with improvement on the working capital front
                                        (during 3QFY2012). Hence, we have revised our estimates upwards for FY2012
                                        and FY2013. Our revised target price for the stock is `261 (`233), based on 9x
                                        FY2013E earnings, implying an upside of 30.9%. Hence, we recommend Buy on
                                        the stock.

                                        Exhibit 9: Historical one-year forward PE band
                                        45
                                        40
                                        35
                                        30
                                        25
                                        20
                                        15
                                        10
                                         5
                                         0
                                             14-Feb-05




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                                                                     14-Aug-05




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                                                                                                                                                                                                                                                                                                                                                                     14-Aug-11
                                                                                 14-Nov-05




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                                                                                                                     P/E                                         7YEAR AVG                                                            5YEAR AVG                                                            3YEAR AVG

                                        Source: Company, Angel Research




February 14, 2012                                                                                                                                                                                                                                                                                                                                                                                 4
                                                                                            Simplex Infra | 3QFY2012 Result Update




Exhibit 10: Change in estimates
                                                    FY2012E                                                    FY2013E
                                  Earlier estimates Revised estimates   Variation (%) Earlier estimates Revised estimates         Variation (%)
Revenues (` cr)                           5,561.7           5,960.5              7.2              6,485              6,732                 3.8
EBITDA Margins (%)                            9.4                9.4                 -                9.5                9.5                   -
PAT (` cr)                                   94.0             119.0             26.6              128.6              144.3                12.2
Source: Company, Angel Research



Exhibit 11: Key assumptions
(` cr)                                         FY2007         FY2008       FY2009        FY2010             FY2011   FY2012E         FY2013E
Order Inflow                                     2,180          6,694        5,786          5,996            8,382       7,696          8,194
Revenues                                         1,708          2,808        4,713          4,564            4,889       5,961          6,732
Order Backlog (Y/E)                              5,100          8,985      10,059         11,491            15,117    16,852           18,315
OB to Sales ratio (x)                               3.0           3.2          2.1              2.5            3.1          2.8            2.7
Source: Company, Angel Research



                                             Exhibit 12: Angel EPS forecast vs. consensus
                                                                           Angel Forecast        Bloomberg Consensus           Variation (%)
                                             FY2012E                                     24.0                        20.3                (15.3)
                                             FY2013E                                     29.1                        26.7                  (8.3)
                                             Source: Company, Angel Research



                                             Investment argument

                                             Diversified play

                                             Simplex is one of the oldest infrastructure companies in India (over eight decades
                                             of work log). Since inception, the company has been involved in the different
                                             segments of the infrastructure sector, from piling (1924) to power (1960), to roads,
                                             railways and bridges (1980), and the real estate business (2007). The company
                                             has executed ~2,400 projects and is currently involved in >150 ongoing projects
                                             in India and abroad. This indicates the company's execution capabilities, apart
                                             from qualifying it to successfully execute complex and numerous projects on time.
                                             The company is also well spread geographically, with a presence in the
                                             Middle-Eastern countries of Qatar, Oman, Dubai and Abu Dhabi and now
                                             venturing in newer territories such as Bangladesh. In terms of its client profile,
                                             Simplex has a healthy mix of government and private sector projects. This
                                             successful diversification has not only provided the company the experience of
                                             executing different and complex projects but has also qualified it to bid for bigger
                                             ticket-size projects going ahead.




February 14, 2012                                                                                                                              5
                                                                                                                Simplex Infra | 3QFY2012 Result Update




Exhibit 13: Recommendation summary
Company         CMP          TP   Rating               Top-line (` cr)                                    EPS (`)                         Adj. P/E (x)           OB/
                                             FY11     FY12E     FY13E CAGR (%)             FY11 FY12E FY13E CAGR (%)                FY11 FY12E FY13E Sales (x)
ABL             195         245     Buy      1,302    1,648     1,853           19.3       19.2    21.7       25.4          15.2    10.2        9.0       7.7     4.2
CCCL              18         17 Reduce       2,199    2,258     2,646            9.7        2.5    (1.5)       2.4          (3.6)    7.1          -       7.7     2.7
HCC               29          - Neutral      4,093    3,915     4,633            6.4        1.2    (3.1)       0.6      (25.8)      24.9          -      45.3     4.0
IRB Infra       176         182 Neutral      2,438    3,176     3,781           24.5       13.6    14.2       13.1          (2.0)   12.9       12.5      13.5       -
ITNL            211         235   Accu.      4,049    5,178     6,619           27.9       22.3    22.9       26.0           7.8     9.4        9.2       8.1     5.2
IVRCL             61          - Neutral      5,651    5,426     6,458            6.9        5.9     3.4        4.6      (11.5)      10.4       18.1      13.3     4.5
JP Assoc.         79         88   Accu. 13,832 13,763 16,017                     7.6        5.5     2.7        4.2      (12.6)      14.5       29.1      18.9       -
L&T           1,379 1,608           Buy 43,905 53,779 60,258                    17.2       54.3    63.7       70.9          14.2    25.4       21.7      19.5     3.3
Madhucon          67         77     Buy      1,816    1,952     2,503           17.4        5.6     4.4        4.7          (8.1)   12.0       15.1      14.2     3.8
NCC               62         61 Neutral      5,074    4,946     5,790            6.8        6.4     1.4        3.5      (26.1)       9.8       45.2      17.9     4.3
Patel Engg      117           - Neutral      3,476    3,573     3,609            1.9       17.6    14.9       14.8          (8.3)    6.6        7.8       7.9     2.7
Punj Lloyd        62          - Neutral      7,850 10,147 10,592                16.2       (5.4)    3.5        2.9              -         -    17.5      21.2     3.6
Sadbhav         142         157   Accu.      2,209    2,602     2,585            8.2        8.0     9.3        9.2           7.3    17.8       15.3      15.4     2.7
Simplex In.     200         261     Buy      4,889    5,961     6,732           17.3       21.5    24.0       29.1          16.3     9.3        8.3       6.9     2.9
Source: Company, Angel Research


Exhibit 14: SOTP breakup
Company                     Core Const.              Real Estate               Road BOT               Invst. In Subsidiaries                  Others            Total
                        `          % to TP      `        % to TP          `        % to TP            `              % to TP          `        % to TP              `
ABL                    104           42          -          -            141           58             -                 -             -           -              245
CCCL                   17           100          -          -             -            -              -                 -             -           -               17
HCC                     4            12         12         37            16            51             -                 -             -           -               32
IRB Infra              116           64          -          -            61            34             4                2                          -              182
ITNL                   59            25          -          -            152           65             -                 -            25          10              235
IVRCL                  37            66          -          -             -            -             19                34             -           -               56
JP Assoc.              31            35         24         27             -            -              -                 -            33          37               88
L&T                 1,276            79          -          -             -            -            332                21             -           -             1,608
Madhucon               23            30         2           3            52            68             -                 -                         -               77
NCC                    29            48         2           3            8             14             -                 -            22          35               61
Patel Engg             55            51         17         16            16            15             -                 -            19          18              106
Punj Lloyd             71           100          -          -             -            -              -                 -             -           -               71
Sadbhav                83            53          -          -            75            47             -                 -             -           -              157
Simplex In.            261          100          -          -             -            -              -                 -             -           -              261
Source: Company, Angel Research




February 14, 2012                                                                                                                                                   6
                                                                Simplex Infra | 3QFY2012 Result Update




                    Profit & loss statement (Consolidated)
                    Y/E March (` cr)                   FY2008   FY2009   FY2010    FY2011 FY2012E FY2013E
                    Net Sales                           2,808    4,696    4,552     4,875    5,947    6,718
                    Other operating income                  -      16        12        14       14      14
                    Total operating income              2,808    4,713    4,564     4,889    5,961    6,732
                    % chg                                64.4     67.8     (3.1)      7.1     21.9     12.9
                    Total Expenditure                   2,545    4,309    4,110     4,412    5,403    6,095
                    Net Raw Materials                   1,275    2,149    1,856     1,945    2,396    2,693
                    Other Mfg costs                      279      483      504        617      657     740
                    Personnel                            839     1,413    1,472     1,571    2,011    2,275
                    Other                                152      263      278        279      339     386
                    EBITDA                               264      404      454        477      557     637
                    % chg                                65.6     53.2     12.5       5.1     16.8     14.2
                    (% of Net Sales)                      9.4      8.6     10.0       9.8      9.4      9.5
                    Depreciation& Amortisation            64      132      157        167      184     206
                    EBIT                                 199      272      297        310      373     431
                    % chg                                66.0     36.4      9.2       4.6     20.2     15.6
                    (% of Net Sales)                      7.1      5.8      6.5       6.4      6.3      6.4
                    Interest & other Charges             109      151      122        148      235     255
                    Other Inc (incl pft from Ass/JV)      37       46        26        38       40      40
                    (% of PBT)                           28.8     27.5     13.0      18.8     22.2     18.5
                    Recurring PBT                        127      166      201        200      178     216
                    % chg                                81.1     30.8     20.6      (0.1)   (11.1)    21.3
                    Extraordinary Expense/(Inc.)            -      (7)         -      (18)        -       -
                    PBT (reported)                       127      173      201        218      178     216
                    Tax                                   37       49        71        92       58      70
                    (% of PBT)                           29.1     28.3     35.6      42.3     32.4     32.4
                    PAT (reported)                        90      124      129        126      120     146
                    Less: Minority interest (MI)            -      0.8      1.9       1.4      1.3      1.6
                    Prior period items                      -        -         -         -        -       -
                    PAT after MI (reported)               90      123      127        125      119     144
                    ADJ. PAT                              90      116      127        107      119     144
                    % chg                                67.7     29.3      9.2     (16.1)    11.5     21.3
                    (% of Net Sales)                      3.2      2.5      2.8       2.2      2.0      2.1
                    Basic EPS (`) (Reported)             18.2     24.9     25.6      25.1     24.0     29.1
                    Fully Diluted EPS (`) (Diluted)      18.1     23.5     25.6      21.5     24.0     29.1
                    % chg                                67.7     29.3      9.2     (16.1)    11.5     21.3




February 14, 2012                                                                                         7
                                                             Simplex Infra | 3QFY2012 Result Update




                    Balance sheet (Consolidated)
                    Y/E March (` cr)             FY2008   FY2009   FY2010   FY2011   FY2012E   FY2013E
                    SOURCES OF FUNDS
                    Equity Share Capital            10       10       10       10        10        10
                    Preference Capital                -        -        -        -         -         -
                    Reserves & Surplus             743      899      968     1,078     1,185     1,318
                    Shareholder’s Funds            753      909      978     1,088     1,195     1,328
                    Minority Interest                 -       1        5        6         6         6
                    Total Loans                    749     1,220    1,302    1,661     2,216     2,220
                    Deferred Tax Liability          37       58       88      138       138       138
                    Total Liabilities             1,540    2,189    2,374    2,893     3,555     3,693
                    APPLICATION OF FUNDS
                    Gross Block                    757     1,219    1,277    1,509     1,684     1,859
                    Less: Acc. Depreciation        127      208      289      385       495       616
                    Net Block                      629     1,011     988     1,123     1,189     1,243
                    Capital Work-in-Progress        24       14       19       27        30        33
                    Investments                     10        2        3       23        78       183
                    Current Assets                2,152    2,946    3,125    3,767     4,705     5,183
                    Inventories                    474      679      671      811      1,061     1,226
                    Sundry Debtors                1,150    1,682    1,806    2,298     2,851     2,899
                    Cash                           123      119      110      108        76       213
                    Loans & Advances               321      338      398      405       540       646
                    Other                           83      127      140      145       176       199
                    Current liabilities           1,276    1,784    1,760    2,048     2,447     2,949
                    Net Current Assets             876     1,162    1,364    1,719     2,258     2,233
                    Misc. Exp. not written off        -        -        -        -         -         -
                    Total Assets                  1,540    2,189    2,374    2,893     3,555     3,693




February 14, 2012                                                                                    8
                                                                 Simplex Infra | 3QFY2012 Result Update




                    Cash flow statement (Consolidated)
                    Y/E March (` cr)                   FY2008   FY2009   FY2010   FY2011 FY2012E FY2013E
                    Profit before tax (excluding MI)     127      173      201      217     177      214
                    Depreciation                          37       79       92       96     109      121
                    Change in Working Capital            181      358      314      357     571     (161)
                    Less: Other income                    37       46       26       38      40       40
                    Direct taxes paid                     23       30       46       16      58       70
                    Cash Flow from Operations            (76)    (181)     (93)     (97)   (382)     387
                    (Inc.)/ Dec. in Fixed Assets        (328)    (408)    (118)    (241)   (178)    (178)
                    (Inc.)/ Dec. in Investments           (5)       8       (1)     (20)    (55)    (105)
                    Other income                          37       46       26       38      40       40
                    Cash Flow from Investing            (296)    (355)     (93)    (223)   (193)    (243)
                    Issue of Equity                      429         -        -        -       -        -
                    Inc./(Dec.) in loans                  62      444      107      358     555        5
                    Dividend Paid (Incl. Tax)              8       12       12       11      12       12
                    Others                               (31)     100       82      (29)       -        -
                    Cash Flow from Financing             452      532      177      318     543       (7)
                    Inc./(Dec.) in Cash                   81       (4)      (9)      (2)    (32)     137
                    Opening Cash balances                 42      123      119      110     108       76
                    Closing Cash balances                123      119      110      108      76      213




February 14, 2012                                                                                       9
                                                              Simplex Infra | 3QFY2012 Result Update




                    Key Ratios
                    Y/E March                      FY2008   FY2009   FY2010   FY2011 FY2012E FY2013E
                    Valuation Ratio (x)
                    P/E (on FDEPS)                   11.0      8.5      7.8      9.3     8.3     6.9
                    P/CEPS                            7.8      5.1      4.5      4.9     4.3     3.7
                    P/BV                              1.3      1.1      1.0      0.9     0.8     0.7
                    Dividend yield (%)                1.0      1.0      1.0      1.0     1.0     1.0
                    EV/Sales                          0.6      0.4      0.5      0.5     0.5     0.4
                    EV/EBITDA                         6.1      5.2      4.8      5.3     5.6     4.7
                    EV / Total Assets                 1.1      1.0      0.9      0.9     0.9     0.8
                    Order Book to Sales               3.2      2.1      2.5      3.1     2.8     2.7
                    Per Share Data (`)
                    EPS (Basic)                      18.2     24.9     25.6     25.1    24.0    29.1
                    EPS (fully diluted)              18.1     23.5     25.6     21.5    24.0    29.1
                    Cash EPS                         25.6     39.3     44.2     40.9    46.0    53.4
                    DPS                               2.0      2.0      2.0      2.0     2.0     2.0
                    Book Value                       152      183      197      219     241      267
                    DuPont Analysis
                    EBIT margin                       7.1      5.8      6.5      6.3     6.3     6.4
                    Tax retention ratio               0.7      0.7      0.6      0.6     0.7     0.7
                    Asset turnover (x)                2.4      2.7      2.1      1.9     1.9     1.9
                    ROIC (Post-tax)                  12.0     11.2      8.8      7.1     8.0     8.4
                    Cost of Debt (Post Tax)          10.7     11.0      6.2      5.8     8.2     7.8
                    Leverage (x)                      1.2      1.0      1.2      1.3     1.6     1.6
                    Operating ROE                    13.5     11.4     11.9      8.9     7.8     9.4
                    Returns (%)
                    ROACE (Pre-tax)                  15.8     14.6     13.0     11.8    11.6    11.9
                    Angel ROIC (Pre-tax)             16.9     15.6     13.7     12.3    11.9    12.4
                    ROAE                             17.5     14.0     13.5     10.3    10.4    11.4
                    Turnover ratios (x)
                    Asset Turnover (Gross Block)      4.7      4.8      3.7      3.5     3.7     3.8
                    Inventory / Sales (days)          49       45       54       55      57       62
                    Receivables (days)               130      110      139      153     158      156
                    Payables (days)                  130      116      141      141     137      145
                    Wcap cycle (ex-cash) (days)       86       70       92      107     116      114
                    Solvency ratios (x)
                    Net debt to equity                0.8      1.2      1.2      1.4     1.8     1.5
                    Net debt to EBITDA                2.4      2.7      2.6      3.3     3.8     3.2
                    Interest Coverage                 1.8      1.8      2.4      2.1     1.6     1.7




February 14, 2012                                                                                 10
                                                                                               Simplex Infra | 3QFY2012 Result Update



  Research Team Tel: 022 - 39357800               E-mail: research@angelbroking.com                    Website: www.angelbroking.com

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 Disclosure of Interest Statement                                              Simplex Infra
 1. Analyst ownership of the stock                                                 No
 2. Angel and its Group companies ownership of the stock                           No
 3. Angel and its Group companies' Directors ownership of the stock                No
 4. Broking relationship with company covered                                      No

 Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors.



 Ratings (Returns):              Buy (> 15%)                      Accumulate (5% to 15%)                 Neutral (-5 to 5%)
                                 Reduce (-5% to 15%)              Sell (< -15%)


February 14, 2012                                                                                                                         11