KRBL Q4 Result Update money.umakant.info Q2 2010 by icestar

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                                                      Financial Performance


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                                                       Corporate Governance




                             In-depth analysis of the fundamentals and valuation




 KRBL Limited

Q4FY10 result update
CRISIL Independent Equity Research Team
Mukesh Agarwal          magarwal@crisil.com              +91 (22) 3342 3035
Director

Tarun Bhatia          tbhatia@crisil.com                 +91 (22) 3342 3226
Director- Capital Markets

 Analytical Contacts 

Chetan Majithia         chetanmajithia@crisil.com        +91 (22) 3342 4148
Sudhir Nair             snair@crisil.com                 +91 (22) 3342 3526
Suresh Guruprasad       sguruprasad@crisil.com           +91 (22) 3342 3531
Sagar Parikh            sparikh@crisil.com               +91 (22) 3342 3502
Vishal Rampuria         vrampuria@crisil.com             +91 (22) 3342 3525
Nihag Shah              ndshah@crisil.com                +91 (22) 3342 3533
Bhaskar Bukrediwala     bsbukrediwala@crisil.com         +91 (22) 3342 1983
Ravi Dodhia             rdodhia@crisil.com               +91 (22) 3342 3508
Urmil Shah              udshah@crisil.com                +91 (22) 3342 8135
Neeta Khilnani          nkhilnani@crisil.com             +91 (22) 3342 1882
Niyati Dave             ndave@crisil.com                 +91 (22) 3342 3569
Suhel Kapur             skapur@crisil.com                +91 (22) 3342 4149
Amit Murarka            amurarka@crisil.con              +91 (22) 3342 3578
Aishvarya Dadheech      adadheech@crisil.con             +91 (22) 3342 1994
Amit Kawle              akawle@crisil.con                +91 (22) 3342 1972
Charulata Gaidhani      cgaidhani@crisil.com             +91 (22) 3342 3587

 Sector Contacts 

Nagarajan Narasimhan    nnarasimhan@crisil.com           +91 (22) 3342 3536
Ajay D'Souza            adsouza@crisil.com               +91 (22) 3342 3567
Manoj Mohta             mmohta@crisil.com                +91 (22) 3342 3554
Sachin Mathur           smathur@crisil.com               +91 (22) 3342 3541
Sridhar C               sridharc@crisil.com              +91 (22) 3342 3546

 Business Development Contacts 

Vinaya Dongre           vdongre@crisil.com               +91 99 202 25174
Sagar Sawarkar          ssawarkar@crisil.com             +91 98 216 38322
Sejal Kothari           sakothari@crisil.com             +91 99 206 25746
Salil Srivastava        spsrivastava@crisil.com          +91 98 339 96430
Supriya Tapase          stapase@crisil.com               +91 98 207 45668
Vipin Saboo             vsaboo@crisil.com                +91 98 207 79873


CRISIL’s Equity Offerings
 
The Equity Group at CRISIL Research provides a wide range of services including: 

    Independent Equity Research
    IPO Grading
    White Labelled Research
    Valuation on companies for use of Institutional Investors, Asset Managers, Corporates

Other Services by the Research group include 

    CRISINFAC Industry research on over 60 industries and Economic Analysis
    Customised Research on Market sizing, Demand modelling and Entry strategies
    Customised research content for Information Memorandum and Offer documents
Explanation of CRISIL Fundamental and Valuation (CFV) matrix
The CFV Matrix (CRISIL Fundamental and Valuation Matrix) addresses the two important analysis of an investment
making process – Analysis of Fundamentals (addressed through Fundamental Grade) and Analysis of Returns
(Valuation Grade)

Fundamental Grade 
CRISIL’s Fundamental Grade represents an overall assessment of the fundamentals of the company graded in relation
to other listed equity securities in India. The grade facilitates easy comparison of fundamentals between companies,
irrespective of the size or the industry they operate in. The grading factors in the following:

             Business Prospects: Business prospects factors in Industry prospects and company’s future financial
             performance
             Management Evaluation: Factors such as track record of the management, strategy are taken into
             consideration
             Corporate Governance: Assessment of adequacy of corporate governance structure and disclosure norms

The grade is assigned on a five-point scale from grade 5 (indicating Excellent fundamentals) to grade 1 (Poor
fundamentals)

CRISIL Fundamental                       Assessment 
Grade 
5/5                                      Excellent fundamentals
4/5                                      Superior fundamentals
3/5                                      Good fundamentals
2/5                                      Moderate fundamentals
1/5                                      Poor fundamentals


Valuation Grade 
CRISIL’s Valuation Grade represents an assessment of the potential value in the company stock for an equity investor
over a 12 month period. The grade is assigned on a five-point scale from grade 5 (indicating strong upside from the
current market price (CMP)) to grade 1 (strong downside from the CMP).

CRISIL Valuation Grade                   Assessment 
5/5                                      Strong upside (>25% from CMP)
4/5                                      Upside (10-25% from CMP)
3/5                                      Align (+-10% from CMP)
2/5                                      Downside (negative 10-25% from CMP)
1/5                                      Strong downside (<-25% from CMP)


Analyst Disclosure
Each member of the team involved in the preparation of the grading report, hereby affirms that there exists no conflict of interest that can bias
the grading recommendation of the company.



Disclaimer:
This Company-sponsored Report (Report) is based on data publicly available or from sources considered reliable. CRISIL Ltd. (CRISIL) does
not represent that it is accurate or complete and hence, it should not be relied upon as such. The data / Report are subject to change without any
prior notice. Opinions expressed herein are our current opinions as on the date of this Report. Nothing in this Report constitutes investment,
legal, accounting or tax advice or any solicitation, whatsoever. The subscriber / user assumes the entire risk of any use made of this data / Report.
CRISIL especially states that it has no financial liability, whatsoever, to the subscribers / users of this Report. This Report is for the personal
information only of the authorized recipient in India only. This Report should not be reproduced or redistributed or communicated directly or
indirectly in any form to any other person – especially outside India or published or copied in whole or in part, for any purpose.
   List of companies under coverage
                                                                                      Initiating Coverage             Last Update
 Sl.   Report Date Company Name              Sector              CMP      M. Cap      Fair value Fundamental      Fair value Fundamental
 No.                                                                     (Rs. Mn)                         grade                    grade
  1    02-Feb-10   Aarti Industries         Chemicals               49       3,757            56            3/5           56         3/5
  2    31-Jan-10   ABG Shipyard             Shipping               315     10,286            242            3/5          259         3/5
  3    01-Feb-10   Apollo hospitals         Hospitals              712     44,102            642            4/5          724         4/5
                                            Packaging/Expand
  4    04-May-10   Beardsell Limited                                64         245           54            3/5          54           3/5
                                            ed Polystyrene
  5    06-Apr-10   Dhanuka Agritech Ltd     Pesticides                271     2,483         283            3/5           -             -
  6    29-Jan-10   DLF                      Real Estate               335   568,495         356            3/5         356           3/5
  7    27-Jan-10   Dolphin Offshore         Oil & Gas                 385     6,060         315            3/5         417           3/5
  8    05-Feb-10   EID Parry                Sugar                     348    30,050         394            4/5         395           4/5
  9    01-Feb-10   Everest Kanto            Manufacturing             131    13,252         270            4/5         135           4/5
  10   11-May-10   GKB Ophthalmics Ltd      Ophthalmic Lens            48       199          52            2/5           -             -
  11   23-Feb-10   Havells India Ltd        Capital Goods             533    32,070         614            4/5           -             -
  12   29-Jan-10   Hero Honda               Automobiles             1,889   377,240       1,747            5/5        1937           5/5
  13   02-Mar-10   Hindusthan National      Packaging/Glass           240    21,049         314            4/5         314           4/5
                   Glass & Industries Ltd.
  14 13-May-10 Hydro S&S Industries Ltd. Petrochemicals |            71.5       465        32.5            3/5           -             -
                                                Plastic Compounds
  15 11-Feb-10 Indiabulls Securities            Financial Services     31     7,932          60            4/5          48           4/5
  16 05-Feb-10 JBF Industries                   Textiles              111     6,882         119            3/5         129           3/5
  17 05-Feb-10 JM Financial                     Financial Services     39    30,550          57            4/5          57           4/5
  18 21-Jan-10     KKCL                         Fashion and           265     3,292         336            3/5         336           3/5
                                                apparels
                                                Flour milling, yarn
  19 20-May-10 KLRF                                                    32       161          35            2/5           -             -
                                                spinning, castings
  20 01-Feb-10 KRBL                             Agriculture/Rice       19     4,716          34            3/5          34           3/5
  21 11-May-10 KSE Limited                      Animal Feed           210       673         200            3/5           -             -
                   Lakshmi Energy and
  22 31-May-10                                  Agriculture/Rice      102     6,445         145            3/5           -             -
                   Foods Ltd
                                                Infrastructure/
  23 02-Jun-10     MBL Infrastructure Ltd                             209     3,660         260            3/5           -             -
                                                Construction
  24 31-Jan-10     NTPC                         Power                 214 1,764,537         228            5/5         231           5/5
  25 29-Jan-10     Pantaloon Retail (India) Retail                    406    77,282           *            4/5           *           4/5
  26 04-Feb-10 Phoenix Mills                    Real Estate           203    29,404         160            2/5         183           2/5
  27 22-Apr-10 Polaris Software                 Information           186    18,407         247            4/5           -             -
                                                Technology
  28 19-Apr-10 Sangam (India) Ltd               Textiles               33     1,380          46            3/5          46           5/5
  29 03-Feb-10 UTV Software                     Media and             498    17,066         548            3/5         538           3/5
                                                Entertainment
  30 07-May-10 Zylog System                     Information           456     7,494         530            3/5           -             -
                                                Technology
CMP - Current Market Price (as on date of respective report)
M Cap - Market Capitalisation (as on date of respective report)
*NA - Not Applicable (Company has requested for a fundamental grading only)
                  Independent Research Report – KRBL Limited
  Look at PAT, not EBITDA                                                                    Industry                               Agriculture I Rice
                                                                                             Date                                   June 02, 2010

KRBL’s FY10 consolidated revenues grew 20.4% y-o-y. PAT margins increased 280 bps                CFV matrix
due to lower interest expenses, but EBITDA margin declined 200 bps y-o-y. We continue
to assign KRBL a fundamental grade of ‘3/5’, indicating its fundamentals are ‘good’                      Excellent
                                                                                                       Fundamentals
relative to other listed equity securities in India. We assign a valuation grade of ‘5/5’,
indicating that the market price has ‘strong upside’ from the current levels.                                                   5




                                                                                                   Fundamental Grade
Q4FY10 result analysis                                                                                                          4
- KRBL’s Q4FY10 revenues were 111% y-o-y higher at Rs 4,422 mn due to strong
  growth in volumes.                                                                                                            3
- EBITDA margin was reported at 12.4% as against 14.1% in 9MFY10 due to higher
  purchase of semi-finished goods.                                                                                              2
- PAT was Rs 345 mn compared to negative Rs 49 mn in Q4FY09.
                                                                                                                                1
FY10 result analysis
- KRBL’s FY10 revenues were up 20.4% y-o-y at Rs 15,790 mn, in line with CRISIL                            Poor                              1            2             3             4             5
                                                                                                        Fundamentals
  Equities’ expectations of Rs 16,004 mn.
- Purchase of semi-finished rice increased 79.7% y-o-y to Rs 4,510 mn. As a result,                                                                       Valuation Grade
  EBITDA margins declined from 15.5% in FY09 to 13.5% in FY10.




                                                                                                                                    Downside
- Interest cost declined 55.1% y-o-y to Rs 417 mn. Decline at the EBITDA level was




                                                                                                                                     Strong




                                                                                                                                                                                                Upside
                                                                                                                                                                                                Strong
  offset by lower interest cost. Hence, PAT margin increased 280 bps y-o-y to 7.8%,
  marginally above CRISIL Equities estimate of 7%.

Realisations increased in FY10; likely to remain range-bound next year
KRBL’s average realisation increased 5.6% y-o-y to Rs 45,116 per metric tonne in FY10.                                 Fundamental grade of '3/5 indicates good fundamentals
Currently, basmati prices have declined marginally due to the bumper harvest of Pusa
                                                                                                                       Valuation grade of '5/5' indicates strong upside
1121 basmati variety. According to the management, current sales are off-season and
prices are expected to firm-up again on seasonal buying. We expect basmati prices to
                                                                                                 Key stock statistics
remain range-bound in FY11. Also, historically, a dip in prices has increased the
demand. Hence, any revenue loss due to lower prices is likely to be offset by an increase        NSE/BSE ticker                                                                                         KRBL
in volumes.                                                                                      Fair value (face value Re 1)                                                                                34
                                                                                                 Current market price*                                                                                       24
Capex funding through internal accruals and low finished good days reduced                       Shares outstanding (mn)                                                                                243.1
interest cost in FY10                                                                            Market cap (Rs mn)                                                                                     5,786
In the rice industry, inventory is normally funded through debt funds. In FY10, a large
                                                                                                 Enterprise value (Rs mn)                                                                           11,464
portion of capex of Rs 1,300 mn was funded through internal accruals. In addition,
                                                                                                 52-week range (Rs)(H/L)                                                                                 32/8
reduction in finished goods inventory from 190 days in FY09 to 141 days in FY10 led to
                                                                                                 PE on EPS estimate (FY11E)(x)                                                                              4.2
stable debt levels in FY10. Actual debt in FY10 was Rs 6,045 mn, significantly below
CRISIL Equities estimate of Rs 8,512 mn. Going forward, we maintain our PAT margin               Beta                                                                                                       1.2
estimate as a decline at the EBITDA level is likely to be offset by lower interest               Free float (%)                                                                                          43.3
expenses.                                                                                        Average daily volumes                                                                       1,051,000
                                                                                                 * as on report date
Valuations - strong upside from current levels
In the Q3FY10 result update (dated 01 February 2010), we had maintained our fair value           Share price movement
of Rs 34. The market price of the stock (which was Rs 19.4 at the time of the update) has
                                                                                                  Indexed to 100
moved up since then and is currently Rs 23.8. We maintain the valuation grade of ‘5/5’,
                                                                                                    200.0
indicating that the market price has ‘strong upside’ from the current levels.
                                                                                                    150.0
 Key forecast (consolidated financials)
 (Rs mn)                              FY08          FY09        FY10P        FY11E                  100.0

 Operating income                    10,069       13,212        15,972       19,538
                                                                                                         50.0
 EBITDA                               1,539        2,044         2,159        2,932
 Adj net income                        548           656         1,246        1,375                                -
                                                                                                                                                                                                         May-10




 EPS-Rs                                 2.3           2.7           5.1          5.7
                                                                                                                                                                                  Mar-09
                                                                                                                                    Nov-06




                                                                                                                                                                       Aug-08
                                                                                                                       Apr-06




                                                                                                                                                                                           Oct-09
                                                                                                                                                 Jun-07



                                                                                                                                                              Jan-08




 EPS growth (%)                      (88.9)          19.0          90.4        10.3
 PE (x)                                10.6           8.9           4.6          4.2
 P/BV (x)                               1.6           1.4           1.1          0.9           Analytical contact
 RoCE (%)                              13.4          16.8          17.4        19.6            Chetan Majithia (Head, Equities)                                                 +91 22 3342 4148
 RoE (%)                               16.3          16.7          26.1        23.0            Ravi Dodhia                                                                      +91 22 3342 3508
 EV/EBITDA (x)                          8.5           5.6           5.3          4.5           Suresh Guruprasad                                                                +91 22 3342 3525
 Source: Company, CRISIL Equities estimate                                                     Email: clientservicing@crisil.com                                                +91 22 3342 3561



                                                                                                                                                                                                        1
                                                                                                                                                                                                            1
                           KRBL Ltd




                                      Comparison of actual result with our estimates

FY10 PAT was higher than expected
                                      KRBL’s FY10 revenues and EBITDA were lower than CRISIL Equities’ estimates, but
                                      net profit beat our estimates due to low interest expenses. We had estimated EPS of
                                      Rs 4.7, while the actual was Rs 5.1 in FY10.


                                                                                             FY10
                                      Rs mn                                      Actual    Estimated          % change
                                      Operating income                           15,972       16,393               -2.6
                                      EBITDA                                      2,159        2,540              -15.0
                                      Net income                                  1,246        1,146               8.7
                                      EPS (Rs)                                      5.1         4.7#               8.7
                                      #Post stock-split of 10:1


                                      Changes in earnings estimates

                                      Revenue estimates have been marginally revised downwards due to lower-than-
                                      expected realisations in FY10. Volumes are expected to grow 23.4% y-o-y to 413,795
                                      MT, while realisations are expected to decline 3% to 43,763 per MT in FY11.

                                      While it is difficult to trace the substitution of debt and inventory, in line with recent
                                      trends EBITDA margin estimate is revised downwards from 16.3% to 15% in FY11.
                                      Debt is expected to be Rs 8,072 mn in FY11 (debt-to-equity ratio of 1.2x) compared to
                                      our earlier estimate of Rs 10,085 mn. Accordingly, interest expenses are revised
                                      downwards from Rs 940 mn to Rs 695 mn in FY11. We do not anticipate a change at
                                      the bottom line as a decline at the EBITDA level is expected to be offset by low interest
                                      expenses.

                                      KRBL (Consolidated)                         FY11E
                                      (Rs mn)                             Old       New       % change
                                      Total operating income         20,310       19,538               -3.8
                                      EBITDA                             3,302     2,932            -11.2
                                      Consolidated PAT                   1,384     1,375               -0.7
                                      EPS (Rs)                             5.7       5.7               -0.7
                                      Source: CRISIL Equities estimate




CRISIL Equities                                                                                                                    2
                                       KRBL Ltd




                                                  Valuation

                                                  We continue to use the price-to-earnings (PE) method to value KRBL. Based on a P/E
                                                  multiple of 6x, we continue to value KRBL at Rs 34 per share.

                                                  We had maintained a fair value of Rs 34 in the Q3FY10 result update. The market price
                                                  of the stock was Rs 19.4 at that time (please refer to our Q3FY10 update report dated
                                                  February 01, 2010 on www.ier.co.in). Since then, the stock has moved up to Rs 23.8.
                                                  We maintain the valuation grade of ‘5/5’, indicating that the market price has ‘strong
                                                  upside’ from the current levels.

                                                      Chart: Share price movement since Q3FY10 result update

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                                                                                                                 Volumes (RHS - in lakhs)                                                                          Share price                                                    Fair value


                                                      Source: NSE, CRISIL Equities



 Table: Reports released on KRBL Ltd
    Date        Nature of report                            Fundamental Grade                                                 Fundamental Price                                                                Valuation grade                                                                                                 Market price
                                                                                                                                                                                                                                                                                             (on the date of report)
 11-Jan-10      Initiating coverage*                                                                     3/5                                                               Rs 34#                                                                               5/5                                                                  Rs 22.2#
  1-Feb-10      Q3FY10 result update*                                                                    3/5                                                               Rs 34#                                                                               5/5                                                                  Rs 19.4#
  2-Jun-10      Q4FY10 result update                                                                     3/5                                                                    Rs 34                                                                           5/5                                                                   Rs 23.8
 * For detailed reports please visit: www.ier.co.in
 # After adjusting for stock split of 10:1




CRISIL Equities                                                                                                                                                                                                                                                                                                                                 3
                  KRBL Ltd




                             Q4FY10 result analysis

                             (Rs mn)                            Q4FY10         Q3FY10          Q4FY09       q-o-q (%)   y-o-y (%)
                             Net sales                           4,422          3,025           2,095          46.2%     111.0%
                             (Inc)/dec in stock                    964          -1,521           -567             n.a         n.a
                             Consumption of raw materials        2,713          3,476           2,117         -22.0%      28.1%
                             Purchase of traded goods               -7             83               2             n.a         n.a
                             Employees cost                         52             44              28          16.2%      82.3%
                             Other expenses                        295            505             286         -41.5%        3.0%
                             Cost of sales                       4,017          2,587           1,866          55.3%     115.2%
                             Other operating income                 13             35               -4        -63.2%         n.a.
                             EBITDA                                418            474             225         -11.7%      85.8%
                             EBITDA margin                        9.5%          15.7%           10.7%
                             Interest and finance charges          102             90             165          14.3%      -37.8%
                             EBTDA                                 316            384              61         -17.7%     420.6%
                             Depreciation                           75             73              41           3.9%      85.9%
                             Operating PBT                         241            312              20         -22.7%    1091.6%
                             Other Income                            4              1               1
                             PBT                                   245            312              20         -21.5%    1110.4%
                             Tax                                    57             22              62        164.5%        -7.9%
                             PAT                                   187            290             -42         -35.4%         n.a.
                             PAT margin                           4.2%           9.6%           -2.0%
                             No of equity shares                   243            243             243
                             EPS (Rs)- Diluted                     0.8             1.2            -0.2         19.1%         n.a.
                             Source: Company, CRISIL Equities                                                                    

                             FY10 result analysis

                             (Rs mn)                                FY10           FY09         y-o-y (%)
                             Net sales                             15,790         13,117          20.4%
                             (Inc)/dec in stock                     1,116          -1,335            n.a.
                             Consumption of raw materials          10,917         10,422            4.7%
                             Purchase of traded goods                127                 86       47.2%
                             Employees cost                          158             119          32.3%
                             Other expenses                         1,496          1,876          -20.3%
                             Cost of sales                         13,814         11,169          23.7%


                             Other operating income                  182                 86      113.1%
                             EBITDA                               2,158.8          2,034            6.1%
                             Interest and finance charges            417             887          -52.9%
                             EBTDA                                  1,741          1,147          51.8%
                             Depreciation                            276             236          17.1%
                             Operating PBT                          1,466            912          60.7%
                             Other Income                                34               9      275.8%
                             PBT                                    1,500            921          62.9%
                             Tax                                     254             267           -4.6%
                             PAT                                    1,246            654          90.4%
                             No of equity shares                     243             243
                             EPS (Rs)- Diluted                           5.1             2.7      90.4%
                             Source: Company, CRISIL Equities




CRISIL Equities                                                                                                                     4
                                      KRBL Ltd




Annexure: Financials

 Income Statement
 (Rs mn)                                          FY08     FY09    FY10P    FY11E
 Net sales                                        9,790   12,899   15,790   19,062
 Operating income                                10,069   13,212   15,972   19,538
 EBITDA                                           1,539    2,044    2,159    2,932
 Depreciation                                      241      235      276      377
 Interest                                          656      930      417      695
 Other income                                       12       42       34       49
 PBT                                               654      921     1,500    1,909
 PAT                                               548      656     1,246    1,375
 No. of shares                                     243      243      243      243
 Earnings per share (EPS)                           2.3      2.7      5.1      5.7

 Balance Sheet
 (Rs mn)                                          FY08     FY09    FY10P    FY11E
 Equity (FV - Rs 1)                                244      244      244      244
 Reserves and surplus                             3,363    3,981    5,091    6,380
 Debt                                             7,732    6,012    6,045    8,072
 Current liabilities and provisions               1,894    1,442    2,040    2,933
 Deferred tax liability/(asset)                     85       84       83       84
 Minority interest                                    -        -        -        -
 Capital employed                                13,317   11,762   13,503   17,712
 Net fixed assets                                 2,275    2,170    3,193    3,544
 Capital WIP                                        74      341      341      341
 Intangible assets                                    -        -        -        -
 Investments                                         3        2        4        4
 Loans and advances                                348      330      376      488
 Inventory                                        8,348    7,879    7,813   10,900
 Receivables                                      1,808     707     1,351    1,874
 Cash & bank balance                               460      334      426      562
 Applications of funds                           13,317   11,762   13,503   17,712




CRISIL Equities                                                                      5
                                 KRBL Ltd




 Cash Flow
 (Rs mn)                                      FY08      FY09     FY10P     FY11E
 Pre-tax profit                                654       921      1,500     1,909
 Total tax paid                               (108)     (267)     (254)     (534)
 Depreciation                                   241       235       276       377
 Change in working capital                   (3,359)    1,137       (26)   (2,829)
 Cash flow from operating activities         (2,572)    2,026     1,495    (1,077)
 Capital expenditure                          (207)     (397)    (1,299)    (728)
 Investments and others                          88         2        (2)         -
 Cash flow from investing activities          (120)     (395)    (1,301)    (728)
 Equity raised/(repaid)                          (2)       21       (50)         -
 Debt raised/(repaid)                         2,823    (1,720)       33     2,027
 Dividend (incl. tax)                           (57)      (57)      (85)      (85)
 Others (incl extraordinaries)                    1        (1)         -         -
 Cash flow from financing activities          2,766    (1,757)    (102)     1,941
 Change in cash position                         74     (126)        92       136
 Opening cash                                   386       460       334       426
 Closing cash                                   460       334       426       562

 Ratios
                                              FY08      FY09     FY10P     FY11E
 Growth ratios
 Sales growth (%)                               9.1      31.7      22.4      20.7
 EBITDA growth (%)                             27.1      32.8       5.6      35.8
 EPS growth (%)                               (88.9)     19.0      90.4      10.3
 Profitability ratios
 EBITDA margin (%)                             15.3      15.5      13.5      15.0
 PAT margin (%)                                 5.4       5.0       7.8       7.0
 Return on capital employed (RoCE) (%)         13.4      16.8      17.4      19.6
 Return on equity (RoE) (%)                    16.3      16.7      26.1      23.0
 Dividend and earnings
 Dividend per share (Rs)                        0.2       0.2       0.3       0.3
 Dividend payout ratio (%)                     10.3       8.7       5.9       5.3
 Dividend yield (%)                             1.0       1.0       1.3       1.3
 Earnings per share (Rs)                        2.3       2.7       5.1       5.7
 Efficiency ratios (x)
 Asset turnover (sales/GFA)                    3.3x      4.0x      4.0x      3.9x
 Asset turnover (sales/NFA)                    4.4x      5.8x      5.9x      5.7x
 Sales/working capital                         1.4x      1.6x      2.1x      2.1x
 Financial stability (x)
 Net debt-equity                                2.0       1.3       1.1       1.1
 Interest coverage                              5.8       6.4       4.9       4.7
 Current ratio                                  2.0       1.9       4.5       3.7
 Valuation multiples (x)
 Price-earnings                               10.6x      8.9x      4.6x      4.2x
 Price-book                                    1.6x      1.4x      1.1x      0.9x
 EV/EBITDA                                     8.5x      5.6x      5.3x      4.5x
 Source: Company, CRISIL Equities estimate




CRISIL Equities                                                                      6
                               KRBL Ltd




      About CRISIL Limited  
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CRISIL Equities                                                                                                           7

								
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