At the current market price of Rs. 44.70, the stock P/E ratio is at 4.57 x FY16E and 3.61 x FY17E respectively

1. CMP 44.70
Target Price 55.00
ISIN: INE478D01014
JUNE 29th
, 2015
ITL INDUSTRIES LIMITED
Result Update (PARENT BASIS): Q4 FY15
BUYBUYBUYBUY
Index Details
Stock Data
Sector Industrial Machinery
BSE Code 522183
Face Value 10.00
52wk. High / Low (Rs.) 50.00/24.50
Volume (2wk. Avg. Q.) 2997
Market Cap (Rs. in mn.) 145.45
Annual Estimated Results (A*: Actual / E*: Estimated)
YEARS FY15A FY16E FY17E
Net Sales 556.35 639.80 722.98
EBITDA 58.81 69.61 81.38
Net Profit 22.95 31.82 40.31
EPS 7.05 9.78 12.39
P/E 6.34 4.57 3.61
Shareholding Pattern (%)
1 Year Comparative Graph
ITL INDUSTRIES LTD BSE SENSEX
SYNOPSIS
We initiate coverage of ITL Industries Ltd. and set
a target price of Rs. 55.00 for medium term
investment.
ITL Industries Ltd. was established in 1986, as a
commercial Tool Room to cater to the needs of local
industries.
The company’s net sales rose by 28.17% y-o-y of Rs.
196.71 million from Rs. 153.47 million over the
corresponding quarter of previous year.
In Q4 FY15, Net profit jumps to Rs. 12.53 million an
increase of 133.77% against Rs. 5.36 million in Q4
FY14.
Operating profit stood at Rs. 20.53 million, grew by
34.18% y-o-y as against Rs. 15.30 million in the
corresponding period of the previous year.
Reported an EPS of Rs. 3.85 for the 4th quarter as
against an EPS of Rs. 1.65 in the corresponding
quarter of the previous year.
Profit before tax (PBT) at Rs. 12.34 million in Q4
FY15 compared to Rs. 8.15 million in Q4 FY14,
registered a growth of 51.41% y-o-y.
The company has recommended a Dividend @ 5%
i.e., Rs. 0.50/- per Share on face value of Rs. 10.00/-
each for the financial year 2015.
Net Sales and PAT of the company are expected to
grow at a CAGR of 13% and 24% over 2014 to
2017E respectively.
PEER GROUPS CMP MARKET CAP EPS P/E (X) P/BV(X) DIVIDEND
Company Name (Rs.) Rs. in mn. (Rs.) Ratio Ratio (%)
ITL Industries Ltd 44.70 145.45 7.05 6.34 0.65 5.00
Lokesh Machines Ltd 79.70 1018.40 0.58 137.41 1.03 5.00
Austin Engineering Company Ltd 64.40 224.00 9.45 6.81 0.39 15.00
Elgi Equipments Ltd 124.75 19767.20 3.51 35.54 3.58 100.00

2. QUARTERLY HIGHLIGHTS (PARENT BASIS)
Results updates- Q4 FY15,
ITL Industries Ltd offers a wide range of Horizontal
& Vertical Bandsaw machines with 52 different
models having capacity from 100 mm to 3000 mm
featuring Manual, Semi Automatic, Fully Automatic,
NC & CNC models, has reported its financial results
for the quarter ended 31 March, 2015.
Rs. In million Mar-15 Mar-14 % Change
Net Sales 196.71 153.47 28.17
PAT 12.53 5.36 133.77
EPS 3.85 1.65 133.77
EBITDA 20.53 15.30 34.18
The company has achieved a turnover of Rs. 196.71 million, an increase of 28.17% for the 4th quarter of the
financial year 2015 as compared to Rs. 153.47 million in the corresponding quarter of the previous year. In Q4
FY15, Net profit jumps to Rs. 12.53 million an increase of 133.77% against Rs. 5.36 million in Q4 FY14. Operating
profit stood at Rs. 20.53 million, grew by 34.18% y-o-y as against Rs. 15.30 million in the corresponding period of
the previous year. The company has reported an EPS of Rs. 3.85 for the 4th quarter as against an EPS of Rs. 1.65 in
the corresponding quarter of the previous year.
Break up of Expenditure
During the quarter, total Expenditure rose by 25 per cent mainly on account of increased Consumption of Raw
Materials by 42%, other expenditure by 39% and Employee benefits Expenses 30% are the primary attribute for
the growth of expenditure when compared to corresponding quarter of previous year. Total expenditure in Q4
FY15 stood to Rs. 179.78 million as against Rs. 143.46 million in Q4 FY14.
Break up of Expenditure
(Rs. In million)
Q4 FY15 Q4 FY14
Consumption of Raw Materials 99.74 70.24
Employee Benefit Expenses 23.41 18.04
Depreciation 1.89 3.17
Other Expenditure 30.42 21.89

3. Segment Revenue
COMPANY PROFILE
ITL Industries Ltd. was established in 1986, as a commercial Tool Room to cater to the needs of local industries.
Engineering industry in India then, was still in nascent stage and demand for Metal Sawing Machines was
growing rapidly. ITL emerged as the sole manufacturer of India's first cent percent indigenously designed and
developed High Speed Double Column Band Saw Machine to meet the growing demand. ITL offers 60 different
models of Bandsaw machine ranging from 100 mm to 3000 mm cutting capacity with manual, semi automatic,
automatic and fourth generation CNC machine. In1996, ITL joined hands with KASTO Maschinenfabrik GmbH
Germany to manufacture state-of-the-art High Speed Power Hacksawing Machines in India, with a buy back
arrangement. ITL manufacture's three models of Kasto Sawing Machines with cutting capacities 250 mm, 280
mm. and 400 mm. dia. in India as per Kasto Technology. With the outlet in USA, ITL is entering into global market
rapidly and established as a reliable qualified vendor to world leaders in the engineering fields.
The company is a leader in the domestic and global market and has established itself as an innovative and
reliable “Affordable Metal Cutting Solution Provider”.
In the year 2004, ITL introduced India’s first indigenously designed and developed CNC Carbide Tip Circular
Sawing Machine and displayed the same in EMO Show at Hannover, Germany in September 2005 & 2007 with
very good global response. ITL offers wide range of Circular Sawing Machine for cutting ferrous and nonferrous
Bars, Sections, Profiles and Tubes.
DEVELOPMENT AND MANUFACTURING FACILITIES:
The Engineering Team of ITL uses latest designing facilities with CAD / CAM and Solid design, Modelling and
other software. The manufacturing includes right from the state of the art fabrication shop, best machine
division, sub-assemblies, assemblies, painting, inspection and packing facilities.

4. ITL is located at Plot of approx. 4 Acres having covered area of about 108,000 square feet and additional land
available for shed expansion approx. 44,000 square feet. To cater overseas requirements ITL has acquired
additional land in Special Economic Zone and expects to start production by 2009.
Products
• Cold Saw Fly Cut Off
• Bandsaw Machines
• Circular Sawing Machine
• Tube/Pipe Manufacturing Machine
• Power Hacksaw Machines
• Blades
• Special Purpose Machines
• ITL Videos
• Post Your Need
• CSM Machine
Services
Servicing has been a prime consideration for ITL Industries Ltd. The company is able to provide servicing in all
cities of the country through its Service network. ITL holds huge inventory of spares & components for prompt
supply and replacement at it's head office, branches and the USA ware house.
Service Centre for Indian Railways--
1) Setting up Ultra Modern Heavy and Light Steel Fabrication Shop
2) Setting up facilities for finishing of Forged Steel Loco and Other wheels.
3) Precision Component Manufacturing Facilities
MARKET & CUSTOMERS:
All the major Steel Plants, Forging Industries, Defense Establishments, Railways Workshops, Bharat Heavy
Electrical Units, Steel Tube Plants, Research Organizations like BARC, NFC, DMRL, ISRO, MIDHANI and
HINDALCO etc. and Heavy Engineering Industries are the customers of ITL.
ITL have also spread their wings in Export market with satisfied customers in USA, Canada, Europe, Middle East
and South East Asia.
In the past, ITL has designed, developed, manufactured, supplied, erecting and commissioned Tube Mill Plants
and Exported to Singapore, Malaysia and South Africa. In addition, the company has 16 installations with various
capacities running successfully in India.

5. FINANCIAL HIGHLIGHT (PARENT BASIS) (A*- Actual, E* -Estimations & Rs. In Millions)
Balance Sheet as at March31, 2014 -2017E
FY14A FY15A FY16E FY17E
I. EQUITY AND LIABILITIES:
A. Shareholders’ Funds
a) Share Capital 32.54 32.54 32.54 32.54
b) Reserves and Surplus 173.56 190.08 214.79 240.57
Sub-Total-Net worth 206.10 222.62 247.33 273.11
B. Non-Current Liabilities:
a) Long-term borrowings 32.31 35.27 37.39 39.26
b) Deferred Tax Liabilities [Net] 15.71 14.18 14.75 15.19
Sub-Total-Long term liabilities 48.02 49.45 52.13 54.45
C. Current Liabilities:
a) Short-term borrowings 133.80 122.20 113.65 106.37
b) Trade Payables 87.61 107.05 119.90 130.69
c) Other Current Liabilities 52.29 66.23 76.16 83.78
Sub-Total-Current Liabilities 273.70 295.48 309.71 320.84
TOTAL-EQUITY AND LIABILITIES (A+B+C) 527.82 567.55 609.17 648.39
II. ASSETS:
D. Non-Current Assets:
Fixed Assets 102.42 91.94 96.17 100.02
Non Current Investments 10.94 10.26 10.67 11.31
Long Term Loans and Advances 4.25 4.09 4.21 4.44
Sub-Total-Non-Current Assets 117.61 106.29 111.05 115.77
E. Current Assets:
a) Current Investments 3.86 3.84 4.03 4.35
b) Inventories 177.67 220.25 249.40 275.91
c) Trade Receivables 152.58 160.86 167.29 172.31
d) Cash and Bank Balances 19.60 21.71 23.88 25.79
e) Short Term Loans and Advances 56.50 54.60 53.51 54.26
Sub-Total-Current Assets 410.21 461.26 498.12 532.63
TOTAL-ASSETS (D+E) 527.82 567.55 609.17 648.39

6. Annual Profit & Loss Statement for the period of 2014 to 2017E
Value(Rs.in.mn) FY14A FY15A FY16E FY17E
Description 12m 12m 12m 12m
Net Sales 421.52 556.35 639.80 722.98
Other Income 2.73 2.25 2.43 2.58
Total Income 424.25 558.60 642.23 725.55
Expenditure -374.93 -499.79 -572.62 -644.17
Operating Profit 49.32 58.81 69.61 81.38
Interest -22.75 -23.23 -25.09 -26.59
Gross profit 26.57 35.58 44.52 54.79
Depreciation -9.71 -9.42 -9.89 -10.68
Profit Before Tax 16.86 26.16 34.63 44.10
Tax -5.49 -3.21 -2.81 -3.79
Net Profit 11.37 22.95 31.82 40.31
Equity capital 32.54 32.54 32.54 32.54
Reserves 173.56 190.08 214.79 240.57
Face value 10.00 10.00 10.00 10.00
EPS 3.49 7.05 9.78 12.39
Quarterly Profit & Loss Statement for the period of 30 SEPT, 2014 to 30 JUNE, 2015E
Value(Rs.in.mn) 30-Sep-14 31-Dec-14 31-Mar-15 30-Jun-15E
Description 3m 3m 3m 3m
Net sales 137.13 127.59 196.71 134.75
Other income 0.04 0.37 1.71 0.26
Total Income 137.17 127.96 198.42 135.00
Expenditure -125.56 -115.67 -177.89 -113.46
Operating profit 11.61 12.29 20.53 21.55
Interest -6.49 -3.18 -6.30 -8.57
Gross profit 5.12 9.11 14.23 12.98
Depreciation -2.35 -2.97 -1.89 -1.95
Profit Before Tax 2.77 6.14 12.34 11.03
Tax -0.90 -1.00 0.19 -0.86
Net Profit 1.87 5.14 12.53 10.17
Equity capital 32.54 32.54 32.54 32.54
Face value 10.00 10.00 10.00 10.00
EPS 0.57 1.58 3.85 3.13

7. Ratio Analysis
Particulars FY14A FY15A FY16E FY17E
EPS (Rs.) 3.49 7.05 9.78 12.39
EBITDA Margin (%) 11.70% 10.57% 10.88% 11.26%
PBT Margin (%) 4.00% 4.70% 5.41% 6.10%
PAT Margin (%) 2.70% 4.13% 4.97% 5.58%
P/E Ratio (x) 12.79 6.34 4.57 3.61
ROE (%) 5.52% 10.31% 12.87% 14.76%
ROCE (%) 15.86% 17.95% 19.96% 21.99%
Debt Equity Ratio 0.81 0.71 0.61 0.53
EV/EBITDA (x) 5.84 4.72 3.86 3.21
Book Value (Rs.) 63.34 68.41 76.01 83.93
P/BV 0.71 0.65 0.59 0.53
Charts

8. OUTLOOK AND CONCLUSION
At the current market price of Rs. 44.70, the stock P/E ratio is at 4.57 x FY16E and 3.61 x FY17E respectively.
Earning per share (EPS) of the company for the earnings for FY16E and FY17E is seen at Rs.9.78 and Rs.12.39
respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 13% and 24% over 2014 to 2017E
respectively.
On the basis of EV/EBITDA, the stock trades at 3.86 x for FY16E and 3.21 x for FY17E.
Price to Book Value of the stock is expected to be at 0.59 x and 0.53 x respectively for FY16E and FY17E.
We recommend ‘BUY’ in this particular scrip with a target price of Rs.55.00 for Medium to Long term
investment.
INDUSTRY OVERVIEW
The Industry structure has remained the same in the domestic market. In some new products for Tube & Pipe
Manufacturing Company, High Speed Circular Sawing Machines, ITL has captured a reasonable market size. More
and more technological advancement and updation of latest technology creates an opportunity to penetrate into
new products line & global market in near future. The Company has started a new division in the name of e-
Supply world for industrial supply purpose through website orders booking.
OPPORTUNITIES AND THREATS
There is significant change in the outlook compared to last year. The Company continues to enhance
opportunities for growth by focusing on introduction of new products and putting high emphasis on after sales &
services of the products along with up gradation of technology.

9. The Company faces the normal threats, risks and concerns which are associated with competition from local and
overseas manufacturers.
RISKS AND CONCERNS:
The Company is falling under the capital goods industry, the growth of which is determined by overall growth of
the Industry. An overall concern is pertaining to the pressure on the profitability. However, ITL has taken all
measures to reduce the Direct and Indirect cost. During the current year, the Tube and Pipe Manufacturing
Division is showing excellent growth in orders and inquiry due the overall growth of Industry. The advancement
of technology and strategic positioning of products is expected to give better results.
OUTLOOK:
In current year the Company is confident of growing much faster in comparison to economy & capital goods
industry looking to the present level of orders and enquiries for Manufacturing Division i.e. Bandsaw and Tube &
Pipe Manufacturing equipment are showing good sign of recovery.
ITL's outlook on over-seas markets and domestic market are positive on account of its strength on cutting edge
technology, cost and effective after sales services
Disclaimer:
This document is prepared by our research analysts and it does not constitute an offer or solicitation for the
purchase or sale of any financial instrument or as an official confirmation of any transaction. The information
contained herein is from publicly available data or other sources believed to be reliable but we do not represent that
it is accurate or complete and it should not be relied on as such. Firstcall Research or any of its affiliates shall not be
in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the
information contained in this report. Firstcall Research and/ or its affiliates and/or employees will not be liable for
the recipients’ investment decision based on this document.

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