JP Associates reported a 62.6% year-over-year increase in net sales to ₹3,071 crore for the second quarter of FY2011, driven by strong growth in the construction and cement segments. However, operating margins declined due to higher input costs, impacting operating profit growth. Net profit declined 16.3% year-over-year to ₹115.5 crore due to lower margins and a higher tax provision. While top-line beat estimates, bottom-line missed forecasts due to margin pressure. The brokerage maintains a 'Buy' rating based on expectations of strong growth across JAL's businesses in the coming years.

1. Please refer to important disclosures at the end of this report 1
Y/E March (` cr) 2QFY11 2QFY10 % chg (yoy) 1QFY11 % chg (qoq)
Net Sales 3,071 1,889 62.6 3,214 (4.5)
Operating Profit 759.0 520.4 45.9 682.4 11.2
Net Profit 115.5 138.0 (16.3) 148.7 (22.3)
Source: Company, Angel Research
JP Associates (JAL) reported robust yoy top-line growth of 62.6% for 2QFY2011
driven by strong revenue growth in the construction (73%) and cement (43%)
segments. JAL’s recurring earnings for the quarter de-grew 16.3% mainly on
account of the plunge in margins and higher tax provision. We expect JAL to
emerge as one of the fastest growing conglomerates in the cement, power and
real estate space going ahead. Hence, we maintain a Buy on the stock.
Top-line beats estimates; recurring earnings disappoint owing to margin pressure:
JAL reported robust top-line growth of 62.6% yoy to `3,071cr (`1,889cr),
significantly ahead of our estimates of 33.1% growth, aided by the strong 73%
and 43% growth in construction and cement revenues, respectively. However, EBIT
margins of the cement segment played spoil-sport and impacted overall OPMs,
which came in at 24.7% as against our estimate of 27.2%. Interest and
depreciation costs were in line with our estimates. Bottom-line de-grew 16.3% to
`115.5cr (`138cr) mainly due to higher tax provision for the quarter (61%).
Outlook and Valuation: We expect JAL to become one of the fastest growing
conglomerates and post top-line and bottom-line CAGR of 33.9% and 31.5%
respectively, over FY010-12. We have valued JAL’s cement business at 6.5x
EV/EBITDA (`62.7/share) and construction division at FY2012E target EV/EBITDA
multiple of 8.5x (`78.5/share). We have valued its power and real estate
businesses on market cap basis (giving 20% holding company discount)
contributing `81.8/share to our target price. The treasury shares (`11.1/share)
have been valued at the current market price, whereas net debt is accounted for
on a per share basis in our valuation at `65.1. We maintain a Buy on the stock
with an SOTP target price of `169, implying an upside of 35% from current levels.
Key Financials (Standalone)
Y/E March (` cr) FY2009 FY2010 FY2011E FY2012E
Net Sales 6,148 10,355 14,475 18,643
% chg 43.8 68.4 39.8 28.8
Adj. Net Profit 897 989 1,158 1,749
% chg 47.1 10.2 17.1 51.0
FDEPS (`) 4.2 4.7 5.4 8.2
EBITDA Margin (%) 33.6 27.9 26.2 27.6
P/E (x) 19.5 26.8 22.9 15.2
RoAE (%) 15.9 13.0 12.5 16.3
RoACE (%) 10.3 10.2 10.5 12.5
P/BV (x) 2.6 3.1 2.7 2.3
EV/Sales (x) 6.0 4.0 3.2 2.6
EV/EBITDA (x) 17.8 14.3 12.1 9.3
Source: Company, Angel Research
BUY
CMP `125
Target Price `169
Investment Period 12 Months
Stock Info
Sector
Bloomberg Code
Shareholding Pattern (%)
Promoters 45.9
MF / Banks / Indian Fls 16.2
FII / NRIs / OCBs 25.1
Indian Public / Others 12.7
Abs. (%) 3m 1yr 3yr
Sensex 12.6 32.1 3.2
JAL 5.2 (3.8) 6.7
2
20,356
6,118
JAIA.BO
JPA@IN
26,495
1.63
168/108
1,783,440
Infrastructure
Avg. Daily Volume
Market Cap (` cr)
Beta
52 Week High / Low
Face Value (`)
BSE Sensex
Nifty
Reuters Code
Shailesh Kanani
022-40403800 Ext:321
shailesh.kanani@angelbroking.com
Nitin Arora
022-40403800 Ext:314
nitin.arora@angelbroking.com
JP Associates
Performance Highlights
2QFY2011 Result Update | Infrastructure
November 1, 2010

2. JP Associates | 2QFY2011 Result Update
November 1, 2010 2
Exhibit 1: 2QFY2011 Performance (Standalone)
Y/E March (` cr) 2QFY11 2QFY10 % chg (yoy) 1QFY11 % chg (qoq) 1HFY11 1HFY10 % chg (yoy)
Net Sales 3,071 1,889 62.6 3,214 (4.5) 6,286 4,006 56.9
Total Exp. 2,312 1,368 69.0 2,532 (8.7) 4,844 2,894 67.4
Op. Profit 759 520 45.9 682 11.2 1,441 1,112 29.6
OPM (%) 24.7 27.5 0.0 21.2 0.0 46 27.8 -
Int. 323 259 25.0 328 (1.4) 651 481 35.5
Dep. 153 110 38.8 150 1.6 303 212 43.1
Non Op. Inc. 7 23 0.0 3 103.3 10 24 (57.6)
Nonrecurring items - 732 (100.0) 367 (100.0) 367 997 -
PBT 290 907 (68.1) 575 (49.6) 864 1,441 (40.0)
Tax 174 37.0 371 59 196.4 233 79 193.9
Reported PAT 116 870 (86.7) 516 (77.6) 632 1,361 (53.6)
PAT (%) 3.8 46.1 - 16.1 - 10.0 34.0 -
Adj. PAT 116 138 (16.3) 149 (22.3) 264 364 (27.4)
Adj.PAT (%) 3.8 7.3 - 4.6 - 4.2 9.1 -
Adj. EPS (`) 0.5 0.6 (16.3) 0.7 (22.3) 1.2 1.7 (27.4)
Source: Company, Angel Research
Exhibit 2: 2QFY2011 Actual v/s Estimates
(` cr) Estimates Actual Variation (%)
Revenues 2,427.0 3,071.2 26.5
EBITDA Margin (%) 27.2 24.7 (248.6)
PAT 118.0 115.5 (2.1)
Source: Company, Angel Research

3. JP Associates | 2QFY2011 Result Update
November 1, 2010 3
Exhibit 3: Segmental performance (standalone)
Y/E March (` cr) 2QFY11 2QFY10 % chg 1HFY11 1HFY10 % chg
Segment Revenue
Cement & Cement Products 1,208 845 43.0 2,650 1,793 47.8
Construction 1,571 908 73.0 3,008 1,959 53.6
Power 12 14 (15.5) 23 26 (9.4)
Hotel/Hospitality and Golf Course 37 29 30.6 74 62 19.3
Real Estate 323 88 265.5 689 184 275.4
Investment 4 24 0.0 7 24 0.0
Others 1 9 0.0 5 13 0.0
Unallocated 33 32 2.4 63 50 24.5
Less: Inter-Segmental Performance 115 37 212.7 227 82 178.3
Total Sales Income 3,075 1,913 60.8 6,293 4,029 56.2
Segment Results
Cement & Cement Products 188 220 (14.5) 475 522 (9.1)
Construction 328 180 82.6 433 363 19.2
Power 8 14 (41.4) 15 21 (28.1)
Hotel/Hospitality and Golf Course (2) (6) (73.1) (3) (3) (18.5)
Real Estate 133 29 356.0 289 74 291.1
Investment 4 24 0.0 7 24 (69.1)
Others 1 4 0.0 2 2 0.0
Exceptional item : Profit on Sale of Shares - 942 513 1,316
Total PBIT 661 1,406 (53.0) 1,730 2,318 (25.4)
Less: Interest Expense 323 259 25.0 651 481 35.5
Less: Exceptional Item - 0.0 - 102 0.0
Less: Unallocable Expense 48 31 55.3 70 78 (11.0)
PBT 290 1,117 (74.1) 1,010 1,658 (39.1)
PBIT Margin (%) bp chg. bp chg.
Cement & Cement Products 15.6 26.1 (1,048) 17.9 29.1 (1,119)
Construction 20.9 19.8 110 14.4 18.5 (414)
Power 66.1 95.4 (2,925) 64.7 81.5 (1,681)
Hotel/Hospitality and Golf Course (4.1) (19.7) 1,564 (3.7) (5.5) 173
Real Estate 41.2 33.0 817 41.9 40.2 169
Investment 100.0 100.0 - 100.0 100.0 -
Others 62.4 42.7 31.0 16.9
Unallocated - 2,926.5 820.0 2,618.6
Capital Employed in Segment
Cement & Cement Products 13,538 10,837 24.9 13,538 10,837 24.9
Construction 3,104 1,916 62.0 3,104 1,916 62.0
Power 854 253 237.4 854 253 237.4
Hotel/Hospitality and Golf Course 479 509 (5.9) 479 509 (5.9)
Real Estate 2,188 806 171.6 2,188 806 171.6
Investment 5,652 4,770 18.5 5,652 4,770 18.5
Others 248 161 54.0 248 161 54.0
Unallocated 4,326 4,822 (10.3) 4,326 4,822 (10.3)
Total 30,388 24,074 26.2 30,388 24,074 26.2
Source: Company, Angel Research

4. JP Associates | 2QFY2011 Result Update
November 1, 2010 4
Segment-wise performance
Cement division
JAL’s cement division reported revenue growth of 43.0% yoy to `1,208cr (`845cr),
12.8% above our estimate of `1,071cr. The divisional EBIT margin came in at
15.6% (26.1%), which was mainly on account of higher input cost and decline in
realisations. JAL currently has an installed cement capacity of ~24MTPA and
1HFY2011 dispatch volumes stood at ~7.3mtpa. We expect the company to
achieve dispatch volumes of 14.6mtpa and top-line of `5,107cr for FY2011. This
is assuming average realisation of `3,877/tonne (gross) for FY2011, which implies
a 10% hike in the cement price in 2HFY2011 over 1HFY2011. For FY2012, we
have factored in volume growth of 27% to 18.5mtpa and realisation of
`4,071/tonne (gross) resulting in top-line of `6,803cr, a yoy jump of 33%.
Construction division
The construction division registered 73.0% yoy surge in revenues to `1,571cr
(`908cr) as against our expectation of `1,100cr. Divisional EBIT margin came in at
20.9% (19.8%), which were in line with our estimates. We highlight that
construction margins returned to normalised levels in 2QFY2011 after registering
disappointing 7% margins in 1QFY2011. The construction division has posted
volatile numbers over the last few quarters. For FY2011 and FY2012, we are
penciling top-line of `7,815cr and `9,910cr, respectively. On the operating front,
we are factoring in EBIT margin of 15.2% and 17.8% for FY2011 and FY2012,
respectively.
Real estate division
The real estate division reported 265.5% yoy revenue growth to `323.cr (`88.4cr)
in line with our expectation of `300.4cr. The divisional EBIT margin came in at
41.2% (33.0%), which were tad above our estimate of 40.1%.
Exhibit 4: Quarterly revenue trend
Source: Company, Angel Research
Exhibit 5: Quarterly EBITDA trend
Source: Company, Angel Research
38.3
48.3
62.9 63.0
58.4
113.8
60.5 70.2 62.6
-
20.0
40.0
60.0
80.0
100.0
120.0
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2QFY09
3QFY09
4QFY09
1QFY10
2QFY10
3QFY10
4QFY10
1QFY11
2QFY11
Sales (Rs cr, LHS) Growth (yoy %, RHS)
34.0
25.8
37.0
25.9
28.5 23.6
25.5
21.2
24.7
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
0
100
200
300
400
500
600
700
800
900
2QFY09
3QFY09
4QFY09
1QFY10
2QFY10
3QFY10
4QFY10
1QFY11
2QFY11
EBITDA (Rs cr, LHS) EBITDAM (%, RHS)

5. JP Associates | 2QFY2011 Result Update
November 1, 2010 5
Bottom-line weighed down by higher tax provision
JAL reported PBT of `290cr, which surpassed our estimates mainly on account of
robust top-line growth during the quarter. However, recurring earnings for the
quarter de-grew 16.3% mainly on account of the plunge in margins and higher tax
provision at 60.1% and was in line with our estimates.
Exhibit 6: Quarterly net profit trend
Source: Company, Angel Research
17.1
12.6 18.5
26.0
47.7
3.6
7.3
16.1
3.8
-
10.0
20.0
30.0
40.0
50.0
60.0
0
100
200
300
400
500
600
700
800
900
1,000
2QFY09
3QFY09
4QFY09
1QFY10
2QFY10
3QFY10
4QFY10
1QFY11
2QFY11
PAT (Rs cr, LHS) PATM (%, RHS)

6. JP Associates | 2QFY2011 Result Update
November 1, 2010 6
Outlook and Valuation
We expect JAL to become one of the fastest growing conglomerates and post top-
line and bottom-line CAGR of 33.9% and 31.5% respectively, over FY010-12. We
have valued JAL’s cement business at 6.5x EV/EBITDA (`62.7/share) and
construction division at FY2012E target EV/EBITDA multiple of 8.5x (`78.5/share).
We have valued its power and real estate businesses on market cap basis (giving
20% holding company discount) contributing `81.8/share to our target price. The
treasury shares (`11.1/share) have been valued at the current market price,
whereas net debt is accounted for on a per share basis in our valuation at `65.1.
We maintain a Buy on the stock with an SOTP Target Price of `169, implying an
upside of 35% from current levels.
Exhibit 7: SOTP Valuation
Business Segment Methodology ` cr `/share % to Target Price
Cement EV/EBIDTA (x) 6.5x EV/EBITDA 13,335 62.7 37.0
Construction EV/EBIDTA (x) 8.5x EV/EBITDA 16,698 78.5 46.3
Power Mcap of JPVL @ 20% holding company discount 7,964 37.5 22.1
Real Estate NAV/Mcap Jayppe InfraTech + Jaypee Greens 9,416 44.3 26.2
Hotels - 8x FY2012E Net Profit 148 0.7 0.4
Treasury Stock At CMP 2,366 11.1 6.6
Net Debt - Net Debt for Cement, Construction and Real Estate Business (13,904) (65.4) (38.6)
Total 36,025 169.4 100.0
Source: Company, Angel Research
Exhibit 8: Key Assumptions
FY2007 FY2008 FY2009 FY2010 FY2011E FY2012E
Cement Capacity 7.0 9.0 14.7 19.1 24.9 29.3
Cement Production 6.7 6.8 7.6 10.5 16.7 21.2
Cement Sales 6.2 6.2 7.0 9.2 14.6 18.5
Realisations /Ton 3,316 3,602 3,634 4,308 3,877 4,071
Source: Company, Angel Research
Exhibit 9: Angel EPS forecast v/s consensus
Angel Forecast Bloomberg Consensus Variation
FY2011E 5.4 5.6 3.7
FY2012E 8.2 6.9 (16.5)
Source: Company, Angel Research

7. JP Associates | 2QFY2011 Result Update
November 1, 2010 7
Investment Arguments
On schedule cement capacity expansion instills confidence: JAL is on its way to
become one of the leading players in the cement space following capacity
expansion from 9.0mtpa in FY2008 to 29.3mtpa in FY2012E. The capacity
expansion is on track and in line with management guidance. Cement contributed
44%, 35% and 38% to standalone top-line in FY2008, FY2009 and FY2010
respectively, and is expected to contribute 39.8% and 41.0% in FY2011 and
FY2012, respectively. We believe that the cement capacity size that JAL proposes to
set up would enable it to have substantial bargaining power, result in operating
leverage benefits and catapult JAL into the league of cement majors.
Exhibit 10: JAL's cement capacity vis-a-vis peers (mn/tonne)
Source: Company, Angel Research
Construction arm to log 33.2% CAGR over FY2010-12E: JAL is developing the
160km, 6-lane (extendable to 8 lanes) access controlled Yamuna expressway
between Noida and Agra. The Yamuna Expressway (YE) project also involves real
estate development to the tune of 530mn.sq.ft. The cost of YE is `9,739cr and has
a concession period of 36 years. Financial closure of the YE is done with 69% of
the TPC already put in (equity component of `1,250cr, IPO proceeds of `1,500cr
and debt of `4,477cr). Moreover, Jaypee Infratech is in possession of 96.5% of the
land required for construction of the highway, and work is on schedule. Thus, JAL’s
strong execution track record backed by in-place funding and acquired land
renders strong visibility to its construction arm.
Diversified play: JAL is a unique play on the ongoing infrastructure theme with a
bouquet of offerings in construction, cement, power and real-estate. Moreover, not
only does the company have a diversified set of offerings, but also enjoys scale
benefits in each of them. We believe that the company stands to benefit as the
infrastructure theme pans out going ahead.
48.9
27
30.4
15.8 14.0
5.4
29.3
-
10.0
20.0
30.0
40.0
50.0
60.0 Grasim(Incl.
Ultratech)
Ambuja
ACC
IndiaCements
MadrasCem
JKLakshmiCem
JPAssociates
FY09 FY10 FY11E FY12E

8. JP Associates | 2QFY2011 Result Update
November 1, 2010 8
Exhibit 11: Recommendation Summary
Company CMP TP Rating Top-line (` cr) EPS (`) *Adj. P/E OB/
FY10 FY11E FY12E CAGR (%) FY10 FY11E FY12E CAGR (%) FY10 FY11E FY12E Sales(x)
CCCL 78 - Neutral 1,976 2,397 2,891 21.0 5.0 5.0 6.7 16.2 15.8 15.7 11.7 1.9
Gammon India 201 - Neutral 4,489 5,575 6,607 21.3 8.4 10.0 12.1 20.0 11.5 9.7 8.0 2.9
HCC 62 - Neutral 3,629 4,146 4,900 16.2 1.3 1.6 1.9 19.0 17.9 15.2 12.7 4.8
IRB Infra 259 - Neutral 1,705 2,675 3,672 46.8 11.6 13.0 15.7 16.4 8.4 7.5 6.2 -
IVRCL 149 216 Buy 5,492 6,493 8,071 21.2 7.8 8.8 10.9 18.2 11.0 9.8 7.9 3.9
JP Assoc. 125 169 Buy 10,355 14,475 18,643 34.2 4.7 4.5 7.6 27.8 26.8 27.7 16.4 -
Punj Lloyd 123 156 Buy 10,448 9,756 12,402 9.0 (10.9) 5.6 11.2 - - 21.9 10.9 2.4
NCC 152 201 Buy 4,778 5,738 6,588 17.4 7.8 8.6 9.8 12.1 14.5 13.2 11.6 3.4
Sadbhav 1,449 1,702 Buy 1,257 1,621 1,986 25.7 43.0 77.4 89.8 44.4 14.1 7.9 6.8 5.3
Simplex In. 480 573 Buy 4,564 5,460 6,543 19.7 25.6 33.0 40.9 26.4 18.8 14.5 11.7 2.5
Patel Engg 370 565 Buy 3,191 3,693 4,297 16.0 28.4 30.8 32.7 7.3 9.2 8.5 8.0 2.5
Madhucon 143 173 Buy 1,388 1,737 2,164 24.9 6.2 7.3 9.1 21.6 10.6 9.0 7.2 2.6
L&T 2,081 - Neutral 37,035 44,047 55,519 22.4 47.4 54.9 68.7 20.4 33.7 29.1 23.3 2.8
ITNL 319 358 Accu. 2,403 3,480 6,071 59.0 17.7 21.8 25.9 20.8 18.0 14.6 12.3 6.7
Source: Company, Angel Research
Exhibit 12: SOTP break up
Company Core Const. Real Estate Road BOT Invst. In Subsidiaries Others Total
` % to TP ` % to TP ` % to TP ` % to TP ` % to TP `
CCCL 80 100 0 0 0 0 0 0 0 0 80
Gammon India 121 54 0 0 0 0 0 0 104 46 225
HCC 26 41 29 46 8 13 0 0 0 0 63
IRB Infra 118 43 0 0 150 55 5 2 0 0 273
IVRCL 162 75 0 0 0 0 54 25 0 0 216
JP Assoc. 79 46 44 26 0 0 0 0 47 28 169
Punj Lloyd 156 100 0 0 0 0 0 0 0 0 156
NCC 138 69 7 3 32 16 0 0 24 12 201
Sadbhav 862 51 0 0 840 49 0 0 0 0 1702
Simplex In. 573 100 0 0 0 0 0 0 0 0 573
Patel Engg 458 81 56 10 16 3 0 0 36 6 565
Madhucon 92 53 4 2 52 30 0 0 25 15 173
L&T 1542 76 0 0 0 0 482 24 0 0 2024
ITNL 159 44 0 0 151 42 0 0 48 13 358
Source: Company, Angel Research

9. JP Associates | 2QFY2011 Result Update
November 1, 2010 9
Profit & Loss Statement (Standalone)
Y/E March (` cr) FY2007 FY2008 FY2009 FY2010 FY2011E FY2012E
Net Sales 3,578 4,274 6,148 10,355 14,475 18,643
% chg 7.6 19.4 43.8 68.4 39.8 28.8
Total Expenditure 2,538 2,888 4,084 7,465 10,687 13,493
Net Raw Materials 1,179 1,374 2,153 4,290 6,152 7,830
Other Mfg costs 580 575 843 1,497 2,176 2,746
Personnel 161 255 331 453 637 802
Other 618 683 757 1,225 1,834 2,216
EBITDA 1,040 1,386 2,064 2,891 3,788 5,150
% chg 33.2 48.9 40.1 31.0 36.0
(% of Net Sales) 29.1 32.4 33.6 27.9 26.2 27.6
Depreciation& Amortisation 163 203 309 456 641 773
EBIT 877 1,183 1,755 2,435 3,147 4,376
% chg 34.8 48.4 38.7 29.2 39.1
(% of Net Sales) 24.5 27.7 28.5 23.5 21.7 23.5
Interest & other Charges 257 339 504 1,056 1,272 1,878
Other Income - - - - - -
(% of PBT)
Share in profit of Associates - - - - - -
Recurring PBT 620 844 1,251 1,379 1,874 2,498
% chg 36.0 48.3 10.2 35.9 33.3
Extraordinary Expense/(Inc.) - - - 719.5 513.2 -
PBT (reported) 620 844 1,251 2,098 2,388 2,498
Tax 205 234 354 390 716 750
(% of PBT) 33.1 27.7 28.3 18.6 30.0 30.0
PAT (reported) 415 610 897 1,708 1,671 1,749
PAT after MI (reported) 415 610 897 1,708 1,671 1,749
ADJ. PAT 415 610 897 989 1,158 1,749
% chg (45.7) 46.9 47.1 10.2 17.1 51.0
(% of Net Sales) 11.6 14.3 14.6 9.5 8.0 9.4
Basic EPS (`) 3.8 5.2 6.4 4.7 5.4 8.2
Fully Diluted EPS (`) 2.0 2.9 4.2 4.7 5.4 8.2
% chg 46.9 47.1 10.2 17.1 51.0

10. JP Associates | 2QFY2011 Result Update
November 1, 2010 10
Balance Sheet (Standalone)
Y/E March (` cr) FY2007 FY2008 FY2009 FY2010 FY2011E FY2012E
SOURCES OF FUNDS
Equity Share Capital 219 234 280 425 425 425
Preference Capital - - - - - -
Reserves& Surplus 2,654 4,364 6,418 8,076 9,535 11,061
Shareholder’s Funds 2,873 4,598 6,698 8,501 9,960 11,486
Minority Interest - - - - - -
Total Loans 5,516 8,306 13,106 17,909 21,563 25,040
Deferred Tax Liability 499 571 720 956 956 956
Total Liabilities 8,889 13,475 20,524 27,366 32,479 37,482
APPLICATION OF FUNDS
Gross Block 4,202 5,166 8,619 12,847 15,260 17,183
Less: Acc. Depreciation 1,280 1,455 1,801 2,228 2,869 3,643
Net Block 2,922 3,712 6,818 10,619 12,391 13,540
Capital Work-in-Progress 2,228 4,219 5,082 3,892 4,160 4,373
Deferred Tax Asset 9.3 11.5 30.4 32.8 32.8 32.8
Investments 1,779 3,225 4,465 5,576 6,112 6,463
Current Assets
Cash 1,430 1,815 2,909 3,054 2,262 3,482
Loans & Advances 1,099 2,222 3,308 3,995 7,527 9,694
Other 1,729 1,926 2,946 6,049 7,727 9,924
Current liabilities 2,308 3,655 5,037 5,853 7,733 10,028
Net Current Assets 1,950 2,308 4,126 7,245 9,783 13,071
Misc. Exp. not written off 0 0 1 1 1 1
Total Assets 8,888 13,475 20,524 27,366 32,479 37,482

11. JP Associates | 2QFY2011 Result Update
November 1, 2010 11
Cash Flow Statement (Standalone)
Y/E March (` cr) FY2007 FY2008 FY2009 FY2010 FY2011E FY2012E
Profit before tax 620 844 1,251 1,065 2,388 2,498
Depreciation 163 203 309 456 641 773
Change in Working Capital (294) (28) 1,709 2,725 3,330 2,069
Direct taxes paid 205 234 316 271 716 750
Cash Flow from Operations 872 841 (465) (1,474) (1,018) 453
Inc./ (Dec.) in Fixed Assets 1,890 2,955 3,324 3,077 2,681 2,136
Inc./ (Dec.) in Investments 222 1,446 891 (214) 536 351
Cash Flow from Investing 2,112 4,401 4,215 2,863 3,217 2,487
Issue of Equity 99 1,250 426 87 0 -
Inc./(Dec.) in loans 1,296 2,790 4,379 4,803 3,655 3,477
Dividend Paid (Incl. Tax) 91 134 81 176 212 223
Others 304 (40) (1,049) 231 - -
Cash Flow from Financing 1,000 3,946 5,772 4,482 3,443 3,254
Inc./(Dec.) in Cash (240) 386 1,093 145 (792) 1,220
Opening Cash balances 1,670 1,430 1,815 2,909 3,054 2,262
Closing Cash balances 1,430 1,815 2,909 3,054 2,262 3,482

12. JP Associates | 2QFY2011 Result Update
November 1, 2010 12
Key Ratios
Y/E March FY2007 FY2008 FY2009 FY2010 FY2011E FY2012E
Valuation Ratio (x)
P/E (on FDEPS) 32.9 23.9 19.5 26.8 22.9 15.2
P/CEPS 23.6 17.9 14.5 12.2 11.5 10.5
P/BV 4.8 3.2 2.6 3.1 2.7 2.3
Dividend yield (%) 0.6 0.8 0.8 0.9 0.8 0.8
EV/Sales 8.5 7.7 6.0 4.0 3.2 2.6
EV/EBITDA 29.4 23.8 17.8 14.3 12.1 9.3
EV / Total Assets 3.4 2.4 1.8 1.5 1.4 1.3
Per Share Data (`)
EPS (Basic) 3.8 5.2 6.4 4.7 5.4 8.2
EPS (fully diluted) 2.0 2.9 4.2 4.7 5.5 8.2
Cash EPS 5.3 6.9 8.6 10.2 10.9 11.9
DPS 0.7 1.0 1.0 1.1 1.0 1.0
Book Value 26.2 39.2 47.8 40.0 46.8 54.0
DuPont Analysis
EBIT margin 24.5 27.7 28.5 23.5 21.7 23.5
Tax retention ratio 66.9 72.3 71.7 81.4 70.0 70.0
Asset turnover (x) 0.5 0.4 0.4 0.5 0.5 0.6
ROIC (Post-tax) 7.9 8.9 8.6 9.5 8.1 9.5
Cost of Debt (Post Tax) 3.1 3.5 3.4 5.5 4.5 5.6
Leverage (x) 1.4 1.4 1.5 1.6 1.8 1.9
Operating ROE 14.6 16.6 16.3 15.9 14.7 17.0
Returns (%)
ROCE (Pre-tax) 9.9 10.6 10.3 10.2 10.5 12.5
Angel ROIC (Pre-tax) 16.8 18.7 17.6 14.8 13.5 15.7
ROE 14.4 16.3 15.9 13.0 12.5 16.3
Turnover ratios (x)
Asset Turnover (Gross Block) 0.9 0.9 0.9 1.0 1.0 1.1
Inventory / Sales (days) 73 76 66 64 70 73
Receivables (days) 45 44 48 58 69 72
Payables (days) 255 338 353 239 206 214
W.cap cycle (ex-cash) (days) 68 43 51 95 148 168
Solvency ratios (x)
Net debt to equity 1.4 1.4 1.5 1.7 1.9 1.9
Net debt to EBITDA 3.9 4.7 4.9 5.1 5.1 4.2
Interest Coverage 3.4 3.5 3.5 2.3 2.5 2.3

13. JP Associates | 2QFY2011 Result Update
November 1, 2010 13
Research Team Tel: 022 - 4040 3800 E-mail: research@angeltrade.com Website: www.angeltrade.com
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Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
Reduce (-5% to 15%) Sell (< -15%)