3QFY2013 Result Update | Infrastructure

February 1, 2013

Ashoka Buildcon
Performance Highlights
Quarterly highlights Consolidated
Y/E March (` cr) Net sales Op. profit Net profit 3QFY13 431 82 13 3QFY12 353 69 20 2QFY13 305 79 24 % chg (yoy) 22.1 17.9 (35.3) % chg (qoq) 41.1 2.6 (47.3)

BUY
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Net Debt (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others Abs. (%) Sensex ABL Note:
#

`209 `268
12 Months

Infrastructure 1,092 2,045 0.5 279/187 5,977 10 19,781 5,999 ABDL.BO ASBL@IN

Source: Company, Angel Research

Ashoka Buildcon (ABL) posted 3QFY2013 results below our estimates, primarily due to a slowdown in execution in the E&C segment, one time equity raising expense and higher tax rate. Order book as of 3QFY2013 stood at `4,072cr (2.9x trailing E&C revenues), providing revenue visibility. We maintain our Buy rating on the stock. Decent execution, profitability disappoints: On the top-line front, ABL reported consolidated revenues of `431cr in 3QFY2013, an increase of 22.1% yoy against our estimate of `522cr. During the quarter, the E&C segments revenue grew by 21.1% yoy to `364cr (including other income) and was lower than our estimate of `405cr. On the EBITDAM front, ABLs margin came in at 18.9%, 400bp lower than our estimate of 23%, owing to one-time equity raising expense of `11.8cr during the quarter and lower-than-expected revenue growth. At the earnings front, ABLs PAT declined by 35.3% yoy to `13cr against our estimate of `54cr, owing to lower-than-expected performance at operating level and higher tax rate (69.4%) during the quarter. Outlook and valuation: ABL has a robust order book of `4,072cr (2.9x trailing E&C revenues), which lends revenue visibility. Although a slowdown in order awarding by NHAI in road sector has been witnessed in 9MFY2013, ABL expects ordering activity to improve going ahead. ABLs subsidiary Ashoka Concessions Ltd has received its first tranche of `240cr from SBI-Macquarie in January 2013. ABL expects to get environment clearance by March end, post which it would commence construction activity for Cuttack Angul project. We have valued ABL on an SOTP basis to arrive at a target price of `268, which implies an upside of 28% from the current levels.

67.4 18.4 0.0 14.1 1yr 13.5 6.5 3yr 22.4 #

3m 6.6 (3.6) listing in Oct 2010

Key financials (Consolidated)

Y/E March (` cr) Net Sales % chg Adj.Net Profit % chg EBITDA (%) FDEPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x) OB/sales(x) Order inflow % chg
Source: Company, Angel Research

FY2011 1,303 63.8 101 25.4 19.2 37.7 5.5 1.3 14.9 9.2 1.8 9.5 3.6 4,310 219.8

FY2012 1,500 15.1 125 23.8 21.7 22.6 9.2 1.1 12.9 6.7 1.9 8.6 3.3 1,800 (58.2)

FY2013E 1,866 24.4 134 7.7 22.5 24.3 8.6 1.0 12.3 3.5 2.3 10.3 3.1 2,264 25.8

FY2014E 2,131 14.2 149 10.9 22.5 27.0 7.7 0.9 12.1 2.8 2.1 9.2 3.1 2,847 25.8

Viral Shah
022-39357800 Ext: 6842 viralk.shah@angelbroking.com

Please refer to important disclosures at the end of this report

Ashoka Buildcon | 3QFY2013 Result Update

Exhibit 1: 3QFY2013 performance (Consolidated)

Y/E March (` cr) Income from operations Total expenditure Operating profit OPM (%) Interest Depreciation Non operating income Nonrecurring items/Dividend from SPV's Profit Before tax Tax PAT Share of Profits/ (Losses) of Asso. Share of Profits/ (Losses) of MI PAT after MI and Share of Assoc. PAT (%) FDEPS (`)
Source: Company, Angel Research

3QFY13 431 349 82 18.9 34 27 3 23 16 7 (1) (7) 13 2.9 2.3

3QFY12 353 284 69 19.6 27 29 11 24 11 13 2 (4) 20 5.5 3.5

% chg(yoy) 22.1 23.1 17.9 (67)bp 24.3 (5.7) (72.2) (3.7) (45.1) (35.3) (260)bp (35.3)

2QFY13 305 226 79 26.0 34 26 5 24 9 15 2 (7) 24 7.9 4.3

% chg(qoq) 41.1 54.7 2.6 (711)bp (1.6) 6.7 (30.4) (2.2) (51.7) (47.3) (492)bp (47.3)

9MFY2013 1,202 939 263 21.9 106 85 17 88 42 47 10 (21) 78 6.5 14.1

9MFY2012 1,028 801 227 22.1 75 84 21 89 30 59 2 (7) 69 6.7 12.4

% chg(yoy) 17.0 17.3 15.9 (20)bp 41.3 1.6 (20.2) (0.7) 38.9 (20.7) 13.2 (22)bp 13.2

Exhibit 2: Segmental break-up

Particulars Construction segment BOT segment Total Income Construction segment BOT segment EBITDA Construction segment (%) BOT segment (%) EBITDAM (%) Construction segment BOT segment Financial expenses Construction segment BOT segment Depreciation & Amortisation Construction segment BOT segment PAT (after MI)
Source: Company, Angel Research

3QFY13 364 70 434 44 52 97 12 74 22 9 25 34 7 20 27 4 9 13

3QFY12 300 66 367 42 41 83 14 62 23 11 16 27 8 21 29 16 3 20

% chg 21.1 6.1 18.3 5.4 27.5 16.3 (181) bp 1248 bp (39) bp (17.8) 51.9 24.2 (6.1) (5.6) (5.7) (74.4) (35.3)

2QFY13 240 70 310 31 53 84 13 76 27 9 25 34 7 19 26 10 14 24

% chg 51.4 1.0 40.1 41.0 (0.9) 14.8 (89)bp (143) bp (490) bp (5.0) (0.4) (1.6) 1.4 8.6 6.6 (57.7) (40.1) (47.3)

9MFY2013 999 220 1,219 129 162 292 13 74 24 27 79 106 21 64 85 40 38 78

9MFY2012 855 195 1,050 109 140 249 13 72 24 26 50 76 21 63 84 43 26 69

% chg 16.9 12.7 16.1 18.3 16.0 17.0 16 bp 206 bp 18 bp 5.6 59.0 40.9 1.6 1.6 1.6 (7.9) 48.6 13.2

February 1, 2013

Ashoka Buildcon | 3QFY2013 Result Update

Exhibit 3: 3QFY2013 Actual vs Angel estimates

Parameter (` cr) Revenue EBITDA Interest PAT
Source: Company, Angel Research

Estimates 522 120 36 54

Actual 431 82 34 13

Variation (%) (17.4) (32.1) (6.3) (76.6)

Execution disappoints
On the top-line front, ABL reported consolidated revenues of `431cr in 3QFY2013, an increase of 22.1% yoy but lower than our estimate of `522cr. This was mainly on account of slower execution pace in the under-construction projects. During the quarter, the E&C segments revenue grew by 21.1% yoy to
`364cr (including other income) but was lower than our estimate of `405cr. The BOT segment revenues came in at `70cr (including other income) in 3QFY2013. Going forward, the management expects its under-construction projects (a) Sambalpur-Baragarh, (b) Belgaum-Dharwad and (c) Dhankuni-Kharagpur to drive the companys E&C revenue growth. On the back of healthy order book and strong execution pipeline we estimate ABL to report a revenue growth of 24.4% and 14.2% in FY2013 and FY2014 respectively.

Exhibit 4: Decent show on top-line front

500 450 400 350 300 250 200 150 100 388 287 353 468 466 305 431 50 0 1QFY12 2QFY12 3QFY12 4QFY12 Net Sales (` cr, LHS) 1QFY13 2QFY13 3QFY13 Growth (yoy %, RHS) 38.9 56.8 49.3 (22.4) 70.0 20.1 22.1 60.0 50.0 40.0 30.0 20.0 10.0 (10.0) (20.0) (30.0)

6.5

Source: Company, Angel Research

February 1, 2013

Ashoka Buildcon | 3QFY2013 Result Update

BOT toll revenue

On the toll collection front, for 3QFY2013, ABL witnessed 66.2% yoy/8.4% qoq growth. Toll collections at Dhankuni Kharagpur and Jaora Nayagaon (third sections toll collection had commenced in 4QFY2012) projects contributed to the growth. Further, the quarter saw the commencement of toll collection at the Pimpalgaon-Nashik-Gonde project.

Toll collections: During the quarter, ABL started partial toll collection on October 2, 2013 for Pimpalgaon-Nashik-Gonde project and has reported toll collection of `9cr for 3QFY2013. The company expects to complete the project by 4QFY2013 and expects a toll collection of `0.4cr/day from the project post completion. For the Dhankuni-Kharagpur project, ABL is expecting toll collection to increase by ~30-33% (owing to upward toll revision) post completion of structures by June 2013. Exhibit 5: Road BOT project-wise toll revenue growth (` cr)
Project Name Indore -Edalabad Ahmednagar-Aurangabad WaingangaBridge DewasBypass KatniBypass Pune-Shirur$ Nagar -Karmala^ Jaora -Nayagaon** Bhandara Belgaum Dharwad # Durg Dhankuni- Kharagpur@ Pimpalgaon-Nashik-Gonde Others * Total
Source: Company, Angel Research; Note:
$

3QFY13 17 4 6 6 5 5 3 28 12 15 14 38 9 5 166

3QFY12 16 4 6 5 5 5 6 16 12 13 12 100

% chg 1.7 2.5 (0.5) 21.9 1.7 (0.4) (53.1) 72.0 (1.6) 14.8 (59.0) 66.2

2QFY13 16 4 5 5 4 5 6 27 11 14 14 37 4 153

% chg(qoq) 5.4 7.6 11.9 8.2 7.4 5.7 (49.5) 3.9 5.5 1.3 6.4 2.9 11.2 8.4

9MFY2013 50 12 16 17 14 16 15 82 34 44 42 115 9 18 485

9MFY2012 49 12 15 14 14 15 19 42 32 35 35 284
#

% chg(yoy) 3.2 (3.6) 6.5 16.9 (2.9) 5.8 (20.3) 93.6 4.6 27.0 (47.3) 71.0
Toll collection
**

Toll collection disturbed in 3QFY2011 and 4QFY2011, Toll on one toll plaza discontinued,

adjusted in Capital WIP, Toll collection started from May 2011, *Others include Anawali Kasegaon, Dhule Bye pass, Nashirabad & Sherinala, second section started in May 2011 and that on the third section started on February 15, 2012

Toll on the

Under-construction projects
PNG project: ABL has completed 88% of construction work on the project as on 3QFY2013 and also started collecting partial tolling from October 2, 2012. Sambalpur Baragarh project: 37% construction is complete on the project. Cuttack Angul project: The concession agreement had been signed on March 15, 2012. Debt tied up for the project amounts to `801cr with Axis Bank. Belgaum Dharwad: The company has completed 60% of EPC work of the total project. The project is expected to get commissioned by 3QFY2014. Dhankuni Kharagpur: The company has completed 20% of EPC as on 3QFY2013 and expects to complete critical bridge over Roopnarayan River by 1QFY2014.

February 1, 2013

Ashoka Buildcon | 3QFY2013 Result Update

Lower EBITDAM dents PAT growth

On the EBITDAM front, ABLs margin came in at 18.9%, although its 400bp lower than our estimate of 23%. Segment wise, E&Cs EBITDAM stood at 12% and BOTs EBITDAM stood at 74%. EBITDA margins were lower mainly on account of one-time equity raising expense of `11.8cr during the quarter and lower-than-expected revenue growth. At the earnings front, ABLs PAT declined by 35.3% yoy to `13cr against our estimate of `54cr. This was mainly on account of lower-than-expected operating performance and a higher tax rate. The company has provided for an expense of `7cr against the pending income tax litigation which resulted in a higher tax rate of 69.4% during the quarter. Exhibit 6: EBITDAM trend
120 100 80 60 40 91 67 69 94 79 82 20 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 EBITDA (` cr) EBITDAM (%, RHS) 102 23.5 23.3 19.6 20.0 22.0 26.0 18.9 30.0 25.0 20.0 15.0 10.0 5.0 -

Exhibit 7: PATM decline owing to higher tax rate

50 45 40 35 30 25 20 15 10 5 10.0 8.3 5.9 5.5 2.9 32 17 20 47 41 24 13 8.8 7.9 12.0 10.0 8.0 6.0 4.0 2.0 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 PAT (` cr, LHS) PATM (%, RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Key highlights of the concall

In January 2013, ABLs subsidiary Ashoka Concessions Ltd (ACL) has received its first tranche of investment of `240cr from its private equity investor SBI Macquarie. The company has an order book of `4,072cr as of 3QFY2013. The transportation segment constitutes 91% and power T&D segment constitutes 9% of the total order book. The toll collection of Nagar Karmala project has been stopped from November 14, 2012 owing to premature termination of toll collection rights by PWD Maharashtra. The management expects to resolve the matter by 4QFY2013. The Nashirabad Toll Projects toll period has been extended by 7 years to November 2017 by Mumbai High Court while toll collected for the period November 3, 2010 to December 31, 2012 has been recognized as income pending final adjudication The company has declared its maiden dividend of `2/ share and has fixed February 12, 2013 as the record date for dividend.

February 1, 2013

Ashoka Buildcon | 3QFY2013 Result Update

Outlook and valuation

ABL has a robust order book of `4,072cr (2.9x trailing E&C revenues), which lends revenue visibility. Although a slowdown in order awarding by NHAI in road sector has been witnessed in 9MFY2013, ABL expects ordering activity to improve going ahead. ABLs subsidiary Ashoka Concessions Ltd has received its first tranche of `240cr from SBI-Macquarie in January 2013. The management expects to get environment clearance by March end, post which it would commence construction activity of the Cuttack Angul project. We have valued ABL on a SOTP basis by assigning 5x P/E to its standalone business and valued its BOT projects on NPV basis (it be noted that we have been conservative than the companys Management on revenue estimates [toll receipts] for under-construction projects, keeping an eye on revenue yield given the current competitive environment) to arrive at a target price of `268. We maintain our Buy rating on the stock.

Exhibit 8: SOTP valuation break-up

Particulars Segment Driver 90 Multiple 5 ABL's value (` cr) 448 448 Toll Toll Toll Toll Toll Toll Toll Toll Toll 14 14 67 75 11 175 42 50 104 100 100 100 50 100 100 100 100 100 14 14 67 37 11 175 42 50 104 514 Toll Toll Toll Toll Toll Toll Toll 59 112 305 116 110 375 180 51 100 26 100 51 37.7 100 30 112 79 116 56 142 180 715 (273) 890 ABL's value (`/ share) 86 86 3 3 13 7 2 34 8 10 20 98 6 21 15 22 11 27 34 137 (52) 268 Proportionate stake (%) 31.9 31.9 1.0 1.0 4.7 2.7 0.8 12.5 3.0 3.5 7.4 36.6 2.1 8.0 5.7 8.3 4.0 10.1 12.8 51.0 (19.5) 100.0 Standalone net debt NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% Basis P/E of 5x one year rolling forward earnings

Ashoka's construction business Construction Total Ashoka Concession Road BOT projects Pune Shirur Nagar Aurangabad Nagar Karmala Wainganga Sherinala Indore Edalabad Dewas Bye Pass Katni Bye Pass Cuttack-Angul Total ACL Road BOT Projects Bhandara Belgaum Dharwad Pimpalgaon-Nasik-Gonde Sambalpur Baragarh Durg Jaora-Nayagaon Dhankuni-Kharagpur Total Net debt Grand Total
Source: Company, Angel Research

February 1, 2013

Ashoka Buildcon | 3QFY2013 Result Update

Exhibit 9: ABL BOT projects details/assumptions

(` cr) Project Operational Projects Indore -Edalabad Ahmednagar-Aurangabad Wainganga Bridge Dewas Bypass Katni Bypass PuneShirur Nagar -Karmala Bhandara Dhule Bypass Nashirabad Sherinala Anawali Kasegaon Under cons./develop. JaoraNayagaon Durg PNG Belgaum Dharwad Sambalpur-Baragarh DhankuniKharagpur Total increment of 1% per annum MPRDC NHAI NHAI NHAI NHAI NHAI 340 368 452 454 408 840 3,611
#

Client Lane Kms

ABL's Stake (%)

TPC SPV

Equity

Debt

Grant/(Prem.)

Con. sign

Int. Rate Toll Inc Traffic Inc (%) (%) 7.0 15.0* 6.0 25.0* 5.0 18.0* 18.0* 6.0 21.0# 16.0 n.a. (%) 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0

MPRDC PWD MORTH PWD PWD PWD PWD NHAI PWD MORTH PWD PWD

407 168 26 40 35 216 160 377 12 8 7 22

87 100 50 100 100 100 100 51 100 100 100 5

165.0 103.0 41.0 61.0 71.0 161.0 50.0 535.0 6.0 15.0 14.0 7.4

64.7 36.0 14.5 25.0 28.0 55.0 31.5 150.0 0.6 14.5 7.0 3.3

55.6 67.0 26.5 36.0 43.0 106.0 18.5 375.0 5.4 0.5 7.1 4.1

45.0

22-Sep-01

11.9 10.0 9.5 13.8 14.0 11.0 11.3 11.0

- 18-Dec-06 - 16-Nov-98 - 31-Aug-01 - 19-Aug-02 10.0 7-May-03 19-Feb-99 18-Sep-07

- 28-Aug-97 No debt - 16-Nov-98 No debt - 23-Mar-99 No debt 1-Mar-04 No debt

15 51 26 100 100 100

835 587 1,691 694 1,142 2,200 8,378

273.0 201.0 215.0 332.0 2,240

562.0 386.0 479.0 810.0 6,084

(15.3)^ 20-Aug-07 (1.0) 6.2%

@

11.0 13.3 10.3 12.3 11.8 11.0

5.0 5.0 5.0 5.0 5.0 5.0

5.0 5.0 5.0 5.0 5.0 5.0

23-Jan-08 8-Jul-09 29-Jun-10 29-Jun-10 21-Jun-11

339.0 1,352.0

(31.0)^ (1.3)^ (126.1)^

450.0 1,750.0

Source: Company, Angel Research, Note:* Every three years,

Every five years, ^ 5% increment per annum,

6.19% of revenue payable as premium and

Exhibit 10: Angel EPS forecast vs consensus

Angel forecast FY2013E FY2014E
Source: Company, Angel Research

Bloomberg consensus 24.9 29.3

Variation (%) (2.2) (7.8)

24.3 27.0

February 1, 2013

Ashoka Buildcon | 3QFY2013 Result Update

Investment arguments
Integrated business model: ABL is able to undertake all activities related to a BOT road projects in-house from tendering for the project to collection of tolls. ABLs integrated structure enables it to bid for a BOT project with confidence, given its ability to complete and operate projects on a profitable basis. It also allows capturing the entire value in the BOT development business, including EPC margins, developer returns and operation and maintenance margins. Road sector; opportunities galore: NHAI plans to award 9,500kms of road projects in FY2013 despite having awarded only ~560kms in the April-September period. Of these, it is targeting to award ~3,000kms on an EPC basis and the rest on BOT basis. Going ahead, we believe there is fair amount of awarding remaining from NHAIs end (~21,000km), state projects, expressways and mega highways which would provide humungous opportunities for road-focused players such as ABL.

Concerns
Interest rate risks: The inherent nature of BOT projects requires high leverage. Going by the thumb rule, most road BOT projects have a debt-equity blend of 70:30. Hence, the companys business model is vulnerable to interest rate fluctuations, and any hike in interest rates could increase its interest costs. Traffic growth risks: Revenue from BOT toll-based projects is directly affected by traffic growth. Companies bid for projects assuming long-term traffic growth patterns, which may be higher/aggressive than actual traffic growth. This aberration in estimates could result in lower returns for companies. Moreover, any economic slowdown could impact our estimates. The thumb rule for traffic growth is a factor of 0.8-0.9x of real GDP growth. Therefore, we have conservatively factored in 5% traffic growth in ABLs BOT projects. Commodity risks: Prices of commodities like cement, steel and bitumen play an important role in shaping EBITDAM. We have factored in a flat EBITDAM for ABL for the C&EPC and BOT segments owing to inclusion of escalation clause while estimating costs and due to the integrated business model of ABL. However, if the movement in the prices of these commodities is higher than estimates, it would have a negative impact on the companys EBITDAM.

February 1, 2013

Ashoka Buildcon | 3QFY2013 Result Update

Exhibit 11: Recommendation summary

Company ABL CCCL IRB Infra ITNL IVRCL JP Assoc. L&T NCC Punj Lloyd Sadbhav Simplex In. Unity Infra CMP 209 15 117 199 34 83 47 54 127 185 40 TP Rating FY12 268 Buy - Neutral 164 Buy 225 Accu. - Neutral 100 Buy - Neutral 168 Buy 251 Buy 59 Buy 1,500 2,048 3,133 5,606 6,178 Top-line (` cr) FY13E 1,866 2,262 3,843 6,564 4,249 2,131 2,522 4,212 7,054 6,897 19.2 22.6 11.0 (0.5) 15.9 14.9 12.2 25.6 5.7 11.1 11.9 11.5 2.4 0.6 4.8 1.4 2.8 9.3 EPS (`) 24.3 1.5 16.8 26.3 0.3 3.7 63.2 3.1 1.8 7.2 23.2 13.3 27.0 2.7 17.8 29.0 3.3 4.6 75.1 4.1 3.2 8.7 31.3 15.0 9.3 9.3 6.5 9.2 7.9 7.8 P/E 8.6 10.4 7.0 7.6 22.8 24.3 15.1 30.1 17.6 8.0 3.0 7.7 5.8 6.6 6.9 10.3 18.3 20.4 11.4 16.9 14.6 5.9 2.6 OB/ 2.9 2.2 2.9 1.8 5.0 2.7 3.4 2.3 2.9 2.4 2.2 FY14E CAGR (%) FY12 FY13E FY14E CAGR (%) FY12 FY13E FY14E Sales(x)

136.8 57.7 110.3 (2.8) 17.3 8.1 23.9 71.4 33.5 7.8 19.7 (3.5) 13.6 31.7 10.2 3.5 2.8

12,853 13,842 15,863 53,171 60,666 69,525 5,250 2,676 6,010 1,973 5,947 2,344 6,906 2,180 6,569 2,804 8,053 2,455

1,535 1,788 Buy

14.3 64.3

- Neutral 10,557 11,892 13,116

15.8 18.1 11.5 14.0

Source: Company, Angel Research

Exhibit 12: SOTP break-up for coverage universe

Company ABL CCCL IRB Infra ITNL IVRCL JP Assoc. L&T NCC Punj Lloyd Sadbhav Simplex In. Unity Infra Core Const. ` 86 16 52 74 17 27 1,351 25 64 70 251 52 % to TP 32 100 32 33 46 27 76 57 100 41 100 88 ` 30 Real Estate % to TP 30 ` 182 113 121 7 99 7 Road BOT % to TP 68 69 54 16 59 12 Invst. In Subsidiaries ` 4 20 437 % to TP 3 54 24 ` 30 43 12 Others % to TP 13 43 27 Total ` 268 16 164 225 37 100 1,788 44 64 168 251 59

Source: Company, Angel Research

February 1, 2013

Ashoka Buildcon | 3QFY2013 Result Update

Profit & loss statement (Consolidated)

Y/E March (` cr) Net Sales Other operating income Total operating income % chg Total Expenditure R.M. consumed Construction expenses Employee expenses SG&A EBITDA % chg (% of Net Sales) Depreciation & Amortisation EBIT % chg (% of Net Sales) Interest & other Charges Other Income (% of PBT) Share in profit of Associates Recurring PBT % chg Extraordinary Expense/(Inc.) PBT (reported) Tax (% of PBT) PAT (reported) Add: Share of earnings of asso Less: Minority interest (MI) Prior period items PAT after MI (reported) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) % chg
previous year numbers

FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E 518 518 60.6 354 58 265 16 16 164 33.0 31.6 64 100 41.9 19.2 65 15 30.0 50 23.8 50 12 23.3 38 3 35 35 5.2 6.7 5.9 5.9 5.2 796 796 53.5 581 358 184 21 18 214 30.6 26.9 66 148 48.8 18.6 49 19 15.8 118 135.9 118 32 27.1 86 6 80 80 130.8 10.1 13.8 13.8 133.2 1,303 1,303 63.8 1,052 396 593 33 29 251 17.0 19.2 69 182 22.6 13.9 69 25 17.9 137 16.6 107.2 30 42 141.0 (12) 8 2 (6) 101 25.4 7.7 37.7 37.7 172.4 1,500 1,500 15.1 1,175 401 700 43 31 325 29.7 21.7 85 240 32.2 16.0 114 26 17.1 152 10.5 152 45 29.8 107 9 (9) 125 125 23.8 8.3 22.6 22.6 (40.0) 1,866 1,866 24.4 1,446 513 830 56 47 420 29.2 22.5 121 299 24.4 16.0 154 32 18.0 177 16.4 177 64 36.0 113 (8) (30) 134 134 7.7 7.2 24.3 24.3 7.7 2,131 2,131 14.2 1,652 586 948 64 53 480 14.2 22.5 134 346 15.7 16.2 182 36 18.1 200 13.3 200 68 34.0 132 (5) (22) 149 149 10.9 7.0 27.0 27.0 10.9

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

February 1, 2013

10

Ashoka Buildcon | 3QFY2013 Result Update

Balance sheet (Consolidated)

Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Share App Money Reserves & Surplus Shareholders Funds Preference Capital Minority Interest Total Loans Deferred Tax Liability Other Current liability Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Bal of unutilised IPO money Investments Current Assets Inventory Debtors Cash Loans & Advances Current liabilities Net Current Assets Mis. Exp. not written off Total Assets
previous year numbers

FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E 59 5.0 268 331 16 24 723 2 1,095 749 259 491 373 91 306 67 35 69 135 165 141 1,095 58 404 462 81 1,122 3 1,669 791 330 461 814 149 638 196 182 85 175 393 245 1,669 63 0.3 830 893 111 1,283 2 2,289 1,389 368 1,020 673 10.9 139 815 241 285 60 229 371 445 2,289 55 14.9 964 1,034 63 1,707 1 2,045 4,850 2,076 450 1,626 2,682 205 861 277 275 50 259 524 337 4,850 55 1,098 1,154 33 3,207 1 8,045 12,440 3,726 571 3,155 8,667 215 1,032 353 343 26 311 629 403 12,440 55 1,248 1,303 11 3,307 1 7,886 12,509 3,826 705 3,121 8,509 230 1,311 407 409 32 463 662 649 12,509

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

February 1, 2013

11

Ashoka Buildcon | 3QFY2013 Result Update

Cash flow statement (Consolidated)

Y/E March (` cr) Profit before tax Depreciation Change in Working Capital Less: Other income Direct taxes paid Cash Flow from Operations (Inc.)/ Dec. in Fixed Assets (Inc.)/ Dec. in Investments Other income Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances
previous year numbers

FY2009 50 68 37 (15) (12) 128 (370) (19) 15 (374) 211 6 216 (30) 99 69

FY2010 118 71 (89) (19) (32) 50 (483) (58) 19 (522) (1) 399 89 487 15 69 85

FY2011 30 38 (224) (25) (42) (223) (457) 9 25 (423) 5 161 456 622 (24) 85 60

FY2012 152 82 98 (26) (45) 260 (2,696) (66) 26 (2,736) (8) 424 2,049 2,465 (10) 60 50

FY2013E FY2014E 177 121 (90) (32) (64) 113 (7,636) (10) 32 (7,614) 1,500 5,977 7,477 (24) 50 26 200 134 (240) (36) (68) (10) 59 (15) 36 80 100 (163) (63) 6 26 32

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

February 1, 2013

12

Ashoka Buildcon | 3QFY2013 Result Update

Key Ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Dupont Analysis EBIT margin Tax retention ratio Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) ROCE (Pre-tax) Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) Wcap cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage
previous year numbers

FY2009 FY2010 35.2 14.2 3.5 3.5 11.0 1.6 5.9 5.9 14.7 59.1 19.2 76.7 0.6 8.6 8.0 2.0 9.8 10.3 15.7 11.1 0.8 55 24 128 151 2.0 4.0 1.5 15.1 12.4 2.6 2.8 10.2 1.3 13.8 13.8 16.9 79.5 18.6 72.9 0.6 8.3 3.9 2.1 17.6 10.7 20.8 20.3 1.0 60 50 175 181 2.2 4.8 3.0

FY2011 FY2012E 5.5 8.3 1.3 1.8 9.5 1.0 37.7 37.7 25.2 161.7 13.9 (41.0) 0.7 (3.9) (2.4) 1.8 (6.7) 9.2 15.7 14.9 1.2 61 65 132 183 1.4 4.9 2.6 9.2 4.2 1.1 1.9 8.6 0.6 22.6 22.6 50.2 187.3 16.0 70.2 0.4 4.8 5.4 1.5 3.9 6.7 13.1 12.9 0.9 63 68 139 191 1.6 5.1 2.1

FY2013E FY2014E 8.6 5.5 1.0 2.3 10.3 0.3 24.3 24.3 38.0 208.9 16.0 64.0 0.2 2.2 4.0 2.2 (1.7) 3.5 10.2 12.3 0.6 62 60 146 178 2.8 7.6 1.9 7.7 4.5 0.9 2.1 9.2 0.4 27.0 27.0 46.3 235.9 16.2 66.0 0.2 1.8 3.7 2.6 (3.1) 2.8 9.0 12.1 0.6 65 64 143 196 2.5 6.8 1.9

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

February 1, 2013

13

Ashoka Buildcon | 3QFY2013 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies 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. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Ashoka Buildcon No No No No

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

Ratings (Returns):

Buy (> 15%) Reduce (-5% to -15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

February 1, 2013

14