3QFY2012 Result Update | Capital Goods

February 1, 2012

Crompton Greaves
Performance Highlights
(` cr) Revenue EBITDA EBITDA margin (%) Adj. PAT 2QFY12 3,028 182.7 6.0 77.2 2QFY11 2,397 340.2 14.2 232.8 % chg (yoy) 26.3 (46.3) (816) (66.8) 1QFY12 % chg (qoq) 2,706 226.0 8.4 116.7 11.9 (19.2) (232.0) (33.8)

ACCUMULATE
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Capital Goods 9,234 0.7 297/107 2,487,060 2.0 17,301 5,236 CROM.BO CRG@IN

`144 `152
12 months

Source: Company, Angel Research

Crompton Greaves (CG) reported a weak performance for 3QFY2012, which was significantly below our estimates and street expectations. Although CG has posted decent numbers on the top-line front, the companys margin has dragged its earnings. We believe CG is still facing headwinds on the business front and the outlook remains bleak for near to medium term. We revise our FY2012 and FY2013 estimates to factor in slower than anticipated margin recovery and thereby downgrade the stock to Accumulate from Buy. Weakness continues: For 3QFY2012, CGs top line grew by 26.3% yoy to `3,028cr (`2,397cr), which was 14.3% higher than our estimate of `2,649cr. EBITDA margin witnessed a steep contraction of ~820bp yoy to 6.0%, significantly below our/street estimates, primarily driven by high raw-material costs. Led by margin dip, the reported PAT plunged by 66.8% yoy to `77.2cr (`232.8cr), 42.0% below our (below street) expectations of `133.6cr. Outlook and valuation: Given the latent potential in the company (strong global T&D player with diversified product offerings), our build in conservative assumptions (9.6% EBITDAM for FY2013 much below the historical average of 12.0-13.0%) and current undemanding valuations (stock at 30% discount to its five year trading PE multiple), we maintain our positive stance on the company. The pessimism surrounding the companys growth and profitability has clearly been factored in the stock price, given the PE multiple derating and underperformance of the stock. Thus, we believe from a long-term perspective, investors can start accumulating the stock. We have assigned a multiple of 14.0 to arrive at a target price of `152, implying an upside of 5.6% from current levels. Key Financials (Consolidated)
Y/E March (` cr) Operating Income % chg Adj. PAT % chg EBITDA (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 41.7 30.7 18.5 9.1

Abs. (%) Sensex Crom. Greav.

3m (1.0) 3.7

1yr (4.0) (47.4)

3yr (5.2) (21.1)

FY2010 9,141 4.6 825 47.3 14.0 12.9 11.2 3.7 44.4 43.7 1.0 6.9

FY2011 10,005 9.5 927 12.4 13.4 14.4 10.0 2.8 33.8 34.3 0.9 6.7

FY2012E 11,341 13.4 423 (54.3) 7.4 6.6 21.8 2.6 12.5 13.7 0.9 11.8

FY2013E 12,936 14.1 696 64.5 9.6 10.9 13.3 2.3 18.4 19.5 0.8 7.9

Shailesh Kanani
022-39357800 Ext:6829 shailesh.kanani@angelbroking.com

Hemang Thaker
022-39357800 Ext:6817 Hemang.thaker@angelbroking.com

Please refer to important disclosures at the end of this report

Crompton Greaves | 3QFY2012 Result Update

Exhibit 1: Quarterly performance (consolidated)

(` cr) Net Sales Other operating income Total income Stock adjustments Raw Material (% of total income) Employee Cost (% of total income) Other Expenses (% of total income) Total Expenditure EBITDA (EBITDA %) Interest Depreciation Other Income PBT PBT (%) Total Tax (% of PBT) Reported PAT (Afer MI) PAT Margins(%) Extra ordinary exp/(inc) Adj PAT EPS (`)
Source: Company, Angel Research 3QFY12 3QFY11 % chg (yoy) 2QFY12 % chg (qoq) 9MFY12 9MFY11 % chg (yoy)

3,028 0 3,028 406.3 1,723 70.3 392.9 13.0 322.7 10.7 2,845 182.7 6.0 11.2 62.7 15.5 124 4.1 49 39.2 77.2 2.5 0 77.2 1.2

2,397 0 2,397 42.3 1,447 62.1 300.5 12.5 266.7 11.1 2,057 340.2 14.2 3.9 46.7 12.0 302 12.6 70 23.3 233 9.7 0 232.8 3.6

26.3 26.3 19.1 8.2 30.8 21.0 38.3 (46.3) (8.2) 191.7 34.3 28.5 (58.8) (30.8) (66.8)

2,706 0 2,706 (184.7) 2,005 67.3 357.4 13.2 302.1 11.2 2,480 2,260 8.4 10.2 72.6 21.5 165 6.1 46 28.1 116.7 4.3 0

11.9 11.9 (14.0) 9.9 6.8 14.8 (91.9) 9.9 (13.7) (28.1) (24.5) 5.1 (33.8)

8,171 0 8,171 (50.4) 5,628 68.3 1,072.4 13.1 930.6 16.5 7,581 590.5 7.2 32.4 196.1 52.1 414.1 5.1 142.5 34.4 273 3.3 -

7,097 0 7,097 (110.4) 4,482 61.6 909.2 12.8 845.5 18.9 6,126 970.7 13.7 13.7 134.0 53.1 876.1 12.3 241.7 27.6 637 9.0 637.2 9.9

15.1 15.1 25.6 17.9 10.1 23.7 (39.2) 136.3 46.4 (1.9) (52.7) (41.0) (57.1)

(66.8) (66.8)

117 1.8

(33.8) (33.8)

273.3 4.3

(57.1) (57.1)

Exhibit 2: Actual vs Estimates

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

Actual 3,028 182.7 11.2 48.7 77.2

Estimates 2,649 251.6 10.5 52.0 133.6

Var (%) 14.3 (27.4) 7.0 (6.3) (42.2)

February 1, 2012

Crompton Greaves | 3QFY2012 Result Update

Exhibit 3: Segment-wise performance (Standalone)

Y/E March (` cr) Revenue Power Systems Consumer Products Industrial Systems Others Total EBIT Power Systems Consumer Products Industrial Systems Others Total Revenue mix (%) Power Systems Consumer Products Industrial Systems Others EBIT Margin (%) Power Systems Consumer Products Industrial Systems Others Total
Source: Company, Angel Research

3QFY12 754.2 503.3 388.6 1.9 1,648 81.1 59.3 56.7 0.2 197.2 45.8 30.5 23.6 0.1 10.7 11.8 14.6 10.4 12.0

3QFY11 % chg (yoy) 580.7 475.1 349.7 3.0 1,409 114.9 66.6 63.7 0.6 245.8 41.2 33.7 24.8 0.2 19.8 14.0 18.2 20.3 17.5 29.9 5.9 11.1 (35.9) 17.0 (29.5) (11.0) (11.0) (67.2) (19.8)

2QFY12 % chg (qoq) 598.8 480.1 376.6 3.0 1,459 67.2 54.3 59.1 0.3 180.8 26.6 21.3 16.7 0.1 11.2 11.3 15.7 9.6 12.4 26.0 4.8 3.2 (36.1) (26.9) 20.7 9.2 (4.0) (31.0) (91.2)

9MHFY12 1,922 1,527 1,127 8 4,583 219.9 188.9 173.3 0.8 583.0 41.9 33.3 24.6 0.2 11.4 12.4 15.4 10.8 12.7

9MFY11 1,735 1,470 1,005 14 4,225 312.3 214.0 198.4 2.2 726.8 41.1 34.8 23.8 0.3 18.0 14.6 19.7 15.5 17.2

% chg (yoy) 10.8 3.9 12.1 (46.1) 8.5 (29.6) (11.7) (12.6) (62.3) (19.8)

February 1, 2012

Crompton Greaves | 3QFY2012 Result Update

Exhibit 4: Segment-wise performance (Consolidated)

Y/E March (` cr) Revenue Power Systems Consumer Products Industrial Systems Others Total EBIT Power Systems Consumer Products Industrial Systems Others Total Revenue mix (%) Power Systems Consumer Products Industrial Systems Others EBIT Margin (%) Power Systems Consumer Products Industrial Systems Others Total
Source: Company, Angel Research

3QFY12 2,069 503.3 475.9 4.5 3,053 51.8 59.3 49.4 0.8 161.2 67.8 16.5 15.6 0.1 2.5 11.8 10.4 16.6 5.3

3QFY12 1,545 475.1 380.9 5.7 2,407 200.8 66.6 69.4 (14.4) 322.3 64.2 19.7 15.8 0.2 13.0 14.0 18.2 (253.2) 13.4

% chg (yoy) 33.9 5.9 24.9 (20.7) 26.8 (74.2) (11.0) (28.7) (105.2) (50.0)

2QFY12 % chg (qoq) 1,761 480 466 6 2,713 93.4 54.3 55.8 0.7 204.1 64.9 17.7 17.2 0.2 5.3 11.3 12.0 11.2 7.5 17.5 4.8 2.2 (22.3) 12.5 (44.6) 9.2 (11.4) 15.4 (21.0)

9MFY12 5,347 1,527 1,320 16 8,210 185.3 188.9 156.1 2.5 532.8 65.1 18.6 16.1 0.2 3.5 12.4 11.8 15.8 6.5

9MFY11 4,579 1,470 1,063 23 7,135 549.8 214.0 199.3 (11.8) 951.2 64.2 20.6 14.9 0.3 12.0 14.6 18.8 (51.1) 13.3

% chg (yoy) 2,069 503.3 475.9 4.5 3,053 51.8 59.3 49.4 0.8 161.2

Power Systems Pressure international business margins

witnessed

in

domestic

and

CG witnessed weakness in the power system segment in 3QFY2012, as was the case during the first half. On a consolidated basis, Power segment posted 33.9% yoy growth to `2,069cr (`1,545cr) while international power systems revenues grew by a strong 36.3% yoy (aided by the currency movement of 10-12%). The domestic power systems business posted strong growth of 30.0% yoy. On the EBIT margin front, the company is facing issues due to increased material cost and few large low margin orders completed during the quarter, which led to a dip in profitability. The segments EBIT margin declined by 1,050bp on a yoy basis and by 280bp on qoq basis. EBIT margin on international business continued to reel under pressure, as it posted losses on EBIT level with negative EBIT margins of 2.2%.

February 1, 2012

Crompton Greaves | 3QFY2012 Result Update

Consumer products (domestic business) Profitability marred by slowdown in economy and high interest rates
For the Consumer segment the revenue was flat for the quarter at `503.3cr (`475.1cr). Margin continues to decline as expected. EBIT margin for the quarter came in at 11.8% against 14.0% last time around, a yoy fall of 220bp and a sequential 50bp incline . Management indicated that company has gained market share in fan business from ~21.2% to ~22.6% and has retained its leadership position. Further, it also bagged a huge order of 3,00,000 fans from Tamil Nadu.

Industrial Systems growth from acquisition

In the industrial system segment, overall consolidated growth stood at of 24.9% to `475.9cr (`380.9cr). Domestic revenue increased by 11.1% to `388.6cr (`349.7cr). On the EBIT margin front, the company is facing issues due to heightened competition, pricing pressure and slowdown in industrial capex leading to a dip in profitability. EBIT margin declined by 839bp on a yoy basis and 110bp on qoq basis. Order book the silver lining: Consolidated order intake for 3QFY2012 was `4,170cr, a yoy jump of 66%, majorly contributed by power system segment. OB at the end of 3QFY2012 stood at ~`8,000cr. Going ahead, management expects better inflows in both domestic and International markets.

Exhibit 5: Decent show on Order inflow front

4,170 3,300

Exhibit 6: Order backlog provides decent visibility

7,116 7,169 6,078 6,400

9,000 7,500 6,000

(` cr)

2,732

2,564

2,512

4,200
2,029

3,154

4,900 3,500
(` cr)

2,800 2,100 1,400 700 -

1,704

2,260

4,500 3,000 1,500

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12

Source: Company, Angel Research

Source: Company, Angel Research

6,802

7,017

7,088

7,108

8000

February 1, 2012

Crompton Greaves | 3QFY2012 Result Update

Key takeaways from the Analyst meet

Management has maintained its top-line guidance of 1012% growth (we have penciled in 13.4%) and 8-10% EBITDA margins for FY2012 (we have penciled in 7.4%). Management has cited that Power System segment has witnessed some traction (especially from new products) and things are stabilizing in the T&D segment. Also Middle East region has seen some good order inflows, which were stalled earlier. Further, the recent cooling off seen in the key raw materials (read Copper) will benefit the company up to some extent but with lag effect (read 2HFY2013). Management commentary was optimistic on the Western Europe market for renewable energy projects namely, wind offshore and solar energy. Management guided strong prospects for Industrial segment and expects to gain strong footing in the industrial automation space through Emotrons acquisition. The acquisition will enable to make inroads in European markets, as the company has strong presence Germany and Sweden. This acquisition would also complement the companys Industrial product offerings and strengthen its presence across the Drive Solutions markets. CGs revenue stream is currently skewed largely to power sector with the consumer product and all other industries put together account for about 35% of the topline. Going ahead, the company aims to achieve a balance between power and industrial segments in equal proportion to diversify the business model. This diversification is targeted to be achieved by exploring opportunities in newer segments. On a long term basis, management plans to roll out a comprehensive cost reduction strategy. This would mainly include increased sourcing from low cost countries. Currently, 47% of the costs originates from low cost regions (countries) compared to 53% from high cost regions. Additional initiatives would include better supply chain management and cost restructuring at factories. Depreciation in standalone PnL has come down during the quarter due to sale of aircraft (at Book value). Further, the goodwill amortization during the quarter came in at 1.2mn for Emotron and US$350,000 for QEI. Further, the company also witnessed some respite on working capital front during the quarter as it liquidated inventory worth `250cr and booked some losses as well on this front.

February 1, 2012

Crompton Greaves | 3QFY2012 Result Update

Investment concerns
Business under stress: We believe CG's power and industrial segment are facing several headwinds on the international and domestic business fronts, as reflected in the pressure witnessed in its recent quarterly numbers, mainly due to increasing competitive pressures (taking a toll on profitability) and general slowdown faced by economies (impeding the revenue visibility). To put things in perspective, CG has a sizeable exposure in the currently troubled geographies of Europe (17% of FY2011 revenue) and North America (11.5% of FY2011 revenue). Likewise, CG's consumer segment, which had expanded admirably in the past is currently facing the brunt of inflationary pressures. Therefore, we believe CG's near-to-medium term performance would be under pressure. Outlook and valuation Given the latent potential in the company (strong global T&D player with diversified product offerings), our build in conservative assumptions (9.6% EBITDAM for FY2013 much below the historical average of 12.0-13.0%) and current undemanding valuations (stock at 30% discount to its five year trading PE multiple), we maintain our positive stance on the company. The pessimism surrounding the companys growth and profitability has clearly been factored in the stock price, given the PE multiple derating and underperformance of the stock. Thus, we believe from a long-term perspective, investors can start accumulating the stock. We have assigned a multiple of 14.0 to arrive at a target price of `152, implying an upside of 5.6% from current levels.

Change in estimates
We have revised our financial estimates based on the current results, overall sector outlook as well as managements guidance. We have marginally tweaked our topline estimates upwards to factor in good performance on the quarterly front and decent order inflow. On margin front we remain conservative and expect them to remain under pressure. We have also estimated higher working requirements on the back of high debtor levels on consolidated basis, though there has been improvement in 3QFY2012.

Exhibit 7: Revised estimates

FY2012E (` cr) Revenue EBITDA EBITDA (%) PAT EPS (`) Order Inflows
Source: Company, Angel Research

FY2013E Var. (%) 3.5 (14.1) (153) (18.5) (18.6) 19.1 Earlier estimates 12,406 1,500 12.1 980 12.2 9000 Revised estimates 12,936 1,238 9.6 696 10.9 10,706 Var. (%) 4.3 (17.5) (252) (29.0) (11.0) 19.0

Earlier estimates 10,962 984 9.0 519 8.1 8,000

Revised estimates 11,341 845 7.4 423 6.6 9,530

February 1, 2012

Crompton Greaves | 3QFY2012 Result Update

Exhibit 8: Angel EPS forecast

Angel forecast FY2012E FY2013E
Source: Company, Angel Research

Bloomberg consensus 8.8 11.3

Var. (%) (25.0) (12.0)

6.6 10.9

Exhibit 9: One-year forward P/E band

400 320
(`)

240 160 80 0
Jan-07 May-07 Jan-08 May-08 Jan-09 May-09 Jan-10 May-10 Jan-11 May-11 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11
24x

Share Price (`)

6x

12x

18x

Source: Company, Angel Research

Exhibit 10: Peer comparison

Company Reco. CMP Tgt. price (`) ABB* BHEL BGR Energy Cromp. Greaves Jyoti Structures KEC International Thermax Sell Neutral Neutral Accum. Buy Neutral Neutral 819 255 238 144 48 55 488 Upside/ P/BV(x) P/E(x) FY2011-13E RoCE (%) RoE (%)

(`) (Downside) (%) FY12E FY13E FY12E FY13E 427 168 152 54 (47.9) (29.3) 5.6 12.9 4.0 6.8 2.5 1.5 2.6 0.6 1.3 3.6 6.0 2.1 1.3 2.3 0.5 1.1 3.0 92.2 9.0 6.6 21.8 4.0 9.3 14.1 46.0 10.8 7.1 13.3 4.4 5.8 15.0

EPS CAGR FY12E FY13E FY12E FY13E 144.2 (2.4) (13.4) (13.3) (5.3) 9.4 0.9 11.4 39.5 14.2 13.7 21.7 17.0 32.8 20.2 26.5 10.6 19.5 18.2 19.0 26.0 7.6 30.6 25.0 12.5 15.8 21.5 28.0 13.9 21.1 23.4 20.1 12.7 27.2 21.9

Source: Company, Angel Research Note*: December year end.

Jan-12

February 1, 2012

Crompton Greaves | 3QFY2012 Result Update

Profit & Loss statement (consolidated)

Y/E March (` cr) Operating income % chg Total Expenditure Raw Materials Mfg costs Personnel Costs Other Costs EBITDA % chg (% of Net Sales) Depreciation& Amortisation EBIT % chg (% of Net Sales) Interest & other Charges Other Income (% of PBT) Recurring PBT % chg Extraordinary Inc/(exp) PBT Tax (% of PBT) PAT (reported) Add: Share of earnings of asso. Less: Minority interest (MI) Prior period items Reported PAT (After MI) Adjusted PAT % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) % chg FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E 6,832 21.2 6,086 3,371 1,194 797 725 746 54.5 10.9 126 620 60.0 9.1 78 74 12.0 615 41.1 615 205 33.4 410 2 5 407 407 44.3 6.0 11.1 11.1 44.3 8,737 27.9 7,742 4,153 1,541 1,065 983 996 33.5 11.4 122 874 41.0 10.0 81 74 8.5 867 40.9 867 305 35.1 563 (1) 2 560 560 37.7 6.4 15.3 15.3 37.7 9,141 10,005 4.6 7,864 4,203 1,593 1,113 954 1,277 28.3 14.0 155 1,122 28.4 12.3 43 110 9.2 1,189 37.1 35 1,224 365 30.7 824 3 3 860 825 47.3 9.0 12.9 12.9 (15.8) 9.5 8,661 4,270 2,227 1,181 983 1,344 5.2 13.4 194 1,150 2.5 11.5 35 114 9.3 1,229 3.4 (38) 1,191 310 25.2 919 8 0.4 889 927 12.4 9.3 14.4 14.4 12.4 11,341 13.4 10,496 5,257 2,745 1,361 1,134 845 (37.1) 7.4 263 582 (49.4) 5.1 45 88 14.0 625 (49.1) 0 625 202 32.3 423 423 423 (54.3) 3.7 6.6 6.6 (54.3) 12,936 14.1 11,699 6,123 2,755 1,552 1,268 1,238 46.5 9.6 296 942 61.8 7.3 48 73 7.6 967 54.7 0 967 271 28.0 696 696 696 64.5 5.4 10.9 10.9 64.5

February 1, 2012

Crompton Greaves | 3QFY2012 Result Update

Balance Sheet (consolidated)

Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Preference Capital Reserves & Surplus Shareholders Funds Minority Interest Total Loans Deferred Tax Liability Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Deferred Tax Asset Current Assets Cash Loans & Advances Inventories Debtors Others Current liabilities Net Current Assets Mis. Exp. not written off Total Assets 2,685 1,489 1,197 48 93 59 3,402 244 370 1,066 1,720 2,642 759 2,156 3,029 1,704 1,325 54 167 133 3,945 566 229 1,095 2,056 2,976 969 2,648 2,986 1,723 1,262 114 554 90 4,102 669 246 1,041 2,146 3,017 1,085 3,104 3,780 1,949 1,831 110 675 108 4,550 298 468 1,241 2,543 3,389 1,160 3,885 4,530 2,212 2,319 110 400 108 5,614 138 574 1,795 3,107 3,911 1,703 4,640 4,930 2,508 2,423 110 500 108 6,179 144 633 2,035 3,367 4,249 1,930 5,071 73 1,228 1,302 12 842 2,156 73 1,758 1,831 14 718 85 2,648 128 2,376 2,504 4 501 95 3,104 128 3,146 3,275 16 470 124 3,885 128 3,404 3,533 16 967 124 4,640 128 3,936 4,064 16 867 124 5,071 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

February 1, 2012

10

Crompton Greaves | 3QFY2012 Result Update

Exhibit 11: Cash Flow Statement (consolidated)

Y/E March (` cr) Profit before tax Depreciation (Inc)/Dec 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
Source: Company, Angel Research

FY2008 FY2009 615 132 (48) (74) (205) 420 (429) (29) 74 (384) (63) 69 99 (131) 3 241 244 867 127 111 (74) (305) 727 (363) (74) 74 (362) (124) 86 166 (210) 321 244 566

FY2010 1,189 155 (13) (110) (365) 857 (168) (386) 110 (444) 55.0 (217) 95 (52) (257) 103 566 669

FY2011 FY2012E 1,229 194 (446) (114) (310) 553 (845) (121) 114 (852) (31) 165 124 (195) (370) 669 298 625 263 (703) (88) (202) (104) (750) 275 88 (387) 497 165 332 (160) 298 138

FY2013E 967 296 (221) (73) (271) 698 (400) (100) 73 (427) (100) 165 (265) 6 138 144

February 1, 2012

11

Crompton Greaves | 3QFY2012 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 OB/Sales Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value DuPont Analysis(%) EBIT margin Tax retention ratio (%) Asset turnover (x) RoIC (Pre-tax) 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) (X) Inventory / Sales (days) Receivables (days) Payables (days) WC cycle (ex-cash) (days) Solvency ratios (x) Net debt to Equity Net debt to EBITDA Interest Coverage 0.6 0.8 7.9 0.0 0.0 10.8 (0.2) (0.4) 26.2 (0.1) (0.2) 32.7 0.2 0.9 13.1 0.1 0.4 19.7 3.1 53 84 124 26 3.4 45 79 111 19 3.4 43 84 122 16 3.1 42 86 118 23 2.7 49 91 113 39 2.7 54 91 115 47 35.2 43.9 46.9 41.9 55.5 44.8 43.7 66.9 44.4 34.3 47.6 33.8 13.7 15.8 12.5 19.5 21.1 18.4 9.1 66.6 4.7 42.6 28.4 6.0 0.7 44.3 10.0 64.9 5.6 55.9 36.3 6.7 0.2 43.6 12.3 69.3 5.7 70.0 48.5 4.9 (0.1) 43.6 11.5 74.8 4.4 50.7 37.9 5.4 (0.1) 33.8 5.1 67.7 3.2 16.6 11.2 4.2 0.1 11.8 7.3 72.0 3.0 22.1 15.9 3.7 0.2 17.9 11.1 11.1 14.5 1.6 35.1 15.3 15.3 18.6 2.0 49.5 12.9 12.9 15.3 2.2 38.8 14.4 14.4 17.5 2.2 50.8 6.6 6.6 10.7 2.2 54.8 10.9 10.9 15.5 2.2 63.1 13.0 9.9 4.1 1.1 1.4 13.2 5.3 0.8 9.4 7.7 2.9 1.4 1.1 9.3 4.0 0.8 11.2 9.4 3.7 1.5 1.0 6.9 3.1 0.7 10.0 8.2 2.8 1.5 0.9 6.7 2.3 0.7 21.8 13.5 2.6 1.5 0.9 11.8 2.2 0.7 13.3 9.3 2.3 1.5 0.8 7.9 1.9 0.5 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

February 1, 2012

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Crompton Greaves | 3QFY2012 Result Update

Research Team Tel: 022 3935 7800

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

Crompton Greaves 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, 2012

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