ITD Cementation Management Meet Update - 060115

Emkay
India Equity Research | Construction & Infrastructure

January 6, 2015
Management Meet Update
ITD Cementation India Ltd.
Your success is our success
CMP
Focus on Balance Sheet Improvement
Rs505
Rating
NOT RATED
Change in Estimates
Meeting highlights
EPS Chg FY16E/FY17E (%)
NA
Expects to garners orders worth Rs30-40 bn in CY15E largely to come from Marine and
Target Price change (%)
NA
Previous Reco
NA
metro segments, currently remains L1 for projects worth Rs8 bn. Current order book
provides revenue visibility for 3 years
Focus on improving the balance sheet, already reduced debt worth Rs1 bn from the QIP
Emkay vs Consensus
EPS Estimates
proceeds, likely to close debt at Rs6.5 bn in CY14E. The company believes that raising
equity coupled with one time settlement money from NHAI will help reducing working
capital debt levels for the company
Given that 10-12% of the order book remains slow-moving/low margin and further write
FY16E
FY17E
Emkay
Consensus
Mean Consensus TP
offs are expected in some orders which will get executed over the next two quarters and
with newer order wins remains accretive , management expects that EBITDA margins
to rebound to 10-11% range in CY15E/16E
Stock Details
Eyes significant increase in the order book

The current order book stands at Rs44.1 bn (implies 2.8x CY13 revenue) and stands L1 for
projects worth Rs7.7 bn which includes projects like construction of Elevated road at Noida
worth Rs4.16 bn, Construction of IIT Ropar worth Rs2.73 bn from CPWD Ropar.,
Rehabilitation and Refurbishment of Water Works at Palta and Garden Reach worth Rs806
mn. The company expects to win following order in CY15E which include
Rs33 bn for 4th container terminal at JNPT from PSA (Port of Singapore) Will be given
Bloomberg Code
ITCE IN
Face Value (Rs)
10
Shares outstanding (mn)
16
52 Week H/L
522 / 114
M Cap (Rs bn/USD bn)
8 / 0.12
Daily Avg Volume (nos.)
12,511
Daily Avg Turnover (US$ mn)
0.1
Shareholding Pattern Sep '14
in two phase , Phase -1 Rs25 bn (Reclamation & dredging ) and Phase II Rs8 bn for
berth construction
Promoters
Piling order of Rs10 bn in Nigeria.

Mumbai Metro phase -3 (Prequalified for 2 packages worth Rs30 bn )
51.6%
FIIs
3.3%
DIIs
23.7%
Public
17.7%
For future visibility company sees potential from Ganga Cleaning project with respect to
dredging, Navigation, Jetties, Building Ghats, redevelopment alongside river.
Price Performance
(%)
1M
3M
6M
12M
Absolute
11
13
42
258
31
175
Rel. to Nifty
Relative price chart

525
Financial Snapshot (Consolidated)
Rs
% 180
440
140
355
100
(Rs mn)
CY10
CY11
CY12
CY13
9MCY14
270
60
Net Sales
14,469
16,976
16,509
15,841
12,048
185
20
EBITDA
1,404
1,668
1,912
1,625
704
EBITDA Margin (%)
9.7
9.8
11.6
10.3
5.8
APAT
94
226
220
93
(346)
EPS (Rs)
EPS (% chg)
ROE (%)
P/E (x)
8.1
19.6
19.1
8.1
(28.3)
73.4
140.7
(2.7)
(57.7)
2.6
6.1
5.6
2.3
61.0
25.3
26.0
61.5
EV/EBITDA (x)
7.6
7.1
6.9
8.1
P/BV (x)
1.6
1.5
1.4
1.4
Source: Company, Emkay Research
Emkay Research is also available on www.emkayglobal.com, Bloomberg EMKAY<GO>, Reuters and DOWJONES.
100
Dec-13
Feb-14
Apr-14
Jun-14
ITD Cementation (LHS)
Aug-14
Oct-14
-20
Dec-14
Rel to Nifty (RHS)
Source: Bloomberg
Nitin Arora
nitin.arora@emkayglobal.com
66242491
Kushan Parikh
kushan.parikh@emkayglobal.com
66121431
Emkay Global Financial Services Ltd.
ITD Cementation India Ltd. (ITCE IN)
India Equity Research | Management Meet Update
Some of the recent project wins include:
Construction of Bose Institute at Salt Lake, Kolkata worth Rs1334 mn from Rites Ltd.
Container Terminal 4 at Mundra worth Rs1178 mn from Adani Port & SEZ Ltd.
Design and Construction of reclamation and container yard at JNPT worth Rs4067 mn from
Nhava Sheva (I) Gateway Terminal.
Construction of rail tunnel in J&K worth Rs1334 mn from KRCL.
Construction of LNG storage tanks at Mundra worth Rs1113 mn from IHI Corporation.
Construction of Coal berth worth Rs1989 mn from Ennore Port Ltd.
Construction of Kolkata Metro stations 7 Nos. worth Rs3512 mn from RVNL.
Construction of Container berth (JSW Jaigarh) worth Rs1090 mn.
Laying of water trunk main & laying of sewer line by micro tunneling method (Taratala)
worth Rs1459 mn from KEIIP.
Exhibit 1: Segmental Order Book Breakup as of September 30, 2014
Hydro / Dams / Tunnels /

Irrigation
15.1%
34.1%
Urban Infrastructure /
MRTS
Marine
18.6%
Specialist Works
11.2%
15.0%
5.8%
0.2%
Airport
Emkay Research | January 6, 2015
Exhibit 2: Major Tender Prospects

SEGMENTS
VALUE
(in Rs mn)
MARINE
17703
PROJECTS
Phase-2 Expansion of Coal Terminal at Ennore Port
EPC Tender for LNG Port Terminal at Jafrabad
Shore Protection Works for Site Development of PTA - 10 at RIL, Hazira
URBAN INFRASTUCTURE
/ MRTS
HYDRO/ DAMS /
TUNNEL / IRRIGATION
INDUSTRIAL
6726
15400
7141
800
2000
EPC Tender for Backup Yard for Ennore Container Terminal
1000
Proposed Bulk Terminal at Ennore Port on EPC Basis
1000
Construction of Backup Yard for Mundra Container Terminal - CT 4
1000
Modification & Strengthening of Existing Cargo Berths

Nos. 1 to 6 at Kandla Left Out Work
1853
Contract CC-87, CT -1B, CT-1A: Part Design and Construction of elevated viaduct and 8
elevated stations of Phase III Delhi MRTS
2577/549/1600
Dhaka Elevated Expressway PPP Project, Dhaka, Bangladesh
2000
Construction of Barrage-cum-Bridge across River Koel near Village Jhirpani in

the District of Sundargarh
5000
Construction of Barrage-cum-Bridge across River Ib near Village Kopasingha in

the District of Sundargarh
5000
Construction of Barrage-cum-Bridge across River Ib near Village Deogaon in the

District of Jharsuguda
5000
Design and Construction of 578 m long Theng Tunnel including Geological Investigation
on Gangtok-Chungtahang Road under Project Swastik in Sikkim State
400
Supply and Construction of 110/33 KV GIS Base Receiving Station at Kurla

(General Civil Works)
300
Project HIRA-K, a manufacturing facility at Kharagpur, West Bengal for

admixture production
25900
50
10000
EPC Tender for Construction of Mundra LNG Terminal
Proposals for various works pertaining to 75 km New Broad Gauge Line,

Sarguja Rail Corridor Pvt. Ltd. (SRCPL)
SPECIALIST PROJECTS
PROJECT VALUE
(in Rs mn)
1000
200
Construction of General Civil Works including Piling for Unit #6 of Coal Conversion
Project at Trombay
2750
Development of Permanent campus for IIT Jodhpur at Karwar Rajasthan
2891
Various
Exhibit 3: Revenue CAGR of 2% over CY09-13

20000
16000
16976
14675
Exhibit 4: EBITDA CAGR of 4% over CY09-13

2500
16509
14469
15841
1912
2000
12048
1668
1379
12000
1500
8000
1000
4000
500
704
0
CY09
CY10
CY11
CY12
CY13
9MCY14
CY09
CY10
Exhibit 5: PAT CAGR of 15% over CY09-13
Exhibit 6: EPS
300
226
200
54
100
1625
1404
30.0
220
94
CY11
CY12
19.6
19.1
20.0
93
10.0
4.7
8.1
CY13
9MCY14
8.1
0.0
CY09
-100
CY10
CY11
CY12
CY13
9MCY14
-10.0
-200
-20.0
-300
-30.0
-400
-346
CY09
CY10
CY11
CY12
Exhibit 7: Order Book CAGR of 7% over CY09-13
Exhibit 8: Order Inflow CAGR of 6% over CY09-13

44093
40000
30000
38210
35366
29070
28641
30000
25000
28911
25140
19987
21347
20000
17931
16350
15000
20000
9MCY14
-28.3
-40.0
50000
CY13
10826
10000
10000
5000
0
0
CY09
CY10
CY11
CY12
CY13
9MCY14
CY09
CY10
CY11
CY12
CY13
9MCY14
Exhibit 9: EBITDA Margins averaged 10.1% over last 5 years
Exhibit 10: Non Cash NWC as a % of sales continued to rise
14.0%
60%
11.6%
12.0%
10.0%
9.3%
9.6%
50%
10.3%
9.7%
56%
54%
44%
42%
43%
40%
8.0%
5.8%
6.0%
30%
20%
4.0%
10%
2.0%
0%
0.0%
CY09
CY10
CY11
CY12
CY13
CY09
9MCY14
CY10
CY11
CY12
Non Cash NWC As % of Sales
Exhibit 11: Debt levels kept rising on working capital requirements
Exhibit 12: Debt equity brought under control
CY13
10000
7834
8000
6000
7695
7578
6509
5004
2.5
2.0
2.0
5468
1.5
4000
1.7
1.4
1.5
CY09
CY10
1.9
1.5
1.0
2000
0.5
0.0
CY09
CY10
CY11
CY12
CY13
9MCY14
CY11
CY12
CY13
Exhibit 13: ROEs averaged 3.6% over last 5 years
Exhibit 14: ROCEs averaged 11.5% over last 5 years
7.0%
6.1%
6.0%
12.0%
5.0%
10.9%
11.2%
CY09
CY10
12.7%
10.0%
10.0%
4.0%
8.0%
2.6%
3.0%
2.0%
12.9%
14.0%
5.5%
9MCY14
2.3%
1.5%
6.0%
4.0%
1.0%
2.0%
0.0%
0.0%
CY09
CY10
CY11
CY12
CY13
CY11
CY12
CY13
Focus on balance sheet improvement

The companys execution run rate slowed down from CY12 onwards due to disputed/ pending
claims in one of the road projects awarded by the NHAI and irrigation projects in Andhra Pradesh
amounting Rs3.5 bn which led to increase in the working capital.
The pending claims from the NHAI stands at Rs3 bn which the management expects to get one
time settlement of Rs1.8-1.9 bn over the next 2-3 months. However the management has stated
that the company is in active discussion with both the clients for an amicable settlement of the
claims. According to the management, this process could have fructified earlier, had it not been
for central election (thereby applicability of model code of conduct) and Andhra re-organisation.
The company recently raised Rs1.4 bn and issued 4 mn shares. With this dilution the promoter
stake would stand reduced from 69.57% to 51.63%. The proposed funds got utilised primarily
for reducing the debt levels of the company and reduced the working capital from Rs7.2 bn to
Rs6.5 bn till date. Interest cost stagnated on sequential basis from Q3CY15 as company repaid
debt of Rs1 bn and its current debt stands at Rs6.5 bn down from Rs7.56 bn and expects benefit
of lower interest expense (post partial debt repayment) to come in from the next quarter.
The company believes that raising equity coupled with one time settlement money the company
will help reducing working capital debt levels for the company.
Exhibit 15: Net Working Capital Days
Net Working Capital - DSO
CY09
CY10
CY11
CY12
Inventories
57
60
40
39
44
Unbilled WIP
92
76
70
80
137
Sundry Debtors
114
134
119
146
81
Cash and Bank
30
11
10
12
Loans and Advances
CY13
46
38
31
28
43
Total Current Assets ex cash
309
309
260
293
305
Current Liabs
197
159
104
131
145
Provisions
13
Net Working Capital Days ex cash
99
148
154
159
157
Booked 85% of loss making projects, new project wins value accretive
Given that 10-12% of the order book remains slow-moving/low margin and further write offs are
expected in some orders which will get executed over the next two quarters and with newer order
wins remains accretive, management expects that EBITDA margins to rebound to 10-11% range
in CY15E/16E.
During the Q3CY14, the company took write downs on three projects to the tune of Rs140 mn.
Of these Rs70 mn was on account of premature closure of project due to delayed payments from
the client. The balance was on account of cost overruns that the company had incurred. In
addition to above, the ITD made a provision of Rs50 mn for project works at Kolkata Airport. The
same is covered under the escalation clause and would be recognized as revenue after it is
being approved/ reimbursed by the client. According to the management, the total charge of
Rs190 mn (stated above) are one time in nature. In absence of such charges, adjusted EBITDA
margin stands at 8.3%.
Parentage help in prequalification

ITD is a subsidiary of Thailand-based Italian Thai Development Public Company Ltd, which holds
52% stake in ITD. Italian-Thai Development Company Limited is the largest construction
company in Thailand (~41% market share) and one of the largest in South East Asia. The parent
company also provides its knowhow, technologies and skilled personnel to ITD. ITD-Parent is
one of the leading infrastructure company based in Thailand. Some of the marquee projects
executed by ITD-Parent include:
Bangkoks first underground mass transit system comprising of 10.5 km of twin tunnels, 9
underground stations.
Bangkok Mass Transit System - The train systems for this 23 kms project was provided by
Siemens and the whole project was managed by the Siemens ITD Consortium.
Suvarnabhumi International Airport capacity of 45 mn passengers
Several Dams and tunnels - completed 7 major dams and more than 30 km of large
diameter tunnels in Thailand.
ITD-parent also helps the ITD cementation for pre-qualification requirement in specifically Marine
segment and several other verticals of infrastructure segments. Since 2005, ITD has entered
into 3 separate JVs with its parent to build for projects in Roads, MRTS, Water and Airport
sectors.
Exhibit 16: Corporate Structure
ITD Cementation India

Limited
Engaged in marine works, highways & bridges, metros, airports, hydrotunneling, dams & canals, water & sewage and specialist foundation
engineering projects.
95%
80%
ITD Cem Maytas

Consortium
ITD Cemindia JV
Design and execution of water

conveyor system
Construction for road

projects
49%
ITD-ITDCem JV
Construction for MRTS and water

projects
40%
ITD-ITDCem JV
(Consortium of ITD-ITD
Cementation)
Construction of integrated
passenger terminal building
at Netaji Subash Chandra
Bose International airport
Exhibit 17: Joint Ventures
ITD-ITD Cem JV
ITD-ITD Cem JV
(Consortium of ITD-ITD
Cementation)
ITD Cem Maytas

Consortium
ITD Cem india JV
Shareholders
ITD Cem 49%

ITD (Thailand) 51%
ITD Cem 40%

ITD (Thailand) 60%
ITD Cem 95%

Maytas 5%
ITD Cem 80%

ITD (Thailand) 20%
Key projects
Supply and installation of track work for

Bangalore Metro (to be commissioned in
37 months)
Construction of integrated
passenger terminal building
at Netaji Subas Chandra
Bose (International) airport in
Kolkata
Design and execution of

water conveyor system for
government of Andhra
Pradesh
MP2 road: 35 kms stretch

connecting Jhansi and
Shivpuri
Construction of 3 under ground stations

and tunnels for Kolkata Metro
RJ-4: construction of bypass

on NH-76 at Kota
Design and construction of elevated

viaduct including entry exit line, ramp to
depot, and elevated stations for DMRCL
(CC26) worth 5,460 mn
Recently secured contract of Design and
Construction of Tunnels by Shield TBM
under Delhi MRTS Project for DMRCL
(CC32) worth 7,520 mn
Procurement of Ground Water Treatment
Plants
Design, Construction, Supply, Installation,
Commissioning including Mechanical &
Electrical Equipment and Operation in
Agartala worth 399 mn
Laying of Water Trunk Main from Garden
Reach Water Works to Taratala Valve
Station and Laying of Sewer Line along
Diamond Harbour Road by Microtunelling
Method for KEIIP worth 1,459 mn
Contract value
Rs26828 mn
Work in Hand as Rs11753 mn

on September
30, 2014
Rs19390 mn
Rs6632 mn
Rs3629 mn
Rs173 mn
Rs5750 mn
Nil
Exhibit 18: Brief History

Year
1931 1978 The Cementation Company Limited, U.K, a member of Trafalgar House Group, operated a branch in India
In 1978, the branch office was converted into India subsidiary (named as Cemindia Company Limited) of The Cementation Company
Limited, U.K,
1994
Cemindia Company Limited renamed as Trafalgar House Construction India Limited to reflect relationship with its then parent
1996-98
Kvaerner ASA acquired Trafalgar House Plc in 1996

Cemindia Company Limited changed its name to Kvaerner Cementation India Limited
2000-01
Skanska AB acquired Kvaerner Construction Group Limited

Kvaerner Cementation India Limited changed its name to Skanska Cementation India Limited
2004-05
ITD, acquired Skanska AB interest in Skanska Cementation India Limited

Skanska Cementation India Limited changed its name to ITD Cementation India Limited
2006-11
Raised Rs. 564 mn through rights issue in October 2006 (fully subscribed by parent)
Raised Rs. 2,447 mn through rights issue in December 2007 (partially subscribed by parent due to regulatory compulsions)
Entry into MRTS and airport segments with support from parent
2012
Construction of Impounded Wet Basin at Mazagon Dock, Mumbai and Dry Dock in GRSE, Kolkata
Construction of double tier elevated structure for Jaipur Metro
2013
Construction of modernized integrated passenger terminal at Kolkata Airport

Entry in Industrial Segment
Exhibit 19: Segment Competitor Presence

Segment
Main Competitors
Marine structures
Afcons, Simplex, Mann Engineering, Navyuga, Samsung,

Hyundai, Vijay Nirman
Specialist works- Piling & Foundation
Simplex Infra, Simlex Projects, Valecha, L&T
Industrial
Simplex, JMC, L&T, IVRCL, McNally Bharat, Ramky
Hydro, Dams &Tunnels
Patel Engineering, HCC, Gammon, JP, Soma, NCC, L&T, Unity
Airports
Consolidated Construction, L&T, BL Kashyap, NCC, Punj Lloyd,

Ramky
MRT
L&T, Simplex, Gammon, CEC-CICI, IJM, Welspun, IL&FS
Highways & Bridges
GMR, Ramky, L&T, IL&FS, IRB, Gammon, HCC,
Water & Sewage
IVRCL, Pratibha, NCC, L&T, Thermax, Jindal, KSB
Exhibit 20: Equipment List

Equipment (Excluding JV Assets)
Number of units
Hydraulic and rotatory rigs
39
Cranes
60
Excavators
16
Crushers
Batching plants
36
Sensor Pavers
Hot Mix Plants
Concrete Pump
34
DG Set
103
Gantry
22
Launching Girder / segment

Total
3
330
Key Financials (Consolidated)

Income Statement
Y/E Dec (Rs mn)
CY10
CY11
CY12
CY13
9MCY14
Net Sales
14,469
16,976
16,509
15,841
12,048
Expenditure
13,065
15,308
14,597
14,216
11,344
EBITDA
1,404
1,668
1,912
1,625
704
Depreciation
418
420
506
442
324
EBIT
985
1,247
1,405
1,183
380
Other Income
140
94
100
340
192
Interest expenses
918
1,060
1,195
1,283
1,024
PBT
207
282
311
239
(453)
Tax
114
56
91
146
(106)
Extraordinary Items
Minority Int./Income from Assoc.
Reported Net Income
96
227
223
94
(346)
Adjusted PAT
94
226
220
93
(346)
CY10
CY11
CY12
CY13
9MCY14
Balance Sheet
Y/E Dec (Rs mn)
Equity share capital
115
115
115
115
Reserves & surplus
3,498
3,697
3,890
3,969
Net worth
3,613
3,812
4,005
4,084
5,468
6,509
7,834
7,695
(50)
(126)
(177)
(212)
Total Liabilities
9,031
10,194
11,662
11,567
Net block
1,909
2,287
2,297
2,236
Minority Interest
Loan Funds
Net deferred tax liability
Investment
12,099
14,562
15,292
16,089
Cash & bank balance
491
379
368
319
Other Current Assets
3,165
6,361
7,477
7,533
Current liabilities & Provision
5,289
6,892
6,066
6,825
Net current assets
6,810
7,670
9,225
9,264
9,031
10,194
11,661
11,567
Current Assets
Misc. exp
Total Assets
Key Ratios
Profitability (%)
CY10
CY11
CY12
CY13
9MCY14
EBITDA Margin
9.7
9.8
11.6
10.3
5.8
EBIT Margin
6.8
7.3
8.5
7.5
3.2
54.8
19.8
29.3
61.1
23.5
0.6
1.3
1.3
0.6
(2.9)
Effective Tax Rate

Net Margin
ROCE
12.8
14.0
13.8
13.1
ROE
2.6
6.1
5.6
2.3
RoIC
12.1
14.0
13.6
10.6
CY10
8.1
CY11
19.6
CY12
19.1
CY13
8.1
9MCY14
(28.3)
CEPS
44.5
56.1
63.0
46.5
0.1
BVPS
313.6
330.9
347.6
354.5
1.5
2.0
2.0
1.0
Per Share Data (Rs)

EPS
DPS
10
Valuations (x)
CY10
61.0
CY11
25.3
CY12
26.0
CY13
61.5
9MCY14
-
11.2
8.8
7.9
10.7
P/BV
1.6
1.5
1.4
1.4
EV / Sales
0.7
0.7
0.8
0.8
EV / EBITDA
7.6
7.1
6.9
8.1
Dividend Yield (%)
0.3
0.4
0.4
0.2
Gearing Ratio (x)
PER
P/CEPS
CY10
CY11
CY12
CY13
9MCY14
Net Debt/ Equity
1.4
1.6
1.9
1.8
Net Debt/EBIDTA
3.5
3.7
3.9
4.5
Working Cap Cycle (days)
159.4
156.8
195.8
206.1
Growth (%)
CY10
CY11
CY12
CY13
9MCY14
(1.4)
17.3
(2.8)
(4.0)
1.8
18.8
14.6
(15.0)
EBIT
10.0
26.6
12.7
(15.9)
PAT
75.3
136.2
(1.6)
(57.7)
Q3CY13
Q4CY13
Q1CY14
Q2CY14
Q3CY14
3,769
3,785
3,807
4,164
4,078
EBITDA
356
451
259
292
152
EBITDA Margin (%)
9.4
11.9
6.8
7.0
3.7
Revenue
EBITDA
Quarterly (Rs mn)

Revenue
PAT
(33)
25
(103)
(24)
(220)
EPS (Rs)
(2.9)
2.1
(8.9)
(2.1)
(17.3)
Dec-13
Mar-14
Jun-14
Sep-14
Sep-14
69.6
69.6
69.6
51.6
51.6
FIIs
0.5
0.5
0.5
3.1
3.3
DIIs
0.8
0.8
2.0
20.8
23.7
Shareholding Pattern (%)

Promoters
Private Corp
Public
3.6
2.4
3.0
6.1
3.7
29.1
29.1
27.9
18.4
17.7
11
Emkay Rating Distribution

BUY
ACCUMULATE
HOLD
REDUCE
SELL
Expected total return (%) (Stock price appreciation and dividend yield) of over 25% within the next 12-18 months.
Expected total return (%) (Stock price appreciation and dividend yield) of over 10% within the next 12-18 months.
Expected total return (%) (Stock price appreciation and dividend yield) of upto 10% within the next 12-18 months.
Expected total return (%) (Stock price depreciation) of upto (-) 10% within the next 12-18 months.
The stock is believed to underperform the broad market indices or its related universe within the next 12-18 months.
Emkay Global Financial Services Ltd.

CIN - L67120MH1995PLC084899
7th Floor, The Ruby, Senapati Bapat Marg, Dadar - West, Mumbai - 400028. India
Tel: +91 22 66121212 Fax: +91 22 66121299 Web: www.emkayglobal.com
DISCLAIMERS AND DISCLOSURES-:
Emkay Global Financial Services Limited (CIN- L67120MH1995PLC084899) and its affiliates are a full-service, brokerage, investment banking,
investment management, and financing group. Emkay Global Financial Services Limited (EGFSL) along with its affiliates are participants in virtually all securities trading markets in India. EGFSL was
established in 1995 and is one of India's leading brokerage and distribution house. EGFSL is a corporate trading member of Bombay Stock Exchange Limited (BSE), National Stock Exchange of India
Limited (NSE), MCX Stock Exchange Limited (MCX-SX). EGFSL along with its subsidiaries offers the most comprehensive avenues for investments and is engaged in the businesses including stock
broking (Institutional and retail), merchant banking, commodity broking, depository participant, portfolio management, insurance broking and services rendered in connection with d istribution of primary
market issues and financial products like mutual funds, fixed deposits. Details of associates are available on our website i.e. www.emkayglobal.com
EGFSL is under the process of seeking registration under SEBI (Research Analysts) Regulations, 2014. EGFSL hereby declares that it has not defaulted with any stock exchange nor its activities were
suspended by any stock exchange with whom it is registered in last five years, except that NSE had disabled EGFSL from trading on October 05, October 08 and October 09, 2012 for a manifest error
resulting into a bonafide erroneous trade on October 05, 2012. However, SEBI and Stock Exchanges have conducted the routine inspection and based on their observations have issued advice letters or
levied minor penalty on EGFSL for certain operational deviations in ordinary/routine course of business. EGFSL has not been debarred from doing business by any Stock Exchange / SEBI or any other
authorities; nor has its certificate of registration been cancelled by SEBI at any point of time.
EGFSL offers research services to clients as well as prospects. The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject
company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report.
Other disclosures by Emkay Global Financial Services Limited (Research Entity) and its Research Analyst under SEBI (Research Analyst) Regulations, 2014 with reference to the subject
company(s) covered in this report-:
EGFSL or its associates may have financial interest in the subject company.
Research Analyst or his/her relatives financial interest in the subject company. (NO)
EGFSL or its associates and Research Analyst or his/her relatives does not have any material conflict of interest in the subject company. The research Analyst or research entity (EGFSL) have not been
engaged in market making activity for the subject company.
EGFSL or its associates may have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of Research Report.
Research Analyst or his/her relatives have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of Research
Report: (NO)
EGFSL or its associates may have received any compensation including for investment banking or merchant banking or brokerage services from the subject company in the past 12 months. EGFSL or its
associates may have received compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months. EGFSL
or its associates may have received any compensation or other benefits from the Subject Company or third party in connection with the research report. Subject Company may have been client of EGFSL
or its associates during twelve months preceding the date of distribution of the research report and EGFSL may have co-managed public offering of securities for the subject company in the past twelve
months.
The research Analyst has served as officer, director or employee of the subject company: (NO)
EGFSL and/or its affiliates may seek investment banking or other business from the company or companies that are the subject of this material. Our salespeople, traders, and other professionals may
provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein, and our proprietary trading and investing businesses
may make investment decisions that may be inconsistent with the recommendations expressed herein. In reviewing these materials, you should be aware that any or all of the foregoing, among other
things, may give rise to real or potential conflicts of interest including but not limited to those stated herein. Additionally, other important information regarding our relationships with the company or
companies that are the subject of this material is provided herein. This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any
locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject EGFSL or its group companies to any
registration or licensing requirement within such jurisdiction. Specifically, this document does not constitute an offer to or solicitation to any U.S. person for the purchase or sale of any financial instrument
or as an official confirmation of any transaction to any U.S. person. Unless otherwise stated, this message should not be construed as official confirmation of any transaction. No part of this document may
be distributed in Canada or used by private customers in United Kingdom. All material presented in this report, unless specifically indicated otherwise, is under copyright to Emkay. None of the material,
nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party, without the prior express written permission of EGFSL . All trademarks, service marks
and logos used in this report are trademarks or registered trademarks of EGFSL or its Group Companies. The information contained herein is not intended for publication or distribution or circulation in
any manner whatsoever and any unauthorized reading, dissemination, distribution or copying of this communication is prohibited unless otherwise expressly authorized. Please ensure that you have read
Risk Disclosure Document for Capital Market and Derivatives Segments as prescribed by Securities and Exchange Board of India before investing in Indian Securities Market. In so far as this report
includes current or historic information, it is believed to be reliable, although its accuracy and completeness cannot be guaranteed.
www.emkayglobal.com
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ITD Cementation Management Meet Update - 060115

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ITD Cementation Management Meet Update - 060115

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Emkay

India Equity Research | Construction & Infrastructure

Management Meet Update

ITD Cementation India Ltd.

Your success is our success

Focus on Balance Sheet Improvement

EPS Chg FY16E/FY17E (%)

Target Price change (%)

Eyes significant increase in the order book

Face Value (Rs)

Shares outstanding (mn)

M Cap (Rs bn/USD bn)

Daily Avg Volume (nos.)

Daily Avg Turnover (US$ mn)

Shareholding Pattern Sep '14

Piling order of Rs10 bn in Nigeria.

Relative price chart

Financial Snapshot (Consolidated)

EBITDA Margin (%)

Source: Company, Emkay Research

ITD Cementation (LHS)

Rel to Nifty (RHS)

ITD Cementation India Ltd. (ITCE IN)

India Equity Research | Management Meet Update

Some of the recent project wins include:

Exhibit 1: Segmental Order Book Breakup as of September 30, 2014

Hydro / Dams / Tunnels /

Source: Company, Emkay Research

Emkay Research | January 6, 2015

ITD Cementation India Ltd. (ITCE IN)

India Equity Research | Management Meet Update

Exhibit 2: Major Tender Prospects

EPC Tender for Backup Yard for Ennore Container Terminal

Proposed Bulk Terminal at Ennore Port on EPC Basis

Construction of Backup Yard for Mundra Container Terminal - CT 4

Modification & Strengthening of Existing Cargo Berths

Dhaka Elevated Expressway PPP Project, Dhaka, Bangladesh

Construction of Barrage-cum-Bridge across River Koel near Village Jhirpani in

Construction of Barrage-cum-Bridge across River Ib near Village Kopasingha in

Construction of Barrage-cum-Bridge across River Ib near Village Deogaon in the

Supply and Construction of 110/33 KV GIS Base Receiving Station at Kurla

Project HIRA-K, a manufacturing facility at Kharagpur, West Bengal for

EPC Tender for Construction of Mundra LNG Terminal

Proposals for various works pertaining to 75 km New Broad Gauge Line,

Development of Permanent campus for IIT Jodhpur at Karwar Rajasthan

Source: Company, Emkay Research

Emkay Research | January 6, 2015

ITD Cementation India Ltd. (ITCE IN)

India Equity Research | Management Meet Update

Exhibit 3: Revenue CAGR of 2% over CY09-13

Exhibit 4: EBITDA CAGR of 4% over CY09-13

Source: Company, Emkay Research

Source: Company, Emkay Research

Exhibit 5: PAT CAGR of 15% over CY09-13

Source: Company, Emkay Research

Exhibit 7: Order Book CAGR of 7% over CY09-13

Exhibit 8: Order Inflow CAGR of 6% over CY09-13

Source: Company, Emkay Research

Source: Company, Emkay Research

Emkay Research | January 6, 2015

Source: Company, Emkay Research

ITD Cementation India Ltd. (ITCE IN)

India Equity Research | Management Meet Update