7 May 2015

4QFY15 Results Update | Sector: Others

Sintex Industries

Sandipan Pal (Sandipan.Pal@MotilalOswal.com); +91 22 3982 5436

BSE SENSEX S&P CNX CMP: INR104 TP: INR155 (+49%) Buy 26, 559 8,057

Bloomberg SINT IN

Equity Shares (m) 424.7

M.Cap. (INR b) / (USD b) 44.2/0.7

52-Week Range (INR) 136 / 46

1, 6, 12 Rel. Per (%) -8/10/102

Avg Val (INRm)/Vol ‘000 647/6693

Free float (%) 66.0

Financials & Valuation (INR b)

Y/E Mar 2015 2016E 2017E

Net sales 70.3 80.9 99.8 EBITDA 12.1 14.2 18.3 Adj. PAT 5.5 6.0 8.5 Adj EPS (INR) 13.0 13.4 19.1

EPS Gr. (%) 5.9 3.7 41.7

BV/Sh. (INR) 110.6 120.8 139.1

RoE (%) 13.4 11.9 14.7

RoCE (%) 12.0 11.2 13.8

Payout (%) 6.6 7.0 7.0

Valuations P/E (x) 8.0 7.7 5.5

P/BV (x) 0.9 0.9 0.7

EV/EBITDA (x) 6.7 6.2 4.6

Div. Yield (%) 0.7 0.7 0.7

Estimate change 7-11%

TP change

Rating change

All round beat in estimates; B2G benefits yet to percolate; FCCB concerns easing off All round beat: Sintex Industries’ (SINT) 4QFY15 revenue grew 9.7% YoY to

INR21.8b (v/s estimate of INR20.8b). 2pp QoQ expansion in operating margins translates into EBITDA of INR4b, +14.3% YoY (v/s estimate of INR3.6b). FY15 OPM stood at 17.2% (+0.8pp YoY). PAT rose to INR2b (26% YoY) on the back of rise in other income and lower depreciation and interest expense.

Segmental momentum intact—B2G benefits yet percolate: Growth momentum remained healthy in the performing segments viz. prefab (+19% YoY), textile (+40% YoY) and custom moldings (+16% YoY). However, the benefits of government’s initiatives—Clean India campaign, toilet projects and mass housing, which are key to further growth acceleration in prefab and revival in monolithic segment (which posted lowest revenue since FY09)—are yet to percolate.

Capability building continuously boosting prospects: SINT is continuously enhancing preparedness for opportunities that are likely to come through government’s initiatives in rural area. It is the only company to get approvals for prefabricated family-size biogas plants in India—a vertical that offers untapped growth lever going forward. In 4QFY15, it bagged large orders for rural RO water shelter enclosures and healthcare centers, which are new ventures with promising growth prospect, from a couple of states.

Operations on track with best yet to come; correction offers entry opportunity: SINT’s business cycle is favorably poised with better macro outlook and the much-awaited boost in government spending in related verticals. We are raising FY16/17 EPS by 11%/7% to factor in higher growth in select segments. Our assumption has upside risk from (a) new sources of revenue through Clean India campaign, and (b) positive surprise from revival in monolithic business from a low base. FCCB dilution remains an impediment in 1HFY16, albeit a significant conversion (~82%) is already behind. After recent corrections, the stock trades at 5.5x FY17E EPS and 4.6x FY17E EV/EBITDA. We value SINT at 6x FY17E EV/EBITDA, which translates into a fair value of INR155/share (adjusted for FCCB dilution). Maintain Buy.

Investors are advised to refer through disclosures made at the end of the Research Report.

Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

7 May 2015 2

Sintex Industries

All round beat; FY15 OPM expands ~1pp YoY Sintex Industries (SINT)’s 4QFY15 revenue grew 9.7% YoY to INR21.76b (v/s est

of INR20.80b). Higher revenue was attributable to better performances in traditional textile segment, and higher EPC revenue booked in 4Q.

2pp QoQ expansion in operating margins translates into EBITDA at INR4b, +14.3% YoY (v/s est of INR3.6b). FY15 OPM stood at 17.2% (+0.8pp YoY).

Rise in other income to INR477m (INR95m in 4QFY14) coupled with lower depreciation (INR711m v/s INR817m YoY) and interest expense (INR861m v/s INR 1,058m YoY) lead to 26.6% YoY PAT growth to INR2.03b

Exhibit 1: Segmental revenue break-up (INR m)

Verticals 1QFY14 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 FY14 FY15 Textiles 1,108 1,306 1,516 1,530 1,535 1,710 1,860 2,135 5,460 7,240 Plastics 10,131 12,324 12,234 18,340 11,880 15,030 16,400 19,530 53,029 62,840 Building Materials 4,672 6,444 5,815 10,440 5,670 8,100 7,590 10,400 27,371 31,760 Prefab 2,048 3,031 3,215 3,440 2,600 3,960 4,130 4,110 11,734 14,800 Monolithic and EPC 1,869 2,663 1,950 6,060 2,370 3,310 2,610 5,210 12,542 13,500 Tanks 755 750 650 940 700 830 850 1,080 3,095 3,460 Composites 5,459 5,880 6,419 7,900 6,210 6,930 8,810 9,130 25,658 31,080 Domestic 1,872 2,351 2,690 3,680 2,530 2,910 3,040 4,220 10,593 12,700 Foreign 3,587 3,529 3,729 4,220 3,680 4,020 5,770 4,910 15,065 18,380 Total 11,281 13,649 13,750 19,870 13,415 16,740 18,260 21,665 58,645 70,080

Source: Company, MOSL

Momentum intact in Prefab, building capabilities to tap newer areas Prefab segment continued its strong momentum with 19% YoY growth (28% in

3Q), along with margin expansion to 28% (v/s 26% QoQ). Much awaited benefits of government’s clean India mission is yet to percolate.

SINT, however, is continuously enhancing its preparedness through capability building in various product segments. It stands as the only company to get approvals for prefabricated family size biogas plants in India, which offers untapped growth lever going forward.

In 4QFY15, it bagged large orders for Rural RO water shelter enclosures and Healthcare centers from couple of states, which are new ventures with promising growth prospect.

New capacity aids healthy growth in traditional textile Textile segment recorded strong sales growth of 40% YoY (v/s 33% in FY15)

driven by rise in utilization in added capacity; EBITDA margins were down 2.2pp QoQ to 24%.

Tank segment improved on margins by 1.7pp QoQ to 13.5% (v/s 14% in 4QFY14) amidst 15% YoY revenue growth to INR1.1b.

Infrastructure segment continues to remain subdued despite higher revenue booking from EPC segment. Monolithic segment posted ~14% YoY de-growth in 4QFY15 (-33% YoY in FY15). Management focus remains selective on projects with lesser risk of poor working capital.

7 May 2015 3

Sintex Industries

Composites - benefits new assets and reviving segments percolating On back of demand recovery in automobile segment along with rise in

penetration into commercial vehicle industry and key customers being engaged with new technology, domestic composites recorded a 15% YoY revenue growth with 2.7pp QoQ rise in margins to 22.1%.

Revenue from overseas composite business grew 16% YoY with 1.8pp improvement in margins to 11.2%, largely led by QE easing on European front despite depreciation of Euro being an overhang in 2HFY15

Management expects that strong utilization of facilities is key driver to sustaining overseas growth. Further, penetration in aerospace and defence sector, macro factors and measures by government would provide adequate stimulus for enhanced growth of the segment.

Exhibit 2: Strength of operations continues in Prefab

Source: Company, MOSL

Exhibit 3: New capacity drove textile revenue

Source: Company, MOSL

Exhibit 4: Gradual uptick in domestic composites

Source: Company, MOSL

Exhibit 5: Simonin scaled up overseas composites operations

Source: Company, MOSL

Exhibit 6: Weakness in monolithic, EPC revenue higher

Source: Company, MOSL

Exhibit 7: Tank segment steady

Source: Company, MOSL

1.7 2.3 2.8 2.9 2.0 3.0 3.2 3.4 2.6 4.0 4.1 4.1

19 20 17

20 23 23 27 28 24

26 26 28

1QFY

13

2QFY

13

3QFY

13

4QFY

13

1QFY

14

2QFY

14

3QFY

14

4QFY

14

1QFY

15

2QFY

15

3QFY

15

4QFY

15

Revenue (INR b) Margin (%)

1.1 1.2 1.2 1.3 1.1 1.3 1.5 1.5 1.5 1.7 1.9 2.1

20 20 20

24

19 23 23

30

20 25

28 26

1QFY

13

2QFY

13

3QFY

13

4QFY

13

1QFY

14

2QFY

14

3QFY

14

4QFY

14

1QFY

15

2QFY

15

3QFY

15

4QFY

15

Revenue (INR b) Margin (%)

2.2 2.4 2.6 3.3 1.9 2.4 2.7 3.7 2.5 2.9 3.0 4.2

20 18

21

20 14 15

18

26

19 19 19 22

1QFY

13

2QFY

13

3QFY

13

4QFY

13

1QFY

14

2QFY

14

3QFY

14

4QFY

14

1QFY

15

2QFY

15

3QFY

15

4QFY

15

Revenue (INR b) Margin (%)

2.9 2.9 3.7 3.5 3.6 3.5 3.7 4.2 3.7 4.0 5.8 4.9

10 10

7 6

8 10 9 9 9

11 9 11

1QFY

13

2QFY

13

3QFY

13

4QFY

13

1QFY

14

2QFY

14

3QFY

14

4QFY

14

1QFY

15

2QFY

15

3QFY

15

4QFY

15

Revenue (INR b) Margin (%)

2.2 2.4 3.3 2.4 1.9 2.7 2.0 6.1 2.4 3.3 2.6 5.2

19 16

19

8

14 14

19

15 16

14

10 12

1QFY

13

2QFY

13

3QFY

13

4QFY

13

1QFY

14

2QFY

14

3QFY

14

4QFY

14

1QFY

15

2QFY

15

3QFY

15

4QFY

15

Revenue (INR b) Margin (%)

0.6 0.6 0.6 0.9 0.8 0.8 0.7 0.9 0.7 0.8 0.9 1.1

11 10 10

12

11 11 11 14

10 12 12

13

1QFY

13

2QFY

13

3QFY

13

4QFY

13

1QFY

14

2QFY

14

3QFY

14

4QFY

14

1QFY

15

2QFY

15

3QFY

15

4QFY

15

Revenue (INR b) Margin (%)

7 May 2015 4

Sintex Industries

Other updates Spinning mill expected to commence operations of first 0.1m spindles in

September with phased addition to complete installation of 0.32m by March 2016. Utilization is expected to stand at 20-30% for FY16 and 80-100% FY17 onwards. Spinning has incurred a capex of INR10b till date with INR8b to be expensed over FY16.

Sintex has bagged large orders of Rural RO water shelter enclosures and Healthcare centers which is expected to keep it’s robust growth momentum ongoing

Almost US$120m of FCCB is converted till 4QFY15 with of US$17m left. Management expects complete conversion by 1QFY16.

Valuation and views: Business recovery cycle on track SINT’s business cycle is favorably poised with improvement in macro outlook

and likely uptick in government and private spending in related verticals. The company will be a major beneficiary from government’s strong focus on

wide range of infrastructure and social improvement plans viz. education, healthcare, sanitation, housing etc.

SINT’s most consistent business segment – Prefab (20% sales mix and 27% CAGR in FY12-15) – should accelerate further with huge potential in public and private spending in new set of social initiatives viz. CSR, Swachh Bharat Mission etc.

Revival in mass housing projects through better clarity on government plan in upcoming union budget should aid required drive to subdued monolithic vertical (11% sales mix and -12% CAGR over FY12-15).

Automobile segment after a subnormal 3-4 years should witness revival in both passenger and commercial segments. This will drive growth in domestic composites, while overseas business (25% sales mix and 16% CAGR over FY12-15) has been gradually becoming consistent with stabilization of recent acquisitions.

We are raising FY16/17 EPS by 11%/7% to factor in higher growth in traditional textile and domestic composites. Our base case revenue/EBITDA CAGR over FY15-17E is ~19%/22%, factors in (a) 19-20% growth in prefab and textile (in line with management guidance), (b) 15-16% growth in domestic and overseas composites (management guidance of ~20% in FY16), and (3) ~15% growth in monolithic segment as phase of recovery.

Our assumption has upside risk from (a) new sources of revenue contribution in prefab segment through clean India campaign, and (b) positive surprise from revival in monolithic business from low base.

FCCB dilution remains an impediment albeit a significant conversion (~82%) is behind. After recent corrections, the stock trades at 5.5x FY17E EPS, 4.6x FY17E EV/EBITDA. We value SINT at 6x FY17E EV/EBITDA. This translates into fair value of INR155/share (adjusted for balance FCCB dilution). Maintain Buy.

7 May 2015 5

Sintex Industries

Exhibit 8: Trend in P/E

Exhibit 9: Trend in EV/EBITDA

Exhibit 10: We estimates Consistent growth in revenue over FY15-17 (%)…

Source :Company, MOSL

Exhibit 11: …along with gradual improvement in margins

Source :Company, MOSL

Exhibit 12: Sales growth (%) across segment

Source: Company, MOSL

7.7 7.8

7.2

10.0

0

7

14

21

28

35

Apr

-00

Jun-

01

Aug

-02

Oct

-03

Dec

-04

Feb-

06

Apr

-07

Jun-

08

Jul-0

9

Sep-

10

Nov

-11

Jan-

13

Mar

-14

May

-15

P/E (x) 15 Yrs Avg(x) 5 Yrs Avg(x) 10 Yrs Avg(x)

6.6

10.6

5.1

2.4

1.5

3.5

5.5

7.5

9.5

11.5

Jan-

00

Apr

-01

Jun-

02

Aug

-03

Oct

-04

Dec

-05

Feb-

07

Apr

-08

Jul-0

9

Sep-

10

Nov

-11

Jan-

13

Mar

-14

May

-15

EV/EBDITA(x) Peak(x) Avg(x) Min(x)

35 7 36

-1

14 15 20 15 23

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

E

FY17

E

19%

18% 17%

16%

18%

16% 16%

17% 17% 18% 18%

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

E

FY17

E

8 12

-19

12 21

-6

16 20

-11

14

0

16

33

26

-33

12 20

22

20

20

15

12 16

22

10 20

15

12

12

12

Textiles Prefab Monolithic Tanks Domestic Composites

Foreign Composites

FY12 FY13 FY14 FY15 FY16E FY17E While Prefab is likely to

maintain healthy growth with high government focus

on social initiatives, additional boost will come from (a) scale up in textile

segment, (c) recovery in monolithic and domestic

composites, and (d) stabilization of overseas

business

7 May 2015 6

Sintex Industries

Exhibit 13: Capex to keep FCFE negative in FY16 (INR b)

Source: Company, MOSL

Exhibit 14: Return ratios to improve FY17 onwards (%)

Source: Company, MOSL

0.0

-9.8

-4.7 -5.2

-1.2

-5.9 -6.9

-10.9 -12.4

-4.9

4.1

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

E

FY16

E

FY17

E

15 14 13

10

15

11 10 11 12 11 14

20 19 19 16 21 14 14 11 13 12 15

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

E

FY16

E

FY17

E

7 May 2015 7

Sintex Industries

Exhibit 15: Key operating matrix and assumptions

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E Sales Growth (%)

95 35 7 36 -1 14 15 20 15 23

Textiles

10 7 -7 26 8 0 16 33 20 10 Plastics

126 40 9 38 -2 16 15 19 9 9

Building Materials

69 23 15 51 -7 11 22 16 -1 6 Prefab

39 1 -16 14 12 35 20 26 20 20

Monolithic

0 115 59 86 -19 -8 -11 -33 15 15 Tanks

18 -9 15 22 12 22 14 12 12 12

Composites

267 59 5 25 4 22 9 21 20 12 Domestic Composites

84 5 15 25 21 29 0 20 16 12

Foreign Composites

0 113 -1 25 -6 16 16 22 22 12 Sales Growth (%)

Total EBITDA Margin (%) 19 18 17 16 18 16 16 17 17 18 18 Textiles 28.8 27.6 27.8 20.0 24.0 23.0 21.0 24.2 25.0 24.5 24.0 Plastics 16.0 16.1 15.5 15.9 17.5 15.4 15.2 16.3 16.5 16.7 17.1 Building Materials 15.2 17.2 18.1 17.1 19.0 15.7 17.2 19.1 18.9 19.9 21.2 Prefab 16.7 18.6 20.1 16.6 20.5 20.0 19.0 25.4 26.0 24.0 24.0 Monolithic 0.0 19.0 18.0 19.0 19.5 15.0 17.5 17.8 19.3 19.0 19.0 Tanks 9.8 9.0 9.0 10.1 11.0 10.0 10.0 11.7 12.0 12.0 11.0 Composites 17.9 14.8 12.5 14.8 15.0 15.0 13.2 13.3 14.1 14.0 13.9 Domestic 17.9 22.2 14.8 20.2 21.0 19.2 19.0 19.5 20.0 19.9 19.7 Foreign 0.0 7.3 11.4 11.7 11.6 11.9 8.5 9.0 10.0 10.1 10.0 Sales Mix Textiles 27 15 12 11 10 11 9 9 10 11 10 Plastics 73 85 88 89 90 89 91 91 90 85 75 Building Materials 52 45 41 44 49 46 44 47 45 39 34 Prefab 41 29 22 17 14 16 19 20 21 22 21 Monolithic 0 9 15 22 30 24 20 15 9 9 8 Tanks 11 7 5 5 4 5 5 5 5 5 4 Composites 21 40 47 46 42 44 46 44 44 46 42 Domestic 21 20 15 17 15 19 21 18 18 18 17 Foreign 0 20 31 29 27 25 26 26 26 28 25 EBITDA Mix Textiles 40 24 20 13 13 15 12 13 15 15 13 Plastics 60 76 80 87 87 85 88 87 85 81 70 Building Materials 41 44 44 46 51 44 49 52 49 44 39 Prefab 35 30 26 17 16 20 23 30 32 30 28 Monolithic 0 10 16 25 32 23 22 16 9 9 8 Tanks 6 3 2 3 3 3 3 4 3 3 3 Composites 19 33 34 41 34 40 39 34 36 37 32 Domestic 19 25 13 20 18 22 25 21 21 21 18 Foreign 0 8 21 21 17 18 14 14 15 16 14

Source: Company, MOSL

7 May 2015 8

Sintex Industries

Financials and valuations

Income Statement Y/E March 2010 2011 2012 2013 2014 2015 2016E 2017E

Operating income 33,192 44,837 44,535 51,079 58,645 70,348 80,941 99,815

Change (%) 5.8 35.1 -0.7 14.7 14.8 20.0 15.1 23.3

EBITDA 5,380 8,155 7,177 7,695 9,642 12,106 14,167 18,320

EBITDA Margin (%) 16.2 18.2 16.1 15.1 16.4 17.2 17.5 18.4

Change (%) 3.1 51.6 -12.0 7.2 25.3 25.6 17.0 29.3

Depreciation 1,445 1,491 1,678 2,054 2,548 2,605 3,765 4,184

EBIT 3,936 6,664 5,499 5,641 7,094 9,500 10,402 14,137

Interest 731 1,089 1,358 1,726 2,894 2,835 3,231 3,321

Other income 392 455 505 860 774 682 500 500

Extraordinary items 486 62 -466 -903 -161 -218 -100 0

PBT 4,083 6,092 4,179 3,871 4,814 7,130 7,571 11,316

Tax 772 1,508 1,160 669 1,180 1,863 1,688 2,829

Tax / PBT (%) 18.9 24.8 25.0 14.0 23.7 25.4 22.0 25.0

PAT before MI 3,311 4,584 3,019 3,202 3,634 5,267 5,884 8,487

PAT margin (%) 10.1 10.2 6.8 6.3 6.2 7.5 7.3 8.5

Change (%) 1.2 38.4 -34.1 6.0 13.5 44.9 11.7 44.2

Consolidated PAT 3,290 4,600 2,970 3,166 3,621 5,245 5,859 8,462

Adj. Con. PAT 2,896 4,553 3,535 4,141 3,808 5,506 6,009 8,512

Change (%) -6.5 57.2 -22.4 17.2 -8.1 44.6 9.1 41.7

Balance Sheet

(INR Million)

Y/E March 2010 2011 2012 2013 2014 2015 2016E 2017E

Equity share capital 271 271 271 311 311 425 447 447

Convertible share warrants 0 0 0 283 283 0 0 0

Reserves 19,198 23,745 26,212 30,656 34,844 46,553 53,545 61,692

Networth 19,469 24,016 26,483 31,250 35,438 46,978 53,992 62,139

Minority Interest 190 0 0 0 0 0 0 0

Total Debt 26,303 27,736 30,913 37,139 40,630 46,554 47,361 48,361

Net deferred tax 1,693 2,057 2,381 2,878 3,289 4,694 4,694 4,694

Capital employed 47,655 53,808 59,778 71,267 79,358 98,226 106,047 115,194

Gross fixed assets 25,581 33,276 37,266 42,326 51,783 66,170 77,670 86,670

Less: Acc. Depn. 7,746 9,156 10,863 13,332 15,879 18,484 22,249 26,433

Net fixed assets 17,834 24,120 26,403 28,995 35,903 47,686 55,421 60,237

Goodwill 2,665 2,190 2,179 2,157 1,865 1,550 1,550 1,550

Capital WIP 1,716 714 2,531 3,597 1,500 5,000 4,000 3,000

Investments 2,470 3,775 1,423 1,303 3,058 5,281 4,508 4,008

Curr. assets 30,983 33,655 37,350 45,003 48,559 53,535 58,713 69,542

Inventory 3,411 3,770 3,955 4,531 4,511 5,170 6,049 6,654

Debtors 10,121 14,278 16,983 18,596 22,230 24,608 27,720 30,081

Cash & Bank 9,295 9,861 7,206 8,902 2,720 4,250 1,660 6,827

Loans, Adv. & Others 8,157 5,746 9,206 12,974 19,099 19,507 23,284 25,979

Current liab. & prov. 8,015 10,647 10,108 9,787 11,528 14,827 18,146 23,144

Creditors 4,029 6,522 6,514 8,504 10,005 13,364 16,465 21,211

Provisions 3,507 3,626 3,594 1,284 1,523 1,462 1,681 1,934

Net current assets 22,969 23,009 27,242 35,216 37,031 38,709 40,567 46,398

Total Assets 47,655 53,809 59,778 71,268 79,358 98,226 106,047 115,194

E: MOSL Estimates

7 May 2015 9

Sintex Industries

Financials and valuations

Ratios

Y/E March 2010 2011 2012 2013 2014E 2015 2016E 2017E

Basic (INR)

EPS 10.7 16.8 13.0 13.3 12.2 13.0 13.4 19.1

Growth (%) -6.5 57.2 -22.4 2.1 -8.1 5.9 3.7 41.7

Cash EPS 17.4 22.5 17.5 17.0 19.9 18.6 21.7 28.4

Book value 71.8 88.6 97.7 100.4 113.9 110.6 120.8 139.1

Divd. Per Share 0.6 0.7 0.7 0.7 0.7 0.7 0.7 0.7

Payout incl. Div. Tax (%) 5.8 4.5 6.7 7.8 7.0 6.6 7.0 7.0

Valuation (x)

P/E 8.8 8.6 9.3 8.0 7.7 5.5

Cash P/E 6.5 6.7 5.7 5.6 4.8 3.7

Price/Book value 1.2 1.1 1.0 0.9 0.9 0.7

EV/Sales 1.2 1.2 1.2 1.2 1.1 0.8

EV/EBITDA 7.4 8.1 7.3 6.7 6.2 4.6

Dividend yield (%) 0.6 0.6 0.6 0.7 0.7 0.7

Profitability ratios (%)

Average RoE 15.9 20.9 14.0 14.3 11.4 13.4 11.9 14.7

Average RoCE 10.0 14.6 11.0 10.3 10.9 12.0 11.2 13.8

Turnover ratios

Debtors (days sales) 111 116 139 133 138 128 125 110

Inventory (days sales) 38 31 32 32 28 27 27 24

Leverage ratio Debt/Equity (x) 0.8 0.6 0.8 0.9 1.0 0.8 0.8 0.9

Cash Flow Statement (INR Million) Y/E March 2010 2011 2012 2013 2014E 2015 2016E 2017E

PBT before EO items 3,576 6,046 4,596 4,738 4,962 7,326 7,646 11,291

Add : Depn. & Amort. 1,446 1,491 1,678 2,054 2,548 2,605 3,765 4,184

Interest 731 1,089 1,358 1,726 2,894 2,835 3,231 3,321

Less : Direct taxes 772 1,508 1,160 669 1,180 1,863 1,688 2,829

(Inc)/Dec in WC -7,480 526 -6,888 -6,278 -7,997 -147 -4,448 -664

CF from opn. incl. EO -2,013 7,706 -882 668 1,065 10,538 8,405 15,301

(Inc)/Dec in FA -1,663 -6,300 -5,766 -5,690 -7,067 -17,573 -10,500 -8,000

(Pur)/Sale of invts. -651 -1,305 2,352 120 -1,755 -2,223 772 500

CF from invt. activity -2,315 -7,605 -3,414 -5,570 -8,822 -19,796 -9,728 -7,500

FCF -4,327 101 -4,296 -4,902 -7,757 -9,258 -1,323 7,801

Inc/(Dec) in Net Worth -680 153 -297 1,855 821 6,641 1,520 50

Inc/(Dec) in Debt 3,339 1,432 3,178 6,226 3,492 5,924 807 1,000

Less : Interest paid 731 1,089 1,358 1,726 2,894 2,835 3,231 3,321

Divd & Divd Tax 191 206 205 254 254 347 365 365

CF from fin. activity 1,938 464 1,641 6,597 1,576 10,789 -1,267 -2,634

Inc/Dec in cash -2,390 566 -2,655 1,695 -6,181 1,531 -2,590 5,167

Add: Beginning balance 11,685 9,295 9,861 7,206 8,902 2,720 4,250 1,660

Closing balance 9,295 9,861 7,206 8,901 2,721 4,250 1,660 6,827

E: MOSL Estimates

7 May 2015 10

Sintex Industries

Corporate profile: Sintex Industries

Exhibit 17: Shareholding pattern (%) Mar-15 Dec-14 Mar-14

Promoter 34.0 38.7 41.0

DII 2.2 5.1 7.0

FII 28.2 19.5 7.8

Others 35.6 36.8 44.1

Note: FII Includes depository receipts

Exhibit 18: Top holders Holder Name % Holding

Government of Singapore 4.7

Goldman Sachs (Singapore) PTE 2.5

LIC of India Market Plus -1 Growth Fund 1.6

Monetary Authority of Singapore 1.4

LIC of India 1.4

Exhibit 19: Top management Name Designation

Dinesh B Patel Chairman

Arun P Patel Vice Chairman

Amit D Patel Managing Director

Rahul A Patel Managing Director

S B Dangayach Managing Director

Exhibit 20: Directors Name Name

Dinesh B Patel Indira J Parikh*

Arun P Patel Lavkumar Kantilal*

Amit D Patel Ramnikbhai Ambani*

Rahul A Patel Ashwin Lalbhai Shah*

S B Dangayach Narendra Kumar Bansal*

Rajesh B Parikh*

*Independent

Exhibit 21: Auditors

Name Type

Deloitte Haskins & Sells Statutory Kiran J Mehta & CO Cost Auditor V H Shah Cost Auditor

Exhibit 22: MOSL forecast v/s consensus

EPS (INR) MOSL

forecast Consensus

forecast Variation (%)

FY16 13.4 14.6 -8.2

FY17 19.1 18.1 5.8

Company description Sintex Industries (SINT) is one of the most integrated plastics processors in India. The key areas of operation are Building materials (Prefab and monolithic construction), custom moldings, storage products and textiles. Building Materials business caters to two kinds of low-cost construction opportunities - (1) Housing, via monolithic construction, and (2) Non-housing, via prefab structures (rural classrooms and healthcare clinics, sanitation, army barracks, worker shelters, etc). The company will continue to benefit from the rising trend of "plasticization", i.e. substitution of metals by plastic composites across industries, mainly autos, electrical, Aerospace, and healthcare, defense, etc.

Exhibit 18: Sensex rebased

7 May 2015 11

Sintex Industries

N O T E S

7 May 2015 12

Sintex Industries

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