Sector Update

September 28, 2012

Sector View
Neutral

Transmission & Distribution

Flows from the grid
Five months into FY13, Power Grid (PGCIL) has already doled out orders totalling | 6776 crore, a 217% YoY jump in ordering. Of the yearly target of | 20,000 crore of ordering in FY13, PGCIL has already achieved 33.9% of the annual target. This is a notable progress over previous years (FY0912), where H1 ordering hovered between 18% and 28% of annual ordering. Of these, | 6776 crore tenders, tower packages constituted 26%, HVDC formed 37% & substation orders 15% of the total tenders. Of the companies under over coverage, KEC International (KEC) has won total | 511.7 crore, Kalpataru Power (KPP) grabbed | 355.2 crore while Jyoti Structures (JYS) is yet to open its account for FY13.
18180 18500 FY12

PGCIL planned vs. actual ordering

20000 15000 (| Crore) 10000 6500 6600 8000 8200 5000 0 FY08 FY09 Capex FY10 FY11 Capex target 10500 10600 11900 12005

Custom index of companies in T&D

140 120 100 80 60 40 20 0 Nov-08 Sep-07 Jun-09 Jan-10 Mar-11 Oct-11 May-12 Aug-10 Apr-08

Unrelenting competition

Competition continues to stay strong but with a diminishing intensity. Chinese/Korean players continue to remain aggressive in product based categories of insulator, transformer and reactor segments, seizing 68.3%, 54.3% and 92.1% of the respective total share in FYTD13. Competition from other international players (ex-Chinese/Korean) remains concentrated in technology intensive segments like HVDC. For projects involving EPC work, domestic competition remains high, with the number of bidders increasing across segments. The conductors segment witnessed the number of vendors rising from eight in FY08 to 17 in FY12, substation from two to 23, tower from 10 to 23 and transformers from six to 11 over the same period. After eating more than one can digest, many smaller domestic players have shielded away from bidding this year, leading to better margin realisation for others.

Peer Index

Source : Company, ICICIdirect.com Research This Peer Index is an equal weighted index of prices of four companies: KEC International, Jyoti Structures, Kalpataru Power and Crompton Greaves

Pastures to remain greener; competition stronger...

PGCILs aggressive target of | 1,00,000 crore capex in the Twelfth Five Year plan (FYP), backed by a proven past performance in the Eleventh FYP, renders high visibility with respect to order awards in the T&D space. We expect tower and conductor ordering to the tune of | 10000 crore (based on industry players commentary and historical trends). We expect JYS, KEC and KPP to command reasonable order wins with healthy competition to become the new normal.
Exhibit 1: Twelve month trailing P/E, higher no. of competitors across segments over FY09-TD13
25 20 15 (X) 10 FY11 - 57 FYTD13 - 51 FY09 36 Oct-09 Dec-09 Feb-10 Jun-10 Apr-10 FY10 58 Oct-10 Aug-10 Aug-11 Oct-11 Aug-12 Dec-10 Dec-11 Feb-11 Jun-11 Feb-12 Jun-12 Apr-11 Apr-12 FY12 84

PGCIL 12 FYP capex allocation

Central sector projects UMPP Grid Strengthen ing

IPPs

Source: ICICIdirect.com Research

5 0

KEC

KPP

JYS

CRG

Analysts name
Chirag Shah shah.chirag@icicisecurities.com

Source: Company, ICICIdirect.com Research For numbers in the boxes outlined in blue, corresponding to the financial years represent the total number of bidders across segments; highlighting the contracting P/E multiples with intensifying competition. Also, they are indicative in nature and not proportionately scaled

ICICI Securities Ltd | Retail Equity Research

Capex intensity to continue PGCIL has been maintaining a strong capex pipeline, which is poised to carry on into the Twelfth FYP. PGCIL capex had grown at a CAGR of 18.2% over FY09-12 and is expected to sustain at an annual rate of | 20,000 crore till FY17. This would serve enough to fill the stomach, provided bidding remains rational. For the five months into FY13, PGCIL has already tendered orders worth | 6776.5 crore/33.9% of annual target/217% increase on a YoY basis.
Exhibit 2: PGCIL ordering trend
(| Crore) Total Ordering Of which, share of Indian Chinese/Korean Other International FY09 14,222.1 13344.7 or 93.8 % 606 or 4.3 % 271.4 or 1.9 % FY10 12,068.5 9343.5 or 77.4 % 1872.7 or 15.5 % 852.3 or 7.1 % FY11 17,701.5 11392.4 or 64.4 % 638.9 or 3.6 % 5670.2 or 32 % FY12 23,463.3 20673 or 88.1 % 2472.9 or 10.5 % 317.4 or 1.4 % FY13 (Till Date) 6,776.5 2797.4 or 41.3 % 1157 or 17.1 % 2822.1 or 41.6 %

Source: PGCIL, ICICIdirect.com Research

The historical trend suggests that on average PGCIL orders between 18% and 28% (FY09-H1FY13) of its annual ordering target in H1 of any fiscal, thereby making the overall process highly back ended. Even in H1FY13, PGCIL did 34% of the overall ordering (includes one big order of HVDC system)

Players

Exhibit 3: Trend in quarterly ordering in PGCILs orders

(| Crore) FY09 FY10 FY11 FY12 FY13 Q1 1,453.4 1,243.2 1,037.4 329.1 5,978.2 Q2 2,684.4 1,620.8 2,191.1 3,500.9 798.3 Q3 3,602.1 2,599.0 1,579.3 8,123.2 Q4 6,551.9 6,559.5 12,893.8 11,510.2 Total 14,222.0 12,068.5 17,701.5 23,463.3 6,776.5

Source: ICICIdirect.com Research

Competition remains unabated, though the intensity is gradually declining. Newer domestic entrants, who went berserk with their bids in the previous fiscals, have started sobering up. For instance, the number of successful bidders had shot up from eight in FY08 to 17 in FY12 in the conductors segment whereas the number of successful vendors shot up from two in FY08 to 18 in FY12 in the substation segment. Chinese/Korean players remain competitive in product based areas like transformers, reactors and insulators and their market share aggregated 10.5% in FY12 and 17.1% in FYTD13 of the total pie. Technology intensive segments (like HVDC) remain strongholds of players like ABB and Alstom, where domestic players are yet to match the capabilities and, thereby, lack pre-qualifications.

ICICI Securities Ltd | Retail Equity Research

Page 2

Exhibit 4: Quarter wise order finalisation of annual tendering

FY13 (Till Date) FY12 1.4 FY11 FY10 FY09 0 5.9 10.3 10.2 10 14.9 12.4 13.4 18.9 20 30 8.9 21.5 25.3 40 50 (%) Q1 Q2 Q3 Q4 60 70 34.6 72.8 54.4 46.1 80 90 100 88.2 49.1 11.8

More than 70% of the orders (by value) are tendered out in the third and fourth quarter of the year; with fourth quarter being the busiest quarter at PGCIL

Source: Company, ICICIdirect.com Research

Exhibit 5: Number of orders tendered

FY09 FY10 FY11 FY12 FY13 Q1 32 21 23 9 86 Q2 46 25 34 57 48 Q3 55 37 26 89 Q4 87 78 86 134 Total 220 161 169 289 134

Source: Company, ICICIdirect.com Research

Exhibit 6: Quarter wise number of order finalisation of annual tendering

FY13 (Till Date) FY12 FY11 FY10 FY09 0 3 14 13 15 10 20 20 20 16 21 30 40 Q1 64 31 15 23 25 50 Q2 Q3 60 Q4 70 46 51 48 40 80 90 100 36 0

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 3

Exhibit 7: Components of ordering in transmission sector

Transmission

Transmission line

Substation

Tower package

Conductors

Insulators

Transformer

Substation package

Others

Source: Company, ICICIdirect.com Research

Tower packages constitute the maximum weightage in total ordering, cornering nearly 31.0% in FY09 to 37.8% in FY12. The conductor and substation packages follow suit with 26.3% and 17.3% in FY09 to 22.5% and 14.5% in FY12, respectively.
In the transmission sector, the transmission line segment makes up 65% of the total investment while the substation segment makes up the rest

Exhibit 8: Ordering division by type of work

(%) Conductor Package Substation package Tower Package Transformer Package Insulator Package Transmission line package Reactor Package HVDC Miscellaneous Cable Package Civil Construction Rural electrification Others FY09 26.0 17.3 31.0 7.5 2.8 1.8 1.8 0.0 0.0 0.0 0.0 10.7 1.2 100.0 FY10 FY11 FY12 FY13 (Till Date) 12.3 16.3 22.5 4.2 15.3 11.5 14.5 14.8 38.6 30.4 37.8 25.7 10.8 4.4 5.5 6.6 8.0 1.9 4.5 3.9 0.8 1.0 4.7 3.5 9.2 1.3 4.4 2.4 0.0 30.1 0.0 36.8 0.0 0.0 0.3 0.7 0.0 0.0 1.2 0.0 0.0 0.0 0.3 1.5 2.2 0.0 0.0 0.0 2.8 3.2 4.4 0.0 100.0 100.0 100.0 100.0 The cells with this formatting highlight the type of package having the highest share of total value of tenders in the particular FY

After from tower, conductor and substation packages, all the other segments command mid single digit allocations.

HCPTC/HCDC orders tend to be bulky in nature, with two orders been tendered till date. The first one, valued at | 5325 crore was tendered in March 2011 to ABB (parent) while the second one in June 2012, worth | 2495 crore was to Alstom

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 4

Tower packages had shown a steady growth in capex from PGCIL, thereby providing ample opportunities for players like JYS, KEC and KPP. Further, on the back of an enhanced overall capital outlay, all segments had witnessed considerable growth rates Also, growth rates for segments across the board appear elevated in FY12 due to the low base affect of FY11. In FY11, tenders totalling | 17,701.5 crore were finalised of which a single HCPTC/HCDC order valued at | 5325 crore was tendered, leaving | 12376 crore pie for all other segments

Exhibit 9: YoY growth in ordering in key segments

YoY Growth ( %) Insulator Package Substation Package Transformer Package Others Conductor Package Tower Package Transmission Line Package Reactor Package FY10 144.2 -25.2 22.6 103.6 -59.9 5.9 -62.0 338.8 FY11 -65.9 10.2 -39.8 64.7 94.2 15.5 84.1 -79.6 FY12 220.0 66.9 64.2 84.2 83.2 64.7 528.5 351.6

Source: Company, ICICIdirect.com Research

Exhibit 10: Market share of India/Chinese-Korean/ and other international players across segments over FY09-13 (till date)
(in %) Insulator Package Substation package Transformer Package Tower Package Conductor Package Transmission line package Reactor Package HVDC Miscellaneous Cable Package Civil Construction Rural electrification Others FY09 64.5 | 22.5 | 13 91.1 | 0 | 8.9 51.3 | 48.7 | 0 100 | 0 | 0 100 | 0 | 0 100 | 0 | 0 100 | 0 | 0 100 | 0 | 0 100 | 0 | 0 FY10 40.1 | 58.6 | 1.4 69.3 | 7.7 | 23 41.8 | 51.4 | 6.8 96.4 | 0 | 3.6 90.5 | 0 | 9.5 100 | 0 | 0 55.1 | 44.9 | 0 93.5 | 0 | 6.5 100 | 0 | 0 FY11 31.2 | 67.9 | 1 88.1 | 2.7 | 9.2 68.7 | 31.3 | 0 100 | 0 | 0 100 | 0 | 0 100 | 0 | 0 49 | 51 | 0 0 | 0 | 100 72.5 | 0 | 27.5 FY12 12.2 | 87.8 | 0 84 | 15.5 | 0.5 83.5 | 16.5 | 0 96.9 | 0 | 3.1 100 | 0 | 0 98.8 | 0 | 1.2 34.8 | 65.2 | 0 100 | 0 | 0 100 | 0 | 0 97.3 | 0 | 2.7 85.1 | 14.2 | 0.7 FY13 (Till Date) 31.7 | 68.3 | 0 41.8 | 58.2 | 0 45.7 | 54.3 | 0 84.4 | 0 | 15.6 80.2 | 0 | 19.8 100 | 0 | 0 7.9 | 92.1 | 0 0 | 0 | 100 100 | 0 | 0 100 | 0 | 0 0|0|0

How to read the table

The three figures in each cell represent the market share (in percent) of Indian players | Chinese/Korean players | and other international players in that particular category tendered out in that particular year. For example : If | 100 crore worth of insulator packages were tendered in FY09, Indian players won | 64.5 crore, Chinese/Korean players won | 22.5 crore and other international players won | 13 crore worth of orders out of the total pie of | 100 crore Category dominated by Indian players in that year Category dominated by Chinese/Korean players in that year Category dominated by Other International players in that year

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 5

Exhibit 11: Key players operating in different segments in the transmission sector
Tower Packages Conductors Insultors Transformers Substation Substation Others KEC Intl * Kalpataru Power * Jyoti Structures * EMC * Gammon India * Tata Projects * L&T * Indo Projects* Aster Pvt Ltd * Shyama Power * EMCO * ICOMM Tele * Sterlite Technologies * Apar industries * Gammon India * Gupta Power Infrastructure * Smita Conductors * Deepak Cables * Vijai Electricals * Hindustan Vidyut Products * Diamond Power * Genus Power W S Industries * Nanjing Electric* Dongguan Gaoneng Electric * Zigong Sediver * Aditya Birla Insulators * Modern Insualtors * Jiangsu Xiangyuan Electric Equipment * SiChuan YiBin Global * BHEL Crompton Greaves * Siemens * Apar Industries * TBEA Shenyang Transformer* Alstom T&D * ABB * BHEL * Hyosung Corp * Transformers & Rectifiers India * Vijai Electrical * Baoding Tianwei Baobian Electric * EMCO L&T * Jyoti Structures * BHEL * EMC * KEC Intl * TBEA Shenyang Transformer * Siemens * Techno Electric & Engg. * Hyosung * ALSTOM T & D * New Northeast Electric Group * G.E.T Power * EMCO * ICSA * Bharat Bijlee TAG Corp * Apar Ind * ZTE Corp * LS Cables * Asbesco (India) * BGR * Universal Cables * Simplex Projects * EMI Ltd * Navyug Engineering * Transmission Line

Source: Company, ICICIdirect.com Research

Exhibit 12: Number of successful vendors in various segments

25
Lured by attractive payment terms, high ordering activity and growth opportunity, numerous Chinese/Korean and domestic players entered a market so far dominated by traditional players. With heating competition across segments, players like JYS, KEC, KPP and Crompton Greaves increased their focus in Gulf and Western countries for new orders. Meanwhile, in the domestic market, with bidders realising the folly in abnormally low bids and PGCIL blacklisting numerous players on technical grounds, rationality in bids has started to resurface

23 17 18 15 10 5 12 9 9 7 2 9 8 6 10 11 6 10 17

23

20 15 10 5 0 8 15 11

15 10

Conductors

Insulators FY09 FY10

Substation FY11 FY12

Transformers FY13 (Till Date)

Towers

Source: Company, ICICIdirect.com Research

Exhibit 13: Orders won by key T&D players from PGCIL

(| Crore) Jyoti Structures Kalptaru Power Transm KEC International Ltd BHEL L&T Crompton Greaves Tata Projects Ltd Gammon India Apar Industries ABB Ltd ABB International Electrical Manufacturin TBEA Shenyang Transf Alstom T & D India Alstom International Siemens Ltd. Total ordering FY09 860.4 618.0 796.8 319.9 531.1 595.1 451.1 847.9 87.0 723.4 76.6 112.4 359.7 14,222.1 FY10 736.5 219.6 77.2 442.0 414.0 1,000.7 973.0 243.5 292.4 21.0 217.3 363.1 131.1 12,068.5 FY11 111.8 723.4 837.7 69.0 388.5 252.6 1,163.6 463.2 248.8 39.5 5,403.8 129.8 1,146.3 17,701.5 FY12 FY13 (Till Date) 1,093.8 928.4 355.2 1,123.0 511.7 454.4 39.1 1,354.8 568.9 1,606.2 1,719.3 962.4 299.8 235.9 1,690.3 606.9 152.8 506.5 173.7 2,495.2 308.7 355.5 23,463.3 6,776.5

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 6

Exhibit 14: Share of individual players in total tenders

(%) Jyoti Structures Kalptaru Power Transmission KEC International Ltd BHEL L&T Crompton Greaves Tata Projects Ltd Gammon India Apar Industries ABB Ltd ABB International Electrical Manufacturing Co TBEA Shenyang Transformer Alstom T & D India Alstom International Siemens Ltd. FY09 6 / IIIIII 4.3 / IIII 5.6 / IIIII 2.2 / II 3.7 / III 4.2 / IIII 3.2 / III 6 / IIIII 0.6 / 5.1 / IIIII 0.5 / 0.8 / 0/ 0/ 0/ 2.5 / II FY10 6.1 / IIIIII 1.8 / I 0.6 / 3.7 / III 3.4 / III 8.3 / IIIIIIII 8.1 / IIIIIIII 2 / II 2.4 / II 0.2 / 1.8 / I 3 / III 0/ 0/ 0/ 1.1 / I FY11 FY12 0.6 / 4.7 / IIII 4.1 / IIII 4 / III 4.7 / IIII 4.8 / IIII 0.4 / 1.9 / I 2.2 / II 5.8 / IIIII 1.4 / I 2.4 / II 6.6 / IIIIII 6.8 / IIIIII 2.6 / II 7.3 / IIIIIII 1.4 / I 4.1 / IIII 0.2 / 1.3 / I 30.5 / IIIIIIIIIIIIIIIIIIIIIIIIIII 0 / 0.7 / 7.2 / IIIIIII 0/ 2.6 / II 0/ 2.2 / II 0/ 0/ 6.5 / IIIIII 1.3 / I FY13 (Till Date) 0/ 5.2 / IIIII 7.6 / IIIIIII 0.6 / 0/ 0/ 0/ 0/ 0/ 3.5 / III 0/ 0/ 2.3 / II 2.6 / II 36.8 / IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 5.2 / IIIII

Even though the overall order inflows of all players under over coverage have increased consistently over the years, their share in PGCIL tendering had fluctuated noticeably

Source: Company, ICICIdirect.com Research

In the respective segments, KEC and KPPs share in total orders fell from 13.4/13.3% in FY09 to a mere 1.6/4.6% in FY10, respectively. Similarly, JYS market share fell from 10.7% in FY10 to 1.5% in FY11. The same had gradually climbed back to comfortable levels post FY11, with competitive intensity reducing

Exhibit 15: Share in total annual tendering in their respective categories

(%) Jyoti Structures Kalptaru Power Transmission KEC International Ltd FY09 10.0 13.3 13.4 FY10 10.7 4.6 1.6 FY11 1.5 13.0 15.6 FY12 FY13 (Till Date) 8.2 0.0 9.3 18.0 11.0 25.9

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 7

Exhibit 16: Share in tower packages of different players for FY11 and FY12
In the tower space, Tata Projects, JYS, KEC, KPP and EMC are the leading players. Recently, players like Gammon India have increased their focus in the segment, with its market share increasing from 6.8% in FY11 to 11.2% in FY12. JYS also made a noticeable comeback with nil share in FY11 to 8.5% in FY12

Tata Projects Ltd Electrical Manufacturing Company Kalptaru Power Transmission Jyoti Structures Gammon India L&T KEC International Ltd Others 0.0 5.0 10.0 (%) 15.0 0.0 6.8 7.2 6.9 9.0 10.8 8.5 8.5 11.2 10.3 13.3 13.4

18.1

20.3

FY11

FY12

27.4 28.3 20.0 25.0 30.0

Source: Company, ICICIdirect.com Research

Exhibit 17: Share in transmission line package of different players for FY11 and FY12
Kalptaru Power Transmission Jyoti Structures Gammon India L&T KEC International Ltd Others 0.0 10.0 0.0 0.0 0.0 0.0 0.0 13.9 20.0 30.0 (%) 40.0 50.0 20.3 60.8 60.0 70.0 24.9 25.5 FY11 FY12 15.5 39.2

Source: Company, ICICIdirect.com Research

Though Sterlite Technologies remains the undisputed market leader in the conductor segment, other players had been successful in cornering some of its market share. Players like Gupta Power Infrastructure, Gammon India and Apar Industries had substantially increased their market share in FY12 from FY11

Exhibit 18: Share in conductor of different players for FY11 and FY12
Deepak Cables Smita Conductors Gupta Power Infrastructure Sterlite Technologies Ltd Gammon India Apar Industries Others 0 5 10 15 20 (%) 3.4 8.6 8.6 15.8 20.9 25 30 35 36.9 40 45 0.0 4.5 8.1 8.3 14.4 21.6 FY11 FY12 38.5 10.3

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 8

Players like ABB, Bhel, EMC, L&T and JYS had been able to increase their market share at the cost of Siemens, in FY12. Siemens market share decreased from a glorious 50.2% in FY11 to a mere 6.6% in FY12. We believe the competitive intensity peaked out in FY12 and was relatively calm in FYTD13

Exhibit 19: Share in substation package of different players for FY11 and FY12
ABB Ltd BHEL Electrical Manufacturing Company Jyoti Structures KEC International Ltd L&T SIEMENS LTD. TBEA Shenyang Transformer Group Co. Ltd Others 0 10 20 0.0 0.0 0.0 0.0 2.1 1.7 0.0 10.0 6.4 8.0 6.6 4.4 28.4 30 (%) 40 41.3 50 60 FY11 FY12 6.2 11.8 22.9

50.2

Source: Company, ICICIdirect.com Research

Reactor packages being a product based area are prone to intense competition from Chinese/Korean players. Hyosung Corporations absence from any order wins in FY12 was replaced by other Chinese/Korean players. Crompton Greaves had been a victim of this competition, with its market share declining from 27.7% in FY11 to almost half in FY12. Further, in FYTD13, Chinese/Korean players have cornered 92.1% of the total reactor orders

Exhibit 20: Share in reactor package of different players for FY11 and FY12
Hyosung Corporation ABB Ltd Xian XD Transformer Co. Ltd ABB Ltd Baoding Tianwei Baobian Electric Co. Ltd TBEA Shenyang Transformer Crompton Greaves Others 0 10 0.0 0.0 0.0 0.0 0.0 0.0 14.1 10.5 20 21.2 (%) 30 40 50 60 24.1 27.7 5.1 32.5 FY11 FY12 5.1 8.5 51.0

Source: Company, ICICIdirect.com Research

Transformers packages made up 4.4% and 5.5% of the total ordering in FY11 and FY12, respectively. Even though the overall capex on transformers increased, players like Crompton Greaves lost market share to newer entrants like Alstom T&D, TBEA Shenyang, Transformers and Rectifiers and Apar Industries. Further, for FYTD13, Chinese/Korean players had cornered 54.3% of the transformer orders

Exhibit 21: Share in transformer package of different players for FY11 and FY12
JV of Transformers & Rectifiers & ZTR ALSTOM T & D India TBEA Shenyang Transformer Group Co. Ltd Apar Industries SIEMENS LTD. Crompton Greaves Others 0 10 0.0 0.0 0.0 0.0 5.2 6.6 15.8 20.7 24.2 17.8 20 30 (%) 40 50 60.0 60 70 15.0 18.2 16.5 FY11 FY12

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 9

Annexure: Carry forward of orders for KEC, KPP, JYS as on Q1FY13

Exhibit 22: Segment wise order book break-up of KEC International of | 9,462 crore (as on Q1FY13)
100 90 80 70 60 50 40 30 Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Transmission Cables Power Systems Railways Telecom & Water 69 76 . 0 2 16 13 0 4 18 2 0 5 15 2 0 5 19 4 1 4 17 1 1 5 20 2 4 24 2 4 4 23 2 7 4 18 2 6 5 18 3

(%)

78

72

77

73

72

67

69

68

Source: Company, ICICIdirect.com Research

Exhibit 23: Segment wise order book break-up of Kalpataru Power of | 6,170 crore (as on Q1FY13)
100 80 60 (%) 40 20 0 Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 30 32 34 35 50 38 40 49 45 60 61 61 56 54 5 5 3 10 6 2 8 3 9 3 14 1 35 12 1 49 10 1 49 11 1 39 10 1 44

26

Transmission - International

Transmission - Domestic

Distribution

Infrastructure

Source: Company, ICICIdirect.com Research

Exhibit 24: egment wise breakup of order book of JYS

5500 896 493 4750 425 595 . 2792 452 862 615 4000 3250 2500 1750 1000 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 (| crore) 205 3280 833 1249 848 848 963 788

Exhibit 25: Customer wise breakup of order book of JYS as on Q1FY13

872 872

817 817

PGCIL, 36 SEB's, 59

3230

3090

2766

2625

2665

2616

2545

Transmission

Substation

Rural Electrification

Private Sector, 5

Source: Company, ICICIdirect.com Research

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 10

Exhibit 23: Segment wise order book break-up of Kalpataru Power of | 6,170 crore (as on Q1FY13)
100 80 60 (%) 40 20 0 Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 30 32 34 35 50 38 40 49 45 60 61 61 56 54 5 5 3 10 6 2 8 3 9 3 14 1 35 12 1 49 10 1 49 11 1 39 10 1 44

26

Transmission - International

Transmission - Domestic

Distribution

Infrastructure

Source: Company, ICICIdirect.com Research

Exhibit 24: egment wise breakup of order book of JYS

5500 896 493 4750 425 595 . 2792 452 862 615 4000 3250 2500 1750 1000 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 (| crore) 205 3280 833 1249 848 848 963 788

Exhibit 25: Customer wise breakup of order book of JYS as on Q1FY13

872 872

817 817

PGCIL, 36 SEB's, 59

3230

3090

2766

2625

2665

2616

2545

Transmission

Substation

Rural Electrification

Private Sector, 5

Source: Company, ICICIdirect.com Research

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 11

RATING RATIONALE

ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns ratings to its stocks according to their notional target price vs. current market price and then categorises them as Strong Buy, Buy, Hold and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts' valuation for a stock. Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction; Buy: >10%/15% for large caps/midcaps, respectively; Hold: Up to +/-10%; Sell: -10% or more;

Pankaj Pandey

Head Research ICICIdirect.com Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No. 7, MIDC, Andheri (East) Mumbai 400 093 research@icicidirect.com

pankaj.pandey@icicisecurities.com

ANALYST CERTIFICATION
We /I, , Chirag Shah PGDBM research analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our personal views about any and all of the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. Analysts aren't registered as research analysts by FINRA and might not be an associated person of the ICICI Securities Inc.

Disclosures:
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ICICI Securities Ltd | Retail Equity Research

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