4QFY2012 Result Update | Capital Goods

May 25, 2012

Crompton Greaves
Performance Highlights
(` cr) Revenue EBITDA EBITDA margin (%) Adj. PAT 4QFY12
3,077 213.2 6.9

BUY
CMP Target Price
% chg (yoy)
5.8 (42.9) (590)bp (60.1)

`106 `133
12 months

4QFY11
2,908 373.1 12.8 251.4

3QFY12
3,028 182.7 6.0 77.2

% chg (qoq)
1.6 16.7 89.5 30.0

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

100.3 Source: Company, Angel Research

Capital Goods 6,803 1.2 276/102 457,253 2.0 16,218 4,920 CROM.BO CRG@IN

Crompton Greaves (CG) reported a weak performance for 4QFY2012, which was below our estimates and streets expectations. Although the company posted decent numbers on the top-line front, the companys margin dragged its earnings. Consolidated order intake for 4QFY2012 stood at `2,896cr, yoy jump of 12%, led by the power system segment. Order book at the end of 4QFY2012 stood at `8,366cr. We revise our FY2013E and FY2014E estimates to factor in the decline in profitability; however, we believe margin pressure has already been factored in the stock price. Given the recent underperformance, the stock is currently trading at attractive valuation on our estimates. We continue to maintain our Buy view on the stock. Weakness continues: For 4QFY2012, CGs top line grew by 5.8% yoy to `3,077cr, which was slightly lower than our estimate. The companys EBITDA margin witnessed a steep contraction of ~590bp yoy to 6.9%, below our expectation, and was driven by high raw-material costs. Led by margin dip, reported PAT plunged by 60.1% yoy to `100.3cr, 33.3% below our (below street) expectation of `150.3cr. Outlook and valuation: Management guided for sales growth of 12-14%, supported by healthy order backlog along with EBITDAM in the range of 8-9%. In-line with managements guidance, we build in conservative assumption (8.0% and 8.4% EBITDAM for FY2013 and FY2014, respectively, much below the historical average of 12.0-13.0%). Given the attractive valuations (stock at ~39% discount to its five-year trading PE multiple), we maintain our positive stance on the company. The pessimism surrounding the companys profitability has clearly been factored in the stock price, given the PE multiple de-rating and underperformance of the stock. We have assigned a multiple of 14.0 to arrive at a target price of `133, implying an upside of 25.1% 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 28.9 20.3 9.1

Abs. (%) Sensex Crom. Greav.

3m (9.5) (29.0)

1yr (9.1) (58.1)

3yr 16.6 (28.6)

FY2011
10,005 9.5 927 12.4 13.4 14.4 7.3 2.1 33.8 34.3 0.7 4.9

FY2012
11,249 12.4 374 (59.7) 7.1 5.8 18.2 1.9 11.0 12.8 0.7 9.4

FY2013E
12,451 10.7 512 22.5 7.9 8.0 13.3 1.8 13.9 14.5 0.6 7.6

FY2014E
14,265 14.6 607 18.6 8.3 9.5 11.2 1.6 14.9 17.0 0.5 6.0

Rahul Kaul
022-39357800 Ext:6817 Rahul.kaul@angelbroking.com

Please refer to important disclosures at the end of this report

Crompton Greaves | 4QFY2012 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 (After Min. Int. and Assoc.) PAT Margin (%) Extra ordinary exp/(inc) Adj PAT EPS (`)
Source: Company, Angel Research

4QFY12 3,077 3,077 27 2,081 68.5 394 12.8 363 11.8 2,864 213 6.9 14 64 0 136 4.4 40 29.2 100 3.3 0 100 1.6

4QFY11 2,908 2,908 15 1,882 65.2 272 9.4 366 12.6 2,535 373 12.8 7 60 47 353 12.1 68 19.4 251 8.6 38 290 3.9

% chg (yoy) 5.8 5.8 10.5 3.2 44.8 (0.7) 13.0 (42.9) (590) 93.1 7.1 (99.3) (61.6) (42.0) (60.1)

3QFY12 3,028 3,028 406 1,723 70.3 393 13.0 323 10.7 2,845 1,827 6.0 11 63 15 124 4.1 49 39.2 77.2 2.5 0

% chg (qoq) 1.6 1.6 20.7 0.2 12.5 0.7 (88.3) 24.1 1.9 (98.0) 9.2 (18.6) 30.0

FY2012 11,249 11,249 (24) 7,709 68.3 1,466 13.0 1,294 16.8 10,445 804 7.1 46 260 52 550 4.9 182 33.1 374 3.3 -

FY2011 10,005 10,005 (96) 6,364 62.7 1,181 11.8 1,211 19.0 8,661 1,344 13.4 21 194 100 1229 12.3 310 25.2 889 8.9 38 927 14

% chg (yoy) 12.4 12.4 21.1 24.1 6.8 20.6 (40.2) 121.4 34.3 (47.6) (55.3) (41.2) (58.0)

(65.4) (60.1)

77 1.2

30.0 30.0

374 6

(59.7) (58.0)

Exhibit 2: Actual vs. Estimates

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

Actual
3,077 213.2 13.9 39.6 100.3

Estimates
3,170 253.6 12.1 58.5 150.3

Var. (%)
(2.9) (15.9) 14.9 (32.2) (33.3)

May 25, 2012

Crompton Greaves | 4QFY2012 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
Source: Company, Angel Research 9.6 12.2 13.2 19.6 18.1 14.3 16.0 26.8 11.2 11.3 15.7 9.6 10.8 12.3 14.8 12.7 18.0 14.5 18.7 17.3 48.6 31.1 20.2 0.1 46.2 31.0 22.6 0.2 41.1 32.9 25.8 0.2 43.9 32.7 23.3 0.2 42.6 33.7 23.4 0.3 91 74 52 0 217.2 148 79 64 1 291.7 (38.7) (6.2) (18.9) (43.1) (25.6) 67 54 59 0 181 35.0 36.3 (11.9) 41.4 20.1 311 263 225 1 800.1 460 293 263 3 1,018.5 (32.5) (10.2) (14.2) (57.6) (21.4) 946 607 393 2 1,948 819 551 402 3 1,774 15.4 10.1 (2.1) (22.3) 9.8 599 480 377 3 1,459 58.0 26.3 4.4 (30.8) 33.5 2,867 2,134 1,520 10 6,531 2,554 2,021 1,407 17 5,999 12.3 5.6 8.1 (42.4) 8.9

4QFY12

4QFY11

% chg (yoy)

3QFY12

% chg (qoq)

FY2012

FY2011

% chg (yoy)

May 25, 2012

Crompton Greaves | 4QFY2012 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
Source: Company, Angel Research 2.7 12.2 10.8 12.9 13.4 14.3 14.9 (155.2) 2.5 12.5 9.8 16.6 3.3 12.5 11.4 14.7 12.4 14.5 17.6 (79.0) 63.8 19.7 16.2 0.3 65.9 18.9 14.9 0.3 67.8 15.6 16.5 0.1 64.8 18.6 16.4 0.2 64.7 20.1 14.9 0.3 54 74 54 1 184 257 79 65 (13) 388 52 59 49 1 161 4.6 24.8 9.6 62.7 13.8 239 263 210 4 716.3 807 293 264 (25) 1,338.8 (70.3) (10.2) (20.4) (115.0) (46.5) 1,968 607 500 9 3,084 1,923 551 435 8 2,917 2.3 10.1 15.1 11.2 5.7 2,069 475 503 4.5 3,052 (4.9) 27.7 (0.6) 108.8 1.1 7,315 2,105 1,849 26 11,294 6,503 2,021 1,497 32 10,053 12.5 4.2 23.5 (19.5) 12.3

4QFY12

4QFY11

% chg (yoy)

3QFY11

% chg (qoq)

FY2012

FY2011

% chg (yoy)

Power systems Pressure international business margins

witnessed

in

domestic

and

CG witnessed weakness in the power system segment in 4QFY2012, as was the case during the first nine months of the year. On a consolidated basis, the power segment posted 2.3% yoy growth to `1,968cr. On the EBIT margin front, the company is facing issues due to increased raw-material cost, which led to a dip in profitability. The segments EBIT margin declined by 1,061bp on a yoy basis to 2.7%. EBIT margin of the international business continued to reel under pressure, as it posted losses on the EBIT level.

May 25, 2012

Crompton Greaves | 4QFY2012 Result Update

Consumer products (domestic business) Profitability marred by slowdown in economy and high interest rates
For the consumer segment, the companys revenue grew by 10.1% yoy for the quarter to `607cr. The companys margin continued to decline as expected. EBIT margin for the quarter came in at 12.2% against 14.3% in 4QFY2011.

Industrial systems
In the industrial system segment, overall consolidated growth stood at of 15.1% to `500cr. Domestic revenue decreased by 2.1% to `393cr. 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. The segments EBIT margin declined by 409bp on a yoy basis to 10.8% during the quarter. Order book: Consolidated order intake for 4QFY2012 stood at `2,896cr, jump of 12% yoy, led by the power system segment, which saw an increase of 13% yoy compared to an increase of 9% for the industrial segment. Order book at the end of 4QFY2012 stood at `8,366cr.

Exhibit 5: Decent show on the order inflow front

3,300
4,200 3,500 2,800

Exhibit 6: Order backlog provides decent visibility

8,000 3QFY12 7,116 7,165

3,401

2,896

2,732

2,564

2,588

7,500 6,000

2,029

2,052

(` cr)

1,704

2,260

2,100 1,400 700 0

(` cr)

4,500 3,000 1,500 0

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

3QFY10

6,078

4QFY10

6,400

1QFY11

6,802

2QFY11

3QFY11

7,017

4QFY11

1QFY12

7,088

2QFY12

7,108

9,000

Source: Company, Angel Research

Source: Company, Angel Research

May 25, 2012

4QFY12

8,366

Crompton Greaves | 4QFY2012 Result Update

Investment concerns
Business under stress: We believe CG's power and industrial segments 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 Management guided for sales growth to remain at 12-14%, supported by healthy order backlog along with EBITDAM in the range of 8-9%. In-line with managements guidance, we build in conservative assumption (8.0% and 8.4% EBITDAM for FY2013 and FY2014, respectively, much below the historical average of 12.0-13.0%). Given the attractive valuations (stock at ~39% discount to its five-year trading PE multiple), we maintain our positive stance on the company. The pessimism surrounding the companys profitability has clearly been factored in the stock price, given the PE multiple de-rating and underperformance of the stock. We have assigned a multiple of 14.0 to arrive at a target price of `133, implying an upside of 25.1% from current levels.

Change in estimates
We have revised our financial estimates based on the current results, the overall sector outlook as well as managements guidance. We have marginally tweaked our top-line estimates with decent order inflow. On the margin front, we remain conservative and expect the companys margin to remain under pressure.

Exhibit 7: Revised estimates

FY2013E (` cr) Revenue EBITDA EBITDA (%) PAT EPS (`)
Source: Company, Angel Research

FY2014E Var. (%)

(3.8) (20.7) (168) (26.4) (26.4)

Earlier estimates
12,936 1,238 9.6 696 10.9

Revised estimates
12,451 982 7.9 512 8.0

Earlier estimates
14,101 1,405 10.0 753 11.7

Revised estimates
14,265 1,190 8.3 607 9.5

Var. (%)
1.2 (15.4) (163) (19.3) (19.3)

May 25, 2012

Crompton Greaves | 4QFY2012 Result Update

Exhibit 8: One-year forward P/E band

400 320 240

(`)
160 80 0

Sep-07

Sep-08

Sep-09

Sep-10

May-07

May-08

May-09

May-10

May-11

Sep-11

Share Price (`)

Source: Company, Angel Research

6x

12x

18x

24x

Exhibit 9: Peer comparison

Company Reco. CMP Tgt. price (`) ABB* BHEL BGR Energy Cromp. Greaves Jyoti Structures KEC International Thermax
Sell Neutral Neutral Buy Buy Buy Neutral 725 208 293 106 38 51 435

Upside/

P/BV(x)

P/E(x)

FY2012-14E

RoCE (%)

RoE (%)

(`) (Downside) (%) FY13E FY14E FY13E FY14E

498 133 67 73 426 (31.3) 25.1 77.1 44.0 (2.1) 5.4 1.7 1.8 1.8 0.4 0.9 2.8 4.8 1.5 1.6 1.6 0.4 0.8 2.4 39.8 8.1 10.8 13.3 3.5 4.8 14.6 35.0 8.7 9.6 11.2 2.8 4.2 15.3

EPS CAGR FY13E FY14E FY13E FY14E

54.3 (9.1) 1.4 27.5 5.9 2.5 (8.9) 21.0 28.8 10.1 14.5 18.2 21.5 23.9 21.1 23.1 9.9 17.0 19.6 21.1 20.5 14.4 22.7 17.3 13.9 12.7 25.9 20.2 14.6 18.3 17.4 14.9 13.9 24.0 16.9

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

May 25, 2012

May-12

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Crompton Greaves | 4QFY2012 Result Update

Profit & Loss statement (consolidated)

Y/E March (` cr) Operating income % chg Total Expenditure EBITDA % chg (% of Net Sales) Depreciation 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 FY2009 FY2010 FY2011 FY2012 FY2013E FY2014E
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 0 867 305 35.1 563 (1) 2 0 560 560 37.7 9,141 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 0 860 825 47.3 10,005 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 0.0 889 927 12.4 11,249 12.4 10,445 7,685 2,722 1,350 1,125 804 (40) 7.1 260 544 (52.7) 4.8 46 52 9.5 550 (55.3) 0 550 182 33.1 368 5 1 0 374 374 (59.7) 12,451 10.7 11,469 5,966 2,789 1,494 1,220 982 (22) 7.9 296 686 19.4 5.5 48 73 10.3 711 15.2 0 711 199 28.0 512 0 0 0 512 512 22.5 14,265 14.6 13,076 6,913 3,053 1,712 1,398 1,190 (21) 8.3 322 868 26.5 6.1 48 80 8.9 900 0.0 0 900 292 32.5 607 0 0 0 607 607 18.6

May 25, 2012

Crompton Greaves | 4QFY2012 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
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 5,581 144 569 1,786 3,082 3,883 1,698 4,635 4,930 2,508 2,423 110 500 108 5,832 31 566 1,994 3,241 4,091 1,741 4,882 5,280 2,830 2,451 80 500 108 6,740 323 685 2,019 3,713 4,555 2,185 5,324 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 3,399 3,528 16 967 124 4,635 128 3,746 3,875 16 867 124 4,882 128 4,189 4,317 16 867 124 5,324

FY2009 FY2010 FY2011 FY2012E FY2013E FY2014E

May 25, 2012

Crompton Greaves | 4QFY2012 Result Update

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

FY2009 FY2010
867 127 111 (74) (305) 727 (363) (74) 74 (362) 0.0 (124) 86 166 (210) 321 244 566 1,189 155 (13) (110) (365) 857 (168) (386) 110 (444) 55.0 (217) 95 (52) (257) 103 566 669

FY2011 FY2012E FY2013E

1,229 194 (446) (114) (310) 553 (845) (121) 114 (852) 0.0 (31) 165 124 (195) (370) 669 298 332 (154) 298 144 (265) (113) 144 31 618 263 (692) (88) (199) (99) (750) 275 88 (387) 0.0 497 165 711 296 (156) (73) (199) 579 (400) (100) 73 (427) 0.0 (100) 165

FY2014E
900 322 (152) (80) (292) 698 (320) 0 80 (240) 0.0 0 165 (165) 293 31 323

May 25, 2012

10

Crompton Greaves | 4QFY2012 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
0.0 0.0 10.8 (0.2) (0.4) 26.2 (0.1) (0.2) 32.7 0.2 0.9 11.7 0.2 0.6 14.4 0.1 0.3 18.2 3.4 45 79 111 19 3.4 43 84 122 16 3.1 42 86 118 23 2.7 49 91 113 39 2.6 55 93 115 48 2.8 51 89 109 46 41.9 55.5 44.8 43.7 66.9 44.4 34.3 47.6 33.8 12.8 14.8 11.0 14.5 15.6 13.9 17.0 18.7 14.9 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 4.8 66.9 3.2 15.5 10.4 4.3 0.1 10.8 5.5 72.0 2.9 16.3 11.7 3.7 0.2 13.2 6.1 67.5 3.2 19.6 13.2 3.7 0.1 14.4 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 5.8 5.8 9.9 2.2 54.8 8.0 8.0 12.6 2.2 60.2 9.5 9.5 14.5 2.2 67.1 6.9 5.7 2.1 1.9 0.8 6.9 3.0 0.8 8.2 6.9 2.7 2.1 0.7 5.0 2.2 0.7 7.3 6.1 2.1 2.1 0.7 4.9 1.7 0.7 18.2 10.7 1.9 2.1 0.7 9.4 1.6 0.7 13.3 8.4 1.8 2.1 0.6 7.6 1.5 0.7 11.2 7.3 1.6 2.1 0.5 6.0 1.3 0.0

FY2009 FY2010 FY2011 FY2012E FY2013E FY2014E

May 25, 2012

11

Crompton Greaves | 4QFY2012 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%)

May 25, 2012

12