KPIT Cummins Infosystems Ltd.

Template
(All Data in Million INR,except per share price data)
(Red=Assumption,Blue=Actual,Black=Calculation)
Date Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12
Year 2007-A 2008-A 2009-A 2010-A 2011-A 2012-A
Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
2013-A 2014-A 2015-A 2016-E 2017-E 2018-E 2019-E 2020-E
KPIT Cummins Infosystems Ltd.
Income Statement
(All Data in Million INR,except per share price data)
(Red=Assumption,Blue=Actual,Black=Calculation)
Date Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12
Year 2007-A 2008-A 2009-A 2010-A 2011-A 2012-A

Sales 4,637 5,835 7,932 7,316 10,230 15,000

Software Development Expenses 2,884 3,730 4,467 4,091 6,599 7,718
Gross Profit 1,753 2,104 3,464 3,226 3,631 7,282
Selling and Marketing Expenses 512 577 688 664 762
General and Administrative Expenses 533 794 943 948 1,346
Other Expenses 5,117
Operating Profit 708 733 1,834 1,614 1,522 2,166
Depreciation/Amortozation 121 255 436 308 411 445
Operating Profit before Interest , Minorit 587 478 1,397 1,306 1,111 1,721
Interest and Financial Expenses 45 75 45 27 13 73
Operating Profit before tax 542 403 1,352 1,279 1,098 1,648
Other Income 13 199 (574) (253) 5 138
Exceptional Items 100
PBT 555 602 778 1,026 1,103 1,886
Tax Expense 52 76 120 169 155 437
Net Profit After Tax 503 526 658 857 948 1,450
Profit Share in Associate 35
Less: Minority Interest (2) (1) 0 - 2 31
Net Profit After Tax and Minority Interest 505 527 658 857 946 1,454
Exceptional Item - Provision for decline i - 14 - - - -
Net Profit 505 513 658 857 946 1,454
EPS - Reported
Basic 6.67 6.67 8.44 10.97 11.78 8.19
Diluted 6.55 6.55 8.41 10.80 11.37 8.08
Share Count
Basic 76 77 78 78 80 177
Diluted 77 78 78 79 83 180
Bonus 1.00
Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
2013-A 2014-A 2015-A 2016-E 2017-E 2018-E 2019-E 2020-E

22,386 26,940 29,899 39,391 48,298 58,776 70,990 85,119

11,408 13,830 21,473 28,290 34,687 42,212 50,984 61,131
10,978 13,111 8,426 11,101 13,611 16,564 20,006 23,988
- - - - -
- - - - -
7,622 9,334 5,155 6,792 8,327 10,134 12,240 14,675
3,356 3,776 3,271 4,310 5,284 6,430 7,767 9,312
472 540 851 838 1,052 1,312 1,627 2,004
2,884 3,237 2,420 3,471 4,232 5,118 6,140 7,309
142 258 287 172 - - 168 168
2,743 2,979 2,133 3,299 4,232 5,118 5,972 7,140
117 329 352 - 5 207 207 476
(13) 122
2,847 3,430 2,485 3,299 4,237 5,324 6,178 7,616
766 941 115 648 832 1,046 1,214 1,496
2,082 2,490 2,370 2,651 3,404 4,278 4,964 6,120
(5) - -
86 - - - - - - -
1,990 2,490 2,370 2,651 3,404 4,278 4,964 6,120
- - - - - - - -
1,990 2,490 2,370 2,651 3,404 4,278 4,964 6,120

10.86 13.30 12.49 14.16 18.19 22.86 26.52 32.70

10.56 12.95 11.87 13.79 17.71 22.26 25.82 31.84

183 187 187 187 187 187 187 187

188 192 192 192 192 192 192 192
- - - 0x 0x 0x 0x 0x
KPIT Cummins Infosystems Ltd.
Balance Sheet
(All Data in Million INR,except per share price data)
(Red=Assumption,Blue=Actual,Black=Calculation)
Date Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12
Year 2007-A 2008-A 2009-A 2010-A 2011-A 2012-A

Share Capital 150 156 156 157 176 356

Application money 26 28 - 1 3 1
Outstanding Employees Stock options - - 17 5 -
Reserves and Surplus 1,815 2,454 1,475 3,697 5,849 6,768
Total Shareholders' Equity 1,990 2,638 1,631 3,871 6,032 7,125
Secured Loans + Unsecured Loans 1,223 865 1,185 1,108 1,105 822
Minority Interest 5 5 3 - 9 326
Deferred Tax Liability 10 42 60 51 55 8
Other Liabilities 367
Long Term provisions
Total 3,228 3,550 2,878 5,030 7,201 8,649
Gross Block 1,970 2,102 2,205 2,514 2,941 2,538
Less:Accumulated Depreciation 379 629 1,042 1,278 1,678 1,199
Net Block 1,591 1,473 1,163 1,236 1,263 1,339
CIWP 181 207 348 286 317 92
Total Net Block 1,772 1,680 1,510 1,522 1,581 1,431
Intangible assets 329
Intangible assets under development 93
Goodwill 285 950 1,300 3,623
Investments 49 1 0 747 477 217
Other Assets 687
Total Fixed Assets 1,821 1,682 1,795 3,219 3,357 6,379
Current Investments 365
Inventories
Sundry Debtors 1,102 1,432 1,776 1,388 2,525 4,380
Cash & Bank Balance 625 740 1,671 1,052 2,096 1,473
Loans & Advances 345 530 449 677 1,097 602
Other Current Assets 164
Total Current Assets 2,072 2,702 3,896 3,117 5,719 6,983
Short Term Borrowings 1,400
Current Liabilities 506 546 2,716 1,076 1,636 1,757
Provisions 159 287 97 230 238
Other Current Liabilities 1,558
Total Current Liabilities 665 833 2,813 1,306 1,875 4,714
Net Current Assets 1,407 1,868 1,083 1,811 3,844 2,269
Preliminary Expenses 0 0 - - - -
Net Assets 3,228 3,550 2,878 5,030 7,201 8,649
Checksum - - - - - -

Balance Sheet Metrics

Current Ratio 3.12 3.24 1.38 2.39 3.05 1.48

Cash Ratio 0.94 0.89 0.59 0.81 1.12 0.31
Accounts Receivable Turnover 4.21 4.61 4.95 4.63 5.23 4.34
Days Sales Outstanding 86.72 79.26 73.81 78.91 69.81 84.02
Accounts Payable Turnover 5.70 7.09 2.74 2.16 4.87 4.55
Payable Days 64.03 51.45 133.26 169.19 75.01 80.23
Total Debt 1,223 865 1,185 1,108 1,105 822
Debt / Equity 0.61 0.33 0.73 0.29 0.18 0.12
BVPS 25.83 x 29.56 x 27.28 x 34.66 x 59.51 x 36.57 x
ROE % 25% 22% 31% 31% 19% 22%
Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
2013-A 2014-A 2015-A 2016-E 2017-E 2018-E 2019-E 2020-E

386 371 377 377 377 377 377 377

1 15 8 - - - - -
- - - - - - - -
9,975 12,365 12,577 14,451 17,079 20,581 24,770 30,113
10,362 12,751 12,962 14,829 17,457 20,959 25,147 30,491
1,459 1,301 780 - - 762 762 762
270 - - - - - - -
- - - - - - - -
1 - - - - - - -
142 233 423 423 423 423 423 423
12,235 14,285 14,165 15,252 17,880 22,144 26,333 31,676
2,818 3,099 3,339 4,217 5,293 6,602 8,183 10,079
1,433 1,681 1,811 2,649 3,702 5,014 6,641 8,645
1,385 1,418 1,528 1,567 1,591 1,588 1,542 1,435
59 23 24 24 24 24 24 24
1,444 1,441 1,552 1,592 1,615 1,612 1,567 1,459
377 720 776 776 776 776 776 776
184 - - - - - -
4,423 5,994 5,088 5,088 5,088 5,088 5,088 5,088
118 118 - 72 2,951 2,951 6,798 7,252
1,256 1,064 2,136 2,136 2,136 2,136 2,136 2,136
7,801 9,337 9,552 9,663 12,566 12,562 16,364 16,710
2,036 1,741 590 590 590 590 590 590
34 229 229 229 229 229 229
4,673 6,743 6,979 11,099 11,066 15,908 16,672 22,392
1,921 1,908 3,638 945 945 945 945 945
593 744 867 867 867 867 867 867
823 727 847 847 847 847 847 847
10,047 11,897 13,149 14,577 14,544 19,386 20,149 25,870
1,753 3,089 3,677 3,677 3,677 3,677 3,677 3,677
1,904 1,021 1,308 1,760 2,001 2,576 2,952 3,676
1,260 2,259 - - - - -
696 580 3,551 3,551 3,551 3,551 3,551 3,551
5,613 6,949 8,536 8,988 9,230 9,804 10,181 10,904
4,434 4,948 4,613 5,589 5,314 9,582 9,969 14,966
- - 0 0 0 0 0 0
12,235 14,285 14,165 15,252 17,880 22,144 26,333 31,676
- - - - - - - -

1.79 1.71 1.54 1.62 1.58 1.98 1.98 2.37

0.34 0.27 0.43 0.11 0.10 0.10 0.09 0.09
4.95 4.72 4.36 4.36 4.36 4.36 4.36 4.36
 73.80 77.33 83.76 83.76 83.76 83.76 83.76 83.76
6.23 9.46 18.45 18.45 18.45 18.45 18.45 18.45
58.56 38.59 19.79 19.79 19.79 19.79 19.79 19.79
1,459 1,301 780 - - 762 762 762
0.14 0.10 0.06 - - 0.04 0.03 0.03
46.39 x 60.12 x 66.88 x 72.28 x 83.97 x 99.92 x 119.92 x 144.71 x
23% 22% 18% 19% 21% 22% 22% 22%
KPIT Cummins Infosystems Ltd.
Cash Flow Statement
(All Data in Million INR,except per share price data)
(Red=Assumption,Blue=Actual,Black=Calculation)
Date Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12
Year 2007-A 2008-A 2009-A 2010-A 2011-A 2012-A

Net profit/Loss before tax. 555 602 778 1,026 1,103 1,886
Adjustment for -
Net Profit Loss on sale of Fixed Assets(Ne 5 (3) 10 18 2 1
Depreciation/Amortisation 121 255 436 308 411 445
Interest and Financial Charges 67 94 74 67 42 73
Interest Income (22) (19) (24) (40) (32) -17
Provision for Doubtful debts 12 7 43 (0) 0 0
Bad debt written off - - 4 8 -
Provision for doubtful advances - - 12 (8) -
Employee stock option cost - - 17 0 4
Dividend Income (2) (1) (12) (34) -37
Minority Interest 2 - - - -
Effect of exchange dif on translation of su - - (1) (1) (10) -
Preliminary exp(to the extend written off - 0 0 - - -
Profit on closure on subsidiary (1) - - - - -
Exchage Differences on translation of for - - (16) 37 (31) 20
Impairment of Goodwill
UnRealised foreign Gain or Loss 1 (59) (81) 23 19 -128
Profit on sale of Business Assets -100
Operating profit before working capital ch 738 876 1,219 1,459 1,471 2,146
-
Change in Other Debt
Change in Secured Loans (126) (82) 161 (237) (226) 607
Change in Unsecured Loans
Proceeds from issue of share capital 111 - 0 26 1,232 65
Share Issue expenses for Preferential Allotment (30) -
Application Money received - 393 - 1 2 -
Proceeds of upfront considiration for sh - 19 - - - -
Proceds from issue of share on employee 20 - - - - -
Availment of Loan 298 - - - - -
proceeds from working capital loan(net0 176 (197) 161 203 128 596
Proceeds from Short-term loan 39 (43)
Increase/(decrease)in finance lease oblig 0 1 (2) (2) 6 -
Dividend paid including dividend tax (29) (61) (64) (55) (64) -72
Interest and finance charges (67) (94) (74) (68) (42) (69)
Interest on Term loan capitalised (29) - - - - -
Proceeds from Issued/ Paid up/ Subcribed Capital
Net cash from/(used in)financing activities 354 (22) 182 (132) 1,045 1,084

Increase/Decrease in foreign exchange tra (1) 2 - 0

Exchange differences on translation of fo (1) (5) 16 (37) 31 -20
Net increase/(decrease)in cash and cash 214 114 720 (528) 1,042 (760)
-
Cash - BOP 411 625 740 1,460 1,001 2,080
Cash - EOP 625 740 1,460 1,001 2,080 1,467
Cash & Cash Equivalents of sparta consulti - - - 69 - -
Cash and cash equivalents of In2soft GmbH - - - - 0 -
Cash and cash equivalents of CPG Solutions - - - - 37 -
Add: Cash & cash equivalents on acquisition of subsidiaries 146

Deposits with original maturity over th - - 198 39 - 6

Deposits under lien - - 13 13 16

Checksum - - - - - -
Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
2013-A 2014-A 2015-A 2016-E 2017-E 2018-E 2019-E 2020-E

2,847 3,430 2,485 3,299 4,237 5,324 6,178 7,616

1 (0) - - - - - -
472 540 851 838 1,052 1,312 1,627 2,004
142 182 287 172 - - 168 168
(18) (30) - - - - - -
94 - - - - - -
- - - - - -
- - - - - -
- - - - - -
(54) (128) - - 5 207 207 476
- - - - - - - -
(4) - - - - - -
- - - - - - - -
- - - - - - - -
- 4 - - - - - -
906 - - - - -
(113) 177 - - - - - -
(81) (122)
3,284 4,051 4,529 4,310 5,294 6,843 8,180 10,264

1,090 191
(112) (181) (521) (780) - 762 - -
76 -139
1,706 75 6 - - - - -
(44) - - - - - -
- - (7) (8) - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
279 1,176 - - - - - -
- - - - - - - -
- - - - - - - -
(145) (197) (2,159) (776) (776) (776) (776) (776)
(128) (179) (287) (172) - - (168) (168)
- - - - - - - -
44
2,722 791 (2,967) (1,736) (776) (14) (945) (945)

(4) - - - - - -
4 - - - - - - -
426 (91) 1,379 (2,692) - (0) - -

1,467 1,893 1,813 3,192 500 500 500 500

1,893 1,813 3,192 500 500 500 500 500
- - - - - - - -
- - - - - - - -
- - - - - - - -
- 11

28 95 445 445 445 445 445 445

- - - - - -

- - - - - - - -
KPIT Cummins Infosystems Ltd.
Revenue Metrics
(All Data in Million INR,except per share price data)
(Red=Assumption,Blue=Actual,Black=Calculation)
Date Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12
Year 2007-A 2008-A 2009-A 2010-A 2011-A 2012-A

Revenue By Billing rates

Onsite 2,315 2,756 3,441 3,237 4,714 7,296

Offshore 2,322 3,079 4,490 4,079 5,516 7,704
Telematics Solutions
Total Revenue 4,637 5,835 7,932 7,316 10,230 15,000

Onsite/Offsite - Split (Revenues)

Onsite Revenues 50% 47% 43% 44% 46% 49%
Offshore Revenues 50% 53% 57% 56% 54% 51%
Telematics Solutions

Employee Metrics

Development Team - Onsite 500 543 561 549 731 813

Development Team - Offshore 2,302 2,872 3,673 3,803 5,253 5,466
Total 2,802 3,415 4,234 4,352 5,984 6,279

Margin Analysis (%) of Total

Development Team - Onsite 18% 16% 13% 13% 12% 13%
Development Team - Offshore 82% 84% 87% 87% 88% 87%

Onsite FTE 465 495 534 489 660 745

Offshore FTE 1,712 2,031 2,623 2,748 3,671 3,968
Total FTE 2,177 2,526 3,157 3,237 4,331 4,713

Employee Strength - year End

Development Team 2,900 4,062 4,168 4,478 5,998 7,071
Gen Management /Support 318 373 357 380 414 526
Marketing 38 46 51 60 102 122
Total 3,256 4,481 4,576 4,918 6,514 7,719

Employee Additions 1,225 95 342 1,596 1,205

Net Employee Addition

Development at Qtr end 1,162 106 310 1,520 1,073
Gen Management /Support 55 (16) 23 34 112
Marketing 8 5 9 42 20
Total 1,225 95 342 1,596 1,205

Margin Analysis % of Gross Addition

Development at Qtr end 94.9% 111.6% 90.6% 95.2% 89.0%
Gen Management /Support 4.5% -16.8% 6.7% 2.1% 9.3%
Marketing 0.7% 5.3% 2.6% 2.6% 1.7%
Onsite/Offsite Split (Utilisation)
Onsite Revenue 93% 91% 95% 89% 90% 92%
Offsite Revenue 74% 71% 71% 72% 70% 73%

Number of Days utilised in a Month 22 22 22 22 22 22

Number of Hours Utilised in a Day 8 8 8 8 8 8

Person Hours Billed ('Million)

Onsite 0.98 1.05 1.13 1.03 1.39 1.57
Offshore 3.62 4.29 5.54 5.80 7.75 8.38

Billing Per Hour (INR)

Onsite 2,357 2,636 3,051 3,135 3,382 4,637
Offshore 642 718 811 703 711 919

Exchange Rate (Rs./$) 45 45 45 45 45 50

Billing Per Hour ($)

Onsite 52 59 68 70 75 93
Offshore 14 16 18 16 16 18

y/y Growth in Billing Rate (%)

Onsite 3% 12% 16% 3% 8% 23%
Offshore 6% 12% 13% -13% 1% 16%
Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
2013-A 2014-A 2015-A 2016-E 2017-E 2018-E 2019-E 2020-E

12,039 14,742 15,984 21,601 26,142 31,394 37,410 44,246

10,347 12,199 12,788 17,790 22,156 27,382 33,580 40,873
1,127
22,386 26,940 29,899 39,391 48,298 58,776 70,990 85,119

54% 55% 53% 55% 54% 53% 53% 52%

46% 45% 43% 45% 46% 47% 47% 48%
3.77%

1111 1265 1477 1,938 2,277 2,655 3,072 3,527

6,283 6,847 7,732 10,147 11,922 13,900 16,081 18,466
7,394 8,112 9,209 12,085 14,199 16,555 19,153 21,993

15% 16% 16% 16% 16% 16% 16% 16%

85% 84% 84% 84% 84% 84% 84% 84%

1045 1153 1322 1,735 2,038 2,376 2,749 3,157

4,646 4,937 5,364 7,040 8,271 9,644 11,157 12,811
5,691 6,090 6,686 8,774 10,309 12,020 13,906 15,968

7,648 8,583 10,213 12,085 14,199 16,555 19,153 21,993

538 558 586 618 654 694 739 788
135 155 181 211 245 283 324 369
8,321 9,296 10,980 12,914 15,098 17,532 20,216 23,150

602 975 1,684 1,934 2,184 2,434 2,684 2,934

577 935 1,630 1,872 2,114 2,356 2,598 2,840

12 20 28 32 36 40 45 49
13 20 26 30 34 38 41 45
602 975 1,684 1,934 2,184 2,434 2,684 2,934

95.8% 95.9% 96.8% 96.79% 96.79% 96.79% 96.79% 96.79%

2.0% 2.1% 1.7% 1.66% 1.66% 1.66% 1.66% 1.66%
2.2% 2.1% 1.5% 1.54% 1.54% 1.54% 1.54% 1.54%
 94% 91% 89% 89% 89% 89% 89% 89%
74% 72% 69% 69% 69% 69% 69% 69%

22 22 22 22 22 22 22 22
8 8 8 8 8 8 8 8

2.21 2.44 2.79 3.66 4.30 5.02 5.81 6.67

9.81 10.43 11.33 14.87 17.47 20.37 23.56 27.06

5,455 6,054 5,725 5,897 6,073 6,256 6,443 6,637

1,054 1,170 1,129 1,197 1,268 1,344 1,425 1,511

55 60 60 60 60 60 60 60

99 101 95 98 101 104 107 111

19 19 19 20 21 22 24 25

7% 2% -5% 3% 3% 3% 3% 3%
4% 2% -4% 6% 6% 6% 6% 6%
KPIT Cummins Infosystems Ltd.
Cost Metrics
(All Data in Million INR,except per share price data)
(Red=Assumption,Blue=Actual,Black=Calculation)
Date Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12
Year 2007-A 2008-A 2009-A 2010-A 2011-A 2012-A

Sales 4,637 5,835 7,932 7,316 10,230 15,000

Software Development Expenses 2,884 3,730 4,467 4,091 6,599 7,718

Selling and Marketing Expenses 512 577 688 664 762 -
General and Administrative Expenses 533 794 943 948 1,346 -
Other Expenses - - - - - 5,117
Depreciation/Amortozation 121 255 436 308 411 445
Interest and Financial Expenses 45 75 45 27 13 73
Other Income 13 199 (574) (253) 5 138
Tax Expense 52 76 120 169 155 437
Less: Minority Interest (2) (1) 0 - 2 31

Common Size Analysis

Software Development Expenses 62% 64% 56% 56% 65% 51%
Selling and Marketing Expenses 11% 10% 9% 9% 7% 0%
General and Administrative Expenses 11% 14% 12% 13% 13% 0%
Other Expenses 0% 0% 0% 0% 0% 34%
Depreciation/Amortozation 3% 4% 6% 4% 4% 3%
Interest and Financial Expenses 1% 1% 1% 0% 0% 0%
Other Income 0% 3% -7% -3% 0% 1%
Tax Expense 1% 1% 2% 2% 2% 3%
Less: Minority Interest 0% 0% 0% 0% 0% 0%

Effective Tax Rate % 9% 13% 15% 16% 14% 23%

Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
2013-A 2014-A 2015-A 2016-E 2017-E 2018-E 2019-E 2020-E

22,386 26,940 29,899 39,391 48,298 58,776 70,990 85,119

11,408 13,830 21,473 28,290 34,687 42,212 50,984 61,131

- - - - - - - -
- - - - - - - -
7,622 9,334 5,155 6,792 8,327 10,134 12,240 14,675
472 540 851 838 1,052 1,312 1,627 2,004
142 258 287 172 - - 168 168
117 329 352 - 5 207 207 476
766 941 115 648 832 1,046 1,214 1,496
86 - - - - - - -

51% 51% 72% 72% 72% 72% 72% 72%

0% 0% 0% 0% 0% 0% 0% 0%
0% 0% 0% 0% 0% 0% 0% 0%
34% 35% 17% 17% 17% 17% 17% 17%
2% 2% 3% 2% 2% 2% 2% 2%
1% 1% 1% 0% 0% 0% 0% 0%
1% 1% 1% 0% 0% 0% 0% 1%
3% 3% 0% 2% 2% 2% 2% 2%
0% 0% 0% 0% 0% 0% 0% 0%

27% 27% 5% 20% 20% 20% 20% 20%

KPIT Cummins Infosystems Ltd.
Schedules
(All Data in Million INR,except per share price data)
(Red=Assumption,Blue=Actual,Black=Calculation)
Date Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12
Year 2007-A 2008-A 2009-A 2010-A 2011-A 2012-A

Gross Block 1,970 2,102 2,205 2,514 2,941 2,538

Less:Accumulated Depreciation 379 629 1,042 1,278 1,678 1,199
Net Block 1,591 1,473 1,163 1,236 1,263 1,339
CIWP 181 207 348 286 317 92
Total Net Block 1,772 1,680 1,510 1,522 1,581 1,431

Depreciation 121 255 436 308 411 445

Depreciation as % Gross block 6% 12% 20% 12% 14% 18%

Purchase of Assets 918 360 493 238 469 609

Purchase of Assets as % of Revenues 20% 6% 6% 3% 5% 4%

Dividends Paid including dividend tax 29 61 64 55 64 72

Dividend Tax 6 13 13 11 13 15
Dividends Declared (DPS) 0.31 0.63 0.65 0.56 0.64 0.32
Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
2013-A 2014-A 2015-A 2016-E 2017-E 2018-E 2019-E 2020-E

2,818 3,099 3,339 4,217 5,293 6,602 8,183 10,079

1,433 1,681 1,811 2,649 3,702 5,014 6,641 8,645
1,385 1,418 1,528 1,567 1,591 1,588 1,542 1,435
59 23 24 24 24 24 24 24
1,444 1,441 1,552 1,592 1,615 1,612 1,567 1,459

472 540 851 838 1,052 1,312 1,627 2,004

17% 17% 25% 19.88% 20% 20% 20% 20%

701 689 298 877 1,076 1,309 1,581 1,896

3.13% 2.56% 1.00% 2.23% 2% 2% 2% 2%

145 197 2,159 776 776 776 776 776

30 40 442 159 159 159 159 159
0.63 0.84 9.17 3.55 3.55 3.55 3.55 3.55
KPIT Cummins Infosystems Ltd.
Debt Schedule
(All Data in Million INR,except per share price data)
(Red=Assumption,Blue=Actual,Black=Calculation)
Date Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12
Year 2007-A 2008-A 2009-A 2010-A 2011-A 2012-A

Cash BOP
Cash Flow Before Financing
Cash For other financing items
Minimum Cash 500
Cash Available for debt repayment

Secured Debt 1,223 865 1,185 1,108 1,105 822

Unsecured Debt - - - - - -
Other debt
Total Debt 1,223 865 1,185 1,108 1,105 822

Repayment of Debt
Secured Debt
Unsecured Debt
Other Debt

Cash available for Investment

Investment 49 1 0 747 477 217

Dividend Income 2 1 - 12 34 37
Dividend Income as % Investment 0% 1% 0% 3872% 5% 8%

Interest and Finance Charges 67 94 74 67 42 73

% Interest Rate 8% 9% 6% 4% 7%
Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
2013-A 2014-A 2015-A 2016-E 2017-E 2018-E 2019-E 2020-E

3,192 500 500 500 500

(885) 3,656 14 4,791 1,399
(956) (776) (776) (945) (945)
(500) (500) (500) (500) (500)
852 2,879 (762) 3,847 454

1,459 1,301 780 - - - - -

- - - - - - - -
- - 762 762 762
1,459 1,301 780 - - 762 762 762

780 - - - -
- - - - -
- - (762) - -

72 2,879 - 3,847 454

118 118 - 72 2,951 2,951 6,798 7,252

54 128 - - 5 207 207 476

25% 109% 0% 7% 7% 7% 7% 7%

142 182 287 172 - - 168 168

17% 12% 22% 22% 22% 22% 22% 22%
KPIT Cummins Infosystems Ltd.
DCF - Valuation
(All Data in Million INR,except per share price data)
(Red=Assumption,Blue=Actual,Black=Calculation)

Growth Assumptions Enterpsire Value (EV)

Long term World GDP growth rate 3%
Current Market Price
Diluted Shares
CAPM Assumptions Market Capitalisation
Ke 13.6% Long Term Liabilities
RFR 8% Less: Cash & Cash Equivalents
Beta 0.70 Net Debt
Rp 8% Current Enterprise Value (EV)

Calculation of Free Cash Flow

Explicit Forecast Period

2015-A 2016-E 2017-E 2018-E 2019-E

Revenues 29,899 39,391 48,298 58,776 70,990

EBITDA 3,271 4,310 5,284 6,430 7,767
EBIT 2,420 3,471 4,232 5,118 6,140
Tax Expense 115 648 832 1,046 1,214
Net Operating Profit After Tax (NOPAT) 2,305 2,823 3,399 4,072 4,926
Depreciation & Amortisation 851 838 1,052 1,312 1,627
Working Capital Change 1,184 (3,669) 275 (4,268) (387)
Operating Cash Flow 4,340 (7) 4,726 1,117 6,166
Capex (298) (877) (1,076) (1,309) (1,581)
FCF 4,042 (885) 3,650 (193) 4,585

Diluted Shares 192 192 192 192 192

Projection Year 1 2 3 4
Discount Factor 0.88 0.77 0.68 0.59
Present Value of FCF (777) 2,815 (130) 2,726

Y/Y Growth Analysis

Revenues 32% 23% 22% 21%
EBITDA 32% 23% 22% 21%
EBIT 43% 22% 21% 20%
Depreciation & Amortisation -2% 26% 25% 24%

Margin Analysis (As % of Revenues)

EBITDA Margin 11% 11% 11% 11% 11%
EBIT Margin 8% 9% 9% 9% 9%
Depreciation & Amortisation 3% 2% 2% 2% 2%
Capex 1% 2% 2% 2% 2%

Tax Rate (Tax Expense/EBIT) 5% 19% 20% 20% 20%

Terminal Value Calculated Equity Value
Sum of PV of FCF for explicit forecast 14,562 Enterprise Value
WACC 14% - Debt
Long term growth in EBIT 3% + Cash
Present Value of terminal value 20,704 Net Debt
Terminal Value as % of Total Value 59% Equity Value

Sensitivity Analysis

Terminal Growth Rate (%)

198.32 2.0% 2.5%
13.0%
13.5%
14.0%

WACC
14.5%
15.0%
15.5%
 Debt Equity Weightage
E/(D+E) 96%
Rs. 103.50 D/(D+E) 4%
192
19,897 Interest Rate (%) 22%
779.9 Tax Rate (@) 5%
h Equivalents 3,637.5
(2,857.7) WACC Calculation
17,039 WACC 13.88%

od First Stage of Valuation Terminal

Year
2020-E 2021-E 2022-E 2023-E 2024-E 2025-E 2026-E

85,119 99,661 113,881 126,922 137,881 145,901 150,278

9,312 10,903 12,459 13,886 15,085 15,962 16,441
7,309 8,557 9,778 10,898 11,839 12,528 12,903
1,496 1,752 2,002 2,231 2,424 2,565 2,642
5,812 6,805 7,776 8,667 9,415 9,963 10,262
2,004 2,346 2,681 2,988 3,246 3,435 3,538
(4,997) (3,217) (3,217) (3,217) (3,217) (3,217) (3,217)
2,819 5,934 7,240 8,438 9,444 10,180 10,582
(1,896) (2,220) (2,537) (2,827) (3,071) (3,250) (3,348)
923 3,714 4,703 5,610 6,372 6,930 7,235

192 192 192 192 192 192 192

5 6 7 8 9 10 11
0.52 0.46 0.40 0.35 0.31 0.27 0.24
482 1,703 1,893 1,983 1,978 1,889 1,732

20% 17% 14% 11% 9% 6% 3%

20% 17% 14% 11% 9% 6% 3%
19% 17% 14% 11% 9% 6% 3%
23% 17% 14% 11% 9% 6% 3%

11% 11% 11% 11% 11% 11% 11%

9% 9% 9% 9% 9% 9% 9%
2% 2% 2% 2% 2% 2% 2%
2% 2% 2% 2% 2% 2% 2%

20% 20% 20% 20% 20% 20% 20%

 Intrinsic Value
35,266 Equity Value 38,124
780 Diluted Shares 192
3,638
(2,858) Intrinsic Value 198.32
38,124

Terminal Growth Rate (%)

3.0% 3.5% 4.0%
KPIT Cummins Infosystems Ltd.
Relative Valuation
(All Data in Million INR,except per share price data)
(Red=Assumption,Blue=Actual,Black=Calculation)

Company CMP NOS. M Cap Debt Cash EV

KPIT Cummins 104 187 19,373 780 3,638 16,516

Cyient Limited 540 112 60,674 470 6,229 54,916
Hexaware 285 301 85,819 31 2,865 82,985
Mphasis 375 210 78,803 3,094 13,208 68,688
NIIT 38 165 6,334 84 3,375 3,043

EV/Revenue P/S
FY12E FY13E FY14E FY12E FY13E

Cyient Limited 2.01 1.63 1.44 2.22 1.81

Hexaware 2.75 2.42 2.24 2.84 2.50
Mphasis 1.19 1.14 1.06 1.36 1.31
NIIT 0.32 0.28 0.23 0.66 0.57
Aggregate multiple - 1st Quartile 0.97 0.93 0.85 1.19 1.13

Valuation of KPIT Based on EV/Revenue

Multiple EV Debt Cash Equity Value
FY12E EV/Revenue 0.97 38,179 780 3,638 41,037
FY13E EV/Revenue 0.93 44,691 780 3,638 47,549
FY14E EV/Revenue 0.85 50,018 780 3,638 52,876

Valuation of KPIT Based on P/S

Multiple Price
350
FY12E P/S 1.19 249.52
FY13E P/S 1.13 290.51
300
FY14E P/S 1.03 323.10
237
Valuation of KPIT Based on P/E 250
Multiple Price
FY12E P/E 15.94 219.86 200
FY13E P/E 10.11 179.13
FY14E P/E 8.93 198.65 150 159

Sales Price - Valuation 100

Min Max Diff
DCF 159 237 78 50
EV/Revenue 219 282 63
P/S 250 323 74 0
P/E 179 220 41 DCF E
 Sales (Rs. mn) EPS(Rs.)
FY12E FY13E FY14E FY12E FY13E FY14E

39,391 48,298 58,776 13.79 17.71 22.26

27,373 33,597 38,068 31.18 34.48 40.12
30,199 34,352 37,000 13.75 15.93 17.50
57,862 60,149 64,829 31.74 34.83 38.38
9,642 11,050 13,500 2.20 4.70 6.00

P/S P/E
FY14E FY12E FY13E FY14E

1.59 17.32 15.66 13.46

2.32 20.73 17.89 16.29
1.22 11.81 10.77 9.77
0.47 17.43 8.16 6.39
1.03 15.94 10.11 8.93

Price
219.24
254.03
282.49

Football Field
323

282
237
250 220
219

179
159

DCF EV/Revenue P/S P/E