RESULTS REVIEW 4QFY18 24 MAY 2018

Entertainment Network
BUY
INDUSTRY MEDIA Weak end to feeble year
CMP (as on 24 May 2018) Rs 651 ENIL’s 4QFY18 was in-line but muted. Revenue Key highlights
declined 3.7% YoY owing to high base and cut in ad ▪ Legacy stations weak in FY18: ENIL legacy 35
Target Price Rs 827 volumes. EBITDA was flat YoY while APAT was up station’s revenue declined 12.5% (volumes -15%, rate
Nifty 10,514 13% (RPAT -15% due to higher tax). +3%) in FY18 leading to 24% drop in EBITDA. This was
Sensex 34,663 ENIL registered healthy revenue, EBITDA and due to economic slowdown, curb on advertising
KEY STOCK DATA earnings CAGR of 14/15/17% over FY13-16, despite minutes/hour by ENIL and issue with a client. With
zero inventory addition. Over FY16-18, ENIL’s majority of the issue behind ENIL, we expect legacy
Bloomberg ENIL IN operational stations expanded from 35 to 52. Yet, stations to register ~9% growth in FY19.
No. of Shares (mn) 48 its revenue, EBITDA and PAT grew by 3/-14/-39% ▪ New stations drive growth: Decline in old stations
MCap (Rs bn) / ($ mn) 32/463 CAGR. This is primarily owing to economic was offset by growth in 17 new stations (Phase III,
6m avg traded value (Rs mn) 35 slowdown and company specific issues in FY18. batch 1) launched in 2HFY17. Their revenue increased
STOCK PERFORMANCE (%)
Launch of new stations accentuated the decline. from Rs 0.25bn to Rs 0.73bn (14% of Consol). EBITDA
Led by economic tailwinds, higher utilization and loss declined from Rs 0.3bn to Rs 20mn. These
52 Week high / low Rs 1,008/613
price increases in established stations, low base stations would be one of the key earning drivers as
3M 6M 12M effect and as new stations start contributing we their utilization improves from current 20-25%. We
Absolute (%) (5.4) (15.8) (10.6) expect ENIL to register healthy revenue and earning thus expect ENIL’s margin to expand from historic low
Relative (%) (7.0) (18.7) (25.0) CAGR of 15% and 34% from FY18-20E. of ~21% in FY18 to 27% in FY20 and to 31% by FY23E.
BUY with TP of Rs 827 at 30x FY20E FCFE per share. Historically ENIL’s margin stood at 31-33% in FY11-16.
SHAREHOLDING PATTERN (%)
ENIL is best poised to capture the recovery with its ▪ Near term outlook is positive led by low base effect,
Promoters 71.2
strong radio footprint. Currently only 35 of its 76 increase in utilization of new stations and upcoming
FIs & Local MFs 12.4 stations contribute to profitability. elections should provide boosts to ad growth.
FPIs 8.8
Consolidated Financial Summary
Public & Others 7.6 (Rs mn) 4QFY18 4QFY17 YoY (%) 3QFY18 QoQ (%) FY16 FY17 FY18 FY19E FY20E
Source : BSE Net Sales 1,594 1,655 (3.7) 1,484 7.4 5,086 5,565 5,379 6,277 7,182
EBITDA 354 352 0.6 356 (0.6) 1,585 1,259 1,161 1,663 1,973
APAT 145 128 13.1 136 6.3 1,062 533 390 595 705
Diluted EPS (Rs) 3.0 2.7 13.1 2.9 6.3 22.3 11.2 8.2 12.5 14.8
P/E (x) 29.3 58.3 79.6 52.2 44.1
Himanshu Shah EV / EBITDA (x) 19.6 24.6 26.1 18.7 15.2
himanshu.shah@hdfcsec.com RoE (%) 14.0 6.4 4.5 6.5 7.3
+91-22-6171-7315 Source: Company, HDFC sec Inst Research

HDFC securities Institutional Research is also available on Bloomberg HSLB <GO> & Thomson Reuters
 ENIL : RESULTS REVIEW 4QFY18

Quarterly Financial Snapshot

% chg % chg
% chg % chg
4QFY17 1QFY18 2QFY18 3QFY18 4QFY18 FY16 FY17 FY18 FY17/ FY18/
ENIL’s 4QFY18 revenue YoY QoQ
FY16 FY17
decline is owing to high base Revenue 1,655 1,044 1,257 1,484 1,594 (3.7) 7.4 5,086 5,565 5,379 9.4 (3.3)
effect (4QFY17 +13%, 4QFY16 Programming 73 64 63 70 77 4.4 9.6 179 255 273 42.6 7.2
+18%), cut in ad volumes to License fee 94 80 87 88 92 (2.0) 4.5 262 334 347 27.4 4.0
improve listenership and past Employee cost 246 312 322 261 290 18.3 11.2 938 1,054 1,185 12.3 12.5
issues with government as a Mktg exps 476 107 182 343 461 (3.2) 34.2 997 1,294 1,093 29.8 (15.5)
client which stands resolved Other exps 414 314 319 366 320 (22.6) (12.5) 1,125 1,370 1,319 21.8 (3.7)
Total Opex 1,303 877 973 1,128 1,240 (4.8) 9.9 3,502 4,306 4,218 23.0 (2.0)
but recovery is slow
EBITDA 352 167 284 356 354 0.6 (0.6) 1,585 1,259 1,161 (20.6) (7.8)
Depreciation 164 156 159 161 158 (3.5) (1.6) 361 536 635 48.6 18.4
Finance costs 50 12 13 12 10 (80.5) (21.4) 0 136 47 na (65.3)
Other Income 52 29 23 19 29 (45.3) 49.9 349 203 99 (41.9) (51.1)
Decline in other expenses PBT 190 27 136 202 214 13.1 6.3 1,573 790 578 (49.8) (26.8)
QoQ/YoY owing to write back Tax 49 23 75 70 96 95.7 36.8 488 238 264 (51.2) 11.2
of provisions on collections RPAT 140 3 61 131 118 (15.9) (10.0) 1,085 552 314 (49.2) (43.1)
improvement. ENIL prudently APAT 128 (24) 91 136 145 13.1 6.3 1,062 533 348 (49.8) (34.7)
Cash PAT
provides for 180 days plus 305 160 220 292 277 (9.2) (5.4) 1,446 1,088 948 (24.8) (12.8)
(RPAT+Dep)
outstanding and on
collections the provision is chg
chg YoY chg YoY chg YoY
reversed As % of revenue 4QFY17 1QFY18 2QFY18 3QFY18 4QFY18 QoQ FY16 FY17 FY18
(bps) (bps) (bps)
(bps)
Programming 4.4 6.1 5.0 4.7 4.8 37 10 3.5 4.6 5.1 107 50
License fee 5.7 7.7 6.9 5.9 5.8 10 (16) 5.1 6.0 6.5 85 46
Employee cost 14.8 29.9 25.6 17.6 18.2 338 63 18.4 18.9 22.0 48 310
Mktg exps 28.8 10.2 14.5 23.1 28.9 14 578 19.6 23.3 20.3 364 (293)
Other exps 25.0 30.1 25.4 24.7 20.1 (493) (456) 22.1 24.6 24.5 249 (9)
Total Opex 78.7 84.0 77.4 76.0 77.8 (95) 178 68.8 77.4 78.4 854 104
EBITDA 21.3 16.0 22.6 24.0 22.2 95 (178) 31.2 22.6 21.6 (854) (104)
Depreciation 9.9 15.0 12.6 10.8 9.9 2 (91) 7.1 9.6 11.8 254 216
Finance costs 3.0 1.2 1.0 0.8 0.6 (243) (23) 0.0 2.4 0.9 243 (156)
Other Income 3.2 2.8 1.8 1.3 1.8 (137) 51 6.9 3.6 1.8 (322) (180)
PBT 11.5 2.6 10.8 13.6 13.4 199 (14) 30.9 14.2 10.8 (1,673) (344)
Tax 3.0 2.2 5.9 4.7 6.0 306 130 9.6 4.3 4.9 (531) 64
PAT 8.5 0.3 4.8 8.9 7.4 (107) (144) 21.3 9.9 5.8 (1,142) (408)
Tax as % of PBT 25.9 87.6 55.0 34.9 44.9 1,894 1,001 31.0 30.1 45.7 (87) 1,560
Source: Company, HDFC sec Inst Research

Page | 2
 ENIL : RESULTS REVIEW 4QFY18

Consolidated Financial Performance

1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 4QFY18 FY16 FY17 FY18
Overall
Revenue 1,108 1,296 1,506 1,655 1,044 1,257 1,484 1,594 5,086 5,565 5,379
% chg YoY 9.0 11.5 4.9 12.4 (5.8) (3.0) (1.5) (3.7) 16.0 9.4 (3.3)
EBITDA 294 231 381 352 167 284 356 354 1,585 1,259 1,161
EBITDA Margin
26.6 17.8 25.3 21.3 16.0 22.6 24.0 22.2 31.2 22.6 21.6
Reduced losses in new %
stations lead to modest % chg YoY (16.8) (39.0) (18.5) (8.2) (43.3) 22.8 (6.6) 0.6 9.1 (20.6) (7.8)
PAT 165 78 162 128 18 91 136 145 1,062 533 390
decline in EBITDA
PAT Margin % 14.9 6.0 10.8 7.7 1.7 7.3 9.2 9.1 20.9 9.6 7.3
% chg YoY (39.1) (69.1) (46.6) (45.6) (89.1) 17.3 (16.0) 13.1 0.2 (49.8) (26.8)
Steep decline in legacy Legacy stations
stations EBITDA owing to Revenue 1,108 1,296 1,410 1,495 937 1,116 1,270 1,327 5,086 5,310 4,650
decline in utilization as ENIL % chg YoY 9.0 11.5 (1.8) 1.6 (15.4) (13.9) (10.0) (11.3) 16.0 4.4 (12.4)
curb advertising EBITDA 371 329 444 415 210 302 345 324 1,585 1,559 1,181
minutes/hour (volumes -15%) EBITDA Margin
33.5 25.4 31.5 27.8 22.4 27.0 27.2 24.5 31.2 29.4 25.4
%
and offset the same through
% chg YoY 4.7 (13.3) (5.0) 8.3 (43.2) (8.4) (22.4) (21.8) 9.1 (1.6) (24.2)
price increases (+3%) New stations
Revenue - - 96 159 106 142 214 267 - 256 729
Industry peers witnessed a EBITDA (76) (98) (63) (63) (44) (18) 11 30 - (300) (20)
pric•e decline of 7-13%

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 ENIL : RESULTS REVIEW 4QFY18

Revenue trend EBITDA trend

Revenue (Rs Mn) chg YoY (%) - RHS EBITDA (Rs Mn) chg YoY (%) - RHS
1,750 25.0 500 25.0
4th
ENIL’s revenue is down for 20.0 15.0
1,550 400
consecutive quarter, EBITDA 15.0 5.0
has declined in 7 out of 8 1,350 10.0 300 (5.0)
quarters and RPAT is down for
5.0 (15.0)
10th quarter 1,150 200
- (25.0)
950 100
(5.0) (35.0)
Multitude of factors has lead 750 (10.0) - (45.0)

1QFY16
2QFY16
3QFY16
4QFY16
1QFY17
2QFY17
3QFY17
4QFY17
1QFY18
2QFY18
3QFY18
4QFY18

1QFY16
2QFY16
3QFY16
4QFY16
1QFY17
2QFY17
3QFY17
4QFY17
1QFY18
2QFY18
3QFY18
4QFY18
to sub-par performance of
ENIL over FY16-18 such as (a)
economic slowdown on
Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research
account of GST, RERA,
demonetization etc (b)
operating losses on seventeen EBITDA margin trend APAT trend
new stations launches, % RPAT (Rs Mn) chg YoY (%) - RHS
associated depreciation and 34.9
35.0 350 25.0
interest costs (c) issue with 32.6
300
government client in 1Q and 32.6 -
30.0 250
3QFY18 etc (d) ENIL is
26.6 (25.0)
strategically reducing 25.3
24.0
200
25.0 26.0
inventory to improve 22.6 150 (50.0)
listenership. This reset is 100
21.3 22.2
leading to volatility in 20.0 (75.0)
50
growth. 17.8 16.0 - (100.0)
15.0
•

1QFY16
2QFY16
3QFY16
4QFY16
1QFY17
2QFY17
3QFY17
4QFY17
1QFY18
2QFY18
3QFY18
4QFY18
1QFY16
2QFY16
3QFY16
4QFY16
1QFY17
2QFY17
3QFY17
4QFY17
1QFY18
2QFY18
3QFY18
4QFY18

Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research

Page | 4
 ENIL : RESULTS REVIEW 4QFY18

EBITDA margin to improve Revenue trend EBITDA trend

from FY18 lows of 22% to 27% Revenue (Rs Mn) chg YoY (%) - RHS EBITDA (Rs Mn) chg YoY (%) - RHS

in FY20E and 31% by FY23E 10,000 20.0 3,000 50.0

40.0
15.0 2,500
8,000 30.0

10.0 2,000 20.0

ENIL’s FCF generation is set to 6,000 10.0
increase from current Rs 5.0 1,500 -
0.8bn p.a. in FY18 to ~Rs
4,000 (10.0)
1.3bn in FY20 and Rs 2-2.2bn - 1,000
(20.0)
by FY23E
2,000 (5.0) 500 (30.0)

FY13
FY14
FY15
FY16

FY18
FY19E
FY20E
FY21E
FY22E
FY23E
FY17
FY18

FY13
FY14
FY15
FY16
FY17
FY19E
FY20E
FY21E
FY22E
FY23E
Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research

EBITDA margin trend FCF

% FCF (Rs Mn)
35.0 2,250
33.1 2,000
31.5
32.0 31.2 30.7 1,750
32.5
29.7
30.8 1,500
29.0
1,250
27.5 1,000
26.0 26.5
750
23.0 500
22.6 250
20.0 21.6 -
FY13

FY14

FY15

FY16

FY17

FY18

FY14

FY15

FY16

FY17

FY18
FY19E

FY20E

FY21E

FY22E

FY23E

FY19E

FY20E

FY21E

FY22E

FY23E
Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research

Page | 5
 ENIL : RESULTS REVIEW 4QFY18

ENIL’s revenue to grow at Key operating assumptions

13% CAGR over FY18-23 FY18E FY19E FY20E FY21E FY22E FY23E
No of stations
primarily led by improved
- established 35 35 35 35 35 35
utilization in its new stations - Phase 3, Batch 1 17 17 17 17 17 17
- Phase 3, Batch 2 21 21 21 21 21 21
- Ishq FM - 3 3 3 3 3
Total 73 76 76 76 76 76
~70% of the incremental Inventory Available (mn 10 sec slots)*
revenue to be contributed by - established 17.0 17.0 17.0 17.0 17.0 17.0
- Phase 3, Batch 1 6.8 6.3 6.3 6.3 6.3 6.3
new stations and Ishq FM .
- Phase 3, Batch 2 - 7.8 7.8 7.8 7.8 7.8
Share of new stations and - Ishq FM - 0.7 1.5 1.5 1.5 1.5
Ishq FM to increase to 26% in Total 23.8 31.9 32.6 32.6 32.6 32.6
FY23 from 13% in FY18E. Inventory Sold (mn 10 sec slots)*
- established 13.1 13.7 13.5 13.8 14.0 14.2
A higher than expected - Phase 3, Batch 1 1.5 1.9 2.3 2.9 3.4 3.9
growth remains could be - Phase 3, Batch 2 - 0.3 1.7 2.6 3.4 4.2
additional upside - Ishq FM - 0.4 1.0 1.0 1.1 1.1
Total 14.6 16.3 18.5 20.4 21.9 23.4
Inventory Sold (% chg YoY)
- established 4.2 (1.0) 2.3 1.2 1.2
- Phase 3, Batch 1 28.9 24.4 21.6 17.8 15.1
- Phase 3, Batch 2 - 483.3 54.3 29.6 22.9
- Ishq FM - 114.8 7.3 5.7 5.4
Total 11.8 13.8 9.8 7.5 6.9
Utilization %
- established 77.2 80.5 79.7 81.5 82.5 83.5
- Phase 3, Batch 1 21.5 29.8 37.0 45.0 53.0 61.0
- Phase 3, Batch 2 - 3.8 21.9 33.8 43.8 53.8
- Ishq FM - 60.8 65.3 70.0 74.0 78.0
Average 61.2 51.1 56.8 62.4 67.1 71.7

Page | 6
 ENIL : RESULTS REVIEW 4QFY18

FY18E FY19E FY20E FY21E FY22E FY23E

Realization/slot/station (Rs)
- established 354 372 390 405 417 430
- Phase 3, Batch 1 517 543 580 602 619 637
- Phase 3, Batch 2 - 140 142 150 159 168
- Ishq FM - 300 314 345 372 400
Average 370 385 387 397 406 416
Realization/slot/station (% chg YoY)
- established 5.0 5.0 3.8 3.0 3.0
- Phase 3, Batch 1 5.1 6.9 3.8 2.9 2.9
- Phase 3, Batch 2 - 0.8 6.3 5.8 5.9
- Ishq FM - 4.7 10.0 7.8 7.6
Average 4.0 0.5 2.4 2.3 2.5
Revenue (Rs Mn)
- established 4,641 5,079 5,279 5,605 5,844 6,092
- Phase 3, Batch 1 756 1,025 1,362 1,719 2,083 2,467
- Phase 3, Batch 2 - 41 243 398 546 710
- Ishq FM - 132 298 352 401 455
Total 5,397 6,277 7,182 8,074 8,873 9,723
Revenue (% chg YoY)
- established 9.4 4.0 6.2 4.3 4.2
- Phase 3, Batch 1 35.5 32.9 26.2 21.2 18.4
- Phase 3, Batch 2 - 487.8 64.1 37.1 30.0
- Ishq FM - 124.9 18.0 14.0 13.4
Total 16.3 14.4 12.4 9.9 9.6
Source: HDFC Sec Institutional Research

Page | 7
 ENIL : RESULTS REVIEW 4QFY18

Change in estimates
New Old Change in % / bps
FY19 FY20 FY19 FY20 FY19 FY20
Increase in our PAT estimate
Revenue (Rs Mn) 6,277 7,182 6,277 7,182 (0.0) (0.0)
is due to marginal drop in EBITDA (Rs Mn) 1,663 1,973 1,663 1,973 (0.0) (0.0)
D&A and higher other income EBITDA Margin (%) 26.5 27.5 26.5 27.5 (0) (0)
PAT (Rs Mn) 595 705 560 692 6.3 1.9
Source: HDFC Sec Inst Research

Valuation Snapshot: ENIL and MBL

FY18 FY19E FY20E FY21E FY22E FY23E
In the medium-to-long term ENIL*
we expect both MBL and ENIL FCFE (Rs Mn) 712 806 1,314 1,622 1,873 2,152
to deliver similar stock returns Target Multiple (x) 30 30 30 30 30 30
Implied Mcap (Rs Mn) 21,350 24,195 39,424 48,657 56,189 64,567
Implied TP (Rs) 448 508 827 1,021 1,179 1,354
Upside to CMP (%) (31.3) (22.2) 26.8 56.5 80.8 107.7
MBL
In short term MBL can FCFE (Rs Mn)** 272 964 935 987 1,298 1,346
outperform ENIL Target Multiple (x) 30 30 30 30 30 30
Implied Mcap (Rs Mn) 8,162 28,926 28,049 29,604 38,939 40,381
Implied TP (Rs) 143 507 492 519 682 708
Upside to CMP (%) (58.2) 48.2 43.7 51.7 99.6 106.9
Source: HDFC Sec Inst Research
* We have added back Rs 1.7bn in FCF of ENIL to be paid towards acquisition of Ishq FM stations and Rs 250mn in MBL for acquisition of
Kolkata station of Anand Offset in FY19E
** MBL’s FY18 FCF is subdued owing to Rs 390mn increase in working capi tal on acocunt of receivables as also decline in Payables

Valuation Summary
P/E (x) EV/EBTDA (x) P/FCFE (x) P/B (x) Core ROCE (%)
CMP TP +/- % Rating
FY18E FY19E FY20E FY18E FY19E FY20E FY18E FY19E FY20E FY18E FY19E FY20E FY18E FY19E FY20E
ENIL 651 827 26.8 BUY 79.6 52.2 44.1 26.1 18.7 15.2 42.5 (39.6) 23.7 3.5 3.3 3.2 3.4 6.7 7.7
MBL 342 492 43.7 BUY 37.7 27.9 22.5 18.1 14.0 11.4 71.7 27.3 20.9 3.3 3.0 2.8 12.0 15.4 18.8
Source: HDFC Sec Inst Research

Page | 8
 ENIL : RESULTS REVIEW 4QFY18

Income Statement (Consolidated) Balance Sheet (Consolidated)

Year ending March (Rs mn) FY16 FY17 FY18 FY19E FY20E As at March (Rs mn) FY16 FY17 FY18 FY19E FY20E
Net Sales 5,086 5,565 5,379 6,277 7,182 SOURCES OF FUNDS
Growth (%) 16.0 9.4 (3.3) 16.7 14.4 Share Capital 477 477 477 477 477
Program & Loyalty exp 179 255 273 314 377 Reserves 7,608 8,097 8,398 8,887 9,385
License fee 262 334 347 373 418 Total Shareholders Funds 8,084 8,574 8,875 9,364 9,861
Employee cost 938 1,054 1,185 1,326 1,432 Long Term Debt - - - - -
Mktg exps 997 1,294 1,093 1,181 1,275 Short Term Debt 2,501 1,232 1,040 1,144 915
Other exps 1,125 1,370 1,319 1,421 1,707 Total Debt 2,501 1,232 1,040 1,144 915
Total Operating Cost 3,502 4,306 4,218 4,614 5,209 Other Non current liabilities 131 185 333 383 440
EBIDTA 1,585 1,259 1,161 1,663 1,973 TOTAL SOURCES OF FUNDS 10,716 9,990 10,247 10,890 11,216
EBIDTA (%) 31.2 22.6 21.6 26.5 27.5 APPLICATION OF FUNDS
EBIDTA Growth (%) 9.1 (20.6) (7.8) 43.2 18.6 Net Block 7,275 7,795 7,356 8,755 8,071
Depreciation 361 536 635 750 884 Other Non current assets 404 300 460 480 500
EBIT 1,224 723 526 912 1,089 Non Current Assets 7,678 8,095 7,815 9,235 8,571
Interest 0 136 47 104 109 Trade Receivables 1,403 1,622 1,702 1,781 2,057
Other Income 349 203 99 80 73 Other Current Assets 179 307 234 268 324
PBT 1,573 790 578 888 1,052 Current Assets 1,582 1,928 1,936 2,049 2,380
Tax 488 238 264 293 347 Trade Payables 800 1,116 1,049 1,116 1,333
EO loss/(gain) - - (42) - - Other Current Liabilities 303 272 284 349 389
RPAT 1,085 552 356 595 705 Current Liabilities 1,103 1,388 1,333 1,465 1,722
APAT 1,062 533 390 595 705 Net current Assets 479 540 603 583 659
APAT Growth (%) 8.8 (49.8) (26.8) 52.4 18.5 Cash & Equivalents 2,559 1,355 1,828 1,072 1,987
AEPS 22.3 11.2 8.2 12.5 14.8 TOTAL APPLICATION OF FUNDS 10,716 9,990 10,247 10,890 11,216
EPS Growth (%) 8.8 (49.8) (26.8) 52.4 18.5 Source: Company, HDFC sec Inst Research
Source: Company, HDFC sec Inst Research

Page | 9
 ENIL : RESULTS REVIEW 4QFY18

Cash Flow (Consolidated) Key Ratios

Year ending March (Rs mn) FY16 FY17 FY18 FY19E FY20E FY16 FY17 FY18E FY19E FY20E
PAT from Operations 1,085 552 356 595 705 PROFITABILITY (%)
Interest 0 136 47 104 109 GPM 96.5 96.5 95.4 94.9 95.0
Depreciation 361 536 635 750 884 EBITDA Margin 33.1 31.2 22.6 21.6 26.5
Working Capital Change (151) (61) (63) 20 (75) EBIT Margin 25.6 24.1 13.0 9.8 14.5
OPERATING CASH FLOW ( a ) 1,295 1,162 975 1,469 1,623 APAT Margin 22.3 20.9 9.6 7.3 9.5
Capex (7,105) (1,056) (195) (2,150) (200) RoE 15.2 14.0 6.4 4.5 6.5
Free Cash Flow (5,810) 106 779 (681) 1,423 Core ROCE 63.4 18.1 6.0 3.4 6.7
Investments & Others (24) 157 (11) 30 37 RoCE 12.6 9.5 4.9 2.8 5.8
INVESTING CASH FLOW ( b ) (7,129) (899) (207) (2,120) (163) EFFICIENCY
Capital Issuance 1 (6) 1 - (0) Tax Rate (%) 26.7 31.0 30.1 45.7 33.0
Debt Issuance 2,498 (1,269) (192) 104 (229) Asset Turnover (x) 8.3 0.7 0.7 0.7 0.7
Interest (0) (136) (47) (104) (109) Debtors (days) 104 101 106 115 104
Dividend (56) (56) (56) (105) (208) Payables (days) 62 57 73 71 65
FINANCING CASH FLOW ( c ) 2,442 (1,467) (295) (105) (546) Cash Conversion Cycle (days) 27 34 35 41 34
NET CASH FLOW (a+b+c) (3,392) (1,203) 473 (756) 914 Debt/EBITDA (x) (4.1) (0.0) (0.1) (0.7) 0.0
Closing Cash 2,559 1,355 1,828 1,072 1,987 Net D/E (0.8) (0.0) (0.0) (0.1) 0.0
Source: Company, HDFC sec Inst Research Interest Coverage 2,613.4 3,409.1 5.3 11.2 8.8
PER SHARE DATA
EPS (Rs/sh) 20.5 22.3 11.2 8.2 12.5
CEPS (Rs/sh) 27.4 29.8 22.4 21.5 28.2
DPS (Rs/sh) 1.0 1.0 1.0 1.0 1.9
BV (Rs/sh) 148.0 169.6 179.9 186.2 196.4
VALUATION
P/E 31.8 29.3 58.3 79.6 52.2
P/BV 4.4 3.8 3.6 3.5 3.3
EV/EBITDA 17.3 19.6 24.6 26.1 18.7
OCF/EV (%) 5.3 4.2 3.8 3.2 4.7
FCF/EV (%) 5.5 (18.7) 0.3 2.6 (2.2)
FCFE/Mcap (%) 4.5 (18.7) (0.1) 2.4 (2.5)
EV/Revenues 5.7 6.1 5.6 5.6 5.0
Dividend Yield (%) 0.2 0.2 0.2 0.2 0.3
Source: Company, HDFC sec Inst Research

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 ENIL : RESULTS REVIEW 4QFY18

RECOMMENDATION HISTORY
Date CMP Reco Target
ENIL TP
1,000 20-Apr-18 693 BUY 827
950 24-May-18 651 BUY 827
900
850
800
750
700
650
Rating Definitions
600
BUY : Where the stock is expected to deliver more than 10% returns over the next 12 month period

Apr-18
Mar-18
Jul-17

Aug-17

Jan-18
Oct-17

May-18
May-17

Dec-17

Feb-18
Jun-17

Nov-17
Sep-17

NEUTRAL : Where the stock is expected to deliver (-)10% to 10% returns over the next 12 month period
SELL : Where the stock is expected to deliver less than (-)10% returns over the next 12 month period

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 ENIL : RESULTS REVIEW 4QFY18

Disclosure:
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Ltd. or its associate does not have any material conflict of interest.
Any holding in stock –No
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 ENIL : RESULTS REVIEW 4QFY18

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Institutional Equities
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Senapati Bapat Marg, Lower Parel, Mumbai - 400 013
Board : +91-22-6171-7330 www.hdfcsec.com

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