ABG Shipyard (ABGSHI) - ICICI Direct

Exhibit 5: Interest cost as percentage of EBITDA
Interest cost continues to haunt ABG with interest as a
percentage of EBITDA forming 73% in Q3FY13. We
expect the trend to continue as working capital
management remains a challenging task
250.0
200.0
150.0
100.0
50.0
0.0
73%
194.5
169.68 64%
166.26 162.36
55%
52%
144.85
108.0
43%
103.2
106.1
86.3
73.5
Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13
80%
70%
60%
50%
40%
30%
20%
10%
0%
EBITDA Interest Interest as a % of EBITDA
Source: Company, ICICIdirect.com Research
Exhibit 6: Revenue expected to improve in FY14E & FY15E
Order book visibility over four years provides cushion to
revenue. Though execution of the order book is losing
steam amid strained cash flow conditions, we expect
revenue to show modest growth of 3-6% in FY14E-15E
| cr
2600
2500
2400
2300
2200
2100
2000
1900
2472.5
2493.1
2398.1
2251.6
2136.9
FY11 FY12 FY13E FY14E FY15E
Revenue
Source: Company, ICICIdirect.com Research
Exhibit 7: Operating margin to stabilise, going ahead
The EBITDA margin further improved 153 bps in Q3FY13
to 29.9% on account of inventory management and
lower other expenses. We expect the EBITDA margin to
stabilise around 28% in FY14E-15E
| cr
800
700
600
500
400
300
200
100
0
698.4
704.3
634.1
667.5
28.2
27.8
28.3
518.1
28.2
24.2
FY11 FY12 FY13E FY14E FY15E
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
%
EBITDA EBITDA %
Source: Company, ICICIdirect.com Research
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