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TIL India – Review

March 7, 2011

TIL reported strong Q3FY11 consolidated revenue growth, at 22% Y-o-Y to INR 3.8 bn, spearheaded by strong growth in material handling systems (MHS) and construction & mining systems (CMS); these two businesses grew 40% and 55%, to INR 0.7 bn and INR 1.8 bn, Y-o-Y, respectively.

TIL had an unexecuted order book of INR 1,812 mn against INR 2,581 mn in Q3FY10, down 30% Y-o-Y. Management expects pickup
in order inflows on the back of increased infrastructure activities. Through Kharagpur plant (expected to be operational by April 2011), TIL’s capacity is likely to grow 5x, to 100 units a month.

The company is preparing the ground well in advance, to capitalise on growing opportunities in the road construction, port equipment and other material handling equipment sectors.

TIL operates in and believe future growth will be aided by improvement in the capex cycle and infrastructure spending which is likely to come to a halt with the Corrupt Government in Turbulent Waters. TIL es expected to report an EPS of Rs 50 and Rs 60 for FY 2011 and FY 2012 respectively.

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