Thursday, November 20, 2008


Aban Offshore’s (Aban) standalone PAT was at INR 1.6 bn vis-à-vis INR 1.2 bn for
consolidated entity. High financing expenses and losses in a few subsidiaries subdued
�� Losses reported in a few subsidiaries were significantly higher than their respective
revenues (please refer subsidiary analysis section for details).
High leverage: Future incremental cash flows will be key to deleveraging BS
�� The debt-equity (DE) ratio as at end-FY08 was 16x; however, on considering nonconvertible
redeemable preference shares as debt, D/E would stood at 26.3x. D/E for
the standalone entity as at the end of FY08 was at 1.4x and on considering nonconvertible
redeemable preference share as debt , D/E was at 2.5x. Preference shares
are redeemable at par during 2011 & 2012
�� Loan book has increased from INR 11 bn in FY06 to INR 130 bn in FY08, primarily due
to the USD 2.2 bn Sinvest acquisition.
�� Loan repayable in FY09 is INR 17.02 bn, which is ~8 times net cash from FY08
operations. However, with delivery and full-year contributions of many new-build rigs,
future cash flows may be significantly higher, facilitating debt repayment. Also, the
company had significant cash and cash equivalents of INR 8.4 bn.

Read full report here ABAN(EDELWEISS)

>INFOSYS (William Blair & company)

Dominant Provider of Offshore IT Services. Infosys is the leading provider of
offshore IT services, with what we believe is the strongest brand and one of the
largest talent pools, and arguably the best technology resources. The company’s
customers include 99 of the U.S. Fortune 500 and 47 Fortune 100 companies.
Existing customers accounted for 97% of fi scal 2008 revenue—important in the
technology space, since IT buyers often make vendor selections based on which
company is the market leader and has a strong referenceable customer base.

Read full report here INFOSYS (William Blair & company)