Press Releases

MARG LIMITED Q1 SALES UP BY 76%
~ Increase of standalone revenue by 76% over Q1 2010-11 ~

~ MARG Karaikal Port posts impressive EBITDA margin of 46% and PAT margin of 18% for Q1 2011~

~ 48% of leasable space has been finalized for soon to be launched MARG Junction Mall~

~ Increase of EPC revenue by 85% over Q1 2010-11 ~

Financial Performance

Financial Highlights

Chennai, August 12, 2011: MARG Limited, India's leading diversified infrastructure development company, today announced its financial results for the quarter ended June 30, 2011.

The company registered a 76 % increase in revenue which stood at Rs. 308 crores in the first quarter of 2011-12 as compared to Rs. 174.8 crores in Q1 FY11. The net profit for the quarter ended June 30, 2011 stands at Rs 11.8 Cr, a 4% increase from Rs 11.3 Cr registered in Q1 FY11.

Business Highlights

• MARG Karaikal Port handled 1.47 MMT of multi - cargo during the quarter ended June 2011, revenue for the quarter was Rs. 49.4 crores with an impressive EBITDA margin of 46% and PAT margin of 18%
• In July 2011, the Karaikal port added container to its fast growing cargo-mix; it also signed a MoU with CONCOR for setting up a port side container terminal at Karaikal Port
• EPC revenue at Rs. 293 crores in Q12011-12, increase of 85% over Q1 FY11
• Current EPC order book at around Rs.3000 crores, external orders at ~20%
• MARG ProperTies, the residential arm of the company sold 159 apartments (180,000 sq ft) in Q1 2011-2012 with sale value of Rs. 59 crores, total sales (ITD) till June 2011 was 1504 (1.62 million sq ft) units with sale vale of Rs. 394 crores
• Construction of MARG Junction Mall, the soon to be launched one of the largest mixed use development in Chennai, is on schedule; deals for ~48% of the leasable space in the mall area have been finalized

Commenting on the company's performance in the quarter ended June 30, 2011, GRK Reddy, Chairman & Managing Director, MARG Limited said, "Our results for the quarter ended June 30, 2011 are very encouraging. Despite the challenging business environment, our performance has met expectations. MARG as an organization is in a consolidation phase and we are focusing on unlocking the value and providing better returns to the stake holders. At MARG, it has been our constant endeavour to identify opportunities, to synergize our knowledge of global & domestic markets and to align today's infrastructure needs with holistic regional development."

Performance of Business Verticals

EPC Business

• EPC revenue at Rs. 293 crores in Q12011-12, increase of 85% over Q1 FY11
• Current EPC order book at around Rs. 3000 crores, third party orders at ~20%
• In July, MARG EPC won a work order valued at Rs 237.85 Crore from Bhavnagar Energy Company Limited (BECL) in Gujarat
  • The scope of engineering, procurement and construction (EPC) work includes laying five kilometre long submarine pipeline in the roughest sea of Gulf of Khambhat, installing critical marine and civil structures, pumping stations, pipelines, substations and transmission lines

Marine Infrastructure

Karaikal Port

• Handled traffic of 1.47 million tonnes of multi cargo during Q1 ending June 30, 2011
• Revenue of Rs.49.40 crores, EBITDA of Rs.22.74 crores and PAT of Rs.8.79 crores during Q1 FY 2011-12.(Provisional)
• Handled MV PFS Vamana with a parcel size of 69,204 MT of GYPSUM cargo– the biggest cargo vessel handled till date at Karaikal Port
• Discharged the 900th Railway rake in June 2011 since commencement of railway operations (Handled 967 rakes as of June 30, 2011 since commencement of railway operations)
• Received the third and final tranche of equity of Rs.40 crores from IIF (IDFC) in April 2011
• Royalty paid (Rs.4.41 crores) to GoP was 74% higher than the projection (Rs.2.53 crores) on account of better performance
• Phase 2A expansion to 21 MMT is on schedule
• In July 2011, Karaikal Port achieved yet another milestone by adding containers to its fast growing cargo-mix
  • The landmark was achieved when the container vessel 'M V Ruhunupura', called at the port to discharge and load containers for the very first time.
  • The port signed a Memorandum of Understanding (MoU) with the Container Corporation of India (CONCOR) to provide dedicated regular container train services linking the port with CONCOR ICDs in locations such as Coimbatore, Tirupur and Bangalore (Whitefield)

Karaikal Port – Financial Performance

Urban and Industrial Infrastructure

MARG Swarnabhoomi

Engineering SEZ

• LOI received from Twin Disc U.S for their new marine transmissions manufacturing unit.
• Virgo has commenced operations in a pilot plant and their main plant spread over 130,000 sq ft is in advanced stages of commissioning
• PH Hydraulics & Pneumatics factory construction (awarded to Marg EPC) and commissioning of equipments is in progress.

Science Park

• Construction of 210,000 sq ft Wet Laboratory building underway, the building would be ready for occupation by March,2012
• Existing clients like Symphony, Micro Labs and Laxai Avanti; apart from that Biophenolika Polymers has been signed up for setting up an R&D Center in Polymers
• Department of Biotechnology (DBT), Government of India has approved for the Biotechnology Incubation Center (BTIC) that is being set up under association with ICRISAT. The Incubation Center shall be functional in Q3 2011-12
• Institute of Clinical Research India (ICRI), a leading player in Clinical Research Training in India has expressed readiness to setup a campus at the Science Park. Inaugural batch is set to start in December,2011

Multiservices-Processing

• Exemplarr Worldwide started EXCEL Finishing School (Exemplarr Center for Employability and Learning) at Amrita Research and Innovation Park (ARIP), it was inaugurated on 23rd May 2011
  • The school has commenced its first batch of certification program targeting ITES Sector in e-publishing
• Advance stage of discussions with various clients towards strategic tie-ups especially International operators/partners for core identified sectors like IT/ITES, Infrastructure, Automobile, Marine Logistics, Hospitality and Retail in this regard.

Knowledge Hub

• MARG Navjyothi Vidyalya (School) is functional with 206 students admitted to Class 1 – 7. Will be also launching the LKG and UKG this quarter
• MIDAS, an architecture college was approved by Council and Architecture and is affiliated to Anna University; this college will be launched with the first batch on Aug 24th 2011.

Residential

• Total of 0.11 million sq ft (107 units) were sold during Q1 taking the total Swarnabhoomi residential sales since inception to 1.34 million sq ft (1293 units)
• Medical Services Agreement with Doc Med Services Pvt. ltd has been executed to provide medical service at Swarnabhoomi, mobilization work is in progress

Financial

• For Q1 FY12, MARG Swarnabhoomi recorded revenue of Rs. 24.82 crores (Provisional)

Real Estate

MARG ProperTies – Residential Business

• Sale of 159 units (170,000 sq ft) in Q1 2011-2012 with sale value of Rs. 59 crores, Total sales (ITD) till June 2011 is 1504 (1.62 million sq ft) units with sale vale of Rs.394 crores
• Launched a new project "Kalpavriksha", located next to upcoming MARG Junction Mall on the IT corridor, the project got sold out in less than one month from the launch
• Projects like Pushpadruma, and Viswasakti (Phase1) are all sold out and are scheduled for handover in the H2 FY 2011 – 2012
• Brand presence in South India has been enhanced by the launch of MARG Shoppe, first of its kind in the real estate industry and new Mascot (Mr. Joy). Both have received tremendous response
• MARG ProperTies is set to launch two new projects of ~0.7 million sq ft during H2 2011-2012 the combined sale value is expected to be Rs. 219 crores
• CMDA is projecting demand for 0.4 million residential units in 2011 and 0.6 million units by 2016 in Chennai, the company is positioned well to cater to this demand

MARG Junction, OMR – Commercial Business

• Development of the project is on schedule, expected to commence operations by Q1 2012
• Deals for ~48% of the leasable space have been finalized – healthy pipeline for remaining space
• Key clients include PVR, Shoppers Stop, HyperCity; new mini-anchors brought on board are Blue-O and Timezone; Vanilla clients include HP, Ryaban, Archies, Pavers England among others
• Agreement with Shangri-La Hotel for development of hotel

Other Highlights

Awards received in Q1 FY12

• Conferred with the 'Asia Pacific Excellence Award 2011' at International conference on Indo-Nepal Friendship & Economic co-operation held at Kathmandu on 21 May 2011
• 'Indian Leadership Award for Industrial Development' conferred on GRK Reddy towards his contribution to Nation building & holistic regional growth at New Delhi on 11th June 2011 by 'All India Achievers Foundation'

About MARG:

MARG Limited (BSE: 530543), incorporated in 1994 and headquartered in Chennai, is an infrastructure, real estate development and services company. The Company is listed on the Bombay Stock Exchange and its shares are traded on the NSE under the category of 'Permitted Security'. The holistic regional development undertaken by the group is unlocking economic prosperity and creating inclusive & sustainable growth models.

With over two decades of reassuring presence and the credit of pioneering the development of economic growth centers, MARG's portfolio spans across the entire infrastructure value chain - urban and industrial infrastructure, urban residential clusters, marine infrastructure & services, malls and EPC division. The group is expanding its sectoral presence with airport projects in Bellary and Bijapur and Multi-level car park projects. Listed by Dun & Bradstreet among "India's Top 500 Companies 2010", today MARG Group has projects worth more than Rs. 5000 crores under execution, a seasoned human capital of more than 1000, global partners in the Infra space and offices spread across India, Singapore and China. The MARG CSR brand – MARG Parivarthan complements these business verticals. More information on MARG is available on http://www.marggroup.com

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