Press Releases

MARG Limited revenue grows by 52%

Financial Highlights

Q3 2011-12

• Standalone revenue up at Rs.483 crores in Q3 FY12, increase of 52% over Q3 FY11
• EBITDA for Q3 FY12 is Rs.41.4 crores, increase of 18% over Q3 FY11 EBITDA of Rs. 35.2 crores
• PAT of Q3 FY12 at Rs.18.4 crores as compared to Rs.15.9 crores in Q3 FY11

MARG Limited – Standalone Entity

Financial Performance

Chennai, January 27, 2012: MARG Limited, India's leading diversified infrastructure development company, announced its financial results for the quarter ended December 31, 2011.

The company recorded a 52 percent increase in net sales, which stands at Rs. 483-cr in the third quarter of 2011 – 2012, as compared to Rs. 317.3-cr in the Q3 2010 -2011. The net profit for the quarter ended December 31, 2011 stands at Rs. 18.4-cr, a 15 percent increase from Rs. 15.9-cr registered in the same period last year. ?

Business Highlights

• Karaikal Port handled 1.45 MMT of multi cargo during Q3 ending Dec 31, 2011 (YTD FY12 ~ 4.4 MMT)
• KPPL received the final tranche of PE investment of Rs. 50 Crores from Ascent Capital
• EPC revenue of MARG Limited at Rs. 465 crores in Q3 FY12, growth of 55% over the Q3 FY11 revenue of Rs.300 crores
• Current EPC order book at around ~Rs.3250 crores, external orders account for ~35%
• MARG ProperTies, the residential arm of the company sold 98 units (0.11 MSFT) in Q3 2011-2012. Total sales till Q3 FY12 at 409 units with sale value of Rs.127 crores
• Construction of MARG Junction Mall, one of the largest mixed use developments in Chennai, is on schedule; deals for ~55% of the leasable space in the mall area have been finalized

Commenting on the company's performance in the quarter ended December 31, 2011, GRK Reddy, Chairman & Managing Director, MARG Limited said, "Our results for the quarter ended December 31, 2011 are very encouraging. Despite the challenging business environment, our income has increased by a healthy 52 percent. This has laid the foundation for MARG to be a billion dollar organisation in the next two years. EPC will continue to be the core thrust area for MARG. MARG Karaikal Port, MARG Swarnabhoomi and MARG ProperTies will be the key growth drivers."

Performance of Business Verticals

EPC Business

• EPC revenue of MARG Limited at Rs. 465.2 crores in Q3 FY12, growth of 55% over the Q3 FY11 revenue of Rs.300 crores
• Current EPC order book at around ~Rs.3250 crores, external orders account for ~35%
• Continued strengthening of human capital and technological capabilities to focus on specialized projects in the industrial infrastructure space

Marine Infrastructure

Karaikal Port

• Handled 1.45 MMT of multi cargo during Q3 FY11. Total cargo handled till Q3 FY12 is 4.39 MMT
• Revenue of Rs. 57.9 crores during Q3 FY 2011-12 (Provisional); Total revenue till Q3 FY12 at Rs.163.9 crores, EBITDA at Rs. 68.7 crores and PAT at Rs. 25.3 crores
• Received the final Tranche of PE Investment of Rs. 50 Crores from Ascent Capital
• Handled 294 rakes for the Q3 FY12 and 1,569 rakes since commencement of rake operations
• Financial Closure for Phase 2A Extension achieved for Rs. 437 crores with four banks
• Successfully completed the Construction of Berth 3 & 4

Urban and Industrial Infrastructure

MARG Swarnabhoomi

Engineering SEZ

• Virgo and TVS Kwik Patch have commenced operations
• MOU signed with Twin Disc U.S for their new marine transmissions manufacturing unit, DC approval obtained
• LOI's signed with Tecpro Energy Systems and Eswari Electricals to set up their export oriented unit at the engineering SEZ

Science Park

• Significant progress made on the Construction of phase-I spread over 210,000 sq ft of Wet Laboratory building, building would be ready for occupation by March,2012

Knowledge Hub

• Premier Institutions in Australia have shown positive response for tie-ups for vocational education and other allied courses and the education services team is working on structuring business models
• Talks are in final stages to sign MOU with a leading Malaysian university to set up an international campus in India for offering various courses in design, hospitality, tourism, languages, music and management education

Residential

• Total of 245 units were sold during Q3 taking the total Swarnabhoomi residential sales since inception to 1687 units
• "Four Seasons" , a new product in the high rise residential space category was launched in Q3

Real Estate

MARG ProperTies – Residential Business

• Sale of 98 units (0.11 MSFT) in Q3 2011-2012. Total sales till Q3 FY12 at 409 units with sale value of Rs.127 crores
• Since Inception (ITD), MARG ProperTies has sold 1660 units (1.79 MSFT) with a booking value of Rs.445 crores
• Handing over of apartments to the customers has already started in Pushpadruma – 466 units scheduled to be handed over in Q4/2011-2012 and Vishwasakthi Phase 1 - 192 Units is scheduled for handing over in Q4/2011-2012.
• MARG ProperTies is set to launch a new project in Q4/2011-2012 with 204 units with sale value of Rs.73 crores.

MARG Junction, OMR – Commercial Business

• Development of the project is on schedule, expected to commence operations in FY13
• Deals for ~55% of the leasable space have been finalised – healthy pipeline for remaining space
• Key clients include PVR, Shoppers Stop, Hyper City; mini- anchors confirmed LOI are Reliance Trends, Blue – O and Timezone; Vanilla clients include HP, Ryaban, Archies, Levis, Wrangler, Lee, Woodland, Nike, Mufti, Cannon, Riyaa, Casio, Eva, Denizen, Marry Brown, Dosa Plaza, Kushal Jewelers, among others?
• Agreement with Shangri-La executed for development of Hotel and Interior Design concept is finalized.

Other Highlights

Awards received

• GRK Reddy recognized as 'Outstanding Entrepreneur' at Asia Pacific Entrepreneurship Award in November 2011 at New Delhi
• MARG Limited recognized for its "Outstanding contribution in Port Sector projects" at the EPC World Awards 2011 held at Bangalore on 17th Dec 2011
• In January 2012, GRK Reddy received the Special Jury Award at the Gateway Awards of Excellence 2012 in recognition of his visionary role in building the Karaikal Port

About MARG Group:

MARG Limited (BSE: 530543), incorporated in 1994 and headquartered in Chennai, is an infrastructure major with presence across the value chain. The Company is listed on the Bombay Stock Exchange and its shares are traded on the NSE under the category of 'Permitted Security'.

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 & 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. 3000 crores under execution, a seasoned human capital of more than 1300, global partners in the Infra space and offices spread across India, Singapore and China.

For more information, visit http://www.marggroup.com

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