Jiya Eco-Products Limited

Jiya Eco-Products Limited Date: 25 th January, 217 Stock Performance Details Shareholding Details September 216 Current Price : ` 71.9^ Face Value : ` 1 per share 52 wk High / Low : ` 73.8 / 17. Total Traded Volume : 3,6 shares^ Market Cap : ` 77.1 crore^ Sector : Utilities: Non-Elec. EPS (H1 FY17) : ` 1.52 per share Equity Share Capital : ` 1.7 crore P/E (TTM) : 27.98 (x)^ P/BV (TTM) : 4.27 (x)^ Financial Year End : 1 st April 31 st March BSE Scrip Name : JIYAECO BSE Scrip Code : 539225 Listing : BSE SME Platform ^ as on 18 th January, 217 Particulars Shareholding Nos. (%) Promoter & Promoter Group Holding 68,72,958 64.14 Total Institutional Holdings (FIIs & DIIs). Public Holdings 38,43,419 35.86 Total 1,7,16,377 1. Background Incorporated in the year 211, Jiya Eco-Products Limited (JEPL) is engaged in the manufacture of bio-fuels like bio-briquettes and bio-pellets which is an alternative source of energy and acts as a replacement for traditional fuels like coal, firewood, lignite etc. They can effectively help meet the energy and heat requirements in the industrial, commercial and industrial segments. The market for briquette and pellet find its application in industrial users comprising pharmaceutical companies, spinning mills textile processing units, construction industries and chemical industries. The domestic users comprise bakery, restaurants and schools. JEPL s manufacturing unit is located at Navgam, Bhavnagar. Initially it started with the production of bio-briquettes and within 2 years, it enhanced its installed capacity to around 31, tonnes by installing new machineries and later forayed into production of bio-pellets. The Company has authorized collection centres spread over surrounding villages to source agricultural waste which serves as the major raw material in production of bio-fuels. The Company has arrangements with various Gram-Panchayats for procurement of solid waste, which serves as another important raw material in the business. JEPL has received various incentives from Government including tax holiday, interest rate subvention and VAT exemption. Currently, JEPL is one of the key players across the state of Gujarat in bio-fuel sector and has plans to expand its presence on pan India basis. An Initiative of the BSE Investors Protection Fund1

Financial Snapshot Particulars Standalone (` Million) Income Statement H1 FY17 H1 FY16 Income from Operations 281.1 171.1 Y-o-Y Growth (%) 64.3 28.5 EBITDA 54.1 3.7 Y-o-Y Growth (%) 76.2 (1.3) EBITDA Margin (%) 19.2 17.9 Net Profit 16.3 18.9 Y-o-Y Growth (%) (13.8) (19.6) NPM (%) 5.8 11. Balance Sheet Fixed Assets 137. 1.4 Cash and Bank Balances.8 1.8 Inventories 21.1 8.4 Net Working Capital 122.9 14.1 Net Worth 24.2 171.9 Balance Sheet Ratios ROCE (%) 11.7 1.6 RONW (%) 8. 11. Source: Capitaline From the Research Desk of LKW s Gurukshetra On a Standalone basis, Income from Operations stood at Rs. 281.1 million in H1 FY17 thus marking a growth of 64.3% y-o-y from Rs. 171.7 million reported in H1 FY16. Material Cost stood higher at Rs. 18.2 million in H1 FY17 as compared to Rs. 133 million in H1 FY16. Employee Benefit Expenses stood at Rs. 3.6 million in H1 FY17 as compared to Rs. 4.3 million in H1 FY16. Other Expenses increased on a y-o-y basis to Rs. 42.5 million in H1 FY17 from Rs. 2.6 million in H1 FY16. In line with the higher topline, EBIDTA increased to Rs. 54.1 million in H1 FY17 from Rs. 3.7 million in H1 FY16. Thus, EBIDTA Margin increased to 19.2% in H1 FY17 versus 17.9% in H1 FY16. Depreciation Cost stood at Rs. 21.6 million in H1 FY17 as compared to Rs. 7.5 million in H1 FY16. Interest Cost stood at Rs. 9 million in H1 FY17 as against Rs. 5.1 million in H1 FY16. Despite an increase in the EBIDTA, PAT for H1 FY7 declined on a y-o-y basis on account of higher Depreciation and Interest Cost. PAT stood at Rs. 16.3 million as compared to Rs. 18.9 million in H1 FY16. Inventories increased on a y-o-y basis to Rs. 21.1 million in H1 FY17 from Rs. 8.4 million in H1 FY16. Debtors increased by 57.6% on a y-o-y basis to Rs. 194.9 million in H1 FY17 from Rs. 123.7 million in H1 FY16. Cash and Cash Equivalents stood at Rs..8 million in H1 FY17 as compared to Rs. 1.8 million in H1 FY16. An Initiative of the BSE Investors Protection Fund2

Total Debt comprising Short Term Borrowings and Long Term Borrowings stood higher for H1 FY17 at Rs. 12.5 million as against Rs. 67.4 million in H1 FY16. Debt to Equity Ratio stood same at.6:1 in H1 FY17 as against.4:1 in H1 FY16. The Board of Directors of the Company at their meeting held on 29 th July, 216 issued and allotted 17,86,63 Ordinary Shares of Rs. 1 each as Bonus Shares to those members of the company entitled thereto as on 28 th July 216, being the Record Date fixed for the purpose. Performance on the Bourses % 4 35 3 25 2 15 1 5 Stock Performance as on 18th January, 217 Jiya Eco-Products BSE Small Cap Peer Comparison The following table gives a snapshot view of the Company s performance vis-à-vis its closest peers for H1 FY17. The Company faces competition from various domestic and international players. The industry has low entry barriers in terms of ease in setting up and installation of plant and machinery at low cost and less time. The Government provides various exemptions and incentives to this sector in order to promote use of bio-fuel. (` In millions) Particulars Jiya Eco- Praj Products @ Industries^ Income from Operations 281.1 3,933.6 EBIDTA 54.1 128.7 Net Profit 16.3 71.5 EBIDTA Margins (%) 19.2 3.3 PAT Margins (%) 5.8 1.8 Book Value Per Share 2.2 @ 37.2 @ P/E (x) 13.13 # 2.42 $ P/BV (x) 3.32 # 2.19 $ RONW (%) 8. 1.1 Source: Capitaline : @ Financials on Standalone Basis; @ On a Standalone Basis as on March, 216; # On a Standalone basis as on September, 216 (TTM Basis); ^ Financials on Consolidated Basis; $ On a Consolidated basis as on September, 216 (TTM Basis) An Initiative of the BSE Investors Protection Fund3

About the Industry Management Outlook Bio-fuels provide a strategic advantage to promote sustainable development and to supplement conventional energy sources in meeting the rapidly increasing requirements for transportation fuels associated with high economic growth, as well as in meeting the energy needs of India s vast rural population. Biofuels are drawing increasing attention worldwide as substitutes for petroleum-derived transportation fuels to help address energy cost, energy security and global warming concerns are associated with liquid fossil fuels. The popularized classification for liquid bio-fuels includes first-generation and secondgeneration fuels. A first-generation fuel is generally made from sugars, grains, or seeds, i.e. one that uses only a specific (often edible) portion of the above-ground biomass produced by a plant, and relatively simple processing is required to produce a finished fuel. Firstgeneration fuels are already being produced in significant commercial quantities in a number of countries. Second-generation fuels are generally made from non-edible lignocellulosic biomass, either non-edible residues of food crop production (e.g. corn stalks or rice husks) or nonedible wholeplant biomass (e.g. grasses or trees grown specifically for energy). The focus for development of bio-fuels in India will be to utilize waste and degraded forest and non-forest lands only for cultivation of shrubs and trees bearing non-edible oil seeds for production of bio-diesel. In India, bio-ethanol is produced mainly from molasses, a by-product of the sugar industry. In future too, it would be ensured that the next generation of technologies is based on non-food feedstocks. India is targeting a more than sevenfold expansion in its biofuels market over the next six years, stepping up the country s efforts to cut its reliance on energy imports. The Indian ethanol consumption is projected to grow at a CAGR of around 4% during 29-218. The Government of India has been injecting huge amount of money and resources into the development of this sector in an attempt to reduce dependency on imported oil. High volatile oil prices and production levels have further enlightened the need for continuous developments of this sector. Blending 5% of biodiesel with regular diesel and 1% ethanol with gasoline could boost the market to Rs. 5 billion ( 6.7 billion) by 222, from about Rs. 65 billion now. India would require 6.75 billion litres of biodiesel and 4.5 billion litres of ethanol for blending over the six years. The biodiesel blending programme which was started in August 215 as a pilot in five cities has been extended to six states. The blended biodiesel is now sold through nearly 2,2 retail outlets in the country. The Government has also allowed production of ethanol from alternate routes. State-run fuel retailers Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp. plan to invest Rs. 9 billion to develop infrastructure for biofuels and build ethanol plants. Companies such as Austria s Munzer Bioindustrie GmbH, India s Praj Industries Ltd. and CVC India Infrastructure Pvt. also plan for setting up biofuel projects. Praj Industries has been preparing to build multiple biofuel projects for nearly Rs. 3 billion over the next two years and will also raise funds for the same. The Company aims to expand its global footprint and become a preferred supplier for large international retail chains and institutions in the bio-fuel industry by focusing on increased capacities, reduced costs, wider range of products adhering to global standards, marketing initiatives, competitive pricing and more efficient use of resources. An Initiative of the BSE Investors Protection Fund4

Financial Graphs Net Income from Operations 3 25 ` in Million 2 15 1 5 171.1 281.1 H1 FY16 H1 FY17 EBIDTA & EBIDTA Margins 6 2 19.2 ` in Million 4 2 17.9 19 18 % 3.7 54.1 H1 FY16 H1 FY17 17 EBIDTA EBIDTA Margins 2 PAT & PAT Margins 11. 12 ` in Million 18 16 5.8 18.9 16.3 9 6 3 % 14 H1 FY16 H1 FY17 PAT PAT Margins An Initiative of the BSE Investors Protection Fund5

Disclaimer All information contained in the document has been obtained by LKW s Gurukshetra from sources believed to be accurate and reliable. Although reasonable care has been taken to ensure that the information herein is true, such information is provided as is without any warranty of any kind, and LKW s Gurukshetra in particular makes no representation or warranty express or implied, as to the accuracy, timeliness or completeness of any such information. All information contained herein must be construed solely as statements based on available data, and LKW s Gurukshetra shall not be liable for any losses incurred by users from any use of this document or its contents in any manner. Opinions expressed in this document are not the opinions of our company and should not be construed as any indication of our recommendation to buy, sell or invest in the company under coverage. Disclosure Each member of the team involved in the preparation of this report, hereby affirms that there exists no conflict of interest. The report has been sponsored and published as part of Initiative of BSE s Investors Protection Fund About Us LOTUS KNOWLWEALTH (LKW) commenced business in 1991 and is currently engaged in providing CAPITAL MARKET RESEARCH, INVESTMENT ADVISORY and STRATEGY services. GURUKSHETRA is the Research and Training arm of LKW. LKW Investment Advisers is the SEBI registered Investment Advisory arm of LKW. 5 Contact Us LOTUS KNOWLWEALTH Pvt. Ltd. Regd.Office: B Wing, 55-56, Fairlink Centre, Off Andheri Link Road, Andheri (W), Mumbai 4 53. Email: enquiry@lotusknowlwealth.com Tel: 22-41 5482 41 5483 Website: www.lkwindia.com An Initiative of the BSE Investors Protection Fund6