Ann: JSW Acquisition and FY13 Results Presentatio, page-7

re: Ann: JSW Acquisition and FY13 Results Pre... Gosouth - "I figure if HDX made $10.3M NPAT in 2013 from $80M revenue, then in 2014 from $130M revenue they should make... $16.7M?"

HDX actually made $10.3m NPAT for FY13 on revenues of $49.8m, being a 21% NPAT margin. However this was distorted somewhat by HDX still having tax lossses and not having to pay tax.

Best look at the EBITDA margins (FY13: 36%) and apply that margin to the $130m revenue, however until there is some guidance, it is pretty subjective as there is not yet much visibility on Reichdrill and JSW margins.

However, assuming those margins are not too dissimilar then you are looking at FY14 EBITDA of $40m to $50m (adopting EBITDA margins of between 30% and 40%), so very very cheap (i.e. trading on approx 2x - 2.5x EBITDA)