February 3, 2017 ICICI Securities Ltd | Retail Equity Research Result Update Revenue guidance intact… • Firstsource’s results were way above our expectation on all fronts with revenue, margins and PAT above our estimates • Revenues from operations grew 0.3% QoQ to | 860.1 crore above our 3% QoQ de-growth and | 831.5 crore estimate. Constant currency revenues grew 2.1% QoQ and 13.9% YoY • At 12.1%, EBITDA margins declined ~60 bps and were above our estimate of 11% • Reported PAT of | 69.7 crore was above our | 56.6 crore estimate led by revenue and margin beat Double digit YoY revenue growth for last four quarters… FSL’s revenues from core operations grew 0.3% QoQ led by contribution from the SKY deal. The growth was partly offset by a reduction in volume in ISGN led by weakness in US mortgage refinance market. Also, demonetisation in India led to a volume reduction for one telco client. It reiterated its ISGN revenue guidance for ~US$30-35 million revenue in FY17E. The management expects revenue to be minimum ~US$35 million in FY18E. Sky deal is continuing its transition as per plan and ~US$10-12 million in revenue is expected for FY17E with incremental revenue of ~US$30-35 million for FY18E. The deal pipeline was healthy with ~US$350 million, which was up 10-12% QoQ with good traction in the healthcare space. In terms of overall guidance, the company reiterated its revenue growth guidance of 10-12% in constant currency. The management expects Q4 to be a seasonally strong quarter with H1FY17:H2FY17E revenue ratio at 45:55. Overall, the management is watchful on a) US healthcare act and b) increasing bond yield in US as it may lead to some volume softness in mortgage refinance market. We anticipate FSL revenues will grow at CAGR of ~9% with average EBITDA margin of 12.8% in FY16-18E. Margin guidance lowered marginally with 40-50 bps improvement… At 12.1%, EBITDA margins declined 60 bps QoQ and were way above our 11% estimate. On an absolute basis, FSL reported EBITDA of | 107.1 crore, above our | 94.5 crore estimate. The margin decline was led by a seasonally weak quarter with lower number of working days, weak volume growth in one of the telco clients in India and rising interest rates in the US leading to a volume dip in mortgage origination. The management expects the mortgage refinance market (6-7% of revenue) to witness some sluggishness thereby impacting margins. From the Sky deal, the management said, going ahead, the deal may witness non-linear revenue growth thereby offsetting headwinds in margins. Overall, the management expects margins to increase 40-50 bps YoY for FY17E vs. earlier guidance of 70-90 bps led by cross currency headwinds and some weakness in the mortgage refinance market. Maintain BUY led by Sky deal ramp-up, healthy deal pipeline… We expect FSL to report revenue, PAT CAGR of 8.7%, 6.8%, respectively, in FY16-18E (average 12.8% EBITDA margins in FY17-18E), vs. 9.5%, 14% reported in FY11-16 (average 11.3%) led by a healthy deal pipeline, ramp- up of Sky deal in FY18E to aid growth. FSL is on track to become debt free by FY19E with net debt as on December 2016 at US$72 million. We value FSL at 10x based on FY18E EPS with our revised target price to | 46 (earlier target price was | 47) in line with its historical multiple for the last 10 years. We believe FSL could get re-rated, going ahead, if it keeps its debt repayment on track. Firstsource Solutions (FIRSOU) | 40 Rating matrix Rating : Buy Target : | 46 Target Period : 12 months Potential Upside : 15% What’s changed? Target Changed from | 47 to | 46 EPS FY17E Changed from | 4 to | 4.3 EPS FY18E Changed from | 4.9 to | 4.6 Rating Unchanged Quarterly performance Q3FY17 Q3FY16 YoY (%) Q2FY17 QoQ (%) Revenue 885 819 8.2 884 0.1 EBITDA 107 101 5.8 113 (4.8) EBITDA (%) 12.1 12.4 -27 bps 12.7 -65 bps PAT 69 67 3.1 71 (2.4) Key financials | Crore FY15 FY16 FY17E FY18E Net Sales 3,035 3,240 3,601 3,829 EBITDA 381 413 456 498 Net Profit 234 269 292 314 EPS (|) 3.5 3.8 4.3 4.6 Valuation summary FY15 FY16 FY17E FY18E P/E 11.3 10.5 9.3 8.6 Target P/E 13.0 12.1 10.7 9.9 EV / EBITDA 9.1 7.9 6.6 5.4 P/BV 1.3 1.4 1.1 1.0 RoNW (%) 11.2 12.9 12.0 11.6 RoCE (%) 8.8 11.7 12.5 12.9 Stock data Particular Amount Market Capitalization (| Crore) 2,655.3 Total Debt (| Crore) - Cash and Investments (| Crore) 80.2 EV (| Crore) 2,735.5 52 week H/L 54 / 25 Equity capital 673.3 Face value 10.0 Price performance 1M 3M 6M 12M FSOL (1.5) (4.7) (20.6) (4.7) HGS (23.3) (26.0) 1.1 (18.5) EXL (1.3) 1.5 (7.3) 18.1 Genpact 2.2 3.9 (8.9) 4.8 Research Analyst Deepak Purswani, CFA [email protected]Tushar Wavhal [email protected]Deepti Tayal [email protected]
Transcript
February 3, 2017
ICICI Securities Ltd | Retail Equity Research
Result Update
Revenue guidance intact… • Firstsource’s results were way above our expectation on all fronts
with revenue, margins and PAT above our estimates • Revenues from operations grew 0.3% QoQ to | 860.1 crore above
our 3% QoQ de-growth and | 831.5 crore estimate. Constant currency revenues grew 2.1% QoQ and 13.9% YoY
• At 12.1%, EBITDA margins declined ~60 bps and were above our estimate of 11%
• Reported PAT of | 69.7 crore was above our | 56.6 crore estimate led by revenue and margin beat
Double digit YoY revenue growth for last four quarters… FSL’s revenues from core operations grew 0.3% QoQ led by contribution from the SKY deal. The growth was partly offset by a reduction in volume in ISGN led by weakness in US mortgage refinance market. Also, demonetisation in India led to a volume reduction for one telco client. It reiterated its ISGN revenue guidance for ~US$30-35 million revenue in FY17E. The management expects revenue to be minimum ~US$35 million in FY18E. Sky deal is continuing its transition as per plan and ~US$10-12 million in revenue is expected for FY17E with incremental revenue of ~US$30-35 million for FY18E. The deal pipeline was healthy with ~US$350 million, which was up 10-12% QoQ with good traction in the healthcare space. In terms of overall guidance, the company reiterated its revenue growth guidance of 10-12% in constant currency. The management expects Q4 to be a seasonally strong quarter with H1FY17:H2FY17E revenue ratio at 45:55. Overall, the management is watchful on a) US healthcare act and b) increasing bond yield in US as it may lead to some volume softness in mortgage refinance market. We anticipate FSL revenues will grow at CAGR of ~9% with average EBITDA margin of 12.8% in FY16-18E. Margin guidance lowered marginally with 40-50 bps improvement… At 12.1%, EBITDA margins declined 60 bps QoQ and were way above our 11% estimate. On an absolute basis, FSL reported EBITDA of | 107.1 crore, above our | 94.5 crore estimate. The margin decline was led by a seasonally weak quarter with lower number of working days, weak volume growth in one of the telco clients in India and rising interest rates in the US leading to a volume dip in mortgage origination. The management expects the mortgage refinance market (6-7% of revenue) to witness some sluggishness thereby impacting margins. From the Sky deal, the management said, going ahead, the deal may witness non-linear revenue growth thereby offsetting headwinds in margins. Overall, the management expects margins to increase 40-50 bps YoY for FY17E vs. earlier guidance of 70-90 bps led by cross currency headwinds and some weakness in the mortgage refinance market. Maintain BUY led by Sky deal ramp-up, healthy deal pipeline… We expect FSL to report revenue, PAT CAGR of 8.7%, 6.8%, respectively, in FY16-18E (average 12.8% EBITDA margins in FY17-18E), vs. 9.5%, 14% reported in FY11-16 (average 11.3%) led by a healthy deal pipeline, ramp-up of Sky deal in FY18E to aid growth. FSL is on track to become debt free by FY19E with net debt as on December 2016 at US$72 million. We value FSL at 10x based on FY18E EPS with our revised target price to | 46 (earlier target price was | 47) in line with its historical multiple for the last 10 years. We believe FSL could get re-rated, going ahead, if it keeps its debt repayment on track.
PAT 69.5 56.6 67.4 3.1 71.2 -2.4 PAT was above our expectations due to revenue growth and margin beat Source: Company, ICICIdirect.com Research Change in estimates
FY17E FY18E(| Crore) Old New % Change Old New % Change Comments
ICICI Securities Ltd | Retail Equity Research Page 3
Company Analysis Conference call highlights…
• The management maintained its revenue growth guidance of 10-12% on a constant currency basis for FY17E. However, it guided for a slightly lower margin profile due to underperformance of its mortgage business
• The company signed a 10-year contract with Sky and invested £12 million on contract signing in Q3. This could contribute ~US$10 million to revenue by FY17E with ~US$35-40 million incremental revenues expected in FY18E. It is on track to transition around ~900-1000 employees by March 1, 2017
• The management expects ISGN to be on track and contribute US$30-35 million revenue by FY17E. It expects to witness minimum US$35 million revenue run rate in FY18E
• The management has revised its margin improvement guidance of 40-50 bps in FY17E vs. earlier 70-90 bps owing to currency headwind, weakness in mortgage business
• Net long-term debt was at US$72 million as on Q3FY17. Cash and cash equivalent was at | 126.5 crore vs. | 122 crore in Q2FY17. Capex during the quarter was at | 17.6 crore vs. | 20.8 crore in Q2FY17
• It added 1082 net employees during the quarter taking total to 25,992. Seat fill factor was at 75% vs. 72% in Q2FY17
• Outstanding hedges were at US$55 million and £53 million
ICICI Securities Ltd | Retail Equity Research Page 4
Double digit YoY revenue growth in last four quarters… FSL’s revenues from core operations grew 0.3% QoQ led by contribution from the SKY deal. The growth was partly offset by a reduction in volume in ISGN led by weakness in US mortgage refinance market. Also, demonetisation in India led to a volume reduction for one telco client. It reiterated its ISGN revenue guidance for ~US$30-35 million revenue in FY17E. The management expects revenue to be minimum ~US$35 million in FY18E. Sky deal is continuing its transition as per plan and ~US$10-12 million in revenue is expected for FY17E with incremental revenue of ~US$30-35 million for FY18E. The deal pipeline was healthy with ~US$350 million, which was up 10-12% QoQ with good traction in the healthcare space. In terms of overall guidance, the company reiterated its revenue growth guidance of 10-12% in constant currency. The management expects Q4 to be a seasonally strong quarter with H1FY17:H2FY17E revenue ratio at 45:55. Overall, the management is watchful on a) US healthcare act and b) increasing bond yield in US as it may lead to some volume softness in mortgage refinance market. We anticipate FSL revenues will grow at CAGR of ~9% with average EBITDA margin of 12.8% in FY16-18E. Among geographies, RoW (0.6% of revenue) led the decline with 33.1% QoQ de-growth on top of 41.2% decline in Q2FY17 while UK (37.6% of revenue) and India (5.6% of revenue) also declined sequentially by 1% and 4.8%, respectively. Only the US (56.2% of revenue) grew 2.3% QoQ leading the overall company growth. Among verticals, telecom & media (32.9% of revenue) grew 10.8% QoQ and healthcare (35.6% of revenue) grew 3.5% QoQ post two consecutive quarterly declines. BFSI (31.2% of revenue) declined 11.8% QoQ post average 18.3% sequential revenue growth for the last three consecutive quarters. Telecom & media vertical grew despite one of the telecom clients witnessing weakness during the quarter owing to demonetisation in India. Exhibit 1: Rupee revenue may grow at 8.7% CAGR in FY16-18E
2055 2255
28193106 3035
741 788 819 869
3240
885
36013829
894 884
0.0
10.6
20.9
11.16.3
9.7
25.0
10.2
-2.3
4.06.8
20.5
12.38.2
500
1300
2100
2900
3700
4500
FY11
FY12
FY13
FY14
FY15
Q1FY
16
Q2FY
16
Q3FY
16
Q4FY
16
FY16
Q1FY
17
Q2FY
17
Q3FY
17
FY17
E
FY18
E
| cr
ore
-10
0
10
20
30
40
%
Rupee revenue Growth, YoY
Source: Company, ICICIdirect.com Research
Margin guidance lowered marginally with 40-50 bps improvement… At 12.1%, EBITDA margins declined 60 bps QoQ and were way above our 11% estimate. On an absolute basis, FSL reported EBITDA of | 107.1 crore, above our | 94.5 crore estimate. The margin decline was led by a seasonally weak quarter with fewer working days, weak volume growth in one of the telecom clients in India and rising interest rates in the US leading to a volume dip in mortgage origination. The management expects the mortgage refinance market (6-7% of revenue) to witness some sluggishness thereby impacting margins. From the Sky deal, the
ICICI Securities Ltd | Retail Equity Research Page 5
management said, going ahead, the deal could witness non-linear revenue growth thereby offsetting headwinds in margins. Overall, the management expects margins to increase 40-50 bps YoY for FY17E vs. earlier guidance of 70-90 bps led by cross currency headwinds and some weakness in the mortgage refinance market. Exhibit 2: Modelling 30 bps YoY improvement in FY18E margins
14.1
8.29.9
11.712.5
11.4 11.9 12.4 12.8 12.7 13.3 12.7 12.1 12.7 13.0
5
8
11
14
17
20
FY11
FY12
FY13
FY14
FY15
Q1FY
16
Q2FY
16
Q3FY
16
Q4FY
16
FY16
Q1FY
17
Q2FY
17
Q3FY
17
FY17
E
FY18
E
%
EBITDA margin
Source: Company, ICICIdirect.com Research
Exhibit 3: Seat fill factor grows 300 bps QoQ
71.0
74.1
81.8
77.0
69.068.0
66.6 66.068.0 68.0
72.0 72.0
75.0
65
69
73
77
81
85
FY11
FY12
FY13
FY14
FY15
Q1FY
16
Q2FY
16
Q3FY
16
Q4FY
16
FY16
Q1FY
17
Q2FY
17
Q3FY
17
%
Seat fill factor
Source: Company, ICICIdirect.com Research
Top customer revenue grows ~19.1% QoQ… Top customer (23.5% of revenue) grew 19.1% vs. decline of 6.3% QoQ led the overall marginal revenue growth for the company. Top 2-5 customer revenues declined 10% QoQ. Non-top five clients declined 1.8% QoQ on top of 6.3% decline in Q2FY17.
Debt repayment on track…
As on Q3FY17 end, FSL had net long term debt of ~$72 million. At the current repayment rate of US$11.25 million quarterly run-rate, FSL would be debt free by FY19E. Cash and cash equivalent was at | 126.5 crore as on December 31, 2016.
ICICI Securities Ltd | Retail Equity Research Page 6
Sky deal may add incremental revenue of ~US$30-35 million in FY18E… The Sky deal is progressing well as per planned timelines. It is on track to transition 900-1000 employees by March 1, 2017. The management expects the deal to contribute ~US$10-12 million in revenue by FY17E and expects incremental revenue to the tune of ~US$30-35 million in FY18E leading to 6-7% overall revenue visibility in FY18E. Total £12 million has been paid as part of the deal vs. ~US$26 million over a three year period. Exhibit 4: Sky Deal…
Particulars
Total Increase in employees ~1000
Contract signing Nov-16
1st phase of transition Sep-16
Addition of employees in Phase I ~257
2nd phase of transition Mar-17
Addition of employees in Phase II ~800
Revenue contribution in FY17E ~$ 10-12 mn
Revenue contribution in FY18E ~$ 40 mn
Total Investment over 3 year period $ 26 mn
Source: Company, ICICIdirect.com Research
ICICI Securities Ltd | Retail Equity Research Page 7
Outlook and valuation We estimate FSL may report revenue, PAT CAGR of 8.7%, 6.8%, respectively, in FY16-18E (average 12.8% EBITDA margins in FY17-18E), vs. 9.5%, 14% reported in FY11-16 (average 11.3%) led by a healthy deal pipeline, ramp-up of Sky deal in FY18E to aid growth. FSL is on track to become debt free by FY19E with net debt as on December 2016 at US$72 million. We value FSL at 10x based on FY18E EPS with a revised target price to | 46 (earlier target price was | 47) in line with its historical multiple for the last 10 years. We believe FSL could get re-rated, going ahead, if it maintains its debt repayment on track. Exhibit 5: One year forward rolling EV/EBITDA
01000200030004000500060007000
Feb-
09
Aug
-09
Feb-
10
Aug
-10
Feb-
11
Aug
-11
Feb-
12
Aug
-12
Feb-
13
Aug
-13
Feb-
14
Aug
-14
Feb-
15
Aug
-15
Feb-
16
Aug
-16
Feb-
17
|
EV 10 8 6 4 2
Source: Company, ICICIdirect.com Research
Exhibit 6: Valuations
Sales Growth EPS Growth PE EV/EBITDA RoNW RoCE (| cr) (%) (|) (%) (x) (x) (%) (%)
Price Idirect target Consensus Target Mean % Consensus with BUY
Source: Bloomberg, Company, ICICIdirect.com Research Key events Date Event
Dec-13 The company successfully makes its third quarterly principal repayment of $11.25 million on its outstanding debt on December 31, 2013
Mar-14 The company successfully makes its fourth quarterly principal repayment of $11.25 million on its outstanding debt on March 31, 2014
Apr-14The company reports in line quarter with 174 bps margin expansion for FY14 led by exiting lower margin domestic business. It reduces FY15E growth outlook to 6% from 8% earlier.
Nov-14 FSL reports moderate growth during Q2FY15 with 94 bps YoY margin expansion. However, it lowers its FY15E guidance to 2-2.5% vs. 6% earlier
May-15 Reports weak Q4FY15 earnings as revenues, absolute EBITDA and PAT were below our estimates
Jun-15 Firstsource reports soft Q1FY16 earnings. Though revenues were above our estimates, absolute EBITDA and PAT were below
Oct-15Reports strong Q2FY16 earnings, which were in line with our raised estimates.Revenues from operations grew 6.1% QoQ while constant currency revenues grew 3.2% QoQ
Mar-16Firstsource Group USA, Inc, a wholly owned subsidiary of the Company has successfully made its Fourth quarterly repayment of USD 11.25 million on its outstanding debt on March 31,2016
May-16 Firstsource completes acquisition of ISGN's Business Process Outsourcing Division".
Jun-16Firstsource Group USA, Inc, a wholly owned subsidiary of the company successfully makes its fifth quarterly repayment of US$11.25 million on its outstanding debt on June 30, 2016
Dec-16Firstsource Group USA, Inc, a wholly owned subsidiary of the Company successfully makes its seventh quarterly repayment of US$11.25 million on its outstanding debt on December 31, 2016.
Jan-17 Firstsource Solutions and Sky UK sign contract for previously announced 10-year strategic partnership
Source: Company, ICICIdirect.com Research Top 10 Shareholders Shareholding Pattern Rank Name Latest Filing Date % O/S Position (m) Change (m)1 RPG Enterprises 30-Sep-16 55.2% 373.98 02 ICICI Group 30-Sep-16 4.7% 32.08 03 Jhunjhunwala (Rakesh Radheshyam) 30-Sep-16 3.7% 25.00 +1.504 Goldman Sachs Asset Management International 30-Sep-16 2.7% 18.52 05 Dimensional Fund Advisors, L.P. 30-Nov-16 2.0% 13.37 06 Birla Sun Life Asset Management Company Ltd. 31-Dec-16 1.6% 10.78 +1.317 Steinberg Asset Management, LLC 30-Sep-16 1.6% 10.49 -0.018 Subramaniam (Rajesh) 9-Jan-17 0.2% 1.63 -0.329 Van Eck Associates Corporation 31-Dec-16 0.2% 1.51 -0.0810 Mellon Capital Management Corporation 31-Dec-16 0.1% 0.77 +0.00
ICICI Securities Ltd | Retail Equity Research Page 11
RATING RATIONALE ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns ratings to its stocks according to their notional target price vs. current market price and then categorises them as Strong Buy, Buy, Hold and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts' valuation for a stock. Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction; Buy: >10%/15% for large caps/midcaps, respectively; Hold: Up to +/-10%; Sell: -10% or more;
ICICI Securities Ltd | Retail Equity Research Page 12
ANALYST CERTIFICATION We /I, Deepak Purswani, CFA MBA (Finance), Tushar Wavhal, MBA, Deepti Tayal, MBA, Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report.
Terms & conditions and other disclosures: ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock brokering and distribution of financial products. ICICI Securities Limited is a Sebi registered Research Analyst with Sebi Registration Number – INH000000990. ICICI Securities is a wholly-owned subsidiary of ICICI Bank which is India’s largest private sector bank and has its various subsidiaries engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capital fund management, etc. (“associates”), the details in respect of which are available on www.icicibank.com. ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in India. We and our associates might have investment banking and other business relationship with a significant percentage of companies covered by our Investment Research Department. ICICI Securities generally prohibits its analysts, persons reporting to analysts and their relatives from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover. The information and opinions in this report have been prepared by ICICI Securities and are subject to change without any notice. The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI Securities. While we would endeavour to update the information herein on a reasonable basis, ICICI Securities is under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent ICICI Securities from doing so. Non-rated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable regulations and/or ICICI Securities policies, in circumstances where ICICI Securities might be acting in an advisory capacity to this company, or in certain other circumstances. This report is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. ICICI Securities will not treat recipients as customers by virtue of their receiving this report. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. The recipient should independently evaluate the investment risks. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. ICICI Securities accepts no liabilities whatsoever for any loss or damage of any kind arising out of the use of this report. Past performance is not necessarily a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the risks associated before investing in the securities markets. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to change without notice. ICICI Securities or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any other assignment in the past twelve months. ICICI Securities or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for services in respect of managing or co-managing public offerings, corporate finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or specific transaction. ICICI Securities or its associates might have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the companies mentioned in the report in the past twelve months. ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. ICICI Securities or its associates or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither ICICI Securities nor Research Analysts and their relatives have any material conflict of interest at the time of publication of this report. It is confirmed that Deepak Purswani, CFA MBA (Finance), Tushar Wavhal, MBA, Deepti Tayal, MBA, Research Analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. ICICI Securities or its subsidiaries collectively or Research Analysts or their relatives do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the publication of the research report. Since associates of ICICI Securities are engaged in various financial service businesses, they might have financial interests or beneficial ownership in various companies including the subject company/companies mentioned in this report. It is confirmed that Deepak Purswani, CFA MBA (Finance), Tushar Wavhal, MBA, Deepti Tayal, MBA, Research Analysts do not serve as an officer, director or employee of the companies mentioned in the report. ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies mentioned in the report. We submit that no material disciplinary action has been taken on ICICI Securities by any Regulatory Authority impacting Equity Research Analysis activities. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject ICICI Securities and affiliates to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.
