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PICK OF THE WEEK Nov 20, 2017
PTC INDIA LTD.
Recommendation
Buy at CMP and add on declines
Add on dips to
Rs. 103-106
Sequential Targets
Rs. 131 & Rs. 143
Time Horizon
3-4 Quarters
Industry
Trading-Power
CMP
Rs. 116
FUNDAMENTAL ANALYST AtulKarwa [email protected]
HDFC Scrip Code POWTRAEQNR BSE Code 532524 NSE Code PTC Bloomberg PTCIN IN CMP (17 Nov 17) 116.35 Equity Capital (Rs Cr) 296.0 Face Value (Rs) 10 Eq- Share O/S(Cr) 29.60 Market Cap (Rs Cr) 3444 Book Val (FY17-Rs) 103.9 Avg.52 Wk Volume 23,83,500 52 Week High 130.20 52 Week Low 66.80
Shareholding Pattern % (Sep 30, 17) Promoters 16.22 Institutions 59.96 Non Institutions 23.82 Total 100.0
We had issued a Pick of the Week report on Feb 6, 2017 with a recommendation to buy at CMP of Rs 86 and add the stock in the price band of Rs. 77-79 for sequential targets of Rs. 99 and Rs. 114 in 2-3 quarters. The stock achieved both the targets on Apr 11 and Jul 13, 2017 respectively and later made a high of Rs. 130.20 on Sep 21, 2017. Refer: http://old.hdfcsec.com/Research/ResearchDetails.aspx?report_id=3021164. The stock has corrected now to Rs.116. We now review the latest developments in the company and provide our updated view on the stock. Company Description PTC India Ltd. (PTC) had been established with an objective, interalia, to carry on the business of purchase of all forms of electrical power from Independent Power Producers (IPPs), Captive Power Plants (CPPs), other Generating Companies, State Electricity Boards etc., for sale to SEBs, Power Distribution Companies, other organisations and bulk power consumers etc., in India and abroad. Established in 1999, it was a pioneer in starting a power market in India. Formerly known as Power Trading Corporation, it started trading power on a sustainable basis from 2001 and has remained the premier organization for power trading. Investment Rationale:
Teesta Urja operationalization to drive long term volume growth; To be the nodal agency to facilitate 1,050 MW electricity trade from renewable sources; Increasing share of long term trades to drive margins; Looking to divest 26% stake in PTC Energy - Value unlocking potential; Diversifying customer base and offering value added services.
Concerns:
Scrapping of PPA by State Governments; Rising NPA in subsidiary (PFS); Delay in monetization of non-core assets; Regulatory risk of policy changes.
View and Valuation The commissioning of Teesta Urja project would give a boost to the higher-margin long term volumes of the company whose proportion increased by 206 bps in FY17 to 40.8%. With the pickup in economic activity, average realization are likely to inch up as the company ties up more medium and long term volumes which provide a higher margin. We expect PTC to report healthy sales growth of 22.2% CAGR over FY17-FY19E driven mainly by increasing volume and better realizations. Further, PTC Energy is setting up ~300 MW wind power project which is likely to earn 16% post-tax RoE vs ~9% earned by the
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PICK OF THE WEEK Nov 20, 2017
PTC INDIA LTD.
company on its regular trading business. Unlocking of value of Investments in PTC Energy could be a trigger for the company though its timing is uncertain. Diversification into other power related services would reduce the dependence on power trading and improve the return ratios in the coming years. We have valued the company on SOTP basis and feel investors could buy the stock at the CMP and add on declines to Rs 103-106 band for sequential targets of Rs 131 (considering 11x FY19E Core EPS and 30% holding company discount) and Rs 143 (considering 13x FY19E Core EPS) over the next 3-4 quarters. Financial Summary - Standalone
Particulars (Rs Cr) Q2FY18 Q2FY17 YoY-% Q1FY18 QoQ-% FY16 FY17 FY18E FY19E Operating Income 5289.3 4049.6 30.6 4401.8 20.2 12475.9 14074.8 17163.2 21009.1 EBITDA 93.6 91.0 2.9 88.8 5.5 303.6 308.3 317.5 382.4 Reported PAT 130.5 113.1 0.2 65.4 1.0 234.4 290.9 305.0 404.9 EPS (Rs) 1.1 1.1 1.2 3.7 4.1 4.0 5.9 Core EPS (Rs) 14.7 11.8 11.3 8.5 P/E (x) 10.4 13.0 12.5 10.4 RoE (%) 8.5 9.8 9.6 11.9
Source: (Company, HDFC sec)
Company Overview PTC India Ltd. (PTC) had been established with an objective, inter alia, to carry on the business of purchase of all forms of electrical power from Independent Power Producers (IPPs), Captive Power Plants (CPPs), other Generating Companies, State Electricity Boards etc., for sale to SEBs, Power Distribution Companies, other organisations and bulk power consumers etc., in India and abroad. Established in 1999, it was a pioneer in starting a power market in India. Formerly known as Power Trading Corporation, it started trading power on a sustainable basis from 2001 and has remained the premier organization for power trading.
Company structure
(Source: Company, HDFC Sec)
65% 100%
6.9% 16.9%
PTC India Ltd
PTC Energy LtdPTC India Financial Services
Teesta Urja Ltd
Other major investments
Athena Energy Ventures
KEY HIGHLIGHTS
The much delayed 1200 MW Teesta Urja hydro project became operational in Q4FY17. Long term power trading from this project likely to begin from FY19.
PTC India selected to be the nodal agency to facilitate 1,050 MW electricity trade from renewable sources
Share of long term trade volumes
have been increasing and accounted for 52% in H1FY18
Looking to divest 26% stake in PTC
Energy. Market estimates value the company at Rs 2000-2500 cr against investment of ~Rs 650 cr
Increasing dividend to result in
attractive dividend yield.
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PTC INDIA LTD.
Key shareholders Promoters hold 16.2% stake in the company while institutions hold 60%. Major shareholders as on Sep-17 include:
Shareholder % holding NHPC, NTPC, PGCIL and PFC (Promoters-4.05% each) 16.2 Domestic Institutional Investors LIC of India 9.3 Other insurance companies 11.9 Reliance Mutual Fund 3.6 Aditya Birla Sunlife Mutual Fund 1.7 Foreign Portfolio Investors Colonial First State Investment 1.2 Dimension Emerging Market Value Fund 1.3 Caisse DE Depot et Placement Du Quebec 1.7 IShares Core Emerging Markets 1.2 State Street Emerging Markets Fund 1.4 HSBC Global Investment 3.1 Government Pension Fund 3.6 Active Emerging Markets Fund 2.5
(Source: BSE, HDFC Sec)
Key Subsidiaries PTC India has two major subsidiaries: PTC India Financial Services Ltd (PFS): PFS is a subsidiary of PTC wherein PTC holds 65% stake and has invested Rs 755 cr. PFS is listed on NSE and BSE and has been classified as Infrastructure Finance Company (IFC) by the Reserve Bank of India. PFS has recorded revenue of Rs 1199 cr during FY17 registering a growth of 23.4% over FY16. PAT for FY17 stood at Rs 260 cr. PFS declared a dividend of 15% i.e. Rs 1.5 per share for FY17. PTC Energy Ltd (PEL): PEL was set up as a subsidiary of PTC with a vision to play a pivotal role in India’s emerging Energy sector through asset base business and as a fuel aggregator. PTC has invested Rs 654 cr in PEL. As of FY17 PEL has operational capacity of 289 MW and it plans to add 300 MW in FY18. In FY17, PEL has recorded total income of Rs 47 cr compared to Rs 5 cr in FY16. Investment Rationale Teesta Urja operationalization to drive long term volume The much delayed 1200 MW (200 MW x 6 units) Teesta Urja hydro project became operational in Q4FY17. CERC has approved an interim tariff of 4.8/unit for two years. PTC has entered into long term PPA agreement from this project for 800 MW which is likely to begin from FY19. In the meantime the company is selling the power on short term basis. This will add to the long term volumes of the company going forward.
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PICK OF THE WEEK Nov 20, 2017
PTC INDIA LTD.
To be the nodal agency to facilitate 1,050 MW electricity trade from renewable sources PTC India has been selected to act as the trading partner for sale and purchase of power from wind power projects selected through the government’s first-ever auction of wind power projects of 1,050 Megawatt capacity. PTC will be the nodal entity for supplying power to utilities after entering into a power purchase agreement (PPA) with successful bidders. The agreements with discoms of Uttar Pradesh (450 MW), Bihar (200 MW), Jharkhand (200 MW), Delhi (100 MW), Odisha (50 MW) and Assam (50 MW) have already been signed. As per the PPAs signed, Mytrah Energy, Inox Wind and Ostro Kutch Wind Pvt. Ltd. would supply wind power of capacity 250 MW each. Further, Green Infra would supply 249.9 MW and Adani Green Energy 50 MW from their wind power projects through inter-state transmission system at a tariff of Rs. 3.46 per kWh discovered through the open and transparent e-reverse auction competitive bidding process conducted by Solar Energy Corporation of India (SECI). Increasing share of long term trades Trading volumes increased by 11.6% yoy in H1FY18 to 31 bn units driven by 20.5% increase in long term volumes. PTC’s contract for supplying 250 MW to Bangladesh which was earlier extended for 6 months upto July-2017 has been extended further upto Jan-2018 aiding long term volume growth. Medium term volumes dipped by 13.6% to 1.3 bn units. Solar Energy Corporation Ltd. has also extended the existing contract for facilitation of trading of solar power of upto 750 MW by 6 months till Mar-2018. Assam Electricity Regulatory Commission has approved PSA signed between PTC and APDCL for supply of power from Nikhachu Hydro Electric Project in Bhutan on long term basis for 25 years. Volumes from LT trades were 52.2% of total in Q2FY18 vs 49% a year ago.
Volume share and EBITDA margin trend
(Source: Company, HDFC Sec)
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PICK OF THE WEEK Nov 20, 2017
PTC INDIA LTD.
Looking to divest 26% stake in PTC Energy – Value unlocking potential PTC Energy Limited (PEL) executed 5 wind power projects aggregating to 239 MW in AP and Karnataka. PTC has so far invested ~Rs 650 cr in PTC Energy (up from Rs.141 cr in FY16) and is looking to divest 26% stake in the company to raise funds for future expansion projects. Asian Development Bank and three other financial institutional investors are eyeing up to 26 percent stake in PTC Energy. According to market estimates the transaction is expected to value the company at Rs 2000-2500 cr. PTC Energy plans to go for an IPO in two-three years. PTC Energy ended financial year FY17 with a wind power capacity of 288.8 MW. It has a 2021 year target of reaching an installed renewable power capacity of 2,000 MW. While the current portfolio includes only wind power, it aims to have 25 percent of its 2021 capacity coming from solar. The company has scaled back its power capacity addition target for 2017-18 to 300 MW from 500 MW, owing to uncertainties in the power sector. The company wants to bring in some solar power for the first time to its portfolio — the target being 25 MW-50 MW for FY18. PTC India has invested Rs.1409 cr in companies that are either yielding little or not yielding anything to PTC India. This has resulted in its RoE being low at 6-7%. A minority FII shareholder had sought a seat on the Board of Directors of PTC India for its nominee to correct this situation but the resolution was defeated in its AGM in Sept 2017. In case the management comes under pressure to undo this grievance, then value unlocking of investments in PTC Energy and other investments can happen soon. Attractive dividend yield As PTC has limited requirement for capex it has been paying out surpluses to the shareholders as dividend. Dividend paid by the company has increased from 15% in FY12 to 30% in FY17 and likely to increase further. If PTC is able to divest 26% in PTC Energy the requirement to fund the subsidiaries would reduce leaving more cash to be distributed to shareholders. At the current price the FY17 dividend yield works out to 2.6%. Cross Border trade PTC plays an instrumental role in providing electricity to India’s neighbouring countries thereby building strong relations between India and its neighbours. Cross-border trade with Bhutan witnessed 5.4 bn units in FY17. Also, trade with Nepal witnessed 133 mn units. In addition to the above, PTC continues to supply 250 MW power to Bangladesh Power Development Board (BPDB) from West Bengal which registered a volume of 1.9 bn units in FY17. In addition to this, PTC has commenced supply of 40 MW power in Oct, 2017 to BPDB on medium term basis through competitive bidding and has supplied 115 mn units in FY17. Cross-border transactions remain a vital part of PTC’s trade volume with steady increase. Diversifying customer base and offering value added services Besides being a power trading company PTC is now looking to diversify its customer base (bulk and retail customers) and offer value add services like demand planning and forecasting, O&M operations, power trading to its customers. It is developing an advanced demand forecasting tool for SEB, helping Indian Railways with power procurement and handling
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PICK OF THE WEEK Nov 20, 2017
PTC INDIA LTD.
power O&M for SEZ. The diversification would be beneficial in expanding margins as power margins are capped. During Q1FY18, the new consultancy business has gained momentum. Revenue from consultancy increased to Rs.4.3 cr (up 3.3x, though on a low base). Concerns Scrapping of PPA by Government Andhra Pradesh and Karnataka, which account for a quarter of the country’s installed wind capacity, are renegotiating or scrapping purchase agreements with developers and want power at prices lower than what had been stipulated in contracts already signed. This could have an adverse impact on PTC Energy which is looking to develop 300 MW of wind power projects in FY18. Increasing NPA in subsidiary (PFS) Gross/Net NPA levels (%) in its subsidiary have increased to 5.92/4.28 in Q2FY18 from 5.83/4.11 in Q1FY18 despite higher provisioning in Q2FY18. Disbursements have also slowed down resulting in loan book remaining flattish in H1FY18 while NIMs have also compressed 200 bps from 6.15% in Q2FY17 to 4.15% in Q2FY18. Delays in completion of renewable energy projects could further put stress on its asset quality. Delay in monetization of non-core assets If non-core investments are not monetized soon, return ratios would continue to be poor – If PTC India does not start or continue the process of value unlocking in its subsidiaries where it has made a lot of investments, then the return ratios would continue to be poor and the stock price may take time to perform. Low margins on short term trades If the shift to long term trade is not hastened, then the overall margins could be poor as short term trades result in low margins of less than half of that made on long term trades. Competitive bid for short term power and renewable energy There is stiff competition between PTC and power exchanges for power trading volumes which may lead to margin erosion and impede PTC’s profitability. Regulatory risk of policy change With the Government’s intention to provide power for ‘Power for All’ PTC runs the risk from policy and regulatory restrictions in power and coal segments. The implementation of policies and regulations at the State level also is a concern specifically for open access, PPA revision and net metering. Seasonality in trading volumes Power trading revenues in India are 55% in the first half and the balance in the second half of the fiscal. This results in the first half being better than the second half for PTC India.
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PICK OF THE WEEK Nov 20, 2017
PTC INDIA LTD.
Q2FY18 Results Review During Q2FY18, PTC India reported 8% YoY jump in traded volume at 16.8 bn units. Operating income increased by 30.6% yoy to Rs 5289 cr driven by higher realization growth. EBITDA margins however declined by 48 bps to 1.8% as cost of power traded increased 31.6% yoy. Lower tax provision at 20.7% as compared to 22.1% in Q2FY17 resulted in PAT compressing by 32 bps to 2.5%. The share of short-term and medium-term trade dipped by ~330 bps and ~100 bps respectively to 47.7% and 3.7% while share of long-term trades increased to 48.5%, up 420 bps YoY. Average Exchange price fell 14% to Rs 2.32/unit. The reported margin without the rebate and surcharge declined 6.5% to 4.3 ps/unit. Cash and liquid investments decreased 12.5% over H1FY17 to Rs 597 cr.
Volume and margin trend
(Source: Company, HDFC Sec)
Particulars (Rs Cr) Q2FY18 Q2FY17 YoY (%) Q1FY18 QoQ (%) H1FY18 H1FY17 YoY (%) Operating Income 5289.3 4049.6 30.6 4401.8 20.2 9691.1 7693.9 26.0 Material consumed 5173.3 3944.7 31.1 4295.8 20.4 9469.2 7502.3 26.2 Employee expenses 7.4 7.2 2.8 7.6 -2.5 15.1 14.4 4.4 Other expenses 14.9 6.7 121.5 9.5 56.5 24.5 12.9 90.1 Total expenses 5195.7 3958.6 31.2 4313.0 20.5 9508.7 7529.6 26.3 EBITDA 93.6 91.0 2.9 88.8 5.5 182.4 164.4 11.0 Depreciation 0.7 0.8 -17.9 0.7 1.5 1.4 1.6 -14.9
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PICK OF THE WEEK Nov 20, 2017
PTC INDIA LTD.
Other Income 125.0 101.5 23.1 42.9 191.6 167.8 141.2 18.8 Finance cost 53.4 46.6 14.6 35.2 51.7 88.6 77.3 14.6 PBT 164.5 145.1 13.4 95.8 71.8 260.3 226.7 14.8 Tax expenses 34.0 32.0 6.2 30.4 11.7 64.4 57.2 12.6 PAT 130.5 113.1 15.5 65.4 99.8 195.9 169.5 15.6 EPS (Rs) 4.4 3.8 15.5 2.2 99.8 6.6 5.7 15.6 Core EPS (Rs) 1.1 1.1 -7.5 1.2 -13.1 2.4 2.2 8.9
EBITDA (%) 1.8% 2.2% -48 bps 2.0% -25 bps 1.9% 2.1% -25 bps PAT (%) 2.5% 2.8% -32 bps 1.5% 98 bps 2.0% 2.2% -18 bps
(Source: Company, HDFC sec)
View and Valuation: The commissioning of Teesta Urja project would give a boost to the higher-margin long term volumes of the company whose proportion increased by 206 bps in FY17 to 40.8%. With the pickup in economic activity, average realization are likely to inch up as the company ties up more medium and long term volumes which provide a higher margin. We expect PTC to report healthy sales growth of 22.2% CAGR over FY17-FY19E driven mainly by increasing volume and better realizations. Further, PTC Energy is setting up ~300 MW wind power project which is likely to earn 16% post-tax RoE vs ~9% earned by the company on its regular trading business. Unlocking of value of Investments in PTC Energy could be a trigger for the company though its timing is uncertain. Diversification into other power related services would reduce the dependence on power trading and improve the return ratios in the coming years. We have valued the company on SOTP basis and feel investors could buy the stock at the CMP and add on declines to Rs 103-106 band for sequential targets of Rs 131 (considering 11x FY19E Core EPS and 30% holding company discount) and Rs 143 (considering 13x FY19E Core EPS) over the next 3-4 quarters. SOTP Valuation
Particulars Valuation Basis Value / share Core Business 11x/13x FY19E Core EPS 65/77 PTC India Financial 30% Holding co. discount on CMP 16 PTC Energy Book Value 22 Other Co. Investments * FY17 Fair Value 10 Cash & Curr Investments FY17 Book Value 25 Less: Substandard Assets 65% Haircut on other investments -6 Total Valuation per share 131/143
* Includes Athena, Teesta Urja and Chenab Valley
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PTC INDIA LTD.
Financial Statements - Standalone
Income Statement Cash Flow statement Particulars FY16 FY17 FY18E FY19E Particulars FY16 FY17 FY18E FY19E Income from operations 12475.9 14074.8 17163.2 21009.1 Profit Before Tax 344.1 409.0 435.7 574.3 Cost of materials consumed 11872.0 13479.3 16588.2 20299.0 Depreciation 3.5 2.7 2.6 2.5 Employee Cost 25.4 28.7 34.3 42.0 Others -40.4 -83.9 61.3 0.2 Other expenses 274.9 258.6 223.1 285.7 Change in working capital -347.7 700.1 -35.2 88.4 Total expenses 12172.3 13766.5 16845.7 20626.8 Tax expenses -141.0 -87.0 -130.7 -169.4 EBITDA 303.6 308.3 317.5 382.4 CF from Operating activities -181.4 940.9 333.7 495.9 Depreciation 3.5 2.7 2.6 2.5 Net Capex -0.8 -7.8 -5.0 -7.0 EBIT 484.3 543.6 580.9 705.5 Other investing activities 324.3 -696.5 -100.0 -150.0 Other Income 184.2 238.0 266.0 325.6 CF from Investing activities 323.5 -704.2 -105.0 -157.0 Finance Cost 102.6 134.6 145.3 131.2 Proceeds from Eq Cap 0.0 0.0 0.0 0.0 Profit Before Tax 344.1 409.0 435.7 574.3 Borrowings / (Repayments) 0.0 0.0 -45.0 -55.0 Tax Expenses 109.7 118.1 130.7 169.4 Dividends paid -71.5 -80.8 -117.2 -142.1 Reported PAT 234.4 290.9 305.0 404.9 Interest paid -101.8 -134.9 -145.3 -131.2 EPS 7.9 9.8 10.3 13.7 CF from Financing activities -230.4 -229.6 -307.5 -328.3 Core EPS 3.7 4.1 4.0 5.9 Net Cash Flow -88.2 7.1 -78.8 10.6
Balance Sheet Financial Ratios Particulars FY16 FY17 FY18E FY19E Particulars FY16 FY17 FY18E FY19E EQUITY AND LIABILITIES EPS (Rs) 7.9 9.8 10.3 13.7 Share Capital 296.0 296.0 296.0 296.0 Cash EPS (Rs) 8.0 9.9 10.4 13.8 Reserves and Surplus 2342.6 2589.7 2778.9 2966.6 BVPS (Rs) 97.5 103.9 110.2 119.1 Shareholders' Funds 2638.6 2885.7 3074.9 3262.6 Long Term borrowings 0.0 715.0 682.8 637.8 PE (x) 14.7 11.8 11.3 8.5 Deferred Tax Liabilities (Net) -6.4 -20.7 -21.7 -21.7 P/BV (x) 97.5 103.9 110.2 119.1 Other Long Term Liabilities 0.0 0.0 0.0 0.0 Mcap/Sales (x) 0.3 0.2 0.2 0.2 Long Term Provisions 2.6 3.9 5.0 8.4 EV/EBITDA 10.4 13.0 12.5 10.4 Non-current Liabilities -3.8 698.1 666.1 624.5 Short Term Borrowings 0.0 0.0 0.0 0.0 EBITDAM (%) 2.4 2.2 1.9 1.8 Trade Payables 1620.7 2478.6 2732.1 3197.5 EBITM (%) 3.9 3.9 3.4 3.4 Other Current Liabilities 34.0 99.8 108.8 122.3 PATM (%) 1.9 2.1 1.8 1.9 Short Term Provisions 81.6 0.1 0.6 1.0 Current. Liabilities 1736.3 2578.5 2841.5 3320.8 ROCE (%) 15.5 14.8 15.2 17.6 TOTAL 4371.1 6162.3 6582.4 7208.0 RONW (%) 8.5 9.8 9.6 11.9
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PICK OF THE WEEK Nov 20, 2017
PTC INDIA LTD.
ASSETS Fixed Assets Current Ratio (x) 1.8 1.5 1.4 1.3 Net Block 27.2 24.6 24.7 27.1 Quick Ratio (x) 1.8 1.5 1.4 1.3 Capital work-in-progress 0.0 0.0 0.0 0.0 Debt-Equity (x) 0.2 0.2 0.2 0.2 Non current Investments 877.3 890.4 1696.1 1756.1 Long-Term Loans and Advances 16.1 0.8 0.8 0.8 Debtor Days 91 90 75 71 Other Non-current Assets 0.0 715.1 687.6 771.6 Inventory Days 0 0 0 0 Non-current Assets 893.4 1606.3 2384.5 2528.4 Creditor Days 61 69 64 63 Current Investments 576.8 478.9 572.2 612.2 Inventories 0.0 0.0 0.0 0.0 Trade Receivables 2515.1 3708.1 3271.0 3761.8 Cash and Bank Balances 279.6 161.5 168.7 89.9 Short-Term Loans and Advances 78.5 0.3 0.2 0.5 Other Current Assets 0.5 182.7 161.2 188.1 Current Assets 3450.4 4531.5 4173.2 4652.4 TOTAL 4371.1 6162.3 6582.4 7208.0
(Source: Company, HDFC sec)
One year Forward PE One year Price chart
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PTC INDIA LTD.
Fundamental Research Analyst: AtulKarwa ([email protected]) HDFC securities Limited, I Think Techno Campus, Building - B, "Alpha", Office Floor 8, Near Kanjurmarg Station, Opp. Crompton Greaves, Kanjurmarg (East), Mumbai 400 042 Phone: (022) 3075 3400 Fax: (022) 2496 5066 Website: www.hdfcsec.com Email: [email protected]. Compliance Officer: Binkle R. Oza Email: [email protected] Phone: (022) 3045 3600 __________________________________________________________________________________________________________________________________________________________________________________________________ Disclosure: I, (Atul Karwa, MMS), 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. HSL has no material adverse disciplinary history as on the date of publication of this report. 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. Research Analyst or his/her relative or HDFC Securities Ltd. does have any financial interest in the subject company. Also Research Analyst or his relative or HDFC Securities Ltd. or its Associate does not have beneficial ownership of 1% or more in the subject company at the end of the month immediately preceding the date of publication of the Research Report. Further Research Analyst or his relative or HDFC Securities Ltd. or its associate does not have any material conflict of interest. Any holding in stock – Yes HDFC Securities Limited (HSL) is a SEBI Registered Research Analyst having registration no. INH000002475. Disclaimer: This report has been prepared by HDFC Securities Ltd and is meant for sole use by the recipient and not for circulation. 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