COMPANYUPDATE

UltraTechCement

NEUTRAL

INDUSTRY
CEMENT
CMP(ason29Feb2016) Rs2,769
TargetPrice
Rs2,450
Nifty

6,987

Sensex

23,002

KEYSTOCKDATA
Bloomberg

UTCEMIN

No.ofShares(mn)

274

MCap(Rsbn)/($mn)

760/11,096

6mavgtradedvalue(Rsmn)

838

STOCKPERFORMANCE(%)

3M

Absolute(%)

(1.2)

Relative(%)

10.9

6M

12M

(4.2) (11.7)
8.3

10.0

SHAREHOLDINGPATTERN(%)
Promoters
FIs&LocalMFs

62.67
7.50

FIIs

18.10

Public&Others

11.73

Source:BSE

AnkurKulshrestha
ankur.kulshrestha@hdfcsec.com
+912261717346
AnujShah
anuj.shah@hdfcsec.com
+912261717321

Asweetdeal,butwithriders
UltraTech Cement (UTCEM) announced the
acquisitionofJPAs22.4mTPAcementcapacity,ata
headline valuation of US$ 108/t. Even adjusted for
undercommissioning capacity and excess captive
power,thevaluationisreasonable(US$125/t),asit
gives UTCEM access to new regions at near
replacementcost.Thetransactioncanfructifyin12
15 months, but hinges on the amendment to the
MMDRActtoenablethetransferofmines.

Keytransactionhighlights

Assets include 13.9 mTPA and 18.4 mTPA of

52Weekhigh/lowRs3,399/2,531

1MAR2016

operational clinker and cement capacity,

respectively. Further clinker/cement capacity of
2.3/4 mTPA is guided for commissioning in 1215
months. 325MW of power capacity (including
surpluspowerof120MW)isalsoincluded.

A host of exemptions available to JPA for its

plantsaddfurthervaluetothetransaction.Excise
exemptionsavailableatHPandRoorkeewillform
the bulk of NPV accruing from fiscal benefits.
However, most of them run out in 13 years and
delays in execution of the transaction will reduce
thepresentvalueofavailableexemptions.

UTCEMwillnotneedanycapitalissuance.Thenet
D/E is likely to be within the indicated comfort
zone (<0.75x net D/E, <3.5 debt/EBITDA) by the
time the transaction is consummated. Given the
imperatives around JPAs debt obligations to

banks, we expect benign funding terms for

UTCEM.Thesecanfurthersweetenthedeal.

Interestingly, UTCEM may not breach the anti

trust limits on completion of the transaction.
However, the widely anticipated Century
acquisitionmayrunintoCCIhurdles,especiallyin
the West where the combined entity will hold
~45%ofregionalcapacity.

Outlook and view: This is a sweet deal for

UltraTech, provided the MMDR amendment
comes through. However, valuations remain
expensive and vulnerable to demand/price
slumps. We await better entry points in UTCEM.
Meanwhile, Grasim is trading at ~50% holding
companydiscount,andseemsabetteralternative
for exposure to ~90 mTPA of cement capacity.
Maintain NEUTRAL with an unchanged TP of Rs
2,450(10.0xFY18EV/EBITDA,US$150/t).
FinancialSummary
(Rsmn)
FY14
FY15 FY16E FY17E FY18E
NetSales
200,779 226,565 239,344 278,543 323,592
EBITDA
38,179 41,950 45,228 55,126 67,861
PAT
21,444 20,147 19,479 26,743 36,251
DilutedEPS(Rs)
74.7
73.4
71.0
97.5 132.1
P/E(x)
34.3
36.5
37.7
27.5
20.3
EV/EBITDA(x)
20.3
19.5
17.7
13.9
10.9
RoE(%)
13.3
11.2
9.9
12.3
14.8
Source:Company,HDFCsecInstResearch
Note:Numbersdonotincludeimpactofacquisition

HDFCsecuritiesInstitutionalResearchisalsoavailableonBloombergHSLB<GO>&ThomsonReuters

UTCEMCEMENT :COMPANYUPDATE

TransactionvaluationatUS$
125(operationalcapacity)
appearsreasonable,asit
givesUTCEMaccesstoalarge
capacityatnearreplacement
costs

ThedealmaynotbeEPS
accretiveinawhile

TransactionHighlights
(Rsmn,unlessotherwisestated)
Totaltransactionconsideration(a)
Additionalconsiderationforundercommissioningcapacity(b)
Adjustmentforexcesspowercapacity(c)
Adjustedacquisitioncost(d=a+bc)
Totalcapacityacquired(e)
Totaloperationalcapacityacquired(f)
Impliedvaluation@fullcapacity(d/e)
Impliedvaluationforoperationalcapacity((ac)/f)

Value
165,000
4,700
8,160
161,540
22.4
18.4
106
125

Comments

120MW@US$1mn/MW

Netof4.0mTPAundercommissioning

Source:Company,HDFCsecInstResearch
INR:US$=68

ProformaFinancials
FY18E
Volumes(mTPA)
EBITDA/t(Rs)
EBITDA(Rsmn,includingotheroperationalincome)
Depreciation
Otherincome
Interestexpense
PBT
Tax
PAT
EPS
EPSAccretion/(Dilution)

UltraTech
56.7
1,155
67,861
14,930
6,847
5,672
54,106
17,855
36,251
132.1

AcquiredCapacities
12.6
800
10,048
6,596
14,355

MergedEntity
69.3
1,091
77,909
21,526
6,847
20,027
43,203
14,257
28,946
105.5
(20.2%)

Source:Company,HDFCsecInstResearch
Note:Acquiredcapacitiesassumptions(a)Capacityutilizations:South55%,Rest75%,(b)costofdebt9%,(c)Notaxlosscover
assumed

Page|2

UTCEMCEMENT :COMPANYUPDATE

Transactionincludes13.9
mTPAofoperationalclinker
capacityand18.4mTPAof
operationalcementcapacity

Furtherclinker/cement
capacityof2.3/4mTPAis
undercommissioning

Dealincludes325MWof
powercapacity(including
surpluspowerof120MW)

Basedonavailable
information,JPAwillretain
~3.3mTPAofclinkerand7.6
mTPAofgrinding/blending
capacityinthestandalone
entity

Another1mTPAofclinker
and4.2mTPAofgrinding
capacityareretainedin
subs/JVs

AssetsIncludedInTheTransaction
Location
Dalla
JPSuper*
Tanda
Sikanderabad
Bara*
Bela
Sidhi
SatnaCluster
Baga
Bagheri
Roorkee
HPCluster
Balaji
Shahabad
SouthCluster
Total

Plant
IC
C
GU
GU
GU
IC
IC
IC
GU
GU
IC
GU

Capacity(mtpa)
Clinker
2.1
2.3

2.1
3.1
9.6
3.3

3.3
3.3
3.3
16.2

Cement
0.5
1.0
1.0
4.0
2.6
2.3
11.4
1.7
2.0
1.1
4.8
5.0
1.2
6.2
22.4

Source:Company,HDFCsecInstResearch
*Undercommissioning
IC:Integratedcementandclinkerunit,C:Clinkeronly,GUGrindingunit

WhatRemainsInJaypeeAssociatesLtd
Location
RewaPlant
ChunarGrindingunit
ChurkGrindingUnit
SadvaKhurdblendingunit
Total(JPAStandalone)
JPBhilaiCement,Satna(SAILJV)
JPBhilaiCement,Bhilai(SAILJV)
NigrieGrindingunit(JPVL)
Total(JPA)

Plant
IC
G
G
G

C
G
G

Capacity(mtpa)
Clinker
3.3

3.3
1.0

4.3

Cement
3.0
2.5
1.5
0.6
7.6

2.2
2.0
11.8

Source:Company,HDFCsecInstResearch
Page|3

UTCEMCEMENT :COMPANYUPDATE

UTCEMmaynotbreachanti
trustlimitsoncethe
transactioniscompleted

Thewidelyanticipated
Centuryacquisitionmayrun
intoCCIhurdle,especiallyin
theWestwherethecombined
entitywillhold~45%capacity

Ahostofexemptions
availabletoJPAforitsplants,
addfurthervaluetothe
transactions

Exciseexemptionsavailable
atHPandRoorkeewillform
thechunkofNPVaccruing
fromfiscalbenefits

However,mostofthemrun
outin13yearsanddelaysin
executionofthetransaction
willreducethepresentvalue
ofavailableexemptions

UTCEMPositioningAfterTransaction
Current
capacity

Zone/Region
North
SatnaCluster
East
West
South
AllIndia
Overseas
Total

19
11.4
20.4
15.5
66.3
3.6
69.9

Jaypee

Post
transaction

4.8
11.4

6.2
22.4
22.4

Mix%

23.8
11.4
11.4
20.4
21.7
88.7
3.6
92.3

27%
13%
13%
23%
24%
100%

Century
capacity

4.2
3.6
4.7
12.5

UTCEM+
Totalregional
Jaypee+
capacity
Centuryas%
(FY16E)
ofregion
92.7
26%
54.9
28%
66.4
23%
55.8
45%
150.4
14%
420.2
24%

Source:Company,HDFCsecInstResearch
Includes1.6mTPABiharGUand0.6mTPABahrainGU,yettobecommissioned

KeyLevyExemptionsAvailableToJaypeeAssociates
Plant
Dalla
Dalla
Bahgeri
Sidhi
Tanda
Roorkee
Bagheri
Baga
Baga
Sikandrabad

Capacit
y
(mTPA)
0.5
0.5
0.5
2.3
1.0
1.1
2.0
1.7
1.7
1.0

Exemption
10yearrefundonVAT/CST
Exemptiononpaymentofroyaltyonlimestone
VATDeferment
Refundsof75%ofVAT/CSTdeposited
InterestfreeVATloan
Exciseexemption
Exciseexemption
Excisedutyexemption
VAT/CSTexemption
InterestfreeVATloans

Applicabletill

Remainderperiod
(months)*

Jan18
Jan18
Mar18
Feb19
Oct19
Dec19
Jan20
Feb20
Feb20
Apr26

7
7
9
20
28
30
31
33
33
108

Source:Company,HDFCsecInstResearch
*AssumingacquisitioniscompletedinJune2017

Page|4

UTCEMCEMENT :COMPANYUPDATE

Otherkeyhighlights
Strategicimperatives

Operationsand
profitability

Transaction
structuring

Accesstonewmarkets:Satnacluster,whichservicesEasternandCentralUP;Himachal
PradeshplantsforPunjab,HaryanaandUttarakhand;APplantforcoastalAndhraPradesh
access

Largecapacityadditioninoneshot.Thealternativesnowincludebiddingforlimestone
leases,tediouslandacquisitionandagestationperiodof67yearsbeforeplant
commissioning.

UTCEMhasbeenblockedoutoftheotheroptionsonthetable(Lafargeassets)duetoCCIs
conditions(players>5%inaregionnotallowedtobid).Currenttransactionallowslargely
complementaryadditions.

Valuationsarenearreplacementcost,evenafteradjustingfornonoperationalcapacityand
excesscaptivepower.

TheassetshaveEBITDA/t~500600asindicatedbythemanagementandarecurrently
operatingat6070%capacityutilisations.

Limestonereservesof40yearsormoreonanaverageinthemines.

UltraTechexpectssomeworkingcapitalandlogisticssynergiestoflowfromtheacquisition,
e.g.plantsinBela/SidhicanservicetheupcomingGUinPatliputrawithshorterleaddistance
comparedtotheoriginalplaninvolvingRavan/Hirmi(Raipur)clinkerplants.

JPAscoalassets,whichitrecentlywonintheauctions,havebeenleftoutofthetransaction
owingtohighercommittedcosts.

CurrentMoUindicatesassetsaletobethelikelymechanism.TosidesteptheMMDR
provisionontransferoflease,itwasexpectedthatJPAwoulddivestallnoncementassets
intoaseparateentityandtheacquirerwouldthenbuythelistedentity.

However,thecurrenttransactionleavesouttheRevaclinkerplant(andhencethelimestone
mines)andwillnecessitatecarveoutofoneormoreassets.UnlesstheMMDRActis
modified,thisisnotpossible.

Subsidiaryassets:ThetransactionalsoincludesJPVLs(aslistedsubofJPA)BaraGU(under
commissioning)andJCCLs(anonlistedsub)APandKarnatakaplants.

AspertheMOU,anadditionalamountofRs4.7bnshallbepayablebyUTCLtomeetthe
balancecapitalexpenditureonthesaidgrindingunitunderimplementation.

AccumulatedlossesinJCCL,whichmaybeuseduponamalgamation

Page|5

UTCEMCEMENT :COMPANYUPDATE

Funding

UTCEMwillnotneedanycapitalissuance.ThenetD/Eislikelytobewithintheindicated
comfortzone(<0.75xnetD/E,<3.5Debt/EBITDA)bythetimethetransactionis
consummated.

UTCEMwilltakeover~Rs60bnofdebtattributabletotheplants,whiletherestofthe
considerationwillbetowardsequity.

GiventheimperativesaroundJPAsdebtobligationstobanks,weexpectbenignfunding
termsforUTCEM.Thesewillsweetenthedealfurther.

Page|6

UTCEMCEMENT :COMPANYUPDATE

Valuationscontinuetoremain
expensive,Grasimpreferable
vehicleofexposure

UTCEMisexpectedtobethe
keybeneficiaryofaresurgent
cementdemandandwe
expectsharpvolumegrowth
hereon

Changestoestimatesreflect
theimpactofearlierdeal(5.1
mTPA)beingcalledoff.

PeerValuations
Company
UTCEMCement
ShreeCement1
GrasimIndustries2
AmbujaCement3
ACCLtd3
RamcoCements
BirlaCorp
OrientCement
SanghiIndustries

MCap
(Rsbn)
762
349
305
289
225
86
25
28
11

CMP
(Rs)
2,769
10,004
3,328
188
1,194
360
322
138
49

TP
(Rs)
2,450
9,191
4,625
190
1,165
352
550
180
75

Reco.
NEU
SELL
BUY
SELL
SELL
NEU
BUY
BUY
BUY

EV/EBITDA(x)
FY17E FY18E
13.9
10.9
12.2
9.3
4.8
4.6
17.3
9.4
14.9
11.2
9.6
8.3
5.9
3.4
9.6
6.1
4.2
2.3

P/E(x)
FY17E FY18E
27.5
20.3
25.5
18.6
10.1
7.9
20.6
14.8
25.3
15.1
16.9
13.5
7.9
4.8
20.2
10.0
5.8
3.5

EV/T(US$)
FY17E FY18E
157 152
190 175
79 76
118 111
96 91
111 104
38 35
73 69
51 39

Note:PricesasofFeb29,2016,close.US$:INR=68.0
1
PowerdivisionEVat5xFY16EEBITDA;2OtherbusinessEV:Rs75bn;3DecemberYE

KeyAssumptions
YearEndingMarch
Clinkerutilisation
Cementvolumes
Realisations
P&Fcost/t
Rawmaterialcost/t
Freightcost/t
EBITDA/t

FY14
80%
41.5
4,712
1,005
777
988
872

FY15
88%
44.9
4,918
1,059
818
1,146
873

FY16E
78%
47.2
4,944
989
773
1,192
914

FY17E
85%
52.8
5,155
997
805
1,222
1,002

FY18E
81%
56.7
5,577
1,071
857
1,317
1,155

Source:Company,HDFCsecInstResearch

KeyAssumptions

Volumes(mT)
Realisations(Rs/T)
Revenues(Rsmn)
EBITDA(Rsmn)
PAT(Rsmn)

FY16E
47.2
5,160
240,507
45,784
19,851

Old
FY17E
56.6
5,320
284,795
51,883
22,381

FY18E
65.1
5,699
355,131
79,253
39,573

FY16E
47.2
4,944
239,344
45,228
19,479

New
FY17E
52.8
5,155
278,543
55,126
26,743

FY18E
56.7
5,577
323,592
67,861
36,251

FY16E
(0.1)
(4.2)
(0.5)
(1.2)
(1.9)

%Change
FY17E
(6.8)
(3.1)
(2.2)
6.3
19.5

FY18E
(12.9)
(2.1)
(8.9)
(14.4)
(8.4)

Source:Company,HDFCsecInstResearch

Page|7

UTCEMCEMENT :COMPANYUPDATE

IncomeStatement
YearendingMarch(Rsmn)
Netsales
Growth%

BalanceSheet
FY14

FY15

FY16E

FY17E

FY18E

2,00,779 2,26,565 2,39,344 2,78,543 3,23,592

0.3

12.8

5.6

16.4

16.2

YearendingMarch(Rsmn)

FY14

FY15

FY16E

FY17E

FY18E

2,742

2,744

2,744

2,744

2,744

SOURCESOFFUNDS
ShareCapital

MaterialExpenses

96,076

83,030 1,03,356 1,16,950 1,33,195

Reserves

1,68,232 1,85,832 2,02,424 2,26,280 2,59,644

EmployeeExpenses

10,146

12,183

14,582

17,498

19,248

TotalShareholdersFunds

1,70,974 1,88,576 2,05,168 2,29,023 2,62,388

SG&AExpenses

54,181

67,477

71,336

81,077

92,964

LongtermDebt

44,935

46,138

34,742

54,300

33,979

4,216

24,722

6,989

10,133

12,667

ShorttermDebt

7,057

28,003

44,711

29,711

29,711

36,160

39,153

43,082

52,885

65,519

TotalDebt

51,992

74,141

79,453

84,011

63,690

18.0

17.3

18.0

19.0

20.2

DeferredTaxes

22,958

27,920

27,920

27,920

27,920

2,019

2,797

2,146

2,242

2,343

1,402

1,647

1,647

1,647

1,647

38,179

41,950

45,228

55,126

67,861

19.0

18.5

18.9

19.8

(18.4)

9.9

7.8

Depreciation

10,523

11,331

EBIT
OtherIncome(includingEO
items)
Interest

27,656

Otheroperatingexpenses
Operatingprofits
OperatingProfitMargin(%)
Otheroperatingincome
EBITDA

LongtermProvisions&Others
TOTALSOURCESOFFUNDS

2,47,326 2,92,284 3,14,188 3,42,602 3,55,645

21.0

APPLICATIONOFFUNDS

21.9

23.1

NetBlock

1,58,718 2,09,475 2,23,249 2,18,935 2,24,005

13,225

14,315

14,930

CWIP

30,619

32,003

40,812

52,932

3,290

3,718

3,736

5,380

6,847

3,192

5,475

6,666

6,277

5,672

PBT

27,755

28,862

29,073

39,914

54,106

Tax

6,310

8,715

9,594

13,172

17,855

RPAT

21,444

20,147

19,479

26,743

36,251

APAT

21,444

20,147

19,479

26,743

36,251

(19.2)

(6.1)

(3.3)

37.3

35.6

74.7

73.4

71.0

97.5

132.1

EPSGrowth(%)
(22.8)
(1.7)
(3.3)
37.3
Source:Company,HDFCsecInstResearch,Standalonenumbersdisplayed

35.6

EBITDA%
EBITDAGrowth%

APATGrowth(%)
AdjustedEPS(Rs.)

28,258

28,562

27,874

27,874

27,874

Investments

5,508

7,297

7,297

7,297

7,297

LTLoansandAdvances

3,931

8,082

8,082

8,082

8,082

TotalNoncurrentAssets

1,96,416 2,53,416 2,66,502 2,62,188 2,67,258

Inventories

23,684

27,514

25,674

36,225

35,684

Debtors

12,810

12,032

16,126

16,644

21,426

OtherCurrentAssets

11,788

13,415

12,209

12,209

12,209

Cash&Equivalents

51,183

46,929

50,635

83,864

87,302

TotalCurrentAssets

99,465

99,890 1,04,644 1,48,941 1,56,622

Creditors

24,242

27,390

25,798

36,101

35,809

OtherCurrentLiabilities&Provns

25,969

32,474

32,474

32,474

32,474

TotalCurrentLiabilities

50,211

59,864

58,272

68,575

68,283

NetCurrentAssets

49,254

40,026

46,372

80,367

88,339

TOTALAPPLICATIONOFFUNDS 2,47,326 2,92,284 3,14,188 3,42,602 3,55,645

Source:Company,HDFCsecInstResearch

Page|8

UTCEMCEMENT :COMPANYUPDATE

CashFlow
YearendingMarch(Rsmn)
ReportedPBT
Nonoperating&EOitems
Interestexpenses

KeyRatios
FY14

FY15

FY16E

FY17E

FY18E

27,755

28,862

29,073

39,914

54,106

PROFITABILITY(%)

609

1,244

(3,736)

(5,380)

(6,847)

EBITDAMargin

FY14

FY15

FY16E

FY17E

FY18E

19.0

18.5

18.9

19.8

21.0

3,192

5,475

6,666

6,277

5,672

APATMargin

10.7

8.9

8.1

9.6

11.2

10,523

11,331

13,225

14,315

14,930

RoE

13.3

11.2

9.9

12.3

14.8

(372)

1,781

(5,112)

500

(4,534)

CoreRoCE

13.9

12.1

11.4

14.1

17.4

Taxpaid

(6,310)

(8,715)

(9,594)

RoCE

11.7

10.6

10.1

11.8

13.8

OPERATINGCASHFLOW(a)

35,396

39,977

30,523

Depreciation
WorkingCapitalChange

Capex

(21,552) (68,085) (26,312)

Freecashflow(FCF)

13,843 (28,109)

Investments

(1,305)
3,290

NonoperatingIncome
INVESTINGCASHFLOW(b)

(13,172) (17,855)
42,455

45,472

(10,000) (20,000)

4,211

32,455

25,472

(1,789)

3,718

3,736

5,380

6,847

(19,567) (66,156) (22,575)

(4,620) (13,153)

TaxRate(%)

30.2

33.0

33.0

33.0

AssetTurnover(x)

0.9

0.8

0.8

0.9

1.0

Inventory(days)

43

41

41

41

41

Debtors(days)

21

20

21

21

21

Payables(days)

42

42

41

41

41

CashConversionCycle(days)

22

20

21

21

21

1.5

1.6

1.8

1.5

1.1

0.14

0.14

(0.09)

9.7

6.3

5.4

7.4

10.5

(2,094)

22,149

5,312

Interestexpenses

(3,192)

(5,475)

(6,666)

(6,277)

(5,672)

Debt/EBITDA(x)

(14,282) (82,831) (21,221)

(2,901)

12,840

NetD/E

ShareCapitalIssuance

22.7

DebtIssuance/(Repaid)
FCFE

4,558 (20,321)

EFFICIENCY

InterestCoverage

Dividend

(2,887)

(2,887)

(2,887)

(2,887)

(2,887)

PERSHAREDATA

FINANCINGCASHFLOW(c)

(8,172)

13,787

(4,241)

(4,606) (28,881)

EPS(Rs/sh)

74.7

73.4

71.0

97.5

132.1

NETCASHFLOW(a+b+c)

7,656 (12,392)

3,706

33,229

3,439

CEPS(Rs/sh)

116.5

114.7

119.2

149.6

186.5

EOItems/Others

4,784

(8,138)

9.0

9.0

9.0

9.0

9.0

ClosingCash&Equivalents
51,183
Source:Company,HDFCsecInstResearch

46,929

50,635

83,864

87,302

623.2

687.3

747.8

834.8

956.4

DPS(Rs/sh)
BV(Rs/sh)

VALUATION
P/E

33.5

35.6

36.9

26.9

19.8

4.2

3.8

3.5

3.1

2.7

EV/EBITDA

19.9

19.0

17.3

13.6

10.6

OCF/EV(%)

4.9%

5.5%

4.1%

5.7%

6.3%

FCF/EV(%)

1.9%

(3.9%)

0.6%

4.3%

3.5%

(0.5%)

(16.2%)

(3.3%)

3.2%

4.5%

DividendYield(%)
0.3
Source:Company,HDFCsecInstResearch

0.3

0.3

0.3

0.3

P/BV

FCFE/MarketCap(%)

Page|9

UTCEMCEMENT :COMPANYUPDATE

RECOMMENDATIONHISTORY

3,100
2,900
2,700
2,500

Oct15

Sep15

Aug15

Jul15

Jun15

May15

Apr15

Mar15

2,300

CMP
2,710
3,354
2,899
2,844
2,733
2,618
2,769

Reco
NEU
NEU
NEU
NEU
SELL
NEU
NEU

Target
2,733
3,046
3,015
3,015
2,450
2,450
2,450

RatingDefinitions
Feb16

3,300

Date
27Apr15
21Jul15
19Oct15
3Dec15
7Jan16
21Jan16
1Mar16

Jan16

3,500

Dec15

TP

Nov15

Ultratech

BUY
: Wherethestockisexpectedtodelivermorethan10%returnsoverthenext12monthperiod
NEUTRAL : Wherethestockisexpectedtodeliver()10%to10%returnsoverthenext12monthperiod
SELL
: Wherethestockisexpectedtodeliverlessthan()10%returnsoverthenext12monthperiod

Page|10

UTCEMCEMENT :COMPANYUPDATE

Disclosure:
We,AnkurKulshrestha,PGDBM&AnujShah,MScauthorsandthenamessubscribedtothisreport,herebycertifythatalloftheviewsexpressedinthisresearchreportaccuratelyreflectour
viewsaboutthesubjectissuer(s)orsecurities.Wealsocertifythatnopartofourcompensationwas,is,orwillbedirectlyorindirectlyrelatedtothespecificrecommendation(s)orview(s)in
thisreport.
ResearchAnalystorhis/herrelativeorHDFCSecuritiesLtd.doesnothaveanyfinancialinterestinthesubjectcompany.AlsoResearchAnalystorhisrelativeorHDFCSecuritiesLtd.orits
Associatemay havebeneficialownership of 1%ormorein thesubjectcompanyattheendofthemonthimmediatelyprecedingthe dateofpublicationoftheResearchReport.Further
ResearchAnalystorhisrelativeorHDFCSecuritiesLtd.oritsassociatedoesnothaveanymaterialconflictofinterest.
AnyholdinginstockNo

Disclaimer:
ThisreporthasbeenpreparedbyHDFCSecuritiesLtdandismeantforsoleusebytherecipientandnotforcirculation.Theinformationandopinionscontainedhereinhavebeencompiledor
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HDFCSecuritiesoritsanalystsdidnotreceiveanycompensationorotherbenefitsfromthecompaniesmentionedinthereportorthirdpartyinconnectionwithpreparationoftheresearch
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Page|11