Result Update

June 3, 2013
Rating matrix
Rating Target Target Period Potential Upside : : : : Hold | 28 12 months 3%

Jyoti Structures (JYOSTR)

| 27
WHATS CHANGED
FY14E 3,121.3 313.7 80.9 9.8 FY15E 3,539.9 335.4 94.9 11.5

Key Financials
| Crore Net Sales EBITDA Net Profit EPS (|) FY12 2,592 280.0 85.5 10.4 FY13E 2,805.9 282.9 65.7 8.0

PRICE TARGET........................................................................... Changed from | 45 to | 28 EPS (FY14E)........................................................................................................Unchanged EPS (FY15E)..........................................................................................Introduced at | 11.5 RATING...............................................................................................................Unchanged

Valuation summary
P/E Target P/E EV / EBITDA P/BV RoNW RoCE FY12 2.6 4.7 2.8 0.3 12.8 20.1 FY13E 3.4 6.2 3.4 0.3 9.1 16.8 FY14E 2.7 5.0 3.3 0.3 10.2 17.3 FY15E 2.3 4.3 3.5 0.3 10.8 16.6

When interest burden outweighs all

Jyoti Structures (JSL) put up an improved business performance scorecard in Q4FY13, buoyed by superior execution and well maintained margins, leading to operational profit of | 99.1 crore and EBITDA margins of 10.6%. However, of this | 99.1 crore, only 22.4% were converted to PAT, as the heavy burden of finance cost ate away 61.7%. The debt has mounted from | 613 crore at FY12 to | 954 crore at FY13 end. For the quarter, the topline grew a stellar 27% to | 935 crore yet the PAT came in at | 22.7 crore, primarily pulled down by high interest burden. Order backlog, execution and bidding pipeline remain healthy The order backlog stood at | 4800 crore, with order inflows touching | 1100 crore for the quarter and | 3246 crore for the full year. Of the total order book, 27% comes from PGCIL orders, 48% by SEB orders while the balance came from international orders. For FY14E, the management expects the topline to grow 10-15%, with EBITDA margins in and around 10%, given rising share of international orders. Over the next two quarters, the company has a bidding pipeline of | 6,000-7000 crore, with half the opportunity rising in the domestic market (primarily from SEBs from Andhra Pradesh, Maharashtra, PGCIL) and the rest coming from international geographies like Ghana, Ethiopia, Nepal and Tanzania. but working capital issues overshadows all others JSL continues to face working capital issue, with the huge interest burden suppressing profitability. On the subsidiary performance front, Gulf Jyoti had a topline of 287 million dirham and a bottomline of 12 million dirham. Jyoti Africa was able to break even, at a topline of 170 million ZAR. However, Jyoti America posted a loss of $8 million, on revenues of $14 million, being the companys first year of operation. The management believes this loss will be in line with expectation and FY14E will be the break even year. Deteriorating balance sheet quality to be key concern We believe despite a healthy order backlog, reasonable margin profile and robust execution, unrelenting high levels of working capital debt would mar profit. Though valuations at these levels look inexpensive, a re rating would only be due on significant improvement of the working capital cycle. We value the stock at 3.5x FY15E EV/EBITDA at | 28/share.
Exhibit 1: Financial Performance
(| Crore) Total Operating Income EBITDA EBITDA Margin (%) Interest Reported PAT Q4FY13 938.5 99.1 10.6 61.4 22.2 Q4FY13E 807.2 83.1 10.3 40.7 25.9 Q4FY12 735.9 82.5 11.2 40.5 31.7 Q3FY13 619.7 62.6 10.1 38.3 13.4 QoQ (Chg %) 51.4 58.3 46 bps 60.4 65.6 YoY (Chg %) 27.5 20.0 -66 bps 51.7 -29.8

Stock data
Market Capitalization Total Debt (FY13E) Cash and Investments (FY13E) EV 52 week H/L Equity capital Face value DII Holding (%) FII Holding (%) | 222 Crore | 814.4 Crore | 79.5 Crore | 956.8 Crore 51 / 27 | 16.4 Crore |2 20.7 8.6

Price movement
6,500 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 Price (R.H.S) Nifty (L.H.S) 55 45 40 35 30 25 20 (Stock Movement, |) 50

(Index Movement)

Jun-12 Sep-12 Dec-12 Mar-13 May-13

Analysts name
Chirag J Shah shah.chirag@icicisecurities.com Sonabh Bubna sonabh.bubna@icicisecurities.com

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Exhibit 2: Assumption
(in %) Order Inflow Growth Order Book Growth Revenue Growth EBITDA Margin PAT Growth FY12 -9.6 -2.6 8.9 10.8 -20.0 FY13E 31.7 10.1 8.2 10.1 -23.2 FY14E 13.4 12.1 11.2 10.0 23.2

FY15E
5.4 6.7 13.4 9.5 17.3

Source: Company, ICICIdirect.com Research

Exhibit 3: Trend of order backlog for standalone business

6000 5000
The order book is at | 4800 crore, implying 10.0% YoY growth, tall enough to provide for revenue visibility for 1.7 years (on a TTM basis)

4000 3000 2000 1000 0

4150 4106 4250 4100 3869 4030

4478 4461 4375 4299 4360 4636

4845

4605 4800

(| crore)

Q2FY10

Q3FY10

Q4FY10

Q1FY11

Q2FY11

Q3FY11

Q4FY11

Q1FY12

Q2FY12

Q3FY12

Q4FY12

Q1FY13

Q2FY13

Q3FY13

Source: Company, ICICIdirect.com Research

Exhibit 4: Order inflows: oscillating between good and poor performance

1200 1000 .
JSL secured orders worth | 1100 crore in Q4FY13, implying an order replacement ratio of 1.2x. Most new orders came in from international markets, with a poor run at the most lucrative customer, PGCIL

1100 848 570 322 407 681 665 534 418 688 621 550 510 930 797 801

1100

800 600 400 200 0 Q3FY09 Q4FY09 Q1FY10 Q2FY10

(| crore)

433

Q3FY10

Q4FY10

Q1FY11

Q2FY11

Q3FY11

Q4FY11

Q1FY12

Q2FY12

Q3FY12

Q4FY12

Q1FY13

Q2FY13

Q3FY13

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 2

Q4FY13

Q4FY13

Exhibit 5: Break-up of order backlog in terms of business vertical

5500 5000 595 425 1252 848 817 872 4000 3500 3000 3230 2500 2000 1500 1000 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 1337 788 1104 493 4500 205615 . 727

Exhibit 6: Break-up of order backlog in terms of client exposure

25

27

(| crore)

848

963

817

872

834

3280

645 2907 2627 3120

3090

2766

2625

2665

2616

2550

576

896

1211

48 PGCIL SEB's Others

Transmission

Substation

Rural Electrification

Source: Company, ICICIdirect.com Research

Source: Company, ICICIdirect.com Research

Exhibit 7: Book to bill ratio provides high cushion to revenue visibility

2.5
The transmission order backlog comprises 65% of the overall order backlog followed by the substation and rural electrification segments at 12% and 23%, respectively. The share of PGCILs order has fallen sequentially from 36% in Q1FY13 to 29% in Q2FY13 and 27% in Q4FY13. Share of SEBs in the backlog stands at half of the total pie

2.2 1.9 1.6 1.3 1.0 Q3FY09

2.1 2.1

2.2

2.1 2.1 2.1

2.0 2.0

1.9 1.9 1.8

(x)

1.7

1.7 1.7

1.8

1.9

1.8

1.7

Q4FY09

Q1FY10

Q2FY10

Q3FY10

Q4FY10

Q1FY11

Q2FY11

Q3FY11

Q4FY11

Q1FY12

Q2FY12

Q3FY12

Q4FY12

Q1FY13

Q2FY13

Q3FY13

Source: Company, ICICIdirect.com Research

Key conference call highlights: The management has highlighted bidding opportunities to the tune of ~| 6,000-7000 crore. Half the opportunities arise from SEBs from Maharashtra, West Bengal and PGCIL among others while the remaining arises from international geographies, like Ghana, Nepal and Tanzania among others Total debt as of FY13 stood at | 954 crore, up from | 783 crore at H1FY13 end with the cost of debt remaining at ~12% Debtor days stood at 230 days, same as in the last quarter The management expects to keep double digit margins for FY14E The management is focusing on cutting down the working capital debt significantly in the current fiscal (FY14E) We have built in topline growth of 11.2% for FY14E and 13.4% for FY15E, with operating margins in the range of 10% for FY14E and 9.5% for FY15E. With the increasing tilt of the order book towards the international side, we believe a margin contract, going ahead, will be on the cards

ICICI Securities Ltd | Retail Equity Research

Page 3

Q4FY13

Exhibit 8: Trend in revenue growth

1000 900
Net sales at | 935.5 crore, up 27.7% YoY, were above our expectations. For FY13 overall sales, | 2805.9 crore or 78% came from the domestic segment while exports made up 22%. Transmission revenues made up 79%, substation 10% while rural electrification made up 11% of the total revenues, respectively

800 700 600 500 400 300 200 Q3FY09 Q4FY09 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13

35 30 25 20 15 10 5 0 -5 -10

(| crore)

Revenue

Growth (%)

Source: Company, ICICIdirect.com Research

Exhibit 9: EBITDA margins trend

14
EBITDA margins at 10.6% were above our estimates of 10.3%. Going ahead, we expect JSL to report margins in

13 12 . (%) 11 10 9 8 Q3FY09 Q4FY09 Q1FY10 Q2FY10 Q3FY10 Q4FY10 11.3 10.4 11.0 11.2 11.0

12.8 11.3 11.6 11.4 11.6 11.0 10.8 10.1

the range of 9.5-10.0% over FY14E-15E

11.2 9.8 9.7 10.1

Q1FY11

Q2FY11

Q3FY11

Q4FY11

Q1FY12

Q2FY12

Q3FY12

Q4FY12

Q1FY13

Q2FY13

Exhibit 10: PAT build-up for Q4FY13 (as percentage of net sales)
100 80 60 40 20 0 Operating Profit (EBITDA) Other Income Raw Material Expenses Employee Expenses Total Operating Income Depreciation Sub Contracting Charges Other Operating Expenses Total Tax Interest PAT 100.0 (%) 71.5

6.9 9.0 2.0 10.6

0.3

6.5

0.7

1.2

2.4

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 4

Q3FY13

(%)

Valuations & Outlook

We believe despite a healthy order backlog, reasonable margin profile and robust execution, unrelenting high levels of working capital debt would mar profit. Though valuations at these levels look inexpensive, a re rating would only be due on significant restructuring of the working capital cycle. We have valued the stock at 3.5 FY14E EV/EBITDA to capture the balance sheet risk and arrive at a fair value of | 28/share.
Exhibit 11: Key problem area for JSL as interest cost eating heavily into EBITDA: Interest/EBITDA matrix
70 60 50 (%) 40 30 20 10 FY12 FY13E FY14E FY15E 50.4 59.6 55.8 51.8

Source: Company, ICICIdirect.com Research

Exhibit 12: Twelve month forward P/E

22 20 18 16 14 (X) 12 10 8 6 4 2 0 Oct-08 Oct-09 Oct-10 Oct-11 Jan-08 Apr-08 Jan-09 Apr-09 Jan-10 Apr-10 Jan-11 Apr-11 Jan-12 Apr-12 Oct-12 Jan-13 Apr-13 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12

12 Month Forward P/E

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 5

Exhibit 13: Relative performance of JSL vis--vis broader markets and peers, normalised to 100
The Peer index is an equal weighted index of stock performance of Kalpataru Power and KEC International, normalised to 100

120 100 80 60 40 20 0 Nov-10 Nov-11 Nov-12 Jan-11 Jan-12 Jan-13 Mar-12 Mar-11 Mar-13 Jul-11 Jul-12 Sep-12 May-11 May-12 May-13 Sep-11

JYS IN

Peer Index

SENSEX

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 6

Financial summary
Profit and loss statement
(Year-end March) Total operating Income Growth (%) Raw Material Expenses Employee Expenses Sub Contracting Charges Other Operating Expenses Other expenses Total Operating Expenditure EBITDA Growth (%) Depreciation Interest Other Income PBT Others Total Tax PAT Growth (%) EPS (|) FY12 2,592.4 8.9 1,367.1 79.5 592.3 273.6 0.0 2,321.4 280.0 -0.4 21.4 141.0 10.9 128.5 0.0 43.0 85.5 -20.0 10.4 FY13E 2,805.9 8.2 1,730.4 79.5 446.0 261.6 0.0 2,525.7 282.9 1.1 24.4 168.7 8.9 98.7 0.0 33.0 65.7 -23.2 8.0 FY14E 3,121.3 11.2 1,697.0 84.9 646.8 351.0 0.0 2,790.9 313.7 10.9 27.3 175.0 9.5 120.8 0.0 39.9 80.9 23.2 9.8 (| Crore) FY15E 3,539.9 13.4 1,944.0 129.1 732.7 398.7 0.0 3,217.9 335.4 6.9 29.6 173.6 9.5 141.7 0.0 46.8 94.9 17.3 11.5

Cash flow statement

(Year-end March) Profit after Tax Add: Depreciation (Inc)/dec in Current Assets Inc/(dec) in CL and Provisions Others CF from operating activities (Inc)/dec in Investments (Inc)/dec in Fixed Assets Others CF from investing activities Issue/(Buy back) of Equity Inc/(dec) in loan funds Dividend paid & dividend tax Inc/(dec) in Sec. premium Others CF from financing activities Net Cash flow Opening Cash Closing Cash FY12 85.5 21.4 -577.6 390.3 3.3 -80.4 -16.5 -47.9 0.0 -53.1 0.0 164.7 -10.6 0.0 0.0 149.3 15.8 29.9 45.7 FY13E 65.7 24.4 -299.7 85.2 3.0 -124.4 -5.0 -39.5 0.0 -30.3 0.0 200.0 -11.5 0.0 7.6 188.5 33.8 45.7 79.5 FY14E 80.9 27.3 -242.3 110.2 5.0 -23.8 0.0 -40.0 0.0 -54.2 0.0 50.0 -11.5 0.0 0.0 38.5 -39.5 79.5 40.0 (| Crore) FY15E 94.9 29.6 -420.6 195.7 5.0 -100.4 0.0 -25.0 0.0 -10.8 0.0 100.0 -11.5 0.0 0.0 88.5 -22.7 40.0 17.2

Source: Company, ICICIdirect.com Research

Source: Company, ICICIdirect.com Research

Balance sheet
(Year-end March) Liabilities Equity Capital Reserve and Surplus Total Shareholders funds Total Debt Deferred Tax Liability Minority Interest / Others Total Liabilities Assets Gross Block Less: Acc Depreciation Net Block Capital WIP Total Fixed Assets Investments Inventory Debtors Loans and Advances Other Current Assets Cash Total Current Assets Creditors Provisions Total Current Liabilities Net Current Assets Others Assets Application of Funds FY12 16.4 654.0 670.4 614.4 12.8 0.0 1,404.6 FY13E 16.4 708.1 724.6 814.4 12.8 0.0 1,658.7 FY14E 16.4 777.5 794.0 864.4 12.8 0.0 1,778.1 (| Crore) FY15E 16.4 860.9 877.4 964.4 12.8 0.0 1,961.5

Key ratios
(Year-end March) Per share data (|) EPS Cash EPS BV DPS Cash Per Share Operating Ratios (%) EBITDA Margin PBT / Total Operating income PAT Margin Inventory days Debtor days Creditor days Return Ratios (%) RoE RoCE RoIC Valuation Ratios (x) P/E EV / EBITDA EV / Net Sales Market Cap / Sales Price to Book Value Solvency Ratios Debt/EBITDA Debt / Equity Current Ratio Quick Ratio FY12 10.4 13.0 81.5 1.1 5.6 10.8 5.0 3.3 34.3 219.4 79.3 12.8 20.1 13.3 2.6 2.8 0.3 0.1 0.3 2.2 0.9 2.0 1.9 FY13E 8.0 11.0 88.1 1.2 9.7 10.1 3.5 2.3 35.0 235.0 79.0 9.1 16.8 11.2 3.4 3.4 0.3 0.1 0.3 2.9 1.1 2.1 2.1 FY14E 9.8 13.2 96.6 1.2 4.9 10.0 3.9 2.6 37.0 235.0 82.0 10.2 17.3 11.5 2.7 3.3 0.3 0.1 0.3 2.8 1.1 2.1 2.1 FY15E 11.5 15.2 106.7 1.2 2.1 9.5 4.0 2.7 40.0 240.0 80.0 10.8 16.6 10.8 2.3 3.5 0.3 0.1 0.3 2.9 1.1 2.1 2.1

299.5 101.6 197.9 0.6 198.5 86.6 265.7 1,558.1 228.0 0.2 45.7 2,097.7 563.0 59.7 1,053.6 1,044.2 0.0 1,404.6

338.9 124.3 214.7 0.6 215.3 91.6 271.6 1,803.9 276.3 -0.2 79.5 2,431.2 606.4 66.7 1,138.8 1,292.4 0.0 1,658.8

378.9 149.9 229.1 0.6 229.7 91.6 361.2 2,009.6 223.1 0.2 40.0 2,634.0 701.2 77.1 1,249.1 1,384.9 0.0 1,778.2

403.9 177.8 226.1 0.6 226.8 91.6 414.7 2,327.6 272.5 -0.2 17.2 3,031.9 775.9 77.6 1,444.7 1,587.2 0.0 1,961.6

Source: Company, ICICIdirect.com Research

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 7

Company Description
Incorporated in 1974, Jyoti Structures (JSL) is an EPC player operating in the power transmission sector. The company has capabilities to undertake transmission line, substation and distribution projects. Since inception, JSL has manufactured over 15,000 circuit km of high voltage transmission lines and over 550,000 MT of transmission line towers. As on Q3FY13, the companys order book stood at | 4,600 crore. Outside India, JSL has a subsidiary, Jyoti Structures Africa (Pty) Ltd and a JV, Gulf Jyoti International LLC, which have been formed to tap power sector opportunities in Africa and the Gulf region, respectively. The company is headquartered in Mumbai. JSL is lately facing issues of stretched working capital, leading high levels of working capital debt and, consequently, higher interest burden.
Exhibit 14: Recommendation History
60 50 40 30 20 10 0 Nov-12 Oct-12 Sep-12 Jan-13 Mar-13 Feb-13 May-13 Jul-12 Dec-12 Aug-12 Jun-12 Apr-13

Jyoti Structures

Target Price

Source: Bloomberg, ICICIdirect.com Research

Exhibit 15: Recent Releases

Date 31-Mar-11 8-Apr-11 31-May-11 5-Jul-11 28-Jul-11 5-Oct-11 28-Oct-11 6-Jan-12 31-Jan-12 4-Apr-12 28-May-12 5-Jul-12 2-Aug-12 1-Sep-12 8-Jan-13 4-Feb-13 Event Initiating Coverage Q4FY11 Preview Q4FY11 Result Update Q1FY12 Preview Q1FY12 Result Update Q2FY12 Preview Q2FY12 Result Update Q3FY12 Preview Q3FY12 Result Update Q4FY12 Preview Q4FY12 Result Update Q1FY13 Preview Q1FY13 Result Update Q2FY13 Result Update Q3FY13 Preview Q3FY13 Result Update CMP 82 90 86 85 87 63 61 43 46 43 40 43 38 Target Price 89 89 98 98 98 98 85 85 60 60 55 55 48 Rating BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY

45 46 41

48 48 45

Hold

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 8

ICICIdirect.com Research coverage universe (Capital Goods)

CMP Sector / Company Thermax (THERMA) BGR Energy (BGRENE) Sterlite Technologies (STEOPT) KEC International (KECIN) Jyoti Structures (JYOSTR) Kalpataru Power (KALPOW) Larsen & Toubro (LARTOU) BHEL (|) 580 174 22 39 27 73 1392 200 TP(|) Rating 536 Hold 211 28 48 28 94 1604 193 Hold Hold Hold Hold Buy Hold Hold M Cap (| Cr) 6902.0 1252.8 838.5 971.5 216.0 2589.7 84772.8 48839.9 EPS (|) P/E (x) P/BV (x) RoA (%) RoE (%) FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E FY12 FY13E FY14E 29.8 28.6 31.9 19.5 20.3 18.2 3.7 3.3 3.0 23.9 20.9 20.7 19.1 16.3 16.2 21.7 1.1 2.6 8.0 8.9 79.5 28.8 20.4 1.8 4.2 9.8 10.8 83.2 25.2 23.5 8.0 8.5 9.2 2.7 6.8 7.9 7.4 6.5 2.3 5.9 9.4 1.1 0.8 1.0 0.3 0.6 3.3 2.1 1.1 0.8 1.0 0.3 0.6 3.0 1.8 1.0 11.1 0.8 7.0 0.9 11.2 0.3 16.8 0.6 11.2 2.6 14.9 1.6 35.7 9.9 7.9 12.0 17.3 11.4 14.8 26.5 11.4 12.3 8.3 13.1 16.6 11.8 3.7 5.6 9.1 7.4 11.1 5.5 8.5 10.2 8.3 15.8 20.7 11.8 6.1 11.1 10.8 8.8 15.6 15.5 2.0 19.3 12.2 10.5 6.0 15.0 11.5 12.3 21.1 3.4 8.2 6.9

92.7 19.6 18.8 16.8

15.4 17.0 20.2 27.7

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 9

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;

Pankaj Pandey

Head Research ICICIdirect.com Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No. 7, MIDC, Andheri (East) Mumbai 400 093 research@icicidirect.com

pankaj.pandey@icicisecurities.com

ANALYST CERTIFICATION
We /I, Chirag J Shah PGDBM Sonabh Bubna 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 personal views about any and all of 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. Analysts aren't registered as research analysts by FINRA and might not be an associated person of the ICICI Securities Inc.

Disclosures:
ICICI Securities Limited (ICICI Securities) and its affiliates are a full-service, integrated investment banking, investment management and brokerage and financing group. We along with affiliates are leading underwriter of securities and participate in virtually all securities trading markets in India. We and our affiliates have investment banking and other business relationship with a significant percentage of companies covered by our Investment Research Department. Our research professionals provide important input into our investment banking and other business selection processes. ICICI Securities generally prohibits its analysts, persons reporting to analysts and their dependent family members 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 reasonable basis, ICICI Securities, its subsidiaries and associated companies, their directors and employees (ICICI Securities and affiliates) are 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 is 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 may 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 of investment may vary because of changes in interest rates, foreign exchange rates or any other reason. ICICI Securities and affiliates accept no liabilities 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 and its affiliates might have managed or co-managed a public offering for the subject company in the preceding twelve months. ICICI Securities and affiliates might have received 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 public offerings, corporate finance, investment banking or other advisory services in a merger or specific transaction. It is confirmed that Chirag J Shah PGDBM Sonabh Bubna MBA research analysts and the authors of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months. Our research professionals are paid in part based on the profitability of ICICI Securities, which include earnings from Investment Banking and other business. ICICI Securities or its subsidiaries collectively 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. It is confirmed that Chirag J Shah PGDBM Sonabh Bubna MBA research analysts and the authors of this report or any of their family members does not serve as an officer, director or advisory board member 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. ICICI Securities and affiliates may act upon or make use of information contained in the report prior to the publication thereof. 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.

ICICI Securities Ltd | Retail Equity Research

Page 10