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InitiatingCoverage|17June2014

Sector:Automotive

BharatForge

Primedforrecovery
JineshGandhi (Jinesh@MotilalOswal.com)+912239825416
ChiragJain (Chirag.Jain@MotilalOswal.com)+912239825418

BharatForge

BharatForge:Primedforrecovery
PageNo.
Summary ........................................................................................................

34

Stronger,leanerandhealthier......................................................................59
AutobusinessawaitingCVcyclerecovery

............................................

Nonautobusinessplayoninvestmentcyclerecovery
Overseassubsidiariesofstrategicvalue

.......................

...................................................

1017
1824
2527

Multipleleverstosupport/improveprofitability

...................................

Valuationsattractiveforgloballeaderinforgings

........................................

Financialsandvaluation

...........................................................................

2829
30

3132

InvestorsareadvisedtoreferthroughdisclosuresmadeattheendoftheResearchReport.

17June2014

InitiatingCoverage|Sector:Automotive

BharatForge
BSESensex
25,190

S&PCNX
7,534

CMP:INR579

TP:INR710

Buy

Primedforrecovery
Earningsgrowthtoacceleratewith~27%CAGR(FY1417E)

Stockinfo
Bloomberg

BHFCIN

EquityShares(m)

232.8

52WeekRange(INR)

586/186

1,6,12Rel.Per(%)

22/65/127

M.Cap.(INRb)

129.7

M.Cap.(USDb)

2.2

BharatForge(BHFC)hasemergedstronger,leanerandhealthierfromthe
downcycle,drivenbyitsproactivestrategicshifttowardsastable,broadbased
andgreatervalueaddingbusinessmodel.ItisnowoneofIndiaslargest
engineeringexporters.
Itisprimedforrecoveryintheglobalinvestmentcycle.This,coupledwithan
expandedproduct/marketmix,woulddrivestrongrevenueCAGRof16%CAGR

FinancialSnapshot(INRb)
Y/EMarch
2015E2016E2017E

overFY1417.EPSwouldgrowataCAGRof~27%,aidedbyrobustmargin
expansion.

Sales

71.9

85.7

99.3

Whilethestockhasoutperformedoverthelastsixmonths,thereareseveral

EBITDA

12.0

15.3

18.0

triggersforcontinuedoutperformance.Theseinclude:(a)volumerecoveryled

5.2

7.5

9.1

EPS(INR)

22.5

32.3

38.9

deleveraging,and(d)improvementincapitalefficiencies.

EPSGr.(%)

19.4

43.7

20.4

Valuationsat~17.9x/14.9xFY16/FY17EconsolidatedEPSofINR32/INR39are

NP

BV/Sh.(INR)

131.9157.2187.9

P/E(x)
EV/EBITDA(x)

attractiveforagloballeaderinforgingsandatadiscounttothe5/10year

25.7

17.9

14.9

4.4

3.7

3.1

12.8

9.8

8.0

P/BV(x)
EV/Sales(x)

2.1

1.7

1.5

RoE(%)

18.2

22.4

22.6

RoCE(%)

18.5

23.1

25.5

Shareholdingpattern(%)
Ason

Mar14Dec13Mar13

Promoter

46.7

Dom.Inst
Foreign
Others

benefitofoperatingleverage,(b)improvingsegmentmix,(c)balancesheet

46.7

42.1

14.5

17.5

19.0

16.3

13.8

9.7

22.5

21.7

29.3

averageof22x/26x.WeinitiatecoveragewithaBuyrating.Ourtargetpriceof
~INR710(~22xFY16EEPS)suggestsanupsideof~23%.

Stronger,leanerandhealthier
BHFChasbroadeneditsrevenuestreambyenteringnewsegments(nonauto)
andglobalmarkets.Theshareofautobusinesshasdeclinedfrom~80%inFY07
to~60%inFY13andtheshareofIndiahasreducedfrom~60%to~48%in
standaloneoperations.Further,ithasincreasedvalueadditionbyfocusingon
machinedcomponents,thecontributionofwhichhasincreasedto~51%in
FY13,boostingrealizationsandmargins.Lastly,ithasimproveditsbalance
sheetbyfocusingoncontrollingdebtthroughlowercapex,resultinginfallin
netdebtequityto~0.3x/0.2xbyFY15/FY16.

AutobusinessawaitingCVcyclerecovery;focusingonPVs
StockPerformance(1year)

BenefitofUSClass8demandimprovement,drivenbyprebuyingbefore
emissionnormchangesandgradualrecoveryintheEUwouldreflectin
FY15/FY16.BHFCisacleanplayontheexpecteddomesticCVcyclerecovery
from2HFY15,withover60%marketshareinM&HCVcomponents.ThePV
segmentisafocusareaforBHFCandcouldbeanimportantgrowthdriver.This
segmentoffersanopportunitysize4xthatofCVs.

Nonautobusinessplayoninvestmentcyclerecovery
Thenonautosegmentofferssignificantgrowthpotential,asitismuchlarger
thantheautosegment.BHFCistargeting~60%ofitsstandalonerevenuesfrom
thenonautosegment,upfromthecurrent~40%.Itspartnershipswithglobal
players(Alstom,Areva,DavidBrown,etc)beartestimonytoitsgloballycost

17June2014

BharatForge

competitiveengineering/manufacturingcapabilities.BHFCsincreasing
penetrationwithexistingandnewcustomers,coupledwitheconomicstability
intheinternationalmarketandinvestmentcyclerecoveryinIndia,woulddrive
~24%revenueCAGRinthenonautosegment.Increasingcontributionofnon
autotoconsolidatedrevenuesaugurswellforprofitabilityandcapital
efficiencies,giventhesegmentshigherrealizations,marginsandassetturns.

Multipleleverstosupport/improveprofitability
WeexpectconsolidatedrevenuestogrowataCAGRof~16%overFY1417
(adjustedforFAWJVexit),drivenby22%CAGRinIndiarevenuesand12%
CAGRininternationalrevenues.EBITDAmarginshouldexpand~290bpto
18.2%,drivenbyhigherexportsfromIndia,risingcontributionfromnonauto
businessandmachinedcomponents,andoperatingleverage.BHFChas
sufficientcapacitiestodriveover25%revenueCAGRoverthenexttwoyears,
necessitatingmaintenancecapexofINR1.5b1.8bperyear.Weestimate
cumulativeFCFgenerationof~INR21bduringFY1517,enablingreductionof
netdebtto~INR7b(netdebtequityof0.2x)from~INR13.4b(netdebtequityof
0.8x).Improvingassetturnsandprofitabilitywoulddriveimprovementin
consolidatedRoEto~22.6%inFY17from17.9%inFY14thehighestRoEsince
FY07.

Valuationsattractiveforgloballeaderinforgings;Buy
BHFCisprimedforrecoveryintheglobalinvestmentcycle.Whilethestockhas
outperformedoverthelastsixmonths,thereareseveraltriggersforcontinued
outperformance.Theseinclude:(a)volumerecoveryledbenefitofoperating
leverage,(b)improvingsegmentmix,(c)balancesheetdeleveraging,and(d)
improvementincapitalefficiencies.Valuationsat~17.9x/14.9xFY16/FY17E
consolidatedEPSofINR32/INR39areattractiveforagloballeaderinforgings
andatadiscounttothe5/10yearaverageof22x/26x.Weinitiatecoverage
witha Buy rating.Ourtargetpriceof~INR710(~22xFY16EEPS)suggestsan
upsideof~23%.

17June2014

BharatForge

Stronger,leanerandhealthier
DiversifiedrevenuesILowerfixedcostsIDecliningdebtequity
BHFChasbroadeneditsrevenuestreambyenteringnewsegments(nonauto)and
globalmarkets.Theshareofautobusinesshasdeclinedfrom~80%inFY07to~60%in
FY13andtheshareofIndiahasreducedfrom~60%to~48%instandaloneoperations.
Further,ithasincreasedvalueadditionbyfocusingonmachinedcomponents,the
contributionofwhichhasincreasedto~51%inFY13,boostingrealizationsand
margins.
BHFChasworkedonloweringitsbreakevenutilizationinIndia(from35%to30%)as
wellasinitswhollyownedsubsidiaries(from60%to50%).
Lastly,ithasimproveditsbalancesheetbyfocusingoncontrollingdebtthroughlower
capex,resultinginfallinnetdebtequityto~0.3xbyFY15.

Strategic changes tolendstabilitytobusinessmodel


Duringtheglobalcreditcrisis,BHFCformulatedarevisedbusinessstrategytotide
overthevolatilityinthebusinessandelevateitselftothenextlevel.
Strategicchanges:Thefocusareas

Diversification

Efficiency

New

New

Cost

markets

customers

reduction

New
sectors/businesses

Fiscalprudence
Lower

Freezeon

Focuson

breakeven

capacity

cash

Optimization

Reduce

andrightsizing

working

ofoperations

capital

Debtreduction

Source:MOSL

ThebenefitsofthesestrategicchangesarevisibleinBHFCsfinancialsinthecurrent
downturn.WebelieveBHFCisnowwellplacedtoemergemuchstronger,drivenby
recoveryintheinvestmentcycleinIndiaandglobally.Wediscussbelowthe
companyskeyinitiativesthathavehelpedittoemergeleanerandstronger.

1.Broadeningofrevenuebase
Consideringthedeepcyclicalityinthecommercialvehicle(CV)business,BHFC
decidedtodiversifyitsrevenuestreambyincreasingtheshareofpersonal
vehicle(PV)andnonautomotivebusinesses.GeographicaldiversificationtoUS,
EuropeandRoWhashelpedprotectBHFCagainstconcurrentCVcyclesinkey
markets,globally.Itspresenceacrosssegmentsandmarketshashelpedto
largelyinsulateBHFCfromcyclicalityintheautomotivebusiness,resultingin4%
CAGRinconsolidatedrevenueCAGRoverFY0813(frompeaktotrough).

17June2014

BharatForge

BHFCsrevenuemixgettingmorediversified

CVsDom

CVsIntl

PVsDom

PVsIntl

NonAutosDom

NonAutosIntl

12
5

13
5

14
7

11
9

14

17

18

21

19

11

19

21

14
3

10

10
7
3

45

45

49

38

43

51

14

15

17

15

12

FY07

FY08

FY09

FY10

FY11

FY12

29
8
12
3

16
4
41

41

11

FY13

FY14

Source:Company,MOSL

Newnonautosegments
Thenonautomotiveforgingsspace,includingconventionalandnon
conventionalenergy,power,railandmarine,oilandgasexploration,metalsand
mining,andaerospaceoffersamuchlargermarketthantheglobalautomotive
forgingsspace.InFY06,BHFCstartedaggressivelydevelopingitsindustrial
componentsbusinessandinvestedinlargededicatedfacilitiesinBaramati,
SataraandPune.Ittargetedfivekeyverticalsoil&gas,constructionand
miningequipment,railways,marineenginesandcomponents,andaerospace.
Typically,thesenonautocomponentsaremorecomplexandhavehigher
contributionlevelsperunitofsale.Thenonautosegmentscontributed~28%of
consolidatedrevenuesinFY13against18%inFY08.
Nonautorevenuecontributionhasincreasedmeaningfully(%)
Consol

18

FY08

21

FY09

39

36

32
20

Standalone

30
25

27

40

37

41

28

20

FY10

FY11

FY12

FY13

FY14

Source:Company,MOSL

Newmarkets,segmentsandcustomerswithinauto:
Theautoindustryfollowsthecyclesofemissiontechnologychangeseveryfour
yearsorso.Toreducetheimpactofcyclicality,BHFCdecidedtodiversifyinto
thePVsegmentandtohaveapresenceacrossthreecontinentsNorth
America,EuropeandAsia.ItisfocusedoncreatingalargerpresenceinPVs,as
thissegmentismuchlargerthanCVs.
SupplytothePVsegmenthasbegunto
gaintraction,asstricteremissionnormswilldriveashifttohighperformance
partsandfromlargertosmalleryetpowerfulfuelefficientengines,inturn
drivingtheshiftfromcastingstoforgings.Intheautosegment,BHFC
consolidateditspositionbyincreasingitscustomerbaseandpenetratingdeeper
intoglobalmarketsthroughitsIndianandoverseasoperations.

17June2014

BharatForge

Significantincreaseincontributionfrominternational
markets(%ofstandalonerevenues)

TrendinPVcontribution(%ofsales)

India
1
13
26

2
20
22

USA
4
24

4
18

22

20

21

60

56

51

FY07

FY08

FY09

Europe

1
15

Others
4
21
22

3
19
28

Standalone
4
22

23
16

27

62

59

53

50

46

FY10

FY11

FY12

FY13

FY14

Consol

25
22

13

FY08

FY09

20
17

16

FY10

15
10

FY11

FY12

FY13

FY14

Source:Company,MOSL

Source:Company,MOSL

IncreasingshareofexportsfromIndia(%ofsales)
Consol
45

23

42

19

46

22

52
41

22

23

Standalone
44

26

50

52

29

32

57

29

58

56

55

32

32

33

Source:Company,MOSL

Whyforgingsv/scastingsinPVs?
Forgedcomponentsmakepossibledesignsthataccommodatethehighestloads,
operatingtemperaturesandstresses.Economically,forgedproductsareattractive
becauseoftheirinherentsuperiorreliability,improvedtolerancecapabilities,and
thehigherefficiencywithwhichforgingscanbemachinedandfurtherprocessedby
automatedmethods.Thedegreeofstructuralreliabilityachievedinforgingis
unexcelledbyanyothermetalworkingprocess.Therearenointernalgaspocketsor
voidsthatcouldcauseunexpectedfailureunderstressorimpact.Tothedesigner,
thestructuralintegrityofforgingsmeanssafetyfactorsbasedonmaterialthatwill
respondpredictablytoitsenvironmentwithoutcostlyspecialprocessingtocorrect
internaldefects.

2.Focusonvalueaddition
BHFChasevolvedfrom(1)asupplierofforgedcomponentsto(2)asupplierof
finishedcomponentsto(3)adevelopmentpartnerforbothautoandnonauto
industries.Themovementupthevaluechainhasacceleratedoverthepastfew
yearsacrossautomotiveandnonautomotivecomponents.Thishasbeen
achievedasaresultofBHFCsstrongtechnologicalrelationshipandclose
collaborationwithmajorcustomers.Machiningistheprocessofremoving
excessmaterialfromtheforgingtomeetthedimensionsrequiredbycustomers,
convertingaforgedpartintoafullyfinishedandreadytoassemblecomponent.
Focusonhighervalueadditionhasresultedinanincreaseinthecontributionof
machinedcomponentsto~51%ofstandalonerevenuesfrom~40%inFY08.
17June2014

BharatForge

Moreimportantly,machinedcomponentsofferhigherprofitabilityandhave
lowercapitalintensity.

Increasingvalueadditionevidentinhigherrevenuecontributionfrommachined
componentsand
M/CingRevenues(INRb)

%ofS/ARevenues

41

40

40

43

22

25

%ofConsolRevenues
51

47
28

29

19

18

13

18

16

FY08

FY09

FY10

FY11

FY12

FY13
Source:Company,MOSL

reflectinginhigherrealizationsandgrossmargins(%)
Standalone

S/ARealizations(INR/ton)

Consolidated
63
60

56

55
53

52
50

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY08

FY09

56

55
51

FY10

57 57
54

52

FY11

FY12

Source:Company,MOSL

FY13

FY14

Source:Company,MOSL

3.Leanercoststructure
Inthelastfewyears,BHFChasfocusedonreducingitsfixedcostsandbringing
downbreakevenutilizationatitsdomesticaswellasinternationalsubsidiaries.
Ithasachievedthisthroughrestructuringofmanufacturingfacilities,rightsizing
ofmanpowerinEUoperationsandoptimizingfixedcosts.BHFChasclosedits
operationsatScottishStampingsandBFAmerica,andisexitingtheChinaJV.As
aresult,ithasbeenabletoreducebreakevenutilizationinIndiato30%inFY13
(from35%inFY08)andinEuropeto50%(from60%).

17June2014

BharatForge

RestructuringofmanufacturingoperationsledtoclosureofScottishandAmerican
subsidiaries,andexitfromChinaJV
India
135

135

Europe
135

US

China

60

60

60

135

200

200

180

180

0
180

340

365

365

380

380

FY10

FY11

FY12

FY13

FY14
Source:Company,MOSL

Trendinfixedcost

Trendinbreakevenutilization
FixedCost(%ofconsolsales)

FY08

FY13

23.3
21.2

21.2

50

22.0
20.8
19.0

FY07

FY08

60

FY09

FY10

FY11

35

30

18.3

FY12

FY13

India

Source:Company,MOSL

Europe
Source:Company,MOSL

Goalsfornextfiveyears
Forthenextfiveyears,BHFChassetthefollowinggoals:
IncreasepresenceinPVsthroughnewproductdevelopmentandcustomer
penetration.
Enhancemarketshareintheindustrialsectorandcreatepresenceinthe
aerospacesector.
NurturetheJVwithAlstomtobecomeaworldclass,costcompetitivepower
equipmentmanufacturer.
Focusonbecominganetdebtfreecompany,improvingreturnratiosand
generatingcashflows.

17June2014

BharatForge

AutobusinessawaitingCVcyclerecovery
FocusingonPVs,offering4xtheopportunitysizeofCVs
BenefitofUSClass8demandimprovement,drivenbyprebuyingbeforeemission
normchangesandgradualrecoveryintheEUwouldreflectinFY15/FY16.

BHFCisacleanplayontheexpecteddomesticCVcyclerecoveryfrom2HFY15,with
over60%marketshareinM&HCVcomponents.
ThePVsegmentisafocusareaforBHFCandcouldbeanimportantgrowthdriver.This
segmentoffersanopportunitysize4xthatofCVs.
StricteremissionnormswouldnotonlydrivehigherrealizationsforBHFCbutalso
improveitscompetitivepositioning.

HighlyleveredtoglobalandlocalCVcycles
BHFCisaleadingglobalautomotiveforgingsplayer,withmanufacturingpresencein
IndiaandEurope.Thetop5globalOEMsacrossCVandPVsegmentsareBFLs
customers.Ithastransformeditselffromasupplierofcomponentstoapreferred
technologyandengineeringdrivendevelopmentpartnerforallindustriesthatneed
forgedcomponents.WeexpectBHFCsmarketsharetoincreasefurther,drivenby
itsfullservicesupplycapabilities,enablingittobuildstrongandsustainable
customerrelationships.ThereisatrendtowardsdeintegrationofOEMfacilitiesdue
toemphasisonlowercapitalintensity,resultinginincreasedscopeforoutsourcing
components.Onasteadystatebasis,theCVsegmentcontributes~58%of
consolidatedrevenues(~45%frominternationalmarketsand~13%fromdomestic
markets).
CVsegmentcontributes~55%tosteadystateconsolidated
TrendinHCVvolumesandconsolidatedrevenuegrowth
HCVVolGrowth(%)

revenues

ConsolRevenueGrowth(%)

CVsIntl

60.0
40.0

14

15

20.0

CVsDom
12

17

15

11

41

41

FY13

FY14

0.0
20.0

45

45

49

FY07

FY08

FY09

38

43

51

40.0
FY07FY08FY09FY10FY11FY12FY13FY14
*HCVvolumegrowthforIndia,EU&US
Source:Industry,Company,MOSL

17June2014

FY10

FY11

FY12

Source:Company,MOSL

10

BharatForge

BHFCsfullservicecapabilitiesenableittoengagewithOEMsrightfromdevelopmentstage

Source:Company,MOSL

17June2014

11

BharatForge

InternationalCVbusinessoutlookimproving
BHFCisoneofthegloballeadersinforgedcomponentsforCVs,withstrong
relationswithkeyOEMsacrosstheglobe.Throughseveralstrategicacquisitions,it
hasestablishedmanufacturingpresenceinGermanyandSwedenanddeveloped
dualshoremanufacturingcapacities,givingittheabilitytocatertotheneedsof
customersfrommultiplelocations.TheinternationalCVbusinesscontributes~45%
ofitsconsolidatedrevenues.ExportsofCVcomponentsfromIndiaaccountfor~30%
oftotalinternationalCVrevenues(~20%inFY10)andhavebeenincreasingpostthe

closureofAmericanoperationsinNovember2012.
OffshoringfromIndiaforinternationalCVbusinesstoincrease(%ofinternationalCV
businessrevenues)
Fromotheroperations

FromIndiaoperations

20

21

23

20

25

26

31

80

79

77

80

75

74

69

FY07

FY08

FY09

FY10

FY11

FY12

FY13

Source:Company,MOSL

USClass8CVvolumestopickuponprebuysbeforeemissionnormchange
inCY15
BHFCislargelyfocusedonClass8trucks(HCVs)andlighttrucks.Ithasstrong
relationshipsintheUSCVmarketandhassignificantlyincreaseditsautoexportsto
USAonthebackofsuppliestotheM&HCVsegment.Basedonoutlookgivenby
variousOEMs,USClass8trucksareexpectedtogrow612%inCY14,drivenby
replacementdemandandeconomicrecovery.Replacementofagingtrucks
continuestobetheprimarydriverofnewpurchases,withanearrecordaverage
fleetageof9.57years.Trucksboughtinthelastpeakin200406arenow810years
old,supportingsolidreplacementdemand.Repaircostsrampupafter45years,
furtherdrivingreplacementoftrucks.Freightgrowthandregulatorychangesshould
encouragereplacementofolderequipment.Further,Class8truckcancellationsat
5.2%ofgrossorders,isbelowthe10yearaverageof9.1%.Cancellationshavebeen
below10%forthepast14months,apositiveindicatoroffleetsentiment.

US/NAFTA

Volvo

Daimler

PACCAR

CY14Growth(%)
Keycomments

6%
Theconstruction
marketcontinues
torecoverand
replacement
demandremains
high

upto10
Significantmarket
growthofupto
10%duetothe
increasingly
dynamiceconomy

upto12%
8%
Ongoingfleet
replacementand
someexpansionof
industryfleet
capacityreflecting
modestoverall
i
h
Source:Company,MOSL

Cummins

17June2014

12

BharatForge

USClass8volumemomentumpositivesinceAugust2013
Averageageof9.6yearsfor
Class8truckscoupledwith
peakvolumesduring
CY0508augurswellfor
replacementdemand

CY11

25,000
20,000
15,000
10,000

CY12

CY13

CY14

5,000
Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

NovDec

Source:Bloomberg,MOSL

NorthAmericaClass8cancellationdataindicatespositive
TrendinClass8truckvolumesandaveragefleetage

fleetsentiment

Source:Bloomberg,MOSL

Source:Bloomberg,MOSL

Source:Bloomberg,MOSL

EUHCVvolumestoremainstableafterprebuyinginCY13
WhileBHFCisfocusedonluxuryPVsintheEU,itisincreasingitsrevenuesfromthe
HCVsegmentintheEUthroughexportsandBFKilsta(Sweden).EUHCVvolumes
hadbenefitedfromprebuyingbeforeemissionnormchangestoEuroVIfrom31
December2013,registering~8%growthCY13(6%degrowthin9MCY13).While
17June2014

13

BharatForge

1HCY14HCVvolumeswouldbesluggishduetotheimpactofprebuying,OEMs
expectupto5%degrowthinCY14,dependingonsustenanceofeconomicstability
andquantumofreplacementdemand.Allleadingindicatorssuggeststabilityinthe
Eurozoneeconomies,auguringwellforrecoveryinHCVvolumesin2HCY14.
OEMsexpectHCVdemandtobesluggishin1HCY14duetoprebuyingin4QCY13
Europe
CY14Growth(%)
Keycomments

Volvo
Daimler
4
slightlynegative
Demandin
Developmentsduring
Europeis
therestof2014will
expectedtobedependinparticularon

PACCAR
0to10%
Some
customersare
purchasing

Scania
PrebuysinEurope
during2013willimpact
thefirsthalfof2014

slowinthe
theextenttowhichthe
beginning
economicrevivalin
oftheyearandEuropecanoffsetthe
thengraduallynegativeimpactofthe
improve.
purchasesbrought
forward

Euro5vehicles
aheadofthe
introductionof
theEuro6
emission
requirementin
2014

whileScanias
assessmentisthat
economicactivityin
Europehasstabilised
andthatthereisa
replacementneed
Source:Company,MOSL

EUHCVvolumesstillwellbelowpeakofCY0508andnearEUHCVvolumesexpectedtobestable,despite8%growthin
CY02levels

CY13duetoprebuying
CY11

CY12

CY13

CY14

35,000
29,000
23,000
17,000
11,000
5,000

Source:Bloomberg,MOSL

Source:Bloomberg,MOSL

Eurozoneindustrialproductionindicesshowingsustained
EurozonemanufacturingPMIsindicateimprovingconfidencerecoveryoverlastninemonths
60

EUPMI

IndustrialProductionIndices(YoY%)

4
50

2
0

40

2
4

30

Source:Bloomberg,MOSL

Source:Bloomberg,MOSL

17June2014

14

BharatForge

DomesticCVcycletorecoverfrom2HFY15;BHFCbestplayonCVcycle
recovery
Afterdecliningatarateof~25%overFY1214,weexpectdomesticCVvolumesto
recoverfrom2HFY15,drivenbyclarityonthenewgovernmentledkickstartingof
theinvestmentcycle.Weestimate10%/23%/22%growthinCVvolumesin
FY15/FY16/FY17.GivenitsstrongpositioningwithkeyOEMs(includingnew
entrants),webelieveBHFCisthebestplayonCVcyclerecovery.BHFCenjoysover
60%marketshareforforgedandmachinedautomotivechassisandengine
components.Further,shifttowardsmultiaxlevehiclesandnewgenerationtrucks
woulddriveanincreaseinusageofforgedparts,auguringwellforBHFC.The
domesticCVsegmentcontributes~15%ofconsolidatedrevenuesand~25%of

standalonerevenues.WeexpectBHFCsdomesticCVrevenuestogrowataCAGRof
~21%overFY1417E.
DomesticCVrevenues(asa%ofstandaloneandconsolidatedrevenues)
%ofS/Arevenues

%ofConsolrevenues

35
28
21
14
7
0
FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

Source:Company,MOSL

TrendindomesticM&HCVvolumes
M&HCV('000units)

33.1

33.3

Growth(%)

31.9

23.022.0
7.5

M&HCV('000units)
6.56.511.73.7

3.5

10.0

0.7

12.614.3

200

184

33.0

245323347268

62

75 16.2

31.632.5

22.7
82

276274

Growth(%)

93

9011171

80

56
30.127.9

60

25.5 220271330

Source:Company,MOSL

45

14.6

64

58

Source:Company,MOSL

PVsegmentafocusarea;couldbeanimportantgrowthdriver
TheglobalPVmarketisfourtimeslargerthantheCVmarket,butcontributesjust
~20%toBHFCsconsolidatedrevenues.WhileinternationalPVscontribute~16%to
consolidatedrevenues,thecontributionofdomesticPVsisjust~4%.Webelievethe
PVsegmentofferssignificantheadroomtogrowthroughincreasedpenetrationby
BHFC,benefitingfromvendorconsolidationininternationalbusinessandemission
normledshiftfromcastingstoforgedcomponents.
IninternationalPVs,BHFCrecentlybaggedlargemultiyearordersforEUR250m
fromaGermanOEM,inadditiontomultiyearsordersfromFordandDaimler
17June2014

15

BharatForge

Chrysler.WhileFordMotorUSAhasinitiateddevelopmentofcrankshaftforgings
withBHFC,DaimlerChryslerhaschosenittosupplycrankshaftsandcamshaft
forgingsforitscarenginesinGermany.BHFChasalsowonanordertosupply
controlarmforgingstoaglobalpassengercarcompanyinAustralia.Inaddition,it
hasbaggedanewmultiyearordertosupplysteeringknuckleforgingstoDana(US).
IthasalsobegunsupplyingtoitssecondChinesecustomer,whileexportstoRenault
arebeingscaled.IthaswonaUSD100morderinEurope,whichwillbeexecuted
overthenextfiveyears.ThemanagementhasindicatedthatBHFCwilltargetto
supply~1mcrankshaftsintheEuropeanpassengercarmarketbyFY18.
Globalluxurycarswitnessingstronggrowth
CY11
600,000

CY12

CY13

InternationalPVcontributionexpectedtoincrease
CY14

PVs

%oftotal

9,046

9,124

9,303

9,265

500,000

21

19

19

400,000

21

7,034

16
4,363

14

300,000

7,028

200,000

FY07

FY08

FY09

FY10

FY11

Source:Company,MOSL

FY12

FY13

Source:Company,MOSL

InIndia,passengercarshavetraditionallyusedcastings.Thecontributionofthe
domesticPVsegmenttoBHFCsconsolidatedrevenuesis,therefore,small.
Progressively,withstricteremissionnormsandadvancedturbochargedengines,
moreforgingsarebeingused.BHFChasbeenworkingwithOEMsontheirplatform
developmentandwillbenefitwhentheylaunchnewproductsusinghigh
performanceforgedcomponents.
DomesticPVrevenuegrowthlinkedtoindustryfortunes
PVVolGr(%)

39

DomesticPVbusinesscontributiontorevenues

Dom.PVrevenuegrowth(%)

26

%ofS/Arevenues

%ofConsolrevenues

33

13
22

11

13
26

0
FY07FY08FY09FY10FY11FY12FY13FY14
Source:Company,MOSL

Source:Company,MOSL

17June2014

16

BharatForge

TrendindomesticPVvolumes
PV('000units)
27.0
19.7

Growth(%)

PV('000units)

22.9

9.2
15.015.0

11.8

10.0

7.0

6.4

13.6

Growth(%)

13.1
7.1
2.4

1.9

0.6

4.8
0.1

9.3

6.05.37.0

724731722948776745817860739763767814687

1.7

Source:Company,MOSL

Source:Company,MOSL

Stricteremissionnormstodrivehigherrealizations,improvecompetitive
positioning
Emissionnormchangeshavemeaningfulimplicationsfortheautoindustry.To
adheretoreducedparticulateemission,enginesrequiresignificantchanges.The
globalintroductionofEuroVIregulationsrequiredadvancedpowertrainsolutions,
drivingtheshifttowardshighperformanceparts.AccordingtoMeritor,trucks
complyingwithEuroVIregulationscommandapricepremiumof~EUR5,000over
truckscomplyingwithEuroVregulations.Suchregulatorychangesprovidean
opportunityforBHFCtoincreaseitspresenceintheglobalPVindustry,drivenby
technologicalshiftfromcastingstoforgings.Suppliersthatemergeaspreferred
partnersforOEMsmaybeabletoleveragetheirglobalscaletofurtherreduce
technologycostsandincreasetheirindustryinfluence.WeexpectBHFCtobenefit
fromthetrendofvendorconsolidation.

Source:CumminsInc,MOSL

Source:CumminsInc,MOSL

17June2014

17

BharatForge

Nonautobusinessplayoninvestmentcycle
recovery
Tobenefitfromincreasingmarket/customerpenetration
Thenonautosegmentofferssignificantgrowthpotential,asitismuchlargerthanthe
autosegment.BHFCistargeting~60%ofitsstandalonerevenuesfromthenonauto
segmentovernextfewyears,upfromthecurrent~40%.
Itspartnershipswithglobalplayers(Alstom,Areva,DavidBrown,etc)beartestimony
toitsgloballycostcompetitiveengineering/manufacturingcapabilities.
BHFCsincreasingpenetrationwithexistingandnewcustomers,coupledwith
economicstabilityintheinternationalmarketandinvestmentcyclerecoveryinIndia
woulddrive~23%revenueCAGRinthenonautosegment.
Increasingcontributionofnonautotoconsolidatedrevenuesaugurswellfor
profitabilityandcapitalefficiencies,giventhesegmentshigherrealizations,margins

andassetturns.BHFCsinternationalnonautobusinessislargelyservicedbyitsmore
efficientIndianoperations.

BHFCplanstoventureinto
56newsectorsinthe
coming57years,andmake
eachofthesenewverticals
USD100mbusinesses.

Nonautosegmentdrivesdiversification,growthandsuperiorprofitability
Nonautomotiveforgings,includingconventionalandnonconventionalenergy,
power,railandmarine,oilandgasexploration,metalsandmining,andaerospace,
offeraglobalmarketmuchlargerthanautomotiveforgings.InFY06,BHFCsetout
onanewgrowthpath,whereitfocusedonaggressivelydevelopingitsindustrial
sectorcomponentsbusinessandchalkedoutalargeinvestmentplantodevelop
dedicatedfacilitiesinBaramati,SataraandPune.Ithasdevelopedandbuiltstrong
relationshipswithcustomersinthenonautomotivespace,withthenumberofnon
automotivecustomersmorethandoublingoverthelast56years.Whileexisting
nonautobusinesscanbebroadlydividedintothreeverticals(1)energy,(2)
transportation,and(3)miningandconstruction,itisalsoexploringareaslike
aerospacethathavelongleadtimes.Itplanstoventureinto56newsectorsinthe
coming57years,andmakeeachofthesenewverticalsUSD100mbusinesses.Non
automotiveforgingsaremorecomplexandhavehighercontributionlevels.

BroadoverviewofBHFCsnonautobusiness

Source:Company,MOSL

17June2014

18

BharatForge

Nonautosegmentcapacityinplaceforfurtherscaleup
Facilities

Location

Capacity

Products

Industry

CentreforAdvancedManufacturing
80mtrTonHammer

Baramati

40,000TPA

LargeclosedDie
forgingsupto2.5T
and4.5mlong

Energysector,Hydrocarbonexplorationsector,
transportationincludingAerospace,Railwaysand
Marinesector

MachiningShop

Baramati

12,000nos

Locomotives,Marineandpowergeneration

Baramati

25,000TPA

Machined
componentssupply
Largerings,Gear
blanks,connectors,
bearings,Valves

Ringrollingfacility

Heavyforgedivision
4,000Tpress

Pune

60,000TPA

Forgeingotsupto70T

Windturbinecomponents,Hydro,Gasandsteam
turbinecomponentsandcomponentsforMining,
MetalIndustryandGeneralengineeringapplications

MachiningfacilityforHeavy
forgedivision

Satara

1,400nos

Machined
componentssupply

Windsector

Windsector,Oilandgassector

Source:Company,MOSL

JVswithglobalcapitalgoodsplayerstestimonyofitscapabilities
BHFChasenteredintoJVswithglobalplayerslikeAlstom(forturbinesinsuper
criticalthermalpowerplants),Areva(heavyforgingsfornuclearpowerplants),
DavidBrown(forindustrialgearboxes)andNTPC(BOPequipmentforpower
sector).TheseJVsareatestimonytoBHFCsmanufacturing/engineeringcapabilities
andinspireconfidenceinitsabilitytosignificantlyscaleupthenonautobusiness
globally.

Tobenefitfromeventualinvestmentcyclerecoveryinbothlocalandglobal
markets
Thenonautobusinessislinkedtotheinvestmentcycle,sinceitcatersto
infrastructuredevelopmentenergy,transportation,andconstructionandmining.
BHFCsnonautobusinessrevenueswereimpactedinFY13duetomacroheadwinds
inbothIndiaandglobalmarkets,resultingin5%degrowthinnonautosegment
revenuesdespiteincreasingtractionwithnewcustomers/newsegments.Whilethe
economicoutlookfortheUSandEUisstabilizing,theIndianeconomyseemsto
havebottomedoutwithrecoveryexpectedfrom2HFY15.Internationalnonauto
revenuescontribute~19%ofconsolidatedrevenues,whereasdomesticnonauto
revenuescontribute~9%.
Trendinnonautobusinessmarketmix
Domestic

Nonautomarketmix
International

International

India

100%
19,454
10,478

5,1956,319

6,735

7,354
3,603

2,0752,202

3,5253,0955,450

FY07

FY09

FY08

FY10

50%

9,638

25%
6,6615,1025,606

FY11

75%

FY12

FY13

0%
FY14

FY07FY08FY09FY10FY11FY12FY13FY14

Source:Company,MOSL

Source:Company,MOSL

17June2014

19

BharatForge

Internationalmarketoutlookstabilizing
Modestlyimprovingeconomicgrowthinmostdevelopedmarketsshouldhelp
improvebusinessprospects.Demandforcapitalgoodsissensitivetochangesin
businessconfidenceandiscorrelatedwitheconomicswings.Keyindustryindicators
suchasindustrialproductionandnonresidentialconstructionpointtoamodest
uptickingrowthfortheglobalcapitalgoodsbusiness.Revenuesofglobalindustrial
playersalsosuggestthatthepaceofrevenuedeclinehasmoderated.TheCY14
outlookreflectscautiousoptimism,suggestingpossibilityofagradualrecoveryin
theglobalinvestmentcycle.Basedontheoutlookgivenbyitskeycustomers,theoil
andgassegmentisexpectedtogrow810%,whilepowerandminingand
constructionareexpectedtoremainstable.Currencymovementshaveincreased
thecompetitivenessofIndianmanufacturingandcreatedopportunitiesforexport
ledbusinessmodels.
Internationalnonautorevenues
FromIndia

FromEurope

%ofConsolrevenues
22

17

3,880

21
15

14

4,493

4,245

18

3,949
8

1,315

1,826

2,490

1,522
2,081

FY07

FY08

FY09

FY10

4,768

3,034
4,320
FY11

6,529

6,353

FY12

FY13

Source:Company,MOSL

ManufacturingPMIspointtomodestuptick
EUPMI

60

60

50

50

40

40

30

30

Source:Bloomberg,MOSL

USPMI

Source:Bloomberg,MOSL

17June2014

20

BharatForge

Snapshotofcommentsbyglobalcapitalgoodscompanies
Segment

Company

Commentary

Power

Alstom

Energy&Marine

Wartsila

Demandinanumberofmarketsisweakandshouldremainsointheshorttermandthelevelof
turnkeyandequipmentcontractsbookedissubstantiallylowerthanexpectedinThermalPower.
Ourmarketoutlookfor2014remainscautious,althoughaslightimprovementmaybeseenin
certainareas.Basedonourcurrentorderbookandprojectpipelineweexpectsomegrowthin
netsalesduring2014andprofitabilitytoremainatasimilarleveltothatof2013.
Thereareencouragingsignsintheworldeconomyandwe'reseeingsomeinourownbusiness,
andthatgivesusoptimismforsalesinourConstructionandPowerSystemssegmentsandwe
thinkthey'lleachbeupabout5%in2014.
Theunderlyingglobaleconomicoutlookwillsupportastrongmarket,withspendingonoffshore
explorationandproductiongrowing8percentto10percentannuallythrough2017.Aker
Solutionsexpectsseveraloffshoredrillingrigsandfloatingproductionfacilitiestobeorderedover
thenext12to18months.
Wedonotanticipateanysignificantrecoveryintheglobaleconomyin2014andthusexpect
practicallyunchangedinvestmentandprojectactivitycomparedto2013inthemarketsservedby
ANDRITZ,withsomemajorprojectslikelytobeawardedinthehydroandpulpsectors.
Intheshortterm,therearesomepositiveearlycyclemacroeconomicsigns,suchasstrengthening
growthintheUSandthemoreencouraginggrowthinmanypartsofEurope.However,thereare
alsosomeuncertaintiesrelatedtotheimpactsofquantitativeeasingandthespeedandstrength
ofeconomicdevelopmentintheemergingmarkets,especiallyChina.
InNorthAmerica,weexpectourtruckbusinesstogrowin2014.Weareforecastingthatthe2014
marketsizeforheavydutytruckstoincrease8%YoY.WhileGDPisexpectedtogrowinthe
eurozonein2014forthefirsttimeinthreeyears,weexpectourrevenuestoberelativelyflat.

Mining,ConstructionCaterpillar
&Power
Oil&Gas

AkerSolutions

Diversified
Industrials

Andritz

Power&
Automation

ABB

Power&Engines

CumminsInc

Diversified
Industrials

SiemensAG

DiversifiedIndustrialsHoneywell

DemandfromourEuropeanbasedPowerGenerationcustomerswillremainweakin2014,given
thatmostoftheseproductsareshippedtodevelopingmarkets.
Despitethegenerallypositiveforecastsfortheglobaleconomy,wecontinuetoassumethat
noticeableimpulseswillfirstbefelttowardtheendoftheyear.Well,ourestimatesandwe're
conservativeandifbusinesspicksupasitalreadyhasbeenindicatedandhasbeenforecasted,we
arepreparedfortakingbenefitfromthisandsowecanmeetexpectations.
Whilewethinkit'sprudenttoremaincautiousontheglobaleconomyatthistime,we're
increasinglyconfidentinour2014outlookbasedonthemomentumfromthefourthquarter.
Source:Company,MOSL

Oil&Gasspendingisexpectedtogrowat11%CAGR

OrderbacklogforGEatalltimehighlevels(USDb)
Services

175
46
129

Equipment

Total
244

245

61

64

64

168

180

181

200

204

203

210

216

223

229

53

52

50

53

56

57

147

152

153

157

160

166

Source:GE,MOSL

Source:WoodMackenzie,MOSL

Domesticnonautosegmentplayoninvestmentcyclerecovery
AstrongdecisivemandateintherecentElectionshasrekindledtheexpectationsof
anuptickinIndia'sinvestmentcycle.Inouropinion,India'scapexJCurvewillbe
kickstartedby(1)reorientationoffiscalexpenditurewhichcouldaccelerate
spendingonflagshipprojects,and(2)government'sattempttoaddressthe
17June2014

21

BharatForge

contentiousissuesinseveralsectors,leadingtoincreasedcapexbyCPSUs.This
phasewillbefollowedwithrevivalinindustrialcycleculminatingwithtractionin
greenfieldprojects.
Projectscompleted(asa%ofprojectsunderimplementation)havetouched
abysmallylowlevelsof3.4%,andimpactedthevirtuouscycleofcashflow
generationinthesystem.Theinitialroundofdemandimprovementwillbecatered
tobyfasttrackingtheseprojects.CabinetCommitteeonInvestmentshasalready
clearedprojectsworth~INR20t(~25%oftheprojectsunderimplementationinthe
economy)andwithmorelastmilepush,attemptshouldbetoexpedite
implementation.OrderfinalizationduringMay2014(ttmbasis)standsatINR1.9t,
andisup29%YoY.Orderawardsonattmbasishavegraduallyinchedupfromlows
ofINR1.4tinJune2013toINR1.9tcurrently.
Domesticnonautorevenuesimpactedbyeconomicslowdown
DomesticNonAutos

%ofS/Arevenues

%ofConsolrevenues

29
23
16

18

13

16
8

15

2,202

3,525

3,095

FY08

FY09

FY10

12

2,075
FY07

13

14
8

11

5,450

6,661

5,102

5,606

FY11

FY12

FY13

FY14

Source:Company,MOSL

OutstandingProjectInvestments(%YoY):Phasesof
Investmentcycleslowdown

Projectscompletedatlowlevelsaseconomicviabilitypoor,
impactingcashgenerationcycle

60

12.5%

50

ProjectsCompletedttm,as%ofPrjunderImpl
Executionimpacted
given
regulatory,financing
andviabilityconstraints

10.5%

40

8.5%

30

6.5%

20
10

4.5%

2.5%

Projectscompletedhadconsistently
remainedat7%+ofprojectsunder
implementation

10

Source:CMIE,MOSL

Source:CMIE,MOSL

17June2014

22

BharatForge

Fewpocketsofhope:Geographicdiversification,costoptimization,newproducts,etc
Company

ManagementComments

Voltas

BusinessprospectsaresomewhatbrighterincertainMiddleEastgeographies,withaclearcut
investmentthrust,especiallyininfrastructureandconstruction.ThisismorepronouncedinQatar,KSA
andmostrecentlyDubai.

ElgiEquipments

Thecompanyexpectstoendthefinancialyearwithamarginalorganicgrowthlargelycontributedby
internationalmarketsasthedomesticmarketcontinuestoremainsluggish.

ABBIndia

Baseordersfromawiderspectrumofcustomershelpedoffsetdearthoflargeprojectsinthemarket.
Exportsgrewannullingtheeffectofacontractioninthedomesticmarketopportunities.

PrajIndustries

We'vetakenadequatestepstoincreaseourfocusfurtheronexportmarkets,notonlyforEthanoland
Brewerybutalsoforemergingbusiness.

GreavesCotton

Thoughoursaleshavebeenaffectedbytheoveralldismalbusinessenvironment;wehavebeen
constantlyfocusingonourproduct?marketgrowthstrategy.Thecompanyhassteppedupits
investmentinR&Dactivitiestodevelopnewproducts.Internationalbusinesshasalsobeenableto
widenitsglobalfootprintinSouthEastAsia,EastAfricaandMiddleEastmarketsandhassetupa
distributionandaftermarketnetwork.

Thermax

Thereareverylimitedopportunitiesinthemarketwhichhavebeenavailableinthelastninemonths
andinthenext,atleasttwoorthreequarters,butwehaveintroducednewproductsinthemarketand
wehavebeenabletocurtailourexpensesandcosts,wherebywehavebeenabletobecompetitive,
eventhoughthemarketmarginsarelower.

ActionConstructionEquipments

Whilethereissomeimprovementinthemacroenvironment,thechangesaregradual.Weareseeing
growthinneworderenquireswhichweareoptimisticwilltranslateinthenextyear.Agriequipment
continuestobeakeygrowthdriverandwehavecommencedworkonourinhouseengine

EleconEngineering

manufacturingfacilityandexpecttohavethisoperationalbyendofyear.
Wehaveareasontobelievethattheworstisoveraslongasgearsareconcernedandwebelievethatif
theelectionshowspositivesigns,gearisoneofthebarometersoftheeconomybecauseourindustrial
gearboxesgointoallkindsofindustries.Sowebelievethatassoonastheeconomystartsimproving,
thedemandforthiswillkeeponincreasing.

PowerFinanceCorporation

ThecashlossesofthediscomsoftheUP,Rajasthan,Haryana,TamilNaduhavereducedintherangeof
42to54%,andallthesefourstatesarenowpayingsubsidyupfrontonamonthlybasis.Thesearethe
advantagesandthesearetheturnaroundwhichweareseeingaftertheimplementationofFRPpackage
inallthesefourstate.

BlueStar

Therehasbeensomeimprovementindemandfromthehotel,hospital,commercialcomplexand
industrialsegment.
Source:Company,MOSL

Orderfinalizationsimprove(12mmabasis,INRB)
TTMOrders(INRb)

%YoY

45
25
5
15
35

Source:Company,MOSL

17June2014

23

BharatForge

Inall,weareaimingto
bagordersworthatleast
USD100mfromthe
Railwaysandthisisthe
minimumwearetargeting.
Butsellingcrankshafts
alonewontdoenough,and
hence,wearealsoworking
onothernewproducts,but
itistooearlytosaywhat
theymightbe.

withscopeofmarketsharegainandnewsegmentdrivingfastergrowth
Inthenonautosegment,BHFChasbeenfocusedon(a)newcustomeradditions,(b)
highervalueadditionofcriticalcomponents,and(c)expansionofproductportfolio
withexistingcustomers.Goingforward,weexpectthenonautobusinesstowitness
strongerperformanceonthebackofnewcontracts,improvementineconomic
conditionsandstartofcommercialsuppliesafterthecompletionofproduct
validationprocessesforseveralongoingprograms.Ithasdevelopedandbuiltstrong
relationshipswithcustomersinthenonautomotivespace,withthenumberofnon
automotivecustomersmorethandoublingoverthelast56years.
BHFCplanstoventureinto56newsectorsinthecoming57years,andmakeeach
ofthesenewverticalsUSD100mbusinesses.Typically,theseproductsaremore
complex,havelongerleadtimesforvalidationandhavehighercontributionlevels.It
hasrecentlybaggeditsfirstorderfromtheIndianRailwaysforlocomotive
crankshafts.ThismakesBHFCtheonlyindigenouscomponentssupplierforthe
IndianRailways.Thecompanyisalsoexecuting,forthefirsttimeinIndia,a
technologyintensiveprojectinvolvingmechanizedlayingoftrackswithinIndia's
upcomingheavyaxleloadfreightcorridor.Ithasdevelopeddemonstratorparts
fortheaerospacesectorforglobalplayers.

"Tenyearsfromtoday,we
areveryconfidentthatIndia

Defencenextbigopportunity

isgoingtoemergeasa
largeexporterofdefence
products.Today,wearethe
largestimporterofdefence
products.Andwearegoing
tobeafairlyimportant
playerinthis." MrBaba
Kalyani,CMD,BharatForge

Withstressonindigenousdevelopment,potentialdefenceopportunityof~INR400b
(defenceimportsin2013)isbeingopenedup.BHFChasbuildingblocksinplacein
thedefencesector,withJVwithIsraelicompanyElbitSystemsfocusesonland
systemsartilleryandinfantryequipmentandtanks.ThisJVisdevelopinga155mm
artillerygun.Further,BHFCalsohasastrategicalliancewithSwedishdefenceand
securitycompanySaab,andhasaJVwithDavidBrowncateringtodefencegearing
solutions.

17June2014

24

BharatForge

Overseassubsidiariesofstrategicvalue
Butyettocontributemeaningfullytofinancialperformance
BHFCsoverseasacquisitionsweredrivenbyitsneedforenhancedaccessto
customers,marketsandtechnology,andtodevelopadualshoremanufacturing
model.
Thoughitsoverseassubsidiariesareyettocontributemeaningfullytofinancial
performance,theyaddstrategicvalue.Thesesubsidiariescontributed~40%/8%/1%to
FY13consolidatedrevenue/EBITDA/PAT.
BHFCsexportsfromIndiahavegrownataCAGRof~25%overFY1014,benefiting
fromtheenhancedaccesstocustomersandmarketsprovidedbythesesubsidiaries.

Acquisitionsaddstrategicvalue,butmeaningfulfinancialcontributionyet
tocome
OnrealizingtheneedtobeclosertointernationalOEMcustomersandtowidenits
reachwithglobalautomotivecompanies,BHFCembarkedonaseriesofacquisitions
acrossgeographies.Thishelpedittoestablishaninternationalfootprintand
strengthenlongtermrelationshipswithawidercustomerbaseinnewermarkets
whileofferinggreateraccesstotechnology.BHFCnowhascomplementary
manufacturingcapabilities,adiversifiedproductrange,strongfocusonkeymarkets
likeIndia,USandEU.Ithasdevelopedstrongdesignandengineeringcapabilities
andrelationshipswithmorethan35globalOEMsandtierIautomotivecustomers.

GlobalacquisitionsbroadenBHFCshorizon
BHFC
NA

Yearof
acquisition

CDPBF
Nov03

BFAluTech
Dec04

BFAmerica
Jun05

BFKilsta
Sep05

FAWBFJV
Dec05

Equipment
capability

1,600Tonto16,0004,000to8,000TonsAluminumforging
Tonpresslines
presslines
presses

4,000to6,000ton
presslines

2,500to16,000
Tonspresslines

1,600tonto12,500
tonpresslines

Products

Fullspectrum
Strongfocuson
Manufacturerof
productcapabilitypassengercarchassisnichealuminum
withmajorfocusoncomponents
chassiscomponents
CVengineandchasis
componentsand
passengercarengine
component
PassengerCar,CVPassengercar
Aluminum
andNonautomotiverailways,
componentsfor
business
construction
passengercar
equipment
industry
India,USA,Europe&Europe,USA
Europe&USA
China
NA
Profitable
Breakeven

StrongfocusonUS
lighttruckmarket

Significantfocuson
heavydutyengine
componentsand
heavycomponents

Verywide
manufacturing
capabilitywith
completerangeof
forgingequipment

Lighttrucks

Heavycommercial
vehicles

Passengercar,CV,
buses

USA

Europe

China

Closed

Profitable

Exited

Enduser
industry

Regional
focus
Current
Status

Source:Company,MOSL

BHFChasbeenfocusingoneffectivelyintegratingitsglobaloperationsandrealizing
synergiesbetweenitsglobaloperationsthrough(a)sharingof"bestpractices"
acrossitsfacilities,(b)leveragingdifferentcustomerrelationshipsandofferinga
widerportfolioofproducts,(c)integratingR&Dactivitiestoenhancethescopeof
productdevelopmentandreduceproductdevelopmenttime,and(d)cross
fertilizingdifferentplantswithenhancedproductioncapabilities.However,its
acquisitionsareyettocontributemeaningfullytofinancialperformance,with
~40%/8%/1%contributiontoFY13consolidatedrevenues/EBITDA/PAT.
17June2014

25

BharatForge

Snapshotoffinancialsofkeysubsidiaries
CDPBF
INRm

CY08

NetRevenues

10,711

CY13

BFAluTech

CY14E

9,79411,320

BFKilsta

CY15E

CY08

CY13

CY14E

CY15E

CY08

CY13

CY14E

CY15E

13,365

2,810

2,532

2,915

5,176

6,902

5,508

6,358

6,874
669

EBITDA

617

935

1,215

1,538

290

124

176

650

319

378

588

EBITDAMargins(%)

5.8

9.5

10.7

11.5

10.3

4.9

6.0

12.6

4.6

6.9

9.3

9.7

PAT

97

410

589

784

153

30

257

328

20

162

235

Source:Company,MOSL

Trendincontributionofsubsidiariestorevenues,EBITDAandPAT
Revenues

23,139

24,558

27,165

20,153

14,712

14,410

FY07

25,931
21,399

FY08

FY09

FY10

FY11

FY12

FY13

FY14

Source:Company,MOSL

1,7871,822

EBIDTA

PAT

1,327

1,114

811

697

760

432

535

946
44
(154)

(523)
(1,122)

(985)
FY07

FY08

FY09

FY10

FY11

(381)

FY12

FY13

FY07

FY14

FY08

FY09

FY10

FY11

FY12

Source:Company,MOSL

FY13

FY14

Source:Company,MOSL

ExportsfromIndiahavebenefitedfromaccesstomarketsandcustomers
BHFCsacquisitionshavegivenitsIndiaoperationsaccesstocustomers,marketsand
technologies,translatingintorobustexportbusinessfromIndia.Itsexportsfrom
IndiahavegrownataCAGRof~25%overFY1014andcontribute~57%/30%of
standalone/consolidatedrevenues.
BHFCisabletocatertocustomersthroughadualshoremodel.Itsacquisitionsare
playingacriticalroleinacceleratingthepaceofrelationshipbuildingandbusiness
initiation.Acrossbusinesses,ithasbeenputtingincontinuouseffortsfor
upgradationandvalueaddition.Itisleveragingglobalsynergiestogrowthe
businessinaderiskedmannerandmoveupthevaluechainwiththeglobal
customersbyprogressivelydevelopingthesupplypartnershiptothenextlevelof
developmentpartnership.

17June2014

26

BharatForge

BHFCisoneofIndiaslargestengineeringexportersfromIndia,witharelativelydiversified
segmentmix
58

13

13

10

10

Source:CapitalLine,Company,MOSL

ExportsfromIndiahavegrownaCAGRof~26%over
FY1014
ExportsfromIndia(INRm)
66

35

37

59

%ofS/A
59

43
34
25

reflectedinexpansionofstandalonegrossmargins

36

65

33

15
7,10912,19517,34615,83718,48321,99826,24831,344

%ofConsol
66

64

37

37

FY10

FY11

FY12

FY13

FY14

FY15EFY16EFY17E
Source:Company,MOSL

Source:Company,MOSL

17June2014

27

BharatForge

Multipleleverstosupport/improveprofitability
OperatingleverageILimitedcapexIDebtreduction
WeexpectconsolidatedrevenuestogrowataCAGRof~16%overFY1417(adjusted
forFAWJVexit),drivenby22%CAGRinIndiarevenuesand12%CAGRininternational
revenues.
EBITDAmarginshouldexpand~270bpto18%,drivenbyhigherexportsfromIndia,
risingcontributionfromnonautobusinessandmachinedcomponents,andoperating
leverage.
BHFChassufficientcapacitiestodriveover25%revenueCAGRoverthenexttwo
years,necessitatingmaintenancecapexofINR1.5b1.8bperyear.
WeestimatecumulativeFCFgenerationof~INR20bduringFY1517,enabling
reductionofnetdebtto~INR7.7b(netdebtequityof0.2x)from~INR13.4b(netdebt
equityof0.5x)inFY14.
ImprovingassetturnsandprofitabilitywoulddriveimprovementinconsolidatedRoE
to~22%inFY17from17.7%inFY14thehighestRoEsinceFY07.
Significantheadroomtogrowfromcurrentcapacities

Revenuestogrowat~16.6%CAGRoverFY1416
NetRevenues

FixedAssetTurnover(x)
1.6

1.5

1.5
1.2

1.1
0.8

Growth(%)

53

38

23

1.3

1.3
1.1

1.1

11

16
30

0.9

18
30

19
7

Source:Company,MOSL

EBITDAmarginstoimprovetonewhighs(%)
S/A

Source:Company,MOSL

ConsolidatedEPStogrowat30%CAGRoverFY1416

Consol

EPS

Growth(%)RHS
70
40

27
18

21
15

44
20

19

11

67

37

72

Source:Company,MOSL

Source:Company,MOSL

17June2014

28

BharatForge

CapitalefficienciestoimprovetohighestlevelsinceFY07
RoE(%)

27

ImprovingCFO,minimalcapexresultinginstrongFCF(INRb)..

RoCE(%)

CFO

Capex

FCF
6.8

8
18

3.5

4
0

4
0

6.78.7

5.8

3.1
0.5

1.1
0.3
2.2

2.6

Source:Company,MOSL

drivingmeaningfulreductioninnetdebt
NetDebt(INRb)
1.01.0

0.4

0.6

Dividendpersharetoincreasesteadily
NetDebt:Equity(x)

0.8
0.6

Source:Company,MOSL

Dividend(INR/Sh)
91

Payout(%)

0.8
0.5
31

0.4
0.2

2824

32

26

36

28

26

22

21

0.0

Source:Company,MOSL

Source:Company,MOSL

17June2014

29

BharatForge

Valuationsattractiveforgloballeaderinforgings
InitiatecoveragewithBuyratingandtargetpriceof~INR710
BHFCisprimedforrecoveryintheglobalinvestmentcycle.Whilethestockhas

BHFCistradingata
discounttohistorical

outperformedoverthelastsixmonths,thereareseveraltriggersforcontinued

valuations,despite
significanttransformation
initsbusinessmodel

outperformance.
Theseinclude:(a)volumerecoveryledbenefitofoperatingleverage,(b)improving
segmentmix,(c)balancesheetdeleveraging,and(d)improvementincapital
efficiencies.
Valuationsat~17.9x/14.9xFY16/FY17EconsolidatedEPSofINR29/INR37are
attractiveforagloballeaderinforgingsandatadiscounttothe5/10yearaverageof
22x/26x.
WeinitiatecoveragewithaBuyrating.Ourtargetpriceof~INR710(~22xFY16EEPS)
suggestsanupsideof~23%.

FY16performancesensitivitytorevenuegrowth

BHFC:TenyearPEband

Rev.
Growth
(%)

EBITDA
Margins
(%)

EPS
(INR)

PE(x)

TP@22x
PE

90

15.6

22.5

24.8

495

60

10

16.4

26.0

21.5

571

19

17.8

32.3

17.2

711

20

17.9

32.9

17.0

723

25

18.6

36.3

15.3

799

30

19.2

39.8

14.0

875

Source:Company,MOSL

30

P/E(x)

5YrsAvg(x)

10YrsAvg(x)

25.7
21.6

19.4

Source:Bloomberg,MOSL

BHFC:FiveyearEV/EBITDAchart
EV/EBDITA

BHFC:FiveyearP/Bchart
10YrAvg

5YrAvg

8.0

P/B(x)

14
11

10YrsAvg(x)

6.0

10.7
9.8

5YrsAvg(x)

3.8

4.0

9.4

3.8

2.9

2.0
5
0.0

Source:Company,MOSL

Source:Company,MOSL

17June2014

30

BharatForge

Financialsandvaluations
Incomestatement
Y/EMarch
NetSales
Change(%)
TotalExpenditure
%ofSales
EBITDA

(INRMillion)
FY12

FY13

FY14

FY15E

FY16E

FY17E

62,791

51,666

67,161

71,871

85,701

99,280

23.4

17.7

30.0

7.0

19.2

15.8

52,826

43,750

56,890

59,876

70,431

81,231

84.1

84.7

84.7

83.3

82.2

81.8

9,964

7,915

10,271

11,995

15,271

18,049

Margin(%)

15.9

15.3

15.3

16.7

17.8

18.2

Depreciation

3,022

3,195

3,579

3,596

3,802

4,217

EBIT

6,943

4,720

6,693

8,400

11,469

13,833

Int.andFinanceCharges

1,860

1,672

1,692

1,615

1,460

1,434

915

1,121

1,249

1,498

1,556

1,697

5,998

4,169

6,250

8,283

11,565

14,095

OtherIncomeRec.
PBTbef.EOExp.
EOExpense/(Income)

205

807

PBTafterEOExp.

5,998

3,964

7,057

8,283

11,565

14,095

CurrentTax

1,796

1,529

2,100

3,041

4,035

5,033

TaxRate(%)

29.9

38.6

29.8

36.7

34.9

35.7

ReportedPAT

4,202

2,435

4,957

5,242

7,530

9,062

PATAdjforEOitems

4,202

2,561

4,390

5,242

7,530

9,062

Change(%)

39.1

39.1

71.4

19.4

43.7

20.4

Margin(%)

6.7

5.0

6.5

7.3

8.8

9.1

Balancesheet
Y/EMarch

(INRMillion)
FY12

FY13

FY14

FY15E

FY16E

466

466

466

466

466

466

TotalReserves

21,373

22,098

26,367

30,246

36,141

43,296

NetWorth

21,839

22,564

26,832

30,712

36,607

43,762

EquityShareCapital

FY17E

MinorityInterest

1,957

1,643

170

170

170

170

886

1,345

1,645

1,645

1,645

1,645

TotalLoans

27,835

28,249

25,612

23,612

21,612

19,612

CapitalEmployed

52,517

53,800

54,259

56,139

60,034

65,189

GrossBlock

49,798

56,452

60,054

63,184

64,934

66,684

Less:Accum.Deprn.

23,270

26,807

30,386

33,982

37,784

42,000

NetFixedAssets

26,527

29,645

29,668

29,203

27,151

24,684

CapitalWIP

5,168

6,324

1,500

1,750

1,750

1,750

TotalInvestments

4,450

4,160

8,012

8,012

8,012

8,012

Curr.Assets,Loans&Adv.

37,197

34,266

36,165

39,520

47,741

57,595

Inventory

DeferredLiabilities

10,961

11,320

10,386

11,814

14,088

16,320

AccountReceivables

8,134

6,114

8,660

8,861

10,566

12,240

CashandBankBalance

6,337

5,554

4,227

5,049

6,636

9,977

LoansandAdvances

11,765

11,278

12,892

13,796

16,451

19,057

Curr.Liability&Prov.

20,825

20,594

21,086

22,346

24,620

26,852

Creditors

11,789

9,511

10,554

11,814

14,088

16,320

OtherCurrentLiabilities

6,462

8,950

7,526

7,526

7,526

7,526

Provisions

2,575

2,133

3,006

3,006

3,006

3,006

NetCurrentAssets

16,372

13,672

15,079

17,174

23,121

30,743

Appl.ofFunds

52,517

53,800

54,259

56,139

60,034

65,189

E:MOSLEstimates

17June2014

31

BharatForge

Financialsandvaluations
Ratios
Y/EMarch

FY12

FY13

FY14

FY15E

FY16E

FY17E

EPS

18.0

11.0

18.9

22.5

32.3

38.9

CashEPS

31.0

24.7

34.2

38.0

48.7

57.0

BV/Share

93.8

96.9

115.2

131.9

157.2

187.9

Basic(INR)*

DPS

4.0

3.4

4.5

5.0

6.0

7.0

25.8

38.0

24.7

26.0

21.7

21.0

P/E

30.7

25.7

17.9

14.9

CashP/E

16.9

15.3

11.9

10.2

P/BV

5.0

4.4

3.7

3.1

EV/Sales

2.3

2.1

1.7

1.5

15.2

12.8

9.8

8.0

0.8

0.9

1.0

1.2

Payout(%)
Valuation(x)*

EV/EBITDA
DividendYield(%)
ReturnRatios(%)
RoE

20.0

11.7

17.9

18.2

22.4

22.6

RoCE

17.8

11.6

15.4

18.5

23.1

25.5

FixedAssetTurnover(x)

1.3

0.9

1.1

1.1

1.3

1.5

AssetTurnover(x)

1.2

1.0

1.2

1.3

1.4

1.5

Inventory(Days)

64

80

56

60

60

60

Debtor(Days)

47

43

47

45

45

45

Creditor(Days)

69

67

57

60

60

60

WorkingCapitalTurnover(Days)

58

57

59

62

70

76

Sales

23.4

17.7

30.0

7.0

19.2

15.8

EBITDA

26.9

20.6

29.8

16.8

27.3

18.2

PAT

39.8

37.0

69.8

18.6

43.7

20.4

CurrentRatio

1.8

1.7

1.7

1.8

1.9

2.1

Debt/Equity
*Adjustedfortreasurystocks

1.3

1.3

1.0

0.8

0.6

0.4

WorkingCapitalRatios

Growth(%)

LeverageRatio(x)

Cashflowstatement
Y/EMarch
NP/(Loss)bfeTax&EOItems

(INRMillion))
FY12
5,995

FY13
3,919

FY14
6,693

FY15E
8,400

FY16E
11,469

FY17E
13,833

Depreciation

3,022

3,360

3,579

3,596

3,802

4,217

DirectTaxesPaid

1,710

1,193

1,801

3,041

4,035

5,033

(Inc)/DecinWC

2,307

385

2,733

1,274

4,360

4,281

CFfromOperations

5,000

5,701

5,737

7,681

6,876

8,735

EOExpense

2,373

2,456

588

1,498

1,556

1,697

CFfromOperatinginclEO

7,372

8,157

6,325

9,179

8,432

10,433

CFfromInvestments

10,843

2,896

2,606

3,380

1,750

1,750

Inc/(Dec)inDebt

7,902

454

2,637

2,000

2,000

2,000

InterestPaid

1,940

2,111

1,692

1,615

1,460

1,434

DividendPaid

1,343

949

1,226

1,362

1,635

1,907

CFfromFin.Activity

4,619

3,513

5,045

4,977

5,095

5,341

Inc/DecofCash

1,148

1,748

1,326

821

1,587

3,341

Add:BeginningBalance

1,197

2,345

4,093

2,767

3,588

5,175

ClosingBalance

2,345

4,093

2,767

3,588

5,175

8,517

E:MOSLEstimates

17June2014

32

BharatForge

NOTES

17June2014

33

Disclosures

BharatForge

Thisreportisforpersonalinformationoftheauthorizedrecipientanddoesnotconstruetobeanyinvestment,legalortaxationadvicetoyou.Thisresearchreportdoesnotconstituteanoffer,invitationor

inducementtoinvestinsecuritiesorotherinvestmentsandMotilalOswalSecuritiesLimited(hereinafterreferredasMOSt)isnotsolicitinganyactionbaseduponit.Thisreportisnotforpublicdistribution
andhasbeenfurnishedtoyousolelyforyourinformationandshouldnotbereproducedorredistributedtoanyotherpersoninanyform.
Unauthorizeddisclosure,use,disseminationorcopying(eitherwholeorpartial)ofthisinformation,isprohibited.ThepersonaccessingthisinformationspecificallyagreestoexemptMOStoranyofits
affiliatesoremployeesfrom,anyandallresponsibility/liabilityarisingfromsuchmisuseandagreesnottoholdMOStoranyofitsaffiliatesoremployeesresponsibleforanysuchmisuseandfurtheragrees
toholdMOStoranyofitsaffiliatesoremployeesfreeandharmlessfromalllosses,costs,damages,expensesthatmaybesufferedbythepersonaccessingthisinformationduetoanyerrorsanddelays.
Theinformationcontainedhereinisbasedonpubliclyavailabledataorothersourcesbelievedtobereliable.Whilewewouldendeavourtoupdatetheinformationhereinonreasonablebasis,MOStand/or
itsaffiliatesareundernoobligationtoupdatetheinformation.Alsotheremayberegulatory,compliance,orotherreasonsthatmaypreventMOStand/oritsaffiliatesfromdoingso.MOStoranyofits
affiliatesoremployeesshallnotbeinanywayresponsibleandliableforanylossordamagethatmayarisetoanypersonfromanyinadvertenterrorintheinformationcontainedinthisreport.MOStorany
ofitsaffiliatesoremployeesdonotprovide,atanytime,anyexpressorimpliedwarrantyofanykind,regardinganymatterpertainingtothisreport,includingwithoutlimitationtheimpliedwarrantiesof
merchantability,fitnessforaparticularpurpose,andnoninfringement.Therecipientsofthisreportshouldrelyontheirowninvestigations.
Thisreportisintendedfordistributiontoinstitutionalinvestors.Recipientswhoarenotinstitutionalinvestorsshouldseekadviceoftheirindependentfinancialadvisorpriortotakinganyinvestmentdecision
basedonthisreportorforanynecessaryexplanationofitscontents.

MOStand/oritsaffiliatesand/oremployeesmayhaveinterests/positions,financialorotherwiseinthesecuritiesmentionedinthisreport.Toenhancetransparency,MOSthasincorporatedaDisclosureof
InterestStatementinthisdocument.Thisshould,however,notbetreatedasendorsementoftheviewsexpressedinthereport.
DisclosureofInterestStatement

BHARATFORGE

1.Analystownershipofthestock

No

2.Group/Directorsownershipofthestock
3.Brokingrelationshipwithcompanycovered

No
No

4.InvestmentBankingrelationshipwithcompanycovered

No

AnalystCertification
Theviewsexpressedinthisresearchreportaccuratelyreflectthepersonalviewsoftheanalyst(s)aboutthesubjectsecuritiesorissues,andnopartofthecompensationoftheresearchanalyst(s)was,is,
orwillbedirectlyorindirectlyrelatedtothespecificrecommendationsandviewsexpressedbyresearchanalyst(s)inthisreport.Theresearchanalysts,strategists,orresearchassociatesprincipally
responsibleforpreparationofMOStresearchreceivecompensationbaseduponvariousfactors,includingqualityofresearch,investorclientfeedback,stockpicking,competitivefactorsandfirmrevenues.

RegionalDisclosures(outsideIndia)
Thisreportisnotdirectedorintendedfordistributiontoorusebyanypersonorentityresidentinastate,countryoranyjurisdiction,wheresuchdistribution,publication,availabilityorusewouldbecontrary
tolaw,regulationorwhichwouldsubjectMOSt&itsgroupcompaniestoregistrationorlicensingrequirementswithinsuchjurisdictions.

ForU.K.
ThisreportisintendedfordistributiononlytopersonshavingprofessionalexperienceinmattersrelatingtoinvestmentsasdescribedinArticle19oftheFinancialServicesandMarketsAct2000(Financial
Promotion)Order2005(referredtoas"investmentprofessionals").Thisdocumentmustnotbeactedonorreliedonbypersonswhoarenotinvestmentprofessionals.Anyinvestmentorinvestmentactivity
towhichthisdocumentrelatesisonlyavailabletoinvestmentprofessionalsandwillbeengagedinonlywithsuchpersons.

ForU.S.
MotilalOswalSecuritiesLimited(MOSL)isnotaregisteredbrokerdealerundertheU.S.SecuritiesExchangeActof1934,asamended(the"1934act")andunderapplicablestatelawsintheUnited
States.InadditionMOSLisnotaregisteredinvestmentadviserundertheU.S.InvestmentAdvisersActof1940,asamended(the"AdvisersAct"andtogetherwiththe1934Act,the"Acts),andunder
applicablestatelawsintheUnitedStates.Accordingly,intheabsenceofspecificexemptionundertheActs,anybrokerageandinvestmentservicesprovidedbyMOSL,includingtheproductsandservices
describedhereinarenotavailabletoorintendedforU.S.persons.
Thisreportisintendedfordistributiononlyto"MajorInstitutionalInvestors"asdefinedbyRule15a6(b)(4)oftheExchangeActandinterpretationsthereofbySEC(henceforthreferredtoas"major
institutionalinvestors").Thisdocumentmustnotbeactedonorreliedonbypersonswhoarenotmajorinstitutionalinvestors.Anyinvestmentorinvestmentactivitytowhichthisdocumentrelatesisonly
availabletomajorinstitutionalinvestorsandwillbeengagedinonlywithmajorinstitutionalinvestors.InrelianceontheexemptionfromregistrationprovidedbyRule15a6oftheU.S.SecuritiesExchange
Actof1934,asamended(the"ExchangeAct")andinterpretationsthereofbytheU.S.SecuritiesandExchangeCommission("SEC")inordertoconductbusinesswithInstitutionalInvestorsbasedinthe
U.S.,MOSLhasenteredintoachaperoningagreementwithaU.S.registeredbrokerdealer,MotilalOswalSecuritiesInternationalPrivateLimited.("MOSIPL").Anybusinessinteractionpursuanttothis
reportwillhavetobeexecutedwithintheprovisionsofthischaperoningagreement.

TheResearchAnalystscontributingtothereportmaynotberegistered/qualifiedasresearchanalystwithFINRA.SuchresearchanalystmaynotbeassociatedpersonsoftheU.S.registeredbroker
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researchanalystaccount.

ForSingapore
MotilalOswalCapitalMarketsSingaporePteLimitedisactingasanexemptfinancialadvisorundersection23(1)(f)oftheFinancialAdvisersAct(FAA)readwithregulation17(1)(d)oftheFinancial
AdvisorsRegulationsandisasubsidiaryofMotilalOswalSecuritiesLimitedinIndia.ThisresearchisdistributedinSingaporebyMotilalOswalCapitalMarketsSingaporePteLimitedanditisonlydirected
inSingaporetoaccreditedinvestors,asdefinedintheFinancialAdvisersRegulationsandtheSecuritiesandFuturesAct(Chapter289),asamendedfromtimetotime.
InrespectofanymatterarisingfromorinconnectionwiththeresearchyoucouldcontactthefollowingrepresentativesofMotilalOswalCapitalMarketsSingaporePteLimited:
AnoshKoppikar

KadambariBalachandran

Email:anosh.Koppikar@motilaloswal.com

Email:kadambari.balachandran@motilaloswal.com

Contact(+65)68189232

Contact:(+65)68189233/65249115

OfficeAddress:21(Suite31),16CollyerQuay,Singapore04931

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Phone:+912239825500Email:reports@motilaloswal.com
17June2014

34

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