INDIA DAILY November 11, 2010 India 10-Nov 1-day1-mo 3-mo

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1 Contents Results Bharti Airtel: Volume X pricing = revenues; revenues - costs = EBITDA DLF: FY2011E sales plan lowered, leasing activity is better than expected Power Finance Corporation: Loan growth remains strong Hindalco: Another strong quarter for Novelis, raise estimates and TP BPCL: Good results boosted by cash bounty INDIA DAILY November 11, 2010 India 10-Nov 1-day1-mo 3-mo GMR Infrastructure: Low per pax revenues and capacity costs impact near-term results Divis Laboratories: Another weak quarter, maintain REDUCE with lower PT Sensex 20, (0.7) 0.3 Nifty 5, (0.7) 0.6 Global/Regional indices Dow Jones 10, (6.1) (1.8) Nasdaq Composite 2, (5.0) 0.5 FTSE 5, (3.7) (5.7) Nikkie 9, (10.1) (2.0) Hang Seng 19, (4.7) (3.8) KOSPI 1, (2.9) 3.1 Value traded India Cash (NSE+BSE) Derivatives (NSE) Deri. open interest 1,190 1,078 1,008 Nagarjuna Construction: In-line results marred by working capital led balance sheet deterioration Apollo Hospitals: Set for higher growth News Round-up Auto cos. on a high again, car sales zoomed 38%, two wheelers follow suit with 50% sales growth, lower borrowing cost, new models propel demand in Oct. (ECNT) Shriram Transport (SHTF IN) to seek banking licence. (BSTD) Essar Oil (ESOIL IN) to expand Vadinar refinery capacity. Demand for products seen growing. (THBL) Allahabad Bank (ALBK IN) plans more overseas branches. Shanghai, Dhaka offices within a year. (THBL) Parsvnath (PARSV IN) plans to raise USD 23 mn via private equity. (FNLE) Pfizer (PFIZ IN) has recalled a drug made by an Indian partner from the US market while another local partner has received a warning from USFDA for violating manufacturing norms. (ECNT) Gujarat NRE Coke (GNC IN) promoters AK Jagatramka have been punished with a fine of USD 0.44mn for insider trading, the biggest by SEBI this year for such offence. (ECNT) IndiaBulls Real Estate (IBREL IN) has paid the first instalment of USD mn to National Textiles Corp for a 10.5 acres plot comprising Poddar & Bharat Mill in Worli. (ECNT) Jaypee Associates looks to raise USD 500mn through equity sale in Jaiprakash Power Ventures in (ECNT) Hindustan Copper (HCP IN) which is set to launch a follow-on offer, is eyeing around USD mn by selling by-products from its mines at Malanjkhand in Madhya Pradesh & Khetri in Rajasthan. (TTOI) HCL Infosystems (HCLI IN) has entered into a agreement with Mercator, the IT division of the Emirates Group, to manage IT enabled infrastructure for low-cost airline flydubai. (TTOI) Forex/money market Change, basis points 3-Jun 1-day 1-mo 3-mo Rs/US$ 46.7 (28) yr govt bond, % (47) (40) Net investment (US$mn) 2-Jun MTD CYTD FIIs (27) (101) (230) MFs (3) - (282) Top movers -3mo basis Change, % Best performers 3-Jun 1-day 1-mo 3-mo BJFIN IN Equity IBULL IN Equity (0.8) (3.6) 26.8 BOB IN Equity DRRD IN Equity (0.7) AL IN Equity Worst performers ABAN IN Equity (39.0) (44.2) NMDC IN Equity (0.3) (7.4) (37.1) GRASIM IN Equity (30.9) (35.9) PUNJ IN Equity (25.6) (34.0) SUEL IN Equity (18.9) (28.8) Source: ECNT= Economic Times, BSTD = Business Standard, FNLE = Financial Express, THBL = Business Line. For Private Circulation Only. FOR IMPORTANT INFORMATION ABOUT KOTAK SECURITIES RATING SYSTEM AND OTHER DISCLOSURES. REFER TO THE END OF THIS MATERIAL.

2 Bharti Airtel (BHARTI) Telecom Volume X pricing = revenues; revenues costs = EBITDA. Bharti reported a weak quarter with India wireless performance the key disappointment, even on a seasonalityadjusted basis. We continue to see competition-led structural pressure sustaining in the Indian wireless sector and would be wary of extrapolating any short-term trends, whatsoever. Early days as far as Africa foray and 3G impact are concerned, but Street s optimism on these poses downside risks, in our view. Reiterate REDUCE. REDUCE NOVEMBER 10, 2010 RESULT Coverage view: Cautious Price (Rs): 327 Target price (Rs): 305 BSE-30: 20,876 Company data and valuation summary Bharti Airtel Stock data Forecasts/Valuations E 2012E 52-week range (Rs) (high,low) EPS (Rs) Market Cap. (Rs bn) 1,242.0 EPS growth (%) 5.8 (26.9) 17.9 Shareholding pattern (%) P/E (X) Promoters 67.9 Sales (Rs bn) FIIs 17.6 Net profits (Rs bn) MFs 3.8 EBITDA (Rs bn) Price performance (%) 1M 3M 12M EV/EBITDA (X) Absolute (7.3) ROE (%) Rel. to BSE-30 (10.1) (12.3) (12.2) Div. Yield (%) Don t lose the forest for the trees In an industry still mired with network over-capacity and meaningful capital commitments from at least 7 large players, it would be wise to look beyond specific quarterly data points and focus on structural issues, in our view. Before we get into what we believe are the structural challenges facing the industry, here is why we believe focus on individual data points masks the big picture Volume X pricing = revenues; revenues costs = EBITDA; higher volumes = higher costs. Not attempting to be cheeky, here is how yoy growth numbers for Bharti s India wireless business stacked up in 2QFY11 subscriber base up 30%, network traffic up 33%, revenues up 6.2%, and EBITDA down 7%. Even as it is easy to be excited about the RPM movement (decline of 1% qoq, lowest in several quarters) in 2QFY11 (as was the case with strong volume growth in 1QFY11), we believe any movement in individual volume, pricing, and cost metrics is not positive if it does not deliver the revenue/ebitda growth one is paying for (at 7.3X FY2012E EV/EBITDA, Bharti is on the expensive side of global or EM telco valuations). 2QFY11 results weak on most parameters; see downside risk to Street estimates for FY2012E Revenues of Rs152 bn were 3% below estimate, EBITDA of Rs51.2 bn fell 7% short, while net income of Rs16.6 bn missed our estimate by 12%. We note that Bharti benefitted from MTM forex gains of Rs2.5 bn (versus Rs2.2 bn loss in the previous quarter) for 2QFY11. Also, Bharti s 2QFY11 results reflect the first quarter of full impact of Zain despite the low interest cost on acquisition borrowing, Bharti s net income for 2QFY11 was 18.7% lower than 4QFY10. Disappointment was led by weakness in India wireless business. As discussed above, it is easy to put a positive spin of these numbers by focusing on specific metrics last quarter, it was minutes growth and elasticity, and this quarter it is deceleration in RPM fall. To us, the bottom line is that Bharti has struggled to grow its India wireless revenue or EBITDA base since the rise in competitive intensity in the sector. We also note that Bharti has been capitalizing 3G-related charges and these would start impacting the P&L 4QFY11E onwards (3G revenue/ EBITDA kicker will happen, but with a lag). We see risks to even our lower-than-consensus EPS estimate of Rs20.4 for FY2012E if India wireless EBITDA trajectory fails to improve or Africa business misses our optimistic estimates. For private Circulation Only. FOR IMPORTANT INFORMATION ABOUT KOTAK SECURITIES RATING SYSTEM AND OTHER DISCLOSURES, REFER TO THE END OF THIS MATERIAL.

3 Bharti Airtel Telecom Competition is a structural issue; be wary of extrapolating short-term trends Weak volume growth (even seasonality-adjusted) for incumbents in 2QFY11 drives home another important point extrapolating short-term trends is fraught with risk. The Rs860 mn absolute incremental revenue add reported by Uninor for the quarter (when the incumbents Bharti, Vodafone, and Idea reported absolute declines) clearly suggests that incremental traffic/revenue share trends in the industry are likely to remain volatile till the industry finds some equilibrium, through consolidation or otherwise (not happening soon, in our view). We believe it is critical to appreciate the structural over-capacity issue with the industry. The Indian wireless market has 7 players with substantial capital committed and reasonable balance sheets more importantly, all of these increased their capital commitment meaningfully in the 3G sweepstakes. Discounting a competition that forced Bharti s hand on 3G auctions (it had to quash its pan-india 3G ambition) is something we are not ready to do, yet. We remain Cautious on the sector. Bharti remains the best on execution and market positioning, but industry challenges and rich valuations keep us negative on the stock. Reiterate REDUCE. 2QFY11 RESULTS DETAILED ANALYSIS Consolidated results fall short of expectations Bharti s reported revenues and EBITDA of Rs152 bn and Rs51 bn fell 2.7% and 7.3% short of our expectations, respectively. Revenue and EBITDA disappointment at consol level was lead by India and South Asia wireless business with an absolute decline in revenues (missing our estimates by 3.8%) and an EBITDA margin decline of 70 bps to 35.2%. We note that 2QFY11 financials are not strictly comparable on a qoq or yoy basis, as this was the first full quarter consolidation of Africa operations (versus 23 days for 1QFY11). On a consolidated basis, EBITDA margin declined 240 bps to 33.7% partially impacted by full quarter consolidation of Africa business (EBITDA margins of 23.9%). Reported net income of Rs16.6 bn was aided by a forex gain of Rs2.5 bn (net income, although not comparable, was flat qoq despite a positive forex swing of Rs4.7 bn at the PBT level). Wireless (India and South Asia) segment weak quarter, more than seasonality Seasonality is only partly to blame for an absolute decline in wireless segment revenues and flat quarter on volume of minutes carried. Though not a surprise after a weak quarter on revenues and volumes reported by other incumbents (Vodafone and Idea), volume growth was weakest for Bharti at 0.2% versus 1.6% for Vodafone and 3.1% for Idea. Bharti reported India and South Asia wireless revenues of Rs88 bn (-0.2% qoq, 6.2%yoy) and an EBITDA of Rs31 bn (a decline of 2.4% qoq and 7% yoy). EBITDA margins for the wireless segment declined by 70 bps to 35.2, impacted by (1) wage revisions and (2) negative operating leverage as revenues were flat despite a cell site addition of 4,644 (+4.4% qoq). On operational metrics, RPM declined 0.9% to Rs0.444/ min versus our estimate of a 2% decline. Better-than-expected RPM was negated by volume miss, however, and ARPU fell substantially short of our estimate. ARPU of Rs202/sub/month was down 6.2% qoq and 19.9% yoy while MOU of 454min/sub/month was down 5.4% qoq and up 1% yoy. Bharti s results exhibit the volatility of incremental traffic/revenue share trends in the industry, 1QFY11 belonged to the incumbents while in 2QFY11 a new player like Uninor added Rs860 mn of incremental revenues while the incumbents (Bharti, Idea and Vodafone) posted an absolute decline in wireless revenues. KOTAK INSTITUTIONAL EQUITIES RESEARCH 3

4 Telecom Bharti Airtel Non-voice revenues as % of total revenues increased to 12.7% from 11.6% last quarter. Although subscriber numbers are not of much importance, Bharti s market share of net adds was just 12.8%, lowest for the company in several years an indication of increased market push by other players. Network expansion was strong this quarter with a capex of Rs15.6bn. 4,644 cell sites were added in 2QFY11 after a few weak quarters of network rollout which was impacted by network equipment ban. Telemedia segment weaker-than-expected revenues but margins improve Bharti s Telemedia segment reported revenues of Rs9.1 bn, up 1.8% qoq and 6.7% yoy, slightly below our estimates. ARPU declined marginally by 0.8% to Rs954. EBITDA margin improved by 210 bps to 46.1% leading to an EBITDA of Rs4.2 bn (+6.7% qoq, +15.7% yoy), 3.9% higher than our estimate. Enterprise segment revenues miss, margins surprise The company reported revenues of Rs10.4 bn (+2.3% qoq, -8.2% yoy) missing our estimates by 3.5%. EBTIDA margins improved by 20 bps qoq to 24.7% versus our expectation of 70 bps decline. EBITDA of Rs2.6 bn was up 3% qoq but down 18% yoy. Passive infrastructure segment strong margin performance With the move to IFRS, Bharti now consolidates Indus line by line on a proportionate basis. Revenues for this segment (standalone Bharti Infratel plus 42% of Indus) grew 3.7% qoq to Rs21.2 bn. EBITDA margins for the quarter were up 160 bps to 37.1%. The pace of roll-out of towers was good with Indus rolling out ~1,500 towers while Bharti Infratel standalone rolling out ~600 towers. More importantly, rental per tenant for Indus increased 3.3% qoq to Rs31,389/month we are slightly surprised with the faster-than-expected increase in this metric qoq (see Exhibit 3). Bharti Africa (earlier Zain Africa) early days, reasonable beginning 2QFY11 was the first full quarter consolidation of Bharti Africa performance was weaker than expected with like on like revenue growth of 4%. More importantly, Africa wireless margins fell 360 bps to 23.9% clearly impacted by Bharti s aggressive tariff moves in a few operating countries in Africa and increased spending on sales and marketing. Tariff moves did aid Bharti report a sharp 15% qoq minutes growth in Africa. MOU increased to 112 min/sub/month from 103 in 1QFY11 while RPM declined by 8.3% to 6.6 US cents and ARPU was flat at US$7.4 /sub/month. Recent aggressive tariff moves have helped Bharti to gain subscribers with net addition of 3.7 mn subs in 2QFY11. Bharti Africa has a network footprint of 10,998 sites. Net loss for the Africa operations was Rs1.1 bn, an improvement from the Rs700 mn reported for 23 days in the previous quarter. Other highlights Capex for the quarter was Rs33 bn taking 1HFY11 capex to Rs46.7 bn, 35% of the company s guided capex of US$3 bn for FY2011E. Even as capex intensity picked up in the India wireless business (Bharti rolled out 4,644 sites during the quarter), Africa capex was low at Rs3.8 bn YTD FY2011 capex has been Rs4.7 bn, 13% of Bharti s guidance of US$800 mn Africa capex for FY2011E. Effective tax rate increased substantially to 25.5% versus 18% in the previous quarter. The company attributed the same to Zain consolidation ETR for African operations is higher on account of losses in certain operating countries. Bharti indicated that as a prudent accounting policy, it is not creating deferred tax asset in some of these lossmaking entities and will continue not to, till it is reasonably certain of turning profitable in these entities. The company indicated the start of MNP rollout with the Haryana circle this month; new deadline for pan-india rollout is Jan 19, KOTAK INSTITUTIONAL EQUITIES RESEARCH

5 Bharti Airtel Telecom EARNINGS MODEL CHANGES Exhibit 2 summarizes the key changes to our earnings model. Our revised consolidated revenues for FY2011E, 12E and 13E stand at Rs608 bn, Rs730 bn, and Rs819 bn, respectively. Revised EBITDA estimates are Rs208 bn, Rs259 bn, and Rs299 bn for the three years. We now forecast an EPS of Rs17.3/share for FY2011E, Rs20.4/share for FY2012E, and Rs24/share for FY2013E. We note the key drivers for estimate changes 2QFY11 miss weighs heavy on FY2011E estimate cuts. For FY2012E, we broadly maintain our revenue and EBITDA estimates for the India business, while reducing our estimates for the Africa business marginally. Our medium-term revenue estimates (FY E) are up a marginal 1-3% as we take a more positive view on the 3G-led data upside in the India wireless business. This also drives a modest increase in our EBITDA estimates for these years. For the India wireless business, we have reduced our SIM-cards-in-use (or subscribers) estimates by 2-3% across the forecast period to reflect Bharti s stated focus on reducing focus on the low end of the market. This also results in an upward revision in subscriberbased metrics (ARPU and MOU); our long-term ARPU estimates are up ~5% to Rs194 (from Rs186 earlier). Reiterate REDUCE with end-fy2012e target price of Rs305/share We maintain our DCF based end-fy2012e target price of Rs305/share on the stock. At our target price, the stock would trade at 6.9X FY2012E EV/EBITDA we note that this implies a ~20% premium to average EM wireless valuations. We reiterate our Cautious coverage view on the sector and REDUCE rating on Bharti. KOTAK INSTITUTIONAL EQUITIES RESEARCH 5

6 Telecom Bharti Airtel Exhibit 1: Bharti 2QFY11E performance, IFRS, March fiscal year-ends (Rs mn) Change (Rs mn) 2QFY10 1QFY11 2QFY11 qoq yoy 2QFY11E Deviation (%) Consolidated results Revenues 103, , , ,400 (2.7) Operating costs (60,778) (78,168) (100,938) (101,160) EBITDA 43,007 44,140 51, ,241 (7.3) EBITDA margin (%) Depreciation and Amortization (15,246) (19,467) (25,790) (26,360) EBIT 27,761 24,673 25, (8.4) 28,880 (12.0) EBIT margin (%) Net finance (cost)/income (2,085) (4,197) (3,318) (5,570) Other non-financial income/(expense) (151) PBT 25,863 20,791 22, (13.9) 23,159 (3.8) Tax provision (2,753) (3,750) (5,678) (4,045) PAT before minority interest 23,110 17,041 16,592 19,114 Minority interest (477) (153) 23 (187) Equity in earnings of affiliates (6) (72) (2) (48) Reported net income 22,627 16,816 16,613 (1.2) (26.6) 18,878 (12.0) Reported EPS Segmental performance Wireless - India and SA Revenues 82,902 88,237 88,045 (0.2) ,541 (3.8) EBITDA 33,310 31,710 30,964 (2.4) (7.0) 32,497 (4.7) OPM (%) ARPU (Rs/sub/month) (6.2) (19.9) 211 (4.1) MOU (min/sub/month) (5.4) (5.4) RPM (Rs/min) (0.9) (20.7) EPM (Rs/min) (2.5) (30.0) Total minutes (bn) (5.5) Bharti Africa Revenues (b) 37,915 38, ,249 (3.3) EBITDA (b) 10,425 9,311 (10.7) 11,270 EBITDA margin (%) Subscribers (mn) 36,362 40,082 Total mintues (bn) 11,085 12, ARPU (US$/sub/month) MOU (min/sub/month) RPM (US$ cents/month) (8.3) Telemedia services Revenues 8,543 8,960 9, ,184 (0.7) EBITDA 3,646 3,938 4, , OPM (%) Long distance + Enterprise Revenues 11,355 10,186 10, (8.2) 10,797 (3.5) EBITDA 3,141 2,497 2, (18.1) 2,591 (0.8) OPM (%) Passive infra business Revenues 17,049 20,412 21, ,657 (2.3) EBITDA 5,831 7,240 7, , OPM (%) Others Revenues 1,290 1,949 2, , EBITDA (2,463) (2,359) (2,714) (2,409) 12.7 OPM (%) (190.9) (121.0) (120.1) (120.0) Other Africa - holding investments in mobile operatins in Africa Total revenues EBITDA (919) (322) (65.0) EBITDA margin (%) Note: (a) Mobile Africa financials for 1QFY11 are for 23 days for the quarter in the consolidated results (b) In the segmental results, Bharti Africa financials are prorated for 91 days using the reported financials for 23 days for comparision Source: Company, Kotak Institutional Equities estimates 6 KOTAK INSTITUTIONAL EQUITIES RESEARCH

7 Bharti Airtel Telecom Exhibit 2: Summary of key changes to the Bharti model FY E, March fiscal year-ends FY2010 FY2011E FY2012E FY2013E FY2014E FY2015E FY2016E FY2017E Consolidated Revenues old 418, , , , , , ,188 1,034,097 Revenues new 418, , , , , ,388 1,015,086 1,067,685 Revision (%) (1.9) EBITDA old 167, , , , , , , ,378 EBITDA new 167, , , , , , , ,735 Revision (%) - (4.8) (0.9) EPS old EPS new Revision (%) (13.4) (1.7) (0.7) (2.9) (1.5) (2.0) (2.2) Capex old 151, , , , , , ,416 Capex new 153, , , , , , ,861 Revision (%) India wireless business Bharti mobile subs old 127, , , , , , , ,409 Bharti mobile subs new 127, , , , , , , ,585 Revision (%) (2.0) (2.6) (2.9) (3.1) (3.2) (3.2) (3.3) Blended ARPU old Blended ARPU new Revision (%) (1.4) RPM estimate old RPM estimate new Revision (%) (1.3) (2.0) (2.0) (2.0) (2.0) MOU estimate old MOU estimate new Revision (%) (2.9) Total minutes carried old ,057 1,125 1,175 1,214 1,243 Total minutes carried new ,092 1,165 1,216 1,255 1,284 Revision (%) (4.0) India and SA wireless revenues old 331, , , , , , , ,611 India and SA wireless revenues new 331, , , , , , , ,073 Revision (%) (2.2) India & SA wireless EBITDA margin old India & SA wireless EBITDA margin new Revision (bps) (16) (13) (65) (62) (26) 1 15 India and SA wireless capex old 59,039 73,848 68,912 64,618 65,625 67,811 69,955 India and SA wireless capex new 64,488 77,183 69,665 60,441 61,600 64,139 66,361 Revision (%) (6.5) (6.1) (5.4) (5.1) Bharti Africa business Revenues old (Rs mn) 138, , , , , , ,409 Revenues new (Rs mn) 132, , , , , , ,058 Revision (%) (4.2) (1.7) EBITDA margin old (%) EBITDA margin new (%) Revision (bps) (340) (147) (34) (32) (32) (60) (65) Source: Kotak Institutional Equities estimates KOTAK INSTITUTIONAL EQUITIES RESEARCH 7

8 Telecom Bharti Airtel Exhibit 3: Movement in monthly sharing revenue per tenant for Indus 40, Monthly rental per tenant (Rs/month) 32,000 24,000 16,000 8,000 - Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep qoq change (%) Source: Company, Kotak Institutional Equities Exhibit 4: Segmental profit and loss statement for India/South Asia and Africa business, fiscal year-ends March, Rs mn India and South Asia Africa Africa others Consolidated 1QFY11 2QFY11 1QFY11 2QFY11 1QFY11 2QFY11 1QFY11 2QFY11 Revenues 112, ,312 9,583 38, , ,218 Access and interconnect charges 12,775 12,372 1,452 6,513-14,227 18,885 Licence fees, revenue share & spectrum charges 11,742 11,525-1,015 11,742 12,540 Network operating costs 25,550 26,302 1,718 6,863 27,268 33,165 Employee costs 4,721 5, , ,601 8,835 SG&A expense 15,513 15,801 2,898 11, ,330 27,582 Total operating expense 70,301 71,090 6,948 29, , ,007 EBITDA 42,424 42,222 2,635 9,311 (919) (322) 44,140 51,211 Depreciation & ammortization 17,483 18,239 1,984 7,551-19,467 25,790 EBIT 24,941 23, ,760 (919) (322) 24,673 25,421 Finance cost 766 1, , ,399 2,037 5,813 Forex gain / (loss) (1,425) 1,721 (739) (5) (2,161) 2,494 Other income / expense (258) (231) PBT 23,008 24,469 (754) 521 (1,535) (2,726) 20,719 22,265 Tax expense 3,687 3, ,876-3,750 5,678 Minority / share of associates (120) (292) 153 Net Income 19,048 20,398 (697) (1,063) (1,535) (2,726) 16,816 16,610 As % of revenues Access and interconnect charges Licence fees, revenue share & spectrum charges Network operating costs Employee costs SG&A expense Total operating expense EBITDA Tax rate (as % of PBT) (8.4) Source: Company, Kotak Institutional Equities 8 KOTAK INSTITUTIONAL EQUITIES RESEARCH

9 Bharti Airtel Telecom Exhibit 5: Our end-march 2012E DCF-based price target for Bharti Airtel is Rs305/share Discounted cash flow value for Bharti Airtel (Rs mn) 2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E EBITDA 208, , , , , , , , , , ,293 Depreciation (101,536) (131,305) (148,824) (164,337) (178,511) (192,103) (205,448) (218,536) (231,144) (243,182) (254,694) EBIT 106, , , , , , , , , , ,599 Capex (153,756) (188,240) (175,338) (164,100) (162,661) (165,487) (170,861) (173,959) (175,238) (176,694) (179,080) Taxes (19,657) (20,278) (27,935) (35,418) (42,612) (50,252) (56,832) (63,684) (70,979) (78,686) (86,952) Change in working capital 78,321 11,070 (2,331) (9,844) (2,027) (4,608) (7,015) (8,639) (10,247) (11,790) (13,148) Free cash flow 113,289 61,782 93, , , , , , , , ,113 FCF growth (%) (45.5) Discounted FCF 61,782 82,910 95, , ,341 98,237 92,238 86,631 80,553 74,177 # of periods Discount factor Terminal growth (%) 4.0 WACC (%) 12.5 Exit FCF multiple (X) 12.2 Exit EBITDA multiple (X) 5.3 End-FY2012E DCF PV of explicit cash flows 884,313 49% PV of terminal value 907,578 51% EV 1,791,890 Net debt 631,722 Equity value 1,160,168 # of shares outstanding 3,798 Equity value per share (Rs/share) 306 Key assumptions (%) Revenue growth EBITDA growth EBITDA margin Capex/sales Return on avg. capital employed Source: Kotak Institutional Equities estimates KOTAK INSTITUTIONAL EQUITIES RESEARCH 9

10 Telecom Bharti Airtel Exhibit 6: Bharti - condensed financials, IFRS, March fiscal year-ends (Rs mn) E 2012E 2013E 2014E 2015E 2016E 2017E Profit and loss statement Revenues 418, , , , , ,388 1,015,086 1,067,685 EBITDA 167, , , , , , , ,735 EBIT 104, , , , , , , ,287 PBT 105,136 85,467 96, , , , , ,973 Recurring PAT 89,765 65,657 77,410 91, , , , ,325 Recurring EPS (Rs/share) Balance sheet Total Equity 447, , , , , ,375 1,046,241 1,192,382 Borrowings 101, , , , , , , ,886 Other liabilities 161, , , , , , , ,700 Total equity and liabilities 710,940 1,481,896 1,587,431 1,611,805 1,619,098 1,676,027 1,766,017 1,862,968 Net fixed assets 482, , , , , , , ,011 Net intangibles 59, , , , , , , ,310 Cash and equivalents 25,323 16,062 46,480 31,157 27,802 91, , ,594 Other assets 143, , , , , , , ,053 Total assets 710,940 1,481,896 1,587,431 1,611,805 1,619,098 1,676,027 1,766,017 1,862,968 Cash flow statement Operating cash flow 267, , , , , , ,887 Capex (153,756) (188,240) (175,338) (164,100) (162,661) (165,487) (170,861) Free cash flow 113,289 61,782 93, , , , ,026 Acquisitions (699,420) Borrowings 565,886 (80,000) (100,000) (71,898) (50,000) (50,000) Others 10,984 (31,364) (28,596) (23,764) (17,681) (10,862) (3,314) Total change in cash balances (9,261) 30,418 (15,323) (3,355) 63, , ,712 Source: Kotak Institutional Equities estimates 10 KOTAK INSTITUTIONAL EQUITIES RESEARCH

11 Bharti Airtel Telecom Exhibit 7: Bharti - segmental financials, IFRS, March fiscal year-ends (Rs mn) E 2012E 2013E 2014E 2015E 2016E 2017E Revenues Wireless - India and South Asia 331, , , , , , , ,073 Telemedia services 34,154 37,157 40,019 42,531 44,710 46,573 48,136 49,414 Enterprise 44,798 42,558 47,665 52,432 57,675 63,442 69,786 76,765 Passive Infra 70,852 90, , , , , , ,721 Others 5,825 9,320 12,116 15,145 18,174 21,082 23,612 25,973 Wireless - Africa - 132, , , , , , ,058 Gross revenues 486, , , , ,742 1,068,643 1,134,231 1,193,004 Intersegment eliminations (68,432) (74,037) (85,715) (96,115) (104,703) (112,256) (119,146) (125,319) Net revenues 418, , , , , ,388 1,015,086 1,067,685 EBITDA Wireless - India and South Asia 128, , , , , , , ,450 Telemedia services 14,729 16,720 18,008 19,139 20,120 20,958 21,661 22,236 Enterprise 12,578 10,427 11,583 12,636 13,784 15,036 16,400 17,886 Passive Infra 24,523 32,484 41,161 46,681 50,292 52,969 54,938 56,630 Others (9,754) (11,184) (13,328) (15,145) (16,357) (16,865) (16,528) (16,882) Wireless - Africa - 32,884 58,024 73,996 87, , , ,986 Intersegment eliminations (2,496) (2,700) (3,126) (3,506) (3,819) (4,094) (4,346) (4,571) Total EBITDA 167, , , , , , , ,735 EBITDA margin (%) Wireless - India and South Asia Telemedia services Enterprise Passive Infra Others (167.5) (120.0) (110.0) (100.0) (90.0) (80.0) (70.0) (65.0) Wireless - Africa Total EBITDA margin Source: Kotak Institutional Equities estimates KOTAK INSTITUTIONAL EQUITIES RESEARCH 11

12 DLF (DLFU) Property FY2011E sales plan lowered, leasing activity better than expected. DLF reported 2QFY11 revenues of Rs24 bn (+35% yoy, +17% qoq) but EBITDA margin at 39.2% surprised negatively. Debt declined marginally while operational cash-flow remained positive. Key negative is lower sales (12 mn sq. ft) that DLF is targeting for FY2011E while a pick-up in leasing for office space is the positive takeaway. We maintain our ADD rating with a target price of Rs375/share. ADD NOVEMBER 10, 2010 RESULT Coverage view: Cautious Price (Rs): 363 Target price (Rs): 375 BSE-30: 20,876 Company data and valuation summary DLF Stock data Forecasts/Valuations E 2012E 52-week range (Rs) (high,low) EPS (Rs) Market Cap. (Rs bn) EPS growth (%) (60.1) Shareholding pattern (%) P/E (X) Promoters 78.6 Sales (Rs bn) FIIs 15.8 Net profits (Rs bn) MFs 0.4 EBITDA (Rs bn) Price performance (%) 1M 3M 12M EV/EBITDA (X) Absolute (5.2) 13.2 (3.9) ROE (%) Rel. to BSE-30 (8.1) (1.2) (24.4) Div. Yield (%) EBITDA margin declines 900 bps qoq and 1,300 bps yoy QUICK NUMBERS Revenues of Rs24 bn in 2QFY11 (+35% yoy and +17% qoq) EBITDA of Rs9.3 bn (+2% yoy and -5% qoq) Revenues at Rs23.7 bn grew at a healthy 35% yoy and 17% qoq, EBITDA margins declined to 39.2% led by (1) a 660 bps increase in construction cost as a proportion of revenues, (2) 200 bps increased in other expenditure and (3) 50 bps in staff costs. A similar decline in margins in 3QFY10 was reversed in 4QFY10 and we would await details from the company on whether any of this margin decline is structural in nature. EBITDA at Rs9.3 bn (+2% yoy and -5% qoq) and PAT (-5% yoy, +2% qoq) were impacted by marginally lower-than-expected revenues with lower margins. Lowers FY2011E sales guidance to 12 mn sq. ft versus 15 mn sq. ft earlier DLF seems to have revised its FY2011E sales target down to 12 mn sq. ft from 15 mn sq. ft as of end-1qfy11. With 1HFY11 sales volume of 4 mn sq.ft, this still would mean doubling of sales volume in 2HFY11 which is expected to be led by (1) NTC mills launch and (2) plotted development launches of 4-5 mn sq. ft in Gurgaon and Chandigarh. Key triggers: Development launches and further evidence of commercial recovery DLF intends to sell 2X volume (across residential and office space) in 2HFY11E versus actual sales in 1HFY11 progress and visibility of these launches (and particularly NTC Mills in Mumbai) is a potential trigger over next six months. Leasing for office space in 1HFY11 is better than our expectations and DLF has started new construction of 0.9 mn sq. ft indicating higher confidence in volume recovery. With 16 mn sq. ft of rental assets under construction, DLF has the highest leverage across our coverage universe to a pick-up in leasing activity. For private Circulation Only. FOR IMPORTANT INFORMATION ABOUT KOTAK SECURITIES RATING SYSTEM AND OTHER DISCLOSURES, REFER TO THE END OF THIS MATERIAL.

13 DLF Property 2QFY11 EBITDA margins lower than expected Interim results, DLF, March fiscal year-ends (Rs mn) (% chg) Half year ended 2QFY11 2QFY11E 2QFY10 1QFY11 1QFY11E yoy qoq 1HFY11 1HFY10 % change Net sales 23,690 25,598 17,509 20,285 (7.5) ,976 34, Construction cost (10,142) (5,155) (7,337) (17,478) (11,811) 48.0 Staff cost (1,622) (1,079) (1,290) (2,912) (2,211) 31.7 Other expenditure (2,638) (13,567) (2,137) (1,863) (4,500) (3,407) 32.1 EBITDA 9,289 12,031 9,138 9,796 (22.8) 1.7 (5.2) 19,085 16, Other income 1,509 1, , ,830 1, Interest costs (4,338) (3,933) (2,486) (3,884) (8,222) (5,360) 53.4 Depreciation (1,540) (1,046) (766) (1,498) (3,038) (1,500) Pretax profits 4,920 8,183 6,481 5,734 (39.9) (24.1) (14.2) 10,654 11,275 (5.5) Extraordinaries 67 (47) (47) (313.5) Tax (734) (2,046) (1,918) (1,679) (64.1) (61.7) (56.3) (2,413) (2,911) (17.1) Net income 4,254 6,137 4,517 4,088 (30.7) (5.8) 4.1 8,341 8, Adjusted net income 4,184 6,137 4,397 4,110 (31.8) (4.9) 1.8 8,294 8,357 (0.8) Key ratios EBITDA margin (%) PAT margin (%) Effective tax rate (%) Source: Company, Kotak Institutional Equities estimates EBITDA margins at 39% in 2QFY2011 is the lowest since 1QFY08 Quarterly Revenues, EBITDA, EBITDA margins and gross margins, DLF,, March fiscal year-ends Revenues (Rs bn) EBITDA (Rs bn) EBITDA margins (%) Gross margins (%) QFY08 2QFY08 3QFY08 4QFY08 1QFY09 2QFY09 3QFY09 4QFY09 1QFY10 2QFY10 3QFY10 4QFY10 1QFY11 2QFY Source: Company, Kotak Institutional Equities KOTAK INSTITUTIONAL EQUITIES RESEARCH 13

14 Property DLF Business update stability in residential volumes, leasing picks up Development business. DLF sold 2.1 mn sq. ft (versus 1.9 m sq. ft in 1QFY11) of residential and commercial real estate comprising 1.6 mn sq. ft of existing stock (including 0.5 mn sq. ft at Phase V in Gurgaon) and 0.5 mn sq. ft of new sales from new launches in Panchkula and Shimla. DLF now expects to sell 12 mn sq. ft versus 15 mn sq. ft as of end- 1QFY11. DLF has started new construction of 2.4 mn sq. ft in 2QFY11. Rental business. For office space, leasing activity continued to improve with leasing of 1.6 m sq. ft in 2QFY11 versus 1 mn sq.ft in 1QFY11. With 2.5 mn sq. ft leased in 1HFY11, DLF seems to be on track to exceed its guidance of 3-4 mn sq.ft. DLF also mentioned that lease rates have stabilized across micro markets. DLF has also started new construction of 0.9 mn sq. ft for new office space for rental, indicating a higher confidence in a potential recovery in office space leasing. For retail malls (total 1.3 mn sq. ft), while rates remained stable and enquiries are up, leasing uptake is likely to be limited, at least over 2HFY11. Non-core asset sales. DLF has sold land worth Rs4.1 bn in 2QFY11 taking the total in 1HFY11 to Rs7.1 bn. Its target for the next months is approx. Rs20 bn from (1) land bank rationalization and (2) refund from state government authorities. Sales, lease and construction status of the development and rental business DLF, March fiscal year-ends 4QFY09 1QFY10 2QFY10 3QFY10 4QFY10 1QFY11 2QFY11 Development business Sales status (mn sq. ft) Opening balance Add: sales booked during quarter Less: handed over Closing balance Under Construction (mn sq. ft) Opening Balance Add: new launches/additions Less: handed Over Closing Balance Wt. average rate for Homes (Rs / sq ft) 2,211 5,369 7,328 5,832 4,180 6,074 6,078 Wt. average rate for commercial complexes (Rs/sq ft) 6,946 13,132 12,917 7,065-8,965 16,671 Rental business Lease status (mn sq. ft) Opening balance Add: lease booked during quarter (0.1) 0.0 (0.4) Less: cancellation/adjustment Closing balance Under Construction (mn sq. ft) Opening Balance Add: new launches/additions Less: handed Over Less: Suspension/adjustment Closing balance Wt. average lease rate for Office (Rs/sq ft) Wt. average lease rate for retail (Rs / sq ft) Source: Kotak Institutional Equities Net debt (including preference capital) declined marginally to Rs199 bn versus Rs201 bn as of end-1qfy11. DLF expects it to reduce aggressively over 2HFY11E led by the further sale of non-core assets and sales of 8 mn sq. ft. 14 KOTAK INSTITUTIONAL EQUITIES RESEARCH

15 DLF Property Consolidated summary statement of assets and liabilities Quarterly Balance Sheet, DLF, March fiscal year-ends (Rs mn) ` Particulars Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Change yoy qoq Net fixed assets 137, , , , , , ,734 (15,816) Investments 21,380 15,420 29,750 55,200 30,060 16,816 1,396 (13,244) Current assets, loans and advances 289, , , , , ,524 9,474 21,884 Stocks 112, , , , , ,974 30,054 13,014 Sundry debtors 18,210 15,670 19,830 16,660 14,390 19,177 3,507 4,787 Cash and bank balances 7,170 6,340 8,140 9,130 12,970 15,560 9,220 2,590 Other current assets 64,950 73,060 82,630 44,830 47,680 47,337 (25,723) (343) Loans and advances 85,930 83,060 83,290 86,000 73,640 75,477 (7,584) 1,837 Goodwill 22,080 20,180 20,070 12,670 12,580 12,769 (7,411) 189 Total use of funds 470, , , , , , ,194 (6,986) Total loans 147, , , , , ,388 85,098 (1,352) Secured loans 133, , , , , ,100 75,120 (1,360) Unsecured loans 13,890 14,310 24,840 23,750 24,280 24,288 9,978 8 Current liabilities and provisions 71,500 68,310 70,580 92,510 86,110 89,146 20,836 3,036 Deferred tax liability (net) (340) (790) (800) 2,620 2,970 (774) 16 (3,744) Shareholders funds 251, , , , , ,574 16,244 (4,926) Total sources of fund 470, , , , , , ,194 (6,986) Source: Company, Kotak Institutional Equities Key changes to our model assume lower sales, maintain EBITDA margins We revise our revenue estimates to Rs 105 bn (Rs116 bn earlier) for FY2011E and Rs135 bn (versus Rs141 bn earlier) taking into account DLF s lowering of sales in FY2011E. Accordingly, we revise our net profit estimate to Rs23 bn (versus Rs27 bn) for FY2011E and Rs36 bn (versus Rs42 bn earlier). We have assumed an EBITDA margin of 46.4% (unchanged) for FY2011E and approx. 140 bps increase in FY2012E assuming the 2QFY11 margin decline to be a one-off and not indicative of a new band for steady state margins. Our estimate of DLF s NAV is `375/share NAV-based valuation, DLF, March fiscal year-ends (Rs bn) March '12 based NAV Growth rate in selling prices Valuation Methodology 0% 3% 5% 10% Valuation of land reserves Residential Retail Commercial (sold) Commercial (leased) Add: 22 Hotel sites 1X land acquisition cost Add: Construction JV 10X FY2012E P/E Add: Investments in power business Less: Net debt as on March 31, 2012 (171) (171) (171) (171) Less: Land cost to be paid as on Sept. 30, 2010 (1) (1) (1) (1) NAV (Rs bn) NAV/share (Rs) Total no. of shares including ESOPs of 17 mn shares (mn) 1,716 Valuation/share (Rs) 375 Source: Kotak Institutional Equities estimates KOTAK INSTITUTIONAL EQUITIES RESEARCH 15

16 Property DLF Profit model of DLF March fiscal year-ends, E (Rs mn) E 2012E 2013E Total revenues 144, ,354 74, , , ,461 Land and construction cost (39,998) (32,295) (25,795) (38,676) (48,360) (65,000) Employee costs (2,998) (4,537) (4,670) (6,045) (7,980) (10,533) SG&A costs (4,229) (7,622) (8,650) (11,810) (13,933) (17,007) EBITDA 97,105 55,900 35,115 49,095 64,553 84,921 Other income 2,464 3,960 4,280 3,879 5,215 7,072 Interest (3,100) (5,548) (11,100) (15,181) (14,543) (13,207) Depreciation (901) (2,390) (3,250) (6,132) (6,900) (7,227) Pretax profits 95,568 51,922 25,045 31,660 48,325 71,558 Profit/(loss) share of associates 10 Current tax (17,146) (6,754) (7,020) (8,908) (13,678) (18,489) Deferred tax (176) 287 1,109 1,100 Net income 78,247 45,168 18,035 23,039 35,756 54,170 Reported net income 78,156 44,682 17,200 23,039 35,756 54,170 EPS (Rs) Primary Fully diluted Shares outstanding (mn) Year end 1,705 1,697 1,697 1,697 1,697 1,697 Primary 1,661 1,697 1,697 1,697 1,697 1,697 Fully diluted 1,678 1,714 1,714 1,714 1,714 1,714 Cash flow per share (Rs) Primary Fully diluted Growth (%) Net income (adjusted) 302 (43) (59) EPS (adjusted) 259 (44) (61) DCF/share 1,000 (61) (75) Cash tax rate (%) Effective tax rate (%) Source: Company, Kotak Institutional Equities estimates 16 KOTAK INSTITUTIONAL EQUITIES RESEARCH

17 DLF Property Balance sheet of DLF March fiscal year-ends, E (Rs mn) E 2012E 2013E Equity Share capital 3,410 3,394 3,395 3,395 3,395 3,395 Reserves/surplus 193, , , , , ,737 Total equity 196, , , , , ,132 Deferred tax liability/(asset) 359 (414) 2,515 2,228 1, Liabilities Secured loans 80, , , , , ,178 Unsecured loans 42,237 30,578 23,751 Total borrowings 122, , , , , ,178 Currrent liabilities 72,157 78,244 87,771 96, , ,201 Total capital 396, , , , , ,806 Assets Cash 21,421 11,956 9,282 3,099 25,507 81,415 Current assets 244, , , , , ,517 Gross block 51,626 84, , , , ,474 Less: accumulated depreciation 3,435 5,743 13,265 16,079 22,979 30,206 Net fixed assets 48,191 79, , , , ,268 Capital work-in-progress 51,840 56, ,288 90,912 87,651 76,875 Total fixed assets 100, , , , , ,143 Intangible assets Investments 30,033 36,676 67,732 67,732 67,732 67,732 Misc. expenses Total assets 396, , , , , ,806 Leverage ratios (%) Debt/equity Debt/capitalization Net debt/equity Net debt/capitalization RoAE RoACE Source: Company, Kotak Institutional Equities estimates KOTAK INSTITUTIONAL EQUITIES RESEARCH 17

18 PFC (POWF) Banks/Financial Institutions Loan growth remains strong. PFC reported 2QFY11 PAT of Rs7 bn, up 10% yoy and 1% above estimates. Key highlights loan growth strong at 28% (significantly above 22% CAGR between FY2007 and FY2010), margins stable qoq. Forex gains and fees from APDRP aggregating to Rs1 bn supported earnings from lending business. We are revising our estimates to factor somewhat better NIM and lower operating expenses. Retain SELL with price target of Rs325. SELL NOVEMBER 10, 2010 RESULT Coverage view: Attractive Price (Rs): 368 Target price (Rs): 325 BSE-30: 20,876 Company data and valuation summary PFC Stock data Forecasts/Valuations E 2012E 52-week range (Rs) (high,low) EPS (Rs) Market Cap. (Rs bn) EPS growth (%) Shareholding pattern (%) P/E (X) Promoters 89.8 NII (Rs bn) FIIs 3.8 Net profits (Rs bn) MFs 2.1 BVPS Price performance (%) 1M 3M 12M P/B (X) Absolute ROE (%) Rel. to BSE-30 (1.8) (0.7) 31.0 Div. Yield (%) Loan growth strong QUICK NUMBERS PBT grows 26%, PAT up 10% Loan growth stable at 28% yoy PFC reported PBT growth of 26% yoy primarily on the back of 28% loan growth. A higher growth in tax liability in 2QFY11 (due to tax credit availed in 2QFY10) pulled down reported PAT growth to 10%. After delivering 22% loan book CAGR between 2007 and 2010, PFC has retained 28% loan growth traction for the last two quarters despite a higher base. Disbursements were up 39% yoy, approvals also increased by 80% yoy. We are modeling about 27% loan growth for PFC over the next three years. Visibility on loan pipeline remains strong PFC has outstanding (undisbursed) approvals of Rs1.6 tn of which it has already executed documents for proposals of Rs1.05 tn (i.e. 1.2X current loan book). Lending to generation projects will continue to dominate PFC s business about 74% of its outstanding approvals are towards generation projects, somewhat lower than 83% share in its current loan book. The share of private sector will clearly increase over time about 23% of its outstanding approvals are driven by private players as compared to 7% share in the current loan book. Margins remain stable qoq PFC reported NIM of 4.1% in line with 1QFY11 but marginally below 2QFY10. Reported spreads were stable at 2.7% qoq. We are factoring a moderate margin decline (15-20 bps in the near term). PFC s negotiating power with state utilities and high (74%) share of variable rate assets (that are re-priced every three years) will likely cushion spreads. A higher-than-expected decline in spreads because of increase in competition and higher share of private sector business will provide downside risk to our estimates. PFC to raise equity capital by FY2012E PFC proposes to raise equity capital by FY2012E; the proposal is approved by its shareholders and currently with the Ministry of Power. For private Circulation Only. FOR IMPORTANT INFORMATION ABOUT KOTAK SECURITIES RATING SYSTEM AND OTHER DISCLOSURES, REFER TO THE END OF THIS MATERIAL.

19 PFC Banks/Financial Institutions PFC s tier-i capital adequacy was 16.5% as of September It has recently been classified as an infrastructure NBFC and needs to maintain overall capital adequacy of 15%. The company will need to raise equity in FY2012E to support 27% loan growth. Revising estimates We are raising our earnings estimates by 4-5% for FY2011E FY2013E to factor higher margins and lower operating expenses. We are revising our target price to Rs325 (from Rs275) to factor higher earnings and faster medium-term growth traction. We expect PFC s sustainable RoE at about 18%. We are not factoring proposed capital infusion in our model as such projected RoEs appear higher at about 20%. We would like to highlight that unlike other NBFCs, PFC and REC have not build pre-profit provisioning cushion; thus their RoEs are somewhat higher than peers. We are modeling provisions of 10 bps for FY2011E and FY2012E in our estimates. The company has lumpy exposures and impact of NPL slippages can significantly affect earnings. Other highlights of the quarter PFC reported forex gains of Rs510 mn. The company has raised yen-denominated borrowing aggregating to Rs10 bn. KOTAK INSTITUTIONAL EQUITIES RESEARCH 19

20 Banks/Financial Institutions PFC Power Finance Corporation - Quarterly data, (Rs mn) 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 YoY(%) 2Q11KS Actual vs KS (%) Profit and Loss statement Net interest income 7,000 7,200 7,484 7,570 8,580 8, ,144 (2) Loan loss provisions (99) Net interest income (after provisions) 7,000 7,199 7,474 7,570 8,579 8, ,944 0 Other operating income- incl. fees (110) (32) Net operating income 7,060 8,009 7,604 7,460 9,229 9, ,244 3 Other income 631 (130) (620) 510 (492) - - Forex gains 631 (130) (620) 510 (492) - - Total income 7,691 7,879 7,899 7,750 8,609 10, ,244 8 Total income (after provisioning) 7,690 7,878 7,889 7,750 8,609 10, ,244 8 Operating expenses Staff expenses Other expenses (112) Depreciation PBT 7,502 7,628 7,627 7,341 8,585 9, ,984 7 Tax 1,956 1,266 1,991 1,363 2,069 2, , PAT (reported) 5,546 6,362 5,636 5,978 6,516 7, ,915 1 PAT (included deferred tax) 5,524 6,367 5,636 5,978 6,516 7, ,915 1 PBT - forex gains and extraordinaries 6,870 7,758 7,332 7,482 8,676 8, ,455 2 Other details Approvals (Rs bn) Disbursements (Rs bn) Loan assets (Rs bn) (2) Yield on Assets (%) Cost of funds (%) Spreads (%) Net interest margins - reported (%) Net interest margins- KS calc (%) (3.3) Gross NPLs(%) Capital adequacy ratio (%) Balance Sheet (Rs mn) Fixed Assets (Net) Loan Assets 662, , , , , , Investments (1) Current Assets, Loans & Advances 38,590 55,410 43,830 47,850 52,270 54,373 (2) Total Assets 701, , , , , , Loans and borrowings 528, , , , , , Total Current Liabilities 43,030 38,300 43,280 34,660 45,670 46, Deferred tax liability (21) Interest Subsidy Fund from GOI 8,590 8,130 7,710 6,640 6,290 5,994 (26) Total liabilities 581, , , , , , Total equity 120, , , , , , Source: Company, Kotak Institutional Equities estimates 20 KOTAK INSTITUTIONAL EQUITIES RESEARCH