Maruti Suzuki India (MARUTI) 4296

Transcription

1 Result Update Rating matrix Rating : Buy Target : 4857 Target Period : 12 months Potential Upside : 13% What s Changed? Target Changed from 4266 to 4857 EPS FY16E Changed from to EPS FY17E Changed from 213 to Rating Unhanged Quarterly Performance ( Crore) Q1FY16 Q1FY15 YoY (%) Q4FY15 QoQ (%) Revenue 13, , , EBITDA 2, , , EBITDA (%) bps bps Reported PAT 1, , Key Financials Crore FY14 FY15E FY16E FY17E Net Sales 42,645 48,606 55,890 65,934 EBITDA 5, , , ,833.4 Net Profit 2, , , ,669.8 EPS ( ) Valuation summary FY14 FY15E FY16E FY17E P/E (x) Target P/E (x) EV/EBITDA (x) P/BV (x) RoNW (%) RoCE (%) Stock data Particular Amount Market Capitalization ( Crore) Crore Total Debt (FY14) ( Crore) Crore Cash and Investments (FY14) ( Crore) Crore EV ( Crore) Crore 52 week H/L ( ) 3704 / 1540 Equity capital ( crore) 151 Crore Face value ( ) 5 Price performance (%) 1M 3M 6M 12M Maruti Suzuki India Ltd M&M Ltd Tata Motors Ltd Research Analyst Nishit Zota nishit.zota@icicisecurities.com Vidrum Mehta vidrum.mehta@icicisecurities.com July 30, 2015 Maruti Suzuki India (MARUTI) 4296 Multiple drivers for domestic recovery play! Maruti Suzuki Ltd (MSIL) reported its Q1FY16 numbers with a strong beat on the EBITDA margin front. MSIL reported revenues of 13,425 crore vs. our estimate of 13,400 crore (up ~18.1% YoY) led by 13.8% YoY increase in volumes EBITDA grew by 64.8% YoY to 2,189 crore, above our estimates of 2071 crore. The reported EBITDA margins came in at 16.3% as against 11.7% YoY and 15.9% QoQ. However post normalizing for one-off related to asset impairment (which is included in other expenses) margins would have come at 16.9%. The company reported a PAT of 1,193 crore crore (vs. expectation of 1,374 crore), The PAT came below our estimates on account of lower other income (down 42% YoY/46% QoQ) & higher effective tax rate Structural factors favour recovery for PV industry; MSIL to benefit Domestic sales of passenger vehicle grew by 3.7% in FY15 led by slight improvement in consumer sentiment with expectation of faster economic growth. The industry has shown recovery in FY16E, with the industry volumes growing by 6.2% in Q1FY16, & MSIL outpacing that growth, growing by 13.8%. We believe there are lot of favourable demand & supply side variables that will lead to faster volume growth in FY16. While the demand side variables include revival in economic growth, low inflation, steady growth in disposable income, declining cost of ownership (driven by lower fuel cost/ interest rates), the supply side variables are new model launches & capacity expansions. We believe MSIL s largely petrol denominated small car portfolio is likely to benefit the most as most small car buyers are first time buyers & sensitive to change in cost of ownership. MSIL s small car segment sales will also gain from the 7 th Pay commission that is expected in late FY16. Strong product pipeline & reach to help maintain dominance MSIL s strength lies in withstanding slowdown & competition through its wide distribution network. Maruti gained ~300 bps market share in FY14 & another ~200 bps in FY15. The gain in market share In FY14 is partly driven by increasing rural penetration, gain in market share in FY15 is driven by successful new products like Celerio, Ertiga & Ciaz. Maruti has entered a strong product cycle & is looking to plug the gaps in its product portfolio. While MSIL has already addressed the upper segment sedan with its product Ciaz. Its recent launch S-cross & upcoming compact SUV will help MSIL create presence in the SUV segment. Its premium hatchback YRA will be pitted against the likes of Hyundai i20 & Honda Jazz. Hence strong product pipeline of new launches and facelifts of some of its existing models coupled with further enhancement of distribution network & production capacity will help MSIL grow faster than the industry. Margin expansion & strong earnings growth We prefer four-wheeler auto segment to the two-wheeler segment as low penetration levels still provide headroom for sustained growth. Strong operational performance in the two consecutive quarters has led us to raise our EBITDA margin estimates to 16% for both FY16E & FY17E. We believe earnings growth trajectory would be strong (~34% CAGR in FY15-17E). Thus, we ascribe a multiple of 22x its FY17E EPS of 221 and recommend Buy with target of 4,857. ICICI Securities Ltd Retail Equity Research

2 Variance analysis Q1FY16 Q1FY16E Q1FY15 YoY (Chg %) Q4FY15 QoQ (Chg %) Comments Total Operating Income 13,425 13,400 11, , Topline in-line with estimates Raw Material Expenses 9,045 9,107 8, , Employee Expenses Employee cost to sales lower 30 bps QoQ as last quarter included bonus component Other expenses 1,728 1,766 1, , Increased 20 bps QoQ as it also included asset impairment EBITDA 2,189 2,071 1, , EBITDA Margin (%) bps bps Higher than estimate mainly due to gross margin expansion, operating leverage benefits & lower sales promotion expense Other Income Depreciation Interest Total Tax PAT 1,193 1, , PAT came below estimates on account of lower other income &n higher effective tax rate EPS Key Metrics ASP ( ) 383, , , , Higher ASPs due to better product mix led by Swift Dzire Provision for Royalty( cr) Discounts ( ) 16,018 15,500 21, , No fresh launches & facelifts Q1FY16 led to QoQ increase in discount. Q4 discounts tend to be lower due to seasonal factors. Change in estimates FY16E FY17E ( Crore) Old New % Change Old New % Change Comments Revenue 56,167 57, ,219 67, Estimates have been raised marginally on improved demand sentiment & newer product launches EBITDA 8,223 9, ,638 10, EBITDA Margin (%) bps bps Margins estimates raised to reflect benefit of expected gross margin expansion, operating leverage benefit, reduced discounts & currency benefit PAT 5,329 5, ,444 6, Reduced other income as per management guidance & higher effective tax rate partially offsets the benefit from margin expansion EPS ( ) Assumptions Current Earlier Comments FY14E FY15E FY16E FY17E FY16E FY17E Total Volumes (nos) Volume growth of ~13.7% CAGR in FY15-17E on expectation of economic recovery, demand pick-up & new product launches Average ASPs ( ) 369, , , , , ,746 ASPs increase assumed on change in product mix with expected launches in premium hatchbacks, sedan & compact UV segment RMC/Unit ( ) 271, , , , , ,098 Raw material like steel and plastics likely to remain favourable Royalty rates (%) Discount ( ) 16,950 19,529 16,005 16,000 17,000 15,000 New launches & improvement in macro-environment will lead to reduction in discount Company, ICICIdirect.com Research ICICI Securities Ltd Retail Equity Research Page 2

3 Key conference call takeaways In FY15, the Indian passenger vehicle (PV) industry grew by 3.9%, with only one quarter in the year posting ~5% growth & that too was supported by the festive season. FY16 started on a good note, with the growth for Q1FY16 at 6.2% as against 1.3% in Q1FY15. As per the management, MSIL s growth is attributable to new models & increasing penetration. In Q1, MSIL s market share increased by 2.8 percentage points to 46.8%. For the overall industry, the petrol segment grew by 19% YoY, while the diesel segment declined by 6.8% YoY. MSIL s diesel sales were flat on a YoY basis. For Q1FY16, the share of diesel vehicles sold stood at 44%. According to the management, the margin expansion is led by softening commodity prices, operating leverage benefit & lower ad spend. The management indicated that the benefits of commodity prices & currency could come in the next quarter. Exports revenues for Q1FY16 stood at 1384 crore. The export volumes grew by 22% YoY to units, with some growth coming on the back of duty reduction in Sri Lanka & new launches For the quarter, average discounts stood at 16,018, against 15,116 in Q4FY15. Direct and indirect import content combined currently stands at ~16% of sales while the royalty rate for Q1 came at ~5.6% against 5.4% in Q4. Increase in royalty rate was on account of exchange loss on royalty provisioning MSIL has an aim to sell 2 mn vehicles in the next five years, while Suzuki has a plan to launch 20 new models in the same period. MSIL s AMT capacity has expanded from 4000 units/month to 8000 units/month & is expandable to units/month On buyer segmentation, the management highlighted the fact that the first time car buyer class increased from ~43% in Q4FY15 to 46% in Q1FY16. The rural segment volume growth stood at 15% MSIL intends to increase the share of long term investment instruments, post a change in taxation rules regarding FMPs. This will reduce the other income component. Also company has guided for a higher effective tax rate of 27% ICICI Securities Ltd Retail Equity Research Page 3

4 Company Analysis Unique position of dominance in spite of competition MSIL has maintained its market leadership despite the increase in competitive intensity. Despite ~18 players being in the fray fighting for the 2.5 million large market, MSIL has managed to hold ~45% market share. The financial performance has been strong over the past years with operating margins maintained at decent levels (over 10% in the recent past). On the business levers side, all factors range from cost of car ownership to demographics to new product launches led by S-Cross. Allied to this, on the financial levers side, better operating leverage and FX benefits are also in place to benefit MSIL. We expect revenue growth at ~16.4% CAGR in FY15-17E reaching ~ crore in FY17E. Margins are likely to remain on an uptrend and clock 16% in both FY16E & FY17E, as industry demand improves, leading to better operating leverage and also reduction in discounting levels. Also, increased traction in newer products in premium categories would lead to better ASPs and, consequently, better margins and is likely to aid profitability. We expect the bottomline to grow at ~34% CAGR in FY15-17E and reach ~ 6670 crore in FY17E. Exhibit 1: Topline and bottomline trends ( crore) ( crore) 0 FY12 FY13 FY14 FY15E FY16E FY17E Topline Bottomline 0 Source: Company press release, ICICIdirect.com Research Exhibit 2: Margins to trend higher as volumes aid operating leverage ( crore) 12,000 10,000 8,000 6,000 4,000 2, , , , , , (%) - FY13 FY14 FY15E FY16E FY17E - EBITDA Margins (%) Source: Company press release, ICICIdirect.com Research ICICI Securities Ltd Retail Equity Research Page 4

5 Export performance steady; bigger growth post Suzuki s Gujarat plant! Suzuki is aiming to let MSIL grow as a low-cost brand to target markets such as Africa. MSIL already contributes ~45% to Suzuki s global profits. As such, Suzuki s strategy to make MSIL its global export hub for low priced products is logical. Currently, exports form ~9% of total sales for MSIL, with the major export oriented product being the A-Star. Going ahead, we have taken ~15% CAGR in FY15-17E in export volumes. Exhibit 3: Export volumes ('000s) FY11 FY12 FY13 FY14E FY15E FY16E FY17E Domestic Exports Source: Company press release, ICICIdirect.com Research MSIL turns page as market share remains key focus With an increase in competitive intensity from FY10-11 onwards coupled with an increasing gap in petrol-diesel prices shifting customer preference for diesel cars in FY12-13, MSIL s market share had reduced from ~47% in FY09 to ~39% in FY13. The market share was further lost on account of persistent labour troubles at Manesar in both FY12 and FY13, which halted production. However, with the fuel price fall and domestic fuel price deregulation, there has been a recovery in petrol cars.msil has since then increased its presence in terms of products as well as capacity in both the petrol as well as diesel space. Launches of successful products like Ertiga and Celerio also aided growth of market share in a challenging environment. MSIL has regained a lot of lost ground in terms of market share (YTD ~45% domestic). We expect MSIL to maintain >40% market share despite the improvement in competition and growth in the utility vehicle space in the coming years. ICICI Securities Ltd Retail Equity Research Page 5

6 Exhibit 4: Domestic PV market share for MSIL (%) FY10 FY11 FY12 FY13 FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 YTD for Q3FY15 Domestic Market Share Exhibit 5: Passenger car market share (excluding UVs) Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 (%) Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Source: Company press release, ICICIdirect.com Research MSIL's domestic share Discounting levels declining with better macro environment & new launches In an intensely competitive industry struggling with demand slowdown, the increase in discounting levels to gain volumes is to be expected. As the market leader, MSIL had also been forced to give incentives to ward off competition and retain market share. However, we believe the new products launches (which do not offer any discounts) & facelifts will lead to improved product mix that will effectively reduce the discount levels. Discount on small cars (Alto, Wagon R) is broadly linked to the broad macro environment. These discounts will reduce with the improving macro economy conditions. From the higher discount levels of 21,000 in Q3FY15, the same has substantially reduced to ~ 15,000 in Q4FY15 & 16,000 in Q1FY16. We expect a reduction in average discounts from 19,625 in FY15 to 16,000 in both FY16E and FY17E. ICICI Securities Ltd Retail Equity Research Page 6

7 Exhibit 6: Discounting levels reducing ,529 16,005 16, ( ) Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 FY15E FY16E FY17E Source: Company press release, ICICIdirect.com Research Going ahead, as the industry recovers on the back of an improvement in overall economic scenario and interest rate cuts, discounting levels are likely to taper off from FY16E onwards, albeit not too sharply, thereby aiding profitability slowly. Exhibit 7: Annual discount trends and expectations ,529 16,005 16,000 ( ) FY12 FY13 FY14 FY15E FY16E FY17E ICICI Securities Ltd Retail Equity Research Page 7

8 Outlook and Valuation We prefer the four-wheeler auto segment to the two-wheeler segment as low penetration levels still provide headroom for sustained growth. We continue to remain bullish on the longer-term growth prospects of the car segment, especially MSIL, considering its dominant market share at ~45%. Strong operational performance in the two consecutive quarters has led us to raise our EBITDA margin estimates to 16% for both FY16E & FY17E. We believe earnings growth trajectory would be strong (~34% CAGR in FY15-17E). Thus, we ascribe a multiple of 22x its FY17E EPS of 221 and recommend Buy with target of 4,857. Exhibit 8: Valuation Sales Growth EPS Growth PE EV/EBITDA RoNW RoCE ( cr) (%) ( ) (%) (x) (x) (%) (%) FY FY15E FY16E FY17E ICICI Securities Ltd Retail Equity Research Page 8

9 Company snapshot 6,000 5,000 Target Price: ,000 3,000 2,000 1,000 0 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 ( ) Dec-15 Source: Bloomberg, Company, ICICIdirect.com Research Key events Date Event Feb-10 Largest recall in Maruti's history for 1 lakh A-star's for faulty parts. Maruti plans to double petrol capacity and investments to ~ 2,500 crore Jul-10 Q1FY10 marks the change in royalty rates for Maruti from 3.3% to 5.9%, market disappointed Mar-11 Auto stocks rebound as Union Budget witnesses no change of excise duties. Manesar workers go on strike for first time in May for two weeks Aug-11 Labour trouble again brews up, production halted. Maruti Q2FY12 skids due to labour problems and high forex impacts as JPY unfavourable Jan-12 Maruti witnesses strong valuation based bargain hunting as management expects worst to be over Apr-12 Maruti launches the much awaited MPV product "Ertiga". Maruti announces merger with SPIL to consolidate business on the diesel side Jul-12 Maruti stock tumbles as workers in Manersar facility turn violent, causes tragic death of HR manager Awanish Kumar Dev Aug-12 Management lifts lockout post violence receding; production starts albeit slowly Apr-13 Yen moving beyond 100 vis-à-vis US$ aids Q4FY13 profits as EBIDTA margins rise to 10.4% Oct-13 Localisation and cost reduction initiatives Maruti surprise on Q2FY14 financials as margins surprise Jan-14 MSIL board approves Gujarat plant expansion by way of 100% subsidiary of Suzuki Motor Corporation; institutional investors perturbed; stock falls Mar-14 Management alleviates concerns of minority shareholders and removes uncertainty over the "mark-up" issue Oct-14 Maruti launches a new product in the sedan segment "Ciaz" Apr-15 MSIL reports bumper margins of 15.9% in Q4FY15. Announces dividend of 25 per share May-15 Maruti Suzuki 'Swift' completed 10 years of debut. The company has sold over 1.3 million car over the last 10 years Jun-15 Company launches Celerio's diesel variant at 4.65 lakh Jul-15 Maruti opens booking for premium crossover S-CROSS which is likely to to sold through its NEXA (premium) showrooms Top 10 Shareholders Shareholding Pattern Rank Name Latest Filing Date % O/S Position (m) Change (m) 1 Suzuki Motor Corp 31-Mar Life Insurance Corporation of India 31-Mar HDFC Asset Management Co., Ltd. 31-May ICICI Prudential Life Insurance Company Ltd. 31-Mar UTI Asset Management Co. Ltd. 31-May Reliance Capital Asset Management Ltd. 31-May Norges Bank Investment Management (NBIM) 31-Dec HSBC Global Asset Management (Hong Kong) Limited 30-Apr ICICI Prudential Asset Management Co. Ltd. 31-May Schroder Investment Management Ltd. (SIM) 31-May Source: Reuters, ICICIdirect.com Research Recent Activity (in %) Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Promoter FII DII Others Buys Sells Investor name Value Shares Investor name Value Shares William Blair & Company, L.L.C m 0.33m Life Insurance Corporation of India m -2.52m ICICI Prudential Asset Management Co. Ltd m 0.27m APG Asset Management m -1.44m Fidelity Management & Research Company 15.84m 0.25m Investec Asset Management Ltd m -1.28m Principal Global Investors (Equity) 15.10m 0.25m Genesis Investment Management, LLP m -0.81m SBI Funds Management Pvt. Ltd m 0.19m T. Rowe Price Hong Kong Limited m -0.74m Source: Reuters, ICICIdirect.com Research ICICI Securities Ltd Retail Equity Research Page 9

10 Financial summary Profit and loss statement Crore (Year-end March) FY14 FY15E FY16E FY17E Total operating Income 43,701 49,874 57,350 67,649 Growth (%) Raw Material Expenses 31,310 35,008 38,607 45,399 Employee Expenses 1,368 1,607 1,876 2,242 Marketing Expenses Administrative Expenses Other expenses 5,933 6,654 7,720 9,175 Total Operating Expenditure 38,611 43,268 48,202 56,815 EBITDA 5,090 6,606 9,148 10,833 Growth (%) Depreciation 2,084 2,470 2,567 2,896 Interest Other Income ,226 PBT 3,659 4,868 7,479 9,137 Others Total Tax 876 1,157 2,046 2,467 PAT 2,783 3,711 5,433 6,670 Growth (%) EPS ( ) Cash flow statement Crore (Year-end March) FY14 FY15E FY16E FY17E Profit after Tax 2,783 3,711 5,433 6,670 Add: Depreciation 2,084 2,470 2,567 2,896 (Inc)/dec in Current Assets ,287 Inc/(dec) in CL and Provisions 868 1, ,019 Others CF from operating activities 5,926 7,668 8,028 9,298 (Inc)/dec in Investments -3,583 5,817-1,000-1,000 (Inc)/dec in Fixed Assets -3,756-3,201-4,000-3,000 Others 1,355-8,403-1,290-1,033 CF from investing activities -5,985-5,787-6,290-5,033 Issue/(Buy back) of Equity Inc/(dec) in loan funds Dividend paid & dividend tax ,233-1,479 Inc/(dec) in Sec. premium Others 336-1, CF from financing activities -88-2,385-1,133-1,379 Net Cash flow ,885 Opening Cash Closing Cash ,616 Balance sheet Crore (Year-end March) FY14 FY15E FY16E FY17E Liabilities Equity Capital Reserve and Surplus 20,827 23,658 27,858 33,048 Total Shareholders funds 20,978 23,809 28,009 33,199 Total Debt 1, Deferred Tax Liability Others Liabilties Total Liabilities 23,686 24,868 29,218 34,558 Assets Gross Block 22,702 25,636 29,936 32,936 Less: Acc Depreciation 11,912 14,115 16,682 19,578 Net Block 10,790 11,521 13,253 13,357 Capital WIP 2,621 2,621 2,321 2,321 Total Fixed Assets 13,412 14,142 15,575 15,679 Investments 10,118 12,814 14,814 16,814 Inventory 1,706 2,615 1,672 3,386 Debtors 1,414 1,069 1,914 2,258 Loans and Advances 1,251 1,172 1,167 1,460 Other Current Assets Cash ,616 Total Current Assets 5,359 5,307 6,046 11,218 Creditors 4,898 5,561 5,742 6,684 Provisions 678 1,361 1,462 1,769 Other current Liabilities 1,274 1,867 1,745 2,516 Total Current Liabilities 6,849 8,789 8,949 10,969 Net Current Assets -1,491-3,481-2, Other Assets 1,647 1,393 1,733 1,816 Application of Funds 23,686 24,868 29,218 34,558 Key ratios (Year-end March) FY14 FY15E FY16E FY17E Per share data ( ) EPS Cash EPS BV ,099.0 DPS Cash Per Share Operating Ratios EBITDA Margin (%) PBT / Net sales (%) PAT Margin (%) Inventory days Debtor days Creditor days Return Ratios (%) RoE RoCE RoIC Valuation Ratios (x) P/E EV / EBITDA EV / Net Sales Market Cap / Sales Price to Book Value Solvency Ratios Debt/EBITDA Debt / Equity Current Ratio Quick Ratio ICICI Securities Ltd Retail Equity Research Page 10

11 ICICIdirect.com coverage universe (Auto & Auto Ancillary) CMP M Cap EPS ( ) P/E (x) EV/EBITDA (x) RoCE (%) RoE (%) Sector / Company ( ) TP( ) Rating ( Cr) FY15E FY16E FY17E FY15E FY16E FY17E FY15E FY16E FY17E FY15E FY16E FY17E FY15E FY16E FY17E Amara Raja (AMARAJ) Hold 13, Apollo Tyre (APOTYR) Buy 8, Ashok Leyland (ASHLEY) Hold 19, Bajaj Auto (BAAUTO) 1,990 2,833 Buy 57, Balkrishna Ind. (BALIND) Hold 7, Bharat Forge (BHAFOR) 1,216 1,178 Hold 28, Bosch (MICO) 21,723 24,000 Hold 68, Eicher Motors (EICMOT) 15,175 18,800 Buy 40, Escorts (ESCORT) Hold 1, Exide Industries (EXIIND) Buy 14, Hero Mototcorp (HERHON) 2,356 3,036 Hold 47, JK Tyre & Ind (JKIND) Buy 2, M&M (MAHMAH) 1,182 1,457 Buy 69, Mahindra CIE (MAHAUT) Buy 6, Maruti Suzuki (MARUTI) Buy Motherson (MOTSUM) Buy Wabco India (WABTVS) Buy ICICI Securities Ltd Retail Equity Research Page 11

12 RATING RATIONALE ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns ratings to its stocks according to their notional target price vs. current market price and then categorises them as Strong Buy, Buy, Hold and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts' valuation for a stock. Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction; Buy: >10%/15% for large caps/midcaps, respectively; Hold: Up to +/-10%; Sell: -10% or more; Pankaj Pandey Head Research pankaj.pandey@icicisecurities.com ICICIdirect.com Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No 7, MIDC, Andheri (East) Mumbai research@icicidirect.com ICICI Securities Ltd Retail Equity Research Page 12

13 ANALYST CERTIFICATION We /I, Nishit Zota, MBA & Vidrum Mehta, MBA research analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. Terms & conditions and other disclosures: ICICI Securities Limited is a SEBI registered Research Analyst having registration no. INH ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock brokering and distribution of financial products. 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Investors are advised to see Risk Disclosure Document to understand the risks associated before investing in the securities markets. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to change without notice. ICICI Securities or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any other assignment in the past twelve months. ICICI Securities or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for services in respect of managing or co-managing public offerings, corporate finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or specific transaction. 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