KEC International (KECIN) 154

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1 Result Update Rating matrix Rating : Buy Target : 174 Target Period : 12 months Potential Upside : 13% What s changed? Target Changed from 119 to 174 EPS FY16E Changed from 8.2 to 9.2 EPS FY17E Changed from 1.9 to 11.6 Rating Unchanged Quarterly performance Q1FY16 Q1FY15 YoY (%) Q4FY15 QoQ (%) Revenue 1,878. 1, , EBITDA EBITDA (%) bps bps PAT Key financials Crore FY14 FY15 FY16E FY17E Net Sales 7, , , ,463.5 EBITDA Net Profit EPS ( ) Valuation summary FY14 FY15 FY16E FY17E P/E Target P/E EV / EBITDA P/BV RoNW (%) RoCE (%) Stock data Particular Amount Market Capitalization Crore Total Debt (FY15) Crore Cash and Investments (FY15) 332 Crore EV Crore 52 week H/L 155/ 5 Equity capital 51.4 Crore Face value 2 Price performance 1M 3M 6M 12M KEC International Ltd Jyoti Structure 5.2 (3.5) (27.9) (5.1) Kalpataru Power Research Analyst Chirag Shah shah.chirag@icicisecurities.com Consistency setting in July 29, 215 KEC International (KECIN) 154 KEC reported a strong operating performance across all variables. Strong execution led to revenue growth of 9.1% YoY vs. our estimate of 7% at 1878 crore. The key growth came in from projects executed in the Middle East JVs EBITDA margins at 7.5% were ahead of expectations owing to strong execution and declining backlog of legacy orders of the new business. The management has guided for 7.5-8% margins for FY16E while revenue growth is expected between 1% and 15% Order inflows in Q1FY16 were at 385 crore while order backlog for Q1FY16 was at 1537 crore. KEC is currently L1 in 35 crore worth of orders that is expected to be awarded in Q2FY16E Gross debt improved to ~ 24 crore in Q1FY16 Diversity: Helps KEC tap opportunity/cushion uncertainties across cycles Sensing fierce competition in Power Grid (PGCIL) orders, KEC diversified into international markets like MENA, Americas and CIS countries in FY As a result, as of FY14, international revenues share stood at 59% whereas international order backlog share stood at 56%. Therefore, timely diversification helped KEC clocked revenue CAGR of 2% over FY1-FY14 as against domestic companies which faced challenging economic environment. However, with PGCIL rationalizing competition, KEC started bidding for PGCIL order as well and the share rose from low of 12% in FY11 and 6% in FY12 to 31% in FY13 and 2% in FY14. Going ahead, we expect reasonable backlog of crore will ensure revenue CAGR of 11.2% over FY15-FY17E to 1463 crore. Margin recovery encouraging; more gains still in offing; going ahead Entry level strategy in business segments coupled with cost over-runs in some projects resulted in margins falling to historical low of 4.1% in Q4FY13. Overall FY13 recorded lowest ever margins of 5.5%. Post that as per management s guidance, margins have been on the mend as Q4FY14 saw margins improving 29 bps to 7%. Hence, FY14 on the whole, witnessed margin gains of 7 bps to 6.2%. Margins staged a smart recovery at 7.3% in Q4FY15 and 7.5% in Q1FY16. Hence, we expect KEC to report margins of 7.8%, 8% in FY16E, FY17E, respectively, given management has guided for 7.5-8% margins for FY16E on the back of exhaustion of legacy orders that are currently at 3 crore. Debt reduction/efficiency in working capital to strengthen balance sheet KEC s gross debt has increased from 2187 crore in Q4FY15 to 24 crore in Q1FY16, owing to an increase in working capital cycle to 11 days in Q1FY16. The management expects to bring it between 9 and 1 days. However, the recent sale of land and telecom towers has/will enable KEC to reduce its debt, going ahead. Furthermore, containment of debt in FY15-17E and declining interest rates are expected to lead to flattish interest outgo by FY17E. The management has guided for interest to sales ratio of 3%, going ahead. Performance to become stronger going ahead, upgrade multiples Strong order intake, pipeline, pick-up in execution and consistency in margins may lead to strong profitability trend for KEC in FY15-17E. We pencil in 25% PAT CAGR backed by 12% revenue, 27% EBITDA CAGR. This, in turn, may lead to 22 bps expansion in RoEs by FY17E at 15.8%. The fructification of above estimates would lead to a rerating of KEC in terms of P/E multiples. Therefore, we upgrade P/E to 15x from 11x on FY17E EPS to arrive at a fair value of 174/share and maintain BUY. ICICI Securities Ltd Retail Equity Research

2 Variance analysis Q1FY16 Q1FY16E Q1FY15oY (Chg %) Q4FY15oQ (Chg %) Comments Revenue 1,878. 1, , , Revneues in the Middle East JVs recorded strong revneue growth Other Income Employee Expenses Raw Material Expenses , Other Operating Expenses Erecting and Contracting Expenses EBITDA EBITDA Margin (%) bps bps Margins were higher than 158 bps on stronger execution in transmission segment and decline in legacy orders Depreciation Interest Realtively better execution and working capital cycle led to muted rise in finance costs Less: Exceptional Items.... PBT Total Tax NM PAT Strong execution and higher margins led to PAT beat Key Metrics Order inflows 3,85. 2,225. 1, , Order inflows were ahead of expectations Order backlog Backlog and execution cycle ensures strong visibility, going ahead Change in estimates FY16E FY17E ( Crore) Old New % Change Old New % Change Comments Revenue 9, , ,92.2 1, Owing to better inflows and shorter execution cycle, we estimate FY16E revenues will grow 1.3% YoY EBITDA EBITDA Margin (%) bps bps We are conservative in margins estimate vs. management guidance PAT EPS ( ) Assumptions Current Earlier Comments FY14 FY15 FY16E FY17E FY16E FY17E Order Inflow growth Strong order inflows in Q4FY15 have corrected the base effect of FY16E inflows Order Backlog growth Revenue growth We have revised upwards our revenue growth based on strong execution visibility, order inflow momentum and strong intake pipeline EBITDA Margins ICICI Securities Ltd Retail Equity Research Page 2

3 Company Analysis Flip flops in domestic market to be compensated by international markets KEC International (KEC) is a leading EPC player in the transmission and distribution (T&D) markets with a capacity of 3112 MT. KEC currently commands an order backlog of 137 crore (FY15). This is expected to grow at a CAGR of 6.7% in FY1-17E to crore. KEC has also diversified into other newer business segments like railways, cables and water (currently form 15% of the current backlog). One of the key highlights of KEC s business strategy over the last few years has been diversification across geographies and business segments. In Indian markets, the T&D segment has been an underinvested segment as the investment ratio between generation capex and T&D capex has been lagging at.46x in the Eleventh Plan against an ideal ratio of 1:1. Though this ratio is expected to improve to.76x and.79x in Twelfth and Thirteenth Plan, respectively. The execution of the same is more critical as planned targets are way above the targets finally realised. This is reiterated by the fact that the capex cycle owing to policy decisions has almost come to a standstill over the last couple of years. Though there are hurdles in the short to medium term, we expect a case to exist for T&D equipment players like KEC in the long run. Given most ordering of the Twelfth Plan is over (PGCIL estimates that 85% of the Twelfth Plan ordering is complete). Hence, we expect the Thirteenth Plan ordering to commence from FY16E-17E, thereby providing an opportunity of 2 crore for T&D equipment players like KEC. One key silver lining for the rest of Twelfth Plan (FY15-17) is that SEB ordering may pick up gradually post the bailout package offered by the government. Exhibit 1: T&D capex trends in Twelfth, Thirteenth Plans th Plan 12th Plan 13th Plan Generation Transmisison Distribution Total PGCIL is one of the key sources of orders for KEC as the former s capex forms 5% of the transmission capex planned in the Twelfth and Thirteenth Plan. Till now, the capex done by PGCIL is at 44 crore while average ordering for PGCIL in the Twelfth Plan is pegged at 225 crore per annum. KEC can be a key beneficiary of the commencement of Thirteenth Plan ordering as KEC has gained market share from 6% in FY12 to 31% and 2% in FY13 and FY14, respectively. KEC had diverted into international markets as competition in PGCIL orders had destroyed pricing discipline. Hence, over time with correction of bidding rules by PGCIL, competition has somewhat reduced recently. To reiterate our point, the number of bidders in tower packages was at 15 in FY9, which went up to 22 players in FY12. Recently, in FY13, it has come down to 13. ICICI Securities Ltd Retail Equity Research Page 3

4 Exhibit 2: Break-up of Twelfth Plan capex of Power Grid Exhibit 3: Trend in PGCIL s five year plan capex FY13 FY14 FY15E FY16E FY17E th Plan 85 9th Plan 189 1th Plan th Plan 11 12th Plan 1 13th Plan Source: Company, ICICIdirect.com, Research Source: Company, ICICIdirect.com, Research Exhibit 4: Trend of market share in PGCIL s ordering (%) (%) FY9 FY1 FY11 FY12 FY13 FY14 Market Share No of Bidders In order to diversify, KEC ventured into the global T&D markets, which helped the company to avoid competition in PGCIL orders and combat a weak domestic ordering environment. The strategy also resulted in an acquisition wherein KEC acquired SAE Towers (1 tonne capacity) in FY11 for $95 million. Since then, KEC s revenues have grown at a CAGR of 2% in FY11-14 albeit with weak domestic macros. This was on the back of order backlog getting tilted towards international market. As of Q2FY15, 63% of the backlog comes from international markets. Even going ahead, we expect the trend to continue over FY14-16E. Our confidence stems from the fact that the global T&D market opportunity is expected to require investments of over $3 trillion spread across The key markets that are expected to throw up opportunities are Asia ($1.4 trillion), North America (~$6 billion) and Middle East and Africa ($173 billion) wherein KEC has created a reasonable presence over the last couple of years. ICICI Securities Ltd Retail Equity Research Page 4

5 Exhibit 5: Global opportunity in T&D space ($ Billion) North America Europe Pacific East Europe Asia MEA Africa Latin America Generation Transmission Distribution Exhibit 6: KEC exhibits strong order inflow trends Going ahead, with a presence in both domestic and international markets, we expect KEC to report order inflows of 1785 crore and 1115 crore, respectively. This is expected to lead to an order backlog CAGR of 5.6% in FY15-17E to crore. The current backlog of 137 crore provides reasonable visibility of 1.2x (TTM sales) book to bill ratio. This, we believe, may lead to 11.3% revenue CAGR over the same period. Exhibit 7: thereby adding to order backlog, visibility FY9 FY1 FY11 FY12 FY13 FY14 FY15 FY16EFY17E FY1 FY11 FY12 FY13 FY14 FY15 FY16E FY17E (%) Order Inflow YoY growth (%) Order backlog YoY growth (%) Source: Company, ICICIdirect.com, Research Source: Company, ICICIdirect.com, Research Exhibit 8: Geographical break-up of order backlog of KEC Exhibit 9: Trend in revenues over FY14-17E 1% 8% 6% 4% 2% % 3% 1% 15% 12% 3% 3% 4% 12% 3% 2% 24% 2% 18% 17% 13% 13% 11% 11% 11% 12% 15% 2% 27% 25% 21% 13% 15% 2% 17% 21% 11% 9% 9% % % 16% 11% 11% 1% 5% 5% 47% 44% 54% 55% 55% 48% 54% 51% FY9 FY1 FY11 FY12 FY13 FY14 Q1FY15Q2FY15Q3FY15Q4FY FY9 FY1 FY11 FY12 FY13 FY14 FY15 FY16E FY17E South Asia America Middle East Africa Others Revenues YoY growth (%) Source: Company, ICICIdirect.com, Research Source: Company, ICICIdirect.com, Research ICICI Securities Ltd Retail Equity Research Page 5

6 New business segments may be meaningful contributor in long run KEC, in order to diversify business risks, started focusing on scaling up other non-t&d business segments like Railways, telecom and water. The focus started gaining traction from H2FY12 onwards as the share of these segments in the overall backlog was at 5%, which has grown 3x to 15% by the end of FY14. As of Q4FY15, the current backlog from these segments stood at 1555 crore. In terms of revenues, the share for FY13 and FY14 stood at 13% and 11%, respectively, while in the current quarter, the share was at 15% owing to 55% YoY growth in cable segment revenues. Going ahead, we expect these segments to be scalable in terms of revenues (huge infrastructure investment in Twelfth and Thirteenth economic plans) and profitability. The key monitorable for this non-t&d segments would be the consistency in profitability as in order to gain pre-qualifications (PQs) and resultant new orders from customers, KEC had adopted entry level pricing strategy into segments like Railways, water and telecom leading to significant EBITDA margin erosion of KEC (lowest ever margin of 5.5% in FY13, implying a decline of 26 bps YoY). However, the management has clearly indicated that incremental orders in this segment will entail margins in the range of 8-9%. Exhibit 1: Segmental break-up of consolidated revenues 1% 95% 9% 85% 8% % 7% 2% 5% 2% 4% 13% 2% 93% 91% 85% 7% 5% 1% 85% 6% 4% 2% 88% 2% 1% 5% 5% 4% 3% 3% 5% 12% 3% 3% 6% 89% 89% 85% 85% 75% FY1 FY11 FY12 FY13 FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 T &D Cables Railways Telecom & Waters Exhibit 11: Trend in revenues of non-t&d business segments FY12 FY13 FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Cables Railways Water ICICI Securities Ltd Retail Equity Research Page 6

7 Exhibit 12: Trend in segmental EBITDA margins Pain of new business segments on EBITDA margins receding Entry level strategy in new business segments coupled with cost overruns in some projects resulted in margins falling to a historical low of 4.1% in Q4FY13. Overall, FY13 recorded the lowest ever margins of 5.5%. Post that, as per the management s guidance, margins have been on the mend as Q4FY14 saw margins improving 29 bps to 7%. Hence, FY14 on the whole, witnessed margin gains of 7 bps to 6.2%. Going ahead, the management commentary suggests further margin gains in FY15E. In Q2FY15 and Q3FY15, KEC reported EBITDA margins of 5.6% and 5.1%, respectively, on the back of booking of losses in legacy orders. The same has shown an improvement as Q4FY15 and Q1FY16 recorded margins of 7.3% and 7.5%, respectively. However, the management maintains its EBIDTA margin guidance of 8% in FY16E. Hence, we expect KEC to report margins of 7.8% and 8% in FY16E and FY17E, respectively, on an individual basis. We expect the transmission business to produce margins in the range of 8-1% while that of SAE Towers will be hovering in low single digits. These two segments constitute about 85% of the overall backlog. The rest is catching up in terms of generating profitability. We believe this will be gradual and will reflect by way of 18 bps YoY improvement in margins over FY17E (%) FY9 FY1 FY11 FY12 Q1FY13Q2FY13Q3FY13Q4FY13 FY13 Q1FY14Q2FY14Q3FY14Q4FY14 FY14 Q1FY15Q2FY15Q3FY15Q4FY15 FY15 Q1FY16 FY16E FY17E Margin expansion to drive robust PAT CAGR of 25% (FY15-17E) Going ahead, the real kicker for 25% CAGR in profitability over FY15-17E will mainly be contributed by 28% CAGR in EBITDA whereas revenue CAGR is expected at 11.3% over the same period. We expect the EBITDA to grow to crore by FY17E from 512 crore in FY15. This, we believe, coupled with lower tax rates (35% for FY16E and FY17E vs. 55% in FY13-14) are expected to lead to PAT of 235 crore and 299 crore in FY16E and FY17E, respectively. ICICI Securities Ltd Retail Equity Research Page 7

8 Exhibit 13: PAT to rise sharply on back of strong margins recovery FY9 FY1 FY11 FY12 FY13 FY14 FY15 FY16E FY17E RoE profile to improve materially on margin recovery/decline in leverage Given the erosion of EBITDA margins from 1.4% and 8.1% in FY11 and FY12, respectively, to 5.5% in FY13 coupled with 34% CAGR in interest costs negatively impacted RoE of KEC. As a result, RoE declined from 21.7% and 18.7% in FY11 and FY12 to 6.4% and 5.5% in FY13 and FY14, respectively. However, a recovery in margins and resultant 28% CAGR in PAT over FY15-17E may help KEC to improve its RoE to 14.5% and 15.8% in FY16E and FY17E, respectively. Exhibit 14: Return ratios to bounce back strongly 3 (%) FY1 FY11 FY12 FY13 FY14 FY15 FY16E FY17E ROE ROCE ICICI Securities Ltd Retail Equity Research Page 8

9 Outlook and Valuation Strong order intake, pipeline, pick-up in execution and consistency in margins may lead to strong profitability trends for KEC in FY15-17E. We pencil in 25% PAT CAGR backed by 12% revenue and 27% EBITDA CAGR. This, in turn, is expected to lead to 22 bps expansion in RoEs by FY17E at 15.8%. The fructification of the above estimates would lead to a rerating of KEC in terms of P/E multiples. Therefore, we upgrade P/E to 15x from 11x on FY17E EPS to arrive at a fair value of 174/share and maintain BUY recommendation. Exhibit 15: Interest, EBITDA ratio to improve, going ahead (%) FY13 FY14 FY15 FY16E FY17E Exhibit 16: One year forward P/E multiple for KEC Aug-9 Nov-9 Feb-1 May-1 Aug-1 Nov-1 Feb-11 May-11 Aug-11 Nov-11 Feb-12 May-12 Aug-12 Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14 Aug-14 Nov-14 Feb-15 May-15 ICICI Securities Ltd Retail Equity Research Page 9

10 Company snapshot Target price: Jan-1 Apr-1 Jul-1 Oct-1 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Source: Bloomberg, Company, ICICIdirect.com Research Key events Date Event Dec-1 Tower testing station of 1,2 kv inaugurated in Nagpur and 12 kv tower tested Mar-11 KEC closes FY11 with highest ever growth rate of 36% YoY in its order backlog to 78 crore Mar-12 KEC revenue crosses 5 crore for the first time with higehest ever PAT of 29 crore in its operating history Dec-12 KEC's order backlog crosses 1 crore mark in its operating history Mar-13 Market share in PGCIL ordering at 31% in FY13. Number of contracts won stood at 1 worth 2152 crore Mar-13 With execution of low margin orders of new SBUs, KEC's EBITDA margins fall to record lows to 4.1% in Q4FY13 Sep-13 Margins do recover to 6.3% in Q2FY14 after dismal perfomance of Q4FY13. However, going ahead, consistency is the key Nov-13 Market share in PGCIL ordering at 16% in YTDFY14. Number of contracts won stood at 1 worth 2152 crore Apr-14 Overall market share in PGCIL orders at 2% while for the whole of FY14, KEC reported 14% YoY growth in order flows. The key highlight was the recovery of EBITDA margins to 6.2% in FY14 from 5.5% in FY13. The company has guided for further improvement in margins and reduction in leverage Dec-14 Q3FY15 perfromance disappointing owing to higher-than-expected margins on the back of execution of low margins legacy orders Apr-15 Improvement in Q4FY15 performance across all parameters and mangament sets out strong guidance for FY16E Top 1 Shareholders Shareholding Pattern Rank Name Latest Filing Date % O/S Position (m) Change (m) (in %) Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 1 RPG Enterprises 31-Mar Promoter HDFC Asset Management Co., Ltd. 31-Mar FII Reliance Capital Asset Management Ltd. 31-Mar DII UTI Asset Management Co. Ltd. 31-Mar Others Life Insurance Corporation of India 31-Mar Goenka (Harsh Vardhan) 31-Mar FIL Investment Management (Hong Kong) Limited 31-Mar SBI Funds Management Pvt. Ltd. 31-Mar Birla Sun Life Asset Management Company Ltd. 31-Dec Tata AIG Life Insurance Company Limited 31-Dec Source: Reuters, ICICIdirect.com Research Recent Activity Buys Sells Investor name Value Shares Investor name Value Shares UTI Asset Management Co. Ltd. 1.13m.88m Birla Sun Life Asset Management Company Ltd m -2.24m Stellar Energy Trust.64m.51m Sundaram Asset Management Company Limited -2.83m -1.9m Morgan Stanley Investment Management (India) Pvt. Ltd..43m.5m SBI Funds Management Pvt. Ltd. -2.2m -1.57m RPG Enterprises.39m.3m BlackRock Asset Management North Asia Limited -1.44m -1.3m Dimensional Fund Advisors, L.P..38m.3m DSP BlackRock Investment Managers Pvt. Ltd m -1.9m Source: Reuters, ICICIdirect.com Research ICICI Securities Ltd Retail Equity Research Page 1

11 Financial summary Profit and loss statement Crore (Year-end March) FY14 FY15 FY16E FY17E Total operating Income 7, , , ,463.5 Growth (%) Raw Material Expenses 4,99. 4, , ,378.2 Employee Expenses Erecting and Contracting Expenses 1,86.4 1, ,16.8 2,442.6 Administrative Expenses ,1.6 1,151. Total Operating Expenditure 7,48.6 7,956. 8,74.2 9,739.3 EBITDA Growth (%) Depreciation Interest Other Income Exceptional Item PBT Total Tax PAT Adjusted PAT Growth (%) EPS ( ) Cash flow statement Crore (Year-end March) FY14 FY15 FY16E FY17E Profit after Tax Add: Depreciation (Inc)/dec in Current Assets -1, Inc/(dec) in CL and Provisions Others CF from operating activities (Inc)/dec in Investments.... (Inc)/dec in Fixed Assets Others.... CF from investing activities Issue/(Buy back) of Equity.... Inc/(dec) in loan funds Dividend paid & dividend tax Inc/(dec) in Sec. premium.... Others CF from financing activities Net Cash flow Opening Cash Closing Cash Balance sheet Crore (Year-end March) FY14 FY15 FY16E FY17E Liabilities Equity Capital Reserve and Surplus 1,198. 1, , ,837.3 Total Shareholders funds 1, , , ,888.8 Total Debt 2, , , ,414.1 Deferred Tax Liability.... Minority Interest / Others.... Total Liabilities 3, , ,984. 4,32.9 Assets Gross Block 1,18.9 1, ,43.3 1,483.3 Less: Acc Depreciation Net Block Capital WIP Total Fixed Assets ,15.8 1,24.3 1,7.8 Investments.... Inventory Debtors 3,87.8 3, , ,73.1 Loans and Advances , ,318. Other Current Assets , ,332.8 Cash Total Current Assets 6, , , ,244.3 Creditors 3, , ,73.1 4,156.7 Provisions Total Current Liabilities 4,1.3 4,13.6 4,62.6 5,115.1 Net Current Assets 2, ,447. 2, ,129.2 Others Assets.... Application of Funds 3, , , ,32.8 Key ratios (Year-end March) FY14 FY15 FY16E FY17E Per share data ( ) EPS Cash EPS BV DPS Cash Per Share Operating Ratios (%) EBITDA Margin PBT / Total Operating income PAT Margin Inventory days Debtor days Creditor days Return Ratios (%) RoE RoCE RoIC Valuation Ratios (x) P/E EV / EBITDA EV / Net Sales Market Cap / Sales Price to Book Value Solvency Ratios Debt/EBITDA Debt / Equity Current Ratio Quick Ratio ICICI Securities Ltd Retail Equity Research Page 11

12 ICICIdirect.com coverage universe (Capital Goods) CMP M Cap EPS ( ) P/E (x) RoCE (%) ( ) TP( ) Rating ( Cr) FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E AIA Engineering 1 15 Hold Thermax (THERMA) Hold KEC International (KECIN) Buy Kalpataru Power(KPP) Buy L&T (LARTOU) Buy Greaves Cotton (GREAVE) Buy SKF Hold VaTech Wabag Buy RoE (%) ICICI Securities Ltd Retail Equity Research Page 12

13 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%/2% for large caps/midcaps, respectively, with high conviction; Buy: >1%/15% for large caps/midcaps, respectively; Hold: Up to +/-1%; Sell: -1% 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 4 93 research@icicidirect.com ICICI Securities Ltd Retail Equity Research Page 13

14 ANALYST CERTIFICATION We /I, Chirag Shah PGDBM, Research Analyst, 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 (ICICI Securities) is a Sebi registered Research Analyst having registration no. INH99. 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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