CMP: INR1,172 TP: INR1,350(+15%) Buy

Transcription

1 BSE SENSEX S&P CNX 25,627 7,850 Bloomberg INFO IN Equity Shares (m) 2,304.4 M.Cap.(INRb)/(USDb) 2,700.9 / Week Range (INR) 1250 / 933 1, 6, 12 Rel. Per (%) -1/12/16 12M Avg Val (INR M) 4420 Free float (%) 86.9 Financials & Valuation (INR b) Y/E Mar E 2018E Net Sales EBITDA PAT EPS (INR) Gr. (%) BV/Sh (INR) RoE (%) RoCE (%) P/E (x) P/BV (x) Estimate change TP change Rating change 15 April 2016 Results Update Sector: Technology Infosys CMP: INR1,172 TP: INR1,350(+15%) Buy Industry leading exit and FY17 revenue guidance Sanguine exit to help momentum continue into FY17: At 1.9% QoQ CC (1.7% excluding India business), INFO s revenue was in line with estimate of 2.1%. INFO is exiting the year with 15% YoY CC growth, and 25.5% EBIT margin (v/s estimate of 25.3%). That, compounded with yet another quarter of sanguine deal wins (USD757m), feed into company s outlook of industry leading growth in FY17 while sustaining profitability. PAT was INR36b, 3.8% QoQ, compared to our estimate of INR34.8b, +0.6% QoQ, led by higher other income of INR7.7b v/s estimate of INR6.5b. Revenue guidance implies 3-3.7% CQGR: Guidance INFO guided for FY17 YoY CC revenue growth of 11.5%-13.5%, marginally ahead of our expectation of 11-13%. This implies a CQGR of % over the course of FY17. This compares with 3.55% demonstrated in FY16. Deal wins and top accounts growth signify FY16 improvement: INFO s deal wins increased 45% YoY in FY16 to USD2.79b, following its revamp in methodologies to pursue large engagements. It still remains below levels sought by the company of USD1b+ every quarter. Another metric highlighting INFO s turnaround in FY16 is growth in top accounts top-10 grew 8.1% v/s 0.7% in FY15 and top account grew 19% v/s 8% decline in FY15. Expect traction to aid valuation: Our estimates are unchanged following largely in-line results and guidance. Under the new management, INFO has addressed concerns around growth, margins and attrition. Its contrasts against the remainder of the industry, which continues to grapple with of decelerating growth. While pricing is a secular concern, growth leaders will be best placed to offset the impact. We believe that INFO is investing in all the right areas to regain and sustain its growth leadership, compounded by industry leading margins. Our price target of INR1,350 discounts two year forward earnings by 18x. Buy. Quarterly Performance (IFRS) (INR Million) Y/E March FY15 FY16 FY15 FY16 Est. Var. 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q (%/bp) Revenue (USD m) 2,133 2,201 2,218 2,159 2,256 2,392 2,407 2,446 8,711 9,501 2, QoQ (%) bp Revenue (INR m) 127, , , , , , , , , , , YoY (%) bp GPM (%) bp SGA (%) bp EBITDA Margin (%) bp EBIT Margin (%) bp Other income 8,290 8,770 8,400 8,810 7,580 7,930 8,020 7,720 34,270 31,250 6, ETR (%) PAT 28,860 30,960 32,500 30,980 30,300 33,980 34,650 35, , ,930 34, QoQ (%) bp YoY (%) bp EPS (INR) Headcount 161, , , , , , , , , , , Util excl. trainees (%) bp Attrition (%) Offshore rev. (%) (IT Serv) Fixed Price (%) Ashish Chopra (Ashish.Chopra@MotilalOswal.com); Sagar Lele (Sagar.Lele@MotilalOswal.com); Investors are advised to refer through disclosures made at the end of the Research Report. Motilal Oswal research is available on Bloomberg, Thomson Reuters, Factset and S&P Capital.

2 Revenue: In-line performance; aided by India traction INFO s CC USD revenues grew 1.9% QoQ, largely in line with our estimate of 2.1% QoQ. Reported USD revenue growth was 1.7% QoQ v/s our estimate of 2.0% QoQ, indicating a -20bp impact due to depreciation of currencies against the USD. Strong momentum continued in the India business: 24% QoQ CC in 3Q and 11% QoQ CC in 4Q. Growth and traction in India could have been aided at least partly by the USD200m GST deal win in September Blended realization declined by 0.9% QoQ in CC. Volumes in IT Services grew 2.4% QoQ, continuing the strong trend seen over the last four quarters; and resulting in volume growth of 14.5% for FY16. Split up for the quarter, volume growth was 2.7% QoQ at onsite and 2.3% at offshore. Exhibit 1: Volume growth momentum sustained (YoY, %) IT Services Volume Growth YoY Revenues from Products continued their revival, growing 5.7% QoQ, clocking a CQGR of 4.2% in FY16. The onsite:offshore mix got slightly skewed towards onsite for both revenues and effort, with the offshore composition at 43.5% and 70.4% respectively. Rupee revenue was INR165.5b, +4.1% QoQ (a tad below our estimate of INR165.8b). Realized currency rate during the quarter was INR67.66/USD v/s our assumption of INR67.53/USD. Exhibit 2: Revenue growth in constant currency was 1.9% during the quarter; and 1.6% in USD terms Revenue (USD m) Growth (% QoQ) Revenue (USDm) Growth (CC, QoQ, %) , (0.4) (0.4) ,9912,0662,1002,0922,1332,2012,218 2,2562,3922,4072,446 1,991 2,066 2,100 2,092 2,133 2,201 2,218 2,159 2,256 2,392 2,407 2, April

3 Growth was fairly broad-based across verticals (except decline in Insurance). In constant currency, FSI grew by 0.6% QoQ, Manufacturing by 0.8% QoQ, Retail/CPG/Logistics grew 2.7% QoQ CC, and ECS grew 4.9% QoQ. Growth across geographies was dominated by India, which grew by 11% QoQ CC. Europe too saw some strength as it grew by 3.6% QoQ CC. Deal wins during the quarter were higher than the previous quarters as it won six large deals with a TCV of USD757m. This compares to USD360m TCV in 3Q. INFO hasn t included potential from two additional deals that are framed, but absolute quantum of revenues was not committed (USD470m). TCV of deal wins for FY16 is USD2.8b, which is 42% higher than what was in FY15. Exhibit 3: Insurance has been a drag in 4Q (USD QoQ) Verticals Contribution to rev (%) Growth - QoQ (%) Contr to incr rev (%) 4-Qtr CQGR BFS Insurance Manufacturing Retail and CPG Transport and Logistics Life Sciences Healthcare Energy and Utilities Telecom Others Exhibit 4: Growth during the quarter was skewed towards Maintenance, IMS and Products (QoQ USD) Services Contribution to Growth - Contr to incr 4-Qtr rev (%) QoQ (%) rev (%) CQGR Business IT Services App. Development App Maintenance Infra Mgmt Services Testing Services BPM Product Engg Services Others Consulting Package Impl & Others Products, Platforms and Solutions Exhibit 5: India and Europe grew strongly during the quarter Geographies Contribution to Growth - QoQ Contr to incr rev rev (%) (%) (%) 4-Qtr CQGR North America Europe India Rest of the world April

4 Profitability: Pricing pressure offset by multiple other factors EBITDA margin expanded by 80bp QoQ (v/s est. of +20bp) to 28%. While the decline in price realization took off 0.4% from margins, INR depreciation, lower subcontracting costs (5.6% in 4Q v/s 6.3% in 3Q), and improved utilization were able to recoup that entirely. Utilization excluding trainees was 80.1%, -50bp QoQ (v/s estimate of 82.1%) and that including trainees was 74.7%, +50bp QoQ. PAT was INR36b, compared to our estimate of INR34.8b, +4% QoQ, on the back of profitability beat, and higher than expected Other Income. The Board recommended a final dividend of INR14.25 per share. Exhibit 6: EBIT margin was above our estimate, at 25.5% EBIT Margins (%) SG&A Exhibit 7: Utilization (ex. trainees) improved during the quarter 75.9 Utilization Incl. Trainees Utilization Excl. Trainees Guidance marginally better than expectations INFO guided for FY17 YoY CC revenue growth of 11.5%-13.5%. This was marginally ahead of our expectation of 11-13%. The guidance implies a CQGR of % over the course of FY17. This compares with 3.55% demonstrated in FY16. Based on current trends, exit rate in 4Q and deal pipeline, achieving the guidance in FY17E seems achievable. 15 April

5 Turnaround in business highlighted by three metrics in particular INFO s improvement in FY16 is highlighted by three metrics more than most others [1] Deal wins, [2] Attrition and [3] Top clients. Exhibit 8: 42% YoY growth in deal wins Deals TCV (USD m) 2,788 1,970 FY15 FY16 Exhibit 9: Attrition down by over 500bp in FY Exits Standalone Attrition (%) ,627 10,128 8,927 7,922 8,553 9,142 8,620 8,373 Exhibit 10: Significant improvement in top clients Top client Top 2-5 Top 6-10 Exhibit 11: As the P&L improved, cash generation remains strong FY13 FY14 FY15 FY16 Revenue 403, , , ,410 OCF 73,730 98,250 83,530 98,630 Capex 20,950 27,480 22,470 27,230 Acquisitions 11,570-12,820 7,470 FCF 41,210 70,770 48,240 63,930 OCF/Sales FCF/Sales April

6 Progress in new initiatives INFO has been driving innovation in two ways: [1] Zero distance: This has been a differentiating initiative for INFO in the marketplace. Continuous effort to bring innovation to projects is under progress. During the quarter, INFO covered 100% of its projects with Zero distance, wherein it has proposed incremental innovative ideas. [2] AiKiDo: Driving innovation through the reimagination of services, AiKiDo is being strongly adopted by clients. To date INFO has had more than 220 client engagements where the Infosys Information Platform (IIP) has been used. There is significant traction in adoption, evident from the fact that client engagements stood at 200 in, 160 in, and 117 in. This quarter, INFO also announced the availability of IIP on Amazon Web Services (AWS Marketplace). Infosys Automation Platform (IAP) is currently being used in 125 engagements. 21 additional deployments have been undertaken during this quarter. Overall, automation has been able to free up 1700 FTEs in and ~3900 in FY16. The integration of Panaya and Skava has been coming along well. Both these are increasingly being used as part of large engagements and on a standalone basis. During the quarter, EdgeVerve sustained momentum with 18 wins and 24 golives for both the Finacle and Edge suite of solutions. Design Thinking was adopted to a larger extent in 4Q taking the total number of Design Thinking workshops conducted to 225. Additionally, 10 design-led transformation programmes were conducted during the quarter. Invested USD4m in Waterline Data Science, a provider of data discovery and data governance software. Change in estimates With sustained momentum in revenue growth, broad-based contribution to growth and continued strength in deal wins, we maintain our revenue estimates for FY17/18E. However, given the headwinds of wage hike and additional visa costs compared to the previous year in 1Q, we are toning down our assumption of EBIT margin expansion for FY17 (to 20bp from 70bp earlier). While we expect EBIT margins to decline by 150bp in 1QFY17, operational levers and strong revenue growth can recoup some of the negative impact in 2QFY17. The management has guided for lower yield on its cash equivalents given lowering interest rates in India and 29-30% Effective Tax Rate for FY17 as some of the SEZ units move from 100% exemption to 50%. This has resulted in a decline in our EPS estimate to the tune of 3.1% for FY17E and 0.5% for FY18E. Exhibit 12: Change in estimates Revised Earlier Change FY16E FY17E FY18E FY16E FY17E FY18E FY16E FY17E FY18E INR/USD % 0.0% 0.0% USD Revenue (m) 9,501 10,785 12,188 9,509 10,767 12, % 0.2% 0.0% USD rev. growth (%) bp 29bp -19bp EBIT Margin (%) bp -50bp 8bp EPS (INR) % -3.1% -0.5% EPS Growth (%) April

7 Takeaways from Management Commentary Macro environment: There s not much concern around prevailing macroeconomic conditions. Although the ecosystem would get impacted by deterioration in macroeconomic conditions, INFO s ability to grow within clients is good. Given the mandate of spend on Digital technologies, and in transforming existing businesses, INFO is confident of continued momentum. Client budgets flattish: Overall budgets for the year seem to be flattish. Client continue to focus on cost optimization wherever possible, and plough savings into newer areas of tech spend. Vertical-wise demand outlook: The momentum in BFS has been strong, as the vertical grew by 15.6% YoY CC in FY16. Insurance however has shown some weakness in the quarter. However, given some of the recent deal wins in Insurance, the management is confident of growth being better in this vertical going ahead. Apart from this, Energy, certain parts of Retail and Telecom continue to be under stress Zero distance/zero bench: INFO has managed to bring its zero distance initiative to 100% of the projects. A third of these initiatives have stemmed from the bench, which the company is utilizing in driving value to the organization under its zero bench programme. 70% of the bench is currently engaged in delivering such projects. Margin headwinds in 1QFY17: Going into FY17, INFO is expected to face the pressure of wage hikes and visa expenses in 1Q. The company has decided upon 6-12% hike for offshore employees (higher end for juniors and lower end for seniors) and 1.5-2% for onsite employees, depending on trends in the respective geographies. RSU option plan for employees: INFO introduced a RSU option plan for employees. This would commence with employees at a managerial level. However, the company intends to extend the plan to all employees as was the case earlier. Various margin levers at disposal: In the near-term margins are expected to be supported by various operational parameters, more room for improvement in utilization and increased offshoring. In the mid-long term however, margins are expected to be aided by increased automation, and higher value driven by freed-up employees and newer services. Lower yields and higher taxes expected in FY17: On the back of lowering interest rates in India, the yield on cash and investments is expected to decline to 7.5% in FY17. Moreover, the effective tax rate is expected to be higher (29-30%) in FY17 as some of the SEZ units are expected to move from 100% tax exemption to 50%. 15 April

8 Valuation view: Gunning to regain bellwether status Journey to Infosys of the future well and truly on: INFO s strategy renew and new renewing the way of delivering existing services and also building new services of the future - resonated with the changing landscape of technology demand. Several senior personnel from SAP have been recruited to facilitate this. Successful execution of the strategy will help INFO regain its bellwether status with industry-leading growth at strong profitability. Addressed various pain points under new management: Over the past 4-5 quarters, INFO s improving traction is demonstrated in multiple areas: 1. Volume growth has picked up gradually from 9.3% in FY15 to 14.5% YoY in FY Improvement in client mining top-10 accounts, which were flattish till have turned around impressively. Top account has grown 17.1% in FY16 (compared to -5.6% in FY15). Similarly, the top 2-5 accounts have grown by 9.3% in FY16, compared to 0.7% in FY Deal wins have picked up, with TCV of USD2.8b in FY16 being 45% higher than that in FY15. INFO hasn t factored in an additional USD440m from deals that have been framed but not concluded. 4. Flux in the senior management has been addressed. Standalone attrition declined from 18.9% in FY15 to 13.6% in FY Cost optimization levers have helped deliver on margins despite pricing pressure IT Services utilization excluding trainees is up to 81% in FY16 and FY15, from 77% in FY14 and 73% in FY13. After cost optimization, pricing aggression puts margins in limelight: INFO s cost structures have stabilized, allowing it to balance investments and profitability without having significant volatility on the margins. While there remains room to improve utilization, optimizing onsite employee and subcontractor costs in the near to medium term, these may in the best case offset the headwind from wage hikes and lower pricing. Velocity of benefits from new initiatives like automation will be crucial, in the absence of which, execution on the margins will get challenging. However, we see this as a sector-wide phenomenon and believe outperformance on revenue growth will aid relatively better show on profitability too. Expect momentum to continue, Buy: The stock trades at 17.5x / 15.3x our FY17E/18E earnings. We expect INFO to grow its revenue at a CAGR of 13.3% over FY16-18 and EPS at a CAGR of 14% during this period. Our price target of INR1,350 discounts forward earnings by 18x, which is in line with the historical band. Also, given the company s gradual recovery to industry growth and our belief that INFO s performance in FY17 will be at the higher end of the industry band, we see it command a premium to peers. Maintain Buy. Key triggers Strong 1QFY17 margin performance despite headwinds from wage hikes and visa costs Uptick in large deal TCV in traditional business Uptick in discretionary spending 15 April

9 Key risk factors Demand slowdown under the prevailing macro. Margin fall due to accelerated investments and pricing aggression. Industry-wide pricing concern following aggressive stance of select players Exhibit 13: INFO 1 year forward PE chart Exhibit 14: INFO 1-year forward PB chart PE (x) Peak(x) Avg(x) Min(x) PB (x) Peak(x) Avg(x) Min(x) Apr-06 Jul-07 Oct-08 Jan-10 Apr-11 Jul-12 Oct-13 Jan-15 Apr-16 Apr-06 Jul-07 Oct-08 Jan-10 Apr-11 Jul-12 Oct-13 Jan-15 Apr-16 Exhibit 15: Comparative valuation Company Mkt cap Rating TP (INR) Upside EPS (INR) P/E (x) RoE (%) FY16-18E CAGR (%) (USD b) (%) FY16E FY17E FY18E FY16E FY17E FY18E FY16E FY17E FY18E USD rev. EPS TCS 74.8 Neutral 2, Infosys 40.3 Buy 1, Wipro 21.7 Neutral HCL Tech 17.8 Buy 1, TechM 6.8 Neutral Cognizant 37.0 Not Rated April

10 Operating metrics Exhibit 16: Operating metrics Verticals (%) Banking and Financial Services Insurance Manufacturing Retail & CPG Transport & Logistics Life Sciences Healthcare Energy & Utilities Communication & Services Others Service Lines (%) Development Maintainence Infrastructure Management Testing Business process management Engg Services Others BITS CSI Products BPM Platforms Others PPS Geography (%) North America Europe India RoW Clients (%) Revenues from top client Revenues from top 5 clients Revenues from top 10 clients Revenues from 2-5 client Revenues from 6-10 clients Revenues from Non-Top 10 clients Clients added during the quarter Total active client ,011 1, April

11 Exhibit 17: Operating metrics QoQ Growth (%) Verticals Banking and Financial Services Energy & Utilities Insurance Manufacturing Others Retailing Telecom Transportation Service Lines Development Maintenance Infrastructure Management Consulting & Package Implementation Testing Engg Services Business process management Others Products Geography North America Europe India RoW Clients Revenues from top client Revenues from top 5 clients Revenues from top 10 clients Revenues from Non-Top 10 clients Revenues from 2-5 client Revenues from 6-10 clients April

12 Story in charts Exhibit 18: Structural growth recovery playing out Exhibit 19: more evident in CC performance Revenue (USD m) Growth (% QoQ) , ,991 2,066 2,100 2,092 2, ,256 2,133 2,218 2,3922,4072, CC Revenue growth (QoQ %) Exhibit 20: Expect a higher normal for utilization (including products) with focus on increasing productivity Util. Incl Trainees (%) Util. Excl Trainees (%) Exhibit 21: Deal signings steadily improving Deal signings TCV (USD m) Exhibit 22: Expect industry leading growth in FY17 Exhibit 23: Further improvement seen in attrition Revenue (USD m) Growth (% YoY) Voluntary Attrition rate (% LTM) ,041 6,994 7,398 8,249 8,711 9,501 10,785 12,188 FY11 FY12 FY13 FY14 FY15 FY16 FY17E FY18E April

13 Financials and Valuation Infosys Key assumption E 2018E INR/USD Rate Revenues (USD m) 6,041 6,994 7,398 8,249 8,711 9,501 10,785 12,188 Offshore Revenue (%) Total Headcount 130, , , , , , , ,855 Net Addition 17,024 19,174 6,694 3,717 15,782 17,857 31,822 29,989 Gross Addition 43,120 45,605 37,036 39,985 53,386 52,545 57,500 56,750 Utilization Incl. trainees (%) Utilization Excl. trainees (%) Per Capita Revenue Prod. (USD) 49,392 49,812 48,245 52,029 51,760 51,325 51,370 50,601 Income Statement (INR Million) Y/E Mar E 2018E Net Sales 275, , , , , , , ,138 Change (%) EBITDA 89, , , , , , , ,395 EBITDA Margin (%) Depreciation 8,540 9,370 11,284 13,740 10,690 14,590 16,926 17,212 EBIT 81,020 97, , , , , , ,183 Other Income 12,110 19,040 23,590 26,690 34,270 31,250 30,509 27,568 Extraordinary items , PBT 93, , , , , , , ,752 Tax 24,900 33,670 33,670 40,620 49,290 52,520 62,410 71,558 Tax Rate (%) Min. Int. & Assoc. Share Reported PAT 68,230 83,160 94, , , , , ,194 Adjusted PAT 68,230 83,160 94, , , , , ,194 Change (%) Balance Sheet (INR Million) Y/E Mar E 2018E Share Capital 2,860 2,860 2,860 2,860 5,720 11,440 11,440 11,440 Reserves 270, , , , , , , ,875 Net Worth 273, , , , , , , ,315 Total Capital Employed 273, , , , , , , ,315 Gross Fixed Assets 84,460 91, , , , , , ,278 Less: Acc Depreciation 32,540 36,210 42,080 55,250 64,220 74,510 93, ,518 Net Fixed Assets 51,920 55,530 75,460 85, , , , ,760 Capital WIP 5,250 10,340 16,600 18,320 14,400 18,930 17,110 17,110 Investments 10,840 3,770 17,390 45,230 24,130 21,050 22,920 22,920 Current Assets 244, , , , , , , ,261 Debtors 58,960 77,550 95, , , , , ,351 Cash & Bank 166, , , , , , , ,140 Loans & Adv, Others 19,000 30,380 40,560 50,340 81, , , ,770 Curr Liabs & Provns 39,600 48,870 65,540 95, , , , ,736 Curr. Liabilities 25,960 30,810 41,300 56,180 70,180 79,760 99, ,900 Provisions 13,640 18,060 24,240 39,070 45,710 56,340 71,488 73,836 Net Current Assets 205, , , , , , , ,525 Total Assets 273, , , , , , , , April

14 Financials and valuation Infosys Ratios Y/E Mar E 2018E Basic (INR) EPS Cash EPS Book Value DPS Payout (incl. Div. Tax.) Valuation(x) P/E Cash P/E Price / Book Value EV/Sales EV/EBITDA Dividend Yield (%) Profitability Ratios (%) RoE RoCE Turnover Ratios (%) Fixed Asset Turnover (x) Debtors (No. of Days) Net Debt/Equity (x) Cash Flow Statement (INR Million) Y/E Mar E 2018E Adjusted EBITDA 89, , , , , , , ,395 Non cash opr. exp (inc) 11,790 19,660 21,960 22,500 35,450 31,260 31,029 27,568 (Inc)/Dec in Wkg. Cap. -15,530-21,320-9, ,770-24,275-4,798-25,127 Tax Paid -24,900-33,670-32,930-38,780-49,290-52,520-62,410-71,558 CF from Op. Activity 60,920 71,830 95, , , , , ,278 (Inc)/Dec in FA & CWIP -12,470-18,070-32,470-27,450-35,370-37,278-24,218-28,000 Free cash flows 48,450 53,760 62,550 95,190 74,040 87, , ,278 (Pur)/Sale of Invt 33,030 7,070-18,040-22,580 21,100 3,287 11,949 0 CF from Inv. Activity 20,560-11,000-50,510-50,030-14,270-33,991-12,269-28,000 Inc/(Dec) in Net Worth Inc / (Dec) in Debt Divd Paid (incl Tax) & Others -35,930-21,580-31,210-31,430-50,970-68,403-82,913-82,913 CF from Fin. Activity -35,930-21,580-32,100-31,430-50,970-68,403-82,913-82,913 Inc/(Dec) in Cash 45,550 39,250 12,410 41,180 44,170 22,861 70,264 56,365 Add: Opening Balance 121, , , , , , , ,795 Closing Balance 166, , , , , , , , April

15 Corporate profile Company description Infosys is the second-largest IT services company in India with revenue of USD9.5b (LTM) and employing over 194,000+ people. It defines designs and delivers ITenabled business solutions that help many Global 2000 companies win in a flat world. INFY has a global footprint in over 30 countries and development centers in India, China, Australia, the UK, Canada and Japan. Company's service offerings span business and technology consulting, ADM, SI, product engineering, IT infrastructure services and BPO. Exhibit 1: Sensex rebased Source: MOSL/Bloomberg Exhibit 2: Shareholding pattern (%) Dec-15 Sep-15 Dec-14 Promoter DII FII Others Note: FII Includes depository receipts Source: Capitaline Exhibit 3: Top holders Holder Name % Holding LIC of India 5.5 Abu Dhabi Investment Authority 2.5 Oppenheimer Developing Markets Fund 2.2 Government of Singapore 2.2 HDFC Trustee Company Ltd 1.6 Source: Capitaline Exhibit 4: Top management Name R Seshasayee Vishal Sikka U B Pravin Rao Manikantha A G S Designation Chairman (Non-Executive) Managing Director & CEO Whole Time Director & COO Company Secretary Exhibit 5: Directors Name Jeffrey S Lehman Ravi Venkatesan John Etchemendy Name Kiran Mazumdar Shaw Roopa Kudva Source: Capitaline *Independent Exhibit 6: Auditors Name BSR & Co LLP KPMG Parameshwar G Hegde Singhvi Dev & Unni Type Statutory Independent Secretarial Audit Internal Exhibit 7: MOSL forecast v/s consensus EPS MOSL Consensus (INR) forecast forecast Variation (%) FY FY Source: Bloomberg Source: Capitaline 15 April

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