Bata India (BATIND) 740

es Result Update Rating matrix Rating : Buy Target : 880 Target Period : 12 months Potential Upside : 19% What s changed? Target Unchanged EPS FY18E Changed from 17.9 to 17.6 EPS FY19E Changed from 22.0 to 22.2 EPS FY20E Unchanged Rating Unchanged Quarterly performance Q2FY18 Q2FY17 YoY (%) Q1FY18 QoQ (%) Revenue 586.9 577.9 1.5 736.1-20.3 EBITDA 64.5 57.3 12.7 95.5-32.5 EBITDA (%) 11.0 9.9 109 bps 13.0-199 bps PAT 43.0 34.6 24.2 60.4-28.9 Key financials ( crore) FY17 FY18E FY19E FY20E Net Sales 2,467 2,755 3,187 3,675 EBITDA 278 344 430 527 Net Profit 159 226 285 365 EPS ( ) 12.4 17.6 22.2 28.4 Valuation summary FY17 FY18E FY19E FY20E P/E 59.9 42.1 33.4 26.1 Target P/E 71.2 50.1 39.6 31.0 EV to EBITDA 32.4 25.9 20.6 16.7 Price to book 7.2 6.4 5.7 5.0 RONW (%) 12.0 15.3 17.1 19.0 ROCE (%) 16.0 18.3 20.8 22.6 Stock data Particular Amount Market Capitalisation ( Crore) 9,536.8 Debt (FY17) ( Crore) - Cash (FY17) ( Crore) 598.9 EV ( Crore) 8,937.9 52 week H/L 833 / 400 Equity Capital ( Crore) 64.3 Face Value ( ) 5 Price performance 1M 3M 6M 12M Bata India -0.6 18.7 37.9 81.7 Relaxo Footwear 9.6 15.0 17.7 40.1 Liberty Shoes 0.0 42.7 40.7 69.5 Research Analysts Bharat Chhoda bharat.chhoda@icicisecurities.com Cheragh Sidhwa cheragh.sidhwa@icicisecurities.com November 16, 2017 Bata India (BATIND) 740 Space rationalisation aids EBITDA margins Bata India reported a mixed set of Q2FY18 numbers wherein revenues were below our estimates while profitability was above our estimates. Revenues for the quarter grew marginally by 1.5% YoY to 586.9 crore (I-direct estimate: 614.3 crore). Bata s wholesale business (~15% of total sales) continued to remain under pressure owing to GST transition. Revenues from the wholesale channel declined ~10% YoY dragging overall revenue growth. Retail segment revenues grew 2% YoY. Post GST implementation, excise duty was subsumed in GST and not a part of revenue. After adjusting for the same, revenue from the retail segment grew 7% YoY with like to like sales (LTL) growth of ~5% Higher proportion of value added products in the revenue mix and controlled operational cost led to EBITDA margin improvement of 110 bps YoY to 11% (I-direct estimate: 9.2%) and EBITDA growth of 12.6% YoY to 64.5 crore (I-direct estimate: 56.5 crore) Higher other income (up 44% YoY to 14.8 crore) coupled with decline in depreciation cost (down 10% YoY to 14.4 crore) and interest expense (down 39% YoY to 0.8 crore), further accelerated the PAT growth. The resultant PAT came in at 42.9 crore (I-direct estimate: 37.9 crore), up 24% YoY Focus on high growth women segment to spur revenues The women s market will be the key area of focus for Bata in FY18. It intends to scale up the share of women s category in the product mix from 26% in FY17 to 35% in the next two years. We believe Bata is well placed to cash in on this opportunity as the women s segment is expected to outpace the growth in men s segment by FY20 given the ever increasing number of working women and higher disposable income. Slew of initiatives to perk up revenues and earnings; maintain BUY! In order to enhance the consumer shopping experience, Bata has constantly undertaken various efforts to improve the retail experience. For the quarter, Bata refurbished 30 existing stores with new décor and curtailed unwanted retail space to rationalise its rental cost and enhance revenue per sq ft of a store. The efforts were evident with a decline in rental expense by 6.9% sequentially to 88.1 crore (Q3FY17: 90 crore, Q4FY17: 94.0 crore and Q1FY18: 94.8 crore). Over the years, Bata has gradually shifted its focus towards tapping the fashion conscious youth, working women and children through introduction of latest and trendier styles of footwear. Bata launched new category of footwear catering to the age-group of 10-14 years old ( Tweens ) to widen its target audience. It also launched Glidesteam & Airwalk collections under the Power brand. Its recent premium offerings through categories such as Hush Puppies, Naturalizer, European Collection and Power have witnessed healthy traction. Higher focus on premium brands has translated into gross margin expansion for the last couple of quarters. In Q2FY18, gross margins improved 90 bps YoY to 55.1%. Bata added 29 stores in Q2FY18 taking the total count to 67 in H1FY18. The company is in line to meet its guidance to open more than 120 stores this financial year. We expect revenue growth to pick up from Q3FY18 onwards driven by the ensuing festive season and normalisation gradually settling in at the wholesale level post GST disruptions. We expect revenue and EBITDA to grow at a CAGR of 14.2% and 23.8%, respectively, over FY17-20E. We reiterate our BUY rating on Bata with a target price of 880 (31.0x FY20 EPS of 28.4). ICICI Securities Ltd Retail Equity Research

Variance analysis Q2FY18 Q2FY18E Q2FY17 YoY (%) Q1FY18 QoQ (%) Comments Revenue 586.9 614.3 577.9 1.5 736.1-20.3 Subdued topline growth owing to decline in wholesale distribution business Raw Material Expense 263.4 285.7 264.7-0.5 350.8-24.9 Gross Margin (%) 55.1 53.5 54.2 92 bps 52.3 185 bps Employee Expense 71.0 74.3 69.0 2.9 74.1-4.1 Rental Expenses 88.1 94.6 88.6-0.5 94.8-7.1 Other Expenses 99.9 103.2 98.4 1.5 120.8-17.3 On account of higher proportion of value added products in the product mix, gross margins improved 90 bps YoY to 55.1%. EBITDA 64.5 56.5 57.3 12.6 95.5-32.5 EBITDA Margin (%) 11.0 9.2 9.9 108 bps 13.0-200 bps Decline in rental cost aided the margins Depreciation 14.4 15.7 16.0-9.8 13.7 4.8 Interest 0.8 1.1 1.3-39.3 0.9-13.7 Other Income 14.8 15.1 10.3 43.6 11.6 28.0 Exceptional Item 0.00 0.00 0.00 NA 0.00 NA PBT 64.1 54.9 50.4 27.3 92.5-30.7 Tax Outgo 21.22 17.0 15.8 34.6 32.1-33.9 PAT 42.9 37.9 34.6 24.0 60.4-29.0 Lower depreciation and interest cost and higher other income, supported PAT growth Change in estimates FY18E FY19E FY20E ( Crore) Old New % Change Old New % Change Old New % Change Revenue 2,754.8 2,754.8 0.0 3,158.5 3,187.3 0.9 3,632.2 3,674.9 1.2 EBITDA 349.9 344.3-1.6 428.2 430.3 0.5 529.3 527.4-0.4 EBITDA Margin (%) 12.7 12.5-20 bps 13.6 13.5-6 bps 14.6 14.4-22 bps PAT 229.6 225.8-1.7 283.3 285.2 0.7 365.4 364.7-0.2 EPS ( ) 17.9 17.6-1.9 22.0 22.2 0.9 28.4 28.4-0.1 ICICI Securities Ltd Retail Equity Research Page 2

Exhibit 1: Bata brands Company Analysis Revenues to grow at CAGR of 14.2% for FY17-20E Bata has adopted a strategy to design products based on various consumers. Other than its leather footwear, the company has started focusing on products catering to the youth, women and kids along with brand extensions in the accessories segment. The company is lining up new launches in the youth-oriented space through its sub-brands like Power, Weinbrenner and Footin. Upcoming new brands will be more casual and stylish to attract the youth. Bata is also focusing on increasing its online presence through innovations to provide a user friendly shopping experience on mobile application and websites with interactive interfaces. Bata plans to expand its online presence via placement of online kiosks in major retail stores, tie-up with payment banks and increasing the presence of product offerings through partner websites. In FY17, it sold 6.3 lakh pairs of footwear through online channel and achieved revenue of 69.2 crore. At the top of the product pyramid for Bata, it has placed the brand Hush Puppies. The brand has a presence through 75 exclusive brand stores and 56 shop-in-shops in premium departmental stores. The company is planning to position Hush Puppies as an international premium lifestyle brand, which will be more comfortable and contemporary fashion style. The company is also aggressively focusing on children s footwear through the Bubblegummers brand. As per the company, this segment has huge potential with ~18% of India s population below 10 years of age. Going forward, we expect revenue growth to revive from H2FY18 onwards on account of improved product mix and company following dual strategy of driving SSSG and opening new stores in untapped locations via franchisee route. We expect revenues to increase from 2467 to 3675, translating into a CAGR of 14.2% in FY17-20E. Exhibit 2: Revenue trend crore 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500-3,675 3,187 2,694 2,755 2,415 2,467 2,065 1,842 1,543 1,258 CY10 CY11 CY12 CY13 FY15 FY16 FY17 FY18E FY19E FY20E ; FY15 is for 15 months ICICI Securities Ltd Retail Equity Research Page 3

Focus on expansion via franchise stores During FY17, Bata added 100 new retail stores and 23 franchisee outlets across India taking the total store count to 1293 spread across 2.62 mn sq feet. To tap the opportunities and expand its footprints in Tier II and Tier III markets, it intends to open 50 new stores in FY18 via the franchisee route. Alongside, the company also plans to add 100 new retail stores via the COCO format to increase its presence in malls and high-street locations. Bata has adopted a dual strategy of driving same stores sales growth (SSSG) while adding new stores every year. Also, the company will continue renovating existing stores and improving layouts with the objective of increasing same store sales growth for these stores EBITDA margins to improve on back of higher share of premium brands For FY17, EBITDA margins remained suppressed on account of stagnant revenue growth and higher fixed overheads such as rent expense and employee cost, resulting in negative operating leverage. Operating margins remained flattish YoY at 11.3% in FY17 while absolute EBITDA grew 2.8% YoY to 277.9 crore. However, we expect margins to stabilise in FY18E owing to a) revival in revenue growth b) improved product mix (higher share of premium brands) and c) higher SSSG from existing stores. Exhibit 3: EBITDA margins to improve from FY18E onwards 600 20 ( crore) 500 400 300 200 100 15.5 15.5 239 285 16.2 334 12.4 335 11.4 11.3 276 278 12.5 344 430 13.5 14.4 527 15 10 (%) - CY11 CY12 CY13 FY15 FY16 FY17 FY18E FY19E FY20E 5 EBITDA EBITDA Margin ICICI Securities Ltd Retail Equity Research Page 4

PAT, return ratios to recover from FY18E onwards PAT for FY17 declined 27.4% YoY to 158.7 crore on account of subdued revenue growth and one-time exceptional expense of voluntary retirement scheme for the Faridabad unit, which was at 21.7 crore. Going forward, we anticipate a revival in PAT from FY18E onwards. We expect PAT to increase from 159 crore in FY17 crore to 365 crore in FY20E, translating to a CAGR of 32%. (%) Simultaneously, return ratios are likely to pick up, going forward. We expect return on capital employed to increase from 16.1% in FY17 to 23% in FY20E. Exhibit 4: PAT margin to improve FY18E onwards Exhibit 5: and return ratios to improve FY18E onwards ( crore) 400 350 300 250 200 150 100 50-191 9.2 231 8.6 218 9.0 159 6.4 226 8.2 285 8.9 365 9.9 CY13 FY15 FY16 FY17 FY18E FY19E FY20E 15 10 5 (%) 45 38 31 24 17 10 33 33 34 39 33 25 24 25 23 23 21 23 18 18 16 17 19 16 12 15 CY10 CY11 CY12 CY13 FY15 FY16 FY17 FY18E FY19E FY20E PAT PAT Margin RoE RoCE ICICI Securities Ltd Retail Equity Research Page 5

Valuation We believe the management is on the right track to achieve healthy topline growth via: a) retail expansion through franchisee route in Tier II & Tier III cities and b) improved visual merchandising, refurbishment of existing stores and new styles of footwear to drive SSSG. In addition, constant enhancement of product mix through increase in share of premium products will aid operating margins. We expect revenue growth to pick up from Q3FY18 onwards driven by the ensuing festive season and normalisation gradually settling in at the wholesale level post GST disruptions. We expect revenue and EBITDA to grow at a CAGR of 14.2% and 23.8% respectively over FY17-20E. We reiterate our BUY recommendation on the stock with a target price of 880 (31.0x FY20 EPS of 28.4). Exhibit 6: Valuations Sales Growth EPS Growth PE EV/EBITDA RoNW RoCE ( cr) (%) ( ) (%) (x) (x) (%) (%) FY17 2467.2 2.1 12.4-27.0 59.9 32.4 12.0 16.0 FY18E 2754.8 11.7 17.6 42.2 42.1 25.9 15.3 18.3 FY19E 3187.3 15.7 22.2 26.3 33.4 20.6 17.1 20.8 FY20E 3674.9 15.3 28.4 27.9 26.1 16.7 19.0 22.6 ICICI Securities Ltd Retail Equity Research Page 6

Recommendation history vs. consensus estimate ( ) 950 850 750 650 550 450 350 250 Nov-15 Jan-16 Apr-16 Jun-16 Aug-16 Nov-16 Jan-17 Apr-17 Jun-17 Sep-17 100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Nov-17 (%) Price Idirect target Consensus Target Mean % Consensus with BUY Source: Bloomberg, Company, ICICIdirect.com Research Key events Date Event Jan-11 From the 10-12% topline growth, the company starts to report revenue growth in excess of 20% Sep-11 In Q3CY11, the company achieved a topline growth of 26.3% YoY. The operating margin too expanded from 12.8% (Q3CY10) to 14.5% (Q3CY11) Dec-11 After a series of margin expansions over the last five to seven years, the operating margin remains flat at 15.5% for CY11 May-12 The company continues to post robust topline growth. The PAT growth was even faster considering margin expansion Apr-13 The rate of topline growth comes down to low double digits and as margins remain flattish, pace of PAT growth starts to decline. PAT grows 6.8% in Q1CY13 Jul-13 Bata announces plans to open 100 stores each year thereby increasing the scope for revenue growth Jan-14 The company's growth rate slipped to higher single digits on the back of dampened consumer sentiment. Revenues grew ~9% in Q4CY13 and Q1CY14. Similarly, PAT growth slipped to the 2.5-3.5% range May-15 Announces stock split from face value 10 to 5 Aug-15 Ties up US footwear brand Caterpillar Sep-15 Bata stock split from face value 10 to 5 Dec-16 Lining up new launches in youth oriented space through its sub-brands like 'Power' and 'Weinbrenner' Mar-17 Extension of EOSS period impacts margin in Q4FY17 Top 10 Shareholders Rank Investor Name Latest Filing Date % O/S Position (m) Change (m) 1 Bata (BN) B.V. 30-Sep-17 52.96% 68.1 0.00 2 Life Insurance Corporation of India 30-Sep-17 4.66% 6.0-2.40 3 Franklin Templeton Asset Management (India) Pvt. Ltd. 30-Jun-17 3.71% 4.8 0.05 4 Aditya Birla Sun Life AMC Limited 31-Oct-17 2.22% 2.9 0.13 5 FIL Investment Management (Singapore) Ltd. 30-Sep-17 2.00% 2.6 0.00 6 Kotak Mahindra Asset Management Company Ltd. 30-Sep-17 1.95% 2.5-0.04 7 ICICI Prudential Asset Management Co. Ltd. 30-Sep-17 1.82% 2.3-0.13 8 IDFC Asset Management Company Private Limited 30-Sep-16 1.16% 1.5 0.00 9 Kotak Mahindra Old Mutual Life Insurance, Ltd. 30-Jun-17 1.06% 1.4 0.06 10 HDFC Asset Management Co., Ltd. 30-Sep-17 0.78% 1.0 0.00 Source: Reuters, ICICIdirect.com Research Shareholding Pattern (in %) Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Promoter 53.0 53.0 53.0 53.0 53.0 FII 5.8 5.6 6.8 6.8 8.7 DII 21.8 22.8 21.3 21.3 22.8 Others 19.5 18.6 19.0 19.0 15.6 Recent Activity BUY SELL Investor Name Value Shares Investor Name Value Shares Aditya Birla Sun Life AMC Limited 1.6 0.1 Life Insurance Corporation of India -25.4-2.4 Sundaram Asset Management Company Limited 1.2 0.1 ICICI Prudential Asset Management Co. Ltd. -1.4-0.1 Tata Asset Management Limited 1.0 0.1 Union KBC Asset Management Company Pvt. Ltd. -0.8-0.1 Kotak Mahindra Old Mutual Life Insurance, Ltd. 0.5 0.1 Kotak Mahindra Asset Management Company Ltd. -0.4 0.0 Franklin Templeton Asset Management (India) Pvt. Ltd. 0.4 0.1 Nordea Funds Oy -0.3 0.0 Source: Reuters, ICICIdirect.com Research ICICI Securities Ltd Retail Equity Research Page 7

Financial summary ES Profit and loss statement Crore (Year-end March) FY17 FY18E FY19E FY20E Total operating Income 2,467.2 2,754.8 3,187.3 3,674.9 Growth (%) 2.1 11.7 15.7 15.3 Raw Material Expenses 1,152.8 1,261.7 1,450.2 1,635.3 Employee Expenses 272.7 303.0 363.3 418.9 Mfg, Admin & selling Exps 764.0 845.7 943.4 1,093.3 Total Operating Expenditure 2,189.5 2,410.4 2,757.0 3,147.6 EBITDA 277.6 344.3 430.3 527.4 Growth (%) 0.7 24.0 25.0 22.6 Depreciation 65.0 74.1 83.4 94.0 Interest 4.0 2.8 3.2 3.7 Other Income 46.6 55.1 63.7 76.8 Exceptional Item -21.7 0.0 0.0 0.0 PBT 233.6 322.5 407.4 506.5 Growth (%) 15.0 26.4 26.3 24.3 Total Tax 74.8 96.8 122.2 141.8 PAT 158.8 225.8 285.2 364.7 Growth (%) -27.0 42.2 26.3 27.9 EPS ( ) 12.4 17.6 22.2 28.4 Cash flow statement Crore (Year-end March) FY17 FY18E FY19E FY20E Profit After Tax 158.8 225.8 285.2 364.7 Add: Depreciation 65.0 74.1 83.4 94.0 (Inc)/dec in Current Assets -25.7-62.3-186.1-218.2 Inc/(dec) in CL and Provisions 88.8 29.2 90.4 63.5 Others 0.0 0.0 0.0 0.0 CF from operating activities 286.9 266.9 272.9 304.0 (Inc)/dec in Fixed Assets -28.8-140.0-131.9-125.4 (Inc)/dec in CWIP -10.9 21.4 1.7 1.4 (Inc)/dec in Investments 0.0 0.0 0.0 0.0 Others -11.3 3.1-12.7 0.0 CF from investing activities -51.0-115.5-142.8-124.1 Issue/(Buy back) of Equity 0.0 0.0 0.0 0.0 Inc/(dec) in loan funds 0.0 0.0 0.0 0.0 Others -55.6-73.3-92.6-118.4 CF from financing activities -55.6-73.3-92.6-118.4 Net Cash flow 180.3 78.0 37.5 61.5 Opening Cash 340.6 520.9 598.9 636.4 Closing Cash 520.9 598.9 636.4 697.8 Balance sheet Crore (Year-end March) FY17 FY18E FY19E FY20E Liabilities Equity Capital 64.3 64.3 64.3 64.3 Reserve and Surplus 1,261.0 1,413.4 1,606.0 1,852.2 Total Shareholders funds 1,325.2 1,477.7 1,670.2 1,916.4 Total Debt - - - - Deferred Tax Liability - - - - Minority Interest / Others - - - - Total Liabilities 1,325.2 1,477.7 1,670.2 1,916.4 Assets Gross Block 404.1 544.1 675.9 801.4 Less: Accu Depreciation 138.2 212.3 295.7 389.8 Net Block 265.9 331.8 380.2 411.6 Capital WIP 24.3 8.5 6.8 5.4 Intangibe Assets under develop 5.6 - - - Total Fixed Assets 295.8 340.3 387.0 417.1 Investments 5.0 5.0 5.0 5.0 Inventory 705.4 754.7 873.2 1,037.0 Debtors 67.1 75.5 87.3 100.7 Loans and Advances 175.1 179.1 229.5 264.6 Other Current Assets 52.8 53.4 58.8 64.6 Cash 520.9 598.9 636.4 697.8 Total Current Assets 1,521.3 1,661.6 1,885.2 2,164.8 Current Liabilities 581.6 604.2 689.2 746.9 Provisions 15.6 22.2 27.7 33.5 Total Current Liabilities 597.2 626.4 716.9 780.3 Net Current Assets 924.1 1,035.1 1,168.3 1,384.4 Deferred Tax Assets 100.4 97.3 110.0 110.0 Application of Funds 1,325.2 1,477.7 1,670.2 1,916.4 Key ratios (Year-end March) FY17 FY18E FY19E FY20E Per share data ( ) EPS 12.4 17.6 22.2 28.4 Cash EPS 17.4 23.3 28.7 35.7 BV 103.1 115.0 130.0 149.1 DPS 3.5 4.9 6.2 7.9 Cash Per Share 40.5 46.6 49.5 54.3 Operating Ratios EBITDA Margin (%) 11.3 12.5 13.5 14.4 PBT Margin (%) 9.5 11.7 12.8 13.8 PAT Margin (%) 6.4 8.2 8.9 9.9 Inventory days 101.2 100.0 100.0 103.0 Debtor days 10.0 10.0 10.0 10.0 Creditor days 161.8 154.0 155.0 150.0 Return Ratios (%) RoE 12.0 15.3 17.1 19.0 RoCE 16.0 18.3 20.8 22.6 RoIC 19.9 25.8 27.7 30.0 Valuation Ratios (x) P/E 59.9 42.1 33.4 26.1 EV / EBITDA 32.4 25.9 20.6 16.7 EV / Net Sales 3.6 3.2 2.8 2.4 Market Cap / Sales 3.8 3.5 3.0 2.6 Price to Book Value 7.2 6.4 5.7 5.0 Solvency Ratios Debt/EBITDA 0.0 0.0 0.0 0.0 Debt / Equity 0.0 0.0 0.0 0.0 Current Ratio 2.5 2.7 2.6 2.8 Quick Ratio 1.4 1.4 1.4 1.4. ICICI Securities Ltd Retail Equity Research Page 8

ICICIdirect.com coverage universe (Retail) CMP M Cap EPS ( ) P/E (x) EV/EBITDA (x) RoCE (%) Sector / Company ( ) TP( ) Rating ( Cr) FY17 FY18E FY19E FY17 FY18E FY19E FY17 FY18E FY19E FY17 FY18E FY19E FY17 FY18E FY19E Bata India 740 880 Buy 9,511 12.4 17.6 22.2 59.9 42.1 33.4 32.4 25.9 20.6 16.0 18.3 20.8 12.0 15.3 17.1 Shoppers Stop 541 650 Buy 4,502-2.4 2.9 10.3 NA 188.0 52.6 27.1 20.7 16.9 5.8 9.8 12.2-2.6 2.6 8.7 Titan Company (TITIND) 766 783 Buy 68,971 8.0 12.1 15.8 95.6 63.1 48.5 50.0 38.2 30.1 24.7 27.8 30.2 16.8 21.8 24.0 Trent 305 350 Buy 10,135 1.8 3.8 5.4 172.8 80.1 56.6 83.5 59.4 49.2 7.4 9.4 11.2 3.8 8.2 11.2 ABFRL 151 195 Buy 11,669 0.7 0.4 1.5 217.5 404.5 101.7 32.0 30.2 25.1 7.5 7.7 9.9 5.6 2.9 10.4 RoE (%) ICICI Securities Ltd Retail Equity Research Page 9

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 400 093 research@icicidirect.com ICICI Securities Ltd Retail Equity Research Page 10

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Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies mentioned in the report. We submit that no material disciplinary action has been taken on ICICI Securities by any Regulatory Authority impacting Equity Research Analysis activities. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject ICICI Securities and affiliates to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. 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