Phillips Carbon Black (PHICAR) 255

Result Update Rating matrix Rating : Buy Target : 35 Target Period : 12-18 months Potential Upside : 37% What s changed? Target Changed from 3 to 35 EPS FY17E Changed from 15. to 17.5 EPS FY18E Changed from 3. to 35. EPS FY19E Introduced at 41.5 Rating Unchanged Key financials Net Sales 1894.7 1848.7 1975. 23.7 EBITDA 165. 239.6 266.8 284.5 Net Profit 22.7 6.1 12.7 143.2 EPS 6.6 17.5 35. 41.5 Valuation summary P/E 38.4 14.6 7.3 6.1 Target P/E 52.7 2.1 1. 8.4 EV / EBITDA 1.6 7. 6.2 5.6 P/BV 1.7.8.7.7 RoNW* 4.4 1.5 17.9 18. RoCE* 7.1 12.4 13.4 13.6 ROIC* 8.4 12.4 13.2 13.4 * Return ratios adjusted for revaluation reserve amounting to ~ 5 crore in FY17E-19E Stock data Stock Data Market Capitalization 879 Total Debt (FY16) 121 Cash and Cash Equivalent (FY16) 149. Enterprise Value 1752. 52 week H/L 29 / 8 Equity Capital 34.5 Face Value 1 MF Holding (%).2 FII Holding (%) 7.5 Stock data 1M 3M 6M 12M Phillips Carbon Black 11.3-1.2 31.1 124.4 Oriental Carbon (OCCL) 3.1 17.4 27.7 53.5 Research Analyst Chirag J Shah shah.chirag@icicisecurities.com Shashank Kanodia, CFA shashank.kanodia@icicisecurities.com Walking the talk, well poised to grow January 19, 217 Phillips Carbon Black (PHICAR) 255 Phillips Carbon Black (PCBL) reported a robust Q3FY17 performance. Net sales for the quarter were at 484. crore, largely tracking robust volume growth of 2% YoY (96 tonne) EBITDA in Q3FY17 was at 64.9 crore with corresponding EBITDA margins at 13.4%. PAT in Q3FY17 was at 17.5 crore vs. 8.3 crore in Q3FY16. EBITDA/tonne in Q3FY17 was at 6756/tonne Carbon black, domestic demand largely immune to demonetisation Domestically, carbon black sales volume at PCBL grew 27% YoY to 73 tonne in Q3FY17. Robust sales volume growth amid muted auto sales domestically in Q3FY17 was on account of a steep drop in imports and consequent market share gains by domestic players. Since ~7% of tyre demand domestically is from the replacement market, which is largely contributed by the MHCV space, the impact of demonetisation was limited for carbon black players, including PCBL. It is largely a function of economic activity, which indeed is steadily gaining pace post the initial blip. Even the loss of sales in the passenger & 2W segment in Q3FY17 is expected to normalise, going forward, which shall result in pent up tyre demand thereby benefiting domestic carbon black manufacturers. PCBL with a market share in excess of 3% (carbon black) is indeed a proxy on domestic automobile industry with robust prospects, going forward. Decline in crude, anti dumping duty on Chinese imports; sweet spot! Carbon black (CB) can be manufactured using two different processes, which either use coal tar or crude derivative i.e. carbon black feedstock (CBFS) as a raw material. Post a decline in crude prices, manufacturing of carbon black using CBFS has gained traction, which benefits Indian players including PCBL. In a recent update, as of November 215 for five years i.e. till November 22, the Government of India has imposed an anti dumping duty on imports of carbon black from China into India to the tune of ~US$4/tonne (global realisations at ~US$75/tonne), which protects the interest of domestic CB manufacturer, including PCBL. Capacity expansion planned over FY16-19E; volume growth to sustain! PCBL is currently operating at ~9% plus capacity utilisation levels. Sensing the constraint, it is currently undertaking a key de-bottle-necking project wherein its capacity will increase by 18 KT (capex ~ 2 crore) with likely commissioning by FY17E end. On the other hand, it is also planning a brownfield expansion (capex ~ 2 crore) with increase in capacity by 4 KT. It involves an expansion of tyre grade carbon back of 3 KT and speciality grade carbon black of 1 KT. It will be funded entirely through internal accruals with likely commissioning in FY18-9E. Therefore, we expect volume led growth to sustain with CB sales volume growing at a CAGR of 8% in FY16-19E to 422 KT in FY19E. Earnings trajectory impressive; upgrading our estimates; reiterate BUY! PCBL has largely delivered on improved profitability in YTDFY17 backed by robust volume growth and operational efficiencies. We expect the trend to continue in FY16-19E. The absolute debt is also on a declining trend at PCBL with gross debt expected to decline by ~ 25 crore in FY17-19E. PCBL will also exhaust its DTA provisioning by Q1FY18E, which will take its effective tax rate to ~27% in FY18E and ~2% in FY19E vs. ~57% in FY17E. This will provide a big fillip to earnings at the PAT level. Factoring in the above, we expect PCBL to report PAT of 6.1 crore in FY17E & 12.7 crore in FY18E. We value PCBL at 35, i.e. 1x P/E on FY18E EPS of 35/share. We maintain BUY rating on the stock. ICICI Securities Ltd Retail Equity Research

In FY18E, PCBL will be commissioning a capacity of 18 KT (de-bottle-necking) thereby increasing its effective capacity to 429 KT with corresponding CB production expected at 41 KT and capacity utilisation level of 96% on an expanded base In FY19E, capacity utilisation is expected at 9% factoring in the increased capacity of 4 KT (likely commissioning over FY18-19E) PCBL also sells high margin speciality grade carbon black, which find application in plastics, inks, etc. Its volume in FY16 was at 5 KT (2.5 KT in FY15). Going forward, the speciality grade sales volume is expected at ~7-8 KT in FY17E, ~12 KT in FY18E & ~2 KT in FY19E, which will further drive profitability Company Analysis Phillips Carbon Black (PCBL) is an RP Sanjiv Goenka group (CESC promoter group) company manufacturing carbon black domestically. PCBL was incorporated in 196 in collaboration with Phillips Petroleum Company, US. In 1988, PCBL entered into a technical collaboration with Columbian Chemicals Company, US. PCBL s first plant for manufacturing carbon black was set up in Durgapur (West Bengal) with an installed capacity of 14 KT. It commenced production in 1962. As of FY16, PCB has four plants across India manufacturing carbon black with associated waster heat recovery power plants; Durgapur, West Bengal (147 KT, 3 MW); Mundra, Gujarat (14 KT, 3 MW); Palej, Gujarat (95 KT, 12 MW); Kochi, Kerala (9 KT, 1 MW). Producing power from waste gases makes PCBL a carbon neutral company. Carbon black - capacity utilisation inching upwards! PCBL has an effective installed capacity of 411 kilo tonne (KT) for carbon black (name plate capacity at 472 KT). In FY16, PCB operated at 81% capacity utilisation level with carbon black sales at 335 KT. Going forward, on the back of a pick-up in tyre demand domestically & imposition of anti dumping duty, PCBL is witnessing robust product demand. Capacity utilisation is expected to be augmented to 94% in FY17E with corresponding carbon black sales at 385 KT in FY17E. Exhibit 1: Capacity, production & capacity utilisation levels tonne 5 4 3 2 1 411 81 33238 411 94 38517 429 41553 469 96 9 4221 1 8 6 % Capacity Production Capacity Utilization Levels Exhibit 2: Sales volume & realisation trend Exhibit 3: Sales mix in favour of domestic sales tonne 5 4 3 2 1 54257 47377 335146 38517 45696 41553 45696 4221 1 8 6 4 2 /tonne % 1 8 6 4 2 28 24 2 2 72 77 8 8 Sales Volume Realization ( /tonne) Domestic Sales Volume Export Sales Volume Realisations of carbon black largely follow crude prices. Hence, there was the steep correction in FY16 over FY15. Going forward, we have largely assumed realisations will be flat in FY17E-19E Moreover, this sales volume growth will be led by domestic sales, which are indeed accretive in realisations and margins. Domestic to exports mix is expected to improve to 8:2 by FY18E vs. 72:28 in FY16. ICICI Securities Ltd Retail Equity Research Page 2

Exhibit 4: Domestic sales volume & realisation Realisation of carbon black in export markets (US$642/tonne in FY16) is lower than that in the domestic market (US$887/tonne) primarily due to freight and selling expense incurred by PCBL for exports. Exports will, however, continue to provide a balanced earning profile, with PCBL supplying carbon black to all major tyre manufacturers outside India. Exhibit 5: Export sales volume & realisation tonne 3 2 1 5876 4692 4692 48875 242621 29467 328442 33768 1 8 6 4 2 Domestic Sales Volume Domestic Realization /tonne tonne 1 75 5 25 425 48 48 4235 92525 95 82111 8442 1 8 6 4 2 Exports Sales Volume Exports Realization /tonne Net sales to largely remain flat; tracking muted realisations Sales growth, however, is expected to be flat (3.5% CAGR) in FY16-19E despite volume growth due to a steep correction in realisations in FY17E (blended realisations assumed at US$672/tonne vs. FY16 at US$828/tonne) largely tracking the decline in crude price. Exhibit 6: Net sales trend 25 227 2 1972 We expect PCBL to record net sales of 1846 crore in FY17E, 1972 crore in FY18E & 227 crore in FY19E 195 19 185 1893 1846 18 175 Exhibit 7: Sales break-up PCBL generates power out of waste gases generated during the manufacturing of carbon black. On an average, it generates ~11 units of electricity per tonne of carbon black produced. Its captive consumption is ~35 units with the rest ~75 units being sold to the external grid. This surplus power sales contributed a healthy ~5% of total sales and drives operational efficiencies 25 2 15 1 5 1816 1825 1876 1929 76 87 95 98 Carbon Black Sales Power Sales ICICI Securities Ltd Retail Equity Research Page 3

EBITDA/tonne (including hedging costs) is expected at 6222/tonne in FY17E, 6497/tonne in FY18E & 6739/tonne in FY19E ( 4926/tonne in FY16) Exhibit 8: EBITDA & EBITDA margins trend Margin expansion to drive EBITDA & PAT, going forward Operating leverage benefits, sales tilted in favour of domestic vis-à-vis exports, increasing share of specialty grade sales and decline in raw material price will result in expansion of EBITDA margins to the tune of 53 bps in FY16-19E. We expect PCBL to clock EBITDA margins of 13.% in FY17E, 13.5% in FY18E & 14.% in FY19E vs. 8.7% in FY16. Exhibit 9: PAT & EPS trend 3 25 2 15 1 5 13. 13.5 14. 8.7 165. 239.6 266.8 284.5 EBITDA EBITDA Margin 16 14 12 1 8 6 4 2 % 16 14 12 1 8 6 4 2 6.6 17.5 22.7 6.1 41.5 35. 12.7 143.2 PAT EPS ( ) 45 4 35 3 25 2 15 1 5 /share In FY16-19E, on account of sales volume growth, EBITDA margin expansion, reducing interest costs and fall in effective tax rate, we expect PAT to multiply at PCBL to 121 crore in FY18E vs. 23 crore in FY16. Corresponding EPS is expected at 17.5 in FY17E & 35. in FY18E. Increasing profitability to result in improved return ratio profile Return ratios were subdued in the past due to subdued profitability. However, with a robust performance in FY16-19E, the same has improved with RoE & RoCE expected at ~12-16% by FY19E. Exhibit 1: Return ratios profile % 2. 15. 1. 5.. 7.1 4.4 12.4 1.5 17.9 13.4 RoE* RoCE* *Return ratios adjusted for revaluation reserve amounting to ~ 5 crore 18. 13.6 Exhibit 11: Debt: equity trend 1,4 1,2 2. 1, 8 6 4 2 1,21.4 522.7 871.4 1,7.5.8 821.4 1,174.6.7 771.4 1,297.1 Debt Equity Debt:Equity.6 2.5 2. 1.5 1..5. x Debt gearing set to improve! By virtue of declining profitability and an elongated working capital cycle, PCBL has accumulated huge debt with peak debt at 122 crore as of FY15. However, with enhanced profitability and working capital controls, the debt has reduced to 121 crore as of FY16. Going forward, however, with a strong operational performance and consequent cash flow generation, we expect leverage to further improve with FY18E debt expected at 871 crore with consequent debt-equity at.8x. Decline in debt-equity is also on account of revaluation of land and consequent increase in networth by ~ 5 crore in FY17E. ICICI Securities Ltd Retail Equity Research Page 4

Outlook and valuation PCBL is currently operating at ~9% plus capacity utilisation levels. Sensing the constraint, it is currently undertaking a key de-bottle-necking project wherein its capacity will increase by 18 KT (capex ~ 2 crore) with likely commissioning by FY17E end. On the other hand, it is also planning a brownfield expansion (capex ~ 2 crore) with increase in capacity by 4 KT. It involves an expansion of tyre grade carbon back of 3 KT and speciality grade carbon black of 1KT. It will be funded entirely through internal accruals with likely commissioning in FY18-9E. Therefore, we expect volume led growth to sustain with CB sales volume growing at a CAGR of 8% in FY16-19E to 422 KT in FY19E. PCBL has largely delivered on improved profitability in YTDFY17 backed by robust volume growth and operational efficiencies. We expect the trend to continue in FY16-19E. The absolute debt in also on a declining trend with gross debt expected to decline by ~ 25 crore in FY17-19E. PCBL will also exhaust its DTA provisioning by Q1FY18E, which will take its effective tax rate to ~27% in FY18E & ~2% in FY19E vs. ~57% in FY17E, providing a big fillip to earnings at the PAT level. Factoring in the above, we expect PCBL to report PAT of 6.1 crore in FY17E & 12.7 crore in FY18E. We value PCBL at 35, i.e. 1x P/E on FY18E EPS of 35/share. We maintain our BUY recommendation on the stock. The key risks to our call are inherent volatility associated with the carbon black price, which is largely crude linked and high forex exposure of PCBL (net importer) resulting in high hedging costs. Exhibit 12: What s changed? Particulars FY17E FY18E Old New % Change Old New % Change Revenue 1,8.5 1848.7 2.7 1,927.3 1975. 2.5 EBITDA 229.2 239.6 4.5 25.6 266.8 6.4 EBITDA Margin % 12.7 13. 23 bps 13. 13.5 5 bps PAT 51.7 6.1 16.3 13.5 12.7 16.6 EPS 15. 17.5 16.3 3. 35. 16.7 Exhibit 13: Valuation Summary Sales Growth EPS Growth PE EV/EBITDA RoNW* RoCE* ( cr) (%) ( ) (%) (x) (x) (%) (%) FY16 1892.7-23.3 6.6 8.3 38.4 1.6 4.4 7.1 FY17E 1845.7-2.5 17.5 162.8 14.6 7. 1.5 12.4 FY18E 1971.5 6.8 35. 1.7 7.3 6.2 17.9 13.4 FY19E 227. 2.8 41.5 18.7 6.1 5.6 18. 13.6 * Return ratios adjusted for revaluation reserve amounting to ~ 5 crore ICICI Securities Ltd Retail Equity Research Page 5

es Recommendation history vs. consensus estimate 3 1 ( ) 2 1 8 6 4 2 (%) Jun-15 Aug-15 Nov-15 Jan-16 Mar-16 Jun-16 Aug-16 Nov-16 Jan-17 Price Idirect target Consensus Target Mean % Consensus with Buy Source: Bloomberg, Company, ICICIdirect.com Research; *I-direct coverage on Phillips Carbon Black was initiated on July 216 Key events Date/Year Event 23 PCBL increases its carbon black capacity in Durgapur to 1,35, metric tonne (MT) taking total Carbon Black Capacity to 2,, MT 27 The company enters into a MOU for a carbon black plant in Vietnam 29 PCBL commences production of carbon black from the Greenfield capacity at Mundra with capacity of 9, MT (Total Carbon Black Capacity: 3,6, MT). PCBL witnesses difficult market conditions with PCBL reporting loss at the PAT level in FY9 21 PCBL completes 5 years in operation. Golden jubilee year 212 PCBL further augments its carbon black capacity at Mundra & Durgapur. Commences 5, MT carbon black plant at Mundra (Total Carbon Black Capacity: 4,1, MT); Commences 8 MW co-generation power plant at Mundra, Gujarat (Total Power Capacity: 76 MW). Commences 12, MT carbon black plant at Durgapur (Total Carbon Black Capacity: 4,22, MT) 214 PCBL commences 5, MT carbon black plant at Kochi (Total Carbon Black Capacity: 4,72, MT) 215 PCBL records highest lifetime turnover of 247 crore in FY15. Consequent EBITDA & PAT stood at 152 crore and 13 crore respectively. 216 As of FY16, PCBL has 4 plants across India manufacturing carbon black with associated waster heat recovery power plants; Durgapur, WB (147 KT, 3 MW); Mundra, Gujarat (14 KT, 3 MW); Palej, Gujarat (95 KT, 12 MW); Kochi, Kerela (9 KT, 1 MW). It is currently headed by Mr. Sanjiv Goenka (Chairman), CEO Mr. Kaushik Roy and CFO Mr. Raj Kumar Gupta. In FY16, PCB distributed dividend of 2.5/share (EPS - 6.6/share) Top 1 Shareholders Rank Name Latest Filing Date % O/S Position (m) Position Change (m) 1 RPG Enterprises 3-Sep-16 5. 17.2. 2 Dotex Merchandise Pvt. Ltd. 3-Sep-16 3.4 1.2. 3 Elara Capital Plc 3-Sep-16 2.1.7 -.1 4 BNK Capital Group 3-Sep-16 1.5.5. 5 Kerala State Industrial Development Co., Ltd 3-Sep-16 1.4.5. 6 Acadian Asset Management LLC 3-Nov-16.2.1. 7 Principal PNB Asset Management Company 3-Nov-16.1.. 8 Russell Investments Limited 31-Aug-16.1.. 9 Kotak Mahindra Asset Management Compa 31-Oct-16.1.. 1 Fidelity Management & Research Company 3-Nov-16... Source: Reuters, ICICIdirect.com Research Recent Activity Shareholding Pattern (in %) Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Promoter 53.6 53.6 53.6 53.6 53.6 FII 6.4 6.7 6.9 6.5 7.5 DII 1.6 1.6...2 Others 38.4 38.1 39.6 39.9 38.7 Buys Sells Investor name Value Shares Investor name Value Shares Russell Investments Limited +.16M +.4M Elara Capital Plc -.2M -.5M Kotak Mahindra Asset Management Company Ltd. +.1M +.3M Acadian Asset Management LLC +.6M +.2M BNP Paribas Investment Partners Asia Ltd. +.M +.M Source: Reuters, ICICIdirect.com Research ICICI Securities Ltd Retail Equity Research Page 6

Financial summary (Standalone) Profit and loss statement Crore (Year-end March) Net Sales 1892.7 1845.7 1971.5 227. Other Operating Income 2.1 3. 3.4 3.8 Total Operating Income 1894.7 1848.7 1975. 23.7 Growth (%) -23.3-2.4 6.8 2.8 Raw Material Expenses 1,344.6 1,187.3 1,273.8 1,39.8 Employee Expenses 73.4 86.4 9.8 93.4 Selling Expense 68.7 73. 76.9 79.1 Other Operating Expense 243.2 262.4 266.6 264. Total Operating Expenditure 1,729.8 1,69.1 1,78.2 1,746.3 EBITDA 165. 239.6 266.8 284.5 Growth (%) 8.3 45.2 11.3 6.6 Depreciation 55. 6.5 65.7 71.4 Interest 7.9 55.4 5.8 47.8 Other Income 18. 17.5 14.9 13.7 PBT 57. 141.2 165.2 179. Exceptional Item.... Total Tax 34.3 81.1 44.5 35.8 PAT 22.7 6.1 12.7 143.2 Growth (%) 8.3 164.6 1.7 18.7 EPS ( ) 6.6 17.5 35. 41.5 Cash flow statement Crore (Year-end March) Profit after Tax 22.7 6.1 12.7 143.2 Add: Depreciation 55. 6.5 65.7 71.4 (Inc)/dec in Current Assets 15.4 44.4-42.3-21.9 Inc/(dec) in CL and Provisions 13.1-28.7 26.8 9.4 Others 7.9 55.4 5.8 47.8 CF from operating activities 429.1 191.7 221.6 249.8 (Inc)/dec in Investments -98. 6. 25. 13. (Inc)/dec in Fixed Assets -33.9-48.5-13. -13. Others 21.3... CF from investing activities -11.6 11.5-15. -117. Issue/(Buy back) of Equity.... Inc/(dec) in loan funds -198.3-15. -5. -5. Interest & Dividend paid -81.3-67.8-67.3-68.5 Inc/(dec) in Share Cap.... Others.... CF from financing activities -279.6-217.8-117.3-118.5 Net Cash flow 39. -14.5 -.7 14.3 Opening Cash 11.5 5.6 36.2 35.5 Closing Cash 5.6 36.2 35.5 49.8 Balance sheet Crore (Year-end March) Liabilities Equity Capital 34.5 34.5 34.5 34.5 Reserve and Surplus 488.3 1,36. 1,14.1 1,262.6 Total Shareholders funds 522.7 1,7.5 1,174.6 1,297.1 Total Debt 1,21.4 871.4 821.4 771.4 Deferred Tax Liability 49.1 149.1 149.1 149.1 Minority Interest / Others.6.6.6.6 Total Liabilities 1,593.8 2,91.6 2,145.7 2,218.2 Assets Gross Block 1,323.8 2,27.2 2,157.2 2,287.2 Less: Acc Depreciation 524.4 586.4 652.1 723.5 Net Block 799.4 1,44.8 1,55.1 1,563.7 Capital WIP 73.4 2. 2. 2. Total Fixed Assets 872.8 1,46.8 1,525.1 1,583.7 Investments 17.4 11.4 85.4 72.4 Inventory 244.2 22.3 216.1 222.1 Debtors 439. 429.8 459.1 472. Loans and Advances 9. 96. 94.6 97.3 Other Current Assets 7.6 8.3 8.9 9.1 Cash 5.6 36.2 35.5 49.8 Total Current Assets 831.4 772.6 814.1 85.4 Current Liabilities 31.4 278.1 297.1 35.4 Provisions 24.3 27.8 35.6 36.7 Current Liabilities & Prov 334.7 35.9 332.7 342.1 Net Current Assets 496.8 466.6 481.4 58.3 Others Assets 53.9 53.9 53.9 53.9 Application of Funds 1,593.8 2,91.6 2,145.7 2,218.2 Key ratios (Year-end March) Per share data ( ) EPS 6.6 17.5 35. 41.5 Cash EPS 22.5 35. 54.1 62.3 BV 151.7 31.6 34.9 376.4 DPS 2.5 3. 4. 5. Cash Per Share (Incl Invst) 64.1 42.5 35.1 35.5 Operating Ratios (%) EBITDA Margin 8.7 13. 13.5 14. PAT Margin 1.2 3.3 6.1 7.1 Inventory days 47.1 4. 4. 4. Debtor days 84.7 85. 85. 85. Creditor days 59.9 55. 55. 55. Return Ratios (%) RoE* 4.4 1.5 17.9 18. RoCE* 7.1 12.4 13.4 13.6 RoIC* 8.4 12.4 13.2 13.4 Valuation Ratios (x) P/E 38.4 14.6 7.3 6.1 EV / EBITDA 1.6 7. 6.2 5.6 EV / Net Sales.9.9.8.8 Market Cap / Sales.5.5.4.4 Price to Book Value 1.7.8.7.7 Solvency Ratios Debt/EBITDA 6.2 3.6 3.1 2.7 Debt / Equity 2..8.7.6 Current Ratio 2.3 2.4 2.3 2.3 Quick Ratio 1.6 1.7 1.7 1.7 * Return ratios adjusted for revaluation reserve amounting to ~ 5 crore ICICI Securities Ltd Retail Equity Research Page 7

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 8

ANALYST CERTIFICATION We /I, Chirag Shah PGDBM; Shashank Kanodia CFA MBA (Capital Markets), 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 (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. ICICI Securities Limited is a Sebi registered Research Analyst with Sebi Registration Number INH99. 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ICICI Securities Ltd Retail Equity Research Page 9