CairnIndia

Disappointsonproductionoutlook

PhillipCapital (India) Pvt. Ltd.

OIL&GAS:QuarterlyUpdate
Operationalperformanceinline;guidancedisappoints:CairnIndias4QFY14operational
performancewasinlinewithourexpectationwithsalesofRs50.5bn(PCeRs50.5bn)and
EBITDA Rs38.4bn(PCe of Rs38.7bn). Higher than expected exploratory cost written off
(Rs1.61bn) and higher than expected DD&A expenditure(Rs6.37bn) was offset by other
incomesurprise.PBTexcludingtheimpactofforexlossondepositswas2.6%higherthan
estimates due to beat on other income front (up 58% QoQ at Rs4.07bn vs estimate of
Rs2.04bn).MTMlossonforexdepositsforthequarterstoodatRs2.4bn.PATduringthe
quarter stood at Rs30.5bn up 18.4% YoY and 5.7% QoQ.In Rajasthan, infill drilling
continuesacrossallmajorfieldsandhasdrivena13%increaseintheproductionrateto
190.8kboepd. Development Area (DA1), which includes the Mangala and Aishwariya
fields, produced agross averageof162.2kboepd(+1%QoQ) andDA2, which includes
theBhagyamfield,agrossaverageproductionof28.636kboepd(+13%QoQ).Crudeoil
realisation from MBA fields stood at US$95/bbls, 11.5% discount for Brent. Ravva
production at 24.2kboed was down 13% QoQ and 11% YoY in Q4FY14. Cambay
production at 9.3kboepd was down 9.3% QoQ on account of planned maintenance
shutdown in Q4FY14. Cairn has announced final dividend of Rs6.5/sh (Rs 12.5 for
FY14).Cairnhasboughtback3.27mnshforRs1.05bn(avgpriceRs323/share).
Concall excerpts: Flat production guidance for FY15 came as disappointment
(managementhasguidedfor710%CAGRover3yearswithflatproductionYoYinFY15,a
decline over exit productioin of 200kbpd). Moreover, given the gross production
guidance of 180200kbpd from MBA; incremental growth will be contingent on
commerical produciton from barmer hill and Raageshwari. Cairn has upgraded 2P
reserves by 50mnbbls from 2C reserves. Under the exploration program, 50% of the
prospective risked resources have been drilled, adding ~1bnboe (of 3.1mmboe) to in
place resources (5 new plays identified). Cairn India has mobilezed 7 rigs for the
development and exploration purposes. Cairn has been able to drill two high impact
prospects to test potential gas accumulation in the deeper pay zone areas. Cairn has
guided for net capex of USD2.4bn over FY1517E with 81% of the said capex to be
incurred in FY15 and FY16. Cairn has also submitted DoC for Nagayalanka that could
potentially add > 10 mbopd to production in 2017E. Cairn has completed 19% of 3D
seismicdataacquisitionprogrammefor~1,900sqkmsthatiscurrentlyunderway,itwill
helpinidentifyingnewexplorationleads.

25April2014

DOWNGRADEto
NEUTRAL
CAIRIN|CMPRS354
TARGETRS361(+2%)

CompanyData
O/SSHARES(MN):
MARKETCAP(RSBN):
MARKETCAP(USDBN):
52WKHI/LO(RS):
LIQUIDITY3M(USDMN):
FACEVALUE(RS):

1908
695
11.4
372/273
52.3
10

ShareHoldingPattern,%
PROMOTERS:
FII/NRI:
FI/MF:
NONPROMOTERCORP.HOLDINGS:
PUBLIC&OTHERS:

58.9
27.6
9.8
1.2
2.5

PricePerformance,%

ABS
RELTOBSE

1mth
10.6
6.0

3mth
13.0
6.4

1yr
24.3
5.5

PriceVs.Sensex(Rebasedvalues)
140
130
120
110
100
90
80
70
Apr10 Apr11 Apr12 Apr13 Apr14
Cairn
BSESensex

Source:PhillipCapitalIndiaResearch

DowngradetoNeutral:Subudedproductionoutlook(declineinproducitonfromcurrent
levels for FY15), range bound crude oil price coupled with ~9% YTD stock price return
leaveslimitedupsidepotentialinthestockatthecurrentjuncture.Webelieve,medium
term exploratory upsides are also adequately captured in the valuations given the
guidance of 150% 2P RRR over FY14FY17E. We assume gross recoverable reserves of
1.46bnbblsoverthelifeoftheRajasthanblockversusmanagementsguidanceof1.7bn
bbls of expected ultimate recovery. Noting limited upside triggers we downgrade Cairn
from earlier BUY to Neutral with target of Rs361/share (Rs389/share earlier).
Downward revision in the target price essentially captures the change in rupee
assumption from Rs61/US$ to Rs60/US$ for FY15E and FY16E. Moreover, we cut our
productionestimatesforFY15EandFY16Etoalignthesamewithmanagementguidance.
The key structural concerns which continue to persist are the cash deployment,
diversificationoftheassetbasebeyondRajasthancoupledwithpotentialriskassociated
onarumoredprobablemergerwithSesaSterlite.

PleaserefertoDisclosuresandDisclaimersattheendoftheResearchReport.

OtherKeyRatios
Rsmn
FY14E
FY15E
FY16E
188,439 181,006 198,510
NetSales
141,607 130,121 136,376
EBIDTA
117,750 107,013 104,974
NetProfit
61.9
56.3
55.2
EPS,Rs
5.7
6.3
6.4
PER,x
4.6
4.7
4.1
EV/EBIDTA,x
1.2
1.0
0.9
P/BV,x
20.5
16.4
14.4
ROE,%
Source:PhillipCapitalIndiaResearchEst.

GauriAnand(+912266679943)
ganand@phillipcapital.in

DeepakPareek(+912266679950)
dpareek@phillipcapital.in

25April2014/INDIAEQUITYRESEARCH/CAIRNINDIAQUARTERLYUPDATE

CairnIndiaLtd.ConsolidatedQ4FY14results
Consolidated(Rsmn)

Q3FY14 Q4FY13 Q4FY14

Incomefromoperations
OtherIncome
TotalIncome
TotalExpenditure
Operatingexpenses
(as%ofsales)
(Inc)/Decinstock
(as%ofsales)
Staffcost
(as%ofsales)
Others
(as%ofsales)
Operatingprofit(exclOI)
Operatingprofit(inclOI)
Explorationcostswrittenoff
DD&A,Siterestorationexp
EBIT
Interest
Forexgain/(loss)
Profitbeforetax
TaxProvision
Profitaftertax
Adj.NetProfit
EquitycapitalShMn
EarningPerShareRs
Adj.EPSRs
CEPS,Rs

50,000
1,403
51,403
13,078
10,663
21.3
23.1
(0.0)
1,853
3.7
585
1.2
36,922
38,325
1,003
5,948
31,374
91
(1,290)
29,993
1,152
28,841
31,526
1,910
15.10
16.50
18.21

43,634
2,219
45,853
11,052
9,872
22.6
31.7
(0.1)
196
0.4
1,016
2.3
32,582
34,801
3,657
4,747
26,397
152
(28)
26,218
582
25,636
25,608
1,910
13.42
13.41
15.91

50,489
4,070
54,559
12,050
10,283
20.4
56.2
(0.1)
474
0.9
1349
2.7
38,439
42,509
1,608
6,367
34,535
109
(2,431)
31,995
1,641
30,354
27,924
1,903
15.95
14.67
19.30

YoY%

QoQ%

15.7
83.4
19.0
9.0
4.2

77.3

142.2

32.8

18.0
22.1
(56.0)
34.1
30.8
(28.3)
8,675.5
22.0
182.0
18.4
9.0
(0.4)
18.9
9.5
21.3

1.0
190.0
6.1
(7.9)
(3.6)

143.3

(74.4)

130.6

4.1
10.9
60.3
7.0
10.1
19.2
88.4
6.7
42.4
5.2
(11.4)
(0.4)
5.7
(11.1)
6.0

FY13
175,241
7,228
182,470
40,361
36,588
20.9
274
(0.2)
1,033
0.6
3,015
1.7
134,880
142,109
4,549
18,459
119,101
687
3,134
121,548
2,872
118,676
120,080
1,910
62.13
62.86
71.79

FY14
187,617
7,637
195,254
46,636
40,727
21.7
141
(0.1)
2,741
1.5
3,309
1.8
140,981
148,618
4,124
22,974
121,521
415
7,390
128,496
4,178
124,318
135,684
1,910
65.08
71.03
77.11

YOY%
7.1
5.6
7.0
15.5
11.3
(48.5)
165.4
9.8
4.5
4.6
(9.3)
24.5
2.0
(39.6)
135.8
5.7
45.5
4.8
13.0

4.8
13.0
7.4

Source:Company,PhillipCapitalIndiaResearch

Rajasthanassetoverview
Field
MBA
BHformation
Raageshwari
DeepGas

Reserves
(bn)
2.2

Netcapex
(US$bn)
1.6

2.0
400BCFgas;20
mnbblsNGLs

0.6
0.2

Source:Company,PhillipCapitalIndiaResearch

2of8

Estimated
Comments
potential(kbpd)
180200kbpd Recovery factor ~50%, Produced
~216mmboetillendFY14
1030kbpd
Recoveryfactor1015%
1020kbpd
Plan to create infrastructure for
significant NGLs potential in the
block

25April2014/INDIAEQUITYRESEARCH/CAIRNINDIAQUARTERLYUPDATE

SOTPValuations
Particulars(inRsmn)
RajasthanBlock
RJON90/1(MBAblock)
Valuepershare
RJON90/1(BarmerHill)
Valuepershare
RJON90/1(Otherfields)
Valuepershare
ValueofRajasthanBlock
Valuepershare
CBOS2
Valuepershare
Ravva
Valuepershare
Exploratoryportfolioupsides
Valuepershare
Total
Netdebt
Valuepershare
PVofcorporateexpenditure
Valuepershare
Equityvalue
Equityvaluepershare(Rs/share)
Equityshares(mn)

FY15E

331,282
174.3
24,203
12.7
42,356
22.3
397,842
209.3
8,699
4.6
10,577
5.6
81,233
42.7
498,350
(229,411)
(121)
(41,691)
(21.9)
686,070
361
1,901

Source:Company,PhillipCapitalIndiaResearch

TargetPriceSensitivitywithCrudeandExchangeRate

Rs/US$
57.0
58.0
59.0
60.0
61.0
62.0
63.0

90.0
327
330
335
340
345
346
351

95.0
338
340
345
350
354
358
363

BrentCrude(US$/bbl)
100.0
105.0
110.0
347
358
370
351
363
375
356
368
381
361
374
386
366
379
392
371
384
397
376
389
402

115.0
382
387
393
399
404
410
413

120.0
394
399
405
409
415
420
426

115.0
414
409
404
399
394
389
385

120.0
425
420
414
409
406
401
396

Source:Company,PhillipCapitalIndiaResearch

TargetPriceSensitivitywithCrudeandWACC

WACC
11.0%
11.5%
12.0%
12.5%
13.0%
13.5%
14.0%

90.0
351
347
344
340
337
333
330

95.0
361
357
353
350
346
342
339

Source:Company,PhillipCapitalIndiaResearch

3of8

BrentCrude(US$/bbl)
100.0
105.0
110.0
374
387
401
369
383
396
365
378
391
361
374
386
357
369
382
353
365
377
350
361
373

25April2014/INDIAEQUITYRESEARCH/CAIRNINDIAQUARTERLYUPDATE

EBIThelpedbyweakINR,DD&Acostrises
EBIT,Rsmn

DD&A,Siterestorationexpenses,Rsmn(rhs)

40,000

7,000

35,000

6,000

30,000

5,000

25,000

4,000

20,000

3,000

15,000
10,000

2,000

5,000

1,000

Q4FY14

Q3FY14

Q2FY14

Q1FY14

Q4FY13

Q3FY13

Q2FY13

Q1FY13

Q4FY12

Q3FY12

Q2FY12

Q1FY12

Q4FY11

Source:Company,PhillipCapitalIndiaResearch

Rajasthanproductionwitnessesgrowth
RavvaNetproduction(boepd)
CambayNetproduction,boepd
RajasthanNetproduction,boepd(rhs)

9000

160,000
140,000

7500

120,000
6000

100,000
80,000

4500

60,000

3000

40,000
1500

20,000

Q4FY14

Q3FY14

Q2FY14

Q1FY14

Q4FY13

Q3FY13

Q2FY13

Q1FY13

Q4FY12

Q3FY12

Q2FY12

Q1FY12

Q4FY11

Source:Company,PhillipCapitalIndiaResearch

RajasthancrudediscounttoBrentstoodat11.5%
Brent,USD/bbl

Blendedrealisation,USD/bbl

DiscounttoBrent,%(rhs)

140

16

120

14

100

12
10

80

60

Q4FY14

Q3FY14

Q2FY14

Q1FY14

Q4FY13

Q3FY13

Q2FY13

Q1FY13

Q4FY12

Q3FY12

Q2FY12

Q1FY12

20

Q4FY11

40

Source:Company,PhillipCapitalIndiaResearch

4of8

25April2014/INDIAEQUITYRESEARCH/CAIRNINDIAQUARTERLYUPDATE

Financials

CashFlow

IncomeStatement
Y/EMar,Rsmn
Netsales
Growth,%
Totalincome
ProductionExpenses
Employeeexpenses
OtherOperatingexpenses
EBITDA(Core)
Growth,%
Margin,%
Depreciation
EBIT
Growth,%
Margin,%
Interestpaid
OtherNonOperatingIncome
NonrecurringItems
Pretaxprofit
Taxprovided
Profitaftertax
Others(Minorities,Associates)
NetProfit
Growth,%
NetProfit(adjusted)
Unadj.shares(m)
Wtdavgshares(m)

FY13
175,242
48
175,242
36,839
1,033
2,490
134,880
41.2
77.0
23,008
111,872
43.2
63.8
687
7,229
3,134
121,548
2,351
119,197
0
119,197
44.3
116,063
1,910
1,910

FY14
188,439
8
188,439
40,533
2,741
3,559
141,607
5.0
75.1
27,098
114,509
2.4
60.8
415
7,834
7,390
129,318
4,178
125,140
0
125,140
1.5
117,750
1,901
1,901

FY15E
181,006
4
181,006
44,132
2,878
3,875
130,121
(8.1)
71.9
27,699
102,422
(10.6)
56.6
415
10,500
0
112,507
5,494
107,013
0
107,013
(9.1)
107,013
1,901
1,901

FY16E
198,510
10
198,510
54,724
3,166
4,243
136,376
4.8
68.7
34,199
102,177
(0.2)
51.5
415
11,000
0
112,763
7,789
104,974
0
104,974
(1.9)
104,974
1,901
1,901

FY13
55,568
22,852
1,961
58,877
7,182
146,440
103,823
117,329
(22,952)
43,850
138,227
151,522
540,012

17,399
40,978
58,377
4,641
63,018
19,274
457,721
476,994
540,012

FY14
17,619
25,124
2,971
84,494
55,335
185,542
163,638
136,764
(31,152)
50,695
156,307
151,522
657,010

27,166
48,009
75,175
7,356
82,531
19,179
555,301
574,479
657,010

FY15E
62,537
24,565
2,904
84,494
55,335
229,835
163,638
178,708
(39,363)
50,695
190,040
151,522
735,036

26,561
48,009
74,571
7,787
82,358
19,179
633,500
652,678
735,036

FY16E
108,356
27,245
3,221
84,494
55,335
278,651
163,638
217,629
(47,583)
50,695
220,741
151,522
814,553

BalanceSheet
Y/EMar,Rsmn
Cash&bank
Debtors
Inventory
Loans&advances
Othercurrentassets
Totalcurrentassets
Investments
Grossfixedassets
Less:Depreciation
Add:CapitalWIP
Netfixedassets
Noncurrentassets
Totalassets

Currentliabilities
Provisions
Totalcurrentliabilities
Noncurrentliabilities
Totalliabilities
Paidupcapital
Reserves&surplus
Shareholdersequity
Totalequity&liabilities

Source:Company,PhillipCapitalIndiaResearchEstimates

29,459
48,009
77,468
8,246
85,715
19,179
709,660
728,838
814,553

Y/EMar,Rsmn
FY13
FY14
FY15E
FY16E
Pretaxprofit
121,548 129,318 112,507 112,763
23,008 27,098 27,699 34,199
Depreciation
Chginworkingcapital
95,167 (60,254)
21
(99)
Totaltaxpaid
(4,448) (1,463) (5,063) (7,330)
235,276 94,699 135,164 139,533
Cashflowfromoperatingactivities
Capitalexpenditure
(26,734) (45,177) (61,432) (64,900)
Chgininvestments
(85,467) (59,816)

Cashflowfrominvestingactivities (112,201)(104,993) (61,432) (64,900)

Freecashflow
208,542 49,522 73,732 74,633
Equityraised/(repaid)
(71,908)
(95)

(12,518)

Debtraised/(repaid)
Dividend(incl.tax)
(25,616) (27,706) (28,814) (28,814)
Otherfinancingactivities
(27,600)
145
(0)
0
Cashflowfromfinancingactivities (137,642) (27,655) (28,814) (28,814)
Netchgincash
(14,567) (37,949) 44,918 45,819

ValuationRatios&PerShareData

PerSharedata
EPS(INR)
Growth,%
BookNAV/share(INR)
FDEPS(INR)
CEPS(INR)
CFPS(INR)
DPS(INR)
Returnratios
Returnonassets(%)
Returnonequity(%)
Returnoncapitalemployed(%)
Turnoverratios
Assetturnover(x)
Sales/Totalassets(x)
Sales/NetFA(x)
Workingcapital/Sales(x)
Receivabledays
Inventorydays
Payabledays
Workingcapitaldays
Liquidityratios
Currentratio(x)
Quickratio(x)
Interestcover(x)
Dividendcover(x)
Netdebt/Equity(%)
Valuation
PER(x)
PEG(x)yoygrowth
Price/Book(x)
Yield(%)
EV/Netsales(x)
EV/EBITDA(x)
EV/EBIT(x)

5of8

FY13

60.8
44.1
249.7
60.8
71.2
66.2
11.5

22.3
24.3
22.9

0.9
0.3
1.3
0.4
47.6
4.1
157.3
153.0

8.4
8.3
162.8
5.3
(11.6)

5.8
0.1
1.4
3.2
3.5
4.6
5.5

FY14

FY15E

FY16E

61.9
2.0
302.2
61.9
72.3
45.7
12.5

56.3
(9.1)
343.4
56.3
70.9
65.6
13.0

55.2
(1.9)
383.4
55.2
73.2
67.6
13.0

21.0
20.5
21.8

15.4
16.4
16.0

13.6
14.4
14.1

0.7
0.3
1.3
0.7
48.7
5.8
211.7
272.6

0.6
0.3
1.0
0.8
49.5
5.9
190.5
283.8

0.6
0.3
1.0
0.7
50.1
5.9
173.1
259.0

6.8
6.7
276.1
5.0
(3.1)

8.7
8.5
246.9
4.3
(9.6)

9.5
9.3
246.3
4.2
(14.9)

5.7
2.9
1.2
3.5
3.5
4.6
5.7

6.3
(0.7)
1.0
3.7
3.4
4.7
6.0

6.4
(3.4)
0.9
3.7
2.8
4.1
5.5

25April2014/INDIAEQUITYRESEARCH/CAIRNINDIAQUARTERLYUPDATE

RecommendationChart
450

400
N(TP380)
B(TP400)

350

B(TP375)

N(TP350)
300

B(TP389)

N(TP350)

250

200
1/3/2011

B(TP350)

6/27/2011 12/22/2011 6/12/2012

B(TP375)

12/5/2012

B(TP375)

5/29/2013 11/21/2013

Source:PhillipCapitalIndiaResearch

6of8

25April2014/INDIAEQUITYRESEARCH/CAIRNINDIAQUARTERLYUPDATE

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(9122)66679769
(9122)66679974

Oil&Gas,AgriInputs
GauriAnand
DeepakPareek

(9122)66679943
(9122)66679950

SalesTrader
DileshDoshi
SuniilPandit

(9122)66679747
(9122)66679745

Sales&Distribution
KinshukTiwari
AshvinPatil
ShubhangiAgrawal
KishorBinwal
SidharthAgrawal
DipeshSohani

(9122)66679946
(9122)66679991
(9122)66679964
(9122)66679989
(9122)66679934
(9122)66679756

SINGAPORE
PhillipSecuritiesPteLtd
250NorthBridgeRoad,#0600RafflesCityTower,
Singapore179101
Tel:(65)65336001Fax:(65)65353834
www.phillip.com.sg

ContactInformation(RegionalMemberCompanies)

MALAYSIA
PhillipCapitalManagementSdnBhd
B36BlockBLevel3,MeganAvenueII,
No.12,JalanYapKwanSeng,50450KualaLumpur
Tel(60)321628841Fax(60)321665099
www.poems.com.my

HONGKONG
PhillipSecurities(HK)Ltd
11/FUnitedCentre95QueenswayHongKong
Tel(852)22776600Fax:(852)28685307
www.phillip.com.hk

JAPAN
PhillipSecuritiesJapan,Ltd
42NihonbashiKabutocho,Chuoku
Tokyo1030026
Tel:(81)336662101Fax:(81)336640141
www.phillip.co.jp

INDONESIA
PTPhillipSecuritiesIndonesia
ANZTowerLevel23B,JlJendSudirmanKav33A,
Jakarta10220,Indonesia
Tel(62)2157900800Fax:(62)2157900809
www.phillip.co.id

CHINA
PhillipFinancialAdvisory(Shanghai)Co.Ltd.
No550YanAnEastRoad,OceanTowerUnit2318
Shanghai200001
Tel(86)2151699200Fax:(86)2163512940
www.phillip.com.cn

THAILAND
PhillipSecurities(Thailand)PublicCo.Ltd.
15thFloor,VorawatBuilding,849SilomRoad,
Silom,Bangrak,Bangkok10500Thailand
Tel(66)222680999Fax:(66)222680921
www.phillip.co.th

FRANCE
King&ShaxsonCapitalLtd.
3rdFloor,35RuedelaBienfaisance
75008ParisFrance
Tel(33)145633100Fax:(33)145636017
www.kingandshaxson.com

UNITEDKINGDOM
King&ShaxsonLtd.
6thFloor,CandlewickHouse,120CannonStreet
London,EC4N6AS
Tel(44)2079295300Fax:(44)2072836835
www.kingandshaxson.com

UNITEDSTATES
PhillipFuturesInc.
141WJacksonBlvdSte3050
TheChicagoBoardofTradeBuilding
Chicago,IL60604USA
Tel(1)3123569000Fax:(1)3123569005

AUSTRALIA
PhillipCapitalAustralia
Level37,530CollinsStreet
Melbourne,Victoria3000,Australia
Tel:(61)396298380Fax:(61)396148309
www.phillipcapital.com.au

SRILANKA
AshaPhillipSecuritiesLimited
Level4,MillenniumHouse,46/58NavamMawatha,
Colombo2,SriLanka
Tel:(94)112429100Fax:(94)112429199
www.ashaphillip.net/home.htm

INDIA
PhillipCapital(India)PrivateLimited
No.1,CBlock,2ndFloor,ModernCenter,JacobCircle,K.K.Marg,MahalaxmiMumbai400011
Tel:(9122)23002999Fax:(9122)66679955www.phillipcapital.in

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25April2014/INDIAEQUITYRESEARCH/CAIRNINDIAQUARTERLYUPDATE

DisclosuresandDisclaimers

PhillipCapital(India)Pvt.Ltd.hasthreeindependentequityresearchgroups:InstitutionalEquities,InstitutionalEquityDerivativesandPrivateClientGroup.Thisreporthasbeenpreparedby
InstitutionalEquitiesGroup.Theviewsandopinionsexpressedinthisdocumentmayormaynotmatchormaybecontraryattimeswiththeviews,estimates,rating,targetpriceofthe
otherequityresearchgroupsofPhillipCapital(India)Pvt.Ltd.

ThisreportisissuedbyPhillipCapital(India)Pvt.Ltd.whichisregulatedbySEBI.PhillipCapital(India)Pvt.Ltd.isasubsidiaryofPhillip(Mauritius)Pvt.Ltd.Referencesto"PCIPL"inthisreport
shallmeanPhillipCapital(India)Pvt.Ltdunlessotherwisestated.ThisreportispreparedanddistributedbyPCIPLforinformationpurposesonlyandneithertheinformationcontainedherein
nor any opinion expressed should be construed or deemed to be construed as solicitation or as offering advice for the purposes of the purchase or sale of any security, investment or
derivatives.TheinformationandopinionscontainedintheReportwereconsideredbyPCIPLtobevalidwhenpublished.ThereportalsocontainsinformationprovidedtoPCIPLbythird
parties.Thesourceofsuchinformationwillusuallybedisclosedinthereport.WhilstPCIPLhastakenallreasonablestepstoensurethatthisinformationiscorrect,PCIPLdoesnotofferany
warrantyastotheaccuracyorcompletenessofsuchinformation.AnypersonplacingrelianceonthereporttoundertaketradingdoessoentirelyathisorherownriskandPCIPLdoesnot
acceptanyliabilityasaresult.SecuritiesandDerivativesmarketsmaybesubjecttorapidandunexpectedpricemovementsandpastperformanceisnotnecessarilyanindicationtofuture
performance.

This report does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors must
undertakeindependentanalysiswiththeirownlegal,taxandfinancialadvisorsandreachtheirownregardingtheappropriatenessofinvestinginanysecuritiesorinvestmentstrategies
discussedorrecommendedinthisreportandshouldunderstandthatstatementsregardingfutureprospectsmaynotberealized.Innocircumstancesitbeusedorconsideredasanofferto
sellorasolicitationofanyoffertobuyorselltheSecuritiesmentionedinit.Theinformationcontainedintheresearchreportsmayhavebeentakenfromtradeandstatisticalservicesand
othersources,whichwebelievearereliable.PhillipCapital(India)Pvt.Ltd.oranyofitsgroup/associate/affiliatecompaniesdonotguaranteethatsuchinformationisaccurateorcomplete
anditshouldnotberelieduponassuch.Anyopinionsexpressedreflectjudgmentsatthisdateandaresubjecttochangewithoutnotice

Important:Thesedisclosuresanddisclaimersmustbereadinconjunctionwiththeresearchreportofwhichitformspart.Receiptanduseoftheresearchreportissubjecttoallaspectsof
thesedisclosuresanddisclaimers.Additionalinformationabouttheissuersandsecuritiesdiscussedinthisresearchreportisavailableonrequest.

Certifications:Theresearchanalyst(s)whopreparedthisresearchreportherebycertifiesthattheviewsexpressedinthisresearchreportaccuratelyreflecttheresearchanalystspersonal
viewsaboutallofthesubjectissuersand/orsecurities,thattheanalysthavenoknownconflictofinterestandnopartoftheresearchanalystscompensationwas,isorwillbe,directlyor
indirectly,relatedtothespecificviewsorrecommendationscontainedinthisresearchreport.TheResearchAnalystcertifiesthathe/sheorhis/herfamilymembersdoesnotownthe
stock(s)coveredinthisresearchreport.

Independence:PhillipCapital(India)Pvt.Ltd.hasnothadaninvestmentbankingrelationshipwith,andhasnotreceivedanycompensationforinvestmentbankingservicesfrom,thesubject
issuersinthepasttwelve(12)months,andPhillipCapital(India)Pvt.Ltddoesnotanticipatereceivingorintendtoseekcompensationforinvestmentbankingservicesfromthesubject
issuersinthenextthree(3)months.PhillipCapital(India)Pvt.Ltdisnotamarketmakerinthesecuritiesmentionedinthisresearchreport,althoughitoritsaffiliatesmayholdeitherlongor
shortpositionsinsuchsecurities.PhillipCapital(India)Pvt.Ltddoesnotholdmorethan1%ofthesharesofthecompany(ies)coveredinthisreport.

SuitabilityandRisks:Thisresearchreportisforinformationalpurposesonlyandisnottailoredtothespecificinvestmentobjectives,financialsituationorparticularrequirementsofany
individual recipient hereof. Certain securities may give rise to substantial risks and may not be suitable for certain investors. Each investor must make its own determination as to the
appropriatenessofanysecuritiesreferredtointhisresearchreportbaseduponthelegal,taxandaccountingconsiderationsapplicabletosuchinvestoranditsowninvestmentobjectivesor
strategy,itsfinancialsituationanditsinvestingexperience.Thevalueofanysecuritymaybepositivelyoradverselyaffectedbychangesinforeignexchangeorinterestrates,aswellasby
otherfinancial,economicorpoliticalfactors.Pastperformanceisnotnecessarilyindicativeoffutureperformanceorresults.

Sources,CompletenessandAccuracy:ThematerialhereinisbaseduponinformationobtainedfromsourcesthatPCIPLandtheresearchanalystbelievetobereliable,butneitherPCIPLnor
theresearchanalystrepresentsorguaranteesthattheinformationcontainedhereinisaccurateorcompleteanditshouldnotberelieduponassuch.Opinionsexpressedhereinarecurrent
opinionsasofthedateappearingonthismaterialandaresubjecttochangewithoutnotice.Furthermore,PCIPLisundernoobligationtoupdateorkeeptheinformationcurrent.

Copyright:ThecopyrightinthisresearchreportbelongsexclusivelytoPCIPL.Allrightsarereserved.Anyunauthorizeduseordisclosureisprohibited.Noreprintingorreproduction,inwhole
orinpart,ispermittedwithoutthePCIPLspriorconsent,exceptthatarecipientmayreprintitforinternalcirculationonlyandonlyifitisreprintedinitsentirety.

Caution:Riskoflossintradingincanbesubstantial.Youshouldcarefullyconsiderwhethertradingisappropriateforyouinlightofyourexperience,objectives,financialresourcesandother
relevantcircumstances.

ForU.S.personsonly:ThisresearchreportisaproductofPhillipCapital(India)PvtLtd.whichistheemployeroftheresearchanalyst(s)whohaspreparedtheresearchreport.Theresearch
analyst(s)preparingtheresearchreportis/areresidentoutsidetheUnitedStates(U.S.)andarenotassociatedpersonsofanyU.S.regulatedbrokerdealerandthereforetheanalyst(s)is/are
not subject to supervision by a U.S. brokerdealer, and is/are not required to satisfy the regulatory licensing requirements of FINRA or required to otherwise comply with U.S. rules or
regulationsregarding,amongotherthings,communicationswithasubjectcompany,publicappearancesandtradingsecuritiesheldbyaresearchanalystaccount.

ThisreportisintendedfordistributionbyPhillipCapital(India)PvtLtd.onlyto"MajorInstitutionalInvestors"asdefinedbyRule15a6(b)(4)oftheU.S.SecuritiesandExchangeAct,1934(the
ExchangeAct)andinterpretationsthereofbyU.S.SecuritiesandExchangeCommission(SEC)inrelianceonRule15a6(a)(2).IftherecipientofthisreportisnotaMajorInstitutionalInvestor
asspecifiedabove,thenitshouldnotactuponthisreportandreturnthesametothesender.Further,thisreportmaynotbecopied,duplicatedand/ortransmittedonwardtoanyU.S.
person,whichisnottheMajorInstitutionalInvestor.

In reliance on the exemption from registration provided by Rule 15a6 of the Exchange Act and interpretations thereof by the SEC in order to conduct certain business with Major
InstitutionalInvestors,PhillipCapital(India)PvtLtd.hasenteredintoanagreementwithaU.S.registeredbrokerdealer,MarcoPoloSecuritiesInc.("MarcoPolo").Transactionsinsecurities
discussedinthisresearchreportshouldbeeffectedthroughMarcoPolooranotherU.S.registeredbrokerdealer

PhillipCapital(India)Pvt.Ltd.
Registeredoffice:2ndFloor,CBlock,ModernCentre,Mahalaxmi,Mumbai400011

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