TataMotors

August27,2016

While Tata Motors consolidated revenue growth was robust at 9.1% YoY to
Rs659bn,thereportedEBITDAmarginwaslowerthanexpectedat12.9%.Thiswas
duetorevaluationofGBP84m(mainlyeuropayablesresultingfromdepreciation
oftheGBPpostBrexitvote),andonadjustingthesame,theconsolidatedEBITDA
margin was 14.1% (30bps lower than expected). Adjusted profit in Q1FY17 was
Rs24.6bn,whichwasdecent,butadeclineof47.9%YoYasperINDASreporting.

RohanKorde
rohankorde@plindia.com
+912266322235

Rating
Price
TargetPrice
ImpliedUpside
Sensex
Nifty

Accumulate
Rs504
Rs556
10.3%
27,782
8,573

(PricesasonAugust26,2016)
Tradingdata
MarketCap.(Rsbn)
Shareso/s(m)
3MAvg.Dailyvalue(Rsm)
Majorshareholders
Promoters
Foreign
DomesticInst.
Public&Other
StockPerformance
(%)
1M
6M
Absolute
0.1
66.7
Relative
0.8
46.7
HowwedifferfromConsensus
EPS(Rs)
PL
Cons.
2017
46.3
47.2
2018
57.3
55.1

1,710.3
3,395.9
4957.1
33.01%
24.97%
16.76%
25.26%
12M
49.5
41.5
%Diff.
1.9
4.1

PricePerformance(RIC:TAMO.BO,BB:TTMTIN)

JLRs revenuegrowth was 9.2% YoY, and bettered expectations due to 2.8% QoQ
increaseinrealisations.WebelievethattheoutlookforJLRinFY17remainsrobust
inmostgeographies,backedbythesuccessofrecentlaunchesliketheXE,FPace
and Discovery Sport.FY17margins should be 60bps higher YoY at14.8% (despite
Q1FY17 adjusted EBITDA margin being ~120bps lower than expected at 13.8%),
due to higher realisations and a lower base Q2 onwards. The profitability at the
ChinaJVhasalsobeenhigherthanpreviouslyanticipated.
The standalone business continues to improve, and reported decent revenue
growthat10.7%,onthebackof6.2%YoYvolumegrowth.EBITDAmarginat6.7%
was higher 60bps YoY. While Q2 is likely to be subdued for M&HCVs, H2 should
markhealthyvolumegrowthintheCVsegment.
WhilebothJLRandIndiaoperationsareontracktoperformwellinFY17,wenote
thatBrexitmayresultinlowerUKvolumesforJLRoncetheprocedureforthesame
islaiddown/processactuallycommences.Asthestockhadattainedourprevious
target price of Rs503, we downgrade from Buy to Accumulate with an upgraded
price target of Rs556. At the current market price, the stock is trading at 10.9x
FY17eand8.8xFY17eearnings.
Contd...2
Keyfinancials(Y/eMarch)

Revenues(Rsm)

Growth(%)
EBITDA(Rsm)
PAT(Rsm)
EPS(Rs)
Growth(%)
NetDPS(Rs)

2015
2,627,963
12.9
439,237
159,809
49.6
6.7

2016
2,755,611
4.9
402,367
127,194
37.5
(24.6)
0.2

2017E
3,047,450
10.6
438,165
157,105
46.3
23.5
1.0

2018E
3,463,134
13.6
510,606
194,620
57.3
23.9
2.0

2015
16.7
26.2
15.7
0.8
4.5
10.1
2.9

2016
14.6
18.6
11.8
0.7
5.0
13.4
2.1

2017E
14.4
17.8
12.4
0.7
4.7
10.9
1.8
0.2

2018E
14.7
18.5
13.5
0.6
4.0
8.8
1.5
0.4

(Rs)
600
500
400
300
200
100

Aug16

Jun16

Apr16

Feb16

Dec15

Oct15

Aug15

Source:Bloomberg

Profitability&Valuation
EBITDAmargin(%)
RoE(%)
RoCE(%)
EV/sales(x)
EV/EBITDA(x)
PE(x)
P/BV(x)
Netdividendyield(%)
Source:CompanyData;PLResearch

PrabhudasLilladherPvt.Ltd.and/oritsassociates(the'Firm')doesand/orseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresultinvestorsshouldbeawarethat
theFirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthereport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.

Pleaserefertoimportantdisclosuresanddisclaimersattheendofthereport

Q1FY17ResultUpdate

SubduedmarginsdespiterobustJLRvolume

TataMotors

Tata Motors consolidated revenues increased 9.1% YoY to Rs658.9 bn. The
adjusted EBITDA margin was 14.1%, which was lower 530bps YoY (as per
restated accounts). Adjusted EBITDA declined 20.7% YoY to Rs92.9bn. Apart
from the lower YoY EBITDA margin, depreciation and product development
expenditure was higher at Rs54.2bn (up 21.9% YoY). The adjusted profit was
lower 47.9% YoY to Rs24.6bn, while the reported profit was Rs22.4bn (lower
57.2%YoY.

TTMT had provided for loss on account of the explosion at Tianjin in Q2FY16
amounting to Rs24.9bn (where ~5,800 JLR vehicles with an inventory value of
GBP245mwerelost).TherewererecoveriestothetuneofRs4.78bn(GBP50m)
DuringQ1FY17.Totalinsuranceproceedingsandrecoveriessofarhavebeento
thetuneof3.33bn(GBP138m).

Exhibit1: Reconciliation of financial results as per previous reporting with INDAS for
Q1FY16

Rsm

NetprofitunderpreviousGAAP
Reversalofexchangegainaccumulatedinforeigncurrencymonetaryitem
translationdifferenceaccount
Effectofadoptionofdeemedcostexemptionrelatingtoproperty,plantand
equipmentandintangiblesondepreciationandamortisation
Gainonfairvalueofbelowmarketinterestloan(netofeffectiveinterestrate
adjustment)
Effectofcrosscurrencybasisspreadsonhedgeaccounting

27,689

Provisionforexpectedcreditlosses
Reversalofgainonsaleofinvestmentinequityinvestmentsclassifiedasfairvalue
throughOCI
Fairvaluegainoninvestmentinmutualfunds

3,306

Others(net)
Taxeffectonaboveadjustments(includingtaxeffectonundistributedearningsof
subsidiaries,associates,andjointarrangements)
NetincomeasperINDAS

21,454
482
62
7,430

804
81

783
52,310

Source:CompanyData,PLResearch

August27,2016

Exhibit2:

TataMotors

Q1FY17ResultOverviewConsolidated(Rsm)

Y/eMarch

Q1FY17

Q1FY16

YoYgr.(%)

Q4FY16

FY17E

FY16

YoYgr.(%)

NetRevenues

658,950

604,009

9.1

806,844

3,047,450

2,755,611

10.6

RawMaterials

390,908

356,340

9.7

464,923

1,800,313

1,624,190

10.8

59.3

59.0

57.6

59.1

58.9

74,664

68,856

8.4

77,702

319,982

291,989

9.6

10.5

10.6

40.2

181,632

664,533

604,250

22.5

21.8

21.9

%ofNetSales

Personnel

%ofNetSales

Manufacturing&OtherExp

11.4
101,489

21.6

16.8

%ofNetSales

Expensescapitalised
TotalExpenditure
EBITDA

11.3
142,317

9.6
10.0

41,849

39,798

5.2

42,020

175,544

167,184

5.0

566,041

486,887

16.3

682,237

2,609,285

2,353,245

10.9

92,909

117,123

(20.7)

124,607

438,165

402,367

8.9

14.1

19.4

15.4

14.4

14.6

Depreciation

EBITDAMargin(%)

54,220

44,471

21.9

54,974

220,298

204,946

7.5

EBIT

38,689

72,652

(46.7)

69,633

217,867

197,421

10.4

InterestExpenses

11,694

11,496

1.7

12,552

43,922

46,234

(5.0)

1,736

2,241

(22.5)

2,486

11,290

9,817

15.0

Nonoperatingincome
Forexgain

(54)

6,432

NA

712

(54)

(2,402)

NA

ExtraordinaryExpenses

8,068

93

NA

224

8,068

18,794

(57.1)

ExtraordinaryIncome

4,905

NA

5,555

4,905

NA

25,514

69,736

(63.4)

65,611

182,018

139,809

30.2

7,200

16,485

(56.3)

13,546

45,437

28,726

58.2

28.2

23.6

20.6

25.0

20.5

ReportedPAT

18,314

53,251

(65.6)

52,065

136,582

111,083

23.0

MinorityInterest

(4,050)

940

NA

294

(17,307)

845

NA

ProfitafterMI

22,364

52,310

(57.2)

51,771

153,888

110,238

39.6

Adj.PAT

24,637

47,240

(47.9)

46,936

157,105

127,194

23.5

PBT
TaxTotal

TaxRate(%)Total

Source:CompanyData,PLResearch

Standaloneperformance

Volumeswereup6.2%YoY,withallsegmentsregisteringgrowth,barringUVs,
which declined 36% YoY. M&HCVs constituted 33% of the total mix (vs 31.8%
YoYand36.8%QoQ).Resultantlyrevenuegrowthwas10.7%YoYtoRs103.2bn
(realisationgrowthof4.2%YoY).Withotheroperatingincomedeclining11.6%
YoY,TataMotorstotalincomegrew10.7%YoYtoRs103.2bn.

TheEBITDAmarginwas6.7%asthecompanymaintaineditspositiveEBITDAfor
a sixth consecutive quarter. EBITDA growth was 22.2% YoY to Rs6.9bn, which
wasbetterthanexpected.DuetoaforexlossofRs1.1bn,thereportedproftwas
Rs28m,whiletheadjustedprofitwasRs1.2bn.

August27,2016

Exhibit3:

TataMotors

Q1FY17ResultOverviewStandalone(Rsm)

Y/eMarch

Q1FY17

Q1FY16

YoYgr.(%)

Q4FY16

FY17E

FY16

YoYgr.(%)

NetRevenues

103,196

93,242

10.7

125,698

490,920

423,698

15.9

RawMaterials

68,865

63,632

8.2

84,891

343,644

295,953

16.1

66.7

68.2

67.5

70.0

69.8

8,983

8,083

11.1

7,445

34,364

30,268

5.9

7.0

7.1

13.4

25,613

85,911

80,418

20.4

17.5

19.0

%ofNetSales

Personnel

%ofNetSales

Manufacturing&OtherExp

%ofNetSales

Expensescapitalised
TotalExpenditure
EBITDA

8.7

8.7

20,911

18,437

20.3

19.8

13.5
6.8

2,468

2,560

2,469

10,859

10,342

96,291

87,591

9.9

115,481

453,061

396,297

14.3

6,905

5,651

NA

10,217

37,859

27,401

NA

EBITDAMargin(%)

6.7

6.1

8.1

7.7

6.5

8,284

6,747

22.8

7,394

30,096

28,784

4.6

(1,380)

(1,096)

NA

2,823

7,763

(1,382)

NA

InterestExpenses

3,401

4,350

(21.8)

3,438

12,558

14,811

(15.2)

Nonoperatingincome

6,246

5,827

7.2

1,297

16,211

14,766

9.8

Depreciation
EBIT

Forexgain

(1,087)

(218)

NA

(287)

(914)

NA

ExtraordinaryExpenses

88

NA

2,718

NA

ExtraordinaryIncome

3,245

NA

3,304

6,564

NA

PBT

379

3,320

NA

3,697

11,416

1,504

NA

TaxTotal

121

422

(71.3)

(953)

1,712

(838)

NA

32.0

12.7

25.8

15.0

55.8

258

2,898

NA

4,650

9,703

2,342

NA

1,235

(80)

NA

1,606

9,703

(772)

NA

TaxRate(%)Total

ReportedPAT
Adj.PAT
Source:CompanyData,PLResearch

JLRperformance

With higher volumes in most geographies, JLR reported 9.2% YoY volume
growth (excluding 13,558 units at China JV). With higher net realisations QoQ
(flatYoY),revenuegrew9.2%YoYtoGBP5.46bn.

JLRsunadjustedEBITDAwasGBP672m(vsGBP821minQ1FY16).TheQ1FY17
operating performance reflected benefitsof the higheroverall wholesales, but
these were offset by and adverse forex impact of GBP 207m, including
revaluation of GBP 84m (mainly euro payables resulting from depreciation of
theGBPpostBrexitvote).EBITDAmarginexcludingtheforexrevaluationofGBP
84m was 13.8%. JLRs OPM was also impacted due to lower local market
incentiveYoY.

JLRs reported profit was GBP 304m, while the adjusted profit (for forex and
extraordinaries)wasGBP306m(lower19.9%YoY).

JLR had free cash outflow of GBP 633m after GBP 692m of total investment
spendingandGBP647mofseasonalandlaunchrelatedincreasesininventory.
JLRhadcash&depositsofGBP3.7bnandanundrawnrevolvingcreditfacilityof
GBP1.9bn.

August27,2016

Exhibit4:

TataMotors

Q1FY17ResultOverviewJaguarLandRover(m)

Y/eMarch

Q1FY17

Q1FY16

YoYgr.(%)

Q4FY16

FY17E

FY16

YoYgr.(%)

NetRevenues

5,461

5,002

9.2

6,594

26,231

22,208

18.1

RawMaterials

3,227

2,906

11.0

3,828

15,607

13,146

18.7

59.1

58.1

58.1

59.5

59.2

605

552

9.6

648

2,623

2,321

9.8

10.0

10.5

15.1

1,513

5,574

4,836

22.9

21.3

21.8

%ofNetSales

Personnel

%ofNetSales

Manufacturing&OtherExp

%ofNetSales

Expensescapitalised

11.1

11.0

1,195

1,038

21.9

20.8

13.0
15.3

322

315

298

1,443

1,242

4,705

4,181

12.5

5,691

22,362

19,061

17.3

EBITDA

756

821

(7.9)

903

3,869

3,147

22.9

TotalExpenditure

13.8

16.4

13.7

14.8

14.2

Depreciation

EBITDAMargin(%)

388

318

22.0

378

1,673

1,418

18.0

EBIT

368

503

(26.8)

525

2,196

1,729

27.0

InterestExpenses

12

33.3

13

49

52

(5.0)

Forexgain

31

149

(79.2)

(42)

31

(27)

(214.8)

ExtraordinaryExpenses

84

NA

84

245

(65.7)

ExtraordinaryIncome

51

NA

58

51

150

(66.0)

ChineJVprofit

45

(4)

NA

49

198

64

NA

399

639

(37.6)

577

2,343

1,619

44.7

95

146

(34.9)

105

579

245

136.3

23.8

22.8

18.2

24.7

15.1

ReportedPAT

304

493

(38.3)

472

1,764

1,374

28.4

Adj.PAT

306

381

(19.9)

456

1,765

1,459

21.0

PBT
TaxTotal

TaxRate(%)Total

Source:CompanyData,PLResearch

Conferencecallhighlights:

JLRretailswereupinallregions,reflectingstrongsalesoftheDiscoverySport,
XE,andthenewFPace.ThehealthytrajectoryisexpectedtocontinueinAugust
andSeptember.ThecompanywouldbewatchingChinaandUKmarketsclosely
astheseregionscopewithlowerGDPrate/Brexit.

Strategy for JLR ahead would involve investment in new products, technology,
andmanufacturingcapacity,buildingonrecentproductlauncheswiththesales
rampup of the FPace, long wheelbase in China, the Evoque convertible, and
otherfuturenewmodellaunches

JLRs investment spending to be in the region of GBP 3.75bn in FY17 (~GBP

3.5bninFY16).

JLRslowerEBITDAmarginat12.3%(vs16.4%yoy)reflected:unfavourableforex
revaluation (GBP 84m on mainly euro payables), lower market incentive on a
yoy basis, and product launch costs (FPace), slightly offset by favourable
volumeandmix.Adjustedfortheforexrevaluation,theOPMinQ1FY17would
havebeen~14%.

August27,2016

TataMotors

There were recoveries to the tune of Rs4.78bn (GBP50m) on account of the

Tianjin incident last year (Total provision made against the carrying value of
inventory for the same in Q2FY16 was Rs24.93bn (GBP 245m). Insurance
proceedingsandrecoveriessofarhavebeentothetuneof3.33bn(GBP138m)).

ShareofprofitfromChinaJVwasGBP45minQ1FY17.Whileprofitabilityatthe
JV has been robust for the past 2 quarters, this may moderate in subsequent
quarters.

On Brexit, JLR would benefit from a weaker pound, but in the nearterm this
wouldbelargelyoffsetbyhedgestakenwhenthepoundwasstronger.

India M&HCVs should see growth in FY17 despite some headwinds in recent
months on the back of good monsoons, replacement and fleet expansion
demand,andprebuying.Scrappingnormsifimplementedcanresultinfurther
growthtriggersfortheindustry.

August27,2016


IncomeStatement(Rsm)
Y/eMarch
2015
NetRevenue
RawMaterialExpenses
GrossProfit
EmployeeCost
OtherExpenses
EBITDA
Depr.&Amortization
NetInterest
OtherIncome
ProfitbeforeTax
TotalTax
ProfitafterTax
ExOditems/Min.Int.
Adj.PAT
Avg.SharesO/S(m)
EPS(Rs.)

2016

2017E
s

2018E

2,627,963 2,755,611
1,599,200 1,624,190
1,028,763 1,131,421
255,490 291,989
334,037 437,065
439,237 402,367
162,638 204,946
48,615
46,234
10,959
11,378
217,026 139,809
76,429
28,726
140,597 111,083
(18,944) (15,684)
159,809 127,194
3,218.9
3,395.9
49.6
37.5

3,047,450

1,800,313
1,247,136
319,982
488,989
438,165
220,298
43,922
8,073
182,018
45,437
136,582
15,995
157,105
3,396.1
46.3

3,463,134
2,081,029
1,382,105
363,629
507,870
510,606
245,094
41,726
11,854
235,641
59,490
176,151
20,469
194,620
3,396.1
57.3

TataMotors

BalanceSheetAbstract(Rsm)
Y/eMarch
2015

2016

2017E

2018E

562,619
692,115
(9,567)
1,245,167
1,124,226
46,970
153,367
(35,407)
321,158
713,527
1,070,091

1,289,157

807,827
630,999
13,279
1,452,105
1,288,507
48,365
204,661
(89,428)
328,800
795,379
1,213,607

1,452,105

957,754
610,999
13,279
1,582,033
1,524,754
48,365
211,661
(202,747)
240,944
861,353
1,305,044

1,582,033

1,144,508
590,999
13,279
1,748,786
1,693,031
48,365
218,661
(211,271)
258,178
955,361
1,424,810

1,748,786

QuarterlyFinancials(Rsm)
Y/eMarch
Q2FY16

Q3FY16

Q4FY16

Q1FY17

NetRevenue
EBITDA
%ofrevenue
Depr.&Amortization
NetInterest
OtherIncome
ProfitbeforeTax
TotalTax
ProfitafterTax
Adj.PAT

722,564
102,365
14.2
51,956
10,915
1,806
47,943
12,699
35,075
28,432

806,844
124,607
15.4
54,974
12,552
2,486
65,611
13,546
51,771
45,727

658,950
92,909
14.1
54,220
11,694
1,736
25,514
7,200
22,364
24,937

Shareholder'sFunds

TotalDebt
OtherLiabilities
TotalLiabilities
NetFixedAssets
Goodwill
Investments
NetCurrentAssets
Cash&Equivalents
OtherCurrentAssets
CurrentLiabilities
OtherAssets
TotalAssets

CashFlowAbstract(Rsm)
Y/eMarch
C/FfromOperations
C/FfromInvesting
C/FfromFinancing
Inc./Dec.inCash
OpeningCash
ClosingCash
FCFF
FCFE

2015

2016

2017E

2018E

271,014
(328,041)
81,066
24,040
297,118
321,158
257,617
400,187

546,574
(387,111)
(151,821)
7,642
321,158
328,800
(227,020)
(288,136)

407,027
(427,000)
(67,882)
(87,856)
328,800
240,944
(17,134)
(37,134)

468,826
(382,000)
(69,592)
17,234
240,944
258,178
90,472
70,472

KeyFinancialMetrics
Y/eMarch
Growth
Revenue(%)
EBITDA(%)
PAT(%)
EPS(%)

Profitability
EBITDAMargin(%)
PATMargin(%)
RoCE(%)
RoE(%)

BalanceSheet
NetDebt:Equity
NetWrkngCap.(days)

Valuation
PER(x)
P/B(x)
EV/EBITDA(x)
EV/Sales(x)

EarningsQuality

613,182
77,245
12.6
52,721
11,594
2,452
(11,146)
(7,036)
(11,925)
14,604

2015

2016

2017E

12.9
17.4
6.7
6.7

4.9
(8.4)
(20.4)
(24.6)

10.6
8.9
23.5
23.5

13.6
16.5
23.9
23.9

14.4
5.2
12.4
17.8

14.7
5.6
13.5
18.5

0.4
(54)

0.3
(53)

10.9
1.8
4.7
0.7

8.8
1.5
4.0
0.6

25.0
6.1
8.4
(23.6)

25.2
5.0
8.2
36.2

16.7
6.1
15.7
26.2

14.6
4.6
11.8
18.6

0.7
(47)

0.4
(51)

10.1
2.9
4.5
0.8

13.4
2.1
5.0
0.7

Eff.TaxRate
35.2
OtherInc/PBT
3.8
Eff.Depr.Rate(%)
10.3
FCFE/PAT
250.4
Source:CompanyData,PLResearch.

20.5
6.1
9.3
(226.5)

2018E

KeyOperatingMetrics
Y/eMarch

2015

2016

2017E

2018E

StandaloneM&HCVsales(units)
142,737
StandaloneLCVsales(units)
221,802
StandalonePCsales(units)
111,982
StandaloneUVsales(units)
25,617
Totalstandalonesales(units)
502,138
StandaloneEBITDAmargin(%)
(1.4)
Jaguarvolume(units)
76,496
LandRovervolume(units)
385,983
TotalJLRvolume(units)
462,479
JLREBITDAmarginIFRS(%)
18.9
Source:CompanyData,PLResearch.

176,493
204,741
111,072
19,406
511,712
6.5
102,106
407,228
509,334
14.2

196,493
226,228
137,371
16,194
576,285
7.7
174,681
409,387
584,067
14.8

217,256
259,816
141,675
16,194
634,940
8.0
218,637
427,488
646,125
15.3

August27,2016

TataMotors

PrabhudasLilladherPvt.Ltd.
3rdFloor,SadhanaHouse,570,P.B.Marg,Worli,Mumbai400018,India

Tel:(9122)66322222Fax:(9122)66322209
RatingDistributionofResearchCoverage

PLsRecommendationNomenclature
BUY

Over15%OutperformancetoSensexover12months

Accumulate

OutperformancetoSensexover12months

50%

Reduce

UnderperformancetoSensexover12months

40%

Sell

Over15%underperformancetoSensexover12months

TradingBuy

Over10%absoluteupsidein1month

TradingSell

Over10%absolutedeclinein1month

NotRated(NR)

Nospecificcallonthestock

70%

57.8%

60%
%ofTotalCoverage

30%

25.9%
16.4%

20%
10%

0.0%

0%
BUY

Accumulate

Reduce

UnderReview(UR) :

Sell

Ratinglikelytochangeshortly

DISCLAIMER/DISCLOSURES
ANALYSTCERTIFICATION
We/I,Mr.RohanKorde(MMS,BCom),ResearchAnalysts,authorsandthenamessubscribedtothisreport,herebycertifythatalloftheviewsexpressedinthisresearchreportaccuratelyreflectourviewsaboutthe
subjectissuer(s)orsecurities.Wealsocertifythatnopartofourcompensationwas,is,orwillbedirectlyorindirectlyrelatedtothespecificrecommendation(s)orview(s)inthisreport.
Terms&conditionsandotherdisclosures:
PrabhudasLilladherPvt.Ltd,Mumbai,India(hereinafterreferredtoasPL)isengagedinthebusinessofStockBroking,PortfolioManager,DepositoryParticipantanddistributionforthirdpartyfinancialproducts.PLisa
subsidiaryofPrabhudasLilladherAdvisoryServicesPvtLtd.whichhasitsvarioussubsidiariesengagedinbusinessofcommoditybroking,investmentbanking,financialservices(marginfunding)anddistributionofthird
partyfinancial/otherproducts,detailsinrespectofwhichareavailableatwww.plindia.com
ThisdocumenthasbeenpreparedbytheResearchDivisionofPLandismeantforusebytherecipientonlyasinformationandisnotforcirculation.Thisdocumentisnottobereportedorcopiedormadeavailableto
otherswithoutpriorpermissionofPL.Itshouldnotbeconsideredortakenasanoffertosellorasolicitationtobuyorsellanysecurity.
Theinformationcontainedinthisreporthasbeenobtainedfromsourcesthatareconsideredtobereliable.However,PLhasnotindependentlyverifiedtheaccuracyorcompletenessofthesame.NeitherPLnoranyofits
affiliates,itsdirectorsoritsemployeesacceptsanyresponsibilityofwhatsoevernaturefortheinformation,statementsandopiniongiven,madeavailableorexpressedhereinorforanyomissiontherein.
Recipientsofthisreportshouldbeawarethatpastperformanceisnotnecessarilyaguidetofutureperformanceandvalueofinvestmentscangodownaswell.Thesuitabilityorotherwiseofanyinvestmentswilldepend
upontherecipient'sparticularcircumstancesand,incaseofdoubt,adviceshouldbesoughtfromanindependentexpert/advisor.
Either PL or its affiliates or itsdirectorsor its employees or itsrepresentatives or its clientsortheir relativesmay have position(s), make market, act as principal or engage in transactionsof securitiesofcompanies
referredtointhisreportandtheymayhaveusedtheresearchmaterialpriortopublication.
PLmayfromtimetotimesolicitorperforminvestmentbankingorotherservicesforanycompanymentionedinthisdocument.
PLisintheprocessofapplyingforcertificateofregistrationasResearchAnalystunderSecuritiesandExchangeBoardofIndia(ResearchAnalysts)Regulations,2014
PLsubmitsthatnomaterialdisciplinaryactionhasbeentakenonusbyanyRegulatoryAuthorityimpactingEquityResearchAnalysisactivities.
PLoritsresearchanalystsoritsassociatesorhisrelativesdonothaveanyfinancialinterestinthesubjectcompany.
PLoritsresearchanalystsoritsassociatesorhisrelativesdonothaveactual/beneficialownershipofonepercentormoresecuritiesofthesubjectcompanyattheendofthemonthimmediatelyprecedingthedateof
publicationoftheresearchreport.
PLoritsresearchanalystsoritsassociatesorhisrelativesdonothaveanymaterialconflictofinterestatthetimeofpublicationoftheresearchreport.
PLoritsassociatesmighthavereceivedcompensationfromthesubjectcompanyinthepasttwelvemonths.
PLoritsassociatesmighthavemanagedorcomanagedpublicofferingofsecuritiesforthesubjectcompanyinthepasttwelvemonthsormandatedbythesubjectcompanyforanyotherassignmentinthepasttwelve
months.
PLoritsassociatesmighthavereceivedanycompensationforinvestmentbankingormerchantbankingorbrokerageservicesfromthesubjectcompanyinthepasttwelvemonths.
PLoritsassociatesmighthavereceivedanycompensationforproductsorservicesotherthaninvestmentbankingormerchantbankingorbrokerageservicesfromthesubjectcompanyinthepasttwelvemonths
PLoritsassociatesmighthavereceivedanycompensationorotherbenefitsfromthesubjectcompanyorthirdpartyinconnectionwiththeresearchreport.
PL encourages independence in research reportpreparation and strivesto minimize conflict inpreparationof research report. PL or its analystsdid not receive any compensationor other benefits from the subject
Companyorthirdpartyinconnectionwiththepreparationoftheresearchreport.PLoritsResearchAnalystsdonothaveanymaterialconflictofinterestatthetimeofpublicationofthisreport.
ItisconfirmedthatMr.RohanKorde(MMS,BCom),ResearchAnalystsofthisreporthavenotreceivedanycompensationfromthecompaniesmentionedinthereportintheprecedingtwelvemonths
CompensationofourResearchAnalystsisnotbasedonanyspecificmerchantbanking,investmentbankingorbrokerageservicetransactions.
TheResearchanalystsforthisreportcertifiesthatalloftheviewsexpressedinthisreportaccuratelyreflecthisorherpersonalviewsaboutthesubjectcompanyorcompaniesanditsortheirsecurities,andnopartofhis
orhercompensationwas,isorwillbe,directlyorindirectlyrelatedtospecificrecommendationsorviewsexpressedinthisreport.
Theresearchanalystsforthisreporthasnotservedasanofficer,directororemployeeofthesubjectcompanyPLoritsresearchanalystshavenotengagedinmarketmakingactivityforthesubjectcompany
Oursalespeople,traders,andotherprofessionalsoraffiliatesmayprovideoralorwrittenmarketcommentaryortradingstrategiestoourclientsthatreflectopinionsthatarecontrarytotheopinionsexpressedherein,
andourproprietarytradingandinvestingbusinessesmaymakeinvestmentdecisionsthatareinconsistentwiththerecommendationsexpressedherein.Inreviewingthesematerials,youshouldbeawarethatanyorallo
theforegoing,amongotherthings,maygiverisetorealorpotentialconflictsofinterest.
PLanditsassociates,theirdirectorsandemployeesmay(a)fromtimetotime,havealongorshortpositionin,andbuyorsellthesecuritiesofthesubjectcompanyor(b)beengagedinanyothertransactioninvolving
suchsecuritiesandearnbrokerageorothercompensationoractasamarketmakerinthefinancialinstrumentsofthesubjectcompanyoractasanadvisororlender/borrowertothesubjectcompanyormayhaveany
otherpotentialconflictofinterestswithrespecttoanyrecommendationandotherrelatedinformationandopinions.
DISCLAIMER/DISCLOSURES(FORUSCLIENTS)
ANALYSTCERTIFICATION
Theresearchanalysts,withrespecttoeachissueranditssecuritiescoveredbytheminthisresearchreport,certifythat:Alloftheviewsexpressedinthisresearchreportaccuratelyreflecthisorherortheirpersonal
viewsaboutalloftheissuersandtheirsecurities;andNopartofhisorherortheircompensationwas,isorwillbedirectlyrelatedtothespecificrecommendationorviewsexpressedinthisresearchreport
Terms&conditionsandotherdisclosures:
ThisresearchreportisaproductofPrabhudasLilladherPvt.Ltd.,whichistheemployeroftheresearchanalyst(s)whohaspreparedtheresearchreport.Theresearchanalyst(s)preparingtheresearchreportis/are
residentoutsidetheUnitedStates(U.S.)andarenotassociatedpersonsofanyU.S.regulatedbrokerdealerandthereforetheanalyst(s)is/arenotsubjecttosupervisionbyaU.S.brokerdealer,andis/arenotrequiredto
satisfytheregulatorylicensingrequirementsofFINRAorrequiredtootherwisecomplywithU.S.rulesorregulationsregarding,amongotherthings,communicationswithasubjectcompany,publicappearancesand
tradingsecuritiesheldbyaresearchanalystaccount.
This report is intended for distribution by Prabhudas Lilladher Pvt. Ltd. only to "Major Institutional Investors" as defined by Rule 15a6(b)(4) of the U.S. Securities and Exchange Act, 1934 (the Exchange Act) and
interpretationsthereofbyU.S.SecuritiesandExchangeCommission(SEC)inrelianceonRule15a6(a)(2).IftherecipientofthisreportisnotaMajorInstitutionalInvestorasspecifiedabove,thenitshouldnotactupon
thisreportandreturnthesametothesender.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 Institutional Investors, Prabhudas
LilladherPvt.Ltd.hasenteredintoanagreementwithaU.S.registeredbrokerdealer,MarcoPoloSecuritiesInc.("MarcoPolo").
TransactionsinsecuritiesdiscussedinthisresearchreportshouldbeeffectedthroughMarcoPolooranotherU.S.registeredbrokerdealer.

August27,2016

RADHAKRISHNA
N SREESANKAR

Digitally signed by RADHAKRISHNAN SREESANKAR

DN: c=IN, o=Personal, cn=RADHAKRISHNAN
SREESANKAR,
serialNumber=8859da2df03122989b585ad520865a4f5
9be69fbc1b7ba2c5315941f987f41de,
postalCode=400104, st=MAHARASHTRA
Date: 2016.08.27 21:32:05 +05'30'