Tata Communications
Estimate change
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
TCOM IN
285
262.6 / 3.4
937 / 206
4/121/155
104
19 October 2020
2QFY21 Results Update | Sector: Telecom
CMP: INR 921
TP: INR900 (-2% )
Neutral
Sharp data margin improvement drives EBITDA growth
Tata Communications’ (TCOM) 2QFY21 revenues were flat (in-line) despite
the expectation of increasing data usage due to work from home (WFH).
EBITDA jumped 11% QoQ (12% beat), led by sharp data margin
improvement, which can be partly attributed to cost cutting initiatives and
some portion to one-time COVID-19 cost benefit.
We have increased our FY21/FY22E EBITDA estimates by 9%/10% due to
better-than-expected EBITDA, driven by the cost initiatives. We have built
in 23% EBITDA CAGR over FY20-22E with 106% growth for 2HFY21.
Financials & Valuations (INR b)
Y/E March
FY20 FY21E FY22E
Sales
170.7 178.3 191.5
EBITDA
32.9 45.2 50.0
Adj. PAT
3.0 14.6 18.8
EBITDA Margin(%)
19.3 25.4 26.1
Adj. EPS (INR)
10.6 51.2 66.0
EPS Gr. (%)
-582.2 384.7 28.8
BV/Sh. (INR)
NM
4.1 70.0
Ratios
RoE (%)
NM NM 177.9
RoCE (%)
NM 19.6 18.7
Payout (%)
NM
9.5
7.1
Valuations
EV/EBITDA (x)
7.3
5.0
4.1
P/E (x)
55.8 11.5
8.9
P/BV (x)
NM 144.0
8.4
Div. Yield (%)
0.7
0.7
0.7
FCF Yield (%)
4.6
7.8 13.1
Shareholding pattern (%)
As On
Sep-20 Jun-20
Promoter
75.0
75.0
DII
1.5
1.8
FII
17.6
17.2
Others
6.0
6.0
FII Includes depository receipts
Revenues flat QoQ at INR44b (in-line); EBITDA up 11% (12% beat)
Sep-19
75.0
1.7
18.2
5.1
Consolidated revenues were flat QoQ at INR44b (in-line). Voice segment
revenue stood at INR7.6b (5% down QoQ) while Data segment revenue was
up a mere 1% QoQ to INR36.4b, despite the narrative of COVID-19 driving
data consumption.
Yet, EBITDA grew 11% QoQ to INR11.6b (12% beat) due to sharp 14%
growth in Data EBITDA QoQ, which can be attributed to cost initiatives and
continuation of COVID-related SG&A cost reduction along with some costs
being pushed to 2HFY21. Adjusting EBITDA for ~INR700m cost, which will be
reversed over the next couple of quarters, sustainable EBITDA growth
stands at ~4%.
PAT grew 49% QoQ to INR3.8b, whereas adjusted PAT (for exceptional
items) stood at INR4.4b, up 63% QoQ (63% beat) on strong EBITDA growth
and 4x jump in other income.
Capex for 2QFY21 moderated to INR3.2b (v/s INR3.7b in 1QFY21). 1HFY21
capex stands at INR6.9b (v/s 1HFY20 capex of INR7.6b). Net Debt reduced
by INR3.8b QoQ to INR86b.
Data revenue was flat QoQ to INR36b, while Data EBITDA jumped 14% QoQ
to INR11b (contributing 96% of total EBITDA) with margin at 30.4%.
Revenue was impacted by slower deal conversion due to COVID-19, forex
and moderation in growth services, while EBITDA gained due to cost
efficiencies. Adjusting for INR700m one-time cost benefits, sustainable data
EBITDA growth was 6% QoQ.
Traditional segment (contributing ~two-thirds of Data revenue)
revenue/EBITDA grew 2%/8% QoQ to INR23b/INR10.2b with 250bp margin
expansion. While Growth segment saw 2% revenue decline due to
moderation in enterprise voice traffic, EBITDA surged 30% to INR1.5b with
420bp margin expansion. Video connect business/Security services/hosting
business grew 74%/45%/11% QoQ.
Transformation segment saw flat QoQ revenue of INR3.3b, however, it
turned EBITDA positive to INR40m (v/s EBITDA loss of INR30m in 1QFY21)
due to termination of an onerous contract.
Research Analyst: Aliasgar Shakir
(Aliasgar.Shakir@motilaloswal.com);
Suhel Shaikh
(Suhel.Ahmad@MotilalOswal.com) /
Anshul Aggarwal
(Anshul.Aggarwal@motilaloswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal
October
research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
19
Oswal
2020
1
 Motilal Oswal Financial Services
Tata Communications
Highlights from management commentary
Cost optimization:
TCOM should see more cost rationalization in FY22. Of this,
major portion should come from change in the offshore and onshore mix.
However, some of the one-time COVID-19 related benefits would see reversal.
Thus, overall EBITDA margin should be in the range of 22-25%.
Revenue:
TCOM is in process of executing large international deals and expects
high revenue/EBITDA growth in the coming years.
Growth services:
EBITDA margin has improved due to change in the service mix
as more profitable services are contributing a higher portion of the revenue.
Valuation and view
TCOM’s cumulative EBITDA growth of 52% over the last three quarters led by
the stellar data margin improvement of 960bp has exceeded our expectations.
However, this may not be a recurring phenomenon as management has guided
for 22-25% EBITDA margin against prevailing EBITDA margin of 26%. Data
revenue growth despite the WFH model has been a modest 1% due to some
COVID-19 impact and delay in execution of some deals. Incremental earnings
growth necessitates healthy data revenue growth.
We have assigned EV/EBITDA multiple of 7x/2x to data/voice business on FY22E
EBITDA to arrive at a TP of INR900 (earlier INR790). The increase in TP is
primarily on earnings revision owing to its improving margins and
management’s focus on profitable growth. Further, improvement in FCF
generation led by EBITDA growth has seen some deleveraging. However, the
stock’s sharp rally from INR230 in Apr’20 to INR920 currently (3x growth), leaves
limited upside.
Maintain Neutral.
Cons. Quarterly Earning Model
Y/E March
Revenue
YoY Change (%)
Total Expenditure
EBITDA
YoY Change (%)
Depreciation
Interest
Other Income
PBT before EO expense
Exceptional (gain)/loss
PBT
Tax
Rate (%)
MI & P/L of Asso. Cos.
Reported PAT
Adj PAT
YoY Change (%)
E: MOFSL Estimates
(INR m)
FY20
FY21E
FY20
FY21E
2Q
Est
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
FY21E Var (%)
41,686 42,728 42,287 43,979 44,029 44,011 44,742 45,473 1,70,680 1,78,254 44,150
-0.3
5.7
5.0
-1.0
3.6
5.6
3.0
5.8
3.4
3.3
4.4
3.3
33,430 34,391 34,679 35,291 33,612 32,436 33,185 33,823 1,37,790 1,33,056 33,782
-4
8,256 8,337 7,608 8,688 10,418 11,575 11,556 11,649 32,890 45,198 10,369
12
40.7
32.3
-9.7
26.8
26.2
38.8
51.9
34.1
19.8
37.4
24.4 1448bps
5,522 5,583 5,605 6,867 5,899 5,719 5,756 5,651 23,577 23,026 5,818
-2
1,157 1,157 1,161 1,232 1,163 1,064 1,054 1,054
4,707
4,336
1,095
-3
88
95
140
373
147
761
225
214
697
1,347
135
463
1,666 1,692
981
963
3,503 5,553 4,970 5,158
5,302 19,184 3,591
55
65
59
0
3,781
105
540
0
0
3,905
644
0
1,601 1,632
981
-2,818 3,398 5,013 4,970 5,158
1,397 18,540 3,591
40
852
1,107
406
-98
812
1,153 1,292 1,341
2,267
4,599
898
53.2
67.8
41.3
3.5
23.9
23.0
26.0
26.0
162.3
24.8
25.0
-18
-14
-9
30
8
15
-3
-31
-11
-11
3
766
539
585
-2,750 2,578 3,845 3,681 3,848
-860
13,950 2,696
43
796
598
585
1,031 2,683 4,384 3,681 3,848
3,011 14,596 2,696
63
NM
NM
NM
-479.8
NM
NM
NM
273.3 -582.2 384.7
NM
19 October 2020
2
 Motilal Oswal Financial Services
Tata Communications
Key Performance Indicators
Y/E March
Revenue Mix
1Q
2Q
FY20
3Q
4Q
1Q
2Q
FY21E
3Q
4Q
FY20
FY21E
2Q
FY21E
Voice segment (%)
Data segment (%)
EBITDA Margins
21.4
78.6
10.0
22.5
19.8
6.6
1.9
20.5
79.5
9.3
22.1
19.5
6.4
1.4
19.1
80.9
5.8
20.9
18.0
4.7
1.4
18.3
81.7
5.7
22.9
19.8
4.1
2.3
18.1
81.9
8.4
27.1
23.7
10.3
6.1
17.2
82.8
6.6
30.4
26.3
13.3
10.0
16.8
83.2
6.8
29.7
25.8
13.0
8.2
16.4
83.6
6.7
29.3
25.6
13.2
8.5
19.8
80.2
7.8
22.1
19.3
5.5
1.8
17.1
82.9
7.1
29.1
25.4
12.4
8.2
17.9
82.1
7.4
26.5
23.5
10.3
6.1
Voice Segment (%)
Data Segment (%)
EBITDA Margins (%)
EBIT Margin (%)
Adj. PAT Margins (%)
E:MOFSL Estimates
Financials
TCOM reported exceptional items of INR118m toward interest for the unpaid
provision of licensee fees (for which the company made provisions of INR3.4b
toward the DoT demand in the AGR case in 4QFY20 and additional INR105m in
1QFY21) and INR1,095m toward staff optimization cost. Further, TCOM
recorded INR674m from gains on sale of assets held for sale.
Segmental highlights
Innovation segment’s revenue grew 57% QoQ to INR360m and EBITDA loss fell
to INR800m (v/s loss of INR1b in 1QFY21).
Voice segment revenue declined 5% QoQ to INR7.6b along with 25% fall in
EBITDA to INR500m.
Payments solution segment revenue was up 12% QoQ to INR580m and EBITDA
loss stood at INR40m (flat QoQ), affected by the lockdown as average
transactions came down to 64 in 2QFY21 (v/s 84 in 2QFY20).
Exhibit 1: Valuation based on FY22E EBITDA
Particulars
EBITDA (INR m)
multiple (x)
Voice EBITDA (INR m)
multiple (x)
Data EBITDA (INR m)
multiple (x)
Enterprise Value (INR m)
Net Debt (INR m)
Equity value (INR m)
No of shares (m)
Equity value/share (INR)
% Upside(Downside)
Land Bank (INR)
Fair Value (INR)
CMP (INR)
% Upside(Downside)
FY22E
49,988
7.0
1,860
2
48,129
7
3,48,751
92,236
2,56,515
285
900
-2%
176
1,076
921
17%
Source: MOFSL, Company
19 October 2020
3
 Motilal Oswal Financial Services
Tata Communications
Exhibit 2: TCOM – 1-year forward EV/EBITDA
EV/EBITDA (x)
Avg (x)
Min (x)
+1SD
12.0
8.0
4.0
0.0
6.0
3.4
Max (x)
-1SD
11.6
7.9
9.7
6.6
Source: MOFSL, Company
Management call highlights
Key Highlights
Cost optimization:
TCOM should see more cost rationalization in FY22. Of this, a
major portion should come from change in the offshore and onshore mix.
However, some of the one-time COVID-19 related benefits should see reversal.
Thus, overall EBITDA margin should be in the range of 22-25%.
Revenue:
TCOM is in the process of executing large international deals and
expects high revenue/EBITDA growth in the coming years.
Growth services:
EBITDA margin improved due to change in the service mix as
more profitable services are contributing a higher portion of the revenue.
Tax rate:
It should be in the range of 28-30% from FY22E; however,
management is looking to keep it in the range of 25-28%. Overseas accumulated
losses should help TCOM in remaining tax efficient.
Operational performance
Enterprise business:
It grew 9.9% YoY led by 5.1% growth in India and 16%
growth in International market.
Forex impact:
Data revenue should have grown by 1.7% QoQ, excluding the
forex impact.
COVID-19 impact:
TCOM is witnessing delays in deal closure; however, its
pipeline and funnel addition remains strong.
Growth services:
EBITDA margin improved due to change in service mix as more
profitable services are contributing a higher portion of the revenue. Voice traffic
has seen moderation in 2QFY21 while strong growth was seen in other services.
Seasonally weak quarter:
Second quarter of the financial year is generally weak
due to vacations.
Data services:
The segment witnessed third consecutive quarter of double-digit
EBITDA growth. One-off COVID-19 related cost benefit stood at INR430m in
2QFY21. Of the overall cost savings in 1HFY20, INR500m is due to one-time
COVID-related benefit and INR1.9-2b should be due to structural realignment.
Transformation business:
It is on track and has turned profitable with a strong
international pipeline.
19 October 2020
4
 Motilal Oswal Financial Services
Tata Communications
Payment solutions:
It remained impacted by COVID-19 with reduction in the
average number of transactions. However, management expects transactions to
increase in the future.
Return ratio:
Average cost of borrowing stood at 2.8% for 2QFY21 due to
reduction in LIBOR rates. RoCE was at 17.3% v/s 11.6% YoY.
Outlook
Cost optimization:
More cost rationalization could come in FY22. However,
some of the one-time COVID-19 related benefits would see reversal. Thus,
overall EBITDA margin should be in the range of 22-25%. Major portion of these
cost savings should come from the change in onshore and offshore mix, which
currently stands at 61:39 and should change to 57:43.
Tax rate:
It should be in the range of 28-30% from FY22E; however,
management is looking to keep it in the range of 25-28%. Overseas accumulated
losses should help TCOM in remaining tax efficient.
Revenue:
TCOM is in process of executing large international deals and expects
high revenue/EBITDA revenue growth in the coming years.
Innovation service:
Net foundry has started to pick up. It has strong pipeline
and should see major growth in FY22. India IoT business is growing and should
continue to grow. The segment should reach break-even with annual revenue of
USD125m.
Asset monetization:
TCOM is looking at all options for asset monetization
including real estate and other assets.
Leverage:
The company will utilize incremental FCF to reduce its leverage.
Exhibit 3: Quarterly performance
Revenue
Operating Expenses
EBITDA
EBITDA Margins (%)
Depreciation
Interest
Other Income
Exceptional Items
PBT
Tax
Effective Tax Rate (%)
PAT
MI & P/L in Associates
PAT after Minority
Adjusted PAT
Q2FY20
42,728
34,391
8,337
19.5%
5,583
1,157
95
59
1,632
1,107
67.8%
525
14
539
598
Q1FY21
44,029
33,612
10,418
23.7%
5,899
1,163
147
105
3,398
812
23.9%
2,586
-8
2578
2683
Q2FY21
44,011
32,436
11,575
26.3%
5,719
1,064
761
540
5,013
1,153
23.0%
3,860
-15
3,845
4,384
YoY(%)
3.0
-5.7
38.8
679bps
2.4
-8.0
697.7
811.3
207.1
4.2
635.0
-209.4
613.2
633
QoQ (%)
0.0
-3.5
11.1
264bps
-3.1
-8.5
416.3
414.3
47.5
42.0
49.3
94.9
49.1
63
Q2FY21E
44,150
33,782
10,369
23.5%
5,818
1,095
135
0
3,591
898
25.0%
2,693
3
2,696
2,696
v/s est (%)
-0.3
-4.0
11.6
282bps
-1.7
-2.8
463.1
NM
39.6
28.5
43.3
42.6
62.6
Source: MOFSL, Company
19 October 2020
5
 Motilal Oswal Financial Services
Tata Communications
Exhibit 4: Detailed segmental quarterly performance
Total Revenue
Voice segment
Data segment
Traditional services
Growth services
Innovation Service
Transformation Service
Tata Payment Solutions
EBITDA
Voice segment
Data segment
Traditional services
Margin (%)
Growth services
Margin (%)
Innovation Service
Margin (%)
Transformation Service
Margin (%)
Tata Payment Solutions
Margin (%)
Q2FY20
42,728
8,741
33,986
21,608
7,715
222
3,236
850
8,337
812
7,524
8,170
38
277
4
(1,498)
NM
182
6
192
23
Q1FY21
44,029
7,990
36,040
22,290
9,230
230
3,330
520
10,418
670
9,750
9,410
42
1,150
12
(1,010)
NM
(30)
(1)
(40)
(8)
Q2FY21
44,011
7,590
36,420
22,710
9,030
360
3,330
580
11,575
500
11,080
10,160
44.7
1,500
16.6
(800)
NM
40
1.2
-40
(7)
YoY (%)
3.0
-13.2
7.2
5.1
17.0
62.2
2.9
-31.8
38.8
-38.4
47.3
24.4
693bps
441.5
1302bps
-46.6
NM
-78.0
-442bps
-120.8
-2948bps
QoQ (%)
0.0
-5.0
1.1
1.9
-2.2
56.5
0.0
11.5
11.1
-25.4
13.6
8.0
252bps
30.4
415bps
-20.8
NM
-233.3
210bps
0.0
80bps
Q2FY21E
v/s est (%)
44,150
-0.3
7,912
-4.1
36,238
0.5
22,335
1.7
9,415
-4.1
230
56.5
3,363
-1.0
546
6.2
10369
11.6
585
-14.5
9,615
15.2
9,346
8.7
42
289bps
1,055
42.2
11
541bps
-999
-19.9
NM
NM
50
-20.7
1
-30bps
-27
49.7
-4.9
-200bps
Source: MOFSL, Company
Exhibit 5: Summary of estimate change (INR b)
Core revenue (INR b)
Old
Actual/New
Change (%)
Core EBITDA (INR b)
Old
Actual/New
Change (%)
Core EBITDA margin (%)
Old
Actual/New
Change (%)
PAT (INR m)
Old
Actual/New
Change (%)
EPS (INR)
Old
Actual/New
Change (%)
FY21E
178.6
178.3
-0.2
41.6
45.2
8.6
23.3
25.4
205bps
10.4
14.0
34.4
36.4
49.0
34.4
FY22E
191.9
191.5
-0.2
45.3
50.0
10.4
23.6
26.1
251bps
13.7
18.8
37.0
48.1
66.0
37.0
Source: MOFSL, Company
19 October 2020
6
 Motilal Oswal Financial Services
Tata Communications
Story in charts
Exhibit 6: Core EBITDA margin at 26.3%
Core revenue (INR b)
Core EBITDA margin (%)
Exhibit 7: Data biz revenue contribution continues to grow
Data EBITDA as % of core EBITDA
Data revenue as % of core revenue
84 83 86
94 95 94 96
88 87 88 85 91 86 89 90
84 82
77
80 81 82 82 83
74 75 78 79 79
70 72
62 65 64 66
60 60
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 8:
Voice revenue/EBITDA margin declined (INRb)
Voice Revenue (INR b)
EBITDA margin (%)
Exhibit 9: Data revenue flat with margin expansion (INR b)
Data Revenue (INR b)
EBITDA margin (%)
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 10: Growth segmental revenue contribution increasing (%)
100%
80%
60%
40%
20%
0%
Traditional Services
Growth Services
Transformation Service
Tata Payment Solutions
Source: MOFSL, Company
19 October 2020
7
 Motilal Oswal Financial Services
Tata Communications
Exhibit 11: Traditional business – revenue/EBITDA margin
trend
Revenue (INR b)
EBITDA margin (%)
Exhibit 12: Growth business – EBITDA margin improves
Revenue (INR b)
12.5
5.3 2.7 3.6 6.5
(0.3)
16.6
(4.4)
11.6
(9.6)
EBITDA margin (%)
(22.5)
(14.1) (14.3)
(9.8)
(16.9)
(28.6) (9.7) (13.4)
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 13: Transformation business turns profitable
Revenue (INR b)
EBITDA margin (%)
Exhibit 14: Payment solution business revenue/EBITDA
margin trend
Revenue (INR b)
EBITDA margin (%)
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 15: Quarterly capex trend
Capex (INR b)
9.3 9.8
7.9
9.9
11.4
7.6
12.3
9.0 8.3
Capex-to-core rev (%)
11.2 11.7
10.0
7.4
10.6 11.6
7.8 8.4 7.2
Source: MOFSL, Company
19 October 2020
8
 Motilal Oswal Financial Services
Tata Communications
Exhibit 16: Core segmental mix (INR m)
FY14
Revenues Segments
Voice
growth
as a % of core
Data
growth
as a % of core
Core Revenues
growth
EBITDA Segments
Voice
margin
growth
as a % of Core EBITDA
Data
margin
growth
as a % of Core EBITDA
Core EBITDA
margin
growth
93,024
8.6%
53.3%
81,485
20.7%
46.7%
1,74,509
13.9%
8,292
8.9%
13.5%
35.0%
15,418
18.9%
35.9%
65.0%
23,710
13.6%
27.1%
FY15
FY16
80,560
-8.2%
43.2%
1,05,971
17.9%
56.8%
1,86,531
5.0%
4,963
6.2%
-22.0%
18.2%
22,242
21.0%
24.4%
81.8%
27,205
14.6%
12.2%
FY17
67,581
-16.1%
38.4%
1,08,619
2.5%
61.6%
1,76,200
-5.5%
4,140
6.1%
-16.6%
17.5%
19,459
17.9%
-12.5%
82.5%
23,599
13.4%
-13.3%
FY18
53,113
-21.4%
31.7%
1,14,603
5.5%
68.3%
1,67,716
-4.8%
3,437
6.5%
-17.0%
14.2%
20,685
18.0%
6.3%
85.8%
24,122
14.4%
2.2%
FY19
38,703
-27.1%
23.4%
1,26,546
10.4%
76.6%
1,65,249
-1.5%
3,359
8.7%
-2.3%
12.2%
24,089
19.0%
16.5%
87.8%
27,448
16.6%
13.8%
FY20
33,764
-12.8%
19.8%
1,36,920
8.2%
80.2%
1,70,684
3.3%
2,634
7.8%
-21.6%
8.0%
30,258
22.1%
25.6%
92.0%
32,892
19.3%
19.8%
FY21E
30,538
-9.6%
17.1%
1,47,717
7.9%
82.9%
1,78,254
4.4%
FY22E
29,047
-4.9%
15.2%
1,62,450
10.0%
84.8%
1,91,497
7.4%
87,761
-5.7%
49.4%
89,914
10.3%
50.6%
1,77,675
1.8%
6,359
7.2%
-23.3%
26.2%
17,885
19.9%
16.0%
73.8%
24,244
13.6%
2.3%
2,172
1,860
7.1%
6.4%
-17.5%
-14.4%
4.8%
3.7%
43,044
48,129
29.1%
29.6%
42.3%
11.8%
95.2%
96.3%
45,216
49,988
25.4%
26.1%
37.5%
10.6%
Source: Company, MOFSL
19 October 2020
9
 Motilal Oswal Financial Services
Tata Communications
Financials and Valuations
Consolidated - Income Statement
Y/E March
Total Income from
Operations
Change (%)
Network Cost
Staff Cost
Operating & Other Expense
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Minority Interest
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY14
1,96,196
14.0
1,07,457
24,976
33,346
1,65,779
84.5
30,416
15.5
20,914
9,502
7,617
1,433
3,318
1,126
4,444
3,433
77.2
-3
1,014
5,333
-206.2
2.7
FY15
1,99,090
1.5
1,05,543
27,948
35,702
1,69,193
85.0
29,897
15.0
21,611
8,286
7,508
4,008
4,786
-1,052
3,734
3,705
99.2
17
13
3,027
-43.2
1.5
FY16
1,81,486
-8.8
96,724
27,396
32,949
1,57,069
86.5
24,417
13.5
18,643
5,774
4,091
3,966
5,650
-1,028
4,622
2,329
50.4
18
2,276
973
-67.9
0.5
FY17
1,76,197
-2.9
88,119
28,394
35,625
1,52,138
86.3
24,059
13.7
18,658
5,401
3,672
3,603
5,332
-10,633
-5,301
2,364
-44.6
-25
-7,640
3,016
210.0
1.7
FY18
1,67,717
-4.8
79,032
29,775
34,787
1,43,595
85.6
24,122
14.4
19,063
5,059
3,445
2,597
4,211
-3,755
456
3,549
778.2
193
-3,286
331
-89.0
0.2
FY19
1,65,250
-1.5
71,620
29,597
36,584
1,37,801
83.4
27,449
16.6
20,676
6,773
3,966
603
3,410
22
3,432
2,733
79.6
1,523
-824
-624
-288.6
-0.4
FY20
1,70,680
3.3
67,776
30,391
39,623
1,37,790
80.7
32,890
19.3
23,577
9,312
4,707
697
5,302
-3,905
1,397
2,267
162.3
-11
-860
3,011
-582.2
1.8
(INR Million)
FY21E
1,78,254
4.4
67,370
30,591
35,096
1,33,056
74.6
45,198
25.4
23,026
22,172
4,336
1,347
19,184
-644
18,540
4,599
24.8
-11
13,951
14,596
384.7
8.2
FY22E
1,91,497
7.4
71,445
31,325
38,761
1,41,530
73.9
49,966
26.1
22,722
27,244
4,075
1,878
25,047
0
25,047
6,262
25.0
-11
18,796
18,796
28.8
9.8
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Minority Interest
Total Loans
Lease liabilities
Deferred Tax Liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Right to use assets
Goodwill on Consolidation
Capital WIP
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Appl. of Funds
E: MOFSL Estimates
FY14
2,850
5,145
7,995
62
1,36,944
-727
1,44,274
2,78,736
1,35,779
1,42,957
6,185
6,530
17,582
74,431
506
27,339
16,695
29,891
1,03,411
40,403
56,324
6,684
-28,980
1,44,274
FY15
2,850
365
3,215
59
1,30,757
-2,015
1,32,015
2,99,608
1,56,419
1,43,190
3,848
6,383
17,675
68,841
264
24,870
16,212
27,495
1,07,922
36,697
61,538
9,687
-39,081
1,32,015
FY16
2,850
-6,484
-3,634
69
1,51,181
-1,072
1,46,545
3,08,467
1,67,208
1,41,259
3,246
7,998
18,306
79,095
254
30,189
19,763
28,889
1,03,359
35,764
61,748
5,847
-24,264
1,46,545
FY17
2,850
13,069
15,919
184
99,516
71
1,15,690
2,70,923
1,61,638
1,09,285
0
7,509
24,340
69,199
192
25,900
10,793
32,313
94,643
35,814
53,142
5,687
-25,444
1,15,690
FY18
2,850
2,143
4,993
45
95,395
-477
99,956
2,88,666
1,80,701
1,07,965
0
5,203
12,502
69,425
270
28,912
12,956
27,288
95,139
34,716
54,759
5,664
-25,714
99,956
FY19
2,850
-4,668
-1,818
58
1,06,844
-887
1,04,196
1,16,569
5,006
1,11,563
863
4,082
14,913
67,205
766
29,685
8,521
28,234
94,429
36,885
51,527
6,016
-27,224
1,04,196
FY20E
2,850
-15,634
-12,784
48
81,575
39,938
-2,495
1,06,282
1,29,126
28,583
1,00,543
15,956
918
4,466
15,631
72,016
730
32,289
9,091
29,906
1,03,248
38,450
57,252
7,546
-31,232
1,06,282
(INR Million)
FY21E
2,850
-1,682
1,168
48
1,10,070
39,938
-2,495
1,48,728
1,44,474
51,609
92,865
15,956
918
4,466
15,631
1,15,588
781
33,209
51,154
30,444
96,697
36,628
54,209
5,860
18,891
1,48,728
FY22E
2,850
17,113
19,963
48
1,02,630
39,938
-2,495
1,60,084
1,60,444
74,331
86,112
15,956
918
4,466
15,631
1,34,060
839
35,676
66,266
31,278
97,060
36,201
56,137
4,722
37,000
1,60,084
19 October 2020
10
 Motilal Oswal Financial Services
Tata Communications
Financials and Valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/Equity
FY14
18.7
92.1
28.1
4.5
151.8
FY15
10.6
86.4
11.3
5.5
13,711.6
55.6
6.8
52.3
1.4
9.5
0.9
44.1
54.0
0.1
0.1
0.7
1.5
0
46
67
0.6
1.1
30.1
FY16
3.4
68.8
-12.7
4.3
64.2
172.8
8.6
NM
1.7
12.3
0.7
11.7
NM
3.4
3.0
0.6
1.2
1
61
72
0.8
1.4
NM
FY17
10.6
76.0
55.9
6.0
NM
55.8
7.8
10.6
1.5
10.7
1.0
21.0
49.1
9.9
9.0
0.7
1.5
0
54
74
0.7
1.5
4.0
FY18
1.2
68.0
17.5
4.5
NM
507.9
8.7
33.7
1.5
10.4
0.8
-8.4
3.2
3.8
2.1
0.6
1.7
1
63
76
0.7
1.5
14.0
FY19
-2.2
70.4
-6.4
4.5
NM
NM
8.4
NM
1.6
9.7
0.8
-27.1
NM
1.5
1.9
1.4
1.6
2
66
81
0.7
1.7
NM
FY20
10.6
93.3
-44.9
4.0
NM
55.8
6.3
NM
1.4
7.3
0.7
36.5
NM
NM
NM
1.3
1.6
2
69
82
0.7
2.0
NM
FY21E
51.2
132.0
4.1
4.0
9.5
11.5
4.5
144.0
1.3
5.0
0.7
58.1
NM
19.6
21.6
1.2
1.2
2
68
75
1.2
5.1
37.1
FY22E
66.0
145.7
70.0
4.0
7.1
8.9
4.1
8.4
1.1
4.1
0.7
86.8
177.9
18.7
27.0
1.2
1.2
2
68
69
1.4
6.7
1.0
0.8
44.7
48.0
1.8
2.0
0.7
1.4
1
51
75
0.7
1.2
12.8
Consolidated - Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
FY14
4,444
20,914
7,038
-1,824
228
30,800
-184
30,616
-17,872
12,744
-5,101
1,675
-21,298
0
6,777
-6,694
-964
-975
-1,856
7,462
9,233
16,695
FY15
3,734
21,611
6,680
-1,120
-1,339
29,565
718
30,283
-17,713
12,570
-1,720
2,550
-16,884
0
-5,088
-6,285
-1,467
-1,043
-13,883
-483
16,695
16,211
FY16
2,626
22,194
7,151
-4,238
-4,432
23,301
326
23,627
-20,287
3,340
-3,084
3,409
-19,963
0
7,602
-5,807
-1,873
-34
-113
3,551
16,211
19,763
FY17
20,188
19,469
6,875
-7,404
-227
38,900
-14,965
23,935
-17,952
5,983
7,815
10,023
-114
0
-28,219
-3,086
-1,424
-62
-32,791
-8,970
19,763
10,793
FY18
456
19,063
3,445
-3,549
2,433
21,847
-8,796
13,051
-15,437
-2,386
11,838
2,597
-1,003
0
-4,121
-3,445
-1,988
-332
-9,885
2,163
10,793
12,956
FY19
3,432
20,676
3,966
-2,733
-3,335
22,005
-6,577
15,428
-23,152
-7,724
-2,411
-260
-25,823
0
11,448
-3,966
0
-1,523
5,960
-4,435
12,956
8,521
FY20
-848
23,577
4,707
-2,793
-2,513
22,131
3,117
25,248
-14,856
10,392
-491
49
-15,298
0
-4,044
-3,850
-1,508
62
-9,340
609
7,891
9,091
(INR Million)
FY21E
18,540
23,026
4,336
-4,599
-8,060
33,242
-1,347
31,894
-15,348
16,546
0
1,347
-14,001
0
28,495
-4,336
0
11
24,170
42,063
9,091
51,154
FY22E
25,047
22,722
4,075
-6,262
-2,996
42,586
-1,878
40,708
-15,970
24,738
0
1,878
-14,092
0
-7,440
-4,075
0
11
-11,504
15,112
51,154
66,266
19 October 2020
11
 Motilal Oswal Financial Services
Tata Communications
NOTES
19 October 2020
12
 Motilal Oswal Financial Services
Tata Communications
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial products.
MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are available on
www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading
Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and National Commodity
& Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National Securities Depository
Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance Regulatory &
Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate entities of Motilal Oswal Financial Services Limited are available on the
website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should
be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant
banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from
MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or
use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong
Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act"
and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and
investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is intended for
distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional
investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document
relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule
15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order
to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities
International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public
appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL in
respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”, of
which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
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 Motilal Oswal Financial Services
Tata Communications
The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies)
discussed herein or act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of
MOFSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature.
The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty,
representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The
report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as
customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed,
in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose
and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report
constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities
discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives,
financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this document
should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including
the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be
suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade securities - involve substantial
risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions
contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as
endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make modifications and
alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from time to time, effect
or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to perform investment
banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a separate, distinct and
independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already
available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the
views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other
person or published, copied, in whole or in part, for any purpose. 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
MOFSL 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. Neither the Firm, not its directors,
employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may
arise from or in connection with the use of the information.
The person accessing this information specifically agrees to exempt MOFSL or any of its affiliates or employees from, any
and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold
MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages,
expenses that may be suffered by the person accessing this information due to any
errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263; Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth Management
Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is a distributor of
Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. which is a
group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL. Research & Advisory
services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no assurance or guarantee
of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance Officer: Name: Neeraj
Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.
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