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
299.6 / 4.4
1169 / 206
-1/17/119
123
20 January 2021
3QFY21 Results Update | Sector: Telecom
CMP: INR1,051
TP: INR950 (-10% )
Neutral
Seasonality, slower deal conversions impact earnings
Tata Communications (TCOM)’s 3QFY21 revenue/EBITDA was a miss due to
lower-than-expected earnings reported in both the Data and Voice
segments – due to seasonality and slower deal conversions. However,
excluding a one-time cost benefit from 2QFY21, the EBITDA miss stands at
5.9% (v/s 9.5% on total EBITDA).
We reduce our revenue/EBITDA estimates for FY21 by 3%/4% and for FY22
by 7%/5% due to lower-than-expected earnings and slower deal
conversions.
Financials & Valuations (INR b)
FY20 FY21E FY22E
Y/E March
Sales
170.7 173.2 178.9
EBITDA
32.9 43.5 47.3
Adj. PAT
3.0 13.7 16.7
EBITDA Margin (%) 19.3 25.1 26.4
Adj. EPS (INR)
10.6 48.1 58.7
EPS Gr. (%)
-582.2 355.4 22.0
BV/Sh. (INR)
NM
0.6 59.3
Ratios
RoE (%)
NM
NM 196.0
RoCE (%)
NM 19.6 18.3
Payout (%)
NM 10.2
7.9
Valuations
EV/EBITDA (x)
11.3
8.3
7.2
P/E (x)
99.5 21.8 17.9
P/BV (x)
NM 1,743.5 17.7
Div. Yield (%)
0.4
0.4
0.4
Shareholding pattern (%)
As On
Dec-20 Sep-20 Dec-19
Promoter
75.0
75.0
75.0
DII
1.4
1.5
1.8
FII
17.7
17.6
17.7
Others
6.0
6.0
5.6
FII Includes depository receipts
Revenue/EBITDA miss of 5.6%/9.5%
Consolidated revenues fell 4.1% QoQ to INR42.2b (5.6% miss) on the back
of decline in the Voice and Data segments. The Voice segment’s revenue
stood at INR6.7b (11.2% down QoQ) and Data segment’s revenue was down
2.6% QoQ to INR35.5b. This was attributable to factors such as seasonality
and COVID-related weakness in deal conversions.
EBITDA declined 9.6% QoQ to INR10.5b (9.5% miss), weighed by 60%/7.4%
decline in Voice/Data to INR200m/INR10.3b. Subsequently, the EBITDA
margin shrank 150bp to 24.8%. Adjusted for a ~INR700m one-off benefit in
2QFY21 related to COVID and another one-time benefit, EBITDA declined
4% QoQ.
Other income declined 89% QoQ to INR82m. Subsequently, TCOM’s PAT
decreased 19.6% QoQ to INR3.1b; adjusted PAT (for exceptional items)
stood at INR3.2b – down 27% QoQ, indicating a 13% miss.
Capex stood at INR3.4b in 3QFY21 v/s INR3.2b in 2QFY21. Net debt fell by
INR6.6b QoQ to INR79.7b.
Data revenue / EBITDA declined 2.6%/7.4% QoQ to INR35.5b/INR10.3b
(contributing 98% to total EBITDA), with margins at 28.9%. Revenue was
lower due to a seasonally weak quarter and fewer deal conversions (COVID-
related). Adjusted for an INR430m one-off benefit in 2QFY21, EBITDA
declined 4% QoQ.
The Traditional segment (contributing ~two-thirds to data revenue) grew
0.7% QoQ to INR22.9b, led by growth in the Enterprise and OTT segments.
EBITDA fell 3.4% to INR9.8b and the EBITDA margin shrank 190bp QoQ to
42.9%.
The Growth segment posted 10.7%/16% revenue/EBITDA decline to
INR8.1b/INR1.3b due to seasonality and slower deal conversions (COVID-
related); the EBITDA margin shrank 100bp to 15.6%.
The Transformation segment saw QoQ revenue decline of 3.3% to INR3.2b;
it once again turned EBITDA-negative, with loss of INR90m (v/s EBITDA of
INR40m in 2QFY21). This segment’s revenue/profitability is impacted due to
lower transaction volumes, while transaction costs continue. The company
has deals in the order book, but the execution is taking longer as COVID
restrictions persist.
Aliasgar Shakir - Research Analyst
(Aliasgar.Shakir@motilaloswal.com)
Research Analyst: Suhel Shaikh
(Suhel.Ahmad@MotilalOswal.com) /
Anshul Aggarwal
(Anshul.Aggarwal@motilaloswal.com)
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
 Motilal Oswal Financial Services
Tata Communications
Highlights from management commentary
Cost:
TCOM’s costs should increase from 3QFY21 levels as the unwinding of
some portion of costs – which had been saved earlier due to the lockdown – is
remaining.
Deal conversions:
While
these are still happening at a slower pace, the company
is witnessing early signs of recovery. The order book is growing with
participation in large deals.
Capex:
Capex should increase in 4QFY21; however, the management would
remain watchful of the situation.
Valuation and view
TCOM's data revenue/EBITDA declined in 3QFY21 despite the expectation of
higher data usage during COVID.
Management commentary on the quality and size of deal biddings has been
encouraging and indicates potential for growth. Despite this optimistic outlook,
overall data revenue growth came in fairly flat at a 7% CAGR over FY19-21E.
Over the last seven quarters, the EBITDA margin has improved around 500bp
and company posted 27% EBITDA growth, two-thirds of which has been driven
by cost reduction initiatives. The Data segment's EBITDA margin is 28.9%;
incremental improvement hereafter could be limited, which could curtail the
pace of growth.
We think continued investment is needed in the Innovative business to achieve
scale, and slow pickup in the Transformation segment may weigh on
incremental margin improvement. Thus, we revise down our revenue/EBITDA
estimates for FY21 by 3%/4% and for FY22 by 7%/5%.
We have rolled out our EV/EBITDA multiple to FY23. We assign 7x/2x to
Data/Voice business EBITDA, with implied EV/EBITDA of 5.9x, arriving at TP of
INR950 (earlier INR940).
Maintain Neutral.
3Q
Est
FY21E Var (%)
44,742
-6
5.8
33,185
-4
11,556
0
51.9 -1440bps
5,756
-3
1,054
-1
225
-63
4,970
-21
0
4,970
-23
1,292
26.0
3
3,681
-16
3,681
-13
528.7
Cons. Quarterly Perf.
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
1Q
41,686
5.7
33,430
8,256
40.7
5,522
1,157
88
1,666
65
1,601
852
53.2
-18
766
796
NM
FY20
FY21E
FY20
FY21E
2Q
3Q
4Q
1Q
2Q
3Q
4Q
42,728 42,287 43,979 44,029 44,011 42,228 42,896 1,70,680 1,73,166
5.0
-1.0
3.6
5.6
3.0
-0.1
-2.5
3.3
1.5
34,391 34,679 35,291 33,612 32,436 31,767 31,825 1,37,790 1,29,640
8,337 7,608 8,688 10,418 11,575 10,461 11,070 32,890 43,526
32.3
-9.7
26.8
26.2
38.8
37.5
27.4
19.8
32.3
5,583 5,605 6,867 5,899 5,719 5,570 5,833 23,577 23,021
1,157 1,161 1,232 1,163 1,064 1,044 1,007
4,707
4,279
95
140
373
147
761
82
357
697
1,347
1,692
981
963 3,503 5,553 3,929 4,587
5,302 17,573
59
0 3,781
105
540
114
0
3,905
759
1,632
981 -2,818 3,398 5,013 3,815 4,587
1,397 16,814
1,107
406
-98
812 1,153
711 1,193
2,267
3,869
67.8
41.3
3.5
23.9
23.0
18.6
26.0
162.3
23.0
-14
-9
30
8
15
12
-46
-11
-11
539
585 -2,750 2,578 3,845 3,092 3,440
-860 12,954
598
585 1,031 2,683 4,384 3,206 3,440
3,011 13,713
NM
NM -479.8 236.9 632.8 447.6 233.7 -582.2
355.4
(INR m)
20 January 2021
2
 Motilal Oswal Financial Services
Tata Communications
Key Performance Indicators
Y/E March
1Q
Revenue Mix
FY20
2Q
3Q
4Q
1Q
FY21E
2Q
FY20
3Q
4Q
FY21E
3Q
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
16.0
84.0
3.0
28.9
24.8
11.6
7.6
15.3
84.7
6.6
29.3
25.8
12.2
8.0
19.8
80.2
7.8
22.1
19.3
5.5
1.8
16.7
83.3
6.2
28.9
25.1
11.8
7.9
16.8
83.2
6.8
29.7
25.8
13.0
8.2
Voice Segment (%)
Data Segment (%)
EBITDA Margins (%)
EBIT Margin (%)
Adj. PAT Margins (%)
E:MOFSL Estimates
Financials
TCOM reported exceptional items of INR114m toward interest on unpaid
provisions for licensee fees. The company made provisions of INR3.4b for this
toward the DoT’s demands in the AGR case in 4QFY20 and an additional
INR223m in 1HFY21.
Segmental highlights
The Innovation segment’s revenue decreased 11.1% QoQ to INR320m and
EBITDA loss increased to INR1.03b (v/s loss of INR800m in 2QFY21).
The Voice segment’s revenue/EBITDA declined 11.2%/60% QoQ to
INR6.7b/INR200m. Adjusted for an INR310m one-off benefit in 2QFY21, due to
the timing of the booking cost, EBITDA grew 5% QoQ.
The Payment Solutions segment’s revenue was up 1.7% QoQ to INR590m, and
EBITDA turned positive at INR50m (v/s EBITDA loss of INR40m in 2QFY21).
Revenue was affected by the lockdown as average transactions fell to 77 in
3QFY21 (v/s 89 in 3QFY20).
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)
FY23E
52,630
6.9
1,291
2
51,339
7
3,65,293
94,581
2,70,712
285
950
-10%
176
1,126
1051
7%
Source: MOFSL, Company
20 January 2021
3
 Motilal Oswal Financial Services
Tata Communications
Exhibit 2: TCOM – 1-year forward EV/EBITDA
16.0
12.0
8.0
4.0
0.0
EV/EBITDA (x)
Avg (x)
Max (x)
Min (x)
+1SD
-1SD
9.6
7.5
5.5
11.6
6.6
2.4
Source: MOFSL, Company
Management call highlights
Key highlights
Cost:
TCOM’s costs should increase from 3QFY21 levels as the unwinding of
some portion of costs – which had been saved earlier due to the lockdown – is
remaining
Deal conversions:
While these are still happening at a slower pace, the company
is witnessing early signs of recovery. The order book is growing with
participation in large deals.
Capex:
Capex should increase in 4QFY21; however, the management would
remain watchful of the situation
Tax rate:
TCOM would start using accumulated loss as the international business
starts delivering profit. Tax rate should be in the range of 22–25%.
Operational performance
Revenue:
TCOM’s revenue was lower in 3QFY21, weighed by a seasonally weak
quarter; usage-based revenue was also lower.
Growth Services:
This was largely impacted as a large portion of the revenue
from the segment is usage-based. COVID-19 has impacted the Media and
Mobility businesses within Growth Services – Mobility has been impacted by
lower roaming and usage charges.
Voice revenue:
This has been impacted by an increase in IUC charges for India
and the ban on Chinese OTT players in India (TCOM’s customers).
RoCE:
RoCE for trailing 12 months stood at 21.1%.
Cost increases:
TCOM saw an INR500m cost benefit in each of the last two
quarters due to the COVID-led lockdown. The company has resumed the portion
of its costs directly linked to revenue growth. In 4QFY21, costs should increase
further due to the resumption of remaining costs.
Product portfolio
Network:
This is the largest portfolio and biggest strength for the company.
TCOM is enhancing its network portfolio and transforming it to make the
portfolio future-ready.
20 January 2021
4
 Motilal Oswal Financial Services
Tata Communications
UCC:
There are three components of this portfolio – a) deployment and
management apps, b) cloud-based solutions, and c) SIP trunking (~two-thirds of
the UCC portfolio). Most of the customers in this portfolio are large cloud
service providers. Furthermore, TCOM has a competitive edge as it provides
fraud management services in this portfolio. The outlook remains strong as
TCOM is transforming this portfolio for cloud and enterprise customers.
Cloud Hosting and Security:
The company has integrated its security services in
cloud solutions. It has a strong funnel, and opportunities for these solutions are
expanding.
Mobility and IoT:
This product portfolio should drive growth for the company. It
is working on three areas in this portfolio a) Airlines – signed some large
customers, b) Auto OEMs – signed some new customers, but the scale-up is low,
and c) Semi-conductors and Industrials – a new segment.
Enterprise solutions:
Momentum from this segment is maintained and showing
an upward trend. TCOM is working with customers in the Banking, Retail, and
Automobile segments, and expects to close some deals in the near future.
Outlook
Deal conversions:
While these are still happening at a slower pace, the company
is witnessing early signs of recovery. The order book is growing YoY, and TCOM
is participating in larger and complex deals. Furthermore, its enhanced ISO and
ISO VAN portfolios with security overlay should increase earnings in the longer
term.
Cost:
TCOM has realized cost benefit of INR1b/quarter from a change in the
employee mix, and 3QFY21 should now be the new base.
Tax rate:
TCOM would start using accumulated losses as the international
business starts delivering profit. Tax rate should be in the range of 22–25%.
Earnings recovery:
QoQ growth in the Data business should reach previous
levels of 6–7% within a few quarters.
Capex:
Capex should increase in 4QFY21; however, the management would
remain watchful of the situation.
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
Q3FY20
42,287
34,679
7,608
18.0%
5,605
1,161
140
0
981
406
41.3%
576
9
585
585
Q2FY21
44,011
32,436
11,575
26.3%
5,719
1,064
761
540
5,013
1,153
23.0%
3,860
-15
3845
4384
Q3FY21
42,228
31,767
10,461
24.8%
5,570
1,044
82
114
3,815
711
18.6%
3,104
-12
3,092
3,206
YoY (%)
-0.1
-8.4
37.5
678bps
-0.6
-10.1
-41.2
NM
288.7
75.4
438.8
-227.7
428.1
448
QoQ (%)
-4.1
-2.1
-9.6
-153bps
-2.6
-1.9
-89.2
-78.8
-23.9
-38.3
-19.6
-21.1
-19.6
-27
Q3FY21E
v/s est (%)
44,742
-5.6
33,185
-4.3
11,556
-9.5
25.8%
-106bps
5,756
-3.2
1,054
-0.9
225
-63.4
0
NM
4,970
-23.2
1,292
-45.0
26.0%
3,678
-15.6
3
3,681
-16.0
3,681
-12.9
Source: MOFSL, Company
20 January 2021
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 (%)
Q3FY20
42,287
8,090
34,200
21,590
7,850
260
3,280
870
7,608
470
7,140
8,130
38
510
6
(1,480)
NM
(460)
(14)
240
28
Q2FY21
44,011
7,590
36,420
22,710
9,030
360
3,330
580
11,575
500
11,080
10,160
45
1,500
17
(800)
NM
40
1
(40)
(7)
Q3FY21
42,228
6,740
35,490
22,880
8,060
320
3,220
590
10,461
200
10,260
9,810
42.9
1,260
15.6
(1,030)
NM
(90)
-2.8
50
8
YoY(%)
-0.1
-16.7
3.8
6.0
2.7
23.1
-1.8
-32.2
37.5
-57.4
43.7
20.7
522bps
147.1
914bps
-30.4
NM
-80.4
1123bps
-79.2
-1911bps
QoQ (%)
-4.1
-11.2
-2.6
0.7
-10.7
-11.1
-3.3
1.7
-9.6
-60.0
-7.4
-3.4
-186bps
-16.0
-98bps
28.8
NM
-325.0
-400bps
-225.0
1537bps
Q3FY21E
44,742
7,516
37,226
22,937
9,301
432
3,497
650
v/s est (%)
-5.6
-10.3
-4.7
-0.2
-13.3
-25.9
-7.9
-9.2
11556
-9.5
507
-60.6
11,054
-7.2
9,885
-0.8
43
-22bps
1,564
-19.4
17
-118bps
-709
45.4
NM
NM
129
NM
4
NM
-41
NM
-6.3
NM
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
178.3
173.2
-2.9
45.2
43.5
-3.7
25.4
25.1
-22bps
14.0
13.0
-7.1
FY22E
191.5
178.9
-6.6
50.0
47.3
-5.4
26.1
26.4
33bps
18.8
16.7
-11.0
49.0
66.0
45.5
58.7
-7.1
-11.0
Source: MOFSL, Company
20 January 2021
6
 Motilal Oswal Financial Services
Tata Communications
Story in charts
Exhibit 6: Core EBITDA margin at 24.8%
Core revenue (INR b)
Core EBITDA margin (%)
Exhibit 7: Data biz revenue contribution continues to rise
Data EBITDA as % of core EBITDA
Data revenue as % of core revenue
84 83 86
94 95 94 96 98
88 87 88 85 91 86 89 90
84 82
77
81 82 82 83 84
75 78 79 79 80
70 72 74
65 64 66
60 60 62
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 8: Voice revenue / EBITDA margin declines (INR b)
Voice Revenue (INR b)
EBITDA margin (%)
Exhibit 9: Data revenue declines with margin contraction
(INR b)
Data Revenue (INR b)
EBITDA margin (%)
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 10: Growth segment’s revenue contribution declines in 3QFY21 (%)
Traditional Services
100%
75%
50%
25%
0%
Growth Services
Transformation Service
Tata Payment Solutions
Source: MOFSL, Company
20 January 2021
7
 Motilal Oswal Financial Services
Tata Communications
Exhibit 11: Traditional business – revenue/EBITDA margin
trend
Revenue (INR b)
EBITDA margin (%)
40
30 31
27
24
32 31 31
29
29 28
31
38 38 38 37
42
45 43
(14)
(17)
(22)
(29)
(10)
(10) (10)
(13)
(14)
Exhibit 12: Growth business – EBITDA margin declines
Revenue (INR b)
(0)
EBITDA margin (%)
5 3 4 6
12 12
17 16
(4)
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 13: Transformation business turns to loss again
Revenue (INR b)
EBITDA margin (%)
16 14
12 8 14 16 14 13 14
10 10 8 6
6
(14)
Exhibit 14: Payment Solutions business turns profitable
Revenue (INR b)
EBITDA margin (%)
18
(7) (7)
(18)
(2) (2) 1 (1) 0
7 7
(8) (7)
23
28 27
8
(4) (1)
1 (3)
8 6
2.4 2.5 2.6 2.8 2.7 2.7 2.9 3.0 2.4 2.9 3.4 3.2 3.0 3.2 3.3 3.6 3.3 3.3 3.2
1.5 1.5 1.2 1.0 1.0 0.9 0.9 1.0 1.0 0.9 0.9 0.8 0.9 0.9 0.9 0.8 0.5 0.6 0.6
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 15: Quarterly capex trend
Capex (INR b)
11
8
9
8
12
11
Capex-to-core rev (%)
12
11
7
12
8
8
7
8
9
10
8
10
10
4.1
4.4
3.5
4.2
3.3
4.8
3.7
3.4
4.8
4.6
5.0
4.2
3.1
4.5
4.9
3.4
3.7
3.2
3.4
Source: MOFSL, Company
20 January 2021
8
 Motilal Oswal Financial Services
Tata Communications
Exhibit 16: Core segmental mix (INR m)
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
FY15
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%
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
28,862
-14.5%
16.7%
1,44,303
5.4%
83.3%
1,73,166
1.5%
FY22E
24,307
-15.8%
13.6%
1,54,584
7.1%
86.4%
1,78,891
3.3%
FY23E
21,586
-11.2%
11.2%
1,70,585
10.4%
88.8%
1,92,171
7.4%
1,803
1,551
1,291
6.2%
6.4%
6.0%
-31.5%
-14.0%
-16.8%
4.1%
3.3%
2.5%
41,724
45,701
51,339
28.9%
29.6%
30.1%
37.9%
9.5%
12.3%
95.9%
96.7%
97.5%
43,528
47,251
52,630
25.1%
26.4%
27.4%
32.3%
8.6%
11.4%
Source: Company, MOFSL
20 January 2021
9
 Motilal Oswal Financial Services
Tata Communications
Financials and Valuations - Consolidated
Income Statement
Y/E March
Total Inc. 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 (%)
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
FY20E
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
FY21E
1,73,166
1.5
64,711
30,680
34,249
1,29,640
74.9
43,526
25.1
23,021
20,504
4,279
1,347
17,573
-759
16,814
3,869
23.0
-11
12,955
13,713
355.4
7.9
FY22E
1,78,891
3.3
63,614
31,269
36,745
1,31,629
73.6
47,262
26.4
22,709
24,553
3,884
1,631
22,300
0
22,300
5,575
25.0
-11
16,735
16,735
22.0
9.4
(INR Million)
FY23E
1,92,171
7.4
67,420
31,956
40,154
1,39,530
72.6
52,641
27.4
23,821
28,820
3,594
1,282
26,508
0
26,508
6,905
26.0
-11
19,613
19,613
17.2
10.2
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
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
FY21E
2,850
-2,678
172
48
1,02,550
39,938
-2,495
1,40,212
1,44,350
51,605
92,745
15,956
918
4,466
15,631
1,04,432
759
32,261
41,289
30,123
93,936
35,582
52,661
5,693
10,495
1,40,212
FY22E
2,850
14,057
16,907
48
95,170
39,938
-2,495
1,49,568
1,60,191
74,314
85,877
15,956
918
4,466
15,631
1,17,389
784
33,328
52,794
30,484
90,671
33,818
52,442
4,411
26,718
1,49,568
(INR Million)
FY23E
2,850
33,670
36,520
48
87,790
39,938
-2,495
1,61,801
1,76,032
98,135
77,898
15,956
918
4,466
15,631
1,44,333
842
35,802
76,369
31,321
97,402
36,328
56,335
4,738
46,931
1,61,801
20 January 2021
10
 Motilal Oswal Financial Services
Tata Communications
Financials and Valuations - Consolidated
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
FY15
10.6
86.4
11.3
5.5
13,711.6
99.0
12.2
93.2
2.1
13.9
0.5
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
307.9
15.3
NM
2.4
17.7
0.4
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
99.3
13.8
18.8
2.2
16.1
0.6
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
904.9
15.4
60.0
2.3
15.8
0.4
-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
14.9
NM
2.4
14.5
0.4
-27.1
NM
1.5
1.9
1.4
1.6
2
66
81
0.7
1.7
NM
FY20E
10.6
93.3
-44.9
4.0
NM
99.5
11.3
NM
2.2
11.3
0.4
36.5
NM
NM
NM
1.3
1.6
2
69
82
0.7
2.0
NM
FY21E
48.1
128.9
0.6
4.0
10.2
21.8
8.2
1,743.5
2.1
8.3
0.4
49.6
NM
19.6
20.2
1.2
1.2
2
68
75
1.1
4.8
265.5
FY22E
58.7
138.4
59.3
4.0
7.9
17.9
7.6
17.7
1.9
7.2
0.4
74.1
196.0
18.3
23.7
1.1
1.2
2
68
69
1.3
6.3
1.6
FY23E
68.8
152.4
128.1
4.0
6.8
15.3
6.9
8.2
1.6
5.9
0.4
116.7
73.4
18.8
30.0
1.1
1.2
2
68
69
1.5
8.0
-0.1
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
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
FY20E
-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
23
-9,379
571
8,521
9,091
FY21E
16,814
23,021
4,279
-3,869
-9,530
30,715
-1,347
29,368
-15,224
14,144
0
1,347
-13,877
0
20,975
-4,279
0
11
16,707
32,198
9,091
41,289
FY22E
22,300
22,709
3,884
-5,575
-4,718
38,600
-1,631
36,969
-15,841
21,128
0
1,631
-14,210
0
-7,380
-3,884
0
11
-11,254
11,505
41,289
52,794
(INR Million)
FY23E
26,508
23,821
3,594
-6,905
3,362
50,380
-1,282
49,098
-15,841
33,257
0
1,282
-14,559
0
-7,380
-3,594
0
11
-10,964
23,575
52,794
76,369
20 January 2021
11
 Motilal Oswal Financial Services
Tata Communications
NOTES
20 January 2021
12
 Motilal Oswal Financial Services
Tata Communications
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
< - 10 % to 15%
Rating may undergo a change
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
********************************************************************************************************************************
The associates of MOFSL may have:
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financial interest in the subject company
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actual/beneficial ownership of 1% or more securities in the subject company
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received compensation/other benefits from the subject company in the past 12 months
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 Motilal Oswal Financial Services
Tata Communications
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.
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acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
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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)
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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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