March 2012
the oil & gas monthly
SUMMARY - February 2012
Special Section:
3QFY12 result review, BPCL update
Supply issues outweigh growth concerns; Light-Heavy spreads lower:
Brent averaged at USD119/bbl in Feb-12 and USD113.6/bbl in FY12 till
date. The continuous price surge in Brent crude was led by
geopolitical tensions in Iran which outweighed concerns of global
economic slowdown. Arab L-H differential declined to 22 month low
of USD2.5/bbl as Libyan sweet crude production ramps up.
GRMs declined 13% MoM to USD7.9/bbl in Feb-12:
Benchmark
Reuters Singapore GRM averaged USD7.9/bbl in Feb-12 led by lower
middle distillates and fuel oil spreads. LPG spread improved to USD-
26.1/bbl in Feb-12 from recent low of USD-41/bbl in Nov-11 as ~10%
of Asian crackers have shifted their feedstock from Naphtha to LPG.
Petchem margins down:
Domestic PE and PP margins were both
down MoM by 5.2%, while PVC margin was down to decade low at
INR3.7/kg. China's 2012E GDP growth rate cut to 7.5% from earlier 8%
will impact Petchem demand which is already under pressure due to
slowdown in Europe. Recent, cotton export ban by India (accounts
for 12% of export and 20% of consumption) reduced domestic prices,
however international prices increased, which will benefit overall
polyester chain.
Valuation and view:
High crude oil prices does not augur well for
OMCs, but E&P potential of BPCL makes it attractive. Government of
India has fixed upstream share of under-recoveries at 37.9% for
9MFY12 but we model 40% for full year and nil for OMC's. Maintain
Neutral
on RIL due to subdued outlook on its core business. Resilient
crude oil price regime augurs well for Cairn India but key things to
watch out in near future would be reserve upgrade, dividend policy.
G
ASO
L
INE
T
ANK
Special Report .................................... 2
Oil Market Trends .............................. 5
GRM and Product Spreads ................ 7
Petchem Margin Trend ...................... 9
Key India Statistics .......................... 12
News Updates .................................. 14
Stock Price Performances ................ 16
Global Peer Valuations .................. 17
Data sources:
Bloomberg, Reuters, Ministry of
Petroleum, PPAC, various companies
K
EY
T
RENDS
FO slumps, while LPG surges (USD/bbl)
Fuel Oi l
15
0
-15
-30
-45
Feb-10 Aug-10 Feb-11 Aug-11 Feb-12
LPG
Reuters Singapore GRM (USD/BBL)
12
8
4
0
Valuations: Coverage Universe
M Cap
P/E (x)
USD b FY11 FY12E FY13E
EV/EBITDA (x)
FY11 FY12E FY13E
7.3
3.3
4.2
6.7
8.2
7.9
6.2
5.9
6.3
5.8
7.6
7.6
P/B (x)
FY11 FY12E FY13E
1.5
2.1
1.7
1.2
1.6
0.8
1.8
0.7
2.4
2.2
4.5
5.1
1.3
1.8
1.5
1.1
1.4
0.8
1.7
0.7
1.9
1.8
3.5
4.2
1.2
1.6
1.3
1.0
1.3
0.7
1.5
0.6
1.7
1.5
2.9
3.6
Feb-09
Feb-10
Feb-11
Feb-12
Integrated/Upstream
Reliance Inds*
49.5 11.1 11.0 10.9
7.3
7.1
ONGC
47.4 11.4
9.2 9.3
4.3
3.6
Cairn India
13.5 10.7
7.4 6.6
7.8
5.9
OMCs
IOC
13.2
8.5
9.3 8.4
10.3
7.1
BPCL
4.7 14.6 15.5 13.6
11.6
9.0
HPCL
2.0
6.6 10.4 8.5
11.6 11.4
Independent Refiners
MRPL
2.3 10.0 19.9 10.3
6.1 13.0
CPCL
0.5
5.0
16 5.4
6.1 28.0
Gas Companies
GAIL**
8.8 12.7 10.3 9.4
7.4
6.4
GSPL
0.9
8.6
8.5 9.2
6.1
5.4
Petronet LNG
2.4 17.4 11.0 11.4
11.7
8.4
IGL
1.0 19.3 17.1 14.3
11.2
8.9
*No. of shares adj. for treasury shares; **P/E adj. for investments
1-M Relative Stock Performance
GSPL
PLNG
IGL
Ca i rn
IOC
BPCL
HPCL
GAIL
OIL
ONGC
RIL
(13)
(0)
0
4
2
16
6
(3)
5
5
(4)
(10)
0
10
20
(20)
Harshad Borawake
(HarshadBorawake@MotilalOswal.com); +91 22 3982 5432
Deepak Dult
(Deepak.Dult@MotilalOswal.com); +91 22 3982 5445

S
PECIAL
R
EPORT
3QFY12 result review: RIL GRM discount to Singapore
OMC's report profit ; Gas headwinds continue
Summary
OMC's report profit as GoI compensates for 2Q's: GoI (Govt. of India) provides
compensation for two quarters (2QFY12 and 3QFY12) v/s our assumption for only
1 quarter. In the first three quarters, GoI has now given INR450b to all the three
OMC's (quarterly runrate of INR150b). We model upstream share at 40%/38.7% in
FY12/13 (v/s 37.9% in 9MFY12) and downstream share at nil/9% while GoI bearing
the rest.
Upstream - KG-D6 decline continues, Cairn's Rajasthan ramp-up approved: KG-D6
volume averaged 41mmscmd in 3QFY12 (v/s 45.3 in 2QFY12), concerns remain on
timelines of further ramp up. Cairn received approval to ramp-up Rajasthan
production and expects to reach 175kbpd by Mar-12 (3QFY12 production flat QoQ
at 125kbpd).
Midstream: Increasing gas deficit due to domestic production decline benefits
LNG importer, Petronet LNG. Headwinds for incremental volume remains for gas
transmission companies; GAIL and GSPL.
Refining - Dismal GRM's & forex loss impact profitability: All the refiners GRM's
were at discount to benchmark Reuters Singapore GRM led by difference in product
slates. Further, INR depreciation of 8% from start-to-end in 3Q resulted in forex
losses. While RIL reported first ever discount of USD1.1/bbl to benchmark Reuters
Singapore GRM.
Domestic petchem demand subdued: Post 20% QoQ jump in petchem demand in
2QFY12, the 3QFY12 demand was subdued. Also, increasing Middle East supplies
will limit the margins while high polyester prices led by higher cotton prices will
limit the polyester demand.
Singapore GRM down QoQ to USD7.9/bbl; refiners discount continue
Singa pore GRM
12
RIL
HPCL
BPCL
IOC
RIL premi um
8
4
0
-4
3QFY10
1QFY11
3QFY11
1QFY12
3QFY12
Company/MOSL
March 2012
2

RIL: KG-D6 volume decline benefits Petronet LNG (mmscmd)
ONGC: Ad-hoc D,D&A led by higher well write-offs (INR b)
RIL: Reports first ever discount to Singapore GRM (USD/bbl)
OMC's report profit aided by Government compensation
for two quarters (INRb)
OMC's debt levels increasing at rapid pace (INRb)
We model OMCs' sharing at nil in FY12 and 7% in FY13
FY08 FY09 FY10 FY11 FY12E FY13E
Fx Rate (INR/USD)
40.3 46.0 47.5 45.6 47.6 50.0
Brent (USD/bbl)
82.3 84.8 69.6 86.3 114.0 110.0
Gross Under recoveries (INR b)
Auto Fuels
426
575
144
375
781
744
Domestic Fuels
347
458
316
405
579
623
Total
773 1,033
461
780 1,360 1,367
Sharing (INR b)
Oil Bonds/Cash
353
713
260
410
816
742
Upstream
257
329
145
303
544
530
OMC's sharing
163
-9
56
67
0
96
Total
773 1,033
461
780 1,360 1,367
Sharing (%)
Government
46
69
56
53
60
54
Upstream
33
32
31
39
40
39
OMC's sharing
21
-1
12
9
0
7
Total
100
100
100
100
100
100
*We model INR2/ltr of diesel price hike for FY13E
Source: Bloomberg/Industry/Company/MOSL
March 2012
3

S
PECIAL
R
EPORT
BPCL: Shell's bid for Cove Energy values BPCL's stake in
Mozambique block at INR220/share
Increasing BPCL's TP to INR735/share; Maintain Buy
BPCL's JV partner in the Mozambique block, Cove Energy plc (COV LN), has received a firm
intention from Royal Dutch Shell plc (RDSA LN) to buy its 100% outstanding shares for
GBP992m (USD1.6b). Cove Energy has an 8.5% stake in the Mozambique block and based on
Shell's bid, the implied value of BPCL's 10% stake is ~INR220/share, more than double of our
current value.
How would Shell's entry impact BPCL? Apart from being a valuation benchmark, we believe
Shell's entry would reduce the execution risk in this large project due to its technical expertise
in E&P and presence in the LNG value chain. Shell is a global E&P giant with a market cap of
USD230b. The market cap of Anadarko (APC LN), the current operator, is USD43b. The
construction of a floating LNG facility would be critical for commercializing gas from the
Mozambique block and Shell's experience at the Prelude floating LNG facility (first in the
world) in Australia (FID in May 2011, likely completion in 2016) would be useful in Mozambique.
Expect first gas from Mozambique in 2018; reserves pegged at 30+tcf
Anadarko (operator) has estimated the recoverable reserves of the Mozambique
block's at 15-30tcf and in-place resources at 30-50+ tcf of natural gas. To put it in
perspective, this compares with the 12tcf reserves announced by Reliance
Industries (RIL) for its KG-D6 block.
Anadarko has decided to build a two-train LNG facility to monetize this large
resource base, which is expandable to six trains. The distance of the basin from
the shore is only 50km and Mozambique's geographic location is also ideal as it is
near to high gas demand areas of Asia. The pre-FEED activity for LNG development
is nearing completion and FEED activity is expected to start soon.
The final investment decision (FID) is expected to come by July-Aug 2013 and
production is expected in 2018-19.
BPCL's upstream capex at USD350m each in FY13/ FY14: BPCL has spent ~INR30b on
its overall E&P portfolio, out of which ~INR25b was spent on Brazil and
Mozambique. Over the next two years, BPCL plans to spend USD350m in both FY13
and FY14. For FY13, it expects to spend ~USD140-150m on Brazil blocks, USD100m
on Mozambique blocks and USD30-40m on domestic blocks. It plans to drill 7-8
wells in its Brazilian blocks and 12 wells in Mozambique.
Please refer to our OMC report
dated 23 February 2012
Increasing E&P value and target price; Maintain Buy
Shell's entry into Mozambique block reduces the execution risk and hence
increases confidence of timely completion as well as recovery. We are shifting
our base case valuation based on average recovery of 22.5tcf to high case of 30tcf
and believe that there could be further upside to this number.
We are revising our E&P value for BPCL from INR90/share to INR134/share resulting
in a revised target price of INR735/share (v/s earlier target price of INR690/share)
based on average of P/B of 1x, EV/EBITDA of 5x and P/E of 9x FY13E. Investment
value of INR307/share comprise of INR151/share from E&P, INR70/share from listed
investments (post 25% discount), INR43/share from Bina refinery (post 15%
discount) and INR44/share for treasury shares.
The key things to watch (apart from subsidy sharing) are the start of commercial
production at the Bina refinery at full utilization levels and GRM performance.
BPCL is our top pick among OMCs. Maintain
Buy.
4
March 2012

O
IL
M
ARKET
T
RENDS
Brent oil price trend (USD/BBL)
Crude soars led by threat of supply disruption from Iran
Contraction in Light-Heavy differentials continued
Brent forward curve (USD/BBL)
With continuing worries on the global economic conditions,
OPEC and IEA are reducing their near-term demand
projections, reflected in forward curve.
Brent Spot
M ar-1
0
M ar-04
M ar-1
1
Mar-06
Feb-1
2
Feb-12 average a t USD119/bbl (+7% MoM and +15% YoY).
4QFY12 average at USD115/bbl (+5% QoQ and +10% YoY).
160
120
80
160
120
80
40
40
0
F eb-04
F eb-06
F eb-08
F eb-10
F eb-12
0
De c-01
Dec-05
Dec-09
Dec-13
Dec-17
Crude price differentials (USD/BBL)
Arab L-H differential declined 9% MoM to USD2.5/bbl; while
WTI-Maya remained negative for the ninth month and
declined 13% MoM.
4QFY12 Arab L-H at USD2.6/bbl (-19% QoQ and -37% YoY).
Ar ab L-H
W TI - M aya (RHS)
Brent and dollar index correlation
Crude prices remained strong in Feb-12 in-line with
reverse dollar index.
12.0
9.0
6.0
3.0
0.0
Feb-04
24
160
Brent
Rever se Dol lar Index (RHS)
0
30
60
90
120
Feb-12
12
0
- 12
- 24
Feb-12
120
80
40
0
Feb-04
Feb-06
Feb-08
Feb-10
Feb-06
Feb-08
Feb-10
YoY oil production and demand change (%)
Global product demand:
Jan-11 average at 88.3mmbbl/d v/s
3-yr average of 88.7mmbbl/d.
Oil demand growth has dropped in recent months, partly
led by base effect.
Oil Pro duct Demand (mmbbl/ d)
YoY Change (%) - R HS
OPEC crude supply (USD/BBL)
Led by slight decrease in production, OPEC spare capacity
increased to ~3.3mmbbl/d,
OPEC supply at 30.4mmbbl/d in Jan-12 was down 1%MoM
but up 5.6% from its recent low of 28.8mmbbl/d in Apr-11.
Spare Capacity (RHS)
OPEC SUPPLY
33
12%
8%
4%
0%
-4%
8
7
5
4
2
Ja n-06
Jan-08
Jan-10
Jan-12
94
89
84
79
74
Jan-04
Jan-06
Jan-08
Ja n-10
31
29
27
25
Jan-04
Jan-12
March 2012
5

US weekly petroleum data
US crude inventory increased to 344.9mmbbl, up
2.3% over last 5 year average.
US refinery utilization was up 3.3% YoY at 83.6% but
down 2.2% over the last 5-year average.
Gasoline inventory was down 2% YoY to 230mmbbl
and distillate inventory was down 11% YoY to
141mmbbl.
Implied Gasoline and Distillate demand stood at
8.4mmbbl and 3.7mbbl, down 8% and 6% over the
last 5-yr average.
US crude oil inventory (mmbbl)
Range (2007-11)
Average (2007-11)
2012
390
355
320
285
250
1
18
Week
35
52
US distillate inventory (mmbbl)
Range (2007-11)
Average (2007-11)
2012
US gasoline inventory (mmbbl)
Range (2007-11)
Average (2007-11)
2012
186
162
138
114
90
1
18
Week
35
52
250
230
210
190
170
1
18
Week
35
52
US total product supplied (mmbbl/d)
Range (2007-11)
Average (2007-11)
2012
US refinery utilization (%)
Range (2007-11)
Average (2007-11)
2012
23
22
94
84
20
19
17
1
18
Week
35
52
74
64
1
18
Week
35
52
US Weekly Data Summary (mmbbl)
Week ended
17‐Feb‐12 24‐Feb‐12
Inventory Data
Crude Oi l
Ga s ol i ne
Di s ti l l a tes
Products Supplied
Tota l Products
Ga s ol i ne
Di s ti l l a tes
Refinery
Util i za ti on (%)
Imports
Crude Imports
Ga s ol i ne
340.7
231.5
143.5
18.2
8.6
3.3
85.5
9.1
0.8
344.9
229.9
141.4
18.3
8.4
3.7
83.6
9.2
0.6
Weekly variation
WoW WoW (%)
4.2
-1.6
-2.1
0.0
-0.3
0.3
-1.9
0.1
-0.2
1.2
-0.7
-1.4
0.1
-3.1
10.5
-2.2
1.1
-29.1
Yearly variation
25‐Feb‐11
YoY (%)
346.4
234.7
159.2
19.1
9.2
3.7
80.9
8.0
0.8
-0.4
-2.0
-11.1
-4.3
-8.7
-0.6
3.3
14.7
-25.9
Variation (%) from
1‐Yr Avg
3‐Yr Avg
5‐Yr Avg
-0.9
6.8
-3.8
-3.1
-5.5
-3.5
-2.2
3.4
-23.2
-1.3
5.9
-8.8
-3.8
-7.0
-1.2
-1.3
2.1
-30.8
2.3
8.2
-1.3
-6.6
-8.0
-6.0
-2.2
-1.8
-37.1
March 2012
6

GRM
S &
P
RODUCT
S
PREADS
GRM declined 13% MoM led by subdued Middle distillate
and Fuel oil spreads
Spreads to remain volatile due to economic uncertainty
Reuters Singapore GRM declined 13.3% MoM to USD7.9/bbl in Feb-12.
Subdued Middle distillate and sharp decline in Fuel oil spreads led to MoM decline
in GRM's of Feb-12. Diesel and Jet Kero spreads were down 9% and 6% MoM.
4QFY12 Reuters Singapore GRM averaged USD8.5/bbl v/s USD8/bbl in 3QFY12 and
USD7.4/bbl in 4QFY11.
Fuel oil declined 51% MoM to USD3.8/bbl owing to lower demand from China's
teapot refiners. However, Gasoline gained 19% MoM to USD12.6/bbl in Feb-12 v/s
USD10.6/bbl in Jan-12.
We model RIL's GRM at USD8.6/bbl in FY12 and USD8.5/bbl in FY13.
Reuters Singapore GRM (USD/bbl)
12
9
6
3
0
Feb-04
Feb-05
Feb-06
Feb-07
Feb-08
Feb-09
Feb-10
Feb-11
Feb-12
Reuters Singapore GRM performance (USD/bbl)
Feb-11
(USD/bbl)
Jan-12
Feb-12
MoM
(%)
YoY
(%)
4QFY11 3QFY12 4QFY12
QoQ
(%)
YoY FY11 FY12
(%)
YoY
(%) 1 Yr Avg
3 Yr Avg
5 Yr Avg
Singapore GRM
6.9
9.1
7.9
-13.3
13.9
7.4
8.0
8.5
6.6 -13.0
5.2
9.0 73.8
0.0
0.0
0.0
Oil, Product Prices and Cracks (USD/bbl)
(USD/bbl)
Feb-11
Jan-12
Feb-12
M-o-M
(%)
1.5
7.3
5.6
0.0
10.3
6.7
3.5
4.0
7.7
1.9
8.0
19.0
-8.8
-5.6
37.3
-50.6
Y-o-Y
(%)
14.0
15.2
16.2
10.6
29.8
17.7
13.9
10.7
15.6
22.7
14.5
33.1
0.4
-17.0
-42.2
nm
4QFY11
3QFY12 4QFY12
Q-o-Q
(%)
7.8
5.3
6.1
2.4
26.7
8.5
5.0
3.8
11.9
7.4
Y-o-Y
(%)
7.8
10.1
12.5
9.7
18.6
12.3
10.5
7.8
8.5
23.7
FY11
FY12
Y-o-Y
(%)
16.5
31.3
29.8
30.1
17.5
30.7
30.5
29.5
24.0
38.1
-68.1
40.5
34.9
28.1
nm
nm
Oil Prices
WTI
89.3
Brent
103.3
Duba i
99.5
Indi a n Ba s ke 100.6
Product Prices
LPG
69.0
Ga s ol i ne
108.9
Di es el
116.6
Jet/Kero
119.3
Na phtha
97.2
Fuel Oi l
97.3
Product Cracks (v/s Dubai)
LPG
-30.5
Ga s ol i ne
9.4
Di es el
17.1
Jet/Kero
19.8
Na phtha
-2.3
Fuel Oi l
-2.2
100.3
111.0
109.5
111.3
81.2
120.1
128.3
126.9
104.3
117.2
-28.3
10.6
18.8
17.4
-5.2
7.6
101.8
119.1
115.6
111.3
89.5
128.2
132.8
132.0
112.3
119.4
-26.1
12.6
17.1
16.4
-3.3
3.8
93.7
104.5
100.0
101.5
72.0
110.5
118.1
120.1
99.8
95.6
-28.0
10.5
18.1
20.1
-0.2
-4.4
93.7
109.2
106.1
108.7
67.4
114.4
124.3
124.7
96.8
110.1
-38.7
8.3
18.2
18.6
-9.3
4.0
101.0
115.0
112.6
111.3
85.4
124.1
130.5
129.5
108.3
118.3
-27.2
11.6
18.0
16.9
-4.3
5.7
83.2
86.6
84.1
85.0
63.7
92.4
97.7
98.7
84.3
80.3
-20.4
8.3
13.6
14.6
0.2
-3.7
96.9
113.6
109.1
110.5
74.8
120.8
127.5
127.8
104.5
110.9
-34.3
11.7
18.4
18.7
-4.6
1.8
29.7
2.9
39.4
10.4
-1.4
-0.8
-9.1
-15.8
54.3 -1,842.2
43.0
nm
March 2012
7

Petroleum product-wise spreads
Gasoline spreads (USD/bbl)
Diesel spreads (USD/bbl)
Feb-12 average at USD12.6/bbl v/s USD10.6/bbl in Jan-12
and USD9.4/bbl in Feb-11;
4QFY12 at USD11.6/bbl v/s USD8.3/bbl in 3QFY12 and
USD10.5/bbl in 4QFY11.
Feb-12 average at USD17.1/bbl v/s USD18.8/bbl in Jan-12
and USD17.1/bbl in Feb-11;
4QFY12 at USD18/bbl v/s USD18.2/bbl in 3QFY12 and
USD18.1/bbl in 4QFY11.
28
20
12
4
-4
Fe b-04
Feb-06
Fe b-08
Fe b-10
Feb-12
40
30
20
10
0
Feb-04
Feb-06
Feb-08
Feb-10
Feb-12
LPG spreads (USD/bbl)
Naphtha spreads (USD/bbl)
Feb-12 average at USD-26.1/bbl v/s USD-28.3bbl in Jan-12
and USD-30.5/bbl in Feb-11;
4QFY12 at USD-27.2bbl v/s USD-38.7/bbl in 3QFY12 and
USD-28.0/bbl in 4QFY11.
8
Feb-12 average at USD-3.3/bbl v/s USD-5.2/bbl in Jan-12
and USD-2.3/bbl in Feb-11;
4QFY12 at USD-4.3/bbl v/s USD-9.3/bbl in 3QFY12 and USD-
0.2/bbl in 4QFY11.
15
5
-5
-15
-25
Feb-04
Feb-06
Feb-08
Feb-10
Feb-12
-8
-24
-40
-56
Feb-04
Feb-06
Feb-08
Feb-10
Feb-12
Jet/Kero spreads (USD/bbl)
Fuel oil spreads (USD/bbl)
Feb-12 average at USD16.4/bbl v/s USD17.4bbl in Jan-12
and USD19.8/bbl in Feb-11;
4QFY12 at USD16.9/bbl v/s USD18.6/bbl in 3QFY12 and
USD20.1/bbl in 4QFY11.
Feb-12 average at USD3.8/bbl v/s USD7.6/bbl in Jan-12
and USD-2.2/bbl in Feb-11;
4QFY12 at USD5.7bbl v/s USD4/bbl in 3QFY12 and USD-4.4/
bbl in 4QFY11.
40
30
20
10
0
Fe b-04
Fe b-06
Fe b-08
Fe b-10
Feb-12
10
5
0
-5
-10
-15
-20
Feb-04
Feb-06
Fe b-08
Fe b-10
Fe b-12
March 2012
8

Petchem margin trend
Both Polymer and polyester margins down MoM
Polymers
International PE, PP and PVC prices were up by 5.2%/7.5% and 4% MoM,
respectively, while naphtha was up 7.8%.
With rupee depreciation of 4% MoM and removal of anti-dumping duty on Saudi
Arabia PP, domestic PP prices were flat MoM. While domestic PE prices were
unchanged and PVC prices were down 3.5% MoM.
Domestic PE and PP margins were both down MoM by 5.2%, while PVC margin was
down to decade low at INR3.7/kg (-50% MoM; -68% YoY).
Polyesters
Polyester prices in rupee terms were up 0.5-1% MoM led by higher cotton prices
in domestic market. However, integrated polyester margins were down 1-2%.
Polymer Prices and Spreads
Feb‐11
Jan‐12
Feb‐12
49.2
993
51
1,350
1,396
1,003
357
403
9
82.4
82.4
55.0
31.0
31.1
3.7
18.0
14.2
6.1
MoM
(%)
(4.0)
7.8
3.4
5.2
7.5
4.0
YoY
(%)
8.3
15.4
25.0
(9.6)
(10.6)
(5.4)
4QFY11 3QFY12 4QFY12
45.3
880
42
1,491
1,581
1,068
611
701
188
74.3
81.9
53.5
32.4
40.0
11.6
4.7
8.8
5.3
50.9
852
46
1,308
1,375
909
456
523
58
80.3
84.0
53.5
34.7
38.5
7.9
14.9
14.4
10.1
50.2
957
50
1,316
1,348
983
359
390
26
82.4
82.4
56.0
31.9
31.9
5.5
18.6
16.0
8.0
QoQ
(%)
(1.4)
12.4
10.8
YoY
(%)
10.9
8.7
20.5
FY11
45.6
743
36
1,354
1,375
1,006
612
632
264
73.0
75.8
53.0
37.5
40.3
17.5
13.1
15.7
10.3
FY12
47.7
917
46
1,379
1,484
1,051
462
567
134
78.6
84.2
57.0
32.7
38.3
11.1
14.0
13.8
8.8
YoY
(%)
4.7
23.4
29.2
1.8
7.9
4.4
(24.5)
(10.3)
(49.1)
7.7
11.1
7.4
(12.7)
(4.9)
(36.8)
6.9
(12.4)
(13.9)
51.3
Exch. Rate (INR/USD 45.4
Naphtha (USD/MT)
860
921
Naphtha (INR/kg)
41
50
International Prices (US$/MT)
PE
1,493
1,283
PP
1,561
1,299
PVC
1,060
964
Simple Spreads over Naphtha (USD/mt)
PE
633
362
PP
701
377
PVC
200
42
Domestic Prices (INR/kg)
PE
73.8
82.4
PP
81.2
82.4
PVC
52.5
57.0
Simple Spreads over Naphtha (INR/kg)
PE
32.7
32.7
PP
40.1
32.8
PVC
11.4
7.4
Prem/(Disc) to International Prices (%)
PE
3.5
19.1
PP
8.9
17.8
PVC
3.7
9.8
0.6
(11.7)
(2.0) (14.8)
8.1
(7.9)
(21.3) (41.2)
(25.4) (44.3)
(55.0) (86.2)
2.5
(1.9)
4.7
10.9
0.7
4.7
(1.5) (43.7)
6.8
(42.5)
(77.8) (95.3)
0.0
0.0
(3.5)
11.7
1.5
4.8
(5.2) (5.1)
(5.2) (22.6)
(50.3) (68.0)
(5.7)
422.1
(20.4)
58.9
(37.5)
65.0
(8.3) (1.6)
(17.0) (20.2)
(30.4) (52.6)
25.1 299.7
10.8 81.0
(20.9)
51.5
Key polymer price trends (INR/kg)
PE
PP
PVC
Premium/discount to international prices (INR/kg)
PE
PP
PVC
100
80
60
40
20
Feb-04
Feb-06
Feb-08
Feb-10
Feb-12
60
40
20
0
-20
Feb-04
Feb-06
Feb-08
Feb-10
Feb-12
March 2012
9

Polymer product-wise margins
PE spread over naphtha (INR/kg)
Min 2007- 11
Avg 2007- 11
FY11
FY12
PE spread overn naphtha (USD/mt)
Naphtha
Ethylene
Polyethylene
52
44
36
28
20
2,000
1,500
1,000
500
0
Feb-04
Feb-06
Feb-08
Feb-10
Feb-12
PP spread over naphtha (INR/kg)
Min 2007-11
Avg 2007-11
FY11
FY12
PP spread over naphtha (USD/mt)
Naphtha
Propylene
Polypropylene
52
44
36
28
20
2,400
1,800
1,200
600
0
Feb-04
Feb-06
Feb-08
Feb-10
Feb-12
PVC spread over naphtha (INR/kg)
Min 2006-10
Avg 2007-11
FY11
FY12
PVC spread over naphtha (USD/mt)
Naphtha Price
Ethylene
PVC
30
20
10
1,800
1,350
900
450
0
0
Feb-04
Feb-06
Feb-08
Feb-10
Feb-12
March 2012
10

Polyester price and margin trends
Polyester Prices and Spreads (INR/kg)
Feb-11
Polyester Intermediates Prices
PTA
66.6
MEG
58.8
Polyester Prices
POY
98.1
PSF
103.3
Integrated Polyester Spreads
POY
65.9
PSF
71.1
Jan-12
Feb-12
MoM
(%)
0.0
(2.7)
0.7
1.0
YoY
(%)
(5.0)
3.4
(6.6)
(6.3)
4QFY11 3QFY12 4QFY12
QoQ
(%)
0.3
(2.6)
0.2
(0.9)
YoY
(%)
(3.6)
6.3
(5.9)
(7.2)
FY11
FY12
YoY
(%)
21.5
30.8
14.6
20.5
6.6
15.8
63.3
62.5
91.0
95.8
51.7
56.4
63.3
60.8
91.7
96.8
50.9
56.0
65.7
58.0
97.1
103.8
64.2
70.9
63.1
63.3
91.2
97.1
55.2
61.1
63.3
61.7
91.4
96.3
51.3
56.2
51.9
46.2
80.1
81.3
52.1
53.3
63.1
60.4
91.8
97.9
55.5
61.7
(1.5) (22.7)
(0.7) (21.2)
(7.0) (20.1)
(8.0) (20.7)
PTA and MEG price trend (INR/kg)
80
65
50
35
20
Feb-04
POY and PSF price trend (INR/kg)
130
110
90
70
50
Feb-06
Feb-08
Feb-10
Feb-12
Feb-04
Feb-06
Feb-08
Feb-10
Feb-12
PTA spread over naphtha (INR/kg)
Min 2007- 11
Avg 2007-11
FY11
FY12
MEG spread over naphtha (INR/kg)
Min 2007- 11
Avg 2007-11
FY11
FY12
46
36
26
16
6
60
45
30
15
0
POY spread over naphtha (INR/kg)
Min 2007- 11
Avg 2007-11
FY11
FY12
PSF spread over naphtha (INR/kg)
Min 2007- 11
Avg 2007- 11
FY11
FY12
68
58
48
38
28
86
70
54
38
22
March 2012
11

K
EY
I
NDIA
S
TATISTICS
Refinery throughput trend
High Crude oil prices to keep under recoveries high
Monthly Comparison
MoM
Dec-11 Jan-12
YoY (%)
(%)
3,473
3,387
(2.5)
(2.7)
(1.5)
(2.6)
(5.9)
(4.3)
0.1
(1.0)
6.9
(14.7)
5.4
(6.0)
(2.2)
(3.3)
(1.7)
8.5
Quarterly Comparison
4QFY11 3QFY12 4QFY12 QoQ (%) YoY (%)
3,443
352
418
1,165
273
231
649
299
3,330
326
476
1,135
245
213
651
226
3,387
297
468
1,102
267
217
655
325
1.7
(8.8)
(1.6)
(2.9)
8.7
2.1
0.7
43.7
(1.6)
(15.7)
11.9
(5.4)
(2.5)
(6.1)
0.9
8.7
Annual Comparison
FY11
3,290
300
431
1,070
256
218
FY12
3,328
320
450
1,110
257
211
YoY (%)
1.2
6.7
4.5
3.8
0.4
(2.8)
Jan-11
KBPD
Total
3,482
PSUs
HPCL
348
301
297
BPCL
444
481
468
IOC
1,172
1,171
1,102
MRPL
273
279
267
CPCL
224
217
217
Private
RIL
667
662
655
325
ESSAR
299
304
*RIL SEZ refinery volumes not included
671
652
(2.7)
298
272
(8.9)
Source: MoPNG, MOSL
Domestic refining processing trend (kbpd)
Public
Private
3,731
2,829
2,062 2,131 2,212
1,714
1,304 1,371
2,540
2,374 2,486
3,016 3,141
3,930 4,057
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12E
*RIL SEZ refinery volumes included from FY10
We model upstream sharing at 40% in FY12 and 38.7% in FY13
Fx Rate (INR/USD)
Brent (USD/bbl)
Gross Under recoveries (INR b)
Auto Fuels
208
426
575
Domestic Fuels
286
347
458
Total
494
773
1,033
Sharing (INR b)
Oil Bonds/Cash
241
353
713
Upstream
205
257
329
OMC's sharing
48
163
-9
Total
494
773
1,033
Sharing (%)
Government
49
46
69
Upstream
42
33
32
OMC's sharing
10
21
-1
Total
100
100
100
*We model INR2/ltr of diesel price hike for FY13E
March 2012
FY07
45.2
64.4
FY08
40.3
82.3
FY09
46.0
84.8
FY10
47.5
69.6
144
316
461
260
145
56
461
56
31
12
100
FY11
45.6
86.3
375
405
780
410
303
67
780
53
39
9
100
FY12E
47.6
114.0
781
579
1,360
816
544
0
1,360
60
40
0
100
FY13E
50.0
110.0
744
623
1,367
742
530
96
1,367
54
39
7
100
12

Domestic fuel consumption statistics
Monthly Comparison
Jan-11 Dec-11 Jan-12 MoM
(%)
2,849
3,048
2,873
(5.7)
313
272
480
1,211
192
112
183
368
228
523
1,416
171
121
155
319
262
495
1,302
173
121
148
YoY
(%)
0.8
Quarterly Comparison
4QFY11 3QFY12 4QFY12 QoQ YoY (%)
(%)
2,978
3,010
2,873
(4.5)
(3.5)
336
244
498
1,284
194
117
197
347
270
500
1,380
172
122
162
319
262
495
1,302
173
121
148
(8.1)
(3.0)
(0.9)
(5.7)
0.3
(0.5)
(8.6)
(4.9)
7.0
(0.6)
1.4
(10.8)
3.7
(24.8)
Annual Comparison
FY11
FY12
YoY
(%)
2,848
2,910
2.2
331
257
456
1,233
191
109
200
339
270
483
1,305
175
118
164
2.5
5.0
5.9
5.8
(8.2)
8.6
(18.1)
kbpd
Tota l
Key Products
Petrol
Naphtha
LPG
Di es el
Keros ene
ATF
Fuel Oi l
(13.3)
1.9
14.9
(3.8)
(5.3)
3.2
(8.1)
7.5
0.9
(10.0)
(0.3)
7.7
(4.4) (19.3)
Overall petroleum consumption (in kbpd terms)
grew 0.8% YoY in Jan-11 and 2.2% in FY12 till date.
Petrol consumption showed de-growth of 13.3%
MoM and growth of just 2.5% in FY12 till date.
Diesel consumption showed growth of 7.5% YoY
but decline of 8.1% on MoM led by lower demand
from Power sector.
Naphtha witnessed de-growth of 3.8% YoY led by
lower off-take from petrochemical plants.
Kerosene consumption fell by 10% YoY due to
reduced quotas, while LPG consumption grew by
3.2% YoY.
ATF consumption growth was at 7.7% YoY led by
strong growth in passenger traffic.
As expected FO showed de-growth of 19.3% YoY
led by its substitution by Diesel due to price
advantage with latter.
Total consumption (KBPD)
Total
YoY (%)
3,250
3,000
2,750
4
2,500
2,250
30%
20%
10%
0%
-10%
Petrol consumption (KBPD)
Petrol
YoY (%)
Diesel consumption (KBPD)
Diesel
YoY (%)
400
350
300
250
200
30%
20%
10%
0%
-10%
1,500
1,300
1,100
900
700
30%
20%
10%
0%
-10%
March 2012
13

N
EWS
U
PDATES
Industry news
February 2012
Iraq oil output over 3m bpd for first time in decades
Iraq's oil production has risen above 3 million barrels per day for the first time in more
than three decades. Nine years after the invasion that toppled dictator Saddam
Hussain, Iraq has ambitious plans to expand oil production long held back by decades
of sanctions and war. Oil executives involved in Iraq's oil development projects
injected a note of caution. They see a gradual rise in Iraq's production, which ran just
below 2.7 million bpd in 2011, to an average 3 million bpd this year.
ConocoPhillips to sell USD10b in assets
ConocoPhillips will sell $10bn of its assets as part of a divestiture program, which is at
the very high end of its previously announced estimates, chief executive Jim Mulva
said today. Most of the sales planned for this year will be exploration and production
oriented, Mulva said today at the company's annual meeting with analysts. Those
sales will include "mature" assets and projects that are "not quite ready to go" and
have lower returns or lack upside potential, he said, without detailing which exact
assets were on the block. The company now expects production in 2012 to average
1.55mn b/d of oil equivalent (boe/d) after asset sales, down from its previous estimate
of 1.6mn boe/d before the divestitures.
The company will spend between $14bn-15bn this year in capital expenditures, and
ConocoPhillips will make $10bn in share repurchases in 2012. Although asset sales
since 2010 have decreased the company's overall production, Mulva said absolute
production growth can be expected for 2013 and beyond.
Cove seeks clarity on Mozambique tax
London-listed Cove Energy is seeking clarity on a possible tax charge which could be
levied by the Mozambique government if the potential sale of the company moves
ahead. Coves statement on Friday came following comments from Mozambique's
Minerals Minister Esperanca Bias saying the country planned to impose a capital gains
tax on the sale of the UK-based company.
"The company is seeking clarity on this issue and will make further announcements
when or if appropriate," Cove said in Friday's statement. Cove has been the subject of
a $1.56 billion takeover offer from Anglo-Dutch supermajor Shell which was later
trumped by a USD1.77 billion offer from Thailand's state run PTTEP.
Indian state-run companies ONGC and Gail India have also both confirmed their
interest in the UK company with reports earlier this week suggesting they could table
an offer of up to $2 billion for the company.
China's natural gas imports up 66.7% in Jan
China's natural gas imports rose 66.7 percent year-on-year to hit 3.6 billion cubic
meters in January, the country's top economic planner said. The rapid increase has
further pushed up the share of imported natural gas in the country's natural gas
consumption, the National Development and Reform Commission (NDRC) said in a
March 2012
14

statement on its website. The apparent consumption of natural gas surged 20.1 percent
from a year earlier to 13.7 billion cubic meters in January. The growth pace slows from
last year's peak period, but still stands at high levels, the NDRC said. The rise in
consumption was mainly caused by high power demands for winter heating and
chemical fertilizer production, said the NDRC. Meanwhile, the natural gas output
increased by 2.4 percent year-on-year to 9.8 billion cubic meters in January, the NDRC
said.
Libya resumes offshore exploration-NOC
Libya has resumed offshore exploration for the first time since the end of Muammar
Gaddafi's era, and the work is being carried out at a bloc operated by Italy's Eni , the
National Oil Corporation NOC) said on Monday. "The National Oil Corporation
announces the resumption of exploration activity in the maritime area next to Tripoli
at bloc MN41 belonging to Italian company Eni," said a statement on the NOC website.
Formosa to Build Olefins Cracker in Texas
Formosa Plastics Corporation, U.S.A. will be investing more than $1.7 billion in capital
equipment and construction at its Point Comfort, Texas site. This investment will
increase the security and flexibility of the company's raw and intermediate material
supplies, as well as the reliability and breadth of the company's products. The
investment consists of a new, grass-roots 800,000 MT/Y olefins cracker, an associated
600,000 MT/Y propane dehydrogenation (PDH) unit and a new 300,000 MT/Y low density
polyethylene (LDPE) resin plant. It will create an estimated 1800 construction jobs
and, once completed, an additional 225 long-term operating and maintenance jobs.
US Becomes Net Gasoline Exporter for First Time in 51 Years
Spurred on by rising refinery production and, more importantly, falling demand, US
gasoline exports have skyrocketed over the past two years. Between 2000 and 2009,
the amount of US gasoline sent abroad consistently averaged between 100 mb/d to
200 mb/d. Since then, exports have increased dramatically, averaging some 525 mb/d
during 2011, including better than 650 mb/d in the last two months of the year. And
while exports in November were higher, December was more noteworthy as the
volume sent abroad that month actually exceeded the amount received. Granted, the
country's gasoline surplus in December 2011 was small (a paltry 3 mb/d), but it was
still the first time since August 1961 that the US has been a net exporter of gasoline.
MoPNG:
Ministry of Petroleum and Natural Gas;
OMC:
Oil Marketing Company;
GRM:
Gross Refining Margin;
GoI:
Government of India;
IOC:
Indian Oil Corporation;
HPCL:
Hindustan Petroleum Corporation;
BPCL:
Bharat Petroleum Corporation;
ONGC:
Oil and Natural Gas
Corporation;
GAIL:
GAIL (India);
EGoM:
Empowered Group of Ministers;
PSU:
Public Sector Unit;
PDS:
Public Distribution System
March 2012
15

S
TOCK
P
RICE
P
ERFORMANCE
Broader markets outperforms O&G index in Feb-12
BPCL outperforms in Feb-12 led by higher bids for Cove Energy 8.5% stake in Mozambique block
(BPCL has 10% stake)
O&G Index
120
110
100
90
80
70
Feb-11
May-11
Aug-11
Nov-11
Feb-12
Sens ex
Absolute stock performance (%)
1 MONTH ABSOLUTE
6 MONTH ABSOLUTE
1 YEAR ABSOLUTE
GSPL
(11)
PLNG
IGL
Ca i rn
IOC
BPCL
HPCL
GAIL
OIL
ONGC
RIL
(1)
(16) (8)
0
8
16
24
(0)
7
8
9
2
3
6
5
18
GSPL
PLNG
IGL
Ca i rn
IOC
BPCL
HPCL
GAIL
OIL
ONGC
RIL
(25)
(5)
(15)
29
(11)
(3)
(17)
(10)
(1)
11
2
GSPL
PLNG
I GL
Ca i rn
I OC
BPCL
HPCL
GAI L
OI L
ONGC
RI L
(17)
44
27
7
(9)
13
(4)
(16)
4
7
(17)
(40) (20)
0
20
40
60
(40)
(20)
0
20
40
Relative stock performance (%)
1 MONTH RELATIVE
6 MONTH RELATIVE
1 YEAR RELATIVE
GSPL
PLNG
IGL
Ca i rn
IOC
BPCL
HPCL
GAIL
OIL
ONGC
RIL
(13)
(0)
0
4
2
16
6
(3)
5
5
(4)
(10)
0
10
20
GSPL
(31)
PLNG
IGL
Ca i rn
IOC
BPCL
HPCL
GAIL
OIL
ONGC
RIL
(40)
(20)
(4)
0
20
40
(23)
(15)
(7)
6
(17)
(9)
(21)
24
(11)
GSPL
(13)
PLNG
IGL
Ca i rn
IOC
BPCL
HPCL
GAIL
(12)
OIL
ONGC
RIL
(13)
(20)
0
20
40
60
(1)
7
11
(5)
17
11
30
48
(20)
March 2012
16

G
LOBAL
P
EER
V
ALUATIONS
Integrated Oil Companies
RIL at premium and ONGC at discount compared to global
peers
M. Cap
(US$b)
PE (x)
CY10/FY CY11/FY CY12/FY
11
12
13
P/BV (x)
CY10/FY CY11/FY CY12/FY
11
12
13
EV/EBIDTA (x)
CY10/FY CY11/FY CY12/FY
11
12
13
Indian Companies
Rel i a nce Indus tri es
Bi g 5 avera ge
North Ameri ca a verage
Europe avera ge
As i a & Others a verage
Global Average
49.5
11.1
11.6
15.7
10.3
10.6
11.9
11.0
8.8
10.1
9.8
9.9
10.0
10.9
8.8
10.3
8.9
9.2
9.5
1.5
2.1
1.7
1.1
1.7
1.6
1.3
1.9
1.6
1.0
1.5
1.5
1.2
1.7
1.4
1.0
1.3
1.3
7.3
5.2
5.7
4.6
6.7
6.2
7.1
4.1
4.6
4.2
5.8
5.3
7.3
4.2
4.5
3.9
5.4
5.0
Upstream Companies
ONGC
Ca i rn Indi a
North Ameri ca a verage
Europe avera ge
As i a & Others a verage
Global Average
47.3
13.5
11.4
10.7
28.0
15.6
15.4
21.2
9.2
7.4
17.0
14.3
11.8
14.8
9.3
6.6
15.1
12.1
12.1
13.5
2.1
1.7
2.0
2.7
2.4
2.3
1.8
1.5
1.9
2.3
2.0
2.0
1.6
1.3
1.7
1.9
1.7
1.7
4.3
7.8
7.0
6.4
7.7
7.1
3.6
5.9
5.6
5.3
6.1
5.7
3.3
4.2
5.1
4.7
5.9
5.3
Refining and Marketing Companies
North Ameri ca a verage
Europe avera ge
Japa n a verage
As i a & Others a verage
Global Average
18.8
7.4
9.9
20.6
16.7
5.1
7.6
4.7
21.9
14.1
10.0
10.1
9.9
16.0
13.0
1.9
1.2
1.3
3.0
2.3
1.5
1.1
0.9
2.8
2.0
1.4
1.0
0.9
2.5
1.9
9.8
5.5
5.9
13.3
10.4
5.6
5.2
4.5
12.1
8.7
4.8
4.8
8.1
10.6
8.0
Gas Utilities
GAIL
GSPL
IGL
Petronet LNG
North Ameri ca a verage
As i a & Others a verage
Global Average
8.8
0.9
1.0
2.4
12.7
8.6
19.3
17.4
28.4
24.9
27.9
10.3
8.5
17.1
11.0
23.8
19.2
23.1
9.4
9.2
14.3
11.4
20.9
17.8
20.4
2.4
2.2
5.1
4.5
3.2
4.5
3.4
1.9
1.8
4.2
3.5
2.8
4.1
3.0
1.7
1.5
3.6
2.9
3.0
3.6
3.1
7.4
6.1
11.2
11.7
12.1
13.0
12.2
6.4
5.4
8.9
8.4
10.6
10.7
10.6
6.3
5.8
7.6
7.6
10.0
10.2
10.0
Petrochemical Companies
North Ameri ca a verage
Europe avera ge
Japa n a verage
As i a & Others a verage
Global Average
20.6
12.9
40.2
12.4
17.9
16.8
11.7
15.8
13.7
14.0
15.3
12.3
183.3
12.5
34.8
3.1
2.6
1.3
2.1
2.4
2.7
2.3
1.1
2.0
2.1
2.4
2.1
1.1
1.8
1.9
9.3
6.8
10.8
15.1
10.6
8.6
6.8
6.7
16.8
10.5
8.0
6.7
7.3
16.0
10.2
*All averages are weighted averages
March 2012
17

Disclosures
This report is for personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. This research report does not constitute an offer, invitation or inducement
to invest in securities or other investments and Motilal Oswal Securities Limited (hereinafter referred as MOSt) is not soliciting any action based upon it. This report is not for public distribution and has been
furnished to you solely for your information and should not be reproduced or redistributed to any other person in any form.
Unauthorized disclosure, use, dissemination or copying (either whole or partial) of this information, is prohibited. The person accessing this information specifically agrees to exempt MOSt or any of its affiliates
or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOSt or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOSt
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.
The information contained herein is based on publicly available data or other sources believed to be reliable. While we would endeavour to update the information herein on reasonable basis, MOSt and/or its
affiliates are under no obligation to update the information. Also there may be regulatory, compliance, or other reasons that may prevent MOSt and/or its affiliates from doing so. MOSt or any of its affiliates or
employees shall not be in any way responsible and liable for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report . MOSt or any of its affiliates
or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the implied warranties of merchantability, fitness
for a particular purpose, and non-infringement. The recipients of this report should rely on their own investigations.
This report is intended for distribution to institutional investors. Recipients who are not institutional investors should seek advice of their independent financial advisor prior to taking any investment decision
based on this report or for any necessary explanation of its contents.
MOSt and/or its affiliates and/or employees may have interests/positions, financial or otherwise in the securities mentioned in this report. To enhance transparency, MOSt has incorporated a Disclosure of Interest
Statement in this document. This should, however, not be treated as endorsement of the views expressed in the report.
Disclosure of Interest Statement
1. Analyst ownership of the stock
2. Group/Directors ownership of the stock
3. Broking relationship with company covered
4. Investment Banking relationship with company covered
Companies where there is interest
None
IOC
None
None
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. The research analysts, strategists, or research associates principally responsible
for preparation of MOSt research receive compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors and firm revenues.
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 MOSt & its group companies to registration or licensing requirements within such jurisdictions.
For U.K.
This report is intended for distribution only to persons having professional experience in matters relating to investments as described in Article 19 of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005 (referred to as "investment professionals"). This document must not be acted on or relied on by persons who are not investment professionals. Any investment or investment activity to
which this document relates is only available to investment professionals and will be engaged in only with such persons.
For U.S.
MOSt is not a registered broker-dealer in the United States (U.S.) and, therefore, is not subject to U.S. rules. 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.,
Motilal Oswal has entered into a chaperoning agreement with a U.S. registered broker-dealer, Marco Polo Securities Inc. ("Marco Polo").
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.
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, Marco
Polo 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.
Motilal Oswal Securities Ltd
3rd Floor, Hoechst House, Nariman Point, Mumbai 400 021
Phone: (91-22) 39825500 Fax: (91-22) 22885038. E-mail: reports@motilaloswal.com