Reliance Industries
BSE SENSEX
29,656
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, INRm
Free float (%)
S&P CNX
9,218
RIL IN
3,240
4,589/ 68.8
1449 / 926
9/28/22
10920
54.9
24 April 2017
4QFY17 Results Update | Sector: Oil & Gas
CMP: INR1,416
TP: INR1,264 (-11%)
Neutral
EBITDA exceeds estimates; GRMs at USD11.5/bbl
RIL’s 4QFY17 standalone EBITDA of INR113b (+5% YoY, +6% QoQ) exceeded our estimate
of INR107b due to higher GRMs and throughput. PAT of INR81.5b (+11% YoY, +2% QoQ)
too beat estimate of INR75.2b, led by a lower effective tax rate of 19%. Cumulative capex
in RJio stands at INR1,790b, with 72m prime subscribers. Management guided for full
commissioning of the refinery off-gas cracker (ROGC) project by 3QFY18 and the petcoke
gasifier project by 4QFY18. Key drivers for near-term stock performance would be (1)
core projects commissioning and (2) subscriber ramp-up/ARPU in telecom.
Financials & Valuations (INR b)
Y/E March
2017 2018E 2019E
Net Sales
2,420.3 3,757.2 4,057.3
EBITDA
432.6 502.7 528.9
Net Profit
314.3 358.8 376.8
Adj. EPS (INR) 106.6 121.7 127.8
EPS Gr. (%)
14.6
14.2
5.0
BV/Sh. (INR)
978.1 1,082.3 1,191.7
RoE (%)
11.9
11.8
11.2
RoCE (%)
9.1
10.0
9.9
Payout (%)
14.6
14.4
14.4
Valuations
P/E (x)
13.3
11.6
11.1
P/BV (x)
1.4
1.3
1.2
EV/EBITDA (x)
12.0
8.7
7.4
EV/Sales (x)
2.1
1.2
1.0
Estimate change
TP change
Rating change
EBITDA beats estimate:
Refining EBIT stood at INR62.6b (-2% YoY, +2% QoQ).
4QFY17 GRM stood at USD11.5/bbl (+6% YoY, +6% QoQ). Petchem EBIT was
INR34.5b (+27% YoY, +3% QoQ), with margin of 13.7% coming in below 15.5% in
3QFY17 primarily due to a decline in polymer deltas.
Expect no further delays in core projects
ROGC by 3QFY18:
The ROGC project is expected to be fully commissioned by
3QFY18, and the petcoke gasifier project by 4QFY18.
Jio capex reaches INR1.79t:
Capex to date has reached INR1.79t. The company
has written off INR120b on account of revaluation of spectrum. Jio’s prime
user base reached 72m at end-FY17. The company is still unclear as to when
would it stop capitalizing expenses.
Domestic E&P continues to shrink:
KG-D6 gas production stood at
7.4mmscmd (-24% YoY, -1.3% QoQ) and shale at 39bcfe (-23% YoY and +4%
QoQ). KG field development is on cards, but subject to arbitration
resolution/plan approvals.
4QFY17 capex at INR330b:
Consol. net debt was INR1,966b (v/s INR1,807b at
end-FY16).
Declares dividend:
RIL has recommended a dividend of INR11/share for FY17.
Valuation view:
On FY19E basis, the stock trades at 11.1x adj. standalone EPS of
INR127.8 and EV/EBITDA of 7.4x. Our SOTP-based fair value stands at
INR1,264/share. Maintain
Neutral.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Swarnendu Bhushan
(Swarnendu.Bhushan@MotilalOswal.com); +91 22 6129 1529
Abhinil Dahiwale
(Abhinil.Dahiwale@motilaloswal.com); +91 22 3980 4309

Reliance Industries
Exhibit 1:
RIL segment wise performance snapshot (standalone)
In INRb
Segmental Revenues
Petchem
Refining
Oil & Gas
Others
Total
Segmental EBITDA
Petchem
Refining
Oil & Gas
Total
EBITDA Margin (%)
Petchem
Refining
Oil & Gas
Total
Segmental EBIT
Petchem
Refining
Oil & Gas
Others
Total
EBIT Margin (%)
Petchem
Refining
Oil & Gas
Total
Operating Metrics
Refining (USD/bbl)
RIL GRM
Singapore GRM
Premium
Refinery Thr' put (mmt)
Utilization (%)
Petrochemicals
Polymer (TMT)
Polyester (TMT)
Polyester Int. (TMT)
E&P
Gross Oil Prodn (tmt)
PMT
KG-D6
Total
Gross Gas Prodn (mmscmd)
PMT
KG-D6
Total
Shale production (bcfe)
1Q
FY15
2Q
3Q
213
732
13
4
962
29
40
8
78
13.8
5.5
58.1
8.1
22
32
3
1
57
10.3
4.4
19.8
6.0
4Q
201
486
12
4
703
30
54
7
91
14.9
11.2
57.8
13.0
21
47
2
1
71
10.6
9.7
13.4
10.2
1Q
196
614
12
2
823
33
59
8
101
17.0
9.6
69.9
12.2
24
51
2
1
79
12.5
8.3
19.5
9.6
FY16
2Q
3Q
199
513
12
3
726
35
62
8
104
17.5
12.0
66.6
14.4
25
54
1
1
81
12.6
10.5
11.7
11.2
180
496
10
3
688
36
71
8
116
19.9
14.4
83.4
16.8
26
63
2
1
92
14.3
12.7
24.6
13.4
4Q
195
403
9
4
611
38
72
3
114
19.7
17.9
34.6
18.6
27
64
-2
1
89
13.9
15.8
-26.9
14.6
1Q
194
489
8
2
694
38
74
3
115
19.6
15.1
44.4
16.6
29
66
0
1
96
14.9
13.4
6.1
13.9
FY17
2Q
3Q
213
518
7
3
741
44
67
3
114
20.8
13.0
37.7
15.4
35
59
0
1
95
16.3
11.4
3.4
12.8
217
532
6
3
758
44
70
1
114
20.1
13.1
16.4
15.1
34
61
-1
1
95
15.5
11.5
-20.1
12.5
4Q
252
639
7
3
901
45
74
2
121
17.8
11.5
32.6
13.4
35
63
-1
1
98
13.7
9.8
-11.5
10.8
27.0
-1.6
-67.8
35.2
9.3
2.8
2.2
-37.6
4.4
3.0
4QFY17 (%)
YoY QoQ
29.1
58.4
-24.5
-3.9
47.4
16.3
20.0
9.1
19.7
18.9
237
249
910
918
16
14
2
2
1,165 1,183
26
46
10
82
11.0
5.0
65.3
7.0
19
38
5
1
62
7.9
4.1
31.3
5.3
32
47
8
88
13.0
5.1
61.2
7.4
24
38
3
1
66
9.6
4.1
24.1
5.6
16.9
3.1
2.2
5.5
-28.8 117.6
6.3
5.6
8.7
5.8
2.9
16.7
108
8.3
4.8
3.5
17.3
112
7.3
6.3
1.0
17.7
114
10.1
8.6
1.5
16.2
105
10.4
8.0
2.4
16.6
107
10.6
6.3
4.3
17.1
110
11.5
8.0
3.5
18.0
116
10.8
7.8
3.0
17.8
115
11.5
5.0
6.5
16.8
108
10.1
5.1
5.0
18.0
116
10.8
6.7
4.1
17.8
115
11.5
6.4
5.1
17.5
113
6.5
-17.9
70.0
-1.7
6.5
-4.5
24.4
-1.7
1,082 1,132 1,049 1,037 1,083 1,217 1,183 1,141 1,146 1,186 1,054 1,069
455
488
447
457
512
543
548
591
513
594
597
580
1,086 1,305 1,241 1,245 1,452 1,475 1,725 1,780 1,533 1,739 1,735 1,885
-6.3
-1.9
5.9
1.4
-2.8
8.6
273
72
345
7.1
13.1
20
48.6
246
68
314
6.4
12.6
19
49.8
246
68
314
6.7
12.0
19
52.1
218
68
286
6.3
11.4
18
49.4
213
55
267
5.8
11.5
17
49.3
246
53
299
5.5
11.5
17
51.0
218
49
267
5.5
10.7
16
54.2
246
45
291
5.8
9.7
15
50.6
231
43
274
5.3
8.7
14
44.5
211
39
251
4.7
7.7
12
41.4
201
41
242
4.9
7.5
12
37.5
196
47
243
4.6
7.4
12
39.1
-20.0
3.4
-16.4
-20.4
-23.5
-22.4
-22.7
-2.0
12.6
0.5
-5.1
-1.3
-2.8
4.3
Source: Company, MOSL
24 April 2017
2

Reliance Industries
Key takeaways from analyst meet
REFINING/PETCHEM: GRM at USD11.5/bbl despite shutdown in FCCU
There was a planned shutdown in FCCU unit, as a result of which production of
petrol was affected. Despite that, the company was able to clock a GRM of USD
11.5/bbl, implying a premium of USD 5.1/bbl over SG GRM.
Throughput stood at 17.5mmt v/s 17.8mmt in 4QFY16 and 3QFY17 each.
In petchem, polymer demand was down +2% YoY in 4QFY17. PP delta was down
40% QoQ due to tight supply of propylene. PE delta also declined 5% QoQ due
to firm naphtha prices. PVC delta also declined 12% QoQ due to high feedstock
prices. Domestic demand of petrochem was adversely impacted because of
demonetization but normalized towards end of the year.
TELECOM: Capex of INR1.79t till date
Prime subscribers at 72m. Capex reached INR1.79t. It has taken write-off of
INR120b due to revaluation of spectrum.
Equity investment stands at INR700b, while debt accounts for INR470b and
suppliers/capex creditors for the rest of the investments.
Capex in Jio at INR180b in 1QFY18, but likely to decline substantially post that.
Petroleum Marketing: 1,221 outlets opened so far
RIL has reopened its 1,221 outlets. It guides reaching 1,400 in another 3-4
months.
It has stopped giving discount on diesel sales post FY17. It guided for a market
share of 5% on exit basis in retail diesel and market share of 5.8% in bulk diesel.
Throughput per month stands at 300kl.
New Projects Update: No further delay; no change in capex
RIL’s USD18.5b core projects (petcoke gasification, polyester expansion, off-gas
cracker and ethane sourcing) are on track. (a) Petcoke gasification will be fully
commissioned by 4QFY18, (b) Off-gas cracker will be fully commissioned in
3QFY18.
Ethane sourcing is on track. Dahej already using ethane. Hazira would soon be
connected. The company is also building facilities at Jamnagar and Nagothane
for feedstock flexibility.
Domestic E&P: Development contingent on several factors
KG-D6 production declines: KG-D6 gross production declined to 7.4mmsmcd in
4QFY17 (v/s 9.7mmscmd in 4QFY16). RIL is trying to sustain production through
well optimization.
Development of RIL’s east coast fields – R-series, MJ (D55) and D29/D30 will be
contingent on resolution of arbitration cases and approvals. Optimistically
production from R-series could start in 2020.
CBM production has commenced. To ramp up to 2.5mmscmd by FY18-end.
24 April 2017
3

Reliance Industries
Exhibit 2:
Refining share in overall standalone EBIT remains high at ~64% in 4QFY17
Petrochem
Refining
E&P
0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 8 7 6 2
1 2 1
9
20 20 14 9
23 26 30 29 32 28 24 23 21 22 25
Others
3
6
1
8
1
5
1
5
2
2
1
3
1
2
1
3
1
0
1
0
56 52 53 60 61 57 56 66 65 67 68 71 68 62 65 64
29 28
37 46 44 33 35 43 58 58 59
28 34 34 36 38
48 46 42
38 34 36 38 39 32 34 42 45 36 28 31 32 36 41 36 32 30 36 38 30 31 31 28 30 30 37 35 35
Source: Company, MOSL
Exhibit 3:
Status update of ongoing core business capex plans
In KTPA
Refinery Off-gas Cracker
Ethylene
Propylene
LDPE
LLDPE
Benzene
PP
Polyesters
PFY
PTY
PSF
PET
Polyester Intermediates
Paraxylene
PTA
MEG
Rubber Division
PBR
SBR
Butyl Rubber
HPIB
Petcoke Gasifier
Current
Capacity
1,883
759
190
928
419
2,100
670
153
692
290
1,830
2,050
733
74
Planned
Expansion
1,365
154
400
550
453
135
395
140
346
648
2,470
2,296
730
40
150
100
105
8bcm/yr
Total
3,248
913
590
1,478
872
2,235
1,065
293
1,038
938
4,300
4,346
1,463
114
150
100
105
8bcm/yr
Status /
Likely production start
3QFY18
3QFY18
3QFY18
3QFY18
Along with PX line
3QFY18
Commissioned
Commissioned
Phase 1 commissioned; Phase 2 in Dec 2015
Full commissioning by 1QFY18
Commissioned
Commissioned
Commissioned
Commissioned
4QFY18
Source: Company, MOSL
24 April 2017
4

Reliance Industries
JIO: Garners 72.4m prime subscribers
Cumulative capex of INR1.79t
Management commentary: Reached 72.4m paid subscribers
Telecom Analyst:
Ali Asgar
(Aliasgar.shakiri@MotilalOswal.com);
+91 22 6129 1565
FTTH still in works
RJio ended FY17 with 108.9m subscribers and 72m prime subscribers.
RJio’s data traffic remains above 110cr GB/month with about 7-10GB data
consumption/user/month. As freebies get reduced, this could come down to
about 5GB/sub/month based on our channel checks.
RJio has over 1,00,000 sites, with about 65% coverage currently.
Management targets to reach over 95% population coverage by FY18 with an
additional 100,000 sites. This could continue to keep capex at accelerated pace.
As per TRAI’s speed test, Jio’s average download speed at 15.0Mbps in March,
2x of the incumbents.
FTTH rollout continues. Beta trials initiated in a few locations and will be
expanded over few months.
Our channel checks indicate pan-India rollout will take time.
Reliance Ind has not provided RJio’s financials and continues to capitalize the
operating cost.
Management did not provide any timelines for RJio financial. It indicated that
until the network stabilized, it will continue to capitalize costs.
In FY18E, we expect RJio to reach about 108m subs in FY18E and INR225 ARPU
with a revenue base of INR 191b and EBITDA of INR 38.5b.
In FY19E, we expect subscribers to reach 132m and ARPU of INR 240, reaching
revenue base of INR 345b and EBITDA breakeven of INR 43.6b with a DCF based
equity value of INR 110/share.
We believe the competitive intensity could reduce in 3 quarters as a.) Industry
ARPU downtrading gets factored with RJio’s low price plans, b.) RJio’s capacity
utilization reaches 60-70%, c.) Other operators match RJio’s price plans.
Subsequently, the current broadband data subscriber at 236m, about one-
fourth of total subscriber base, provide huge growth opportunity.
Continues to capitalize operating cost
Our expectation –FY19E EBITDA breakeven; DCF value at INR 110/share
24 April 2017
5

Reliance Industries
REFINING: Higher operating GRM; diesel cracks marginally lower
GRM at USD11.5/bbl
Exhibit 4:
RIL’s premium over benchmark stood at USD5.1/bbl in 4QFY17
8
6
4
2
0
(2)
RIL's GRM premium over SG
Brent less Dubai
Arab L-H
Exhibit 5:
Refining EBIT down ~2% YoY and up +2% QoQ
Refining EBIT (INRb)
EBIT Margins (%)
10 8
4
4
11
13
16
13
11 12
10
5.3
3.4 2.9 3.9 4.0 4.4 4.6 4.0 4.3 4.5 2.2 2.2 2.5 4.2 4.2 4.5 3.6 3.3 3.3 4.5 4
13 13 14 20 20 22 24 25 32 31 17 17 21 35 36 35 30 32 31 40 38 38 32 47 51 54 63 64 66 59 61 63
Exhibit 6:
4QFY17 GRM at USD11.5/bbl; premium of USD5.1/bbl
Singapore GRM
7.5
7.5 7.3 7.9
9.0 9.2
10.310.1
1.7 1.0
6.8
Premium / (Disc)
8.4
RIL GRM
9.3 8.7
8.3
9.5 9.6 10.1
11.5
11.5
11.5
10.8
10.8
10.110.410.6
10.1
3.5 3.0
7.7 7.6
7.6 7.6 0.4
1.4
7.3 1.5 2.4
5.1
4.3
1.8
6.5 5.0 4.1
3.1
6.0 5.9
3.1 2.9
- 1.0
1.9
3.5
2.3 3.3
3.5 1.0
2.6
3.7
3.4
3.6
2.7
9.1 7.9
9.1
8.7
8.6 8.0
8.0 7.8
4.0
7.6 6.6
7.4 8.6
6.7 6.4
6.5
6.5 5.4
6.3
6.3
6.2 5.8
5.0 5.1
4.9 3.7 4.2 5.5
4.8
4.3
4.1 3.3
1.9
(1.1)
Source: Company, MOSL
24 April 2017
6

Reliance Industries
Exhibit 7:
Refinery throughput down YoY/QoQ to 17.5mmt, utilization at 113%
Refinery Thr' put (mmt)
101 107 108
77
Utilization (%)
116 115
108
116 115 113
109 109 104 108 110 110 111 105 112 114 113 104 110 114 110 105 108 112 114 105 107 110
Source: Company, MOSL
Exhibit 8:
RIL expects limited capacity supply and stable demand to support margins
Source: Company
24 April 2017
7

Reliance Industries
PETCHEM: EBIT margin declines
EBIT increased 27% YoY and +3% QoQ; EBIT share at 35%
Exhibit 9:
EBIT up 27% YoY and +3% QoQ; margins declined QoQ to 13.7%
Petchem EBIT (INRb)
EBIT Margins (%)
Source: Company, MOSL
Exhibit 10:
Key Polymer spread decreased QoQ ; POY/PSF spreads up 7%/8.5% QoQ in 4QFY17 (INR/kg)
PE
75
60
45
30
15
0
PP
PVC
POY
PSF
Source: Company, MOSL
Exhibit 11:
Petchem volume increases due to new projects
Polymer (mmt)
Polyester (mmt)
Polyester Interm. (mmt)
1.5 1.7 1.8 1.5 1.7 1.7 1.9
1.2 1.2 1.2 1.2 1.2 1.1 1.2 1.3 1.1 1.1 1.3 1.2 1.2 1.5
1.2 1.2 1.1 1.1 1.1 1.2 1.1 1.2 1.2 1.2
1.1
0.4 0.5 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.5 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.5 0.5 0.4 0.5 0.5 0.5 0.5 0.6 0.5 0.6 0.6 0.6
0.4
0.8 1.1 1.1 1.1 0.9 1.1 1.1 1.0 1.1 1.1 1.2 1.1 1.1 1.1 1.1 1.1 1.1 1.2 1.1 1.1 1.1 1.1 1.0 1.0 1.1 1.2 1.2 1.1 1.1 1.2 1.1 1.1
Source: Company, MOSL
24 April 2017
8

Reliance Industries
E
&P: KG-D6 decline continues; shale outlook improving
Domestic E&P development contingent on arbitration resolution and
development plan approvals
Exhibit 12:
E&P profitability remains volatile
54
42 42 39 41 40
36 38 38
43 46
36 39 38
E&P EBIT (INRb)
31 29
24 24
31
27
31
24 20
20
25
12
6 3
(11)
(20)
(1) (1)
13
10 12 15 17 19 17 15 16 15 15 13 10 10 9 6 5 4 4 5 4 5 3 3 2 2 1 2
(27)
0 0
(2)
Source: Company, MOSL
Exhibit 13:
KG-D6 gross production averaged 7.4mmscmd in 4QFY17
KG-D6 Gross Oil (TMT)
Source: Company, MOSL
24 April 2017
9

Reliance Industries
Shale Gas performance improved on the back of improving prices
RIL’s shale gas revenues stood at USD110m (v/s 82 in 4QFY16), while EBITDA
stood at USD38m (v/s USD28m in 4QFY16).
RIL’s production share in shale JV’s stood at 39.1bcfe (v/s 51bcfe in 4QFY16).
Average realization stood at USD2.85/mscfe (v/s USD2.0/mscfe in 4QFY16).
Exhibit 14:
Shale gas revenues up YoY led by improvement in prices
266
215
165
193
127
221
175
199
270
Revenues (USDm)
EBITDA (USDm)
244
201 202206
174
138
91
141
86
117
55
110
58
82
28
93
40
89
23
92
30
112
38
Source: Company, MOSL
Exhibit 15:
RIL production down 23% YoY and up 4% QoQ (RIL Production Share bcfe)
52.1 49.4 49.3 51.0 54.2 50.6
48.6 49.8
Shale gas vol, net (bcfe)
37.6 35.9
42.3 44.2
44.5
41.4
37.5 39.1
Source: Company, MOSL
24 April 2017
10

Reliance Industries
Organized Retail: Sales at INR103b; sold 2.6m LYF
devices
4QFY17 revenues up 19%; presence in 702 cities with 3,676 stores
Exhibit 16:
Reliance retail has opened 111 stores in 3QFY17, increasing presence increased to 686 cities
No. of stores (No.)
Addition
No. of Cities
Avg. stores per city
1QFY15
1,723
212
148
12
2QFY15
2,006
437
155
13
3QFY15
2,285
279
166
14
4QFY15
2,621
336
200
13
1QFY16
2,747
126
210
13
2QFY16
2,857
110
250
11
3QFY16
3,043
186
371
6
4QFY16 1QFY17 2QFY17 3QFY17
3,245 3,383 3,442
3,553
202
138
59
111
532
679
679
686
6
5
5
5
4QFY17
3,676
63
702
5
Source: Company, MOSL
Exhibit 17:
Reliance opened
63
new stores in 4QFY17
Value and others
Digital
Brand, Jewellery, Fashion & Lifestyle
Total Stores
3,553 3,676
3,383 3,442
3,245
3,043
2,747 2,857
827
1,298
622
868
1,379
610
909
-
1,537
1,862
597
-
1,917
-
1,986
-
1,996
1,723
694
427
602
2,006
722
689
595
2,285
756
920
609
2,621
809
1,196
616
-
-
-
-
-
1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17
Source: Company, MOSL
Valuation and view
RIL is in the midst of executing its largest ever capex plans in core and non-core
businesses. Key things to watchout for RIL: (1) telecom launch (INR1.79t capex
till date) and subscriber ramp-up, (2) E&P arbitration case outcome for domestic
E&P clarity and (3) Update on core capex plan of ~USD18.5b.
For FY18/FY19, we model GRM at USD9.5/9.9/bbl.
Over the last decade, RIL commissioned multiple large projects including KG-D6,
RPL refinery, shale gas JV's and organized retail venture. Barring RPL, other
projects got marred by external factors leading to subpar stock performance.
RIL’s capital allocation in recent years had been skewed towards non-core
businesses (telecom) to ring-fence its earnings from cyclical businesses. With
telecom launch round the corner, RIL stock is entering into a critical juncture as
success of telecom venture will drive the stock performance.
If core projects are delayed further, it may result in further cut in earnings
estimates. Return ratios for RIL remain under pressure with sub-12% on
standalone basis.
On FY19E basis, the stock trades at 11.1x adj. SA EPS of INR127.8 and EV/EBITDA
of 7.4x. Our SOTP-based fair value stands at INR1,264/share. Maintain
Neutral.
24 April 2017
11

Reliance Industries
Exhibit 18:
RIL: Key assumptions
Key Metrics
Exchange Rate (INR/USD)
Refining
Capacity (mmt)
Production (mmt)
Capacity Utilization (%)
GRM (USD/bbl)
Singapore GRM
Premium/(disc)
RIL GRM
E&P
Gas Production (mmscmd)
Oil Production (kbd)
Pricing
Brent Oil (USD/bbl)
Wellhead Gas Price (USD/mmbtu)
FY14
60.5
62.0
68.1
110%
5.6
2.8
8.5
13.8
6.4
109
4.2
FY15
61.2
62.0
67.9
110%
6.4
2.5
8.8
12.2
6.6
86
4.2
FY16
65.4
62.0
69.5
112%
7.5
3.3
10.8
8.4
4.9
48
4.2
FY17
67.1
62.0
70.1
113%
5.8
5.2
11.0
7.8
3.4
49
3.2
FY18E
68.5
62.0
70.0
113%
5.4
4.1
9.5
6.6
3.4
55
3.4
FY19E
70.0
62.0
70.0
113%
5.4
4.5
9.9
5.6
3.0
60
3.4
Source: Company, MOSL
Exhibit 19:
RIL: Segmental EBITDA break-up (INRb)
Segmental EBITDA (INRb)
Refining
Petchem
E&P
Total
Segmental EBITDA share (%)
Refining
Petrochemicals
E&P
Total
FY14
176
110
40
326
54
34
12
100
FY15
187
118
37
342
55
35
11
100
FY16
265
143
28
436
61
33
6
100
FY17E
284
171
9
465
61
37
2
100
FY18E
232
248
11
491
47
51
2
100
FY19E
256
253
7
516
50
49
1
100
Source: Company, MOSL
Exhibit 20:
RIL: Sum of the parts valuation (on FY19 basis)
Sum of the parts (on FY19 basis)
Core business
Refining
Petchem
E&P
KG D6
PMT
NEC-25
CBM
Shale
KG basin exploratory upside
Investments
RGTIL
Reliance Retail
RJio
Total
Net debt / (cash)
Target price
Remarks/Methodology
524
516
67
10
13
4
8
(46)
78
7
99
110
1,323
59
1,264
6x FY19 EBITDA
6x FY19 EBITDA
DCF
DCF
USD 5/boe
USD 5/boe
7x EV/EBITDA FY19
USD 5/boe
Book value
.7x FY19 sales
As per our telecom analyst
24 April 2017
12

Reliance Industries
Reliance Industries: Story in charts
Exhibit 21:
RIL’s earnings growth momentum on a recovery
track
24.9
PAT (INRb)
PAT - YoY (%)
20.7
14.6
4.8
(1.2)
203
200
210
220
227
274
314
359
377
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E
Source: Company, MOSL
4.7
3.3
14.2
5.0
10.6
14.1
12.6
9.8
12.1
9.6
11.7
9.2
11.0
8.2
12.0
8.9
11.9
9.1
11.8
10.0
11.2
9.9
Exhibit 22: Also return ratios are expected to gradually
recover
RoCE (%)
RoE (%)
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E
Source: Company, MOSL
Exhibit 23:
Refinery throughput to remain at 70mmt in FY18/19; GRM to stabilize
Refinery Thr' put (mmt)
8.4
8.6
9.2
8.6
RIL GRM (USD/bbl)
11.0
10.8
9.9
8.1
9.5
66.6
FY11
67.6
FY12
68.5
FY13
68.1
FY14
67.9
FY15
69.5
FY16
70.1
FY17
70.0
FY18E
70.0
FY19E
Source: Company, MOSL
Exhibit 24:
Expect petchem EBITDA contribution to increase going forward, followed by refining
Refining
389
307
206
17
93
96
FY07
240
20
97
123
FY08
238
24
94
120
FY09
104
111
92
FY10
117
131
FY11
141
Petchem
E&P
Total
436
353
101
112
140
FY12
326
58
96
172
FY13
326
40
110
176
FY14
342
37
118
187
FY15
265
284
232
FY18E
256
28
143
465
9
171
491
11
248
516
7
253
FY16
FY17
FY19E
24 April 2017
13

Reliance Industries
Reliance Industries: Story in charts
Exhibit 25:
Segmental EBITDA
break-up
(%) - E&P a
dampener, refining and petchem outshine
100
80
60
40
20
-
39.8
Refining
Petrochemicals
E&P
56.2
42.6
26.5
13.8 12.2
8.4
7.8
6.6
5.6
Exhibit 26:
Expect E&P production to decline; though new
policy can boost long-term production (mmscmd)
Gas Production (mmscmd)
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E
Source: Company, MOSL
Source: Company, MOSL
Exhibit 27:
RIL refining margins
improved in FY16
(USD/bbl)
after staying flat in recent years
Singapore GRM
8.4
6.9
3.2
3.3
3.6
5.2
8.3
7.9
8.6
Premium/(disc)
10.8 11.0
8.8
2.5
7.5
3.3
5.2
RIL GRM
9.5
4.1
9.2
9.9
4.5
Exhibit 28:
We expect petchem EBITDA to improve in
FY18/19
Petchem EBITDA (INRb)
171
8.5
2.8
5.6
248
143
253
0.3 1.4
111
6.4
5.8
5.4
5.4
117
112
96
110
118
Source: Company, MOSL
Source: Company, MOSL
Exhibit 29:
Dividend Payout stabilized in recent years (%)
Dividend payout (%)
20
16
12
8
Exhibit 30:
RIL 1Yr Fwd P/E Chart (last 10 years)
26
21
16
11
6
8.9
11.6
13.3
11.8
PE (x)
Median(x)
Peak(x)
Min(x)
Avg(x)
26.5
Source: Company, MOSL
Source: Company, MOSL
24 April 2017
14

Reliance Industries
Financials and valuations
Standalone - Income Statement
Y/E March
Total Income from Operations
Change (%)
Purchases
Manufacturing and Other Expenses
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 (%)
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY13
3,602,970
9.2
-28,150
3,323,980
3,295,100
91.5
307,870
8.5
94,650
213,220
30,360
79,980
262,840
0
262,840
52,810
20.1
210,030
210,030
4.8
5.8
FY14
3,901,170
8.3
9,360
3,584,150
3,592,400
92.1
308,770
7.9
87,890
220,880
32,060
89,360
278,180
0
278,180
58,340
21.0
219,840
219,840
4.7
5.6
FY15
3,290,760
-15.6
90,770
2,883,970
2,974,740
90.4
316,020
9.6
84,880
231,140
23,670
87,210
294,680
0
294,680
67,490
22.9
227,190
227,190
3.3
6.9
FY16
2,331,580
-29.1
84,120
1,853,990
1,930,190
82.8
401,390
17.2
95,660
305,730
24,540
75,820
357,010
0
357,010
82,840
23.2
274,170
274,170
20.7
11.8
FY17
2,420,250
3.8
3,220
1,984,470
1,987,690
82.1
432,560
17.9
84,650
347,910
27,230
87,090
407,770
0
407,770
93,520
22.9
314,250
314,250
14.6
13.0
FY18E
3,757,163
55.2
0
3,254,427
3,254,427
86.6
502,736
13.4
109,824
392,913
37,418
104,475
459,969
0
459,969
101,193
22.0
358,776
358,776
14.2
9.5
(INR Million)
FY19E
4,057,256
8.0
0
3,528,347
3,528,347
87.0
528,908
13.0
119,877
409,031
30,375
104,484
483,140
0
483,140
106,291
22.0
376,849
376,849
5.0
9.3
Standalone - Balance Sheet
Y/E March
Equity Share Capital
Eq. Share Warrants & App. Money
Total Reserves
Net Worth
Total Loans
Deferred Tax Liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Provisions
Net Current Assets
Appl. of Funds
E: MOSL Estimates
FY13
32,540
250
1,767,410
1,800,200
724,050
121,930
2,646,180
2,131,540
1,034,060
1,097,480
191,160
525,090
1,371,380
427,290
118,800
495,470
329,820
538,930
495,450
43,480
832,450
2,646,180
FY14
32,320
170
1,938,420
1,970,910
854,810
122,150
2,947,870
2,225,650
1,131,590
1,094,060
417,160
894,620
1,269,990
429,320
106,640
332,240
401,790
727,960
686,290
41,670
542,030
2,947,870
FY15
32,360
170
2,129,230
2,161,760
976,170
126,770
3,264,700
2,360,620
1,214,990
1,145,630
757,530
1,125,730
948,960
365,510
46,610
115,710
421,130
713,150
650,570
62,580
235,810
3,264,700
FY16
32,400
80
2,369,360
2,401,840
1,071,300
131,590
3,604,730
2,622,320
1,308,220
1,314,100
1,068,790
1,520,590
673,720
280,340
34,950
68,920
289,510
972,470
945,880
26,590
-298,750
3,604,730
FY17
32,510
0
2,850,620
2,883,130
1,013,030
247,660
4,143,820
3,057,900
1,689,080
1,368,820
1,504,370
1,924,500
669,770
340,180
54,720
17,540
257,330
1,323,640
1,289,780
33,860
-653,870
4,143,820
FY18E
32,510
0
3,157,644
3,190,154
650,000
247,660
4,087,814
3,557,650
1,523,981
2,033,669
897,198
1,924,500
1,045,414
317,319
53,216
475,891
198,988
1,812,967
1,735,780
77,187
-767,553
4,087,814
(INR Million)
FY19E
32,510
0
3,480,133
3,512,643
700,000
247,660
4,460,303
3,707,650
1,643,859
2,063,791
797,198
1,924,500
1,629,599
412,238
57,467
946,388
213,506
1,954,785
1,874,153
80,632
-325,186
4,460,303
24 April 2017
15

Reliance Industries
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
FY13
71.5
93.6
613.1
9.0
14.6
FY14
74.8
95.2
670.4
9.5
14.9
FY15
77.2
96.4
734.5
10.0
15.7
18.3
14.7
1.9
1.5
15.9
0.7
4.9
11.0
8.2
13.9
1.4
1.0
41
5
72
1.3
9.8
-0.1
FY16
93.0
114.1
814.7
10.5
13.5
15.2
12.4
1.7
2.2
12.9
0.7
118.8
12.0
8.9
21.2
0.9
0.6
44
5
148
0.7
12.5
-0.2
FY17
106.6
123.1
978.1
13.3
14.6
13.3
11.5
1.4
2.1
12.0
0.9
32.6
11.9
9.1
32.6
0.8
0.6
51
8
195
0.5
12.8
-0.3
FY18E
121.7
144.6
1,082.3
15.0
14.4
11.6
9.8
1.3
1.2
8.7
1.1
296.2
11.8
10.0
41.2
1.1
0.9
31
5
169
0.6
10.5
-0.5
FY19E
127.8
153.3
1,191.7
15.8
14.4
11.1
9.2
1.2
1.0
7.4
1.1
161.1
11.2
9.9
40.3
1.1
0.9
37
5
169
0.8
13.5
-0.6
0.6
66.9
12.1
9.6
11.8
1.7
1.4
43
12
50
2.5
7.0
-0.2
0.7
-18.4
11.7
9.2
12.7
1.8
1.3
40
10
64
1.7
6.9
-0.2
Standalone - Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
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
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
Dividend Paid
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
FY13
262,840
94,650
-52,810
59,460
364,140
710
364,850
-168,520
196,330
14,991
-153,529
-40,040
-41,040
-30,750
-111,830
99,491
395,979
495,470
FY14
278,180
87,890
-58,340
-51,630
256,100
220
256,320
-310,470
-54,150
-369,530
-680,000
-16,450
309,580
-32,680
260,450
-163,230
495,470
332,240
FY15
294,680
84,880
-67,490
174,450
486,520
4,620
491,140
-476,820
14,320
-231,110
-707,930
-750
36,600
-35,590
260
-216,530
332,240
115,710
FY16
360,160
85,900
-85,900
550,750
910,910
4,820
915,730
-565,630
350,100
-394,860
-960,490
2,820
32,150
-37,000
-2,030
-46,790
115,710
68,920
FY17
407,770
84,650
-93,520
156,000
554,900
116,070
670,970
-574,950
96,020
-403,910
-978,860
212,855
89,470
-45,815
256,510
-51,380
68,920
17,540
(INR Million)
FY18E
459,969
109,824
-101,193
572,034
1,040,634
0
1,040,634
-167,500
873,134
0
-167,500
0
-363,030
-51,753
-414,783
458,351
17,540
475,891
FY19E
483,140
119,877
-106,291
28,130
524,856
0
524,856
-50,000
474,856
0
-50,000
0
50,000
-54,360
-4,360
470,497
475,891
946,388
24 April 2017
16

Reliance Industries
Corporate profile
Company description
Exhibit 1: Sensex rebased
Reliance Industries Ltd (RIL), a Fortune 500
company, is India's largest private sector entity,
with a turnover of USD66.8b and net profit of USD3.
9b. Over the years, RIL has grown through backward
integration in energy chain (textiles, petchem,
refining and E &P) and is now moving into new
areas like organized retail and BWA. It operates one
of the largest refining capacity of 1.24mmbbl/d at a
single location and is the largest producer of
polyester fibre and yarn.
Source: MOSL/Bloomberg
Exhibit 2: Shareholding pattern (%)
Dec-16
Promoter
DII
FII
Others
45.1
12.3
24.2
18.5
Sep-16
45.1
12.5
23.7
18.7
Dec-15
45.2
13.2
21.9
19.7
Source: Capitaline
Exhibit 3: Top holders
Holder Name
LIC of India
Shares held by Subsidiary Companies on
which no voting rights are exercisable
Europacific Growth Fund
Reliance Chemicals Limited
Reliance Polyolefins Limited
% Holding
8.3
5.4
3.1
2.0
1.9
Source: Capitaline
Note: FII Includes depository receipts
Exhibit 4: Top management
Name
Mukesh D Ambani
Hital R Meswani
Nikhil Meswani
Pawan Kumar Kapil
PMS Prasad
K Sethuraman
Designation
Chairman & Managing Director
Executive Director
Executive Director
Executive Director
Executive Director
Company Secretary
Exhibit 5: Directors
Name
Nita M Ambani
Ashok Misra
Dipak C Jain
R A Mashelkar
Y P Trivedi
Name
Adil Zainulbhai
D V Kapur
M L Bhakta
Raminder Singh Gujral
Maheswar S Sahu
Source: Capitaline
*Independent
Exhibit 6: Auditors
Name
Bandyopadhyaya Bhaumik & Co
Chaturvedi & Shah
Deloitte Haskins & Sells LLP
Dilip M Malkar & Co
Diwanji & Associates
Type
Cost Auditor
Statutory
Statutory
Cost Auditor
Cost Auditor
Source: Capitaline
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY17
FY18
FY19
MOSL
forecast
106.6
121.7
127.8
Consensus
forecast
95.3
92.3
103.5
Variation
(%)
11.8
31.8
23.5
Source: Bloomberg
24 April 2017
17

Disclosures
Reliance Industries
This document has been prepared by Motilal Oswal Securities Limited (hereinafter referred to as Most) to provide information about the company (ies) and/sector(s), if any, covered in the report and may be distributed by it and/or its
affiliated company(ies). This report is for personal information of the selected recipient/s 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 general information and should not be reproduced or redistributed to any other person in any form. This report does not constitute a personal recommendation or take into account the particular investment
objectives, financial situations, or needs of individual clients. Before acting on any advice or recommendation in this material, investors should consider whether it is suitable for their particular circumstances and, if necessary, seek
professional advice. The price and value of the investments referred to in this material and the income from them may go down as well as up, and investors may realize losses on any investments. Past performance is not a guide for
future performance, future returns are not guaranteed and a loss of original capital may occur.
MOSt and its affiliates are a full-service, integrated investment banking, investment management, brokerage and financing group. We and our affiliates have investment banking and other business relationships with a some
companies covered by our Research Department. Our research professionals may provide input into our investment banking and other business selection processes. Investors should assume that MOSt and/or its affiliates are
seeking or will seek investment banking or other business from the company or companies that are the subject of this material and that the research professionals who were involved in preparing this material may educate investors
on investments in such business . The research professionals responsible for the preparation of this document may interact with trading desk personnel, sales personnel and other parties for the purpose of gathering, applying and
interpreting information. Our research professionals are paid on twin parameters of performance & profitability of MOSt.
MOSt generally prohibits its analysts, persons reporting to analysts, and members of their households from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover. Additionally, MOSt
generally prohibits its analysts and persons reporting to analysts from serving as an officer, director, or advisory board member of any companies that the analysts cover. Our salespeople, traders, and other professionals or affiliates
may provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein, and our proprietary trading and investing businesses may make investment
decisions that are inconsistent with the recommendations expressed herein. In reviewing these materials, you should be aware that any or all of the foregoing among other things, may give rise to real or potential conflicts of interest.
MOSt and its affiliated company(ies), their directors and employees 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 affiliates of MOSt even though there might exist an inherent
conflict of interest in some of the stocks mentioned in the research report Reports based on technical and derivative analysis center on studying charts company's price movement, outstanding positions and trading volume, as
opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamental analysis. In addition MOST has different business segments / Divisions with independent research
separated by Chinese walls catering to different set of customers having various objectives, risk profiles, investment horizon, etc, and therefore may at times have different contrary views on stocks sectors and markets.
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. Any statements contained in this report attributed to a third party represent MOSt’s interpretation of the data, information and/or opinions provided by that third party either publicly or through a
subscription service, and such use and interpretation have not been reviewed by the third party. This Report is not intended to be a complete statement or summary of the securities, markets or developments referred to in the
document. While we would endeavor 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 it’s associates may have managed or co-managed public offering of securities, may have received compensation for investment banking or merchant banking or brokerage services, may have received any compensation
for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months.
Most and it’s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report.
Subject Company may have been a client of Most or its associates during twelve months preceding the date of distribution of the research report
MOSt and/or its affiliates and/or employees may have interests/positions, financial or otherwise of over 1 % at the end of the month immediately preceding the date of publication of the research 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.
Motilal Oswal Securities Limited is registered as a Research Analyst under SEBI (Research Analyst) Regulations, 2014. SEBI Reg. No. INH000000412
Pending Regulatory inspections against Motilal Oswal Securities Limited:
SEBI pursuant to a complaint from client Shri C.R. Mohanraj alleging unauthorized trading, issued a letter dated 29th April 2014 to MOSL notifying appointment of an Adjudicating Officer as per SEBI regulations to hold inquiry and
adjudge violation of SEBI Regulations; MOSL replied to the Show Cause Notice whereby SEBI granted us an opportunity of Inspection of Documents. Since all the documents requested by us were not covered we have requested to
SEBI vide our letter dated June 23, 2015 to provide pending list of documents for inspection.
List of associate companies of Motilal Oswal Securities Limited -Click
here to access detailed report
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
Disclosure of Interest Statement
Analyst ownership of the stock
Served as an officer, director or employee
RELIANCE INDUSTRIES
No
No
A graph of daily closing prices of securities is available at www.nseindia.com and http://economictimes.indiatimes.com/markets/stocks/stock-quotes
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 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 Kong 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 Securities Limited (MOSL) 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 MOSL 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 MOSL, 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., MOSL 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
Motilal Oswal Capital Markets Singapore Pte Limited is acting as an exempt financial advisor under section 23(1)(f) of the Financial Advisers Act(FAA) read with regulation 17(1)(d) of the Financial Advisors Regulations and is a
subsidiary of Motilal Oswal Securities Limited in India. This research is distributed in Singapore by Motilal Oswal Capital Markets Singapore Pte Limited and it is only directed in Singapore to accredited investors, as defined in the
Financial Advisers Regulations and the Securities and Futures Act (Chapter 289), as amended from time to time.
In respect of any matter arising from or in connection with the research you could contact the following representatives of Motilal Oswal Capital Markets Singapore Pte Limited:
Varun Kumar
Varun.kumar@motilaloswal.com
Contact : (+65) 68189232
Office Address:21 (Suite 31),16 Collyer Quay,Singapore 04931
24 April 2017
Motilal Oswal Tower, Level 9, Sayani Road, Prabhadevi, Mumbai 400 025
Phone: +91 22 3982 5500 E-mail: reports@motilaloswal.com
Motilal Oswal Securities Ltd
18