20 July 2017

Motilal Oswal values your support in the

Asiamoney Brokers Poll 2017 for India

Research, Sales and Trading team.

We

request your ballot.

Today’s top research idea

L&T Finance (Initiating Coverage): Focused approach

Strong execution toward stated goals to boost profitability; Buy with TP of

INR180, 20% Upside

v

LTFH is a quintessential turnaround story, in our view. From a company with

20+ product lines and sub-standard return ratios, it is gradually transforming

itself to a focused financier with eight product lines across three verticals,

with a target to achieve 18-20% RoE by FY20 (~12% in FY17).

v

LTFH is one of the market leaders in many of the segments it operates in. A

well-diversified book, strong growth, and a decline in expense ratio and credit

costs should elevate RoA/RoE from 1.5%/12.4% in FY17 to 2.3%/19.2% in

FY20. While the stock has re-rated well over the past year due to strong

execution by management, we expect re-rating to continue. We thus initiate

coverage on LTHF with a Buy rating and TP of INR180 (3.0x FY19E BVPS).

Market snapshot

Equities - India

Close

Chg .%

Sensex

31,955

0.8

Nifty-50

9,900

0.7

Nifty-M 100

18,344

0.7

Equities-Global

Close

Chg .%

S&P 500

2,474

0.5

Nasdaq

6,385

0.6

FTSE 100

7,431

0.6

DAX

12,452

0.2

Hang Seng

10,861

1.0

Nikkei 225

20,021

0.1

Commodities

Close

Chg .%

Brent (US$/Bbl)

49

2.1

Gold ($/OZ)

1,240

0.2

Cu (US$/MT)

5,930

-0.7

Almn (US$/MT)

1,894

-0.6

Currency

Close

Chg .%

USD/INR

64.3

0.0

USD/EUR

1.2

-0.3

USD/JPY

112.1

-0.2

YIELD (%)

Close

1MChg

10 Yrs G-Sec

6.4

0.0

10 Yrs AAA Corp

7.5

0.0

Flows (USD b)

19-Jul

MTD

FIIs

0.2

0.2

DIIs

0.0

0.5

Volumes (INRb)

19-Jul

MTD*

Cash

325

281

F&O

5,448

5,145

Note: YTD is calendar year, *Avg

YTD.%

20.0

20.9

27.8

YTD.%

10.5

18.6

4.0

8.5

15.6

4.7

YTD.%

-11.3

6.9

7.4

11.2

YTD.%

-5.2

9.3

-4.3

YTDchg

-0.1

-0.1

YTD

8.7

3.7

YTD*

285

4,933

Research covered

Cos/Sector

L&T Finance

Tata Steel

Bajaj Finance

UltraTech Cement

Aurobindo Pharma

Havells India

Canara Bank

Sanofi India

Mindtree

KPIT Tech

H T Media

Hindustan Media

Key Highlights

Focused approach; Buy with TP of INR180, 20% Upside

EBITDA growth was offset by WC in FY17

Getting better by the day

Volumes disappointment offset by better pricing

Launch of niche product bodes well for near-term growth

Results meaningfully below estimates

Slippages remain elevated; One off gains help PPoP

Weak results; margin improvement is key

Dragged by acquisitions, top clients and standalone margins

Revenue beat led by one-time license fees; Margin disappoints

GST impacts ad growth, cost efficiencies lead to margin beat

GST-led pain impacts ad growth

ABB | Alembic Pharma | Bajaj Auto | DB Corp | Hind.Zinc | Kotak Mah.

Results Expectation

Bank | NIIT Tech | RBL Bank | Reliance Inds | Wipro | Zensar Tech

Piping hot news

Cabinet clears HPCL stake sale to ONGC, but combo entity falls short of

mega scale

v

State-run hydrocarbon producer ONGC will buy the government’s 51.1% stake

in public-sector oil refiner-cum-marketer HPCL ...

Chart of the Day: L&T Finance Holdings: Key changes introduced to drive shareholder value

Steps taken to enhancing shareholder value

Research Team (Gautam.Duggad@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.

In the news today

Kindly click on textbox for the detailed news link

1

Tata group is said to mull

moving most tech ops under

TCS

Tata group, the Indian

conglomerate that manages more

than 100 operating companies, is

weighing a plan to streamline its

technology and infrastructure

businesses, people with

knowledge of the matter said. …

2

Banks may have to take a haircut of Rs 2.4 lakh crore in order to resolve

the 50 largest stressed assets in the system, according to a report by Crisil.

These 50 assets have a cumulative debt of over Rs4.3 lakh crore and account

for about half the gross non-performing assets (NPAs) of the banking

sector. “The analysis shows these 50 large stressed assets may have to

take haircuts of ~60% at an aggregate level, to arrive at sustainable level of

debt,” the ratings agency said in the report on Wednesday...

Bad loans crisis: In shocking revelation, banks may take Rs 2.4 lakh

crore haircut just to resolve 50 top NPA accounts

3

The promoters of InterGlobe

Aviation Pvt. Ltd, which runs

IndiGo airlines, will reduce their

stake in the airline operator to

meet regulatory norms on

minimum public shareholding, the

company said on Wednesday…

IndiGo to pare promoter stake

to meet minimum public

shareholding norms

4

Bhushan Steel, Bhushan Power

insolvency cases: NCLT

reserves order; bench

questions need for RBI to step

in

5

Trai in undue haste to decide

on IUC: COAI

Telecom operators’ body Cellular

Operators Association of India

(COAI) has said the Telecom

Regulatory Authority of India

(Trai) is showing “undue haste” in

concluding the review of the

interconnect usage charge (IUC), a

key component of mobile tariffs,

and has urged the regulator to

provide the operators with the

past and current models used in

calculating the mobile termination

charges…

The New Delhi bench of the

National Company Law Tribunal

(NCLT) on Wednesday reserved

orders on two separate insolvency

petitions — State Bank of India

(SBI) versus Bhushan Steel and

Punjab National Bank…

6

The Tata group has informally

sought details on the planned

privatisation of Air India, a

government official said, reflecting

the group’s interest in the airline it

founded in 1932…

7

Chennai Metro Rail: Big boost

for Tamil Nadu infrastructure,

state to take up Rs 89,000 cr

phase II project

Tata group said to have sought

details of Air India

disinvestment

In what could be a big boost to the

state’s infrastructure, the Tamil

Nadu government has decided to

take up phase II of the Chennai

Metro Rail project, envisaging a

cost of Rs 88,897 crore...

20 July 2017

2

L&T Finance Holdings

BSE Sensex

31,955

S&P CNX

9,900

Initiating Coverage | Sector: Financials - NBFC

CMP: INR150

TP: INR180 (+20%)

Buy

Focused approach

Strong execution toward stated goals to boost profitability

n

L&T Finance Holdings (LTFH) is a quintessential turnaround story, in our view.

From a company with 20+ product lines and sub-standard return ratios, it is

gradually transforming itself to a focused financier with eight product lines across

three verticals, with a target to achieve 18-20% RoE by FY20 (~12% in FY17).

Stock Info

Bloomberg

Equity Shares (m)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

M.Cap. (INR b)

M.Cap. (USD b)

12M Avg Val (INR M)

Free float (%)

LTFH IN

1817.2

153/74

-1/38/85

272.6

4.1

644

33.4

n

The company has identified three segments to focus on – wholesale, housing and

rural finance, which comprise 62%, 19% and 15% of the total loan book,

respectively. While the rural and housing segments have already achieved 20%+

RoE, going forward, wholesale financing (RoE- FY17: 11%, FY20E: 16%) will be the

key driver of profitability improvement.

Financial Snapshot (INR b)

Y/E March

2017 2018E 2019E

NII

31.4

35.7 40.5

PPP

26.7

35.3 40.5

PAT

9.2

13.0 17.4

EPS (INR)

5.2

7.2

9.6

BV/Sh. INR

44.3

50.8 59.0

RoAA (%)

1.5

1.8

2.0

RoE (%)

12.4

15.3 17.5

Payout (%)

19.8

15.2 14.9

Valuation

P/E (x)

28.6

20.9 15.6

P/BV (x)

3.4

3.0

2.5

Div. Yld (%)

0.6

0.6

0.8

Shareholding pattern (%)

As On

Mar-17 Dec-16 Mar-16

66.6

66.7

66.7

Promoter

3.7

3.6

1.8

DII

11.3

10.1

8.8

FII

18.4

19.7

22.7

Others

FII Includes depository receipts

n

Strong growth and a decline in expense ratio and credit costs should elevate

RoA/RoE from 1.5%/12.4% in FY17 to 2.3%/19.2% in FY20. While the stock has re-

rated well over the past year on account of strong execution by management, we

expect re-rating to continue. We thus initiate coverage on LTHF with a Buy rating

and a target price of INR180 (3.0x FY19E BVPS).

Primary focus on achieving top-quartile RoE

After the appointment of Mr Dubhashi as MD & CEO in July 2016, LTFH’s primary

goal has been to generate top-quartile RoE for its shareholders. In order to

achieve this, LTFH has identified three key segments (rural, housing and

wholesale finance) to focus on, and is running-down the de-focused businesses.

It has focused on cost-cutting measures, and is also investing in technology in a

big way. While credit costs on the wholesale finance business were elevated

over the past few years due to legacy asset quality issues, they are expected to

moderate going forward due to better underwriting post 2012. We believe LTFH

is on track to achieve 35% PAT CAGR over FY17-20, with RoE of 19% by FY20.

Wholesale finance – Significant RoE improvement ahead

Wholesale finance has traditionally been the key business for LTFH. The loan

book stands at INR414b, with the product suite comprising infrastructure

finance (thermal, renewables and operating roads), structured finance and

supply chain finance. LTFH is the second largest renewable energy financier in

the country, and has consolidated its position led by its quick and skillful project

appraisal skills. While this segment has legacy asset quality issues, the loan book

written post 2012 has nil NPLs. The key focus in this segment is to generate and

sell-down loans in order to generate strong fee income. Loan growth is expected

to be in the range of 10-15%. With improving fee income, coupled with lower

incremental credit costs, this segment is poised to generate 15-16% RoE FY19

onward, in our view.

L&T Finance Holdings

Focused approach

Piran Engineer

+

91 22 3980 4393

Piran.Engineer@motilaloswal.com

20 July 2017

3

Stock Performance (1-year)

Housing finance – Diverse product suite; 20%+ CAGR ahead

LTFH has a housing finance book of INR125b with a diversified product suite,

comprising home loans, LAP, construction finance and LRD. Home loans and LAP

constitute 60% of the overall book, while corporate loans account for the remaining.

The company conducts business from its 24 branches in the top 6-7 cities. Over the

past few quarters, LTFH has shifted its focus toward the self-employed non-

professional (SENP) segment for home loans. It has also stopped disbursing DSA-

sourced salaried loans due to the lack of profitability. LTFH’s biggest competitive

advantage in this segment is the strong relationships that its peer group companies

– L&T Realty and L&T ECC – enjoy in the industry. We expect the segment to grow at

20%+ CAGR over the medium term, with 18-19% run-rate RoE.

Rural Finance – Well-diversified; Top 3 player in tractor finance

LTFH has a rural finance book of INR100b, comprising three key products –

microfinance, two-wheeler finance and tractor finance. The company has a

differentiated model in microfinance, wherein, unlike peers, there is no concept of a

group leader. Also, most of the loans are for a tenure of two years, which reduces

the EMI burden. LTFH does not disburse loans to borrowers not producing their

Aadhar Card. LTFH entered the 2W financing business via the acquisition of Family

Credit. The business has ramped up well over the years, and the company now

finances 350,000 two-wheelers per year (implying 7% market share). The company

is one of the top three players in tractor financing, with estimated market share of

8-9%. It has tie-ups with several leading OEMs like TAFE, Mahindra and Sonalika.

Overall, rural financing is the most profitable segment for LTFH, with RoE of ~22%.

Management intends to allocate maximum capital to this segment to grow the

business.

Improving return ratios, strong growth; Initiating with Buy

We believe LTFH is well poised to deliver 16% loan book CAGR over FY17-20E, driven

by 20%/25% growth in rural/housing finance. We believe that the company is well

capitalized to achieve this growth and would not require any dilution. RoA/RoE are

expected to improve to 2.3%/19.2% by FY20E. Asset management and wealth

management subsidiaries have recently turned around and gaining scale – we

expect them to be the key value contributors over the medium term. We value the

company at 3.0x FY19E BV, based on the residual income model. Our key

assumptions are Rf of 7.0%, CoE of 13% and a terminal growth rate of 5%. We thus

initiate coverage with a

Buy rating and a target price of INR180.

Exhibit 1:

Peer comparison

Company

LTFH

CIFC

SHTF

MMFS

BAF

SCUF

Price

150

1,148

975

357

1,544

2,290

Market Cap

(INR b)

274

180

220

203

848

153

AUM

(INR b)

FY17

660

342

788

468

602

231

FY17-20E

AUM

CAGR

16

19

13

16

33

19

RoA (%)

FY17 FY20E

1.7

2.3

2.6

3

2

2.5

1

1.8

3.3

3.6

2.7

3.9

RoE (%)

FY17 FY20E

12.4

19.2

18.1

20.3

11.7

16.3

6.4

14.2

21.7

27.7

11.8

18.1

P/B

FY18E FY19E

3.0

2.5

3.6

3.0

1.7

1.5

2.9

2.7

7.1

5.7

2.7

2.3

P/E

FY18E FY19E

20.9

15.6

20.9

17.3

12.4

9.9

26.3

21.8

32.0

23.9

17.5

13.6

Source: Company, MOSL

20 July 2017

4

Tata Steel

BSE SENSEX

31,955

S&P CNX

9,900

19 July 2017

Update

| Sector:

Metals

CMP: INR571

TP: INR583(+2%)

Neutral

Annual report: EBITDA growth was offset by WC in FY17

Ind-AS revaluation depresses return ratios, net-debt- to-EBITDA

Analysis of Tata Steel’s (TATA) FY17 is of particular significance because of Ind-AS

introduction. Comparison of re-stated FY16 Ind-AS financials with previously reported

IGAAP brings out many insights.

Stock Info

Bloomberg

Equity Shares (m)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

M.Cap. (INR b)

M.Cap. (USD b)

Avg Val ( INRm)/Vol m

Free float (%)

TATA IN

971.2

572 / 349

11/5/39

546.6

8.6

3013 / 6.8

68.7

Financials Snapshot (INR b)

Y/E Mar

2017 2018E

Net Sales

1,123 1,214

EBITDA

170

186

PAT

37

48

EPS (INR)

37.9

49.6

Gr. (%)

394.2

30.8

BV/Sh (INR)

330

362

RoE (%)

15.7

14.3

RoCE (%)

9.4

9.9

P/E (x)

15.1

11.5

P/BV (x)

1.7

1.6

2019E

1,232

203

64

65.6

32.2

418

16.8

10.5

8.7

1.4

Shareholding pattern (%)

Jun-17 Mar-17 Jun-16

As On

Promoter

DII

FII

Others

31.9

30.8

13.9

23.4

31.4

30.6

14.1

23.9

31.4

27.2

13.3

28.2

FII Includes depository receipts

Standalone EBITDA for FY16 is boosted by INR3.4b, as long-term power supply

arrangement is now finance lease, which has increased debt by INR16.9b.

n

EPCG benefits are now deferred income; this has increased gross block (hence

depreciation) and non-cash EBITDA (INR3.4b in FY17).

n

TSE-LP disposal:

Ind-AS FY16 financials have excluded disposed assets, which

contributed loss of INR1.8b to EBITDA. TATA received

negative consideration

of INR19.6b,

which was over and above INR4b net working capital.

n

TSE turnaround is largely attributable to reduction in repair & maintenance,

GBP depreciation, and some expansion in spreads in FY17.

n

Accounting of JVs on equity method has reduced net debt by INR54b and

EBITDA by just INR2b, thereby benefitting EV/EBITDA.

n

Book value is inflated by INR132/share to INR425/share on fair valuation of

assets and goodwill is trimmed by INR100/share to INR42/share in FY16.

n

All the

return ratios (RoE, RoCE, RoIC, asset turn) have declined under Ind-AS.

Net-debt-to-equity declined sharply. On the other hand, EBITDA margin has

improved under Ind-AS for TATA.

n

Working capital ate away EBITDA growth in FY17:

Despite a strong growth in

EBITDA from INR80b in FY16 to INR170b in FY17, operating cash flows actually

dipped due to major swing in working capital. Disposal of assets was associated

with INR10.8b cash outflow. TATA had to borrow INR27b incrementally, though

net debt increase is lower at INR13b on translation gain.

Expect strong operating performance on strong steel pricing and spreads

n

Fair valuation of assets under Ind-AS has rendered traditional tools of valuation

(e.g. P/BV) and leverage (e.g. debt/equity) useless. We need to now rely solely

on cash generation potential, even for the cyclical steel industry.

n

TATA witnessed strong growth in EBITDA, though FCF was still negative in FY17.

We expect stronger operating performance but still do not expect FCF

generation because of pending BRPL acquisition and BPS payouts in FY18.

However, we expect FCF generation and reduction in net debt in FY19.

n

The global steel market has been stronger than our expectation, as Chinese

steel demand has surprised positively so far in CY17. It is difficult for China to

sustain high demand growth at such a high base, in our view. Therefore, we are

cautious on the steel price outlook.

n

TATA operates in India and Europe, where the markets are protected against

dumping. More protection is expected in Europe by October. This may drive

upgrades for TSE. Protection does help in the short term, but is never water

tight, in our view. We maintain

Neutral.

n

20 July 2017

5

19 July 2017

1QFY18 Results Update | Sector: Financials

Bajaj Finance

Buy

BSE SENSEX

31,955

Bloomberg

Equity Shares (m)

M.Cap.(INR b)/(USD b)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

Avg Val, (INR m)

Free float (%)

S&P CNX

9,900

BAF IN

546.9

843.8/13.1

1578 / 762

7/50/63

1518

42.1

CMP: INR1,543

Getting better by the day

n

TP: INR1,800 (+17%)

n

Financials & Valuations (INR b)

Y/E March

2017 2018E 2019E

NII

54.7 77.4 99.8

PPP

36.4 52.5 68.2

PAT

18.4 26.0 34.4

EPS (INR)

33.6 47.6 62.9

EPS Gr. (%)

40.7 41.8 32.1

BV/Sh. (INR)

175.6 216.2 269.9

RoA on AUM (%)

3.3

3.5

3.5

RoE (%)

21.7 24.3 25.9

Payout (%)

14.0 14.0 14.0

Valuations

P/E (x)

45.9 32.4 24.5

P/BV (x)

8.8

7.1

5.7

Div. Yield (%)

0.2

0.2

0.3

n

n

n

Bajaj Finance’s (BAF) 1QFY18 PAT increased 42% YoY to INR6b (4% beat).

However, this belies its strong operating performance – PPoP grew 46% YoY

(6% beat), driven by robust AUM growth of 39% YoY, and margins expanded

strongly by 90bp YoY to 12.9%.

AUM continued its robust growth trajectory (+39% YoY, +4.4% QoQ) to reach

INR688b, led by impressive growth in consumer finance (+43% YoY) and

commercial business (+68%). Within consumer business, personal cross-sell

loans grew 59% YoY to INR69.6b (tenth consecutive quarter of 50%+ AUM

growth), while salaried home loans rose 83% YoY. The company’s penetration

of Bajaj 2Ws remained at 37%.

Management is bullish on the prospects of REMI card financing and mobile

financing, going forward. Also, according to management, there are over 40m

people with a prime CIBIL score, of which only 25-30% are BAF’s customers.

The company plans to further penetrate in this segment.

GNPLs remained stable at 1.7% in 1QFY18 (at 90dpd). The company took

provisions of INR240m due to asset quality problems in the 2W portfolio and

INR180m on legacy infrastructure lending NPLs. Management has guided that

there will be another hit of ~INR300-400m for the 2W portfolio over the next

two quarters.

Valuation and view:

BAF – a dominant player in the consumer durables

financing segment – continues to reap the benefits of healthy consumer

demand, increasing its market share in consumer and also other businesses.

At the same time, it is proactive in detecting early warning signals with regard

to asset quality. We raise FY18E/19E EPS by 1/2%, and increase TP to INR1,800

(6.6x FY19E BVPS).

Buy.

20 July 2017

6

Ultratech Cement

BSE SENSEX

31,955

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

9,900

UTCEM IN

274.4

1,157.5 / 17.9

4531 / 3052

-1/5/5

1156

37.8

20 July 2017

1QFY18 Results Update | Sector: Cement

CMP: INR4206

n

TP: INR4,936 (+17%)

Buy

Volumes disappointment offset by better pricing

Domestic volumes decline 1% YoY:

1QFY18 revenue increased 6% YoY to

INR66.26b, lower than our estimate of INR67.55b due to volumes

disappointment. Volumes (including white cement and putty) were flat at

13.2mt (est. of 13.7mt) as domestic grey cement volumes declined 1% YoY.

This was partially offset by higher exports (+30% YoY).

EBITDA beat led by margin expansion:

Blended realization increased 7% QoQ

to INR5,025/t, led by healthy pricing in its focus markets. Grey cement

realization rose 9% YoY to INR4,481/ton due to improved pricing across most

markets. Power & fuel cost/t increased 32% YoY due to the impact of higher

petcoke prices. Freight cost rose 3% YoY due to ~9% YoY increase in diesel

prices, partially offset by efficiency improvements. EBITDA thus increased 10%

YoY to INR15.6b (higher than our estimate of INR14.7b due to better pricing),

translating into EBITDA/ton of INR1183 (+INR274/t QoQ; +INR105/t YoY) and

margin of 23.5% (+0.7pp YoY; +4pp QoQ).

Management commentary:

1) JPA assets are operating at utilization of less

than 15%, which is likely to go up to 60% by 1QFY19 and 70% by end-FY19. 2)

Present EBITDA/t of JPA assets is ~INR400, even at 15% utilization, led by

incentives. 3) EBITDA/ton is likely to be impacted in 2QFY18 due to

expenditure on integration of new assets and rebranding activities.

Valuation view:

While the acquisition of JPA would be earnings-dilutive in the

short term, we believe addition of ~31% of the present capacity at virtually

zero lead time is critical for a large-scale player like UTCEM to retain market

share. The expanded capacity would give it an edge when there is an upturn.

We value the stock at FY20E EV/EBITDA of 14x. Our target price of INR4,936

implies 17% upside.

(INR Million)

FY18E

58.2

19.1

4,988

4.7

297,000

61,581

20.7

16,789

13,643

4,750

35,899

10,770

30.0

25,130

25,130

-4.7

FY17

2Q

3Q

10.87

11.40

0.6

-0.6

4,827

4,781

-2.9

-0.1

2.2

-0.9

53,966 56,091

10,938 11,135

20.3

19.9

3,139

3,156

1,367

1,293

2,335

970

8,767

7,655

2,757

2,021

31.4

26.4

6,011

5,634

6,011

5,634

31.4

6.7

4Q

13.68

-0.2

4,689

3.2

-1.9

65,953

12,782

19.4

3,357

1,529

2,401

10,297

3,276

32.2

6,883

6,976

-10.7

1Q

12.90

-0.1

5,025

6.4

7.2

66,265

15,601

23.5

3,098

1,285

1,652

12,870

3,963

30.8

8,906

8,906

14.9

FY18

2QE

3QE

12.78

14.72

17.5

29.1

4,907

5,038

1.7

5.4

-2.4

2.7

64,283 75,926

11,630 14,406

18.1

19.0

4,500

4,550

4,060

4,060

1,200

1,300

4,270

7,096

1,759

2,900

41.2

40.9

2,511

4,196

2,511

4,196

-58.2

-25.5

FY17

4QE

17.81

30.2

4,978

6.2

-1.2

90,527

19,944

22.0

4,641

4,238

598

11,664

2,148

18.4

9,516

9,516

36.4

48.9

1.6

4,762

-0.8

238,914

49,690

20.8

12,679

5,714

6,600

37,896

11,482

30.4

26,277

26,372

11.3

Financials & Valuations (INR b)

Y/E Mar

2017 2018E 2019E

Net Sales

238.9 297.0 374.4

EBITDA

49.7

61.6

82.3

PAT

26.4

25.1

38.1

EPS (INR)

96.1

91.5 138.8

Gr. (%)

11.3

-4.7

51.6

BV/Sh (INR)

872.1 943.6 1,036.6

RoE (%)

11.6

10.1

14.0

RoCE (%)

9.7

8.5

9.9

P/E (x)

41.8

43.9

29.0

P/BV (x)

4.6

4.3

3.9

n

n

n

Quarterly Performance

Y/E March

Sales (m ton)

YoY Change (%)

Blended Realn.(INR/ton) *

YoY Change (%)

QoQ Change (%)

Net Sales

EBITDA

Margins (%)

Depreciation

Interest

Other Income

PBT before EO expense

Tax

Rate (%)

Reported PAT

Adj PAT

YoY Change (%)

1Q

12.91

6.3

4,723

-1.5

3.9

62,295

14,225

22.8

3,027

1,525

1,504

11,177

3,428

30.7

7,749

7,749

28.3

20 July 2017

7

Aurobindo Pharma

BSE SENSEX

31,955

S&P CNX

9,900

19 July 2017

Update

| Sector:

Healthcare

CMP: INR767

TP: INR850(+11%)

Buy

Launch of niche product bodes well for near-term growth

Stock Info

Bloomberg

Equity Shares (m)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

M.Cap. (INR b)

M.Cap. (USD b)

Avg Val, INRm

Free float (%)

ARBP IN

585.2

895 / 504

15/-10/-14

397.3

6.1

1824

48.1

Financials Snapshot (INR b)

2017 2018E 2019E

Y/E Mar

Net Sales

150.9 171.2 189.3

EBITDA

34.3

40.9

44.7

PAT

23.0

26.7

29.3

EPS (INR)

39.3

45.7

50.0

Gr. (%)

13.6

16.2

9.5

BV/Sh (INR)

157.4 200.6 248.2

RoE (%)

28.3

25.5

22.3

RoCE (%)

19.1

19.5

18.2

P/E (x)

19.5

16.8

15.3

P/BV (x)

4.9

3.8

3.1

Shareholding pattern (%)

As On

Jun-17 Mar-17 Jun-16

Promoter

51.9

51.9

53.8

DII

14.2

12.8

8.0

FII

19.6

21.0

26.1

Others

14.3

14.4

12.1

FII Includes depository receipts

Stock Performance (1-year)

Aurobindo Pharma

Sensex - Rebased

900

800

700

600

500

Key catalysts in place to drive medium-term earnings too

n

Receives approval for Renvela in US:

ARBP has received final USFDA approval

to manufacture sevelamer carbonate tablet 800mg (brand name – Renvela;

innovator – Genzyme) in the US. Notably, ARBP is the first generic player to

receive approval for Renvela, which is indicated for the control of serum

phosphorus in patients with chronic kidney disease on dialysis.

n

Only player in the USD800m market:

According to the IMS, the estimated

market size of this product is USD1.9b for the 12 months ended May 2017.

Primary sales booked by the innovator for Renvela/Renagel stood at ~USD1b

(estimated market for Renvela expected to be ~USD800m) in CY16. ARBP has

already received approval for sevelamer carbonate oral suspension from the

US FDA in June-17 (IMS estimates market size of USD140m).

n

Limited-competition product:

Although there are at least eight generic filers

for Renvela (ARBP, Cipla, Mylan, Sandoz, DRRD, Lupin, Impax and Glenmark),

only ARBP has received approval by now. ARBP was one of the late filers for

this product, but since most other players have received CRLs (due to

complexity at API level), Renvela may remain a limited-competition product in

near term. Impax expects to launch the product by late 2017/early 2018, while

Cipla guides for launch by 3QFY18. LPC/GNP may not be able to launch in FY18.

n

Renvela sales will explain 12-14% of FY18 PAT:

We expect ARBP to generate

~USD120-140m of sales on annualized basis (~USD100-120m in FY18),

assuming that 2-3 more players are able to launch in FY18. Ranvela will help

explain >12-13% of FY18E PAT for ARBP. However, in FY19, the contribution

will come down significantly due to competition from at least 7-8 players.

n

Pricing risk lowest among peers:

No single product for ARBP contributes more

than 3% of sales (unlike SUNP, LPC and DRRD, where the top-3 products

account for >20-25% of sales). Also, no single ANDA has any meaningful

disproportionate contribution to margins, as ARBP has a matured product

basket with all ~200 launched ANDAs facing competition from multiple players

(typically 4-5 or more).

n

R&D expense to remain range bound in near term:

We expect ARBP to file 35-

40 ANDAs in FY18 (including 6-7 controlled substance and 10-15 oncology &

hormones). Oncology & hormones-related R&D expense will be entirely borne

by Eugia JV. We expect R&D expense for ARBP to not inch up beyond 5.5% in

FY18 and 7% in FY19.

n

Maintain Buy:

We expect ARBP’s share price to remain range bound in the

near term as it has moved up ~50% in less than two months. However, the key

catalysts in 2HFY18 (e.g., launch of Fondaparinux, Toprol XL, DTG combination,

injectables business ramp-up, and EU business margins improvement) will help

drive growth in the medium term. ARBP remains one of our top picks in the

sector, with a target price of INR850 @ 17x FY19E PER (v/s INR750 @ 15x

FY19E earlier). We have increased our target multiple due to enhanced

visibility of growth and FCF generation.

20 July 2017

8

19 July 2017

1QFY18 Results Update | Sector: Capital Goods

Havells India

Neutral

BSE SENSEX

31,955

Bloomberg

Equity Shares (m)

M.Cap.(INR b)/(USD b)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

Avg Val. (INR m)

Free float (%)

S&P CNX

9,900

HAVL IN

624.6

321.0 / 4.7

525 / 304

-8/4/15

623

38.4

CMP: INR467

n

TP: INR455 (-3%)

Results meaningfully below estimates

Financials & Valuations (INR b)

2017 2018E 2019E

Y/E Mar

Net Sales

61.4

84.2 100.3

EBITDA

8.2

10.2

13.1

Adj PAT

6.0

6.8

8.6

Adj EPS (INR)

9.6

10.9

13.8

EPS Gr. (%)

17.1

14.4

26.0

BV/Sh(INR)

52.4

58.7

66.6

RoE (%)

18.2

18.6

20.7

RoCE (%)

18.2

18.5

21.1

P/E (x)

48.9

42.7

33.9

P/BV (x)

8.9

8.0

7.0

Estimate change

TP change

Rating change

n

n

n

n

Operating performance meaningfully below expectations:

Revenues grew

26.8% YoY to INR18.5b in 1QFY18, in line with our estimate. Operating profit of

INR1.7b (-14% YoY) was meaningfully below our estimate of INR2.5b – this

includes INR130m of non-recurring charge for the Lloyd acquisition. PAT of

INR1.2b (-16.6% YoY) too missed our estimate of INR1.7b.

Core business (ex-Lloyd) grows at muted 9% YoY due to GST impact:

Although

core business revenue of INR17.2b was in line with our estimate, there was a

stark difference in the product mix. Barring the cables & wires segment

(+19.5% YoY), all other segments witnessed a significant decline in primary off-

take by channel partners on account of GST implementation. Operating profit

declined 20% YoY to INR1.6b, and adjusted EBIDTA margin shrunk 360bp YoY to

10% due to adverse product mix, higher ad spend (3.5% v/s 3.3% in 1QFY17),

delayed pass-through of higher raw material costs and higher employee cost.

Net profit declined 22% YoY to INR1.1b.

Newly acquired Lloyd’s consumer business grows 20% YoY:

The newly

acquired Lloyd business recorded revenue of INR2.7b (+20% YoY). Operating

profit stood at INR128m and EBIDTA margin at 4.8%. HAVL had completed the

Lloyd acquisition by 8 May 2017, and thus this new business reflects financials

of 50 days. Management indicated that Lloyd’s quarterly performance has

been in line with its initial plans on growth and margins.

Working capital cycle at multi-year low:

Core net working capital cycle

contracted to -19 days from 6 days in 4QFY17. Creditor days were up to 107

from 63 in 4QFY17 due to extended credit cycle provided by Lloyd’s vendors.

Valuation and view:

We cut our earnings estimate for FY18/19 by 9/5% to

factor in weaker-than-estimated Lloyd’s sales and pressure on operating

margins (due to higher ad spend and employee cost). Maintain

Neutral

with a

revised TP of INR455, ascribing 33x P/E (20% premium to five-year average)

multiple on its FY19E EPS of INR13.8.

FY17

2Q

3Q

4Q

14,522 15,060 17,102

8.7

13.2

17.2

2,034 1,907 2,296

7.6

4.0

3.5

14.0

12.7

13.4

308

301

308

19

15

71

253

264

419

0.0 189.5 (768)

2,030 1,877 2,337

572

537

622

28.2

28.6

26.6

1,458 1,530

947

22.0

27.6 -74.1

1,409 1,135 1,715

17.0

-4.0

5.0

FY18

FY17 FY18E MOSL

2QE

3QE

4QE

1QE

20,131 21,044 26,456 61,353 86,211 18,528

38.6

39.7

54.7

6.2

40.5

26.3

2,587 2,733 4,162 8,241 11,207 2,545

27.2

43.3

81.3

9.2

36.0

27.0

12.8

13.0

15.7

13.4

13.0

13.7

380

400

1 1,196 1,117

350

20

20

47

122

121

40

140

150

-45 1,343

593

200

-

-

-

0.0

2,327 2,463 4,069 8,266 10,561 2,355

651

677 1,118 2,298 2,936

659

28.0

27.5

27.5

27.8

27.8

28.0

1,675 1,786 2,951 5,969 7,626 1,695

14.9

16.7 211.6 -34.2

27.8

16.5

1,675 1,786 2,951 5,969 7,626 1,695

18.9

57.3

72.1

16.9

27.8

16.9

Quarterly Performance (Standalone)

Y/E March

Sales

Change (%)

Adj. EBITDA

Change (%)

Adj. EBITDA margin (%)

Depreciation

Interest

Other Income

Extra-ordinary Items

PBT

Tax

Effective Tax Rate (%)

Reported PAT

Change (%)

Adj. PAT

Change (%)

E: MOSL Estimates

1Q

14,668

17.1

2,004

23.7

13.7

280

16

314

-

2,022

567

28.0

1,456

36.3

1,456

22.2

(INR Million)

Var.

0.4%

-32.2%

1QE

18,605

26.8

1,724

-14.0

9.3

336

34

348

-

1,703

489

28.7

1,214

-16.6

1,214

-16.6

-27.7%

-28.4%

-28.4%

20 July 2017

9

19 July 2017

1QFY18 Results Update | Sector: Financials

Canara Bank

Neutral

BSE SENSEX

31,955

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

9,900

CBK IN

543.0

148.0/2.2

415 / 231

2/16/32

1192

33.7

CMP: INR371

n

TP: INR360 (-3%)

Slippages remain elevated; One off gains help PPoP

Canara Bank’s (CBK) PBT declined 18% YoY to INR2.7b, missing our estimate by

~68% due to elevated provisions of INR22.0b (94% higher than our estimate).

Loan growth stood muted at 8% YoY due to 11% YoY decline in infra loans (13%

of advances), despite retail/SME loans growing 8%/12% YoY.

Reported NIM expanded 11bps QoQ to 2.34% (domestic NIM at 2.56%). NII

grew 0%/18% QoQ/YoY. Adjusting for INR1.25b of interest on IT refund in

4QFY17, NII grew 5% QoQ. 1QFY18 NII had INR800-900m of interest reversals.

Gross slippages of INR55b (+78% QoQ) had INR7.92b contribution from

demonetization moratorium and ~INR27.2b from 3-4 bulky corporate accounts.

Absolute GNPA increased 10% QoQ to INR377b, while GNPA/NNPA stood at

10.56%/7.09% (+93bp/+76bp QoQ). Total stressed book stood at 14% of

advances.

Other highlights:

(a) Non-interest income grew 33% YoY, aided by gain on

CARE stake sale and INR1.3b of PSLC sales income. (b) CET1 ratio/tier 1

ratio/CAR stood at 8.72%/9.57%/12.61%.

Valuation and view:

Net stress addition has increased after a few quarters of

decline. Given the weak operating environment, we would wait and watch

developments in asset quality. Our SOTP-based target price stands at INR360

(0.5x June 2019E BV + INR70 for other investments); we have lowered our

valuation multiple slightly from 0.6x FY19E BV last quarter due to prolonged

provisioning pressure. Maintain

Neutral.

n

Financials & Valuations (INR b)

Y/E March

2018E 2019E 2020E

NII

113.0 124.5 144.1

OP

93.4

99.7 116.3

NP

18.0

28.1

37.2

EPS (INR)

30.1

47.0

62.3

EPS Gr. (%)

60.1

56.4

32.5

BV/Sh. (INR)

498

540

595

RoE (%)

6.2

9.1

11.0

RoA (%)

0.3

0.4

0.5

P/E (x)

12.3

7.9

6.0

P/BV (x)

0.7

0.7

0.6

n

n

n

20 July 2017

10

19 July 2017

Q2CY17 Results Update | Sector: Healthcare

Sanofi India

Buy

BSE SENSEX

31,955

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

9,900

SANL IN

23

96.9 / 1.5

4930 / 3990

1/-16/-21

43

39.6

CMP: INR4,209

n

TP: INR4,820(+15%)

Weak results; margin improvement is key

Sanofi India (SANL) reported weak 2QCY17 results. Revenue declined 1.2% YoY

to INR6b (~10.6% miss). EBITDA declined ~21% YoY to INR1.2b (18.4% miss),

with the margin coming in at 19.2% v/s 24% in the year-ago period. PAT too fell

13.6% YoY to INR737m (~16% miss). The muted operational performance can

mainly be ascribed to down-stocking in trade channel in anticipation of GST

implementation.

Low-single-digit revenue decline coupled with weak margins:

SANL’s sales

declined 1.2% YoY in 2QCY17. According to AIOCD, secondary sales growth for

the company stood at ~14% YoY, higher than average industry growth of 7.6%.

We expect SANL’s revenue growth to sustain at 11% over CY16-18E, in line with

industry growth. High growth of brands like Lantus, Combiflam, Allegra and

Amaryl M, along with new product launches, should drive SANL’s revenue

growth.

Lower margins attributed to high other expenses:

EBITDA margin contracted

to ~19.2% in 2QCY17, lower than our estimate of 21%, mainly on account of

high other expenses (+870bp YoY as % of sales), offsetting lower raw material

costs (-510bp YoY as % of sales). We expect EBITDA margin to normalize at 21-

22% over CY16-18E (22.3% in CY16).

Margin improvement is key; maintain Buy:

We model an increase of 11% in

sales, 9% in EBITDA and 12% in earnings over CY16-18E. We maintain our

Buy

rating with a target price of INR4,820 @ 30x CY18E earnings (v/s INR4,850 @

28x CY18E earnings). We have cut our CY18E EPS by 8% as we build in slower

margin improvement.

4Q

5,920

4.1

1,073

18.1

412

4

152

809

0

809

304

37.6

505

505

-28.3

8.5

1Q

5,529

1.6

1,015

18.4

253

4

159

917

0

917

317

34.6

600

600

-25.6

10.9

CY17E

2Q

6,006

-1.2

1,154

19.2

255

0

284

1,183

0

1,183

446

37.7

737

737

-13.6

12.3

CY16

3QE

6,911

10.7

1,513

21.9

300

4

200

1,409

0

1,409

520

36.9

889

889

10.3

12.9

4QE

7,433

25.6

1,576

21.2

296

7

-53

1,220

0

1,220

372

30.5

848

848

67.9

11.4

23,686

8.0

5,281

22.3

1,313

15

708

4,661

0

4,661

1,691

36.3

2,970

2,970

24.9

12.5

CY17E

25,879

9.3

5,258

20.3

1,104

15

590

4,729

0

4,729

1,655

35.0

3,074

3,074

3.5

11.9

Est.

2Q

6,718

7.6

1,414

21.0

260

4

200

1,350

0

1,350

470

34.8

880

880

3.2

13.1

Var.

vs Est

-10.6%

-18.4%

Financials & Valuations (INR b)

Y/E Dec

2016 2017E 2018E

n

Net Sales

23.7

25.9

29.2

EBITDA

5.3

5.3

6.3

PAT

3.0

3.1

3.7

EPS (INR)

129.1 133.6 160.6

Gr. (%)

24.9

3.5

20.2

BV/Sh (INR)

754.5 806.9 886.3

RoE (%)

17.1

16.6

18.1

RoCE (%)

16.5

16.2

18.1

n

P/E (x)

32.6

31.5

26.2

P/BV (x)

5.6

5.2

4.7

Estimate change

TP change

Rating change

n

Quarterly Performance (Consolidated)

Y/E December

Net Sales

YoY Change (%)

EBITDA

Margins (%)

Depreciation

Interest

Other Income

PBT before EO Items

Extra-Ord Expense

PBT after EO Items

Tax

Effective tax Rate (%)

Reported PAT

Adj PAT

YoY Change (%)

Margins (%)

E: MOSL Estimates

1Q

5,444

11.4

1,291

23.7

301

1

256

1,245

0

1,245

439

35.3

806

806

66.5

14.8

CY16

2Q

3Q

6,080 6,242

10.6

6.6

1,458 1,447

24.0

23.2

300

300

7

3

164

148

1,315 1,292

0

0

1,315 1,292

462

486

35.1

37.6

853

806

853

806

32.9

11.2

14.0

12.9

-12.4%

-12.4%

-16.3%

-16.3%

20 July 2017

11

MindTree Consulting

BSE SENSEX

31,955

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

9,900

MTCL IN

Dragged by acquisitions, top clients and standalone margins

168

85.2 / 1.3

Downgrade to Sell

621 / 400

n

1Q miss reflects elevated pressures:

MTCL’s 1QFY18 revenue grew 1.2%

-4/-12/-25

QoQ CC versus our estimate of +3% QoQ, dragged by acquired companies’

343

performance: QoQ decline of 19% in Bluefin and 13% in Magnet360

86.3

19 July 2017

1QFY18 Results Update | Sector: Technology

CMP: INR507

TP: INR450(-11%)

Downgrade to Sell

Financials & Valuations (INR b)

2017

2018E

Y/E Mar

52.4

54.4

Net Sales

7.2

6.7

EBITDA

4.2

4.5

PAT

24.9

28.7

EPS (INR)

-30.6

15.4

Gr. (%)

153.0

156.1

BV/Sh (INR)

16.8

17.3

RoE (%)

20.1

18.2

RoCE (%)

20.4

17.6

P/E (x)

3.3

3.2

P/BV (x)

2019E

61.7

8.4

5.4

32.9

14.6

170.9

20.1

23.5

15.4

3.0

n

n

Estimate change

TP change

Rating change

n

Quarterly Performance (Consolidated)

Y/E March

Revenue (USD m)

QoQ (%)

Revenue (INR m)

YoY (%)

GPM (%)

SGA (%)

EBITDA

EBITDA Margin (%)

EBIT Ma rgi n (%)

Othe r i ncome

ETR (%)

Adj. PAT

QoQ (%)

YoY (%)

EPS (INR)

Headcount

Uti l i ncl . tra i ne e s (%)

Attri ti on (%)

Offs hore re v. (%)

Fi xe d Pri ce (%)

1Q

199

2.1

13,276

35.8

37.0

22.3

1,951

14.7

10.8

198

24.2

1,235

-7.1

-3.7

7.4

16,110

71.4

16.5

40.5

48.7

(negative impact of 1.4pp on growth). This, combined with visa costs (140bp

impact) and a stronger INR (90bp), drove ~300bp EBITDA margin contraction

to 11%, well below our estimate of 13.9%. Adj. PAT declined 5% QoQ to

INR925m, missing our estimate of INR1,244m, led by operating miss.

Downgrades revenue growth outlook:

MTCL revised its FY18 revenue

growth outlook to high-single-digits from low-double-digits earlier, following

a slow start and lack of predictability in segments such as Salesforce and

Bluefin. Also, it had earlier expected margin expansion in FY18 excluding the

impact from a stronger INR, which will now likely happen only in the

standalone segment and consolidated margins will likely be lower.

Trend in some key metrics disconcerting:

Since 2QFY16, MTCL’s absolute

IFRS EBIT has declined 45% from INR1,783m to INR979m, and acquisitions

are only partly responsible for the trend. Likewise, since 3QFY16, revenue

from the top 2-5 accounts is down 24% and that from the top 6-10 accounts

is down 12%. MTCL’s revenue and margin outlook does not imply a swift fix

to the multitude of challenges facing the company.

Valuation view – downgrade to Sell:

MTCL downgraded its revenue and

margin outlook for FY18, which drives 12/9% cut in our FY18/19E EPS. MTCL

trades at 15.2x FY19E EPS. We note that MTCL’s challenges are not only

limited to the performance of its acquired entities (only ~7% of revenues),

but also span across standalone profitability and revenues from the top

accounts. Our TP of INR450 discounts forward earnings by 13x and implies

11% downside to CMP. Led by the uncomfortable duality of expensive

valuation multiple and series of challenges, we downgrade MTCL to

Sell.

4Q

196

1.8

13,181

-0.2

34.0

19.8

1,869

14.2

10.3

-95

22.8

972

-5.7

-26.9

5.8

16,470

70.9

15.1

39.5

52.8

1Q

200

2.3

12,895

-2.9

34.9

23.8

1,435

11.1

7.3

368

28.6

931

-4.2

-24.6

7.2

16,561

73.2

14.0

42.0

52.9

FY18E

2Q

3Q

207

211

3.2

2.3

13,425

13,846

3.6

6.9

34.2

34.0

22.0

21.2

1,642

1,769

12.2

12.8

8.5

9.2

336

263

24.0

24.0

1,127

1,163

21.1

3.2

18.9

12.8

6.9

7.1

17,011

17,611

74.0

72.0

42.1

41.5

FY17

4Q

216

2.2

14,261

8.2

34.2

21.0

1,884

13.2

9.6

249

24.0

1,234

6.1

27.0

7.5

17,911

72.0

41.2

780

9.0

52,364

11.7

34.8

21.1

7,181

13.7

9.8

417

24.6

4,186

-30.6

24.9

16,470

71.3

40.2

FY18E

834

7.0

54,426

3.9

34.3

22.0

6,730

12.4

8.7

1,216

25.0

4,455

6.4

34.6

17,911

72.8

41.7

Est. Var. (% /

1QFY18

bp)

204

-1.8

4.2 -188bp

13,133

-1.8

-1.1 -179bp

33.9

104bp

20.0

378bp

1,821

-21.2

13.9

-274bp

9.9 -268bp

353

4.3

25.0

1,244

-25.1

27.9 -3217bp

0.7 -2532bp

7.4

16,870

-1.8

73.0

20bp

40.3

169bp

FY17

2Q

3Q

193

192

-3.0

-0.4

12,954 12,953

10.8

6.7

34.2

34.1

21.7

20.7

1,621 1,740

12.5

13.4

8.6

9.5

170

144

26.0

25.2

948 1,031

-23.2

8.8

-40.1 -31.7

5.6

6.1

16,219 16,099

71.4

71.3

16.4

16.1

40.8

39.8

50.6

52.5

20 July 2017

12

RESULTS

FLASH

BSE SENSEX

31,955

S&P CNX

9,900

KPIT Technologies

Neutral

19 July 2017

Results Flash | Sector: Technology

CMP: INR134

n

TP: INR150(+12%)

We will revisit our estimates

post earnings call/management

interaction.

Revenue beat led by one-time license fees; Margin disappoints

KPIT’s 1QFY18 CC revenue grew 3.5% QoQ, above our estimate of +1.3%. This

however, included one-time non-recurring license fee revenue of USD2m,

adjusted for which, CC revenue growth of 1.9% would be closer to our

estimate.

EBITDA margin shrunk 100bp QoQ to 9.1%, significantly below our estimate of

11.1%. With significant expansion room for utilization and wage hikes effective

from only in 2Q, we had expected 100bp margin expansion despite a strong

INR.

However, with 225-250bp headwind from wage hikes effective in 2Q, we

see significant cut to our FY18 EBITDA margin estimate of 11.7%.

PAT stood at INR555m (+3.3% QoQ), above our estimate of INR529m, mainly

due to higher other income of INR121m (estimate of INR10m).

Conference Call Details

Date:

20 July 2017

Time:

04:00pm IST

Dial-in details:

+91-22-3960 0734

th

n

Financials & Valuations (INR b)

2017

2018E

Y/E Mar

Net Sales

33.2

35.0

EBITDA

3.5

3.3

NP

2.1

2.2

EPS (INR)

11.9

10.8

EPS Gr. (%)

-15.3

-9.5

BV/Sh. (INR)

79.2

85.8

RoE (%)

14.3

13.2

RoCE (%)

15.9

14.0

Payout (%)

16.8

18.5

Div. Yield

1.5

1.5

n

2019E

37.8

Key highlights

3.7

2.4

n

While management retained its full-year guidance of 6-8% revenue growth

aided by healthy 1Q growth (including one-off revenue) and cross-currency

11.4

6.0

benefits, it expects to achieve the higher end of the same.

97.3

n

KPIT demonstrated sanguine cash generation during the quarter, with

12.5

operating cash flow at INR941m and free cash flow at INR492m. Its net cash at

14.4

the end of the quarter stood at INR1,344m.

17.5

1.5

n

Only E&U had any material growth in 1Q (+28% QoQ). Automotive was flat and

n

Manufacturing and Others declined.

Growth during the quarter was led by smaller geographies of Europe (+13.9%

QoQ) and RoW (+12.3% QoQ).

Quarterly Performance

Valuation and view:

We will revisit our estimates post the earnings call. Outlook on

growth recovery and margin resurrection will be keenly sought. Maintain

Neutral.

20 July 2017

13

19 July 2017

1QFY18 Results Update | Sector: Media

HT Media

Neutral

BSE SENSEX

31,955

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

9,900

HTML IN

GST impacts ad growth, cost efficiencies lead to margin beat

233

Maintain EPS estimates and TP

19.2 / 0.3

96 / 70

n

EBITDA up 24%, above estimate; PAT nearly doubles:

EBITDA rose 24% YoY to

INR799m, 21% above our estimate of INR657m, despite the revenue

5/-10/-5

23

disappointment, as HT Media’s cost-efficiency efforts bore fruit. Opex levers

30.5

CMP: INR88

TP: INR90 (+2%)

Financials & Valuations (INR b)

2017 2018E

Y/E Mar

Net Sales

24.5

25.0

EBITDA

3.0

3.2

PAT

1.7

1.8

EPS (INR)

7.4

7.9

Gr. (%)

2.1

7.0

BV/Sh (INR)

109.8 120.1

RoE (%)

7.1

6.9

RoCE (%)

8.5

8.2

P/E (x)

11.9

11.1

P/BV (x)

0.8

0.7

2019E

26.3

3.1

1.9

8.1

1.5

130.4

6.4

8.1

11.0

0.7

n

Estimate change

TP change

Rating change

n

n

more than cushioned the impact of subdued ad/circulation performance. PAT

grew 86% YoY to INR416m, significantly above our estimate of INR236m,

largely due to EBITDA beat flowing through.

Print ad and circulation growth disappoints:

Revenue fell 3% YoY to INR5.99b

(est. of INR6.24b). Ad revenue declined 10% YoY to INR4.07b (est. of INR4.5b)

as volumes were impacted in the month leading to GST roll-out. English ad

revenue fell 16% YoY to INR2.29b, while Hindi ad revenue remained flat YoY at

INR1.78b (4% miss). Circulation revenue remained flat YoY at INR770m (est. of

INR800m). Radio revenue grew 30% YoY to INR430m (est. of INR398m), mainly

on increased inventory sale from new radio station launches and also growth in

existing stations. Like-to-like radio business growth fell 7% YoY (new stations

contributed INR120m in 1Q).

EBITDA margin expands ~290bp YoY, significant beat:

Despite the GST impact

(which put brakes on ad/circulation growth), HTML more than salvaged

margins (+290bp YoY) to 13.3% (est. of 10.5%), as its cost-efficiency drive

across all opex items helped it report healthy margin expansion.

Valuation and view:

While 1Q profitability remained healthy due to cost

efficiencies, the ad pain continues (66% of revenue). While we remain positive

on the regional business, sluggish English ad growth and low dividend payout

remain the key concerns. We maintain our earnings estimates and

Neutral

stance with a target price of INR90 (11x FY19E EPS).

20 July 2017

14

Hindustan Media Ventures

BSE SENSEX

31,955

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

9,900

HMVL IN

GST-led pain impacts ad growth

73.4

19.6 / 0.3

n

EBITDA misses estimate led by unfavorable operating leverage:

HMVL’s

314 / 253

1QFY18 EBITDA declined 10% YoY to INR510m (est. of INR651m) due to GST-

-2/-15/-14

led ad pain. The base quarter does not include charges pertaining to HTDSL

10

(HTML’s multimedia digital content arm) carve-out, and thus, financials are

25.7

19 July 2017

1QFY18 Results Update | Sector: Media

CMP: INR274

TP: INR350(28%)

Buy

Financials & Valuations (INR b)

Y/E Mar

2017 2018E 2019E

Net Sales

9.33 10.08 10.93

EBITDA

2.06

2.38

2.76

PAT

1.90

2.20

2.58

EPS (INR)

25.9

28.3

33.6

Gr. (%)

5.2

9.5

18.4

BV/Sh (INR)

149.1 177.5 211.0

RoE (%)

19.0

17.3

17.3

RoCE (%)

17.8

15.8

16.3

P/E (x)

10.6

9.7

8.2

P/BV (x)

1.8

1.5

1.3

n

n

Estimate change

TP change

Rating change

n

Quarterly Performance

Y/E March

Ad revenue

YoY (%)

Circulation revenue

YoY (%)

Revenue

YoY (%)

Operating expenses

EBITDA

YoY (%)

EBITDA margin (%)

Depreciation

Interest

Other Income

PBT

Tax

Effective Tax Rate (%)

Adjusted net profit

1Q

1,777

6.9

563

5.4

2,392

6.9

1,823

569

4

23.8

50

47

201

673

186

27.6

487

strictly not comparable. Like-to-like comparison is not disclosed. Reported PAT

declined 8% YoY to INR448m (est. of INR559m).

Teething days of GST implementation hit ad growth:

Ad volumes dipped ~6%

with advertisers tightening their budgets in the month leading to GST

implementation. With ad budget cuts leading to volumes decline across

categories, ad revenues remained flat YoY at INR1.78b in 1QFY18. However,

HMVL did manage to offset the decline through 6% yield improvement.

Flat circulation revenues miss expectations:

Circulation revenues remained

flat YoY at INR560m (est. of INR591m), largely led by lower realization/copy.

HMVL took a cut in cover price in the quarter to protect its turf in select UP and

Bihar markets.

Valuation and view:

We cut our EPS estimates 5%/6% in FY18/FY19 to factor in

higher-than-expected operating costs. We expect EPS CAGR of 14% over FY17-

19, led by CAGR of 9%/6% in ad/circulation revenue. HMVL trades at 9.7x

FY18E EPS/8.2x FY19E EPS. Maintain

Buy

with a TP of INR350 (earlier 360)

based on 10x FY19E EPS.

(INR Million)

3Q

1,688

-6.8

561

7.3

2,303

-4.2

1,894

409

-32

17.8

50

39

215

536

98

18.2

438

4Q

1,745

3.0

552

3.4

2,343

3.1

1,770

573

10

24.4

50

34

167

655

191

29.1

424

1Q

1,780

0.2

560

-0.5

2,368

-1.0

1,858

510

-10

21.5

53

25

251

683

203

29.7

448

FY18

2QE

1,837

8.0

581

8.0

2,477

8.0

1,957

521

3

21.0

54

26

200

641

151

23.5

490

FY17

3QE

1,975

17.0

606

8.0

2,638

14.6

1,969

669

64

25.4

52

27

200

790

186

23.5

604

4QE

1,955

12.0

596

8.0

2,599

10.9

1,915

685

20

26.3

53

29

219

821

194

23.7

597

6,912

1.1

2,213

3.2

9,333

1.6

7,277

2,055

-5.6

22.0

202

161

884

2,575

676

26.3

1,777

FY18E

7,547

9.2

2,343

5.9

10,083

8.0

7,699

2,385

16.0

23.6

213

106

869

2,934

734

25.0

2,201

FY17

2Q

1,701

0.9

538

3.1

2,295

1.4

1,791

504

-4

22.0

52

41

338

749

202

27.0

547

20 July 2017

15

June 2017 Results Preview | Sector: Capital Goods

ABB

Bloomberg

Equity Shares (m)

M. Cap. (INR b)/(USD b)

52-Week Range (INR)

1,6,12 Rel Perf. (%)

ABB IN

211.9

307 / 5

1619 / 950

0 / 23 / 4

CMP: INR1,450 TP: INR1,201 (-17%)

n

n

Sell

Financial Snapshot (INR b)

Y/E Dec

2016 2017E 2018E 2019E

Net Sales

EBITDA

Adj. PAT

Adj. EPS (INR)

EPS Gr (%)

BV/Sh (INR)

RoE (%)

RoCE (%)

Payout (%)

Valuations

P/E (x)

P/BV (x)

EV/EBITDA (x)

Div. Yield (%)

73.8

9.4

32.4

0.3

58.0

8.1

24.9

0.4

45.2

7.1

18.9

0.5

37.1

6.2

14.2

0.6

86.6

7.9

3.7

19.7

25.0

154.9

12.7

18.3

19.9

100.8

10.2

5.3

25.1

27.2

180.0

13.9

21.3

22.5

111.9

12.5

6.8

32.2

28.3

203.7

15.8

23.7

22.5

126.0

14.8

8.3

39.2

21.8

232.7

16.8

25.4

22.5

n

n

n

ABB has received a substation order worth INR1.8b from Power

Grid of Bangladesh to add 535MWof transmission capacity.

ABB India during the quarter has set-up new remote service center

for its energy saving solutions. It also added a new production line

for digitalized low-voltage drives.

During the quarter, ABB has launched new microgrid technology

that combines solar power and enables battery storage. This

product will target to provide electricity to remote villages that are

not connected to main grid.

ABB continues to focus on increased localization and cost

optimization. Its direct RM costs have declined to 64.5% of revenue

from a peak of 81% in 4QCY10, well below its internal target of

65%. This has aided margins, despite negative operating leverage.

We expect revenue to grow 13% YoY, led by execution ramp-up in

the projects segment. Operating margin is likely to improve 130bp

YoY to 9.4%. Net profit should grow 36% YoY to INR1.05b.

Sell.

Management commentary suggests cautious optimism. Continued focus

on exports and services to be an important driver of projected strong

double-digit revenue and profit growth.

Key issues to watch

Ø

Ø

Continued preference for cash generation vis-à-vis profits.

Quarterly Performance

Y/E December

Sales

Change (%)

EBITDA

Change (%)

As % of Sales

Depreciation

Interest

Other Income

PBT

Tax

Effective Tax Rate (%)

Reported PAT

Adj. PAT

Change (%)

1Q

20,035

10.4

1,808

25.9

9.0

359

223

149

1,376

442

32.1

854

934

72.0

CY16

2Q

3Q

21,015

20,550

8.8

4.4

1,701

1,516

5.6

-2.7

8.1

7.4

357

406

180

178

44

44

1,208

976

434

427

35.9

43.8

774

811

774

871

13.1

48.2

4Q

24,915

2.7

2,819

7.1

11.3

389

285

95

2,241

773

34.5

1,468

1,468

13.4

1Q

21,689

8.3

1,715

-5.2

7.9

376

212

186

1,312

428

32.6

884

884

-5.3

CY17

2Q

23,833

13.4

2,236

31.5

9.4

393

285

40

1,598

542

33.9

1,056

1,056

36.4

CY16

3Q

24,383

18.7

2,533

67.1

10.4

393

327

100

1,913

648

33.9

1,264

1,264

45.2

4Q

30,864

23.9

3,680

30.5

11.9

410

345

53

2,977

871

29.3

2,106

2,106

43.5

85,318

6.4

7,901

5.8

9.3

1510

919

658

6,131

1,957

31.9

3,687

4,175

25.0

CY17E

99,401

16.5

10,164

28.6

10.2

1573

1,169

378

7,800

2,489

31.9

5,311

5,311

27.2

20 July 2017

16

June 2017 Results Preview | Sector: Healthcare

Alembic Pharma

Bloomberg

Equity Shares (m)

M. Cap. (INR b)/(USD b)

52-Week Range (INR)

1,6,12 Rel Perf. (%)

Financial Snapshot (INR Billion)

Y/E March

2017 2018E

Sales

EBITDA

NP

EPS (INR)

EPS Gro. (%)

BV/Sh. (INR)

RoE (%)

RoCE (%)

Valuations

P/E (x)

P/BV (x)

EV/EBITDA (x)

EV/Sales (x)

D. Yield (%)

23.7

5.1

15.7

3.1

1.0

20.5

4.3

13.4

2.6

1.0

16.8

3.5

10.8

2.2

1.0

14.2

2.9

8.7

1.8

1.0

31.0

6.1

4.0

21.6

-43.5

100.8

23.0

22.1

35.4

6.9

4.7

24.9

15.5

119.8

22.6

22.0

ALPM IN

188.5

96 / 1

709 / 492

-5 / -33 / -26

CMP: INR512

n

TP:INR640(+25%)

Neutral

2019E

41.2

8.5

5.8

30.5

22.4

144.3

23.1

22.7

2020E

47.4

10.0

6.8

36.1

18.3

174.4

22.7

28.8

n

n

n

In 1QFY18, we expect Alembic Pharma (ALPM) to post modest 5%

YoY growth in reported sales to INR7.6b. International business is

expected to decline 4.4% YoY owing to lower contribution from

gAbilify, partially offset by new launches, including Pristiq generic

launch. India business is expected to grow 14% YoY to INR3.4b.

Reported EBITDA is likely to decrease ~9% YoY to INR1.4b, with

EBITDA margin contracting 280bpYoY, primarily on account of lower

gAbilify sales in 1QFY18 numbers.

We expect reported PAT to decline 9.3% YoY to INR92m.

We believe intensifying competition in Abilify, coupled with high

R&D expense and a rise in depreciation due to planned capex of

INR7b, will keep profit growth under check. We maintain Neutral

with a TP of INR640 @20x FY19E EPS.

Key issues to watch out

Ø

Contribution of chronic portfolio and growth strategy.

Ø

Performance of US operations amid market pressure.

Ø

Outlook on future ANDA launches/filings.

Quarterly Performance

Y/E March

Net Sales

YoY Change (%)

Total Expenditure

EBITDA

Margins (%)

Depreciation

Interest

Other Income

PBT

Tax

Rate (%)

Minority Interest & Profit/Loss of Asso. Cos.

Adj. PAT

YoY Change (%)

Margins (%)

E: MOSL Estimates

1Q

7,270

24.6

5,711.2

1,559

21.4

193.8

10.7

14.1

1,369

332.7

24.3

16.1

1,020

46.2

14.0

FY17

2Q

8,716

-13.1

6,945

1,771

20.3

206

10

12

1,567

332

21.2

49

1,187

-58.8

13.6

3Q

7,699

-16.4

6,253

1,446

18.8

211

8

10

1,237

393

31.8

-17

861

-68.0

11.2

4Q

7,367

17.8

6,032

1,335

18.1

218

18

20

1,118

165

14.7

23

930

2.2

12.6

1QE

7,636

5.0

6,216

1,420

18.6

225.0

18.0

9

1,186

261.0

22.0

0

925

-9.3

12.1

FY18E

2QE

3QE

8,443 8,823

-3.1

14.6

6,788 7,006

1,655 1,818

19.6

20.6

225

225

14

14

9

9

1,425 1,588

313

349

22.0

22.0

0

0

1,111 1,238

-6.4

43.8

13.2

14.0

4QE

10,474

42.2

8,433

2,041

19.5

228

-4

8

1,825

402

22.0

0

1,424

53.0

13.6

(INR Million)

FY17

31,013

-1.4

24,904

6,109

19.7

830

51

62

5,290

1,222

23.1

38

4,029

-45.3

13.0

FY18E

35,377

14.1

28,443

6,934

19.6

903

42

35

6,024

1,325

22.0

0

4,699

16.6

13.3

20 July 2017

17

June 2017 Results Preview | Sector: Automobiles

Bajaj Auto

Bloomberg

Equity Shares (m)

M. Cap. (INR b)/(USD b)

52-Week Range (INR)

1,6,12 Rel Perf. (%)

BJAUT IN

289.4

802 / 12

3122 / 2510

-2 / -14 / -10

CMP: INR2,771 TP:INR3,359 (+21%)

Buy

Financial Snapshot (INR b)

Y/E MAR

2017 2018E 2019E 2020E

Sales

EBITDA

NP

Adj. EPS (INR)

EPS Gr. (%)

BV/Sh. (INR)

RoE (%)

RoCE (%)

Payout (%)

Valuations

P/E (x)

P/BV (x)

EV/EBITDA (x)

Div. Yield (%)

21.0

4.7

15.1

2.0

19.3

4.2

13.2

2.3

16.5

3.8

11.0

2.9

14.2

3.6

9.2

4.5

218

44.2

38.3

132

-2.6

589

25.3

24.6

50.0

236

47.3

41.5

143

8.5

654

23.1

22.4

54.4

264

54.5

48.6

168

17.0

721

24.4

23.6

60.0

298

62.7

56.5

195

16.2

770

26.2

34.4

75.0

n

Overall volume declined ~10.7% YoY (grew 12.8% QoQ) to 888k

units due to ~23.3% YoY decline in domestic volume, while

exports grew 10.5% YoY. The decline in domestic volume was due

to pre-buy impact and postponement in purchases due to GST.

n

We expect realization to grow 1.9% YoY (decline 5% QoQ), led by

improvement in mix product mix. As a result, net revenues is

likely to decline ~8.9% YoY.

n

EBITDA margin is likely to contract 130bp YoY (expand 64bp QoQ)

to 19.1% due to higher commodity prices and other expenses. We

expect ~10bp impact of lower price due to GST since 15

th

June

2017.

n

Further, we estimate ~30bp margin impact due to compensation

of input tax credit to dealers in 2QFY17.

n

PAT is likely to decline ~9.7% YoY (grow 10.2% QoQ) to INR8.8b.

n

We have lowered our total volume estimates by 2.8% for FY18

and 4.5% for FY19, resulting in EPS cut of 4.6% for FY18 and 5.8%

for FY19.

n

The stock trades at 19.3x FY18E and 16.5x FY19E EPS; maintain

Buy.

Key issues to watch

Ø

Update on demand for new launches, channel inventory post

BS-IV; outlook for FY18.

Ø

Export demand outlook and pricing in key exports markets.

Ø

Dealer compensation cost for ITC loss due to GST.

Ø

Comments on 3W demand recovery in domestic market.

3Q

852

-10.5

59,495

2.0

50,669

-8.7

66.8

4.8

7.9

10,439

20.6

3,193

3

772

12,858

3,612

28.1

9,246

(4.7)

4Q

788

-9.7

62,171

1.2

48,973

-8.6

67.8

4.6

9.2

9,060

18.5

2,936

2

757

11,236

3,218

28.6

8,018

(15.5)

1QE

888

-10.7

58,907

1.9

52,335

-8.9

67.4

5.3

8.3

10,017

19.1

3,200

3

775

12,440

3,608

29.0

8,832

(9.7)

FY18E

2QE

3QE

1,047

999

1.4

17.2

59,438

60,329

1.3

1.4

62,201

60,239

2.7

18.9

67.7

67.2

4.6

4.4

8.3

8.0

12,104

12,342

19.5

20.5

3,400

3,650

3

3

800

835

14,701

15,155

4,263

4,395

29.0

29.0

10,438

10,760

(7.0)

16.4

FY17

4QE

977

24.1

62,889

1.2

61,473

25.5

67.7

4.3

7.2

12,884

21.0

4,162

3

858

16,185

4,694

29.0

11,492

43.3

3,666

(5.8)

59,419

2.4

217,827

(3.6)

67.1

4.6

8.0

44,384

20.4

12,220

14

3,073

53,516

15,081

28.2

38,436

(2.2)

FY18E

3,911

6.7

60,407

1.7

236,249

8.5

67.5

4.6

8.0

47,347

20.0

14,412

10

3,268

58,481

16,960

29.0

41,522

8.0

Quarterly Performance

Y/E March (INR m)

Volumes ('000 units)

Growth YoY (%)

Realization (INR/unit)

Growth YoY (%)

Net Sales

Change (%)

RM/Sales %

Staff cost/Sales %

Oth. Exp./Sales %

EBITDA

EBITDA Margins (%)

Other Income

Interest

Depreciation

PBT

Tax

Effective Tax Rate (%)

Adj. PAT

Change (%)

E: MOSL Estimates

1Q

995

-1.8

57,784

4.5

57,480

2.7

67.2

4.7

7.7

11,763

20.5

2,671

2

775

13,657

3,873

28.4

9,784

2.2

FY17

2Q

1,032

-2.3

58,676

2.0

60,545

-0.4

67.0

4.3

7.4

12,961

21.4

3,420

7

770

15,605

4,378

28.1

11,228

6.7

20 July 2017

18

June 2017 Results Preview | Sector: Media

D B Corp

Bloomberg

Equity Shares (m)

M. Cap. (INR b)/(USD b)

52-Week Range (INR)

1,6,12 Rel Perf. (%)

DBCL IN

183.4

70 / 1

448 / 345

1 / -15 / -16

n

n

CMP: INR381

n

TP: INR450 (+18%)

Buy

Financial Snapshot (INR Billion)

Y/E MARCH

2017 2018E 2019E 2020E

Net Sales

EBITDA

Adj. Net Profit

Adj. EPS (INR)

Adj. EPS Gr. (%)

BV/Sh (INR)

RoE (%)

RoCE (%)

Div. Payout (%)

Valuations

P/E (x)

P/BV (x)

EV/EBITDA (x)

Div. Yield (%)

18.7

4.4

10.7

2.5

16.1

3.9

9.0

2.8

13.9

3.5

7.8

3.3

12.1

3.1

6.7

3.8

22.4

6.4

3.7

20.4

25.8

86.7

25.5

23.0

55.0

24.4

7.2

4.3

23.6

16.0

25.7

24.0

55.0

26.5

8.0

5.0

27.5

16.1

26.5

24.9

55.0

28.5

8.9

5.8

31.4

14.4

26.9

25.4

55.0

n

n

n

n

97.3 109.7 123.8

Given the high base effect, DB Corp’s Print ad growth rate would be

subdued at 3% (INR3.85b). April and May ad spends were healthy;

however, there was some pain in June from FMCG, as primary sales

took a hit amidst the GST rollout frenzy.

Circulation revenue is likely to grow 8% YoY to INR1.27b.

DBCL’s aggregate revenue is likely to grow 4% YoY to INR5.94b, as

print ad revenue, which accounts for ~65% of overall revenue,

remains under pressure.

Raw material cost is expected to increase 5% YoY, largely volume-

led. Newsprint prices are expected remain flat QoQ.

We expect EBITDA margin to remain largely flat YoY at 31.1%.

We estimate net profit at INR1.12b, up 8% YoY.

We maintain our target price at INR450 (16x FY19E EPS). The stock

trades at 16.2x FY18E and 13.9x FY19E EPS. Buy.

Key things to watch for

Ø

YoY ad growth (we expect 3%).

Ø

EBITDA margin (we expect 31.1%).

Quarterly Performance

Y/E March

Sales

YoY (%)

Operating Expenses

EBITDA

YoY (%)

EBITDA margin (%)

Depreciation

Interest

Other Income

PBT

Tax

Effective Tax Rate (%)

PAT

Minority Interest

Adj PAT

YoY (%)

1Q

5,704

20.5

3,892

1,812

48.7

31.8

211

34

41

1,608

568

35.3

1,040

0

1,040

56.5

FY17

2Q

5,287

10.6

3,782

1,505

33.6

28.5

216

6

41

1,325

440

33.2

885

0

885

47.3

3Q

6,273

7.1

4,290

1,982

6.1

31.6

218

30

36

1,771

590

33.3

1,181

0

1,181

10.6

4Q

5,171

0.6

4,049

1,122

-1.7

21.7

218

5

51

950

309

32.5

641

0

641

-0.2

1Q

5,942

4.2

4,095

1,847

1.9

31.1

220

11

80

1,696

577

34.0

1,120

0

1,120

7.7

FY18

2Q

5,700

7.8

4,189

1,512

0.4

26.5

225

11

80

1,356

461

34.0

895

0

895

1.1

3Q

7,071

12.7

4,552

2,519

27.1

35.6

227

10

80

2,362

803

34.0

1,559

0

1,559

32.0

4Q

5,653

9.3

4,325

1,328

18.3

23.5

224

11

81

1,174

399

34.0

775

0

775

20.8

(INR Million)

FY17

22,435

9.4

16,013

6,422

19.9

28.6

863

74

170

5,654

1,907

33.7

3,747

0

3,747

25.9

FY18E

24,366

8.6

17,160

7,205

12.2

29.6

896

43

321

6,588

2,240

34.0

4,348

0

4,348

16.0

20 July 2017

19