Telecom | Update
25 February 2019
Telecom
Industry growth reviving
RJio gaining market share, racing fast to become India’s no 1 telco
The Telecom Regulatory Authority of India (TRAI) released the telecom industry’s
3QFY19 revenue report indicating industry (adjusted AGR*) growth turned positive
during the period, albeit with a meager 1% QoQ growth to INR323b.
Subscribers/ARPUs increased 0.6%/flat QoQ to 1,176m/INR92.
Unless there is a next round of tariff war, we believe that overall revenues and ARPUs
should start recovering. But, it may not translate into sustainable growth for
incumbents given the continued market share loss to RJio.
According to adjusted AGR workings, market share gap between the top-3 players is
limited with Vodafone Idea/ Bharti/ RJio at 31.6%/30.1%/29.8%. RJio already ranks as
No.1 in four circles and at its current growth pace, we believe it could turn out to be
the market leader by next quarter.
The silver lining for Bharti is its growth/market share improvement in seven of the 22
circles that it is present in — an indication of its stabilizing competitive position, unlike
Vodafone Idea’s two circles.
As Vodafone Idea’s 4G capability is weak, RJio would continue to target subscriber
market share. Thus, we believe possibilities of ARPU accretion is 4-6 quarters away.
Industry growth turns green with 1% QoQ growth
The telecom industry’s (adjusted AGR*) revenues grew 1% QoQ (declined 6% YoY) to
INR323b. Industry subscriber base grew marginally by 0.6% QoQ (-0.7% YoY) to
1,176m driven purely by RJio subscriber growth, partly offset by sim card
consolidation triggered by the recently launched Minimum Recharge Vouchers. This
resulted in flat QoQ industry ARPUs (adjusted AGR) to INR91.7, which is 42% below
the industry ARPU in 1QFY17 at INR160 (pre-RJio launch period). Unless there is a next
round of tariff war, our channel checks indicate that overall industry revenues and
ARPUs should start recovering in the next two quarters, as (a) a large part of the down
trading is complete, and (b) shift of usage from feature phone to smartphones would
benefit from nearly 3-4x ARPU differentials. However, this may not translate into
sustainable growth for incumbents given the continued market share loss to RJio.
Market share gap between top-3 players limited; RJio could be leader
RJio’s adjusted AGR market share has increased 360bp to 29.8% with robust
(adjusted AGR) revenue growth of 15% QoQ (80% YoY), driven by 11% QoQ
subscriber growth and 1% increase in ARPUs. RJio is now just marginally behind
Bharti/Vodafone Idea’s (adjusted AGR) market share of 30.1%/31.6%, which has
declined 90bp/120bp QoQ. At this rate, RJio could be ranked as the new No. 1
player in the market by next quarter, reaching there in just 8-9 quarters from the
time of service launch. We believe that Bharti’s limited arbitrage v/s RJio on
product/network quality and price plans should not only limit its market share
erosion but should also result in gains from Vodafone Idea, which has plenty to do
on improving its network quality and balance sheet repair.
Aliasgar Shakir – Research Analyst
(Aliasgar.Shakir@motilaloswal.com); +91 022 6129 1565
Hafeez Patel – Research Analyst
(Hafeez.Patel@motilaloswal.com); +91 22 3010 2611
25 February 2018
Investors are advised to refer through important disclosures made at the last page of the Research Report.
1
Motilal Oswal research is available on
www.motilaloswal.com/Institutional-Equities,
Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
Telecom | Update
RJio is ranked no. 1 in four circles; Bharti seeing improvement in nine circles
RJio has reached the no. 1 position in four of the 22 circles — Rajasthan, Assam,
Madhya Pradesh and Orissa. Bharti and Vodafone Idea are leaders in nine circles
each. Despite the 4% QoQ decline in its overall revenues, Bharti saw growth/market
share improvement in seven circles (on an AGR basis), a clear indication of its
stabilizing competitive position. On the contrary, Vodafone Idea saw its declining
revenues arrested in just two circles.
Competitive intensity to remain high for the next 4-6 quarters
RJio’s focus on subscriber market remains high, particularly in the feature phone
category through its low-priced Jiophone offerings; contrary to industry channel
checks that indicate Jiophone’s monthly subscriber addition has reduced to below
3m. As Vodafone Idea’s 4G capability is weak, RJio would continue to target
subscriber market share. Thus, we believe possibilities of ARPU accretion is 4-6
quarters away. Bharti’s stronger network capability and similar price plans v/s RJio
may continue to lessen its market share loss.
*Our Adjusted AGR numbers are derived after deducting interconnect gains from TRAI’s reported gross
revenue, and adding national long distance (NLD) revenues to bring parity in the wireless revenues for
the industry, as well as the companies.
25 February 2018
2
 Motilal Oswal Financial Services
Telecom | Update
Exhibit 1: Player-wise adjusted AGR* (INR b)
Particulars
Bharti
Vodafone Idea
RJio
Top 3 players
Other players
Total
1Q
146.3
182.2
0.1
328.6
167.5
496.1
FY17
2Q
143.6
175.0
0.3
318.9
143.5
462.4
3Q
134.1
167.3
4.4
305.8
121.8
427.6
4Q
125.2
143.1
-10.1
258.2
96.2
354.4
1Q
124.2
152.5
-9.6
267.2
87.8
355.0
FY18
2Q
116.3
137.3
44.0
297.6
81.0
378.6
3Q
106.9
127.6
53.4
287.9
54.7
342.6
4Q
101.0
119.2
63.0
283.2
34.4
317.6
1Q
101.9
111.7
72.0
285.6
36.1
321.8
FY19
2Q
98.8
104.8
83.5
287.1
32.0
319.1
3Q
97.1
101.8
96.1
295.1
27.5
322.6
QoQ (%)
-1.7
-2.8
15.2
2.8
-14.1
1.1
YoY (%)
-9.1
-20.2
80.1
2.5
-49.7
-5.8
*includes NLD revenues
Source: TRAI, MOSL
Exhibit 2: Player-wise adjusted AGR* market share (%)
Particulars
Bharti
Vodafone Idea
RJio
Top 3 players
Other players
Total
1Q
29.5
36.7
0.0
66.2
33.8
100.0
FY17
2Q
31.1
37.8
0.1
69.0
31.0
100.0
3Q
31.4
39.1
1.0
71.5
28.5
100.0
4Q
35.3
40.4
-2.8
72.9
27.1
100.0
1Q
35.0
43.0
-2.7
75.3
24.7
100.0
FY18
2Q
30.7
36.3
11.6
78.6
21.4
100.0
3Q
31.2
37.2
15.6
84.0
16.0
100.0
4Q
31.8
37.5
19.8
89.2
10.8
100.0
1Q
31.7
34.7
22.4
88.8
11.2
100.0
FY19
2Q
31.0
32.8
26.2
90.0
10.0
100.0
3Q
30.1
31.6
29.8
91.5
8.5
100.0
QoQ (bp)
-87
-127
365
151
-151
YoY (bp)
-109
-568
1,422
745
-745
*includes NLD revenues
Source: TRAI, MOSL
Exhibit 3: Player-wise gross revenue (INR b)
Particulars
Bharti
Vodafone Idea
RJio
Top 3 players
Other players
Total
1Q
188.1
234.8
0.1
423.0
196.8
619.8
FY17
2Q
185.7
227.2
0.6
413.5
188.2
601.7
3Q
178.4
216.7
3.4
398.5
150.1
548.6
4Q
175.1
195.1
7.9
378.1
134.1
512.2
1Q
183.2
216.5
17.8
417.5
120.2
537.7
FY18
2Q
182.2
205.2
76.7
464.2
103.0
567.2
3Q
171.2
187.1
79.3
437.6
72.9
510.4
4Q
185.3
199.5
86.1
470.9
51.4
522.2
1Q
166.3
176.3
99.9
442.6
44.4
487.0
FY19
2Q
162.3
169.5
115.0
446.9
37.4
484.3
3Q
165.9
166.1
131.2
463.2
34.1
497.4
QoQ (%) YoY (%)
2.2
-3.1
-2.0
-11.2
14.1
65.5
3.7
5.9
-8.8
-53.1
2.7
-2.6
Source: TRAI, MOSL
Exhibit 4: Player-wise gross revenue market share (%)
Particulars
Bharti
Vodafone Idea
RJio
Top 3 players
Other players
Total
1Q
30.4
37.9
0.0
68.3
31.7
100.0
FY17
2Q
30.9
37.8
0.1
68.7
31.3
100.0
3Q
32.5
39.5
0.6
72.6
27.4
100.0
4Q
34.2
38.1
1.5
73.8
26.2
100.0
1Q
34.1
40.3
3.3
77.7
22.3
100.0
FY18
2Q
32.1
36.2
13.5
81.8
18.2
100.0
3Q
33.5
36.7
15.5
85.7
14.3
100.0
4Q
35.5
38.2
16.5
90.2
9.8
100.0
1Q
34.2
36.2
20.5
90.9
9.1
100.0
FY19
2Q
33.5
35.0
23.8
92.3
7.7
100.0
3Q
33.4
33.4
26.4
93.1
6.9
100.0
QoQ (bp)
-17
-160
264
86
-86
YoY (bp)
-19
-326
1,085
741
-741
Source: TRAI, MOSL
Exhibit 5: Player-wise standing in circles
Bharti
No 1 position
9 circles
AP, Delhi, Karnataka, TN, Bihar,
HP, J&K, NE, Punjab
Flat growth/market share
improvement
7 circles
Gujarat, Maharashtra, Assam, Haryana,
J&K, UP W, Kerala
Vodafone Idea
9 circles
Gujarat, Maharashtra, Mumbai,
Haryana, Kerala, WB, Kolkata,
UP (E) and UP (W)
2 circles
Mumbai, J&K
Source: TRAI, MOSL
RJio
4 circles
Rajasthan, Assam,
MP, Orissa
All 22 circles
25 February 2018
3
 Motilal Oswal Financial Services
Telecom | Update
Exhibit 6: Bharti Airtel: AGR market share (%)
1Q
30.8
25.3
40.2
25.6
16.7
35.1
44.5
53.6
8.2
23.5
22.9
47.4
9.1
18.3
14.5
34.9
34.6
11.6
44.9
44.2
49.3
39.2
50.5
43.5
48.4
29.8
13.8
2.5
FY17
2Q
3Q
30.5 31.6
27.2 26.5
40.3 38.7
26.4 25.2
16.9 16.9
22.0 34.7
45.9 32.6
52.3 55.6
14.6 15.0
27.5 27.6
29.8 30.8
47.8 43.7
7.8
7.7
24.7 26.3
20.2 20.4
37.3 38.3
30.9 29.3
17.3 19.5
46.3 41.7
51.2 52.0
43.5 45.1
37.4 36.6
51.4 51.2
36.7 10.4
48.1 43.5
31.3 31.5
14.9 16.7
3.0
3.0
4Q
34.8
27.5
42.7
28.3
16.7
34.7
47.2
59.5
13.8
29.2
33.5
45.3
9.6
27.6
21.7
40.5
29.6
19.5
47.2
55.9
49.1
39.7
55.7
25.7
43.4
34.5
20.8
2.9
1Q
34.1
24.3
44.8
29.9
16.0
35.5
48.1
53.6
12.5
29.9
35.3
49.2
11.7
26.2
20.1
38.5
34.8
16.6
52.0
55.8
55.2
38.9
56.8
48.5
49.1
34.9
25.6
3.5
FY18
2Q
3Q
28.1 26.9
19.4 17.7
34.7 31.0
24.9 26.1
12.8 11.5
31.3 30.1
39.6 38.7
46.1 46.0
7.4
6.6
24.7 25.3
30.6 31.7
41.1 37.8
10.5 10.5
20.7 21.2
16.1 18.3
30.0 28.1
27.4 25.8
13.8 48.6
42.7 39.6
47.1 42.7
41.7 40.3
34.1 31.5
40.1 41.3
38.9 38.8
41.0 35.6
28.8 28.0
31.5 39.5
4.2
4.5
4Q
29.8
18.0
34.6
31.9
14.4
36.5
40.0
50.0
7.9
24.6
33.2
35.0
12.3
21.9
20.6
28.4
24.5
14.2
38.7
40.6
40.5
37.1
37.6
14.2
43.8
29.1
42.5
5.3
1Q
29.7
17.1
36.9
27.9
15.0
36.2
38.2
50.6
6.9
22.4
28.0
34.0
10.4
19.9
18.2
25.7
22.7
13.8
36.3
34.7
36.4
33.2
36.7
45.7
41.7
28.0
51.6
6.4
FY19
2Q
29.8
20.0
38.8
32.1
15.8
34.9
36.6
47.8
8.6
21.8
26.6
33.2
10.6
18.3
18.2
26.6
20.7
16.6
32.8
30.5
31.9
30.2
35.1
44.7
38.0
27.4
47.0
8.6
QoQ (bp)
3Q
28.1
17.2
36.0
30.2
15.4
33.8
34.4
46.2
8.9
20.4
25.3
26.6
11.8
16.5
18.2
24.3
19.6
18.8
30.3
27.4
29.6
30.4
32.3
41.1
34.5
25.7
50.8
6.3
-169
-275
-280
-195
-36
-108
-212
-168
24
-148
-136
-661
115
-184
-2
-224
-108
218
-246
-311
-232
17
-279
-364
-356
-175
376
-235
YoY (bp)
127
-50
506
405
391
364
-431
20
226
-494
-646
-1,124
128
-474
-15
-377
-618
-2,981
-928
-1,526
-1,072
-114
-899
231
-114
-230
1,126
173
Metro + A circles
Mumbai
Delhi
Kolkata
Maharashtra
TN & Chennai
AP
Karnataka
Gujarat
B Circles
UP-East
Rajasthan
Kerala
MP
UP(W)
Punjab
West Bengal
Haryana
C Circles
Bihar
Orissa
Assam
HP
J&K
North East
Total
NLD as a % of AGR
ILD as a % of AGR
Source: MOSL, Company
25 February 2018
4
 Motilal Oswal Financial Services
Telecom | Update
Exhibit 7: Vodafone Idea: AGR market share (%)
FY17
Metro + A circles
Mumbai
Delhi
Kolkata
Maharashtra
TN & Chennai
AP
Karnataka
Gujarat
B Circles
UP-East
Rajasthan
Kerala
MP
UP(W)
Punjab
West Bengal
Haryana
C Circles
Bihar
Orissa
Assam
HP
J&K
North East
Total
NLD as a % of AGR
ILD as a % of AGR
1Q
39.4
46.5
40.1
41.2
64.6
29.5
34.6
22.0
38.9
43.8
34.8
34.1
70.8
42.4
40.5
46.6
51.0
41.1
22.0
22.5
21.9
26.7
20.7
14.7
20.1
38.9
16.7
2.1
2Q
37.9
45.6
40.2
41.8
63.3
18.8
34.7
22.4
64.4
50.4
44.2
33.9
70.9
53.7
56.7
42.7
46.9
58.3
22.9
25.5
19.6
26.7
18.4
14.1
20.1
40.3
17.6
2.4
3Q
41.1
47.0
42.2
40.9
63.6
30.2
24.6
27.5
68.1
50.8
44.0
33.5
70.1
57.7
57.9
43.5
45.1
65.9
22.0
26.8
20.6
27.1
18.0
8.5
19.1
41.9
19.0
2.2
4Q
45.7
46.1
47.1
45.7
66.1
30.0
35.9
28.9
74.6
53.4
46.0
35.1
67.7
63.8
65.8
47.0
45.7
72.2
24.0
29.1
22.8
29.1
19.5
8.9
19.3
45.5
10.1
15.0
1Q
46.2
51.4
42.3
48.8
68.8
31.9
36.2
26.3
76.2
54.6
48.0
39.3
67.6
60.5
61.6
47.3
53.8
66.3
27.0
30.3
25.9
28.3
18.0
16.4
23.0
46.8
29.9
2.5
FY18
2Q
37.2
41.7
30.2
38.2
57.7
27.2
29.4
20.9
58.4
44.6
40.3
31.4
60.6
47.2
49.5
35.4
46.3
47.3
20.8
23.7
18.7
22.9
11.7
11.7
19.5
37.8
36.1
2.9
3Q
37.7
38.8
30.5
37.6
59.9
27.9
28.7
21.9
58.5
45.0
39.3
29.9
60.7
47.1
47.9
33.1
43.6
155.0
20.0
22.7
18.0
21.8
13.0
11.4
18.1
38.0
45.1
2.8
4Q
38.6
40.1
20.9
41.3
59.3
31.9
28.7
23.8
58.6
42.1
34.0
29.6
60.9
43.7
44.6
34.1
43.7
52.3
20.7
21.2
18.5
26.4
13.4
13.9
23.4
37.5
61.0
4.6
1Q
35.4
40.4
19.1
41.4
53.9
31.4
25.5
20.7
54.1
38.5
36.8
24.8
57.5
39.2
41.1
28.9
41.8
33.3
17.6
18.4
16.1
23.3
8.9
10.0
19.3
34.2
71.0
5.3
FY19
2Q
32.6
38.7
21.2
43.4
47.3
29.3
23.5
18.7
48.8
33.6
31.6
21.5
55.5
31.4
36.2
25.5
36.2
28.9
14.9
15.5
13.2
20.8
6.5
8.0
17.6
30.7
39.2
2.9
QoQ (bp) YoY (bp)
3Q
31.3
36.4
21.8
42.8
44.7
27.9
22.7
17.7
46.4
30.6
30.0
17.5
52.1
27.7
33.4
23.5
32.2
31.6
13.4
13.9
11.6
19.1
5.2
7.4
16.5
28.8
41.0
2.7
-125
-227
65
-59
-258
-140
-88
-99
-241
-303
-154
-394
-333
-369
-286
-200
-399
270
-147
-165
-154
-175
-128
-68
-111
-192
176
-15
-636
-232
-866
522
-1,523
2
-603
-418
-1,215
-1,443
-931
-1,244
-860
-1,940
-1,456
-961
-1,145
-12,336
-658
-882
-633
-269
-776
-402
-159
-919
-409
-8
Source: MOSL, Company
25 February 2018
5
 Motilal Oswal Financial Services
Telecom | Update
Exhibit 8: Reliance Jio Infocomm: AGR market share (%)
2Q
13.9
11.3
16.5
13.2
12.3
12.8
14.2
12.3
20.3
14.4
10.9
15.2
10.2
16.6
15.3
18.3
14.4
20.4
12.6
11.6
14.3
10.9
22.6
11.8
10.9
13.9
3.0
0.2
FY18
3Q
18.3
17.7
23.9
19.8
17.3
15.5
18.6
14.2
25.0
21.2
15.9
22.7
13.1
22.4
21.8
26.8
20.9
108.5
21.4
21.0
23.5
18.4
26.9
25.7
17.8
19.7
-1.3
0.3
4Q
23.4
25.9
34.8
24.0
20.3
23.2
22.7
15.7
30.1
26.2
24.2
30.4
13.8
29.9
26.7
32.7
29.3
25.3
32.0
30.3
31.2
32.0
25.1
49.6
27.6
25.6
1.4
0.1
1Q
25.3
23.7
29.6
25.3
24.5
24.7
26.3
18.2
32.9
32.5
29.9
36.4
17.6
37.3
33.9
37.8
32.6
42.6
39.2
41.7
39.4
37.6
43.5
31.2
31.8
29.6
1.0
0.5
FY19
2Q
27.5
24.2
28.5
17.8
28.8
27.0
30.7
20.5
36.3
38.3
38.2
40.6
18.8
46.0
40.0
40.3
39.4
48.0
46.7
51.3
46.3
43.4
46.0
40.2
36.4
33.7
0.9
0.2
QoQ (bp)
3Q
30.6
25.8
32.4
19.1
32.3
30.1
33.3
24.6
38.0
43.6
41.0
50.6
20.8
51.2
43.7
43.5
45.0
64.0
51.0
56.0
50.2
45.3
52.6
45.1
42.0
37.8
1.4
0.3
300
161
391
135
353
310
262
407
169
528
284
1,001
194
519
370
314
566
1,596
425
468
387
186
662
495
560
405
49
7
YoY (bp)
1,221
806
854
-67
1,499
1,458
1,474
1,038
1,298
2,241
2,515
2,792
771
2,886
2,181
1,662
2,409
-4,451
2,956
3,506
2,665
2,691
2,577
1,943
2,419
1,804
268
1
Metro + A circles
Mumbai
Delhi
Kolkata
Maharashtra
TN & Chennai
AP
Karnataka
Gujarat
B Circles
UP-East
Rajasthan
Kerala
MP
UP(W)
Punjab
West Bengal
Haryana
C Circles
Bihar
Orissa
Assam
HP
J&K
North East
Total
NLD as a % of AGR
ILD as a % of AGR
Source: MOSL, Company
25 February 2018
6
 Motilal Oswal Financial Services
Telecom | Update
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Securities Ltd. (MOSL)* is a SEBI Registered Research Analyst having registration no. INH000000412. MOSL, the Research Entity (RE) as defined in the Regulations,
is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial products. MOSL is a
subsidiary company of Motilal Oswal Financial Service Ltd. (MOFSL). MOFSL is a listed public company, the details in respect of which are available on
www.motilaloswal.com.
MOSL is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock
Exchange Limited (BSE), Multi Commodity Exchange of India (MCX) & National Commodity & Derivatives Exchange Ltd. (NCDEX) for its stock broking activities & is Depository
participant with Central Depository Services Limited (CDSL) & National Securities Depository Limited (NSDL) and is member of Association of Mutual Funds of India (AMFI) for
distribution of financial products. Details of associate entities of Motilal Oswal Securities Limited are available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and buy
or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOSL even though
there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should
be aware that MOSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant
banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Securities Limited are available on the website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from
MOSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or
use would be contrary to law, regulation or which would subject MOSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong
Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal 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
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL in
respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”, of
which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOSL has not received any compensation or other benefits from third party in connection with the research report
10 MOSL has not engaged in market making activity for the subject company
****************************************************************
****************************************************************
25 February 2018
7
 Motilal Oswal Financial Services
Telecom | Update
The associates of MOSL may have:
-
financial interest in the subject company
-
actual/beneficial ownership of 1% or more securities in the subject company
-
received compensation/other benefits from the subject company in the past 12 months
-
other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
-
acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
-
be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
-
received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOSL also earns DP income from clients
which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and may
not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of
MOSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature. The
information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty, representation
of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The report is
prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments for
the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOSL will not treat recipients as customers by
virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed,
in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose
and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report
constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities
discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives,
financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this document
should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including
the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be
suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade securities - involve substantial
risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions
contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as
endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make modifications and
alternations to this statement as may be required from time to time without any prior approval. MOSL, its associates, their directors and the employees may from time to time, effect
or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to perform investment
banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a separate, distinct and
independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already
available in publicly accessible media or developed through analysis of MOSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the
views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other
person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of
or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject MOSL
to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of
investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. Neither the Firm, not its directors, employees,
agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in
connection with the use of the information.
The person accessing this information specifically agrees to exempt MOSL or any of its affiliates or employees from, any and all
responsibility/liability arising from such misuse and agrees not to hold MOSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOSL or
any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and
delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022-3980 4263; www.motilaloswal.com.
Correspondence Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 3080 1000. Compliance Officer:
Neeraj Agarwal, Email Id:
na@motilaloswal.com,
Contact No.:022-38281085.
Registration details: MOSL: SEBI Registration: INZ000158836 (BSE/NSE/MCX/NCDEX); CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412.
AMFI: ARN 17397. Investment Adviser: INA000007100. Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670) offers PMS and Mutual
Funds products. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) offers wealth management solutions. *Motilal Oswal Securities Ltd. is
a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs, Insurance and IPO products. *Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. offers Real Estate
products. * Motilal Oswal Private Equity Investment Advisors Pvt. Ltd. offers Private Equity products.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench. The existing registration no(s) of MOSL would be used until receipt of new MOFSL registration numbers.
25 February 2018
8