14 October 2022

2QFY23 Results Update | Sector: Technology

Mindtree
Estimate change CMP: INR3,324 TP: INR 3,350 (+1%) Neutral
TP change
Rating change
Another good quarter; valuations priced in
Focusing on synergies with LTI integration in 3QFY23E
Bloomberg MTCL IN  Mindtree (MTCL) reported 2QFY23 revenue of USD422m (up 7.2% QoQ in
Equity Shares (m) 165 CC), 210bp ahead of our estimate. Reported USD revenue grew 5.7% QoQ,
M.Cap.(INRb)/(USDb) 548.2 / 6.7 driven by broad-based growth across verticals, with RCM (+2.9% QoQ in CC)
52-Week Range (INR) 5059 / 2650 back in growth track. Deal TCV in 2QFY23 was strong at USD518m, up 44%
1, 6, 12 Rel. Per (%) 4/-17/-18 YoY, and aided the company surpass USD1b TCV in 1HFY23.
12M Avg Val (INR M) 3451  EBITDA margin contracted 10bp QoQ (50bp ahead of MOFSLe) to 21.0%,
despite the full impact of wage hikes during the quarter. The company was
Financials & Valuations (INR b) able to compensate for this through operational efficiency, currency support
Y/E Mar 2022 2023E 2024E and reversal of a one-off cost last quarter. Utilization (down 50bp QoQ) and
Sales 105.3 137.3 158.1 attrition (decline of 40bp QoQ to 24.1%) were broadly stable.
EBIT Margin (%) 18.6 19.4 19.7  MTCL’s management indicated that it has started to witness some softness
PAT 16.5 21.2 25.1
and caution in parts of the business (especially in Europe), although these
EPS (INR) 100.1 128.4 152.2
appear to be transitory in its opinion. Management remained confident that
EPS Gr. (%) 48.6 28.2 18.6
BV/Sh. (INR) 332 403 487
MTCL will be able to take advantage of the acquired projects that are cost-
Ratios saving in nature, thereby boosting both performance and TCV. Strong
RoE (%) 33.8 35.0 34.3 commentary in other verticals, deal pipeline, and TCV should help it deliver a
RoCE (%) 27.2 30.0 28.6 solid revenue growth in FY23E, as we expect USD revenue CAGR of 16.5%
Payout (%) 37.0 45.0 45.0 over FY22-24.
Valuations  MTCL should keep its profitability within a narrow range going ahead, which will
P/E (x) 33.2 25.9 21.8 help it absorb any adverse macro impact. Good revenue growth and stable
P/BV (x) 10.0 8.3 6.8
margin should help it deliver 23% PAT CAGR in INR terms over FY22-24E.
EV/EBITDA (x) 23.4 17.2 14.4
 We maintain our Neutral rating on MTCL due to its fair valuations (based on
Div Yield (%) 1.1 1.7 2.1
22x FY24E P/E), softness in Retail and constrains on management bandwidth
Shareholding pattern (%) because of its impending merger with LTI.
As On Jun-22 Mar-22 Jun-21  We raise our FY23/FY24 EPS estimates by 3%/6% due to strong growth and
Promoter 61.0 61.0 61.0 margin beat. As the stock is trading at 22x FY24E EPS, we see limited upside
DII 12.1 10.5 12.0 hereafter. Our TP of INR3,350 is premised on 22x FY24E EPS.
FII 11.7 14.4 13.7
Others 15.3 14.2 13.3 Strong 2QFY23 revenue performance and deal wins
FII Includes depository receipts  MTCL’s USD revenue grew 7.2% QoQ in CC terms, INR EBIT rose 39% YoY, and
INR PAT increased 28% YoY in 2QFY23.
 For 1HFY23, USD revenue/INR EBIT/INR PAT rose 24%/43%/32%,
respectively.
 FCF was at INR2.76b translating into ~55% FCF to Net Income conversion;
Cash and Investments stood at INR38b.
 The US drove the good performance in 2QFY23 (+7.5% QoQ), while Europe
was impacted adversely by currency depreciation.
 MTCL achieved the second-highest deal TCV of USD518m, down 9% QoQ but
up 44% YoY; it clocked 1.2x book-to-bill ratio.
 Net profit was up 8% QoQ to INR5.09b (in line) due to lower other income.

Mukul Garg - Research analyst ([email protected])

Raj Prakash Bhanushali - Research analyst ([email protected])
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Mindtree

Key highlights from the management commentary

 Clients that were earlier focusing on transformation work now prefer efficiency.
MTCL is in a sweet spot to service both transformation and efficiency deals.
Management also suggested that efficiency deals are generally longer in duration.
 Though macro indicators point to near-term softness, management expects
them to be transitory. The current period of volatility is unlikely to be an
exception to long-term technology shift.
 Management expects some negative impact in 3QFY23 due to seasonality from
furloughs and some slowdown in client projects.
 Margins in 3QFY23 might be hurt by seasonality and currency headwinds.
Valuations fair, upside limited
 The management’s increased focus on annuity revenue and strategic accounts is
reflected in its revenue and client mix.
 A strong outlook on strategic accounts, decent deal signings, and the ability to
sustain improved margin are key positives for the company.
 The stock is currently trading at 22x FY24E EPS. As the key positives are already
factored in, we see limited upside hereafter. Our TP of INR3,350 implies 22x
FY24E EPS. We maintain our Neutral rating on the stock.
Quarterly performance (INR m)
Y/E March FY22 FY23E FY22 FY23E FY23E Var.
1Q 2Q 3Q 4Q 1Q 2Q 3QE 4QE 2QE (%/bp)
Revenue (USD m) 311 350 366 384 399 422 430 444 1,411 1,696 416 1.6
QoQ (%) 7.7 12.8 4.7 4.7 4.0 5.7 2.0 3.1 31.1 20.2 4.1 162bp
Revenue (INR m) 22,917 25,862 27,500 28,974 31,211 34,004 35,503 36,613 1,05,253 1,37,331 33,125 2.7
YoY (%) 20.1 34.3 35.9 37.4 36.2 31.5 29.1 26.4 32.1 30.5 28.1 340bp
GPM (%) 29.0 28.9 30.4 30.1 31.0 29.7 30.5 31.5 29.6 30.7 29.9 -16bp
SGA (%) 8.8 8.4 8.8 9.1 9.9 8.7 9.4 9.5 8.8 9.4 9.4 -71bp
EBITDA (INR m) 4,645 5,307 5,921 6,083 6,581 7,157 7,491 8,039 21,956 29,268 6,791 5.4
EBITDA margin (%) 20.3 20.5 21.5 21.0 21.1 21.0 21.1 22.0 20.9 21.3 20.5 55bp
EBIT (INR m) 4,063 4,697 5,289 5,487 5,982 6,506 6,781 7,307 19,536 26,576 6,128 6.2
EBIT margin (%) 17.7 18.2 19.2 18.9 19.2 19.1 19.1 20.0 18.6 19.4 18.5 63bp
Other income 589 623 581 778 273 161 533 549 2,571 1,516 497 -67.6
ETR (%) 26.2 25.0 25.5 24.5 24.6 23.7 25.0 25.0 25.2 24.6 25.0 -130bp
PAT 3,434 3,989 4,375 4,731 4,716 5,087 5,485 5,892 16,529 21,180 4,969 2.4
QoQ (%) 8.2 16.2 9.7 8.1 -0.3 7.9 7.8 7.4 5.4 251bp
YoY (%) 61.2 57.2 34.0 49.1 37.3 27.5 25.4 24.5 48.8 28.1 24.6 297bp
EPS (INR) 20.8 24.2 26.5 28.7 28.6 30.8 33.2 35.7 100.1 128.4 30.1 2.4
E: MOFSL estimates
Key performance indicators
Y/E March FY22 FY23E FY22 FY23E
1Q 2Q 3Q 4Q 1Q 2Q 3QE 4QE
Margins
Gross margin 29.0 28.9 30.4 30.1 31.0 29.7 30.5 31.5 29.6 30.7
EBIT margin 17.7 18.2 19.2 18.9 19.2 19.1 19.1 20.0 18.6 19.4
Net margin 15.0 15.4 15.9 16.3 15.1 15.0 15.5 16.1 15.7 15.4
Operating metrics
Headcount 27,256 29,732 31,959 34,827 37,455 38,290 27,256
Attrition (%) 13.7 17.7 21.9 23.8 24.5 24.1 13.7
Utilization 83.2 82.9 81.5 83.1 81.2 80.7 82.4
Deal win TCV (USD m) 504.0 360.0 358.0 390.0 570.0 518.0 1494.0
Top client (YoY %)
Top client 11.6 12.8 16.8 18.4 22.0 30.5 15.0
Outside top 10 clients 34.1 45.5 44.4 40.5 33.0 20.8 41.3
Key geographies (YoY %)
North America 18.9 26.2 26.4 28.0 28.9 29.3 26.9 24.2 25.0 27.2

14 October 2022 2
 Mindtree

Highlights from the management commentary

2QFY23 performance and order book
 MTCL delivered a strong growth of 7.2% QoQ (in CC) in 2QFY23.
 It clocked the second-highest order book ever at USD518m after record 1Q deals
(down 9% QoQ, up 44% YoY).
 The order book has a good mix of deals with both cost optimization and revenue
maximization projects. There are quite a few multi-year opportunities in the
deals closed in 1HFY23.
 Clients that were earlier focusing on transformation work now prefer efficiency.
MTCL is in a sweet spot to service both transformation and efficiency deals.
Management also suggested that efficiency deals are generally longer in
duration.
Overall demand environment
 Though macro indicators point to near-term softness, management expects
them to be transitory. The current period of volatility is unlikely to be an
exception to long-term technology shift.
 Though there is a lot of apprehension and caution in decision making in Europe,
MTCL has not seen any cancellations until now.
Vertical outlook
 The Communications, Media, and Technology verticals witnessed strong
demand in product engineering and customer experience.
 Manufacturing has lots of digital transformation opportunities despite the
challenging macro environment.
 Retail should see improvement going forward as the ramp downs are behind. It
has a good amount of dependency on the UK and continental Europe.
 In the Travel vertical, diversification in newer areas aided growth.
Margin performance
 MTCL reported an EBITDA margin of 21% (-10bp QoQ) despite the full-quarter
impact of wage hikes.
 Margin for the quarter was adversely impacted by 280bp from planned wage
hikes while it benefited 50bp from favorable FX, 70bp from operational
efficiency and 110bp from a one-off in 1QFY23.
 There was no material change in utilization on a QoQ basis and management
expects it to remain in the 80-82% range.
 MTCL received good amount of price realization this quarter.
Outlook
 Management expects some negative impact in 3QFY23 due to seasonality from
furloughs and some slowdown in client projects.
 Margins in 3QFY23 might be hurt by seasonality and currency headwinds.
Other highlights
 LTM attrition moderated 40bp QoQ to 24.1%. MTCL expects it to trend down in
the coming quarters.
 Fresher hiring and deployment remained strong during the quarter.
 For LTI-Mindtree merger, the last leg of regulatory approval is pending and is
likely to close in this calendar year.

14 October 2022 3
 Mindtree

Exhibit 1: Growth led by BFSI

Contribution to Growth Growth
Verticals
revenue (%) (QoQ %) (YoY %)
Communications, Media, and Technology 43.5 4.3 23.4
BFSI 19.4 10.3 33.7
Manufacturing, CPG, and Retail 18.6 -0.7 -11.7
Travel and Hospitality 15.9 9.1 42.0
Source: Company, MOFSL

Exhibit 2: Growth led by North America; Europe slows down

Contribution to Growth Growth
Geographies
revenue (%) (QoQ %) (YoY %)
North America 78.1 7.5 29.3
Continental Europe 8.7 -9.1 -6.6
The UK and Ireland 10.9 3.2 -26.7
Asia Pacific 7.6 5.0 34.6
Source: Company, MOFSL

Exhibit 3: Cloud led the QoQ growth in its service offerings

Contribution to Growth Growth
Service offerings
revenue (%) (QoQ %) (YoY %)
Customer Success 40.7 5.5 13.6
Data and Intelligence 16.1 7.0 35.7
Cloud 20.3 10.0 30.9
Enterprise IT 22.9 1.7 16.0
Source: Company, MOFSL

Valuations fair, upside limited

 The management’s increased focus on annuity revenue and strategic accounts is
reflected in its revenue and client mix.
 A strong outlook on strategic accounts, decent deal signings, and the ability to
sustain improved margin are key positives for the company.
 The stock is currently trading at 22x FY24E EPS. As the key positives are already
factored in, we see limited upside hereafter. Our TP of INR3,350 is premised on
22x FY24E EPS. We maintain our Neutral rating on the stock.

Exhibit 4: Revisions to our estimates

Revised Earlier Change (%)
FY23E FY24E FY23E FY24E FY23E FY24E
USD:INR 80.9 82.5 80.4 81.8 0.7 0.9
Revenue (USD m) 1,696 1,916 1,677 1,880 1.1 1.9
Growth (%) 20.2 13.0 18.9 12.1 130bps 90bps
EBIT margin (%) 19.4 19.7 19.0 19.0 40bps 70bps
PAT (INR m) 21,180 25,121 20,595 23,660 2.8 6.2
EPS 128.4 152.2 124.8 143.3 2.9 6.2
Source: MOFSL

14 October 2022 4
 Mindtree

Story in charts
Exhibit 5: Strong deal wins in 2QFY23

Deal wins 570

504 518

375 360 390

358
303 312

2QFY21

3QFY21

4QFY21

1QFY22

2QFY22

3QFY22

4QFY22

1QFY23

2QFY23
Source: Company, MOFSL

Exhibit 6: Revenue grows 5.7% QoQ in 2QFY23 Exhibit 7: Margin largely flat in 2QFY23 despite wage hikes

Revenue growth (QoQ %) EBIT margins

12.8
19.6 18.6 19.2 18.9 19.2 19.1
17.7 18.2
7.7 16.7
5.0 5.1 5.7
4.7 4.7 4.0
3.1

4QFY22
2QFY21

3QFY21

4QFY21

1QFY22

2QFY22

3QFY22

1QFY23

2QFY23
2QFY21

3QFY21

4QFY21

1QFY22

2QFY22

3QFY22

4QFY22

1QFY23

2QFY23

Source: Company, MOFSL Source: Company, MOFSL

Exhibit 8: Utilization moderates in 2QFY23 Exhibit 9: Offshoring touches new highs in 2QFY23

Utilization (incl. trainees) Offshore Effort (%)

84.3 86.0 86.3 86.6 86.5

83.1 83.2 82.9 83.1 85.0
81.5 81.2 82.9 83.5
80.7 82.8
82.1
78.8
4QFY22
2QFY21

3QFY21

4QFY21

1QFY22

2QFY22

3QFY22

4QFY22

1QFY23

2QFY23

2QFY21

3QFY21

4QFY21

1QFY22

2QFY22

3QFY22

1QFY23

2QFY23

Source: Company, MOFSL Source: Company, MOFSL

14 October 2022 5
 Mindtree

Operating metrics
Exhibit 10: Operating metrics
2QFY21 3QFY21 4QFY21 1QFY22 2QFY22 3QFY22 4QFY22 1QFY23 2QFY23
Geographic mix (%)*
North America 77.4 77.2 76.6 76.6 72.8 73.0 73.6 76.8 78.1
Continental Europe 7.5 7.4 7.1 8.6 8.7 18.6 17.7 14.7 13.4
The UK and Ireland 7.9 7.8 8.6 7.6 10.9
Asia Pacific 7.2 7.6 7.7 7.2 7.6 8.4 8.7 8.5 8.5
Utilization (%)
Including trainees 78.8 83.1 84.3 83.2 82.9 81.5 83.1 81.2 80.7
Client metrics
No. of active clients 283 276 270 260 263 265 276 274 276
New clients added 8 8 4 7 7 8 11 13 8
Client buckets
USD1m clients 125 120 118 120 127 136 139 145 160
USD5m clients 43 43 44 47 50 52 56 58 61
USD10m clients 24 21 20 25 30 33 32 35 34
USD50m clients 1 1 1 1 1 1 1 1 1
USD100m clients 1 1 1 1 1 1 1 1 1
Contribution from clients (%)
Top clients 28.9 28.5 28.0 27.4 24.3 24.9 24.9 26.0 26.3
Top five clients 40.6 39.8 38.6 38.5 35.7 35.4 35.7 37.0 36.9
Top 10 clients 49.4 49.0 47.3 47.5 45.1 44.9 44.4 45.7 45.0
Service lines (%)*
Customer success 38.9 38.1 38.6 40.0 43.2 42.9 42.9 40.8 40.7
Data and Intelligence 14.2 14.9 16.0 15.0 14.3 14.8 14.9 15.9 16.1
Cloud 19.0 19.2 19.4 19.9 18.7 19.1 19.1 19.5 20.3
Enterprise IT 27.9 27.8 26.0 25.1 23.8 23.2 23.1 23.8 22.9
Source: MOFSL, Company

14 October 2022 6
 Mindtree

Financials and valuations

Income Statement (INR m)
Y/E March FY17 FY18 FY19 FY20 FY21 FY22 FY23E FY24E
Sales 52,365 54,628 70,215 77,643 79,678 1,05,253 1,37,331 1,58,053
Change (%) 12.1 4.3 28.5 10.6 2.6 32.1 30.5 15.1
Cost of Services 36,500 38,192 47,997 55,686 56,862 74,066 95,193 1,08,632
SG&A Expenses 8,681 9,021 11,522 10,582 6,249 9,231 12,869 15,136
EBITDA 7,184 7,415 10,696 11,375 16,567 21,956 29,268 34,285
As a percentage of Net Sales 13.7 13.6 15.2 14.7 20.8 20.9 21.3 21.7
Depreciation and Amortization 1,850 1,715 1,692 2,754 2,596 2,420 2,692 3,161
Other Income 216 1,723 864 -333 1,013 2,571 1,516 2,371
PBT 5,550 7,423 9,868 8,288 14,984 22,107 28,092 33,495
Tax 1,390 1,722 2,327 1,979 3,879 5,578 6,911 8,374
Rate (%) 25.0 23.2 23.6 23.9 25.9 25.2 24.6 25.0
PAT 4,160 5,701 7,541 6,309 11,105 16,529 21,180 25,121
Change (%) -24.7 37.0 32.3 -16.3 76.0 48.8 28.1 18.6

Balance Sheet (INR m)

Y/E March FY17 FY18 FY19 FY20 FY21 FY22 FY23E FY24E
Share Capital 1,680 1,639 1,642 1,646 1,647 1,648 1,648 1,648
Other components 1,019 0 993 0 0 0 0 0
Reserves 23,072 25,775 30,430 29,922 41,543 53,091 64,740 78,557
Net Worth 25,771 27,414 33,065 31,568 43,190 54,739 66,388 80,205
Loans 991 3,009 10 0 0 0 0 0
Long-term liabilities 301 85 174 6,762 4,498 4,826 7,753 8,922
Capital Employed 27,063 30,508 33,249 38,330 47,688 59,565 74,141 89,127
Gross Block 14,288 15,988 12,321 14,321 16,421 18,921 21,421 23,921
Less: Depreciation 7,995 9,710 889 3,643 6,239 8,659 11,351 14,512
Net Block 5,942 5,121 5,234 9,496 8,250 9,235 9,043 8,382
Goodwill 4,470 4,539 4,732 4,732 4,732 4,732 4,732 4,732
Other LT Assets 2,826 2,616 2,952 3,985 3,717 3,750 6,407 7,373
Investments 58 58 1,200 804 1,161 3,116 3,116 3,116
Curr. Assets 20,610 25,031 27,672 32,549 45,754 60,740 77,276 94,120
Current Investments 5,869 10,287 6,920 8,905 19,307 22,391 26,476 30,561
Debtors 11,187 10,155 16,347 17,194 15,665 23,124 28,821 33,169
Cash and Bank Balance 2,508 3,289 2,562 3,909 7,597 10,513 16,560 24,153
Other Current Assets 1,046 1,283 1,843 2,541 3,144 4,696 5,419 6,237
Current Liab. and Prov. 6,843 6,857 8,541 13,236 15,926 22,008 26,432 28,595
Trade payables 1,651 1,710 2,131 2,587 2,676 5,357 6,396 7,361
Other liabilities 4,087 3,929 5,666 8,925 11,023 14,209 16,198 16,816
Provisions 1,105 1,218 744 1,724 2,227 2,442 3,838 4,418
Net Current Assets 13,767 18,174 19,131 19,313 29,828 38,732 50,844 65,525
Application of Funds 27,063 30,508 33,249 38,330 47,688 59,565 74,141 89,127
E: MOFSL estimates

14 October 2022 7
 Mindtree

Financials and valuations

Ratios
Y/E March FY17 FY18 FY19 FY20 FY21 FY22 FY23E FY24E
Basic (INR)
EPS 24.7 34.2 45.8 38.3 67.4 100.1 128.4 152.2
Cash EPS 35.7 44.5 56.1 55.1 83.1 114.8 144.7 171.4
Book Value 153.5 164.9 201.5 191.9 262.2 332.2 402.7 486.6
DPS 10.0 9.0 33.0 16.0 25.0 37.0 57.8 68.5
Payout (%) 40.4 26.3 72.0 41.7 37.1 37.0 45.0 45.0
Valuation (x)
P/E ratio 134.4 97.1 72.5 86.7 49.3 33.2 25.9 21.8
Cash P/E ratio 93.0 74.7 59.2 60.3 40.0 29.0 23.0 19.4
EV/EBITDA ratio 76.6 73.1 50.1 46.9 31.4 23.4 17.2 14.4
EV/Sales ratio 10.5 9.9 7.6 6.9 6.5 4.9 3.7 3.1
Price/Book Value 21.7 20.2 16.5 17.3 12.7 10.0 8.3 6.8
Dividend Yield (%) 0.3 0.3 1.0 0.5 0.8 1.1 1.7 2.1
Profitability Ratios (%)
RoE 16.7 21.4 24.9 19.5 29.7 33.8 35.0 34.3
RoCE 15.6 16.3 22.7 18.3 24.1 27.2 30.0 28.6
Turnover Ratios
Debtors (Days) 78 68 85 81 72 80 77 77
Fixed Asset Turnover (x) 8.8 10.7 13.4 8.2 9.7 11.4 15.2 18.9

Cash Flow Statement (INR m)

Y/E March FY17 FY18 FY19 FY20 FY21 FY22 FY23E FY24E
CF from Operations 5,318 6,477 8,716 9,792 13,868 18,484 22,357 25,912
Cash for Working Capital 902 -819 -2,371 -1,541 6,092 -3,114 -1,709 -2,801
Net Operating CF 6,220 5,658 6,345 8,251 19,960 15,370 20,648 23,111
Net Purchase of FA -846 -1,011 -1,759 -1,220 -160 -1,972 -2,500 -2,500
Free Cash Flow 5,374 4,647 4,586 7,031 19,800 13,398 18,148 20,611
Net Purchase of Invest. -3,687 -989 -225 991 -11,673 -4,888 -2,569 -1,714
Net Cash from Invest. -4,533 -2,000 -1,984 -229 -11,833 -6,860 -5,069 -4,214
Proc. from equity issues 8 1 3 4 1 1 0 0
Proceeds from LTB/STB 550 1,906 -3,044 -1,024 -1,346 -1,430 0 0
Dividend Payments -1,934 -4,782 -2,180 -5,940 -2,880 -4,528 -9,531 -11,305
Cash Flow from Fin. -1,376 -2,875 -5,221 -6,960 -4,225 -5,957 -9,531 -11,305
Exchange difference -135 -2 133 285 -214 363 0 0
Net Cash Flow 176 781 -727 1,347 3,688 2,916 6,047 7,592
Opening Cash Bal. 2,332 2,508 3,289 2,562 3,909 7,597 10,513 16,560
Add: Net Cash 176 781 -727 1,347 3,688 2,916 6,047 7,592
Closing Cash Bal. 2,508 3,289 2,562 3,909 7,597 10,513 16,560 24,152
E: MOFSL estimates

14 October 2022 8
 Mindtree

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 be
within following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Depository participant services & distribution of various financial products. MOFSL is a listed public
company, the details in respect of which are available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities &
Exchange Board of India (SEBI) and is a registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi
Commodity Exchange of India Limited (MCX) and National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with
Central Depository Services Limited (CDSL) National Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India
(AMFI) for distribution of financial products and Insurance Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products. Details of associate
entities of Motilal Oswal Financial Services Limited are available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report
should be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific
merchant banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the
website at https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at www.nseindia.com, www.bseindia.com. Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated
from MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
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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
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located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
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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.
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Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company

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The associates of MOFSL may have:

- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company at the end of the month immediately preceding the date of publication of the Research Report or
date of the public appearance.
- received compensation/other benefits from the subject company in the past 12 months
- any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however, the same shall have no bearing whatsoever on
the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL
even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- 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.
- Served subject company as its clients during twelve months preceding the date of distribution of the research report.

The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
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The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or
distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for
informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing
in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances.
The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this
document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this
document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views
expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade
securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of
the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and
should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make
modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from
time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to
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separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of
information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or
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accessing this information due to any errors and delays.
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