COMPANY UPDATE 13 FEB 2017

Sonata Software
BUY
INDUSTRY IT Platform-led growth
CMP (as on 10 Feb 2017) Rs 197 We met Sonata Softwares (SSOFs) CFO Prasanna positive in 3QFY17 and scaling of IP-driven
Target Price Rs 244 Oke for a business update and came away enthused revenues provides further cushion for margins.
about FY18-19 growth prospects. Management is
Nifty 8,794 Domestic Product & Services (DPS), which is a low-
confident of driving growth in the International IT
Sensex 28,334 margin business (64% of revenue mix and 23% of
services (IITS) business (36% of revenues, 77% of EBITDA) can continue to grow at 15-18% owing to
KEY STOCK DATA EBITDA) with diversified IP-led offerings (~40% of
entrenched relationships with IBM and Microsoft
Bloomberg/Reuters SSOF IN IITS revenue) and continued traction in Infra
(18 and 24 years), and high demand for cloud
services (IMS). Digital (31% of rev) growth will be
No. of Shares (mn) 105 products. These provide synergies to the IMS
fuelled by a focus on the IP platform, while IMS will
MCap (Rs bn) / ($ mn) 21/310 business. There is scope for a 100-150bps margin
continue to be a major beneficiary of higher cloud
expansion with a focus on higher margin products
6m avg traded value (Rs mn) 69 adoption. IMS has grown at 14% CQGR for the and services (license management).
STOCK PERFORMANCE (%) trailing eight quarters (19% of IITS revenue vs. 8% in
1QFY15). Valuation & Outlook
52 Week high / low Rs 225 / 126
Providing business solutions wrapped with IP has
We expect consolidated revenue/PAT to grow at a
3M 6M 12M CAGR of 19/12% for FY16-19E. We like Sonatas
Absolute (%) 24.9 30.0 26.6 been a major differentiator for SSOF. This becomes
scalable IP-focused business model, quality balance
Relative (%) 21.9 28.0 7.3 more relevant when the traditional IT services sheet (Net cash of Rs 19/share, 10% of Mcap), high
SHAREHOLDING PATTERN (%)
business model is being disrupted by new-age RoE (~30%), high dividend yield (~5%) and reasonable
SMAC/digital technologies. We believe IITS growth valuations. Maintain BUY with a TP of Rs 244 based
Promoters 30.95 will be powered by IP-led offerings such as Brick & on 12x Dec-18 EPS.
FIs & Local MFs 1.69 Click (Microsoft AX-based platform for Retail),
FPIs 13.34 RETINA (Retail analytics), Rezopia (Cloud-based Financial Summary
Public & Others 54.02
SaaS platform for Travel) and Halosys (Vertical YE Mar (Rs mn) FY15 FY16 FY17E FY18E FY19E
agnostic Enterprise Mobility Platform). Meanwhile, Net Sales 16,821 19,405 24,166 28,228 32,606
Source : BSE
OPD (~30% of IITS rev) is facing headwinds because EBITDA 1,676 1,919 2,011 2,382 2,834
Amit Chandra of scaling down of legacy spends by clients. APAT 1,337 1,586 1,624 1,892 2,217
amit.chandra@hdfcsec.com We expect IITS US$ revenue to grow at a CAGR of Diluted EPS (Rs) 12.7 15.1 15.4 18.0 21.1
+91-22-6171-7345 P/E (x) 15.5 13.1 12.7 10.9 9.3
14% for FY16-19E, while margins will be in the 22-
24% range (considerably ahead of peers), as EV / EBITDA (x) 11.2 9.2 8.7 7.2 5.8
Apurva Prasad
Apurva.prasad@hdfcsec.com investments in the sales engine are almost RoE (%) 33.3 35.3 32.7 33.7 34.3
+91-22-6171-7327 complete. The IBIS acquisition has turned EBITDA Source: Company, HDFC sec Inst Research

HDFC securities Institutional Research is also available on Bloomberg HSLB <GO> & Thomson Reuters

Key takeaways
IPs and Platforms will lead
IITS growth
Have strengthened the sales
team to improve deal wins
IBIS and Halosys acquisitions
are set to yield results
IITS growth will be led by
Travel and Retail; OPD has
stabilised
IBIS, which is an advanced supply chain management
platform based on Microsofts AX platform, has a
current annual run rate of US$ 6-7mn. IBIS has
stabilised and will contribute to growth and EBITDA in
FY18E.
Microsofts AX-based Brick & Click platform and
RETINA are seeing traction among retailers; deal size
is in the range of ~US$1.5-3mn.
There will be no significant impact of the proposed
changes in H1B visa regulations. Only ~60 people are
on H1B (2% of employees).
Tridip Saha has joined as the head of the companys
European business recently. He has held sales
leadership positions in CSC and Mindtree, with
experience primarilarily in Retail, CPG and Travel
verticals. He holds a BE from Jadavpur University and
an MBA from IIM Ahmedabad.
Omprakash Subbarao has also joined as the Head of
Digital. He brings in great domain knowledge and has
25+ years of experience working in organisations like
Accenture, TCS, Infosys, AT&T etc.
SONATA SOFTWARE: COMPANY UPDATE
Growth in IITS business will be led by Retail & Travel
while OPD/ISV has stabilised. Three customers were
added in the quarter, two in US and one in Europe.
Halosys mobility platform has received US patent for
innovation in rule-based notification services. The
technology allows users to be notified across web,
SMS, email, in-app push notifications, based on a pre-
configured set of rules. It can be easily embedded in
enterprise systems like ERP and CRM, enabling digital
business innovations. It is vertical agnostic and can
easily be clubbed with existing offerings.
Travel (26% of IITS revenue) has been facing issues
due to Brexit and GBP depreciation. There are large
clients in Travel, which is a large tour operation in UK
region. SAP hybris and Rezopia are the two important
offerings in the Travel vertical.
The company gets 70% of IITS revenue from its top
10 clients. The top 3 account for ~50% of its IITS
revenues (One each in OPD, Travel and Retail).
There was a significant rise in offshore revenue owing
to a shift of the onsite work of one large client to an
off-shore centre. Onsite-offshore mix will remain in
the range of 40/60% respectively.
Page | 2
 SONATA SOFTWARE: COMPANY UPDATE

Total Revenue (Excluding Inter-Segment) Total Revenue Contribution (%)

(Rs bn) DPS IITS DPS IITS
35
100%
DPS accounts for the bulk of 30 90% 25
10.70 31 36 36 34 33 33
80%
revenues but contributed only 25
9.35 70%
23% to EBITDA 20 8.23 60%
7.07 50%
15 6.07
4.84 40% 75
3.33 22.18 69 64 64 66 67 67
10 19.12 30%
16.14
12.50 20%
5 9.77 10.85 10.93
DPS IITS revenue mix is going 10%
0 0%
to be more or less constant in

FY13

FY14

FY15

FY16

FY17E

FY18E

FY19E

FY13

FY14

FY15

FY16

FY17E

FY18E

FY19E
FY19 as both business
segments are growing
Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research

Total EBITDA (Excluding Inter-Segment) Total EBITDA Contribution (%)

(Rs bn) DPS IITS DPS IITS
4.0 100%
3.5 90%
IITS contributed 77% to 80%
3.0
EBITDA in FY16, however with 70% 66
2.5 75 75 73 72
rise in DPS margins, EBITDA 2.51
60% 80 77
contribution is set to rise 2.0 2.15 50%
1.5 1.83 1.87 40%
1.51 30%
1.0
0.85 20% 34
0.5 0.43 0.80 1.00 25 23 25 27 28
0.55 0.62 10% 20
0.22 0.28 0.38
0.0 0%
FY13

FY14

FY15

FY16

FY17E

FY18E

FY19E

FY13

FY14

FY15

FY16

FY17E

FY18E

FY19E
Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research

Page | 3
 SONATA SOFTWARE: COMPANY UPDATE

IITS US$ Rev Growth Trend IITS INR Rev Growth Trend
Revenue (US$ mn) YoY growth (RHS) Revenue (Rs bn) YoY growth (RHS)
(US$ mn) (%, YoY) (Rs bn) (%, YoY)
170 159.7 35 12 50
Management aims to double 10.70
150 139.5 9.35 45
revenues in the next four 122.4
30 10
130 8.23 40
years ~200mn in FY20E, which 107.8 25 8 7.07 35
110 98.3
is possible because of lower 6.07 30
90 79.2 20 6 4.84
revenue base and decent 61.2
25
70 3.35
portfolio of scalable IPs 15 4 20
50 15
10 2
30 10
10 5 0 5

FY13

FY14

FY15

FY16

FY17E

FY18E

FY19E
FY13

FY14

FY15

FY16

FY17E

FY18E

FY19E
IITS EBITA margin is set to Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research

rise, range targeted is 22-24%

IITS EBITDA, Margin Trend IITS Vertical Mix
EBITDA EBITDA margin (RHS) OPD TTL CPG & Retail Others
(Rs bn) (%)
100%
3 27 90% 18.8 17.7 17.7 17.3
2.51 25 30.6
3 80%
2.15 13.4 15.7
OPD, Travel and Retail form 23 70% 0.0 20.1 24.7
1.83 1.87
~83% of IITS revenue. 2 21 60%
1.51 19 50% 31.6 30.2 29.8
2 31.7 27.7
17 40%
1 0.85 15 30%
0.43 13 20% 37.8 37.6 36.7
1 30.4 30.3
11 10%
CPG & Retail have exhibited 0 9
0%

FY13

FY14

FY15

FY16

9MFY17
strong traction, has and
FY13

FY14

FY15

FY16

FY17E

FY18E

FY19E

grown from 13%in FY14 to

~25% in 9MFY17 Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research

Page | 4
 SONATA SOFTWARE: COMPANY UPDATE

IITS Geographical Mix IITS Top-10 Client Contribution

USA Europe RoW Top-10 Non Top-10
100% 100%
10.3 14.6 12.3 14.0 14.7
US remains the key 90% 90% 20.8 24.3 27.5 29.1 29.7
80% 80%
geography for OPD and Retail 70%
28.5
30.4 33.7 30.4 25.3 70%
60% 60%
50% 50%
40% 40% 79.2 75.7 72.5 70.9 70.3
30% 61.2 54.9 54.0 55.6 60.0 30%
20% 20%
Travel is largely UK focused,
10% 10%
has faced issues due to macro 0% 0%
uncertainties and currency

FY13

FY14

FY15

FY16

FY13

FY14

FY15

FY16
9MFY17

9MFY17
depreciation

Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research

IITS Headcount IITS Debtor Days

Business is largely from the
Nos
companys top 10 clients , 3,400 66 65

3,161
3,111
from where it gets 70% of IITS 64
3,200 62 62
revenue 2,896
62
3,000
60
2,800
58
2,445

2,600 56 56
56
2,257

2,400 54
2,200 52
2,000 50
FY13

FY14

FY15

FY16

FY13

FY14

FY15

FY16
9MFY17

9MFY17
Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research

Page | 5
 SONATA SOFTWARE: COMPANY UPDATE

IITS Vertical Mix

ADM IMS Testing AX BI E-commerce ERP Rezopia Mobility/Cloud

2.3
Digitalaccounts for 31% of 100% 3.6
1.3 5.2 Significant exposure (~40%)
4.3
revenues and is present 90%
5.1
3.0
4.3 to Platforms and new
5.0
across verticals. Growth in 8.9 6.3 services
9.3
Digital is largely due to 80% 9.0
7.1
traction in IMS and IPs 7.8
70%
14.2 15.3
14.3
60%

50% 16.9 16.0

18.5
40% 8.7
17.7
30% 12.3

20%
34.1
24.7 24.7
10%

0%
FY15

FY16

9MFY17
Source: Company, HDFC sec Inst Research

Page | 6
 SONATA SOFTWARE: COMPANY UPDATE

DPS Revenue Trend DPS EBITDA Margin Trend

Revenue Growth YoY% EBITDA EBITDA margin (RHS)
(Rs bn) (%, YoY) (Rs bn) (%)
1.2 5.0
25 22.18 35
1.00
1.0 4.5
Domestic Product & Services 20
19.12 30
0.80 4.0
market continues to be strong 16.14 25 0.8
and provides synergies to IMS 15 0.62 3.5
12.50 20 0.55
10.85 10.93 0.6
business 9.77
15 0.38 3.0
10
0.4 0.28
10 0.22 2.5
5 0.2
5 2.0
0 0 0.0 1.5
Performance of DPS business

FY13

FY14

FY15

FY16

FY17E

FY18E

FY19E

FY13

FY14

FY15

FY16

FY17E

FY18E

FY19E
is measured on gross margin
basis
Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research

DPS Headcount DPS Debtor Days

Higher investments have (Nos)
90.0

84
eaten up margins. DPS 170

153

76
76
80.0

148
Margin will be in the range of

72
150 70.0
~4-5%
60.0
122
120

52
118

130
50.0
110 40.0

90 30.0
20.0
70
10.0
50 0.0

FY13

FY14

FY15

FY16

9MFY17
FY13

FY14

FY15

FY16

9MFY17

Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research

Page | 7
 SONATA SOFTWARE: COMPANY UPDATE

IITS Segment Estimates

IITS (Rs million) FY15 FY16 FY17E FY18E FY19E
Revenue (US$ million) 98.3 107.8 122.4 139.5 159.7
% Growth 24.1 9.7 13.5 14.0 14.5
Revenue 6,070 7,068 8,234 9,346 10,701
% Growth 25.4 16.4 16.5 13.5 14.5
EBITDA 1,513 1,831 1,874 2,150 2,515
EBITDA Margin (%) 24.9 25.9 22.8 23.0 23.5
Source: Company, HDFC sec Inst Research

DPS Segment Estimates

DPS (Rs million) FY15 FY16 FY17E FY18E FY19E
Revenue 10,930 12,501 16,136 19,121 22,180
% Growth 0.7 14.4 29.1 18.5 16.0
EBITDA 382 548 620 803 998
EBITDA Margin (%) 3.5 4.4 3.8 4.2 4.5
Source: Company, HDFC sec Inst Research

Change in Estimates
Particulars Earlier estimates Revised estimates % change
FY18E
Revenue (Rs mn) 28,148 28,228 0.3
EBITDA (Rs mn) 2,379 2,382 0.1
EBITDA margin (%) 8.5 8.4 (1)bps
APAT 1,884 1,892 0.4
FY19E
Revenue (Rs mn) 32,324 32,606 0.9
EBITDA (Rs mn) 2,767 2,834 2.4
EBITDA margin (%) 8.6 8.7 13bps
APAT 2,171 2,217 2.1
Source: Company, HDFC sec Inst Research

Page | 8
 SONATA SOFTWARE: COMPANY UPDATE

Peer Valuation
Mcap CMP TP EPS (Rs) P/E (x) RoE (%)
Company Rating
(Rs bn) (Rs) (Rs) FY17E FY18E FY19E FY17E FY18E FY19E FY17E FY18E FY19E
Mphasis 118 559 BUY 640 38.0 41.4 45.5 14.7 13.5 12.3 12.4 12.9 13.3
Mindtree 78 467 SELL 430 25.9 32.9 37.4 18.0 14.2 12.5 17.7 20.1 20.9
Hexaware * 62 205 NEU 215 13.8 14.6 16.5 14.8 14.1 12.4 26.8 23.4 23.2
eClerx 59 1,412 SELL 1,240 91.9 85.3 98.9 15.4 16.6 14.3 30.2 24.4 25.9
Cyient 53 469 NEU 510 33.3 39.5 45.7 14.1 11.9 10.3 18.5 19.7 20.2
Persistent 49 617 BUY 775 39.9 43.2 54.9 15.5 14.3 11.2 18.0 16.7 18.3
Zensar 41 923 BUY 1,210 69.2 84.9 95.8 13.2 10.8 9.6 19.5 20.5 19.7
KPIT Tech 27 135 NEU 130 12.1 13.4 16.1 11.1 10.0 8.4 16.3 15.9 16.9
Sonata 21 197 BUY 244 15.4 18.0 21.1 12.7 10.9 9.3 32.7 33.7 34.3
Source: HDFC sec Inst Research * YE Dec

Page | 9
 SONATA SOFTWARE: COMPANY UPDATE

Consolidated Income Statement Consolidated Balance Sheet

YE March (Rs mn) FY15 FY16 FY17E FY18E FY19E Year ending March (Rs mn) FY15 FY16 FY17E FY18E FY19E
IITS US$ Revenue 98.3 107.8 122.4 139.5 159.7 SOURCES OF FUNDS
Growth (%) 24.1 9.7 13.5 14.0 14.5 Share Capital - Equity 105 105 105 105 105
Net Revenues 16,821 19,405 24,166 28,228 32,606 Reserves 4,179 4,605 5,123 5,904 6,820
Growth (%) 7.4 15.4 24.5 16.8 15.5 Total Shareholders' Funds 4,284 4,710 5,228 6,009 6,925
Minority Interest - - - - -
Total Operating Expenses 15,145 17,486 22,154 25,847 29,772
Total Debt 244 1,713 1,713 1,713 1,713
EBITDA 1,676 1,919 2,011 2,382 2,834
Net Deferred Taxes (89) (129) (129) (129) (129)
EBITDA (%) 10.0 9.9 8.3 8.4 8.7
Long-term Provisions & Others 19 162 162 162 162
EBITDA Growth (%) 68.5 14.5 4.8 18.4 19.0
TOTAL SOURCES OF FUNDS 4,459 6,455 6,973 7,755 8,671
Depreciation 61 62 71 80 90 APPLICATION OF FUNDS
EBIT 1,616 1,857 1,940 2,302 2,744 Net Block 123 292 341 403 476
Other Income 231 475 466 495 526 CWIP 2 - - - -
Interest 28 79 86 94 103 Goodwill & Other Intangible Assets 111 910 910 910 910
PBT 1,819 2,252 2,320 2,703 3,168 Investments 0 0 0 0 0
Tax (incl deferred) 486 667 696 811 950 LT Loans & Advances, Others 923 658 710 767 827
Minority Int. and associate profit 4 0 0 0 0 Total Non Current Assets 1,160 1,860 1,961 2,079 2,213
RPAT 1,305 1,549 1,624 1,892 2,217 Inventories 73 100 115 132 152
APAT 1,337 1,586 1,624 1,892 2,217 Debtors 3,107 3,544 4,502 5,259 6,074
APAT Growth (%) 71.9 18.6 2.4 16.5 17.2 Cash & Equivalents 2,639 3,475 3,653 4,135 4,711
Other Current Assets 1,019 810 870 934 1,004
EPS 12.7 15.1 15.4 18.0 21.1
Total Current Assets 6,838 7,930 9,140 10,460 11,941
EPS Growth (%) 71.9 18.6 2.4 16.5 17.2
Creditors 2,496 2,655 3,338 3,895 4,486
Source: Company, HDFC sec Inst Research
Other Current Liabilities & Provns 1,043 680 789 889 997
Total Current Liabilities 3,539 3,334 4,128 4,784 5,484
Net Current Assets 3,300 4,595 5,012 5,676 6,458
TOTAL APPLICATION OF FUNDS 4,459 6,455 6,973 7,755 8,671
Source: Company, HDFC sec Inst Research

Page | 10
 SONATA SOFTWARE: COMPANY UPDATE

Consolidated Cash Flow Key Ratios

Year ending March (Rs mn) FY15 FY16 FY17E FY18E FY19E FY15 FY16 FY17E FY18E FY19E
Reported PBT 1,819 2,252 2,320 2,703 3,168 PROFITABILITY (%)
Non-operating & EO items (195) (438) (466) (495) (526) EBITDA Margin 10.0 9.9 8.3 8.4 8.7
Interest expenses 28 79 86 94 103 APAT Margin 7.9 8.2 6.7 6.7 6.8
Depreciation 61 62 71 80 90 RoE 33.3 35.3 32.7 33.7 34.3
Working Capital Change (664) 513 (291) (238) (266) RoIC or Core RoCE 21.6 20.2 17.9 18.9 20.1
Tax paid (486) (667) (696) (811) (950) RoCE 29.3 28.9 27.3 28.7 29.7
OPERATING CASH FLOW ( a ) 562 1,802 1,024 1,333 1,617 EFFICIENCY
Capex (113) (1,601) (121) (141) (163) Tax Rate (%) 27.2 30.1 30.0 30.0 30.0
Free cash flow (FCF) 449 201 904 1,192 1,454 Fixed Asset Turnover (x) 20.1 18.2 20.3 21.2 21.8
Investments 26 0 0 0 0 Inventory (days) 2 2 2 2 2
Non-operating income 199 438 466 495 526 Debtors (days) 71 67 68 68 68
INVESTING CASH FLOW ( b ) 112 (1,163) 345 354 363 Other Current Assets (days) 22 15 13 12 11
Debt Issuance 187 1,469 0 0 0 Payables (days) 60 55 55 55 55
Interest expenses (28) (79) (86) (94) (103) Other Current Liab & Provns
17 21 13 12 11
FCFE 609 1,590 818 1,097 1,351 (days)
Share capital Issuance 0 0 0 0 0 Cash Conversion Cycle (days) 17 7 15 15 14
Dividend (675) (866) (1,106) (1,111) (1,302) Net Debt/EBITDA (x) (1.4) (0.9) (1.0) (1.0) (1.1)
FINANCING CASH FLOW ( c ) (515) 523 (1,191) (1,205) (1,404) Net Debt/Equity (x) (0.6) (0.4) (0.4) (0.4) (0.4)
NET CASH FLOW (a+b+c) 159 1,162 178 482 576 Interest Coverage (x) 58.6 23.4 22.7 24.4 26.7
Non-operating and EO items 39 (326) 0 0 0 PER SHARE DATA
Closing Cash & Equivalents 2,639 3,475 3,653 4,135 4,711 EPS (Rs/sh) 12.7 15.1 15.4 18.0 21.1
Source: Company, HDFC sec Inst Research CEPS (Rs/sh) 13.3 15.7 16.1 18.7 21.9
DPS (Rs/sh) 5.5 7.0 9.0 9.0 10.5
BV (Rs/sh) 40.7 44.8 49.7 57.1 65.9
VALUATION
P/E 15.5 13.1 12.7 10.9 9.3
P/BV 4.8 4.4 4.0 3.4 3.0
EV/EBITDA 11.2 9.2 8.7 7.2 5.8
OCF/EV (%) 3.0 10.2 5.8 7.8 9.8
FCF/EV (%) 2.4 1.1 5.1 7.0 8.8
FCFE/mkt cap (%) 2.9 7.7 4.0 5.3 6.5
Dividend Yield (%) 2.7 3.5 4.5 4.5 5.3
Source: Company, HDFC sec Inst Research

Page | 11
 SONATA SOFTWARE: COMPANY UPDATE

RECOMMENDATION HISTORY
Date CMP Reco Target
Sonata Software TP
11-Feb-16 155 BUY 184
240 25-May-16 149 BUY 178
220 8-Jul-16 173 BUY 190
10-Aug-16 153 BUY 186
200
6-Oct-16 157 BUY 193
180 4-Nov-16 163 BUY 192
160 9-Jan-17 196 BUY 231
7-Feb-17 194 BUY 237
140
13-Feb-17 197 BUY 244
120
100
Rating Definitions
BUY : Where the stock is expected to deliver more than 10% returns over the next 12 month period
Aug-16
Apr-16

Jan-17
Feb-16

Jul-16

Sep-16

Feb-17
Nov-16
Jun-16
May-16

Dec-16
Mar-16

Oct-16

NEUTRAL : Where the stock is expected to deliver (-)10% to 10% returns over the next 12 month period
SELL : Where the stock is expected to deliver less than (-)10% returns over the next 12 month period

Page | 12
 SONATA SOFTWARE: COMPANY UPDATE

Disclosure:
We, Amit Chandra, MBA & Apurva Prasad, MBA authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our
views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in
this report.
Research Analyst or his/her relative or HDFC Securities Ltd. does not have any financial interest in the subject company. Also Research Analyst or his relative or HDFC Securities Ltd. or its
Associate may have beneficial ownership of 1% or more in the subject company at the end of the month immediately preceding the date of publication of the Research Report. Further
Research Analyst or his relative or HDFC Securities Ltd. or its associate does not have any material conflict of interest.
Any holding in stock No

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HDFC Securities Ltd, its directors, analysts or employees do not take any responsibility, financial or otherwise, of the losses or the damages sustained due to the investments made or any
action taken on basis of this report, including but not restricted to, fluctuation in the prices of shares and bonds, changes in the currency rates, diminution in the NAVs, reduction in the
dividend or income, etc.
HDFC Securities Ltd and other group companies, its directors, associates, employees may have various positions in any of the stocks, securities and financial instruments dealt in the report,
or may make sell or purchase or other deals in these securities from time to time or may deal in other securities of the companies / organizations described in this report.
HDFC Securities or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any
other assignment in the past twelve months.
HDFC Securities or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report
for services in respect of managing or co-managing public offerings, corporate finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or
specific transaction in the normal course of business.
HDFC Securities or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research
report. Accordingly, neither HDFC Securities nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is
not based on any specific merchant banking, investment banking or brokerage service transactions. HDFC Securities may have issued other reports that are inconsistent with and reach
different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served
as an officer, director or employee of the subject company. We have not received any compensation/benefits from the subject company or third party in connection with the Research
Report. HDFC Securities Ltd. is a SEBI Registered Research Analyst having registration no. INH000002475

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