25 July 2020
1QFY21 Results Update | Sector: Technology
Mphasis
Estimate change
TP change
Rating change
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CMP: INR1,118
TP: INR 1,174 (+5%)
Deal wins and outlook surprise!
Expect one of the best performances in FY21
Neutral
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Financials & Valuations (INR b)
Y/E Mar
2020 2021E
Sales
88.4
96.1
EBIT
14.2
14.9
PAT
11.8
11.7
EPS (INR)
61.5
62.4
EPS Gr. (%)
9.6
1.6
BV/Sh. (INR)
312.6
341.5
Ratios
RoE (%)
21.4
19.2
RoCE (%)
18.3
16.0
Payout (%)
56.9
48.0
Valuations
P/E (x)
18.2
17.9
P/BV (x)
3.6
3.3
EV/EBITDA (x)
11.9
11.0
Div Yield (%)
3.1
2.7
MPHL IN
193
208.7 / 2.4
20/32/21
238
Revenue decline of 4.6% (QoQ, CC) was in-line as weakness in the DXC
channel was overshadowed by largely stable performance in Direct. Deal
wins (USD259m) during the quarter were the strongest ever at 66% YoY.
Guidance on the ability to defend margins, a strong order book, and a robust
deal pipeline even after a couple of large deal wins is encouraging. This
should translate into one of the best performances in the industry in FY21.
We upgrade our FY21/FY22E EPS by ~4%/2%, largely driven by: (a) recent
large deal wins and (b) an optimistic outlook. Maintain
Neutral.
Largely in-line revenue and margins
In 1QFY21, revenue (USD) / EBIT (INR) / PAT increased by 3%/12%/4% YoY
v/s our expectation of 2%/8%/7% YoY.
Overall revenue declined 4.6% QoQ (CC) in line with our expectations. Direct
International (DI) revenues were largely stable, while DXC revenue
witnessed sharp decline (16% QoQ, CC).
Barring Banking and Capital Markets (BCM), all the other verticals reported
sharp sequential revenue decline.
While revenue from the Top client declined ~11% QoQ, the Top 2–5 clients
reported healthy growth of 3% QoQ.
The EBIT margin contracted ~60bp QoQ and came in ~50bp ahead of our
estimates. EBIT margin contraction was largely led by a sharp fall in
utilization (300–400bp QoQ).
While S&M expenses remained stable (as % of revenue), pressure at the
gross margin level was partially offset by G&A rationalization (~150bp QoQ).
1Q witnessed the strongest order bookings ever, with deal wins of USD259m
in the Direct channel; of this, 79% are in new-generation offerings.
1173 / 612
2022E
107.3
17.0
13.8
73.4
17.5
381.9
20.8
17.8
54.5
15.2
2.9
9.0
3.6
Key highlights from management commentary
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Jun-20 Mar-20 Jun-19
56.2
56.2
52.2
14.2
14.2
8.0
23.7
23.9
29.9
6.0
5.8
9.8
FII Includes depository receipts
1QFY21 revenue was impacted as enterprises reprioritized IT spends and cut
down on discretionary spends.
Management indicated that the worst is behind, and revenue should grow
sequentially. A couple of large deal wins (USD100–200m+ TCV), a healthy
order book, and a robust pipeline drive this confidence.
The company expects the EBIT margin to remain stable, in the range of
15.5–16.5% in FY21, despite large deal ramp-ups over the next few quarters.
Large deal wins and new client additions were led by Direct International.
The Banking and Capital Markets, Insurance, and Logistics/Transportation
verticals are expected to do well going forward.
While MRC of USD250m (up to Sep’21) is still due, management expects the
DXC business to remain under pressure.
The Blackstone portfolio now contributes 4–5% to overall revenues and is
expected to double over three years.
Sudheer Guntupalli – Research analyst
(Sudheer.Guntupalli@MotilalOswal.com)
Research analyst: Mohit Sharma
(Mohit.Sharma@MotilalOswal.com)/
Heenal Gada
(Heenal.Gada@MotilalOswal.com)
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.
 Motilal Oswal Financial Services
Mphasis
Valuation and view – Expect one of the best performances in FY21
Strong deal wins and a healthy deal pipeline would likely drive decent growth in
the near term. While the DXC business (~20% of revenues) is expected to be
under pressure in the near term, Direct International should continue to drive
overall performance. Guidance on the ability to defend margins is a key positive.
High exposure to largely stable verticals (BFSI, ~57% of revenues) should also
help mitigate risks to an extent.
The stock is currently trading at ~18x FY21E EPS. We value the stock at ~16x
FY22E EPS. Maintain
Neutral.
FY21E
Sep 20E Dec 20E Mar 21E
312
324
334
2.0
4.0
3.0
23,512 24,467 25,210
8.9
7.5
7.5
29.5
29.7
29.7
11.5
11.6
11.6
4,244
4,439
4,573
18.0
18.1
18.1
3,637
3,798
3,914
15.5
15.5
15.5
408
397
383
25.0
25.0
25.0
2,884
3,002
3,083
4.9
4.1
2.7
5.5
2.2
-12.7
15.4
16.0
16.4
FY20
1,239
10.8
88,436
14.4
28.8
10.2
16,505
18.7
14,188
16.0
1,780
21.8
11,849
10.4
62.4
FY21E
1,275
2.9
96,072
8.6
29.5
11.3
17,434
18.1
14,932
15.5
1,565
25.5
11,720
-1.1
62.4
Est.
Jun 20
303
-5.1
22,886
11.0
28.6
10.9
4,054
17.7
3,459
15.1
364
24.5
2,844
-19.5
7.5
15.2
(INR m)
Var. (% /
bp)
0.7
65bp
0.0
-2bp
34bp
-20bp
3.1
55bp
3.6
54bp
3.7
246bp
-3.3
-3.3
Quarterly Performance
Y/E March
Revenue (USD m)
QoQ (%)
Revenue (INR m)
YoY (%)
GPM (%)
SGA (%)
EBITDA
EBITDA Margin (%)
EBIT
EBIT Margin (%)
Other income
ETR (%)
PAT
QoQ (%)
YoY (%)
EPS (INR)
Jun 19
297
1.8
20,626
13.3
28.4
10.2
3,743
18.1
3,193
15.5
541
25.1
2,647
-0.5
2.5
14.2
FY20
Sep 19 Dec 19
305
318
2.6
4.3
21,581 22,767
12.7
15.5
28.8
28.7
10.0
10.0
4,052
4,269
18.8
18.8
3,470
3,694
16.1
16.2
351
362
24.2
24.0
2,733
2,937
3.3
7.5
0.9
5.7
14.2
15.2
Mar 20
320
0.6
23,462
15.9
29.3
10.4
4,441
18.9
3,831
16.3
526
14.9
3,532
20.3
32.7
18.8
Jun 20
305
-4.5
22,882
10.9
28.9
10.7
4,178
18.3
3,583
15.7
377
27.0
2,750
-22.1
3.9
14.7
Key Perf. Indicators
Y/E March
Margins
Gross Margin
EBIT Margin
Net Margin
Operating metrics
Headcount
Deal Win TCV (USD m)
Key Verticals (YoY %)
BFS
Insurance
IT, Comm, Ent
Key Geographies (YoY %)
North America
Europe
1Q
28
15
13
25,499
151
5
15
6
10
3
FY20
2Q
29
16
13
26,963
174
10
10
5
9
4
3Q
29
16
13
27,289
189
16
7
5
11
15
4Q
29
16
15
26,398
201
13
4
-4
8
18
FY21
1Q
2Q
29
16
12
26,143
259
12
-12
-12
0
15
30
15
12
FY20
3Q
30
16
12
4Q
30
16
12
29
16
13
26,398
715
11
9
3
10
10
29
16
12
FY21
13 January 2020
2
 Motilal Oswal Financial Services
Mphasis
Key highlights from management commentary
1QFY21 revenue was impacted as enterprises reprioritized IT spends and cut
down on discretionary spends.
Management indicated that the worst is behind, and revenue should grow
sequentially. A couple of large deal wins (USD100–200m+ TCV), a healthy order
book, and a robust pipeline drive this confidence.
The company expects the EBIT margin to remain stable, in the range of 15.5–
16.5% in FY21, despite large deal ramp-ups over the next few quarters.
Large deal wins and new client additions were led by Direct International.
The Banking and Capital Markets, Insurance, and Logistics/Transportation
verticals are expected to do well going forward.
While MRC of USD250m (up to Sep’21) is still due, management expects the DXC
business to remain under pressure.
The Blackstone portfolio now contributes 4–5% to overall revenues and is
expected to double over three years.
Largely in-line revenue and margins
In 1QFY21, revenue (USD) / EBIT (INR) / PAT increased by 3%/12%/4% YoY v/s
our expectation of 2%/8%/7% YoY.
Overall revenue declined 4.6% QoQ (CC) in line with our expectations. Direct
International (DI) revenues were largely stable, while DXC revenue witnessed
sharp decline (16% QoQ, CC).
Barring Banking and Capital Markets (BCM), all the other verticals reported
sharp sequential revenue decline.
While revenue from the Top client declined ~11% QoQ, the Top 2–5 clients
reported healthy growth of 3% QoQ.
The EBIT margin contracted ~60bp QoQ and came in ~50bp ahead of our
estimates. EBIT margin contraction was largely led by a sharp fall in utilization
(300–400bp QoQ).
While S&M expenses remained stable (as % of revenue), pressure at the gross
margin level was partially offset by G&A rationalization (~150bp QoQ).
1Q witnessed the strongest order bookings ever, with deal wins of USD259m in
the Direct channel; of this, 79% are in new-generation offerings.
Exhibit 1: BPO reports strong growth, while other services decline
Services
Application Services
BPO
Infrastructure Services
Contribution to rev (%)
63.8
21.1
15.1
Growth – QoQ (%)
-5.0
11.6
-18.9
Growth - YoY (%)
0.4
44.6
-20.7
Source: Company, MOFSL
Exhibit 2: Barring RoW, other geographies report sequential decline
Geographies
North America
Europe
India
Rest of the world
Contribution to rev (%)
76.8
11.9
4.1
7.1
Growth - QoQ (%)
-3.8
-7.6
-21.4
6.5
Growth - YoY (%)
0.3
14.9
-15.2
33.3
Source: Company, MOFSL
25 July 2020
3
 Motilal Oswal Financial Services
Mphasis
Exhibit 3: While BCM stands strong, other verticals decline sequentially, led by Insurance
Verticals
Banking and Capital Markets
Insurance
IT, Communication and Entertainment (ITCE)
Logistics & Transportation
Others
Contribution
Growth - QoQ (%) Growth - YoY (%)
to rev (%)
48.8
2.1
12.3
10.0
-16.7
-12.3
14.1
-10.2
-12.2
14.0
-8.4
11.9
13.1
-5.7
-5.2
Source: Company, MOFSL
Exhibit 4: Top client declines, while Top 2–5 clients are growth drivers
Top Client
Top 2-5 Clients
Top 6-10 Clients
Contribution to
Growth – QoQ (%) Growth – YoY (%)
rev (%)
12.0
-11.8
-11.8
27.0
3.1
15.7
9.0
-4.5
2.9
Source: Company, MOFSL
Valuation and view – Expect one of the best performances in
FY21
Strong deal wins and a healthy deal pipeline would likely drive decent growth in
the near term. While the DXC business (~20% of revenues) is expected to be
under pressure in the near term, Direct International should continue to drive
overall performance. Guidance on the ability to defend margins is a key positive.
High exposure to largely stable verticals (BFSI, ~57% of revenues) should further
aid in mitigating risks to an extent.
The stock is currently trading at ~18x FY21E EPS. We value the stock at ~16x
FY22E EPS. Maintain
Neutral.
Exhibit 5: Over long term, multiples average to ~14x
25
20
15
10
5
MPHASIS P/E
Source: Bloomberg, MOSL
Exhibit 6: Revision to our estimates
Change in Estimates
INR/USD
USD Revenue - m
USD Revenue - growth
EBIT Margin (%)
EPS - INR
Revised
FY21E
75.9
1,275
2.9
15.5
62.4
FY22E
77.0
1,402
10.0
15.8
73.4
Earlier
FY21E
76.0
1,203
-2.9
15.3
59.9
FY22E
77.0
1,300
8.0
15.7
72.5
Change
FY21E
-0.2%
6.0%
578bp
27bp
4.2%
FY22E
0.0%
7.9%
195bp
16bp
1.3%
Source: MOFSL
25 July 2020
4
 Motilal Oswal Financial Services
Mphasis
Exhibit 7: Operating Metrics
Geographical Contribution (%)
Americas
EMEA
India
RoW
Vertical Contribution (%)
Banking and Capital market
Insurance
IT, Comm. & Entertainment
Logistics & Transportation
Others
Revenue by Project Type (%)
Time and Material
Transaction Based
Fixed Price
Revenue by Delivery Location (%)
Onsite
Offshore
Secondary Market Segment (%)
Direct International
Direct Core
Direct Others
DXC
Others
Service Type (%)
Application services
BPO
Infrastructure services
Client Contribution (%)
Top Client
Top 2-5 Clients
Top 6-10 Clients
New Clients added
Clients Contributing More than:
$100m+
$75m+
$50m+
$20m+
$10m+
$5m+
$1m+
Headcount
Onsite - billable
Tech services
BPO
Offshore - billable
Tech services
BPO
Total billable headcount
Total headcount
1QFY20
78.8
10.7
5.0
5.5
44.7
11.7
16.6
12.9
14.2
63.1
13.3
23.6
58.2
41.8
73.2
61.1
12.1
24.6
2.2
65.4
15.0
19.7
14
24
9
14
1
2
4
7
14
27
72
2QFY20
79.2
10.1
5.3
5.4
45.8
11.2
16.1
13.4
13.4
59.7
14.3
26.0
58.2
41.8
73.8
60.8
13.0
24.1
2.1
64.0
16.3
19.7
14
24
9
8
2
2
4
7
14
29
76
3QFY20
77.5
11.5
5.1
5.9
45.5
11.2
15.7
13.9
13.6
57.8
15.5
26.7
58.1
41.9
74.2
60.8
13.4
23.4
2.4
61.0
18.1
20.9
13
25
9
14
2
3
5
7
15
30
77
4QFY20
76.3
12.3
5.0
6.4
45.7
11.4
15.0
14.6
13.2
56.9
15.2
27.9
57.1
42.9
75.4
61.7
13.7
22.5
2.1
64.1
18.0
17.8
13
25
9
9
2
3
5
7
15
31
76
1QFY21
76.8
11.9
4.1
7.1
48.8
10.0
14.1
14.0
13.1
58.7
15.2
26.1
59.9
40.1
78.5
63.2
15.3
20.1
1.5
63.8
21.1
15.1
12
27
9
6
2
4
4
7
16
32
79
4,648
522
11,832
3,983
20,985
25,500
4,708
822
12,550
4,094
22,174
26,964
4,575
1,244
12,780
4,553
23,152
27,289
4,221
1,199
12,734
4,286
22,440
26,398
3,783
1,382
12,473
4,592
22,230
26,143
Source: Company, MOFSL
25 July 2020
5
 Motilal Oswal Financial Services
Mphasis
Financials and valuations
Income Statement
Y/E
Revenues
Change (%)
Cost Of Goods Sold
SG&A Expenses
Amort. of Stock Compensation
Amortization of Goodwill
EBITDA
% of Net Sales
Depreciation
Interest
Other Income
EO Item (net)
PBT
Tax
Rate (%)
PAT
Extra-ordinary items
Net Income
Change (%)
Mar 15
57,949
-6.9
42,540
6,708
0
0
8,701
15.0
980
0
1,687
0
9,408
2,630
28.0
6,778
6,778
-8.6
Mar 16
60,879
5.1
44,708
7,201
0
0
8,970
14.7
744
0
1,712
0
9,938
2,696
27.1
7,242
7,242
6.9
Mar 17
60,763
-0.2
43,649
7,426
0
0
9,688
15.9
592
0
2,246
0
11,342
3,155
27.8
8,187
8,187
13.0
Mar 18
65459
7.7
47,309.0
7,525
0
0
10,625
16
709
0.0
1,490
0
11,406
2,900
25
8,506
8,506
3.9
Mar 19
77310
18.1
55,734.0
8,337
0
0
13,239
17
759
0.0
1,592
0
14,072
3,339
24
10,733
10,733
26.2
Mar 20
88436
14.4
62,951.0
8,980
0
0
16,505
19
2,317
0.0
967
0
15,155
3,306
22
11,849
11,849
10.4
Mar 21E
96,072
8.6
67,745
10,894
0
0
17,434
18.1
2,502
0
793
0
15,725
4,005
25.5
11,720
11,720
-1.1
(INR m)
Mar 22E
1,07,309
11.7
75,497
12,038
0
0
19,775
18.4
2,807
0
1,400
0
18,368
4,592
25.0
13,776
13,776
17.5
Balance Sheet
Y/E
Share Capital
Reserves
Net Worth
Loans
Capital Employed
Gross Block
Less : Depreciation
Net Block
CWIP
Goodwill
Investments
Deferred tax assets
Curr. Assets
Debtors
Cash
Loans & Advances
Current Liab. & Prov
Net Current Assets
Application of Funds
Mar 15
2,101
52,697
54,798
6,253
61,051
10,055
8,499
1,556
318
21,781
14,431
826
35,014
11,371
13,311
10,332
12,875
22,139
61,051
Mar 16
2,102
60,828
62,930
5,338
68,268
9,300
8,128
1,172
953
22,942
21,118
941
31,968
12,333
8,783
10,852
10,826
21,142
68,268
Mar 17
2,104
59,420
61,524
2,760
64,284
3,400
1,167
2,233
387
14,069
23,956
3,527
28,998
10,871
6,315
11,812
8,888
20,110
64,282
Mar 18
1,933
52,885
54,818
3,949
58,767
4,304
2,478
1,826
399
17,015
17,821
1,057
31,742
13,560
7,148
11,034
11,093
20,649
58,767
Mar 19
1,862
50,636
52,498
5,456
57,954
5,357
3,244
2,113
406
19,585
13,292
814
36,531
17,687
6,618
12,226
14,787
21,744
57,954
Mar 20
1,865
56,431
58,296
13,092
71,388
12,965
4,235
8,730
553
21,405
13,257
2,157
40,297
16,947
11,550
11,800
15,011
25,286
71,388
Mar 21E
1,866
61,866
63,732
11,604
75,336
14,212
6,356
7,856
428
21,357
20,731
1,754
37,857
17,911
8,163
11,783
14,647
23,210
75,336
(INR m)
Mar 22E
1,793
66,688
68,481
10,604
79,085
16,012
9,163
6,849
417
21,357
20,731
1,754
43,651
19,424
12,444
11,783
15,674
27,977
79,085
25 July 2020
6
 Motilal Oswal Financial Services
Mphasis
Financials and valuations
Ratios
Y/E
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout %
Valuation (x)
P/E
Cash P/E
EV/EBITDA
EV/Sales
Price/Book Value
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
RoIC
Turnover Ratios
Debtors (Days)
Fixed Asset Turnover (x)
Leverage Ratio
Debt/Equity Ratio(x)
Mar 15
32.3
36.9
260.8
16.0
49.6
34.7
30.3
24.5
3.7
4.3
1.4
12.8
11.5
16.7
77
31.0
0.1
Mar 16
34.5
38.0
299.4
20.0
58.0
32.4
29.4
23.5
3.5
3.7
1.8
12.3
11.2
17.0
71
44.6
0.1
Mar 17
38.9
41.7
292.4
17.0
43.7
28.7
26.8
21.4
3.4
3.8
1.5
13.2
12.4
18.5
70
35.7
0.0
Mar 18
44.0
47.7
283.6
20.0
45.4
25.4
23.5
18.4
3.0
3.9
1.8
14.6
13.8
22.1
68
32.3
0.1
Mar 19
56.1
61.7
281.9
27.0
48.5
19.9
18.1
14.6
2.5
4.0
2.4
20.0
18.4
26.8
74
39.3
0.1
Mar 20
61.5
76.0
312.6
35.0
56.9
18.2
14.7
11.9
2.2
3.6
3.1
21.4
18.3
26.5
71
16.3
0.2
Mar 21E
62.4
76.2
341.5
30.0
48.0
17.9
14.7
11.0
2.0
3.3
2.7
19.2
16.0
24.2
66
11.6
0.2
Mar 22E
73.4
92.5
381.9
40.0
54.5
15.2
12.1
9.0
1.7
2.9
3.6
20.8
17.8
27.8
63
14.6
0.2
Cash Flow Statement
Y/E
CF from Operations
Chg. in Wkg. Capital
Net Operating CF
Net Purchase of FA
Free Cash Flow
Net Purchase of Invest.
Net Cash from Invest.
Proceeds from equity
Proceeds from LTB/STB
Dividend Payments
Net CF from Financing
Free Cash Flow
Net Cash Flow
Opening Cash Balance
Add: Net Cash
Closing Cash Balance
Mar 15
7,900
-50
7,850
-614
7,236
3,807
3,193
0
1,601
-4,033
-2,432
7,236
8,610
4,697
8,610
13,307
Mar 16
7,871
-3,531
4,340
-995
3,345
-7,848
-8,843
5,933
-915
-5,045
-26
3,345
-4,529
13,307
-4,529
8,778
Mar 17
6,193
-1,436
4,757
-1,087
3,670
6,035
4,948
-5,305
-2,578
-4,290
-12,172
3,670
-2,467
8,778
-2,467
6,311
Mar 18
11,685
294
11,979
-314
11,665
3,189
2,875
-10,577
1,189
-4,637
-14,024
11,665
830
6,311
830
7,140
Mar 19
11,735
-1,625
10,110
-1,053
9,057
1,959
906
4,427
1,507
-17,482
-11,547
9,057
-531
7,140
-531
6,609
Mar 20
12,823
1,390
14,213
-9,081
5,132
-1,785
-10,866
1,783
7,636
-7,836
1,584
5,132
4,931
6,609
4,931
11,540
Mar 21E
14,625
-1,311
13,313
-1,503
11,811
-7,426
-8,929
432
-1,488
-6,716
-7,772
11,811
-3,388
11,540
-3,388
8,153
(INR m)
Mar 22E
16,583
-486
16,097
-1,789
14,307
0
-1,789
-73
-1,000
-8,955
-10,028
14,307
4,280
8,153
4,280
12,432
25 July 2020
7
 Motilal Oswal Financial Services
Mphasis
NOTES
25 July 2020
8
 Motilal Oswal Financial Services
Mphasis
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 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, Investment Advisory Services, Depository participant services & distribution of various financial products.
MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). 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
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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
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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
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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
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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
applicable state laws in the United States. In addition MOFSL 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
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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
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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., MOFSL 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
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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
********************************************************************************************************************************
25 July 2020
9
 Motilal Oswal Financial Services
Mphasis
The associates of MOFSL 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 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.
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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This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
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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,
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instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as
customers by virtue of their receiving this report.
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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
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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 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 MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the
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The person accessing this information specifically agrees to exempt MOFSL or any of its affiliates or employees from, any
and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold
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errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263; Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth Management
Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is a distributor of
Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. which is a
group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL. Research & Advisory
services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no assurance or guarantee
of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance Officer: Name: Neeraj
Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* 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.
25 July 2020
10