Motilal Oswal Financial Services

6 August 2020

1QFY21 Results Update | Sector: Agri

PI Industries

Estimate change

TP change

Rating change

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CMP: INR2,036

TP: INR2,342 (+15%)

Buy

Domestic biz drives growth

Valuations capture entry into Pharma value chain



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

33.7

46.0

EBITDA

7.2

10.6

PAT

4.6

7.5

EBITDA (%)

21.3

23.1

EPS (INR)

30.1

49.6

EPS Gr. (%)

11.3

64.9

BV/Sh. (INR)

173

347

Ratios

Net D/E

0.1

(0.3)

RoE (%)

18.6

19.1

RoCE (%)

17.3

17.4

Payout (%)

14.7

14.5

Valuations

P/E (x)

67.6

41.0

EV/EBITDA (x)

43.6

27.4

Div Yield (%)

0.2

0.3

FCF Yield (%)

(0.1)

0.6

PI IN

138

308.9 / 3.8

2053 / 974



20/40/84

277

PI Industries (PI) reported strong performance, led by growth in the

Domestic business (+76% YoY); growth was further aided by 23% revenue

growth in Custom Synthesis and Manufacturing (CSM). Operating leverage

led to EBITDA margin expansion, partially offset by lower gross margins,

weighed by higher share of Isagro and product mix changes.

Factoring better-than-expected performance during the quarter, we increase

our diluted EPS est. by 9%/8% for FY21/FY22. We value the stock at 35x FY22E

EPS to arrive at TP of INR2,342, implying 15% upside. Maintain

Buy.

1QFY21 revenue was up 41% YoY (incl. Isagro’s performance, which was

absent in the base quarter) to INR10.6b (est.: INR9.2b). EBITDA was up 50%

YoY to INR2.3b (est.: INR1.9b); EBITDA margins expanded 140bp YoY to

21.6% (est.: 20.2%), supported by operating leverage. The gross margin

contracted 280bp to 42% due to Isagro’s contribution to sales and a change

in the product mix. Adj. PAT grew 43% YoY to INR1,455m (est.: INR1,133m);

PAT growth was restricted, weighed by an increase in depreciation (up 45%

YoY), increase in interest cost (up 4.2x YoY), and lower other income (down

32% YoY).

1QFY21 exports/CSM revenue increased ~23% YoY (to INR6.1b) on proactive

raw material inventory management and capacity planning. Demand for key

commercialized molecules remains strong. Isagro exports stood at INR300m

during the quarter; excluding the same, revenue grew 17% YoY (to INR5.8b).

Revenue for Domestic Agrochemicals grew 76% YoY (to INR4.5b), supported

by: (a) carryover demand from 4QFY20 (INR850-900m deferred revenue, of

which INR700–750m is realized in 1QFY21), (b) Isagro brand sales

(INR690m), and (c) robust momentum in the Domestic segment on account

of planned brand positioning to avail the advantage of early sowing.

Excluding Isagro, Domestic sales revenue increased 49% YoY (to INR3.8b)

and 21% YoY (to INR3.1b) excluding Isagro + INR700m of carryover demand

from 4QFY20. During the quarter, the highest ever placement of Nominee

Gold was witnessed.

The order book stood at ~USD1.5b (flat QoQ), which provides high visibility

for sustainable growth over the next three to five years.

During the quarter, the company scaled up and undertook the supply of

pharma intermediates for COVID-19.

The company has guided for 20%+ revenue growth (in both Domestic as well

as CSM) in FY21 and FY22 (including the Isagro acquisition).

The Domestic Agrochemicals industry is expected to grow at 10–15% in

FY21, which is higher than growth posted by the industry in the last three

years. PI expects its Domestic business to grow 20%+ in FY21.

Operating leverage more than offsets gross margin contraction

2022E

56.8

13.6

10.2

23.9

66.9

34.8

407

(0.3)

17.8

16.8

10.8

30.4

21.3

0.3

1.6



Shareholding pattern (%)

Promoter

DII

FII

Others

Jun-20 Mar-20 Jun-19

51.4

19.1

21.6

17.8

11.8

12.2

14.1

17.7

14.8

16.7



Highlights from management commentary



Note: FII includes depository receipts

Research Analyst: Sumant Kumar

(Sumant.Kumar@MotilalOswal.com)

Darshit Shah

(Darshit.Shah@motilaloswal.com) /

Yusuf Inamdar

(yusuf.inamdar@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.

PI Industries



In FY21, the company would commercialize four to five molecules (v/s four

products commercialized in FY20).

PI would take five to six quarters to deploy QIP (Qualified Institutional

Placement) funds of INR20b.

Three to four years ago, the company used to import 30–40% of its RM

requirement from China, which now stands at less than 10%.

Domestic and export supplies have both picked up pace, with all manufacturing

facilities being operational and capacity utilization rebuilding to pre-COVID-19

levels.

We believe the company has levers in place to sustain growth momentum in the

near term, led by: (a) its recently established two multi-purpose plants ramping-

up operations, (b) revenue from the Isagro acquisition, (c) sustained growth

momentum in the CSM business on account of a strong USD1.5b order book,

and (d) product launches in the domestic market (two-three annually) providing

earnings visibility.

Additionally, with the completion of INR20b QIP, the company is exploring

inorganic acquisition opportunities in the Pharma space, which would drive

long-term growth. Additionally, the company would deploy capital toward the

existing business.

Factoring better-than-expected performance during the quarter, we increase

our EPS est. by 9%/8% for FY21/FY22.

PI has traded at an avg. of 30x over the last three years on a one-year forward

basis. On the other hand, we have ascribed 35x PE after considering a strong

growth outlook in the existing business and its venture into the Pharma

segment, which presents huge opportunity for the company to play on. We

expect a revenue/EBITDA/PAT CAGR of 30%/38%/49% over FY20–22.

We arrive at TP of INR2,342, implying 15% upside. Maintain Buy.

(INR m)

FY21E FY21

Var

1QE

(%)

45,971 9,228

36.6 22.4

35,340 7,360

10,631 1,868

23.1 20.2

1,802 440

366

1,382 150

9,845 1,490

2,362 358

24.0 24.0

-48

7,530 1,133

64.9 12.4

16.4 12.3

Valuation and view



Quarterly Earnings Model

Y/E March

Net Sales

YoY Change (%)

Total Expenditure

EBITDA

Margins (%)

Depreciation

Interest

Other Income

PBT before EO expense

Extra-Ord expense

PBT

Tax

Rate (%)

Minority Interest & Profit/Loss of Asso. Cos.

Reported PAT

Adj PAT

YoY Change (%)

Margins (%)

7,541

24.5

6,016

1,525

20.2

295

121

1,328

312

23.5

1,016

24.4

13.5

FY20

9,074 8,498

25.5 20.1

7,149 6,633

1,925 1,865

21.2 21.9

317 319

109 191

1,692 1,699

461 487

27.2 28.7

-1

1,232 1,211

30.2 12.4

13.6 14.3

8,552 10,601

6.3

40.6

6,689 8,309

1,863 2,292

21.8

21.6

436

427

1,411 1,851

312

444

22.1

24.0

-8

-48

1,107 1,455

-11.9

43.2

12.9

13.7

FY21

2QE

3QE

11,917 11,176

31.3 31.5

9,218 8,538

2,699 2,638

22.7 23.6

440

460

350

450

2,516 2,538

604

609

24.0 24.0

1,912 1,929

55.2 59.3

16.0 17.3

FY20

4QE

12,276 33,665

43.5

18.5

9,275 26,487

3,001 7,178

24.4

21.3

475 1,367

170

500

489

2,939 6,130

705 1,572

24.0

25.6

-8

2,234 4,566

101.8

11.3

18.2

13.6

6 August 2020

PI Industries

Key Performance Indicators

Y/E March

Particulars

CSM Revenue (INR m)

% Change

Domestic Formulation (INR m)

% Change

Cost Break-up

RM Cost (% of sales)

Staff Cost (% of sales)

Other Cost (% of sales)

Gross Margins (%)

EBITDA Margins (%)

EBIT Margins (%)

5,011

59.0

2,530

-13.0

55.2

10.2

14.4

44.8

20.2

16.3

FY20

6,386 6,438

52.4

19.0

2,688 2,060

-11.6

24.0

57.6

8.0

13.2

42.4

21.2

17.7

53.4

9.0

15.7

46.6

21.9

18.2

6,830

11.9

1,720

-11.6

53.2

11.1

13.9

46.8

21.8

16.7

1QE

6,148

22.7

4,453

76.0

58.0

9.3

11.1

42.0

21.6

17.6

FY21

2QE

3QE

4QE

8,557 8,498 10,040

34.0

32.0

47.0

3,360 2,678 2,236

25.0

30.0

58.0

8.3

11.0

42.0

22.7

19.0

54.0

9.4

13.0

46.0

23.6

19.5

54.0

8.6

13.0

46.0

24.4

20.6

FY20

24,660

30.9

9,000

-5.9

54.9

9.5

14.3

45.1

21.3

17.3

FY21

31,705

28.6

12,727

41.4

56.0

8.9

12.0

44.0

23.1

19.2

Key exhibits

Exhibit 1: Revenue growth trend

Revenues (INR m)

29%

10%

-13%

32%

29%

25%

Growth (%)

26%

41%

20%

Source: Company, MOFSL

Exhibit 2: EBITDA trend

EBITDA (INRm)

24%

22%

19%

22%

20% 19%

Margin (%)

21% 22% 20% 21% 22% 22% 22%

Exhibit 3: PAT trend

PAT (INRm)

34%

18%

-14%

19%

24%

Growth (%)

43%

30%

12%

-12%

-22% -18%

-21%

Source: Company, MOFSL

6 August 2020

PI Industries

Exhibit 4: CSM revenue trend

CSM Revenues (INR m)

59%

38% 40% 39%

20%

-12%

-4%

0% 5%

19%

23%

12%

Growth (%)

52%

Exhibit 5: Agri-input revenue trend

Domestic Agri Revenues (INR m)

Growth (%)

76%

13%

-15%

-8%

18%

10% 15%

10% 4%

-13%

-12%

24%

-12%

Source: Company, MOFSL

Exhibit 6: Key operational highlights – 1QFY21

Source: Company, MOFSL

Exhibit 7: Business outlook

Source: Company, MOFSL

6 August 2020

PI Industries

Management call highlights



Operating performance:

Revenues grew by 41% YoY despite COVID-19-led

disruption to operations and the movement of goods during the initial phase of

Q1.

Exports performance:

Exports increased 23% YoY, driven primarily by proactive

raw material inventory management and capacity planning. Demand for key

commercialized molecules remains strong. Shipments have gained momentum.

Domestic revenues were up by 76% YoY. This was contributed by spillover

demand from 4QFY20, Isagro brand sales, and robust momentum in the

Domestic segment on planned brand positioning to avail the advantage of early

sowing.

The timely onset of the monsoons, which drove an increase in acreage (+19%

YoY), led to strong domestic performance. Also, the increased use of herbicide

(Elite) and the highest ever placement of Nominee Gold and other products

complemented domestic performance.

In FY21, the domestic Crop Protection industry is expected to expand at 10–15%

and the company’s domestic revenue at 20%.

Current status of operations:

Both domestic and export supplies have picked up

pace, with all manufacturing facilities being operational and capacity utilization

rebuilding to pre-COVID-19 levels.

Domestic biz performance



Isagro



Contribution from Isagro further enhanced during the quarter. ~13% growth

contributed by Isagro Asia marked a good beginning.

Isagro’s revenue stood at INR990m in 1QFY21, with contribution from exports at

INR300m and the rest coming from the Domestic business.

The company plans not to merge Isagro’s Domestic business and maintain it as a

separate subsidiary. This business would focus exclusively on the Fruits,

Vegetables, and Plantation segment.

Gross margins



The 280bp drop in gross margins was attributable to a change in the business

mix of exports, domestic, and Isagro.

Standalone margins continued to be in the standard range, whereas

consolidated gross margins were majorly affected due to the Isagro acquisition

and a change in the product mix (Isagro has lower gross margins).

Control on overall fixed overheads aided EBITDA margin improvement.

New launches:

The company is working on a large pipeline of products. It plans

to commercialize four to five products in FY21 (v/s four products

commercialized in FY20). The average duration of new molecule development

and launch takes 2–2.5 years.

Capex:

Capex stood at INR640m in 1QFY21; capex was slower due to lockdown

and lower labor availability. The company plans to spend INR5–6b over the next

1–1.5 years.

QIP:

The company plans to utilize funds to meet its long-term strategic goals. It

intends to spend the amount over the next five or six quarters. Funds would be

6 August 2020

PI Industries



utilized for organic expansion, diversification, and new businesses. Inorganic

acquisitions also continue to be on the cards.

Custom Synthesis and Manufacturing (CSM) business:



The MPP-5 plant, where the accident took place last year, is still not

operational. Due to the COVID-19 crisis, the necessary approvals are getting

delayed. Expect to start up the plant in 2QFY21. Loss of revenue due to plant

closure amounted to ~INR500m.



MPP-10 is expected to be commissioned by the end of the year or early next

year. Delay is attributed to lower labor availability and delay in approvals.

Pharma:

It formed two new wholly owned subsidiaries in Pharma and plans to

develop a few advanced intermediary molecules. The focus is on increasing the

share of Pharma in overall revenue and reducing concentration risk.

Other highlights



Deferred revenue:

INR850–900m deferred revenue from 4QFY20 was to be

recorded in 1QFY21, INR700–750m of which has been recovered.

Free cash flow:

FCF of INR2.98b (7% of revenue) was generated through better

working capital management. An increase in operating cash flow is helping fund

continued strategic initiatives.

It increased inventory levels to securitize continuity in operations amid COVID-

19-led uncertainties.

The company returned to its surplus cash position. Cash available (net of debt)

was INR980m as of Jun’20.

Net sales-to-fixed assets improved to 2.04x in 1QFY21 v/s. 1.99x in 1QFY20.

The order book

remained robust at ~USD1.5b, providing high visibility for

sustainable growth over three to five years.

COVID-19:

CSM exports could have been better (affected by lockdown). In Apr,

it operated at lower than 60% levels. In the absence of COVID-19, the Domestic

business could have been better. The estimated INR750–1,000m loss in revenue

could be attributed to the lockdown. Hence, it is going forward with the

normalization of operations, and business is expected to pick-up further.

Launched PI Mitra and digital campaigns such as Awkira Harvest Days, Sone Pe

Suhaga, Digital Channel Partner Meet, etc.

Lower RM reliance on China:

Three to four years ago, 30-40% of RM was

imported from China, which has now been reduced to less than 10%. Hence, any

geopolitical issue is expected to have a lower impact on the company. It is also

working toward changing the supply chain landscape due to geopolitical

concerns.

The company is focusing on de-risking the higher concentration of

manufacturing in India through geographical diversification.

Valuation



Domestic and export supplies have both picked up pace, with all manufacturing

facilities being operational and capacity utilization rebuilding to pre-COVID-19

levels.

We believe the company has levers in place to sustain growth momentum in the

near term, led by: (a) its recently established two multi-purpose plants ramping-

up operations, (b) revenue from the Isagro acquisition, (c) sustained growth

6 August 2020

PI Industries



momentum in the CSM business on account of a strong USD1.5b order book,

and (d) product launches in the domestic market (two-three annually) providing

earnings visibility.

Additionally, with the completion of INR20b QIP, the company is exploring

inorganic acquisition opportunities in the Pharma space, which would drive

long-term growth. Additionally, the company would deploy capital toward the

existing business.

Factoring better-than-expected performance during the quarter, we increase

our EPS est. by 9%/8% for FY21/FY22.

PI has traded at an avg. of 30x over the last three years on a one-year forward

basis. On the other hand, we have ascribed 35x PE after considering a strong

growth outlook in the existing business and its venture into the Pharma

segment, which presents huge opportunity for the company to play on. We

expect a revenue/EBITDA/PAT CAGR of 30%/38%/49% over FY20–22.

We arrive at TP of INR2,342, implying 15% upside. Maintain Buy

Exhibit 8: One-year fwd PE (x)

P/E (x)

40.0

30.0

20.0

Avg (x)

Max (x)

Min (x)

+1SD

-1SD

35.9

29.9

21.2

12.4

34.5

10.0

0.0

7.6

Source: MOFSL

Exhibit 9: Change in estimates

Earnings Change

(INR m)

Revenue

EBITDA

Adj. PAT

Diluted EPS

Old

FY21E

43,902

9,766

6,255

45.4

FY22E

54,411

12,675

8,569

62.1

FY21E

45,971

10,631

7,530

49.6

New

FY22E

56,810

13,590

10,151

66.9

Change

FY21E

FY22E

20%

18%

Source: MOFSL

6 August 2020

PI Industries

Financials and valuations

Income Statement (Consolidated)

Y/E March

Net Revenue

Change (%)

EBITDA

Margin (%)

Depreciation

EBIT

Int. and Finance Charges

Other Income

PBT bef. EO Exp.

EO Items

PBT after EO Exp.

Current Tax

Deferred Tax

Tax Rate (%)

Less: MI/Profit & Loss of associates

Reported PAT

Adjusted PAT

Change (%)

Margin (%)

Balance Sheet (Consolidated)

Y/E March

Equity Share Capital

Preference Capital

Total Reserves

Net Worth

Minority Interest

Deferred Liabilities

Total Loans

Capital Employed

Gross Block

Less: Accum. Deprn.

Net Fixed Assets

Capital WIP

Current Investments

Total Investments

Curr. Assets, Loans&Adv.

Inventory

Account Receivables

Cash and Bank Balance

Loans and Advances

Curr. Liability & Prov.

Account Payables

Provisions

Net Current Assets

Appl. of Funds

FY16

20,963

8.0

4,312

20.6

543

3,770

355

4,028

909

22.7

3,116

26.7

14.9

FY17

22,768

8.6

5,533

24.3

730

4,802

366

5,096

1,035

-534

9.8

4,594

47.5

20.2

FY18

22,771

0.0

4,934

21.7

830

4,104

603

4,653

1,001

-22

21.0

-2

3,676

-20.0

16.1

FY19

28,409

24.8

5,764

20.3

930

4,834

595

5,379

1,176

101

23.7

4,102

11.6

14.4

FY20

33,665

18.5

7,178

21.3

1,367

5,811

170

489

6,130

1,259

313

25.6

-8

4,566

11.3

13.6

FY21E

45,971

36.6

10,631

23.1

1,802

8,829

366

1,382

9,845

2,363

24.0

-48

7,530

64.9

16.4

(INR m)

FY22E

56,810

23.6

13,590

23.9

1,883

11,708

285

1,935

13,357

3,206

24.0

10,151

34.8

17.9

(INR m)

FY22E

152

61,534

61,686

102

4,077

65,865

32,366

10,303

22,062

4,328

2,004

53,680

10,895

11,673

23,726

7,385

16,210

8,844

548

37,470

65,865

FY16

137

11,572

11,709

353

1,514

13,576

11,503

2,762

8,742

713

10,028

3,948

3,978

560

1,543

5,910

3,661

196

4,118

13,576

FY17

138

16,134

16,272

1,198

17,470

12,942

3,492

9,450

773

824

833

11,760

4,320

4,237

1,326

1,877

5,544

2,878

316

6,216

17,470

FY18

138

19,111

19,248

834

20,082

14,298

4,322

9,977

899

1,595

1,607

13,515

4,520

5,268

1,307

2,420

6,182

3,687

340

7,333

20,082

FY19

138

22,716

22,854

22,953

17,109

5,252

11,857

1,828

1,119

1,291

16,431

5,357

6,618

892

3,564

8,595

5,130

416

7,836

22,953

FY20

138

26,053

26,191

102

5,077

31,370

24,366

6,619

17,747

1,828

1,325

1,504

21,169

7,989

6,465

1,342

5,373

10,878

5,909

548

10,291

31,370

FY21E

152

52,476

52,628

102

5,077

57,807

28,366

8,421

19,945

3,828

1,004

46,494

8,816

9,446

22,255

5,976

13,464

7,400

548

33,030

57,807

6 August 2020

PI Industries

Financials and valuations

Ratios

Y/E March

Basic (INR)

EPS

Cash EPS

BV/Share

DPS

Payout (%)

Valuation (x)

P/E

Cash P/E

P/BV

EV/Sales

EV/EBITDA

Dividend Yield (%)

FCF per share

Return Ratios (%)

RoE

RoCE

RoIC

Working Capital Ratios

Asset Turnover (x)

Inventory (Days)

Debtor (Days)

Creditor (Days)

Working Cap. Turnover (Days)

Leverage Ratio (x)

Current Ratio

Interest Cover Ratio

Debt/Equity

Cash Flow Statement (Consolidated)

Y/E March

OP/(Loss) before Tax

Depreciation

Interest & Finance Charges

Direct Taxes Paid

(Inc)/Dec in WC

CF from Operations

Others

CF from Operating incl EO

(inc)/dec in FA

Free Cash Flow

(Pur)/Sale of Investments

Others

CF from Investments

Issue of Shares

Inc/(Dec) in Debt

Interest Paid

Dividend Paid

Others

CF from Fin. Activity

Inc/Dec of Cash

Opening Balance

Closing Balance

FY16

20.5

24.1

77.2

2.8

16.6

FY17

30.3

35.1

107.3

3.6

14.6

FY18

24.2

29.7

126.9

5.0

25.1

84.0

68.6

16.0

13.5

62.5

0.2

13.9

29.9

27.1

27.4

1.5

115

1.7

0.1

32.8

30.4

32.3

1.3

2.1

0.1

20.7

19.8

21.0

1.1

115

2.2

0.04

FY19

27.0

33.2

150.6

3.6

16.4

75.3

61.4

13.5

10.8

53.5

0.2

3.8

19.5

19.2

20.9

1.2

121

1.9

0.00

FY20

30.1

39.1

172.6

3.6

14.7

67.6

52.1

11.8

9.3

43.6

0.2

-2.0

18.6

17.3

18.9

1.1

117

1.9

0.2

FY21E

49.6

61.5

346.9

5.9

14.5

41.0

33.1

5.9

6.3

27.4

0.3

12.0

19.1

17.4

23.4

0.8

105

3.5

0.1

FY22E

66.9

79.3

406.6

5.9

10.8

30.4

25.7

5.0

5.1

21.3

0.3

32.0

17.8

16.8

26.8

0.9

105

3.3

0.1

(INR m)

FY22E

13,357

1,883

285

-3,206

-2,970

9,350

-4,500

4,850

-1,000

-5,500

-1,000

-285

-1,093

-2,379

1,471

22,255

23,726

FY16

4,028

543

-909

114

3,872

-3,345

527

-3,344

366

-96

-518

-40

-288

240

320

560

FY17

5,096

730

-1,035

-1,332

3,533

-1,499

2,034

-830

-198

-2,527

-315

-72

-671

818

-240

766

560

1,326

FY18

4,653

830

-1,001

-1,136

3,399

-1,482

1,918

-774

-69

-2,325

-365

-53

-924

248

-1,094

-19

1,326

1,307

FY19

5,379

930

-1,176

-918

4,265

-3,739

525

316

126

-3,298

-735

-50

-672

-1,382

-415

1,307

892

FY20

6,130

1,367

170

-1,259

573

6,981

-7,257

-276

-213

4,600

-2,870

4,978

-170

-673

-7,797

-3,661

450

892

1,342

FY21E

9,845

1,802

366

-2,363

-1,826

7,824

-6,000

1,824

500

-5,500

20,000

-366

-1,093

18,589

20,913

1,342

22,255

6 August 2020

PI Industries

NOTES

6 August 2020

PI Industries

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.

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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

6 August 2020

PI Industries

********************************************************************************************************************************

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

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clients which are not considered in above disclosures.

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no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,

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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

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* 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.

6 August 2020