IDirect_SterliteTech

7/29/2019 IDirect_SterliteTech

1/9

July 29, 2013

ICICI Securities Ltd|Retail Equity Research

Result Update

WHATS CHANGED

PRICE TARGET...................................... .................................... Changed from | 27 to | 22

EPS (FY14E)................................................................................ Changed from | 1.8 to | 2

EPS (FY15E)............ .................................... ............................. Changed from | 2.0 to | 2.4

RATING...............................................................................................................Unchanged

Telecom robust but power disappoints

Sterlite Technologies (STL) reported 12% YoY decline in revenues, led bytepid power sector volume (25% YoY dip), below our expectations of 6%decline. The key highlight for Q1FY14 was the expansion of telecomsegment margins (up 400 bps YoY) leading to improvement in overallEBITDA margins at 10.8% (I-direct estimate: 8.1%). On the negative side,dismal power segment revenues pulled down overall revenues. Coupledwith this, a flattish trend in finance costs ensured YoY PAT growth of23.4% vs. our estimate of ~40% YoY decline.Telecom surprises on margins, volume while power volumes tepidTelecom segment revenues grew 6% YoY to | 291 crore (I-direct

estimate: | 243 crore). This was mainly on the back of 11% YoY and 18%

QoQ volume growth in the optical fibre segment (3.8 mfkm for Q1FY14)

coupled with a favourable exchange rate. On the other hand, power

segment volumes dipped 25% YoY to 27000 MT against 36200 MT

supplied in Q1FY13, mainly owing to lower demand in the domestic

market. The order backlog declined marginally to | 1830 crore vs. |1900

crore in Q4FY13. Given the muted economic scenario, we built in a 5%decline in power conductor volumes in FY14E and 7% growth in FY15E.

Revenues are expected to witness 8% CAGR over FY13-15E.

BOT projects mostly on track barring few glitches.STL has incurred a capex of | 2430 crore for the BOOM projects till date.

Of this, the equity contribution from STL amounted to | 680 crore (raised

through debt on STLs balance sheet), and the rest were the direct debt

infusion on the SPVs books. In the first BOOM project, the first line

connecting Purnea to Bihar Shariff will be commissioned in Q2FY14 while

the second line for this project line is having force majeure issues. The

political unrest in the Assam belt has halted the last leg of project.

Upgrade in earnings not enough, consistency is the key; maintain HOLDThe margin surprise in Q1FY14 does lead to earnings upgrade of 12%,

15% for FY14E, FY15E owing to margin recovery in the telecom segment

but we downgrade revenues 5% each for FY14, FY15E. Hence, going

ahead, we would look at consistency in performance in coming quarters.

We value STL on 9x on FY15E EPS to arrive at a fair value of | 22/share. Exhibit 1:Financial snapshot(| Crore) Q1FY14 Q1FY14E Q1FY13 Q4FY13 QoQ (Chg %) YoY (Chg %)

Total Operating Income 758.3 807.2 866.1 816.5 -7.1 -12.4

EBITDA 82.2 65.4 69.6 69.4 18.4 18.1

EBITDA Margin (%) 10.8 8.1 8.0 8.5 234 bps 280 bps

Depreciation 23.7 23.9 20.6 23.1 2.5 15.1

Interest 27.8 30.6 28.0 25.0 11.1 -0.6

Reported PAT 22.6 11.0 18.3 15.2 48.6 23.4

Source: Company, ICICIdirect.com Research

Sterlite Technologies (STEOPT)

| 21

ting matrix

ing : Hold

get : | 22

get Period : 6 months

ential Downside : 5%

y Financials

Crore FY12 FY13E FY14E FY15E

et Sales 2,727 3,353.7 3,270.9 3,821.9

BITDA 198.9 245.8 306.7 348.9

et Profit 43.9 43.9 77.4 93.1

PS (|) 1.1 1.1 2.0 2.4

luation summary

FY12 FY13E FY14E FY15E

/E 18.8 18.8 10.7 8.9

arget P/E 27.6 27.6 15.6 13.0

V / EBITDA 6.6 6.9 6.2 5.8

/BV 0.7 0.7 0.7 0.6oNW 3.8 3.7 6.1 6.9

oCE 7.1 7.0 8.5 9.0

ock data

arket Capitalization | 825.4 Crore

tal Debt (FY13E) | 1039.8 Crore

sh and Investments (FY13E) | 161.8 Crore

| 1703.4 Crore

week H/L 37 / 23

uity capital | 78.6 Crore

ce value | 2

Holding (%) 9.9

Holding (%) 2.4 ce movement

0

5

10

15

20

25

30

35

40

Apr-13Jan-13Nov-12Aug-12May-12

(STL,

|)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

(Index)

Price (R.H.S) Nifty (L.H.S)

alysts name

hirag J Shah

[email protected]


2/9

ICICI Securities Ltd|Retail Equity ResearchPage 2

Exhibit 2:Key AssumptionsSegment Unit FY13E FY14E FY15E

Revenue Growth (%) 23.0 -2.5 16.8

EBITDA Margin (%) 7.3 9.4 9.1

Volume

Conductors MT 137,750 131,042 140,715

Optical Fibre FKM 12,500,000 14,375,000 16,531,250Fiber Optic cables FKM 4,600,000 4,830,000 5,264,700

Copper Telecom Cables CKM 151,959 113,969 85,477


Result Analysis (Margins positively surprise but volumes tepid)

Power Segment Net sales for the segment declined 20% YoY to | 453 crore (I-

direct estimate: | 575 crore). This had been on the back of a

significant volume decline of 25% YoY and 17% QoQ to 27000

MT

The current power segment backlog stands at | 1500 crore. Theshare of the power segment continues to dominate overall

backlog 82%

Margins for the quarter stayed put at 5.4%, down 20 bps QoQ Given the steep volume decline, the EBITDA/MT was relatively

stable at | 9,000/MT, down from | 9200/tone in Q4FY13

Going ahead, we have built in volume decline of 5% in FY14E andgrowth 7% YoY in FY15E. Hence, with stable margins expected,

going ahead, we forecast power segment revenues of | 2206(down 1% YoY) in FY14E and | 2416 crore (up 10% YoY) in FY15E

Telecom Segment Revenue for the segment stood at | 291 crore, implying growth of

6% YoY. The order backlog for the segment de-grew to | 350

crore from | 350 crore QoQ

EBITDA margins came in as a positive surprise. Against ourexpectation of 16%, STL reported margins of 21% on the back of

11% YoY and 18% QoQ volume growth in the optic fibre

segment. Going ahead, on a quarterly basis, we have raised our

margin estimates for the telecom segment to 18% from 16%

earlier

We have built in volume growth of 15% each for the optic fibresegment for FY14E and FY15E, respectively, and 5% and 9%

growth for fibre optical cables for FY14E and FY15E, respectively.

Hence, we expect the telecom segment to report revenues of

| 1291 crore (up 22% YoY) for FY14E and | 1406 crore (up 9%

YoY) for FY15E


3/9


Exhibit 3: Trend of order bookhigh PGCIL dependence

2,4002,600

2,200

1,700

22002400 2400 2450 2300 2300 2200

2000 19001830

0

750

1,500

2,250

3,000

Q4FY10

Q1FY11

Q2FY11

Q3FY11

Q4FY11

Q1FY12

Q2FY12

Q3FY12

Q4FY12

Q1FY13

Q2FY13

Q3FY13

Q4FY13

Q1FY14

(|

crore)

.


Exhibit 4: Trend in revenues

662

492 509579

682

547

707664

797846 823 816 816

745

0

250

500

750

1,000

Q4FY10

Q1FY11

Q2FY11

Q3FY11

Q4FY11

Q1FY12

Q2FY12

Q3FY12

Q4FY12

Q1FY13

Q2FY13

Q3FY13

Q4FY13

Q1FY14

(|

crore)

.


Exhibit 5: Trend of segment-wise sales

330

422

514

394

515476

536570 549 574 538

453

179 157 168 153193 188

261 276 275 242 262291

0

150

300

450

600

750

Q2FY11

Q3FY11

Q4FY11

Q1FY12

Q2FY12

Q3FY12

Q4FY12

Q1FY13

Q2FY13

Q3FY13

Q4FY13

Q1FY14

(|

crore)

.

Power Telecom


The order backlog stands at | 1830 crore out of which

the power segment comprise orders worth | 1500

crore. The telecom segment order backlog stood at

| 350 crore

Revenues for Q1FY14 came in at | 745 crore vs. our

expectations of | 807 crore. Going ahead, we forecast

revenue CAGR of ~8% over FY13E-15E


4/9


Exhibit 6:Trend in volume of power segment

5000

25000

45000

65000

85000

105000

125000

145000

165000

Q4FY11

Q1FY12

Q2FY12

Q3FY12

Q4FY12

Q1FY13

Q2FY13

Q3FY13

Q4FY13

Q1FY14

FY14E

FY15E

(MT's)


.Exhibit 7: Trend of EBITDA margins

0

5

10

15

20

25

Q3F

Y09

Q4F

Y09

Q1F

Y10

Q2F

Y10

Q3F

Y10

Q4F

Y10

Q1F

Y11

Q2F

Y11

Q3F

Y11

Q4F

Y11

Q1F

Y12

Q2F

Y12

Q3F

Y12

Q4F

Y12

Q1F

Y13

Q2F

Y13

Q3F

Y13

Q4F

Y13

Q1F

Y14

(%)

-

5

10

15

20

25

30

35

(%)

Power Overall Telecom(RHS)


Other highlights:

Net debt for the company at the end of Q1FY14 stood at | 930crore vs. | 840 crore in Q1FY13. Out of this, | 680 crore is

attributed to equity infusion in the BOOM SPVs

Total capex done in Q1FY14 stood at | 30 crore Going ahead, we have built in a topline decline of 3% and growth

of 16.8%, respectively, for FY14E and FY15E. On the bottomline

front, we have built in growth of 76% for FY14E (buoyed by low

base and recovery of margins in the telecom segment) and 20.2%

for FY15E, on the back of stable margins and volume offtake,

going ahead

Conductor volumes in Q1FY14 declined 25% YoY to 27000

MT. The telecom vertical posted robust performance with

optic fibre volume at 3.8 million fkm, implying 11% YoY

and 18% QoQ growth

EBITDA margins came in at 10.8% vs. our expectation of

8.1%. The power segment had an EBITDA margin of 5.4%.

Margins for the telecom segment came in at 21% vs. our

expectation of 16% on account of better volume up-pick

in the optic fibre segment


5/9


Valuations

Margins surprise in Q1FY14 does lead to earnings upgrade of 12%, 15%

for FY14E, FY15E owing to margin recovery in the telecom segment but

we downgrade revenues 5% each for FY14, FY15E. Hence, going ahead,

we would look at the consistency in performance in the coming quarters

in terms of stability in margins in the telecom segment and conductorvolumes in the power segment. We have valued STL on 9x FY15E EPS to

arrive at a fair value of | 22/share.Exhibit 8: Change in estimates

Particulars

Old New % Change Old New % Change

Revenue 3,461.2 3270.9 (5.5) 4036.7 3821.9 (5.3)

EBITDA 302.0 306.7 1.6 341.9 348.9 2.1

EBITDA Margin % 8.7 9.4 65 bps 8.5 9.1 66 bps

PAT 69.1 77.4 12.1 80.5 93.1 15.6

EPS 1.8 2.0 12.1 2.0 2.4 15.6

FY14E FY15E



6/9


Financial summary

Profit and loss statement

(| Crore)

(Year-end March) FY12 FY13E FY14E FY15E

Total operating Income 2,727.5 3,353.7 3,270.9 3,821.9

Growth (%) 20.5 23.0 -2.5 16.8

Raw Material Expenses 1,904.2 2,350.6 2,242.0 2,650.1

Employee Expenses 98.7 117.7 120.3 134.9

Other Operating Expenses 525.7 639.6 601.9 687.9

Administrative Expenses 0.0 0.0 0.0 0.0

Other expenses 0.0 0.0 0.0 0.0

Total Operating Expenditure 2,528.6 3,107.9 2,964.2 3,472.9

EBITDA 198.9 245.8 306.7 348.9

Growth (%) -25.1 23.6 24.8 13.8

Depreciation 70.7 89.9 102.1 113.2

Interest 95.1 105.6 111.9 125.8

Other Income 23.7 14.5 15.3 23.0

PBT 56.8 64.9 108.0 133.0Others 0.0 0.0 0.0 0.0

Total Tax 12.9 21.0 30.5 39.9

PAT 43.9 43.9 77.4 93.1

Growth (%) -67.4 0.0 76.5 20.2

EPS (|) 1.1 1.1 2.0 2.4 Source: Company, ICICIdirect.com Research

Cash flow statement

(| Crore)


Profit after Tax 43.9 43.9 77.4 93.1

Add: Depreciation 70.7 89.9 102.1 113.2

(Inc)/dec in Current Assets 80.2 -450.9 -216.7 -444.0

Inc/(dec) in CL and Provisions 117.3 85.3 -25.1 190.9

Others 0.0 0.0 0.0 0.0

CF from operating activities 312.0 -231.9 -62.3 -46.7

(Inc)/dec in Investments -67.5 -13.0 -12.0 -12.0

(Inc)/dec in Fixed Assets -218.0 -170.3 -124.1 -50.0

Others 0.0 0.0 0.0 0.0

CF from investing activities -278.0 -169.8 -136.1 -62.0

Issue/(Buy back) of Equity 7.4 0.0 0.0 0.0

Inc/(dec) in loan funds 25.6 375.0 100.0 150.0

Dividend paid & dividend tax -13.7 -13.7 -13.7 -13.8

Inc/(dec) in Sec. premium 102.4 0.0 0.0 0.0Others 0.0 7.6 0.0 0.0

CF from financing activities 101.6 378.8 86.3 136.2

Net Cash flow 135.6 -22.9 -112.1 27.5

Opening Cash 49.1 184.7 161.8 49.8

Closing Cash 184.7 161.8 49.8 77.2 Source: Company, ICICIdirect.com Research

Balance sheet

(| Crore)


LiabilitiesEquity Capital 78.7 78.7 78.7 78.7

Reserve and Surplus 1,070.3 1,117.9 1,181.7 1,261.0

Total Shareholders funds 1,148.9 1,196.6 1,260.3 1,339.6

Total Debt 664.8 1,039.8 1,139.8 1,289.8

Deferred Tax Liability 73.5 87.0 87.0 87.0

Minority Interest / Others 0.0 0.0 0.0 0.0

Total Liabilities 1,887.2 2,323.4 2,487.2 2,716.5

Assets

Gross Block 1,455.4 1,625.7 1,749.9 1,799.9

Less: Acc Depreciation 519.0 606.5 706.3 817.2

Net Block 936.4 1,019.2 1,043.6 982.7

Capital WIP 41.1 41.1 41.1 41.1

Total Fixed Assets 977.5 1,060.3 1,084.7 1,023.8Investments 176.3 189.3 201.3 213.3

Inventory 272.7 292.6 276.8 351.4

Debtors 806.9 639.1 667.3 785.3

Loans and Advances 362.3 869.8 1,078.7 1,290.9

Other Current Assets 8.4 99.7 95.1 134.2

Cash 184.7 161.8 49.8 77.2

Total Current Assets 1,635.0 2,063.0 2,167.6 2,639.1

Creditors 540.6 621.1 631.7 743.4

Provisions 54.9 31.1 31.6 74.3

Total Current Liabilities 909.7 995.0 969.9 1,160.8

Net Current Assets 725.2 1,068.0 1,197.7 1,478.2

Others Assets 0.0 0.0 0.0 0.0

Application of Funds 1,887.3 2,323.4 2,487.2 2,716.5


Key ratios


Per share data (|)

EPS 1.1 1.1 2.0 2.4Cash EPS 2.9 3.4 4.6 5.2

BV 29.2 30.4 32.1 34.1

DPS 0.3 0.3 0.3 0.3

Cash Per Share 4.7 4.1 1.3 2.0

Operating Ratios (%)

EBITDA Margin 7.3 7.3 9.4 9.1

PBT / Total Operating income 2.1 2.0 3.3 3.5

PAT Margin 1.6 1.3 2.4 2.4

Inventory days 31.2 31.4 32.0 30.0

Debtor days 108.5 71.0 75.0 75.0

Creditor days 72.7 69.0 71.0 71.0

Return Ratios (%)

RoE 3.8 3.7 6.1 6.9

RoCE 7.1 7.0 8.5 9.0RoIC 5.8 4.9 6.0 6.3

Valuation Ratios (x)

P/E 18.8 18.8 10.7 8.9

EV / EBITDA 6.6 6.9 6.2 5.8

EV / Net Sales 0.5 0.5 0.6 0.5

Market Cap / Sales 0.3 0.3 0.3 0.2

Price to Book Value 0.7 0.7 0.7 0.6

Solvency Ratios

Debt/EBITDA 3.3 4.2 3.7 3.7

Debt / Equity 0.6 0.9 0.9 1.0

Current Ratio 1.8 2.1 2.2 2.3

Quick Ratio 1.8 1.9 2.2 2.2



7/9


Company Description

Sterlite Technologies is a leading global provider of transmission

solutions for the power and telecom industries. Equipped with a product

portfolio that includes power conductors, optical fibres,

telecommunication cables and a comprehensive telecom

systems/solutions portfolio, STLs vision is to 'Connect every home on theplanet'. STL is also executing multi-million dollar power transmission

system projects, pan-India. The company has a capacity of 160000 MT of

power conductor capacity.

Exhibit 9: Recommendation History

0

5

1015

20

25

30

35

40

45

50

May-1

2

Jun-1

2

Jul-12

Aug-1

2

Sep-1

2

Oct-12

Nov-1

2

Dec-1

2

Jan-1

3

Feb

-13

Mar-13

Apr-13

(|)

Price Target Price

Source: Bloomberg, ICICIdirect.com Research

Exhibit 10: Recent Releases

Date Event CMP Target Price Rating

8-Apr-11 Q3FY11 Result Update 54 Under review Switch/Sell on rallies

8-Apr-11 Q4FY11 Preview 64 Under review Switch/Sell on rallies

3-May-11 Q4FY11 Result Update 59 63 Hold

5-Jul-11 Q1FY12 Preview 56 63 Hold

1-Aug-11 Q1FY12 Result Update 51 54 Hold

5-Oct-11 Q2FY12 Preview 35 54 Hold

21-Oct-11 Q2FY12 Result Update 38 43 Buy

5-Jan-12 Q3FY12 Result preview 28 43 Buy

27-Jan-12 Q3FY12 Result Update 37 31 Sell

4-Apr-12 Q4FY12 Result preview 41 31 Sell

27-Apr-12 Q4FY12 Result Update 36 29 Sell

5-Jul-12 Q1FY13 Result preview 36 31 Sell

31-Jul-12 Q1FY13 Result Update 33 31 Hold

29-Oct-12 Q2FY13 Result Update 31 31 Hold

8-Jan-13 Q3FY13 Result preview 32 31 Hold

29-Jan-13 Q3FY13 Result Update 32 31 Hold

29-Apr-13 Q4FY13 Result Update 25 27 Hold Source: Company, ICICIdirect.com Research


8/9


ICICIdirect.com Research coverage universe (Capital Goods)CMP M Cap

(|) TP(|) Rating (| Cr) FY13 FY14E FY15E FY13 FY14E FY15E FY13 FY14E FY15E FY13 FY14E FY15E FY13 FY14E FY15E

Thermax (THERMA) 590 536 Hold 7140.0 29.8 28.2 32.1 19.8 20.9 18.4 3.7 3.3 3.0 23.9 20.6 18.1 19.1 16.0 16.3

BGR Energy (BGRENE) 106 161 Hold 828.0 21.7 20.9 23.4 4.9 5.1 4.5 0.7 0.7 0.6 11.1 10.2 11.4 12.3 11.3 11.7

Sterlite Technologies (STEOPT) 21 22 Hold 897.0 1.1 1.8 2.4 19.1 11.7 8.8 0.8 0.8 0.8 7.0 7.9 8.3 3.7 5.5 6.1

KEC International (KECIN) 30 37 Buy 831.6 2.6 4.1 6 11.5 7.3 5.0 0.7 0.7 0.6 11.2 11.7 13.1 5.6 8.4 11.1

Jyoti Structures (JYOSTR) 18 25 Buy 160.0 8.0 9.5 11.5 2.5 2.1 1.7 0.2 0.2 0.2 16.8 17.4 16.6 9.1 9.9 10.9

Kalpataru Power (KALPOW) 64 85 Buy 2343.0 8.9 9.8 12.3 7.4 6.7 5.4 0.5 0.5 0.5 11.2 11.2 11.8 7.4 7.6 8.8

Larsen & Toubro (LARTOU) 846 969 Buy 54810.0 50.6 50.1 56.8 16.7 16.9 14.9 3.0 2.8 2.5 15.2 15.1 15.7 17.4 15.3 15.9

BHEL (BHEL) 157 193 Buy 39894.3 27.1 23.3 20.2 5.8 6.7 7.8 1.6 1.4 1.3 27.2 21.9 17.7 22.3 17.0 13.5

RoE (%)EPS (|) P/E (x) P/BV (x) RoCE (%)



9/9

ICICI Securities Ltd Retail Equity Research

CICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns

ratings to its stocks according to their notional target price vs. current market price and then categorises them

as Strong Buy, Buy, Hold and Sell. The performance horizon is two years unless specified and the notional

arget price is defined as the analysts' valuation for a stock.

Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction;

Buy: > 10%/ 15% for large caps/midcaps, respectively;

Hold: Up to +/-10%;

Sell: -10% or more;

Pankaj Pandey Head Research [email protected] Research Desk,ICICI Securities Limited,1st Floor, Akruti Trade Centre,Road No. 7, MIDC,Andheri (East)

Mumbai 400 093

[email protected]

We /I Chirag Shah PGDBM research analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our personal views about

ny and all of 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.

Analysts aren't registered as research analysts by FINRA and might not be an associated person of the ICICI Securities Inc.

CICI Securities Limited (ICICI Securities) and its affiliates are a full-service, integrated investment banking, investment management and brokerage and financing group. We along with affiliates are leading

nderwriter of securities and participate in virtually all securities trading markets in India. We and our affiliates have investment banking and other business relationship with a significant percentage of

ompanies covered by our Investment Research Department. Our research professionals provide important input into our investment banking and other business selection processes. ICICI Securities

enerally prohibits its analysts, persons reporting to analysts and their dependent family members from maintaining a financial interest in the securities or derivatives of any companies that the analysts

over.

he information and opinions in this report have been prepared by ICICI Securities and are subject to change without any notice. 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

rior written consent of ICICI Securities. While we would endeavour to update the information herein on reasonable basis, ICICI Securities, its subsidiaries and associated companies, their directors and

mployees (ICICI Securities and affiliates) are under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent ICICI Securities

rom doing so. Non-rated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable regulations and/or ICICI Securities

olicies, in circumstances where ICICI Securities is acting in an advisory capacity to this company, or in certain other circumstances.

his report is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This

eport 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

nstruments. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. ICICI Securities will not treat recipients as customers by virtue of their

eceiving this report. 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

ircumstances. 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

bjectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. The recipient should independently evaluate

he investment risks. The value and return of investment may vary because of changes in interest rates, foreign exchange rates or any other reason. ICICI Securities and affiliates accept no liabilities for any

oss or damage of any kind arising out of the use of this report. Past performance is not necessarily a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the

sks associated before investing in the securities markets. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to

hange without notice.

CICI Securities and its affiliates might have managed or co-managed a public offering for the subject company in the preceding twelve months. ICICI Securities and affiliates might have received

ompensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for services in respect of public offerings, corporate finance, investment

anking or other advisory services in a merger or specific transaction. It is confirmed that Chirag Shah PGDBM research analysts and the authors of this report have not received any compensation from the

ompanies mentioned in the report in the preceding twelve months. Our research professionals are paid in part based on the profitability of ICICI Securities, which include earnings from Investment Banking

nd other business.

CICI Securities or its subsidiaries collectively do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the publication of the

esearch report.

is confirmed thatChirag Shah PGDBM research analysts and the authors of this report or any of their family members does not serve as an officer, director or advisory board member of the companiesmentioned in the report.

CICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. ICICI Securities and affiliates may act upon or make use

f information contained in the report prior to the publication thereof.

his report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution,

ublication, availability or use would be contrary to law, regulation or which would subject ICICI Securities and affiliates to any registration or licensing requirement within such jurisdiction. The securities

escribed herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and

o observe such restriction.

Documents

IDirect_SterliteTech