V-Mart: Annual Report FY18: Improvement Across Key Parameters

COMPANY NOTE
Target | Estimate Change
India | Consumer | Retailing: Broadlines/Hardlines 8 July 2018
V-Mart (VMART IN) HOLD
EQUITY RESEARCH INDIA

Price target INR2,580.00
Annual Report FY18: Improvement Across (from INR2,200.00)
Price INR2,812.55^
Key Parameters
Key Takeaway
FY18 AR highlights management's strong execution and focus on being ahead
of the curve. More expansion in Tier 4 cities, investment in datacentre and
analytics, improvement in RoE and a 4th consecutive year of FCF generation Financial Summary
highlight same. VMART, with 62% of its stores in Tier 3 & 4 cities, is a key Net Debt (MM): (INR1,086.0)
beneficiary of rural recovery and recent MSP hikes with likely another normal
Market Data
monsoon should be positive for it. Maintain HOLD with revised PT of INR2,580.
52 Week Range: INR2,900.00 -
Top line: 8.9% SSSG in FY18 (base of 13% YoY) was helped by improved price value INR1,015.05
equation (SSSG in volume terms at 24%) and increased assortment (~15% increase in SKUs). Total Entprs. Value (MM): INR49.5BN
Lower GST rate on products of less than INR1000 MRP helped the price/value equation Market Cap. (MM): INR50.6BN
as 85% of revenue consists of below- INR1000 MRP products. Management targets further Shares Out. (MM): 18.0
improvement in price/ value equation and top-line growth (up 22% in FY18). Float (MM): 8.4
Margins: Gross/EBITDA margin improved 223bp/240bp YoY respectively. Margins were Avg. Daily Vol.: 43,102
helped by improved mix (80bp increase in fashion), private label mix (improved from 20%
of sales in FY17 to 49% in FY18) and reduced shrinkage. ASP for the company increased
~10% CAGR over FY13-18, higher than inflation, highlighting uptrading. Management aims
maintain margin.
Stores: Store expansion picked up in FY18 with additions of 31 new stores (total of 171
stores) from 20 stores in FY17. Expansion increased in Tier 4 cities, which accounted for
10.5% of stores in FY18, increasing from 2% in FY17. With entry into Tier 4 cities, VMART
is again the first mover, similar to how it started by expanding in Tier 3 and 4 cities. The
conversion ratio, at 57%, continues to fall (down 260bp YoY), affected by declining share of
kirana and also due to increasing competition. Management will focus in Tier 2,3 and 4 cities
and will open stores via internal accruals.
Working capital: Core working capital days improved to 55 days in FY18 from 57 days in
FY17 largely led by improvement in payable days from 66 days to 72 days, result of vendor
consolidation measures taken by company. Inventory days (on COGS) were up to 127 days
from 123 days.
Cash flow and return ratio: OCF fell 6% YoY to INR6.4bn as absolute working capital
rose YoY (core WC to sales increased to 11.5% from 10.9%). FCF stood at INR1.76bn in Tanmay Sharma, CFA *
FY18 (INR2.96bn in FY17) as capex rose YoY. VMART remains cash positive, with net cash of Equity Analyst
+91 2242246129 tsharma@jefferies.com
INR4.7bn (INR2.9bn in FY17). RoCE and RoE improved 990bp and 760bp YoY, respectively. Varun Lohchab *
Equity Analyst
Estimates: We raise our top-line and EBITDA estimates by ~2% and ~4%, respectively, on +91 22 4224 6115 vlohchab@jefferies.com
strong execution and better than expected retail traction in Q1FY19, * Jefferies India Private Limited
INR Prev. 2017A Prev. 2018A Prev. 2019E Prev. 2020E
Price Performance
Rev. (MM) -- 10,017.0 -- 12,224.0 14,209.0 14,356.0 16,198.0 16,522.0
EV/Rev 4.9x 4.1x 3.5x 3.0x 3,000
EBITDA (MM) -- 848.0 -- 1,328.0 1,535.0 1,579.0 1,750.0 1,818.0

EV/EBITDA 58.4x 37.3x 31.4x 27.2x 2,500
Net Profit -- 439.0 -- 777.0 836.0 866.0 952.0 999.0

ROE -- 17.5% -- 25.2% 21.6% 22.3% 20.3% 21.1% 2,000
EPS
FY Mar -- 24.30 -- 43.10 46.30 48.00 52.80 55.30
1,500
FY P/E NM 65.3x 58.6x 50.9x
1,000
JUL-17 NOV-17 MAR-18 JUL-18
^Prior trading day's closing price unless

otherwise noted.
Please see analyst certifications, important disclosure information, and information regarding the status of non-US analysts on pages 10 to 14 of this report.
VMART IN
8 July 2018
Key highlights from MD&A
Business environment and industry
 Organised retail accounts for about 7% of the Indian retail sector.

 Benefited from the fact that GST for apparel with MRP less than INR1000 attracts
the lowest rate, of 5%.
 Management believes that tax rates and laws will become more favourable to
the organized retail sector, which should help narrow the pricing advantage of
the unorganized sector.
 Increased penetration of smartphones is influencing customer consumption
trends.
 In India, out of 5000 towns (with population of more than 0.2mn), only about
500 have organized retail.
Business and supply chain
 Company gets 85% of its revenue from apparel with MRP of below INR1000.
 Improved the price/value equation further in the business.
 Investing in trend analytics and digitalization to help improve product mix.
 Improved the store layout, ambience and visual merchandising during FY18.
 Did vendor consolidation which also resulted in lower cost of procurement.
 The company has increased its merchandise over the years. This has increased
from 3986 SKUs in FY17 to 4591 SKUs in FY18.
 Has set up a new data center, invested in IT infrastructure, deployed retail
analytics software.
Stores
 Ventured into Tier 4 towns more aggressively, with 19 store addition during
FY18.
 86% of the revenues of the company came from non-metro locations.
 Opened 31 stores during FY18.
 Will open stores only in Tier 2,3 and 4 cities; store openings will be in areas
where the company believes it can break even by the end of the first quarter of
launch and be net positive by the end of first year of operation.
 Store openings will happen via internal accruals.
 Intends to deepen store footprints by opening stores within 100 to 150 KMs of
existing stores.
Focus areas and outlook
 Will revamp and widen presence on social and digital media.

 Commissioning stores in North East India.
 Scaling up the warehousing capacity and reduce the turnaround time.
 86% of the revenues of the company came from non-metro locations.
 Target is to improve revenue growth while maintaining margins.
page 2 of 14 Tanmay Sharma, CFA, Equity Analyst, +91 2242246129, tsharma@jefferies.com
Please see important disclosure information on pages 10 - 14 of this report.

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8 July 2018
Key operational exhibits

Exhibit 1: SSSG for Fashion business stood at ~9% YoY, Exhibit 2: SSSG in volume terms at 24% YoY is higher than
despite high base of 13% YoY growth overall value led by GST rate cut and entry into Tier 4 cities,
25.0
where value offered to consumers is even higher
30.0
20.0
25.0
15.0
20.0
10.0 15.0
5.0 10.0
0.0 5.0
FY12 FY13 FY14 FY15 FY16 FY17 FY18
0.0
(5.0) FY13 FY14 FY15 FY16 FY17 FY18
(5.0)
SSSG (%)
Overall SSSG (%) SSSG (volumes) (%)
Source: Jefferies, company data
Exhibit 3: Derived sales per sq ft is up ~2% in FY18 to Exhibit 4: ASP in fashion is up 9.8% CAGR over FY13-18;
~INR9300 per sq ft FY18 ASP is down due to GST rate cuts
10,000.0 400.0
9,000.0 350.0
8,000.0
300.0
7,000.0
6,000.0 250.0
5,000.0 200.0
4,000.0 150.0
3,000.0
100.0
2,000.0
1,000.0 50.0
0.0 0.0
FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18
Derived Sales per sq ft (INR) Fashion ASP (INR) Total ASP (INR)
Source: Jefferies, company data Source: Jefferies, company data
Exhibit 5: Total footfalls increased 23% YoY; footfall per Exhibit 6: Share of higher margins fashion increased by
store is up 1.2% YoY in FY18 80bps YoY in FY18, up ~1300bps over FY13-18
35.0 0.18 95.0
30.0
0.18 90.0
25.0
0.17 85.0
20.0
15.0 0.17 80.0
10.0
0.16 75.0
5.0
0.0 0.16 70.0

Foot falls (mn) Foot falls per st ore (mn)(rhs) Share of Fashion (%)

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Exhibit 7: Share of private label mix increased to 49% from Exhibit 8: Shrinkage in the business at all time low,
20% in FY18 – margins slightly better in private label suggesting improved internal controls and processes
60.0 2.0
1.8
50.0
1.6
1.4
40.0
1.2
30.0 1.0
0.8
20.0
0.6
0.4
10.0
0.2
0.0 0.0
FY17 FY18 FY14 FY15 FY16 FY17 FY18
Private label mix (%) Shrinkage (%)
Exhibit 9: Conversion ratio is down 260bps YoY and Exhibit 10: Total stores stood at 171 at the end of FY18 with
1160bps over FY13-18, indicating some customer fatigue total area of 1.4mn sq ft
80.0 180.0 1.6
70.0 160.0 1.4
60.0 140.0 1.2

120.0
50.0 1.0
100.0
40.0 0.8
80.0
30.0 0.6
60.0
20.0 40.0 0.4
10.0 20.0 0.2
0.0 0.0 -
Conversion ratio (% ) Stores (nos) Area (mn sq ft) (rhs)
Exhibit 11: Pace of store addition has picked up, added 31 Exhibit 12: Size per store at ~8400 sq ft is largely stable in
new stores in FY18 FY18, but increased since FY13
35.0 8,500.0
30.0 8,400.0
25.0
8,300.0
20.0
8,200.0
15.0
8,100.0
10.0
5.0 8,000.0
0.0 7,900.0
Net store addition Size per store (sq ft)

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8 July 2018
Exhibit 13: Increased expansion in Tier 4 cities which now Exhibit 14: 63% of the stores remain in UP and Bihar in
forms 10.5% of total stores in FY18 from 2.1% in FY17 FY18, like FY17
100.0 2.1
10.5
90.0
80.0
70.0 23
56.0
50.9
60.0
42
50.0
6
40.0
30.0
28.4 25.7 8
20.0
10.0 21
13.5 12.9
0.0
FY17 FY18
Metro and Tier I Tier II Tier III Tier IV UP Bihar Jharkhand Odisha Ot hers
Key financial exhibits

Exhibit 15: Strong revenue growth at 22% YoY in FY18 Exhibit 16: Gross margin up 223bps YoY in FY18, GMs are
helped by strong store expansion largely stagnant from FY13 to FY17
14,000.0 60.0 33.0
12,000.0 50.0 32.0
10,000.0 31.0
40.0
8,000.0 30.0
30.0
6,000.0 29.0
20.0
4,000.0 28.0
2,000.0 10.0 27.0
0.0 - 26.0
Revenues (INR mn) Revenue growth (%) (rhs) Gross margins (%)
Exhibit 17: Cost items as a % of sales Exhibit 18: EBITDA margin expanded by 240bps YoY in
12.0
FY18, however only 70bps higher than FY13 levels
12.0
10.0
8.0 10.0
6.0 8.0
4.0 6.0
2.0 4.0
-
2.0
FY13 FY14 FY15 FY16 FY17 FY18
Staff costs (% of sales) Rentals (% of sales) 0.0

Ot her expenses (% of sales)
EBIT DA margins (%)

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8 July 2018
Exhibit 19: Stellar growth in profitability during FY18 Exhibit 20: RoCE and RoE is up by 992bps YoY and 763bps
900.0 YoY respectively in FY18
800.0 40.0
700.0 35.0
600.0 30.0
500.0 25.0
400.0
20.0
300.0
15.0
200.0
10.0
100.0
5.0
0.0
FY13 FY14 FY15 FY16 FY17 FY18 0.0
PAT (INR mn)
RoCE (% ) RoE (%)

Exhibit 21: Net working capital days is down to 55 days in Exhibit 22: Working capital improvement largely led by
FY18 from 57 days in FY17, sustaining improvement increase in payable days
100.0 160.0
90.0 140.0
80.0
120.0
70.0
60.0 100.0
50.0 80.0
40.0 60.0
30.0
40.0
20.0
10.0 20.0
0.0 0.0
Net working capital days Inventory days (on COGS) Payable days (on COGS)
Exhibit 23: Core working capital as a % of sale remains Exhibit 24: CFO is down 6% YoY due to higher working
steady in FY18, though has come down over the years capital, though both FCFF and OCF remains strong
1,600.0 25.0 800.0
700.0
1,400.0
20.0 600.0
1,200.0 500.0
1,000.0 400.0
15.0
300.0
800.0
200.0
600.0 10.0
100.0
400.0 0.0
5.0 (100.0)
200.0
(200.0)
0.0 - (300.0)
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18
Core working capit al (INR mn) Core working capit al (% of sales) Cash flow from operation (INR mn) Free cash flow (INR mn)

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Exhibit 25: Company remains debt free Exhibit 26: Total company level capex per sq ft came down
500.0 in FY18 despite sharp store addition
400.0 2,500.0
300.0
200.0
2,000.0
100.0
0.0
1,500.0
(100.0)
(200.0)
(300.0) 1,000.0
(400.0)
(500.0) 500.0
(600.0)
FY12 FY13 FY14 FY15 FY16 FY17 FY18 0.0
Net debt (INR mn)
Cash flow derived capex per sq ft (INR)
Exhibit 27: Snapshot of ESOP granted – no significant impact

FY18 FY17
Number of options granted 15695 76225
Person granted options and number Mr Anand Agarwal, CFO - Mr. Rajan Sharma, President
of options 11735 Procurement and Sourcing
– 8540
Mr Venugopal, VP, Retail Sale Mr. Deepak Sharma,
Operation - 3960 Erstwhile CFO – 7230
Mr. Snehal Shah, SVP, Ops
and marketing – 5430
Mr. Venugopal, VP, Retail
Store Operation – 2940
Mr. Ramesh K Agarwal, VP,
SCM – 2050
Mrs. Anjali Goel, AVP, HR –
1930
Mr. M Srnivasan, VP, SCM
and Planning – 1470
Mr. Dinesh Srivastava, AVP,
IT – 2340
Impact on Profiit (INR mn) 11.87mn (not significant 0.7mn (no significant
impact) impact)
Exercise price First 6395 options at INR900 INR470
Remaining 9300 options at
INR1260
Exercise price discount to market 11% 8%
price (%) on date of grant

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8 July 2018
Financials
Table 1: Profit and loss statement
Rs mn FY16 FY17 FY18 FY19E FY20E
Net Sales 8,093 10,017 12,224 14,356 16,522
Cost of goods sold 5,712 7,028 8,303 9,733 11,202
as % of sales 70.6 70.2 67.9 67.8 67.8
Employee cost 623 783 984 1,120 1,289
as % of sales 7.7 7.8 8.0 7.8 7.8
Rental cost 400 452 526 632 738
as % of sales 4.9 4.5 4.3 4.4 4.5
Other expenses 737 908 1,083 1,292 1,475
as % of sales 9.1 9.1 8.9 9.0 8.9
Total Expenditure 7,472 9,170 10,896 12,777 14,703
EBITDA 621 848 1,328 1,579 1,818
EBITDA % 7.7 8.5 10.9 11.0 11.0
Depreciation 190 186 229 328 379
Other income 10 41 41 48 55
Interest expense 31 35 15 26 26
Extraordinary income/expense 12 - - - -
PBT 422 668 1,125 1,273 1,469
Tax 147 229 348 407 470
Tax rate % 34.8 34.3 30.9 32.0 32.0
PAT (Reported) 276 439 777 866 999
PAT (Adjusted) 263 439 777 866 999
Source: Jefferies estimates, company data
Table 2: Balance sheet

Rs mn FY16 FY17 FY18E FY19E FY20E
Inventories 2,044 2,692 3,071 3,333 3,836
Sundry debtors - - - - -
Loans & advances 82 34 1 - -
Other current assets 1 0 142 142 142
Cash & cash equivalents 236 648 473 1,089 1,697
Current assets 2,364 3,374 3,686 4,564 5,675
Net fixed assets 1,126 1,315 1,483 1,617 1,700
Goodwill - - - - -
Investments 130 58 63 63 63
Deferred tax asset, net 42 70 92 92 92
Miscellaneous expenditure - - - - -
Other assets 169 174 175 175 175
Total assets 3,832 4,990 5,499 6,511 7,705
Current liabilities 1,089 1,739 1,938 2,137 2,418

Provisions 82 75 42 42 42
Long-term debt - 6 3 3 3
Short-term debt 270 349 - - -
Other liabilities 84 118 42 42 42
Minority interests - - - - -
Shareholder's equity 2,307 2,703 3,474 4,288 5,201
Total liabilities & equity 3,832 4,990 5,499 6,512 7,706

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Table 3: Cash flow statement

Rs mn FY16 FY17 FY18E FY19E FY20E
Cash flow from operations (a) 461 687 643 1,108 1,127
Cash flow from inv (b) (372) (728) (151) (414) (407)
Financial cash flow (c ) (96) 49 (384) (78) (112)
Net inc/dec in cash (a+b+c) (6) 8 109 616 608
Opening cash and bank balances 49 21 29 196 812
Change in other bank balances 43 29 196 812 1,420
Closing cash and bank balances 461 687 643 1,108 1,127
Table 4: Key ratios

FY16 FY17 FY18E FY19E FY20E
Diluted EPS 15.3 24.3 43.1 48.0 55.3
BVPS (Rs) 128 150 193 238 288
Dividend per share 1.5 1.6 2.1 2.9 4.8
Dividend payout % 9.9 5.5 4.0 5.0 7.2
Capex (Rs mn) (260) (415) (478) (442) (442)
FCFF (Rs mn) 222 296 176 683 702
SSSG (%) (1.1) 13.0 8.9 8.0 7.0
Valuation (x)
PE 180.2 108.1 61.0 54.8 47.5
EV/EBITDA 76.4 55.7 35.3 29.3 25.1
EV/Sales 5.9 4.7 3.8 3.2 2.8
PBV 20.5 17.6 13.6 11.1 9.1
Profitability Ratios
ROCE % 17.9 25.0 34.9 33.4 31.5
ROE% 12.1 17.5 25.2 22.3 21.1
Turnover Ratios
Inventory in days 124 123 127 125 125
Debtor days - - - - -
Creditors turnover days 55 66 72 70 70
Wkg. Capital cycle 69 57 55 55 55

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Company Description
V-Mart
V-Mart operates in the value retail format primarily in the tier 2 and 3 cities of India offering apparels, general merchandise and household
goods. “Price Less Fashion” is the main motto to company focusing on providing the best value to the consumer in smaller towns. The
company has a higher presence in the states of Bihar and Uttar Pradesh where it has been following the cluster model of expansion.
Company Valuation/Risks
V-Mart
Given improved outlook for recovery in rural growth led by recent MSP hikes and likely third consecutive year of normal monsoon we increase
our target multiple to 25x FY20 EBITDA (from 22x earlier) to arrive at PT of INR2,580 (from INR2,200 earlier). We maintain HOLD as we believe
that valuations at CMP (27x EV/EBITDA FY20E) outweigh the fundamentals.. Upside risk: 1) Strong and sustained SSSG which leads to further
improvement in margins, 2) sharp increase in rural spending, especially in U.P and Bihar; and 3) any M&A activity in the company resulting
in uptrend in valuations; Downside risk: sharp fall in SSSG due to increasing competition.
Analyst Certification:
I, Tanmay Sharma, CFA, certify that all of the views expressed in this research report accurately reflect my personal views about the subject
security(ies) and subject company(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific
recommendations or views expressed in this research report.
I, Varun Lohchab, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and
subject company(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations
or views expressed in this research report.
Registration of non-US analysts: Tanmay Sharma, CFA is employed by Jefferies India Private Limited, a non-US affiliate of Jefferies LLC and is not
registered/qualified as a research analyst with FINRA. This analyst(s) may not be an associated person of Jefferies LLC, a FINRA member firm, and
therefore may not be subject to the FINRA Rule 2241 and restrictions on communications with a subject company, public appearances and trading
securities held by a research analyst.
Registration of non-US analysts: Varun Lohchab is employed by Jefferies India Private Limited, a non-US affiliate of Jefferies LLC and is not
registered/qualified as a research analyst with FINRA. This analyst(s) may not be an associated person of Jefferies LLC, a FINRA member firm, and
therefore may not be subject to the FINRA Rule 2241 and restrictions on communications with a subject company, public appearances and trading
securities held by a research analyst.
As is the case with all Jefferies employees, the analyst(s) responsible for the coverage of the financial instruments discussed in this report receives
compensation based in part on the overall performance of the firm, including investment banking income. We seek to update our research as
appropriate, but various regulations may prevent us from doing so. Aside from certain industry reports published on a periodic basis, the large majority
of reports are published at irregular intervals as appropriate in the analyst's judgement.
Investment Recommendation Record

(Article 3(1)e and Article 7 of MAR)
Recommendation Published , 15:06 ET. July 8, 2018
Recommendation Distributed , 15:06 ET. July 8, 2018
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risk, growth rate, revenue stream, discounted cash flow (DCF), EBITDA, EPS, cash flow (CF), free cash flow (FCF), EV/EBITDA, P/E, PE/growth, P/CF,

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8 July 2018
P/FCF, premium (discount)/average group EV/EBITDA, premium (discount)/average group P/E, sum of the parts, net asset value, dividend returns,
and return on equity (ROE) over the next 12 months.
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company, made a change to a rating or price target of a company or discontinued coverage of a company.
Legend:
I: Initiating Coverage
D: Dropped Coverage
B: Buy
H: Hold
UP: Underperform
For Important Disclosure information on companies recommended in this report, please visit our website at https://javatar.bluematrix.com/sellside/
Disclosures.action or call 212.284.2300.

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8 July 2018
Distribution of Ratings
IB Serv./Past 12 Mos. JIL Mkt Serv./Past 12
Mos.
Rating Count Percent Count Percent Count Percent
BUY 1124 53.86% 69 6.14% 15 1.33%
HOLD 831 39.82% 19 2.29% 1 0.12%
UNDERPERFORM 132 6.32% 1 0.76% 0 0.00%

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8 July 2018
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VMART IN
8 July 2018
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V-Mart: Annual Report FY18: Improvement Across Key Parameters

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COMPANY NOTE

Target | Estimate Change

India | Consumer | Retailing: Broadlines/Hardlines 8 July 2018

V-Mart (VMART IN) HOLD

EQUITY RESEARCH INDIA

EBITDA (MM) -- 848.0 -- 1,328.0 1,535.0 1,579.0 1,750.0 1,818.0

Net Profit -- 439.0 -- 777.0 836.0 866.0 952.0 999.0

^Prior trading day's closing price unless

Key highlights from MD&A

Business environment and industry

 Organised retail accounts for about 7% of the Indian retail sector.

Business and supply chain

Focus areas and outlook

 Will revamp and widen presence on social and digital media.

page 2 of 14 Tanmay Sharma, CFA, Equity Analyst, +91 2242246129, tsharma@jefferies.com

Please see important disclosure information on pages 10 - 14 of this report.

Key operational exhibits

Source: Jefferies, company data Source: Jefferies, company data

15.0 0.17 80.0

0.0 0.16 70.0

Source: Jefferies, company data Source: Jefferies, company data

page 3 of 14 Tanmay Sharma, CFA, Equity Analyst, +91 2242246129, tsharma@jefferies.com

Please see important disclosure information on pages 10 - 14 of this report.

Private label mix (%) Shrinkage (%)

Source: Jefferies, company data Source: Jefferies, company data

70.0 160.0 1.4

60.0 140.0 1.2

10.0 20.0 0.2

Conversion ratio (% ) Stores (nos) Area (mn sq ft) (rhs)

Source: Jefferies, company data Source: Jefferies, company data

Net store addition Size per store (sq ft)

Source: Jefferies, company data Source: Jefferies, company data

page 4 of 14 Tanmay Sharma, CFA, Equity Analyst, +91 2242246129, tsharma@jefferies.com

Please see important disclosure information on pages 10 - 14 of this report.

Source: Jefferies, company data Source: Jefferies, company data

Key financial exhibits

12,000.0 50.0 32.0

2,000.0 10.0 27.0

Source: Jefferies, company data Source: Jefferies, company data

Staff costs (% of sales) Rentals (% of sales) 0.0

page 5 of 14 Tanmay Sharma, CFA, Equity Analyst, +91 2242246129, tsharma@jefferies.com

Please see important disclosure information on pages 10 - 14 of this report.

Source: Jefferies, company data

Source: Jefferies, company data Source: Jefferies, company data

Source: Jefferies, company data Source: Jefferies, company data

page 6 of 14 Tanmay Sharma, CFA, Equity Analyst, +91 2242246129, tsharma@jefferies.com

Please see important disclosure information on pages 10 - 14 of this report.

Exhibit 27: Snapshot of ESOP granted – no significant impact

page 7 of 14 Tanmay Sharma, CFA, Equity Analyst, +91 2242246129, tsharma@jefferies.com

Please see important disclosure information on pages 10 - 14 of this report.

Table 2: Balance sheet

Current liabilities 1,089 1,739 1,938 2,137 2,418

page 8 of 14 Tanmay Sharma, CFA, Equity Analyst, +91 2242246129, tsharma@jefferies.com

Please see important disclosure information on pages 10 - 14 of this report.

Table 3: Cash flow statement

Table 4: Key ratios

page 9 of 14 Tanmay Sharma, CFA, Equity Analyst, +91 2242246129, tsharma@jefferies.com

Please see important disclosure information on pages 10 - 14 of this report.