A ADD
(no change)

Cummins India Ltd

Company Note Industrial Machinery Aug 11, 2022
InCred Research / Consensus 18.2
CMP* ₹1,238
Target Price ₹1,350
* price as on January 01, 0001
Margins expected to bounce back Financials
India
Consensus ratings*: Buy 19 Hold 4 Sell 7
Previous target: 1,130
Up/downside: 9.0%
Reuters
Bloomberg: KKC IN
Market cap: US$4,724m
Rs343,063m
Average daily turnover: US$9.7m
Current shares o/s: 277.2m
Free float: 49.0%
*Source: Bloomberg

Key changes in this note

Raise FY23F-24F revenue by 3% each.

Cut FY23F EBITDA by 1% and raise FY24F EBITDA by 5%.

Cut FY23F EPS by 4%.

*Source: Bloomberg

Price performance
1M 3M 12M
Absolute (%) 11.4 26.4 31.0
Relative (%) 1.1 12.8 21.1
Major shareholders
% held
Promoter (Cummins Inc) 51.0
SBI Mutual Fund 3.7
Kotak Mutual Fund 3.4
Analyst(s)

Sachin MANIAR

T (91) 22 4161 1545
E sachin.maniar@incredcapital.com

Abhishek JOSHI

T (91) 22 4161 1559
E abhishek.joshi@incredcapital.com

Margins expected to bounce back

1QFY23 PAT beat was led by higher sales and other income offsetting miss in margins. Pricing action and softening commodity prices to aid margins.

Strong underlying demand in the powergen segment, pick-up in key industrial sub-segments, and export push are key near-term growth drivers, in our view.

Reiterate Add rating with a higher SOTP-based target price of Rs1,350.

Higher sales and other income aided PAT despite miss in marginsHigher sales and other income aided PAT despite miss in margins

Cummins India or CIL’s 1QFY23 sales (+42% yoy, +13% qoq) were 12% above our estimate aided by domestic/export sales beat of 11%/14%, respectively. EBITDA margin at 12.7% (-116bp qoq) was below our estimate of 13.2%, impacted by gross margin pressure (-90bp qoq) due to high commodity prices and product mix (higher share of lower HP genset and construction segments’ sales). Core PAT of Rs2.1bn (+63% yoy) was 20% above our estimate on higher sales and other income (+82% yoy).

Price hikes and softening commodity prices aid margins

The company took multiple price hikes, with the last one effective 1 Jul 2022. Price hikes recently have been higher than the historical trend to offset higher commodity prices. Softening commodity prices and the company’s pricing actions would lead to recovery in margins, in our view, and its aspiration is to normalize gross margin. The company expects to sustain its growth momentum in FY23F as end-market demand outlook remains strong and it is optimistic on short- and medium-term growth. Supply chain disruption has restricted 10-18% upside potential for domestic powergen sales.

Export growth, emission norm changes offer positive triggers

Export growth was aided by a) new fit-for-market product strategy, b) strong demand from the Middle East, Latin America, and Asia Pacific regions (aided by higher crude oil prices) for products catering to data centre, telecom, realty, and infrastructure segments. CPCB-IV+ emission norms will be implemented in Jun 2023F and pre-buying is likely in two quarters before this date. CIL could benefit on margins and market share post transition, throwing up export prospects for CPCB-4-compliant products (already undergoing testing).

Reiterate Add rating with higher target price of Rs1,350

Strong underlying demand in the powergen segment, pick-up in key industrial segment, export traction and changes in emission norms are key growth drivers. Long-term growth concerns over the powergen segment persists but the parent company is already investing in alternative fuel technologies, which CIL could adopt as India gets ready for fuel transition. We cut FY23F EBITDA by 1% on lower gross margin but raise FY24F EBITDA by 5% on higher sales. We retain Add rating on CIL with a higher SOTP-based target price of Rs1,350 (roll over 25x EV/EBITDA to Sep 2024F vs. 22x earlier, implying 33x Sep 2024F EPS) from Rs1,130 earlier. Downside risks are pent-up demand not sustaining and a slowdown in exports.

Financial Summary
Mar-21A Mar-22A Mar-23F Mar-24F Mar-25F
Revenue (Rsm) 42,561 60,256 69,772 76,303 83,764
Operating EBITDA (Rsm) 5,795 8,851 10,433 12,573 14,058
Net Profit (Rsm) 6,178 8,866 9,108 10,770 12,009
Core EPS (Rs) 22.3 28.3 32.9 38.9 43.3
Core EPS Growth (4.3%) 27.1% 16.0% 18.2% 11.5%
FD Core P/E (x) 55.53 38.69 37.67 31.85 28.57
DPS (Rs) 14.0 16.0 18.0 19.0 19.0
Dividend Yield 1.13% 1.29% 1.45% 1.54% 1.54%
EV/EBITDA (x) 57.42 37.36 31.65 25.91 22.78
P/FCFE (x) 95.29 58.99 63.06 35.58 31.80
Net Gearing (23.4%) (25.6%) (24.4%) (29.6%) (35.1%)
P/BV (x) 7.78 7.07 6.52 5.90 5.29
ROE 14.4% 17.0% 18.0% 19.4% 19.5%
% Change In Core EPS Estimates (3.90%)
InCred Research/Consensus EPS (x)
INCRED RESEARCH, COMPANY REPORTS, PRICED AS AT January 01, 0001

Margins expected to bounce back

1QFY23 results

Key conference-call highlights

Current demand scenario: CIL expects to sustain growth momentum in FY23F as end-market demand outlook remains strong and it is optimistic on short- and medium-term growth.

Segment-wise revenue break-up (1QFY23): Domestic – Industrials: Rs2.37bn (+24%qoq), Powergen: Rs4.96bn (+5.3% qoq), Distribution: Rs4.16bn (+12.7% qoq), Exports: Rs4.85bn (+14.7% qoq).

Supply chain disruption has restricted 10-18% upside potential for domestic powergen sales: There is supply chain disruption in electronics, sensors, wiring elements, and other parts in electrical sub-systems apart from electronics. Many small and medium suppliers of forged or machined items have gone out of business post Covid-19 pandemic and the company has developed alternative sources and has also been scaling them up. On the electronics side, the company is trying to multisource and would take time to resolve the problem.

·       Gross margin: 1QFY23 gross margin was impacted due to a) significant commodity price increase and the two-quarter lag to pass on input cost inflation to consumers, and b) an adverse mix due to a higher share of lower horsepower or HP powergen sales (as price hikes have not caught up with cost inflation) and higher contribution of the construction segment. However, the company has taken multiple prices hikes, with the last hike effective 1 Jul 2022. Softening in commodity prices and the company’s price actions would lead to a recovery in margins and the aspiration is to go back to original gross margin.

Power generation segment: CIL witnessed strong demand from pharma, biotech, infrastructure, data centres, and residential realty segments in the domestic market, which was partially curtailed by the ability of the supply chain to meet demand (10%-18% upside would have been possible if not for supply chain disruption). Infrastructure related to telecom, 5G, fibre, data centres, and residential reality are doing well, except for some slowdown in the road segment.

·       Industrial segment:

o    Construction: This segment has underperformed management expectations as there has been a slight downtick in construction activity, but it expects overall construction activity to bounce back once the monsoon season is over.

o    Railways: This segment underperformed for two years during the Covid-19 pandemic and would make a comeback from a low base as the company is seeing a lot more orders and enquiries. Power Cars is migrating to the electric platform and the company is introducing new products for electrification, but the cycle will take time to materialize. All green energy products - fuel cells and green energy products - would be done through CIL.

o    Compressor: This segment is going through a cyclical downturn.

o    Mining: This segment is growing at record level and the company expects it to grow multifold due to power shortage problem and increased capex of steel companies.

o    Marine and defence: Both segments are doing better than historical numbers but have long gestation periods where the business could be lumpy.

New emission norms: CPCB-4 products are complicated and sophisticated, and a significant price hike is expected for these products. Draft release (from Ministry of Environment, Forest, and Climate Change (MoEFCC)) indicates CPCB-4 implementation from Jun 2023F and is not likely be postponed. Pre-buying is likely in last two quarters prior to the date of implementation. Tighter emission norms have a positive impact. Cummins globally witnessed a similar trend in the automotive market and expects the same trend for CIL as there would be enough technological differentiation in its products when compared to competitors. 

Exports: Export growth was led by new products introduced in some international markets. Demand remains strong in the Middle East, Latin America and Asia Pacific regions aided by higher crude oil prices. Large capital inflows in the Middle East created strong demand for data centres, telecom, infrastructure, and realty construction. Demand from global market is strong and can sustain for a whole year. Dozens of CPCB4+ compliant products for export are undergoing a testing cycle and are in the final stages for getting approval, and they would be the most advanced products in terms of emission for the power generation market.  Bigger barrier to exports could be preference for buying from the US, Mexico, and Canada than the new alternative energy bill in the US. Export breakdown by regions (1QFY23):  – Exports to Latin America/Asia Pacific/Europe/ Middle East/Africa were at Rs970m/Rs1.07bn/Rs830m/Rs.1.1bn/Rs390m in 1QFY23 vs. Rs970m/Rs960m/Rs920m/710m/340m, respectively, in 4QFY22.

Price hikes: Price hikes recently were higher than the historical trend to offset higher commodity prices. CIL is not in a hurry for reducing prices due to softening commodity prices in order to retain original gross margin.

Impact of Meritor acquisition: Cummins globally gets access to more products to sell to automotive customers in terms of integrated solutions. There are some products in marine and defence segments catered to by CIL which are manufactured by Meritor.

Hydrogen tenders: Those tenders are being negotiated, is still work in progress with no major progress happening while more tenders are opening for which the company is bidding, working with partners to get into some areas and also working on setting up technical resources for such projects. 

Fuel-agnostic products: CIL has already developed fuel-agnostic products which doesn’t only burn diesel but also are a high blend of ethanol, LNG, CNG, and biodiesel.

New products: A lot of new products are coming in and they have started contributing, but the company is not able to make a significant impact due to supply chain constraints.  A part of the growth in exports is being led by new products. In the domestic market, new products have been well accepted by customers.

Traded components: These are mainly for the construction segment apart from data centres.


 

Figure 1: Quarterly estimates

YE March (Rs m)

 1QFY23

 1QFY22

 yoy % chg

 4QFY22

 qoq % chg

 FY22

 FY21

 yoy % chg

 1QFY23E

 Act vs our Est

 Total revenue

16,867

11,845

42.4%

14,936

12.9%

61,404

43,292

41.8%

15,014

12.3%

 Less: 

 

 

 

 

 

 

 

 

 

 

 Net raw material consumed

11,621

7,768

49.6%

10,156

14.4%

41,068

27,606

48.8%

10,209

13.8%

 Other expenses

1,593

1,240

28.5%

1,285

24.0%

5,529

4,965

11.4%

1,351

17.9%

 Personnel expenses

1,513

1,349

12.2%

1,428

6.0%

5,956

4,926

20.9%

1,471

2.9%

 Total expenditure

14,728

10,357

42.2%

12,869

14.4%

52,553

37,497

40.2%

13,032

13.0%

 EBITDA

2,138

1,488

43.7%

2,066

3.5%

8,851

5,795

52.7%

1,982

7.9%

 Less: Depreciation

337

309

8.9%

347

(3.1%)

1,340

1,255

6.8%

350

(3.9%)

 EBIT

1,802

1179

52.8%

1,719

4.8%

7,511

4,540

65.4%

1,632

10.4%

 Less: Interest paid

19

18

10.9%

48

(59.8%)

115

162

(28.9%)

30

(35.3%)

 Non-operating Income

1,001

549

82.4%

766

30.7%

2,875

3,346

(14.1%)

750

33.5%

 Extraordinary income

        -  

   1,324

NA

         -  

NA

1,324

356

272.2%

          -  

NA

 Profit before tax

2,641

3,034

(13.0%)

2,437

8.4%

11,595

8,080

43.5%

2,352

12.3%

 PBT excl. extraordinaries

2,784

1,710

62.8%

2,437

14.2%

10,271

7,724

33.0%

2,352

18.4%

 Less: Total tax

653

668

(2.3%)

545

19.6%

2,728

1,901

43.5%

576

13.2%

 Profit after tax 

1,988

2,366

(16.0%)

1,892

5.1%

8,867

6,179

43.5%

1,776

12.0%

 PAT excl. extraordinaries

2,131

1,307

63.0%

1,892

12.7%

7,808

5,894

32.5%

1,776

20.0%

 Other comprehensive income

(5)

(17)

 

83.0

 

(1)

(2)

 

 

 

 Total comprehensive income

1983

2,349

(15.6%)

1,975

0.4%

8,866

6,177

43.5%

1,776

0.0%

 Diluted shares outstanding (m)

277

277

 

277

 

277

277

 

277

 

 Reported EPS-diluted (Rs.)

7.17

8.54

(16.0%)

6.82

5.1%

31.99

22.29

43.5%

6.41

12.0%

 Proforma EPS diluted (Rs.)

7.69

4.72

63.0%

6.82

12.7%

28.17

21.26

32.5%

6.41

20.0%

 

 

 

 

 

 

 

 

 

 

 

 Margin Analysis

1QFY23

1QFY22

yoy bp chg

4QFY22

qoq bp chg

FY22

FY21

yoy bp chg

1QFY23E

 

 Raw material as % of total revenue

68.9%

65.6%

332

68.0%

90

66.9%

63.8%

312

68.0%

 

 Other expenses as % of total revenue

9.4%

10.5%

(102)

8.6%

84

9.0%

11.5%

(247)

9.0%

 

 Personnel expenses as % of total revenue

9.0%

11.4%

(242)

9.6%

(59)

9.7%

11.4%

(168)

9.8%

 

 EBITDA margin

12.7%

12.6%

12

13.8%

(116)

14.4%

13.4%

103

13.2%

 

 EBIT margin

10.7%

10.0%

73

11.5%

(83)

12.2%

10.5%

175

10.9%

 

 PBT margin (%)

15.7%

25.6%

(996)

16.3%

(66)

18.9%

18.7%

22

15.7%

 

 Proforma NPM

12.6%

11.0%

160

12.7%

(3)

12.7%

13.6%

(90)

11.8%

 

 Effective tax rate (%)

24.7%

22.0%

271

22.4%

233

23.5%

23.5%

0

24.5%

 
SOURCE: INCRED RESEARCH, COMPANY REPORTS

1QFY23 results analysis   

Sales at Rs16.8bn (+42% yoy, +13% qoq) were 12% above our estimate of Rs15bn (17% above consensus estimate).

EBITDA was at Rs2.1bn (+44% yoy, +4% qoq), 8% above our estimate of Rs1.98bn (7% above consensus estimate).

EBITDA margin at 12.7% (+12bp yoy, -116bp qoq) was below our estimate of 13.2% (below consensus estimate of 13.9%) due to gross margin pressure (-332bp yoy, -90bp qoq) and higher-than-estimated other expenses (+29% yoy, +24% qoq).

Other income was up 82% yoy at Rs1bn, above our estimate of Rs750m.

Core PBT at Rs2.8bn (+63% yoy) was 18% above our estimate aided by higher other income.

Tax rate stood at 24.7% vs. our expectation of 24.5% in 1QFY23.

Core PAT stood at Rs2.1bn (+63% yoy), 20% above our estimate of Rs1.8bn (18% above consensus estimate) led by higher sales and other income.


 

Figure 2: Domestic powergen segment’s sales rose by 5.3% qoq in 1QFY23
SOURCE: INCRED RESEARCH, COMPANY REPORTS
Figure 3: Exports grew 14.7% qoq in 1QFY23
SOURCE: INCRED RESEARCH, COMPANY REPORTS

 

Figure 4: Industrial segment’s sales rose 24% qoq in 1QFY23
SOURCE: INCRED RESEARCH, COMPANY REPORTS
Figure 5: Distribution business sales grew 12.7% qoq in 1QFY23
SOURCE: INCRED RESEARCH, COMPANY REPORTS

 

Figure 6: Gross margin fell by 332bp yoy and 90bp qoq in 1QFY23
SOURCE: INCRED RESEARCH, COMPANY REPORTS
Figure 7: EBITDA margin improved by 12bp yoy to 12.7% in 1QFY23 (down 116bp qoq)
SOURCE: INCRED RESEARCH, COMPANY REPORTS

 


 

Figure 8: Annual segment-wise analysis

Geographic revenue split (Rs m)

 FY14

 FY15

 FY16

 FY17

 FY18

 FY19

 FY20

 FY21

 FY22

 FY23F

 FY24F

 FY25F

 Domestic 

27,010

25,990

29,250

33,470

33,780

38,730

37,710

30,883

44,161

50,753

55,569

61,331

 Exports

11,980

17,220

16,630

16,110

15,740

16,520

12,910

11,530

16,100

19,019

20,734

22,432

 

 

 

 

 

 

 

 

 

 

 

 

 

 yoy growth (%)

 

 

 

 

 

 

 

 

 

 

 

 

 Domestic 

(16.6)

(3.8)

12.5

14.4

0.9

14.7

(2.6)

(18.1)

43.0

14.9

9.5

10.4

 Exports

(5.7)

43.7

(3.4)

(3.1)

(2.3)

5.0

(21.9)

(10.7)

39.6

18.1

9.0

8.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 Geographic revenue mix (%)

 

 

 

 

 

 

 

 

 

 

 

 

 Domestic 

69

60

64

68

68

70

74

73

73

73

73

73

 Exports

31

40

36

32

32

30

26

27

27

27

27

27

 

 

 

 

 

 

 

 

 

 

 

 

 

 Segment-wise revenue (Rs m)

 FY14

 FY15

 FY16

 FY17

 FY18

 FY19

 FY20

 FY21

 FY22

 FY23F

 FY24F

 FY25F

 Powergen-domestic

11,240

10,550

12,490

13,320

13,330

15,920

14,340

11,080

19,590

21,941

23,696

26,066

 Industrial

5,180

5,070

5,540

6,880

7,600

9,380

9,750

7,430

8,990

10,968

12,284

13,758

 Automotive

1,160

810

690

850

 

 

 

 

 

 

 

 

 Distribution business

9,910

9,840

10,680

11,740

12,430

13,450

13,440

12,020

14,840

17,066

18,773

20,650

 Exports

11,980

17,220

16,630

16,110

15,740

16,520

12,910

11,530

16,100

19,019

20,734

22,432

 Total revenues

38,990

43,210

45,880

49,580

49,520

55,250

50,620

42,413

60,261

69,772

76,303

83,764

 

 

 

 

 

 

 

 

 

 

 

 

 

 yoy growth ( %)

 FY14

 FY15

 FY16

 FY17

 FY18

 FY19

 FY20

 FY21

 FY22

 FY23F

 FY24F

 FY25F

 Powergen-domestic

(29.9)

(6.1)

18.4

6.6

0.1

19.4

(9.9)

(22.7)

76.8

12.0

8.0

10.0

 Industrial

0.8

(2.1)

9.3

24.2

10.5

23.4

3.9

(23.8)

21.0

22.0

12.0

12.0

 Automotive

(27.0)

(30.2)

(14.8)

23.2

 

 

 

 

 

 

 

 

 Distribution business

(1.4)

(0.7)

8.5

9.9

5.9

8.2

(0.1)

(10.6)

23.5

15.0

10.0

10.0

 Exports

(5.6)

43.7

(3.4)

(3.1)

(2.3)

5.0

(21.9)

(10.7)

39.6

18.1

9.0

8.2

 Total revenue

(13.5)

10.8

6.2

8.1

(0.1)

11.6

(8.4)

(16.2)

42.1

15.8

9.4

9.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 Segment-wise revenue mix (%)

 FY14

 FY15

 FY16

 FY17

 FY18

 FY19

 FY20

 FY21

 FY22

 FY23F

 FY24F

 FY25F

 Powergen-domestic

29

24

27

27

27

29

28

26

33

31

31

31

 Industrial

13

12

12

14

15

17

19

18

15

16

16

16

 Automotive

3

2

2

2

 

 

 

 

 

 

 

 

 Distribution business

25

23

23

24

25

24

27

28

25

24

25

25

 Exports

31

40

36

32

32

30

26

27

27

27

27

27

 Total revenue

100

100

100

100

100

100

100

100

100

100

100

100
SOURCE: INCRED RESEARCH, COMPANY REPORTS

 

Figure 9: Earnings revision summary

(Rs m)

Old estimates

New estimates

Change (%)

FY23F

FY24F

FY23F

FY24F

FY23F

FY24F

Revenue

68,903

75,462

70,973

77,615

3.0%

2.9%

EBITDA

10,542

11,998

10,433

12,574

-1.0%

4.8%

Core PAT

9,477

10,770

9,108

10,770

-3.9%

0.0%
SOURCE: INCRED RESEARCH, COMPANY REPORTS

 

Figure 10: SOTP-based target price

Segment

Basis

Multiple (x)

EBITDA/ PAT
(Rs m)

Value
(Rs m)

Stake (%)

Cummins' stake value (Rs m)

Value per share (Rs)

Core business

Long-term average EV/EBITDA

22xSept-24 EBITDA

13,316

3,35,958

100%

3,35,958

1,212

Valvoline

P/E in line with peers

10x FY24F EPS

1,649

16,490

50%

8,245

30

Cummins Generator Technologies

P/E multiple discount to standalone

10x FY24F EPS

509

5,091

49%

2,469

9

Cash

1x FY21 net cash

18,189

18,189

66

Investment property

0.8x FY21 BV

11,641

9,313

9,313

34

Total value per share

 

 

 

 

1,350
SOURCE: INCRED RESEARCH, COMPANY REPORTS

 

Figure 11: Cummins India’s current P/E above +1SD
SOURCE: INCRED RESEARCH, COMPANY REPORTS
Figure 12: Cummins India’s current EV/EBITDA trades above historical average
SOURCE: INCRED RESEARCH, COMPANY REPORTS

 

Figure 13: Peer comparison

Company

Bloomberg Ticker

Recom.

Price

Rs

TP

Rs

Mkt cap

(US$ m)

P/E (x)

P/BV (x)

EV/EBITDA (x)

Dividend Yield (%)

FY23F

FY24F

FY25F

FY23F

FY24F

FY25F

FY23F

FY24F

FY25F

FY23F

FY24F

FY25F

ABB India

ABB IN

Reduce

2,798

1,975

7,238

91

71

60

14.7

12.4

10.8

67

51

42

0.2

0.2

0.3

Bharat Heavy Electricals

BHEL IN

Reduce

53

38

2,266

-118

30

16

0.7

0.7

0.7

119

14

8

(0.4)

1.7

3.2

Cummins India

KKC IN

Add

1,238

1,350

4,134

38

32

29

6.5

5.9

5.3

32

26

23

1.5

1.5

1.5

Larsen & Toubro

LT IN

Add

1,750

1,900

32,273

24

20

18

3.2

2.9

2.6

16

14

12

1.1

1.1

1.2

Siemens India

SIEM IN

Hold

2,830

2,500

12,555

75

58

49

8.6

7.8

6.9

51

39

33

0.4

0.4

0.5

Thermax

TMX IN

Hold

2,124

2,165

3,093

53

39

32

6.3

5.6

4.9

36

27

21

0.5

0.6

0.6

Voltas

VOLT IN

Hold

992

1020

4,080

58

47

37

5.6

5.2

4.8

44

36

29

0.7

0.8

0.8

KEC International

KECI IN 

Add

392

500

1,306

26

13

9

2.6

2.2

1.9

13

8

6

0.8

1.5

2.2

Bharat Electronics

BHE IN 

Add

288

300

8,620

24

22

19

5.2

4.6

4.0

18

16

14

2.0

2.1

2.5

Bharat Dynamics

BDL IN 

Add

884

575

1,987

22

20

18

4.7

4.1

3.6

15

13

11

1.8

2.0

2.2

Hindustan Aeronautics

HNAL IN 

Add

2,264

2,025

9,063

17

16

14

3.4

3.0

2.6

10

9

7

1.8

1.9

2.2

SOURCE: INCRED RESEARCH, COMPANY REPORTS

 

BY THE NUMBERS

Profit & Loss
(Rs mn) Mar-21A Mar-22A Mar-23F Mar-24F Mar-25F
Total Net Revenues 43,292 61,404 70,973 77,615 85,200
Gross Profit 15,687 20,336 23,279 26,622 29,564
Operating EBITDA 5,795 8,851 10,433 12,573 14,058
Depreciation And Amortisation (1,255) (1,340) (1,422) (1,485) (1,548)
Operating EBIT 4,539 7,511 9,011 11,089 12,510
Financial Income/(Expense) (162) (115) (115) (115) (115)
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense) 3,702 2,875 3,306 3,463 3,705
Profit Before Tax (pre-EI) 8,079 10,271 12,202 14,437 16,100
Exceptional Items 1,324
Pre-tax Profit 8,079 11,594 12,202 14,437 16,100
Taxation (1,901) (2,728) (3,094) (3,667) (4,091)
Exceptional Income - post-tax
Profit After Tax 6,178 8,866 9,108 10,770 12,009
Minority Interests
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit 6,178 8,866 9,108 10,770 12,009
Recurring Net Profit 6,178 7,854 9,108 10,770 12,009
Fully Diluted Recurring Net Profit 6,178 7,854 9,108 10,770 12,009
Cash Flow
(Rs mn) Mar-21A Mar-22A Mar-23F Mar-24F Mar-25F
EBITDA 5,795 8,851 10,433 12,573 14,058
Cash Flow from Invt. & Assoc. 2,285 2,744 1,770 1,864 2,043
Change In Working Capital 1,028 (684) (3,589) (1,111) (1,269)
(Incr)/Decr in Total Provisions (15) (62)
Other Non-Cash (Income)/Expense 1,255 1,340 1,422 1,485 1,548
Other Operating Cashflow (1,595) (1,153) (3,191) (3,348) (3,590)
Net Interest (Paid)/Received (162) (115) (115) (115) (115)
Tax Paid (832) (2,543) (3,094) (3,667) (4,091)
Cashflow From Operations 7,759 8,378 3,635 7,680 8,583
Capex (778) (1,519) (1,500) (1,500) (1,500)
Disposals Of FAs/subsidiaries 22 1,747
Acq. Of Subsidiaries/investments
Other Investing Cashflow 1,295 (6,567) 3,306 3,463 3,705
Cash Flow From Investing 539 (6,339) 1,806 1,963 2,205
Debt Raised/(repaid) (4,697) 3,777
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid (3,881) (4,435) (4,990) (5,267) (5,267)
Preferred Dividends
Other Financing Cashflow (146) (116) (115) (115) (115)
Cash Flow From Financing (8,724) (774) (5,105) (5,382) (5,382)
Total Cash Generated (427) 1,265 336 4,262 5,406
Free Cashflow To Equity 3,600 5,816 5,441 9,643 10,788
Free Cashflow To Firm 8,459 2,154 5,556 9,758 10,903

BY THE NUMBERS…cont’d

Balance Sheet
(Rs mn) Mar-21A Mar-22A Mar-23F Mar-24F Mar-25F
Total Cash And Equivalents 10,483 16,346 16,797 21,174 26,695
Total Debtors 10,745 12,473 15,556 17,012 18,674
Inventories 5,578 7,288 8,750 9,569 10,504
Total Other Current Assets 3,343 3,143 3,633 3,973 4,361
Total Current Assets 30,149 39,250 44,736 51,728 60,235
Fixed Assets 23,128 22,652 22,730 22,746 22,698
Total Investments 3,692 6,149 6,149 6,149 6,149
Intangible Assets
Total Other Non-Current Assets
Total Non-current Assets 26,820 28,801 28,879 28,895 28,847
Short-term Debt
Current Portion of Long-Term Debt
Total Creditors 7,293 9,973 10,695 11,695 12,838
Other Current Liabilities 4,629 4,648 5,372 5,875 6,449
Total Current Liabilities 11,922 14,621 16,066 17,570 19,287
Total Long-term Debt 156 3,933 3,933 3,933 3,933
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities
Total Non-current Liabilities 156 3,933 3,933 3,933 3,933
Total Provisions 823 971 971 971 971
Total Liabilities 12,902 19,525 20,970 22,474 24,191
Shareholders Equity 44,068 48,527 52,645 58,148 64,891
Minority Interests
Total Equity 44,068 48,527 52,645 58,148 64,891
Key Ratios
(Rs mn) Mar-21A Mar-22A Mar-23F Mar-24F Mar-25F
Revenue Growth (15.9%) 41.6% 15.8% 9.4% 9.8%
Operating EBITDA Growth (1.2%) 52.7% 17.9% 20.5% 11.8%
Operating EBITDA Margin 13.6% 14.7% 15.0% 16.5% 16.8%
Net Cash Per Share (Rs) 37.25 44.78 46.41 62.20 82.11
BVPS (Rs) 158.97 175.06 189.92 209.77 234.09
Gross Interest Cover 28.07 65.31 78.36 96.42 108.78
Effective Tax Rate 23.5% 23.5% 25.4% 25.4% 25.4%
Net Dividend Payout Ratio 62.8% 58.8% 54.8% 48.9% 43.9%
Accounts Receivables Days 93.00 69.00 72.07 76.58 76.44
Inventory Days 74.75 57.18 61.37 65.56 65.85
Accounts Payables Days (94.25) (76.73) (79.08) (80.13) (80.48)
ROIC (%) 11.5% 18.1% 19.4% 23.1% 25.4%
ROCE (%) 9.8% 15.3% 16.2% 18.4% 18.8%
Return On Average Assets 10.8% 12.2% 13.0% 14.1% 14.3%
Key Drivers
(Rs mn) Mar-21A Mar-22A Mar-23F Mar-24F Mar-25F
Segmental Revenues (Rs m) N/A N/A N/A N/A N/A
Powergen 11,080 19,590 21,941 23,696 26,066
Industrial 7,430 8,990 10,968 12,284 13,758
Auto N/A N/A N/A N/A N/A
Distribution 12,020 14,840 17,066 18,773 20,650
Domestic 30,883 44,161 50,753 55,569 61,331
Exports 11,530 16,100 19,019 20,734 22,432
Revenue growth N/A N/A N/A N/A N/A
Powergen (23) 77 12 8 10
SOURCES: INCRED RESEARCH, COMPANY REPORTS

DISCLAIMER

 

This report (including the views and opinions expressed therein, and the information comprised therein) has been prepared by Incred Research Services Private Ltd.(formerly known as Earnest Innovation Partners Private Limited) (hereinafter referred to as “IRSPL”). IRSPL is registered with SEBI as a Research Analyst vide Registration No. INH000007793. Pursuant to a trademark agreement, IRSPL has adopted “Incred Equities” as its trademark for use in this report.

The term “IRSPL” shall, unless the context otherwise requires, mean IRSPL and its affiliates, subsidiaries and related companies. 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 use would be contrary to law, regulation or which would subject IRSPL and its affiliates/group companies to registration or licensing requirements within such jurisdictions.

This report is being supplied to you strictly on the basis that it will remain confidential. No part of this report may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means; or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of IRSPL.

The information contained in this report is prepared from data believed to be correct and reliable at the time of issue of this report.

IRSPL is not required to issue regular reports on the subject matter of this report at any frequency and it may cease to do so or change the periodicity of reports at any time. IRSPL is not under any obligation to update this report in the event of a material change to the information contained in this report. IRSPL has not any and will not accept any, obligation to (i) check or ensure that the contents of this report remain current, reliable or relevant; (ii) ensure that the content of this report constitutes all the information a prospective investor may require; (iii) ensure the adequacy, accuracy, completeness, reliability or fairness of any views, opinions and information, and accordingly, IRSPL and its affiliates/group companies (and their respective directors, associates, connected persons and/or employees) shall not be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.

Unless otherwise specified, this report is based upon reasonable sources. Such sources will, unless otherwise specified, for market data, be market data and prices available from the main stock exchange or market where the relevant security is listed, or, where appropriate, any other market. Information on the accounts and business of company(ies) will generally be based on published statements of the company(ies), information disseminated by regulatory information services, other publicly available information and information resulting from our research. Whilst every effort is made to ensure that statements of facts made in this report are accurate, all estimates, projections, forecasts, expressions of opinion and other subjective judgments contained in this report are based on assumptions considered to be reasonable as of the date of the document in which they are contained and must not be construed as a representation that the matters referred to therein will occur. Past performance is not a reliable indicator of future performance. The value of investments may go down as well as up and those investing may, depending on the investments in question, lose more than the initial investment. No report shall constitute an offer or an invitation by or on behalf of IRSPL and its affiliates/group companies to any person to buy or sell any investments.

The opinions expressed are based on information which are believed to be accurate and complete and obtained through reliable public or other non-confidential sources at the time made. (Information barriers and other arrangements may be established where necessary to prevent conflicts of interests arising. However, the analyst(s) may receive compensation that is based on his/their coverage of company(ies) in the performance of his/their duties or the performance of his/their recommendations. In reviewing this report, an investor should be aware that any or all of the foregoing, among other things, may give rise to real or potential conflicts of interest. Additional information is, subject to the duties of confidentiality, available on request.

The report is not a “prospectus” as defined under Indian Law, including the Companies Act, 2013, and is not, and shall not be, approved by, or filed or registered with, any Indian regulator, including any Registrar of Companies in India, SEBI, any Indian stock exchange, or the Reserve Bank of India. No offer, or invitation to offer, or solicitation of subscription with respect to any such securities listed or proposed to be listed in India is being made, or intended to be made, to the public, or to any member or section of the public in India, through or pursuant to this report.

The research analysts, strategists or economists principally responsible for the preparation of this research report are segregated from the other activities of IRSPL. Information barriers and other arrangements have been established, as required, to prevent any conflicts of interests.

The research analysts, strategists or economists principally responsible for the preparation of this research report are segregated from the other activities of IRSPL. Information barriers and other arrangements have been established, as required, to prevent any conflicts of interests.

IRSPL may have issued other reports (based on technical analysis, event specific, short term views etc.) that are inconsistent with and reach different conclusion from the information presented in this report.

Holding of Analysts/Relatives of Analysts, IRSPL and Associates of IRSPL in the covered securities, as on the date of publishing of this report

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Analyst/

Analyst/

Relative

Entity/

Entity/

Associates

any financial interests in the company covered in this report (subject company) and nature of such financial interest

NO

NO

actual/beneficial ownership of 1% or more in securities of the subject company at the end of the month immediately preceding the date of publication of the research report

actual/beneficial ownership of 1% or more in securities of the subject company at the end of the month immediately preceding the date of publication of the research report

or date of the public appearance;

NO

NO

any other material conflict of interest at the time of publication of the research report

any other material conflict of interest at the time of publication of the research report

or at the time of public appearance

NO

NO

received any compensation from the subject company in the past twelve months

received any compensation from the subject company in the past twelve months

for investment banking or merchant banking or brokerage services or investment advisory or depository or distribution from the subject company in the last twelve months for products/services other than investment banking or merchant banking or broker- age services or investment advisory or depository or distribution from the subject company in the last twelve months

NO

NO

managed or co-managed public offering of securities for the subject company in the last twelve months

NO

NO

received any compensation or other benefits from the subject company or third party in connection with the research report

NO

NO

served as an officer, director or employee of the subject company

NO

NO

been engaged in market making activity for the subject company

NO

NO

Analyst declaration

·         The analyst responsible for the production of this report hereby certifies that the views expressed herein accurately and exclusively reflect his or her personal views and opinions about any and all of the issuers or securities analysed in this report and were prepared independently and autonomously in an unbiased manner.

·         No part of the compensation of the analyst(s) was, is, or will be directly or indirectly related to the inclusion of specific recommendations(s) or view(s) in this report or based any specific investment banking transaction.

·         The analyst(s) has(have) not had any serious disciplinary action taken against him/her(them).

·         The analyst, strategist, or economist does not have any material conflict of interest at the time of publication of this report.

·         The analyst(s) has(have) received compensation based upon various factors, including quality, accuracy and value of research, overall firm performance, client feedback and competitive factors.

This report (including the views and opinions expressed therein, and the information comprised therein) has been prepared by Incred Research Services Private Ltd.(formerly known as Earnest Innovation Partners Private Limited) (hereinafter referred to as “IRSPL”). IRSPL is registered with SEBI as a Research Analyst vide Registration No. INH000007793. Pursuant to a trademark agreement, IRSPL has adopted “Incred Equities” as its trademark for use in this report.

The term “IRSPL” shall, unless the context otherwise requires, mean IRSPL and its affiliates, subsidiaries and related companies. 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 use would be contrary to law, regulation or which would subject IRSPL and its affiliates/group companies to registration or licensing requirements within such jurisdictions.

This report is being supplied to you strictly on the basis that it will remain confidential. No part of this report may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means; or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of IRSPL.

The information contained in this report is prepared from data believed to be correct and reliable at the time of issue of this report.

IRSPL is not required to issue regular reports on the subject matter of this report at any frequency and it may cease to do so or change the periodicity of reports at any time. IRSPL is not under any obligation to update this report in the event of a material change to the information contained in this report. IRSPL has not any and will not accept any, obligation to (i) check or ensure that the contents of this report remain current, reliable or relevant; (ii) ensure that the content of this report constitutes all the information a prospective investor may require; (iii) ensure the adequacy, accuracy, completeness, reliability or fairness of any views, opinions and information, and accordingly, IRSPL and its affiliates/group companies (and their respective directors, associates, connected persons and/or employees) shall not be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.

Unless otherwise specified, this report is based upon reasonable sources. Such sources will, unless otherwise specified, for market data, be market data and prices available from the main stock exchange or market where the relevant security is listed, or, where appropriate, any other market. Information on the accounts and business of company(ies) will generally be based on published statements of the company(ies), information disseminated by regulatory information services, other publicly available information and information resulting from our research. Whilst every effort is made to ensure that statements of facts made in this report are accurate, all estimates, projections, forecasts, expressions of opinion and other subjective judgments contained in this report are based on assumptions considered to be reasonable as of the date of the document in which they are contained and must not be construed as a representation that the matters referred to therein will occur. Past performance is not a reliable indicator of future performance. The value of investments may go down as well as up and those investing may, depending on the investments in question, lose more than the initial investment. No report shall constitute an offer or an invitation by or on behalf of IRSPL and its affiliates/group companies to any person to buy or sell any investments.

The opinions expressed are based on information which are believed to be accurate and complete and obtained through reliable public or other non-confidential sources at the time made. (Information barriers and other arrangements may be established where necessary to prevent conflicts of interests arising. However, the analyst(s) may receive compensation that is based on his/their coverage of company(ies) in the performance of his/their duties or the performance of his/their recommendations. In reviewing this report, an investor should be aware that any or all of the foregoing, among other things, may give rise to real or potential conflicts of interest. Additional information is, subject to the duties of confidentiality, available on request.

The report is not a “prospectus” as defined under Indian Law, including the Companies Act, 2013, and is not, and shall not be, approved by, or filed or registered with, any Indian regulator, including any Registrar of Companies in India, SEBI, any Indian stock exchange, or the Reserve Bank of India. No offer, or invitation to offer, or solicitation of subscription with respect to any such securities listed or proposed to be listed in India is being made, or intended to be made, to the public, or to any member or section of the public in India, through or pursuant to this report.

The research analysts, strategists or economists principally responsible for the preparation of this research report are segregated from the other activities of IRSPL. Information barriers and other arrangements have been established, as required, to prevent any conflicts of interests.

The research analysts, strategists or economists principally responsible for the preparation of this research report are segregated from the other activities of IRSPL. Information barriers and other arrangements have been established, as required, to prevent any conflicts of interests.

IRSPL may have issued other reports (based on technical analysis, event specific, short term views etc.) that are inconsistent with and reach different conclusion from the information presented in this report.

Holding of Analysts/Relatives of Analysts, IRSPL and Associates of IRSPL in the covered securities, as on the date of publishing of this report

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Analyst/

Relative

Entity/

Associates

any financial interests in the company covered in this report (subject company) and nature of such financial interest

NO

NO

actual/beneficial ownership of 1% or more in securities of the subject company at the end of the month immediately preceding the date of publication of the research report

or date of the public appearance;

NO

NO

any other material conflict of interest at the time of publication of the research report

or at the time of public appearance

NO

NO

received any compensation from the subject company in the past twelve months

for investment banking or merchant banking or brokerage services or investment advisory or depository or distribution from the subject company in the last twelve months for products/services other than investment banking or merchant banking or broker- age services or investment advisory or depository or distribution from the subject company in the last twelve months

NO

NO

managed or co-managed public offering of securities for the subject company in the last twelve months

NO

NO

received any compensation or other benefits from the subject company or third party in connection with the research report

NO

NO

served as an officer, director or employee of the subject company

NO

NO

been engaged in market making activity for the subject company

NO

NO

Analyst declaration

·         The analyst responsible for the production of this report hereby certifies that the views expressed herein accurately and exclusively reflect his or her personal views and opinions about any and all of the issuers or securities analysed in this report and were prepared independently and autonomously in an unbiased manner.

·         No part of the compensation of the analyst(s) was, is, or will be directly or indirectly related to the inclusion of specific recommendations(s) or view(s) in this report or based any specific investment banking transaction.

·         The analyst(s) has(have) not had any serious disciplinary action taken against him/her(them).

·         The analyst, strategist, or economist does not have any material conflict of interest at the time of publication of this report.

·         The analyst(s) has(have) received compensation based upon various factors, including quality, accuracy and value of research, overall firm performance, client feedback and competitive factors.

 

IRSPL and/or its affiliates and/or its Directors/employees may own or have positions in securities of the company(ies) covered in this report or any securities related thereto and may from time to time add to or dispose of, or may be materially interested in, any such securities.

IRSPL and/or its affiliates and/or its Directors/employees may own or have positions in securities of the company(ies) covered in this report or any securities related thereto and may from time to time add to or dispose of, or may be materially interested in, any such securities.

IRSPL and/or its affiliates and/or its Directors/employees may do and seek to do business with the company(ies) covered in this research report and may from time to time (a) buy/sell the securities covered in this report, from time to time and/or (b) act as market maker or have assumed an underwriting commitment in securities of such company(ies), and/or (c) may sell them to or buy them from customers on a principal basis and/or (d) may also perform or seek to perform significant investment banking, advisory, underwriting or placement services for or relating to such company(ies) and/or (e) solicit such investment, advisory or other services from any entity mentioned in thisreport and/or (f) act as a lender/borrower to such company and may earn brokerage or other compensation. However, Analysts are forbidden to acquire, on their own account or hold securities (physical or uncertificated, including derivatives) of companies in respect of which they are compiling and producing financial recommendations or in the result of which they play a key part.

 

 

DISCLAIMER

This report (including the views and opinions expressed therein, and the information comprised therein) has been prepared by Incred Research Services Private Ltd.(formerly known as Earnest Innovation Partners Private Limited) (hereinafter referred to as “ IRSPL”). IRSPL is registered with SEBI as a Research Analyst vide Registration No. INH000007793. Pursuant to a trademark agreement, IRSPL has adopted “Incred Equities ” as its trademark for use in this report.

The term “IRSPL” shall, unless the context otherwise requires, mean IRSPL and its affiliates, subsidiaries and related companies. 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 use would be contrary to law, regulation or which would subject IRSPL and its affiliates/group companies to registration or licensing requirements within such jurisdictions.

This report is being supplied to you strictly on the basis that it will remain confidential. No part of this report may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means; or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of IRSPL.

The information contained in this report is prepared from data believed to be correct and reliable at the time of issue of this report.

IRSPL is not required to issue regular reports on the subject matter of this report at any frequency and it may cease to do so or change the periodicity of reports at any time. IRSPL is not under any obligation to update this report in the event of a material change to the information contained in this report. IRSPL has not any and will not accept any, obligation to (i) check or ensure that the contents of this report remain current, reliable or relevant; (ii) ensure that the content of this report constitutes all the information a prospective investor may require; (iii) ensure the adequacy, accuracy, completeness, reliability or fairness of any views, opinions and information, and accordingly, IRSPL and its affiliates/group companies (and their respective directors, associates, connected persons and/or employees) shall not be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.

Unless otherwise specified, this report is based upon reasonable sources. Such sources will, unless otherwise specified, for market data, be market data and prices available from the main stock exchange or market where the relevant security is listed, or, where appropriate, any other market. Information on the accounts and business of company(ies) will generally be based on published statements of the company(ies), information disseminated by regulatory information services, other publicly available information and information resulting from our research. Whilst every effort is made to ensure that statements of facts made in this report are accurate, all estimates, projections, forecasts, expressions of opinion and other subjective judgments contained in this report are based on assumptions considered to be reasonable as of the date of the document in which they are contained and must not be construed as a representation that the matters referred to therein will occur. Past performance is not a reliable indicator of future performance. The value of investments may go down as well as up and those investing may, depending on the investments in question, lose more than the initial investment. No report shall constitute an offer or an invitation by or on behalf of IRSPL and its affiliates/group companies to any person to buy or sell any investments.

The opinions expressed are based on information which are believed to be accurate and complete and obtained through reliable public or other non-confidential sources at the time made. (Information barriers and other arrangements may be established where necessary to prevent conflicts of interests arising. However, the analyst(s) may receive compensation that is based on his/their coverage of company(ies) in the performance of his/their duties or the performance of his/their recommendations. In reviewing this report, an investor should be aware that any or all of the foregoing, among other things, may give rise to real or potential conflicts of interest. Additional information is, subject to the duties of confidentiality, available on request.

The report is not a “prospectus” as defined under Indian Law, including the Companies Act, 2013, and is not, and shall not be, approved by, or filed or registered with, any Indian regulator, including any Registrar of Companies in India, SEBI, any Indian stock exchange, or the Reserve Bank of India. No offer, or invitation to offer, or solicitation of subscription with respect to any such securities listed or proposed to be listed in India is being made, or intended to be made, to the public, or to any member or section of the public in India, through or pursuant to this report.

The research analysts, strategists or economists principally responsible for the preparation of this research report are segregated from the other activities of IRSPL. Information barriers and other arrangements have been established, as required, to prevent any conflicts of interests.

The research analysts, strategists or economists principally responsible for the preparation of this research report are segregated from the other activities of IRSPL. Information barriers and other arrangements have been established, as required, to prevent any conflicts of interests.

IRSPL may have issued other reports (based on technical analysis, event specific, short term views etc.) that are inconsistent with and reach different conclusion from the information presented in this report.

Holding of Analysts/Relatives of Analysts, IRSPL and Associates of IRSPL in the covered securities, as on the date of publishing of this report

Analyst/ Relative Entity/ Associates
any financial interests in the company covered in this report (subject company) and nature of such financial interest NO NO
actual/beneficial ownership of 1% or more in securities of the subject company at the end of the month immediately preceding the date of publication of the research report or date of the public appearance; NO NO
any other material conflict of interest at the time of publication of the research report or at the time of public appearance NO NO
received any compensation from the subject company in the past twelve months for investment banking or merchant banking or brokerage services or investment advisory or depository or distribution from the subject company in the last twelve months for products/services other than investment banking or merchant banking or broker- age services or investment advisory or depository or distribution from the subject company in the last twelve months NO NO
managed or co-managed public offering of securities for the subject company in the last twelve months NO NO
received any compensation or other benefits from the subject company or third party in connection with the research report NO NO
served as an officer, director or employee of the subject company NO NO
been engaged in market making activity for the subject company NO NO
Analyst declaration
  • The analyst responsible for the production of this report hereby certifies that the views expressed herein accurately and exclusively reflect his or her personal views and opinions about any and all of the issuers or securities analysed in this report and were prepared independently and autonomously in an unbiased manner.
  • No part of the compensation of the analyst(s) was, is, or will be directly or indirectly related to the inclusion of specific recommendations(s) or view(s) in this report or based any specific investment banking transaction.
  • The analyst(s) has(have) not had any serious disciplinary action taken against him/her(them). • The analyst, strategist, or economist does not have any material conflict of interest at the time of
  • publication of this report.
  • The analyst(s) has(have) received compensation based upon various factors, including quality, accuracy and value of research, overall firm performance, client feedback and competitive factors.

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