INSTITUTIONAL EQUITY RESEARCH

Bajaj Finance (BAF IN)

Credit cost to remain overhang in 2H
23 October 2024
INDIA | NBFC | Quarterly Update
Bajaj Finance (BAF) reported 29% YoY AUM growth in Q2FY25. With NII growing (+23% YoY)
faster than opex (+21% YoY), operating profit rose 25% to c.Rs 73.1bn. Dampener for the
BUY (Maintain)
quarter were elevated loan losses. In our view, BAF is well capitalised and has enough liquidity CMP RS 6,678
to weather any event risk. TARGET RS 10,000 (+50%)
SEBI CATEGORY: LARGE CAP
Takeaways from 2QFY25
• Loan growth on steady footing: AUM grew at 29% YoY to Rs 3.74tn largely owing to COMPANY DATA
strong loan volumes across segments. Loan growth was similar vs. 1Q largely driven by O/S SHARES (MN) : 619
mortgage and consumer (B2C) business. This marks the twelfth quarter of 25%+ loan MARKET CAP (RSBN) : 4,134
MARKET CAP (USDBN) : 49.2
growth, since covid-hit slowdown. 52 - WK HI/LO (RS) : 7,885 / 6,188
• Positive jaws led to growth in operating profit: Calculated spreads decreased (10bps) LIQUIDITY 3M (USDMN) : 106
PAR VALUE (RS) : 2
sequentially at 11.1%, driving NII increase of 23% YoY to Rs 88.4bn. With granular fee
income growth (+34% YoY), total income grew more (+24% YoY) with opex (+21% YoY), SHARE HOLDING PATTERN, %
leading to 25% YoY growth in operating profit to Rs 73.1bn. We expect NII to largely flow Sep 24 Jun 24 Mar 24
into operating profit with non-interest income largely offsetting opex. PROMOTERS : 54.7 54.7 54.7
• Well capitalised to absorb risks to asset quality: Despite sharp increase (+77% YoY) in DII : 15.1 14.3 14.4
FII : 21.5 21.8 21.3
provisions, net profit increased by 13% YoY to Rs 40.1bn. The company remains well OTHERS : 8.7 9.2 9.6
capitalised (20.9% tier-1 ratio) and has strong liquidity (Rs 202bn) to absorb asset quality
concerns. KEY FINANCIALS
Outlook and valuation: Bajaj Finance has seen multiple cycles and come out with lower than Rs bn FY25E FY26E FY27E
expected credit costs through each. A diversified funding base, AAA rating, positive ALM in Net Profit 161 212 271
less than one-year bucket and a high churn book make it a compelling investment argument. % growth 11.2 32.2 27.8
The hallmark of any credit business is credit cost and risk management. The collection EPS (Rs) 259 343 438
BVPS (Rs) 1,460 1,751 2,124
architecture of BAF is very granular and efficient. We remain confident of growth being 30%+
ROE (%) 19.2 21.4 22.6
in FY25/FY26/FY27. New tech initiatives being launched keep us enthused of new vectors of
ROA (%) 3.8 4.0 4.0
customer stickiness and growth. The stock trades at 3.5x Sept-26E BV for a FY26E RoE of
P/E (x) 25.7 19.5 15.2
21.4%. Maintain BUY and our TP of Rs 10,000. We maintain our estimates for FY25/26/27
P/BV (x) 4.6 3.8 3.1
estimates.
Concall takeaways CHANGE IN ESTIMATES
• Elevated credit cost: Credit cost in Q2 was elevated primarily due to muted collection __Revised Est.__ _% Change,__
efficiencies. In Q2, stage 2 assets have reduced by Rs 3.6bn and stage 3 assets have Rs bn FY25E FY26E FY25E FY26E
increased by Rs 9bn. Net increase in stage 2 & 3 assets was Rs 5.4bn. This increase was Net Income 457 597 0 0
across all retail and SME lines of businesses. Company continues to take risk actions by Opg Profits 300 396 0 0
cutting segments and pruning exposures. PAT 161 212 0 0
• Path to become a non-captive financier by FY27: Over the last 2 years, the company has RoE (%) 19.2 21.4 0 0
already grown its non-Bajaj Auto 2W financing business to 35K accounts per month. The
company expects to disburse 480K non- Bajaj Auto 2W loans in FY25 and 720K loans in
Shubhranshu Mishra, Research Analyst
FY26. Non- Bajaj Auto 2W financing is a large opportunity and the company is evaluating [email protected]
its strategy for 3W business.
• FY25 guidance: The company guided for 26-28% growth and 2.05% (vs. earlier 1.75%-
1.85%) of credit cost in FY25, driven by new secured businesses launched in FY24. The
company has guided for a 10-15bps of NIM expansion in 2HFY25, driven by 15-20bps
decrease in CoF.

Rs mn Q2FY25 Q1FY25 QoQ (%) Q2FY24 YoY (%) vs. exp. % Comments
Net Income 1,09,461 1,04,185 5 88,447 24 -1 Spread largely in-line
Operating Expenses 36,390 34,709 5 30,100 21 -2 Lower employee expense
Operating Profit 73,071 69,475 5 58,347 25 -0
Provisions and Cont. 19,091 16,847 13 10,771 77 0 In-line provisions
Profit before Tax 53,980 52,628 3 47,576 13 -0
Tax Provisions 13,877 13,534 3 12,070 15 -0 In-line tax rate
Net Profit 40,103 39,095 3 35,507 13 -0

Page | 1 | PHILLIPCAPITAL INDIA RESEARCH

DISCLAIMER FOR U.S. BASED INVESTORS. The Agent of PhillipCapital (India) Pvt. Ltd. in the United States is Marco Polo Securities Inc, a non-affiliated broker-dealer registered with the US Securities and
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accordance with the Services Agreement entered into between PhillipCapital (India) Pvt. Ltd. and Marco Polo Securities Inc with respect thereto. Contact at Marco Polo Securities is
[email protected] ; 1-347-745-6448. Powered by EQUITEC
 0
5
10
15
20
25
30
35
40
0
4
8
12
16
20
-
1,000
1,500
2,000
2,500
3,000
4,000
3,500

500
Q3FY21 32.3 4.0
Q3FY22

17.3
Q4FY21 34.5 4.3 Q3FY21 1,436 -1
Q1FY22 29.9 3.5 Q4FY22 Q4FY21 1,529 4
Q2FY22 38.0 5.0 Q1FY23 Q1FY22 1,591 15
Q3FY22 34.7 4.8 Q2FY22 1,669 22
Q2FY23

16.1 16.3 16.6

Q4FY22 34.6 4.4 Q3FY22 1,813 26

Stable sequential spreads

Source: PhillipCapital India Research

Source: PhillipCapital India Research

Source: PhillipCapital India Research

Q1FY23 35.9 4.7 Q3FY23 Q4FY22 1,975 29

Cost-Income ratio (%)

Q1FY23 2,040 28

Yield on loans (%)

AUM growth remains strong…

Q2FY23 35.9 4.8

AUM (Rs bn)

Q4FY23
Q3FY23 34.7 4.6 Q2FY23 2,184 31
Q4FY23 34.1 4.4 Q1FY24 Q3FY23 2,308 27

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Q1FY24 34.0 4.4 Q4FY23 2,474 25
Q2FY24
Q1FY24 2,701 32
Q2FY24 34.0 4.3
Q3FY24 Q2FY24 2,903 33

6.8 6.4 6.3 6.7 7.0 6.9 7.2 7.3 7.4

Q3FY24 33.9 4.2

Declining expense ratio since last few quarters

Q3FY24 3,110 35
YoY (%, RHS)

Q4FY24 34.0 4.1 Q4FY24

Q4FY24 3,306 34
Q1FY25 33.3 4.1

Cost of funds (%)

Q1FY25 Q1FY25 3,542 31
Q2FY25 33.2 4.0

Expense ratio (%, RHS)

Q2FY25 3,739 29
Q2FY25

7.6 7.6 7.6

16.9 16.8 17.1 17.0 16.9 16.7 16.6 16.7

0
1
3
4
5
6

2
-
10
20
30
40

(10)

0
5
10
15
20
25
30
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
0
2
4
6
8
10

Q3FY21 28.2 24.7 Q3FY21 0.6 0.2 Q3FY21 6.0 -21

Q4FY21 28.3 25.1 Q4FY21 1.8 0.8 Q4FY21 5.5 -9
Q1FY22 28.6 25.4 Q1FY22 3.0 1.5 Q1FY22 4.6 165
Q2FY22 27.7 24.9 Q2FY22 2.5 1.1 Q2FY22 6.3 74
Q3FY22 27.0 24.4 Q3FY22 1.7 0.8 Q3FY22 7.4 23
Q4FY22 27.2 24.8 Q4FY22 1.6 0.7 Q4FY22 6.3 15

Source: PhillipCapital India Research

Source: PhillipCapital India Research
Mild uptick in asset quality

CAR (%)
Q1FY23 26.2 23.8
GNPA (%)

Q1FY23 1.3 0.5 Q1FY23 7.4 60

Source: PhillipCapital India Research

Capital burn due to write-offs

Q2FY23 25.1 23.1 1.2
Q2FY23 Q2FY23 6.8 7
Q3FY23 25.1 23.3 Q3FY23 1.1 0.4
0.4 Q3FY23 7.8 6
Loans disbursed (mn)

Q4FY23 25.0 23.2 Q4FY23 0.9 0.3

…with loans disbursed coming back

Q4FY23 7.6 20
BAJAJ FINANCE QUARTERLY UPDATE

Q1FY24 24.6 23.0 Q1FY24 0.9 0.3 Q1FY24 9.9 34

Q2FY24 23.2 21.9 Q2FY24 0.9 0.3 Q2FY24 8.5 26
Q3FY24 23.9 22.8 Q3FY24 1.0 0.4

Tier 1 (%, RHS)

Q3FY24 9.9 26
NNPA (%, RHS)

Q4FY24 22.5 21.5 Q4FY24 0.9 0.4 Q4FY24 7.9 4

Q1FY25 21.7 20.7 Q1FY25 0.9 0.4 Q1FY25 10
YoY (%, RHS)

Q2FY25 21.7 20.9 Q2FY25 1.1 0.5 11.0

Q2FY25 9.7 14

0
5
-

10
15
20
25
30
0.0
0.2
0.4
0.6
0.8
1.2
1.4
1.6

1.0
50
100
150
200

(50)
 BAJAJ FINANCE QUARTERLY UPDATE

Strong return ratios PAT growth slow down due to higher credit cost
RoE (%) RoA (%, RHS) PAT (Rs bn) YoY (%, RHS)

5.4
5.4

5.4
5.3

5.3
5.2
5.2
30 6.0

5.2
45 160

4.9
134

4.8
4.6
4.5
25 5.0 40
35 120
3.6
3.6

3.6

85 80 88
20 4.0 30
2.8

53 80
15 3.0 25
42 40
20 31 32 28
15 22 21 40
10 2.0 14 13
15
5 1.0 10 0

22.0

19.9
13.2
14.8
10.8
15.2
21.2
22.8
23.1
23.6
23.9
23.5
24.5
24.1

20.5

19.1
-29

Q3FY… 11.5
Q4FY… 13.5
Q1FY… 11.1
Q2FY… 14.8
Q3FY… 21.3
Q4FY… 24.2
Q1FY… 26.0
Q2FY… 27.8
Q3FY… 29.7
Q4FY… 31.6
Q1FY… 34.4
Q2FY… 35.5
Q3FY… 36.4
Q4FY… 38.2
Q1FY… 39.1
Q2FY… 40.1
5
0 Q3FY24 0.0 0 -40

Q1FY25
Q3FY21
Q4FY21
Q1FY22
Q2FY22
Q3FY22
Q4FY22
Q1FY23
Q2FY23
Q3FY23
Q4FY23
Q1FY24
Q2FY24

Q4FY24

Source: PhillipCapital India Research Q2FY25 Source: PhillipCapital India Research

Maintain FY25/26/27 estimates

Rs bn Old Est. New Est. % Change
FY25 FY26 FY27 FY25 FY26 FY27 FY25 FY26 FY27
Net Income 457 597 763 457 597 763 0 0 0
Operating Expenses 157 201 258 157 201 258 0 0 0
Operating Profits 300 396 506 300 396 506 0 0 0
Provisions 84 110 140 84 110 140 0 0 0
PBT 216 286 365 216 286 365 0 0 0
Tax 56 73 94 56 73 94 0 0 0
PAT 161 212 271 161 212 271 0 0 0
Loans 4,312 5,498 7,055 4,312 5,498 7,055 0 0 0
Borrowings 3,881 4,893 6,244 3,881 4,893 6,244 0 0 0
RoA (%) 3.7 3.9 4.0 3.7 3.9 4.0 0 0 0
RoE (%) 19.2 21.4 22.6 19.2 21.4 22.6 0 0 0
AUM 4,445 5,668 7,273 4,445 5,668 7,273 0 0 0
Source: PhillipCapital India Research

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 BAJAJ FINANCE QUARTERLY UPDATE

Detailed quarterly numbers

FY24 FY25 Variation (%)
1Q 2Q 3Q 4Q 1Q 2Q QoQ YoY
Profit and Loss (Rs mn)
Total Income 1,24,978 1,33,7831,41,6111,49,262 1,60,987 1,70,903 6 28
Interest Expenses 41,025 45,371 48,680 52,171 56,839 61,493 8 36
Net Income 83,953 88,412 92,931 97,091 1,04,148 1,09,410 5 24
Other Income 27 35 49 58 36 51 41 47
Operating Expenses 28,544 30,100 31,557 33,028 34,709 36,390 5 21
Employee 14,970 15,875 16,618 16,497 17,748 18,348 3 16
Others 13,574 14,225 14,940 16,531 16,962 18,041 6 27
Operating Profits 55,437 58,347 61,422 64,121 69,475 73,071 5 25
Provisions 9,953 10,771 12,484 13,100 16,847 19,091 13 77
PBT 45,484 47,576 48,939 51,021 52,628 53,980 3 13
Taxes 11,143 12,070 12,566 12,806 13,534 13,877 3 15
Reported PAT 34,341 35,507 36,373 38,215 39,095 40,103 3 13

Asset Quality
GNPA (Rs mn) 23,081 26,003 29,107 27,735 30,072 38,954 30 50
NNPA (Rs mn) 8,224 8,858 11,336 12,073 13,288 16,905 27 91
GNPA (%) 0.9 0.9 1.0 0.9 0.9 1.1 20 15
NNPA (%) 0.3 0.3 0.4 0.4 0.4 0.5 8 15
PCR (%) 65.0 66.0 62.0 57.0 56.0 57.0 100 -900 bps
Ratios (%)
Cost to Income 34.0 34.0 33.9 34.0 33.3 33.2 -7 bps -79 bps
Tax Rate 24.5 25.4 25.7 25.1 25.7 25.7 -1 bps 34
CAR 24.6 23.2 23.9 22.5 21.7 21.7 4 -150 bps
Tier I 23.0 21.9 22.8 21.5 20.7 20.9 17 -98 bps
RoA 5.4 5.2 4.9 4.8 4.6 4.5 -10 bps -66 bps
RoE 24.5 24.1 22.0 20.5 19.9 19.1 -80 bps -500 bps
Key Details (Rs bn)
AUM 2,701 2,903 3,110 3,306 3,542 3,739 6 29
On book Loans 2,653 2,857 3,064 3,263 3,497 3,675 5 29
Off book Loans 48 45 46 43 45 64 43 42
AUM Mix (%)
Consumer Finance 34 34 34 33 33 33 -40 bps -67 bps
SME Business 13 12 13 12 12 12 35 0
Commercial 13 13 13 13 13 13 -5 bps 24
Rural 10 9 9 9 9 9 -10 bps -38 bps
Mortgages 31 31 31 31 31 31 1 -35 bps
Source: PhillipCapital India Research, Company Data

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 BAJAJ FINANCE QUARTERLY UPDATE

Financials
Profit and loss Balance Sheet
Y/E Mar, Rs bn FY24 FY25E FY26E FY27E Y/E Mar, Rs bn FY24 FY25E FY26E FY27E
Net interest income 296 367 476 599 Equity 1 1 1 1
Other income 66.8 90.1 121.7 164.2 Reserves 766 902 1,083 1,313
Net Income 363 457 597 763 Net worth 767 903 1,084 1,315
Operating expenses 123 157 201 258 Borrowings 2,933 3,881 4,893 6,244
Pre-provision profit 239 300 396 506 Current liabilities & others - - - -
Provisions 46 84 110 140 Total liabilities 3,757 4,842 6,035 7,617
Profit before tax 193 216 286 365 Net block 33 33 33 33
Tax 48.6 55.6 73.5 93.9 Investments 309 312 315 318
Tax rate (%) 25.2 25.7 25.7 25.7 Loans 3,263 4,312 5,498 7,055
Adjusted Profit after tax 144 161 212 271 Current assets & others - - - -
Total assets 3,757 4,842 6,035 7,617

Dupont (as % of Assets) Key Ratios

Y/E Mar FY24 FY25E FY26E FY27E FY24 FY25E FY26E FY27E
Interest Income 14.8 14.6 14.9 15.0 NIM (%) 10.4 9.7 9.7 9.5
Interest Expense 5.8 6.1 6.1 6.2 NIM (%) - on AUM 10.2 9.5 9.4 9.3
Net Interest Income 9.1 8.5 8.7 8.8 Cost/ Income (%) 34.0 34.4 33.7 33.8
Other income total 2.1 2.1 2.2 2.4 Credit cost (%) 1.6 2.2 2.2 2.2
Net Income total 11.1 10.6 11.0 11.2 RoA(%) 4.5 3.8 4.0 4.0
Operating expenses total 3.8 3.7 3.7 3.8 RoE (%) 22.0 19.2 21.4 22.6
Preprovision profit 7.4 7.0 7.3 7.4 Tier I (%) 21.5 23.6 22.6 21.7
Provisions 1.4 1.9 2.0 2.1 CAR (%) 22.5 24.5 23.3 22.2
Profit before tax and ex items 5.9 5.0 5.3 5.4 Leverage (x) 4.9 5.4 5.6 5.8
Profit before tax 5.9 5.0 5.3 5.4 No of shares (mn) 619.0 619.0 619.0 619.0
Tax total 1.5 1.3 1.4 1.4 Gross NPA (%) 0.8 0.7 0.8 0.8
Profit after tax 4.4 3.7 3.9 4.0 Net NPA (%) 0.3 0.3 0.3 0.3
Provision coverage (%) 56.5 58.0 60.0 60.0
Growth (%)
FY24 FY25E FY26E FY27E Valuation Ratios
Net interest income 28.7 24.1 29.5 26.0 FY24 FY25E FY26E FY27E
Net Income total 25.7 26.1 30.6 27.8 FDEPS (Rs) 233.3 259.5 343.1 438.4
Preprovision profit 27.9 25.4 32.0 27.6 PER (x) 28.6 25.7 19.5 15.2
Profit before tax 24.3 12.0 32.2 27.8 Book value (Rs) 1,239.0 1,459.6 1,751.2 2,123.8
Profit after tax 25.5 11.2 32.2 27.8 P/BV (Rs) 5.4 4.6 3.8 3.1
Loan 34.7 32.1 27.5 28.3 Adjusted book value (Rs) 1,239.0 1,459.6 1,751.2 2,123.8
Disbursement - - - - P/ABV (Rs) 5.4 4.6 3.8 3.1
AUM 33.6 34.5 27.5 28.3 P/ PPP 17.3 13.8 10.4 8.2
Dividend yield (%) 0.5 0.6 0.8 1.0
Source: Company, PhillipCapital India Research

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 BAJAJ FINANCE QUARTERLY UPDATE

Stock Price, Price Target and Rating History

9000

8000 B (T 10000)
B (T 8700)
B (T 8700) B (T 9500)
B (T 8700) B (T 9500) B (T 10000)
7000
B (T 10000)B (T 10000)
B (T 10000)
B (T 8700)
6000 B (T 8500) B (T 8500)

5000

4000

3000

2000

1000

0
O-21 D-21 J-22 F-22 A-22 M-22 J-22 A-22 O-22 N-22 D-22 F-23 M-23 M-23 J-23 A-23 S-23 N-23 D-23 F-24 M-24 M-24 J-24 J-24 S-24

Source: PhillipCapital India Research

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 BAJAJ FINANCE QUARTERLY UPDATE

Rating Methodology
We rate stock on absolute return basis. Our target price for the stocks has an investment horizon of one year.
We have different threshold for large market capitalisation stock and Mid/small market capitalisation stock.
The categorisation of stock based on market capitalisation is as per the SEBI requirement.

Large cap stocks

Rating Criteria Definition
BUY >= +10% Target price is equal to or more than 10% of current market price
NEUTRAL -10% > to < +10% Target price is less than +10% but more than -10%
SELL <= -10% Target price is less than or equal to -10%.

Mid cap and Small cap stocks

Rating Criteria Definition
BUY >= +15% Target price is equal to or more than 15% of current market price
NEUTRAL -15% > to < +15% Target price is less than +15% but more than -15%
SELL <= -15% Target price is less than or equal to -15%.

Disclosures and Disclaimers

PhillipCapital (India) Pvt. Ltd. has three independent equity research groups: Institutional Equities, Institutional Equity Derivatives, and Private Client Group.
This report has been prepared by Institutional Equities Group. The views and opinions expressed in this document may, may not match, or may be contrary at
times with the views, estimates, rating, and target price of the other equity research groups of PhillipCapital (India) Pvt. Ltd.
This report is issued by PhillipCapital (India) Pvt. Ltd., which is regulated by the SEBI. PhillipCapital (India) Pvt. Ltd. is a subsidiary of Phillip (Mauritius) Pvt. Ltd.
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This report does not regard the specific investment objectives, financial situation, and the particular needs of any specific person who may receive this report.
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Unless specifically mentioned in Point No. 9 below:
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Page | 7 | PHILLIPCAPITAL INDIA RESEARCH

 BAJAJ FINANCE QUARTERLY UPDATE

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investment banking transaction by PCIL
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particular requirements of any individual recipient hereof. Certain securities may give rise to substantial risks and may not be suitable for certain investors.
Each investor must make its own determination as to the appropriateness of any securities referred to in this research report based upon the legal, tax and
accounting considerations applicable to such investor and its own investment objectives or strategy, its financial situation and its investing experience. The
value of any security may be positively or adversely affected by changes in foreign exchange or interest rates, as well as by other financial, economic, or political
factors. Past performance is not necessarily indicative of future performance or results.
Sources, Completeness and Accuracy: The material herein is based upon information obtained from sources that PCIPL and the research analyst believe to be
reliable, but neither PCIPL nor the research analyst represents or guarantees that the information contained herein is accurate or complete and it should not
be relied upon as such. Opinions expressed herein are current opinions as of the date appearing on this material, and are subject to change without notice.
Furthermore, PCIPL is under no obligation to update or keep the information current. Without limiting any of the foregoing, in no event shall PCIL, any of its
affiliates/employees or any third party involved in, or related to computing or compiling the information have any liability for any damages of any kind including
but not limited to any direct or consequential loss or damage, however arising, from the use of this document.
Copyright: The copyright in this research report belongs exclusively to PCIPL. All rights are reserved. Any unauthorised use or disclosure is prohibited. No
reprinting or reproduction, in whole or in part, is permitted without the PCIPL’s prior consent, except that a recipient may reprint it for internal circulation only
and only if it is reprinted in its entirety.
Caution: Risk of loss in trading/investment can be substantial and even more than the amount / margin given by you. Investment in securities market are subject
to market risks, you are requested to read all the related documents carefully before investing. You should carefully consider whether trading/investment is
appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances. PhillipCapital and any of its employees,
directors, associates, group entities, or affiliates shall not be liable for losses, if any, incurred by you. You are further cautioned that trading/investments in
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PhillipCapital/group/associates/affiliates/directors/employees before and during your trading/investment. There is no guarantee/assurance as to returns or
profits or capital protection or appreciation. PhillipCapital and any of its employees, directors, associates, and/or employees, directors, associates of
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responsibility. You must also read the Risk Disclosure Document and Do’s and Don’ts before investing.
Kindly note that past performance is not necessarily a guide to future performance.
For Detailed Disclaimer: Please visit our website www.phillipcapital.in

IMPORTANT DISCLOSURES FOR U.S. PERSONS

For U.S. persons only: This research report is a product of PhillipCapital (India) Pvt. Ltd., under Marco Polo Securities 15a-6 chaperone service, which is the
employer of the research analyst(s) who has prepared the research report. The research analyst(s) preparing the research report is/are resident outside the
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broker-dealer, and is/are not required to satisfy the regulatory licensing requirements of FINRA or required to otherwise comply with U.S. rules or regulations
regarding, among other things, communications with a subject company, public appearances and trading securities held by a research analyst account.

Research reports are intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the U.S. Securities and Exchange Act, 1934
(the Exchange Act) and interpretations thereof by U.S. Securities and Exchange Commission (SEC) in reliance on Rule 15a-6(a)(2). If the recipient of this report is
not a Major Institutional Investor as specified above, then it should not act upon this report and return the same to the sender. Further, this report may not be
copied, duplicated and/or transmitted onward to any U.S. person, which is not the Major Institutional Investor. In reliance on the exemption from registration
provided by Rule 15a-6 of the Exchange Act and interpretations thereof by the SEC in order to conduct certain business with Major Institutional Investors,
PhillipCapital (India) Pvt. Ltd. has entered into a chaperoning agreement with a U.S. registered broker-dealer, Marco Polo Securities Inc. ("Marco Polo").

Transactions in securities discussed in this research report should be affected through Marco Polo or another U.S. registered broker dealer.

PhillipCapital (India) Pvt. Ltd.

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Digitally signed by SHUBHRANSHU

MISHRA

SHUBHRANS
DN: c=IN, o=PHILLIPCAPITAL INDIA
PRIVATE LIMITED, ou=EMPLOYEE,
postalCode=400013, st=Maharashtra,

HU MISHRA
serialNumber=6DF07345A0735C07EE34B
1965F866ADD637B6CD28C9473FCB80E9
B303D318EEB, cn=SHUBHRANSHU
MISHRA
Date: 2024.10.23 08:13:23 +05'30'

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