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BuyPrevious Recommendation: Buy Rs91

26 October 2009

STOCK INFO.

BSE Sensex: 16,741

S&P CNX: 4,971

2QFY10 ResultsUpdateSECTOR: UTILITIES

PTC India

BLOOMBERG

PTCIN IN

REUTERS CODE

PTCI.BO

Satyam Agarwal (Agarwals@MotilalOswal.com); Tel: +91 22 39825410 / Nalin Bhatt (NalinBhatt@MotilalOswal.com); +91 22 39825429

* Pre Exceptional

Equity Shares (m) 294.1

52-Week Range 110/43

1,6,12 Rel. Perf.(%) 4/-24/0

M.Cap. (Rs b) 26.8

M.Cap. (US$ b) 0.6

Y EA R N ET SA LES PA T* EPS* EPS P/ E P/ B V R OE R OC E EV / EV /

EN D ( RS M ) ( R S M ) ( R S) R OW TH ( %) ( X ) ( X ) ( %) ( %) SALES EBITDA

03/08A 38,515 489 2.3 -1.2 39.5 1.4 5.6 6.5 0.5 115.2

03/09A 64,396 910 4.0 73.2 22.8 1.3 6.0 7.4 0.3 75.5

03/10E 91,770 1,101 3.7 -6.5 24.4 1.3 6.1 8.3 0.2 33.2

03/11E 111,840 1,259 4.3 14.4 21.3 1.2 5.9 7.3 0.2 33.2

QU A RTER LY PER FOR M A NC E ( R s M ill ion)

Y / E M A RC H FY 0 9 FY 10 E

1Q 2 Q 3 Q 4 Q 1Q 2 Q 3 QE 4 QE

Pow er Traded (MUs) 2,687 5,159 3,497 2,182 4,204 6,388 4,371 3,759 13,525 18,722Sales 12,031 20,313 21,168 11,777 23,717 24,582 22,949 20,523 65,289 91,770

Change (%) 3.8 38.4 188.5 115.5 97.1 21.0 8.4 74.3 67.1 40.6

EBITDA 59 141 27 23 147 297 96 91 250 631

Change (%) 1.1 36.1 67.0 -15.4 151.0 111.0 253.4 288.5 21.8 152.6

As of % Sales 0.5 0.7 0.1 0.2 0.6 1.2 0.4 0.4 0.4 0.7

Depreciation 15 16 16 15 14 14 14 15 62 56

Interest 9 8 7 2 1 0 3 4 25 8

Other Income 176 281 312 193 280 175 270 225 960 950

Extraordinary Income/(Expense) 1 0 0 -12 0 1 0 0 -12 0

PBT 211 398 316 211 413 459 349 298 1,135 1,518

Tax 22 59 79 55 79 149 87 102 226 417

Effective Tax Rate (%) 10.3 14.9 25.1 26.2 19.1 32.5 25.0 34.3 19.9 27.5

Reported PAT 190 338 237 155 334 310 262 196 909 1,101Adjusted PAT 189 334 275 174 364 309 262 196 910 1,101

Change (%) 58.7 189.6 344.3 -9.7 92.7 -7.4 -4.8 12.7 86.4 20.9

E: MOSt Estimates

FY 0 9 FY 10

2QFY10 operational results above estimates, driven by retainment of rebates by PTC: During 2QFY10, PTC

India reported revenues of Rs24.6b (up 21% YoY), and net profit of Rs309m (down 7.4% YoY). 2QFY10 results

include rebates of Rs100-120m, unclaimed by SEBs due to delay in payments. Adjusted for one-off impact of

Rs120m, EBIDTA for 2QFY10 stands at Rs177m, in-line with our estimate of Rs164m.

LT contracts accounted for 10% of 1HFY10 volumes, to contribute 36% to FY11 volumes: In 1HFY10, total

trading volumes stood at 10.6BUs, of which 1BUs (vs nil YoY) was from Long Term contracts from domestic projects

(excluding cross border projects). Of 16.3GW capacity tied-up under LT PPAs, 13.8GW projects are expected to be

commissioned by FY13. We expect domestic LT contracts to contribute 4.3BUs in FY10 (23% of its total trading

units) and 8BUs in FY11 (36% of total trading units), leading to significant stable earnings flow to the company.

PTC Financial Services (PFS) and PTC Energy (PEL) witnessing business traction: PFS has accorded investment

sanctions for Rs11.3b (for 3.8GW projects), comprising debt of Rs6.7b and equity funding of Rs4.5b, while is exploring

options to raise long term debt. PEL would focus on projects as a co-developer and is working on 3 projects withcapacity of 2.3GW through JVs (~26% stake by PEL). Total equity commitment towards these projects is Rs5.4b.

Significant part of project equity funding met: Current cash and cash equivalent stands at Rs11.5b, while equity

commitment towards project SPVs stands at Rs9.7b (Rs6.6b invested as at Mar-09). Of the existing cash balance

of Rs11.5b, ~Rs2.5b is intended for acquisition of coal assets abroad, Rs4b towards capital adequacy for trading

business and Rs5b towards initial contribution for power sector fund.

Valuation and view: We expect PTC to report net profit of Rs1.1b in FY10E (up 21% YoY) and Rs1.3 in FY11E (up

14% YoY). We arrive at a SOTP based target price of Rs109/sh. Maintain Buy.

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PTC India

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2QFY10 operational results above estimates, driven by retainment ofrebates by PTC

During 2QFY10, PTC India reported revenues of Rs24.6b (up 21% YoY), EBIDTA

of Rs297m (up 111% YoY) and net profit of Rs309m (down 7.4% YoY).

2QFY10 results include rebates of Rs100-120m, retained by PTC due to non-paymentof dues by SEBs within specified timeline, given deterioration in financial health of

SEBs with increased power tariffs (due to poor monsoons). As per the contractual

agreement, PTC is entitled for a rebate of 1.5% of the invoice amount from the power

generators if payment is made within stipulated time period. The company passes on

the same rebate to SEBs, if payment is made within the same stipulated period. Adjusted

for one-off impact of Rs120m, EBIDTA for 2QFY10 stands at Rs177m, in-line with

our estimate of Rs164m.

Gross trading margin for 2QFY10 stood at Rs389m or Rs0.061/unit. However, adjusted

for the rebate of ~Rs120m, gross trading margin stood at Rs269m or Rs0.042/unit.

Net profit impacted due to lower other income, higher taxes: Net profit for2QFY10 was down 7% YoY to Rs309m (v/s our estimate of Rs351m) due to lower

other income at Rs175m in 2QFY10 (v/s Rs280m in 1QFY10 and our estimates of

Rs270m) given decline in interest rates on term deposits. Also, the company provided

for higher tax on account of interest income at full tax rate on term deposits, v/s 22%

for dividends from MFs.

Total traded volumes during 2QFY10 stood at 6.4BUs (up 24% YoY) given higher

contribution from commencement of trading under long-term PPAs. During 2QFY10,

the company recorded 546MUs (v/s NIL YoY) from projects under long-term PPA.

Long-term contracts accounted for 10% of 1HFY10 volumes, to contribute36% to FY11 volumes

In 1HFY10, PTC India reported total trading volumes of 10.6BUs (vs 6.4BUs YoY),

of which 1BUs (vs nil YoY) was from LT contracts from domestic projects (excluding

cross border hydro power projects). These LT contracts are typically for ~25 years+

(covering the entire project lifecycle), and provide volume visibility to PTC.

As at September 2009, PTC has signed PPAs for 16.3GW capacity (vs 11.7GW as at

March 2009), of which, 13.8GW projects are expected to be commissioned over FY13.

The build up in terms of project commissioning stands as: FY10 - 443MW (245MW

already commissioned), FY11 - 670MW (Malana-II, Budhil HEP, etc), FY12 - 5.7GW

(Karcham Wangtoo, Teesta Energy, etc) and FY13 - 7GW. This should drive volumegrowth for PTC during FY10-13.

DETAILS OF PROEJCTS UNDER EVALUATIONS (RS M)

MAR-09 J UN-0 9 SEP-0 9

PPAs 11,736 15,244 16,313

MoUs 25,007 19,010 18,290

PSAs 3,375 3,483 3,483

Source: Company/MOSL

We expect domestic LT contracts to contribute 4.3BUs out of total 18.7BUs in FY10

(23% of its total trading units) and 8BUs out of total 22.3BUs in FY11 (36% of total

trading units). Including units traded from Bhutan, Nepal, etc, we expect LT trading tocontribute 10.1BUs in FY10 (54% of total) and 13.8BUs in (62% of total) in FY11,

respectively. This, we believe could provide significant stable earnings flow to the

company.

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PTC India

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PTC: COMPOSITION OF TOTAL UNITS TRADED (MUS)

1HFY10 1HFY09 2QFY10 2QFY09

Cross Border 3,889 4,409 2,845 3,083

IEX* 834 244 229 244

Domestic

Short Term 4,833 3,193 2,768 1,832Long Term 1,036 - 546 -

Total 10,592 7,846 6,388 5,159

*Through India Energy Exchange, where PTC has 26% stake Source: Company/MOSL

PTC: PROJECT COMMISSIONING SCHEDULE UNDER LT-PPA (MW)

FY10 FY11 FY12 FY13

Hydro 43 170 1,952 50

Thermal 400 500 3,743 6,900

Total 443 670 5,695 6,950

Source: Company/MOSL

Favorable regulatory environment to further boost earnings from tradingbusiness

CERC has proposed draft norms for increasing cap on ST trading to Rs0.07/unit for

units, vs Rs0.04/unit currently. According to the proposed draft norms, the ST trading

margin will be 1.5% of realization or Rs0.07/unit, whichever is lower for units traded

at Rs3/unit or above. For units traded below Rs3/unit, the current ST trading margin

cap of Rs0.04/unit will apply.

Given that the average ST trading rates are at Rs4.5-5.0/unit, PTC would benefit

from higher trading margins. In FY09, of the 13BUs traded by PTC, 5.8BUs were

traded sub Rs3/unit (largely Bhutan hydro power), 2.1BUs at between Rs3-4.67/unit

and 5.2BUs at Rs4.67+/unit. Thus, the revised norms would have led to higher operating

profits by Rs150m in FY09 for PTC, and higher net profit by Rs100m (upside of

~10%, given Adj FY09 net profit for PTC stood at Rs972m).

We understand that long term trading contracts will be largely outside the purview of

the regulatory cap in terms of margins. Thus, increased contribution from LT trading

business to 62% in FY11, vs 40% in FY09 could lead to improved margins, while

increasing the risk profile. We currently factor in Rs0.05/unit for LT units and Rs0.03-

0.035/unit for ST units.

PTC Financial Services and PTC Energy witnessing business tractionPTC Financial Services (77.66% stake by PTC) and PTC Energy Limited (100% stake

by PTC) have witnessed meaningful traction in business momentum. (PTC Financial

Services is an NBFC focused on equity/debt syndication for power projects, while PTC

Energy acts as a co-developer for power projects, from conceptualization stage.)

PTC Financial Services (PFS)

Till September 2009, PFS has accorded investment sanctions for Rs11.3b, comprising

of debt (sanctioned) Rs6.7b and equity funding of Rs4.5b.

PFS has net worth of Rs6.1b (of which PTC has invested Rs4.6b) to meet equity

funding requirement towards projects, and has credit lines available of ~Rs9b as term

loans from banks. The company has recently completed Rs1b bond issue, and is also

looking at raising funds through long-term resources like ECB at competitive rates.

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PTC India

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For debt syndication, PFS is financing 3.8GW of projects, comprising of 3,771MW

thermal, 15MW hydro and 42MW Renewable energy. Of this, 70MW has been

commissioned. In addition, the company has committed mezzanine equity funding

towards 2.5GW of power capacity.

PTC Energy Services (PEL)

PEL would focus only on projects as a co-developer and take equity stake from

conceptualization stage. PTC plans to route investment into its current LT PPA portfolio

through PTC Energy.

PEL is currently working on 3 thermal power projects with cumulative capacity of

2.3GW in Joint Ventures (JVs), where stake of PEL is ~26% in these projects. Total

equity commitment towards these projects is estimated at Rs5.4b and many of the

projects are in advanced stages of construction with major approvals in place and part

of equipment ordering already complete. BTG contracts have been awarded for 1.1GW

of capacity, and a large part of these projects is expected to be commissioned byFY12.

PEL'S PROJECT PORTFOLIO (RS M)

STATE CAPACITY PEL 'S STAK E REMARK S

(MW) (%) (RS M)

Orissa 780 26.0 2,070 EPC awarded, CoD expected by

Mar-12

Karnataka 450 26.0 1,001 EPC awarded for 150MW, CoD

expected by Apr-11 to Mar-12

Orissa 1,050 26.0 2,366 EPC awarded for 350MW, CoD

expected by FY12

Total 2,280 5,437

Source: Company/MOSL

PTC's Equity funding for PFS and PEL capped at Rs4.6b and Rs3brespectively; plans to unlock value through IPO / strategic investors

PTC India has invested Rs4.6b in PFS, which can leverage equity 2-3x to raise debt

for meeting funding requirements. As per the shareholders agreement with Goldman

Sachs and Macquarie (strategic investors in PFS), the company should go for an IPO

in FY11, which should unlock value. PTC intends to cap equity commitment towards

PFS at Rs4.6b (already invested).

Similarly, for PEL, PTC plans to cap equity investment at Rs3b (current investmentRs410m), and plans for value unlocking through an IPO. The company will also explore

options of inviting strategic investors or monetizing investment in project SPVs to fund

growth for PEL.

Progress on Athena Energy Ventures Encouraging, Equity commitment atRs1.5b

Athena Energy Ventures (20% stake by PTC India) has stakes in project development

pipeline, comprising of 2.5GW of thermal power project (1.3GW Bhavanpadu in Orissa,

1.2GW Chattisgarh) and 4.5GW of Hydro power projects (3.6GW of Damwe HEP,

665MW Emra HEP and 275MW Kynshi HEP).

Of this, the equipment orders for 1.3GW Bhavanpadu project have been placed, while

initial clearances, fuel tie-ups, etc are in place for Chattisgarh project and land acquisition

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PTC India

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is under progress. For Damwe HEP, the work on Phase 1 (1,750MW) has already

commenced and environmental clearance has been received; expected CoD is by

FY16.

PTC India has invested Rs380m in Athena Energy Ventures as part of its equity

funding requirement towards current projects under development, and plans to enhancethe equity investments to Rs1.5b by end FY10. Post this, the company does not expect

any meaningful ramp-up in equity commitment, as incremental funds would possibly

be raised through internal accruals / IPO or strategic investors.

Significant part of project equity funding met; Rs11.5b cash on books foracquisition of coal assets abroad, working capital requirement

Current cash and cash equivalent stands at Rs11.5b (Rs39/sh). Total equity

commitment towards project SPVs stands at Rs9.7b, to be invested by FY11; as at

March 2009, PTC has already invested equity of Rs6.6b.

Of the existing cash balance of Rs11.5b, ~Rs2.5b is intended for acquisition of coalassets abroad, Rs4b towards capital adequacy for trading business and Rs5b towards

initial contribution for power sector fund.

PTC: DETAILS OF INVESTMENT IN PROJECT SPVS (RS M)

FY08 FY09 FY10E FY11E

Subsidiary Co

PTC Energy 410 410 2,000

PTC Financial Services 540 4,460 4,460 4,460

Associates Co

Athena 300 300 1,500 1,500

Krishna Godavari 153 195 400 400

Teestha Project 702 1,257 1,357 1,357Total 1,695 6,622 8,127 9,717

Source: Company/MOSL

Valuation and view

We expect PTC to report net profit of Rs1.1b in FY10E (up 21% YoY) and Rs1.3 in

FY11E (up 14% YoY). At CMP of Rs91/sh, the stock trades at reported PER of 24x

FY10E and 21x FY11E.

We arrive at a SOTP based target price of Rs109/sh, comprising of Rs38/sh for core

business (DCF, WACC of 11.3%), Rs20/sh for investment in PTC Financial Services

(30% premium to book value), Rs12/sh for investment in project SPVs and Rs39/sh ofcash on books.

Maintain Buy.

PTC INDIA: SUM OF PARTS VALUATIONS

BUSINESS SEGM EN T M ET H OD VALUE VALUE

(RS M) (RS/SH)

Core Business Power Trading DCF, WACC 11.3% 11,057 38

PTC Financial Services Financial Intermediation 30% premium 5,798 20

PTC Energy Power Generation Book Value, FY10 410 1

Athena Projects Power Generation Book Value, FY10 1,500 5

Teestha VI Power Generation Book Value, FY10 1,357 5

Krishna Godavari Power Generation Book Value, FY10 400 1

Cash Balance Book Value, FY10 11,484 39

Total 109

Source: MOSL

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Company background

PTC India Ltd. is the pioneer in power trading in India, and

over the years has become a Power Solutions company. It

was set up in April 1999 with a mandate to catalyze the

development of large power projects by acting as a single

buyer for PPAs with independent power producers on one

hand and by entering multi-partite PPAs with users and

SEBs under long-term arrangements on the other. The GoI

has identified PTC as its nodal agency for trading power

with neighboring countries. Currently, short-term trading

account for around 80% of PTCs volumes, but this is

expected to decline to 25% by FY09-10.

Key investment arguments

Change in business mix towards long-term contracts

extends volume and margin visibility and hence lends

solidity to PTCs business model.

Addressable market of PTC to rise due to open access

to intra-state transmission, easing of inter state grid

constraints, commissioning of new merchant power

plants, etc

FY08 would be the inflexion point in terms of volumes

and earnings

Key investment risks

Changes in the regulatory regime

Increasing competition in the short-term market

Power off-take risk in executing long-term contracts

Recent developments

Indian Energy Exchange (26% stake) commenced

operation wef June 27, 2008.

It has formed a 50:50 JV with Asian Infratech to

acquired coal assets overseas.

Valuation and view

At CMP of Rs91/sh, the stock trades at reported PER

of 24x FY10E and 21x FY11E.

We arrive at a SOTP based target price of Rs109/sh..

Maintain Buy.

Sector view

We believe that the Indian power sector offers

significant growth potential. Incumbents, especially the

CPSUs and private players, enjoy growth optionality,

which could be in multiples of the current size.

PTC India: an investment profile

STOCK PERFORMANCE (1 YEAR)

SHAREHOLDING PATTERN (%)

SEP-0 9 J UN-09 SEP-08

Promoter 16.3 16.3 21.1

Domestic Inst 42.7 36.0 30.3

Foreign 24.0 31.5 28.3Others 17.0 16.2 20.3

EPS: MOST FORECAST V/S CONSENSUS (RS)

M OST CON SEN SU S VARIATION

FORECAST FORECAST (%)

FY10 3.7 3.9 -4.0

FY11 4.3 5.0 -14.1

TARGET PRICE AND RECOMMENDATION

CURRENT TARGET UPSIDE RECO.

PRICE (RS) PRICE (RS) (%)

91 109 19.3 Buy

35

55

75

95

115

Oct-08 Jan-09 Apr-09 Jul-09 Oct-09

-20

-3

14

31

48

PTC India (Rs) - LHS Rel. to Sensex (%) - RHS

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PTC India

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IN COM E STA TEM ENT ( R S M ILLION )

Y / E M A R CH 2 0 0 7 2 0 0 8 2 0 0 9 2 0 10 E 2 0 11E

Tot al Revenues 36,307 38,515 64,396 91,770 111,840

To tal Expenses 36,029 38,342 64,171 91,139 111,157

EBITDA 279 173 225 631 682

% of To tal Revenues 0.8 0.4 0.3 0.7 0.6

Depreciation 13 13 62 56 52

Interest 0 0 0 8 29

Other Inco me 193 432 973 950 972

P B T 459 592 1,135 1,518 1,574

Tax 105 103 226 417 315

Rate (%) 23.0 17.4 19.9 27.5 20.0

Reported PA T 353 489 909 1,101 1,259

Change (%) -13.4 38.4 86.1 21.0 14.4

Adjusted PAT 351 526 910 1,101 1,259

Change (%) -13.7 49.8 73.2 20.9 14.4

B ALAN C E SHEET ( R S M ILLION )

Y / E M A R CH 2 0 0 7 2 0 0 8 2 0 0 9 2 0 10 E 2 0 11E

Share Capital 1,500 2,274 2,274 2,941 2,941

Reserves 1,156 12,641 13,091 17,975 18,604

Net Worth 2,656 14,915 15,365 20,915 21,545

Loans 0 0 0 301 849

Deferred Tax Liability 15 59 95 95 95

M inority Interest 0 441 0 0 0

Capital Employed 2,671 15,415 15,460 21,311 22,489

Gross Fixed Assets 240 625 604 711 781

Less: Depreciation 65 79 138 194 246

Net F ixed Assets 175 546 466 517 535

Investments 2,111 13,822 13,024 14,150 17,405

Curr. Assets 2,635 3,717 9,995 11,099 10,219

Debtors 1,625 1,794 3,546 5,053 6,158

Cash & Bank Balance 482 1,237 6,256 5,775 3,733

Loans & Advances 523 680 183 261 318

Other Current As sets 4 6 11 11 11

Current Liab. & Prov. 2,267 2,670 3,005 4,455 5,670

Other Liabilities 1,658 1,911 2,562 3,826 4,902

Provisions 615 772 442 629 768

Net Deferred Tax As set -6 -13 0 0 0

Net Current A ssets 367 1,047 6,990 6,644 4,549

M isc Expenses 17 0 0 0 0

Application of Funds 2,671 15,415 15,460 21,311 22,489

E: MOSL Estimates

RATIOS

Y / E M A R CH 2 0 0 7 2 0 0 8 2 0 0 9 2 0 10 E 2 0 11E

Basic (Rs)

EP S 2.3 2.3 4.0 3.7 4.3

CE P S (Rs ) 2.4 2.2 4.3 3.9 4.5

Bo ok Value 17.6 65.6 67.6 71.1 73.3

DP S 1.2 1.2 1.8 1.9 2.1Payout (incl. Div. Tax.) 50.0 54.6 45.4 50.0 50.0

Valuation (x)

P/ E 39.0 39.5 22.8 24.4 21.3

EV/EBITDA 47.2 115.2 75.5 33.2 33.2

EV/Sales 0.4 0.5 0.3 0.2 0.2

Price/Boo k Value 5.2 1.4 1.3 1.3 1.2

Dividend Yield (%) 1.3 1.3 2.0 2.1 2.3

Prof itability Ratios ( %)

Ro E 13.8 5.6 6.0 6.1 5.9

RoCE 17.7 6.5 7.4 8.3 7.3

Turnover Ratio sDebtors (Days) 16 17 20 20 20

As set Turnover (x) 0.1 0.0 0.1 0.1 0.1

Leverage R atio

Debt/Equity (x) 0.0 0.0 0.0 0.0 0.0

CA SH FLOW STA TEM EN T ( R s M ill ion)

2 0 0 7 2 0 0 8 2 0 0 9 2 0 10 E 2 0 11E

PB T before EO I tems 459 592 1,135 1,518 1,574

Add : Depreciation 13 13 62 56 52

Interest 0 0 0 8 29

Less : Direct Taxes Paid 105 103 226 417 315

(Inc)/Dec in WC -109 75 -924 -135 53

CF from Operations 257 577 47 1,029 1,393

Extra-ordinary Items 0 0 0 0 0

CF from Oper. incl EO 257 577 47 1,029 1,393

(Inc)/dec in F A -6 -383 18 -107 -70

(Pur)/Sale of Investments -200 -11,271 5,378 -6,146 -3,255

CF from Investments -206 -11,654 5,396 -6,253 -3,325

(Inc)/Dec in Networth 13 12,099 -12 5,000 0

(Inc)/Dec in Debt 0 0 0 301 548

Less : Interest P aid 0 0 0 8 29

Dividend Paid 175 266 413 550 629

CF fro m Fin. Activity -163 11,833 -425 4,743 -110

Inc /Dec of Cash -111 756 5,019 -481 -2,042

Add: Beginning Balance 594 482 1,237 6,256 5,775

Closing Balance 482 1,237 6,256 5,775 3,733

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This report is for the personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. Motilal Oswal

Securities Limited (hereinafter referred as MOSt) is not soliciting any action based upon it. This report is not for public distribution and has been furnished to you solelyfor your information and should not be reproduced or redistributed to any other person in any form.

The report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon such. MOSt or

any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the

information contained in this report. MOSt or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding

any matter pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement. The

recipients of this report should rely on their own investigations.

MOSt and/or its affiliates and/or employees may have interests/ positions, financial or otherwise in the securities mentioned in this report. To enhance transparency,

MOSt has incorporated a Disclosure of Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the report.

Disclosure of Interest Statement PTC India

1. Analyst ownership of the stock No

2. Group/Directors ownership of the stock No

3. Broking relationship with company covered No

4. Investment Banking relationship with company covered No

This information is subject to change without any prior notice. MOSt reserves the right to make modifications and alternations to this statement as may be required

from time to time. Nevertheless, MOSt is committed to providing independent and transparent recommendations to its clients, and would be happy to provide

information in response to specific client queries.

For more copies or other information, contact

Institutional: Navin Agarwal. Retail: Manish Shah

Phone: (91-22) 39825500 Fax: (91-22) 22885038. E-mail: reports@motilaloswal.com

Motilal Oswal Securities Ltd, 3rd Floor, Hoechst House, Nariman Point, Mumbai 400 021