FCFF

In Millions of INR
Summary Analysis
In Millions of INR
Revenue (Estimate Comparable)
% YoY Growth
EBITDA
% Margin
Free Cash Flow
% Margin
Perpetuity Growth Method

Current Price (INR)
Consensus Price Target
DCF Estimated Value per Share (INR)
DCF Estimated Upside
2.5%
11.1% 716.35
Discount 11.6% 679.54
Rate 12.1% 646.60
(WACC) 12.6% 616.96
13.1% 590.14
2.5%
11.1% -12%
11.6% -16%
12.1% -20%
12.6% -24%
13.1% -27%
Input Calculation
Weighted Average Cost of Capital
Perpetuity Growth Rate
Exit Enterprise Value / EBITDA
In Millions of INR
Revenue (Estimate Comparable)

Revenue (GAAP)
% YoY Growth Edit Row
BEst Consensus Revenue

5 Year Moving Trend
BEst Consensus EPS Long Term
Input (%)
Input (INR)
Revenue YoY growth

Number of analysts estimating
(-) Cost of Revenue

(-) Cost of Revenue (GAAP)
% of Revenue
(=) Gross Profit
% Margin Edit Row
BEst Consensus Gross Margin

Last Year's Gross Margin
>> Input (%)
Gross Margin YoY Change

(-) Operating Expenses/Income
% of Revenue Edit Row
BEst Consensus Implied Opera

Last Year's Operating Expense
>> Input (%)
Operating Expenses/Income as
% YoY Growth
(=) Operating Income
% Margin
(-) Tax on Operating Income
% Tax Rate Edit Row
5 Year Rolling Average Effectiv

Last Year's Effective Tax Rate
>> Input (%)
Estimated Tax on Operating Inc
(=) NOPAT
% Margin
(+) Depreciation & Amortization
BEst Consensus Implied Depre

Last Year's Depreciation & Amo
Input (%)
Depr & Amort as a % of Reven
% YoY Growth
(-) Capital Expenditure
BEst Consensus Capital Expen

5 Year Rolling Average
Last Year's Capital Expenditure
Input (INR)
Capex as a % of Revenue YoY c

The ratio Capex / Depr & Amor
% YoY Growth
(-) Changes in Net Working Capital
Input (%)
Change in NWC as a % of Reve
(+) Changes in Net Long Term Deferred Tax Liabilities

Input (%)
Change in Net LT Def Tax Liab
(+) Other User Estimated Non-Cash Adjustments

Input (INR)
(=) Free Cash Flow

% Margin Edit Row
Free Cash Flow Margin YoY Cha
% YoY Growth
% of the Free Cash Flow to be discounted

Period for Discount Factor (Mid-Year Convention)
Discount Factor @ 12.1% WACC
Present Value of Free Cash Flow (5 Years)
EBITDA
% Margin Edit Row
EBITDA Margin YoY Change
% YoY Growth
Output Analysis
tuity Growth Method - Value per Share

Free Cash Flow at Year 5
WACC
Perpetuity Growth Rate
Perpetuity Value at End of Year 5
Present Value of Perpetuity (@ 12.1% WACC)

(+) Present Value of Free Cash Flows (@ 12.1% WACC)
(=) Current Enterprise Value
Short Term Debt

(+) Long Term Debt
(-) Cash and Marketable Securities
(-) Current Net Debt
(-) Current Preferred and Minority Interest
(=) Equity Value
Shares outstanding
Estimated Value per Share (INR)
Current Price (INR)
Estimated Upside
ity Growth Method - Sensitivity Analysis
Incremental change
0.5%
2.5%
11.1% 927,001
Discount 11.6% 875,069
Rate 12.1% 828,601
(WACC) 12.6% 786,783
13.1% 748,958
2.5%
11.1% 716.35
11.6% 679.54
12.1% 646.60
12.6% 616.96
13.1% 590.14
2.5%
11.1% -12%
11.6% -16%
12.1% -20%
12.6% -24%
13.1% -27%
2.5%
11.1% 7.24
11.6% 6.84
12.1% 6.49
12.6% 6.17
13.1% 5.88
Jun 11 A Jun 12 A Jun 13 A Jun 14 A Jun 15 A Mar 16 A Mar 17 E

157,304 208,306 255,811 321,437 370,610 405,578 468,988
32% 23% 26% 15% 9% 16%
27,152 37,341 56,723 80,822 84,736 - 101,823
17% 18% 22% 25% 23% 0% 22%
16,867 17,659 38,285 56,876 40,785 (21,373) 47,494
11% 8% 15% 18% 11% -5% 10%
EBITDA Multiple Method

810.65 Current Price (INR)
929.51 Consensus Price Target
696.13 DCF Estimated Value per Share (INR)
-14% DCF Estimated Upside
Perpetuity Growth
3.0% 3.5% 4.0% 4.5%
746.76 781.16 820.39 865.54 11.1%
706.13 736.00 769.79 808.32 Discount 11.6%
670.01 696.13 725.48 758.67 Rate 12.1%
637.68 660.68 686.35 715.17 (WACC) 12.6%
608.59 628.95 651.55 676.76 13.1%
3.0% 3.5% 4.0% 4.5%
-8% -4% 1% 7% 11.1%
-13% -9% -5% 0% 11.6%
-17% -14% -11% -6% 12.1%
-21% -18% -15% -12% 12.6%
-25% -22% -20% -17% 13.1%
Input Peers Px Implied Tgt Implied Default

erage Cost of Capital 11.5% 12.1%
owth Rate 5.2% 6.4% 3.5%
se Value / EBITDA 11.2x 9.2x 11.2x 11.6x

-5FY -4FY -3FY -2FY -1FY -0FY 1FY
1
157,304 208,306 255,811 321,437 370,610 405,578 468,988
157,304 208,306 255,811 321,437 367,012 -
32% 23% 26% 15% 9% 16%
Row # of choice 1
Click on a cell below to select assumption (selected cells are hi
Est Consensus Revenue 16%
Year Moving Trend 19%
Est Consensus EPS Long Term Growth 9%
Input
Input
Highlight estimates if Less than Greater than

evenue YoY growth 0% 15% 16%
umber of analysts estimating Revenue 3 45
umber of analysts estimating EPS LTG Rate 3 4
- - - ### - - 311,849
- - - ### - -
0% 0% 0% 0% 0% 0% 66%
- - - ### - - 157,139
0% 0% 0% 0% 0% 0% 34%
1
Est Consensus Gross Margin 34%
ast Year's Gross Margin 0%
Input

ross Margin YoY Change -5% 5% 34%
umber of analysts estimating Gross Margin 3 12
134,750 176,457 205,455 247,423 289,911 405,578 63,672
86% 85% 80% 77% 78% 100% 14%
1
Est Consensus Implied Operating Expense as a % of Revenue 14%
ast Year's Operating Expense as a % of Revenue 100%
Input

perating Expenses/Income as a % of Revenue change -5% 5% -86%
umber of analysts estimating Gross Margin 3 12
umber of analysts estimating Operating Profit 3 11
31% 16% 20% 17% 40% -84%

22,555 31,848 50,355 74,014 80,699 - 93,467
14% 15% 20% 23% 22% 0% 20%
5,160 7,777 11,709 13,144 15,996 - 15,936
23% 24% 23% 18% 20% 0% 17%
1
Year Rolling Average Effective Tax Rate 17%
ast Year's Effective Tax Rate 0%
Input

stimated Tax on Operating Income 0% 50% 17.1%
17,394 24,072 38,647 60,870 64,703 - 77,531

11% 12% 15% 19% 17% 0% 17%
4,597 5,492 6,368 6,809 4,038 - 8,356
3% 3% 2% 2% 1% 0% 2%
1
Est Consensus Implied Depreciation & Amortization as a % of Revenue 2%
ast Year's Depreciation & Amortization as a % of Revenue 0%
Input
epr & Amort as a % of Revenue change -5% 5% 2%
umber of analysts estimating Operating Profit 3 11
umber of analysts estimating EBITDA 3 42
19% 16% 7% -41% -100%

7,851 9,094 6,187 7,196 12,082 - 26,916
5% 4% 2% 2% 3% 0% 6%
1
Est Consensus Capital Expenditure 26,916
Year Rolling Average 6,912
ast Year's Capital Expenditure -
Input

apex as a % of Revenue YoY change -5% 5% 5.7%
he ratio Capex / Depr & Amort 0.80 1.25 3.22
umber of analysts estimating Capex 3 31
16% -32% 16% 68% -100%

892 2,811 542 3,607 15,873 21,373 11,477
1% 1% 0% 1% 4% 5% 2%
1
Year Rolling Average 2%
Input

hange in NWC as a % of Revenue YoY change -5% 5% -3%
3,619 - - ### - - -
2% 0% 0% 0% 0% 0% 0%
1
Year Rolling Average 0%
Input

hange in Net LT Def Tax Liab as a % of Revenue YoY chg -5% 5% 0%
-
0%
16,867 17,659 38,285 56,876 40,785 (21,373) 47,494

11% 8% 15% 18% 11% -5% 10%

ee Cash Flow Margin YoY Change -5% 5% 15%
5% 117% 49% -28% -152% -322%
43%
0.22
0.98
20,055
27,152 37,341 56,723 80,822 84,736 - 101,823
17% 18% 22% 25% 23% 0% 22%

BITDA Margin YoY Change -5% 5% 22%
38% 52% 42% 5% -100%
EBITDA Multiple Method - Value per Share

91,755 Terminal EBITDA at Year 5
12.1% WACC
3.5% Exit Enterprise Value / EBITDA
1,101,313 Terminal Value at End of Year 5
620,892 Present Value of Termina

277,593 (+) Present Value of Free Cash F
898,485 (=) Current Enterprise Value
3,681 Short Term Deb

7,374 (+) Long Term Debt
97,762 (-) Cash and Marketable
(86,707) (-) Current Net Debt
3,116 (-) Current Preferred and Minorit
982,076 (=) Equity Value
1,411 Shares outstanding

696.13 Estimated Value per Share (I
810.65 Current Price (INR)
-14% Estimated Upside
EBITDA Multiple Method - Sensitivity Analysis
Enterprise Value in Millions of INR

Perpetuity Growth Incremental change
1.5x 0.5%
3.0% 3.5% 4.0% 4.5%
969,904 1,018,435 1,073,777 1,137,472
912,591 954,731 1,002,398 1,056,755 Discount
861,628 898,485 939,879 986,701 Rate
816,023 848,469 884,676 925,339 (WACC)
774,981 803,708 835,583 871,155
Value in INR
3.0% 3.5% 4.0% 4.5%
746.76 781.16 820.39 865.54
706.13 736.00 769.79 808.32
670.01 696.13 725.48 758.67
637.68 660.68 686.35 715.17
608.59 628.95 651.55 676.76
Upside Potential
3.0% 3.5% 4.0% 4.5%
-8% -4% 1% 7%
-13% -9% -5% 0%
-17% -14% -11% -6%
-21% -18% -15% -12%
-25% -22% -20% -17%
Implied Exit EV / EBITDA Multiple

3.0% 3.5% 4.0% 4.5%
7.72 8.27 8.89 9.61
7.28 7.76 8.31 8.94
6.88 7.31 7.80 8.35
6.52 6.91 7.35 7.84
6.20 6.55 6.94 7.38
Mar 18 E Mar 19 E Mar 20 E Mar 21 E Mar 22 E Year 5
Mar 18 E Mar 19 E Mar 20 E Mar 21 E Mar 22 E Trend

524,183 577,288 601,000 666,077 727,587
12% 10% 4% 11% 9%
113,275 124,062 129,158 143,144 156,362
22% 21% 21% 21% 21%
64,330 71,795 76,518 88,548 94,204
12% 12% 13% 13% 13%
810.65
929.51
d Value per Share (INR) 957.06
18%
Terminal EBITDA Multiple

8.6x 10.1x 11.6x 13.1x 14.6x
804.79 899.23 993.67 1088.10 1182.54
790.44 882.78 975.12 1067.46 1159.80
776.46 866.76 957.06 1047.36 1137.66
762.82 851.14 939.45 1027.76 1116.08
749.53 835.91 922.29 1008.67 1095.05
8.6x 10.1x 11.6x 13.1x 14.6x
-1% 11% 23% 34% 46%
-2% 9% 20% 32% 43%
-4% 7% 18% 29% 40%
-6% 5% 16% 27% 38%
-8% 3% 14% 24% 35%
Current
Auto Input Selection
Choice
On
12.1%
3.5% (Perpetuity Growth Method only)
11.6x (EBITDA Multiple Method only)
Mar 18 E Mar 19 E Mar 20 E Mar 21 E Mar 22 E Year 5

2FY 3FY 4FY 5FY 6FY
2 3 4 5
524,183 577,288 601,000 666,077 727,587
12% 10% 4% 11% 9%
1 1 1 2 2
mption (selected cells are highlighted in blue)
12% 10% 4%
15% 13% 11% 11% 9%
9% 9% 9% 9% 9%
Input Input Input Input Input

12% 10% 4% 11% 9%

45 25 1 0 0
4 4 4 4 4
347,727 387,586 403,505 447,198 488,494
66% 67% 67% 67% 67%

176,456 189,703 197,495 218,880 239,092
34% 33% 33% 33% 33%
1 1 2 2 2
34% 33%
34% 34% 33% 33% 33%
0% -1% 0% 0% 0%
10 6 0 0 0
72,207 73,155 76,160 84,407 92,201
14% 13% 13% 13% 13%
1 1 2 2 2
14% 13%
14% 14% 13% 13% 13%
0% -1% 0% 0% 0%
45 25 1 0 0
10 6 0 0 0
11 6 0 0 0
13% 1% 4% 11% 9%
104,249 116,548 121,335 134,473 146,891
20% 20% 20% 20% 20%
16,238 16,365 16,135 16,128 21,140
16% 14% 13% 12% 14% 8
1 1 1 1 1
16% 14% 13% 12% 14%
17% 16% 14% 13% 12%
15.6% 14.0% 13.3% 12.0% 14.4%
88,010 100,182 105,199 118,345 125,750

17% 17% 18% 18% 17%
9,026 7,515 7,824 8,671 9,471
2% 1% 1% 1% 1% 8
1 1 2 2 2
2% 1%
2% 2% 1% 1% 1%

0% 0% 0% 0% 0%
45 25 1 0 0
11 6 0 0 0
42 25 1 0 0
8% -17% 4% 11% 9%
18,727 17,673 15,080 15,679 18,815
4% 3% 3% 2% 3% 9
1 1 2 2 2
18,727 17,673
10,476 12,984 15,080 15,679 18,815
26,916 18,727 17,673 15,080 15,679
-2.2% -0.5% -0.6% -0.2% 0.2%

2.07 2.35 1.93 1.81 1.99
31 19 0 0 0
-30% -6% -15% 4% 20%

13,979 18,230 21,425 22,789 22,203
3% 3% 4% 3% 3% 7
1 1 1 1 1
3% 3% 4% 3% 3%
0% 0% 0% 0% 0%
- - - - ###
0% 0% 0% 0% 0% 7
1 1 1 1 1
0% 0% 0% 0% 0%
0% 0% 0% 0% 0%
- - - - ###
0% 0% 0% 0% 0%
- - - - ###
64,330 71,795 76,518 88,548 94,204 91,755

12% 12% 13% 13% 13%
2% 0% 0% 1% 0%
35% 12% 7% 16% 6%
100% 100% 100% 100% 57%

0.93 1.93 2.93 3.93 4.72
0.90 0.80 0.71 0.64 0.58
57,807 57,528 54,672 56,416 31,115
113,275 124,062 129,158 143,144 156,362 150,640
22% 21% 21% 21% 21%
0% 0% 0% 0% 0%
11% 10% 4% 11% 9%
lue per Share

erminal EBITDA at Year 5 150,640
12.1%
xit Enterprise Value / EBITDA 11.6x
erminal Value at End of Year 5 1,754,228
Present Value of Terminal Value (@ 12.1% WACC) 988,989

+) Present Value of Free Cash Flows (@ 12.1% WACC) 277,593
=) Current Enterprise Value 1,266,582.2
Short Term Debt 3,681

(+) Long Term Debt 7,374
(-) Cash and Marketable Securities 97,762
) Current Net Debt (86,707)
) Current Preferred and Minority Interest 3,116
=) Equity Value 1,350,173
Shares outstanding 1,411

stimated Value per Share (INR) 957.06
urrent Price (INR) 810.65
stimated Upside 18%
sitivity Analysis
Enterprise Value in Millions of INR

Terminal EBITDA Multiple
8.6x 10.1x 11.6x 13.1x 14.6x

11.1% 1,051,779 1,185,005 1,318,230 1,451,456 1,584,682
11.6% 1,031,533 1,161,802 1,292,071 1,422,341 1,552,610
12.1% 1,011,801 1,139,191 1,266,582 1,393,973 1,521,364
12.6% 992,565 1,117,154 1,241,742 1,366,331 1,490,920
13.1% 973,813 1,095,673 1,217,533 1,339,393 1,461,252
Value in INR
8.6x 10.1x 11.6x 13.1x 14.6x
11.1% 804.79 899.23 993.67 1,088.10 1,182.54
11.6% 790.44 882.78 975.12 1,067.46 1,159.80
12.1% 776.46 866.76 957.06 1,047.36 1,137.66
12.6% 762.82 851.14 939.45 1,027.76 1,116.08
13.1% 749.53 835.91 922.29 1,008.67 1,095.05
Upside Potential
8.6x 10.1x 11.6x 13.1x 14.6x
11.1% -1% 11% 23% 34% 46%
11.6% -2% 9% 20% 32% 43%
12.1% -4% 7% 18% 29% 40%
12.6% -6% 5% 16% 27% 38%
13.1% -8% 3% 14% 24% 35%
Implied Perpetuity Growth

8.6x 10.1x 11.6x 13.1x 14.6x
11.1% 3.8% 4.8% 5.6% 6.2% 6.7%
11.6% 4.3% 5.3% 6.1% 6.7% 7.2%
12.1% 4.8% 5.8% 6.6% 7.2% 7.7%
12.6% 5.2% 6.3% 7.0% 7.7% 8.1%
13.1% 5.7% 6.7% 7.5% 8.1% 8.6%
3
6
5
NA NA NA
NA NA NA
3
3
NA NA NA
NA NA NA
BF
HCL TECHNOLOGIES LTD
* Financial information is in INR (M)
Fiscal Year
-10FY
Periodicity: 6/06
ACCOUNTING_STANDARD
Income Statement
Revenue SALES_REV 45,716
- Cost of Goods Sold IS_COGS_T 24,947
Gross Income GROSS_PRO 20,769

- Operating Expenses IS_OPERAT 12,756
(Research & Dev Costs) IS_RD_EXP 41
Operating Income IS_OPER_IN 8,012

- Interest Expense IS_INT_EXP 58
- Foreign Exchange Losses (Gains) IS_FOREIG 806
- Net Non-Operating Losses (Gains) IS_NET_NO (335)
Pretax Income PRETAX_IN 7,483

- Income Tax Expense IS_INC_TAX 559
Income Before XO Items IS_INC_BEF 6,924

- Extraordinary Loss Net of Tax XO_GL_NET -
- Minority Interests MIN_NONCO 18
Diluted EPS Before XO Items IS_DIL_EPS 5.05
Net Income Adjusted* IS_COMP_N 6,907

EPS Adjusted IS_COMP_E 5.37
Dividends Per Share IS_DIV_PER 4.00
Payout Ratio % DVD_PAYOU 74.72
Total Shares Outstanding BS_SH_OUT 1294

Diluted Shares Outstanding IS_SH_FOR 1,369
EBITDA EBITDA 10,527
*Net income excludes extraordinary gains and losses and one-time charges.
Balance Sheet
Total Current Assets BS_CUR_AS 30,865
+ Cash & Near Cash Items BS_CASH_N 2,369
+ Short Term Investments BS_MKT_SE 15,885
+ Accounts & Notes Receivable BS_ACCT_N 8,708
+ Inventories BS_INVENT 233
+ Other Current Assets BS_OTHER_ 3,670
Total Long-Term Assets BS_TOT_NO 10,099

+ Long Term Investments BS_LT_INVE 120
Gross Fixed Assets BS_GROSS_ 14,495
Accumulated Depreciation BS_ACCUM 6,097
+ Net Fixed Assets BS_NET_FI 8,398
+ Other Long Term Assets BS_OTHER_ 1,582
Total Current Liabilities BS_CUR_LI 9,478

+ Accounts Payable BS_ACCT_P 4,652
+ Short Term Borrowings BS_ST_BO 251
+ Other Short Term Liabilities BS_OTHER_ 4,574
Total Long Term Liabilities NON_CUR_L 339

+ Long Term Borrowings BS_LT_BO 339
+ Other Long Term Borrowings BS_OTHER_L 0
Total Liabilities BS_TOT_LI 9,817

+ Long Preferred Equity BS_PFD_EQ 0
+ Minority Interest MINORITY_ 111
+ Share Capital & APIC BS_SH_CAP 10,359
+ Retained Earnings & Other Equity BS_RETAIN 20,678
Total Shareholders Equity TOT_SHRH 31,148
Total Liabilities & Equity TOT_LIAB_ 40,965
Book Value Per Share BOOK_VAL_ 24

Tangible Book Value Per Share TANG_BOOK 23
Cash Flows
Net Income CF_NET_IN 6,907
+ Depreciation & Amortization CF_DEPR_A 2,515
+ Other Non-Cash Adjustments CF_OTHER_ 693
+ Changes in Non-Cash Capital CF_CHNG_ (2,468)
Cash From Operating Activities CF_CASH_F 7,647
+ Disposal of Fixed Assets CF_DISP_FI 40
+ Capital Expenditures CF_CAP_EX (4,106)
+ Increase in Investments CF_INCR_I 0
+ Decrease in Investments CF_DECR_I 3,577
+ Other Investing Activities CF_OTHER_ (82)
Cash From Investing Activities CF_CASH_F (571)
+ Dividends Paid CF_DVD_PA (5,890)

+ Change in Short Term Borrowings CF_INCR_S 72
+ Increase in Long Term Borrowings CF_INCR_L 0
+ Decrease in Long Term Borrowings CF_REIMB_ (1,356)
+ Increase in Capital Stocks CF_INCR_C 884
+ Decrease in Capital Stocks CF_DECR_C 0
+ Other Financing Activities CF_OTHER_ 0
Cash From Financing Activities CF_CASH_F (6,290)
Net Changes in Cash CF_NET_CH 786
Free Cash Flow (CFO-CAPEX) CF_FREE_C 3,541
Free Cash Flow To Firm CF_FREE_C 3,595

Free Cash Flow To Equity FREE_CASH 2,296
Free Cash Flow per Share FREE_CASH 2.75
Ratio Analysis
Valuation Ratios
Price Earnings PE_RATIO 23.48
EV to EBIT EV_TO_T12 18.18
EV to EBITDA EV_TO_T12 13.84
Price to Sales PX_TO_SAL 3.55
Price to Book PX_TO_BOO 5.26
Dividend Yield DIVIDEND_ 0.03
Profitability Ratios
Gross Margin GROSS_MA 0.45
EBITDA Margin EBITDA_TO 0.23
Operating Margin OPER_MAR 0.18
Profit Margin PROF_MARG 0.15
Return on Assets RETURN_ON 0.16
Return on Equity RETURN_C 0.21
Leverage & Coverage Ratios

Current Ratio CUR_RATIO 3.26
Quick Ratio QUICK_RAT 2.84
Interest Coverage Ratio (EBIT/I) INTEREST_ 138.62
Tot Debt/Capital TOT_DEBT_ 0.02
Tot Debt/Equity TOT_DEBT_ 0.02
Others
Asset Turnover ASSET_TU 1.09
Accounts Receivable Turnover ACCT_RCV_ 6.22
Accounts Payable Turnover ACCOUNTS_ 5.92
Inventory Turnover INVENT_TU 80.09
Effective Tax Rate EFF_TAX_R 0.07

scal Year
-9FY -8FY -7FY -6FY -5FY -4FY -3FY -2FY
6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14
G_STANDARD
60,687 75,628 102,294 121,363 157,304 208,306 255,811 321,437

33,575 41,905 59,118 76,159
27,113 33,722 43,177 45,204

17,303 20,734 26,242 29,960 134,750 176,457 205,455 247,423
121 194 554 550 1,106 1,678 1,579 1,527
9,810 12,988 16,935 15,245 22,555 31,848 50,355 74,014

45 135 542 1,618 1,412 1,166 808 928
(3,465) 2,880 2,391 (42) 115 397 (445) 441
(1,050) (1,855) (2,037) (1,056) (324) (1,769) (2,704) (6,729)
14,280 11,829 16,038 14,724 21,351 32,055 52,697 79,374

1,041 1,290 2,843 2,134 4,885 7,827 12,253 14,096
13,239 10,538 13,195 12,590 16,466 24,228 40,444 65,278

- - - - - - - -
56 24 (2) (2) 1 1 43 183
9.73 7.68 9.74 9.14 11.81 17.22 28.60 45.97
13,183 10,514 13,196 12,592 16,465 24,227 40,401 65,095

10.10 7.91 9.86 9.35 12.05 17.53 29.08 46.59
4.00 4.50 3.50 2.00 3.75 6.00 6.00 5.00
39.83 56.93 35.59 21.48 31.25 34.28 20.68 10.74
1327 1333 1341 1358 1377 1387 1394 1400

1,355 1,370 1,354 1,378 1,395 1,407 1,413 1,416
13,608 17,027 21,251 19,924 27,152 37,341 56,723 80,822
ne-time charges.
29,766 37,475 58,620 67,283 66,566 90,953 126,335 193,296
2,958 3,886 3,917 4,691 5,213 6,743 7,183 9,512
7,788 7,703 15,073 18,907 17,312 18,172 34,836 83,864
11,011 15,864 21,751 25,211 26,113 38,757 44,972 56,828
373 707 1,696 652 1,664 2,262 2,315 1,223
7,636 9,316 16,184 17,824 16,265 25,020 37,030 41,870
23,444 30,565 59,015 58,744 72,440 92,425 97,658 106,501

11,398 12,293 400 500 949 1,270 859 0
17,992 23,027 29,973 35,171 40,844 49,279 54,173 62,916
8,026 10,649 14,700 17,445 20,189 24,314 27,309 31,031
9,966 12,377 15,274 17,725 20,655 24,965 26,864 31,885
2,080 5,895 43,341 40,519 50,836 66,190 69,936 74,616
11,885 25,823 67,236 41,576 40,638 65,532 74,722 92,418

5,921 9,695 20,138 17,888 2,770 4,694 4,014 4,685
282 209 29,221 5,716 5,315 11,022 2,477 8,174
5,683 15,919 17,877 17,972 32,553 49,815 68,232 79,559
487 341 941 21,527 21,801 19,457 17,184 11,308

487 341 941 21,527 16,558 10,772 7,967 2,006
0 0 0 0 5,243 8,685 9,217 9,301
12,372 26,164 68,177 63,102 62,439 84,989 91,907 103,725

0 0 0 0 0 0 0 0
166 66 30 37 37 11 447 573
13,022 13,432 14,071 15,748 17,930 19,112 20,082 20,816
27,651 28,378 35,357 47,141 58,600 79,267 111,558 174,682
40,838 41,876 49,458 62,925 76,567 98,389 132,087 196,072
53,210 68,040 117,635 126,027 139,006 183,378 223,993 299,797
31 31 37 46 56 71 94 140
30 29 8 19 28 38 62 105
13,183 10,514 13,196 12,592 16,465 24,227 40,401 65,095

3,799 4,039 4,316 4,680 4,597 5,492 6,368 6,809
(244) (1,868) (54) (764) 2,120 4,964 888 (431)
(5,880) 1,254 (5,830) 1,706 (5,520) (8,310) (1,495) (2,441)
10,857 13,938 11,628 18,213 17,662 26,373 46,162 69,033
21 75 78 148 30 36 16 607
(3,897) (5,543) (6,388) (6,468) (7,851) (9,094) (6,187) (7,196)
0 0 (16,318) (106,784) (71,739) (62,515) (86,202) (78,520)
0 0 21,345 102,893 61,118 49,804 47,511 79,853
396 1,051 (34,294) (1,644) 10,241 9,525 19,331 (48,154)
(3,479) (4,417) (35,578) (11,856) (8,201) (12,244) (25,531) (53,410)
(5,992) (6,323) (7,089) (3,152) (5,179) (8,031) (8,083) (13,028)

31 (88) 0 0 (3,505) 4,922 (3,438) 735
100 79 40,213 27,404 121 237 651 113
(221) (251) (10,425) (31,157) (1,607) (8,766) (9,580) (700)
2,272 314 201 1,040 896 391 336 345
0 0 0 0 0 0 0 0
(87) 254 380 298 336 (1,353) (76) (22)
(3,897) (6,015) 23,281 (5,567) (8,938) (12,600) (20,190) (12,557)
3,481 3,506 (669) 791 523 1,530 440 3,065
6,961 8,396 5,241 11,745 9,811 17,279 39,975 61,837
7,002 8,516 5,687 13,128 10,900 18,160 40,595 62,600

6,893 8,210 35,107 8,140 4,851 13,708 27,624 62,593
5.33 6.32 3.92 8.72 7.18 12.50 28.77 44.26
17.03 15.96 9.43 19.48 20.54 13.59 13.34 16.10

22.27 12.11 8.02 16.46 15.08 10.27 10.12 13.07
16.05 9.24 6.39 12.59 12.53 8.76 8.98 11.97
3.70 2.22 1.22 2.02 2.15 1.58 2.11 3.26
5.61 4.02 2.52 3.93 4.45 3.36 4.11 5.37
0.02 0.04 0.04 0.01 0.02 0.03 0.02 0.01
0.45 0.45 0.42 0.37 0.00 0.00 0.00 0.00

0.22 0.23 0.21 0.16 0.17 0.18 0.22 0.25
0.16 0.17 0.17 0.13 0.14 0.15 0.20 0.23
0.22 0.14 0.13 0.10 0.10 0.12 0.16 0.20
0.28 0.17 0.14 0.10 0.12 0.15 0.20 0.25
0.37 0.25 0.29 0.22 0.24 0.28 0.35 0.40
2.50 1.45 0.87 1.62 1.64 1.39 1.69 2.09

1.83 1.06 0.61 1.17 1.20 0.97 1.16 1.63
220.44 96.35 31.23 9.42 15.97 27.32 62.34 79.72
0.02 0.01 0.38 0.30 0.22 0.18 0.07 0.05
0.02 0.01 0.61 0.43 0.29 0.22 0.08 0.05
1.29 1.25 1.10 1.00 1.19 1.29 1.26 1.23

6.16 5.63 5.44 5.17 6.13 6.42 6.11 6.32
6.38 5.41 4.03 3.95 0.60 1.80 2.22 2.11
110.73 77.60 49.21 64.89
0.07 0.11 0.18 0.14 0.23 0.24 0.23 0.18

Equivalent Estimates
-1FY -0FY 1FY 2FY 3FY
6/15 3/16 3/17E 3/18E 3/19E
367,012 468,988 524,183 577,288
157,139 176,456 189,703

286,313
1,818
80,699 93,467 104,249 116,548

703
(699)
(10,875)
91,570 103,259 114,763 126,685

18,151
73,419
-
248
51.79
72,540 74,260 81,213 89,909 98,486

51.64 52.65 57.39 63.34 69.33
18.00 23.39 25.47 28.28
32.60 0.41 0.40 0.41
1406 1410
1,413
84,736 101,823 113,275 124,062

230,468 248,602
12,163 92,415
92,103 5,347
65,387 76,818
1,576 2,645
59,240 71,376
121,979 144,835
99 157
72,179 77,631
32,627 33,404
39,552 44,227
82,328 100,452
99,451 101,597
6,254 6,996
4,799 3,681
88,398 90,920
9,931 15,782
1,679 7,374
8,252 8,408
109,382 117,379
0 0
821 3,116
21,624 22,451
220,620 250,490
243,065 276,058
352,447 393,437
172 194 228 262 293

138 150
73,171 81,144 89,731 98,198

4,038
(1,807)
(11,880)
63,521
65
(12,082) (26,916) (18,727) (17,673)
(166,551)
81,450
68,617
(28,501)
(28,244)
1,253
906
(5,440)
105
0
(486)
(31,907)
3,113
51,439 BEST_CALCULATED_FCF
52,003
48,223
36.62
17.66 14.1x 12.8x 11.7x

14.82
14.12 11.2x 10.0x 9.2x
3.52 2.4x 2.2x 2.0x
5.34 4.21 3.6x 3.1x 2.8x
0.02 0.0x 0.0x 0.0x
0.00 0.00 0.3x 0.3x 0.3x

0.23 0.00 0.2x 0.2x 0.2x
0.22 0.00 0.2x 0.2x 0.2x
0.20 0.00 0.2x 0.2x 0.2x
0.22 0.00 0.2x 0.2x 0.2x
0.33 0.00 0.3x 0.3x 0.2x
2.32 2.45
1.71 1.72
114.78
0.03 0.04
0.03 0.04
1.13
6.01
0.20 0.00

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In Millions of INR

Perpetuity Growth Method

Revenue (Estimate Comparable)

BEst Consensus Revenue

Revenue YoY growth

(-) Cost of Revenue

BEst Consensus Gross Margin

>> Input (%)

Gross Margin YoY Change

BEst Consensus Implied Opera

>> Input (%)

5 Year Rolling Average Effectiv

>> Input (%)

Estimated Tax on Operating Inc

BEst Consensus Implied Depre

BEst Consensus Capital Expen

Capex as a % of Revenue YoY c

5 Year Rolling Average

Change in NWC as a % of Reve

(+) Changes in Net Long Term Deferred Tax Liabilities

Change in Net LT Def Tax Liab

(+) Other User Estimated Non-Cash Adjustments

(=) Free Cash Flow

Free Cash Flow Margin YoY Cha

% of the Free Cash Flow to be discounted

EBITDA Margin YoY Change

tuity Growth Method - Value per Share

Present Value of Perpetuity (@ 12.1% WACC)

Short Term Debt

ity Growth Method - Sensitivity Analysis

Jun 11 A Jun 12 A Jun 13 A Jun 14 A Jun 15 A Mar 16 A Mar 17 E

EBITDA Multiple Method

Input Peers Px Implied Tgt Implied Default

Jun 11 A Jun 12 A Jun 13 A Jun 14 A Jun 15 A Mar 16 A Mar 17 E

Highlight estimates if Less than Greater than

Highlight estimates if Less than Greater than

Highlight estimates if Less than Greater than

31% 16% 20% 17% 40% -84%

Highlight estimates if Less than Greater than

17,394 24,072 38,647 60,870 64,703 - 77,531

19% 16% 7% -41% -100%

Highlight estimates if Less than Greater than

16% -32% 16% 68% -100%

Highlight estimates if Less than Greater than

Highlight estimates if Less than Greater than

16,867 17,659 38,285 56,876 40,785 (21,373) 47,494

Highlight estimates if Less than Greater than

5% 117% 49% -28% -152% -322%

Highlight estimates if Less than Greater than

38% 52% 42% 5% -100%

EBITDA Multiple Method - Value per Share

620,892 Present Value of Termina

3,681 Short Term Deb

1,411 Shares outstanding

EBITDA Multiple Method - Sensitivity Analysis

Enterprise Value in Millions of INR

Implied Exit EV / EBITDA Multiple