Areva's Report

8/6/2019 Areva's Report

1/13Areva T&D India Ltd ACMIIL

Areva T&D India Ltd.

AnalystPurvi Gorashia

[email protected]

Tel: (022) 2858 3403

Key Data (INR)CMP 1631

Target Price 1795

Key Data

Bloomberg Code ATD IN

Reuters Code AREV.BO

BSE Code 522275

NSE Code AREVAT&D

Face Value (INR) 10

Market Cap. (INR Bn.) 77.99

52 Week High (INR) 328052 Week Low (INR) 1199

Avg. Daily Volume (6m) 26332

1Year Beta (Sensex) 0.85

Shareholding %

Promoters 72.2

Indian Institutions 11.5

Foreign Institutional Investors 1.5

Private Corporate Bodies 3.0

Individuals & Others 11.8

Total 100.00

(INR Mn) CY07 CY08E CY09E

Net Turnover 20062.7 25868.9 34923.0

Operating Profit 3574.6 4460.0 6159.9

OPM (%) 17.8 17.2 17.6

PAT 2163.0 2733.3 3576.6

PAT Margin (%) 10.8 10.6 10.2

EPS (Rs.) 45.2 57.2 74.8

30 July, 2008

H O L D

Background

Areva T&D (India) Ltd, is a subsidiary of Areva T&D (France), a leading player in

transmission & distribution (T&D) business, globally. Formerly Alstom Ltd., the

company was taken over by Areva T&D in 2005 as Areva took control of Alstoms

world-wide T&D business.

Areva T&D India Ltd. is among the top three T&D players in India. The company

is engaged in providing products and systems to transmit and distribute electricity,

manage smooth energy ows and operate efcient networks through information

management. Its product offerings include power & distribution transformers,

switchgears, circuit breakers and products in the area of energy automation. Thecompany offers high-end T&D solutions such as 765 KV and HVDC transmission

projects and Gas Insulated Substations.

Highlights:

With increase in unit sizes of the power projects and requirement of power

transmission over longer distances, the demand for power transmission at higher

voltage levels and technological requirements are expected to increase.

Areva T&D Indias ability to offer high-end solutions can be attributed to its

access to the parents global R&D pool. The company claims a smooth technology

transfer process with its parent.

To cater to the increasing demand for its existing product line and manufacturing

Extra High Voltage equipments, Areva T&D India is expanding its product range

to cater to the expected pick up in demand from these areas.

Companys performance in terms of order intake during H1 of the current year

improved signicantly. Order book increased to Rs. 39.3 Bn at the end of H1

CY08, from Rs. 20.3 Bn at the end of H1 CY07, registering an increase of 93%

YOY. Order intake during Q2 CY08 was of the order of Rs. 15 Bn with some

signicant orders, like an order for Mundra UMPP. Company claims that it is a

market leader in terms of order intake during H1 CY08.

Outlook and Valuation

Strengthening of T&D infrastructure, increase in demand for higher voltage levels

and high-end technology offer good opportunities to the company with support from

its global parent. Capacity expansion coupled with healthy order inow are expected

to result in 32% CAGR in revenues and 29% CAGR in net prot over CY07 to

CY09E. At the CMP of Rs 1631, the stock trades at P/E multiple of 21.8 times its

CY09E EPS of Rs.74.8. We initiate coverage on the stock with Hold recommendation

and price target of Rs 1795, which is equivalent to P/E multiple of 24 times to its

CY09E EPS.



Industry

Development of power Transmission and Distribution (T&D) infrastructure is carried

out in tandem with growth in generation capacities. T&D infrastructure is developed

particularly for, evacuation of power from power generating utilities and strengthening

the T&D system for smooth and reliable ow of power to the consumers. During

Eleventh ve year plan (2007-12), emphasis is expected to be given to strengthening

of inter regional transmission capacity or National Grid of the country. Similarly, intra

state transmission system development at 220kV and 132kV and sub-transmission

and distribution system is planned.

National Grid with higher capacities is expected to enable adequate utilisation of

thermal generation potential of coal rich eastern region, and hydro generation potential

of north-east region, mainly for the power decit western and northern region. For

instance, according to planning commissions estimates, untapped hydro potential

in North Eastern region for development during the 11th plan and beyond is of the

order of 35000 MW. Taking into account the local demand of North East region,Sikkim and Bhutan, the transmission capacity required for carrying power to the

decit regions works out to around 45000 MW.

Inter-regional transmission capacity of 17,000 MW exists as on December 2007.

Power Grid Corporation of India (PGCIL) plans to increase it to 37,150 MW by the

end of 11th Plan. Thus, addition of around 20000 MW of inter regional transmission

capacity is planned by 2012. Transmission system within the regions to support the

inter-regional transmission capacity is also planned.

The government estimates the investments in transmission sector to be at Rs 1400Bn

during the Eleventh Plan. Inter State and Inter Regional Transmission system will be

developed by PGCIL, and private players/ SEBs in association with PGCIL. Intra

State Transmission will be developed by respective states. While most of the inter

state and inter regional transmission will be carried at 400 KV and above, intra state

transmission will be in the range of 220 KV to 66 KV.

Government is encouraging investments at distribution level to increase the access

to reliable power supply and reduce technical and commercial losses in the system

through schemes like APDRP. Government is soon expected to announce APDRP 2

with an increased outlay of Rs. 500 Bn, against Rs.400 Bn of planned outlay in the

rst phase.

Planned investments towards T&D system and related schemes during eleventh plan:

Rs BnInter State system 750

Intra State system 650

Sub Transmission and Distribution, APDRP &Other schemes 2370

Source: Working group on Power

Source: ACMIIL Research

Emphasis to strengthening

inter regional transmissioncapacity

Government expected to

announce APDRP 2 with an

increased outlay



As a thumb rule, around 50% of the investments in a transmission system go towards

setting up of the transmission lines while the balance 50% goes towards setting up

substations part of the transmission system. However this ratio is subject to change, and

may vary depending on amount of power to be transferred and technology in use.

Apart from utilities, T&D related investments also come from industrial capex.

Investments in industries such as steel, oil rening, cement and paper are signicant

drivers of T&D investments in an economy.

Investments in Power sector are a priority

Investments in Power sector are a priority with the government for sustaining

economic growth momentum as well as achieving its agship programme of power

for all by 2012.

The overall growth of T&D can be related to growth in generation capacities, apart

from the requirements for strengthening the T&D system. The government has targeted

achieving a cumulative generation capacity of 207,000 MW by 2012. Generation

capacity addition target for the 11th plan (2007-12) is 78,577 MW. Looking at capacity

under construction at the beginning of the 11th plan, around 50,000 MW of capacity

addition is expected to be achieved during the 11th plan.

Opportunity in High-end Technology

In order to address issues related to, frequency mismatch in various regions (in case

of inter regional transmission), and reduce the technical losses during transmission,

PGCIL is increasingly adopting HVDC technology and 765 KV transmission systems

for inter-regional transmission lines. Also, with increase in higher size generation

projects coming up, e.g. mega and ultra mega power projects, requirement for power

evacuation at higher voltage is expected to increase.

765kV, HVDC, 400kV and 220 kV transmission line and substation programme for

the 11th Plan period:

Few players in the high-end bracket

Major players in the high-end T&D, ie 400 KV and above include, ABB, Siemens,

Areva T&D India, Crompton Greaves and BHEL. Out of these only ABB, Siemens,

Areva T&D India and Crompton Greaves are present in the 765 KV range. Crompton

Greaves is mainly present in the transformers segment and not the EPC segment.

In line with the planned investments in 765 KV,HVDC and 400 KV transmission lines,

the investments in substation projects and high voltage transformers are expected to

pickup over next 2-3 years.

ckm (circuit km), Source: Power Ministry

Around 50,000 MW of capacity

addition is expected to be

achieved during the 11th plan

PGCIL is increasingly adopting

HVDC technology and 765 KV

transmission systems



Large projects by PGCIL

To put it in perspective:

According to industry, PGCIL projects for around 13-14 Extra High Voltage sub

stations are expected to come up for tendering in next one year. Out of which 3-4

substation tenders may to come during CY08. Prominent players in substation

segment of 765 KV are ABB, Areva T&D India and Siemens with Areva T&D India

setting up countrys rst 765 KV substation for NTPCs Sipat project.

Currently HVDC project for transmitting power through the chicken-neck area is under

tendering. The project cost for HVDC substations is estimated at around Rs 45 Bn.

Large sized projects by PGCIL, investments by SEBs for developing T&D

infrastructure, industrial investments sustaining the momentum and increased focus

on exports market can result in healthy order ow for the players in the industry

over next 2-3 years.

Areva T&D India Ltd.

Background

Areva T&D (India) Ltd, is a subsidiary of Areva T&D (France), a leading player

in T&D business, globally. Formerly Alstom Ltd., the company was taken over by

Areva T&D in 2005 as Areva took control of Alstoms world-wide T&D business.

Areva group, apart from T&D, has strong presence in Nuclear Power and is the

global leader in this area.

Areva T&D India Ltd is among the top three transmission & distribution (T&D)

players in India. The company is engaged in providing products and systems to

transmit and distribute electricity, manage smooth energy ows and operate efcient

networks through information management. Its product offerings include power &

distribution transformers, switchgear and circuit breakers and products in the area

of energy automation. The company offers high-end T&D solutions such as 765 KVand HVDC transmission projects and Gas Insulated Substations. Company caters

to both, private and the public sector clients. The Company has a network of eight

manufacturing units and twenty-two sales ofces in India with an employee base

of around 3600.

Business

Areva T&D India divides its business in verticals like, Systems, Products,

Automation, and Services.

Products

Companys Products segment comprises of Power Transformers, Instrument

Transformers, Circuit breakers and Medium Voltage Switch Gears. The company

is present in products of upto 765 KV. Areva T&D mainly focuses on Medium

Voltage (MV) to Extra High Voltage (EHV) products.

EHV Products: 132 KV and above

HV Products: 66 KV and Above

MV Products: 33 KV and Below

LV Products: 11 KV and Below (Not present)

Systems

Under this segment the company undertakes turnkey projects like building

substations and switchyards. The company is also present in high-end areas like

765 KV substations, HVDC Substations and Gas Insulated Substations.

Among the top three T&D

players in India

Offers high-end T&D solutions



Automation

Automation segment comprises of hardware and software for managing energy

ows from Load Dispatch Centres. It includes Supervisory Control and Data

Acquisition (SCADA) used for managing smooth energy ows from a centralised

location.

Services

This segment comprises services for network planning and after sales services

for products and systems business.

Some Major projects ordered on Areva T&D India

Maharashtra State Electricity Transmission Co. Ltd. (MSETCL)s rst Gas

Insulated Switchgear (GIS) complete turnkey solutions order

Order from Power Grid Corporation of India to establish the national load dispatchcenter (NLDC). The project included planning, design, engineering and supply of

the state-of-the-art hardware and software implementation of the NLDC. The load

dispatch centre will provide real time data acquisition and schedule and dispatch

electricity to ve Regional Load Dispatch Centres. Apart from NLDC, three

Regional load dispatch centers out of the ve are set up by Areva T&D India.

Order from ESSAR Constructions (India) Ltd for Electrical Balance of Plant

(e-BOP) and equipments for Essar Powers power plant projects in Gujarat and

Madhya Pradesh. The scope included Design, Engineering, Supply and Erection

of 400 kV class Generator Transformers, Switchyards with equipments like

Extra High Voltage Breakers, SCADA, Generator Circuit Breakers, Distribution

Transformers, etc. e-BOP offers the advantage of reducing complexity in

coordination and improving project delivery time for the client.

765 KV AIS (air insulated substation) for NTPCs Sipat project in 2007 rst

765 KV substation in India

Contract from its parent to execute a part of the order received from Kahramaa,

(Qatar). Areva T&D Indias share in the contract is worth Euro 86 Mn (around

Rs. 5000 Mn) out of full contract value of Euro 500 Mn for turnkey execution of

14 gas-insulated substations (GIS) of 66KV.

The company setup Indias frst

765KV substation for NTPC

Source: Company



Order intake during H1 of the

current year improved further

High-end technology offered through access to Arevas global R&D pool

Areva T&D India has been a leader in localizing the high-end T&D technology in

many areas. The company will be the rst to offer Gas Insulated Substations (GIS)

from domestic operations, which offers advantages of compactness, modularity andreliability.

The company has setup Indias rst 765KV substation for NTPCs Sipat project. It

setup the national load dispatch center for PGCIL.

A part of Areva T&D Indias ability to offer high-end solutions, can be attributed to

its access to the parents global R&D pool. The company claims a smooth technology

transfer process with its parent.

Diversified client base

For CY07, 60 % of the revenues came from clients in public sector. Company also

has strong focus on private sector, with around 26% of CY07 revenues from this

segment.

From the public sector, Arevas clients include SEBs, central power utilities like

NTPC, NHPC and PGCIL. Major clients from private sector include Reliance Energy,

Essar , Lanco, Adani and Tata group. Company also has signicant presence in

exports markets, particularly in Middle East and Africa. Company plans to increase

the contribution of exports to around 25% of its revenues.

Order Book: Higher by 93% YOY

Companys performance in terms of order intake during H1 of the current year

improved further. While, order book of Rs.27.5 Bn at the end of CY07 was 46%

higher than order book of Rs 18.7 Bn at the end of CY06, it increased to Rs. 39.3

Bn at the end of H1 CY08, from Rs. 20.3 Bn at the end of H1 CY07, an increase of93% YOY. Order intake during Q2 CY08 was of the order of Rs. 15 Bn as compared

with Rs.8 Bn during Q1 CY08. Company claims that it was a market leader in terms

of order intake during H1 CY08..

Source: Company

Source: Company

Support from global parent



Order-book breakup: CY07

Expansion of capacities and capabilitiesTo cater to the increasing demand, the company has over the years, reorganized

layouts of its factories resulting in increase in production capacities.

During CY07, the company started a programme for expanding its capacities and

localizing high-end technology.

To cater to the increasing demand for its existing product line and manufacturing Extra

High Voltage equipments, in anticipation of demand from upcoming investments in

higher voltage segment, AREVA T&D India has taken up 3 new Greeneld projects

in Baroda (Gujarat), Hosur (Karnataka) & Padappai (Tamil Nadu) during CY07.

These facilities are expected to be operational by December, 2008.

Baroda facility will manufacture Power transformers up to 765 kV and eventuallyup to the 1200 KV range. It will also house companys second manufacturing

facility for Distribution transformers and Medium voltage switchgears. This

facility is expected to involve a capital expenditure of Rs. 5 Bn.

Hosur facility (near Bangalore) will manufacture Instrument transformers up to

765 kV and eventually up to the l200 kV range. It will also house R&D centre

for Instrument Transformers, to support groups global operations. This facility

is expected to involve a capital expenditure of Rs. 1 Bn.

The site at Padappai (near Chennai) will manufacture Circuit breakers up to 765

kV and eventually up to the l200 KV. The site will also manufacture High Voltage

GIS Switchgears as well as Disconnectors. This facility is expected to involve acapital expenditure of Rs. 1 Bn.

The company plans to enhance the facilities to produce 1200 kv equipment by 2010.

According to the company, with the expansions, Transformers manufacturing

capacity will increase from 15000 MVA, to 50000 MVA p.a. while Circuit Breakers

and Switch gears capacity will more than double.

Parent:Global leader in nuclear energy

Areva (France) is a global leader in providing technological solutions for nuclear

power generation. It covers all industrial activities related to nuclear power generation,

from uranium exploration and mining, enrichment and fabrication of uranium to

design and construction of nuclear reactors, and recycling of nuclear fuel.

Although the group is exploring the potential opportunities in Indias nuclear power

development, the role of groups Indian subsidiary, Areva T&D India in the same

is not clear.

Expanding capacities and

localizing high-end technology

Source: Company



Financial Analysis

Sales and Margins: Over the period of last 3 years, (January 2005 to December

2007), companys sales has increased at a CAGR of 37%. During the period, company

has moved out of non-core businesses, and merged group entities in similar line of

business with itself. Company has improved its operational performance by moving

out of non-core businesses, cost control, rationalizing manpower and improvement

in processes and factory layouts. Coupled with this, increase in scale of operations

has led to improved performance in terms of protability. resulting in companys

PAT growth at a CAGR of 122% over the period.

We expect the company to register a CAGR of 32% in revenues from CY07 to CY09.

During the same period, we expect a CAGR of 29 % in its in net prots.

Raw material prices: The company manages its raw material cost, partially by

entering into supply contracts with the vendors as the contacts are received, and

partially through Price Variation Clause available in case of public undertakings.

Raw material cost for the company ( % to sales) reduced from 67.6% in CY06 to63.2% in CY07.

Interest cost for Capex: Company has undertaken capacity expansion programme

through 3 green eld projects, involving capex of Rs. 7 Bn. Capex is expected to

be funded largely through debt, due to which we expect gearing of the company to

increase from negligible levels in CY06 to 0.7 times in CY08, resulting in higher

interest out go for the company. We expect the companys debt to equity ratio to

reduce to 0.4 times during CY09, as new facilities start its operations.

Debtors days : Companys debtors turnover ratio decreased to 2 times at the end of

CY07 from 2.6 times at the end of CY06, resulting in higher requirement of working

capital. Company attributes a part of this to higher revenue booking during the last

quarter of the accounting period and expects to improve it going forward. However,

we have estimated a marginal improvement in debtors turnover to 2.2 times during

CY09.

Performance during H1 CY08: During H1 CY08, the companys net sales grew by

50% to Rs. 11.2 Bn from Rs.7.5Bn during H1 CY07. The operating margin improved

from 15.5% to 17.7% in H1 CY08, while net margin increased to 10.6% compared

with 9.7% during H1 CY07. Net prot for H1 CY08 increased to Rs. 1187 Mn from

Rs. 731 Mn , registering an increase of 62%.

Concerns

Slow implementation of T&D schemes by the public sector and down turn inindustrial capex due to reasons like increasing interest rate scenario and slow

demand growth may lead to slow down in order inow or project execution, in

turn affecting companys performance.

Debtors turnover has reduced during CY07. Going forward, the company expects

to improve the same. However, no improvement in the same can put pressure on

companys cash ows.

The company expects to insulate it self from uctuations in raw material prices

with PVC clauses and supply agreement with vendors, however increase raw

material prices may put more than expected pressure on companys margins.

We expect the company to

register a CAGR of 32% in

revenues from CY07 to CY09

During H1 CY08 net sales grew

by 50%



Outlook and Valuation

Strengthening of T&D infrastructure, increase in demand for higher voltage levels

and high-end technology offer good opportunities to the company with support from

its global parent. Capacity expansion coupled with healthy order inow are expected

to result in 32% CAGR in revenues and 29% CAGR in net prot over CY07 to

CY09E. At the CMP of Rs 1631, the stock trades at P/E multiple of 21.8 times its

CY09E EPS of Rs.74.8. We initiate coverage on the stock with Hold recommendation

and price target of Rs 1795, which is equivalent to P/E multiple of 24 times to its

CY09E EPS.


10/13Areva T&D India Ltd ACMIIL 0

Profit & Loss Account (INR Mn)

CY06 CY07 CY08E CY09E

Net Turnover 16058.1 20062.7 25868.9 34923.0

Operational Expenditure 13960.2 16488.1 21408.9 28763.1Operating Profit 2097.9 3574.6 4460.0 6159.9

Other Income 150.9 177.9 232.8 314.3

Depreciation and Amortization 186.8 231.2 316.0 615.0

EBIT 2062.1 3521.2 4376.8 5859.2

Interest 44.0 84.9 250.7 356.7

Profit Before Tax before extra ordinary items 2018.0 3436.3 4126.1 5502.5

Less: Extra ordinary items -70.7 4.5 -79.0 0.0

Profit before Tax 2088.8 3431.8 4205.1 5502.5

Less: provision for Taxation 718.6 1268.8 1471.8 1925.9

Profit After Tax 1370.2 2163.0 2733.3 3576.6

Source: ACMIIL Research & Company

Balance Sheet (INR Mn)


Share Capital 478.2 478.2 478.2 478.2

Reserves & Surplus 3356.7 5015.3 7245.4 10318.9

Share Holders funds 3834.9 5493.5 7723.6 10797.1

Loan Funds 33.2 1012.1 5112.1 4250.0

Total Sources of Funds 3868.1 6505.5 12835.7 15047.1

Gross Block 2743.3 3587.0 8587.0 9087.0

Less Depreciation / Amortization to date 1709.0 1879.9 2195.9 2810.9

Net Block 1034.3 1707.1 6391.1 6276.1

Capital Work in Progress 99.7 586.2 500.0 250.0

Investments 96.5 0.0 0.0 0.0

Deferred Tax Assets 250.9 282.6 284.7 284.7

Current Assets, Loans and Advances 10193.8 14591.4 18210.9 23963.2

Current Liabilities & Provisions 7807.0 10661.7 12550.9 15726.9

Net Current Assets 2386.8 3929.7 5659.9 8236.3

Total Application of Funds 3868.1 6505.5 12835.7 15047.1




Cash Flow Statement (INR Mn)


Net Profit before Tax 2088.8 3431.8 4205.1 5502.5

Operating Profit before working capital changes 2377.5 3926.9 4692.8 6474.2Cash generated from operations 936.6 1542.8 3356.4 4115.9

Direct Taxes paid -687.4 -1114.3 -1471.8 -1925.9

Employee voluntary seperation scheme and related payments -28.7 -20.2 0.0 0.0

Net Cash from operating activities 220.5 408.3 1884.7 2190.0

Net Cash from Investing activities 105.6 -1263.1 -4829.8 -250.0

Net Cash from Financing activities -305.3 556.5 3345.8 -1721.9

Net Increase/ Decrease in Cash and Cash Equivalents 20.9 -298.3 400.6 218.1

Opening balance of cash and cash equivalents of transferor companies 88.8 0.0 0.0 0.0

Opening Balance of Cash and Cash Equivalents 412.1 521.8 223.5 624.1

Closing Balance of Cash and Cash Equivalents 521.8 223.5 624.1 842.2


Ratios


Profitability Ratios

Operating Margin % 13.1 17.8 17.2 17.6

EBIT Margin % 12.8 17.6 16.9 16.8

PAT Margin % 8.5 10.8 10.6 10.2

RONW/ROE % 35.7 39.4 35.4 33.1

ROCE % 53.3 54.1 34.1 38.9

Leverage Ratios

Debt/Equity 0.0 0.2 0.7 0.4

Debt Service Coverage Ratio 46.8 41.5 17.5 16.4

Turnover Ratios

Inventory Turnover 6.7 7.4 7.3 7.1

Debtors Turnover 2.6 2.0 2.1 2.2

Creditors Turnover 2.3 2.1 2.3 2.5

Fixed Asset Turnover 15.5 11.8 4.0 5.6

Valuation Ratios

EPS (Rs.) 28.7 45.2 57.2 74.8

CEPS (Rs.) 32.6 50.1 63.8 87.7

Book Value (Rs.) 80.2 114.9 161.5 225.8

P/E @ Rs.1631 56.9 36.1 28.5 21.8

P/CEPS @ Rs.1631 50.1 32.6 25.6 18.6

P/BV @ Rs.1631 20.3 14.2 10.1 7.2




History:

General Electric Company of India amalgamated with English Electric Company of India in Apr.93

GEC Alsthom India

Alstom Ltd.

Areva T&D India Ltd

GEC Alsthom India, was originally incorporated as General Electric Company of India (GECI) in 1911. GECI was amalgamated

with the English Electric Company of India (incorporated in 1957) in Apr.93, and the name was changed to GEC Alsthom

India. Name of the company was later changed to Alstom Ltd. and then to Areva T&D India Ltd from October 2005 as Areva

took control of Alstoms world-wide T&D business. In 2006 the company transferred its non T&D business (Meters & Motors)

to Alstom Industrial Products Ltd for a consideration of Rs.413 mn. Further the company merged its group entities in similar line

of business, like Areva T&D Systems India Ltd., Areva T&D Instrument Transformers India Pvt Ltd. and Areva T&D Lightning

Arresters Pvt Ltd. with it self.

ANNEXURE


13/13

Disclaimer:

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

any of its afliates 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 the report. ACMIIL and/or its afliates and/or employees may have interests/positions, nancial or otherwise in the securities mentioned in this report.

To enhance transparency we have 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 Areva T&D India Ltd

1. Analyst ownership of the stock NO

2. Broking Relationship with the company covered NO

3. Investment Banking relationship with the company covered NO

4. Discretionary Portfolio Management Services NO

This document has been prepared by the Research Desk of Asit C Mehta Investment Interrmediates Ltd. and is meant for use of the recipient only and is not for

circulation. This document is not to be reported or copied or made available to others. It should not be considered as an offer to sell or a solicitation to buy any security.

The information contained herein is from sources believed reliable. We do not represent that it is accurate or complete and it should not be relied upon as such. We

may from time to time have positions in and buy and sell securities referred to herein.

Notes:

HNI Sales:

Raju Mewawalla, Tel: +91 22 2858 3220

Institutional Sales:

Bharat Patel, Tel: +91 22 2858 3732

Kirti Bagri, Tel: +91 22 2858 3731Himanshu Varia, Tel: +91 22 2858 3732

Documents

Areva's Report