Q3FY22 Result Update

DLF Ltd. Strong Residential performance continues

DLF’s residential business continues to perform strongly, recording pre-sales of Deepak Purswani, CFA
INR2,018cr (up 97% YoY and 33% QoQ). With pre-sales of INR4,544cr in M9FY22, the Research Analyst
Deepak.Purswani@edelweissfin.com
management revised its guidance to around INR6,000–6,500cr for FY22. It also reported
strong cash surplus for the second consecutive quarter, with cash surplus of INR764cr
resulting in net debt reduction of INR765cr to INR3,220cr. Going ahead, the management
CMP INR: 403
expects to generate free cash flow of at least INR500cr in the coming quarters.
Furthermore, DCCDL’s rental income grew 7% YoY and 6% QoQ to INR872cr in Q3FY22. Rating: BUY
We reiterate our tactical BUY rating with a target price of INR478. Target INR: 478
Upside: 19%
Strong residential performance continues
DLF recorded pre-sales of INR2,018cr (up 97% YoY and 33% QoQ). In December 2021, DLF
launched the One Midtown project for which it received an overwhelming response. The
company has sold 7.7lakh sq ft thus far in Towers A and B (1.5mn sq ft) at average
realisation of INR19,000 per sq ft. The company seeks to launch Tower C (0.5–0.6mn sq ft)
in February 2021, with average realisation of INR21,000–21,500 per sq ft (hike of
INR2,000–2,500 per sq ft). With pre-sales of INR4,544cr in M9FY22, the management Bloomberg: DLF:IN

revised its guidance to around INR6,000–6,500cr for FY22. 52-week

232 / 450
range (INR):
Rental business boosted by retail recovery
M cap (INR cr): 98,901
DCCDL’s rental income grew 7% YoY and 6% QoQ to INR872cr, office rental increased 4%
QoQ to INR712cr and retail rental rose 32% QoQ to INR160cr in Q3FY22. The vacancy rate Promoter
74.95
reduced 100bps QoQ to 12%. The trend temporarily dipped in January due to Omicron but Holding (%)
is again picking up. The management expects it to come down 8–9% in Q1FY22.

Strong cash surplus for second consecutive quarter

DLF reported strong cash surplus in the residential business for the second consecutive
quarter, in addition to cash surplus of INR764cr vs INR954cr in Q2FY22 owing to strong
collection. Collection was healthy and grew 85% YoY to INR1,281cr. This resulted in net
debt reduction of INR765cr to INR3,220cr. Going ahead, the management expects to
generate free cash flow of at least INR500cr in the coming quarters.

Maintain tactical BUY with SOTP price target of INR477.

DLF plans to continue debt reduction through healthy collection with the sale of
completed inventory and strong launch pipeline in the residential business. DLF also enjoys
a disproportionate positive cash profile in the residential business with no significant
investment in landbank. The rental business recorded a temporary blip in January 2021
due to Omicron, but we expect the occupancy level to improve in the next two or three
quarters. The company is self-sustainable for expansion even in this business and will be
the key beneficiary when the commercial cycle recovers. Hence, we maintain our tactical
BUY rating on the stock with an SOTP price target of INR477 per share.

Key Parameters FY20 FY21 FY22E FY23E

Pre-sales (INR crore) 2,486 3,085 6,170 7,060
OCF (Dev Co) 538 609 2,736 1,804
Net Debt (Dev Co) 4,794 5,156 2,930 2,102
DCCDL Rental 3007 3029 3652 4353
Price/CF(x) 9.6 22.0 21.4 24.3
Date: February 03, 2022

Edelweiss Wealth Research 1

 DLF Ltd.
Q3FY22 Result Highlights

(INR Cr) Q3FY22 Q3FY21 YoY% Q2FY22 QoQ%

Net Sales 1,550 1,543 0% 1,481 5%
Operating Expenses 1,029 1,044 -1% 1,023 1%
EBITDA 521 499 4% 458 14%
Depreciation 37 39 -5% 37 0%
EBIT 484 460 5% 421 15%
Interest 146 198 -26% 176 -17%
Other Income 137 125 9% 76 81%
PBT 475 387 23% 321 48%
Tax 60 104 -42% 94 -36%
PAT 415 283 47% 226 83%
Minority Interest After NP 0 -2 -100% -1 -101%
Profit/Loss of Associate Company 190 166 14% 152 25%
PAT after Minority Interest & Associates Share 605 451 34% 379 60%
Exceptional items -224 0 0
RPAT 380 451 -16% 379
EPS 1.5 1.8 -16% 1.5
EBITDA Margin 33.6% 32.3% 30.9%
PAT Margin 39.0% 29.2% 25.6%
Tax rate (%) 3.9% 6.8% 6.4%

Operating Parameters
Residential (INR cr) Q3FY22 Q3FY21 YoY% Q2FY22 QoQ%
Pre-sales 2,017 1,022 97.4% 1,512 33.4%
Operating Cash Flows after interest & taxes 831 181 359.1% 1013 -18.0%
Net Debt (Residential) 3220 5100 -36.9% 3985 -19.2%

Commercial (DCCDL) (INR cr) Q3FY22 Q3FY21 YoY% Q2FY22 QoQ%

Leaseable Area 34.5 34.5 33.3
Occupancy (%) 88.0% 90.7% -269 bps 86.7% 133 bps
Total Revenues 1137 1059 7.4% 1088 4.5%
Source: Edelweiss Wealth Research

Edelweiss Wealth Research 2

 DLF Ltd.
Q3FY22 Result Highlights

Management Commentary
• Exceptional items of INR224cr were recorded on account of impairment of investee company Joyous Housing, a JV that owns
the project in Mumbai. The company has invested INR405cr thus far in this project. DLF focused only on incremental
investment in the project, while the remaining partners did not contribute. DLF also stopped investing in the project, resulting
in a default on the interest payment. Hence, on prudent basis, auditors has asked them to write the investment and has
partially written off Rs224 crore out of total investment of Rs403 crore were provided in Q3 FY22. DLF seeks to resolve the
issue with its partners and may increase its take in the project with rise in contribution.
 In terms of expansion in the annuity portfolio, structure work at Down Town Gurgaon is complete, aggregating 1.5mn sq ft,
which is pre-leased by over 90%. In terms of Down Town Chennai, construction on 3 mn sq ft is on track (completion by
October 2022).

Strong cash surplus for second consecutive quarter

 DLF reported strong cash surplus in the residential business for the second consecutive quarter.
 It reported cash surplus of INR764cr vs INR954cr in Q2FY22, led by strong collection. Collection recorded healthy growth of
85% YoY to INR1,281cr.

Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 FY21 FY22E FY23E

Inflow
Collection from sales 541 645 807 619 1403 1220 2,308 4,471 4,902
Rentals 40 48 64 12 45 61 202 163 205
Total Inflows 581 693 871 631 1448 1281 2,510 4,634 5,107
Outflow 0 0 0
Construction 207 232 394 109 117 121 905 1,059 1,455
Government / Land charges 16 31 123 105 19 172 202 0 0
Overheads 125 93 119 138 122 117 444 617 706
Marketing/Brokerage 39 20 24 11 38 42 111 185 212
Tax (net) -7 8 -304 -31 25 -74 -395 -450 632
Sub-total 380 384 356 332 321 378 1,267 1,411 3,005
Operating Cash Flow 201 309 515 299 1127 903 1,243 3,223 2,102
Finance cost (net) 138 128 211 108 114 72 634 488 298
Operating Cash Flow after Interest 63 181 304 191 1013 831 609 2,736 1,804
Capex outflow / Others 36 65 89 51 59 67 209 510 976
Net surplus / (shortfall) 27 116 215 140 954 764 400 2,226 828
Interim Dividend 17 0 0 0 195 0 17 195 0
Net surplus / (shortfall) 10 116 215 140 759 764 383 2,031 828
Source: Edelweiss Wealth Research

Edelweiss Wealth Research 3

 DLF Ltd.
Q3FY22 Result Highlights

Valuation
DLF plans to continue debt reduction through healthy collection with sale of completed inventory and strong launch pipeline in
the residential business. The company enjoys a disproportionate positive cash profile in the residential business with no
significant investment in landbank. The rental business recorded a temporary blip in January 2021 due to Omicron, but we expect
the occupancy level to improve in the next two or three quarters. The company is self-sustainable for expansion even in this
business and will be the key beneficiary when the commercial cycle recovers. Hence, we maintain our BUY rating on the stock
with an SOTP price target of INR477 per share.

Value
Segment Per share Remarks
(INR cr.)
DLF - Devco 76,220 308
Inventory + Receivables to be sold and collected over the next two
Residential - Completed projects 3,967 16
years

35msf of launch pipeline with revenue potential of INR30kcr (DLF

Upcoming launches 13,618 55
stake) at 50–55% cash flow margin discounted over 7–8 years

Commercial - Operational 3,008 12 FY23E EBITDA of about INR275cr at cap rate of 8%

Land bank - development 55,626 225 Carries a book value of nearly INR15,000cr and recorded in inventory
DCCDL 57,722 233
Commercial - Operational 36,316 147 FY23E EBITDA of about INR4357cr at cap rate of 8%
Commercial - Upcoming 4,709 19 Based on 10-year DCF
Land bank - DCCDL 16,697 67 Carries a book value of about INR10,000cr
Total GAV 1,33,942 541
Less: Net debt (15,659) (63)
Total NAV 1,18,283 478
Source: Edelweiss Wealth Research

Edelweiss Wealth Research 4

 DLF Ltd.
Q3FY22 Result Highlights

Previous Outlook

Q2FY22: DLF to continue with its debt reduction path through healthy collection with sale of completed inventory and strong
launch pipeline in the residential business. On the commercial business, vacancy rate are bottoming out and leasing enquiries has
picked up. Improving leasing environment and ramp up in rental capex cycle would be another trigger for DLF over next few year.
Hence, We maintain our BUY rating on the stock with SOTP price target of Rs477/share.

Tactical Buy: We valued DLF’s (a) completed and upcoming residential inventory using the NAV-based approach, (b) commercial
assets at 8% cap rate on FY23E EBITDA and (c) land bank using the discounted cash flow approach to arrive at an SOTP-based
price target of INR370 (44% upside). While the current market cap implies P/BV of 1.1x to DLF’s ~INR217bn (book value) residential
and commercial landbank, our land valuation approach implies a value of 2.4x to its BV (marginally lower than P/BV of 2.5–4x
during the previous upcycle over 2010–13). Thus, we consider sustained demand uptrend to be a likely re-rating trigger for DLF’s
landbank.

Q2FY22 Tactical Buy

Edelweiss Wealth Research 5

DLF Ltd. Financials

Income Statement (INR cr)

Year to March FY20A FY21E FY22E FY23E
Total operating income 6,083 5,414 8,486 11,975
Gross profit 2,702 2,565 5,031 5,842
Employee costs 357 314 333 353
Other expenses 1,211 833 883 936
EBITDA 1,135 1,418 3,815 4,553
Depreciation 200 160 677 705
Less: Interest expense 1,427 853 1,799 2,935
Add: Other income 805 531 536 542
Profit before tax 1,543 1,637 1,876 1,455
Prov for tax 2,133 362 525 407
Less: Other adj 0 0 0 0
Reported profit -583 1,286 1,362 1,060
Less: Excp.item (net) 340 -96.2 0 0
Adjusted profit -924 1,382 1,362 1,060
Diluted shares o/s 248 248 248 248
Adjusted diluted EPS -3.7 5.6 5.5 4.3
DPS (INR) 2 2 2 2
Tax rate (%) 138.2 22.1 28.0 28.0

Important Ratios (%)

Year to March FY20A FY21 FY22E FY23E
Selling price infl. (%) 7 7 7 7
Const. cost infl. (%) 5 5 5 5
Gross margin (%) 44.4 47.4 59.3 48.8
EBITDA margin (%) 18.7 26.2 45 38
Net profit margin (%) -15.2 25.5 16 8.8
Revenue growth (% YoY) -27.3 -11 56.7 41.1
EBITDA growth (% YoY) -47 24.9 169.1 19.3
Adj. profit growth (%) nm nm -1.5 -22.2

Valuation Metrics
Year to March FY20A FY21 FY22E FY23E
Diluted P/E (x) nm 71.6 72.6 93.3
Price/BV (x) 2.9 2.8 2.7 2.7
EV/EBITDA (x) 92.1 73.5 33.2 27.8
Dividend yield (%) 0.5 0.5 0.5 0.5

Edelweiss Wealth Research 6

DLF Ltd. Financials

Balance Sheet (INR cr)

Year to March FY20A FY21 FY22E FY23E
Share capital 495 495 495 495
Reserves 33,952 34,849 35,654 36,113
Shareholders funds 34,447 35,344 36,149 36,608
Minority interest 18.4 20.3 20.3 20.3
Borrowings 8,103 6,663 28,298 28,752
Trade payables 12,929 10,815 11,897 13,622
Other liabs & prov 393 645 645 645
Total liabilities 55,891 53,488 77,010 79,648
Net block 4,243 3,912 27,592 28,059
Intangible assets 944 944 944 944
Capital WIP 88.7 94.9 775 2,104
Total fixed assets 5,276 4,951 29,311 31,107
Non current inv 18,566 19,746 19,746 19,746
Cash/cash equivalent 2,420 1,407 399 1,066
Sundry debtors 720 581 679 719
Loans & advances 1,532 1,438 1,466 1,496
Other assets 27,377 25,365 25,409 25,516
Total assets 55,891 53,488 77,010 79,648

Free Cash Flow (INR cr)

Year to March FY20A FY21 FY22E FY23E
Reported profit -583 1,286 1,362 1,060
Add: Depreciation 200 160 677 705
Interest (net of tax) -8,291 523 1,277 2,084
Others 0 -192 0 0
Less: Changes in WC 65.4 87.6 913 1,549
Operating cash flow -318 1,341 2,952 3,313
Less: Capex -884 -165 25,037 2,500
Free cash flow 566 1,506 -22,085 813

Key Ratios
Year to March FY20A FY21 FY22E FY23E
RoE (%) -1.7 3.7 3.8 2.9
RoCE (%) 3.7 4.2 6.9 6.8
Inventory days 2,402 2,791 2,228 1,257
Receivable days 47 44 27 21
Payable days 1,538 1,521 1,200 759
Working cap (% sales) 272.1 304.1 183.3 116.9
Gross debt/equity (x) 0.2 0.2 0.8 0.8
Net debt/equity (x) 0.2 0.1 0.8 0.8
Interest coverage (x) 0.7 1.5 1.7 1.3

Edelweiss Wealth Research 7

 Edelweiss Broking Limited, 1st Floor, Tower 3, Wing B, Kohinoor City Mall, Kohinoor City, Kirol Road, Kurla(W)
Board: (91-22) 4272 2200

Vinay Khattar
Head Research
VINAY Digitally signed by VINAY
KHATTAR

vinay.khattar@edelweissfin.com KHATTAR Date: 2022.02.03 15:44:01

+05'30'

Rating Expected to

Buy appreciate more than 15% over a 12-month period

Hold appreciate between 5-15% over a 12-month period

Reduce Return below 5% over a 12-month period

200
180
160
(Indexed)

140
120
100
80
60
40
Nov-18

Nov-19

Nov-20

Nov-21
Jul-20
Jul-18

Jul-19

Jul-21
Sep-18

Sep-19

Sep-20

Sep-21
May-18

May-19

May-20

May-21
Jan-18
Mar-18

Jan-19
Mar-19

Jan-20
Mar-20

Jan-21
Mar-21

Jan-22
DLF Sensex

Edelweiss Wealth Research 8

 Disclaimer
Edelweiss Broking Limited ("EBL" or "Research Entity") is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository
services and related activities. The business of EBL and its associates are organized around five broad business groups – Credit including Housing and SME Finance, Commodities, Financial
Markets, Asset Management and Life Insurance. There were no instances of non-compliance by EBL on any matter related to the capital markets, resulting in significant and material
disciplinary action during the last three years. This research report has been prepared and distributed by Edelweiss Broking Limited ("Edelweiss") in the capacity of a Research Analyst
as per Regulation 22(1) of SEBI (Research Analysts) Regulations 2014 having SEBI Registration No. INH000000172.

Broking services offered by Edelweiss Broking Limited under SEBI Registration No.: INZ000005231 (Member of NSE, BSE, MCX and NCDEX). EBL CIN: U65100GJ2008PLC077462. Research
services offered by Edelweiss Broking Ltd. under SEBI Registration No. INH000000172. Depository participant with NSDL having SEBI registration no: IN-DP-NSDL-314-2009 and DP ID:
IN302201 and IN303719. Depository participant with CDSL having DP ID- 12032300. Investor grievance resolution team: 040-41151621; Email ID: Helpdesk@edelweiss.in. Name of the
Compliance Officer for Trading & DP - Mr. Pranav Tanna, Email IDs: complianceofficer.ebl@edelweissfin.com / ebl.dpcompliance@edelweissfin.com. Corporate Office: Edelweiss House,
Off CST Road, Kalina, Mumbai - 400098; Tel. 18001023335/022-42722200/022-40094279. Registered Office: 2nd Floor, Office No. 201 to 203, Zodiac Plaza, Xavier College Road, Off C G
Road, Ahmedabad, Gujarat - 380009. Contact: (079) 40019900 / 66629900.

This Report has been prepared by Edelweiss Broking Limited in the capacity of a Research Analyst having SEBI Registration No.INH000000172 and distributed as per SEBI (Research
Analysts) Regulations 2014. This report does not constitute an offer or solicitation for the purchase or sale of any financia l instrument or as an official confirmation of any transaction.
The information contained herein is from publicly available data or other sources believed to be reliable. This report is provided for assistance only and is not intended to be and must
not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this report should make such
investigation as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks
involved), and should consult his own advisors to determine the merits and risks of such investment. The investment discussed or views expressed may not be suitable for all investors.

This information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or
indirectly in any form to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or
entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribut ion, publication, availability or use would be contrary to law,
regulation or which would subject EBL and associates / group companies to any registration or licensing requirements within s uch jurisdiction. The distribution of this report in certain
jurisdictions may be restricted by law, and persons in whose possession this report comes, should observe, any such restrictions. The information given in this report is as of the date of
this report and there can be no assurance that future results or events will be consistent with this information. This information is subject to change without any prior notice. EBL reserves
the right to make modifications and alterations to this statement as may be required from time to time. EBL or any of its associates / group companies 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. EBL is committed to providing independent and transparent
recommendation to its clients. Neither EBL nor any of its associates, group companies, directors, employees, agents or representatives shall be liable for any damages whether direct,
indirect, special or consequential including loss of revenue or lost profits that may arise from or in connection with the us e of the information. Our proprietary trading and investment
businesses may make investment decisions that are inconsistent with the recommendations expressed herein. Past performance is not necessarily a guide to future performance .The
disclosures of interest statements incorporated in this report are provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the
report. The information provided in these reports remains, unless otherwise stated, the copyright of EBL. All layout, design, original artwork, concepts and other Intellectual Properties,
remains the property and copyright of EBL and may not be used in any form or for any purpose whatsoever by any party without the express written permission of the copyright holders.

EBL shall not be liable for any delay or any other interruption which may occur in presenting the data due to any reason including network (Internet) reasons or snags in the system,
break down of the system or any other equipment, server breakdown, maintenance shutdown, breakdown of communication services or inability of the EBL to present the data. In no
event shall EBL be liable for any damages, including without limitation direct or indirect, special, incidental, or consequential damages, losses or expenses arising in connection with the
data presented by the EBL through this report.
We offer our research services to clients as well as our prospects. Though this report is disseminated to all the customers simultaneously, not all customers may receive this report at
the same time. We will not treat recipients as customers by virtue of their receiving this report.

EBL and its associates, officer, directors, and employees, research analyst (including relatives) worldwide may: (a) from time to time, have long or short positions in, and buy or sell the
securities thereof, of company(ies), mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market
maker in the financial instruments of the subject company/company(ies) discussed herein or act as advisor or lender/borrower to such company(ies) or have other pote ntial/material
conflict of interest with respect to any recommendation and related information and opinions at the time of publication of research report or at the time of public appearance. EBL may
have proprietary long/short position in the above mentioned scrip(s) and therefore should be considered as interested. The vi ews provided herein are general in nature and do not
consider risk appetite or investment objective of any particular investor; readers are requested to take independent professional advice before investing. This should not be construed
as invitation or solicitation to do business with EBL.

EBL or its associates may have received compensation from the subject company in the past 12 months. EBL or its associates may have managed or co-managed public offering of
securities for the subject company in the past 12 months. EBL or its associates may have received compensation for investment banking or merchant banking or brokerage services from
the subject company in the past 12 months. EBL or its associates may have received any compensation for products or services other than investment banking or merchant banking or
brokerage services from the subject company in the past 12 months. EBL or its associates have not received any compensation or other benefits from the Subject Company or third party
in connection with the research report. Research analyst or his/her relative or EBL’s associates may have financial interest in the subject company. EBL, its associates, research analyst
and his/her relative may have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of
research report or at the time of public appearance.
Participants in foreign exchange transactions may incur risks arising from several factors, including the following: ( i) exchange rates can be volatile and are subject to large fluctuations;
( ii) the value of currencies may be affected by numerous market factors, including world and national economic, political and regulatory events, events in equity and debt markets and
changes in interest rates; and (iii) currencies may be subject to devaluation or government imposed exchange controls which could affect the value of the currency. Investors in securities
such as ADRs and Currency Derivatives, whose values are affected by the currency of an underlying security, effectively assume currency risk.

Research analyst has served as an officer, director or employee of subject Company: No

EBL has financial interest in the subject companies: No

EBL’s Associates may have actual / beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of
research report.
Research analyst or his/her relative has actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of
publication of research report: No

EBL has actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report: No
Subject company may have been client during twelve months preceding the date of distribution of the research report.

There were no instances of non-compliance by EBL on any matter related to the capital markets, resulting in significant and material disciplinary action during the last three years.
A graph of daily closing prices of the securities is also available at www.nseindia.com

Edelweiss Wealth Research 9

 Disclaimer

Analyst Certification:
The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject company or companies and its or their
securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report.

Additional Disclaimer for U.S. Persons

Edelweiss is not a registered broker – dealer under the U.S. Securities Exchange Act of 1934, as amended (the“1934 act”) and under applicable state laws in the United States. In addition
Edelweiss is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and unde r
applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by Edelweiss, including the
products and services described herein are not available to or intended for U.S. persons.

This report does not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services and/or shall not be considered
as an advertisement tool. "U.S. Persons" are generally defined as a natural person, residing in the United States or any entity organized or incorporated under the laws of the United
States. US Citizens living abroad may also be deemed "US Persons" under certain rules.

Transactions in securities discussed in this research report should be effected through Edelweiss Financial Services Inc.

Additional Disclaimer for U.K. Persons

The contents of this research report have not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 ("FSMA").
In the United Kingdom, this research report is being distributed only to and is directed only at (a) persons who have professional experience in matters relating to investments falling
within Article 19(5) of the FSMA (Financial Promotion) Order 2005 (the “Order”); (b) persons falling within Article 49(2)(a) to (d) of the Order (including high net worth companies and
unincorporated associations); and (c) any other persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as “relevant persons”).

This research report must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this research report relates is available
only to relevant persons and will be engaged in only with relevant persons. Any person who is not a relevant person should not act or rely on this research report or any of its contents.
This research report must not be distributed, published, reproduced or disclosed (in whole or in part) by recipients to any other person.

Additional Disclaimer for Canadian Persons

Edelweiss is not a registered adviser or dealer under applicable Canadian securities laws nor has it obtained an exemption from the adviser and/o r dealer registration requirements
under such law. Accordingly, any brokerage and investment services provided by Edelweiss, including the products and services described herein, are not available to or intended for
Canadian persons.
This research report and its respective contents do not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment
services.

Disclosures under the provisions of SEBI (Research Analysts) Regulations 2014 (Regulations)
Edelweiss Broking Limited ("EBL" or "Research Entity") is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository
services and related activities. The business of EBL and its associates are organized around five broad business groups – Credit including Housing and SME Finance, Commodities,
Financial Markets, Asset Management and Life Insurance. There were no instances of non-compliance by EBL on any matter related to the capital markets, resulting in significant and
material disciplinary action during the last three years. This research report has been prepared and distributed by Edelweiss Broking Limited ("Edelweiss") in the capacity of a Research
Analyst as per Regulation 22(1) of SEBI (Research Analysts) Regulations 2014 having SEBI Registration No.INH000000172.

Edelweiss Wealth Research 10