2QFY2012 Result Update | IT

June 5, 2012

MphasiS
Performance highlights
Y/E Oct. (` cr) Cons. Net sales EBITDA 2QFY12 1,329 261 19.7 189 1QFY12 % chg (qoq) 1,367 252 18.4 185 (2.8) 3.7 123bp 2.5 2QFY11 1,257 241 19.1 217 % chg (yoy) 5.7 8.7 53bp (12.8)

ACCUMULATE
CMP Target Price
Investment Period
Stock Info Sector Market Cap (`cr) Net debt (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code 0.9 488/277 43,470 10 16,021 4,863 MBFL.BO MPHL@IN IT 7,247

`346 `373
12 Months

EBITDA margin (%)

Reported PAT
Source: Company, Angel Research

For 2QFY2012, MphasiS numbers underperformed our expectation on the revenue front but came in-line with our expectations on the operating and net profit fronts. The companys USD revenue declined on a qoq basis due to delays in ramp ups of few projects and weakness in discretionary spending. At the CMP, the stock is trading at 9.7x FY2013E EPS with a strong cash position of `2,340cr, which warrants limited downside. We maintain our Accumulate view on the stock. Quarterly highlights: MphasiS reported revenue of US$261mn, down 1.7% qoq. During the quarter, revenue from the direct channel declined by 3.2% qoq to `562cr because of lower license revenue and revenue from HP channel declined by 2.7% qoq due to ramp down in certain projects, especially in the area of enterprise services. The HP non-enterprise services area of business showed robust momentum with revenue growing by 17.4% qoq to `59cr. EBITDA margin of the company expanded by 123bp qoq to 19.7%, aided by lower employee costs due to overall employee reduction and improvement in utilization level across all its business segments. Outlook and valuation: MphasiS revenue has been continuously getting hurt due to sluggish performance of HP-ES business. Also, traction in HP non-ES business is below managements initial expectation of US$90mn-100mn in FY2012 and is in the range of US$50mn-60mn. Going forward, management expects the direct channel (~42% to revenue) and HP non-enterprise solution business (which is currently ~5% of revenue from the HP channel) to drive growth, whereas HP-ES business is expected to remain sluggish. Also, business wise, we expect ITO to continue to be the possible growth driver for the company. We expect a 5.5% revenue CAGR for MphasiS over FY2011-14E, considering that business from HP is sluggish and the overall macro environment is posing a high amount of uncertainty towards client budgets for the next year and even tier-I companies are facing headwinds because of this. Also, in our view, there is a good possibility that the company may use its cash pile of ~`2,340cr to go for a buy-back. We maintain our Accumulate view on the stock with a target price of `373. Key financials (Consolidated)
Y/E Oct. (` cr) Net sales % chg Net profit % chg EBITDA margin (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x) FY2010 5,036 17.9 1,091 19.0 25.1 52.0 6.6 2.2 33.1 32.9 1.1 4.5 FY2011 5,098 1.2 822 (24.6) 19.3 39.2 8.8 1.9 21.1 19.8 1.1 5.6 FY2012E 5,399 5.9 741 (9.8) 18.8 35.3 9.8 1.5 15.8 16.7 0.9 5.0 FY2013E 5,608 3.9 744 0.4 17.7 35.5 9.7 1.4 13.9 14.3 0.8 4.6 FY2014E 5,964 6.3 772 3.7 17.3 36.8 9.4 1.2 12.6 13.0 0.7 3.9

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 60.5 6.3 21.6 11.7

Abs. (%) Sensex Mphasis

3m

1yr

3yr 6.1 7.4

(7.7) (12.8) (12.1) (25.5)

Ankita Somani
022-39357800 Ext: 6819 ankita.somani@angelbroking.com

Source: Company, Angel Research

Please refer to important disclosures at the end of this report

MphasiS | 2QFY2012 Result Update

Exhibit 1: 2QFY2012 reported performance (Consolidated)

(` cr) Net revenue Cost of revenue Gross profit SG&A expenses EBITDA Dep. and amortization EBIT Interest income Other income PBT Income tax PAT EPS EBITDA margin (%) EBIT margin (%) PAT margin (%)
Source: Company, Angel Research

2QFY12 1,329 945 384 122 261 46 216 (7) 41 250 61 189 9.0 19.7 16.2 13.8

1QFY12 1,367 1,000 368 116 252 47 205 (2) 36 239 54 185 8.8 18.4 15.0 13.2

% chg (qoq) (2.8) (5.4) 4.3 5.7 3.7 (2.8) 5.1

2QFY11 1,257 919 339 98 241 34 207 1 48

% chg (yoy) 5.7 2.9 13.3 24.7 8.7 35.0 4.4

1HFY12 2,696 1,945 751 238 514 92 421 (9) 77

1HFY11 2,491 1,796 695 197 498 70 428 1 83 513 69 444 21.2 20.0 17.2 17.8

% chg (yoy) 8.3 8.3 8.1 20.5 3.1 32.6 (1.6)

4.5 11.2 2.5 2.9 123bp 123bp 67bp

257 39 217 10.4 19.1 16.5 16.6

(2.6) 53.9 (12.8) (12.8) 53bp (21)bp (281)bp

489 115 374 17.8 19.1 15.6 13.9

(4.6) 67.0 (15.7) (15.9) (94)bp (157)bp (395)bp

Exhibit 2: 2QFY2012: Actual vs. Angel estimates

(` cr) Net sales EBITDA margin (%) PAT
Source: Company, Angel Research

Actual 1,329 19.7 189

Estimate 1,380 19.1 189

% Var. (3.7) 57bp 0.3

Weak revenue performance

MphasiS reported a muted performance on the revenue front for 2QFY2012. USD revenue came in at US$261mn, down 1.7% qoq. The companys revenue was impacted due to softness and volatility in the American and European markets, where discretionary budgets continue to remain under pressure and decision cycles are elongated. In INR terms, revenue came in at `1,329cr, down 2.8% qoq. During the quarter, revenue from the direct channel declined by 3.2% qoq to `562cr because of lower license revenue during 4QFY2012. Excluding the impact of INR appreciation, revenue from the direct channel declined by 2.6% qoq. Revenue from HP channel declined by 2.7% qoq (2.8% qoq decline excluding impact of INR appreciation) due to ramp down in certain projects, especially in the area of enterprise services. HP non-enterprise services area of business showed robust momentum with revenue growing by 17.4% qoq to `59cr. Service vertical wise, application maintenance and customer service were the only two growth drivers of the company during 4QFY2012, posting revenue growth of 4.7% and 2.2% qoq, respectively. Revenue from all the other services declined during the quarter on a qoq basis.

June 5, 2012

MphasiS | 2QFY2012 Result Update

Exhibit 3: Service-wise performance

Service type (` cr) Application maintenance Application development Customer service Service/Technical help desk Transaction processing Infrastructure management Knowledge processes License income Contribution to revenue (%) Application maintenance Application development Customer service Service/Technical help desk Transaction processing Infrastructure management Knowledge processes License income
Source: Company, Angel Research

2QFY12 1QFY12 2QFY11 466 347 78 51 69 329 8 5 34.5 25.7 5.8 3.8 5.1 24.3 0.6 0.3 445 390 76 52 70 335 8 16 32.0 28.0 5.5 3.8 5.1 24.0 0.6 1.2 443 322 77 69 73 253 8 35.6 25.9 6.2 5.6 5.8 20.3 0.6 0.0

% chg qoq 4.7 (10.9) 2.2 (2.7) (2.6) (1.6) (3.6) (71.2) chg qoq (bp) 251 (230) 29 1 2 31 (0) (82)

% chg yoy 5.2 7.7 0.9 (26.6) (5.5) 29.9 1.3 chg yoy (bp) (111) (20) (44) (180) (76) 400 (4) 35

Industry vertical wise, MphasiS posted a 7.6% decline in its revenue from the IT, communication and entertainment industry. Revenue from the banking and capital markets (contributing 25.4% to revenue) and insurance (contributing 11.4% to revenue) industry verticals declined moderately by 3.6% and 2.8% qoq to `344cr and `154cr, respectively.

Exhibit 4: Vertical-wise performance

Vertical (` cr) Banking and capital markets Insurance IT, comm. and entertainment Emerging industries Contribution to revenue (%) Banking and capital markets Insurance IT, comm. and entertainment Emerging industries
Source: Company, Angel Research

2QFY12 344 154 349 506 25.4 11.4 25.8 37.4

1QFY12 357 158 378 500 25.6 11.4 27.2 35.9

2QFY11 337 124 327 458 27.1 9.9 26.2 36.8

% chg qoq (3.6) (2.8) (7.6) 1.2 (17.9) 0.4 (133.1) 150.7

% chg yoy 2.1 24.4 6.9 10.3 (160.9) 144.3 (41.4) 58.0

chg qoq (bp) chg yoy (bp)

MphasiS again reported a slight decline of ~US$0.4/hr in its offshore billing rate of application services as well as ITO business as the company hired ~1,300 freshers in the last three quarters and all those turned billable during 4QFY2012; and freshers command lower billing rates than lateral hires. Onsite billing rate of ITO declined substantially to US$63/hr from US$67/hr, which management indicated is due to Euro depreciation against USD and change in pyramid mix. Pricing of BPO was stable at US$6/hr.

June 5, 2012

MphasiS | 2QFY2012 Result Update

Exhibit 5: Segment-wise pricing

Price movement (US$/hr) APO Onsite Offshore ITO Onsite Offshore BPO Offshore
Source: Company, Angel Research

2QFY12 67 20 63 20 6

1QFY12 67 21 67 21 6

2QFY11 72 20 67 20 7

% chg qoq 0.0 (4.8) (6.0) (4.8) 0.0

% chg yoy (6.9) 0.0 (6.0) 0.0 (14.3)

Client metrics
MphasiS has been focusing on direct channel strategy to win clients. Overall, the company added 18 new clients in 2QFY2012 14 in the direct channel and 4 in the HP channel. Vertical wise, one client was added in the banking and capital market service industry, two in insurance, four in IT, communication and entertainment and the rest 11 in emerging industries. MphasiS witnessed reduction of three clients in the HP channel in the over US$20mn category. In the direct channel, three clients were added in the >US$5mn category and one in the >US$20mn category.

Exhibit 6: Client concentration

(` cr) Top client revenue % contribution Top-5 clients revenue % contribution Top-10 clients % contribution
Source: Company, Angel Research

2QFY12 135.3 10 419.4 31 595.2 44

1QFY12 139.3 10 431.8 31 612.9 44

2QFY11 124.6 10 348.9 28 548.3 44

% chg qoq (2.9) (2.9) (2.9)

% chg yoy 8.6 20.2 8.6

June 5, 2012

MphasiS | 2QFY2012 Result Update

Exhibit 7: HP and non-HP client breakup

No. of clients >US $1mn revenue Direct channel HP channel >US $5mn revenue Direct channel HP channel >US $10mn revenue Direct channel HP channel >US $20mn revenue Direct channel HP channel
Source: Company, Angel Research

2QFY12 126 48 78 42 15 27 24 10 14 12 5 7

1QFY12 122 42 80 41 14 27 25 11 14 12 5 7

2QFY11 119 41 78 39 12 27 25 10 15 14 4 10

Addition (qoq) 4 6 (2) 1 1 0 (1) (1) 0 0 0 0

Addition (yoy) 7 7 0 3 3 0 (1) 0 (1) (2) 1 (3)

Hiring muted
During the quarter, MphasiS recorded net reduction in its employee base across all business segments, taking its total employee base to 37,179. Headcount of the application services business and ITO business declined by 1,074 and 489 employees to 13,462 and 14,960, respectively. Management indicated that from now on hiring would be considered as per the demand environment.

Exhibit 8: Employee metrics

No. of employees Application services Onsite Offshore 2QFY12 1QFY12 2QFY11 Net add.(qoq) Net add.(yoy) 13,462 2,496 10,966 7,322 312 7,010 14,960 116 14,844 336 1,099 37,179 14,536 2,716 11,820 7,811 308 7,503 14,951 121 14,830 343 1,157 38,798 15,220 2,761 12,459 8,622 378 8,244 16,399 153 16,246 325 1,173 41,739 (1,074) (220) (854) (489) 4 (493) 9 (5) 14 (7) (58) (1,619) (1,758) (265) (1,493) (1,300) (66) (1,234) (1,439) (37) (1,402) 11 (74) (4,560)

ITO services
Onsite Offshore BPO services Onsite Offshore

Sales and marketing

General and administration Total
Source: Company, Angel Research

June 5, 2012

MphasiS | 2QFY2012 Result Update

EBITDA margin expands

MphasiS reported a 123bp expansion in its EBITDA margin to 19.7%, aided by lower employee costs due to overall employee reduction and improvement in utilization level across all its business segments. Onsite and offshore utilization of the application services business increased to 93% and 77% in 2QFY2012 from 91% and 74% in 1QFY2012, respectively. Blended utilization of the application services business improved to 80% in 2QFY2012 from 71% in 1QFY2012. In the ITO business also, onsite and offshore utilization enhanced to 82% and 84% in 2QFY2012 from 79% and 81% in 1QFY2012. Blended utilization of BPO remained stable at 71% during 2QFY2012.

Exhibit 9: Segment-wise utilization

89 84 80 79 74 69 64 2QFY11 3QFY11 Application services
Source: Company, Angel Research

81 77 71

84 80

(%)

76

76 75

76

73 68

70

71

66

4QFY11 ITO services

1QFY12

2QFY12

BPO servics

Outlook and valuation

MphasiS revenue has been continuously getting hurt due to sluggish performance of HP-ES business. Also, traction in HP non-ES business is below managements initial expectation of US$90mn-100mn in FY2012 and is in the rage of US$50mn-60mn. Going forward, management expects the direct channel (42% to revenue) and HP non-enterprise solution business (which is currently ~5% of revenue from the HP channel) to drive growth, whereas HP-ES business is expected to remain sluggish. Also, business wise, we expect ITO to continue to be the possible growth driver for the company. We expect a 5.5% INR revenue CAGR for MphasiS over FY2011-14E, considering that business from HP is sluggish and the overall macro environment is posing a high amount of uncertainty towards client budgets for the next year and even tier-I companies are facing headwinds because of this. Also, in our view, there is a good possibility that the company may use its cash pile of ~`2,340cr to go for a buy-back. We maintain our Accumulate rating on the stock with a target price of `373, valuing it at 10.5x FY2013E EPS.

June 5, 2012

MphasiS | 2QFY2012 Result Update

Exhibit 10: One-year forward P/E

1,000 800 600

(`)
400 200 0

Feb-08

Feb-09

Feb-10

Feb-11

Nov-07

Nov-08

Nov-09

Nov-10

May-08

May-09

May-10

May-11

Nov-11

Feb-12
3x

Price
Source: Company, Angel Research

15x

12x

9x

6x

Exhibit 11: Change in estimates

FY2013 Parameter (` cr) Net revenue EBITDA Other income PBT Tax PAT Earlier estimates 5,563 1,049 128 1,010 239 771 Revised estimates 5,399 1,015 129 972 231 741 Variation (%) (2.9) (3.2) 0.4 (3.8) (3.6) (3.8) Earlier estimates 5,904 1,078 155 1,068 256 811 FY2014 Revised estimates 5,608 994 163 979 235 744 Variation (%) (5.0) (7.8) 4.9 (8.3) (8.3) (8.3)

Source: Company, Angel Research

Exhibit 12: Recommendation summary

Company HCL Tech Hexaware Infosys Infotech Enterprises KPIT Cummins Mahindra Satyam Mindtree MphasiS NIIT Persistent TCS Tech Mahindra Wipro Reco Accumulate Accumulate Buy Accumulate Neutral Accumulate Accumulate Accumulate Buy Accumulate Accumulate Accumulate Accumulate CMP (`) 495 121 2,389 166 124 76 629 346 41 339 1,227 670 399 Tgt. price (`) 560 128 2,792 177 86 643 373 52 361 1,276 725 430 Upside (%) 13.1 5.9 16.9 6.7 13.0 2.3 7.9 26.8 6.4 5.0 8.2 7.8 FY2014E EBITDA (%) 17.4 18.6 30.6 16.6 14.8 16.0 15.5 17.3 15.1 22.4 28.7 15.2 19.9 FY2014E P/E (x) 11.5 11.3 13.7 8.9 10.9 9.6 10.8 9.4 4.7 8.5 17.3 8.1 13.9 FY2011-14E EPS CAGR (%) 17.0 55.0 13.4 13.9 0.2 23.7 32.9 (2.0) 16.3 4.7 16.8 18.5 9.7 FY2014E EV/Sales (%) 1.3 1.4 2.5 0.5 0.9 0.7 0.8 0.7 0.3 0.7 3.3 1.3 1.6 FY201E RoE (%) 21.3 22.4 20.8 13.2 18.7 12.3 17.0 12.6 18.4 14.5 27.7 18.1 18.3

Source: Company, Angel Research

June 5, 2012

May-12

Aug-08

Aug-09

Aug-10

Aug-11

MphasiS | 2QFY2012 Result Update

Company background
MphasiS is a mid-tier Indian IT company formed by the acquisition of MphasiS by BFL in 1999. In 2006, EDS acquired a majority stake in MphasiS and subsequently HP bought EDS in May 2008, thereby making MphasiS an HP company. The company provides application, infrastructure and BPO services to clients in the banking, capital markets, insurance, telecommunication and manufacturing industries. MphasiS is one of the largest BPO service providers in India, offering voice as well as transaction-based services.

June 5, 2012

MphasiS | 2QFY2012 Result Update

Profit and Loss statement (Consolidated)

Y/E Oct (` cr) Net sales Cost of revenue % of net sales Gross profit % of net sales Selling and mktg. expenses % of net sales General and admin. exp. % of net sales Provision for doubtful debts EBITDA % of net sales Dep. and amortization EBIT Interest income, net Other income, net Forex gain Profit before tax Provision for tax % of PBT PAT EPS (`) FY2010 5,036 3,352 66.6 1,684 33.4 220 4.4 199 4.0 1,265 25.1 164 1,101 1 50 58 1,210 119 9.8 1,091 52.0 FY2011 FY2012E FY2013E FY2014E 5,098 3,698 72.5 1,400 27.5 232 4.6 184 3.6 985 19.3 155 830 (2) 111 66 1,005 183 18.2 822 39.2 5,399 3,905 72.3 1,495 27.7 277 5.1 203 3.8 1,015 18.8 184 831 (9) 129 21 972 231 23.7 741 35.3 5,608 4,138 73.8 1,470 26.2 280 5.0 196 3.5 994 17.7 188 806 163 11 979 235 24.0 744 35.5 5,964 4,458 74.8 1,506 25.2 267 4.5 209 3.5 1,030 17.3 197 833 185 11 1,029 257 25.0 772 36.8

June 5, 2012

MphasiS | 2QFY2012 Result Update

Balance sheet (Consolidated)

Y/E Oct. (` cr) Liabilities Share capital Reserves and surplus ESOP outstanding Total shareholders funds Secured loans Unsecured loans Total debt Deferred tax liability Total liabilities Assets Gross block - Fixed assets Accumulated depreciation Net block Capital work-in-progress Goodwill Investments Deferred tax asset Current assets Debtors and unbilled rev. Cash and cash equivalents Interest receivable Loans and advances Total current assets Less:- current liabilities Less:- provisions Net current assets Total assets 1,198 178 0 945 2,321 802 350 1,170 3,345 1,307 290 0 964 2,561 910 495 1,156 4,194 1,632 450 0 1,240 3,322 1,030 620 1,672 4,986 1,878 790 0 1,350 4,018 1,215 720 2,083 5,632 2,003 1,152 0 1,583 4,738 1,282 830 2,626 6,404 1,026 784 242 9 389 1,460 75 1,134 850 284 10 870 1,777 98 1,334 1,034 300 20 870 2,027 98 1,584 1,221 362 20 870 2,200 98 1,809 1,418 391 20 870 2,400 98 210 3,089 1 3,299 45 45 0 3,345 210 3,678 12 3,900 49 244 292 2 4,194 210 4,472 12 4,694 46 244 290 2 4,986 210 5,118 12 5,340 46 244 290 2 5,632 210 5,890 12 6,112 46 244 290 2 6,404 FY2010 FY2011 FY2012E FY2013E FY2014E

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MphasiS | 2QFY2012 Result Update

Cash flow statement (Consolidated)

Y/E Oct. (` cr) Pre tax profit from operations Depreciation Pre tax cash from operations Other income/prior period ad Net cash from operations Tax Cash profits (Inc)/Dec in Current assets Current liabilities Net trade working capital Cashflow from operating actv. (Inc)/Dec in fixed assets (Inc)/Dec in intangibles (Inc)/Dec in deferred tax liab. (Inc)/Dec in investments Cashflow from investing actv. Inc/(Dec) in debt Inc/(Dec) in equity/premium Dividends Cashflow from financing actv. Cash generated/(utilized) Cash at start of the year Cash at end of the year (512) 237 (275) 979 (86) (94) (6) (699) (884) 42 (39) 98 (95) (0) 179 178 (129) 254 125 1,102 (198) (481) (20) (317) (1,016) 247 (123) 98 26 111 178 290 (600) 245 (355) 570 (210) (251) (460) (3) 151 98 51 160 290 450 (356) 285 (71) 861 (250) (173) (423) 0 98 (98) 340 450 790 (358) 177 (181) 787 (225) (200) (425) 98 98 (0) 362 790 1,152 FY2010 1,160 164 1,324 50 1,374 (119) 1,254 FY2011 FY2012E FY2013E FY2014E 894 155 1,049 111 1,160 (183) 977 843 184 1,027 129 1,156 (231) 925 817 188 1,004 163 1,167 (235) 932 844 197 1,041 185 1,226 (257) 969

June 5, 2012

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MphasiS | 2QFY2012 Result Update

Key ratios
Y/E Oct. Valuation ratio (x) P/E (on FDEPS) P/CEPS P/BVPS Dividend yield (%) EV/Sales EV/EBITDA EV/Total assets Per share data (`) EPS Cash EPS Dividend Book value Dupont analysis Tax retention ratio (PAT/PBT) Cost of debt (PBT/EBIT) EBIT margin (EBIT/Sales) Asset turnover ratio (Sales/Assets) Leverage ratio (Assets/Equity) Operating ROE Return ratios (%) RoCE (pre-tax) Angel RoIC RoE Turnover ratios (x) Asset turnover (fixed assets) Receivables days 1.8 70 1.4 89 1.2 89 1.1 89 1.0 89 32.9 91.3 33.1 19.8 66.5 21.1 16.7 51.3 15.8 14.3 46.0 13.9 13.0 42.5 12.6 0.9 1.1 0.2 1.5 1.0 33.1 0.8 1.2 0.2 1.2 1.1 21.1 0.8 1.2 0.2 1.1 1.1 15.8 0.8 1.2 0.1 1.0 1.1 13.9 0.8 1.2 0.1 0.9 1.0 12.6 52.0 59.8 4.0 157.4 39.2 46.6 6.5 186.1 35.3 44.2 4.0 224.0 35.5 44.5 4.0 254.8 36.8 46.2 4.0 291.6 6.6 5.8 2.2 1.2 1.1 4.5 1.7 8.8 7.4 1.9 1.9 1.1 5.6 1.3 9.8 7.8 1.5 1.2 0.9 5.0 1.0 9.7 7.8 1.4 1.2 0.8 4.6 0.8 9.4 7.5 1.2 1.2 0.7 3.9 0.6 FY2010 FY2011 FY2012E FY2013E FY2014E

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MphasiS | 2QFY2012 Result Update

Research Team Tel: 022 - 3935 7800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ 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. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

MphasiS No No No No

Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

June 5, 2012

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