Asia Pacific Equity Research

17 August 2010

▼ Underweight
Suzlon Energy Ltd
Previous: Neutral
SUZL.BO, SUEL IN
Price: Rs56.45
Still a winding road to recovery: Downgrade to UW
▼ Price Target: Rs41.00
Previous: Rs60.00

• Why downgrade now? The famine in overseas order inflows continues. India
Since Mar-09 the company has bagged only 330MW of orders outside Engineering
India, even as mgmt. kept on deferring inflow expectations. Mgmt. has AC
Shilpa Krishnan
guided to 'heavily back-ended' execution in FY11 post extremely weak Jun- (91-22) 6157-3580
q results. Owing to sticky fixed costs + deferral of deliveries by clients we shilpa.x.krishnan@jpmorgan.com
estimate a loss of Rs4.2B and Rs2.4B in Sep-q and Dec-q and cut our FY11
Sumit Kishore
est. to a loss of Rs8.1B (vs. 0.66B loss est. earlier). (91-22) 6157-3581
• FY12 recovery contingent on inflows. We maintain our FY12 sales sumit.x.kishore@jpmorgan.com
volume est. of 2,050MW for Suzlon’s wind business. Incorporating mgmt’s Deepika Belani
emerging market focus, our est. includes 1,000MW of sales in India (91-22) 6157-3582
(688MW in FY10), 300MW in China (182MW in FY10) and 300MW in deepika.x.belani@jpmorgan.com
Brazil (none in FY10). The company still needs to bag ~950MW of J.P. Morgan India Private Limited
overseas orders deliverable in FY12, to meet our volume est.
• Reading the signs on inflows, near-term upside unlikely. (a) India: As Price Performance
110
per company ~2.1GW of installations are expected in India in FY11. Suzlon
has bagged 489MW new orders in Jun-q. The intensity of inflows may Rs 80
come down in subsequent q’s, assuming their market share stays at ~50%
50
(implying 560MW orders over balance FY11), (b) Brazil: Suzlon expects to
Aug-09 Nov-09 Feb-10 May-10 Aug-10
bag ~400MW of orders from Brazil this fiscal, and is banking on wind PPA
SUZL.BO share price (Rs)
auctions for 2.4GW in Brazil on 19th August. We note that govt. had NIFTY (rebased)
auctioned 1.8GW of wind capacity in Dec-09, while Suzlon has not reported
YTD 1m 3m 12m
any orders from Brazil since then. We expect 100MW of orders from Brazil
Abs -43.1% -14.8% -20.8% -40.1%
for delivery in FY11, (c) US: Mid-term elections in Nov-10 may delay
Rel -47.2% -15.3% -27.8% -63.5%
favorable policy decisions on wind, (d) Europe: Spain has indicated
rollback of subsidies for renewable projects and REPower to take lead in
Europe within Suzlon group, (C) China: Backlog of 416MW down from
586MW post 1QFY10. Only 222MW sold in China over last 5 q’s.
• Downgrade to UW from Neutral. Suzlon is the most leveraged wind co.
with Net-debt/EBITDA of 4.2x JPMe FY12 vs. <1.0 for global peers based
on consensus. Our revised Mar-11 SOP PT of Rs41 (from Rs60 earlier)
incorporates (a) Rs36/share, at 7.2 FY12E EV/EBITDA, a 5% discount to
Vestas consensus est., (b) Rs5/share for 26.28% stake in Hansen at its CMP.
Upside risk to UW rating stems from stronger than expected order inflows.
Reuters: SUZL.BO, Bloomberg: SUEL IN
Rs. in millions, Year-end March
FY09 FY10 FY11E FY12E
Sales 260,817 206,197 189,094 241,564 52-week range (Rs) 51.1-105
PAT 11,329 (11,945) (8,094) 6,488 Market cap (Rs B) 89
EPS (Rs) 7.3 (7.7) (4.6) 3.7 Market cap (US$ B) 1.9
Net sales growth (%) 90.7 (20.9) (8.3) 27.7 Shares outstanding (MM) 1745.4
Net profit growth (%) (13.9) (205.4) NM NM Free float (%) 42
ROE (%) 13.6 (15.8) (11.9) 8.9 Avg daily value (US$ MM) 21.6
P/E (x) 7.0 (6.6) (11.0) 13.7 Avg dly volume (MM shs) 17.6
P/BV (x) 0.9 1.2 1.3 1.2 Exchange Rate 46.6
EV/EBITDA (x) 7.4 17.9 26.5 8.6
Source: J.P. Morgan estimates, Company data. Note: Price on market close of 17 August 2010.

See page 8 for analyst certification and important disclosures, including non-US analyst disclosures.
J.P. Morgan does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may
have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their
investment decision.
Shilpa Krishnan Asia Pacific Equity Research
(91-22) 6157-3580 17 August 2010
shilpa.x.krishnan@jpmorgan.com

Company Description P&L sensitivity metrics EBITDA EPS

impact (%) impact (%)
Suzlon Energy, along with its German WTG volume estimates
subsidiary REPower, is the third-largest wind
turbine manufacturing company in the world. Impact of 500MW decrease in FY11 -60.0% NM
It has substantial manufacturing facilities in Consolidated interest rate
India, US, China, and Belgium. Its fully Impact of 100bps reduction in FY11 0.0% 13.7%
integrated business model includes
Source: J.P. Morgan estimates.
consultancy, site development, design,
manufacturing, installation and overhaul and
maintenance services. Suzlon has had a
market share above 50% in India in the past
six years and a global market share of
12.3%. Suzlon also sells gearboxes through
its associate Hansen.
Price target and valuation analysis
Downgrade to UW from Neutral. We reduce our Mar-11 SOP PT to
Rs41/share from Rs60/share previously. Our price target is based on a
7.2x FY12E EV/EBITDA multiple (5% discount to consensus estimate
for Vestas) and includes Rs5/share for Suzlon's 26% stake in Hansen
Revenue composition (FY11E) valued at CMP. Suzlon is currently trading at 8.6x FY12E EV/EBITDA
a premium compared to global leader Vestas at 7.6x.

Key downside risks to our PT are- Continued weak execution and

Source: Company reports. famine of new orders. On the other hand receipt of big ticket orders is
an upside risk..
EPS: J.P. Morgan vs consensus
J. P. Morgan Consensus
FY11E (4.6) (0.8)
FY12E 3.7 3.4

Source: Bloomberg, J.P. Morgan estimates.

2
Shilpa Krishnan Asia Pacific Equity Research
(91-22) 6157-3580 17 August 2010
shilpa.x.krishnan@jpmorgan.com

Paucity of international order flows continues

Orders in traditionally large markets of US (36MW of inflows in FY10) and Europe
(97MW of inflows in FY10) have been scarce on account of low electricity demand
and sovereign crisis in key countries like Spain and Greece combined with subsidy
reductions with the tightening of fiscal budgets.

While China is now the largest market for WTG, intensive local competition limits
scope to secure new orders and exerts pressure on realizations.

The only silver lining has been India where Suzlon’s wind business secured 489MW
of orders in the Jun-q (843MW in FY10). Management expects the size of the Indian
WTG market to grow to 2.1GW from 1.6GW in FY10. If Suzlon maintains its
market share it should be able to secure ~1GW of orders from India in FY11,
implying intensity of orders will subside in the subsequent quarters.

Suzlon is also banking on 400MW near term orders from Brazil, from 1.8GW of
energy projects which were auctioned in Dec ’09. However Suzlon has not yet
received firm orders for this 400MW. Another auction for development of 2.4GW of
projects is expected to take place on 19 August 2010.

Table 1: New orders bagged by Suzlon's wind business (ex REPower)

MW
1QFY10 2QFY10 3QFY10 4QFY10 1QFY11 Orders as on 11/08/2010
India 49 186 331 277 489 579
China 98 0 0 0 51 416
USA 0 0 20 16 0 248
ANZ 0 0 48 0 0 53
Europe 13 84 0 0 0 162
S. America 0 0 0 0 0 0
Others 0 0 0 0 0 0
Total 160 270 399 293 540 1,458
Source: Company data.

Sticky order book results in execution risk

Despite having a 1,435MW international order backlog as of June 2009, only
776MW have been executed in the past 12 months. Execution has benn particularly
weak in China and Europe. Hence we are skeptical of revenue booking in
international markets and model 850MW of sales volumes from India and 700MW of
international sales giving them the benefit of 100MW of sales in Brazil.

Table 2: Sales volume for Suzlon's wind business (ex- REPower)

MW
Orders as
on 30/07/09 1QFY10 2QFY10 3QFY10 4QFY10 FY10 1QFY11 FY11E FY12E
India 66 58 123 140 361 682 139 850 1,000
China 586 0 112 35 36 183 39 300 300
USA 582 65 0 90 254 409 25 200 200
ANZ 132 0 19 109 0 128 0 50 200
Europe 118 0 23 13 0 36 4 50 50
S. America 17 0 0 17 0 17 0 100 300
Others 0 0 0 0 0 0 0 0 0
Total MW 1,501 123 277 404 651 1,455 207 1,550 2,050
Source: J.P. Morgan estimates, Company data.

3
Shilpa Krishnan Asia Pacific Equity Research
(91-22) 6157-3580 17 August 2010
shilpa.x.krishnan@jpmorgan.com

We reduce our delivery volume estimates by 14% to 1,550MW in FY11 and

maintain our FY12 volume estimate of 2,050MW. Consequently we reduce our
FY11 estimate to a consolidated loss to Rs8.1B vs. a loss Rs660M earlier and trim
our FY12 profit estimate by 2.5% to Rs6.5B.

The current order book of 1,458MW provides revenue visibility through FY11 based
on our estimate of delivery volumes of 1,343MW in the next 9 months. However
with no large orders coming through our FY12 estimate is at risk.

Valuation and Price Target

At 8.6x FY12E EV/EBITDA Suzlon trades at a premium to global leader Vestas
trading at 7.6x as well as other global players which are in 4-6x range. In our opinion
the premium to Vestas is not justified given Suzlon's relatively high leverage as
opposed to Vestas which has net cash on its balance sheet.

We reduce our Mar-11 PT to Rs41/share from Rs60/share previously. Our revised

Mar-11 SOP PT of Rs41/share incorporates (a) Rs36/share, at 7.2 FY12E
EV/EBITDA, a 5% discount to Vestas consensus est., (b) Rs5/share for 26.28% stake
in Hansen at its CMP.

Suzlon is the most leveraged wind co. with Net-debt/EBITDA of 4.2x FY12E vs.
<1.0 for global peers. We downgrade Suzlon to Underweight given premium
valuation relative to the sector and no visibility of large near term orders. Upside risk
to UW stems from stronger than expected order inflows from emerging markets over
the next 3-4 months.

Table 3: Peer valuation

P/E EV/EBITDA P/B Net-debt/EBITDA
Market Cap
Company Bloomberg Ticker (US$M) Price Currency FY11E FY12E FY12E FY12 FY12
Suzlon SUEL IN Equity 1,934 51.7 INR (11.8) 13.8 8.6 1.2 4.2
Vestas VWS DC Equity 10,793 306.2 DKK 22.7 17.3 7.6 2.4 (0.2)
Nordex NDX1 GR Equity 629 7.3 EUR 16.0 10.7 4.9 1.2 0.1
Gamesa GAM SM Equity 1,825 5.8 EUR 16.6 11.1 4.6 0.8 0.9
Repower RPW GR Equity 1,325 111.7 EUR 15.6 13.7 5.6 1.7 (1.0)
Clipper CWP LN Equity 158 47.0 GBp (4.5) 8.3 3.9 (1.4) (1.6)
Goldwind 002202 CH Equity 6,512 19.7 CNY 18.9 15.0 13.1 4.5 0.9
Source: J.P. Morgan estimates, Bloomberg. Note: estimates for Vestas, Nordex, Gamesa, REpower. Clipper and Goldwind based on fiscalized Bloomberg consensus estimates.

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Shilpa Krishnan Asia Pacific Equity Research
(91-22) 6157-3580 17 August 2010
shilpa.x.krishnan@jpmorgan.com

Table 4: Suzlon Energy: 1QFY11 results summary

Rs. in million, year-end March
1QFY11 1Q10A % YoY 4QFY10 %QoQ FY10 FY09
Sales 24,044 41,527 (42) 60,836 (60) 206,197 260,817
Suzlon Wind Business 14,410 11,640 24 41,500 (65) 96,350 158,970
RePower 9,490 20,800 (54) 19,230 (51) 85,020 71,250
Total Expenditure (28,042) (41,590) (33) (56,294) (50) (198,362) (234,429)
Raw Material cost (17,769) (29,114) (39) (38,219) (54) (136,282) (168,568)
Manpower (3,976) (5,924) (33) (4,226) (6) (21,454) (21,658)
Other op exp (6,297) (6,553) (4) (13,849) (55) (40,626) (44,204)
EBITDA (3,997) (64) 4,542 7,835 26,388
Suzlon Wind Business (2,920) (1,740) 3,510 (580) 15,730
RePower (1,120) 1,300 1,040 6,360 4,780
Other income 235 400 (41) 910 (74) 2,290 4,488
PBIDT (3,762) 337 5,452 10,125 30,876
Financial charges (2,611) (3,128) (17) (3,002) (13) (11,950) (9,012)
EBDT (6,373) (2,791) 2,451 (1,825) 21,864
Depreciation (1,265) (1,626) (22) (1,451) (13) (6,630) (5,731)
Profit before tax (7,638) (4,417) 1,000 (8,455) 16,133
Tax 237 (26) (2,953) (3,561) (2,881)
Profit after tax (7,401) (4,443) (1,953) (12,016) 13,252
Minority interest 183 99 (120) (90)
Share of associates profir after tax (69) 715 122 161
Extraordinary items (1,836) (183) 67 2,119
PATAMI (Reported) (9,122) (3,812.0) (1,884.7) (9,825.8)
Adjusted PATAMI (5,997) (3,630) (1,951) (11,945)
Source: Company reports. Note: FY09 financials includes sales from Hansen which is now an associate. 1QFY11 loss also adjusted for FX losses of Rs.1B in translation of REPower COGS and
Rs290M of accounting policy alignment related loss in REPower besides extra ordinaries mentioned in the table above.

5
Shilpa Krishnan Asia Pacific Equity Research
(91-22) 6157-3580 17 August 2010
shilpa.x.krishnan@jpmorgan.com

Table 5: Suzlon Energy: Summary P&L

Rs. in million, year-end March
FY09 FY10 FY11E FY12E
Sale volumes (MW) 2,790 1,461 1,550 2,050
Sales 260,817 206,197 189,094 241,564
-Wind business 158,970 96,350 95,021 135,331
-Hansen 30,794 24,899 0 0
-Repower 71,250 85,020 94,073 106,233
Sales growth (%) NM (20.9) (8.3) 27.7
-Wind business 38.6 (39.4) (1.4) 42.4
-Hansen 39.2 (19.1)
-Repower 19.3 10.6 12.9
EBITDA 27,916 10,465 6,612 20,450
-Wind business 15,730 (580) (970) 11,836
-Hansen 6,940 1,850
-Repower 4,780 6,360 7,582 8,614
EBITDA margin (%) 10.7 5.1 3.5 8.5
-Wind business 9.9 (0.6) (1.0) 8.7
-Hansen 22.5 7.4
-Repower 6.7 7.5 8.1 8.1
Depreciation (5,731) (6,630) (4,931) (5,023)
Other income 4,488 2,290 2,148 1,907
Interest (10,539) (14,580) (11,079) (9,571)
-Acquisition related (2,100) (1,579) (1,034) (490)
-Other (8,439) (13,001) (10,045) (9,081)
PBT 16,134 (8,455) (7,250) 7,764
Tax (2,881) (3,561) 1,305 (1,397)
Minority (1,947) (90) (368) (410)
Add share of associate profits 23 161 119 533
Adjusted PAT 11,329 (11,945) (6,194) 6,488
% growth (14) (205) (48) (205)
Extraordinary (8,963) 2,119 (3,190) 0
Reported PAT 2,366 (9,826) (9,384) 6,488
Source: Company reports and J.P. Morgan estimates.

Table 6: Suzlon Energy: Summary Balance Sheet

Rs. in million, year-end March
FY09 FY10 FY11E FY12E
Gross Block 151,024 115,383 119,695 124,163
Less: Accumulated depreciation (18,210) (13,772) (18,703) (23,727)
Net block 132,814 101,611 100,992 100,437
CWIP 19,840 4,130 4,130 4,130
Others 2,087 1,547 (452) (567)
Investments 51 10,923 10,923 10,923
Cash 30,698 29,043 18,583 6,784
Net current assets-ex cash 72,607 48,723 42,065 49,034
Total Assets 258,098 195,977 176,242 170,741

Debt 148,696 126,679 103,063 91,197

Shareholder's equity 86,267 66,013 69,644 76,133
Minority interest 23,135 3,285 3,534 3,412
Total Liabilities 258,098 195,977 176,242 170,741

Net-debt 117,997 97,637 84,480 84,413

EBITDA 27,916 10,465 6,612 20,450
Capex NM 51,351 (4,312) (4,468)

D/E 1.7 1.9 1.5 1.2

Net-D/E 1.4 1.48 1.2 1.1
Net-debt/EBITDA 4.2 9.3 12.8 4.1
NWC (ex-cash) [days] 102 86 81 74
RoE(%) 13.6 (15.8) (11.9) 8.9
Source: Company reports and J.P. Morgan estimates.

6
Shilpa Krishnan Asia Pacific Equity Research
(91-22) 6157-3580 17 August 2010
shilpa.x.krishnan@jpmorgan.com

Suzlon Energy: Summary of Financials

Profit and Loss statement Cash flow statement
Rs in millions, year-end Mar FY09 FY10 FY11E FY12E Rs in millions, year-end Mar FY09 FY10 FY11E FY12E

Revenues 260,817 206,197 189,094 241,564 EBIT 22,185 3,835 1,681 15,427
% change Y/Y 90.7 (20.9) (8.3) 27.7 Depreciation & amortisation 5,731 6,630 4,931 5,023
EBITDA 27,916 10,465 6,612 20,450 Change in working capital (19,713) 23,884 6,658 (6,969)
% change Y/Y 38.3 (62.5) (36.8) 209.3 Taxes (2,881) (3,561) 1,305 (1,397)
EBITDA Margin (%) 10.7 5.1 3.5 8.5 Others (4,475) 2,290 858 1,907
EBIT 22,185 3,835 1,681 15,427 Cash flow from operations 848 33,078 15,432 13,991
% change Y/Y 28.3 (82.7) (56.2) 817.7
EBIT Margin (%) 8.5 1.9 0.9 6.4 Capex (70,652) 40,479 (4,312) (4,468)
Net Interest (6,051) (12,290) (8,931) (7,663) Free cash flow (69,805) 73,557 11,120 9,523
Earnings before tax 16,134 -8,455 -7,250 7,764
% change Y/Y 10.1 (152.4) (14.3) (207.1)

Tax (2,881) (3,561) 1,305 (1,397) Net Interest (10,539) (14,580) (11,079) (9,571)
as % of EBT 17.9 (42.1) 18.0 18.0 Debt raised/ (repaid) 49,350 (22,016) (23,616) (11,866)
Minority and others (1,924) 72 (249) 122 Other (7,910) 0 11,825 115
Net Income (pre
exceptionals) 11,329 (11,945) (8,094) 6,488 Dividends paid 0 0 0 0

% change Y/Y (13.9) (205.4) (32.2) (180.2) Beginning cash 69,602 30,698 29,043 17,293

Shares Outstanding 1551 1557 1745 1745 Ending cash 30,698 29,043 17,293 5,494
EPS (pre exceptionals) 7.3 -7.7 -4.6 3.7 DPS 0.0 0.0 0.0 0.0
% change Y/Y (14.0) (205.0) (39.6) (180.2)
Balance sheet Ratio Analysis
Rs in millions, year-end Mar FY09 FY10 FY11E FY12E %, year-end Mar FY09 FY10 FY11E FY12E

Cash and cash equivalents 30,698 29,043 17,293 5,494 EBITDA margin 10.7 5.1 3.5 8.5
Other current assets 157,432 113,896 110,076 147,521 Net profit margin 4.3 (5.8) (4.3) 2.7
Current assets 188,130 142,939 127,369 153,015
Current Liabilities 115,523 94,216 85,304 103,980
Net Current Assets 72,607 48,723 42,065 49,034 Sales growth 90.7 (20.9) (8.3) 27.7
Investments 51 10,923 10,923 10,923 Net profit growth (13.9) (205.4) (32.2) (180.2)
Net fixed assets 152,654 105,741 105,122 104,567 EPS growth 7.3 (7.7) (4.6) 3.7
Others 105,468 90,261 71,854 67,023
Total assets 258,123 196,002 176,976 171,590
Net debt/EBITDA (x) 4.2 9.3 13.0 4.2

Total debt 148,696 126,679 103,063 91,197 Net debt to equity 1.4 1.5 1.2 1.1
Other liabilities 24,110 3,467 3,559 3,437 Sales/assets 1.0 1.1 1.1 1.4
Total liabilities 172,805 130,146 106,622 94,634 Assets/equity 3.0 3.0 2.5 2.3
Shareholders' equity 85,317 65,856 69,644 76,133 ROE 13.6 (15.8) (11.9) 8.9
BVPS 55.0 42.3 39.9 43.6 ROCE 4.8 (6.2) (4.7) 3.9
Source: Company reports and J.P.Morgan estimates.

7
Shilpa Krishnan Asia Pacific Equity Research
(91-22) 6157-3580 17 August 2010
shilpa.x.krishnan@jpmorgan.com

Analyst Certification:
The research analyst(s) denoted by an “AC” on the cover of this report certifies (or, where multiple research analysts are primarily
responsible for this report, the research analyst denoted by an “AC” on the cover or within the document individually certifies, with
respect to each security or issuer that the research analyst covers in this research) that: (1) all of the views expressed in this report
accurately reflect his or her personal views about any and all of the subject securities or issuers; and (2) no part of any of the research
analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the
research analyst(s) in this report.
Important Disclosures

• Client of the Firm: Suzlon Energy Ltd is or was in the past 12 months a client of JPMSI.

Suzlon Energy Ltd (SUZL.BO) Price Chart

798 Date Rating Share Price Price Target

OW Rs390 N Rs340 N Rs80 N Rs80 (Rs) (Rs)
665 11-Feb-07 UW 249.03 236.00
UW Rs236 N Rs304.8 OW Rs360 N Rs230 N Rs95 N Rs60 28-May-07 N 256.38 300.00
532 24-Jul-07 N 300.23 304.80
Rs280 N Rs300 OW Rs469 N Rs265 N Rs110 N Rs70
24-Oct-07 OW 348.21 390.00
Price(Rs) 399 29-Jan-08 OW 341.15 469.00
04-Mar-08 OW 252.05 360.00
266 17-Apr-08 N 292.70 340.00
01-Aug-08 N 222.80 265.00
11-Sep-08 N 243.80 230.00
133
02-Nov-08 N 44.45 80.00
01-Jul-09 N 106.80 110.00
0
Sep Jun Mar Dec Sep Jun
10-Sep-09 N 96.95 95.00
06 07 08 08 09 10 03-Nov-09 N 58.25 80.00
11-Apr-10 N 75.15 70.00
Source: Bloomberg and J.P. Morgan; price data adjusted for stock splits and dividends.
This chart shows J.P. Morgan's continuing coverage of this stock; the current analyst may or may not have covered it 01-Jun-10 N 55.60 60.00
over the entire period.
J.P. Morgan ratings: OW = Overweight, N = Neutral, UW = Underweight.

Explanation of Equity Research Ratings and Analyst(s) Coverage Universe:

J.P. Morgan uses the following rating system: Overweight [Over the next six to twelve months, we expect this stock will outperform the
average total return of the stocks in the analyst’s (or the analyst’s team’s) coverage universe.] Neutral [Over the next six to twelve
months, we expect this stock will perform in line with the average total return of the stocks in the analyst’s (or the analyst’s team’s)
coverage universe.] Underweight [Over the next six to twelve months, we expect this stock will underperform the average total return of
the stocks in the analyst’s (or the analyst’s team’s) coverage universe.] J.P. Morgan Cazenove’s UK Small/Mid-Cap dedicated research
analysts use the same rating categories; however, each stock’s expected total return is compared to the expected total return of the FTSE
All Share Index, not to those analysts’ coverage universe. A list of these analysts is available on request. The analyst or analyst’s team’s
coverage universe is the sector and/or country shown on the cover of each publication. See below for the specific stocks in the certifying
analyst(s) coverage universe.

Coverage Universe: Shilpa Krishnan: Adani Enterprises Ltd (ADEL.BO), Adani Power (ADAN.BO), Bharat Heavy
Electricals (BHEL) (BHEL.BO), GMR Infrastructure Ltd (GMRI.BO), GVK Power & Infrastructure (GVKP.BO), JSW
Energy Ltd. (JSWE.BO), Lanco Infratech (LAIN.BO), Larsen & Toubro (LART.BO), NTPC (NTPC.BO), Reliance
Infrastructure Ltd (RLIN.BO), Reliance Power (RPOL.BO), Suzlon Energy Ltd (SUZL.BO), Tata Power (TTPW.BO)

8
Shilpa Krishnan Asia Pacific Equity Research
(91-22) 6157-3580 17 August 2010
shilpa.x.krishnan@jpmorgan.com

J.P. Morgan Equity Research Ratings Distribution, as of June 30, 2010

Overweight Neutral Underweight
(buy) (hold) (sell)
JPM Global Equity Research Coverage 46% 42% 12%
IB clients* 49% 46% 31%
JPMSI Equity Research Coverage 44% 48% 9%
IB clients* 68% 61% 53%
*Percentage of investment banking clients in each rating category.
For purposes only of NASD/NYSE ratings distribution rules, our Overweight rating falls into a buy rating category; our Neutral rating falls into a hold
rating category; and our Underweight rating falls into a sell rating category.

Valuation and Risks: Please see the most recent company-specific research report for an analysis of valuation methodology and risks on
any securities recommended herein. Research is available at http://www.morganmarkets.com , or you can contact the analyst named on
the front of this note or your J.P. Morgan representative.

Analysts’ Compensation: The equity research analysts responsible for the preparation of this report receive compensation based upon
various factors, including the quality and accuracy of research, client feedback, competitive factors, and overall firm revenues, which
include revenues from, among other business units, Institutional Equities and Investment Banking.

Registration of non-US Analysts: Unless otherwise noted, the non-US analysts listed on the front of this report are employees of non-US
affiliates of JPMSI, are not registered/qualified as research analysts under NASD/NYSE rules, may not be associated persons of JPMSI,
and may not be subject to NASD Rule 2711 and NYSE Rule 472 restrictions on communications with covered companies, public
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Shilpa Krishnan Asia Pacific Equity Research
(91-22) 6157-3580 17 August 2010
shilpa.x.krishnan@jpmorgan.com

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“Other Disclosures” last revised March 1, 2010.

Copyright 2010 JPMorgan Chase & Co. All rights reserved. This report or any portion hereof may not be reprinted, sold or
redistributed without the written consent of J.P. Morgan.

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Shilpa Krishnan Asia Pacific Equity Research
(91-22) 6157-3580 17 August 2010
shilpa.x.krishnan@jpmorgan.com

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