Visit http://indiaer.blogspot.com/ for complete details �� ��
2QFY11: Good traction Operationally
2Q Beats UBSe and Consensus; Growth strong on QoQ as well Revenues grew 21x YoY to Rs3bn vs. UBSe of Rs 1.9bn; with earnings up 4x YoY
to Rs505mn compared to UBSe of Rs228mn. EBITDA grew to Rs812mn vs UBSe of Rs540mn on back of healthy margins of 27%. Growth was strong
on QoQ basis as well. Good progress on construction across key projects (Panvel, Gurgaon, Chennai) contributed to this; we expect this trend to
continue in 2HFY11.
Good traction operationally 1) Strong pre-sales of 1.84msf (vs.0.65msf in 1Q) to generate potential cash flow of Rs30.9bn – driven by sales
promotions of ‘Sky’ (1.05msf); 2) Area under development grew by 2.9msf to ~15msf; 3) Leasing picked up with 0.11msf leased in 2Q at IPIT’s
Mumbai assets (~2msf of ready inventory); and 4) new NTC mill land launch, also seeing good responses.
Triggers: Sustained pre-sales/leasing recovery, value creation in power sub We believe sustained pre-sales, leasing recovery in Mumbai office
assets along with improved execution will be key triggers. This apart, increased visibility on progress of 58.6% power sub (setting up 5400MW); and
plans to unlock value through re-structuring of ownership will drive near-term stock performance, in our view.
Valuation: Maintain Buy rating with PT of Rs235 Our target is at 25% to NAV of Rs315 that ascribes Rs76 to IPIT assets, Rs82 to the listed power
sub, and Rs76 to recently won NTC mill land – all of which provide a strong valuatio
No comments:
Post a Comment