ILFS Transportation Management Meet Update; Emkay

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ILFS Transportation Management Meet Update; ITNL signs new concession agreement; Accumulate; Target: Rs 243

n    ITNL signed an concession agreement for 17.5 years with Govt of Jharkhand for 68.7km for improvement of Chaibasa-Kandra-Chowka(CKC) Road in Jharkhand with estimated project cost at Rs 4.3bn

n    We expect ITNL to recognize 3% of the fee income upfront in FY12E and remaining over the 2.5years of construction period, leading to marginal reduction in FY12E profitability

n    We have fine tuned our Operation and Maintenance expense for Chenani Nashri project which has lead to fair value of the project improving to Rs 8.2 as compared to Rs 1.1/share

n    Mgmt expects order inflow in the region of Rs 50bn annually for FY12E-13E excluding Jharkhand & Chattisgarh project. Maintain Accumulate with a reduced target of Rs 243