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1QFY12 results
IRB’s consol PAT rose 14% YoY to Rs1.3bn and came 11% ahead of our
estimates. This was driven by strong execution across projects, which led
to EPC revenues growing by 81% YoY; EPC Ebitda margins continued to
be strong at ~26%. Toll revenues were in-line - while collections at
Bharuch Surat rose 13% YoY (3% higher than estimates), Dahisar
disappointed (+7% YoY, -4% QoQ). IRB’s valuations look reasonable at
12x FY12 PE and 2.1x PB. Maintain O-PF; though we would look to
upgrade our reco, should any signs of easing of competitive bidding
intensity and rebound in the sluggish trend of BOT revenues emerge.
Results ahead of expectations
IRB’s 1QFY12 consol net profits grew by 14% YoY to Rs1,342m, 11% above
our expectations. EPC revenues rose 81% YoY to Rs5,972m, 19% ahead of
our estimates; EPC Ebitda margins continued to be high at ~26%. Daily toll
collection increased 19% YoY (10% QoQ), partly on account of an 18% toll
hike at Mumbai-Pune project, and Tumkur-Chitradurga becoming operational
in June. 43% of 1Q earnings were contributed by the BOT segment.
Strong execution; high EPC margins
EPC revenues increased sharply by 81% YoY (3% QoQ), to Rs5,972m, as
pace of execution picked up across Surat-Dahisar (~Rs3bn), Kolhapur
(~Rs700m) and Jaipur Deoli (~Rs1,100m) projects. This is despite 1Q being
a typically slower quarter due to the impact of monsoons. However, execution
across Amritsar Pathankot and Telegaon Amravati remained slow, while work
on Goa Panji is yet to commence due to land acquisition delays. EPC Ebitda
margins were strong at ~26%, resulting in a 63% YoY increase in Ebitda.
Sharp increase in interest expense meant that PAT growth was 37% YoY, to
Rs766m, versus our estimate of flat profits.
In-line toll collection
Toll collections rose 19% YoY to Rs2.8bn, as toll rates were hiked (by 18%) in
Mumbai-Pune project in April and Tumkur Chitradurga project became
operational in June. Toll growth at Surat Dahisar project at ~7% YoY (-4%
QoQ) was disappointing, while Bharuch Surat project showed a 13% YoY
jump in revenues. Toll collection at Tumkur Chitradurga (Rs114m in June) was
in-line with our FY12 expectations of Rs1.15bn (operational for 10 months).
Maintain O-PF
While we do not expect new wins to be necessarily seen as positive catalysts
in view of aggressive bidding, we maintain O-PF on IRB in view of reasonable
valuations (12x FY12 PE, 2.1x PB). BOT segment contributes 55-60% of
FY12-14 cash earnings and ~70% to our 12 month fwd SOTP of Rs200/sh.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
1QFY12 results
IRB’s consol PAT rose 14% YoY to Rs1.3bn and came 11% ahead of our
estimates. This was driven by strong execution across projects, which led
to EPC revenues growing by 81% YoY; EPC Ebitda margins continued to
be strong at ~26%. Toll revenues were in-line - while collections at
Bharuch Surat rose 13% YoY (3% higher than estimates), Dahisar
disappointed (+7% YoY, -4% QoQ). IRB’s valuations look reasonable at
12x FY12 PE and 2.1x PB. Maintain O-PF; though we would look to
upgrade our reco, should any signs of easing of competitive bidding
intensity and rebound in the sluggish trend of BOT revenues emerge.
Results ahead of expectations
IRB’s 1QFY12 consol net profits grew by 14% YoY to Rs1,342m, 11% above
our expectations. EPC revenues rose 81% YoY to Rs5,972m, 19% ahead of
our estimates; EPC Ebitda margins continued to be high at ~26%. Daily toll
collection increased 19% YoY (10% QoQ), partly on account of an 18% toll
hike at Mumbai-Pune project, and Tumkur-Chitradurga becoming operational
in June. 43% of 1Q earnings were contributed by the BOT segment.
Strong execution; high EPC margins
EPC revenues increased sharply by 81% YoY (3% QoQ), to Rs5,972m, as
pace of execution picked up across Surat-Dahisar (~Rs3bn), Kolhapur
(~Rs700m) and Jaipur Deoli (~Rs1,100m) projects. This is despite 1Q being
a typically slower quarter due to the impact of monsoons. However, execution
across Amritsar Pathankot and Telegaon Amravati remained slow, while work
on Goa Panji is yet to commence due to land acquisition delays. EPC Ebitda
margins were strong at ~26%, resulting in a 63% YoY increase in Ebitda.
Sharp increase in interest expense meant that PAT growth was 37% YoY, to
Rs766m, versus our estimate of flat profits.
In-line toll collection
Toll collections rose 19% YoY to Rs2.8bn, as toll rates were hiked (by 18%) in
Mumbai-Pune project in April and Tumkur Chitradurga project became
operational in June. Toll growth at Surat Dahisar project at ~7% YoY (-4%
QoQ) was disappointing, while Bharuch Surat project showed a 13% YoY
jump in revenues. Toll collection at Tumkur Chitradurga (Rs114m in June) was
in-line with our FY12 expectations of Rs1.15bn (operational for 10 months).
Maintain O-PF
While we do not expect new wins to be necessarily seen as positive catalysts
in view of aggressive bidding, we maintain O-PF on IRB in view of reasonable
valuations (12x FY12 PE, 2.1x PB). BOT segment contributes 55-60% of
FY12-14 cash earnings and ~70% to our 12 month fwd SOTP of Rs200/sh.
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