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L - 1 b i d s g e t t i n g s t r o n g e r …
Unity Infraprojects’ Q1FY12 results were better than our expectation
largely on account of lower-than-expected interest expenses (a key
difference from other construction companies) as this quarter it used the
lower working capital loan limit with the realisation of WC during the
quarter (down to | 950-1000 crore from | 1086 crore from Q4FY11). The
order book stood at | 3478 crore, order book to bill ratio was 2x (on TTM
basis). Additionally, the company has witnessed order inflow of ~| 1100
crore in YTD CY11 and currently has L-1 bids worth | 1500 crore, a
majority of which it expects will materialise in the next one or two
months. We maintain our BUY recommendation on the stock.
ƒ Bottomline supported by lower-than-expected interest expenses
Unity’s revenues grew 10.1% YoY to | 376 crore in Q1FY12 despite the
challenging business environment. EBITDA margin was flat at 13%.
However, the bottomline was better than our expectation at | 19.6
crore due to lower-than-expected interest expenses. Interest expenses
came down from | 30.1 crore in Q4FY11 to | 22.2 crore in Q1FY12 as
the company used the lower working capital limit in Q1FY12 with the
reduction of WC. The WC has come down sequentially to | 950-1000
crore in Q1FY12 from | 1086 crore in Q4FY11.
ƒ Order book to bill ratio at 2x, L-1 bids expand to | 1500 crore
Unity’s order book is at | 3478 crore, implying an order book to bill
ratio of 2x on a TTM basis. The order inflow has been healthy at ~|
1100 crore in YTDCY11. In terms of L-1 bids, it has now expanded to |
1500 crore from | 850 crore in the last quarter. The majority of L-1 bids
are expected to materialise in the next one or two months.
V a l u a t i o n
At the CMP, the stock is quoting at attractive valuation of 3.1x FY13E EPS
and 0.4x FY13E P/BV. While some pain is expected to remain in the near
term due to the challenging business environment, we believe Unity is
expected to perform better than other construction companies. The
current valuations are very attractive. Hence, we maintain our BUY
recommendation on the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
L - 1 b i d s g e t t i n g s t r o n g e r …
Unity Infraprojects’ Q1FY12 results were better than our expectation
largely on account of lower-than-expected interest expenses (a key
difference from other construction companies) as this quarter it used the
lower working capital loan limit with the realisation of WC during the
quarter (down to | 950-1000 crore from | 1086 crore from Q4FY11). The
order book stood at | 3478 crore, order book to bill ratio was 2x (on TTM
basis). Additionally, the company has witnessed order inflow of ~| 1100
crore in YTD CY11 and currently has L-1 bids worth | 1500 crore, a
majority of which it expects will materialise in the next one or two
months. We maintain our BUY recommendation on the stock.
ƒ Bottomline supported by lower-than-expected interest expenses
Unity’s revenues grew 10.1% YoY to | 376 crore in Q1FY12 despite the
challenging business environment. EBITDA margin was flat at 13%.
However, the bottomline was better than our expectation at | 19.6
crore due to lower-than-expected interest expenses. Interest expenses
came down from | 30.1 crore in Q4FY11 to | 22.2 crore in Q1FY12 as
the company used the lower working capital limit in Q1FY12 with the
reduction of WC. The WC has come down sequentially to | 950-1000
crore in Q1FY12 from | 1086 crore in Q4FY11.
ƒ Order book to bill ratio at 2x, L-1 bids expand to | 1500 crore
Unity’s order book is at | 3478 crore, implying an order book to bill
ratio of 2x on a TTM basis. The order inflow has been healthy at ~|
1100 crore in YTDCY11. In terms of L-1 bids, it has now expanded to |
1500 crore from | 850 crore in the last quarter. The majority of L-1 bids
are expected to materialise in the next one or two months.
V a l u a t i o n
At the CMP, the stock is quoting at attractive valuation of 3.1x FY13E EPS
and 0.4x FY13E P/BV. While some pain is expected to remain in the near
term due to the challenging business environment, we believe Unity is
expected to perform better than other construction companies. The
current valuations are very attractive. Hence, we maintain our BUY
recommendation on the stock.
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