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IVRCL Q4FY12 standalone result was below our expectation on execution
delays. The revenue for Q4FY12 fell by 22.2% yoy on execution delays in 3-4
projects. The execution delays caused revenue loss of Rs 5-5.5 bn in 12 month
ended March 2012. Execution took a hit on various hurdles like legal &
environmental issues, slower decisions, design issues, etc related to those
four contracts. EBITDA margin took a hit with 227 bps yoy decline at 6.3% on
provisions against debtor and lower revenue bookings. The PAT for the
quarter declined by 92.3% yoy to Rs 49.4 mn. IVRCL has an order backlog of
Rs 278bn (including Rs 54 bn of L1 order) at the end of the quarter.
Key Highlights
Execution worsen in Q4FY12: The execution continued to remain subdued in
Q4FY12 with net revenue declined sharply by 22.2% on yoy basis to Rs 15.96
bn. Execution took a hit on various hurdles like legal & environmental issues,
slower decisions, design issues, etc related to four contracts. This has caused
annual revenue loss of over Rs 5-5.5 bn. We believe that the execution may
remain weak in next few quarters also. But looking at the strong order book
and a low revenue base in FY12E, we expect 12% revenue growth in FY13E.
EBITDA margin declined by 227 bps on yoy: During the quarter, IVRCL has
reported 227 bps yoy and 101 bps qoq decline in the EBITDA margins on
account of Rs 500 mn provisions against debtors and lower execution. As a
result the EBITDA for the quarter declined by 42.8% yoy to Rs 1010mn. The
interest cost for the quarter remained flattish on yoy and qoq to Rs 661 mn.
The debt at the end of the quarter remained unchanged at Rs 25 bn over
Q3FY12. The PAT for the quarter declined by 92.3% yoy to Rs 49.4 mn.
Order book grew to Rs 278 bn: IVRCL has reported a robust Rs 278 bn of
order backlog at the end of the quarter which also includes Rs 54 bn of L1
orders. The order inflow for 12 months ended March 2012 was at Rs 107 bn.
The order book composition included Rs 71.29 bn of own BOT projects.
Order backlog gives visibility, but execution delays continue to worry: The
execution rate in 12 month ended march 2012 was 22.5% of the order backlog
at the beginning of FY12. Going by the same, the current order backlog gives
a strong revenue growth visibility in FY13. But looking at delays in execution
by the company, we remain conservative in terms of making revenue growth
estimates and expect the execution rate to reduce further to 20%.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
IVRCL Q4FY12 standalone result was below our expectation on execution
delays. The revenue for Q4FY12 fell by 22.2% yoy on execution delays in 3-4
projects. The execution delays caused revenue loss of Rs 5-5.5 bn in 12 month
ended March 2012. Execution took a hit on various hurdles like legal &
environmental issues, slower decisions, design issues, etc related to those
four contracts. EBITDA margin took a hit with 227 bps yoy decline at 6.3% on
provisions against debtor and lower revenue bookings. The PAT for the
quarter declined by 92.3% yoy to Rs 49.4 mn. IVRCL has an order backlog of
Rs 278bn (including Rs 54 bn of L1 order) at the end of the quarter.
Key Highlights
Execution worsen in Q4FY12: The execution continued to remain subdued in
Q4FY12 with net revenue declined sharply by 22.2% on yoy basis to Rs 15.96
bn. Execution took a hit on various hurdles like legal & environmental issues,
slower decisions, design issues, etc related to four contracts. This has caused
annual revenue loss of over Rs 5-5.5 bn. We believe that the execution may
remain weak in next few quarters also. But looking at the strong order book
and a low revenue base in FY12E, we expect 12% revenue growth in FY13E.
EBITDA margin declined by 227 bps on yoy: During the quarter, IVRCL has
reported 227 bps yoy and 101 bps qoq decline in the EBITDA margins on
account of Rs 500 mn provisions against debtors and lower execution. As a
result the EBITDA for the quarter declined by 42.8% yoy to Rs 1010mn. The
interest cost for the quarter remained flattish on yoy and qoq to Rs 661 mn.
The debt at the end of the quarter remained unchanged at Rs 25 bn over
Q3FY12. The PAT for the quarter declined by 92.3% yoy to Rs 49.4 mn.
Order book grew to Rs 278 bn: IVRCL has reported a robust Rs 278 bn of
order backlog at the end of the quarter which also includes Rs 54 bn of L1
orders. The order inflow for 12 months ended March 2012 was at Rs 107 bn.
The order book composition included Rs 71.29 bn of own BOT projects.
Order backlog gives visibility, but execution delays continue to worry: The
execution rate in 12 month ended march 2012 was 22.5% of the order backlog
at the beginning of FY12. Going by the same, the current order backlog gives
a strong revenue growth visibility in FY13. But looking at delays in execution
by the company, we remain conservative in terms of making revenue growth
estimates and expect the execution rate to reduce further to 20%.
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