! Electricity revenues improve, Q4FY13 PAT up by 27% YoY: Reliance
Infrastructure (RInfra), in Q4FY13, has reported revenue de-growth of 12.7% YoY
on the back of 44% YoY de-growth in EPC revenues. However, there has been an
impressive 28% YoY growth in electricity sales (on account of increased
contribution from CSS and WC to the tune of Rs910m) and 75.6% growth in BOT
sales. A better traction in Infrastructure EBIT margins led to 27.7% and 18.9%
YoY improvement in PAT in Q4FY13 and FY13, respectively.
! Performance of SPVs: Mumbai circle added 72,600 and Delhi added 146,650
customers in FY13. Delhi distribution clocked sales of Rs49bn, growth of 37%
YoY and number of units stood at 14.3bn units, up 5% YoY. Road portfolio
earned revenues of Rs5.2bn. Number of units traded in the trading arm stands
at 5.3bn units.
! Updates: EPC order book stands at Rs110bn, declining from Rs121bn in Q3FY13.
Western region trassmission lines are yet to become operational on account of
‘Right Of Way’ issues; however, the project will achive COD in Q3FY14E.
Regulatory assets in Mumbai and Delhi circle stand at Rs48bn and Rs55bn,
respectively, which the company plans to recover from FY14E onwards. The
capital expenditure envisaged for the next three years stands at Rs80bn with an
outstanding equity commitment of Rs15bn. The company is further planning to
bid for new distribution circles in power and distressed (along with fresh) BOT
projects in the roads segment.
! Valuation: At CMP, stock trades attractively at 0.3x P/BV FY15E. While mild
overhangs in Regulatory and Infrastructure business continue to remain,
contribution from new assets will help revive the sentiment towards the stock.
We have downgraded the estimates factoring lower revenue growth from EPC
and Infrastruture businesses. We maintain ‘Accumulate’ on the stock.
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Infrastructure (RInfra), in Q4FY13, has reported revenue de-growth of 12.7% YoY
on the back of 44% YoY de-growth in EPC revenues. However, there has been an
impressive 28% YoY growth in electricity sales (on account of increased
contribution from CSS and WC to the tune of Rs910m) and 75.6% growth in BOT
sales. A better traction in Infrastructure EBIT margins led to 27.7% and 18.9%
YoY improvement in PAT in Q4FY13 and FY13, respectively.
! Performance of SPVs: Mumbai circle added 72,600 and Delhi added 146,650
customers in FY13. Delhi distribution clocked sales of Rs49bn, growth of 37%
YoY and number of units stood at 14.3bn units, up 5% YoY. Road portfolio
earned revenues of Rs5.2bn. Number of units traded in the trading arm stands
at 5.3bn units.
! Updates: EPC order book stands at Rs110bn, declining from Rs121bn in Q3FY13.
Western region trassmission lines are yet to become operational on account of
‘Right Of Way’ issues; however, the project will achive COD in Q3FY14E.
Regulatory assets in Mumbai and Delhi circle stand at Rs48bn and Rs55bn,
respectively, which the company plans to recover from FY14E onwards. The
capital expenditure envisaged for the next three years stands at Rs80bn with an
outstanding equity commitment of Rs15bn. The company is further planning to
bid for new distribution circles in power and distressed (along with fresh) BOT
projects in the roads segment.
! Valuation: At CMP, stock trades attractively at 0.3x P/BV FY15E. While mild
overhangs in Regulatory and Infrastructure business continue to remain,
contribution from new assets will help revive the sentiment towards the stock.
We have downgraded the estimates factoring lower revenue growth from EPC
and Infrastruture businesses. We maintain ‘Accumulate’ on the stock.
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