Q3FY14 Financial Results Highlight:
In Q3FY14, J Kumar Infraprojects Ltd (JKIL) posted a revenue of `2727.4 mn, with
a modest growth of 6.6% on Y-o-Y basis, however it has grown by 15.8% on
sequential basis. For 9MFY14, JKIL’s revenue grew by 7.2% to `6827.5 Mn.
JKIL’s EBITDA margin during the quarter stood at 18.3% with an improvement of
140bps on Y-o-Y basis, however it has shown an improvement of 10bps on sequential
basis backed by operational efficiency. For 9MFY14, JKIL was able to post decent
EBITDA margin of 18.2% Vs. 16.8% in 9MFY13.
In Q3FY14, JKIL reported a net profit of `197 mn, which was flat on Y-o-Y basis,
and grown by 12.3% on sequential basis. The Net profit margin during the quarter
stood at 7.2% against 7.7% in Q3FY13, with a decline 50bps on Y-o-Y basis. The
decline in net profit margin was attributed to substantial increase in interest and
depreciation expense. For 9MFY14, net profit margin declined by 50bps to 7.2%
During the quarter, JKIL’s unexecuted order book stood at `31362.1 Mn which has
declined by 7.1% on sequential basis, however it has declined by ~19.5% on Y-o-Y
basis mainly on account of current slowdown in construction sector. JKIL presently
has 7 L1 position orders worth `12650 Mn.
The order book position of `31362.1 mn as on 31st Dec 2013 includes 88.2% from
transportation engineering (including flyover and roads), civil construction (9.5%),
irrigation project (2.1%) and piling (0.2%).
Valuation:
At CMP of `190/ share the stock is trading at 6.2x to its FY14E EPS of `29.0 and at
5.0x to its FY15E EPS of `35.7. Present healthy order book position and any order
additions during the year can provide better revenue visibility in coming years,
however we revise our rating from ‘BUY’ to “HOLD” on JKIL and maintain our target
price of `214/share (which is at 6x P/E on FY15E EPS of `35.7)
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In Q3FY14, J Kumar Infraprojects Ltd (JKIL) posted a revenue of `2727.4 mn, with
a modest growth of 6.6% on Y-o-Y basis, however it has grown by 15.8% on
sequential basis. For 9MFY14, JKIL’s revenue grew by 7.2% to `6827.5 Mn.
JKIL’s EBITDA margin during the quarter stood at 18.3% with an improvement of
140bps on Y-o-Y basis, however it has shown an improvement of 10bps on sequential
basis backed by operational efficiency. For 9MFY14, JKIL was able to post decent
EBITDA margin of 18.2% Vs. 16.8% in 9MFY13.
In Q3FY14, JKIL reported a net profit of `197 mn, which was flat on Y-o-Y basis,
and grown by 12.3% on sequential basis. The Net profit margin during the quarter
stood at 7.2% against 7.7% in Q3FY13, with a decline 50bps on Y-o-Y basis. The
decline in net profit margin was attributed to substantial increase in interest and
depreciation expense. For 9MFY14, net profit margin declined by 50bps to 7.2%
During the quarter, JKIL’s unexecuted order book stood at `31362.1 Mn which has
declined by 7.1% on sequential basis, however it has declined by ~19.5% on Y-o-Y
basis mainly on account of current slowdown in construction sector. JKIL presently
has 7 L1 position orders worth `12650 Mn.
The order book position of `31362.1 mn as on 31st Dec 2013 includes 88.2% from
transportation engineering (including flyover and roads), civil construction (9.5%),
irrigation project (2.1%) and piling (0.2%).
Valuation:
At CMP of `190/ share the stock is trading at 6.2x to its FY14E EPS of `29.0 and at
5.0x to its FY15E EPS of `35.7. Present healthy order book position and any order
additions during the year can provide better revenue visibility in coming years,
however we revise our rating from ‘BUY’ to “HOLD” on JKIL and maintain our target
price of `214/share (which is at 6x P/E on FY15E EPS of `35.7)
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