Visit http://indiaer.blogspot.com/ for complete details �� ��
UBS Investment Research
Nagarjuna Construction Company
Q2FY11: In line performance
Q2FY11 revenues up 13% y/y, EBITDA margins at 10.3%,
Nagarjuna reported Q2 revenues of Rs12bn (+13% y/y, UBS-e Rs12.2b), EBITDA
margins of 10.3% (UBS-e 10%), and PAT of Rs460m (UBS-e Rs443m). Results
were boosted by higher-than-expected other income of Rs54m (UBS-e Rs11m),
pertaining to scrap sales and impacted by additional tax provisions of Rs40m.
Nagarjuna has reiterated its FY11 guidance of revenues of Rs58bn at standalone
level (consolidated revenues of Rs73bn) with standalone EBITDA margins of
~10% and order inflows of Rs100bn. H1FY11 Order book is at Rs161bn.
Working capital levels increase, led by higher advances to subcontractors
Working capital (excl cash and lons to subs) has increased by 33% y/y in H1,
higher than the revenue growth of 11%, led by increase in advances to
suppliers/sub-contractors. For the income tax enquiries that were initiated on
Nagarjuna in the month of October, the company does not expect additional
liabilities of more than Rs100-150m (Rs40m has been provided in Q2).
All Road BOTs to commence operations in this financial year
Nagarjuna expects all three u/construction road BOTs to commence operations in
FY11 and Himachal Sorang power project commissioning in Dec-11. Nagarjuna
has given the performance guarantee for the Sompeta power project and is
exploring alternative sites (in case it does not get environmental clearance at the
existing site). It is confident of completing the project by 2015.
Valuation: Buy rating with SOTP-based PT of Rs210
Our PT comprises Rs168 for construction, Rs25 for BOTs and Rs17 for real estate.
No comments:
Post a Comment