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IRB Infrastructure
For 1QFY2012, IRB reported strong set of numbers on all fronts. IRB’s top line witnessed
robust growth of 56.5% yoy to `801.3cr (`512.0cr), marginally ahead of our estimate of
`766.6cr. The C&EPC segment reported top line of `597.2cr, whopping 80.9% growth on
a yoy basis against our expectations of `533.5cr. We believe the construction segment has
posted robust numbers due to significant contribution (50–60%) from the Surat Dahisar
project, which is nearing completion, and pick-up in execution of the Amritsar Pathankot,
Talegaon Amravati and Jaipur Deoli projects.
On the operating front, IRB’s margin came in at 41.1% (44.8%), slightly lower than our
estimate of 42.3%, on account of increased contribution from the low-margin C&EPC
segment. On the earnings front as well, IRB reported healthy growth of 19.1% to `180.0cr
(`151.2cr) and 14.2% to `134.2cr (`117.5cr) on a yoy basis at the PBT and PAT levels,
respectively, against our estimates of `168.1cr and `117.8cr for PBT and PAT, respectively.
Our valuation of `191/share for the consolidated business uses NPV/EV/EBITDA-based
valuation for BOT assets and the C&EPC arm, respectively. We factor in CoE of 14% and a
traffic growth rate of 5/6/7% for its BOT assets. Owing to the recent run-up in the stock
price (IRB’s stock has increased by ~16.1% in the last one month as against a return of
5.7 % by the Sensex), we recommend Neutral on the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
IRB Infrastructure
For 1QFY2012, IRB reported strong set of numbers on all fronts. IRB’s top line witnessed
robust growth of 56.5% yoy to `801.3cr (`512.0cr), marginally ahead of our estimate of
`766.6cr. The C&EPC segment reported top line of `597.2cr, whopping 80.9% growth on
a yoy basis against our expectations of `533.5cr. We believe the construction segment has
posted robust numbers due to significant contribution (50–60%) from the Surat Dahisar
project, which is nearing completion, and pick-up in execution of the Amritsar Pathankot,
Talegaon Amravati and Jaipur Deoli projects.
On the operating front, IRB’s margin came in at 41.1% (44.8%), slightly lower than our
estimate of 42.3%, on account of increased contribution from the low-margin C&EPC
segment. On the earnings front as well, IRB reported healthy growth of 19.1% to `180.0cr
(`151.2cr) and 14.2% to `134.2cr (`117.5cr) on a yoy basis at the PBT and PAT levels,
respectively, against our estimates of `168.1cr and `117.8cr for PBT and PAT, respectively.
Our valuation of `191/share for the consolidated business uses NPV/EV/EBITDA-based
valuation for BOT assets and the C&EPC arm, respectively. We factor in CoE of 14% and a
traffic growth rate of 5/6/7% for its BOT assets. Owing to the recent run-up in the stock
price (IRB’s stock has increased by ~16.1% in the last one month as against a return of
5.7 % by the Sensex), we recommend Neutral on the stock.
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