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S t r o n g e x e c u t i o n b o o s t s r e v e n u e s …
IRB reported a strong set of numbers in Q1FY12 on account of strong
execution in the construction division (revenues grew 84% YoY to | 572
crore). Despite strong revenue growth in Q1FY12, the management,
meanwhile, has maintained its guidance of 15-20% growth for FY12
implying that the management would like to look at ramp up on new
projects once execution on the Surat Dahisar project gets over in H1FY12.
In the tolling division, IRB hiked the Mumbai Pune Expressway toll rate by
18% and commenced tolling on the Tumkur Chitradurga toll project in
June, 2011. We maintain BUY with an SOTP price target of | 216/share.
ƒ Good set of Q1FY12 numbers driven by strong execution
IRB’s topline grew 56.6% YoY to | 801.3 crore (our expectation of | 636.4
crore) on the back of strong revenue booking in the construction division.
The company reported construction revenues of | 572 crore (up ~84%
YoY) vs. our estimates of | 410 crore on account of higher-than-expected
execution. However, the interest expenses came high at | 117.4 crore vs.
our expectation of | 88 crore. Furthermore, the effective tax rate stood at
24.6% in Q1FY12 vs. 20.1% in Q1FY11.
ƒ Fund raising plans – not on immediate basis
The Board passed an enabling resolution for raising funds in
domestic/international markets through various instruments such as
equity shares/warrants with non-convertible debenture under QIP for up
to | 1200 crore. However, this would not happen on an immediate basis.
This may be done for new project wins in future.
ƒ IT raid at IRB’s premises
The media reported an IT raid at the company’s Mumbai and Pune
premises. The details are still awaited on the same.
V a l u a t i o n
At the CMP, the stock is trading at 12.1x FY13E EPS and 1.9x FY13E P/BV.
With a strong project portfolio and robust order book, we maintain our
BUY rating with SOTP price target of | 216/share (BOT project - |
132/share, construction business - | 79/share and investment in real
estate business at | 5.2/share).
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
S t r o n g e x e c u t i o n b o o s t s r e v e n u e s …
IRB reported a strong set of numbers in Q1FY12 on account of strong
execution in the construction division (revenues grew 84% YoY to | 572
crore). Despite strong revenue growth in Q1FY12, the management,
meanwhile, has maintained its guidance of 15-20% growth for FY12
implying that the management would like to look at ramp up on new
projects once execution on the Surat Dahisar project gets over in H1FY12.
In the tolling division, IRB hiked the Mumbai Pune Expressway toll rate by
18% and commenced tolling on the Tumkur Chitradurga toll project in
June, 2011. We maintain BUY with an SOTP price target of | 216/share.
ƒ Good set of Q1FY12 numbers driven by strong execution
IRB’s topline grew 56.6% YoY to | 801.3 crore (our expectation of | 636.4
crore) on the back of strong revenue booking in the construction division.
The company reported construction revenues of | 572 crore (up ~84%
YoY) vs. our estimates of | 410 crore on account of higher-than-expected
execution. However, the interest expenses came high at | 117.4 crore vs.
our expectation of | 88 crore. Furthermore, the effective tax rate stood at
24.6% in Q1FY12 vs. 20.1% in Q1FY11.
ƒ Fund raising plans – not on immediate basis
The Board passed an enabling resolution for raising funds in
domestic/international markets through various instruments such as
equity shares/warrants with non-convertible debenture under QIP for up
to | 1200 crore. However, this would not happen on an immediate basis.
This may be done for new project wins in future.
ƒ IT raid at IRB’s premises
The media reported an IT raid at the company’s Mumbai and Pune
premises. The details are still awaited on the same.
V a l u a t i o n
At the CMP, the stock is trading at 12.1x FY13E EPS and 1.9x FY13E P/BV.
With a strong project portfolio and robust order book, we maintain our
BUY rating with SOTP price target of | 216/share (BOT project - |
132/share, construction business - | 79/share and investment in real
estate business at | 5.2/share).
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