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Key Takeaways
ASBL EPC business revenue to grow 30-35%
The Ashoka Buildcon (ASBL) management expects EPC revenue to grow 30-35% in
FY12, driven by a robust order book of INR43b. On the toll revenue front it expects
revenue of INR3.5b against INR1.9b in FY11.
ASBL's YTDFY12 order book is INR43b, including 94% from the roads and 6% from
the power segments. In FY12 it aims at order intake of INR25b-30b.
Strong traction expected in FY12 toll business, opportunity looks promising
On the bidding front, on a standalone basis ASBL qualified for projects worth about
INR20b as on 31 March 2011.
Out of 24 projects, it is collecting toll on 18 and expects to start toll on two more
projects (Durg and Dhankuni) in FY12.
NHAI plans to award 7,300km of roads over FY11-12, which will offer significant
growth opportunities to established players like ASBL.
A portfolio of 18 operational projects covering ~3,000 lane kms with average traffic
growth of 5-7% will ensure steady revenue growth.
The management said that in most cases, traffic growth was in line with its
expectations, except for the Bhandara project, where traffic was 10-12% less than
estimated.
Progress on projects under construction
Construction work on the Durg and Jaora-Nayagaon projects has been substantially
completed. Toll collection is expected to start for the Durg project in 3QFY12. For
the Jaora-Nayagaon project, toll collection has begun on two of three sections. Toll
collection on the third section will start in 3QFY12.
Other projects under construction are Sambalpur-Baragarh and Belgaum-Dharwad.
ASBL has started mobilization on the Sambalpur-Baragarh project, and construction
activity has begun on the Belgaum-Dharwad road.
Equity requirement of INR9b over the next 2-3 years
The management said it would meet the fund requirement of INR9b through internal
accruals and from the toll projects.
Valuation and view
The stock trades at a PER of 11x and 9x on FY12E and FY13E basis (Bloomberg
consensus). Not Rated.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Key Takeaways
ASBL EPC business revenue to grow 30-35%
The Ashoka Buildcon (ASBL) management expects EPC revenue to grow 30-35% in
FY12, driven by a robust order book of INR43b. On the toll revenue front it expects
revenue of INR3.5b against INR1.9b in FY11.
ASBL's YTDFY12 order book is INR43b, including 94% from the roads and 6% from
the power segments. In FY12 it aims at order intake of INR25b-30b.
Strong traction expected in FY12 toll business, opportunity looks promising
On the bidding front, on a standalone basis ASBL qualified for projects worth about
INR20b as on 31 March 2011.
Out of 24 projects, it is collecting toll on 18 and expects to start toll on two more
projects (Durg and Dhankuni) in FY12.
NHAI plans to award 7,300km of roads over FY11-12, which will offer significant
growth opportunities to established players like ASBL.
A portfolio of 18 operational projects covering ~3,000 lane kms with average traffic
growth of 5-7% will ensure steady revenue growth.
The management said that in most cases, traffic growth was in line with its
expectations, except for the Bhandara project, where traffic was 10-12% less than
estimated.
Progress on projects under construction
Construction work on the Durg and Jaora-Nayagaon projects has been substantially
completed. Toll collection is expected to start for the Durg project in 3QFY12. For
the Jaora-Nayagaon project, toll collection has begun on two of three sections. Toll
collection on the third section will start in 3QFY12.
Other projects under construction are Sambalpur-Baragarh and Belgaum-Dharwad.
ASBL has started mobilization on the Sambalpur-Baragarh project, and construction
activity has begun on the Belgaum-Dharwad road.
Equity requirement of INR9b over the next 2-3 years
The management said it would meet the fund requirement of INR9b through internal
accruals and from the toll projects.
Valuation and view
The stock trades at a PER of 11x and 9x on FY12E and FY13E basis (Bloomberg
consensus). Not Rated.
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