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Supreme Infrastructure India Ltd (SIIL) reported better than expected
Q3FY12 results. The company reported strong 70.6% yoy growth in Q3FY12
net revenue and 68% growth in adjusted PAT on strong execution in roads,
building and power contracts. In the quarter, the company added Rs 6.3 bn of
new orders resulting into total order book at Rs 37.72 bn. The OB includes Rs
4.21 bn of L1 orders. In the quarter the company announced addition of new
BOT road projects; Sangli-Shiroli with Rs 2.73 bn of project cost and Patiala
Malerkotla of Rs 930 mn project cost. Further, 3i India Infrastructure Fund
recently invested USD 61 mn in SIIL’s BOT road projects which would
support SIIL in terms of meeting equity commitment in the BOT road assets.
Key Highlights
Robust Q3FY12 performance: In Q3FY12, revenue grew by 70.6% yoy to Rs 4.09
bn which was above our expectation. The growth in revenue was driven by
strong execution of road, building and power projects. In road segment
strong execution witnessed in Manor Wada project, Japur Ring road project
and Dorha-Ludhiyana contract. The EBITDA margin for the quarter stood at
16.7% which declined by 41.4 bps on yoy basis. The adjusted PAT for the
quarter grew by 68% on yoy to Rs 250.2 mn. The interest cost grew by 144.7%
on yoy and 24.7% on qoq to Rs 252.7 mn. The reported PAT grew at lower
rate of 32% on yoy on account of a high base led by Rs 40.7 mn of exceptional
items in Q3FY11.
Order Book remained robust at Rs 37.7 bn: In the quarter SIIL added Rs 6.3 bn of
new orders resulting into total order book at Rs 37.72 bn. This includes Rs 4.2
bn of L1 orders. The order book includes 47.8% of the orders from its own
BOT road projects and 52.2% of non BOT projects from buildings, power,
roads, etc. In the quarter, the company announced addition of new BOT road
project Sangli-Shiroli in Maharashtra with Rs 2.73 bn of project cost and
Patiala Malerkotla of Rs 930 mn project cost.
BOT projects got Private equity funding booster: SIIL needs over Rs 5 bn of equity
infusion in the road BOT road projects which includes major projects like
NKT, Manor Wada Bhiwandi, Jaipur ring Road and Panvel Indapur project.
Hence USD 61 mn investment by 3i India Infrastructure Fund would be a
major booster for SIIL to complete the projects in time.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Supreme Infrastructure India Ltd (SIIL) reported better than expected
Q3FY12 results. The company reported strong 70.6% yoy growth in Q3FY12
net revenue and 68% growth in adjusted PAT on strong execution in roads,
building and power contracts. In the quarter, the company added Rs 6.3 bn of
new orders resulting into total order book at Rs 37.72 bn. The OB includes Rs
4.21 bn of L1 orders. In the quarter the company announced addition of new
BOT road projects; Sangli-Shiroli with Rs 2.73 bn of project cost and Patiala
Malerkotla of Rs 930 mn project cost. Further, 3i India Infrastructure Fund
recently invested USD 61 mn in SIIL’s BOT road projects which would
support SIIL in terms of meeting equity commitment in the BOT road assets.
Key Highlights
Robust Q3FY12 performance: In Q3FY12, revenue grew by 70.6% yoy to Rs 4.09
bn which was above our expectation. The growth in revenue was driven by
strong execution of road, building and power projects. In road segment
strong execution witnessed in Manor Wada project, Japur Ring road project
and Dorha-Ludhiyana contract. The EBITDA margin for the quarter stood at
16.7% which declined by 41.4 bps on yoy basis. The adjusted PAT for the
quarter grew by 68% on yoy to Rs 250.2 mn. The interest cost grew by 144.7%
on yoy and 24.7% on qoq to Rs 252.7 mn. The reported PAT grew at lower
rate of 32% on yoy on account of a high base led by Rs 40.7 mn of exceptional
items in Q3FY11.
Order Book remained robust at Rs 37.7 bn: In the quarter SIIL added Rs 6.3 bn of
new orders resulting into total order book at Rs 37.72 bn. This includes Rs 4.2
bn of L1 orders. The order book includes 47.8% of the orders from its own
BOT road projects and 52.2% of non BOT projects from buildings, power,
roads, etc. In the quarter, the company announced addition of new BOT road
project Sangli-Shiroli in Maharashtra with Rs 2.73 bn of project cost and
Patiala Malerkotla of Rs 930 mn project cost.
BOT projects got Private equity funding booster: SIIL needs over Rs 5 bn of equity
infusion in the road BOT road projects which includes major projects like
NKT, Manor Wada Bhiwandi, Jaipur ring Road and Panvel Indapur project.
Hence USD 61 mn investment by 3i India Infrastructure Fund would be a
major booster for SIIL to complete the projects in time.
Outlook & Valuation
Based on strong execution witnessed in the past three quarter and robust
current order book, we believe that SIIL would achieve a strong revenue
growth in FY12E. We have upgraded our estimates based on strong
execution in 9MFY12 and impressive order inflows. Based on FY12E and
FY13E revised EPS of Rs 51.6 and Rs 60.4, the stock is trading at P/E of 4.7x
and 4x respectively. We maintain our BUY recommendation and target price
of Rs 310.
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