Supreme Infrastructure India Ltd-Q4FY13 Result Update Maintain : BUY --KC research

::􀂉 Supreme Infrastructure India Ltd (SIIL) has reported a revenue of `6533.8 mn in
Q4FY13, with a modest revenue growth of 28.7% on Y-o-Y basis and by 18.7% on
sequential basis. For FY13 SIIL’s revenue of `19869.5 mn with growth of 31.9%. During
the year SIIL’s consolidated revenue grew by robust 35.1% to `23328.8 Mn.

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􀂉 During the quarter, SIIL’s EBITDA margin remained under pressure due to rising
operating cost. SIIL’s EBITDA margin in Q4FY13 stood at 12.7% with a decline of
170pbs on Y-o-Y basis, however it declined by 460bps on sequential basis. For FY13,
EBITDA margin stood at 15.5% With a decline of 70bps on Y-o-Y basis. However
consolidated EBITDA margin for the year stood at 15.6% Vs. 15.9% last year.
􀂉 In Q4FY13, the company has reported a net profit of `284.7 mn, which grown by
mere 8.5% on Y-o-Y basis, however it declined by 21% on sequential basis. SIIL’s net
Y o SIIL s profit margin stood at 4.4% which was down 80bps on Y-o-Y basis additionally
impacted by rising interest cost. For FY13, net profit margin declined by 60bps to 5.5%
on standalone basis and on consolidated basis it stood at 4.3% which was down 30bps.
􀂉 At the end of FY13, SIIL’s order book stood at `49209 mn. The company also has L1
position in orders worth `11236 Mn. During the year, the company added robust 31
new orders Worth `31334 6 Mn in Bridges Roads Water Power and Building segment
31334.6 Bridges, Roads, Water, segment.
SIIL successfully completed 7 orders worth `4400 Mn across segments such as Roads,
Power, Water and Railways in FY13. During the quarter, Manor-wada Bhiwandi road
BOT project became operational and is expected to bring good cash flow in future.
􀂉 SIIL presently has 10 BOT projects with unexecuted order book worth `15462 Mn
with majority in key commercial corridors attracting huge industrial traffic to boost the
ope ational cash flo s of the compan Total eq it fo 10 BOT p ojects is `8125 Mn
operational flows company. equity for projects out of which the balance `765 Mn is to be infused over next 2 years. All current BOT
projects are set to become operational by FY15.
Valuation:
At CMP of `206/ share the stock is trading at P/E of 2.9x of its FY14E EPS of `72, we
expect that, the company will increase its revenue visibility with its continued focus on
increasing the already robust order inflows in coming quarters, improving cash flow and
debt reduction. We maintain ‘BUY’ with revised target price of `290/ share with
construction business at `252/ share (3.5x P/E on FY14E EPS of `72/ share) and the
investments in BOT projects is considered at 1X P/BV to value at `38.5/ share.