irb infra, 7th february, 2013
TRANSCRIPT
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7/29/2019 IRB Infra, 7th February, 2013
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Please refer to important disclosures at the end of this report 1
Op. profit 408 342 381 19.4 7.1
Source: Company, Angel Research
For 3QFY2013, IRB Infrastructure Developers (IRB) reported a healthy set of numbers,
above our expectations on the profitability front. Although, the companys revenue
came slightly below our expectation, but owing to better-than-expected performance
at the EBITDAM level and lower tax expense, earnings were higher than estimates. Inaccordance with its strategy to declare ~20% of post-tax consolidated profit towards
dividend, IRB declared an interim dividend of`1/share.
IRB reported a net consolidated revenue of`914cr
for 3QFY2013 (our estimate was of`930cr), an increase of 22.5% yoy, owing to
higher-than-expected E&C revenue from its under construction projects. The E&C
segment reported a revenue of`666cr registering a growth of 26.7% yoy, and the
BOT segment witnessed a growth of 10.6% yoy to`280cr. On the EBITDAM front,
IRBs margin declined by 117bp to 44.6%, however was higher than our estimate
of 44%. Strong execution in its under-construction BOT projects led to EBITDAM of
29.6% (including other income) for the E&C segment. The interest cost came in at
`159cr, higher by 12.3% on a yoy basis. At the earnings front, IRB reported a
growth of 8.6% yoy to`143cr, above our estimate of`136cr on account of better-
than-expected operating performance and lower tax expense during the quarter.
IRB has a robust order book of`7,100cr (2.8x FY2013E
E&C revenue, excluding O&M orders), which lends revenue visibility. IRB is
currently pre-qualified to submit bids for projects worth `22,436cr and is
targeting order inflow of `3,000cr-4,000cr over FY2014. The stock trades at
FY2013E and FY2014E P/B of 1.2x and 1.1x respectively.
% chg 43.0 28.5 22.7 9.6
% chg 17.4 9.6 13.5 5.3
EBITDA (%) 44.6 43.7 43.7 43.6
P/E (x) 8.8 8.0 7.1 6.7
P/BV (x) 1.6 1.4 1.2 1.1
RoE (%) 20.2 18.8 18.4 17.0
RoCE (%) 14.1 12.4 10.7 9.3
EV/Sales (x) 3.0 2.9 3.1 3.4
EV/EBITDA (x) 6.8 6.7 7.2 7.9
OB/sales(x) 6.1 3.0 2.9 3.4
Order inflow 5,514 (1,058) 3,542 4,105
%chg 10.2 - - 15.9
Source: Company, Angel Research
CMP `124
Target Price `164
Investment Period 12 Months
Stock Info
Sector
Net debt 6,645
Bloomberg Code
Shareholding Pattern (%)
Promoters 62.7
MF / Banks / Indian Fls 3.3
FII / NRIs / OCBs 22.3
Indian Public / Others 11.7
Abs. (%) 3m 1yr 3yr
Sensex 4.4 11.4 23.4
IRB 1.4 (26.6) (49.4)
Reuters Code IRBI.BO
IRB@IN
BSE Sensex 19,640
Nifty 5,959
Avg. Daily Volume 648,094
Face Value (`) 10
Beta 1.4
52 Week High / Low 210/100
Infrastructure
Market Cap (`cr) 4,131
022-39357800 Ext: 6842
Performance Highlights
3QFY2013 Result Update | Infrastructure
February 6, 2013
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3QFY2013 Result Update | India Research
February 6, 2013 2
Exhibit 1:3QFY2013 performance (Consolidated)
Total expenditure 506 404 25.2 465 8.9 1,525 1,290 18.2
OPM (%) 44.6 45.8 (117) bp 45.0 (40) bp 44.3 43.5 85 bp
Interest 159 142 12.3 148 7.7 461 401 15.2
Depreciation 113 72 55.9 111 1.9 332 195 69.9
Non operating income 33 34 (3.1) 33 (1.1) 98 92 6.8
Nonrecurring items/Div. from SPV's - - - - - - - -
Tax 27 29 37 119 110 8.5
Share of Profits/ (Losses) of Asso. - - - - - -
Share of Profits/ (Losses) of MI (1) 1 (325.7) (2) (36.8) (6) 3 -
PAT (%) 15.6 17.6 (200)bp 14.3 131 bp 14.8 16.5 (165) bp
Source: Company, Angel Research
Exhibit 2:Segmental revenue break-up (Consolidated)
Construction segment (including) OI) 666 526 26.7 622 7.2 2,038 1,650 23.5
BOT segment 280 253 10.6 257 9.2 799 724 10.3
Construction segment 197 147 34.4 187 5.5 611 442 38.3
BOT segment 243 229 6.4 227 7.3 702 643 9.1
Construction segment (%) 29.6 27.9 171 bp 30.1 (49) bp 30.0 26.8 321 bp
BOT segment (%) 86.7 90.2 (345)bp 88.2 (148) bp 87.8 88.8 (98)bp
Construction segment 61 32 91.4 60 0.7 181 92 96.7
BOT segment 99 110 (10.5) 88 12.6 280 308 (9.2)
Construction segment 14 14 (2.4) 14 2.3 40 42 (4.0)
BOT segment 99 58 70.3 97 1.9 292 153 90.2
Construction segment 123 101 21.7 113 8.4 389 307 26.6
BOT segment 46 60 (24.1) 42 8.9 130 181 (28.4)
Construction segment 83 69 19.5 77 7.5 264 211 25.0
BOT segment 59 63 (6.7) 42 40.3 135 167 (19.1)
Source: Company, Angel Research
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Exhibit 3:2QFY2013 Actual vs Angel estimates
Revenue 930 914 (1.8)
EBITDA 409 408 (0.4)Interest 154 159 3.6
PBT 178 168 (5.6)
Tax 45 27 (39.2)
PAT 136 143 4.8
Source: Company, Angel Research
Sturdy execution continues
IRB reported a net consolidated revenue of`914cr in 3QFY2013 (our estimate was
`930cr), an increase of 22.5% yoy, owing to higher-than-expected E&C income
from under-construction projects (Jaipur-Deoli ~`142cr, Talegaon-Amravati ~`159cr, Pathankot-Amritsar ~`143cr and Tumkur-Chitradurga ~`200cr).
The E&C segment reported a growth of 26.7% yoy to `666cr (including other
income of`22cr). The BOT segment revenues reported a revenue growth of 10.6%
yoy to`280cr in 3QFY2013.
Completion achieved by IRB on various under-construction projects is as following:
Jaipur-Deoli 90%; Talegaon-Amravati 90%; Pathankot-Amritsar 73%; and
Tumkur-Chitradurga 62%. Further IRB is looking to achieve completion for Jaipur
Deoli and Talegaon Amravati in 4QFY2013 while for Pathankot-Amritsar and
Tumkur-Chitradurga the completion is expected to be achieved by June 2013 and
December 2013 respectively.
Under-construction/development projects update
A state government appointed committee visited the site on
February 1, 2013 and is likely to submit its report validating the substantial
completion of the project, post which IRB would be able to commence toll
collection.
MVR Infrastructure and Tollways Pvt Ltd has become a subsidiary of the
company from October 1, 2012. The gross toll collection revenue for the quarter
stood at`15cr.
The company has received the necessary clearance for the
project and has started toll collection on the existing four lane expressway from
January 1, 2013.
IRB is waiting for LOA from NHAI for this recently bagged project;
once received, it would commence construction activity on the project.
IRB has got all the necessary clearances for a
greenfield airport in Sindhudurg district in Maharashtra and expects the
construction to start soon. The total project cost is estimated to be `350cr and the
EPC contract for the project has been awarded to L&T. The project has a
concessionaire period of 95 years which includes 18 months of construction
period.
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Exhibit 4:Strong performance continues
Source: Company, Angel Research
Exhibit 5:Segmental break-up of revenue (`cr)
Source: Company, Angel Research
BOT toll revenue
On the toll collection front, for 3QFY2013, Surat-Dahisar, Mumbai-Pune and
Bharuch-Surat projects witnessed 8.7%, 5.1% and 4.8% growth in toll revenue on a
yoy basis, respectively. Adjusted for the hike in toll rates and ban in mining activity,
Bharuch-Surat and Tumkur-Chitradurga saw a decline in traffic growth for the
quarter. Overall, on the toll collection front, IRB reported a growth of 10.7% yoy to
`357cr in 3QFY2013 with an average toll collection of`4cr/day from its existing
BOT portfolio.
IRB expects toll revenue to grow around 12% on a yearly basis as a result of higher
WPI and traffic growth.
Exhibit 6:Road BOT project-wise toll revenue growth
Surat Dahisar BOT Project^ 116 106 8.7 103 12.8 325 294 10.2
Mumbai Pune BOT Project 105 100 5.1 104 1.2 313 298 4.8
Thane Bhiwandi Bypass 4 Lane BOT Project 17 16 8.2 16 7.5 50 46 9.6
Thane Ghodbunder BOT Project 8 8 5.3 7 8.2 23 21 7.9
Pune Nashik BOT Project 6 6 3.4 6 (1.6) 18 17 4.7
Pune Sholapur BOT Project 4 4 2.4 4 4.9 13 12 5.6
Nagar Karmala Tembhurni BOT Project 4 4 8.6 4 0.0 11 11 4.7
Mohol Mandrup Kamtee BOT Project 2 2 (5.3) 2 (5.3) 6 6 0.0Kharpada Bridge BOT Project 2 2 5.0 2 10.5 6 6 3.2
Bharuch Surat BOT Project $ 39 37 4.8 40 (1.8) 117 106 10.7
Kaman Paygaon BOT Project ** 0 0 - 0 0.0 0 0 0.0
Khambatki Ghat BOT Project * 0 0 - 0 0.0 0 0 0.0
Tumkur Chitradurga# 39 38 3.7 40 (0.3) 120 88 0.0
Ommalur -Salem- Namakkal #* 15 0 - 0 - 15 0 -
Source: Company, Angel Research; Note * Concession period of Khambatki Ghat BOT project ended on May 3, 2009, ^ Surat-Dahisar commissioned onFebruary 20, 2009, $ Bharuch Surat BOT project commissioned on September 25, 2009, ** Kaman-Paygaon BOT project concession period stopped fromNovember 22, 2009, # Tumkur Chitradurga Project commissioned on June 4, 2011; #* Project acquired in October-2012 by purchase of 74% of equity stakein the Project
801
736
746
848
980
845
914
56.550.1
11.5 10.6
22.3
14.9 22.5
-
10.0
20.0
30.0
40.0
50.0
60.0
0
200
400
600
800
1,000
1,200
1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13
Net Sales (` cr, LHS) Growth (yoy %, RHS)
597
528
526
625
750
622
666
232
238
253
257
262
257
280
0
100
200
300
400
500
600
700
800
1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13
E&C ( ` cr) BOT (` cr)
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Impressive show on the EBITDA and earnings front
On the operating front, IRB reported an EBITDAM of 44.6% for the quarter, higher
than our estimate of 44%. Further, the E&C segments EBITDAM at 29.6%
(including other income) was led by strong execution of its under-construction BOT
projects. The Management expects to maintain these margins going ahead as well,
given that input prices are unlikely to change significantly. On the BOT front, the
company reported an EBITDAM of 86.7%, registering a decline of 345bp yoy.
Depreciation increased by 55.9% yoy to`113cr and was in-line with our estimate.
Interest cost came in at`159cr, higher by 12.3% on a yoy basis. At the earnings
front, IRB reported a PAT of`143cr for the quarter (above our estimate of`136cr),
a growth o 8.6%, on account of better-than-expected operating performance and
lower tax rate.
Exhibit 7:EBITDA margin steady
Source: Company, Angel Research
Exhibit 8:Healthy performance on the earnings front
Source: Company, Angel Research
329
321
342
381
425
381
408
41.1 43.7
45.8 44.9
43.4
45.044.6
36.0
38.0
40.0
42.0
44.0
46.0
48.0
-
50
100
150
200
250
300
350
400
450
1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13
EBITDA (` cr), LHS) EBITDAM (%, RHS)
134
110
131
120
142
121
143
16.7
15.0
17.6
14.2
14.5
14.3
15.6
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
0
20
40
60
80
100
120
140
160
1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13
PAT (` cr, LHS) PATM (%, RHS)
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Outlook and valuation
We have revised our estimates marginally upwards for FY2013 owing to better-
than-expected performance by IRB.
Exhibit 9:Change in estimates
Revenues (`cr) 3,843 3,843 0.0 4,212 4,212 0.0
EBITDA Margins (%) 43.1 43.7 1.4 43.6 43.6 0.0
PAT (`cr) 560 563 0.6 593 593 0.0
Source: Company, Angel Research
In accordance with its strategy to declare ~20% of post-tax consolidated profit towards
dividend, IRB declared an interim dividend of`1/share during the quarter.
IRB has a robust order book of `7,100cr (2.8x FY2013E E&C revenue, excluding
O&M orders), which lends revenue visibility. Although a slowdown in order
awarding by NHAI in road sector has been witnessed in 9MFY2013; IRB expects
ordering activity to improve going ahead. IRB is currently pre-qualified to submit
bids for projects worth `22,436cr and is targeting order inflow of `3,000cr-
4,000cr over FY2014.
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Exhibit 10:SOTP break-up
IRB's construction business Construction 3,43 5 1,716 52 31.4P/E of 5x one year rolling
forward earnings
Thane Bhiwandi Bypass Toll 330 10 6.0 NPV at CoE of 14%
Kharpada Bridge Toll 29 1 0.5 NPV at CoE of 14%
Nagar - Karnala - Tembhurni Toll 59 2 1.1 NPV at CoE of 14%
Mohol - Mandrup - Kamtee Toll 46 1 0.8 NPV at CoE of 14%
Pune - Solapur Toll 103 3 1.9 NPV at CoE of 14%
Pune - Nashik Toll 152 5 2.8 NPV at CoE of 14%
Mumbai - Pune Toll 1600 48 29.3 NPV at CoE of 14%
Thane Ghodbunder Toll 126 4 2.3 NPV at CoE of 14%
Surat Dahisar Toll 226 7 4.1 NPV at CoE of 14%
Bharuch - Surat Toll 217 7 4.0 NPV at CoE of 14%
IRDP, Kolhapur Toll 251 8 4.6 NPV at CoE of 14%
Pathankot - Amritsar Toll 453 14 8.3 NPV at CoE of 14%
Talegaon - Amravati Toll 398 12 7.3 NPV at CoE of 14%
Jaipur- Deoli Toll 480 14 8.8 NPV at CoE of 14%
Tumkur - Chitradurga Toll 286 9 5.2 NPV at CoE of 14%
Ahmedabad- Vadodara Toll (3,00) (9) (5.5) NPV at CoE of 14%
Omallur Salem -Namakkal Toll 65 2 1.2 NPV at CoE of 14%
Real Estate Real Estate 1,500 0 0 0 0.0 No value ascribed given thepending court case
Net debt (770) (23) (14.1) Standalone net debt
Source: Company, Angel Research
Exhibit 11:Key assumptions
Status Oper. Oper. Oper. Oper. Oper. Oper. Oper. Oper. Oper. Under Dev. Under Dev. Under Dev. Under Dev. Under Dev. Under Dev. Under Dev.
KM 24 1 60 33 26 30 206 15 65 240 50 102 146 67 114 102
Issuing Auth. PWD MORTH PWD PWD MORTH MORTH MSRDC MSRDC NHAI NHAI MSRDC NHAI NHAI NHAI NHAI NHAI
State Mah. Mah. Mah. Mah. Mah. Mah. Mah. Mah. Gujarat Guj./Mah Mah. Punjab Rajasthan Mah. Karnataka Gujarat
Concession (Yrs) 18.5 17.8 15.0 16.0 16.0 18.0 15.0 15.0 15.0 12.1 30.0 20.0 25.0 22.0 26.0 25.0
Con. Start Jan-99 Nov-97 Nov-01 May-02 Mar-03 Sep-03 Aug-04 Dec-05 Jan-07 Feb-09 Jan-09 Apr-10 Apr-10 Apr-10 Jun-11 Apr-12
Con. End May-17 Aug-15 Dec-16 May-18 Mar-19 Sep-21 Aug-19 Dec-20 Jan-22 Mar-21 Jan-39 Mar-30 Mar-35 Mar-32 May-37 Apr-37
TPC (`cr) 104 32 37 18 63 74 1,292 249 1,470 2,535 430 1,442 1,705 885 1,142 4,920
Equity (`cr) 34 10 15 7 18 6 105 32 198 785 172 391 499 194 311 1,420
Debt (`cr) 70 22 22 11 45 68 1,187 217 1,272 1,750 258 924 900 475 831 3,500
Grant (`cr) - - - - - - - - - - (27.0) 126.9 306.0 216.0 140.4 -
Traffic Grth (%) 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 6/5%
Toll inc (%) 5% 0% 5% 5% 3% 5% #18% 5% 7/6/5% 5% 5% 5% 5% 5% 5% 5%
Int Rate (%) - - - - - - 10.6% - 10.8% 10.5% 11.5% 10.5% 10.5% 10.5% 10.5% 11.0%
Source: Company, Angel Research, Note: #Once in three years; $ IRB had shared 38% of its FY2011 revenue with NHAI and the same increases by 1%
every year; @ IRB is expected to pay a sum of`309.6cr to NHAI from FY2013 and the sum increases by 5% every year
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Exhibit 12:Angel EPS forecast vs consensus
FY2013E 16.9 15.8 (1.6)
FY2014E 17.8 16.0 6.5Source: Company, Angel Research
Investment arguments
IRBs integrated business model ensures the timely
completion of projects, reduces its reliance on subcontractors and controls costs.
Further, it allows capturing the entire value in the BOT development business,
including EPC margins, developer returns and operation and maintenance (O&M)
margins.
The order book of `7,100cr, excluding
O&M orders (2.8x FY2013E E&C revenue), lends good revenue visibility for the
next few years.
Negligible dependence on capital markets: IRBs internal accruals (cash flows
from the E&C and BOT segments) would substantially fund equity requirement of
its current portfolio. Further, the company would be able to keep its debt-equity
position within reasonable limits.
Concerns
IRB, being a road-focused player, is dependent on NHAI
for road awarding activity. Thus, any slowdown from NHAIs end would affect IRBs
order inflow. However, given the huge bidding pipeline of NHAI, IRB should
perform well, as it is one of the market leaders.
BOT projects are inherently high-leverage projects. Hence, IRBs
business model is vulnerable to interest rate fluctuations, and any hike in interest
rates could increase the companys interest costs.
Road players are facing pressures from the recent price inflation
in commodities such as cement and steel, which directly affect margins.
Incorporated in 1998, IRB is the pioneer and one the largest players in the road
BOT business in India, with strong in-house integrated execution capabilities. IRBs
road business can be divided into two verticals: 1) engineering and construction
(E&C); and 2) toll collection and maintenance. The E&C arm complements its BOT
vertical and leads to time and cost control for projects in hand/under development.
The company also has one airport project, which is at a very nascent stage; decent
land bank; and one small wind mill project.
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Exhibit 13:Recommendation summary
ABL 224 268 Buy 1,500 1,866 2,131 19.2 22.6 24.3 27.0 9.3 9.9 9.2 8.3 2.9CCCL 15 - Neutral 2,048 2,262 2,522 11.0 (0.5) 1.5 2.7 - - 9.8 5.5 2.2
ITNL 203 225 Accu. 5,606 6,564 7,054 12.2 25.6 26.3 29.0 6.5 7.9 7.7 7.0 1.5
IVRCL 33 33 Neutral 6,178 4,249 6,897 5.7 0.6 0.3 3.3 136.8 55.5 106.0 9.9 5.0
JP Assoc. 73 100 Buy 12,853 13,842 15,863 11.1 4.8 3.7 4.6 (2.8) 15.2 20.0 16.1 -
L&T 1,515 1,788 Buy 53,171 60,666 69,525 14.3 64.3 63.2 75.1 8.1 23.6 24.0 20.2 2.7
NCC 43 43 Neutral 5,250 5,947 6,569 11.9 1.4 3.1 4.1 71.4 30.5 13.7 10.4 3.4
Punj Lloyd 51 - Neutral 10,557 11,892 13,116 11.5 2.8 1.8 3.2 7.8 18.3 28.0 15.8 2.3
Sadbhav 121 168 Buy 2,676 2,344 2,804 2.4 9.3 7.2 8.7 (3.5) 13.0 16.9 14.0 2.9
Simplex In. 179 251 Buy 6,010 6,906 8,053 15.8 18.1 23.2 31.3 31.7 9.9 7.7 5.7 2.4
Unity Infra 39 59 Buy 1,973 2,180 2,455 11.5 14.0 13.3 15.0 3.5 2.8 2.9 2.6 2.2
Source: Company, Angel Research
Exhibit 14:SOTP break-up
ABL 86 32 - - 182 68 - - - - 268
CCCL 16 100 - - - - - - - - 16
ITNL 74 33 - - 121 54 - - 30 13 225IVRCL 17 46 - - - - 20 54 - - 37
JP Assoc. 27 27 30 30 - - - - 43 43 100
L&T 1,351 76 - - - - 437 24 - - 1,788
NCC 25 57 - - 7 16 - - 12 27 44
Punj Lloyd 64 100 - - - - - - - - 64
Sadbhav 70 41 - - 99 59 - - - - 168
Simplex In. 251 100 - - - - - - - - 251
Unity Infra 52 88 - - 7 12 - - - - 59
Source: Company, Angel Research
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Profit & loss statement (Consolidated)
Other operating income
% chg 35.4 71.9 43.0 28.5 22.7 9.6
R.M. consumed 305 450 413 639 711 779
Construction expenses 163 335 769 886 1,172 1,301
Employee expenses 42 71 93 138 161 168
SG&A 42 50 76 101 119 126
% chg 6.5 82.1 36.2 25.8 22.6 9.4
(% of Net Sales) 44.2 46.9 44.6 43.7 43.7 43.6
Depreciation & Amortisation 114 182 225 297 447 534
% chg 4.6 90.2 39.8 24.3 14.9 5.7
(% of Net Sales) 32.7 36.2 35.4 34.2 32.1 30.9
Interest & other Charges 148 251 352 546 616 659
Other Income 39 51 64 125 134 147
(% of PBT) 18.0 12.2 11.2 19.2 17.9 18.6
Share in profit of Associates - - - - - -
% chg 29.1 93.8 38.2 13.1 15.3 5.3
Extraordinary Expense/(Inc.) - - - - - -
Tax 37.8 13.3 111.7 155.2 187.7 197.6
(% of PBT) 17.6 3.2 19.4 23.8 25.0 25.0
Add: Share of earnings of asso. - - - - - -
Less: Minority interest (MI) 1.3 17.9 11.7 0.0 0.0 0.0
Prior period items - - - - - -
% chg 53.4 119.2 17.4 9.6 13.5 5.3(% of Net Sales) 17.7 22.6 18.6 15.8 14.7 14.1
% chg 53.4 119.2 17.4 9.6 13.5 5.3
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Balance sheet (Consolidated)
Equity Share Capital 332 332 332 332 332 332Preference Capital - - - - - -
Reserves & Surplus 1,398 1,708 2,100 2,524 2,940 3,385
Total Loans 2,486 2,915 4,624 7,072 9,472 11,172
Deferred Tax Liability 18 27 23 26 26 26
Gross Block 2,460 4,019 4,132 6,620 9,126 11,868
Less: Acc. Depreciation 444 551 769 1,065 1,512 2,046
Capital Work-in-Progress 1,455 880 2,507 2,445 3,587 4,026
Goodwill - - - - - -
Cash 415 510 1,200 1,821 1,355 719
Loans & Advances 385 438 600 778 1,031 1,202
Other 218 199 255 246 335 361
Current liabilities 306 482 810 791 1,064 1,136
Mis. Exp. not written off 1 1 - - - -
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Cash flow statement (Consolidated)
Profit before tax 215 417 576 651 751 791
Depreciation 110 107 218 295 447 534Change in Working Capital (120) 141 111 (188) (69) (125)
Less: Other income (39) (51) (64) (125) (134) (147)
Direct taxes paid (38) (13) (112) (155) (188) (198)
(Inc.)/ Dec. in Fixed Assets (807) (984) (1,740) (2,425) (3,650) (3,180)
(Inc.)/ Dec. in Investments 88 66 (10) 41 (10) (10)
Other income 39 51 64 125 134 147
Issue of Equity (0) - 0 (0) - -
Inc./(Dec.) in loans 465 429 1,709 2,448 2,400 1,700
Dividend Paid (Incl. Tax) (65) (76) (60) (72) (148) (148)
Others 45 9 (3) 25 - -
Inc./(Dec.) in Cash (107) 95 690 621 (466) (636)
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Key Ratios
P/E (on FDEPS) 23.5 10.7 9.1 8.3 7.3 7.0P/CEPS 14.2 7.3 6.1 5.2 4.1 3.7
P/BV 2.4 2.0 1.7 1.4 1.3 1.1
Dividend yield (%) 1.3 1.6 1.2 1.4 3.0 3.0
EV/Sales 6.3 3.8 3.1 3.0 3.2 3.5
EV/EBITDA 14.1 8.2 6.9 6.9 7.3 7.9
EV / Total Assets 1.4 1.3 1.1 0.9 1.0 1.0
EPS (Basic) 5.3 11.6 13.6 14.9 16.9 17.8
EPS (fully diluted) 5.3 11.6 13.6 14.9 16.9 17.8
Cash EPS 8.7 17.1 20.4 23.9 30.4 33.9
DPS 1.7 1.9 1.5 1.8 3.7 3.7
Book Value 52.1 61.4 73.2 85.9 98.4 111.8
EBIT margin 32.7 36.2 35.4 34.2 32.1 30.9
Tax retention ratio 82.4 96.8 80.6 76.2 75.0 75.0
Asset turnover (x) 0.3 0.4 0.5 0.4 0.4 0.3
ROIC (Post-tax) 7.6 14.2 13.2 11.5 9.3 7.6
Cost of Debt (Post Tax) 5.4 9.0 7.5 7.1 5.6 4.8
Leverage (x) 1.1 1.2 1.3 1.6 2.2 2.6
Operating ROE 9.9 20.3 20.6 18.6 17.5 14.9
ROCE (Pre-tax) 8.1 13.2 14.1 12.4 10.7 9.3
Angel ROIC (Pre-tax) 13.8 20.3 24.2 23.2 17.9 14.3
ROE 10.5 20.4 20.2 18.8 18.4 17.0
Asset Turnover (Gross Block) 0.4 0.5 0.6 0.6 0.5 0.4
Inventory / Sales (days) 47 40 25 19 19 21
Receivables (days) 5 5 5 3 2 2
Payables (days) 87 62 125 168 153 151
WC cycle (ex-cash) (days) 191 133 112 109 113 127
Net debt to equity 1.2 1.2 1.4 1.8 2.5 2.8
Net debt to EBITDA 4.7 3.0 3.1 3.8 4.8 5.7
Interest Coverage 2.2 2.5 2.5 2.0 2.0 2.0
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7/29/2019 IRB Infra, 7th February, 2013
14/14
3QFY2013 Result Update | India Research
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should makesuch investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.
Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make
investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this
document are those of the analyst, and the company may or may not subscribe to all the views expressed within.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals.
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Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, pleaserefer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited andits affiliates may have investment positions in the stocks recommended in this report.
Disclosure of Interest Statement IRB Infra
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock No
3. Angel and its Group companies' Directors ownership of the stock No
4. Broking relationship with company covered No
Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors.
Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)