Stock Idea – IRB Infrastructure Developers Ltd.
Vol. 30 / 10-11 February 11, 2011
Buy CMP: 165.0 Target: 200.0
IRB INFRASTRUCTURE DEVELOPERS LTD. Upside: 21.2 % Horizon: 12M
Analyst: Atul Kanwar About the Company Phone: +91 11 66272300 Ext: 651 Email: [email protected] IRB Infrastructure Developers Limited is a holding company for the infrastructure development and construction activities of the IRB group. The company has two segments: road infrastructure Head of Research: Alok Agarwala projects and real estate development. The company undertakes development of various E-mail: [email protected] infrastructure projects in the road sector through several Special Purpose Vehicles (SPVs). IRB's road infrastructure business is conducted in two verticals: Engineering, Procurement and Key Data Construction (EPC), and toll collection and maintenance. The company's major clients are government agencies undertaking road development in India, such as National Highways Sector Roads & Highways Authority of India (NHAI) and Maharashtra State Road Development Corporation (MSRDC)) Face value (Rs.) 10.0 Virendra Dattatraya Mhaiskar is the promoter of the company. 52-week high/low (Rs.) 315 / 147.7 Market cap (Rs. cr.) 5483.9 Book value (Rs.) 72.0 Price / book value 2.3 Investment Rationale PE ratio (TTM) 10.8 Market cap / sales 2.5 Infrastructure investment picking up Dividend (%) 15 Infrastructure investment in India is set to grow dramatically. For the Indian economy to maintain Average daily volume (1 Y) 972063 its growth momentum, the provision of adequate infrastructure facilities is critical. The eleventh NSE consolidated figures five year plan (2007-2012) identifies high quality infrastructure as the most critical physical requirement for attaining faster growth in a competitive global environment and also for ensuring Shareholding Pattern investment in less-developed regions. Moreover, the Planning Commission states that the total investment needed in infrastructure would have to increase to ~9% of India’s GDP by the final Promoters FII DII Others year of the eleventh plan period to meet India’s target GDP growth rate of 9%.
3.4% Infrastructure investment by government 8.4% 13.2% 160 10.0% 75.0% 9.0% 140 8.0% 143 9.0% 7.0% 8.0% 120 115 7.0% 100 94 Source: BSE. As on Dec 31, 2010 4.5% 6.0% 80 5.0% 4.0% 4.0% 4.0% 4.0% 4.2% Stock Performance 58 4.0% 60 3.0% 140 39 46 3.0% 120 40 32 24 27 28 2.0% 100 20 80 1.0% 60 0 0.0% 40 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10E FY11E FY12E 20 0 Infrastructure Investment (US$ billions) Spend as % of GDP
Source: Goldman Sachs Research IRB Infra NSE
1 Bajaj Capital Centre for Investment Research Stock Idea – IRB Infrastructure Developers Ltd.
India has 3.3 million kilometers of roads, the Roads are a priority sector for the government third largest network in the world after US & Expanding the highways and artery road systems is a top policy priority for the Indian government. China. Some 60% of freight and 85% of Of the National Highway Development Programme (NHDP) proposal of awarding 53,100 kms of passenger traffic goes by road, but the system projects, those completed or under implementation stand at 19,812 km and the balance is yet to be is still inadequate. awarded. The government has announced its intention to award 9 to 10 mega projects of approx. 500 kms each at an investment of approx. Rs. 5,000 cr. per project. To complement the NHDP programme, Expressway Authority of India has plans to award expressway projects of 18,637 kms, for completion in phases till 2022. Empowered Group of Ministers has approved conversion of 10,000 kms of state highways into national highways. IRB with its credentials is among the front runners for these projects.
Government’s infrastructure investment pie (11th plan)
Power Roads Railways Ports Airports
7% 2%
20% 46%
25%
After a lull of 6 months, road awarding activity is expected to pick up. Government is looking to award 25 projects worth Rs 36,000 cr. in Q4FY11. About 13 proposals worth ~Rs 22,000 cr. covering 2,050 kms have been sent to the Public Private Partnership Appraisal Size of road projects increasing Committee (PPPAC) for approval. Out of the 13 project awaiting approval from Public Private Partnership Approval Committee (PPPAC), 10 projects have average tickets size of above Rs 2,000 cr. With such large size projects on the anvil, a large developer like IRB with scale and strong balance sheet is expected to be a key beneficiary.
IRB – a leader in the BOT segment IRB is one of the largest BOT operators in India today with daily toll collection nearing Rs 2.7 cr. on gross basis. The company has one of the largest BOT portfolio in the country with a total length of around 5,735 lane kms. The country’s first ever BOT project (Thane-Bhiwandi bypass) was executed by IRB.
IRBs road portfolio (as per lane kms)
Maharashtra Gujarat Karnataka Rajasthan Punjab Goa
7% 5% 10% 47% 12%
19% The average ticket size for the upcoming 25 projects is ~Rs 1,440 cr. as compared to average ticket size of ~Rs 880 cr. for projects awarded in FY10 and ~Rs 990 cr. for projects awarded in Q1FY11. Source: Company
2 Bajaj Capital Centre for Investment Research Stock Idea – IRB Infrastructure Developers Ltd.
IRB is a pioneer in the BOT business and is Strong order book one of the largest BOT operators in the IRB has a strong order book of Rs 8985.5 cr. at the end of Q3FY11. This is almost 5.3 times its country with 16 BOT projects under its belt. FY10 net sales. The order book breakup is given below: IRB also has approx. 9.3% share of the golden quadrilateral. Order book breakup
Order book (as on Dec 31, 2010) Amount (in Rs. cr.)
EPC and ongoing BOT Projects 4,948
BOT projects in O&M Phase 2,103
Funded construction projects 21
BOT projects under award 1,914 Total 8,986 Source: Company
Order book breakup: project-wise (as on Dec 31, 2010)
O&M Contracts Surat Dahisar Jaipur Tonk Deoli Amritsar Pathankot Tumkur Chitradurga Talegaon Amravati Panaji Goa IRDP Kolhapur Sindhudurg Airport Others 1.8% 1.7% 0.2%
8.1% 23.4% The operations & maintenance contracts form 8.3% a little less than 1/4th of the total order book of the company at the end of CYFY10. The 11.5% order book seems to be fairly well divided between the BOT projects being carried out 16.2% by IRB in the states of Gujarat, Rajasthan, Punjab, Karnataka, Maharashtra & Goa. 12.9% 15.9%
Source: Company
Toll rate hike for Mumbai –Pune expressway in April 2011
IRB’s SPV Mhaiskar Infrastructure Pvt Ltd (MIPL) is all set to hike toll rates for the Mumbai-
Pune expressway by 18% from April 2011, as the concession agreement allows hike in toll rates
every 3 years. The last hike was taken in April 2008. This would mean that the SPV would record
close to 23% growth in topline in FY12E (18% toll hike + 5% traffic growth) and since the
operating costs are more or less fixed, the entire revenue growth would flow to operating profits.
Plans to develop an integrated township on Mumbai-Pune expressway
IRB intends to develop an integrated township alongside the Mumbai-Pune expressway. This
township would lie between two largest hubs of economic activity in the country. The land
acquisition of approximately 1,200 acres is complete and the company proposes to further acquire
approx. 150 acres of additional land for the same.
Developing greenfield airport at Sindhudurg (Maharashtra)
In FY2010, IRB bagged a greenfield airport project in Sindhudurg district of Maharashtra from The concession period for the greenfield Maharashtra Industrial Development Corporation (MIDC) on a Design-Build-Finance-Operate airport project in Sindhudurg is 95 years (DBFO) basis under public-private participation framework. This project would be under the including 18 months of construction period company’s JV – IRB Sindhudurg Airport Pvt. Ltd. The airport area would be 670 acre and the with estimated cost including land premium of runway length would be 3170 metre. Rs. 200 cr.
3 Bajaj Capital Centre for Investment Research Stock Idea – IRB Infrastructure Developers Ltd.
IRB owns advanced construction equipment EPC integrated operations reduce costs that enables the company to maintain high IRB’s EPC operations are managed by its fully owned subsidiary Modern Road Makers. The margins as it does not need to hire these from subsidiary has constructed ~1200 kms of roads. The company has very limited dependence on the other entities. third party contractors as the EPC activities are mostly executed in-house. This helps the company in reducing costs and having much better control over the quality and timely completion of the projects.
Hedged from hardening of interest rates The company has already hedged itself from any hardening of interest rates, by locking lower interest rates, e.g. for Mumbai-Pune project, the weighted average cost of debt is 10.60% p.a. fixed for 8.5 years; for Surat-Dahisar project the company has been negotiating with the bankers for lower interest rates at 10.75% p.a. for the balance construction period; for Bharuch-Surat project, the rate of interest is 10.50% p.a. to be reset annually; for 4 BOT project which the company won last year, the rate of interest is fixed at 10.50% p.a. for a period of 3 years covering the entire construction period.
BOT revenue dependence on single project reducing IRB is slowly reducing its dependence on a single BOT project as was the case earlier when the
company was getting most of its BOT revenues from the Mumbai – Pune BOT project. The company is also venturing out of the state of Maharashtra and is handling major BOT projects in Gujarat, Karnataka, Rajasthan, Punjab & Goa.
BOT revenue distribution: Q3 FY10
Surat Dahisar Mumbai Pune Bahruch Surat Thane Bhiwandi
Thane Godbunder Pune Nasik Pune Solapur Others BOT revenue dependence on major projects 2.1% 1.4% 2.0% like Mumbai-Pune, Surat-Dahisar and 3.1% Bharuch-Surat is expected to reduce going 6.0% forward as 6 new BOT projects get completed 37.9% between FY2011 to FY2013. 14.1%
33.4%
Source: Company
BOT revenue distribution: Q3 FY11
Surat Dahisar Mumbai Pune Bahruch Surat Thane Bhiwandi Thane Godbunder Pune Nasik Pune Solapur Others 1.4% 2.2% 3.0% 2.9%
5.6%
14.0% 38.4%
32.5% The tremendous growth of the auto sector is going to lead to a growth in the passenger & freight traffic that in-turn would mean higher profits for companies like IRB. Source: Company
4 Bajaj Capital Centre for Investment Research Stock Idea – IRB Infrastructure Developers Ltd.
IRB’S BOT Projects
Operational BOT projects revenue (Rs cr.) Sr % % no. Name of BOT Project FY2009 FY2010 Growth H1FY10 H1FY11 Growth
1 Surat - Dahisar 33.6 333.7 893.2 155.8 171.1 9.8 2 Mumbai - Pune 288 306.3 6.4 153.1 160.4 4.8
3 Bharuch - Surat - 66.3 - 2.1 60.3 2771.4 4 Thane - Bhiwandi Bypass 40.3 47.2 17.1 22.3 25.5 14.3 5 Thane - Ghodbunder 26.5 27.7 4.5 13.6 13.7 0.7 6 Pune - Nasik 16.4 18.1 10.4 8.5 10.1 18.8 7 Pune - Solapur 12.7 13.3 4.7 6.6 6.7 1.5 8 Ahmednagar - Karmala - Tembhumi 11.3 13.5 19.5 6.4 7.3 14.1 9 Mohol - Mandrup - Kamtee 6.5 6.3 -3.1 3.5 3.7 5.7 10 Kharpada Bridge 7.1 6.7 -5.6 3.4 3.4 0.0
11 Kaman - Paygaon 3.6 2.2 -38.9 1.7 - -
12 Khambakti Ghat 13.1 1.2 -90.8 1.2 - -
13 Bhiwandi - Wada 1.6 - - - - - Total 460.7 842.5 82.9 378.2 462.2 22.2 Source: Company
BOT projects: under implementation
Sr Length Cost Concession Period Completion no. Project Client State (kms) (Rs cr.) (Years) Date
1 Kolhapur MSRDC Maharashtra 50.0 430.0 30 Jan, 2011 2 Tumkur - Chitradurga NHAI Karnataka 114.0 1142.0 26 Apr, 2011 3 Talegaon - Amravati NHAI Maharashtra 66.7 888.0 22 Nov, 2012 4 Pathankot - Amritsar NHAI Punjab 102.4 1445.3 20 Nov, 2012 5 Jaipur - Deoli NHAI Rajasthan 146.3 1733.0 25 Dec, 2012 6 Panji - Goa NHAI Goa 69.1 833.2 30 Feb, 2013 Source: Company
IRB’s road portfolio (lane kms) – Dec 2010 Qtr
Lane km under development 2,322 kms Lane km operational 3,413 kms Gross revenue realized per lane km from operational portfolio during Sep – 2010 qtr Rs 7.3 lakhs Source: Company
5 Bajaj Capital Centre for Investment Research Stock Idea – IRB Infrastructure Developers Ltd.
The business model of IRB that is based on Peer Analysis toll based revenues, ensures that the company enjoys better margins than its peers. Construction majors – comparison (consolidated financials in Rs cr.)
Net PBIDTM APATM RONW Mkt Company Sales PAT (%) (%) D/E (%) P/E P/BV Cap
IRB Infra 1704.9 403.4 49.9 22.0 1.4 21.4 12.2 2.6 6176.9 IL&FS Tra. 2402.9 338.3 37.2 14.1 1.8 27.2 15.3 3.0 4962.6 Patel Engg. 3190.9 212.1 17.7 5.7 1.6 14.9 8.0 1.2 1606.5 Hind.Const. 3975.2 1.5 14.4 0.0 3.8 0.1 - 1.7 2150.0 Simplex Inf. 4564.3 129.1 9.1 2.8 1.3 13.6 13.5 1.7 1690.7 IVRCL Inf. 5831.2 234.5 9.5 1.7 0.9 3.1 27.2 0.8 2001.2 Nag. Const. 5897.3 286.1 11.9 4.2 1.4 11.9 11.6 1.2 2782.3 Gammon Ind 7047.5 45.7 10.5 0.4 2.6 1.3 96.1 1.0 1901.4 JP Associates 6525.6 1181.8 39.9 7.7 3.4 6.6 39.2 2.1 17234.9 Punj Lloyd 10447.8 -116.3 7.6 -1.3 1.4 -4.9 0.0 1.0 3030.4 P/E, P/BV & Mkt Cap figures are for February 2, 2011. Net Sales, PAT, PBIDTM(%), APATM (%) & RONW% stats are for FY10.
Comparison of Roads & Railway Transportation
Goods traffic growth
Roads Railways The road sector that held a meager 13.8% share in goods traffic growth in FY1951 has 86.2% 83.8% surpassed the railway sector, increasing its 69.9% share to 60.0% in FY10. 61.9% 61.9% 61.3% 60.0%
38.1% 38.1% 38.7% 40.0% 30.1% 13.8% 16.2%
FY1951 FY1961 FY1971 FY1981 FY1991 FY2001 FY2010
Source: Ministry of Surface Transport
Passenger traffic growth
Roads Railways
84.6% 82.0% 85.0% 72.2% 72.2% 64.0% 49.0% 51.0% 36.0% 27.8% 27.8% 15.4% 18.0% 15.0% The road sector that accounted for only 15.4% of the passenger traffic compared to railway’s 84.6% in FY1951 has turned the FY1951 FY1961 FY1971 FY1981 FY1991 FY2001 FY2010 tables by handling 85.0% of the traffic by FY10. Source: Ministry of Surface Transport
6 Bajaj Capital Centre for Investment Research Stock Idea – IRB Infrastructure Developers Ltd.
On average, 13 to 15 companies have been Key Concerns submitting bid in most of the road projects which has resulted in aggressive bidding by Increased competition from smaller players some companies. IRB is operating in a highly competitive environment. Recently it has been observed that relatively smaller companies have been dominating the bidding and competition has increased significantly in comparison to earlier rounds of bidding. On the basis of preliminary assessment, IRB has been submitting bids for projects which are found to be viable.
Availability of capital & interest rates Infrastructure projects are typically capital intensive and require high levels of long-term debt financing. IRB believes that though in the past it has been able to infuse equity and also arrange for debt financing for its infrastructure development projects on acceptable terms at the relevant project SPV level, its ability to continue to arrange for capital requirements is dependent on numerous factors like generation of internal accruals, size of award of projects as well as availability of credit from banks & financial institutions, the success of its current infrastructure development projects and other factors outside its control. However, the company’s track record
has enabled it to raise funds at competitive rates.
Vehicular traffic dependent on economic activity Vehicular traffic varies with overall economic activity in the country, specifically in the corridors where the company’s projects are situated. However, many of the company’s projects, e.g. Mumbai-Pune, Thane-Bhiwandi, Thane-Ghodbunder projects are having fair share of passenger and freight traffic which is comparatively less sensitive to economic activity.
Rising cost of raw material Continuous supply of raw material like bitumen, stone aggregates, cement, steel are essential for The new projects which are being offered by timely completion of the projects. There is also a risk of escalation of cost or shortage in the NHAI are substantially large with project cost supply of raw materials. The extensive experience of the company and bulk purchases has helped of Rs. 1,000 cr. or more. Further, NHAI’s it to plan and procure raw materials at competitive rates. Also, the company procures stone recent guidelines restrict companies from aggregates from its leased mines which reduce chances of disruption in supply or price escalation. bidding for new projects, if they have 3 or Most of the company’s new projects toll rates are linked to WPI. more projects where financial closure is pending. This pronouncement would restrict bidding for serious players. Conclusion
The state of India’s infrastructure remains a major impediment to the country’s dream of achieving double digit GDP growth. Roads are a key segment in the total infrastructure picture as 60% of the country’s freight is transported through its roads. Therefore, one fourth of the government’s investment in the infrastructure sector is earmarked for the road segment. The government is in the process of awarding 25 road projects worth Rs 36,000 cr. It is also planning to award 9-10 mega road projects of ~500 kms each, with every project requiring an investment of Rs 5,000 cr. IRB is a pioneer in BOT projects in the country and has one of the largest portfolios of 16 BOT projects currently under its belt, out of which 10 are operational. IRB has an order book of Rs 8985.5 cr. as on Dec 31, 2010, that is ~5.3 times its FY10 sales. The toll rates for the Mumbai-Pune expressway are bound to go up by 18% from April 1, 2011 as per the concession agreement. Moreover, IRB
plans to develop an integrated township along the Mumbai-Pune expressway that connects two major economic hubs of the country. Approx. 90% of the land acquisition is complete for this project. The company has also entered the airport development sector by bagging the greenfield Sindhudurg airport project in Maharashtra. IRB is hedged against the hardening of the interest rates as it has locked its current projects at relatively lower rates of 10.50% - 10.75%. The company is continuously reducing its dependence on a few large projects for its revenues. The government has been implementing policy IRB has a market capitalization of Rs 5483.9 cr. and is trading at a share price of Rs. 165. The of linking increase in toll rates to change in consolidated TTM EPS is Rs. 15.3 translating into a TTM PE of 10.8. The price to book value Wholesale Price Index (WPI). The toll rates of stands at 2.3. The stock is an attractive buy considering the growth prospects of the industry as the IRB’s Bharuch-Surat, Surat -Dahisar and well as the company. The low market PE and other valuation parameters ensure that one is not 5 new BOT projects are linked to WPI. Toll overpaying for the growth. rates of all other projects of the company have We recommend a “BUY” on the stock with an investment horizon of 12 months and target fixed annual or periodical increase. price of Rs. 200.
7 Bajaj Capital Centre for Investment Research Stock Idea – IRB Infrastructure Developers Ltd.
SWOT Analysis
Strengths Weaknesses
• A Maharashtra centric company: 47% of IRB's projects • IRB is one the largest BOT players: IRB, a pioneer of the are located in the state of Maharashtra. The company is BOT concept in the road segment is a leader in this field making efforts to diversify geographically and its with 16 BOT projects under its belt. dependence on Maharashtra based projects has reduced • Strong order book position: IRB has an order book of Rs. recently. Now it is executing BOT projects in Gujarat, 8985.5 cr. at the end of Q3FY11. Karnataka, Rajasthan, Punjab & Goa. • IRB is hedged against rising interest rates: The company • ~85% of the BOT revenues generated from 3 projects: has negotiated low interest rates in the 10.50% - 10.75% Mumbai-Pune, Surat-Dahisar & Bharuch -Surat account for range on borrowings from banks & financial institutions, for ~85% of the revenues in Q3FY11. But, the dependence on the company's existing road projects till their completition, these projects is expected to come down as the company thus guarding itself from rising interest rates. expands its portfolio of BOT projects within & outside the state of Maharashtra. • Toll rates on Pune-Mumbai expressway to go up: This expressway that accounts for 1/3rd of IRB's revenues would have a 18% increase in toll rates from April 1, 2011. • Developing integrated township on the Mumbai-Pune highway :IRB is in posession of 1200 acres of land on this highway that connects two major centers of economic activity. The company plans to develop an integrated township on this land.
Opportunities Threats
• Huge investment expected in infrastructure sector: Huge • Increased competition: The number of players bidding for investment is expected in India's infrastructure going ahead the road projects has been increasing with 13 to 15 players as the below average infrastructure is a big bottleneck in the bidding for each project. economic growth achieving its full potential. • Aggressive bidding: Due to the increased number of • Road is a priority sector for the government: players, bidding has become aggressive, with the bidders As majority of India's freight and passenger traffic moves by quoting low rates that makes for reduced earnings from road, it is a priority sector for the government. With the road these projects. network inadequate both in terms of quality and reach, the • New NHAI guidelines to restrict bidding: NHAI has a government is in the process of awarding major projects in new policy that restricts those firms from bidding that have CY2011. more than three projects awaiting financial closure. This • Large ticket size road projects on the anvil: Size of the would result in curtailing the number of firms bidding for road projects is increasing. The government is also in the future projects. process of awarding mega projects of 500 kms and Rs. 5000 • Toll rates dependent on WPI: Toll rates in projects cr. investment. IRB being a large company with huge including Surat-Dahisar, Bharuch-Surat and the 5 new BOT experience in road development, is capable of executing projects are linked to the WPI. Thus, it becomes difficult to projects of this scale. make revenue projections for the future. • Entry in the airport development sector: IRB has entered • Vehicular traffic dependent on economic activity: The this infrastructure segment by bagging the Sindhudurg movement of freight is directly linked to economic activity. airport project. This opens new opportunities for the • Increase in raw material cost: Increase in cost of steel, company in a new field.. cement etc. would negatively impact IRB's bottomline.
8 Bajaj Capital Centre for Investment Research Stock Idea – IRB Infrastructure Developers Ltd.
Industry Attractiveness: Porter’s Five Force Model
Buyers Power: Suppliers Power - Medium Primary - High, Secondary - Low Bargaining power of primary buyer (Government): Bargaining power of suppliers is neither high nor low. Bargaining power of government is high as development of Suppliers to road developers are raw material suppliers and road sector in current scenario highly depends on subcontractors, who build road for main road developers. investment, allocation and implementation of road Raw material suppliers: Raw material suppliers have development plan outlined. This structure is called as reasonable bargaining power. Bitumen and aggregates (soil, monopsony structure in which only one buyer rocks and clay) constitute more than 50% of the total (Government) faces many sellers (road developers). As construction cost. Procurement of required raw material is government is the only buyer of road projects, they enjoy very important for road developers, as shortfall in raw high bargaining power. Government allots projects to material may result in cost over-run. lowest bidder based on the criteria like lowest concession Subcontractors: Although, there are large numbers of period, high revenue sharing or high upfront payment. subcontractors available in industry, selecting high quality Players quoting high premiums for various high traffic subcontractor may result in high cost of construction. density corridors have led to various authorities like NHAI Hence, it would result in lower margins for road developers. However, in-house construction capability of few road getting very attractive pricing for those projects. developers has reduced the bargaining power of high quality subcontractors. Subcontractors are poised for a risk of Bargaining power of secondary buyer (end user of road): backward integration from those players who give Bargaining power of road end users are low, as these users subcontracting work to them. have to pay toll applicable to road they are using. Low cash flow due to lower than estimated traffic will be covered by an increase in the concession period as per new Model Concession Agreement. Rivalry Determinates - High Rivalry among the road developers is high. Any high return projects attracts 13-15 bidders. Cut throat compettition is compelling the players in this infrastructure segment to sacrifice margins in order to become lowest bidders.
Threat of Substitutes - Moderate Entry Barriers - Moderate
Threat of substitutes (railways) is moderate at best. Railways Industry has moderate level entry barriers, as player needs do have the advantage of carrying bulk goods and are proven track record for execution of projects. As per perhaps the best mode to transport commodities like coal, financial qualification criteria, bidder/consortium is required cement and iron ore. Reach of railways is restricted only to to have net worth equivalent to at least 25% of total project area under the span of railway network. Roads on the other cost. Further the players should also have strong technical hand have a much wider reach. The railways cannot deliver and financial capacity. the goods at the door of the buyer. This is the reason why 60% of freight and 85% of passenger traffic goes by road.
9 Bajaj Capital Centre for Investment Research Stock Idea – IRB Infrastructure Developers Ltd.
Financials Income Statement (Quarterly): Consolidated Rs. Cr. Particulars Q3FY11 Q2FY11 Q3FY10 QoQ (%) YoY (%) Net Sales 668.8 490.3 433.1 36.4 54.4 Total Income 680.5 498.5 441.8 36.5 54.0 Total Expenditure 375.2 253.9 205.9 47.8 82.2 PBIDT 305.3 244.6 235.8 24.8 29.4 PBIDT Margin % 45.6 49.9 54.5
Interest 82.0 69.3 73.6 18.3 11.4 Depreciation 58.5 54.4 53.1 7.6 10.3 Tax 28.8 19.0 13.9 51.3 106.9 APAT 136.0 101.8 95.3 33.5 42.7 APATM (%) 20.3 20.8 22.0
Financials (Annual):Consolidated Rs. Cr. 3 yr CAGR 9MFY11 201003 200903 200803 200703 % Share Capital 332.4 332.4 332.4 332.4 247.3 Networth 2039.0 1729.1 1619.1 359.5 Capital Employed 5032.1 4274.9 3668.5 2989.2
Debt 2915.2 2485.9 2021.2 2518.0 CWIP 880.2 1454.5 888.9 555.2
Inventory 169.8 205.4 50.2 9.2 Sundry Debtors 29.7 13.0 11.8 143.7
Cash & Bank Balance 510.2 414.7 522.1 370.3 Revenues 1671.2 1704.9 991.9 732.7 305.7 77.3 Total Income 1712.8 1756.3 1030.7 789.6 328.7 74.8 Total Expenditure 891.9 906.4 553.1 320.8 140.3 86.3 PBIDT 820.8 849.9 477.6 468.8 188.4 65.2 Interest 217.4 251.4 148.3 200.6 91.3 40.1 Depreciation 166.7 181.9 114.4 101.6 52.6 51.2 APAT 358.6 375.3 177.1 113.4 22.0 157.4 Cash Flow from Operating Activities 903.3 261.5 211.9 247.2 Cash Flow from Investing Activities -1022.3 -604.7 -528.8 -1168.0
Cash Flow from Financing Activities 143.1 330.8 407.7 879.0 Free Cash Flows -119.0 -343.1 -316.9 -920.8
Dividend % 15.0 15.0 0.0 0.0 EPS (Rs.) 10.5 11.6 5.3 3.4 1.5 Debt-Equity Ratio 1.4 1.3 2.3 7.0 RoNW % 21.4 10.6 12.8 8.3
Fixed Asset Turnover Ratio 0.5 0.4 0.3 0.1
PBIDT Margin % 49.1 49.9 48.1 64.0 61.6 APAT Margin % 21.5 22.0 17.9 15.5 7.2 Note: Standalone results given for 9MFY11.
10 Bajaj Capital Centre for Investment Research Stock Idea – IRB Infrastructure Developers Ltd.
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1. BCL and its affiliates have not received compensation from the company covered herein in the past twelve months for Issue Management, Capital Structure, Mergers & Acquisitions, Buyback of shares and other corporate advisory services.
2. Affiliates of BCL are currently not having any mandate from the subject company.
3. BCL and its affiliates do not hold paid up capital of the company.
4. The Equity Analyst and his/her relatives/dependents hold no shares of the company covered as on the date of publication of research on the subject company.
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