IRB Infrastructure - Dialing the inorganic route to growth - Emkay

- Q4FY12 EBITDA at Rs3.8 bn (+21% yoy) higher than estimate led higher E&C margins which at 26.5% surprised positively driven by high margin earth works at Tumkur-Chitradurga.

- Revenues at Rs8.5 bn (+11% yoy) driven by 21% yoy growth in BOT revenues. Like to like BOT revenues +12.7% yoy. APAT at Rs 1.2bn (-23.7% yoy ) also came in ahead of estimates.

- IRB acquires 100% stake in 70 km Namakkal-Omallur (TN) BOT project at EV of Rs3.5 bn (Rs1.3 equity). Mgmt guides for 21% EIRR. We incorporate project in estimates at 16% EIRR.

- Upgrade FY13E EPS by 4% however maintain target as delay in toll collection at Kolhapur projects negates addition from new project. Maintain BUY with a target price of Rs 240.

Source : Equity Bulls

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