IL&FS Transportation Networks Ltd - Fee income led to the beat - Emkay

Reco: ACCUMULATE
CMP: Rs 170
Target Price: Rs 209

- APAT at Rs1.2bn +5.2%yoy v/s exp. Rs 1.1bn, EBITDA at Rs 4.66bn v/s Rs 4.15bn led by higher than expected fee booking - order wins worth Rs47bn in Q4 lead to higher fee booking.

- Revenue at Rs 7.7bn +47% v/s exp. Rs8.3bn - Execution under E&C vertical came in lower at Rs5.5bn, E&C margins at 8.7%, Fee income at Rs 1.9bn v/s exp. of Rs 1.2bn ahead of exp.

- Cons. Rev. +44%yoy to Rs 15.9 bn led by 42%yoy growth in E&C Rev Rs10.7bn & avg. daily toll collection +14.8%yoy at Rs19.1mn/day, Elsamax Rev +27%yoy to Rs2.1bn.

- Order-backlog at Rs 107bn implied 2.7xFY12E&C rev., Further tendering of projects lined up in proximity to existing portfolio provides ILFT an edge - Maintain Accumulate - TP Rs209.

Source : Equity Bulls

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