IL&FS Transportation Networks - Mixed performance - Beat led by higher fee income - Emkay

Reco: ACCUMULATE
CMP: Rs 188
Target Price: Rs 221

- Std. APAT at Rs0.94bn +55%yoy v/s exp. Rs 0.55bn, EBITDA at Rs 1.9bn v/s Rs 1.33bn led by higher than expected fee income at Rs 2.1bn v/s exp of Rs 1.1bn – new wins contributed to fee

- Revenue at Rs 6.2bn -5% v/s exp. Rs7.7bn – E&C Execution disappoints at Rs3.9bn v/s exp of Rs 6.4bn, E&C margins stable at 9.4%, Orderbacklog at Rs109bn implied 2.7xFY12rev.

- Cons. Rev. +9.2%yoy to Rs 13.7bn led by 4%yoy growth in E&C Rev Rs9.2bn & toll income +57.6%yoy led by contribution from additional projects, Elsamax Rev +7%yoy to Rs1.96bn

- We have rolled over our valuation to FY14. ILFT a major beneficiary of traction gaining in highway awarding. FY13/14E EPS upgrade by 6%/8%. Maintain Accumulate - TP Rs221

Source : Equity Bulls

Keywords