IL&FS Transportation Networks - Q3 FY13 Results First Cut - Microsec

IL&FS Transportation Networks Ltd (ITNL) announced its Q3FY13 results on 4th Feb, 2013.

The Company's Net Sales arrived at INR1764 crore, which was up 28% on QoQ basis and 39% up on YoY basis. The EBITDA for the quarter was INR449 crore, which increased by 40% on YoY basis, but decreased marginally by 0.64% on QoQ basis. The company posted a consolidated Net profit of INR104 crore, which increased by 18% on yearly basis.

EBITDA Margin of the company increased from 25.28% to 25.49%, registering an improvement of 21 BPS. ITNL has posted a strong set of numbers for 3QFY2013 owing to healthy order book and pick up in execution.

ITNL has INR 110 bn worth of project capital works remaining to be executed in over the period of 3-4 years, which provides high revenue visibility over the next few years with an average execution period of 30 months.

Aided by a strong balance sheet, ITNL is one of the best asset plays due to peaking interest rates scenario. Declining competition for road BOT projects due to tight liquidity conditions is likely to benefit financially sound companies like ITNL which can win USD1bn worth of new projects every year without any equity dilution.

At the CMP of INR 204, the stock trades at a P/E and EV/EBIDTA of 7.8x and 8.42x, discounting its FY13 earnings. We assign a P/E of 8.8x and arrive at a target price of Rs 245.We maintained our "BUY" recommendation on the stock.

Source : Equity Bulls

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