Unity Infraprojects - Superior execution leads to higher profit... - ICICIdirect

Unity Infraprojects (Unity) reported superior execution in Q3FY13 and, consequently, reported higher than expected profits. While the topline stood at Rs. 551.1 crore vs. our estimates of Rs. 515.7 crore, EBITDA margins at 13.9% were largely in line with our estimate of 14%. The PAT at Rs. 28.1 crore, therefore, was ahead of our expectations of ~Rs. 20 crore given the superior execution and lower tax rate of 22.2% in Q3FY13.

While the order book stood at Rs. 4,045 crore, 2x order book to bill ratio (on a TTM basis), we believe that FC (one already achieved, one under way out of three) & subsequent execution on BOT projects (constitutes ~25% of order book) would hold key for topline growth, going ahead.

We maintain BUY on the stock given attractive valuations and superior return ratios.

Source : Equity Bulls

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