Reliance Infrastructure - March 2013 Results Preview - Motilal Oswal

- We expect Reliance Infrastructure (RELI) to report 4QFY13E revenue of INR41.8b (down 27% YoY) and PAT of INR3.8b (down 40% YoY). During the quarter, we expect RELI to post EPC revenue of INR21.7b (v/s INR43.8b YoY).

- In the cement business, total capacity under development is 5m ton in MP and Maharashtra. The grinding unit at Butibori has been commissioned.

- In Metro 1 project in Mumbai, 100% civil work is completed. Station work and line work are in process and it is expected to be operational in the next financial year.

- EPC revenue in FY14E/15E may get impacted due to prolonged delay in large capacity projects of Chittrangi, Krishnapattnam and Tilaiya.

- We expect RELI to report standalone PAT of INR10.8b in FY13E (down 45% YoY) and INR14b in FY14E (up 28% YoY). Stock trades at reported P/E of 5.4x FY15E.

Source : Equity Bulls

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