ITNL - 4QFY2013 Result Review - Angel Broking

For 4QFY2013, on a consolidated basis, IL&FS Transportation Networks (ITNL) posted a mixed set of numbers with decent performance on the top-line front; however bottom-line was ahead of our estimate mainly due to lower tax provision provided during the quarter. The company reported consolidated revenue of Rs. 1,931cr (Rs. 1,989cr) in 4QFY2013, registering a decline of 2.9% yoy, which was marginally above our estimate of Rs. 1,850cr. EBITDA margins decline sequentially by 106bp to 24.4% (23.0%) in 4QFY2013, against our estimate of 28.0%. This was mainly on account of higher revenue contribution from the relatively lowmargin E&C segment during the quarter. Interest cost grew by 30.9% yoy to Rs. 302cr in 4QFY2013 and was higher than our estimate of Rs. 284cr.

On the earnings front, ITNL reported subdued growth of 2.1% yoy to Rs. 181cr (our estimate was Rs. 157cr) mainly on account of tax credit of Rs. 9cr in 4QFY2013 (against tax paid of Rs. 57cr in 4QFY2012).

Owing to the recent fall in the stock price we recommend a Buy on the stock with a target price of Rs. 230.

Source : Equity Bulls

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