IRB Infrastructure Developers Ltd - Robust execution continues - Emkay

Reco: BUY
CMP: Rs 71
Target Price: Rs 169

- 1Q EBITDA at Rs4.54 bn (+7% yoy) ahead of est of Rs4.2 bn led by higher E&C margins. Toll revenues +10.3% at Rs 2.78 bn. Like-to-like toll revenues +5.3% YoY. 10%/5.5% rev growth from Surat –Dahisar & Bharuch Surat

- Robust execution drives E&C rev to Rs7.5bn +3.7% /12% YoY/QoQ. EBITDA margin expand 60 bps at 28.5%. APAT at Rs 1.34bn, -4% YoY below est of Rs 1.42 bn led by higher than exp interest cost & tax outgo

- Inc. EBITDA/EPS for FY14E by 2%/3% on account of increase in E&C revenues (better than exp execution in Ahmedabad Vdr ) which partially offsets by decline in BOT toll rev (Adj for IRDP kohlapur, tumkur chitradurga, Surat Dahisar)

- Cuts TP by 16% due to inc in cost of equity, adj for lower traffic growth in road projects , reduced E&C multiple (from 7x to 5x) on account lower carry forward order backlog as order offtake slows down Maintain BUY TP 169 (earlier 200)

Source : Equity Bulls

Keywords