IRB - (CMP/TP: Rs. 93/Rs. 112) (Rating: Buy) - 3QFY2014 expectations - Angel Broking

IRB Infrastructure Developers (IRB) is expected to post a mixed performance for the quarter. We expect E&C segment revenues to decline by 9.2% yoy to Rs. 605cr, as Jaipur-Deoli and Tumkur-Chitradurga road BOT projects are near completion (~95% complete) and hence, will contribute meagerly to E&C revenue. However, the BOT segment is expected to report a healthy 20.0% yoy growth to Rs. 337cr, leading to a modest top-line growth of 3.0% to Rs. 941cr. We expect the blended EBITDA margin to be at 45.0%, a growth of 36bp yoy. Depreciation for the quarter is expected to jump by 17.4% yoy, owing to commissioning of the Jaipur-Deoli and Talegaon- Amravati projects. We project net profit before tax and after tax (post minority interest) at Rs. 153cr and Rs. 102cr, respectively, after factoring a blended tax rate of 34% for the quarter.

Source : Equity Bulls

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