MBL Infrastructures 3QFY2016 Results: Angel Broking

Views of Mr. Santosh Yellapu (Sr. Research Analyst - Infrastructure, Angel Broking) on MBL Infrastructures 3QFY2016 Results:

Results ahead of our 3QFY2016 estimates

"MBL reported consolidated sales of INR 692cr, up 27.6% YoY (ahead of our estimate of INR 570cr). Such strong growth is owing to better than expected execution seen across EPC business. Also, the quarter's topline benefitted from commencement of Waraseoni-Lalbarra BOT road project. MBL reported EBITDA margins of 10.3% slightly ahead of our 10.0% expectation. Reported EBITDA margins were down 147bps on YoY basis. EBITDA margins were impacted due to stronger execution of EPC works, which also reflect higher sub-contracting expenses. Lower tax rate (at 25.9%) and restricted 8.9% YoY increase in depreciation expenses, helped the company report better PAT margins of 3.6% for 3QFY2016 (ahead of our 3.2% estimate).

In 3QFY2016, MBL reported INR 415cr of an EPC order win from MoRTH. Further, in 4QFY2016 MBL reported 2 new EPC order wins worth INR 609cr. These recent order wins up to certain extent, allay street's concerns over the declining order book. Considering the strong bid pipeline from NHAI & MoRTH side, which should see awarding in next 45 days, we are comforted that MBL should see increase in its order inflow numbers. This should further translate to stronger execution and improvement in the profitability. Considering the visibility over the future growth prospects and attractive valuations, we maintain our BUY rating on the stock."

Shares of MBL Infrastructures Ltd was last trading in BSE at Rs.124.9 as compared to the previous close of Rs. 132.4. The total number of shares traded during the day was 11768 in over 474 trades.

The stock hit an intraday high of Rs. 133.7 and intraday low of 121. The net turnover during the day was Rs. 1474385.

Source : Equity Bulls

Keywords