irb infra, 7th february, 2013

7/29/2019 IRB Infra, 7th February, 2013

1/14

Please refer to important disclosures at the end of this report 1

Op. profit 408 342 381 19.4 7.1

Source: Company, Angel Research

For 3QFY2013, IRB Infrastructure Developers (IRB) reported a healthy set of numbers,

above our expectations on the profitability front. Although, the companys revenue

came slightly below our expectation, but owing to better-than-expected performance

at the EBITDAM level and lower tax expense, earnings were higher than estimates. Inaccordance with its strategy to declare ~20% of post-tax consolidated profit towards

dividend, IRB declared an interim dividend of`1/share.

IRB reported a net consolidated revenue of`914cr

for 3QFY2013 (our estimate was of`930cr), an increase of 22.5% yoy, owing to

higher-than-expected E&C revenue from its under construction projects. The E&C

segment reported a revenue of`666cr registering a growth of 26.7% yoy, and the

BOT segment witnessed a growth of 10.6% yoy to`280cr. On the EBITDAM front,

IRBs margin declined by 117bp to 44.6%, however was higher than our estimate

of 44%. Strong execution in its under-construction BOT projects led to EBITDAM of

29.6% (including other income) for the E&C segment. The interest cost came in at

`159cr, higher by 12.3% on a yoy basis. At the earnings front, IRB reported a

growth of 8.6% yoy to`143cr, above our estimate of`136cr on account of better-

than-expected operating performance and lower tax expense during the quarter.

IRB has a robust order book of`7,100cr (2.8x FY2013E

E&C revenue, excluding O&M orders), which lends revenue visibility. IRB is

currently pre-qualified to submit bids for projects worth `22,436cr and is

targeting order inflow of `3,000cr-4,000cr over FY2014. The stock trades at

FY2013E and FY2014E P/B of 1.2x and 1.1x respectively.

% chg 43.0 28.5 22.7 9.6

% chg 17.4 9.6 13.5 5.3

EBITDA (%) 44.6 43.7 43.7 43.6

P/E (x) 8.8 8.0 7.1 6.7

P/BV (x) 1.6 1.4 1.2 1.1

RoE (%) 20.2 18.8 18.4 17.0

RoCE (%) 14.1 12.4 10.7 9.3

EV/Sales (x) 3.0 2.9 3.1 3.4

EV/EBITDA (x) 6.8 6.7 7.2 7.9

OB/sales(x) 6.1 3.0 2.9 3.4

Order inflow 5,514 (1,058) 3,542 4,105

%chg 10.2 - - 15.9


CMP `124

Target Price `164

Investment Period 12 Months

Stock Info

Sector

Net debt 6,645

Bloomberg Code

Shareholding Pattern (%)

Promoters 62.7

MF / Banks / Indian Fls 3.3

FII / NRIs / OCBs 22.3

Indian Public / Others 11.7

Abs. (%) 3m 1yr 3yr

Sensex 4.4 11.4 23.4

IRB 1.4 (26.6) (49.4)

Reuters Code IRBI.BO

IRB@IN

BSE Sensex 19,640

Nifty 5,959

Avg. Daily Volume 648,094

Face Value (`) 10

Beta 1.4

52 Week High / Low 210/100

Infrastructure

Market Cap (`cr) 4,131

022-39357800 Ext: 6842

[email protected]

Performance Highlights

3QFY2013 Result Update | Infrastructure

February 6, 2013


2/14

3QFY2013 Result Update | India Research

February 6, 2013 2

Exhibit 1:3QFY2013 performance (Consolidated)

Total expenditure 506 404 25.2 465 8.9 1,525 1,290 18.2

OPM (%) 44.6 45.8 (117) bp 45.0 (40) bp 44.3 43.5 85 bp

Interest 159 142 12.3 148 7.7 461 401 15.2

Depreciation 113 72 55.9 111 1.9 332 195 69.9

Non operating income 33 34 (3.1) 33 (1.1) 98 92 6.8

Nonrecurring items/Div. from SPV's - - - - - - - -

Tax 27 29 37 119 110 8.5

Share of Profits/ (Losses) of Asso. - - - - - -

Share of Profits/ (Losses) of MI (1) 1 (325.7) (2) (36.8) (6) 3 -

PAT (%) 15.6 17.6 (200)bp 14.3 131 bp 14.8 16.5 (165) bp


Exhibit 2:Segmental revenue break-up (Consolidated)

Construction segment (including) OI) 666 526 26.7 622 7.2 2,038 1,650 23.5

BOT segment 280 253 10.6 257 9.2 799 724 10.3

Construction segment 197 147 34.4 187 5.5 611 442 38.3

BOT segment 243 229 6.4 227 7.3 702 643 9.1

Construction segment (%) 29.6 27.9 171 bp 30.1 (49) bp 30.0 26.8 321 bp

BOT segment (%) 86.7 90.2 (345)bp 88.2 (148) bp 87.8 88.8 (98)bp


BOT segment 99 110 (10.5) 88 12.6 280 308 (9.2)

Construction segment 14 14 (2.4) 14 2.3 40 42 (4.0)

BOT segment 99 58 70.3 97 1.9 292 153 90.2


BOT segment 46 60 (24.1) 42 8.9 130 181 (28.4)


BOT segment 59 63 (6.7) 42 40.3 135 167 (19.1)



3/14


February 6, 2013 3

Exhibit 3:2QFY2013 Actual vs Angel estimates

Revenue 930 914 (1.8)

EBITDA 409 408 (0.4)Interest 154 159 3.6

PBT 178 168 (5.6)

Tax 45 27 (39.2)

PAT 136 143 4.8


Sturdy execution continues

IRB reported a net consolidated revenue of`914cr in 3QFY2013 (our estimate was

`930cr), an increase of 22.5% yoy, owing to higher-than-expected E&C income

from under-construction projects (Jaipur-Deoli ~`142cr, Talegaon-Amravati ~`159cr, Pathankot-Amritsar ~`143cr and Tumkur-Chitradurga ~`200cr).

The E&C segment reported a growth of 26.7% yoy to `666cr (including other

income of`22cr). The BOT segment revenues reported a revenue growth of 10.6%

yoy to`280cr in 3QFY2013.

Completion achieved by IRB on various under-construction projects is as following:

Jaipur-Deoli 90%; Talegaon-Amravati 90%; Pathankot-Amritsar 73%; and

Tumkur-Chitradurga 62%. Further IRB is looking to achieve completion for Jaipur

Deoli and Talegaon Amravati in 4QFY2013 while for Pathankot-Amritsar and

Tumkur-Chitradurga the completion is expected to be achieved by June 2013 and

December 2013 respectively.

Under-construction/development projects update

A state government appointed committee visited the site on

February 1, 2013 and is likely to submit its report validating the substantial

completion of the project, post which IRB would be able to commence toll

collection.

MVR Infrastructure and Tollways Pvt Ltd has become a subsidiary of the

company from October 1, 2012. The gross toll collection revenue for the quarter

stood at`15cr.

The company has received the necessary clearance for the

project and has started toll collection on the existing four lane expressway from

January 1, 2013.

IRB is waiting for LOA from NHAI for this recently bagged project;

once received, it would commence construction activity on the project.

IRB has got all the necessary clearances for a

greenfield airport in Sindhudurg district in Maharashtra and expects the

construction to start soon. The total project cost is estimated to be `350cr and the

EPC contract for the project has been awarded to L&T. The project has a

concessionaire period of 95 years which includes 18 months of construction

period.


4/14


February 6, 2013 4

Exhibit 4:Strong performance continues


Exhibit 5:Segmental break-up of revenue (`cr)


BOT toll revenue

On the toll collection front, for 3QFY2013, Surat-Dahisar, Mumbai-Pune and

Bharuch-Surat projects witnessed 8.7%, 5.1% and 4.8% growth in toll revenue on a

yoy basis, respectively. Adjusted for the hike in toll rates and ban in mining activity,

Bharuch-Surat and Tumkur-Chitradurga saw a decline in traffic growth for the

quarter. Overall, on the toll collection front, IRB reported a growth of 10.7% yoy to

`357cr in 3QFY2013 with an average toll collection of`4cr/day from its existing

BOT portfolio.

IRB expects toll revenue to grow around 12% on a yearly basis as a result of higher

WPI and traffic growth.

Exhibit 6:Road BOT project-wise toll revenue growth

Surat Dahisar BOT Project^ 116 106 8.7 103 12.8 325 294 10.2

Mumbai Pune BOT Project 105 100 5.1 104 1.2 313 298 4.8

Thane Bhiwandi Bypass 4 Lane BOT Project 17 16 8.2 16 7.5 50 46 9.6

Thane Ghodbunder BOT Project 8 8 5.3 7 8.2 23 21 7.9

Pune Nashik BOT Project 6 6 3.4 6 (1.6) 18 17 4.7

Pune Sholapur BOT Project 4 4 2.4 4 4.9 13 12 5.6

Nagar Karmala Tembhurni BOT Project 4 4 8.6 4 0.0 11 11 4.7

Mohol Mandrup Kamtee BOT Project 2 2 (5.3) 2 (5.3) 6 6 0.0Kharpada Bridge BOT Project 2 2 5.0 2 10.5 6 6 3.2

Bharuch Surat BOT Project $ 39 37 4.8 40 (1.8) 117 106 10.7

Kaman Paygaon BOT Project ** 0 0 - 0 0.0 0 0 0.0

Khambatki Ghat BOT Project * 0 0 - 0 0.0 0 0 0.0

Tumkur Chitradurga# 39 38 3.7 40 (0.3) 120 88 0.0

Ommalur -Salem- Namakkal #* 15 0 - 0 - 15 0 -

Source: Company, Angel Research; Note * Concession period of Khambatki Ghat BOT project ended on May 3, 2009, ^ Surat-Dahisar commissioned onFebruary 20, 2009, $ Bharuch Surat BOT project commissioned on September 25, 2009, ** Kaman-Paygaon BOT project concession period stopped fromNovember 22, 2009, # Tumkur Chitradurga Project commissioned on June 4, 2011; #* Project acquired in October-2012 by purchase of 74% of equity stakein the Project

801

736

746

848

980

845

914

56.550.1

11.5 10.6

22.3

14.9 22.5

-

10.0

20.0

30.0

40.0

50.0

60.0

0

200

400

600

800

1,000

1,200

1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13

Net Sales (` cr, LHS) Growth (yoy %, RHS)

597

528

526

625

750

622

666

232

238

253

257

262

257

280

0

100

200

300

400

500

600

700

800


E&C ( ` cr) BOT (` cr)


5/14


February 6, 2013 5

Impressive show on the EBITDA and earnings front

On the operating front, IRB reported an EBITDAM of 44.6% for the quarter, higher

than our estimate of 44%. Further, the E&C segments EBITDAM at 29.6%

(including other income) was led by strong execution of its under-construction BOT

projects. The Management expects to maintain these margins going ahead as well,

given that input prices are unlikely to change significantly. On the BOT front, the

company reported an EBITDAM of 86.7%, registering a decline of 345bp yoy.

Depreciation increased by 55.9% yoy to`113cr and was in-line with our estimate.

Interest cost came in at`159cr, higher by 12.3% on a yoy basis. At the earnings

front, IRB reported a PAT of`143cr for the quarter (above our estimate of`136cr),

a growth o 8.6%, on account of better-than-expected operating performance and

lower tax rate.

Exhibit 7:EBITDA margin steady


Exhibit 8:Healthy performance on the earnings front


329

321

342

381

425

381

408

41.1 43.7

45.8 44.9

43.4

45.044.6

36.0

38.0

40.0

42.0

44.0

46.0

48.0

-

50

100

150

200

250

300

350

400

450


EBITDA (` cr), LHS) EBITDAM (%, RHS)

134

110

131

120

142

121

143

16.7

15.0

17.6

14.2

14.5

14.3

15.6

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

0

20

40

60

80

100

120

140

160


PAT (` cr, LHS) PATM (%, RHS)


6/14


February 6, 2013 6

Outlook and valuation

We have revised our estimates marginally upwards for FY2013 owing to better-

than-expected performance by IRB.

Exhibit 9:Change in estimates

Revenues (`cr) 3,843 3,843 0.0 4,212 4,212 0.0

EBITDA Margins (%) 43.1 43.7 1.4 43.6 43.6 0.0

PAT (`cr) 560 563 0.6 593 593 0.0


In accordance with its strategy to declare ~20% of post-tax consolidated profit towards

dividend, IRB declared an interim dividend of`1/share during the quarter.

IRB has a robust order book of `7,100cr (2.8x FY2013E E&C revenue, excluding

O&M orders), which lends revenue visibility. Although a slowdown in order

awarding by NHAI in road sector has been witnessed in 9MFY2013; IRB expects

ordering activity to improve going ahead. IRB is currently pre-qualified to submit

bids for projects worth `22,436cr and is targeting order inflow of `3,000cr-

4,000cr over FY2014.


7/14


February 6, 2013 7

Exhibit 10:SOTP break-up

IRB's construction business Construction 3,43 5 1,716 52 31.4P/E of 5x one year rolling

forward earnings

Thane Bhiwandi Bypass Toll 330 10 6.0 NPV at CoE of 14%

Kharpada Bridge Toll 29 1 0.5 NPV at CoE of 14%

Nagar - Karnala - Tembhurni Toll 59 2 1.1 NPV at CoE of 14%

Mohol - Mandrup - Kamtee Toll 46 1 0.8 NPV at CoE of 14%

Pune - Solapur Toll 103 3 1.9 NPV at CoE of 14%

Pune - Nashik Toll 152 5 2.8 NPV at CoE of 14%

Mumbai - Pune Toll 1600 48 29.3 NPV at CoE of 14%

Thane Ghodbunder Toll 126 4 2.3 NPV at CoE of 14%

Surat Dahisar Toll 226 7 4.1 NPV at CoE of 14%

Bharuch - Surat Toll 217 7 4.0 NPV at CoE of 14%

IRDP, Kolhapur Toll 251 8 4.6 NPV at CoE of 14%

Pathankot - Amritsar Toll 453 14 8.3 NPV at CoE of 14%

Talegaon - Amravati Toll 398 12 7.3 NPV at CoE of 14%

Jaipur- Deoli Toll 480 14 8.8 NPV at CoE of 14%

Tumkur - Chitradurga Toll 286 9 5.2 NPV at CoE of 14%

Ahmedabad- Vadodara Toll (3,00) (9) (5.5) NPV at CoE of 14%

Omallur Salem -Namakkal Toll 65 2 1.2 NPV at CoE of 14%

Real Estate Real Estate 1,500 0 0 0 0.0 No value ascribed given thepending court case

Net debt (770) (23) (14.1) Standalone net debt


Exhibit 11:Key assumptions

Status Oper. Oper. Oper. Oper. Oper. Oper. Oper. Oper. Oper. Under Dev. Under Dev. Under Dev. Under Dev. Under Dev. Under Dev. Under Dev.

KM 24 1 60 33 26 30 206 15 65 240 50 102 146 67 114 102

Issuing Auth. PWD MORTH PWD PWD MORTH MORTH MSRDC MSRDC NHAI NHAI MSRDC NHAI NHAI NHAI NHAI NHAI

State Mah. Mah. Mah. Mah. Mah. Mah. Mah. Mah. Gujarat Guj./Mah Mah. Punjab Rajasthan Mah. Karnataka Gujarat

Concession (Yrs) 18.5 17.8 15.0 16.0 16.0 18.0 15.0 15.0 15.0 12.1 30.0 20.0 25.0 22.0 26.0 25.0

Con. Start Jan-99 Nov-97 Nov-01 May-02 Mar-03 Sep-03 Aug-04 Dec-05 Jan-07 Feb-09 Jan-09 Apr-10 Apr-10 Apr-10 Jun-11 Apr-12

Con. End May-17 Aug-15 Dec-16 May-18 Mar-19 Sep-21 Aug-19 Dec-20 Jan-22 Mar-21 Jan-39 Mar-30 Mar-35 Mar-32 May-37 Apr-37

TPC (`cr) 104 32 37 18 63 74 1,292 249 1,470 2,535 430 1,442 1,705 885 1,142 4,920

Equity (`cr) 34 10 15 7 18 6 105 32 198 785 172 391 499 194 311 1,420

Debt (`cr) 70 22 22 11 45 68 1,187 217 1,272 1,750 258 924 900 475 831 3,500

Grant (`cr) - - - - - - - - - - (27.0) 126.9 306.0 216.0 140.4 -

Traffic Grth (%) 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 6/5%

Toll inc (%) 5% 0% 5% 5% 3% 5% #18% 5% 7/6/5% 5% 5% 5% 5% 5% 5% 5%

Int Rate (%) - - - - - - 10.6% - 10.8% 10.5% 11.5% 10.5% 10.5% 10.5% 10.5% 11.0%

Source: Company, Angel Research, Note: #Once in three years; $ IRB had shared 38% of its FY2011 revenue with NHAI and the same increases by 1%

every year; @ IRB is expected to pay a sum of`309.6cr to NHAI from FY2013 and the sum increases by 5% every year


8/14


February 6, 2013 8

Exhibit 12:Angel EPS forecast vs consensus

FY2013E 16.9 15.8 (1.6)

FY2014E 17.8 16.0 6.5Source: Company, Angel Research

Investment arguments

IRBs integrated business model ensures the timely

completion of projects, reduces its reliance on subcontractors and controls costs.

Further, it allows capturing the entire value in the BOT development business,

including EPC margins, developer returns and operation and maintenance (O&M)

margins.

The order book of `7,100cr, excluding

O&M orders (2.8x FY2013E E&C revenue), lends good revenue visibility for the

next few years.

Negligible dependence on capital markets: IRBs internal accruals (cash flows

from the E&C and BOT segments) would substantially fund equity requirement of

its current portfolio. Further, the company would be able to keep its debt-equity

position within reasonable limits.

Concerns

IRB, being a road-focused player, is dependent on NHAI

for road awarding activity. Thus, any slowdown from NHAIs end would affect IRBs

order inflow. However, given the huge bidding pipeline of NHAI, IRB should

perform well, as it is one of the market leaders.

BOT projects are inherently high-leverage projects. Hence, IRBs

business model is vulnerable to interest rate fluctuations, and any hike in interest

rates could increase the companys interest costs.

Road players are facing pressures from the recent price inflation

in commodities such as cement and steel, which directly affect margins.

Incorporated in 1998, IRB is the pioneer and one the largest players in the road

BOT business in India, with strong in-house integrated execution capabilities. IRBs

road business can be divided into two verticals: 1) engineering and construction

(E&C); and 2) toll collection and maintenance. The E&C arm complements its BOT

vertical and leads to time and cost control for projects in hand/under development.

The company also has one airport project, which is at a very nascent stage; decent

land bank; and one small wind mill project.


9/14


February 6, 2013 9

Exhibit 13:Recommendation summary

ABL 224 268 Buy 1,500 1,866 2,131 19.2 22.6 24.3 27.0 9.3 9.9 9.2 8.3 2.9CCCL 15 - Neutral 2,048 2,262 2,522 11.0 (0.5) 1.5 2.7 - - 9.8 5.5 2.2

ITNL 203 225 Accu. 5,606 6,564 7,054 12.2 25.6 26.3 29.0 6.5 7.9 7.7 7.0 1.5

IVRCL 33 33 Neutral 6,178 4,249 6,897 5.7 0.6 0.3 3.3 136.8 55.5 106.0 9.9 5.0

JP Assoc. 73 100 Buy 12,853 13,842 15,863 11.1 4.8 3.7 4.6 (2.8) 15.2 20.0 16.1 -

L&T 1,515 1,788 Buy 53,171 60,666 69,525 14.3 64.3 63.2 75.1 8.1 23.6 24.0 20.2 2.7

NCC 43 43 Neutral 5,250 5,947 6,569 11.9 1.4 3.1 4.1 71.4 30.5 13.7 10.4 3.4

Punj Lloyd 51 - Neutral 10,557 11,892 13,116 11.5 2.8 1.8 3.2 7.8 18.3 28.0 15.8 2.3

Sadbhav 121 168 Buy 2,676 2,344 2,804 2.4 9.3 7.2 8.7 (3.5) 13.0 16.9 14.0 2.9

Simplex In. 179 251 Buy 6,010 6,906 8,053 15.8 18.1 23.2 31.3 31.7 9.9 7.7 5.7 2.4

Unity Infra 39 59 Buy 1,973 2,180 2,455 11.5 14.0 13.3 15.0 3.5 2.8 2.9 2.6 2.2


Exhibit 14:SOTP break-up

ABL 86 32 - - 182 68 - - - - 268

CCCL 16 100 - - - - - - - - 16

ITNL 74 33 - - 121 54 - - 30 13 225IVRCL 17 46 - - - - 20 54 - - 37

JP Assoc. 27 27 30 30 - - - - 43 43 100

L&T 1,351 76 - - - - 437 24 - - 1,788

NCC 25 57 - - 7 16 - - 12 27 44

Punj Lloyd 64 100 - - - - - - - - 64

Sadbhav 70 41 - - 99 59 - - - - 168

Simplex In. 251 100 - - - - - - - - 251

Unity Infra 52 88 - - 7 12 - - - - 59



10/14


February 6, 2013 10

Profit & loss statement (Consolidated)

Other operating income

% chg 35.4 71.9 43.0 28.5 22.7 9.6

R.M. consumed 305 450 413 639 711 779

Construction expenses 163 335 769 886 1,172 1,301

Employee expenses 42 71 93 138 161 168

SG&A 42 50 76 101 119 126

% chg 6.5 82.1 36.2 25.8 22.6 9.4

(% of Net Sales) 44.2 46.9 44.6 43.7 43.7 43.6

Depreciation & Amortisation 114 182 225 297 447 534

% chg 4.6 90.2 39.8 24.3 14.9 5.7

(% of Net Sales) 32.7 36.2 35.4 34.2 32.1 30.9

Interest & other Charges 148 251 352 546 616 659

Other Income 39 51 64 125 134 147

(% of PBT) 18.0 12.2 11.2 19.2 17.9 18.6

Share in profit of Associates - - - - - -

% chg 29.1 93.8 38.2 13.1 15.3 5.3

Extraordinary Expense/(Inc.) - - - - - -

Tax 37.8 13.3 111.7 155.2 187.7 197.6

(% of PBT) 17.6 3.2 19.4 23.8 25.0 25.0

Add: Share of earnings of asso. - - - - - -

Less: Minority interest (MI) 1.3 17.9 11.7 0.0 0.0 0.0

Prior period items - - - - - -

% chg 53.4 119.2 17.4 9.6 13.5 5.3(% of Net Sales) 17.7 22.6 18.6 15.8 14.7 14.1

% chg 53.4 119.2 17.4 9.6 13.5 5.3


11/14


February 6, 2013 11

Balance sheet (Consolidated)

Equity Share Capital 332 332 332 332 332 332Preference Capital - - - - - -

Reserves & Surplus 1,398 1,708 2,100 2,524 2,940 3,385

Total Loans 2,486 2,915 4,624 7,072 9,472 11,172

Deferred Tax Liability 18 27 23 26 26 26

Gross Block 2,460 4,019 4,132 6,620 9,126 11,868

Less: Acc. Depreciation 444 551 769 1,065 1,512 2,046

Capital Work-in-Progress 1,455 880 2,507 2,445 3,587 4,026

Goodwill - - - - - -

Cash 415 510 1,200 1,821 1,355 719

Loans & Advances 385 438 600 778 1,031 1,202

Other 218 199 255 246 335 361

Current liabilities 306 482 810 791 1,064 1,136

Mis. Exp. not written off 1 1 - - - -


12/14


February 6, 2013 12

Cash flow statement (Consolidated)

Profit before tax 215 417 576 651 751 791

Depreciation 110 107 218 295 447 534Change in Working Capital (120) 141 111 (188) (69) (125)

Less: Other income (39) (51) (64) (125) (134) (147)

Direct taxes paid (38) (13) (112) (155) (188) (198)

(Inc.)/ Dec. in Fixed Assets (807) (984) (1,740) (2,425) (3,650) (3,180)

(Inc.)/ Dec. in Investments 88 66 (10) 41 (10) (10)

Other income 39 51 64 125 134 147

Issue of Equity (0) - 0 (0) - -

Inc./(Dec.) in loans 465 429 1,709 2,448 2,400 1,700

Dividend Paid (Incl. Tax) (65) (76) (60) (72) (148) (148)

Others 45 9 (3) 25 - -

Inc./(Dec.) in Cash (107) 95 690 621 (466) (636)


13/14


February 6, 2013 13

Key Ratios

P/E (on FDEPS) 23.5 10.7 9.1 8.3 7.3 7.0P/CEPS 14.2 7.3 6.1 5.2 4.1 3.7

P/BV 2.4 2.0 1.7 1.4 1.3 1.1

Dividend yield (%) 1.3 1.6 1.2 1.4 3.0 3.0

EV/Sales 6.3 3.8 3.1 3.0 3.2 3.5

EV/EBITDA 14.1 8.2 6.9 6.9 7.3 7.9

EV / Total Assets 1.4 1.3 1.1 0.9 1.0 1.0

EPS (Basic) 5.3 11.6 13.6 14.9 16.9 17.8

EPS (fully diluted) 5.3 11.6 13.6 14.9 16.9 17.8

Cash EPS 8.7 17.1 20.4 23.9 30.4 33.9

DPS 1.7 1.9 1.5 1.8 3.7 3.7

Book Value 52.1 61.4 73.2 85.9 98.4 111.8

EBIT margin 32.7 36.2 35.4 34.2 32.1 30.9

Tax retention ratio 82.4 96.8 80.6 76.2 75.0 75.0

Asset turnover (x) 0.3 0.4 0.5 0.4 0.4 0.3

ROIC (Post-tax) 7.6 14.2 13.2 11.5 9.3 7.6

Cost of Debt (Post Tax) 5.4 9.0 7.5 7.1 5.6 4.8

Leverage (x) 1.1 1.2 1.3 1.6 2.2 2.6

Operating ROE 9.9 20.3 20.6 18.6 17.5 14.9

ROCE (Pre-tax) 8.1 13.2 14.1 12.4 10.7 9.3

Angel ROIC (Pre-tax) 13.8 20.3 24.2 23.2 17.9 14.3

ROE 10.5 20.4 20.2 18.8 18.4 17.0

Asset Turnover (Gross Block) 0.4 0.5 0.6 0.6 0.5 0.4

Inventory / Sales (days) 47 40 25 19 19 21

Receivables (days) 5 5 5 3 2 2

Payables (days) 87 62 125 168 153 151

WC cycle (ex-cash) (days) 191 133 112 109 113 127

Net debt to equity 1.2 1.2 1.4 1.8 2.5 2.8

Net debt to EBITDA 4.7 3.0 3.1 3.8 4.8 5.7

Interest Coverage 2.2 2.5 2.5 2.0 2.0 2.0


14/14


Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com

This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment

decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should makesuch investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies

referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and

risks of such an investment.

Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make

investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this

document are those of the analyst, and the company may or may not subscribe to all the views expressed within.

Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and

trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's

fundamentals.

The information in this document has been printed on the basis of publicly available information, internal data and other reliablesources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as thisdocument is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any wayresponsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report .Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify,nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. WhileAngel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory,compliance, or other reasons that prevent us from doing so.

This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,

redistributed or passed on, directly or indirectly.

Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or

other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in

the past.

Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in

connection with the use of this information.

Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, pleaserefer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited andits affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement IRB Infra

1. Analyst ownership of the stock No

2. Angel and its Group companies ownership of the stock No

3. Angel and its Group companies' Directors ownership of the stock No

4. Broking relationship with company covered No

Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors.

Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)

irb infra, 7th february, 2013

Documents