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Transcript of IVRCL Infrastructure
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Please refer to important disclosures at the end of this report 1
Y/E March (` cr) 1QFY12 1QFY11 % chg (yoy) 4QFY11 % chg (qoq)
Revenue 1,124 1,106 1.6 2,052 (45.2)
EBITDA 85.6 100.8 (15.1) 178.1 (51.9)
PAT 4.2 28.1 (85.0) 64.3 (93.4)
Source: Company, Angel Research
IVRCL Infrastructure (IVRCL) reported disappointing set of numbers for
1QFY2012, with lower-than-expected performance on all fronts despite our
estimates being the lowest on street. We are revising our estimates downwards
and have reduced our target P/E multiple to 7x from 8x to factor in poor
performance in 1QFY2012, high interest rate scenario and persistent pessimismsurrounding the sector. However, the recent sharp fall in IVRCL’s stock price has
brought the stock at undemanding valuations of 0.5x P/BV on FY2013E
(standalone). Hence, we maintain our Buy view on the stock.
Results disappoint, despite low expectations: IVRCL reported abysmal 1.6% yoy
top-line growth to ` 1,124.3cr ( ` 1,106.4cr), below our and street estimates. On
the operating margin front, the company posted dismal margin of 7.6% (9.1%), a
dip of 150bp yoy, against our estimate of 8.9% owing to commodity price
pressures, high labour charges and ineligibility to pass on escalations in water
projects (primarily in Tamil Nadu region). Further, IVRCL reported a shocking
85.0% yoy decline on the earnings front to ` 4.2cr ( ` 28.1cr), against our estimate
of ` 15.9cr and consensus estimate of ` 22.3cr. This was primarily on account oflow margin and higher interest cost ( ` 62.8cr).
Outlook and valuation: We have valued IVRCL on an SOTP basis. The company’s
core construction business is valued at P/E of 7x FY2013E EPS of ` 6.3
( ` 44.2/share), whereas its stake in subsidiaries IVR Prime ( ` 15.0/share) and
Hindustan Dorr-Oliver ( ` 4.5/share) has been valued on mcap basis, post
assigning a 20% holding company discount. At the CMP of ` 40, the stock is
trading at 6.3x FY2013E EPS and 0.5x FY2013E P/BV on a standalone basis and
adjusting for its subsidiaries at 3.2x FY2013E EPS and 0.2x FY2013E P/BV.
Therefore, on the back of the company’s robust order book-to-sales ratio (2.7x
FY2011 revenue, adjusted for L1 and slow-moving orders) and attractive
valuations, we maintain our Buy view on the stock with a target price of `64.
Key financials (Standalone)
Y/E March (` cr) FY2010 FY2011 FY2012E FY2013E
Net sales 5,492 5,651 5,798 6,994
% chg 10.3 2.9 2.6 20.6
Adj. net profit 211.3 158.1 114.4 168.7
% chg (6.5) (25.2) (27.6) 47.5
FDEPS (`) 7.9 5.9 4.3 6.3
EBITDA margin (%) 9.7 9.1 8.8 9.2
P/E (x) 5.0 6.7 9.2 6.3
RoAE (%) 11.5 8.2 5.6 7.9
RoACE (%) 14.2 11.6 10.0 11.4P/BV (x) 0.6 0.5 0.5 0.5
EV/Sales (x) 0.5 0.5 0.5 0.5
EV/EBITDA (x) 4.7 5.8 6.0 5.9
Source: Company, Angel Research
BUYCMP ` 40
Target Price ` 64
Investment Period 12 Months
Stock Info
Sector
Bloomberg Code
Shareholding Pattern (%)
Promoters 9.5
MF / Banks / Indian Fls 24.8
FII / NRIs / OCBs 49.3
Indian Public / Others 16.5
Abs. (%) 3m 1yr 3yr
Sensex (8.8) (7.3) 14.2
IVRCL (45.7) (75.4) (75.9)
2
16,731
5,036
IVRC.BO
IVRC@IN
1,056
1.7
174 / 39
475,913
Infrastructure
Avg. Daily Volume
Market Cap ( ` cr)
Beta
52 Week High / Low
Face Value ( ` )
BSE Sensex
Nifty
Reuters Code
Shailesh Kanani
022-39357800 Ext: 6829
Nitin Arora
022-39357800 Ext: 6842
IVRCL Infrastructure
Performance Highlights
1QFY2012 Result Update | Infrastructure
August 16, 2011
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IVRCL Infrastructure | 1QFY2012 Result Update
August 16, 2011
Exhibit 1: 1QFY2012 performance (Standalone)
Y/E March (` cr) 1QFY12 1QFY11 % chg (yoy) 4QFY11 % chg (qoq) FY2011 FY2010 % chg
Net Sales 1,124.3 1,106.4 1.6 2,052.2 (45.2) 5,651.5 5,492.3 2.9
Total Expenditure 1,038.7 1,005.7 3.3 1,874.1 (44.6) 5,136.9 4,961.0 3.5Operating Profit 85.6 100.8 (15.1) 178.1 (51.9) 514.6 531.3 (3.1)
OPM (%) 7.6 9.1 (150)bp 8.7 (110)bp 9.1 9.7 (60)bp
Interest 62.8 45.3 38.8 65.6 (4.3) 218.2 163.9 33.1
Depreciation 22.8 15.7 44.7 21.7 4.7 75.8 54.3 39.6
Non Operating Income 4.9 0.9 457.9 4.3 12.8 12.0 15.5 (22.8)
Nonrecurring items - - - - - - (140.9) -
Profit Before Tax 4.9 40.6 (88.0) 95.0 (94.9) 232.6 187.7 23.9
Tax 0.7 12.5 (94.7) 30.8 (97.8) 74.7 117.7 (36.5)
Reported PAT 4.2 28.1 (85.0) 64.3 (93.4) 157.9 70.0 125.5
PAT (%) 0.4 2.5 - 3.1 - 2.8 1.3 -
Adjusted PAT 4.2 28.1 (85.0) 64.3 (93.4) 158.1 211.3 (25.1)
Adj. PAT (%) 0.4 2.5(210)bp 3.1 (270)bp 2.8 3.8 (100)bp
Adj. FDEPS 0.2 1.1 (85.0) 2.4 (93.4) 5.9 7.9 (25.1)
Source: Company, Angel Research
Exhibit 2: 1QFY2012 Actual vs. Angel estimates
(` cr) Actual Estimates Variation (%)
Revenue 1,124.3 1,216.8 (7.6)
EBITDA margin (%) 7.6 8.9 (130)bp
PAT 4.2 15.9 (73.5)
Source: Company, Angel Research
Execution growth marred by headwinds
On the top-line front, IVRCL reported abysmal 1.6% growth yoy to ` 1,124.3cr
( ` 1,106.4cr), below our and street estimates. As per management, the current
scenario of high interest rates has resulted in slowdown in execution as
both IVRCL’s suppliers and sub-contractors are facing funding problems. Further,
this situation is likely to prevail for the next couple of quarters, given no evident
slowdown on the inflation front as of recent numbers. Against this backdrop, we
have pruned IVRCL’s revenue to ` 5,798cr ( ` 6,275cr) and ` 6,994cr ( ` 7,494cr) for
FY2012 and FY2013, respectively.
BOT toll revenue and projects update
As per management, three operational BOT projects contributed combined toll
revenue of ~ ` 24lakhs/day. This revenue is ~14% below the initial internal
estimates of IVRCL. Toll hike (linked to WPI) is going to take place in September
2011 for its projects, which will lend support to its revenue. Chennai desalination
project had revenue of ` 44lakhs/day during the quarter. Overall, the three road
projects and Chennai desalination project contributed ~ ` 62cr for the quarter.
On the under-construction projects front, work completed by the company
includes – Indore Gujarat project ( ` 700cr out of ` 1,300cr), Chengapalli ( ` 175crout of ` 900cr) and Baramati Phalthan ( ` 100cr out of ` 300cr). As far as the
under-development projects are concerned, IVRCL has started work on the Sion
Panvel and Chandrapur projects, which are expected to contribute to its revenue in
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IVRCL Infrastructure | 1QFY2012 Result Update
August 16, 2011
a couple of months; however, as the concession agreement for Goa Karnataka
project has not been signed, it will take another 6–8 months to start construction.
Margins under pressure
On the operating margin front, the company posted dismal margin of 7.6%
(9.1%), a dip of 150bp yoy against our estimate of 8.9%. As per management,
high material and labour costs and failure to pass on escalations in few water
projects (primarily in Tamil Nadu region, eligible to be claimed after 24 months)
have led to the poor performance at the margin level. We believe this scenario is
likely to continue for a few more quarters; hence, we have revised our margin
estimates to 8.8% (9.2%) and 9.2% (9.4%) for FY2012 and FY2013, respectively.
Exhibit 3: Execution slowdown – A cause of worry
Source: Company, Angel Research
Exhibit 4: Margin facing commodity price pressures
Source: Company, Angel Research
Bottom line pulled down by margin pressure and high interest cost
The below-par performance on the top-line front, EBITDAM front and high interest
cost led to an 85.0% yoy decline in earnings to ` 4.2cr ( ` 28.1cr). Interest cost for
the quarter came in-line with our expectation at ` 62.8cr, an increase of 38.8%
yoy. Further, going ahead interest rates are expected to remain high for the next
couple of quarters; hence, we have pruned our earnings estimate to ` 114.4cr
( ` 166.6cr) and ` 168.7cr ( ` 218.2cr) for FY2012 and FY2013, respectively, to
factor the same.
Exhibit 5: Earnings reflect poor revenue and margin show
Source: Company, Angel Research
Exhibit 6: Interest cost eating away the profitability
Source: Company, Angel Research
65.6
20.425.3
16.5
5.2 4.013.7
0.2
(11.7)
14.78.7
1.6
(45.0)
(25.0)
(5.0)
15.0
35.0
55.0
75.0
0
500
1,000
1,500
2,000
2,500
2 Q F Y 0 9
3 Q F Y 0 9
4 Q F Y 0 9
1 Q F Y 1 0
2 Q F Y 1 0
3 Q F Y 1 0
4 Q F Y 1 0
1 Q F Y 1 1
2 Q F Y 1 1
3 Q F Y 1 1
4 Q F Y 1 1
1 Q F Y 1 2
Sales (` cr, LHS) Growth (yoy %, RHS)
7.9
9.18.5
9.0 9.4 9.0
10.5
9.1 8.99.9
8.77.6
-
2.0
4.0
6.0
8.0
10.0
12.0
-
50.0
100.0
150.0
200.0
250.0
2 Q F Y 0 9
3 Q F Y 0 9
4 Q F Y 0 9
1 Q F Y 1 0
2 Q F Y 1 0
3 Q F Y 1 0
4 Q F Y 1 0
1 Q F Y 1 1
2 Q F Y 1 1
3 Q F Y 1 1
4 Q F Y 1 1
1 Q F Y 1 2
EBITDA (`cr, LHS) EBITDAM (%, RHS)
4.9
3.9
4.8
3.2
4.03.5
4.5
2.52.2
3.0 3.1
0.4
-
1.0
2.0
3.0
4.0
5.0
6.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
2 Q F Y 0 9
3 Q F Y 0 9
4 Q F Y 0 9
1 Q F Y 1 0
2 Q F Y 1 0
3 Q F Y 1 0
4 Q F Y 1 0
1 Q F Y 1 1
2 Q F Y 1 1
3 Q F Y 1 1
4 Q F Y 1 1
1 Q F Y 1 2
PAT (` cr, LHS) PATM (%, RHS)
37.8
(6.5)(1.7)
(8.2)
4.2
42.6
(13.8)
6.1
23.2
10.9
(4.3)
(20.0)
(10.0)
-
10.0
20.0
30.0
40.0
50.0
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
3 Q F Y 0 9
4 Q F Y 0 9
1 Q F Y 1 0
2 Q F Y 1 0
3 Q F Y 1 0
4 Q F Y 1 0
1 Q F Y 1 1
2 Q F Y 1 1
3 Q F Y 1 1
4 Q F Y 1 1
1 Q F Y 1 2
Interest Cost (` cr) qoq growth (%)
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IVRCL Infrastructure | 1QFY2012 Result Update
August 16, 2011
Exhibit 10: SOTP valuation
Business Segment Methodology Remarks ` cr `/share
Construction P/E 7x FY2013E earnings 1,181 44.2
IVRAH Mcap 20% holding company discount 400 15.0Hindustan-Dorr-Oliver Mcap 20% holding company discount 121 4.5
Total 1,702 64
Source: Company, Angel Research
Exhibit 11: Key assumptions – Order inflow assumptions trimmed
(` cr) FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E
Order inflow 8,795 6,421 8,696 12,400 7,640 9,621
Revenue 3,661 4,980 5,492 6,031 6,775 8,244
Order backlog (Y/E) 12,242 13,682 16,887 23,256 24,120 25,497
Order book/sales ratio (x) 3.3 2.7 3.1 3.9 3.6 3.1
Source: Company, Angel Research
Exhibit 12: Angel EPS forecast vs. consensus
Angel forecast Bloomberg consensus Variation (%)
FY2012E 4.3 6.9 61.0
FY2013E 6.3 8.4 33.0
Source: Company, Angel Research
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IVRCL Infrastructure | 1QFY2012 Result Update
August 16, 2011
Investment arguments
Equity infusion – The next catalyst: Given IVRCL’s equity commitment over the next
12–18 months, we believe it would dilute parent company’s stake in either IVRCL
Assets (IVRAH) or Hindustan Dorr Oliver and infuse the money in IVRAH for
mobilising its captive road projects. If IVRCL is able to achieve this, it would not
only improve its working capital cycle but also lend a fillip to execution for its
parent company.
Recent fall has led to undemanding valuations: The recent sharp fall in IVRCL’s
stock price has brought the stock at undemanding valuations. At current levels,
IVRCL is trading at valuations of mere 0.5x FY2013E P/BV and 6.3x PE
on FY2013E basis (standalone basis), which provides a good opportunity to enter
the stock.
Exhibit 13: Trading lower to its historical P/E multiple averages
Source: Company, Angel Research
Exhibit 14: Trading lower to its historical P/B multiple averages
Source: Company, Angel Research
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
1 2 - A u g - 0 4
1 2 - D e c - 0 4
1 2 - A p r - 0 5
1 2 - A u g - 0 5
1 2 - D e c - 0 5
1 2 - A p r - 0 6
1 2 - A u g - 0 6
1 2 - D e c - 0 6
1 2 - A p r - 0 7
1 2 - A u g - 0 7
1 2 - D e c - 0 7
1 2 - A p r - 0 8
1 2 - A u g - 0 8
1 2 - D e c - 0 8
1 2 - A p r - 0 9
1 2 - A u g - 0 9
1 2 - D e c - 0 9
1 2 - A p r - 1 0
1 2 - A u g - 1 0
1 2 - D e c - 1 0
1 2 - A p r - 1 1
1 2 - A u g - 1 1
P/E 7YEAR AVG 5YEAR AVG 3YEAR AVG
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
1 2 - A u g - 0 4
1 2 - D e c - 0 4
1 2 - A p r - 0 5
1 2 - A u g - 0 5
1 2 - D e c - 0 5
1 2 - A p r - 0 6
1 2 - A u g - 0 6
1 2 - D e c - 0 6
1 2 - A p r - 0 7
1 2 - A u g - 0 7
1 2 - D e c - 0 7
1 2 - A p r - 0 8
1 2 - A u g - 0 8
1 2 - D e c - 0 8
1 2 - A p r - 0 9
1 2 - A u g - 0 9
1 2 - D e c - 0 9
1 2 - A p r - 1 0
1 2 - A u g - 1 0
1 2 - D e c - 1 0
1 2 - A p r - 1 1
1 2 - A u g - 1 1
P/B 5YEAR AVG 3YEAR AVG 7YEAR AVG
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IVRCL Infrastructure | 1QFY2012 Result Update
August 16, 2011
Exhibit 15: Recommendation summary
Company CMP (`) TP (`) Rating Top-line (`cr) EPS (`) Adj. P/E OB/
FY11 FY12E FY13E CAGR (%) FY11 FY12E FY13E CAGR (%) FY11 FY12E FY13E Sales(x)
CCCL 22 - Neutral 2,199 2,362 2,646 9.7 2.5 1.5 3.6 18.4 8.7 14.8 6.2 2.8HCC 28 - Neutral 4,093 4,723 5,485 15.8 1.2 0.7 1.2 1.0 (1.9) (3.3) (1.9) 4.2
IRB Infra 156 191 Buy 2,438 3,024 3,995 28.0 13.6 13.0 14.5 3.3 5.5 5.8 5.1 -
IVRCL 40 64 Buy 5,651 5,798 6,994 11.2 5.9 4.3 6.3 3.3 2.2 3.0 2.0 4.2
JP Assoc. 57 108 Buy 13,217 15,860 18,708 19.0 3.1 5.1 6.8 48.8 18.6 11.1 8.4 -
Punj Lloyd 56 - Neutral 7,850 9,585 10,992 18.3 (5.4) 2.5 4.0 - - 22.6 13.9 2.8
NCC 54 82 Buy 5,074 5,755 6,689 14.8 6.4 5.5 6.7 2.4 4.0 4.7 3.9 3.2
Sadbhav 143 161 Accu. 2,209 2,602 2,865 13.9 8.0 8.4 11.4 19.6 8.8 8.3 6.1 3.2
Simplex In. 280 306 Accu. 4,896 5,373 6,221 12.7 25.1 22.3 30.6 10.4 11.2 12.6 9.1 2.9
Patel Engg 105 - Neutral 3,499 3,272 3,587 1.2 18.4 15.5 23.0 11.8 1.2 1.5 1.0 2.7
Madhucon 71 106 Buy 1,705 1,898 2,434 19.5 6.9 6.7 8.4 10.2 3.5 3.6 2.9 3.5
L&T 1,622 1,946 Buy 43,905 52,765 66,551 23.1 54.7 64.9 80.0 20.9 21.6 18.2 14.8 3.1
ITNL 186 259 Buy 4,049 4,910 6,484 26.5 22.3 23.9 25.3 6.4 0.8 0.7 0.7 5.5
Source: Company, Angel Research
Exhibit 16: SOTP break-up
Company Core Const. Real Estate Road BOT Invst. In Subsidiaries Others Total
` % to TP ` % to TP ` % to TP ` % to TP ` % to TP `CCCL 28 100 - - - - - - - - 28
HCC 11 26 23 58 6 16 - - - - 40
IRB Infra 110 58 - - 77 40 5 2 - - 191IVRCL 44 69 - - - - 20 31 - - 64
JP Assoc. 32 30 31 29 - - - - 44 41 108
Punj Lloyd 96 100 - - - - - - - - 96
NCC 53 65 2 2 8 10 - - 18 22 82
Sadbhav 87 54 - - 73 46 - - - - 161
Simplex In. 306 100 - - - - - - - - 306
Patel Engg 61 43 47 33 16 11 - - 19 14 143
Madhucon 59 55 2 2 33 31 - - 12 12 106
L&T 1,508 77 - - - - 438 23 - - 1,946
ITNL 90 35 - - 143 55 - - 25 10 259
Source: Company, Angel Research
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IVRCL Infrastructure | 1QFY2012 Result Update
August 16, 2011
Profit and loss (Standalone)
Y/E March (` cr) FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E
Gross sales 3,661 4,980 5,492 5,651 5,798 6,994
Less: Excise duty - - - - - -Net Sales 3,661 4,980 5,492 5,651 5,798 6,994
Other operating income - - - - - -
Total operating income 3,661 4,980 5,492 5,651 5,798 6,994
% chg 56.0 36.1 10.3 2.9 2.6 20.6
Total Expenditure 3,299 4,559 4,961 5,137 5,287 6,352
Net Raw Materials 1,247 1,658 1,915 1,997 1,913 2,287
Other Mfg costs 1,899 2,687 2,825 2,877 3,092 3,715
Personnel 153 214 221 262 282 350
Other - - - - - -
EBITDA 361.4 421.8 531.3 514.6 511.4 642.3
% chg 57.0 16.7 26.0 (3.1) (0.6) 25.6
(% of Net Sales) 9.9 8.5 9.7 9.1 8.8 9.2
Depreciation& Amortisation 32.8 47.3 54.3 75.8 93.2 106.4
EBIT 328.6 374.5 477.0 438.8 418.2 535.9
% chg 57.6 14.0 27.4 (8.0) (4.7) 28.1
(% of Net Sales) 9.0 7.5 8.7 7.8 7.2 7.7
Interest & other Charges 47.8 198.0 212.0 255.0 302.8 345.5
Other Income 4.5 97.3 63.9 49.0 53.9 59.3
(% of PBT) 1.6 35.6 19.4 21.0 31.8 23.7
Share in profit of Associates - - - - - -
Recurring PBT 285.3 273.8 328.8 232.8 169.3 249.7
% chg 54.1 (4.0) 20.1 (29.2) (27.3) 47.5
Extraordinary Expense/(Inc.) - - - - - -
PBT (reported) 285.3 273.8 328.8 232.8 169.3 249.7
Tax 74.9 47.8 117.5 74.7 54.9 81.0
(% of PBT) 26.2 17.5 35.7 32.1 32.4 32.4
PAT (reported) 210.5 226.0 211.3 158.1 114.4 168.7
Add: Share of earn. of asso - - - - - -
Less: Minority interest (MI) - - - - - -
Prior period items - - - - - -
PAT after MI (reported) 210.5 226.0 211.3 158.1 114.4 168.7ADJ. PAT 210.5 226.0 211.3 158.1 114.4 168.7
% chg 48.8 7.4 (6.5) (25.2) (27.6) 47.5
(% of Net Sales) 5.7 4.5 3.8 2.8 2.0 2.4
Basic EPS (`) 15.5 16.7 7.8 5.9 4.3 6.3
Fully Diluted EPS (̀ ) 7.9 8.5 7.9 5.9 4.3 6.3
% chg 48.8 7.4 (6.5) (25.2) (27.6) 47.5
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IVRCL Infrastructure | 1QFY2012 Result Update
August 16, 2011
Balance sheet (Standalone)
Y/E March (` cr) FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E
SOURCES OF FUNDSEquity Share Capital 26.7 26.7 53.4 53.4 53.4 53.4
Preference Capital - - - - - -
Reserves& Surplus 1,579 1,784 1,800 1,934 2,024 2,167
Shareholders’ Funds 1,606 1,811 1,853 1,987 2,077 2,221
Minority Interest - - - - - -
Total Loans 1,068 1,398 1,613 2,096 2,199 2,919
Deferred Tax Liability 10.3 11.7 12.5 8.6 8.6 8.6
Total Liabilities 2,684 3,220 3,478 4,092 4,285 5,148
APPLICATION OF FUNDS
Gross Block 418 662 750 935 1,060 1,210
Less: Acc. Depreciation 98.4 141.7 183.8 259.6 352.8 459.2
Net Block 319 521 566 676 707 751
Capital Work-in-Progress 54.1 19.6 35.3 42.1 44.1 46.8
Goodwill - - - - - -
Investments 341 389 614 635 685 735
Current Assets 3,058 4,014 4,952 5,703 5,861 7,373
Inventories 194.3 209.3 244.7 273.2 294.3 372.8
Debtors 834 1,343 2,196 2,181 2,011 2,481
Cash 177 101 164 143 173 173
Loans & Advances 922 1,199 661 953 1,174 1,416
Other 930 1,162 1,686 2,153 2,209 2,931
Current liabilities 913 1,523 2,437 2,713 2,749 3,481
Mobilisation Advance 175 200 251 251 264 277
Net Current Assets 1,970 2,291 2,264 2,739 2,848 3,616
Misc. Exp. not written off - - (1) - - -
Total Assets 2,684 3,220 3,478 4,092 4,285 5,148
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IVRCL Infrastructure | 1QFY2012 Result Update
August 16, 2011
Key ratios
Y/E March FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E
Valuation Ratio (x)
P/E (on FDEPS) 5.0 4.7 5.0 6.7 9.2 6.3P/CEPS 4.3 3.9 4.0 4.5 5.1 3.8
P/BV 0.7 0.6 0.6 0.5 0.5 0.5
Dividend yield (%) 3.5 3.5 3.8 4.0 4.3 4.6
EV/Sales 0.5 0.5 0.5 0.5 0.5 0.5
EV/EBITDA 5.4 5.6 4.7 5.8 6.0 5.9
EV / Total Assets 0.7 0.7 0.7 0.7 0.7 0.7
Per Share Data (`)EPS (Basic) 15.5 16.7 7.8 5.9 4.3 6.3
EPS (fully diluted) 7.9 8.5 7.9 5.9 4.3 6.3
Cash EPS 9.1 10.2 9.9 8.8 7.8 10.3
DPS 1.4 1.4 1.5 1.6 1.7 1.8
Book Value 60.1 67.8 69.4 74.4 77.8 83.2
Du Pont Analysis
EBIT margin 9.0 7.5 8.7 7.8 7.2 7.7
Tax retention ratio 73.8 82.5 64.3 67.9 67.6 67.6
Asset turnover (x) 1.8 1.8 1.7 1.6 1.4 1.5
ROIC (Post-tax) 11.6 11.0 9.5 8.2 7.0 8.0
Cost of Debt (Post Tax) 4.3 13.3 9.1 9.3 9.5 9.1
Leverage (x) 0.4 0.6 0.7 0.9 1.0 1.1
Operating ROE 14.6 9.5 9.9 7.2 4.5 6.7
Returns (%)
ROACE (Pre-tax) 14.4 12.7 14.2 11.6 10.0 11.4
Angel ROIC (Pre-tax) 15.8 13.3 14.8 12.1 10.4 11.8
ROE 14.4 13.2 11.5 8.2 5.6 7.9
Turnover ratios (x)
Asset Turnover (Gross Block) 10.8 9.2 7.8 6.7 5.8 6.2
Inventory / Sales (days) 14 14.8 15.1 16.7 17.9 17
Receivables (days) 81 80 118 141 132 117
Payables (days) 99 94 142 180 185 174
W.cap cycle (ex-cash) (days) 146 146 143 152 166 160
Solvency ratios (x)Net debt to equity 0.6 0.7 0.8 1.0 1.0 1.2
Net debt to EBITDA 2.5 3.1 2.7 3.8 4.0 4.3
Interest Coverage 6.9 1.9 2.2 1.7 1.4 1.6
8/6/2019 IVRCL Infrastructure
http://slidepdf.com/reader/full/ivrcl-infrastructure 12/12
IVRCL Infrastructure | 1QFY2012 Result Update
August 16 2011
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investmentdecision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such 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
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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 way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report .
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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 IVRCL
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.
Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to 15%) Sell (< -15%)