IRB Infrastructure Developer Ltd: Breaks Out

IRB Infrastructure Developers Ltd.'s second-quarter net profit rose more than four-fold to Rs.51.01 crore from the Rs.10.65 crore for the quarter ended September 30 last year.

Its quarterly net Income surged by 239 % to Rs.450.75 crore from the Rs.133.16 crore in the year-ago quarter, while other income stood at Rs.55.09 crore, compared with Rs.23.08 crore in Q2FY12.

For the half-year, the company posted a net profit of Rs.88.34 crore, higher by 210 % the Rs.28.47 crore for the comparable period last year.

Its net Income for the six months grew by 244 % to Rs.1,072.95 crore from the Rs.311.56 crore in the corresponding period a year-ago, while other income stood at Rs.76.40 crore, compared with Rs.44.19 crore for April-Sept 2011 period.

Total consolidated income for Q2 of FY13 has gone up to Rs.878 Crores from Rs.766 Crores in Q2 of FY12 registering growth of 15%. Substantial increase in total income is due to increase in momentum in project execution during the quarter. Construction revenue in Q2 of FY13 increased to Rs.597 Crores up by 19% from Rs.503 Crores for Q2 of FY12. Toll revenue Q2 of FY13 increased to Rs.248 Crores by 6% from Rs.233 Crores for Q2 of FY12.

EBITDA for Q2 of FY13 has gone up to Rs. 414 Crores from Rs. 352 Crores in Q2 of FY12 registering a growth of 18%. Interest cost for Q2 of FY13 has also gone up to Rs. 148 Crores from Rs. 140 Crores in Q2 of FY12 resulting an increase of 6%.

The consolidated, PBT for Q2 of FY13 has gone up to Rs. 155 Crores from Rs. 148 Crores in Q2 of FY12 registering growth of 5%. PAT for Q2 of FY13 has gone up to Rs. 119 Crores from Rs. 111 Crores in Q2 of FY12 registering growth of 7%. Post minority interest the PAT for Q2 of FY13 has gone up to rupees at Rs. 121 Crores from Rs. 110 Crores registering a growth of 10%.

The consolidated results would have been much better if the deprecation component had not increased by such a huge amount. Depreciation for Q2 of FY13 has gone up to Rs.111 Crores from Rs.63 Crores of Q2 of FY12 resulting an increase of 76% mainly due to commencement of amortization of Surat-Dahisar project.

Break-up of Revenues: Other income for construction division for Q2FY13 was Rs.24 Cr (Rs.24 Cr) and for BOT segment it was Rs.9 Crores ( Rs.6 Cr). Total is Rs. 33 Crores.

The toll freight increase on Bharuch-Surat was ~7.5 % and for Surat-Dahisar section it was 8.94% for Q2FY13.

Projects: As of 30 th October, 2012, the company completed, 61% of Amritsar-Pathankot project and  47% of Tumkur-Chitradurga project.  IRB Infrastructure Developer Ltd's Talegaon-Amravati has contributed roughly Rs.80 Crores. Jaipur-Deoli close to Rs.165 Crores. Amritsar-Pathankot close to Rs.205 Crores. Tumkur-Chitradurga close to Rs.125 Crores and others has contributed close to Rs.20 Crores.

Moreover, Kundapur SPV has been incorporated and it is awaiting the signing of the concession agreement with NHAI. So once the agreement is signed then only it will move with regard to the financial closure. The company has already started preliminarily activities in that regard.

Concern: As of 30th October, 2012, the consolidated gross debt is close to Rs.7600 crores and net debt on consolidated basis is close to Rs.6200 crores.

I maintain a buy on the scrip at the CMP of Rs.130, for a price target of Rs.137--145. I feel the 1st target would be reached  by this week itself. The sentiments turned bullish, particularly in Realty, Metal and Banking sector stocks, after US lawmakers reached an agreement to avoid fiscal cliff of wide-reaching tax hikes and deep spending cuts in the world's biggest economy. 
Note: This report was sent to the Paid Groups and to those who are trading through my recommended Brokerage House, today  morning, i.e. 2 nd January, 2012, before the market opening. You can also get these  kinds of reprots and be ahead of others. Join my Paid Service or my recommended brokerage house.