Sadbhav Infrastructure ended FY17 with PAT losses of INR 3.5 bn, down from loss of INR 4.0 bn reported in FY16. However, adjusting for non-cash items (MMR provision, depreciation and non-cash financial itms), the cash profit stood at INR 1.2 bn; implying positive operating leverage as the road portfolio is getting in steady state phase. We estimate the gross toll + annuity collection to grow 2.5x to INR 21.6 bn by FY20 from INR 8.5 bn in FY17 as the new projects become operational and the existing ones' stabilize. The standalone debt stands at INR 12.7 bn, however it's not a major concern as the...