IRB Infrastructure Developers Ltd. share price target

Maintain BUY with an increased SOTP of Rs 328/sh. IRBs 4QFY18 Revenue, EBIDTA and PAT were 8.1/18.6/24.9% ahead of our estimates. BOT revenue (ex 7 BOTs which got transferred to IRB InvIT) grew 17.2% YoY after excluding new projects post 4QFY17.

FY18 was a transformational year for IRB on many counts with the group completing 1st year of InvIT launch, making its foray into the growing HAM space and the overhang of the CBI case getting resolved. IRB shares have seen strong performance and are up 23% since we initiated on the stock on 28th March 2018 outperforming the NIFTY index by 17%. The Company has reported robust FY18 results with a ~5% beat at the adj. EPS due to lower than expected interest expenses as the credit rating improved by two notches. IRB's order book of INR 151 bn as of 31st March 2018 should provide sufficient revenue visibility over the next three years. The management has set an...

IRB Infrastructure's (IRB) topline de-grew 15.0% YoY to | 1382.2 crore and was marginally below our estimate of | 1422.8 crore on account of a sharp drop in toll revenues With seven BOT assets transferred to IRB InVIT, toll revenues declined 16.2% YoY to | 493.5 crore (our estimate: | 441.7 crore)....

IRB's revenue declined 15% YoY to INR13.8b, below our estimate of INR16.4b, due to weaker-than-estimated BoT revenue. Operating profit stood at INR6.6b (-19.0% YoY), below our estimate of INR8.3b. Operating margin shrunk 280bp YoY to47.7% due to negative operating leverage and weak margins in the EPC segment (-180bp YoY to 26.8%). Adj. profit of INR2.4b came in below our estimate of INR2.7b, led by the revenue miss.

In its notice to the stock exchange, IRB Infrastructure Ltd has informed that Hon'ble CBI Judge at Pune has discharged the charge sheet filed against Mr. Virendra D Mhaiskar, the company-M/s AIIPL and Mr Deepak D Gadgil. It was in pursuant to its notice on Dec. 6, 2017 wherein the company had filed an Application for Discharge. Honorable judge in his order has observed that no case is made out even to frame the charges under any of the sections alleged by CBI. Hence, all the parties were discharged and their application for discharge has been allowed. We believe that post the CBI clearance, the negative overhang on the stock has been...

Maintain BUY with SOTP of Rs 274/sh. IRBs 3QFY18 Revenue, EBIDTA and PAT were 1.9/5.4/21.7% ahead of our estimates. BOT revenue (ex 7 BOTs which got transferred to IRB InvIT) grew 18.8% YoY after adjusting for demonit toll stoppage of 23 days and excluding new projects post 3QFY17.

ICICI Securities Ltd | Retail Equity Research IRB Infrastructure's (IRB) topline de-grew 8.1% YoY to | 1296.2 crore and was below our estimate of | 1335.5 crore on account of sharp drop in toll revenues. With 7 BOT assets transferred to InVIT, the toll revenues declined 24.2% YoY to | 459.7 crore (our estimate: | 410.5...

IRB's revenue declined 8% YoY to INR11.2b, below our estimate of INR13.7b, due to weaker-than-estimated EPC revenue. Operating profit stood at INR6.7b (-9.0% YoY), below our estimate of INR7.1b. Operating margin shrunk 70bpYoY to 52% due to an adverse revenue mix (higher contribution from the low-margin construction business). Adj. profit of INR2.5b was meaningfully above our estimate of INR1.6b, led by lower-than-estimated interest cost and higher-than-estimated other income

wins improves its book bill to ratio to 2.5x its Trailing Twelve Month (TTM) construction revenue from 1.85x at the end of Q3FY2018. These order wins come at a stitch in time as its book to bill ratio was at a three year's low. This in turn had cast a doubt on its construction segment revenue growth outlook. IRB now stands successful in reviving growth in its...

IRB Infrastructure's (IRB) topline de-grew 13.0% YoY to | 1122.7 crore (our estimate: | 1336.7 crore) due to sharp drop in toll revenues as seven BOT assets were transferred to InVIT EBITDA margins declined sharply by 395 bps YoY to 51.0% (our estimate: 47.0%) due to higher proportion of revenues from low margin construction division (66.8% in Q2FY18 vs 56.5% in Q2FY17) PAT grew robustly by 65.0% YoY to | 234.7 crore (our estimate: | 195.8 crore) due to higher other income (| 146.5 crore in Q2FY18...