J Kumar Infraprojects Ltd. share price target

Maintain BUY with a TP of Rs 385/sh (15x Sep-19E EPS). JKIL reported soft performance in 2QFY18, with APAT coming in 12.1% below our estimates. The mining ban and quarrying issues have been resolved, and shall lead to a strong execution pick-up from 2HFY18E. The balance sheet remained stable, with net debt at Rs 4.2bn and net D/E at 0.29x.

J Kumar Infraprojects (JKIL) posted revenue of Rs.374 cr in Q1FY18 vs Rs.403 cr in Q1FY17 on account of shortage of raw material for Mumbai projects due to mining ban on the quarries in Turbhe.

JKILs 4QFY17 net revenues/EBIDTA/APAT, came in ~11/17.1/26.3% below our estimates respectively. Delay in shifting of utilities in JNPT/Metro projects impacted execution. The balance sheet remained stable, with net debt at Rs 3.5bn and net D/E at 0.25x vs Rs 4.7bn and 0.34x during 3QFY17.

JKILs 3QFY17 APAT of Rs 268mn was 9.1% ahead of our estimate, led by 21.1% YoY revenue growth (4% ahead of our estimates).The balance sheet remains stable, with net debt at Rs 4.7bn and net D/E stood at 0.34x vs Rs 4.8bn and 0.36x during 2QFY17. Debtors have increased by Rs 1.2bn on account of the Metro project (Rs 1,120mn) and the same have lessened in 4QFY17E.

After growing by 10.4% in Q1, JKIL's contract revenue contracted by 5.7% in Q2 - income from operations nosedived 6.4%, the weakest showing in six quarters largely due to heavy monsoons and nascent stage of some large metro orders. Its transportation business made up for much of the dilly dallying of its civil business - Rs 8.66 crs ($1.3m) in Q2 from Rs 69.58 crs ($10.2m) in Q1- as it posted 27.5% growth in revenues in H1 - revenue share 84.3% from 67.9%. Civil business reported revenues of Rs 78.24 crs ($11.5m) in H1, down 58.2% from the same period a year ago; Rs 8.66 crs...

J Kumar Infraprojects (JKIL) in its 2QFY17 posted revenue of Rs.310 cr (de-growth of 6.4% on YoY), lower than our estimates on account of slow down in the execution of JNPT order and change in project mix in favour of new projects. The EBITDA margin sustained at healthy level of 18.2%. The net profi..

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J Kumar Q2FY17 performance was below our expectations on account of muted execution during the monsoon season. Revenue declined 6% YoY to Rs 3.09bn (vs. our estimate of +8% YoY) while EBITDA margin remained flat YoY at 18.2%. Thus, EBITDA declined by 6% YoY to Rs 563mn. Net profit increased 5.3% YoY to Rs 230 mn led by higher other income. Management states that the execution has been impacted in Q2FY17 because of monsoon and some unexpected delays in Mumbai metro lines 2 & 7. We have revised downwards our earnings estimates for FY17E/18E by 16%/20%, factoring in delay in execution and reduction in OPM.

JKIL 2QFY17 RPAT of Rs 230mn was in-line with our estimates, on account of lower taxes (-25% YoY) and higher other income ( 89% YoY). Net revenues were 13% below estimates owing to heavy monsoons and slower than expected ramp-up in JNPT road project.