J Kumar Infraprojects Ltd. share price target

JKIL posted 8% YoY growth in Q1FY16 standalone sales to Rs3.6bn (6.3% lower than our expectations). The growth in the revenue for the quarter was due to higher contribution from projects in Maharashtra. EBITDA margin improved by 50bps YoY to 18.5% (50bps above our expectation), due to lower labour charges and other expenses (which as a percentage of net sales fell to 4.4%/5.5% vs 8.5%/7.2%, respectively in Q1FY15). Net profit grew 13% YoY to Rs259 mn (4.1% lower than our expectations), primarily due to better operating performance.

J.Kumar Infraprojects (JKIL), being a pure EPC player, primarily focuses on urban infrastructure with large presence in transportation segment (metro, flyovers, bridges and roads). The company will benefit from the government's emphasis on development of urban infrastructure, particularly Mumbai and Ahmedabad metro.

Topline of Rs 4.03bn (11% yoy) was below our estimate of Rs 4.9bn. The management attributedthemisstolowerrevenuesfromtheDMRC(DelhiMetroRailCorporation)project (Rs 2.2bn), which was captured in the JV and not the company's topline. EBITDA at Rs...

J Kumar Infraprojects (JKIL) delivered 4QFY15 subpar performance, with reported net profit 17.5% lower vs expectation. Execution miss was the key reason as order book growth was back ended.

JKIL posted 11.4% YoY decline in Q4FY15 standalone sales to Rs4bn (21.9% lower than our expectations). The dip in the revenue for the quarter was due to lower contribution from projects in Mumbai. However, EBITDA margin improved by 82bps YoY to 16.9% (137bps below our expectation), due to lower material cost (which as a percentage of net sales fell to 61.2% vs 62.3% in Q4FY14).

J.Kumar Infraprojects (JKIL), being a pure EPC player, primarily focuses on urban infrastructure with large presence in transportation segment (metro, flyovers, bridges and roads). The company will benefit from the government's emphasis on development of urban infrastructure, particularly Mumbai and Ahmedabad metro.

J. Kumar Infraprojects (JKIL) 3QFY15 revenues of Rs 3.0bn (up 11% YoY) were below our est. of Rs 3.4bn owing to loss of productive days caused by substantial rainfall in Northern India during the quarter.