Institutional Equities - Online Share Trading
Institutional Equities - Online Share Trading
Institutional Equities - Online Share Trading
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<strong>Institutional</strong> <strong>Equities</strong><br />
Exhibit 3: Project-wise toll revenue trend<br />
Net sales (Rsmn) FY09 FY10 FY11 FY12E FY13E FY14E<br />
Mumbai-Pune 1 2,882.6 3,062.6 3,215.7 3,916.7 4,112.6 4,318.2<br />
Bharuch-Surat - 662.8 1,396.5 1,586.3 1,796.4 2,016.7<br />
Pune -Solapur 127.1 133.0 147.5 185.4 198.4 219.0<br />
Pune -Nashik 164.0 180.7 228.6 250.1 288.0 314.9<br />
Patalganga (Kharpada) River Bridge 70.5 67.2 68.6 73.4 78.6 84.1<br />
Ahmednagar-Karmala-Temburni Road 113.5 134.6 154.3 165.1 202.2 224.9<br />
Thane-Ghodbunder Road 268.6 277.3 330.1 353.2 377.9 489.3<br />
Mohol-Kurul-Kamti-Mandrup Road 65.5 63.0 68.6 73.4 89.5 99.5<br />
Thane-Bhiwandi Bypass 586.6 567.2 564.1 638.4 683.0 730.6<br />
Surat-Dahisar 208.3 2,069.3 2,261.1 2,503.4 2,678.7 2,866.2<br />
IRDP Kolhapur - - - 302.5 529.1 566.1<br />
Amritsar-Pathankot - - - - - 1,081.0<br />
Jaipur Tonk Deoli - - - - 342.1 1,529.3<br />
Talegaon- Amravati - - - - - 711.3<br />
Tumkur- Chitudurga - - - 223.7 324.6 478.0<br />
Total toll collection 4,487 7,218 8,435 10,272 11,701 15,729<br />
YoY (%) - 61 17 22 14 34<br />
Source: Company, Nirmal Bang <strong>Institutional</strong> <strong>Equities</strong> Research<br />
Mumbai-Pune project<br />
The company secured Mumbai - Pune Expressway and NH-4 projects on BOT basis in August 2004 for a<br />
concession period of 15 years. The project involved four-laning and improvement of NH-4 (completed in<br />
September 2006), toll collection and operation and maintenance of Mumbai- Pune Expressway. The total cost<br />
of the project was Rs13bn, which included an upfront fee of Rs9.2bn to MSRDC (Maharashtra State Road<br />
Development Corporation). The project was funded through equity of Rs1.05bn, debt of Rs11.8bn and internal<br />
accruals of Rs 152mn. This is the most significant asset in the company’s portfolio, which contributes around<br />
35% of BOT revenue and 21% of BOT value.<br />
Exhibit 4: Mumbai-Pune Expressway details<br />
(Rsmn) (%)<br />
Project cost 12,920 CoE 14<br />
Debt 11,870 Interest rate (Fixed) 10.5<br />
Equity 1,050 Equity IRR 68<br />
Concession period 15Year Traffic growth 5<br />
Equity value 10,761 Toll rate hike 16% (every third year)<br />
Source: Company, Nirmal Bang <strong>Institutional</strong> <strong>Equities</strong> Research<br />
Exhibit 5: Mumbai-Pune Expressway- financials<br />
(Rsmn) FY09 FY10 FY11 FY12E FY13E FY14-20E<br />
Toll revenue 2,883 3,063 3,216 3,917 4,113 38,194<br />
YoY (%) 23.0 6.2 5.0 21.8 5.0 -<br />
EBITDA 2,332 2,551 2,618 3,208 3,368 31,301<br />
PAT 508 611 840 1,293 1,485 20,601<br />
Source: Company, Nirmal Bang <strong>Institutional</strong> <strong>Equities</strong> Research<br />
Bharuch-Surat project<br />
The company got this project in January 2007 to expand and improve NH-8 on BOT basis for a concession<br />
period of 15 years. The total project cost was Rs14.6bn, including an upfront fee of Rs5bn to NHAI. The<br />
project was funded through equity and internal accruals of Rs1.9bn and debt of Rs12.7bn. The project has<br />
started tolling from 15 September 2009, contributing around 12% of BOT revenue and 11% of BOT asset<br />
value.<br />
29 IRB
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