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 18: Operating cash flow trend<br />
Exhibit 17: Projects likely to be awarded<br />
Project cost break up (Rsbn) RFP stage RFQ stage<br />
NHAI projects - Phase III 17.4 27.3<br />
Phase IV,IVA & IV B 32.5 135.4<br />
Phase V 51.3 28.4<br />
Phase VI - 11.3<br />
Phase VII - 2.7<br />
Nhai projects - BOT (annuity) - 7<br />
NHAI projects -OMT - 5.4<br />
NE-II - 26.9<br />
Other clients 18.8 51.7<br />
Total 120 296.1<br />
Source: NHAI, Company, Nirmal Bang <strong>Institutional</strong> <strong>Equities</strong> Research<br />
Strong operating cash flow for financing equity commitment<br />
IRB Infrastructure has a portfolio of 17 projects (11 projects are operational and 6 under implementation) with<br />
a daily gross toll collection of Rs30mn, which is growing at around 14-16% per annum. On the other hand, for<br />
the existing projects, including the recently awarded ultra mega project, the equity commitment could be in the<br />
range of Rs11bn over FY12-13, which could be funded through internal accruals. Thus, existing cash flows<br />
are sufficient to meet equity funding requirement of its projects without any dilution.<br />
Y/E March (mn) FY08 FY09 FY10 FY11 FY12E FY13E<br />
EBIT 3,623 3,526 6,661 9,331 9,678 12,166<br />
(Inc.)/Dec in working capital (1,586) (1,421) 1,849 1,314 (957) (610)<br />
Cash flow from operations 2,038 2,105 8,510 10,645 8,721 11,556<br />
Other income 1,435 1,148 2,009 2,918 761 837<br />
Depreciation 1,016 1,144 1,819 2,254 3,865 5,081<br />
Interest paid (-) (1,958) (1,377) (2,494) (3,572) (4,183) (4,862)<br />
Tax paid (-) (412) (405) (812) (1,463) (1,587) (2,115)<br />
Dividends paid (-) (15) (223) (429) (753)<br />
Net cash from operations 2,104 2,393 8,604 10,027 7,577 10,497<br />
Source: NHAI, Company, Nirmal Bang <strong>Institutional</strong> <strong>Equities</strong> Research<br />
However, on completion of existing projects, its debt/equity ratio would increase to 1.9x in FY13 (excluding the<br />
debt of the recently won Ahmedabad-Vadodara mega project). If we include the debt of the mega project, the<br />
debt-equity ratio would increase to 2.3x in FY16, without considering the incremental project. This would<br />
restrain growth and may lead to equity dilution.<br />
Exhibit 19: Debt/equity ratio<br />
(x)<br />
2.50<br />
2.00<br />
1.90 1.93<br />
1.86<br />
1.50<br />
1.44 1.43<br />
1.00<br />
0.50<br />
-<br />
FY09 FY10 FY11 FY12E FY13E<br />
Source: Company, Nirmal Bang <strong>Institutional</strong> <strong>Equities</strong> Research<br />
33 IRB