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