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 6: Road project portfolio<br />
Road portfolio scaling high<br />
GMR Infrastructure has a operational road portfolio of six operational BOT projects, three based on toll<br />
collection and three on annuity, aggregating Rs22.7bn. During FY11, the company achieved financial closure<br />
for three more road projects which are under construction, namely the Hyderabad- Vijayawada toll highway,<br />
the Chennai Outer Ring annuity road project and the Hungund-Hospet toll highway which are expected to<br />
achieve CoD (commercial date ) during FY13. This translates into a road length of nearly 421km operational<br />
and 310km under construction. The company has now shifted its focus from normal road projects to<br />
expressways, highways of longer stretch, mega projects, etc to leverage on its financial qualification and<br />
project execution capability. The company has already been short-listed for one mega expressway project<br />
worth Rs 60bn ($1.3bn).<br />
Road Projects GTAEPL GTTEPL GPEPL GACEPL GJEPL GUEPL<br />
Location Tuni-Anakapalli Tambaram-Tindivanam GMR Pochanpalli GMR Ambala-Chandigarh Faruknagar-jadcherla Tindivanam-Ulundurpet<br />
Stake (%) 61 61 100 100 100 100<br />
Length km 59 93 103 35 58 73<br />
Project cost (Rsmn) 2,950 3,620 7,043 4,993 5,155 8,817<br />
Scope of work 2 to 4 lanes 2 to 4 lanes 2 to 4 lanes 2 to 4 lanes 2 to 4 lanes 2 to 4 lanes<br />
CoD Dec-2004 Oct-2004 Mar-2009 Nov-2008 Feb-2009 Jul-2009<br />
Concession period 17.5 years from Jun-2002 17.5 years from Jun-2002 20 years from Sep-2006 20 years from May-2006 20 years from Aug-2006 20 years from Oct -2006<br />
Concession type Annuity Annuity Annuity Toll Toll Toll<br />
Under construction<br />
GHVEPL GCORRPL GHHEPL<br />
Location Hyderabad-Vijayawada Chennai outer ring road Hungund-Hospet<br />
Stake (%) 74 90 51<br />
Length (km) 181 29 99<br />
Project cost (Rsmn) 21,934 11,668 16509<br />
Scope of work 2 to 4/6 6 lanes& 2 service lanes 2 to 4 lanes<br />
CoD Jul-2012 Jul-2012 Dec-2012<br />
Concession period 25 years from Apr-2010 20 years from Jun-2010 19 years from Sep-2010<br />
Concession Type Toll Annuity Toll<br />
Source: Company, Nirmal Bang <strong>Institutional</strong> <strong>Equities</strong> Research<br />
We have considered a combined value of Rs11.7bn for six road projects in our SOTP valuation using the<br />
FCFE methodology. Three annuity road projects contribute Rs6bn and three toll road projects constitute<br />
Rs5.7bn, resulting in a valuation of Rs2.90 per share. We have not included the valuation of the projects that<br />
are under construction.<br />
Exhibit 7: Road project valuation<br />
Project name Route length (km) Value (Rsmn) Stake Value of GMR stake Rs/share<br />
Tambaram-Tindivanam 93 2,041 61% 1,245.1 0.3<br />
Tuni - Anakapalli 59 2,711 61% 1,694.2 0.4<br />
Adloor-Gunla-Pochanpalli 103 2,543 100% 2,543.1 0.7<br />
Ambala-Chandigarh 35 (175) 100% (174.9) (0.0)<br />
Faruknagar-Thondapalli-Jadcherla 58 4,206 100% 4,206.5 1.1<br />
Tindivanam-Ulundurpet 73 1,324 100% 1,324.1 0.3<br />
Total 421 - - 10,838.2 2.8<br />
Source: Company, Nirmal Bang <strong>Institutional</strong> <strong>Equities</strong> Research<br />
58 GMR Infrastructure