itnl, 5th february, 2013
TRANSCRIPT
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7/29/2019 ITNL, 5th February, 2013
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Please refer to important disclosures at the end of this report 1
Op. profit 450 321 40.2 453 (0.6)
Source: Company, Angel Research
For 3QFY2013, on a consolidated basis, IL&FS Transportation Networks (ITNL)
posted a strong performance on the top-line and EBITDAM fronts. The robust
performance was on account of higher-than-expected revenue growth, led by
E&C revenue. However, higher interest cost and tax provision led to a subdued
growth at the bottom-line level. With the company being a market leader in its
segment, having a robust order book and diversified portfolio, we believe it is
well placed to leverage on the upcoming opportunities in the road sector.
: ITNL reported a revenue of `1,764cr in
3QFY2013 (`1,268cr in 3QFY2012), registering a yoy growth of 39.1%, which is
12% higher than our estimate. This is mainly on account of increased
contribution from the E&C segment. The EBITDA margin declined sequentially by
754bp to 25.5% in 3QFY2013 (against our estimate of 28%) vs 25.3% in
3QFY2012. ITNLs interest cost grew by 53.3% yoy to`284cr for the quarter and
was marginally above our estimate of `280cr. On the earnings front, ITNL
reported a subdued growth of 18.5% yoy to`104cr (our estimate was of`108cr)
on back of higher interest cost and tax provision (40%) during the quarter.
: Going forward, we expect ITNL to report revenue CAGR
of 12% over FY2012-14. This would be on the back of an order book of
`9,795.5cr (excluding L1 orders of `2,344cr), indicating order book-to-sales
ratio of 1.5x trailing revenues. The stock trades at a P/BV of 1.2x and 1.1x for
FY2013E and FY2014E, respectively.
% chg 68.1 38.5 17.1 7.5
% chg 25.8 14.6 2.6 10.5
EBITDA (%) 28.5 26.1 27.2 27.4
P/E (x) 9.1 7.9 7.7 7.0
P/BV (x) 1.7 1.4 1.2 1.1
RoE (%) 21.8 19.6 17.0 16.3
RoCE (%) 16.4 12.9 10.8 9.7
EV/Sales (x) 2.2 2.5 2.7 2.8
EV/EBITDA (x) 7.7 9.5 10.0 10.1
OB/sales(x) 3.3 2.8 2.3 2.6
Order inflow 3,036 7,142 5,185 5,423
%chg 12.1 135.3 (27.4) 4.6
Source: Company, Angel Research
CMP `203
Target Price `225
Investment Period 12 Months
Stock Info
Sector
Net debt 12,500
Bloomberg Code
Shareholding Pattern (%)
Promoters 72.5
MF / Banks / Indian Fls 3.1FII / NRIs / OCBs 3.7
Indian Public / Others 20.8
Abs. (%) 3m 1yr 3yr
Sensex 5.3 12.2 25.1
#ITNL 6.7 (0.3) #
Reuters Code ILFT.BO
ILFT@IN
BSE Sensex 19,751
Nifty 5,987
Avg. Daily Volume 23,712
Face Value (`) 10
Beta 0.9
52 Week High / Low 227/157
Infrastructure
Market Cap (`cr) 3,940
#Note: since listing in March 2010
022-39357800 Ext: 6842
Performance Highlights
3QFY2013 Result Update | Infrastructure
February 4, 2013
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ITNL | 3QFY2013 Result Update
February 4, 2013 2
Exhibit 1:3QFY2013 performance (Consolidated)
OPM (%) 25.5 25.3 21bp 33.0 (754) bp 29.0 27.9 115bp
Interest 284 185 53.3 280 1.4 817 497 64.2
Depreciation 22 17 29.7 18 22.9 64 49 30.6
Non Operating Income 32 30 8.0 42 (24.1) 109 78 39.4
Nonrecurring items/Dividend from SPV's - - - - - - - -
Tax 65 47 79 (17.6) 236 189 25.1
Share of Profits/ (Losses) of Asso. 0 (1) - 3 - 1 (4) -
Share of Profits/ (Losses) of MI 6 12 - 5 - 21 28 -
PAT (%) 5.9 6.9 (102) bp 8.5 (256) bp 7.2 8.8 (159) bp
Source: Company, Angel Research
Exhibit 2:Actual vs Estimates
Net sales 1,575 1,764 12.0
EBITDA 441 450 2.0
Interest 280 284 1.5Tax 57 65 14.8
PAT 108 104 (3.2)
Source: Company, Angel Research
Stellar top-line performance due to increased E&C revenue
ITNL reported a revenue of `1,764cr in 3QFY2013 (`1,268cr in 3QFY2012),
registering a growth of 39.1% yoy, which is 12% higher than our estimate. This
was mainly on account of increased contribution from the E&C segment. The E&C
division reported a revenue growth of 36.9% yoy to `1,239cr while the toll and
annuity income grew by 50.1% yoy to `223cr. The toll and annuity income hasincreased due to (a) higher traffic on toll road projects, (b) inclusion of toll
revenues of YuHe project from 1QFY2013 and (c) increase in finance income
recognized from annuity projects. During the quarter, the revenue from Elsamex
came in at`231cr, an increase of 46.9% yoy.
ITNLs standalone revenue, representing C&EPC revenue
and fee income, witnessed a strong growth of 68% yoy to `951cr in 3QFY2013.
C&EPC revenue contributed majorly (`840.6cr) to the standalone revenue, owing
to ramp-up in execution of under-construction projects; and the balance was
contributed by fee income from Sikar-Bikaner project, Baleshwar-Kharagpur and
Kiratpur-Ner-Chowk project; and usual supervision fee from other projects underconstruction.
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ITNL | 3QFY2013 Result Update
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Exhibit 3:Strong execution growth in 3QFY2013
Source: Company, Angel Research
Exhibit 4:Construction income forms a major share (%)
Source: Company, Angel Research
Operational BOT projects update
During 3QFY2013, ITNLs toll collection from the Ahmedabad-Mehsana, RIDCOR
(PH. 1), Rajkot-Jetpur, Beawer-Gomti and Noida Toll Bridge grew by 5.6%, 29.8%,
23.9%, 4.2% and 16.6% on a yoy basis, respectively. However, the Vadodra-Halol
project reported a decline of 9.2% yoy in toll revenues.
Exhibit 5:Subdued growth in toll income across operational projects ( cr)
Abad Mehsana 0.17 0.16 5.6 0.17 0.0
Vadodra Halol 0.12 0.13 (9.2) 0.12 (4.8)
NoidaToll Bridge 0.25 0.22 16.6 0.23 9.1
RIDCOR (Ph 1) 0.57 0.44 29.8 0.53 6.2
Rajkot to Jetpur 0.14 0.11 23.9 0.11 27.4
Beawer Gomti# 0.05 0.05 4.2 0.05 11.1
Source: Company, Angel Research, Note: #Operational from August 25, 2010
Despite strong top-line performance; higher interest dents PAT
growth
The EBITDA margin declined sequentially by 754bp to 25.5% in 3QFY2013 vs
25.3% in 3QFY2012 and was below our estimate of 28%. This was mainly onaccount of (a) lower share of finance income, (b) higher revenue contribution from
the relatively low-margin E&C segment and (c) high input cost during the quarter.
The companys interest cost grew by 53.3% yoy to `284cr in 3QFY2013 and was
marginally above our estimate of `280cr. On the earnings front, ITNL reported
subdued growth of 18.5% yoy to `104cr (our estimate was of`108cr) on back of
higher interest cost and tax provision (40%) during the quarter.
: On a standalone basis, EBITDA margin for the quarter
stood at 14.1% in 3QFY2013 (18.6 in 3QFY2012), a decline of 455bp yoy owing
to lower share in revenues from fee income. On the earnings front, ITNL reported
a muted earnings growth of 5.8% yoy to`46.2cr on the back of lower EBIDTAMand high interest cost.
1,
093
1,
256
1,
268
1,
989
1,
580
1,
370
1,
764
(34.0)
14.9 1.0
56.8
(20.6)
(13.2)
28.8
(40)
(30)
(20)
(10)
0
10
20
3040
50
60
70
-
500
1,000
1,500
2,000
2,500
1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13
Net Sales (` cr) Growth (qoq %, RHS)
69 71 71 72 68 67 70
15 15 12 13
13 1413
11 11 12 9 13 15 13
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13
Construction Elsamex Toll/Annuity Other
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ITNL | 3QFY2013 Result Update
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Exhibit 6:Fall in EBITDAM higher than expectations
Source: Company, Angel Research
Exhibit 7:Higher interest cost dents PAT growth
Source: Company, Angel Research
Order bookITNLs order book stood at `9,795.5cr (excluding L1 orders of ~`2,344.4cr), a
decline of 3% yoy, thus converting into an order book-to-sales ratio of 1.5x trailing
revenues.
Exhibit 8:State-wise order book break-up (%)
Source: Company, Angel Research
Exhibit 9:Client-wise order book break-up (%)
Source: Company, Angel Research
Equity investment of ~`1,366cr over next 3-4 years
The company has already invested ~`3,177cr in its under-development BOT
portfolio till 3QFY2013 and would require an incremental equity investment of~`1,366cr over the next three to four years. We believe it would be able to fund its
equity requirements through internal accruals from operational projects and
construction business.
331
357
321
457
466
453
450
30.328.4
25.3
23.0 29.5 33.0 25.5
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
-
50
100
150
200
250
300
350
400
450
500
1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13
EBITDA (` cr, LHS) EBITDAM (%, RHS)
116
116
88
177
122
116
104
10.6
9.3
6.9
8.9
7.7
8.5
5.9
-
2.0
4.0
6.0
8.0
10.0
12.0
-
20
40
60
80
100
120
140
160
180
200
1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13
PAT (` cr, LHS) PATM (%, RHS)
18
15
16
314
3
1
20
4
35 Himachal Pradesh
Haryana
J&K
Jharkhand
Kerala
Maharashtra
Madhya Pradesh
Meghalaya
Rajasthan
Uttar Pradesh
Andhra Pradesh
Karnataka
48%
28%
25%
NHAI Non NH AI roads Non road projects
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ITNL | 3QFY2013 Result Update
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Outlook and valuation
ITNLs outstanding order book currently stands at `9795.5cr (1.5x trailing
revenues), which lends decent revenue visibility over the next few years. The
company currently has L1 status in projects worth`2,344.4cr. During the quarter,
ITNLs debt to equity has also increased to 1.61x from 1.40x, and to 3.80x from
3.70x in FY2012 on a standalone and consolidated basis, respectively. We have
used sum-of-the-parts (SOTP) valuation method to arrive at the target price for
ITNL. We value the construction business at a P/E of 5x FY2014E earnings, and the
BOT projects on a DCF basis at a CoE of 14%. Also, we have valued the
international business, Elsamex, and three surface transport projects (other than
road projects) using P/BV multiple.
Exhibit 10:SOTP Valuation
ITNL's construction business Construction 289 5 1,446 74 33.1 P/E of 5x
Noida Toll Bridge Toll 545 25% 136 7 3.1 NPV at CoE of 14%
Gujarat Toll Roads Toll 765 84% 640 33 14.7 NPV at CoE of 14%
West Gujarat E'way Toll 132 100% 132 7 3.0 NPV at CoE of 14%
RIDCOR Phase-I & II Toll 981 50% 490 25 11.2 NPV at CoE of 14%
Beawar-Gomti Toll 29 100% 29 1 0.7 NPV at CoE of 14%
Pune Sholapur Toll 388 100% 388 20 8.9 NPV at CoE of 14%
Moradabad Bareilly Toll 700 100% 700 36 16.0 NPV at CoE of 14%
Chandrapur Warora Toll 220 35% 77 4 1.8 NPV at CoE of 14%
Narkatpally Addanki Toll 187 50% 94 5 2.1 NPV at CoE of 14%
Kiratpur Ner-Chowk Toll 771 100% 771 40 17.7 NPV at CoE of 14%
Sikar Bikaner Toll 162 100% 162 8 3.7 NPV at CoE of 14%
Baleshwar Kharagpur Toll 106 100% 106 5 2.4 NPV at CoE of 14%
North Karnataka E'way Annuity 140 94% 131 7 3.0 NPV at CoE of 14%
Thiruvananthapuram Phase - I & II Annuity 108 50% 54 3 1.2 NPV at CoE of 14%
AP E'way Annuity 11 100% 11 1 0.2 NPV at CoE of 14%
Hyderabad Ring Road Annuity 135 26% 35 2 0.8 NPV at CoE of 14%
East Hyderabad E'way Annuity 113 74% 84 4 1.9 NPV at CoE of 14%
Hazaribagh Ranchi E'way Annuity 104 74% 77 4 1.8 NPV at CoE of 14%
Jharkhand roads Ph-I & II Annuity 562 100% 562 29 12.9 NPV at CoE of 14%
Chenani Nashri Annuity 336 100% 336 17 7.7 NPV at CoE of 14%
Jorabat Shillong Annuity 89 50% 45 2 1.0 NPV at CoE of 14%
Elsamax 270 1.0 270 14 6.2 Valued at 1x its investment
Bus transport project 16 1.0 16 1 0.4 Valued at 1x its investment
Metro Rail Gurgaon 326 59% 194 10 4.4 Valued at 1x its investment
MP Entry Point project 203 51% 103 5 2.4 Valued at 1x its investment
Net debt (2,722) (140) (62.4) Standalone net debt
Source: Company, Angel Research
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ITNL | 3QFY2013 Result Update
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Exhibit 11:Angel EPS forecast vs consensus
FY2013E 26.3 27.8 (5.6)
FY2014E 29.0 29.7 (2.1)Source: Company, Angel Research
Exhibit 12:Key assumptions BOT segment
NKEL NHAI Annuity 472 75 19 94 600 101 - 499 564 Jun-02 11.0
Thiruvan. Phase 1 State Annuity 51 50 0 50 110 30 - 80 55 Jul-07 9.5
Andhra Pradesh Exp NHAI Annuity 328 49 51 100 863 34 - 829 863 Sep-06 8.6
Gujarat Toll Roads State Toll 523 84 0 84 466 232 - 234 390 Jun-00 10.0 5 5
Noida Toll Bridge State Toll 60 25 0 25 589 331 - 258 147 Dec-98 11.0
RIDCOR, Phase 1 State Toll 2106 0 50 50 1,618 100 215 1,303 809 Jan-06 11.0 #8 5
West Gujarat Exp NHAI Toll 389 49 51 100 276 40 18 218 276 Sep-05 12.8 5 5
East Hyderabad Exp. State Annuity 173 74 0 74 428 29 78 321 317 Dec-07 12.0
Beawar-Gomti State Toll 248 100 0 100 355 40 76 240 355 Oct-09 10.0 5 5
-
Jharkhand Phase 1 State Annuity 466 100 0 100 1,408 170 - 1,238 1,408 Mar-10 10.5
Thiruvan. Phase 2 State Annuity 107 50 0 50 263 125 - 138 132 Jun-09 11.0
Hazaribaug Ranchi NHAI Annuity 319 74 0 74 869 131 - 738 643 Aug-10 10.0
RIDCOR, Phase 2 State Toll 698 0 50 50 750 186 46 518 375 - 11.0 #8 5
Warora Chandrapur State Toll 275 35 0 35 700 176 176 348 245 Jan-11 11.0 5 5
Pune Sholapur NHAI Toll 571 100 0 100 1,403 160 285 958 1,403 Sep-11 11.0 8 8
Moradabad Bareilly NHAI Toll 522 100 0 100 1,984 222 443 1,319 1,984 Dec-10 11.0 5 5
Narketpalli Addanki State Toll 888 50 0 50 1,670 236 467 967 835 Jan-11 11.0 5 5
Jorbat Shillong NHAI Annuity 262 50 0 50 810 162 - 648 405 Jan-11 11.0
Chenani Nashri NHAI Annuity 38 100 0 100 3,740 748 - 2,992 3,740 May-11 10.0
Kiratpur Ner Chowk NHAI Toll 327 100 0 100 2,291 501 135 1,656 2,291 - 11.8
Sikar Bikaner NHAI Toll 540 100 0 100 803 167 247 389 803 - 11.8 5 5
Kharagpur Baleshwar NHAI Toll 477 100 0 100 654 196 - 458 196 - 11.0 5 5
Source: Company, Angel Research; #Note: Once in two years
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ITNL | 3QFY2013 Result Update
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Investment arguments
Market leader in the growing BOT space
ITNL is a surface transport player, with an established track record of successfullybidding, developing and operating road BOT projects on a commercial basis.
ITNL was one of the first movers in the road development segment. The company
bagged the Noida toll bridge project in 1998. Since then, it has come a long way
and has a sizeable portfolio currently. The company has one of the largest
portfolios in the country, encompassing ~12,000 lane kms. ITNLs experience and
technical capability give it an edge over competition to bid for new projects.
Pan-India presence
ITNL has 23 road projects spread across the country. The company has decent
exposure to state highways, which differentiates it from peers. The one major
advantage that state highway projects enjoy over national highways is that they
can be bundled with land, making the projects viable. Such diversification prevents
fluctuation in the companys revenue stream due to limited exposure to any one
region or project.
Hedged revenue stream
We believe ITNL has a hedged road BOT asset portfolio currently, as it is
bifurcated into toll and annuity projects in revenue terms, thereby reducing its
dependence on traffic-related revenue inflow. Going ahead as well, we expect the
company to continue to have balanced revenue, considering its projects in the
pipeline.
ITNL in a sweet spot
We believe ITNL, being a market leader, is well poised to leverage on the growing
opportunities in the BOT space, owing to 1) strong parentage (belongs to the IL&FS
Group); 2) experienced Management at the helm of affairs (rich experience of over
22 years in the infrastructure business); and 3) unique business model (present
across the value chain).
Key concerns
BOT projects are inherently high-leverage projects. Hence, ITNLs
business model is vulnerable to interest rate fluctuations and any hike in interest
rates could increase the companys interest costs.
Road players are facing pressures from the recent price inflation
in commodities such as cement and steel, which directly affect margins.
Execution delays: ITNL has faced delays in the execution of few projects
as the appointment date was not received by the NHAI due to pending
environmental clearances.
Awarding from NHAI: Any slowdown in award activity from NHAI could affectroad-focused players such as ITNL.
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Exhibit 13:Recommendation summary
ABL 216 268 Buy 1,500 1,866 2,131 19.2 22.6 24.3 27.0 9.3 9.6 8.9 8.0 2.9CCCL 15 - Neutral 2,048 2,262 2,522 11.0 (0.5) 1.5 2.7 - - 9.8 5.5 2.2
IRB Infra 118 164 Buy 3,133 3,843 4,212 15.9 14.9 16.8 17.8 9.3 7.9 7.0 6.6 2.9
IVRCL 32 32 Neutral 6,178 4,249 6,897 5.7 0.6 0.3 3.3 136.8 55.1 105.2 9.8 5.0
JP Assoc. 80 100 Buy 12,853 13,842 15,863 11.1 4.8 3.7 4.6 (2.8) 16.5 21.8 17.5 -
L&T 1,533 1,788 Buy 53,171 60,666 69,525 14.3 64.3 63.2 75.1 8.1 23.9 24.3 20.4 2.7
NCC 45 45 Neutral 5,250 5,947 6,569 11.9 1.4 3.1 4.1 71.4 32.5 14.6 11.1 3.4
Punj Lloyd 52 - Neutral 10,557 11,892 13,116 11.5 2.8 1.8 3.2 7.8 18.6 28.5 16.0 2.3
Sadbhav 120 168 Buy 2,676 2,344 2,804 2.4 9.3 7.2 8.7 (3.5) 12.8 16.6 13.7 2.9
Simplex In. 180 251 Buy 6,010 6,906 8,053 15.8 18.1 23.2 31.3 31.7 10.0 7.8 5.7 2.4
Unity Infra 39 59 Buy 1,973 2,180 2,455 11.5 14.0 13.3 15.0 3.5 2.8 3.0 2.6 2.2
Source: Company, Angel Research
Exhibit 14:SOTP break-up
ABL 86 32 - - 182 68 - - - - 268
CCCL 16 100 - - - - - - - - 16
IRB Infra 52 32 - - 113 69 4 3 - - 164
IVRCL 17 46 - - - - 20 54 - - 37
JP Assoc. 27 27 30 30 - - - - 43 43 100
L&T 1,351 76 - - - - 437 24 - - 1,788
NCC 25 57 - - 7 16 - - 12 27 44
Punj Lloyd 64 100 - - - - - - - - 64
Sadbhav 70 41 - - 99 59 - - - - 168
Simplex In. 251 100 - - - - - - - - 251
Unity Infra 52 88 - - 7 12 - - - - 59
Source: Company, Angel Research
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ITNL | 3QFY2013 Result Update
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Profit & loss statement (Consolidated)
Other operating income
% chg 48.5 68.1 38.5 17.1 7.5
R.M. consumed 104 73 125 124 203 226
Construction expenses 150 528 1,790 3,051 3,610 3,866
Employee expenses 299 357 352 369 394 423
SG&A 479 651 626 595 571 607
% chg 35.7 44.5 26.9 21.8 8.2
(% of Net Sales) 36.3 33.2 28.5 26.1 27.2 27.4
Depreciation & Amortisation 35 60 61 77 102 112
% chg 33.5 48.0 27.0 21.2 8.2
(% of Net Sales) 34.2 30.7 27.0 24.8 25.6 25.8
Interest & other Charges 174 294 498 728 1,037 1,195
Other Income 107 79 79 124 149 178
(% of PBT) 21.9 15.1 11.7 15.8 18.7 22.2
Share in profit of Associates - - - - - -
% chg 7.8 28.7 16.3 1.3 1.2
Extraordinary Expense/(Inc.) 10.0 - 0.6 - - -
Tax 48.3 185.8 224.2 245.7 248.9 252.0
(% of PBT) 10.1 35.4 33.3 31.3 31.3 31.3
Add: Share of earnings of asso. (2.7) 8.7 (4.8) 3.9 3.4 (1.0)
Less: Minority interest (MI) 3.2 2.6 12.1 45.8 39.2 (12.0)
Prior period items - - - - - -
% chg - (20.2) 25.8 14.6 2.6 10.5(% of Net Sales) 26.6 14.3 10.7 8.9 7.8 8.0
% chg - (20.2) 25.8 14.6 2.6 10.5
Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable withprevious year numbers
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ITNL | 3QFY2013 Result Update
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Balance sheet (Consolidated)
Equity Share Capital 171 194 194 194 194 194Preference Capital 35 35 35 35 35 35
Reserves & Surplus 715 1,474 2,045 2,570 2,987 3,458
Total Loans 1,854 3,322 5,467 10,219 14,019 15,719
Deferred Tax Liability 65 78 132 204 204 204
Gross Block 1,306 2,103 3,532 7,036 10,370 11,355
Less: Acc. Depreciation 263 295 365 478 580 692
Capital Work-in-Progress 8 6 3 34 34 34
Goodwill 285 271 280 527 527 527
Receivables under SCA 732 1,205 2,527 4,679 6,328 7,826
Cash 160 550 528 284 138 195
Loans & Advances 344 992 1,813 1,700 1,416 1,391
Other 915 782 895 1,071 1,175 1,173
Current liabilities 725 787 1,355 1,767 2,104 2,335
Mis. Exp. not written off - - 4 - - -
Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable withprevious year numbers
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ITNL | 3QFY2013 Result Update
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Cash flow statement (Consolidated)
Profit before tax 476 524 674 785 795 805
Depreciation 263 32 69 114 102 112Change in Working Capital (533) (454) (366) 348 518 257
Less: Other income (107) (79) (79) (124) (149) (178)
Direct taxes paid (48) (186) (224) (246) (249) (252)
(Inc.)/ Dec. in Fixed Assets (1,314) (795) (1,426) (3,535) (3,334) (985)
(Inc.)/ Dec. in Investments (201) (232) 239 (201) - -
Other income 107 79 79 124 149 178
Issue of Equity 171 23 - - - -
Inc./(Dec.) in loans 1,854 1,467 2,145 4,752 3,800 1,700
Dividend Paid (Incl. Tax) (25) (74) (79) (91) (91) (91)
Others (568) (64) (1,213) (2,352) (1,868) (1,670)
Inc./(Dec.) in Cash 125 390 (23) (244) (145) 56
Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable withprevious year numbers
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ITNL | 3QFY2013 Result Update
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Key Ratios
P/E (on FDEPS) 8.2 11.4 9.1 7.9 7.7 7.0P/CEPS 7.6 9.7 8.0 6.9 6.4 5.8
P/BV 3.8 2.3 1.7 1.4 1.2 1.1
Dividend yield (%) 0.6 1.6 1.7 2.0 2.0 2.0
EV/Sales 3.5 2.8 2.2 2.5 2.7 2.8
EV/EBITDA 9.6 8.4 7.7 9.5 10.0 10.1
EV / Total Assets 1.9 1.3 1.1 1.0 1.0 1.0
EPS (Basic) 24.6 17.7 22.3 25.6 26.3 29.0
EPS (fully diluted) 24.6 17.7 22.3 25.6 26.3 29.0
Cash EPS 26.7 20.8 25.4 29.5 31.5 34.8
DPS 1.3 3.3 3.5 4.0 4.0 4.0
Book Value 53.7 87.7 117.1 144.1 165.6 189.8
EBIT margin 34.2 30.7 27.0 24.8 25.6 25.8
Tax retention ratio 89.9 64.6 66.7 68.7 68.7 68.7
Asset turnover (x) 1.2 0.6 0.7 0.5 0.4 0.4
ROIC (Post-tax) 35.5 12.7 11.9 9.2 7.5 6.7
Cost of Debt (Post Tax) 16.9 7.3 7.6 6.4 5.9 5.5
Leverage (x) 1.8 1.7 1.9 2.9 3.9 4.3
Operating ROE 69.7 22.0 20.2 17.3 14.0 11.8
ROCE (Pre-tax) 37.4 18.0 16.4 12.9 10.8 9.7
Angel ROIC (Pre-tax) 44.1 21.3 18.7 14.0 11.4 10.1
ROE 93.8 26.2 21.8 19.6 17.0 16.3
Asset Turnover (Gross Block) 2.5 1.4 1.4 1.1 0.8 0.6
Inventory / Sales (days) 6 4 2 2 1 1
Receivables (days) 177 109 63 54 50 46
Payables (days) 135 148 117 121 131 142
Wcap cycle (ex-cash) (days) 283 230 202 178 149 133
Net debt to equity 1.8 1.6 2.2 3.5 4.3 4.2
Net debt to EBITDA 2.9 3.5 4.3 6.8 7.8 8.0
Interest Coverage 3.2 2.5 2.2 1.9 1.6 1.5
Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable withprevious year numbers
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7/29/2019 ITNL, 5th February, 2013
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ITNL | 3QFY2013 Result Update
F b 4 2013 13
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should makesuch investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.
Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make
investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this
document are those of the analyst, and the company may or may not subscribe to all the views expressed within.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals.
The information in this document has been printed on the basis of publicly available information, internal data and other reliablesources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as thisdocument is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any wayresponsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report .Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify,nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. WhileAngel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory,compliance, or other reasons that prevent us from doing so.
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the past.
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Note: Please refer to the important`Stock Holding Disclosure' report on the Angel website (Research Section). Also, pleaserefer to the latest u date on res ective stocks for the disclosure status in res ect of those stocks. An el Brokin Limited and
Disclosure of Interest Statement ITNL
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock No
3. Angel and its Group companies' Directors ownership of the stock No
4. Broking relationship with company covered No
Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors.
Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)