IRB\u2019s consolidated financials are not comparable Y-o-Y due to the monetisation of nine assets through the InvIT route and consolidation of the Mumbai-Pune Phase II project. The Construction business reported a revenue\/Ebitda\/adjusted PAT decline of 22%\/22%\/53% Y-o-Y. Normalcy in traffic led to strong (32% Q-o-Q) growth in collections across 13 toll assets of IRB and IRB InvIT. Though losses from the associates reduced sequentially, higher depreciation from Mumbai-Pune Phase II project led to a 29% miss on our earnings estimate in spite of a beat on our revenue estimate. For 9MFY21, adjusted PAT stood at Rs 197 million (v\/s Rs 5.7 billion in 9MFY20).<\/p>\n
Cash flow visibility has improved meaningfully due to the Mumbai-Pune Phase II project. Construction order book (OB) remains weak, with OB-to- revenue ratio of 1.1x, thereby increasing dependency on new order wins. We cut our FY21E\/FY22E\/FY23E EPS by 7%\/5%\/10% due to higher depreciation in the BOT segment. Though NHAI has ramped up ordering, with 4QFY21 expected to witness higher order wins, any weakness in order wins may pose a downside risk to our earnings estimates. We maintain \u2018neutral\u2019, with a SoTP-based TP of Rs 122 per share. Any favorable outcome from the Ahmedabad-Vadodara Expressway arbitration may pose an upside risk to our TP.<\/p>\n","protected":false},"excerpt":{"rendered":"
IRB\u2019s consolidated financials are not comparable Y-o-Y due to the monetisation of nine assets through the InvIT route and consolidation of the Mumbai-Pune Phase II project. The Construction business reported a revenue\/Ebitda\/adjusted PAT decline of 22%\/22%\/53% Y-o-Y. Normalcy in traffic led to strong (32% Q-o-Q) growth in collections across 13 toll assets of IRB and IRB InvIT. Though losses from the associates reduced sequentially, higher depreciation from Mumbai-Pune Phase II project led to a 29% miss on our earnings estimate in spite of a beat on our revenue estimate. For 9MFY21, adjusted PAT stood at Rs 197 million (v\/s Rs […]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,197,138],"tags":[],"class_list":["post-396611","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-roads-the-financial-express","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/396611","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=396611"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/396611\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=396611"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=396611"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=396611"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}