February 22, 2017 / 11:41 IST
J Kumar Infraprojects’ (JKIL) revenue grew 19% yoy to Rs 3.7bn (our est. Rs3.5bn), led by a pick-up in execution of Mumbai, Ahmedabad and Delhi metro projects and flyover projects in Mumbai. No revenue was recorded in three JNPT projects due to utility shifting work at ground level. EBITDA margin fell 104bps yoy to 17.1%. PAT grew 10.3% yoy to Rs 268mn. 9MFY17 order accretion was at Rs 18bn and order book is at Rs 97bn (7x TTM sales).
Outlook
To factor the revenue loss due to initial hurdles related to change of design and utility shifting for Mumbai metros and JNPT projects, we revise downwards revenue and PAT estimates by 4-10% and 1-11% respectively for FY17e-19e. We revise the rating to an Accumulate (Buy earlier), with a revised target price of Rs 255, based on 12.5x Sept ’18 earnings (Rs 259 earlier).
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