IIFL has maintained an add rating on GTL Infrastructure with a target of Rs 34 in its January 15, 2009 research report. "GTL Infrastructure (GTLI) reported revenues 14% below expectation. EBITDA margins were preserved at 51% (w/o the dilutive effect of adding pass-through costs of fuel and energy, as done by Bharti and Reliance Infratel) was also as per expectation. However, the tower count addition is progressing slower than we expected. Tenancies have remained at 0.95 on an expanded base of 6,487 towers (up by 1,000 towers from 2Q). Business continues to come from Aircel and BSNL, and spill-over / gap-filling needs of Indus and Tata. We maintain ADD but reduce our revenue estimates by between 7% and 10% and cut our target price to Rs 34," says IIFL's research report.
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