The topline at Rs 963.8 crore (9.9% YoY growth) was lower than our estimate of Rs 1028.7 crore. Construction revenues de-grew 14.4% YoY to Rs 485 crore whereas net toll revenue grew strongly by 54.3% YoY to Rs 479 crore (our estimate: Rs 453 crore)
The EBITDA margin of 57.6% was higher than our estimate of 54.4% due to higher proportion of the BOT division's contribution to topline than that of the construction division
The net profit at Rs 132.6 crore (22.2% YoY growth) was higher than our estimate of Rs 128.8 crore mainly due to lower-than-expected tax expense (effective tax rate: 20.9% vs. 26.3% in Q3FY14)
The management said the company’s current equity requirement is Rs 2,600 crore over the next three or four years, which would largely be met through internal accruals
"IRB being a leading player in the road space with a strong balance sheet is likely to be a key beneficiary of NHAI’s plan to roll out road projects of ~3,500 km in Q4FY15. Secondly, given the strong order of Rs 11,082 crore that provides strong revenue visibility, we expect its earning to grow at 13.5% CAGR during FY14-17E. However, we believe most of the positives have already been priced in the CMP. Hence, we maintain HOLD recommendation with an SOTP based target price of Rs 274/share", says ICICIdirect.com research report.
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