IL&FS Transportation Networks (India) Limited (ITNL) reported encouraging Q1 FY 2011 results. IL&FS Transportation‘s Q1 consolidated net sales were Rs 776 crores while its’ consolidated EBITA was Rs. 248 crores showing a healthy 32% margin. IL&FS Transportation‘s net profit was Rs 104.6 crores showing a reasonable 13% of sales. IL&FS Transportation‘s total capital employed was Rs. 1,781 crores. The Return on Capital Employed (ROCE) works out to 13.9% on the basis of EBITA. Comparables with the corresponding Quarter are not available as IL&FS Transportation was listed on 30th March 2010.
IL&FS Transportation‘s MD, K Ramchand, sounded confident when he spoke to CNBC TV 18. Ramchand said that IL&FS Transportation had been able to keep its EBITDA margins at 35%, which was the same as for the whole year last year. Ramchand cautioned that Q1 FY 2011 quarter had not been very good for the industry. Ramchand also said that many contracts had not been awarded. Ramchand, however, struck a positive note by mentioning that IL&FS Transportation had signed all the concessions. Importantly, Ramchand said that IL&FS Transportation expected this to pick up in the next three quarters and IL&FS Transportation should see better results in the future.
IL&FS Transportation‘s order book stood at Rs 10,000 crores as on FY10 ending. IL&FS Transportation‘s order book as of June 2010 stands at Rs 16,000 crores. By the end of FY 2011, IL&FS Transportation‘s order book is expected to be around Rs 19,000-20,000 crores. IL&FS Transportation has huge revenue visibility.
| Rs. in Cr. | Mar 2010 | Mar 2009 |
| Sales Turnover | 2,402.88 | 1,225.37 |
| Net Profit | 344.40 | 26.25 |
| Total Shareholder’s Funds | 1,703.64 | 921.22 |
| Total Debt | 3,321.52 | 1,854.20 |
| Earning Per Share (Rs.) | 17.22 | 1.30 |
| Consolidated Figures. |
IL&FS Transportation‘s Spanish subsidiary also reported encouraging performance. IL&FS Transportation‘s subsidiary reported gross revenue of about Rs 250 crore and a profit of about Rs 12 crore.
IL&FS Transportation‘s MD, Ramchand, indicated that on the basis of extrapolating the Q1 results for the full year, IL&FS Transportation‘s revenue for the FY 2011 would be around Rs 3,000 crores leading to a jump of around 25-30% on a year on year basis. This is very encouraging if it materializes.
IL&FS Transportation is close to commissioning the Gomti-Beawer project, a toll project. IL&FS Transportation will also be commissioning in Q2 FY 2011 the Hyderabad outer Ring Road. IL&FS Transportation‘s Spanish concession which is also annuity project will also get commissioned during this year. IL&FS Transportation will see three commissioning in the next Quarter and this will give some boost to IL&FS Transportation‘s revenues.
IL&FS Transportation stated that the normal rate of growth of traffic is about 8% CAGR.
IL&FS TRANSPORTATION NETWORKS’ Research Report
About IL&FS Transportation Networks Ltd (ITNL):
IL&FS Transportation Networks Ltd (ITNL) is an established surface transportation infrastructure company. It is one of the largest private sector BOT road operators in India. ITNL is a developer, operator and facilitator of surface transportation infrastructure projects, taking projects from conceptualization through commissioning to operations and maintenance. ITNL was incorporated in 2000 by IL&FS, an infrastructure development and finance company, in order to consolidate their existing road infrastructure projects and to pursue various new project initiatives in the area of surface transportation infrastructure. In March 2008, ITNL commenced international operations through the acquisition of Elsamex S.A. (“Elsamex“), a provider of maintenance services primarily for highways and roads in Spain and other countries.
Since inception, ITNL has been involved in the development, operation and maintenance of national and state highways, roads (including urban roads), flyovers and bridges in Andhra Pradesh, Delhi, Gujarat, Maharashtra, Karnataka, Uttar Pradesh, Kerala, Jharkhand and Rajasthan.
ITNL benefits significantly from its affiliation with IL&FS, which has an established track record in promoting and financing a range of public infrastructure projects in India for over 21 years. IL&FS was incorporated in 1987 and its shareholders include Life Insurance Corporation of India, Central Bank of India, State Bank of India, Housing and Development Finance Corporation Limited, Abu Dhabi Investment Authority and Orix Corporation of Japan. An earlier report on IL&FS Transportation Networks share & stock investment prospects is available here (IL&FS Transportation Networks share & stock investment prospects).
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