Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  

| More

JMC Projects Results Report - Poised for growth - HDFC Securities

Posted On: 2021-05-13 16:16:50 (Time Zone: UTC)

Mr. Parikshit D Kandpal, CFA, HDFC Securities and Mr. Chintan Parikh, Institutional Research Analyst, HDFC Securities

JMC Projects (JMC) reported revenue of INR 13.5bn (+44%/+26% YoY/QoQ), 6% ahead of our estimate. However, EBITDA/APAT missed our estimate by ~7% on higher commodity prices and COVID-related expenses. JMC registered an exceptional year with order wins of INR 84.4bn, taking the order book (OB) to INR 140bn. The momentum has continued in 1QFY22 with intake of INR 30bn until now. Despite the lockdown, labour availability is at 90% of Mar-21. Provided COVID situation does not deteriorate further, management expects 15-20% revenue growth. We reiterate BUY with an increased target price of INR 126, given (1) a healthy order book (~4x FY21 revenue) and (2) comfortable balance sheet. We have tweaked our FY21 estimate to incorporate continued momentum in the order intake and higher commodity prices. Key risks: (1) delay in restructuring/monetisation of BOT assets and (2) increase in leverage.

Growth levers in place; higher commodity prices could put a spanner: JMC reported revenue of INR 13.5bn (+44%/+26% YoY/QoQ). EBITDA at INR 1.3bn was impacted by higher commodity prices. APAT at Rs 601mn (+33% YoY) was 7% below our estimate. Management has guided for 15-20% topline growth in FY22, which we believe is achievable, given the robust OB. Despite 90% of the OB being variable pass-through contract, higher commodity prices could jeopardise JMC's double-digit margin guidance. We remain cautious and build in 9.5% EBITDA margin for FY22.

Exceptional year in terms of order wins: JMC received orders of INR 84.4bn in FY21, more than its guidance of INR 60bn to 80bn for the year. Including the order wins of INR 30bn in 1QFY22, the order book stands at INR 170bn (~4.6x FY21 revenue). Although management did not give any formal guidance, it expects to match FY21 in terms of order intake, driven by B&F and water segments.

Debt to be at the same level; resolution of BOT assets inching closer: Standalone net debt reduced to INR 5.1bn (net D/E 0.47x) from INR 6.6bn at the end of Dec-20. Debt is likely to remain at similar level in the near term, given the growth prospects. Basis management commentary, the restructuring process of two of the BOT road assets (Wainganga and Kurukshetra Expressway) could be completed by Jun-21. For Vindhyachal asset, a binding offer is expected in 60-90 days from a prospective buyer. The restructuring process would potentially reduce (near NIL) the support required from JMC.

Shares of JMC PROJECTS (INDIA) LTD. was last trading in BSE at Rs.98 as compared to the previous close of Rs. 100.85. The total number of shares traded during the day was 43464 in over 946 trades.

The stock hit an intraday high of Rs. 105 and intraday low of 95.7. The net turnover during the day was Rs. 4248067.

Source: Equity Bulls

Click here to send ur comments or to

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only., its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.

Other Headlines:

CESC Q4FY21 Results Review Report - Loss decline, strong CF make valuation attractive - HDFC Securities

White Goods & Durables - Analysis of pressure cooker market: TTK Prestige is key beneficiary - ICICI Securities

CESC - Good earnings in a challenging environment - ICICI Securities

Somany Ceramics - Walking the talk - ICICI Securities

DB Corp - Rise in newsprint price adds to risk - ICICI Securities

CEAT - Market share ambitions remain strong - ICICI Securities

Consumer Staples & Discretionary - Worm's world view #32: Conversations with paint dealers regarding price hikes - ICICI Securities

Oil & Gas - Oil, gas & spot LNG surge to bring gains for GAIL & OIL - ICICI Securities

Asset Management Companies - Positive trends to support earnings - ICICI Securities

Q4FY21 Result Update - Lemon Tree Hotels - ICICI Direct

Q4FY21 Company Update - Globus Spirits - ICICI Direct

Q4FY21 Result Update - DB Corp - ICICI Direct

Q4FY21 Result Update - Somany Ceramics - ICICI Direct

KEC International: Company Update - Building on diversification - HDFC Securities

LIC Housing Finance - Q4 FY21 Result Update - YES Securities

Entertainment Network Ltd - Beating on solutions business - ICICI Securities

Asahi India Glass - Operating leverage, product mix aid margins - ICICI Securities

Whirlpool of India - Market leading revenue growth - ICICI Securities

Lemon Tree Hotels - Wait for recovery gets longer - ICICI Securities

LIC Housing Finance - Stupendous growth momentum; needs to shore up provisioning and capital buffer - ICICI Securities

Quant Pick - Bank of Baroda - ICICI Direct

Company Update - Amara Raja Batteries - Investor Event Outcome - ICICI Direct

Q4FY21 Result Update - Bhel - ICICI Direct

Q4FY21 Company Update - NRB Bearings - ICICI Direct

CESC - Q4FY21 First Cut - ICICI Direct

Q4FY21 Result Update - Entertainment Network India - ICICI Direct

LIC Housing Finance Results Review Report - Balance sheet beefs up; P&L to stay soft - HDFC Securities

Jubilant FoodWorks 4QFY21 Results Review Report - Missing excitement; recovery priced in - HDFC Securities

BFSI Sector Update - MFI Consultation Paper Takeaways - Incrementally positive for NBFC-MFIs - HDFC Securities

Q4FY21 Result Update - JK Cement - ICICI Direct

Q4FY21 Result Update - Minda Industries - ICICI Direct

Stock Tales - Indo Count Industries - ICICI Direct

IPO Review - Krishna Institute of Medical Sciences Ltd - ICICI Direct

Q4FY21 Company Update - Greenply Industries - ICICI Direct

IPO Review - Dodla Dairy Ltd - ICICI Direct

Lemon Tree Hotels - Q4FY21 First Cut - ICICI Direct

Jubilant Foodworks - Q4FY21 investor call takeaways - YES Securities

Greenply Industries Ltd - Q4 FY21 Result Update - YES Securities

Whirlpool of India Ltd - Q4 FY21 Result Update - YES Securities

New India Assurance Report - CoRs disappoint yet again - HDFC Securities

Maintain BUY on Kajaria Ceramics - Performance shines through; outlook bright - HDFC Securities

Retain ADD on Deccan Cement - Volume strong; high other expense dents margin - HDFC Securities

Reiterate ADD on NHPC - Lower generation impacts earnings - HDFC Securities

Maintain BUY on JK Cement - Robust volume and utilisation - HDFC Securities

Maintain BUY on DLF - Gaining traction - HDFC Securities

Maintain BUY on Capacite Infraprojects - Marginal miss - HDFC Securities

DLF Ltd - Q4 FY21 Result Update - YES Securities

Greenply Industries Ltd - Q4FY21 first cut - YES Securities

Coal India - Coal makes a comeback - ICICI Securities

Kajaria Ceramics - Q4FY21 beat largely priced in - ICICI Securities

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020