Views on Sadbhav Infrastructure Project Ltd (SIPL) 1HFY2016 Results: Angel Broking

Views of Mr. Santosh Yellapu (Sr. Research Analyst - Infrastructure, Angel Broking) on Sadbhav Infrastructure Project Ltd (SIPL) 1HFY2016 Results:

Reports PAT level losses

"For 1HFY2016, Sadbhav Infrastructure Project Ltd (SIPL) reported a consol. top-line of INR 274cr (vs INR 500cr in FY2015). The Reported top-line (for 1HFY2016), on a YoY basis, benefitted from (1) 16.0% toll income growth across Hyderabad-Yadagiri project, (2) 69% toll income growth across Maharashtra Border Check Post project (4 new check posts commenced operations in 2QFY2016), and (3) 11% toll income growth across Ahmadabad Ring Road project. The reported EBITDA for 1HFY2016 stood at INR 179cr while the EBITDA margin for the same period was at 65.7% (vs 56.7% for FY2015). The overall debt increased in 1HFY2016 as the company pursued stake purchases at some of the SPVs. This resulted in higher interest expenses (INR 284cr for 1HFY2016 vs INR 526cr for FY2015). Accordingly, SIPL incurred a bottom-line level loss of INR 159cr for 1HFY2016. Since its IPO in (Sep-2015), we have maintained a NEUTRAL rating on the stock and we reiterate the same factoring in the perceived near term prospects of the company."

Source : Equity Bulls

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