Result Update: IRB INFRASTRUCTURE DEVELOPERS LTD - BUY - TP Rs.295 - Kotak

Revenues of the company for Q4FY17 were ahead of our estimates on improvement in construction revenues.

Consolidated operating margins improved across both the divisions and stood at 51.4% vs 49.3% during Q4FY17 due to higher proportion of BOT revenues in the overall mix.

Net profit improved by 37% YoY for Q4FY17 and stood ahead of our estimates due to better than expected revenue growth and margins.

We revise our estimates to factor in lower than expected toll collection in Ahd-Vadodara project and Amritsar Pathankot project while we also incorporate the transfer of 6 projects to InVIT. We arrive at a revised price target of Rs 295 on FY19 estimates (Rs 287 earlier on FY18 estimates). We continue to remain positive on the stock and maintain BUY rating on IRB Infrastructure.

Shares of IRB INFRASTRUCTURE DEVELOPERS LTD. was last trading in BSE at Rs.232.1 as compared to the previous close of Rs. 225.75. The total number of shares traded during the day was 261185 in over 2972 trades.

The stock hit an intraday high of Rs. 233 and intraday low of 225.05. The net turnover during the day was Rs. 60052723.

Source : Equity Bulls

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