Motilal Oswal: IRB Infrastructure’s Weak Order Book Increases Dependency On New Order Wins
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
IRB Infrastructure Developers Ltd.’s consolidated financials are not comparable YoY owing to monetization of nine assets through the InvIT route and consolidation of the Mumbai-Pune Phase-II project.
Its construction business witnessed revenue/Ebitda/adjusted profit after tax decline of 35%/27%/28% YoY.
Consolidated loss came in at Rs 301 million (versus estimate loss of Rs 57 million). Cash flow visibility for the company has improved meaningfully due to the Mumbai-Pune Phase-II project.
However, the construction order book (OB) remains weak at engineering, procurement and construction OB/revenue of 1.2 times (or 0.9 times excluding the newly won Hybrid annuity model project where construction may commence only by Q4 FY21), thereby increasing dependency on new order wins.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.