Sadbhav Engineering Q4 Update - Balance Sheet Needs Urgent Repair: Nirmal Bang

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Sadbhav Engineering Ltd. has reported weak set of numbers for Q4 FY21.Revenue/Ebitda was 30.9%/11.1% below our estimate. Lower execution was on account of delay in equity infusion in 3 Hybrid Annuity Model projects. The company’s balance sheet continues to remain stretched. To fund equity portion of the HAM projects and to repay borrowings, the company has sold a 7% stake in India InfraVit Trust and raised funds through NCDs. While this has resolved the funding problem temporarily, we believe that the sale of HAM assets and other projects like the Maharashtra Border Check Post project and the Ahmedabad Ring Road project is imperative to sustain the EPC business. Until then, we believe that order inflow will be limited and consequently execution will suffer..Click on the attachment to read the full report:.DISCLAIMERThis 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 author entity 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.

Sadbhav Engineering Q4 Update - Balance Sheet Needs Urgent Repair: Nirmal Bang

Sadbhav Engineering Q4 Update - Balance Sheet Needs Urgent Repair: Nirmal Bang

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