IPO note | Infrastructure
August 28, 2015
Sadbhav Infrastructure Project
NEUTRAL
sue Open: August 31, 2015
Is
Issue price captures all positives in store…
Issue Close: September 2, 2015
Company background: Sadbhav Infrastructure Project Ltd (SIPL) is a subsidiary of
Ahmedabad-based Sadbhav Engineering Ltd (SEL). SIPL was incorporated in
Issue Details
2007 as a roads and highways operator. It has a portfolio of 10 BOT projects of
which 6 road projects are fully operational, 1 is partially operational (border
Face Value: `10
check posts) and 3 are under construction stage. 9 of the 10 BOT projects are toll
projects (including service fee for the border check posts in Maharashtra) and 1 is
Present Eq. Paid up Capital: `311.0cr
an annuity project. In addition to the 10, SIPL is in later stages of acquiring stake
Fresh Issue: 4.12cr Shares*
in 2 projects, of which 1 is operational and the other one is under development.
This restructuring process is in accordance with company’s strategy of
Offer for Sale: 0.64cr Shares
consolidating all BOT road projects developed by SEL under one company- SIPL.
Post Eq. Paid up Capital: `352.2cr
Pros: (1) Strong revival trend seen across many of the company’s BOT road
Fresh Issue size (amount): `425cr
projects which should lead to improvement in its cash flow cycle, (2) diversified
Offer for Sale (amount): `66.65cr
portfolio with minimal risk, as only 4 of the 12 projects are under construction
Price Band: `100-103
stage (3 of them being ahead of schedule), and (3) recent BOT re-financing
initiative, as well as, debt re-payment from the IPO proceeds should relieve near-
Lot Size: 145 shares
term stress on the Balance Sheet.
Post-issue implied mkt. cap:
`3,522.3cr- 3,627.9cr
Cons: (1) Highly levered Balance Sheet (FY2015 debt of `6,342cr; D/E ratio of
Promoters holding Pre-Issue: 78.1%
7.9x), (2) deteriorating interest coverage ratio (from 1.0x in FY2012 to 0.3x in
FY2015), (3) networth erosion from `971cr in FY2012 to `788cr in FY2015, with
Promoters holding Post-Issue: 69.0%
there being more potential for erosion, (4) lack of clarity on the sources of funding
*At higher end of the IPO price band of `
of new projects the company intends to build its portfolio upon.
Outlook & Valuation: Although we are impressed by the company’s past
Book Building
execution track record, strong parentage support, and diversified road portfolio
QIBs
75% of issue
(with minimal execution risk), what concerns us is the high debt on the books. The
commencement of 4 BOT projects during FY2016-17E will add to the revenues,
Non-Institutional
15% of issue
but high interest expense will delay the turnaround in profitability. In terms of
Retail
10% of issue
valuation, the company is trading at FY2015-EV/EBITDA multiple of 29.9x and
FY2015-P/BV of 4.1x which is significantly expensive than its peers. On using the
sum-of-the-parts based valuation methodology, we arrive at FY2017 based fair
Post Issue Shareholding Pattern
price of `101/share, which suggests that the issue is fully priced. While positives
emanating from favorable near term prospects would be offset by the high debt
Promoters Group
69.0
on the company’s books, we suggest a NEUTRAL rating on the issue.
DIIs/FIIs/Public & Others
31.0
Key Financials (Consolidated)
Y/E March (` cr)
FY12
FY13
FY14
FY15
Net Sales
176
287
371
500
% chg
153.2
63.2
29.2
34.8
Net Profit
10
(52)
(196)
(330)
% chg
(0.9)
nmf
nmf
nmf
EBITDA (%)
52.9
59.0
65.1
61.7
EPS (Rs)
0.3
(1.5)
(5.0)
(9.7)
P/E (x)
nmf
nmf
nmf
nmf
P/BV (x)
3.8
3.3
3.9
4.1
RoE (%)
1.3
(5.0)
(17.4)
(37.5)
RoCE (%)
2.5
2.9
2.9
2.6
Yellapu Santosh
EV/Sales (x)
33.4
23.7
21.7
18.5
022 - 3935 7800 Ext: 6811
EV/EBITDA (x)
63.0
40.1
33.3
29.9
[email protected]
Source: Company, Angel Research; Note: mnf- not meaningful; Valuation multiples at higher- end
of the price band
Please refer to important disclosures at the end of this report
1
SIPL | IPO note
Issue Details
SIPL is offering 4.77cr equity shares of `10 each via book building route in a price
band of `100-103, consisting of fresh equity issue of 4.12cr shares and offer for
sale by PE firm of 0.64cr equity shares.
Exhibit 1: Shareholding Pattern
Pre-Issue
Post-Issue
Particulars
No. of Shares
(%)
No. of Shares
(%)
Promoter Group
24,28,67,647
78.1
24,28,67,647
69.0
Retail & HNI Investors
33,80,190
1.1
1,53,13,605
4.3
Institutional Investors
6,47,15,244
20.8
9,40,43,965
26.7
Source: Company, Angel Research
Objects of the Offer
The IPO proceeds are proposed to be utilized as follows: -
`180cr towards repayment of rupee loan facility from ICICI Bank.
`84.84cr towards part repayment of unsecured loans from SEL, the corporate
promoter.
`82.0cr towards equity investment and advancing of subordinate debt to its
subsidiary - Shreenathji-Udaipur Tollway Private Ltd (SUTPL), for part financing
of the SUTPL project.
General corporate purposes.
August 28, 2015
2
SIPL | IPO note
Company details
Sadbhav Infrastructure Project Ltd (SIPL) is a subsidiary of Ahmedabad-based
Sadbhav Engineering Ltd (SEL). SIPL was incorporated in 2007 as a developer and
is a roads and highways operator on a BOT- Toll/ Annuity basis. SIPL is into the
business of development, operation and maintenance of national and state
highways and roads in several states including Maharashtra, Gujarat, Rajasthan,
Karnataka, Haryana, Madhya Pradesh and Telangana, and a border check posts
project in Maharashtra.
It has a portfolio of 10 BOT projects of which 6 road projects are fully operational,
1 is partially operational (border check posts) and 3 are under construction stage.
9 of the 10 BOT projects are toll projects (including service fee for the border
check posts in Maharashtra) and 1 is an annuity project. In addition to the 10, SIPL
is in the process to acquiring stake in 2 projects; ie, it would be acquiring 73.8% in
Mysore-Bellary Highway Pvt. Ltd and 100% in Dhule Palesnar Tollway Ltd. Of these
2 projects, 1 is operational and the other one is under development. Of the 2 BOT
projects, 1 is a toll project and the other one is an Annuity project. This
restructuring process is in accordance with the company’s strategy to consolidate
all BOT road projects to be developed by SEL under one company- SIPL.
SIPL’s parent company SEL was incorporated in 1988 and has established itself as
one of the leading engineering, procurement and construction (EPC) and
infrastructure players in the country. In the last 25 years, SEL has developed a
strong project execution track record of various construction projects across 10
states in India and has a strong Balance Sheet. SIPL derives strength from its
parent SEL, which has been an EPC contractor for most of SIPL’s projects.
August 28, 2015
3
SIPL | IPO note
Investment Rationale
SIPL has a diversified and strong portfolio of road BOT assets
SIPL is in the business of development, operation and maintenance of roads and
highway projects. It has a strong portfolio of 10 projects, of which 7 are
operational (includes 1 partially operational) and 3 are under construction stage,
with an average residual life of 18 years and 7 months. In addition to the road
BOT project portfolios, SIPL’s project portfolio also consists of a border check post
project. SIPL is also in the process of acquiring stakes in 2 BOT projects from SEL.
The restructuring is in accordance with the strategy to consolidate all BOT road
projects under one company- SIPL.
SIPL since inception has emerged as an asset developer with quality road assets
portfolio. Currently 7 of its projects are operational (including Maharashtra Border
Check Post Network Ltd project which is partially operational) with total project cost
of `5,641cr, measuring 1,534 lane km. 3 projects with total project cost of
`3,099cr measuring 1,062 lane km are under construction stage. Among the 2
projects being acquired by SIPL, 1 projects with cost of `1,420cr measuring 534
lane km is operational, while 1 project with cost of `789cr measuring 387 lane km
is under construction stage.
Exhibit 2: BOT Projects Portfolio
Projects Under Operation:
BOT Project- Name of the SPV
Stake (%)
Lane kms
Project Type
Maharashtra Border Check Post Network Ltd.
78
NA
User Fee
Rohtak Panipat Tollway Pvt. Ltd.
100
323
BOT- Toll
Bijapur-Hungund Tollway Pvt. Ltd.
77
389
BOT- Toll
Ahmedabad Ring Road Infrastructure Ltd.
100
305
BOT- Toll
Aurangabad Jalna Tollway Ltd.
100
263
BOT- Toll
Hyderabad Yadgiri Tollway Pvt. Ltd.
100
140
BOT- Toll
Nagpur Seoni Express Way Ltd.
100
111
BOT- Annuity
Projects Under Construction:
BOT Project- Name of the SPV
Stake (%)
Lane kms
Project Type
Shreenathji-Udaipur Tollway Pvt. Ltd.
100
317
BOT- Toll
Bhilwara-Rajsamand Tollway Pvt. Ltd.
100
349
BOT- Toll
Rohtak- Hissar Tollway Pvt. Ltd.
100
395
BOT- Toll
Projects being Acquired:
BOT Project- Name of the SPV
Stake (%)
Lane kms
Project Type
Mysore-Bellary Highway Pvt. Ltd.
74
387
BOT- Annuity
Dhule Palesner Tollway Ltd.
100
355
BOT- Toll
Source: Company, Angel Research; Note: NA- Not Applicable; Projects under acquisition stage
capture the stake details post the acquisition
The project portfolio is well distributed across urban and rural vehicular traffic, and
includes national and state highways. The roads and highways project portfolio
has been built across states which have strong industrial activities and are ones
which are economically stable. Currently, all BOT projects except SUTPL are
funded by SIPL. SIPL plans to use `82cr of the IPO proceeds towards the equity
funding of the SUTPL BOT project. On successful completion of the SIPL IPO, equity
funding requirements of the entire project portfolio of SIPL would be fully funded.
August 28, 2015
4
SIPL | IPO note
Minimal execution risk, given that all the 4 Development projects
are progressing well
7 of the 10 BOT projects of SIPL are currently operational (including Maharashtra
Border Check Post project which is partially operational).
For 4 under-development projects (includes one under acquisition stage), execution
risk is minimal as land acquisition for these projects has been completed and all
clearances are in place. The company’s Management has highlighted that 3 of the
4 projects are running ahead of the schedule (with 1 of them nearing completion).
SIPL’s Management expects 3 BOT projects to commence operations in next 10
months.
Exhibit 3: Projects under Development/ Construction
Name of the SPV
Sch. CoD
Projects Under Construction stage
Shreenathji-Udaipur Tollway Private Limited
Oct-15
Bhilwara-Rajsamand Tollway Private Limited
Apr-16
Rohtak- Hissar Tollway Private Limited
Jun-16
Projects Under Acquisition stage
Mysore-Bellary Highway Private Limited
Jun-17
Source: Company, Angel Research
SIPL Management expects all 4 BOT projects to be operational in FY2017E. Once
all the 12 BOT projects are operational, SIPL is expected to report revenues of
`752cr, reflecting 25.2% top-line sales during FY2015-17E. Accordingly, we
expect SIPL to see improvement in their cash flow cycle, going forward.
Strong revival trends in traffic growth…
SIPL’s road projects portfolio had been adversely impacted earlier due to slow
down in macroeconomic activity as commercial vehicle traffic growth was almost
muted, resulting in low single digit traffic growth seen across the road portfolio.
However, with some signs of economic recovery now being seen and some of the
road projects’ traffic growth is already seeing sharp recovery. We expect this traffic
growth recovery trend to gradually catch-up, going forward, driven by (1) higher
commercial vehicle traffic on account of recovering macros, and (2) higher growth
in non-bulk commodity traffic, for which roads are preferred mode of transport.
We expect the road traffic to grow north of 5-7% CAGR over the next three years.
Exhibit 4: Traffic/ Volume growth (on yoy basis)
Name of the SPV
3QFY2015 4QFY2015 1QFY2016
Bijapur-Hungund Tollway Pvt. Ltd.
5.2
9.8
8.2
Ahmedabad Ring Road Infrastructure Ltd.
11.8
19.5
8.8
Aurangabad Jalna Tollway Ltd.
17.9
16.2
7.7
Hyderabad Yadgiri Tollway Pvt. Ltd.
10.5
12.2
16.5
Dhule Palesner Tollway Ltd.
10.5
2.7
0.8
Source: Company, Angel Research
The table above highlights that SIPL’s several projects have witnessed improvement
in traffic in the last few quarters.
August 28, 2015
5
SIPL | IPO note
SIPL derives strength from SEL; has proven execution track record
SIPL derives strength from its parent SEL, which is one of the leading road
infrastructure companies in India. SEL is the EPC contractor for most of SIPL’s
projects. Leveraging its domain expertise and experience, SEL has been able to
complete most of SIPL’s projects on schedule; in fact, some of the projects have
been completed ahead of schedule. Further, SIPL’s contracts with SEL are fixed
term-fixed price EPC contracts, implying that any cost escalation has to be
absorbed by SEL.
SEL is financially sound with a robust Balance Sheet. Owing to these factors, SEL is
a pre-qualified bidder for NHAI awards with respect to large public infrastructure
projects for developing and operating road assets. Further, there is a non-compete
agreement between SEL and SIPL to bid for BOT projects. We expect SIPL to gain
support from SEL in bidding for large ticket projects. The relationship also provides
comfort to lenders regarding the financing options for SIPL’s projects.
SIPL to gain from recent re-financing & possible debt repayments
SIPL is currently sitting on a consol. debt of `6,342cr, which translates into a D/E
ratio of 7.9x.
SIPL expects to use ~`265cr of the IPO proceeds towards debt repayment to one
of its key lenders ICICI Bank and its promoter entity SEL. This debt repayment
initiative could potentially translate to savings on interest expenses (on yearly basis)
north of ~`29cr.
Also, the company claims that it has re-financed 5 BOT projects. Table below
highlights the details of the BOT projects re-financed:
Exhibit 5: Savings on Interest Exp. post the recent re-financing..
Int. rate
Int. rate
Swing
Debt o/s
Savings on
Name of the SPV
(earlier)
(current)
(in bps)
(4QFY2015)
Int. exp.
Maharashtra Border Check Post
12.8
11.5
125
892
11
Bijapur-Hungund Tollway Pvt. Ltd.
11.6
10.3
125
642
8
Aurangabad Jalna Tollway Ltd.
11.6
10.4
120
166
2
Hyderabad Yadgiri Tollway Pvt. Ltd.
11.5
10.4
115
373
4
Dhule Palesner Tollway Ltd.
11.6
10.3
125
1,020
13
Totals (` cr)
3,093
38
Source: Company, Angel Research
Based on our estimates, yearly savings on the interest expenses resulting from this
re-financing exercise could be to the tune of `38cr.
On the whole, the proceeds from the IPO towards debt repayment and recent SPV
level re-financing could translate to yearly savings on interest expense to the tune
of `67cr.
August 28, 2015
6
SIPL | IPO note
Risks & Concerns
1. Operational road projects are susceptible to political risks as agitation by any
political party may impact toll collections adversely. For example, toll
collection at SIPL’s RPTPL project was adversely impacted by protests made by
local political parties.
2. Execution delays on projects under development could affect the outlook on
company’s Debt levels as well as project level IRRs.
3. Any slowdown in traffic at a rate in excess of the company’s expectations could
affect project level IRRs, as well as overall D/E profile of the company.
4. Once Dedicated Freight Corridor (DFC) commences operations, there exists
possibility for some of SIPL’s road projects to see possible slowdown in the
traffic growth. Any such slow-down in the traffic growth in later stages of the
project, may not have been factored by the company at the time of bidding,
thereby this could act as risk to the IRR assumptions of the company.
August 28, 2015
7
SIPL | IPO note
Financial Performance
SIPL’s revenue increased 2.8x during FY2012-15 to `500cr in FY2015 (Tolling and
Annuity income accounts for majority of the revenues) reflecting commencement of
tolling of new projects in the portfolio. Also, the consolidated revenues capture the
impact of SIPL re-structuring, where toll projects have been transferred to SIPL at
book-value over a period of time.
Exhibit 6: Revenue growth driven by commencement of new projects
FY2012
FY2013
FY2014
FY2015
SIPL- Consol. Revenues
176
287
371
500
SIPL- Toll & Annuity Income
101
198
318
473
Rohtak Panipat Tollway Pvt. Ltd.
85
Bijapur-Hungund Tollway Pvt. Ltd.
86
95
104
Ahmedabad Ring Road Infra. Ltd.
74
73
72
85
Aurangabad Jalna Tollway Ltd.
27
28
28
35
Nagpur Seoni Expressway Ltd.
20
61
38
38
Hyderabad Yadgiri Tollway Pvt. Ltd.
11
38
45
Maha. Border Check Post Network Ltd.
30
84
SPV Toll & Annuity Income
121
259
302
477
Source: Company; Note: Totals may not add-up as SIPL's shareholding in SPVs has changed
SIPL’s road portfolio was impacted due to slowdown in the economy, which gets
reflected in the weak traffic data (as seen mainly during FY2013-14).
Exhibit 7: Higher Interest expenses eat in-to EBITDA
FY2012
FY2013
FY2014
FY2015
EBITDA
93
170
242
309
EBITDA Margin (%)
52.9
59.0
65.1
61.7
Depreciation Expenses
22
50
92
141
Interest Expenses
72
195
355
526
PAT
10
(46)
(156)
(302)
Source: Company
Although SIPL has reported EBITDA profit at the SPV level for almost all projects in
its portfolio, higher interest expenses have led the company report net losses.
Surge in the consolidated debt profile of the company, in our view, is on account
of (1) stake purchases in the SPVs, and (2) equity funding of the projects under
construction.
Losses at the PAT level since FY2013 have eroded overall networth of the consol.
entity from `971cr in FY2013 to `788cr in FY2015. Despite the uptick in the traffic
numbers across their road portfolio, with 3 new projects likely to commence
operations in the next 10 months (as highlighted by the Management), there exists
a possibility for the company to continue reporting losses for next few quarters.
Our view that SIPL would continue to report losses stems from the point that peak
debt requirement of the company (assuming no new projects are added/ acquired)
would be at ~`8,262cr by FY2017.
August 28, 2015
8
SIPL | IPO note
Exhibit 8: Debt Outlook
Particulars
(` cr)
Current Debt o/s (at FY2015-end)
6,342
Debt repayment (from IPO proceeds)
(265)
Incremental Debt from ongoing proj. (inc. IDC)
980
Payment to DPTL (inc. SPV level debt)
1,205
Peak Debt o/s
8,262
Source: Company, Angel Research
The incremental debt requirement of the company would be towards new projects,
and payment to acquire Dhule Palesnar Tollways Ltd. (DPTL) project.
August 28, 2015
9
SIPL | IPO note
Valuation
Even though SIPL has reported strong top-line growth in the past led by
commencement of new BOT projects, the profitability of the company has been
impacted owing to higher interest and depreciation expenses.
Considering (1) uptick in traffic volumes across projects, and (2) commencement of
3 BOT projects in the next 10 months and 4th one getting operational in FY2017E,
we are optimistic that the company would continue to report strong set of top-line
numbers going forward. The commencement of 4 BOT projects during FY2016-
17E and DPTL stake purchase should push the debt to higher levels. We expect
SIPL’s consol. debt to increase from `6,342cr (as of FY2015-end) to peak to
`8,262cr by FY2017E. Increase in debt should translate to further increase in
SIPL’s interest expenses (this would be despite SIPL utilizing part of IPO proceeds
towards debt repayment).
In absence of direct peers for comparison purposes, we have compared SIPL with
3 related companies, namely IL&FS Transportation Networks (ITNL), IRB
Infrastructure Developers (IRB Infra) and Ashoka Buildcon. It be noted that
financials mentioned below capture EPC business financials of these 3 companies.
Exhibit 9: Peer group comparison Table
FY2015
D/E
Int. Cov.
RoE
EV/EBITDA
EV/Sales
Price/BV
Company Name
CMP M-Cap
(x)
(x)
(%)
(x)
(x)
(x)
SIPL *
103
3,628
7.9
0.3
(37.5)
29.9
18.5
4.1
Ashoka Buildcon
176
3,283
2.8
1.9
6.2
13.7
3.0
2.1
ITNL
93
2,285
4.1
1.0
7.5
12.9
4.0
0.4
IRB Infra
229
8,053
2.6
2.4
13.7
8.4
4.8
2.0
Average
3.2
11.7
3.9
1.5
Source: Company, Angel Research, Bloomberg; Note:* Excluding market cap. SIPL numbers capture pre-IPO shares o/s for valuation purpose; CMP as of
August 27, 2015
On comparing with related companies for FY2015 numbers, SIPL has the highest
D/E ratio of 7.9x (vs peers’ 3.2x), lowest interest coverage ratio of 0.3x (vs peers’
range of 1.0-2.4x) and negative RoE returns (vs peers’ 6.2-13.7% range). Despite
the comparatively poor financials, at higher-end of IPO price band (`103/share),
SIPL is trading at FY2015-EV/EBITDA multiple of 29.9x (vs the peers’ average of
11.7x) and FY2015-P/BV of 4.1x (vs the peers’ average of 1.5x).
We understand that SIPL’s return ratios reflect depressed financials on account of 4
projects getting operational during 2012-14 and these projects being in early
stages of operations were reporting losses.
Alternatively, we tried checking whether the company is fairly priced on sum-of-
the-parts based valuation methodology, where we valued BOT projects on FCFE
basis and deducted the standalone entity’s debt from the gross business value. For
our valuation exercise, we have assigned Ke of 14% for projects under construction
stages and 12% for operational projects.
August 28, 2015
10
SIPL | IPO note
Exhibit 10: Sum-of-the-Parts based valuation
Disounted
Project
Adj. FCFE
Value/
% of
Particulars
Proj. Type
Basis
FCFE (` cr)
Stake
Value (` cr)
share (`)
SoTP
Road BOT projects
Maharashtra Border Check Post Network Ltd
Service Fee
1,094
78%
851
24.2
24
Ke of 12%
Rohtak-Panipat BOT Project
Toll
401
100%
401
11.4
11
Ke of 12%
Bijapur-Hungund BOT Project
Toll
489
77%
377
10.7
11
Ke of 12%
Ahmedabad Ring Road
Toll
549
100%
549
15.6
15
Ke of 12%
Aurangabad-Jalna BOT Project
Toll
321
100%
321
9.1
9
Ke of 12%
Hyderabad-Yadgiri BOT Project
Toll
374
100%
374
10.6
11
Ke of 12%
Nagpur-Seoni BOT Project
Annuity
33
100%
33
0.9
1
Ke of 12%
Shreenathji-Udaipur BOT Project
Toll
488
100%
488
13.9
14
Ke of 14%
Bhilwara-Rajsamand BOT Project
Toll
348
100%
348
9.9
10
Ke of 14%
Rohtak-Hissar BOT Project
Toll
364
100%
364
10.3
10
Ke of 14%
Mysore-Bellary BOT Project
Annuity
107
74%
79
2.3
2
Ke of 14%
Dhule-Palesnar BOT Project
Toll
498
100%
498
14.1
14
Ke of 12%
SIPL Standalone Debt- FY2016
(1,127)
(32)
Grand Total
5,066
3,556
101
100
Source: Company, Angel Research
On using the sum-of-the-parts based valuation methodology, we arrive at FY2017
based fair price of `101/share, which leaves less potential to generate returns
from this IPO. Hence, we suggest a NEUTRAL rating on the issue.
Exhibit 11: BOT Projects details
Prop. Stake
Lane
Awarded
Concession
TPC
Debt o/s
Name of the SPV
Proj. Type
(%)
kms
by
(in yrs.)
(` cr)
(` cr)
Rohtak Panipat Tollway Pvt. Ltd.
100
Toll
324
NHAI
25.0
1,213
975
Bijapur-Hungund Tollway Pvt. Ltd.
77
Toll
389
NHAI
20.0
1,323
834
Ahmedabad Ring Road Infrastructure Ltd.
100
Toll
306
AUDA
20.0
501
371
Aurangabad Jalna Tollway Ltd.
100
Toll
263
MSRDC
23.6
275
166
Hyderabad Yadgiri Tollway Pvt. Ltd.
100
Toll
143
NHAI
23.0
513
373
Maharashtra Border Check Post Network Ltd.
78
Service Fee
NA Maha. SG
24.6
1,426
1,141
Dhule Palesner Tollway Ltd.
100
Toll
534
NHAI
17.9
1,420
1,020
Nagpur Seoni Expressway Ltd.
100
Annuity
55
NHAI
20.0
278
190
Shreenathji-Udaipur Tollway Pvt. Ltd.
100
Toll
317
NHAI
27.0
1,151
639
Bhilwara-Rajsamand Tollway Pvt. Ltd.
100
Toll
349
NHAI
30.0
676
127
Rohtak Hissar Tollway Pvt. Ltd.
100
Toll
395
NHAI
22.0
1,272
444
Mysore Bellary Highway Pvt. Ltd.
74
Annuity
387
Karnat. SG
10.0
811
482
Source: Company, Angel Research; Note: NA- Not Applicable; Last 4 BOT projects mentioned above are under construction stage
August 28, 2015
11
SIPL | IPO note
Profit & Loss Statement (Consolidated)
Y/E March (` cr)
FY12
FY13
FY14
FY15
Net Sales
176
287
371
500
% Chg
153.2
63.2
29.2
34.8
Total Expenditure
83
118
129
191
Operating Expenses
65
97
89
141
Employee benefit Expense
6
10
16
24
Other Expenses
12
10
25
26
EBITDA
93
170
242
309
% Chg
107.9
82.1
42.5
27.8
EBIDTA %
52.9
59.0
65.1
61.7
Depreciation
22
50
92
141
EBIT
72
120
150
168
% Chg
107.4
67.1
25.4
12.1
Interest & Financial Charges
72
195
355
526
Other Income
23
28
22
28
PBT
23
(47)
(184)
(330)
Exceptional Items
0
0
0
0
Tax
13
5
12
0
% of PBT
56.6
nmf
nmf
nmf
PAT before losses of MI & Associates
10
(52)
(196)
(330)
Share of Loss attributable to MI
2
13
40
28
Share of Profit/ (Loss) from Ass. Co.
(2)
(7)
0
0
Net Profit
10
(46)
(156)
(302)
% Chg
(0.9)
nmf
nmf
nmf
PAT %
5.6
(15.9)
(42.0)
(60.3)
Adj. EPS
0.3
(1.5)
(5.0)
(9.7)
% Chg
(0.9)
nmf
nmf
nmf
August 28, 2015
12
SIPL | IPO note
Balance Sheet (Consolidated)
Y/E March (` cr)
FY12
FY13
FY14
FY15
Sources of Funds
Equity Capital
26
28
28
311
Reserves Total
820
943
792
477
Networth
847
971
820
788
Minority Interest
126
159
186
57
Total Debt
2,791
3,643
4,902
6,204
Other Long-term Liabilities
0
418
2,241
2,233
Long-term Provision
39
11
38
100
Total Liabilities
3,804
5,202
8,188
9,382
Application of Funds
Net Block & Capital WIP
3,319
4,744
7,781
9,013
Goodwill on Consolidation
50
48
45
118
Investments
17
9
105
8
Other Current Assets
10
44
14
92
Sundry Debtors
0
1
14
14
Cash and Bank Balance
124
52
52
170
Loans & Advances
101
91
35
63
Current Liabilities
190
182
434
514
Net Current Assets
45
5
(318)
(174)
Other Assets
373
397
575
417
Total Assets
3,804
5,202
8,188
9,382
August 28, 2015
13
SIPL | IPO note
Cash Flow Statement (Consolidated)
Y/E March (` cr)
FY12
FY13
FY14
FY15
Profit/ (Loss) before tax
23
(47)
(184)
(330)
Depreciation & Amortization
22
50
92
141
Other Adjustments
(22)
(27)
(13)
(27)
Change in Working Capital
26
(25)
86
54
Interest & Financial Charges
72
195
355
526
Direct taxes paid
(14)
(12)
(12)
(7)
Cash Flow from Operations
107
134
325
356
(Inc)/ Dec in Fixed Assets
(1,323)
(921)
(905)
(1,135)
(Inc)/ Dec in Invest., Int. recd. & Oth. Adj.
(135)
17
(34)
(70)
Cash Flow from Investing
(1,458)
(904)
(939)
(1,206)
Inc./ (Dec.) in Borrowings
1,480
869
1,037
1,390
Issue/ (Buy Back) of Equity
224
215
68
124
Dividend Paid (Incl. Tax)
0
0
0
0
Finance Cost
(281)
(387)
(490)
(549)
Cash Flow from Financing
1,423
698
615
965
Inc./(Dec.) in Cash
72
(72)
0
116
Opening Cash balances
52
124
52
52
Closing Cash balances
124
52
52
168
Ratio Analysis (Consolidated)
Y/E March
FY12
FY13
FY14
FY15
Valuation Ratio (x)
EV/Sales
33.4
23.7
21.7
18.5
EV/EBITDA
63.0
40.1
33.3
29.9
EV / Total Assets
1.5
1.3
1.0
1.0
Per Share Data (`)
Adj. EPS
0.3
(1.5)
(5.0)
(9.7)
Book Value
27.2
31.2
26.4
25.3
Returns (%)
RoCE (Pre-tax)
2.5
2.9
2.9
2.6
Angel RoIC (Pre-tax)
2.0
2.6
2.6
2.5
RoE
1.3
(5.0)
(17.4)
(37.5)
Leverage Ratios (x)
D/E ratio (x)
3.3
3.8
6.0
7.9
Interest Coverage Ratio (x)
1.0
0.6
0.4
0.3
August 28, 2015
14
SIPL | IPO note
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