IL&FS Transportation’s (ITNL) Q3FY16 results were boosted by stake sale in subsidiary. Revenue, at R2,190 crore (up 12% y-o-y), was aided by the R310 crore revenue booked from stake sale in Rapid Metro project. Impact of higher interest expense (up 57% y-o-y) and depreciation cost (up 43% y-o-y) was mitigated by higher other income, resulting in PAT coming in at R160 crore.
The company raised R740 crore through a rights issue in the quarter and utilised to lower leverage to 4x at Q3FY16 end. ITNL ended the quarter with order book of R139 billion (3.4x TTM EPC revenues). We are discontinuing coverage on the stock.
Adjusted for the stake sale, ITNL’s Q3FY6 revenues declined 3% y-o-y. The company booked profit of R2.95 billion from the stake sale. As a result, EBITDA margin came in at 36.1%, up 904bps y-o-y and 92bps sequentially. High other income of R1.5 billion (up 84% y-o-y) boosted PAT despite higher depreciation and interest costs. The order book stands at R139 billion.
Debt currently stands at R269 billion, up 2% sequentially.
