4QFY2013 Result Update | Infrastructure

May 15, 2013

IRB Infrastructure
Performance Highlights
Quarterly highlights - Consolidated
Y/E March (` cr) Net sales Op. profit Net profit 4QFY13 948 423 151 4QFY12 851 384 120 3QFY13 914 408 143 % chg (yoy) 11.4 10.1 25.6 % chg (qoq) 3.8 3.6 5.9

BUY
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Net debt Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others Abs. (%) Sensex IRB 3m 2.9 6.7 1yr 23.3 10.6 62.9 4.0 22.6 10.5 3yr 18.4 (54.0) Infrastructure 4,131 7,300 1.3 161/104 403,669 10 20,213 6,147 IRBI.BO IRB@IN

`124 `157
12 Months

Source: Company, Angel Research

For 4QFY2013, IRB Infrastructure (IRB) reported a healthy set of numbers and was above street expectations. The companys revenue came below our expectation owing to delay in toll collection at IRDP-Kolhapur BOT project which led to lower-than-expected BOT revenue for the quarter. However better-than-expected performance at the EBITDAM level and lower tax expense led to healthy growth at earnings level. In accordance with its strategy to declare ~20% of post-tax consolidated profit towards dividend, IRB declared an interim dividend of `1/share. Strong performance continues: IRBs top line witnessed a growth of 11.4% yoy to `948cr in 4QFY2013 and was below our estimate of `1,104cr. The growth was mainly due to healthy execution pace in the under-construction BOT projects. The E&C segments revenue grew by 10.6% yoy to `691cr (our estimate was `638cr) while the BOT segment witnessed 12.7% yoy growth to `289cr (our estimate was `310cr). On the EBITDAM front, IRBs margin came in at 44.6% in 4QFY2013, indicating a decline of 53bp on a yoy basis and was higher than our estimate of 44.0%. Stable input prices and strong execution led to EBITDAM of 30.7% (excluding other income) for E&C segment. Interest cost came in at `158cr, indicating a growth of 3.0% on a yoy basis. At the earnings front, IRB reported PAT of `151cr (our estimate was `187cr), an increase of 25.6% yoy owing to better-than-expected operating performance and lower tax expense. Outlook and valuation: IRB has a robust order book of `6,431cr (2.4x FY2013 E&C revenue, excluding O&M orders), which lends revenue visibility. IRB is currently pre-qualified to submit bids for projects worth `28,000cr and is targeting order inflow of `3,000cr-4,000cr over FY2014. The stock trades at FY2014E and FY2015E P/B of 1.1x and 1.0x respectively. We maintain our Buy view on the stock with a target price of `157.

Key financials (Consolidated)

Y/E March (` cr) Net Sales % chg Adj.Net Profit % chg EBITDA (%) FDEPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x) OB/sales(x) Order inflow %chg
Source: Company, Angel Research

FY2012 3,133 28.5 496 9.6 43.7 14.9 8.3 1.4 18.8 12.4 3.0 6.9 3.0 (1,058) na

FY2013A 3,687 17.7 557 12.2 44.3 16.7 7.4 1.3 18.2 10.6 3.2 7.1 2.4 2,693 na

FY2014E 3,997 8.4 522 (6.2) 45.5 15.7 7.9 1.1 15.2 9.2 3.5 7.6 3.1 3,384 25.7

FY2015E 4,312 7.9 553 5.9 46.4 16.6 7.5 1.0 14.5 8.4 3.7 8.0 3.5 3,574 5.6

Viral Shah
022-39357800 Ext: 6842 viralk.shah@angelbroking.com

Please refer to important disclosures at the end of this report

IRB Infrastructure | 4QFY2013 Result Update

Exhibit 1: 4QFY2013 performance (Consolidated)

Y/E March (` cr) Income from operations Total expenditure Operating profit OPM (%) Interest Depreciation Non operating income Nonrecurring items/Div. from SPV's Profit Before tax Tax PAT Share of Profits/ (Losses) of Asso. Share of Profits/ (Losses) of MI PAT after MI and Share of Assoc. PAT (%) FDEPS (`)
Source: Company, Angel Research

4QFY13 948 525 423 44.6 158 109 32 188 34 154 3 151 15.9 4.5

4QFY12 851 467 384 45.1 153 102 33 163 45 117 (3) 120 14.1 3.6

% chg(yoy) 11.4 12.5 10.1 (53)bp 3.0 7.8 (4.1) 15.5 31.2 (195.1) 25.6 179bp 25.6

3QFY13 914 506 408 44.6 159 113 33 168 27 141 (1) 143 15.6 4.3

% chg(qoq) 3.8 3.9 3.6 (6)bp (1.2) (3.0) (2.7) 11.4 9.0 (296.4) 5.9 32bp 5.9

FY2013 3,687 2,054 1,633 44.3 615 442 130 707 153 554 (3) 557 15.1 16.7

FY2012 3,134 1,764 1,370 43.7 546 297 125 652 155 497 0 497 15.9 15.0

% chg(yoy) 17.7 16.5 19.2 57bp 12.6 48.7 3.9 8.4 (1.4) 11.4 12.0 (76)bp 12.0

Exhibit 2: Segmental revenue break-up (Consolidated)

Particulars Construction segment BOT segment Total Income Construction segment BOT segment EBITDA Construction segment (%) BOT segment (%) EBITDAM (%) Construction segment BOT segment Financial expenses Construction segment BOT segment Depreciation & Amortisation Construction segment BOT segment PBT Construction segment BOT segment PAT after minority interest
Source: Company, Angel Research

4QFY13 691 289 980 206 245 451 29.8 84.8 46.0 56 97 154 14 96 109 135 52 188 88 66 154

4QFY12 625 257 881 186 227 414 29.9 88.5 46.9 43 106 150 15 86 102 128 35 163 87 30 117

% chg 10.6 12.7 11.2 10.2 8.1 9.0 (11)bp (367))bp (93) bp 30.3 (8.3) 2.9 (9.9) 10.9 7.8 5.8 51.1 15.5 0.5 120.5 31.2

3QFY13 666 280 947 197 243 441 29.6 86.7 46.6 61 99 159 14 99 113 123 46 168 83 59 141

% chg 3.7 3.2 3.5 4.1 0.9 2.3 10bp (187)bp (54)bp (7.4) (1.1) (3.5) (1.4) (3.2) (3.0) 10.4 14.3 11.4 6.3 12.8 9.0

FY2013 2,729 1,088 3,817 816 947 1,763 29.9 87.0 46.2 238 377 615 54 387 442 524 182 707 352 202 554

FY2012 2,277 981 3,258 629 870 1,499 27.6 88.7 46.0 136 414 551 57 240 297 435 216 651 299 197 496

% chg 19.8 11.0 17.2 29.8 8.9 17.7 229bp (165)bp 20bp 74.3 (8.8) 11.8 (5.6) 61.7 48.7 20.5 (15.6) 8.5 17.8 2.2 11.6

May 15, 2013

IRB Infrastructure | 4QFY2013 Result Update

Exhibit 3: 4QFY2013 Actual vs Angel estimates

Parameter (` cr) Revenue EBITDA Interest PBT Tax PAT
Source: Company, Angel Research

Estimates 1,104 486 159 248 62 187

Actual 948 423 158 188 34 151

Variation (%) (14.1) (13.0) (0.9) (24.3) (45.7) (19.3)

Sturdy execution continues

IRBs top line witnessed a growth of 11.4% yoy to `948cr in 4QFY2013 and was below our estimate of `1,104cr. The growth was mainly due to healthy execution pace in the under-construction BOT projects (Jaipur-Deoli ~`76cr, TalegaonAmravati ~`26cr, Pathankot-Amritsar ~`165cr, Tumkur-Chitradurga ~`163cr and Ahmedabad-Vadodara `240cr). The E&C segments revenue (including other income) grew by 10.6% yoy to `691cr (our estimate was `640cr) while the BOT segment (including other income) witnessed 12.7% yoy growth to `289cr (our estimate was `310cr). Completion achieved by IRB on various under-construction projects is as follows: Jaipur-Deoli 95%; Talegaon-Amravati 95%; Pathankot-Amritsar 80%; and Tumkur-Chitradurga 75%. IRB has achieved provisional certificate for Talegaon-Amravati and has started partial toll collection in 1QY2014. The construction activity on Pathankot-Amritsar and Tumkur-Chitradurga BOT projects is moving as per schedule and management expects to complete the projects by June 2013 and December 2013 respectively.

Under-construction/development projects update

Kolhapur project: As per management state government has issued provisional certificate for IRDP-Kolhapur BOT project and expects to commence toll collection by May end. MVR infra: MVR Infrastructure and Tollways Pvt Ltd has become a subsidiary of the company from October 1, 2012. The gross toll collection revenue for the full year stood at `29cr. Ahmedabad-Vadodara: During the quarter, the company has started toll collection on the existing four lane expressway from January 1, 2013. The gross toll collection for 4QFY2013 stood at `29cr. Goa-Kundapur: IRB is waiting for LOA from NHAI for this recently bagged project; once received, it would commence construction activity on the project. Sindhudurg airport project: IRB has got all the necessary clearances for a greenfield airport in Sindhudurg district in Maharashtra and expects the construction to start soon. The total project cost is estimated to be `350cr and the EPC contract for the project has been awarded to L&T. The project has a concessionaire period of 95 years which includes 18 months of construction period.

May 15, 2013

IRB Infrastructure | 4QFY2013 Result Update

Exhibit 4: Strong performance continues

1200.0 1000.0 800.0 600.0 400.0
736 22.3 11.5 746 10.9 851 980 14.9 845 914 22.5 50.1

Exhibit 5: Segmental break-up of revenue (` cr)

60.0 50.0 40.0 30.0 20.0 11.4
948 800 700 600 500 400 300 200

750 262

0.0
2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 Net Sales (` cr, LHS) Growth (yoy %, RHS)

0 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 E&C (` cr) BOT (` cr)

Source: Company, Angel Research

Source: Company, Angel Research

BOT toll revenue

On the toll collection front, Bharuch-Surat BOT project witnessed a healthy traffic growth of 10% yoy while Surat-Dahisar and Mumbai-Pune BOTprojects witnessed 2% and 3% yoy growth in traffic for 4QFY2013. Owing to ban in mining activity and adjusted for the hike in toll rates, Tumkur-Chitradurga saw a decline in traffic growth of 2% yoy for the quarter. Overall, on the toll collection front, IRB reported a growth of 22.1% yoy to `395cr in 4QFY2013 with an average toll collection of `4.4cr/day from its existing BOT portfolio. IRB expects toll revenue to grow around 10-12% on a yearly basis as a result of higher WPI and traffic growth.

Exhibit 6: Road BOT project-wise toll revenue growth

Project Name Surat Dahisar BOT Project^ Mumbai Pune BOT Project Thane Bhiwandi Bypass 4 Lane BOT Project Thane Ghodbunder BOT Project Pune Nashik BOT Project Pune Sholapur BOT Project Nagar Karmala Tembhurni BOT Project Mohol Mandrup Kamtee BOT Project Kharpada Bridge BOT Project Bharuch Surat BOT Project $ Kaman Paygaon BOT Project ** Khambatki Ghat BOT Project * Tumkur Chitradurga
#

4QFY13 120 104 18 8 6 5 4 2 2 44 0 0 39 15 29 395

4QFY12 % chg(yoy) 107 99 17 8 6 4 4 2 2 37 0 0 38 0 0 323 12.3 4.3 9.0 2.6 1.7 4.5 2.9 (19.0) 0.0 18.4 4.5 22.1

3QFY13 116 105 17 8 6 4 4 2 2 39 0 0 39 15 0 357

% chg(qoq) 3.5 (1.3) 5.2 1.3 (1.7) 7.0 (5.3) (5.6) 4.8 13.6 0.0 0.0 0.0 10.7

FY2013 444 416 69 31 24 18 15 8 9 161 0 0 160 29 29 1411

FY2012 401 398 63 29 23 17 14 8 8 143 0 0 126 0 0 1229

% chg(yoy) 10.8 4.7 9.4 6.5 4.0 5.4 4.2 -5.1 2.4 12.7 0.0 0.0 0.0 14.8

Ommalur -Salem- Namakkal #* Ahmedabad-Vadodara (EW)# ^ Total

Source: Company, Angel Research; Note: * Concession period of Khambatki Ghat BOT project ended on May 3, 2009, ^ Surat-Dahisar commissioned on February 20, 2009, $ Bharuch-Surat BOT project commissioned on September 25, 2009, ** Kaman-Paygaon BOT project concession period stopped from November 22, 2009, # Tumkur- Chitradurga Project commissioned on June 4, 2011; #* Project acquired in October-2012 by purchase of 74% of equity stake in the Project, #^ Toll Collection at Ahmeadba- Vadodara Expressway has been started from January 1, 2013

May 15, 2013

691 289

528 238

526 253

625 257

622 257

666 280

200.0

10.0

100

IRB Infrastructure | 4QFY2013 Result Update

Impressive show on the EBITDA and earnings front

On the EBITDAM front, IRBs margin came in at 44.6% in 4QFY2013, indicating a decline of 53bp on a yoy basis and was higher than our estimate of 44.0%. Owing to strong execution of its under-construction BOT projects and stable input prices, EBITDAM for E&C segment came in at 30.7% (excluding other income). The Management expects to maintain these margins going ahead as well, given that input prices are unlikely to change significantly. On the BOT front, EBIDTAM (including other income) decline by 367bp/187 on a yoy/qoq basis to 84.8% in 4QFY2013. Depreciation came in at `109cr an increased by 7.8% yoy and was in-line with our estimate. Interest cost grew by 3.0% yoy to `158cr in 4QFY2013. At the earnings front, IRB reported PAT of `151cr (our estimate was `187cr), an increase of 25.6% yoy owing to better-than-expected operating performance and lower tax expense during the quarter.

Exhibit 7: EBITDA margin steady

450 400 350 300 250 200 150 100 321 342 384 425 381 408 423 50 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 EBITDA (` cr), LHS) EBITDAM (%, RHS) 43.7 43.4 45.8 45.1 45.0 44.6 44.6 48.0 47.0 46.0 45.0 44.0 43.0 42.0 41.0

Exhibit 8: Healthy performance on the earnings front

160.0 17.6 15.0 14.1 14.5 14.3 15.6 15.9 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 110 131 120 142 121 143 151 4.0 2.0 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 PAT (` cr, LHS) PATM (%, RHS)

140.0
120.0 100.0 80.0 60.0 40.0 20.0 0.0

Source: Company, Angel Research

Source: Company, Angel Research

May 15, 2013

IRB Infrastructure | 4QFY2013 Result Update

Outlook and valuation

Based on the current order book mix we have revised our estimates downwards for FY2014 and introduce our FY2015 estimate respectively.

Exhibit 9: Change in estimates

FY2014E Earlier Estimates Revenues (` cr) EBITDA Margins (%) PAT (` cr)
Source: Company, Angel Research

FY2015E Variation (%) (3.7) 2.5 (7.4) Earlier Estimates 4,332 46.4 539 Revised Estimates 4,332 46.4 539 Variation (%) 3,997 45.5 522

Revised Estimates

4,152 44.4 564

In accordance with its strategy to declare ~20% of post-tax consolidated profit towards dividend, IRB declared an interim dividend of `1/share during the quarter. IRB has a robust order book of `6,431cr (2.4x FY2013E E&C revenue, excluding O&M orders), which lends revenue visibility. Although a slowdown in order awarding by NHAI in road sector has been witnessed in FY2013; IRB expects ordering activity to improve going ahead. IRB is currently pre-qualified to submit bids for projects worth `28,000cr and is targeting order inflow of `3,000cr4,000cr over FY2014. We have used sum-of-the-parts (SOTP) method to value the stock. We value the construction business at a P/E of 5x FY2015E earnings and IRBs BOT projects on a DCF basis at a CoE of 14%. We have not included the Sindhudurg airport project, real estate business and the 4-star hotel in Kolhapur in our SOTP valuation. We maintain our Buy rating and target price of `157, indicating an upside of 27%.

May 15, 2013

IRB Infrastructure | 4QFY2013 Result Update

Exhibit 10: SOTP break-up

Particulars IRB's construction business Total Road BOT projects Thane Bhiwandi Bypass Kharpada Bridge Nagar - Karnala - Tembhurni Mohol - Mandrup - Kamtee Pune - Solapur Pune - Nashik Mumbai - Pune Thane Ghodbunder Surat Dahisar Bharuch - Surat IRDP, Kolhapur Pathankot - Amritsar Talegaon - Amravati Jaipur- Deoli Tumkur - Chitradurga Ahmedabad- Vadodara Omallur Salem -Namakkal Goa/Karnataka Border to Kundapur Total Real Estate Net debt Grand Total
Source: Company, Angel Research

Segment Construction

Driver Multiple Value (` cr) 299 5 1,493 1,493

Value per share (`) 45 45 10 1 2 1 3 5 48 4 7 7 8 14 7 14 9 (9) 2 5 136 0 (23) 157

Proportionate stake (%) 28.6 28.6 6.3 0.6 1.1 0.9 2.0 2.9 30.6 2.4 4.3 4.1 4.8 8.7 4.2 9.2 5.5 (5.7) 1.2 3.1 86.2 0.0 (14.7) 100.0

Basis P/E of 5x one year rolling forward earnings

Toll Toll Toll Toll Toll Toll Toll Toll Toll Toll Toll Toll Toll Toll Toll Toll Toll Toll Real Estate 1,500 0

330 29 59 46 103 152 1,601 126 226 217 251 453 219 480 286 (300) 65 164 4,340 0 (770) 5,063

NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% NPV at CoE of 14% No value ascribed given the pending court case Standalone net debt

Exhibit 11: Key assumptions

Project Status KM Issuing Auth. State Concession (Yrs) Con. Start Con. End TPC (` cr) Equity (` cr) Debt (` cr) Grant (` cr) Traffic Grth (%) Toll inc (%) Int Rate (%) 4 BOT Projects Oper. 24 PWD Mah. 18.5 Jan-99 May-17 104 34 70 5% 5% Kharpada Oper. 1 MORTH Mah. 17.8 Nov-97 Aug-15 32 10 22 5% 0% NKT Oper. 60 PWD Mah. 15.0 Nov-01 Dec-16 37 15 22 5% 5% MMK Oper. 33 PWD Mah. 16.0 May-02 May-18 18 7 11 5% 5% PuneSolapur Oper. 26 MORTH Mah. 16.0 Mar-03 Mar-19 63 18 45 5% 3% PuneNashik Oper. 30 MORTH Mah. 18.0 Sep-03 Sep-21 74 6 68 5% 5% MumbaiPune Oper. 206 MSRDC Mah. 15.0 Aug-04 Aug-19 1,292 105 1,187 5% #18% 10.6% Thane Ghod Oper. 15 MSRDC Mah. 15.0 Dec-05 Dec-20 249 32 217 5% 5% BharuchSurat Oper. 65 NHAI Gujarat 15.0 Jan-07 Jan-22 1,470 198 1,272 5% 7/6/5% 10.8% Surat Dahisat Under Dev. 240 NHAI Guj./Mah 12.1 Feb-09 Mar-21 2,535 785 1,750 5% 5% 10.5% IRDP Kolhapur Under Dev. 50 MSRDC Mah. 30.0 Jan-09 Jan-39 430 172 258 (27.0) 5% 5% 11.5% PathankotAmritsar Under Dev. 102 NHAI Punjab 20.0 Apr-10 Mar-30 1,442 391 924 126.9 5% 5% 10.5% Jaipur Deoli Under Dev. 146 NHAI Rajasthan 25.0 Apr-10 Mar-35 1,705 499 900 306.0 5% 5% 10.5% TalegaonAmravati Under Dev. 67 NHAI Mah. 22.0 Apr-10 Mar-32 885 194 475 216.0 5% 5% 10.5% TumkurChitradurga Under Dev. 114 NHAI Karnataka 26.0 Jun-11 May-37 1,142 311 831 140.4 5% 5% 10.5% A'bad Baroda Under Dev. 102 NHAI Gujarat 25.0 Apr-12 Apr-37 4,920 1,420 3,500 6/5% 5% 11.0%

Source: Company, Angel Research, Note: #Once in three years; $ IRB had shared 38% of its FY2011 revenue with NHAI and the same increases by 1% every year; @ IRB is expected to pay a sum of `309.6cr to NHAI from FY2013 and the sum increases by 5% every year

May 15, 2013

IRB Infrastructure | 4QFY2013 Result Update

Exhibit 12: Angel EPS forecast vs consensus

Angel forecast FY2014E FY2015E
Source: Company, Angel Research

Bloomberg consensus 15.9 17.4

Variation (%) (1.2) (4.4)

15.7 16.6

Investment arguments
Integrated business model: IRBs integrated business model ensures the timely completion of projects, reduces its reliance on subcontractors and controls costs. Further, it allows capturing the entire value in the BOT development business, including EPC margins, developer returns and operation and maintenance (O&M) margins. OB/Sales provide good revenue visibility: The order book of `6,431cr, excluding O&M orders (2.4x FY2013 E&C revenue), lends good revenue visibility for the next few years. Negligible dependence on capital markets: IRBs internal accruals (cash flows from the E&C and BOT segments) would substantially fund equity requirement of its current portfolio. Further, the company would be able to keep its debt-equity position within reasonable limits.

Concerns
Delay in order awarding: IRB, being a road-focused player, is dependent on NHAI for road awarding activity. Thus, any slowdown from NHAIs end would affect IRBs order inflow. However, given the huge bidding pipeline of NHAI, IRB should perform well, as it is one of the market leaders. Interest rate: BOT projects are inherently high-leverage projects. Hence, IRBs business model is vulnerable to interest rate fluctuations, and any hike in interest rates could increase the companys interest costs. Commodity risks: Road players are facing pressures from the recent price inflation in commodities such as cement and steel, which directly affect margins. Company background Incorporated in 1998, IRB is the pioneer and one the largest players in the road BOT business in India, with strong in-house integrated execution capabilities. IRBs road business can be divided into two verticals: 1) engineering and construction (E&C); and 2) toll collection and maintenance. The E&C arm complements its BOT vertical and leads to time and cost control for projects in hand/under development. The company also has one airport project, which is at a very nascent stage; decent land bank; and one small wind mill project.

May 15, 2013

IRB Infrastructure | 4QFY2013 Result Update

Exhibit 13: Recommendation summary

Company ABL CCCL IRB Infra ITNL IVRCL JP Assoc. L&T NCC Punj Lloyd Sadbhav Simplex In. Unity Infra CMP 221 12 124 178 20 76 36 54 114 113 32 TP Rating FY12 255 Buy - Neutral 157 Buy 230 Buy 35 Buy 90 Buy 45 Buy - Neutral 153 Buy 164 Buy 45 Buy 1,853 1,931 3,687 6,645 3,773 Top-line (` cr) FY13E 1,928 2,281 3,997 7,444 6,287 FY14E 2,234 2,492 4,312 8,041 6,836 9.8 13.6 8.1 10.0 34.6 8.2 14.1 11.3 12.2 32.2 12.0 12.0 16.0 (3.3) 16.7 26.8 (3.9) 2.2 63.4 3.1 (0.2) 1.5 14.1 12.7 EPS (`) 18.0 0.7 15.7 29.8 2.3 2.5 75.1 4.1 0.5 7.3 18.0 14.6 22.2 2.0 16.6 32.1 3.0 2.9 84.8 4.8 0.9 7.8 23.4 14.9 17.7 (0.3) 9.4 13.8 15.7 24.6 131.3 28.8 8.0 13.8 (3.7) 7.4 6.6 34.3 24.9 11.8 78.0 8.0 2.5 P/E 12.3 17.7 7.9 6.0 8.7 29.9 21.0 8.9 15.6 6.3 2.2 10.0 6.0 7.5 5.5 6.7 26.5 18.6 7.6 58.4 14.6 4.8 2.1 OB/ 2.3 2.2 2.4 2.2 4.9 2.7 3.3 1.9 3.3 2.5 2.0 CAGR (%) FY12 FY13E FY14E CAGR (%) FY12 FY13E FY14E Sales(x)

13,358 14,850 15,631 60,837 69,586 79,247 5,863 1,565 6,026 2,180 6,576 2,511 6,824 2,455 7,264 2,736 7,563 2,734 11,717 12,954 14,740

1,580 1,795 Accu.

- 107.3

Source: Company, Angel Research

Exhibit 14: SOTP break-up

Company ABL CCCL IRB Infra ITNL IVRCL JP Assoc. L&T NCC Punj Lloyd Sadbhav Simplex In. Unity Infra Core Const. ` 87 16 45 80 15 24 1,358 25 64 54 164 45 % to TP 34 100 29 35 43 27 76 57 100 35 100 100 ` 23 Real Estate % to TP 25 ` 168 112 120 7 99 Road BOT % to TP 66 71 52 16 65 Invst. In Subsidiaries ` 20 437 % to TP 57 24 ` 30 43 12 Others % to TP 13 48 27 Total ` 255 16 157 230 35 90 1,795 44 64 153 164 45

Source: Company, Angel Research

May 15, 2013

IRB Infrastructure | 4QFY2013 Result Update

Profit & loss statement (Consolidated)

Y/E March (` cr) Net Sales Other operating income Total operating income % chg Total Expenditure R.M. consumed Construction expenses Employee expenses SG&A EBITDA % chg (% of Net Sales) Depreciation & Amortisation EBIT % chg (% of Net Sales) Interest & other Charges Other Income (% of PBT) Share in profit of Associates Recurring PBT % chg Extraordinary Expense/(Inc.) PBT (reported) Tax (% of PBT) PAT (reported) Add: Share of earnings of asso. Less: Minority interest (MI) Prior period items PAT after MI (reported) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) % chg FY2010 FY2011 FY2012 FY2013A FY2014E FY2015E 1,705 1,705 71.9 906 450 335 71 50 799 82.1 46.9 182 617 90.2 36.2 251 51 12.2 417 93.8 417 13.3 3.2 403 17.9 385 385 119.2 22.6 11.6 11.6 119.2 2,438 2,438 43.0 1,350 413 769 93 76 1,088 36.2 44.6 225 863 39.8 35.4 352 64 11.2 576 38.2 576 111.7 19.4 464 11.7 452 452 17.4 18.6 13.6 13.6 17.4 3,133 3,133 28.5 1,764 639 886 138 101 1,369 25.8 43.7 297 1,072 24.3 34.2 546 125 19.2 651 13.1 651 155.2 23.8 496 0.0 496 496 9.6 15.8 14.9 14.9 9.6 3,687 3,687 17.7 2,054 682 1,125 156 122 1,633 19.3 44.3 442 1,192 11.1 32.3 615 130 18.4 707 8.5 707 153.0 21.7 554 (3.1) 557 557 12.2 15.1 16.7 16.7 12.2 3,997 3,997 8.4 2,178 731 1,159 164 124 1,819 11.4 45.5 592 1,226 2.9 30.7 704 140 21.1 662 (6.2) 662 143.5 21.7 519 (3.1) 522 522 (6.2) 13.1 15.7 15.7 (6.2) 4,312 4,312 7.9 2,311 780 1,224 177 129 2,001 10.0 46.4 690 1,311 6.9 30.4 760 151 21.5 702 5.9 702 151.9 21.7 550 (3.1) 553 553 5.9 12.8 16.6 16.6 5.9

May 15, 2013

10

IRB Infrastructure | 4QFY2013 Result Update

Balance sheet (Consolidated)

Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Preference Capital Reserves & Surplus Shareholders Funds Minority Interest Total Loans Deferred Tax Liability Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Current Assets Cash Loans & Advances Other Current liabilities Net Current Assets Mis. Exp. not written off Total Assets 4,019 551 3,467 880 45 1,148 510 438 199 482 666 1 5,060 4,132 769 3,362 2,507 55 2,055 1,200 600 255 810 1,245 6,620 1,065 5,554 2,445 14 2,845 1,821 778 246 791 2,054 8,227 1,506 6,720 3,587 117 62 2,721 1,471 970 280 853 1,867 12,354 10,969 2,099 8,870 4,026 117 72 2,432 951 1,153 328 1,103 1,328 14,413 15,682 2,789 12,894 2,670 117 82 2,594 889 1,344 361 1,554 1,040 16,803 332 1,708 2,040 78 2,915 27 5,060 332 2,100 2,433 90 4,624 23 332 2,524 2,857 112 7,072 26 332 2,923 3,256 109 8,963 26 12,354 332 3,285 3,618 106 10,663 26 14,413 332 3,678 4,011 103 12,663 26 16,803 FY2010 FY2011 FY2012 FY2013A FY2014E FY2015E

7,170 10,067

7,170 10,067

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IRB Infrastructure | 4QFY2013 Result Update

Cash flow statement (Consolidated)

Y/E March (` cr) Profit before tax Depreciation Change in Working Capital Less: Other income Direct taxes paid Cash Flow from Operations (Inc.)/ Dec. in Fixed Assets (Inc.)/ Dec. in Investments Other income Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances FY2010 FY2011 FY2012 FY2013A FY2014E FY2015E 417 107 141 (51) (13) 601 66 51 429 (76) 9 362 95 415 510 576 218 111 (64) (112) 729 (10) 64 0 1,709 (60) (3) 1,647 690 510 1,200 651 295 (188) (125) (155) 478 41 125 (0) 2,448 (72) 25 2,401 621 1,200 1,821 707 442 (163) (130) (153) 702 (2,750) (48) 130 (2,668) 1,891 (160) (115) 1,616 (350) 1,821 1,471 662 592 19 (140) (143) 990 (3,180) (10) 140 (3,050) 1,700 (160) 1,540 (520) 1,471 951 702 690 226 (151) (152) 1,315 (3,358) (10) 151 (3,217) 2,000 (160) 1,840 (62) 951 889

(984) (1,740) (2,425)

(867) (1,686) (2,259)

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IRB Infrastructure | 4QFY2013 Result Update

Key Ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Dupont Analysis EBIT margin Tax retention ratio Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) ROCE (Pre-tax) Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) WC cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage 1.2 3.0 2.5 1.4 3.1 2.5 1.8 3.8 2.0 2.3 4.6 1.9 2.7 5.3 1.7 2.9 5.9 1.7 0.5 40 5 62 133 0.6 25 5 125 112 0.6 19 3 168 109 0.5 20 1 130 113 0.4 22 1 128 125 0.3 20 2 156 135 13.2 20.3 20.4 14.1 24.2 20.2 12.4 23.2 18.8 10.6 18.4 18.2 9.2 14.9 15.2 8.4 11.7 14.5 36.2 96.8 0.4 14.2 9.0 1.2 20.3 35.4 80.6 0.5 13.2 7.5 1.3 20.6 34.2 76.2 0.4 11.5 7.1 1.6 18.6 32.3 78.3 0.4 9.8 6.0 2.1 17.5 30.7 78.3 0.3 7.9 5.6 2.5 13.6 30.4 78.3 0.3 7.0 5.1 2.8 12.3 11.6 11.6 17.1 1.9 61.4 13.6 13.6 20.4 1.5 73.2 14.9 14.9 23.9 1.8 85.9 16.7 16.7 30.0 4.0 98.0 15.7 15.7 33.5 4.0 108.9 16.6 16.6 37.4 4.0 120.7 10.7 7.3 2.0 1.6 3.8 8.2 1.3 9.1 6.1 1.7 1.2 3.1 6.9 1.1 8.3 5.2 1.4 1.4 3.0 6.9 0.9 7.4 4.1 1.3 3.2 3.2 7.1 0.9 7.9 3.7 1.1 3.2 3.5 7.6 1.0 7.5 3.3 1.0 3.2 3.7 8.0 0.9 FY2010 FY2011 FY2012 FY2013A FY2014E FY2015E

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IRB Infrastructure | 4QFY2013 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report . Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

IRB Infra No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors.

Ratings (Returns):

Buy (> 15%) Reduce (-5% to -15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

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