IVRCL Infrastructure - 21-Jul-2014
IVRCL Infra’s (IVRCL) Q2FY14 numbers were spurred by top line growth. Revenue at INR11.2bn (our estimate INR9.2bn) jumped 13% YoY. However, INR460mn exceptional costs led to EBITDA margin declining 290bps YoY to 4.2%, resulting in a net loss of INR1.2bn (our estimate INR428mn loss) during the quarter. While the company’s revenue visibility remains strong, high debt due to stretched working capital is a concern. Maintain ‘HOLD’ with target price of INR13/share.