Infra-Road Q3 Results Review, Top Sector Ideas By Axis Securities

Axis Securities Report

During the quarter, road infrastructure companies under our coverage reported revenue growth of 7%. Ebitda was flattish, while adjusted profit after tax grew by 4% against our expectation of 14%/11%/13% YoY, primarily owing to underperformance of GR Infra Projects Ltd. and KNR Construction Ltd.

Ebitda margins declined by 30 basis points/120 bps QoQ/YoY. Overall performance remained below our expectations during the quarter

Company-wise performance

PNC Infratech Ltd., HG Infra Engineering Ltd. contributed positively on revenue/Ebitda/adjusted profit after tax fronts, and their performances were largely in line with our expectations.

GR Infraprojects Ltd. and KNR Construction Ltd.'s performance was below our expectations on all counts, which impacted the overall performance.

PSP Projects, KEC International and RITES' performance were below expectation on the Ebitda/PAT front, while Ahluwalia Contracts India Ltd. outperformed on all counts.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit 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 NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.