ITD Cementation India Q1 Results Review - Robust Execution: Yes Securities

Yes Securities Report

ITD cementation India Ltd. reported a strong set of numbers, with a strong 33% YoY revenue growth at Rs 18.3 billion led by robust execution while Ebitdam came in at 8.8% (including provision of Rs 290 million for elevated Bangalore metro project).

With an order inflow of Rs 2.5 billion, the orderbook as on Q1 FY24 stood at Rs 185 billion (excluding level-one orders worth Rs 55 billion).

Geographical wise, order book is well-diversified thereby providing a natural hedge from a slowdown in any particular business segment. With healthy Q1 execution, management has revised revenue guidance for FY24E to Rs 65-70 billion with Ebitda margin to close to double digit.

FY24E capex will be at Rs 1.5-2 billion. ITD Cementation being a dominant player in urban infra space with MNC parentage, we remain positive on its

1. healthy and diversified order book (Rs 185 billion as on Q1 FY24),

2. strong execution capabilities,

3. lean balance sheet (debt/equity of 0.5 times) and

4. advanced technology and skilled labour.

With healthy execution in Q1 and strong order inflow guidance of Rs 80-90 billion, we raise FY24E and FY25E revenue estimates by 11%/10% and upgrade the stock to 'Add' with revised target price of Rs 221, assigning a 10 times multiple to its FY25E earnings per share of Rs 22.1.

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