Brics PCG recommends a "Buy" on IVRCL Infrastructure. The report states that the company has put up an excellent Q4 FY06 performance, in line with expectations.It has reported sales of Rs 1521.4 crore in FY06, which comes close to the estimate of Rs 1525 crore. It has shown stronger than expected momentum in its EBITDA margin, which increased to 8.8% in FY06, surpassing estimates of 8.3% as well as the 8.2% registered in FY05.The report maintains its margin forecasts of 8.7% and 9% for FY07 and FY08 respectively and has a positive outlook on the company.IVRCL has maintained its order book position at Rs 600 crore, which includes BOT projects of about Rs 110 crore. This is 3.9x FY06 sales, thus providing a very strong outlook going ahead.The management further expects to expand margins to between nine and 10%.
