On a growth path

IPO REVIEW

r day Revenue/
per yr (Rs cr) Project
Cost (Rs cr) Start Completion Revenue
Growth Surat-Dahisar239315002712400Jan-0930 mth11-14% Surat Bharuch653150073.71409Jun-0924 mth11-14% Mumbai Pune20631500233.61302Aug-04

Done

11-14% Others16820800125.8NANADone  Total678 704.1NA    Notes:
Revenue per km per day is Rs 31500 based on the existing revenue generated at Mumbai Pune Expressway
Revenue per year is estimated based on the revenue per Km per day multiplied by the number of Km each project has and annualised
Others are the remaining projects and the revenue is based on the current total to all revenue minus the revenue from Mumbai Pune Expressway
We have included Surat-Dahisar Project for the purpose of the projection as the company has emerged as the highest bidder and likely to get the project
Revenue growth in % is based on the estimated traffic growth of 6-8% and tariff growth of 5-6%  Huge construction  Apart from toll revenue that the two new projects will bring in, they will also contribute to the construction and maintenance business, since IRB itself would be undertaking the construction of these projects. Notably, the company also has an order book of Rs 2,325 crore (including Rs 1,400 crore order for Surat-Bharuch toll project). Of these, construction work equivalent to Rs 1,200 crore has to be completed over the next two years besides, maintenance work worth Rs 1,100 crore will accrue over the next 10-12 years.  Add to this, the potential construction order of the Dahisar-Surat project (yet to be awarded to the company), which is estimated at Rs 2,400 crore, the order book for the construction business alone would reach to Rs 3,600 crore, which is to be executed over the next 30 months. At the same time, the order book of maintenance will reach to Rs 2,300 crore, spread over the next 10-12 years or an average of Rs 190 crore per year.  Besides these triggers in the near future, the company, as a part of its long term strategy, proposes to enter the real estate business. The company is in the process of acquiring land and, so far, has acquired 925 acre out of the planned 1,400 acre in and around Pune (in the vicinity of its Mumbai-Pune express highway). On this land, the company intends to develop a township, over the next ten years. The first lot of the saleable area is expected to come in FY10-11. On a conservative basis, if the saleable area is priced at Rs 2,000 per square feet, the total value of the project works out to over Rs 6,000 crore or per share value of Rs 30 per share, as shown in the table. 
 

LAND VALUE
Land (acre)	1400
Land in (Million square fit)	61.0
Saleable land (@0.5 FSI) (mn. sqft)	30.5
Total Value (Rs crore)	6098.4
DCF value (Rs cr)	1500
IRB