IVRCL Infra - Time For Value Unlocking

IVRCL Group Turnover Exceeds Rs.25000 Million In 2006-07

The Board of Directors of IVRCL Infrastructures & Projects Limited (IVRCL) at their meeting held on 28.05.2007 have considered the financial performance of the company for the year 2006-07.

Mr. E.Sudhir Reddy, Chairman & Managing Director stated that IVRCL has achieved an accelerated growth and crossed a turnover of Rs.25000 million during the year 2006-07. The turnover of the company increased by 222% while the Profit After Tax (PAT) increased by 250% compared to the turnover and profits of 2004-05.

IVRCL Group has achieved a turnover of over Rs.25185 million - an increase of 47% over the previous financial year 2005-06. The consolidated Profit After Tax (PAT) of Rs.1689 million against Rs.1078 million for the previous year indicates an increase of 57%.

Yearly Performance

The Company on stand alone basis achieved a turnover of Rs.23465 million for the financial year 2006-07 as against Rs.15214.23 million for the previous financial year recording a growth rate of 54%. The Earnings before Interest, Depreciation and Taxes (EBIDTA) increased by 70% from Rs.1400 million in the previous financial year to Rs.2375 million for the financial year 2006-07. The Profit After Tax (PAT) has increased by 53% from Rs.930 million in the previous financial year to Rs.1415 million in the financial year 2006-07.

Quarterly Performance

The quarterly results for the 4th quarter of 2006-07 indicate a growth of 67.5% over the corresponding quarter of the previous year in having recorded gross income of Rs.10093.33 million as against Rs.6025.77 million during the last quarter of the previous financial year.

EPS

The EPS of the Company is Rs.12.40 (on 129662390 shares) as against Rs.8.84 (on 105188095 shares) of the previous year. The EPS growth has been achieved on an expanded capital. The company has raised Rs.5550 million improving its networth to Rs.13189 million as on March 31, 2007 helping in its financial pre-qualification.

Dividend

Considering the overall performance of the company the Board at its meeting held on 28.05.2007 has recommended a dividend of Re.1/- per share of Rs.2/- each resulting in 50%.

Performance of Subsidiaries

a) Hindustan Dorr-Oliver Limited

The company’s acquisition of M/s. Hindustan Dorr-Oliver Limited (HDO) has resulted in great advantage for both the companies and the operations of HDO are streamlined to include execution of contracts on EPC basis as well. The company has achieved a gross turnover of Rs.2146 million as against Rs.1457 million recording an increase of 47%. The Profit After Tax (PAT) has also increased by 137% from Rs.65 million to Rs.154 million resulting in an EPS of Rs.4.32/-.

b) IVR Prime Urban Developers Limited

IVR Prime Urban Developers Limited (IVR PUDL) – the Urban Infrastructure subsidiary of IVRCL, has recorded revenue of Rs.1478 million for the financial year 2006-07 as against Rs.1364 million in the previous year and the net profit increased from Rs.117 million in the previous year to Rs.213 million in the year 2006-07.

The company plans to develop around 57 million square feet of residential and commercial projects over a period of five years. The company received observation card from Securities and Exchange Board of India (SEBI) for its proposed Initial Public Offer (IPO). The issue is expected to be completed in next couple of months complying with the SEBI observations.

BOT Projects

The company’s Special Purpose Vehicle viz.., Chennai Water Desalination Limited (CWDL) is setting up the desalination plant on DBOOT (Design, Built, Own, Operate and Transfer) in technical collaboration with BEFASA CTA of SPAIN to supply drinking water to the people of Chennai. The project is estimated to cost Rs.4900 Million and having achieved the financial closure, commenced execution. This project was highly commended for Global Water Awards 2007 by Global Water Intelligence as one of the “Desalination Deal of the Year”.

The Company’s three NHAI Road BOT projects aggregating to 150 Km in length with total investment of approximately Rs.12000 million have all commenced execution and have achieved around 20% financial progress. These projects are in the high traffic growth corridors like Salem-Coimbatore and Jalandhar-Amritsar.

We are extremely happy to inform that IVRCL was rated by Standard & Poor’s and CRISIL Limited, as sixteenth amongst India’s Top 100 Corporates based on certain financial parameters while evaluating the credit trends of 100 selected corporates based on their credit profiles. It may also be noted that IVRCL is the only corporate under “Building & Development” segment of Indian Industry, that has achieved this position.

Contribution to Exchequer

The contribution of the company to the exchequer by way of Direct & Indirect Taxes has increased from Rs.140 million in 2004 to Rs.830 million in the year 2006-07.

Shareholder Value

The Chairman drew the attention of all that the company allotted shares in the follow on Public Issue in March 2005 of Rs.2/- each @ Rs.79/- (Rs.10/- each @ Rs.395/-) which is now quoting at Rs.340/- which is more than 400% of the investment.

To view the Audited financial results, please click on the link given below:

Audited Financial Results

Source : Business Wire