indiabull
08-09-2008, 08:09 AM
PBA Infrastructure Ltd. is engaged in the execution of civil engineering projects and specialises in construction of highways, dams, runways and heavy RCC structures, bridges and other infrastructure projects for various government bodies. It is executing projects from Kashmir to Kanyakumari and has taken up new works like toll collection and quarrying to augment its income. For FY08, it posted an EPS of Rs.11 with 30% rise in sales as well as PAT to Rs.371 cr. and 14.60 respectively. However for Q1FY09, it reported de-growth as revenue fell by 15% to Rs.84.50 cr. and profit decreased by 30% to Rs.3.35 cr. But the company has been regularly bagging new orders and its current order book position is quite impressive at around Rs.700 cr. A couple of days back, it bagged a huge road construction order of Rs.122 cr. from the Muncipal Corporation of Pune. Fundamentally, the company has a huge debt of Rs.170 cr. because of which its interest cost is very high. Hence to fund its working capital requirement and reduce the high cost debt, the company is contemplating to make preferential allotment of 30 lakh warrants to the promoters and promoter group. Meanwhile for FY09, it is estimated to clock a turnover of Rs.425 cr. with PAT of Rs.17 cr. This translates into an EPS of Rs.13 on its current equity of Rs.13.50 cr. A good bet for the medium-term