>RELIANCE INFRASTRUCTURE LIMITED: F2012: A Big Year for EPC

Quick Comment: Reliance Infrastructure reported

F4Q12 standalone revenue of Rs57.3bn (up 142% YoY), 

EBITDA of Rs6.2bn (up 136% YoY), PBT of Rs5.3 bn 

(up 30% YoY) and PAT of Rs6.6bn (up 84% YoY). 

Revenue was 30% higher than our estimate, but 

EBITDA was 9% below and PBT 11% below. The strong 

revenue growth, fueled primarily by EPC revenue of 

Rs43.8bn vs. our forecast of Rs28bn, was muted by the 

150 bps QoQ fall in EPC EBIT margins. While negative 

tax in F4Q (deferred tax assets created and previous 

year taxes included) pushed up PAT, full-year PBT of Rs 

23.3 bn was 3% below our estimate.

Consolidated revenue for the quarter was Rs71.4bn (up 

81% YoY), EBITDA was Rs5bn (up 48% YoY), and PAT 

was Rs4.1bn (up 28% YoY). Interest expense for the 

quarter was high; the infrastructure segment continued 

to contribute negative EBIT to the consolidated results. 

Consolidated book value was Rs918/sh at end F2012.

Key highlights:
• EPC: F2012 EPC revenue was Rs117bn (up 245%  

YoY). We believe significant progress made in 

Reliance Power’s Sasan and Samalkot projects was 

the key reason for the ramp-up in EPC revenue. The 

company expects similar revenue in F2013. The 

EPC order book currently stands at Rs173bn.

• Infrastructure: Infrastructure revenue for the quarter was Rs925mn (up 85% YoY). However, the

segment remained loss-aking with a negative EBIT  

margin of about 29% in the quarter. The company 

has invested Rs43.6 bn in the infra SPVs 

(Rs166/sh).

0.5x trailing consolidated P/B is undemanding, but  

lack of earnings triggers keeps us Equal-weight: 

Execution on Reliance Power and infrastructure projects 

will be critical for stock performance along with an 

improvement in the macro environment.

To read full report: RELIANCE INFRASTRUCTURE