IL&FS Transportation ties-up Rs. 3000 crore loans for road projects

November 8, 2013

Press Trust of India |

New Delhi: IL&FS Transportation Networks Ltd today said it has tied up loans worth over Rs. 3,029 crore for financing road projects in Jharkhand, West Bengal and Maharashtra.The loan agreements have been signed with IndusInd Bank, IL&FS Financial Services and Yes Bank, it said.

“The company was issued a Letter of Award by the National Highways Authority of India (NHAI) for development and operation of six laning of Barwa Adda Panagarh Section of NH-2…in the states of Jharkhand and West Bengal,” the company said in a filing to BSE.

“The financial tie-up of loans aggregating to Rs. 1,704.40 crore has been achieved and the loan agreements have been executed with IndusInd Bank and IL&FS Financial Services Ltd,” the company said.

The project, estimated at Rs. 2,434.86 crore, is on toll basis with a concession period of 20 years, including construction period of 910 days, the company added.

In another filing, the company said it has been awarded project by NHAI “for four laning of Khed-Sinnar Section on NH-50…in the state of Maharashtra under NHDP Phase IV on design, build, finance and operate and transfer basis.”

“The financial tie-up of loans aggregating to Rs. 1,325 crore has been achieved and loan agreements have been executed with Yes Bank Ltd,” it said.

This project, with an estimated cost of Rs. 2015.29 crore, is also on toll basis with a concession period of 20 years, it added.


IL&FS Transportation ties up with Japanese expressway company

September 19, 2013


IL&FS Transportation Network Ltd has said that it has signed a memorandum of understanding with East Nippon Expressway Company (NEXCO East), a Japanese expressway development company, to work together on PPP (public-private-partnership) projects.

The ITNL Group currently manages over 34,000 lane km of highways, of which about 12,000 km are in India.

NEXCO East manages and constructs expressways in eastern Japan. Currently, it manages 3,720 km of expressways, which are used by about 2.7 million customers each day. Toll revenues for 2012 were about $7 billion. The company also has about 280 km under construction.

Both the companies believe that the market for expressways in India is on the verge of a take-off and would become a large programme.

An IL&FS Transportation communiqué to the stock exchanges said the two companies aim to use Japanese technology and finance. The alliance intends to jointly carry out technical and feasibility studies and related work on potential road projects in India for implementation.


IL&FS Transportation gets provisional completion certificate from NHAI for Pune-Solapur road project

September 17, 2013

IL&FS Transportation gets provisional completion certificate from NHAI for Pune-Solapur road project IL&FS Transportation Networks Ltd has informed that the Provisional Completion Certificate was issued by National Highways Authority of India on August 23, 2013 for the Pune-Solapur Road Project which was awarded to the Company on DBFOT (Toll) basis.

 The Company has commissioned the Project 145 days ahead of Scheduled Project Completion Date. The Project is on toll basis with a concession period of’ 19 years and 295 days comprising of Tolling and Operations &Management period of 18 years.

Source : BSE



IL&Engineering to build multilevel automated car parking facility in India

August 17, 2013

IL&FS Engineering and Construction Company Limited has received a letter of intent to construct an integrated multilevel automated car parking facility for Charminar Robo Park Limited for a total value of INR350.40 million ($6.42 million) at Khilwat in Hyderabad, India.

 The scope of work includes design and engineering, civil and structural works, electrical works, interior fit-out works, external infrastructure services and landscape works, HVAC works, PHE works, and HT and LV system works.

Once completed in June 2015, the facility can accommodate 440 cars and 250 scooters in a fully automated fashion. The Multilevel Automated Car Parking facility is an initiative taken by the Greater Hyderabad Municipal Corporation (GHMC) to decongest parking spaces.

IL&FS Engineering and Construction Company Limited operates as an infrastructure development, construction, and project management company in India and internationally.

The company develops and constructs roads, expressways, and highways; residential buildings, commercial buildings, hospital buildings, and industrial structures; irrigation canals and dams; and thermal and hydel power projects.


IL&FS Rail awards Rs 5.7 bn worth contract

August 12, 2013


IL&FS Rail (a subsidiary of Infrastructure Leasing and Financial Services) awarded an approximately Rs 574 crore worth of turnkey project to a consortium of Siemens, Siemens AG and Siemens, China.

The consortium secured the contract, which is valued at about 70 million euros. The consortium is responsible for extension of the Gurgaon metro line with a new 7 km southern line. The line will add six stations in south-east Gurgaon.


Of the order, the share of Siemens is about 30 per cent or Rs 184.1 crore. However, the share of Siemens AG and Siemens, China is not known.


Siemens would deliver seven aluminium-bodied metro trains for the new section of the Gurgaon line. The trains are to run on standard-gauge track at a top speed of about 80 km/h.


The modern signalling and train control system that will ensure required service interval of 120 seconds is achieved during rush-hour traffic. This short headway will enable the metro trains to transport more than 30,000 passengers per hour.


The Gurgaon metro project is a first of its kind in India; the first phase is close to completion. The new southern line of the metro rail link from Sikanderpur station to Sector 56, Gurgaon, will bring respite to the numerous people travelling to the various office complexes and residential areas in this area.


Source -





IL&FS secures major highway widening contract in India

June 20, 2013


India-based transportation infrastructure company IL&FS Transportation Networks (ITNL) has signed a new concession agreement with the National Highways Authority of India (NHAI) for a Rs16.65bn ($304.3m) road widening project in the states of Jharkhand and West Bengal.

To be executed under the National Highways Development Project (NHDP) Phase V on design, build, finance, operate and transfer (DBOFT) basis, the latest project includes six-laning the Barwa-Adda-Panagarh stretch of National Highway 2 (NH-2) from km 398.240 to km 521.120, including the Panagarh Bypass.

The project is set to be implemented on a toll basis, and has a concession period of 20 years, including a 910-day period for construction. ITNL had quoted a premium of Rs420m ($7.68m) for the project.

 {“The project is set to be implemented on a toll basis, and has a

concession period of 20 years,

including a 910-day period for construction.”}

Established in 2000, IL&FS Transportation Networks is a surface transportation infrastructure company and a private sector BOT road operator in India.

The company is involved in the development, operation and maintenance of national and state highways, roads, flyovers and bridges in various states across the country.

IL&FS has also signed a concession agreement with NHAI for Rs13.48bn ($246.48m) four-laning of the Khed-Sinnar section of National Highway 50 (NH-50) in the state of Maharashtra.

The programme will carried out under Phase IV B on DBFOT basis and has a concession period of 20 years, including construction period of 910 days.

Gammon, IL&FS in race for Rae Bareli-Jaunpur road project

July 23, 2012

Nine firms, including Gammon, IL&FS, Sadbhav Engineering, are in the race to develop the highway connecting Rae Bareli with Jaunpur.

Rae Bareli, in UP, is the constituency of the UPA chief, Ms Sonia Gandhi.

The Rs 570-crore project requires a National Highways Authority of India Board approval as bidders have sought more annuity than what was internally estimated by the Government.

This significance in the backdrop of recent concerns when there was a bleak response for projects. The length of the project is 166.40 km and the concession period is 17 years including the construction time of 24 months.

The project will be implemented on a build-operate-transfer (BOT)-annuity mode.

The project covers the districts of Rae Bareilly, Pratapgarh and Jaunpur.




Developers can look forward to bid for some large projects.

The Public Private Partnership Appraisal Committee (PPPAC) has approved the Z-Morh Tunnel in Jammu and Kashmir (Rs 2,773 crore), as also the following road projects: Chakeri-Allahbad (Rs 1,283 crore), Hubli-Hopet (Rs 1,330 crore), Rajsamand-Bhilwara (Rs 668 crore), Handia-Varanasi (Rs 909 crore), Kasgipur-Sitarganj (Rs 606 crore) and Jodhpur-Pali (Rs 333 crore). All the projects will be undertaken on a build-operate-transfer (toll) mode except the J&K project, which will be bid out on BOT (annuity) model. Under the latter, mode, the Government pays a certain amount twice a year to the bid winner to develop and operate the project.

The developers compete on the level of annuity they want during the concession period; and developers do not get to keep the toll revenues.

In BOT-toll mode, the developers get to keep the toll revenues for the concession period.



Opportunity in gloom

December 26, 2011

IL&FS Transportation Networks (ITNL) has seen its stock gradually slide from over Rs 360 last September to its new low (intra-day) of Rs 144 on Wednesday, thanks to weak sentiments in the global and domestic markets.

While it is already India’s largest player in road build-operate-transfer (BOT) projects, IL&FS Transportation Network last week added another feather in its cap when it announced the plan of its China foray. Analysts feel the move is unlikely to benefit it in the medium term, but they remain bullish on its Indian business.

ILandFS Transportation NetworksElara Capital Analyst Abhinav Bhandari says: “We are positive on the company due to its leadership position in the domestic road vertical, strong parentage of IL&FS, partnerships and bilateral contracts with state governments and relatively diversified and de-risked business portfolio.” Notably, stock valuations are now attractive, and, with interest rate cycle at its peak, things should improve in the times to come.

In Rs crore FY11 FY12E FY13E
Net sales 4,048.00 5,418.30 6,824.70
Y-o-Y change (%) 68.5 33.9 26.0
Operating profit 1,155.00 1,347.70 1,627.70
Y-o-Y change (%) 45.5 16.7 20.8
Net profit 433 447.3 527.7
Y-o-Y change (%) 25.9 3.3 18.0
EPS (Rs ) 22.3 23.0 27.2
Y-o-Y change (%) 25.9 3.3 18.0
E: Estimates       All figures are consolidated       Source: Company, Analysts Reports

At Rs 152, the stock trades at one-year forward (FY13) PE of 6.3 times, below its historic band of 7.5-13.5 times, as well as 11.2 times for its closest peer and India’s second-largest BOT player, IRB Infrastructures. Analysts expect an upside of over 50 per cent, given the average sum-of-the-parts (SOTP) of Rs 270.

Towards the Dragon
ITNL has been selected the preferred bidder for 49 per cent stake in Yu He Expressway Company by Chongqing Expressway Group. The project is a four-lane expressway of 58 km, connecting the Chongqing city with Hechuan County, with toll rights till June 2032. The acquisition worth $160 million (49 per cent stake), or around Rs 850 crore, is expected to be funded by debt.

According to a Sharekhan report, the expressway is significant because it connects to a major industrial belt in the Chongqing region, allowing the Chinese company to enjoy a consistent traffic flow through the year and offering a decent growth prospect. Though the project has been operational for the last 10 years and is profitable, the gains for ITNL may be limited in the medium term.

According to ITNL Managing Director K Ramchand, revenue growth will be marginal in the first few years, while addition to net profit will be less than 5 per cent. But it will substantially improve after the next 10 years (total term of the debt).

PINC Research Analyst Vinod Nair adds: “The relatively small size of the project, non-strategic fit (Chinese market not being a long-term policy of ITNL) and the requirement to fund would limit any near-term benefits.”

Stable core business
In India, ITNL’s 22 projects (about 9,458 lane km) is well divided in terms of region, clients (state and central) and revenues model (toll and annuity).

Amid a weakening economy, the company has been selective in bidding for NHAI projects for the past several quarters. The guidance for it was $1 billion worth of order wins in FY12. But it has not won any major order from NHAI so far in FY12. It has bagged only three state government projects worth Rs 870 crore.

However, this is not seen as a concern either by ITNL or analysts. “The cautious bidding would pay off in the long run,” notes the Sharekhan report. Besides, it has enough work, given the order book of Rs 8,900 crore, about four times its FY11 construction revenues.

The management has expressed its intention of continuing its conservative bidding strategy, as it feels competition will continue to remain high. Moreover, the bidding pipeline remains strong at around Rs 68,500 crore (9,500km).

High on debt
For now, high interest cost, given the consolidated debt-to-equity ratio (2.7 times) in the second quarter of FY12 is a concern. In the September quarter, operating profits rose 37 per cent (Rs 383 crore) on 42 per cent rise in income (Rs 1,282 crore), but a 72 per surge in interest costs (Rs 169 crore) restricted gross profit (profit before depreciation and tax) growth to 17 per cent (Rs 214 crore).

The management expects the debt burden to remain at higher levels on the back of increased execution of 12 under-construction projects that could keep interest costs high in the interim.

Positively, rates are peaking. Edelweiss Securities Analyst Parvez Akhtar Qazi believes that the company is one the best plays on peaking interest rates. “A 100-basis-point decline in interest rates increases our SOTP estimates of ITNL by 13 per cent,” he points out.

In Rs crore FY11 FY12E FY13E
Net sales 4,048.00 5,418.30 6,824.70
Y-o-Y change (%) 68.5 33.9 26.0
Operating profit 1,155.00 1,347.70 1,627.70
Y-o-Y change (%) 45.5 16.7 20.8
Net profit 433 447.3 527.7
Y-o-Y change (%) 25.9 3.3 18.0
EPS (Rs ) 22.3 23.0 27.2
Y-o-Y change (%) 25.9 3.3 18.0
E: Estimates       All figures are consolidated       Source: Company, Analysts Reports