Noida Toll
The main income of this company is the toll which it earns from car plying on its bridge, recognized as DND flyway. It has an eight-lane bridge that connects Noida to South Delhi across River Yamuna, 552.5 metres long with a 27-lane toll collection plaza at the Noida end. The bridge is its main asset and the money which it earns from toll. This business is not seasonal or cyclical and almost everyone goes to work or commutes every day and that means income remains steady. The company has an agreement with Noida wherein it is allowed to earn a designated return of about 20 percent for a 30-year period. Its one-time cost has been on construction of this bridge and the debt which it has on its book is on account of the construction cost. This debt has been coming down consistently. It debt at end of FY05 was at Rs.358 crore and now at end of FY14 stands at around Rs.95 crore. The company hopes to become debt free in the next 12 -15 months.
The business model of the company is good and thus the returns, though always modest, looks good. It ended Q4FY14, with a sequential 3% fall in revenue earned at Rs.30 crore but thanks to the 31% drop in interest outgo due to debt coming down and 28% decline in taxation, it managed to end the quarter with a net profit at Rs.16 crore v/s Rs.15 crore in Q3FY14. NPM has become healthier at 53% v/s 48% (QoQ). It ended the fiscal with a consolidated net profit at Rs.54 crore, up 28%, with NPM of 45%. Cash as at 31st March 2014 stood at Rs.11 crore v/s Rs.5 crore in Fy13.