Sharescart Research Club logo

IL&FS Trans &Network Overview

1. Business Overview

IL&FS Transportation Networks Ltd. (IL&FSTRANS) is an infrastructure development company focused primarily on surface transportation projects in India. Its core business model involves developing, operating, and managing roads, highways, and other transport infrastructure. Historically, it operated through various models including Build-Operate-Transfer (BOT) (both toll and annuity-based), Engineering-Procurement-Construction (EPC) contracts, and Hybrid Annuity Model (HAM) projects. The company aimed to generate revenue through toll collections from operational BOT toll projects, annuity payments from BOT annuity/HAM projects, and construction fees from EPC contracts.

2. Key Segments / Revenue Mix

Historically, IL&FSTRANS's revenue streams typically came from:

Toll-based projects: Revenue generated from collecting tolls on operational highways and roads.

Annuity-based projects: Fixed or semi-fixed payments received from the concessionaire authority (e.g., NHAI) over the concession period.

EPC contracts: Revenue from engineering, procurement, and construction services for infrastructure projects.

Operations & Maintenance (O&M): Fees for maintaining operational projects.

Specific contribution percentages for these segments are not publicly available in detail, especially given the company's current state of resolution.

3. Industry & Positioning

The Indian Engineering - Construction sector, particularly in road infrastructure, is highly competitive, featuring large domestic players (e.g., L&T, IRB Infra, PNC Infratech, Dilip Buildcon, GMR Infra) and some international entities. Historically, IL&FSTRANS was a significant player, particularly in the BOT concession space, with a substantial portfolio of operational and under-construction road assets. However, following the severe financial crisis and resolution process of its parent IL&FS Group, the company's competitive positioning has been severely compromised. Its current focus is on the monetization and divestment of its existing assets as part of the group's resolution, rather than actively bidding for and executing new projects or competing in the market for fresh contracts.

4. Competitive Advantage (Moat)

Historical Advantages (now largely eroded):

Project Execution Capability: Historically, the company had proven experience in developing and executing large-scale and complex road infrastructure projects.

Asset Portfolio: A significant portfolio of operational toll and annuity road assets provided a revenue base.

Funding Access (via parent): Before its crisis, its association with the IL&FS Group potentially facilitated access to project financing.

Current Situation: Due to the financial distress and resolution process, the company's brand reputation is severely damaged, its access to capital markets is virtually non-existent for new projects, and its operational focus has shifted from growth to asset resolution. Therefore, it currently possesses little to no sustainable competitive advantage (moat) in the traditional sense.

5. Growth Drivers

For IL&FSTRANS, in its current state, traditional "growth drivers" are not applicable. The company is primarily in a resolution phase. Its focus is on:

Asset Monetization: Divestment of its operational road assets to maximize recovery for creditors.

Debt Resolution: Reducing liabilities through asset sales and negotiations with lenders.

Historically, growth drivers for infrastructure companies in India included government impetus on infrastructure development, increased budgetary allocations for roads, new project awards by NHAI, and favorable policy frameworks like HAM.

6. Risks

Resolution Process Uncertainty: The overarching risk is the ongoing, complex, and potentially lengthy resolution process of the IL&FS Group, which directly impacts IL&FSTRANS. The timing and valuation of asset sales are uncertain.

Liquidity and Solvency: The company and its parent group faced severe liquidity challenges and are undergoing debt resolution.

Asset Valuation Risks: The ability to divest assets at fair or expected valuations is critical for debt recovery, but market conditions and buyer interest can fluctuate.

Legal & Regulatory Challenges: Potential litigation from various stakeholders (lenders, contractors, shareholders) and regulatory hurdles during the resolution process.

Reputational Damage: The IL&FS crisis has severely damaged the brand, making it impossible to secure new business or financing under its existing identity.

Traffic Risks (for remaining operational toll assets): Lower-than-projected traffic volumes could impact the value of toll-based assets during divestment.

7. Management & Ownership

IL&FS Transportation Networks Ltd. is a subsidiary of IL&FS Ltd., which is currently under a government-appointed board as part of a comprehensive resolution plan for the entire IL&FS Group. The management of IL&FSTRANS, therefore, operates under the direct oversight and strategic direction of this resolution-appointed board. Their primary mandate is to facilitate the orderly resolution of the company, which predominantly involves the monetization of assets to repay creditors and minimize losses, rather than pursuing new business growth or operational expansion. The ultimate ownership structure is intertwined with the complex web of the IL&FS Group and is subject to the ongoing resolution.

8. Outlook

The outlook for IL&FS Transportation Networks Ltd. is fundamentally tied to the success and efficiency of the IL&FS Group's resolution process.

Challenges: The company faces severe financial distress, a damaged reputation, and is not operating as a going concern in the traditional sense of growing its business. The resolution process is complex, lengthy, and the final recovery for various stakeholders remains uncertain. Asset valuations in a distressed sale environment may be lower than historical book values.

Potential for Resolution: The government-appointed board is actively working on asset monetization and debt restructuring across the IL&FS Group, including IL&FSTRANS. A successful and timely divestment of its various road assets could lead to significant debt reduction and some recovery for creditors. The outcome will largely dictate whether any residual value can be unlocked, though the prospects for equity holders are typically very low in such severe distress scenarios. The focus is on value preservation and recovery, not future organic growth.

Want to Start Investing in Top Unlisted Stocks?

Our experts help you choose the right stocks based on performance, risk, and growth potential.

IL&FS Trans &Network Key Financials

Market Cap ₹75 Cr.

Stock P/E -0.1

P/B -

Current Price ₹2.3

Book Value ₹ 0

Face Value 10

52W High ₹4.4

Dividend Yield 0%

52W Low ₹ 1.8

IL&FS Trans &Network Share Price

| |

Volume
Price

IL&FS Trans &Network Quarterly Price

Show Value Show %

IL&FS Trans &Network Peer Comparison

IL&FS Trans &Network Quarterly Results

#(Fig in Cr.) Jun 2016 Sep 2016 Dec 2016 Mar 2017 Jun 2017 Sep 2017 Dec 2017 Mar 2018 Jun 2018
Net Sales 1039 844 795 998 749 686 713 1218 807
Other Income 144 285 224 114 248 334 367 394 229
Total Income 1183 1129 1019 1112 997 1020 1080 1612 1035
Total Expenditure 809 681 632 733 577 508 591 1037 827
Operating Profit 374 448 387 378 420 512 489 575 209
Interest 331 367 349 331 380 422 410 430 489
Depreciation 2 2 3 7 6 6 5 6 5
Exceptional Income / Expenses 0 0 0 0 0 0 0 0 0
Profit Before Tax 40 79 36 41 35 85 73 139 -285
Provision for Tax 22 22 -20 -65 10 25 13 33 -37
Profit After Tax 18 57 56 106 25 60 60 107 -248
Adjustments -18 -57 -56 -106 -25 -60 -60 -107 248
Profit After Adjustments 0 0 0 0 0 0 0 0 0
Adjusted Earnings Per Share 0.5 1.7 1.7 3.2 0.8 1.8 1.8 3.2 -7.5

IL&FS Trans &Network Profit & Loss

#(Fig in Cr.) Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 TTM
Net Sales 1616 2773 3369 3405 3523 4382 3676 3537 180 100 3424
Other Income 85 138 197 267 359 669 843 1173 607 133 1324
Total Income 1701 2910 3566 3672 3882 5052 4520 4709 786 232 4747
Total Expenditure 1079 2213 2717 2813 2744 3945 2922 2705 1705 398 2963
Operating Profit 622 697 849 859 1138 1107 1597 2004 -919 -166 1785
Interest 160 273 399 525 744 1220 1388 1650 1288 19 1751
Depreciation 10 11 11 11 10 10 14 22 21 20 22
Exceptional Income / Expenses 0 0 0 0 0 0 0 0 -14341 -768 0
Profit Before Tax 452 414 439 323 384 -123 196 332 -16569 -973 12
Provision for Tax 164 161 168 57 65 -26 -41 80 432 0 34
Profit After Tax 288 252 271 266 319 -97 236 252 -17000 -973 -21
Adjustments 0 0 0 0 0 0 0 0 0 0 21
Profit After Adjustments 288 252 271 266 319 -97 236 252 -17000 -973 0
Adjusted Earnings Per Share 13.8 12.1 13 11.8 9.5 -3 7.2 7.7 -516.8 -29.6 -0.7

Growth Rates

# 1 Year 3 Year 5 Year 10 Year
Sales CAGR -44% -70% -51% 0%
Operating Profit CAGR 0% NAN% NAN% 0%
PAT CAGR 0% NAN% NAN% 0%
# 1 Year 3 Year 5 Year 10 Year
Share Price CAGR -33% -12% -1% -29%
ROE Average 0% 3% 3% 8%
ROCE Average -90% -82% -45% -15%

IL&FS Trans &Network Balance Sheet

#(Fig in Cr.) Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020
Shareholder's Funds 1785 1944 2125 2982 3580 2706 2829 3076 -13884 -14860
Minority's Interest 0 0 0 0 0 0 0 0 0 0
Borrowings 375 400 1860 2691 4115 6452 8566 8792 0 0
Other Non-Current Liabilities 373 256 334 428 567 744 861 849 219 136
Total Current Liabilities 2320 3440 2930 3626 4898 4728 4388 7112 17291 17851
Total Liabilities 4853 6040 7248 9727 13160 14630 16644 19829 3625 3128
Fixed Assets 37 30 25 29 139 43 140 138 129 80
Other Non-Current Assets 3295 4128 4662 5687 7369 7970 9695 11230 3218 1701
Total Current Assets 1521 1882 2562 4011 5652 6618 6808 8461 279 1346
Total Assets 4853 6040 7248 9727 13160 14630 16644 19829 3625 3128

IL&FS Trans &Network Cash Flow

#(Fig in Cr.) Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020
Opening Cash & Cash Equivalents 143 8 4 5 11 -4 -146 15 58 -146
Cash Flow from Operating Activities 258 422 -32 98 -260 -866 1029 -309 1153 -19
Cash Flow from Investing Activities -531 -910 -395 -997 -2017 -591 -2624 2980 -1528 177
Cash Flow from Financing Activities 138 485 429 904 2286 1314 1756 -2629 171 9
Net Cash Inflow / Outflow -135 -4 1 6 9 -142 161 43 -204 167
Closing Cash & Cash Equivalent 7 4 5 11 20 -146 15 58 -146 21

IL&FS Trans &Network Ratios

# Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020
Earnings Per Share (Rs) 13.81 12.1 13 11.83 9.48 -2.96 7.19 7.65 -516.79 -29.58
CEPS(Rs) 14.28 12.6 13.53 13.91 12.99 -2.67 7.61 8.33 -516.15 -28.97
DPS(Rs) 3.5 4 4 4 4 2 0 0 0 0
Book NAV/Share(Rs) 85.57 93.2 101.88 130.84 126.64 82.27 86 93.52 -422.07 -451.72
Core EBITDA Margin(%) 33.2 20.18 19.35 17.38 22.11 9.99 20.51 23.51 -849.89 -300.23
EBIT Margin(%) 37.86 24.77 24.87 24.91 32.02 25.05 43.07 56.03 -8511.03 -958.47
Pre Tax Margin(%) 27.96 14.92 13.04 9.48 10.9 -2.8 5.32 9.38 -9228.43 -977.74
PAT Margin (%) 17.83 9.1 8.05 7.81 9.05 -2.22 6.43 7.12 -9468.82 -977.74
Cash Profit Margin (%) 18.43 9.48 8.38 8.13 9.33 -2.01 6.81 7.75 -9457.16 -957.7
ROA(%) 6.84 4.63 4.08 3.13 2.78 -0.7 1.51 1.38 -144.96 -28.82
ROE(%) 17.14 13.53 13.33 11.25 10.97 -3.3 8.54 8.53 0 0
ROCE(%) 18.05 16.45 15.91 12.59 12.11 9.39 11.86 12.82 -169.39 -89.99
Receivable days 148.45 120.63 140.39 219.41 271.17 270.4 314.76 292.49 3186.86 192.97
Inventory Days 0 0 0 0 0 0.4 1.36 2.19 39.02 67.82
Payable days 0 0 0 0 0 5234.28 0 0 0 0
PER(x) 15.84 14.86 12.73 9.56 20.03 0 15.22 7.94 0 0
Price/Book(x) 2.56 1.93 1.63 0.86 1.5 0.87 1.27 0.65 -0.01 -0
Dividend Yield(%) 1.49 2.07 2.25 3.45 2.05 2.78 0 0 0 0
EV/Net Sales(x) 3.99 2.33 2.13 2.13 3.53 2.7 4.02 4.25 85.7 153.23
EV/Core EBITDA(x) 10.37 9.28 8.47 8.43 10.93 10.69 9.25 7.5 -16.74 -91.94
Net Sales Growth(%) 91.11 71.59 21.52 1.05 3.48 24.39 -16.11 -3.8 -94.92 -44.58
EBIT Growth(%) -4.79 12.24 22.01 1.22 33.01 -2.7 44.27 25.16 -871.04 93.76
PAT Growth(%) -11.3 -12.41 7.48 -1.89 19.78 -130.57 342.65 6.5 -6852.59 94.28
EPS Growth(%) -11.3 -12.41 7.48 -9.04 -19.83 -131.24 342.65 6.5 -6852.6 94.28
Debt/Equity(x) 1.06 1.4 1.76 1.55 2.08 3.57 4.07 4.39 -1.11 -1.04
Current Ratio(x) 0.66 0.55 0.87 1.11 1.15 1.4 1.55 1.19 0.02 0.08
Quick Ratio(x) 0.66 0.55 0.87 1.11 1.15 1.4 1.55 1.19 0.02 0.07
Interest Cover(x) 3.82 2.52 2.1 1.61 1.52 0.9 1.14 1.2 -11.86 -49.73
Total Debt/Mcap(x) 0.42 0.73 1.08 1.62 1.55 4.08 3.2 6.75 81.73 436.63

IL&FS Trans &Network Shareholding Pattern

# Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026
Promoter 73.22 73.22 73.22 73.22 73.22 72.45 73.22 73.22 73.22 73.22
FII 0 0 0 0 0 0 0 0 0 0
DII 0.57 0.57 0.57 0.51 0.44 0.44 0.44 0.41 0.41 0.41
Public 26.21 26.21 26.21 26.27 26.34 27.11 26.34 26.37 26.37 26.37
Others 0 0 0 0 0 0 0 0 0 0
Total 100 100 100 100 100 100 100 100 100 100

IL&FS Trans &Network News

IL&FS Trans &Network Pros & Cons

Pros

  • Company is almost debt free.

Cons

  • Company has a low return on equity of 3% over the last 3 years.
  • Earnings include an other income of Rs. 133 Cr.
whatsapp