💰 Financial Performance

Revenue Growth by Segment

Standalone gross revenue declined by 70.4% YoY, falling from INR 786.24 Cr in FY 2018-19 to INR 232.42 Cr in FY 2019-20. The Chenani Nashri Tunnelway Limited (CNTL) segment contributed INR 404.40 Cr, representing 4.14% of the consolidated revenue of INR 9,778.92 Cr in FY 2017-18.

Geographic Revenue Split

The company operates primarily in India but maintains international exposure through a 100% stake in Elsamex S.A. (Spain) and a 49% stake in Chongqing Expressway Group (China). Specific regional percentage splits for the current period are not disclosed as normal operations ceased post-September 2018.

Profitability Margins

Profitability remains severely negative; however, the standalone loss (PAT) narrowed from INR 17,000 Cr in FY19 to INR 973 Cr in FY20. Net liabilities stood at INR 14,860 Cr as of March 31, 2020, reflecting a deeply distressed balance sheet.

EBITDA Margin

EBITDA loss narrowed by 81.9%, improving from INR (931.65) Cr in FY19 to INR (168.30) Cr in FY20. This improvement is primarily due to the cessation of normal business operations and the non-recognition of certain costs under the NCLAT-approved resolution framework.

Capital Expenditure

Planned CAPEX is non-existent as the company is in a resolution phase. Recent capital activity includes a strategic infusion of INR 75 Cr into the equity capital of Roadstar Infra Private Limited (Sponsor) to facilitate the restructuring of road assets into an InvIT.

Credit Rating & Borrowing

The company is rated 'CARE D' and 'ICRA D' (Default) across all facilities, including INR 2,241.50 Cr in long-term bank facilities and INR 815 Cr in Non-Convertible Debentures. Borrowing costs were reported at INR 16.70 Cr in FY20, a 98.7% reduction from INR 1,275.55 Cr in FY19, due to the non-recognition of interest post the October 15, 2018 cut-off date.

⚙️ Operational Drivers

Raw Materials

As a service and infrastructure development firm, primary inputs include construction materials (bitumen, steel, cement) and labor; however, specific cost percentages are not disclosed as active construction has largely ceased.

Capacity Expansion

The company is not expanding capacity; instead, it is divesting. It recently completed the sale of its 100% stake in CNTL to Cube Highways for an aggregate consideration of INR 6,145 Cr, which included the settlement of INR 5,454 Cr in debt.

Raw Material Costs

Raw material costs are not currently a primary driver of the P&L due to the halt in new project execution. The focus has shifted to maintenance and toll collection on existing operational assets.

Manufacturing Efficiency

Not applicable as the company is an infrastructure developer. Efficiency is measured by toll collection rebound post-COVID-19 lockdowns.

Logistics & Distribution

Not applicable; revenue is derived from toll collection and project management services.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is defined by debt resolution rather than revenue expansion. The strategy involves a time-bound asset monetization plan aiming for a total group resolution target of INR 61,000 Cr. This includes the sale of investments in Roadstar Infra, Roadstar Investment Managers, and Elsamex Maintenance Services via an Expression of Interest (EOI) process ending January 2026.

Products & Services

Build-Operate-Transfer (BOT) road projects, national and state highways, tunnels, flyovers, bridges, and toll collection services.

Brand Portfolio

IL&FS Transportation (ITNL), Roadstar Infra Investment Trust (ITNL InvIT), Elsamex S.A.

New Products/Services

The company is transitioning assets into the Roadstar Infra Investment Trust (ITNL InvIT) to facilitate debt resolution and provide a structured recovery for lenders.

Market Expansion

No market expansion is planned; the company is exiting markets to repay creditors.

Market Share & Ranking

Historically one of the largest private sector BOT road operators in India, though currently in a liquidation/resolution phase.

Strategic Alliances

The company has a significant partnership with Cube Highways & Infrastructure II Pte. Ltd., which acquired CNTL. It also maintains a 49% JV with Chongqing Expressway Group in China.

🌍 External Factors

Industry Trends

The Indian infrastructure sector is seeing a shift toward InvIT structures for asset recycling. ITNL is following this trend by transferring 93.5% of North Karnataka Expressway Limited (NKEL) to its Sponsor for the Roadstar InvIT.

Competitive Landscape

Key competitors in the asset acquisition space include global infrastructure funds like Cube Highways, which are purchasing ITNL's operational assets.

Competitive Moat

The company's moat was its technical expertise in complex projects like the Chenani Nashri Tunnel (the largest resolved asset), but this advantage is being liquidated to satisfy debt obligations.

Macro Economic Sensitivity

Highly sensitive to GDP growth and industrial activity as these drive commercial vehicle traffic, which is the primary source of toll revenue.

Consumer Behavior

Traffic patterns post-COVID-19 show a rebound, which is critical for the valuation of toll-driven assets currently up for sale.

Geopolitical Risks

International operations in Spain and China are subject to local regulatory and economic conditions, which could impact the valuation of these assets during the divestment process.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the NCLAT-approved Resolution Framework. The company must comply with NHAI standards and state-specific concession agreements for its road portfolio.

Legal Contingencies

The company has made significant impairment provisions including INR 383.84 Cr for loans, INR 310.64 Cr for bank guarantee invocations, and INR 60.71 Cr for investments, reflecting the high legal and financial uncertainty surrounding group recoveries.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the final recoverable value of investments and loans from group companies, which led to an EPS of INR (29.58) in FY20.

Geographic Concentration Risk

Heavy concentration in Indian road assets, making the company vulnerable to domestic regulatory changes and local traffic fluctuations.

Third Party Dependencies

High dependency on the NCLT, NCLAT, and Justice (Retd) D K Jain for approvals of all asset sales and resolution steps.

Technology Obsolescence Risk

Low risk for physical road assets, but digital transformation is being encouraged by the Finance Ministry for the banking partners involved in the resolution.

Credit & Counterparty Risk

Significant credit risk as the company is in default; receivables quality is poor, necessitating massive impairment provisions.