BSE: 532481 | NSE: NOIDATOLL | ISIN: INE781B01015
Market Cap: [Rs.Cr.] 662.87 | Face Value: [Rs.] 10
The Noida Toll Bridge Company Limited (NTBCL) was promoted by Infrastructure Leasing& Financial Services Ltd. (IL&FS) as a special purpose vehicle for theimplementation of the Delhi Noida bridge project on a Build, Own, Operate and Transfer(BOOT) basis. The Concession Agreement (Concession) executed between the Company, Promoterand New Okhla Industrial Development Authority (NOIDA) in November 1997, gives the Companythe right to levy a User Fee. The Governments of Uttar Pradesh and National CapitalTerritory of Delhi have, in January 1998, executed a Support Agreement in favour of theProject/ Concessionaire.
The Delhi Noida bridge (commonly known as and hereinafter referred to as the DND Flywayor DND) was opened to traffic in February 2001 and is an eight lane tolled facility acrossthe Yamuna River, connecting Noida to South Delhi with a four lane link to Mayur Viharwhich was commissioned in June 2007 (Phase I)/January 2008 (Phase II).
NTBCL is a publicly listed company with Equity Shares listed on the National StockExchange and the Bombay Stock Exchange in India and GDRs listed on the AIM segment of theLondon Stock Exchange.
Industry Structure and Development / Competition and Threats
NTBCL is an infrastructure company in the Road sector. Although the facility catersspecifically to traffic between Noida/Mayur Vihar and South Delhi, it continues to competewith two free bridges which cross the Yamuna River, namely, Nizamuddin Bridge and OkhlaBarrage/Kalindi Kunj Bridge.
The Okhla Barrage / Kalindi Kunj Bridge is extremely congested during peak hours, whichhad lead the Noida Authority to explore the option of expanding the bridge downstream.According to recent reports, Noida Authority now has plans to build a new six lane bridge.
The Government of Delhi in the meanwhile, has been considering extending the BarapullahNullah Elevated Road (BPNER) across the Yamuna. The Company has informed the Government ofDelhi of various clauses in the Support Agreement executed with the Delhi and the UPGovernments, which prevent them from building another un-tolled ( or lower toll ) bridgeacross the Yamuna in the area between the Okhla Barrage/Kalindi Kunj Bridge and NizamuddinBridge until the DND achieves a certain level of capacity utilisation. The Company alsocontinues to follow up with the Government of Delhi with an alternative option of a directintegration of the BPNER with the DND (rather than extending BPNER across the Yamunariver) as this integration will more efficiently utilise existing infrastructure as wellas save public funds.
Phase II of the BPNER project, which includes additional entry and exit ramps on theRing Road at Sarai Kale Khan, will provide easier access to and from BPNER and DND via theRing Road and is expected to be completed by March 2015. These ramps are expected toincrease traffic on DND.
The Delhi Metro Rail Corporation commenced its metro services in Noida from November13, 2009. The current line caters mainly to commuters travelling between Noida and CentralDelhi. Two new Metro lines, one from Hauz Khas (South Delhi) via Kalkaji and Kalindi Kunjto Botanical Gardens in Noida and the other from Ashram via Nizamuddin to Mayur Vihar andAnand Vihar are under construction and expected to be completed by March 2016. These couldhave a negative impact on two wheeler traffic on the DND, when completed.
Risks and Concerns
The congestion at Ashram crossing, at the Delhi end of the facility, continues to be anarea of concern for commuters, especially during peak hours. The additional ramps beingbuilt on the Ring Road at Sarai Kale Khan in Phase II of the BPNER project as well as theAshram Improvement Plan, is likely to eventually ease the congestion at Ashram crossing.Direct connectivity between BPNER and DND is also expected to ease congestion at SaraiKale Khan/Ashram.
The Companys toll technology is now over 13 years old, making hardwarereplacements difficult. The up-gradation of the toll technology is expected to becompleted within this financial year.
Waiting time at the toll plaza during peak hours can reach 3-5 minutes. While theConcession Agreement allows a waiting time upto 10 minutes, the Company has alreadyinformed NOIDA of a plan to increase the number of lanes at both toll plazas. The Companyis entitled to annual CPI linked/formula driven increases in User Fee which have not beengiven effect to. The last two increases have been partial increases and the annualincrease for FY 2014-15 has also been delayed.
The Concession Agreement provides for traffic risk mitigation measures by allowing NewOkhla Industrial Development Authority (NOIDA) to grant land development rights. TheCompany has in its possession, land around the DND Flyway, which may be developed, subjectto grant of Development Rights by NOIDA/Government of UP/ Government of Delhi and otherrelevant statutory bodies. A proposal was filed with NOIDA and an in-principle approvalreceived on May 16, 2001. Discussions continue with NOIDA/Government of UP, for grant ofthese development rights. The denial of Development Rights or conditional grant of thesame will delay the realization of project Returns as contemplated in the ConcessionAgreement.
Segment-Wise and Product-Wise Performance
The traffic mix on the DND has changed during the year as depicted below:
|Year||Commercial Traffic||Percentage to total traffic||Two Wheeler Traffic||Percentage to total traffic||Cars||Percentage to total traffic||Total Traffic|
|2013 - 14||3,597||3%||22,546||20%||87,447||77%||113,591|
The traffic comprised of cars (77%), two wheelers (20%) and commercial vehicles (3%).The composition of traffic has shown a marginal change compared to the previous year;there has been a decrease in share by 1% (approximately) in Commercial Traffic andincrease by 1% in car traffic. The decrease in commercial vehicles was mainly due to achange in no-entry timings of commercial vehicles in Delhi i.e., from 21:00Hours to 22:00 Hours and also due to a restriction on entry of heavy vehicles on DNDduring repair work and restriction by the U.P administration on sand laden trucks doingmining.
The average daily traffic on the DND was 113,591 vehicles per day in FY 2013-14(previous year 114,721). While it seems that there is a drop in traffic compared to lastfinancial year, this is attributable to significant increase in traffic during December2012 to February 2013 during the partial closure of Kalindi Kunj Bridge for repair anddiversion of comparitive traffic onto DND. If there had not been any impact due to KalindiKunj Bridge closure in the previous year, the traffic growth in this financial year wouldhave been around 2.2%.
There has been 11.85% revenue growth during the year, attributable to increase in tollson April 1, 2013.
In the long run, the traffic levels on the Delhi Noida Toll Bridge are expected toincrease. The plans for improvement of infrastructure and road network in and around theNoida/Greater Noida region are likely to be implemented on priority and will provide thenecessary boost to real estate development and consequently to increase in traffic on theDND.
In addition, the completion of phase II of the BPNER, which includes additional entryand exit ramps on the Ring Road at Sarai Kale Khan, will give commuters on the BPNER (fromSouth Delhi) easier access ( via a short stretch of the Ring Road) to and from DND.Commuters from the DND will then be able to travel, signal free from Noida / Mayur Viharto Moolchand, Defence Colony, Lajpat Nagar, and Jawahar Lal Nehru Stadium / INA Market.These ramps are expected to be completed by March 2015. Based on current and projectedtraffic trends, the expected support for the uninterrupted operation of the toll bridge,escalation of tolls as per the Concession Agreement and the accordance of final approvalsof development rights for which NOIDA has already provided in-principle approval, it isexpected that the project could achieve its target returns/objectives as per theConcession Agreement.
Internal Control Systems and their Adequacy
The toll collection and management system has inbuilt self audit capabilities. It isequipped with an Automatic Vehicle Classification system which safeguards against revenueleakage.
The Company has adequate internal control systems to monitor business and operationalperformance, which are aimed at ensuring business integrity and promoting operationalefficiency. The Company has appointed an independent firm of Chartered Accountants asInternal Auditors to ensure that the Companys systems and practices are designedwith adequate Internal controls to match the size and nature of operations of the Company.
The Internal Auditors conduct a periodic audit and review, covering all areas ofoperations, based on an audit programme approved by the Audit Committee of Directors. TheReports of the Auditors along with the managements responses are placed before theAudit Committee for discussion and necessary action.
Financial and Operational Performance
The Noida Toll Bridge was the first green-field toll bridge and road network projectimplemented in the country on an SPV format without recourse to sponsors or financialguarantees from the Government/NOIDA. With initial traffic being far below projections,the Company has had to go through a series of restructuring measures and was able to payits maiden dividend to its Equity Shareholders only in 2010-11.
The Financial and Operational Performance of the Company for FY 2013-14 and theprevious year is given below:
|Year ended||Year ended|
|Toll Income (Rs /Mn)||993.58||888.35|
|Advertisement & Other Income (Rs/Mn)||250.14||242.02|
|PBT (Rs in Mn)||822.28||659.12|
|PAT(Rs in Mn)||547.53||421.13|
|Average Daily Traffic (Vehicles/day)||113,591||114721|
|Average Toll realisation per vehicle (Rs)||23.76||21.02|
The Company has a lean organization with a strength of 8 employees.
Certain statements in the Management Discussion and Analysis Report describing theCompanys objectives, estimates and expectations or predictions may be forwardlooking statements within the meaning of applicable securities laws and regulations.Actual results could differ from those expressed or implied. Important factors which couldmake a difference to the Companys operations include traffic, government concession,network improvements, changes in government regulations and other incidental factors overwhich the Company does not have any direct control.
|13-Mar-14||Noida Toll Bridge drops ex-dividend|
|25-Feb-14||Noida Toll Bridge Company net profit rises 16.81% in the December 2013 quarter|
|25-Feb-14||Noida Toll Bridge Company net profit rises 51.19% in the September 2013 quarter|
|25-Feb-14||Noida Toll Bridge Company net profit rises 17.68% in the June 2013 quarter|
|25-Feb-14||Noida Toll Bridge Company net profit declines 23.33% in the March 2013 quarter|
|24-Feb-14||Noida Toll Bridge Company net profit rises 14.61% in the December 2012 quarter|
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R K Bhargava , Chairman
Piyush Mankad , Director
Sanat Kaul , Director
Deepak Premnarayan , Director
Company Head Office / Quarters:
Phone : Uttar Pradesh-91-0120-2516438 / Uttar Pradesh-
Fax : Uttar Pradesh-91-0120-2516440 / Uttar Pradesh-
E-mail : firstname.lastname@example.org
Web : http://www.ntbcl.com
Karvy Computershare Pvt Ltd
Plot No 17-24 ,Vittal Rao Nagar ,Madhapur ,Hyderabad-500081
|Scheme Name||No. of Shares|
|PPFAS Long Term Value Fund (G)||86,54,434|
|Goldman Sachs CNX 500 Fund (G)||2,132|
|PPFAS Long Term Value Fund (G)||86,54,434|
|Goldman Sachs CNX 500 Fund (G)||2,157|
|PPFAS Long Term Value Fund (G)||86,54,434|
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