Sources say Litrak is the next target for restructuring. The reason is that it has the most number of highways where toll rate hikes have been delayed.
It is unlikely that the government will agree to the rate hikes. This makes it a good target for a restructuring.
Its financials are healthy. For period ended March 30, 2010 it had debts of Rm1.46 billion while its net operating cash flow was rm220 million.
It was reported earlier that Litrak, the concessionaire of Damansara-Puchong Highway (LDP), is expected to obtain government approval for a toll increase next year (2011). The toll hike could affect traffic for the financial year ending March 2011 but the decrease was not expected to be drastic as LDP is still an important route for commuters especially with the lack of efficient public transportation.
In the financial year ended March 2010, traffic at LDP grew 2.0 per cent year-on-year to 470,000. For the first quarter of the current financial year, Litrak registered a 26.1 per cent year-on-year growth in net profit to RM29.5 million. The net profit was only 20 per cent of our full year estimate as we are expecting the scheduled toll rate hike in 2011.
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