IRB Infrastructure Expects Second Half Of Fiscal Better For Business

The second half of the current fiscal will be better for business due to rise in toll revenue, according to Anil Yadav, director of investor relations at IRB Infrastructure Developers Ltd.

The company reported a 25% spike in toll collection in November, and this growth rate is likely to continue in the coming months as well, Yadav told NDTV Profit.

The company has projected 20% growth in toll collection in the second half of FY24.

It has opened up the Hyderabad Outer Ring Road, and the full impact of it will be visible during this period, according to Yadav.

It is expecting a 20-25% rise in toll prices in the present year and in FY25, he said.

IRB Infrastructure's Build-Operate-Transfer projects contribute to two-thirds of the Ebitda, he said.

Yadav expects 50 basis points improvement in margin of the engineering, procurement and construction business, as raw material prices are likely to reduce.

IRB Infrastructure has secured orders worth Rs 18,000 crore in the last one year, keeping aside its win from the National Highways Authority of India. The order book is close to Rs 35,000 crore, of which Rs 10,000 crore is in the EPC segment. The EPC orders will likely take 2.5 years for execution.

As far as the new order from NHAI is concerned, a Letter of Award has been issued and the company will form a special purpose vehicle, Yadav said.

On Monday, IRB Infrastructure received an order for tolling, operation, maintenance and transfer of the Gwalior-Jhansi and Kota bypass from NHAI.

• Build-Operate-Transfer and Toll-Operate-Transfer will be given priority, as there is high competition in the Hybrid-Annuity Model segment.

• Margin of 80-85% in BOT segment is likely to continue.

• Growth in fast track revenue has improved efficiency, and experience of customers.

• Due to government push for fast track, more growth will be visible in this segment.

• IRB Infrastructure has plans to monetise non-core assets.