IRB Infra Q4 Results Review - Inline Performance; Order Pipeline Remains Robust: Motilal Oswal

Motilal Oswal Report

IRB Infrastructure Developers Ltd.’s revenue grew 27% YoY to Rs 20.6 billion in Q4 FY24 (inline). Ebitda margin came in at 43.2% (down 370 bp YoY, below our estimate of 45%). Ebitda grew 17% YoY to Rs 8.9 billion, in line with our estimate.

Higher interest costs of Rs 2.4 billion were attributed to the notional interest accrued on the deferred payment of acquisition costs of concession arrangements in SPV. This increase was partly offset by higher other income. Adjusted profit after tax grew 45% YoY to Rs 1.9 billion, in line.

Construction revenue stood at Rs 14.4 billion, up 31% YoY during the quarter, while BOT revenue stood at Rs 6.2 billion (+18.7% YoY).

During FY24, revenue was up 15.7% YoY to Rs 74.1 billion, Ebitda grew 3% YoY to Rs 33.3 billion, Ebitda margin was 45%, and APAT dipped ~16% YoY to Rs 6 billion.

The order book stood at ~Rs 348 billion (excl. GST) at end-Q4. The operation and maintenance order book stood at Rs 291 billion, while the construction order book stood at Rs 57 billion.

IRB’s performance was in line with our expectation. Given its strong order pipeline of Rs 2 trillion and the company’s track record of winning 25-30% of the project pipeline, we expect IRB’s order inflows to pick up.

With a strong order book of Rs 348 billion as of March-24 and a robust tender pipeline, driven by BOT projects, we expect a revenue compound annual growth rate of ~13% over FY24-26.

We broadly retain our APAT estimates for FY25/FY26. Reiterate Neutral with a revised SoTP-based target price of Rs 61.

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