In This Article:
Release Date: February 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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IRB Infrastructure Developers Ltd (BOM:532947) reported a robust growth in toll revenue, with a 21% increase across private INVIT and key projects like Mumbai Pune and Ahmedabad.
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The company has declared an interim dividend of 10%, amounting to approximately INR 60 crores, reflecting a strong commitment to shareholder returns.
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The total order book stands at INR 31,500 crores, with a significant portion allocated to EPC and O&M projects, indicating a healthy pipeline for future growth.
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The private INVIT has been generating positive cash flow and declared a distribution of INR 54 crores in Q3 FY25, contributing to IRB's cash flow.
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IRB Infrastructure Developers Ltd (BOM:532947) has successfully acquired a significant equity stake in the Ganga Expressway project, which is progressing as per the scheduled timeline.
Negative Points
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The order inflow has been weaker than expected, with significant delays in project bidding, particularly for BOT and TOT projects.
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The construction segment revenue decreased by 16% in Q3 FY25 compared to the previous year, indicating challenges in this area.
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Interest costs have increased by 7%, which could impact profitability if not managed effectively.
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The company has faced delays in the monetization of assets from private to public INVIT, which could affect future capital deployment.
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There is uncertainty regarding the classification of revenue from INVIT operations, which may not provide a clear picture of core revenue performance.
Q & A Highlights
Q: Can you provide an update on the order inflow and what projects are expected in the near future? A: The year started with two TOTs, but due to elections, ordering slowed down. However, we see positive momentum returning with upcoming TOT and BOT bids. We are prepared to participate in these opportunities to enhance company prospects. (Respondent: Unidentified_5)
Q: Have expectations for order inflow been adjusted given the slow progress in the last two months? A: We remain optimistic and have not adjusted our targets. We believe there is still potential to meet our goals, similar to winning in the last over of a cricket match. (Respondent: Unidentified_5)
Q: Why is the gain from INVIT operations included in revenue, and how does it affect the financial statements? A: The gain is included as it reflects the recurring nature of cash flows from INVIT operations, aligning with accounting standards. This approach provides a clearer picture of the company's financial health and operational segments. (Respondent: Unidentified_2 and Unidentified_3)