IRB Infrastructure To Add Another Road To InvIT
IRB Infrastructure’s net profit grows 31.5% to Rs 218 crore during Q1FY18.
IRB Infrastructure Developers Ltd.’s quarterly net profit beat street estimates on the back of higher revenue from construction in the three months ended June, a quarter when the highway builder listed India’s first infrastructure investment trust.
Net profit rose 31.5 percent to Rs 238 crore over the year-ago quarter, the company said in an exchange filing. That compares with Rs 214 crore consensus estimate of analysts tracked by Bloomberg.
The company decided to add another road project to its InvIT, which received more than eight-fold demand from investors. The board approved an offer for sale of its 100 percent stake in IRB Pathankot Amritsar Toll Road to the IRB InvIT Fund, it said in a statement to the exchanges. InvITs are mutual fund-like investment trusts that pool in infrastructure projects to raise money from investors.
The offer will be subject to approvals of authorities, said Virendra D Mhaiskar, the company’s chairman and managing director. “If everything goes well, we expect to complete the transaction by the end of next quarter.”
IRB Infrastructure, which manages the Mumbai-Pune Expressway, saw its total income from operations grow 19.8 percent to Rs 1,817 crore in April-June year-on-year, beating estimate of Rs 1,526.3 crore. Its earnings before interest, tax, depreciation and amortization (EBITDA) grew 5.6 percent to Rs 817 crore year-on-year. Margins contracted to 45 percent from 51 percent in the year-ago period.
The quarterly results are portraying our capabilities and efficiency levels in managing large project portfolios. We would continue to perform well and grow in the best interests of our stakeholders.Virendra D Mhaiskar, Chairman & Managing Director, RB Infrastructure Developers
The company’s credit rating was upgraded as its debt-to-equity ratio came down from 3:1 to 1.8, its filing said.
Segment Performance
- Revenue from the BoT (build-operate-transfer) segment declined 17.5 percent year-on-year to Rs 495.8 crore.
- Revenue from the construction segment grew 41 percent to Rs 1,317.3 crore compared to the previous year. The construction order book stood at Rs 8,900 crore.
The board declared an interim dividend of Rs 2.5 per share. Shares of the company snapped a two-day fall to rise as much as 5.3 percent, the most in over three months, to Rs 225.8 after the announcement.