IRB Infra Closes FY21 With Two New Projects; Stock Gains
Shares of IRB Infrastructure Developers Ltd. surged after the construction company said it ended FY21 with addition of two new PPP projects.
The company received a letter of award from the National Highways Authority of India for six-laning of the national corridor NH-19 from Palsit to Dankuni in West Bengal under Bharatmala Pariyojana. It will be executed on a BOT (build-operate-transfer, or toll) basis, according to an exchange filing.
The total design length of the project is 68.38 km with a cost of Rs 2,421 crore. The construction period will be 910 days and the company will get toll rights from the appointed date, the filing said.
IRB Infrastructure also emerged as a preferred bidder for the NHAI’s project of rehabilitation and upgradation to four-lane configuration and strengthening of the Punjab-Himachal border of the Pathankot-Mandi section on a hybrid annuity mode basis, the filing said. The project length is 28.7 km with its bid project cost of Rs 828 crore. The construction period will be 730 days.
“The company is closing its financial year after successfully securing new orders amounting to a total of Rs 5,004 crore,” the filing said. “This works out to approximately 5% of the total market share of awards on a public-private partnership basis issued by the NHAI this financial year.”
These order wins have now taken the company’s presence to 10 states across India. The total order book, after the recent projects, now stands at Rs 14,509 crore, including a construction order book of Rs 7,583 crore. “This provides revenue visibility of more than two years,” the filing said.
Shares of IRB Infrastructure gained as much as 8.6% around 9:40 a.m. on Wednesday to Rs 112.3 apiece. The stock is up for the second straight day. Of the 12 analysts tracking the company, 10 have a ‘buy’ rating and two suggest a ‘hold’, according to Bloomberg data. The average of the 12-month consensus price target implies an upside of 44.4%.