Motilal Oswal: IRB Infrastructure’s Weak Order Book Increases Dependency On New Order Wins 
Light traffic on India’s first superhighway, The Expressway between Mumbai and Poona (Photographer:Santosh Verma/Bloomberg News)

Motilal Oswal: IRB Infrastructure’s Weak Order Book Increases Dependency On New Order Wins 

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Motilal Oswal Report

IRB Infrastructure Developers Ltd.’s consolidated financials are not comparable YoY owing to monetization of nine assets through the InvIT route and consolidation of the Mumbai-Pune Phase-II project.

Its construction business witnessed revenue/Ebitda/adjusted profit after tax decline of 35%/27%/28% YoY.

Consolidated loss came in at Rs 301 million (versus estimate loss of Rs 57 million). Cash flow visibility for the company has improved meaningfully due to the Mumbai-Pune Phase-II project.

However, the construction order book (OB) remains weak at engineering, procurement and construction OB/revenue of 1.2 times (or 0.9 times excluding the newly won Hybrid annuity model project where construction may commence only by Q4 FY21), thereby increasing dependency on new order wins.

Click on the attachment to read the full report:

Motilal Oswal IRB Infrastructure Q1Fy21 Result Update.pdf

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