Shares of IRB Infrastructure Developers soared over 4% on May 21 as investors lapped up the stock after the company reported strong earnings for the March quarter.
IRB Infrastructure Developers posted a consolidated net profit of Rs 215 crore for the March quarter, reflecting a 14% year-on-year growth from Rs 189 crore in the same period last fiscal.
For the full financial year, net profit grew by 12% to Rs 677 crore, compared to Rs 606 crore in FY24. This figure excludes an exceptional gain of Rs 5,804 crore recognised during the year on account of fair valuation of the company’s InvIT-related assets.
Despite the rise in profits, total income for FY25 came in slightly lower at Rs 8,032 crore, compared to Rs 8,202 crore in the previous year, a decline mainly driven by reduced other income.
Operationally, IRB’s EBITDA margin eroded slightly in Q4 to 50%, down from the 52% that it had reported in the year ago quarter. However, on a full year basis, it expanded to 51% in FY25 as against 49% in FY24.
Toll revenue from the company’s portfolio, along with that of its Private InvIT, grew 23% year-on-year in FY25, nearly double the national average growth rate of 12.5%. In terms of distributions, IRB received around Rs 28 crore from its Private InvIT during the fourth quarter and a total of Rs 124 crore for the entire financial year.
“Although the first half of FY25 was impacted by general elections, we witnessed robust growth in the second half. The two TOT projects commenced operations during the year, have been encouraging and exceeding estimates. With the government's push for PPP (Public Private Partnership) projects in the Union Budget, we remain enthused and focused on expected higher momentum in BOT and TOT bid line up," Virendra D Mhaiskar, Chairman & Managing Director of the company said in an exchange filing.
Looking ahead, the company sees opportunity emerging from a significant pipeline of road projects spanning 871-km and valued at around Rs 456-bn, which is expected to open up for bidding on a Build-Operate-Transfer (BOT) basis.
In parallel, NHAI is planning to monetise operational highways worth Rs 600-bn through the Toll-Operate-Transfer (TOT) model, creating a substantial avenue for private capital to participate in India’s infrastructure growth.
