IRB Infrastructure Developers Ltd (BOM:532947) Q2 2025 Earnings Call Highlights: Navigating ...

GuruFocus News
4 min read

In This Article:

  • Total Consolidated Income: INR 1,752 crore, down 7% from INR 1,875 crore.

  • Consolidated Toll Revenues: INR 600 crore, up 2% from INR 588 crore.

  • Consolidated Construction Revenues: INR 1,152 crore, down 10% from INR 1,286 crore.

  • EBITDA: INR 933 crore, up 1% from INR 924 crore.

  • Interest Cost: INR 434 crore, stable compared to INR 435 crore.

  • Depreciation: INR 231 crore, slightly decreased from INR 233 crore.

  • PBT (Profit Before Tax): INR 267 crore, up 4% from INR 257 crore.

  • Share of Profit from JV: INR 100 crore, up 4% from INR 96 crore.

  • Cash Profit: INR 415 crore, up 3% from INR 404 crore.

  • Interim Dividend: Declared at 10%, amounting to INR 60 crore.

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • IRB Infrastructure Developers Ltd (BOM:532947) successfully completed the issuance of USD 200 million senior secured notes, which will be used for capital expenditure and refinancing existing loans, enhancing liquidity and business stability.

  • The company reported a 46% increase in daily toll collection for the Private InVIT, attributed to traffic growth, toll tariff revision, and new project additions.

  • IRB Infrastructure Developers Ltd (BOM:532947) declared an interim dividend of INR 10%, amounting to INR 60 crore, in line with its dividend policy.

  • The company's total order book stands at INR 32,600 crore, with a significant portion executable over the next two years, providing strong revenue visibility.

  • The company is well-capitalized with a lower consolidated net debt to equity ratio, positioning it to capitalize on upcoming opportunities in the BOT and TOT project space.

Negative Points

  • Toll collection was significantly impacted by heavy rains and flooding across India, affecting revenue growth.

  • The company's total consolidated income for Q2 FY25 decreased by 7% compared to the previous year, primarily due to reduced construction revenues.

  • Execution was soft due to severe monsoon conditions, impacting both EPC and toll revenues.

  • There is a concern about the slow bidding and awarding process for new projects, which may affect future revenue growth.

  • The company continues to report losses from associates, with expectations for profitability only in FY26, indicating ongoing financial challenges in some areas.

Q & A Highlights

Q: What caused the soft execution in the quarter, and how is the outlook for the coming months? A: The soft execution was primarily due to heavy monsoon rains affecting several states, leading to lower execution in EPC and softer toll revenues. However, with the monsoon season over, we expect a good uptake in construction execution in the third quarter. - Anilkumar Yadav, Director - Investor Relations and Tushar Kawedia, Group Chief Finance Officer

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