IRB Infrastructure Reports Robust 30% Growth in Toll Collection Revenue for October 2023
IRB Infrastructure Developers Ltd (IRB), a leading player in India’s highways segment, has announced a substantial growth of 30 percent in its toll collection revenue for the month of October 2023. According to the company’s statement, the toll collection figures reached Rs 447.7 crore, showcasing a significant increase from the previous year’s Rs 345.1 crore for the same period.
Key Revenue Contributors:
Among its 13 toll booths, IRB MP Expressway located in Maharashtra emerged as the major contributor, contributing a substantial share of Rs 140.9 crore to the total revenue collection. This strong performance highlights the company’s strategic operations and robust revenue generation capabilities.
Amitabh Murarka, Deputy CEO of IRB, expressed his satisfaction, stating, “We are pleased to witness the continuation of the momentum established in the first two quarters of FY24, which is also evident in the first month of the third quarter. We anticipate the commencement of tolling on the Samakhiyali Santalpur BOT project in Gujarat shortly, further enhancing our toll revenue.”
IRB stands as India’s pioneering integrated infrastructure player in the highways segment. With a strong presence as the largest integrated private toll roads and highways infrastructure developer in the country, IRB boasts an impressive asset base exceeding Rs 75,000 crore, spanning across 11 states.
IRB Infrastructure’s robust revenue growth in toll collection reaffirms its position as a leader in India’s infrastructure sector, reflecting strategic initiatives and operational excellence. The company’s consistent performance underlines its commitment to driving progress and innovation in the nation’s highways and roads infrastructure.
IRB Infrastructure Surges 12% in a Month, Ventura Analysts Predict 170% Upside in Two Years
IRB Infrastructure, a prominent player in India’s construction industry, has experienced a remarkable surge of over 12% in its stock value over the past month. Analysts at Ventura have reinitiated coverage on the stock, expressing a bullish sentiment with a “buy” rating and setting a target price of ₹94.5 within the next two years. This target signifies an impressive upside of around 170% from the stock’s recent closing price of ₹35.
Ventura analysts highlighted IRB Infrastructure’s robust performance in the September quarter, where the company achieved a remarkable year-on-year revenue growth of 29.9%, totaling ₹1,745 crore. Additionally, IRB’s order book witnessed significant expansion, exhibiting a year-on-year growth of 62.7% and reaching ₹32,666 crore.
The brokerage firm painted a positive picture of IRB’s future, anticipating a Compound Annual Growth Rate (CAGR) of 13.9% for revenue, 11.5% for EBITDA, and 28.1% for net earnings in the period between FY23-26. These projections are expected to culminate in revenue, EBITDA, and net earnings reaching ₹9,456.7 crore, ₹4,485.7 crore, and ₹1,402.3 crore, respectively, by FY26.
Ventura highlighted the favorable industry outlook, emphasizing NHAI’s (National Highways Authority of India) plan to award ₹85,400 crore worth of priority category road projects in FY24. Notably, ₹40,000 crore has been allocated specifically for BOT (Build-Operate-Transfer) road projects, characterized by lower competitive intensity.
IRB Infrastructure secured three major projects, each poised to significantly contribute to the company’s growth:
1. Hyderabad Outer Ring Road (ORR) TOT Project: IRB clinched a substantial 158 km Hyderabad ORR ToT project, featuring an upfront payment of ₹7,380 crore. This revenue-linked asset will be under IRB’s control for a concession period of 30 years, ensuring steady income.
2. Ganga Expressway BOT Project: This venture involves the construction, operation, and maintenance of the expressway, presenting lucrative revenue prospects for IRB Infrastructure in the coming years.
3. Samakhiyali Tollway BOT Project: Under the BOT model, IRB will manage toll collection and road maintenance, establishing a consistent revenue stream for the company.
IRB Infrastructure’s strategic projects, coupled with a positive industry outlook, position the company for substantial growth, making it an attractive prospect for investors eyeing long-term returns.