Bidding for NHAI orders over next 25 days; traffic growth robust: IRB Infra

IRB Infra posted a mixed bag in the third quarter, margins disappointed but the traffic growth was very good. In the press release the company had said the fourth quarter would be stupendous for them.

Anil Yadav, Group CFO, IRB Infra said the margins were lower in Q3 because in the toll business they had transferred seven assets of build-operate-transfer (BOT) to InvIT. Margins for BOT projects is around 85-88 percent, while in construction business the margins are about 27-29 percent. So when BOT business is transferred, margins get impacted.

He said, the revenues dipped in Q3 compared to same quarter last year but quarter on quarter there was jump in BOT revenues due to new BOT projects that were started in Rajasthan and Haryana. As more and more projects become operational, the margins will come back, he said.

He said the traffic growth has been very robust and the revenues from Rajasthan, Haryana BOT projects have started. From Rajashtan they have been good at around Rs 62 lakh per day.

The company in their press release has aid they are set for a stupendous Q4. Sharing the rationale for the optimism, Yadav said with transfer of the assets, the revenues have gone away and finance costs have also reduced. Secondly, the Gulabpura to Chittorgarh project was operation in Q3 but from half the quarter, the full impact will be seen in Q4. Moreover, the Kishangarh to Gulabpura will also become operational in Q4. All this will aid revenues in the fourth quarter.

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Anil Yadav

CFO|IRB Infrastructure Developers

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The total order book as of now is around Rs 7500 cr order to be executed over 2 years. Going forward we expect 450-500 km road length to be added to orderbook in next 6-7 moths, which will translate into Rs 7000-8000 cr.

The company, he said is bidding aggressively for NHAI Bharatmala orders which are expected to be awarded in the next 20-25 days. They will bid for an 100 km road which on an average will be Rs 12 crore per km.