IRB Infrastructure's second quarter consolidated profit is seen rising 23 percent year-on-year to Rs 150 crore on strong revenue growth and operational performance. The Mumbai-based road developer will announce its earnings on October 21.
Net sales may increase 22 percent to Rs 1,082 crore in the quarter ended September 2015 compared to Rs 883 crore in same quarter last year, according to average of estimates of analysts polled by CNBC-TV18. Topline growth was led by toll and construction revenue.
Gross toll revenue is expected to grow 15-20 percent on the back of healthy traffic growth. Main routes like Mumbai-Pune, Bharuch-Surat and Surat-Dahisar may see double digit growth with additional revenue from Pathankot-Amritsar.
Construction revenue is expected to grow at 20 percent Y-o-Y.
Operating profit (earnings before interest, tax, depreciation and amortisation) may jump 20 percent on yearly basis to Rs 629 crore but margin may contract by 120 basis points to 58 percent in Q2FY16 due to strong base in year-ago period.
Finance cost might go up on year-on-year basis as additional interest charged to P&L for Pathankot-Amritsar project.
Factors to watch out for would be traffic growth, toll/tariff hike and order execution. At the end of September 23, IRB Infra has order book of Rs 12,631 crore (including Rs 10,770 crore worth of construction order book).
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