Road developer IRB Infrastructure is likely to report a 21 percent growth year-on-year in profit for quarter ended September 2017, led by Udaipur project.
Profit may increase to Rs 172 crore from Rs 142 crore in year-ago, according to average of estimates of analysts polled by CNBC-TV18.
Lower depreciation & interest cost, and profits/dividend from InvIT may boost profit.
Revenue, however, is expected to be flat at Rs 1,295 crore as assets transferred to IRB InvIT might limit revenue growth. Analysts expect toll revenue to decline 25 percent, but construction business may grow 27 percent YoY.
Traffic growth and construction pace may be impacted on account of heavy monsoons.
Operating profit is seen falling 14 percent year-on-year to Rs 614 crore and margin may contract 790 basis points to 47 percent as analysts feel the share of comparatively lower margin construction division has increased from 56.5 percent in Q2FY17 to 69.1 percent in Q2FY18 (estimated).
Balance sheet deleveraging would be key monitorable post transfer of assets to the InvIT. Management guidance on order inflow and Invit would also be closely watched.
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