Shares of IRB Infrastructure Developers dropped as much as 4 percent on October 31 bogged down by the company's subdued earnings performance for the July-September quarter.
At 10.20 am, shares of IRB Infra were trading at Rs 52.19 on the NSE. Including today's fall, the stock is now down over 21 percent in the last three months.
The company's revenue fell a little over 9 percent on year to Rs 158.6 crore, compared to Rs 174.5 crore in the same quarter of the previous fiscal. The decline in revenue was on account of a heavy monsoon season.
Despite a fall in revenue, the company reported a 4.3 percent increase in consolidated net profit, at Rs 99.8 crore, up from Rs 95.7 crore in the same quarter last year, supported by higher operating margins.
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The operational performance also improved as EBITDA margins expanded to 48.3 percent, up from 45.6 percent a year earlier, reflecting efficiency gains that helped mitigate the challenges posed by lower revenue.
As of the end of the September quarter, IRB Infra's order book stood at Rs 3.26 lakh crore, with the Engineering, Procurement, and Construction (EPC) segment contributing 12.3 percent (Rs 40,000 crore) and Operations and Maintenance (O&M) contributing 87.7 percent (Rs 2.86 lakh crore).
Furthermore, the company anticipates significant ordering from the National Highways Authority of India (NHAI) in the near future, given that there are 6 to 7 Build-Operate-Transfer (BOT) projects and 4 Toll-Operate-Transfer (TOT) projects lined up for bidding.
Moreover, over the longer term, the company is also expecting opportunities under PPP mode for BOT projects worth Rs 2 lakh crore. On the back of IRB Infra's improving outlook on ordering and likely better toll growth in H2 FY25, brokerage firm HDFC Securities retained its 'add' rating on the stock with a price target of Rs 69.
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