IRB Infrastructure shares trade 3% lower after Q1 profit tanks 63%

IRB Infrastructure Q1 profit tanks 63% YoY to Rs 133.8 crore

Shares of IRB Infrastructure lost around 3 percent in early trade on August 1, following a weak set of quarterly numbers. At 11:26am, the stock was trading 2.3 percent lower at Rs 25.85 on the NSE.

The company's quarterly net profit fell 63 percent on-year to Rs 133.77 crore and revenues declined nearly 12 percent to Rs 1745.47 crore.

IRB Infrastructure Developers on July 31 posted a 63 percent decline in its post-tax profit to Rs 133.77 crore for the April-June quarter, dragged by lower income. It had reported a net profit of Rs 363.19 crore for the April-June period last year, the company said in a regulatory filing. The company's total income in the first quarter (Q1) of the current fiscal also dropped to Rs 1,745.47 crore from Rs 1,995.40 crore a year ago.

Management Commentary

In a statement, company Chairman and Managing Director Virendra D Mhaiskar said the company commenced 2023-24 on a positive note and expects to witness robust momentum in toll collection.

“Recently added projects of Hyderabad ORR TOT (outer ring road toll-operate-transfer) and Samakhiyali to Santalpur BOT (build operate and transfer) project are set to commence during Q2 and will meaningfully contribute to both, toll collection as well as construction segment, Q3 onwards,” he said.

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The toll collection for the April-June period was Rs 1,183 crore as against Rs 1,000 crore in the corresponding quarter of the last fiscal, the company said. During the quarter, IRB Infrastructure Developers "executed the concession agreement for the Rs 2,132-crore Samakhiyali Santalpur BOT project in Gujarat", it added.

Brokerage firm Motilal Oswal has assigned a ‘buy’ rating to the stock as the operational performance was in-line according to the firm estimates.

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