IRB reported decent quarterly performance in line with our estimates led by healthy toll collection which saw a sharp recovery in collection reaching precovid levels across portfolio. During 2Q, BOT revenues came in at Rs3.9bn. The company expects to receive PCOD for Agra Etwah BOT project in 3Q, post which tariff revision to be in the range of 60-70%. However, the company reported flat construction revenues primarily due to big ticket size projects reaching PCOD levels and large part of unexecuted order book awaiting appointed date (AD). IRB Infrastructure is one of the largest BOT toll operators in the country having market share of ~22% in the total Golden Quadrilateral projects with over 3,700km of total projects successfully executed.
OutlookWe have tweaked our FY21E/ FY22E earnings estimates downwards by 15.4%/ 12.4%. At CMP, the stock trades at a P/E of 9.8x/ 5.8x on FY21E/ FY22E EPS and is trading at an EV of 9.7x/ 8.9x FY21E/ FY22E EBITDA. We maintain BUY rating on the stock with SoTP based TP of Rs152 (Same as earlier).
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