Motilal Oswal's research report on IRB Infrastructure
IRB Infrastructure (IRB)’s revenue grew 13% YoY to INR16.2b in 4QFY23 (8% miss). EBITDA margin came in at 46.8% (+210bp YoY), above our estimate of 45.7%. EBITDA rose 18% YoY to INR7.6b (6% below estimate). APAT dipped 25% YoY to INR1.3b, 30% below estimate due to high tax outgo and a sharp increase in loss from associate income. IRB is seeing a strong opportunity in BOT/TOT projects and would also bid for HAM projects. Work on the prestigious Ganga Expressway project has commenced post-receiving appointed date in 3QFY23. Management expects INR5b of quarterly revenue from this project going ahead.
Outlook
With its strong order book size of INR206b as of Mar’23 as well as robust tender pipeline, we expect IRB to record ~13% revenue CAGR over FY23-25. Reiterate Neutral with an SOTP-based TP of INR30.
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