Neutral IRB Infrastructure; target of Rs 61: Motilal Oswal

Motilal Oswal's research report on IRB Infrastructure

IRB Infrastructure (IRB)’s revenue grew 27% YoY to INR20.6b in 4QFY24 (in line). EBITDA margin came in at 43.2% (down 370bp YoY, below our estimate of 45%). EBITDA grew 17% YoY to INR8.9b, in line with our estimate. Higher interest costs of INR2.4b were attributed to the notional interest accrued on the deferred payment of acquisition costs of concession arrangements in SPV. This increase was partly offset by higher other income. APAT grew 45% YoY to INR1.9b, in line.

Outlook

Fueled by a robust order book and a strong tender pipeline, primarily due to the BOT projects, we expect IRB’s execution to pick up, leading to 13% CAGR in revenue and sustained margins. We broadly retain our APAT for FY25E/FY26E. Reiterate Neutral with a revised SoTP-based TP of INR 61.