IRB Infra gains 4% on bagging infra project from Hyderabad civic body

IRB Infra gains 4% on order from Hyderabad Metropolitan Development Authority

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Shares of IRB Infrastructure Developers gained over 4 percent on April 28 after the company bagged an order from Hyderabad Metropolitan Development Authority (HMDA).

At 11:14am, shares of the infrastructure player were trading 1.9 percent higher at Rs 27.66 on the BSE. The stock has gained over 20 percent in the past one month.

The company has been selected for the project of tolling, operation, maintenance and transfer of Nehru Outer Ring Road in Hyderabad, Telangana.

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IRB Infrastructure will have to pay an upfront concession fee of Rs 7,380 crore to HMDA for a revenue-linked concession period of 30 years.

The company believes “IRB’s O&M order book will increase by approximately Rs 14,500 crore, providing strong long-term visibility to the company” after bagging the project.

Kotak Institutional Equities sees 17 percent on-year growth in revenues for the company during the quarter ended March due to improved execution of under-construction projects and toll revenues. Execution will ramp up further from Ganga Expressway in the coming quarters, it said.

The brokerage firm has modelled a 4QFY23 margin of 25.5 percent in the construction segment and 89 percent in the Build Operate Transfer segment. It expects interest charges to decrease year-on-year on transfer of the VK-1 project to a public InVIT, whereas depreciation charges could remain high YoY on improved toll collections.

Losses from road special purpose vehicles may move up in 4QFY23 on commencement of revenue share from the KG tollway and Hapur Moradabad projects.

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