Analyst Concall
IRB Infra expects to add INR 2 tln to order book over 8 yrs
This story was originally published at 21:48 IST on 30 October 2024
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--IRB Infra: Raised $200 mln at premium via bonds maturing in FY32
--IRB Infra: To use $200 mln raised via bonds for capex, debt reduction
--CONTEXT: Comments by IRB Infra mgmt in post-earnings analyst call
--IRB Infra: See scope to add INR 2 trln to order book over 8 years
--IRB Infra: Have six-month visibility for operations & maintenance orders
--IRB Infra: Bid size for each BOT project in range of INR 40 bln INR 70 bln
--IRB Infra: Expect bidding for 4 toll-operate-transfer projects by Dec
By Apratim Sarkar and Sunil Raghu
MUMBAI – IRB Infrastructure Ltd. plans to add INR 2 trillion to its order book over next eight years, the company's management said in a post-earnings conference call Wednesday. As of Oct. 30, the company's total order book stood at INR 326 billion and the engineering, procurement, and construction, or EPC, order book was at INR 40 billion. Of this, the company's executable order book for next two years, including EPC, and operations and maintenance (O&M) is estimated at INR 62 billion, excluding the change of scope and utility setting. The management also said it has six-month visibility for operations and maintenance orders.
IRB Infrastructure witnessed growth in toll collection in Jul-Sept despite heavy rainfall across parts of the country, the management said. It said the per day toll collection for Jul-Sept had increased to INR 99.4 million, from INR 68.2 million in the year-ago period. The 46% growth of the per day toll collection is backed by traffic growth, toll tariff revision and the addition of new projects.
The Mumbai-Pune corridor and the Ahmedabad-Vadodara corridor too saw a 2.3% increase in daily toll collection in the latest quarter to INR 64 million from INR 62.5 million in the year-ago period. The management also expressed optimism that Oct-Mar would be favourable for the toll collection business.
Talking about expansion, the management said it plans to triple its portfolio over the period of six to eight years, building on the established asset base of the current financial year. As of Oct. 30, the company has an asset base of INR 800 billion.
The management said the company has a pipeline of INR 370 billion comprising build-operate-transfer projects with four build-operate-transfer projects already in line. Four toll-operate-transfer projects are lined up for bidding before the end of December and for six to seven build-operate-transfer projects, bidding is likely to take place by March. The bidding size of the build-operate-transfer would be between INR 40 billion-INR 70 billion with an equity requirement of almost INR 1 billion-INR 20 billion.
The company raised $200 million via bonds for capital expenditure and refinancing existing loans available for the capital expenditure. The bonds will mature in FY32 at a premium, the company said. The management believes this bond issuance will further strengthen its liquidity position by ensuring business stability. End
US$1 = INR 84.07
Edited by Vandana Hingorani
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