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Informist, Saturday, Feb. 1, 2025

--IRB Infra: See good traction in BOT, toll-operate-transfer segment 

--IRB Infra: Will bid for projects mainly via private InvIT going forward 

--CONTEXT: Comments by IRB Infra mgmt in post-earnings analyst call 

--IRB Infra: Matured assets will be transferred to public InvIT 

By Aman Aryan and Sunil Raghu

MUMBAI – IRB Infrastructure and Developers Ltd. is now looking to bid for projects only through its private infrastructure investment trust as part of its 'BEST'--build, execute, stabilise, transfer—strategy, according to the management's comments in a post-earnings conference call. The company plans to develop new projects under its private InvIT platform and then transfer the completed, stabilised, and matured assets to its public InvIT. 

The transport infrastructure developer included InvITs as its new segment during the December quarter as it expects to garner recurring income from the trusts, the management said. For the December quarter, InvITs and related assets segment revenue came in at INR 2.45 billion. The inclusion of the investment trusts may also aid the growth in return on equity, the management said.          

The strategic plan of developing under the private InvIT and transferring matured assets to the public InvIT will help in unlocking value and minimising the piling up of debt, the management said. The private InvIT of IRB Infrastructure has an enterprise value of INR 600 billion, of which the company holds 51%. The private trust has declared a distribution of INR 540 million for the December quarter, which will be reflected in the company's cash flow to the extent of its 51% holding, the management said.    

During the December quarter, revenue from its build-operate-transfer or toll-operate-transfer projects segment rose 5% on year to INR 6.48 billion. The company expects good traction in the segment going forward, the management said.

The company announced its earnings after market hours Friday. Its consolidated net profit for the quarter spiked to INR 60.26 billion from INR 1.87 billion in the year-ago quarter. A one-time income of INR 58.04 billion, along with a gain and dividend from infrastructure investment trusts and related assets, drove the consolidated net profit. Its consolidated revenue for the December quarter rose 3% on year to INR 20.25 billion. 

At 1114 IST, shares of the company traded at INR 58.93 on the National Stock Exchange, up 2.8%.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Namrata Rao

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