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--IRB Infra: Intend to become net debt-free by 2030 
--CONTEXT: Comments by IRB Infra's management in post-earnings analyst call 
--IRB Infra: Didn't bag any order in Q1 as there was no award activity 
--IRB Infra: Not seeing any impact due to geopolitical issues 
--IRB Infra: No Toll-Operator-Transfer projects by state govt on radar

 

By Afra Abubacker and Sagar Sen 

 

MUMBAI – IRB Infrastructure Developers Ltd. aims to become net debt-free by 2030, supported by persistent debt repayments and proactive balance sheet management. So far, the company has repaid debt worth INR 4.38 billion, resulting in interest cost savings of INR 610 million over the long term, the company management said. In the June quarter, the company had a net debt of INR 107 billion, down from INR 118 billion a year ago.

 

"During the quarter, we have successfully completed refinancing of approximately INR 3,700 crores (INR 37 billion) debt of our wholly-owned subsidiary, i.e., IRB Mumbai Pune Expressway SPV (Special Purpose Vehicle) Concession," the company management said in an analyst concall. This has resulted in an annual interest saving of roughly INR 250 million, reducing borrowing cost by 65 basis points. 

 

Meanwhile, IRB Infrastructure Trust has refinanced a debt of INR 110 billion, resulting in interest cost savings of 160 basis points, the company's investor presentation showed.

 

The company's net debt-to-equity ratio was 0.51 in the June quarter compared to 0.58 in the year-ago quarter. IRB Infrastructure Trust is one of the largest integrated infrastructure assets companies in the roads and highways sector. It accounts for nearly one-tenth of the total toll revenues in the country.

 

IRB Infrastructure's consolidated revenue for the June quarter rose 2% on year to INR 21.37 billion and net profit rose 51% on year to INR 3.06 billion amid strong toll revenue. "On a year-on-year basis, gross total collection on Mumbai Pune has increased by 9%, Ahmedabad Vadodara by 21%, resulting in an overall growth of 30?ross our wholly-owned portfolio," the management said. 

 

In the combined portfolio, the average daily total collection rose 26% on year to INR 270 million. "This was driven by the healthy traffic momentum, addition of the new asset, and annual total tariff revision of approximately 3%," the company said.

 

According to IRB, toll collection has been "pretty healthy" across the industry. The company said vehicle traffic remained robust in the June quarter, and it was not seeing any impact on volumes due to higher crude oil prices amid geopolitical issues in West Asia. 

 

During the June quarter, IRB's private investment, IRB Infrastructure Trust, has signed a binding term sheet to transfer two BOT (build-operate-transfer) highway assets with an enterprise value of INR 46.05 billion, the company said. 

 

In the construction segment, the company said, "This quarter we have seen a dip in the construction revenue that was mainly on account of completion of the under-construction projects which we had in the last year."

 

On orders, the management said it did not bag any as there was no award activity during the June quarter. Asked if any state governments were coming up with toll-operator-transfer projects, the management said no such project was currently available for bidding or anything in the process under their radar.

 

The company announced its results during market hours Thursday. Shares of IRB Infrastructure closed 1.35% higher at INR 20.25 apiece on the National Stock Exchange. End 

 

Edited by Deepshikha Bhardwaj

 

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