Mid-cap Realty stock jumps 6 percent in the day’s trade after it bags contract worth Rs. 4,428 Crores from National Highway Authority of India for the project of Tolling, Operation, Maintenance and Transfer of four lane road on the largest single continuous stretch of ~316 Kms on the North-South Corridor of NH44.
At 10:15 a.m the shares of IRB Infrastructure Developers Limited were trading at Rs. 34.40 up 4 percent from its previous day close price and its market capitalization is Rs. 20,774 Crores.
As per the company’s filing, IRB Infrastructure Trust (the Trust) has received Letter of Award from National Highways Authority of India (NHAI) for the project of Tolling, Operation, Maintenance and Transfer of four lane Lalitpur-Sagar-Lakhnadon section from km 99.005 to km 415.089 of NH-44, TOT-12 Project for the revenue linked Concession of 20 Years in the state of Uttar Pradesh and Madhya Pradesh.
The Project entails Tolling and O&M activities on the largest single continuous stretch of ~316 Kms for a consideration of Rs. 4,428 Crores and this will now enable the trust to form project SPV and proceed for signing Concession Agreement and the financial closure subsequently in a stipulated time frame.
The company’s revenue grew 10.3 percent from Rs. 5,803.7 Crores in FY22 to Rs. 6,401.64 Crores in FY23, accompanied by increasing profits of Rs. 361.4 Crores to Rs. 720.01 Crores.
It has reported a return on equity(ROE) of 5.55 percent and a return on capital of employed (ROCE) of 9.02 percent, its profitability ratios are going down year on year, as the company is into infrastructure and it is a capital intensive business so it’ll take time to generate good returns.
According to the latest shareholding data available for the September 2023 quarter, the company’s Promoters hold 34.39 percent stake, the Domestic Institutional Investors hold 49.18 percent and the Foreign Institutional Investors (FII) hold 5.49 percent.
IRB Infrastructure Developers Ltd (IRB) is India’s first Integrated Multi-National Transport Infrastructure Developer in Roads & Highways segment, as the largest integrated private toll roads and highways infrastructure developer in India, IRB has an asset base of over Rs.75,000 Crores. in 12 States across the parent company and two infrastructure investment trusts.
Written by: Bharath K.S
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