The shares of India’s leading infrastructure developer fell nearly 5 percent to 66.94 per share after the company lost a ₹1,032 crore arbitration claim against the National Highways Authority of India (NHAI).
At 11:20 a.m., IRB Infrastructure Developers Ltd. shares were trading at ₹68.1 a share, down 3.22 percent from the previous close price on the Exchange, and the company has a market capitalization of ₹41,144 crores.
According to the company’s filing, IRB Infrastructure Developers’ subsidiary, IRB Ahmedabad Vadodara Super Express Tollway Pvt. Ltd was granted the Arbitral Award on 09.04.2024 regarding its claim for revenue losses attributed to the emergence of a Competing Road alongside the Project Highway.
The contention by IRB Infrastructure Developers was that the Competing Road was established in the fiscal year 2015-16. Consequently, they sought compensation totaling ₹1,032.61 crore plus interest from NHAI. NHAI’s argument mainly disputed the existence of the competing road and counterclaimed ₹29.73 Crore from IRB Infrastructure Developers due to the advancement of Premium in FY 2014-15.
The Arbitral Tribunal, in its Award, determined that the Competing Road came into existence in January 2019, when 75% of its length was completed, rather than in 2015-16. However, no compensation was granted due to technical reasons related to the Competing Road.
Furthermore, the Award instructed IRB Infrastructure Developers to adhere to the Premium Deferment Scheme and make payments to NHAI accordingly. However, NHAI’s counterclaim for the advancement of Premium amounting to Rs. 29.73 Crore was dismissed.
The Company experienced a 30 percent annual increase in revenue, rising from ₹1,514 crores in Q3 FY23 to ₹1,969 crores in Q3 FY24. Concurrently, net profit surged by 33 percent during the same period, climbing from ₹141 crores to ₹187 crores.
The IRB Group’s current project portfolio, encompassing both Private and Public InvIT, consists of 25 road projects, including 18 BOT, 3 TOT, and 4 HAM projects. As
India’s largest road BOT operator, the company manages a portfolio of 36 projects. Additionally, the company’s TOT portfolio accounts for 37% of the total TOT market share.
The company holds approximately 20 percent of India’s prestigious Golden Quadrilateral project, marking the highest share held by any private infrastructure developer in India. Furthermore, in the TOT sector, the group commands a market share of around 42 percent.
Over the last six months, IRB Infrastructure Developers’ shares have yielded returns of 108 percent, and over the last 12 months, they have surged by 165 percent.
IRB Infrastructure Developers Ltd (IRB) is India’s first Integrated Multi-National Transport Infrastructure Developer specializing in roads and highways. As India’s largest private toll road and highway infrastructure developer. It also operates in other infrastructure-related business categories such as road maintenance, building, airport development, and real estate.
The company Owns and Manages around 15,000 Lane KM of Roads across 12 States in India.As of december 2023,the company has a total order book of ₹4,354 million.
Written by Omkar Chitnis
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