The board of IRB Infrastructure Developers Limited, a highway construction company in India, has announced the splitting of its shares along with its quarterly results.
In Q3FY23, The company reported total revenue from operations of Rs 1,514.14 Crores which increased 18 percent Year on Year from Rs 1,279.11 Crore. From the previous quarter, their revenue increased by 13 percent from Rs 1,342.95 Crore.
IRB Infrastructure Developers net profit in the period stood at Rs 141.35 crores which grew by more than 95 percent from Rs 72.94 crore in Q3FY22. In the September quarter, their profits stood at Rs 85.30 Crore.
The investors, however, were not impressed by the numbers as the stock traded 1.5 percent lower at Rs 286 levels till the afternoon on Tuesday as they were worried about the margin contractions.
This was because the cost of the company increase significantly in the quarter. The Road work and site expenses soared 70 percent YoY, while employee benefit expenses increased by 55 percent and depreciation costs rose 12 percent.
On the corporate action front, the company announced a stock split of 10:1 which means that every 1 (one) equity share having a face value of Rs 10 (Rupees Ten only) each, fully paid-up will be split into 10 (ten) equity shares having a face value of Re. 1 (Rupee One) each.
For the purpose of determining the eligibility of Shareholders for the purpose of sub-division /split the record date has been set as Wednesday, February 22nd, 2023.
IRB Infrastructure Developers Ltd is an infrastructure development and construction company in India with extensive experience in the roads and highways sector. The company has a market capitalization of Rs 17,603 Crore.
In the past three months, the stock has gained 35 percent and on a yearly basis it has gained only 7 percent. It reached a 52-week high of Rs 329.40 in January this year and is currently trading 14 percent away from those levels.
As per the December quarter shareholding pattern, the promoters hold a 34.2 percent stake and have pledged 49.12 percent of it. Foreign Institutional Investors (FIIs) hold a high stake of 45.58 percent while the Life Insurance Corporation of India holds a 3.38 percent stake in the company.
Written by Anoushka Roy
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