On April 28, IRB Infrastructure Developers’ shares gained over 4% after the company took an order from Hyderabad Metropolitan Development Authority (HMDA).
At 11:14 am, shares of the IRB infrastructure player traded 1.9%, up Rs 27.66 on the BSE. The stock increased by over 20% in the past month.
The company has been nominated for the tolling, operation, conservation, and transfer of Nehru Outer Ring Road in Hyderabad, Telangana.
IRB Infrastructure must pay an upfront allowance fee of Rs 7,380 crore to HMDA for a 30-year revenue-linked concession period.
The company considers “IRB’s O&M order book will upsurge by about Rs 14,500 crore, providing robust long-term visibility to the business” after taking on the project.
Kotak Institutional Equities saw 17% YoY income growth for the company during the March ending quarter amid enhanced execution of under-construction plans and toll proceeds. Further, the execution will ramp up from Ganga Expressway in future quarters.
The brokerage firm has demonstrated a Q4FY23 margin of 25.5% in the construction section and 89% in the Build Operate Transfer part. It anticipates interest charges falling YoY on transferring the VK-1 project to a civic InVIT, whereas depreciation charges would be high on enhanced toll collections.
Road Special Purpose Vehicles may rise in Q4FY23 on commencing revenue share from the KG tollway and Hapur Moradabad projects.