Release Date: May 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- IRB Infrastructure Developers Ltd (BOM:532947, Financial) achieved a 23% year-on-year total revenue growth for FY25, surpassing the national toll revenue growth of 12.5%.
- The company declared a distribution of approximately INR54 crore for Q4 FY25, contributing to IRB's cash flow proportionately to its 51% holding.
- The Ganga Expressway project received a grant totaling INR1,290 crores and is progressing on schedule, expected to complete on time or ahead of schedule.
- India Ratings affirmed a long-term rating of AA- with a stable outlook for the company.
- The total order book stands at around INR31,000 crores, with an executable EPC and O&M order book close to INR5,000 crores for the next two years.
Negative Points
- Total consolidated income for Q4 FY25 decreased by 11% to INR2,218 crores compared to Q4 FY24.
- Income from the InvIT and related segment for Q4 FY25 decreased by 23% to INR307 crores.
- EBITDA for Q4 FY25 decreased by 20% to INR1,066 crores compared to the previous year.
- The order inflow for the sector has been muted, with significant competition in EPC HAM projects.
- The construction segment income for Q4 FY25 decreased by 17% to INR1,202 crores.
Q & A Highlights
Q: Can you clarify the breakdown of the INR5,000 crore executable order book?
A: The order book includes INR2,400 crores for EPC and a similar amount for O&M. The EPC is expected to be executed largely in FY26. (Tushar Kawedia, Group CFO)
Q: How should we interpret the decline in InvIT revenue for Q4 FY25, and what is the outlook for FY26 and FY27?
A: The Q4 decline is due to a one-time income from arbitration awards in the previous year. For FY26 and FY27, we expect a similar run rate as Q4 FY25. (Tushar Kawedia, Group CFO; Anilkumar Yadav, Director - Investor Relations)
Q: What is the expected toll revenue growth for the full year, considering the recent toll rate hike?
A: We anticipate a robust traffic growth of 6.5% to 7.5% and overall revenue growth of 10%, with a tariff revision of 3.5% to 3.6%. The Palsit Dankuni and Ganga projects becoming operational will further boost revenue. (Anilkumar Yadav, Director - Investor Relations)
Q: Given the muted BOT project awards in FY25, what is the outlook for FY26, and are there any diversification plans?
A: We expect a shift towards more private participation projects like BOT and asset monetization. While we evaluate opportunities in allied sectors, we plan to wait for the cycle to pick up and prepare ourselves for future opportunities. (Virendra Mhaiskar, Executive Chairman & Managing Director)
Q: What is the status of moving Private InvIT assets to public InvIT, and what is the expected timeline?
A: The assets have an enterprise value of INR8,500 crores, with expected equity realization of INR4,800 to INR5,000 crores. We aim to conclude the transaction in 2 to 2.5 months. (Anilkumar Yadav, Director - Investor Relations)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
