IRB Infra expects toll collections to shoot up 20% in this fiscal
“There was almost 20 percent growth in the toll collections. The momentum is still continuing with festive season around and we expect similar 20 percent growth would be there for a full year basis,” said Tushar Kawedia, Group CFO, IRB Infrastructure.
India's toll collections are showing robust growth in the first half of the financial year compared to the last one, according to Tushar Kawedia, Group CFO, IRB Infrastructure.
“There was almost 20 percent growth in the toll collections. The momentum is still continuing with the festive season around and we expect similar 20 percent growth would be there for a full year basis,” he said.
IRB Infrastructure delivered a steady set for quarter two of the current financial year (FY23) with profit after tax (PAT) doubling on a year-over-year basis.
Brokerage firm CLSA has also raised the target price for IRB Infrastructure and has a buy call on the stock. CLSA says that a pick-up in both toll traffic, as well as order backlog in the second half of FY23, could aid their performance.
The company has seen a slight slowdown on the construction front due to the monsoon season but this is seasonal.
On October 16, 2022, the company announced the execution of definitive agreements in relation to the implementation of the Ganga Expressway Project.
A definitive agreement is a binding contract that records the final terms and conditions for a project between two or more companies.
Also Read: IRB Infra shares jump most in five months after signing definitive agreements for Ganga Expressway
The agreements involve the Meerut Budaun Expressway Ltd (MBEL), a special purpose vehicle (SPV) floated by IRB Infra for the Ganga Expressway Project and the affiliates of GIC Private Ltd (the project’s financial investors).
“Ganga Expressway SPV contributes almost 50 percent of our order book. We are already geared up to execute this project in the next two and a half to three years,” said Kawedia.
IRB Infrastructure’s current orderbook stands at Rs 20,000 crore out of which EPC orderbook stands at around Rs 9,000 crore. “Around Rs 5,000 plus crore is to be contributed by the Ganga Expressway in next two and a half to three years,” he mentioned.
For the full interview, watch the accompanying video
(Edited by : Abhishek Jha)
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