Company Update : IRB Infrastructure Developers Ltd By Motilal Oswal Financial Services Ltd
Restructuring of business during 3Q
Earnings snapshot – 3QFY25
* IRB has aligned its business model for investments in InvITs and related assets. As a result, it assessed eligible investments, including joint ventures under Ind AS 28, for fair value measurement through FVTPL. Consequently, a net fair value gain of INR58b (net of tax) was recognized as an exceptional item.
* Revenue grew 3% YoY to INR20.2b in 3Q FY25. Revenue includes a) Gain on InvITs & Related Assets as per fair value measurement and b) Dividend / Interest income from InvITs & Related Assets. This income would be recurring going forward.
* EBITDA margin came in at 48.6% in 3QFY25 (+440bps YoY and +20bps QoQ). EBITDA grew 13% YoY to INR9.8b. APAT grew 18% YoY to INR222m (against our estimate of INR201m).
* Construction revenues stood at INR11.3b (-16% YoY); BOT revenue stood at INR6.5b (+5% YoY); and InvIT & related assets revenue stood at INR2.5b (+90% YoY).
* The order book stood at ~INR315b (excl. GST) as of the end of Dec’24, of which the O&M order book is INR286b and the EPC order book is INR40b.
* The company has declared a third interim dividend of INR0.1 per share.
* During 3Q, the company sold a 41% stake in Meerut Budaun Expressway Limited ("MBEL") to IRB Infrastructure Trust for an aggregate consideration of INR87.5b. The company continues to hold the balance 10% stake in MBEL.
* The Ganga Expressway Project has received three grant tranches totaling INR8.7b from UPEIDA and is progressing in line with the scheduled timelines.
* During 9MFY25, revenue was INR54.6b (+2% YoY), EBITDA was INR26b (+3% YoY), EBITDA margin came in at 48%, and APAT was INR4.6b (+11% YoY).
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