IRB Infrastructure Developers (IRB) Q2 24/25 earnings summary

Executive summary

• Q2FY25 net profit rose 4% year-over-year to Rs. 1,000 million, despite a 7% decline in total income to Rs. 17,520 million, mainly due to severe monsoon impacts on toll collections.

• Toll collection growth persisted, with a 25% year-over-year increase including Private InvIT projects, and key corridors showed resilience.

• Interim dividend of 10% (Rs. 603.9 million) declared, and Private InvIT distributed ~Rs. 636 million for Q2FY25.

• $200 million tap issuance of 7.11% Senior Secured Notes maturing in FY32 completed, strengthening liquidity and business stability.

• Toll revenues from newly awarded TOTs exceeded expectations, and the Ganga Expressway Project received two grant tranches totaling Rs. 4.75 billion.

Financial highlights

• Q2FY25 consolidated income was INR 17,520 million, down 7% year-over-year due to lower construction revenue from heavy rains.

• EBITDA grew 1% to INR 9,330 million; PBT increased 4% to INR 2,670 million; cash profit up 3% to INR 4,150 million.

• PAT after JV/Associates for Q2FY25 was INR 1,000 million, up from INR 957 million YoY; PAT margin increased to 10% from 9%.

• Interest cost remained stable at INR 434 crores; depreciation slightly decreased.

• One-time fair value gain of INR 80 crores impacted other income and associate line items.

Outlook and guidance

• Management expects improved performance as monsoon disruptions subside, with festive season demand and project consolidation accelerating.

• Expect acceleration in bidding and awarding of BOT and TOT projects in the second half of the year.

• No change in order book targets or guidance despite current delays in project awards.

• Losses from associates expected to turn positive by FY26 as new assets mature.

• The company remains focused on leveraging PPP opportunities in India's expanding road infrastructure sector.