IRB Infrastructure gains after bagging road project

IRB Infrastructure Developers gained 1.47% to Rs 252 at 10:55 IST on BSE after the company bagged six laning project on Kishangarh-Udaipur-Ahmedabad highway from National Highways Authority of India.

The announcement was made after market hours yesterday, 20 September 2016.

Meanwhile, the BSE Sensex was up 148.22 points, or 0.52%, to 28,669.08.

On BSE, so far 2.9 lakh shares were traded in the counter, compared with average daily volume of 2.64 lakh shares in the past one quarter. The stock hit a high of Rs 255.55 and a low of Rs 250.55 so far during the day. The stock hit a 52-week high of Rs 272.20 on 20 October 2015. The stock hit a 52-week low of Rs 197 on 24 June 2016. The stock had outperformed the market over the past one month till 20 September 2016, gaining 7.93% compared with 1.59% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 17.09% as against Sensex's 6.16% rise.

The mid-cap company has equity capital of Rs 351.45 crore. Face value per share is Rs 10.

IRB Infrastructure Developers (IRB) said that it has emerged as a preferred bidder for the project of six laning from KishangarhUdaipurAhmedabad section of around 125 kilometres in Rajasthan. The project is on design-build-finance-operate-transfer (DBFOT) (toll) pattern basis under National Highways Development Project (NHDP)'s Phase V (package-V). The concession period of the project is 20 years including construction period of 910 days. The company will get tolling rights on project from the appointed date. The company has offered premium of Rs 228.60 crore to National Highways Authority of India (NHAI) in terms of the concession agreement. Upon award of this project, IRB's construction order book will stand to increase to approximately Rs 11300 crore, to be executed in the next four years. This will boost the company's construction orderbook visibility for next three to four years.

On a consolidated basis, net profit of IRB Infrastructure Developers rose 10.4% to Rs 181.84 crore on 36.8% rise in net sales to Rs 1517.33 crore in Q1 June 2016 over Q1 June 2015.

IRB Infrastructure Developers is an integrated infrastructure development and construction company with significant experience in toll roads and highways sector. The company is one of the largest private developers in India.

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