IRB Infrastructures’ stock prices surge more than 3 per cent
The stock prices of IRB Infrastructure Developers, the leading toll road operating firm rose more than 3 per cent before ending around 0.5 per cent higher in July’16. Since its inception, the company has attained commendable success and established benchmarks of excellence in its sector. With a number of state-of-the-art projects, the company has constructed or, operated and maintained around 9,295 lane kms of road length so far along with its subsidiaries and emerged as one of the country’s leading road developers.
IRB Infrastructure Developers Ltd recently bagged an award from the National Highway Authority of India (NHAI) for a six-lane project from Udaipur to the Rajasthan-Gujarat border, covering a distance of about 114 km. The project will be built, designed, financed and operated by IRB Group. The revenues will be collected through toll collections by the company. Around Rs. 2,100 crore is the estimated cost of the project over 21 years, including a construction period of 910 days.
The company’s order book is enhanced to Rs. 13,400 crore after bagging the award of this six-lane project along with the 125-km Gulabpura–Chittorgarh bypass. The current order-book gives revenue visibility of about four years. At present, the order book value of the IRB Group is around 2.5 times the revenue for the year ended March 2016.
With around seven of the road projects’ concession time period ending over the next five to six years, these new projects under construction, which are expected to come into operation after mid-2017, should help the firm maintain its margins in the long run.
With this project, the number of the company’s BOT projects has increased to 23, of which 14 are already operational.
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