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

Executive summary

• Net profit for Q2FY25 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 collections grew, with Mumbai-Pune and Ahmedabad-Vadodara corridors seeing a 2.3% YoY increase in daily tolls, and Private InvIT per-day toll collection rising 46% YoY.

• Interim dividend of 10% (Rs. 603.9 mn) declared, and a distribution of ~Rs. 636 mn by Private InvIT for Q2FY25.

• Successfully completed $200 million tap issuance of 7.11% Senior Secured Notes maturing in FY32, 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 Bn.

Financial highlights

• Q2FY25 consolidated revenue was INR 17,520 million, down 7% YoY, with EBITDA up 1% YoY to INR 9,330 million and PBT up 4% YoY to INR 2,670 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%.

• Cash profit increased 3% YoY to INR 4,150 million.

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

• Net debt stood at INR 120 billion with a net debt-to-equity ratio of 0.75 as of Q2FY25.

Outlook and guidance

• Management expects improved performance in coming quarters as monsoon disruptions subside and festive season demand accelerates.

• Toll revenues are expected to recover as monsoon impacts subside; newly awarded TOTs are projected to continue outperforming estimates.

• No change in order book targets or guidance.

• 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, with a robust project pipeline.