IRB Infrastructure Developers (IRB) Q3 24/25 earnings summary

Executive summary

• Aggregate toll revenue grew 21% year-over-year in Q3 FY25, with new TOT projects exceeding revenue estimates and robust performance across key projects.

• Net profit for Q3 FY25 rose 18% year-over-year to Rs. 222 Crs (excluding exceptional gain), with a one-time exceptional gain of Rs. 5,804 Crs from fair value measurement of InvITs & Related Assets.

• Private InvIT issued a preliminary offer to transfer five matured assets (~Rs. 15,000 Crs EV) to Public InvIT, supporting the BEST strategy and capital recycling.

• Interim dividend of 10% (Rs. 603.9 mn) declared for Q3 FY25, with cumulative distributions and total dividends for nine months FY25 reaching Rs. 1,810 mn.

• Ganga Expressway project received Rs. 8.7 Bn in grants and is progressing on schedule.

Financial highlights

• Q3 FY25 total consolidated income: Rs. 2,090 Crs (up 1% YoY); EBITDA: Rs. 1,049 Crs (up 7% YoY); PAT before exceptional gain: Rs. 222 Crs (up 18% YoY); PAT including exceptional gain: Rs. 6,026 Crs.

• Segment revenue for Q3 FY25: Construction Rs. 11,328 mn, BOT/TOT Rs. 6,477 mn, InvITs & Related Assets Rs. 2,449 mn.

• EBITDA margin improved to 52% in Q3 FY25 from 47% YoY.

• Other income increased 52% to Rs. 640 mn.

• Earnings per share (consolidated, not annualized): Rs. 9.98 for Q3 FY25.

Outlook and guidance

• Management expects positive momentum in order inflows, especially in TOT and BOT projects, following a slow period due to elections.

• No reduction in order inflow targets for the year, with optimism for strong activity in the final months.

• Strategic asset rotation and monetization via InvIT platforms will be a recurring process, unlocking capital for new growth.

• Active participation planned in upcoming PPP, BOT, and TOT project bids as government push for such projects increases.

• Projects nearing completion include Vadodara Mumbai Expressway (Pkg-7 HAM) and Palsit Dankuni BOT.