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00:00We have with us Anil Yadav, Director Investor Relations of IRB Infra joining in.
00:04Hi Anil, good morning. Thanks for joining us. It's been good for IRB Infra. Lots and lots of
00:10optimistic calls. The stock price is doing well. Of course, those toll collection numbers are also
00:15looking pretty strong. You want to break that down for us and tell us whether this
00:19trend could continue going ahead and what led to such a sharp reading on toll collections?
00:25Good morning. Thank you. Thanks for the opportunity. With respect to our toll
00:31collection, if you look at, we have seen good traffic growth in spite of these months were
00:39affected because of the election was going on. And typically during the election period,
00:44economic activity is low. But still, if I will talk about volume growth,
00:49Mumbai, Pune has reported almost 5% kind of traffic, 5 to 6% kind of traffic growth.
00:56Ahmedabad, Vadodara has reported around 7 to 8% kind of traffic growth. And there were some
01:02asset addition also, which were not there in the last year. Those assets have also contributed.
01:08That has led to overall growth of 35%, including IRB plus private investment as compared to the
01:15same month of the last year. Also, just looking ahead, Anil, of course, the blip, like you said,
01:22was because economic activity was lower on back of election season, heat wave, so many reasons why
01:28things weren't as good in the past. And hence, we've seen a bump up or lumpy growth for June.
01:33But looking ahead into the calendar year, looking ahead into F525, do you feel like this sort of
01:39toll collection and growth could be sustained? I also believe the recent tariff revision
01:44could aid revenues quite significantly. So the number, 5 to 6% growth on Mumbai,
01:51Pune, that was only driven by the volume. And Ahmedabad, Vadodara, the overall growth was
01:59around 12%. Out of that, roughly 3.36 was the contribution from tariff. And balance was the
02:05contribution from the traffic. So as of number looks great. And as everybody is predicting that
02:12the India GDP will be between 7% to 8% for this financial year. And typically, that toll collection
02:19correlates the economic activity in the country. And considering the high growth in the GDP,
02:26we are bullish that in coming months also, the growth should be robust.
02:31Good morning, Neeraj here. So if I'm not wrong, Q1 toll revenue is up 31%. Despite all that you
02:39said, 31% didn't seem to be too bad a number. What's the number that can be anticipated,
02:43if you say that this one was maybe a slightly wobbly quarter, but the quarter side could be
02:48better? I think 31%, if you look at the traffic growth for the quarter as whole, would have been
02:58in 4% to 5%. And typically, we expect around 5% to 7% kind of traffic growth. And this number
03:06also includes the addition of the new project. And because of that, the growth was 31%.
03:13Going forward on the sequential basis, with respect to the existing project,
03:19we foresee that around 10% to 12% with excluding the new assets, there will be 10% to 12% growth
03:26in the revenue for the coming period. So the traffic growth, which we have seen around 4% to
03:325%, that should be ideally between 5% to 7% considering the GDP growth of 7% to 7.5%.
03:40Sorry, I'm just getting a bit confused here. The toll revenue is up 31% for the first quarter,
03:47is that a correct number? Yes, it is. So if you do 10% to 12% growth,
03:52what does it translate to in terms of revenue growth, maybe for toll revenue, toll collection?
03:57So if you compare with the current quarter with the last quarter, we have added three
04:04assets in the toll collection, four assets, that is Hyderabad Owara, TOT 1230 and Samakhale,
04:12which were not contributing in the corresponding quarter of the last year.
04:16So that has also led this kind of exponential growth.
04:22But the second quarter onwards, the base effect becomes normalized, you are saying?
04:27I think to a certain extent, yes, because Hyderabad has started from August 2023.
04:34TOT 12 and 13, which is also part of significant, they have started from 1st of April this year.
04:40So I think the growth ideally should continue, not to the extent of 30-31%,
04:47but ideally closer to 20%. The growth in the third and fourth quarter should also continue.
04:52Got it. Mr. Yadav, now, aside of tolls, I mean, just talk to us about the EPC
05:00order book currently, the bidding pipeline, and the states that you're talking to as well,
05:06because there's a lot of talk of how Andhra Pradesh could see a massive infrastructure boom,
05:16and it could help a lot of infra companies which are pre-qualified,
05:20and there are not too many who are, you must be one of the few.
05:23So tell us a bit about the EPC side, the current order book, the pipeline, and the growth thereof.
05:32We have 34,000 crores of order book, and we are in the space of BOT, TOT and HAM.
05:38We don't bid for the government-funded contract. We only take BOT and TOT and HAM,
05:46and for BOT and HAM, execution is done by our EPC. So we have an order book visibility for
05:53one and one and a half years, as there is a pipeline on the NHI website itself, almost
05:59two trillion worth of opportunity, that is two lakh crores of opportunity in the BOT segment,
06:06and roughly 60,000 to 70,000 crores of opportunity in the TOT segment, which will unfold in near
06:12future. And today we have one of the best debt equity, the lowest debt equity as far as sector
06:20is concerned. In terms of equity requirement, as against two and a half thousand crores of
06:26equity requirement every year, now all projects are already funded, and we have very minimal
06:34equity requirement for the ongoing project. So we have a good appetite as far as new opportunity,
06:41which is going to unfold from the NHS side, that is the BOT and TOT, and our order of preference
06:49will be BOT, TOT and followed by HAM. Okay, so therefore, as a console number,
06:57just before we wrap up, I don't want exact numbers because you must be in a silent period,
07:03we'll get to exact numbers after your quarterly numbers, but what's the kind of overall growth
07:08that can be anticipated, not in order book, but let's say in terms of the revenue size for IRB
07:14Infra, is there some guidance, internal growth guidance that you have in mind for FY25 and 26?
07:22I think in terms of last year, though we have bagged almost 18 to 20,000 crores worth of project
07:30as against to five to six thousand crores, but that only included one BOT, where the size was
07:36roughly 1600 to 1700 crores. And accordingly, if you look at our EPC order book, which will get
07:43executed over the period of one and a half year, that is close to six, six and a half thousand,
07:48and roughly 2000 crores is O&M order book. And we expect to bag more project for FY26 growth,
07:55considering the government, more orders are coming from the government, FY26
08:02may be much robust, but for FY25, what we have guided on our quarterly CONCORD,
08:0910 to 15% growth in the top line and same in the bottom line as well.
08:15Got it. Okay. Mr. Yadav, wish you all the best. Thanks so much for taking the time out and being
08:19with us and giving us your thoughts. Really appreciate your time.