A weak quarter from IRB Infra. Revenue growth is still slack as execution activity is yet to pick up but margins improve because of the lower cost of materials, road work and site expenses.
On stimulus package, VD Mhaiskar, CMD of IRB Infra said, “The reforms that were announced yesterday will certainly help unlock some amount of liquidity for EPC players and infra developers and that is a welcome move.”
Mhaiskar said, on ground situation is improving in terms of payments and financing. “I think the liquidity situation is improving, the banks are coming forth to and give credit limits - that part is looking good. In terms of the business as such, the tolling numbers have shown great resilience, the revenues have bounce backed tremendously on the tolling side. In the quarter gone by the toll revenues have improved from Rs 291 crore to Rs 391 crore, it is almost Rs 100 crore jump that we witnessed.”
On order book, Mhaiskar said, “Orderbook stands at around Rs 12,100 crore of which Rs 5,100 crore is the construction orderbook and that gives us good visibility for next 4-5 quarters.”
On debt he said, “Overall debt profile it is still lower than 2:1 which by way of industry standards is still the lowest. If you look at the size of the business, the net worth of the company I think the debt is not out of bound by any means.”
To know more about the company's Q2 performance, watch the video.
(Edited by : Anshul)
First Published: Nov 13, 2020 2:33 PM IST