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IRB Infra net profit rises 10% despite toll loss on note ban

IRB Infrastructure Developers’s third quarter result showed increase in income and consolidated profits despite loss made during demonetization days when no toll was levied on motorists across India.

The company’s total income stood at Rs 1,441 crore as against Rs 1,365 crore for the corresponding quarter of the last financial year.

Its consolidated profit increased by almost 10% to Rs 184 crore from Rs 168 crore during the year-ago period.

The company has made a claim of Rs 151.7 crore as toll revenue loss for 24 days after the government announced non-collection of toll due to demonetization. This compensation is likely to be received during the next fiscal. The company has a total of 14 toll revenue generating projects in 7 states wherein revenue had stopped flowing in.

During the last quarter, depreciation expenses declined by 20% to Rs 180.3 crore. Whereas, operating profit rose 8.1% year-on-year to Rs 743.5 crore.

The company’s order book stood at around Rs 10,000 crore, including Rs 1,530 crore six-laning project in Rajasthan from NHAI that it received during the last quarter.

IRB Infrastructure Developers is also set to be the biggest beneficiary of the arbitration reforms announced by the government.

“During the quarter, the group has received Rs 26.96 crore from National Highways Authority of India (NHAI) against the favourable arbitration awards. Presently, the matters are subjudice in Court; no revenue has been recognised in the current quarter,” said Virendra D Mhaiskar, chairman and managing director of IRB Infrastructure Developers.

The company also announced payment of interim dividend of Rs 2 per equity share of face value of Rs 10 each for the financial year 2016-17.