IRB Infrastructure Developers' shares experienced a notable increase of over 2% in early trading on October 9, following the announcement of impressive toll revenue figures for September 2024, the third month of Q2FY25.
At approximately 09:22 AM, the stock was priced at ₹60.38, reflecting a gain of ₹1.49, or 2.53%, on the Bombay Stock Exchange (BSE).
Impressive year-on-year growth in toll revenue
The combined toll revenue reported by IRB Infrastructure and IRB Infrastructure Trust showed a robust year-on-year increase of 19%, reaching ₹502 crore compared to ₹421 crore in September 2023.
“Our toll revenue has shown remarkable strength, achieving a 19% growth year-on-year despite the challenges posed by heavy rainfall in several regions. With the festive season approaching, we remain optimistic about continuing this upward trend, supported by increased travel and economic activity,” stated Amitabh Murarka, the Deputy Chief Executive Officer of IRB Infrastructure Developers.
Future plans for debt financing
The company's board of directors is set to convene on October 9, 2024, to discuss and approve a proposal for raising debt. This could involve issuing foreign currency-denominated notes, other debt securities (both domestically and internationally), or securing term loans in one or more tranches.
Investing in stocks of companies with solid growth prospects, like IRB Infrastructure, could be a strategic move as they expand their operations and strengthen their financial position.
IRB's dominance in the infrastructure sector
IRB Infrastructure Developers stands as the largest integrated private developer of toll roads and highway infrastructure in India, boasting an asset base of around ₹80,000 crore spread across 12 states.
The company holds a significant market share of approximately 38% in the Toll-Operate-Transfer (TOT) sector and accounts for 12% of India's North-South highway connectivity.
For those looking to invest in stocks, IRB presents a compelling opportunity, given its strong market position and robust growth metrics.
Diverse project portfolio
The IRB Group's extensive project portfolio, which includes both private and public Infrastructure Investment Trusts (InvITs), comprises 26 road projects. This includes 18 Build-Operate-Transfer (BOT) projects, four Toll-Operate-Transfer (TOT) projects, and four Hybrid Annuity Model (HAM) projects.
As the company continues to enhance its infrastructure capabilities and expand its portfolio, investors looking to invest in stocks in the infrastructure sector may find IRB Infrastructure a valuable addition to their portfolios.
A promising investment opportunity
With strong financial results and a strategic outlook for future growth, IRB Infrastructure Developers is poised for continued success. For those considering their options in the stock market, investing in stocks like IRB could yield significant returns, especially with the expected uptick in travel and economic activity during the festive season.
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