IRB Infrastructure Developers Ltd (NSE: IRB) Q4 2025 Earnings Call dated May. 20, 2025
Corporate Participants:
Anil Yadav — Director, Investor Relations
Tushar Kawedia — Chief Executive Officer
Analysts:
Vishal Periwal — Analyst
Alok — Analyst
Mohit Kumar — Analyst
Vikash Agarwal — Analyst
Nishit Shah — Analyst
Presentation:
Operator
Good morning, ladies and gentlemen. Welcome to the IRB Infrastructure Developers Conference Call for discussing the Financial Results for the Quarter and Year-Ended, 31 March 2025, along with the recent developments. We have with us today on the call, Mr Varendra, Mr SS Rana; Mr Anil; Mr Mehul Patel; Ms Punam Nishal; and Mr Tushar as a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Please note, the duration of the call would be 45 minutes and any queries left unanswered after the call can be subsequently mailed to the management for educated response and resolution. Please note that this conference is being recorded. I now hand the conference to Mr Yadar to give an overview of the significant developments during the quarter. Thank you, and over to you, sir.
Anil Yadav — Director, Investor Relations
Thank you. Good morning, everyone. I welcome all the investor and analysts to our earnings call for Q4 results of financial year ’24 ’25. I trust you have reviewed our detailed number and presentation. I will briefly highlight the key points for the quarter and for the financial year. We have achieved 23% year-on-year total revenue growth across our project in private InvIT and IRB for FY ’25, surpassing the national toll revenue growth of 12.5%. Private InvIT is consistently generating positive cash-flow from last financial year. For Q4 of FY ’25, they have declared a distribution of approximately INR54 crore contributing to IRB cash-flow proportionately to its holding of 51%. For FY ’25, the cumulative distribution around INR243 crores from the private investment. Considering the immediate opportunity in the sector, IRB Infrastructure Trust has issued and revised the non-binding offer for a subset of original offer, comprising of three matured assets to IRB Invet fund from earlier assets.
As of March 2025, these assets have an price of — enterprise value of approximately INR8,500 crores as per independent valuers report of the private. The proceeds will be utilized towards the upcoming opportunity. Ganga Expressway project has received grant totaling to INR1 crores to INR90 crores from. Out-of-the total grant of INR1756 crores, the project is progressing according to the scheduled timeline and is expected to complete on-time or even ahead of the schedule. We have applied PCOD, COD for Vadodra Mumbai Expressway Package 7 HAM project and Palshit Dhanpuni BOT project as they near the completion. Upon completion of the Palshit Dhanpuni, the tariff for the project is set to be revised from 75% to 100% and it will also receive escalation for three years additionally. India rating has affirmed long-term rating for the company, which is AA minus with a stable outlook. Our total order book now stands at around INR31,000 crores and next two years executable EPC and O&M order book is close to INR5,000 crores. Now I will request Tushar to cover the financial highlight for Q4 of FY ’25. Yeah, over to you, Tushar.
Tushar Kawedia — Chief Executive Officer
Thank you, sir. Now I’ll take you through the financial analysis of Q4 FY ’25 versus Q4 FY ’24. The total consolidated income for Q4 FY ’25 has decreased to INR2,218 crores from INR2,504 crores are down by 11%. The income from Invit and related segment for Q4 FY ’25 has decreased to INR307 crores from INR399 crores, down by 23%. The income from BOT segment for Q4 FY ’25 have increased to INR641 crores from INR619 crores, registering a growth of 4%. The income from construction segment for Q4 FY ’25 has decreased to INR1,202 crores from INR1,442 crores, down by 17%.
The other income for Q4 FY ’25 have increased to INR69 crores from INR44 crores, an increase of 55%. EBITDA for Q4 FY ’25 decreased to INR1,066 crores from INR1,33 crores, down by 20%. Interest cost decreased to INR458 crores in Q4 FY ’25 from INR615 crores, a decrease by 26%. Depreciation cost increased to INR286 crores in Q4 FY ’25 from INR274 crores, an increase of 4%. PBT has decreased to INR323 crores in Q4 FY ’25 from INR44 crores, a decline of 27% and PAT has increased to INR215 crores in Q4 FY ’25 from INR189 crores in Q4 FY ’24, an increase of 14%. Now I request moderator to open the session for question-and-answer.
Questions and Answers:
Operator
Thank you very much, sir. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. I would like to remind all the participants if you wish to ask any questions, questions you may press star and 1. We have a first question from the line of Vishal Periwal from Antique Stock Broking. Please go-ahead.
Vishal Periwal
Yes, sir. Thanks for the opportunity. Sir, in your commentary, you mentioned we have executable order book of INR5,000 odd crores. So is that fair to say INR200 is EPC and remaining O&M is 1,800. So this includes 2,400 of EPC and around similar amount for O&M as well. Okay, okay. And O&M will be equally distributed between these two years. EPC will be for FY ’26, largely, that’s fair to understand?
Tushar Kawedia
Yeah, that’s right.
Vishal Periwal
Okay, got it, sir. And then incrementally on this revenue that we have booked, a quarterly basis, though, I mean on an annual basis, there is a growth, but for quarter-four, we are seeing a revenue from INVIT — including dividend of almost like INR300 odd crores, which is down. So how do you — how one should see this line-item, revenue line-item for ’26 and ’27, if you can just give some color?
Tushar Kawedia
Yeah. So if you see for Q4 because that’s the normal quarter when we have introduced this segment from Q3. So for FY ’26 and ’27, we can assume the similar run-rate considering Q4 as a normal quarter.
Vishal Periwal
Okay, quarterly basis.
Tushar Kawedia
Yeah. Yeah. Vishal, last year also because of the arbitration awards, there was a one-time income. So that’s why last corresponding quarter of the last year is not comparable.
Vishal Periwal
Okay. Okay. Got it, sir. And then for understanding, so in April month, we have reported a gross toll — a toll collection of increase of almost like 10%. So ex of toll rate hike, this number could be how much? And then second related is like for the full-year basis, since I think in the media briefing, it was mentioned large part of the growth will be in the second-half once the assets get commissioned. So it’s fair to understand the total increase will be like-kind of 10%, 12% for the full-year basis?
Tushar Kawedia
Vishal, you are absolutely correct. The — if you look at the traffic growth, we have witnessed very robust traffic growth, around 6.5% to 7.5% kind of traffic growth and overall revenue of 10% growth because we have received a tariff revision from 1st of April around 3.5% to 3.6%. And now coming to the — as the Palshit project is going to become operational, that will be — there will be increase in the revenue. And plus second-half of this financial year, Ganga project will also become operational. So these two projects will be adding up. So we can see that lower double-digit kind of growth on toll collection. This is without factoring any new project in overall portfolio. This is based on the existing portfolio what we have.
Vishal Periwal
Okay, sure, sir. Got it. And maybe one last thing from my side is any color that you can provide on the sector? One is like how has been the last year number of beauty projects awarded, we did any color on that front? And I think your presentation did mention like the opportunity remains. So any outlook or past year, if you can give some color, sir. That Will be helpful.
Tushar Kawedia
Yeah. Thanks so much. Yeah. So Vishal, I think as we all have seen, the year gone by has seen a very muted order inflows across the sector primarily earlier part due election and later part also, it has got picked-up so much. So I think the catch-up should happen this year, particularly the focus looks to be DoT and monetization. So we are also keenly looking at the opportunity as we have already announced, we are trying to monitor — do an asset rotation between private equit and public equitant, trying to get ourselves ready to arrive this particular wave of bidding that comes up. So we are equally hopeful that this year it should see a much better color compared to last year.
Vishal Periwal
Okay. Sir, according to you, what is the number of bids that are coming that is low or competition is there or anything that the government is looking — I mean, any more color can be provided, sir?
Tushar Kawedia
So EPC seen significant competition and going as low as 40% below NHITPC. But on the TOT, BOT side, not much has happened. Couple of BOTs we have seen by. So a little early to compare — comment on how they will overall shape up, but the response received for even BOT has been quite promising. So four, five bidders have shown interest in most BOT projects that have undergone bidding, which I think should install significant comfort and confidence to the government that there are takers for projects and monetization projects. So I think the government would take that signal and try to expedite awards on that particular platform.
Vishal Periwal
Okay, sure, sir. I’ll come back-in the queue more-for-more. Thank you.
Tushar Kawedia
Thank you.
Operator
Thank you. We have our next question from the line of Alok from Motilal Oswal. Please go-ahead.
Alok
Hi, sir, good evening. Good morning. Just had couple of questions. One is on, you know, similar to the previous question. I mean we have been expecting BOT projects to come by, but again FY ’25 has been muted despite the elections being behind. So when we speak to most other players, they are diversifying into other segments saying that there’s a lot of competition here and there are hardly any projects which are even expected to come by. So just some thoughts, whether we also targeting some other segments now? That is first question. Second is, how do we see this associate income moving ahead like for FY ’26 on a quarterly run-rate basis.
Tushar Kawedia
So, Alok, I think you’re absolutely right, the order inflow has been muted or very soft and that is a matter of concern across the sector. And as I mentioned, I think the focus — that is the reason we’ve seen the focus will shift towards more private participation projects, be it be BOT or asset monetization. But I think it is a wait-and-watch game at the moment. As regard diversification is concerned, we do keep evaluating opportunities across alliance sectors, but not something on our mind at this point in time to immediately pursue. Because we believe — because in the last 25, 30 years of history, we have seen such kind of cycle play-out and in the cycles gone by as well, we have prudently waited and we were very well rewarded as a result of waiting out. So even this time around, we will not be in a hurry to start looking elsewhere and everyone prudently want to out, prepare ourselves. We will use this time to prepare ourselves that whenever this cycle picks up, we are well what I would say capitalized to take benefit of that time. I think that is what we will use this time for rather than looking as well.
Anil Yadav
Yeah. Alok, just to add-on the valuation aspect, if you look at IRB, 80%, 85% of the value comes from the asset business. And as you might have noticed from last two years, our O&M execution is continuously increasing. We have 20 years visibility as far as O&M order book is concerned. And gradually that is closely earlier from 5%, 10% kind of O&M execution that has become 20% 25% of the overall executive O&M. And after two or three years, that will further improve. And as you have also — you might have noticed that last one decade, the project execution on this road sector was largely funded by the government. And whatever the assets so-far have been constructed, those will come for the monetization.
So those will further add to our ToT and also will increase our O&M order book. So as of now, we are focusing in the sector. As explained by the sir, there will be opportunity and we are keeping ourselves ready so that whenever opportunity starts, we should — we should be eyeing for the better award in the near-future. And now coming to your inventory-related income, I think inventor related income should be more or less what we have seen in Q4 in the coming year as well or that is the quarterly run-rate should be similar.
Alok
Got it, got it. Just one last question. So based on the order book of what kind of construction or revenue we expect for FY ’26
Tushar Kawedia
From a construction order book, we have EPC 2,400, which we expect to complete in FY ’26 and somewhere between INR1,000 crores to INR1,200 crores would be towards the O&M part. Implement certain things of scope to give us. Yes. So I think Alok, all put together, we should see around INR4,000 crores kind of revenue for FY ’26. This is without factoring any new award. And even as you know that there will be a — there will be a ToT, there will be a TOT project where the initial capex is there and that needs to be done over the period of six to eight months’ time. So considering that if we back something, there will be additional. But with the existing thing, I think we should be able to do a turnover of around INR4,000 crores on the construction side. Sure. That’s all from my side. Thank you and all the best.
Alok
Thank you.
Operator
Thank you. Before we move on to the next participant, a reminder to all the participants, if you wish to ask a question, you may press star and 1. Anyone who wishes to ask a question, you may press star and one on your touchstone phone. We have our next question from the line of Mohit from ICICI Securities. Please go-ahead.
Mohit Kumar
Hi, thanks, sir. Good morning, sir. Good morning and thanks for the opportunity. Sir, one question I have on the EPC, of course, as be in F ’26, last year we did INR46 billion. How do you see this in the revenue in F ’26 and F ’27 given the current order book?
Vishal Periwal
Yeah. So I think, Mohit, as explained for FY ’26, it will be — without any new order wins. I think it is expected close to INR4,000 crores. For FY ’26, it will depend upon the incoming order what we will get. ’27, sorry.
Mohit Kumar
Understood. Sir, my second question is, of course, we were looking to divest some of the — move some of the private — private InvIT asset to public InvIT. Where are we right now in the —
Vishal Periwal
Yeah. So with respect to the private InvIT, now the assets which are offered by the private InvIT, those has an EV of INR85 — INR8,500 crores, INR85 billion and expected equity realization is around INR4,800 crore to INR5,000 crores. And in terms of approval, we will be moving for the unitholder for the approval of the asset acquisition and also the capital raise. So we are expecting to conclude this transaction from two, 2.5 months from now.,
Mohit Kumar
Understood. And last question on the on the bidding pipeline. Are there bids in the public domain where the bid submission is happening for the BOT or TOT in the next one or two months or somewhere we have put — if you have submitted the bid, some clarity on the front will be helpful.
Vishal Periwal
There are two DOT bids which are up for bidding at this point in time.
Mohit Kumar
Has anything of submitted, sir? Any bids?
Vishal Periwal
No. Pardon
Mohit Kumar
Me. Any bids which you have submitted?
Vishal Periwal
So we will not be able to comment on that.
Mohit Kumar
Okay. Understood, sir. And sir, anything upon the states, do you see any opportunity from the states or other road or something like that, which something like that, which happened in the Hyderabad.
Vishal Periwal
Some projects are in the very early-stage from what we understand from consultancy projects that have been awarded may come up at few states in few states. Few state governments have initiated DPRs for taking up projects on BOT so we are keenly watching those as well-
Mohit Kumar
Understood, sir. Thank you and all the best. Thank you.
Operator
Thank you. A reminder to all participants, if you wish to ask a question, you may press star and one. We have our next question from the line of Vikash Agarwal from Primus Asset Management. Please go-ahead.
Vikash Agarwal
Hi, can you hear me?
Vishal Periwal
Ahead. Yes,
Vikash Agarwal
Hi. Thank you. Thank you. Thanks for the opportunity. A few things just wanted to understand Anil and sir is, when we look at the order book for PPC, it is obviously lower than your historical run-rate. So in that context, how should we think about the Holdco cash flows and I look at all the bonds, so I’m coming from that angle, if you can share some insights on how to think about the cash flows? That’s my first question. The second question is the additional amount which you raised for dollar bond. Is that still sitting as a liquidity buffer on-hold the balance sheet? So if you can throw some insights on these two questions, please?
Vishal Periwal
Yeah. So, Vikas, as you are aware that for dollar bond, the cash-flow of Mumbai and plus the cash-flow coming from both the area is also computed in the calculation. So we don’t foresee that there will be any challenge in terms of cash-flow — availability of the cash-flow for servicing the dollar bond. And in terms of money, you are correct that whatever the TAB money we have raised around INR200 million, that’s still lying as a cash with us and which will be deployed for the future opportunity.
Vikash Agarwal
Sure. I mean, I don’t foresee any challenges effect, but I just wanted to understand how are you looking at the numbers or we can get-in touch with later as well and to discuss more in detail. But yeah, I just wanted to understand how should we think about the cash-flow breakup and the key components there.
Vishal Periwal
So I think, Vikas, if you so if you consider the cash-flow, I think during the bond also, we have discussed the broad cash-flow. And if you look at the generation from the private NVID and public and including the Mumbai, the cash-flow will be quite robust to service the Board. And plus our EPs O&M will take — will be gradually increasing and there will be a generation from the O&M also. And for FY ’26, anyway, we are talking about INR3,800 crores to INR4,000 crores of EPC revenue. So I think that should take care. Anyway, we can’t have visibility for EPC more than two years. But as of now, the broad visibility is for one year because there was no award in the last year. But as the award activity picks up, there will be EPC revenue. But in considering the worst-case scenario, O&M revenue and the surplus coming from Mumbai-Pune and to InvIT, those will be more than sufficient to cater the bond payout. And in fact, we have discussed those cash-flow while during the issuance of the bond as well.
Vikash Agarwal
Sure, sure okay I mean that sounds good thank you so much.
Operator
Thank you. A reminder to all the participants if you wish to ask a question you may press star and one. Who wishes to ask a question, you can press star and one now. We have our next question from the line of Shah from JM Financial. Please go-ahead.
Nishit Shah
Hi, sir. Sir, we have seen quite muted activity on the Beauty awarding for FY ’25, while the pipeline was quite strong at the mid of the year. So how is the pipeline shaping up for ’26 and how do you see the improvement in awarding, especially on the Beauty side for FY ’26?
Vishal Periwal
I think we keep looking at the bid calendar that is reflected on the government website. But with regard to sticking to those timelines, I think you should check with the government itself if they have a mind to pay-down on those respective dates or there is likely to be any pushback for that okay. And secondly, on TOT side, what is the — you mentioned that two projects are active right now. But how is the overall pipeline shaping up? So we expect more projects in this year? And that is what we hear from the government?
Nishit Shah
Okay. Okay. And sir, lastly, what could be the EPC other income for FY ’25 annual year
Vishal Periwal
Has interacted with the TOT EBITDA in which government representatives specifically made out a case that they have a very clear objective of coming out with significant number of POT going-forward. Okay. And sir, lastly, what will be the EPC other income for the entire year FY ’25. So for EPC, other income was full-year, it was INR64 crores. And for Q4, sorry, full-year, full-year it was INR190 crores and INR64 crores for this quarter.
Nishit Shah
Okay. So what had to be a sharp increase in Q4?
Vishal Periwal
Yeah. So we have that the amount kept in FD, the TAP issuance which we did, which has not been invested — which has not been infused — so it is kept as a big deposit, which is generating income on that deposit.
Nishit Shah
Okay. Just for clarity purpose, our revenue is INR4,578 crores for EPC revenue for FY ’25. So does it include this INR194 crores of other income or it doesn’t include?
Vishal Periwal
No, it does not include it. 4.78
Nishit Shah
The EBITDA includes — EBITDA of INR1152 crores includes the other income.
Vishal Periwal
Yeah, that’s right.
Nishit Shah
Yeah. Okay. Thank you, sir. Those are my questions.
Vishal Periwal
Thank you.
Operator
Thank you. As there are no further questions, I would now like to hand the conference over to the management for closing comments.
Anil Yadav
Thank you everyone for taking time-out for this quarterly results update call and look-forward to catch-up with you over the next quarterly earnings call thank you and have a great
Operator
Thank you. On behalf of IRB Infrastructure Developers, that concludes this conference. Thank you for joining us and you may now disconnect your lines