IRB Infrastructure Developers Limited (IRB), on Thursday, reported a 16% increase in net profit for the quarter ended March 31, 2018, to Rs 240 crore. However, total income declined 13.5% year-on-year to Rs 1,432 crore, after the company shifted seven of its income generating projects (toll roads) to its infrastructure trust, ITB InvIT Fund. Of the projects transferred, six were moved in May 2017 and the remaining one in September.
For the full year, net profit rose 28.7% to Rs 920 crore while total income was down 1.8% to Rs 5,863 crore. During the quarter, the company bid for and won three road projects under the hybrid annuity model (HAM), taking its total order book to over Rs 12,000 crore. In addition, the company has four more projects that are either under construction or have begun toll collections.
In an emailed statement, Virendra Mhaiskar, CMD, IRB Infrastructure Developers, said, “In the fourth quarter and during the year, we saw a return to traffic growth, post the note ban and the roll out of the goods and services tax (GST). We are entering FY19 with a strong momentum.”
The company listed its infrastructure trust in May 2017 with six projects in its portfolio and transferred a seventh project – Amritsar-Pathankot – to the InvIT in September. Subsequently, the company said its debt equity ratio in FY18 reduced to 1.87 from about 2.85 in FY17, resulting in a ratings upgrade by two notches to A+.