Comments
IRB Infrastructure Developers’ stock price rose more than 3 per cent before ending around 0.5 per cent higher on Tuesday.
The rally in one of India’s largest toll road operating players was triggered by the award from the National Highway Authority of India (NHAI) for six-laning from Udaipur to the Rajasthan-Gujarat border, a distance of about 114 km. The company will design, build, finance and operate the project. The company will collect revenues through toll collections. The project is estimated to cost ₹2,100 crore over 21 years, including a construction period of 910 days.
The award of this project, along with the 125-km Gulabpura–Chittorgarh bypass, enhances the company’s order book to ₹13,400 crore. The current order-book gives revenue visibility of about four years. The order book value is around 2.5 times the revenue for the year ended March 2016.
This award increases the number of BOT projects to 23, of which 14 are already operational. With around seven of the road projects’ concession time period ending over the next five to six years, these new projects under construction, which are expected to come into operation after mid-2017, should help the firm maintain its margins in the long run.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.