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Shares of IRB Infrastructure Developers surged as much as 5.2 per cent to Rs 204 on strong quarterly results.
The company, which is engaged in the construction and maintenance of roads, reported a 5 per cent increase in net profit at Rs 250 crore for the quarter ended June 30, 2018 against Rs 238 crore in the corresponding quarter of the previous fiscal.
It has also announced an interim dividend of Rs 2.50 per share of face value of Rs 10 each for FY19.
Profit rose despite divestiture of seven key toll assets via IRB InvIT Fund. This should alleviate market the concerns of a fall in PAT post-InvIT, CLSA says.
The brokerage adds that profitable new concession win under the government’s Bharatmala road project, financial closure of new concessions, ánd acceptance of claim for Ahmedabad National Highway by NHAI are among the key catalysts ahead.
CLSA expects construction sales to see 30 per cent CAGR over FY18-20. It has retained “buy” rating. More than 2.2 million shares changed hands, compared with 30-day average of 1.5 million shares. IRB Infra stock had fallen 18.5 per cent this year as of last close.
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