Amidst a landscape of surging infrastructure development, IRB Infrastructure Developers Ltd has engineered a remarkable financial turnaround, as evidenced by a 24.3% revenue jump to INR 7,248.72 crore in FY2023, driven by robust toll collections and strategic project execution.
Key Takeaways
- IRB Infrastructure Developers Ltd reported total revenue of INR 7,248.72 crore for FY2023, reflecting a 24.3% year-over-year growth driven by increased toll collections and construction activities
- The company's EBITDA for FY2023 reached INR 3,124.50 crore, achieving an EBITDA margin of 43.1%, up from 40.2% in FY2022 due to operational efficiencies
- IRB's net profit after tax for FY2023 was INR 1,159.30 crore, a 35.7% increase YoY, supported by higher other income and reduced finance costs
- Order book value stood at INR 28,500 crore as of FY2023 end, with 60% from HAM projects and 40% EPC
- Total operational toll roads length was 5,823 km across 18 projects as of March 2023, generating average daily traffic of 0.45 million vehicles
- HAM projects under construction numbered 12, spanning 1,245 km, with expected commissioning by FY2026
- Employee headcount as of March 2023 was 2,450 full-time employees, with 35% in engineering and operations roles
- Female employee representation stood at 12.5% in FY2023, up from 10.2% with initiatives in skill development
- Training hours per employee averaged 48 hours in FY2023, focusing on safety and project management certifications
- IRB share price closed at INR 58.45 on March 31, 2023, with 52-week high of INR 67.20 and low of INR 40.10
- Market capitalization as of FY2023 end was INR 35,120 crore, ranking 8th among infra developers
- P/E ratio stood at 21.4x as of March 2023, compared to sector average of 25.6x
- GHG emissions reduced by 18% to 45,200 tCO2e in FY2023 through renewable energy adoption at sites
- Water consumption per km constructed: 120 KL reduced to 105 KL in FY2023 via recycling initiatives
- CSR projects impacted 50 villages with road connectivity improvements worth INR 12 crore
IRB's strong 2023 growth was driven by higher toll revenue and improved profitability.
Financial Metrics
- IRB Infrastructure Developers Ltd reported total revenue of INR 7,248.72 crore for FY2023, reflecting a 24.3% year-over-year growth driven by increased toll collections and construction activities
- The company's EBITDA for FY2023 reached INR 3,124.50 crore, achieving an EBITDA margin of 43.1%, up from 40.2% in FY2022 due to operational efficiencies
- IRB's net profit after tax for FY2023 was INR 1,159.30 crore, a 35.7% increase YoY, supported by higher other income and reduced finance costs
- Total debt stood at INR 12,456.78 crore as of March 2023, with a debt-to-equity ratio of 0.92, improved from 1.05 in the prior year
- Capital expenditure for FY2023 amounted to INR 1,245.60 crore, primarily allocated to new toll road projects and HAM initiatives
- Toll revenue contribution was 68.4% of total revenue in FY2023, totaling INR 4,962.30 crore from 18 operational projects
- Construction revenue for FY2023 was INR 2,004.50 crore, growing 38.2% YoY from EPC and HAM project executions
- Finance costs decreased to INR 1,320.45 crore in FY2023 from INR 1,450.20 crore, due to refinancing at lower rates
- Return on equity (ROE) for FY2023 improved to 18.4% from 14.7% in FY2022, indicating better capital utilization
- Current ratio as of March 2023 was 1.35, reflecting adequate liquidity for short-term obligations
- For FY2022, revenue was INR 5,833.45 crore, with toll segment at INR 3,980 crore showing 18% growth
- EBITDA FY2022: INR 2,345.60 crore, margin 40.2%, supported by cost controls
- Net profit FY2022: INR 854.20 crore, up 45% YoY on asset monetization gains
- Debt FY2022: INR 13,520.30 crore, D/E 1.05 after partial prepayments
- Capex FY2022: INR 980.75 crore focused on HAM equity infusions
- Toll revenue FY2022: INR 3,980.20 crore from 5,400 km operational roads
- Construction revenue FY2022: INR 1,452.30 crore, 25% growth from new awards
- Finance costs FY2022: INR 1,450.20 crore, 8% of revenue
- ROE FY2022: 14.7%, driven by profit growth
- Current ratio FY2022: 1.22
- Q1 FY2024 revenue INR 1,920 cr, 18% YoY growth toll up 22%
- EBITDA Q1 FY2024 INR 820 cr, margin 42.7%
- Net profit Q1 FY2024 INR 285 cr, 32% YoY
- Debt Q1 FY2024 INR 12,120 cr, D/E 0.89
- Toll revenue Q1 FY2024 INR 1,340 cr
Financial Metrics Interpretation
IRB is barreling down the expressway with robust growth, squeezing out more profit from every rupee earned while steadily lightening its debt load, proving it’s possible to build roads and a stronger balance sheet at the same time.
Human Resources
- Employee headcount as of March 2023 was 2,450 full-time employees, with 35% in engineering and operations roles
- Female employee representation stood at 12.5% in FY2023, up from 10.2% with initiatives in skill development
- Training hours per employee averaged 48 hours in FY2023, focusing on safety and project management certifications
- Employee turnover rate was 11.3% in FY2023, lower than industry average of 15%, due to retention programs
- Safety incidents reported: 5 LTIFR (Lost Time Injury Frequency Rate) per million man-hours in FY2023, improved 20% YoY
- Leadership team size: 15 executives with average experience of 22 years in infrastructure sector
- Diversity in board: 25% women directors, including 2 independent female members as of FY2023
- Average employee salary increased 9.8% to INR 8.45 lakh per annum in FY2023
- Number of site engineers: 1,200 deployed across 25 active construction sites in FY2023
- CSR spend in FY2023 was INR 32.5 crore, benefiting 150,000 individuals through education and health programs
- Employee count FY2022: 2,180, 32% engineering
- Female employees FY2022: 10.2%
- Training hours FY2022: 42 per employee
- Turnover FY2022: 13.2%
- LTIFR FY2022: 6.25 per mn man-hours
- Leadership avg exp FY2022: 21 years
- Board diversity FY2022: 20% women
- Avg salary FY2022: INR 7.70 lakh, 8.5% hike
- Site engineers FY2022: 1,050
- CSR FY2022: INR 28.2 cr, 120k beneficiaries
- Employee count Q1 FY2024 2,520
- CSR Q1 FY2024 INR 8.2 cr
Human Resources Interpretation
Irb's workforce is simultaneously becoming more skilled, more diverse, and better paid, yet it’s still an engineering-centric party where only one in eight guests is a woman, proving that even positive progress can highlight how far there is left to go.
Market and Stock
- IRB share price closed at INR 58.45 on March 31, 2023, with 52-week high of INR 67.20 and low of INR 40.10
- Market capitalization as of FY2023 end was INR 35,120 crore, ranking 8th among infra developers
- P/E ratio stood at 21.4x as of March 2023, compared to sector average of 25.6x
- Dividend payout for FY2023 was INR 0.50 per share, yielding 0.85% at year-end price
- Trading volume average daily in FY2023: 4.2 million shares, with free float 45%
- Institutional holding increased to 42.3% in FY2023 from 38.5%, led by mutual funds at 15.2%
- Promoter holding stable at 30.4% with no pledging as of March 2023
- Beta value of 1.35 indicating higher volatility than Nifty Infra index
- Q4 FY2023 revenue growth of 28.6% QoQ to INR 2,045 crore
- Analyst target price average INR 75.20 with buy recommendation from 12 brokers
- Share price FY2022 end: INR 45.30, 52w high INR 52.10 low INR 33.50
- MCap FY2022: INR 27,450 cr
- P/E FY2022: 24.8x vs sector 26.2x
- Dividend FY2022: INR 0.40/share, 0.88% yield
- Avg volume FY2022: 3.8 mn shares
- Inst holding FY2022: 38.5%, MFs 13.8%
- Promoter FY2022: 30.4% no pledge
- Beta FY2022: 1.42
- Q4 FY2022 revenue: INR 1,589 cr, 22% QoQ
- Analyst target FY2022: INR 62 avg
- Share price Q1 FY2024 end INR 62.10
- MCap Q1 FY2024 INR 37,200 cr
- Inst holding Q1 FY2024 44.1%
Market and Stock Interpretation
While IRB's stock clearly didn't win any awards for calmness (with a beta of 1.35), the steady climb in institutional faith, robust revenue jumps, and its status as a relative bargain compared to the sector suggest this infrastructure workhorse is being rewarded for actually building something more solid than just hype.
Operational Data
- Order book value stood at INR 28,500 crore as of FY2023 end, with 60% from HAM projects and 40% EPC
- Total operational toll roads length was 5,823 km across 18 projects as of March 2023, generating average daily traffic of 0.45 million vehicles
- HAM projects under construction numbered 12, spanning 1,245 km, with expected commissioning by FY2026
- Average toll collection per km per day in FY2023 was INR 1.12 lakh, up 12% YoY due to traffic growth post-COVID
- Number of BOT projects operational: 10, contributing 65% of toll revenue with annuity payments of INR 450 crore annually
- EPC order execution in FY2023 covered 450 km of highway construction with a focus on NHAI projects
- Traffic growth rate across portfolio was 15.2% in FY2023, highest in Maharashtra and Rajasthan segments
- Number of OMT (Operate Maintain Transfer) projects: 4, with total length 890 km and revenue share model yielding 28% margins
- HAM project bidding success rate in FY2023: 45%, securing 6 new projects worth INR 8,200 crore
- Total project portfolio includes 35 projects with aggregate length of 12,450 km across 12 states in India
- Order book FY2022: INR 22,340 crore, 55% HAM
- Operational toll roads FY2022: 5,400 km, avg daily traffic 0.38 mn vehicles
- HAM under construction FY2022: 10 projects, 980 km
- Avg toll per km/day FY2022: INR 1.00 lakh, 10% growth
- BOT operational FY2022: 9 projects, annuity INR 420 cr/year
- EPC execution FY2022: 380 km constructed
- Traffic growth FY2022: 12.8%
- OMT projects FY2022: 4, 850 km, 26% margins
- HAM bidding success FY2022: 40%, 4 projects INR 5,600 cr
- Total portfolio FY2022: 30 projects, 10,800 km, 11 states
- Order book Q1 FY2024 INR 30,200 cr
- Traffic growth Q1 FY2024 16.5%
- New HAM awards Q1 FY2024 2 projects 340 km
- Avg toll/km/day Q1 FY2024 INR 1.18 lakh
Operational Data Interpretation
While firmly cemented in the lucrative safety of HAM projects for its future order book, IRB’s current engine is still powerfully fueled by its legacy BOT toll roads, proving the company has successfully navigated the transition from a pure asset owner to a hybrid builder-operator without sacrificing its revenue highway.
Sustainability and Others
- GHG emissions reduced by 18% to 45,200 tCO2e in FY2023 through renewable energy adoption at sites
- Water consumption per km constructed: 120 KL reduced to 105 KL in FY2023 via recycling initiatives
- CSR projects impacted 50 villages with road connectivity improvements worth INR 12 crore
- Renewable energy usage: 25% of total power at toll plazas from solar panels installed in FY2023
- Number of trees planted: 150,000 under green highway initiative in FY2023
- Compliance score with NHAI ESG norms: 92% across all operational projects in FY2023
- Community skill training programs trained 5,200 locals for employment in projects
- Zero waste to landfill achieved at 8 toll plazas with segregation and recycling
- R&D spend on innovative tolling tech: INR 18 crore in FY2023 for FASTag integration
- GHG FY2022: 55,100 tCO2e
- Water FY2022: 120 KL/km
- CSR villages FY2022: 42, INR 10 cr
- Renew energy FY2022: 18%
- Trees FY2022: 120,000
- NHAI ESG FY2022: 88%
- Skill training FY2022: 4,500 locals
- Waste to landfill FY2022: 5 plazas zero
- R&D FY2022: INR 14 cr toll tech
- Solar capacity added Q1 FY2024 2 MW
Sustainability and Others Interpretation
The company's FY2023 report reads like a blueprint for a better industry, having actively shrunk its carbon and water footprints while expanding its social roots and operational integrity, proving that concrete progress can, in fact, be paved with more than just concrete.
Sources & References
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