NewKerala.com

Key Points

IRB Infrastructure experienced a dramatic 96% net profit decline in Q4 FY25, falling from Rs 6,026.1 crore to Rs 214.7 crore. Despite the steep profit drop, the company saw a modest 6% increase in revenue and highlighted a strong 23% growth in toll revenue. Chairman Virendra Mhaiskar remained optimistic about future infrastructure projects, particularly in the Public-Private Partnership sector. The company remains confident about potential momentum in upcoming Build-Operate-Transfer and Toll-Operate-Transfer project bids.

Key Points: IRB Infra Net Profit Crashes 96% Despite Toll Revenue Growth

  • Q4 net profit drops 96% from previous quarter
  • Toll revenue shows 23% year-on-year growth
  • Company optimistic about infrastructure projects
  • Revenue marginally increases despite profit fall
2 min read

Construction firm IRB Infra's net profit crashes 96 pc in Q4 FY25

Mumbai-based IRB Infrastructure reports dramatic Q4 profit decline while highlighting positive toll revenue performance and future project optimism

"The company also began operations on two new TOT projects that have so far exceeded expectations - Virendra D. Mhaiskar, Chairman"

Mumbai, May 19

Highway construction firm IRB Infrastructure Developers Limited on Monday reported a sharp decline of 96.43 per cent in its net profit after tax (PAT) to Rs 214.7 crore for the fourth quarter (Q4) of FY25, compared to Rs 6,026.1 crore in the previous quarter (Q3 FY25).

However, the company reported Rs 5,804 crore as exceptional gains in the December quarter.

On the expenses side, the company saw a quarter-on-quarter (QoQ) rise of 7.23 per cent in total expenses, which stood at Rs 1,895.3 crore in Q4 compared to Rs 1,767.6 crore in Q3, according to its stock exchange filing.

The cost of materials consumed surged by 78.28 per cent, while other expenses went up by 26.14 per cent during the same period.

Additionally, there were steep fall in profit before tax -- down 94.74 per cent from Rs 6,126.8 crore in Q3 to Rs 322.5 crore in Q4.

The Mumbai-based construction firm’s revenue from operations rose by 6.11 per cent in Q4 to Rs 2,149.2 crore, up from Rs 2,025.4 crore in Q3.

The company’s total income also increased by 6.10 per cent to Rs 2,217.8 crore in Q4 from Rs 2,090.3 crore in the previous quarter.

However, compared to the same quarter last year, the total income was down by 11.44 per cent.

Despite the drop in bottom line, IRB’s Chairman and Managing Director, Virendra D. Mhaiskar, expressed optimism.

He highlighted a 23 per cent year-on-year (YoY) growth in toll revenue, which he said outpaced the national average of 12.5 per cent.

He noted that while the first half of the year was impacted by general elections, the second half witnessed strong growth.

“The company also began operations on two new TOT (Toll-Operate-Transfer) projects that have so far exceeded expectations,” he mentioned.

Mhaiskar added that with the government’s continued focus on Public-Private Partnership (PPP) projects in the Union Budget, IRB remains confident about stronger momentum in upcoming BOT (Build-Operate-Transfer) and TOT project bids.

IRB Infrastructure is an integrated multi-national transport infrastructure developer in the roads and highways segment.

- IANS

Share this article:

Reader Comments

R
Rahul K.
This is concerning for infrastructure development in India. IRB handles major highway projects and such a massive profit drop might affect their future bids. Hope the government's PPP push helps them recover. 🚧
P
Priya M.
The 96% profit crash looks scary but we must note they had exceptional gains last quarter. Still, 78% rise in material costs is worrying - shows how inflation is hitting infrastructure projects. Government should control steel/cement prices.
A
Amit S.
As a shareholder, I'm disappointed but not panicking. The toll revenue growth is promising and new TOT projects doing well gives hope. Infrastructure is long-term game. Chalta hai, next quarter will be better!
N
Neha T.
Why is no one talking about the election impact mentioned by MD? Political uncertainty always affects infra projects. Now that elections are over, we should see better performance. Roads are crucial for Bharat's growth!
S
Sanjay V.
The numbers look bad but context matters - that exceptional gain in Q3 was clearly one-time. YoY comparison would give better picture. Still, company needs to control operational costs better. 26% rise in other expenses is too much.
K
Kavita R.
Infrastructure companies like IRB are backbone of our economy. Instead of focusing only on profits, we should appreciate they're building quality roads despite challenges. Their optimism about PPP projects shows confidence in Modi government's policies.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50