On October 9, shares of IRB Infrastructure experienced a 3 percent decline in early trading as investors chose to book partial profits following a substantial gain of nearly 5 percent in the previous session. This decline came despite the company’s impressive report of a 28-percent increase in toll revenue for September.
In September, IRB Infrastructure’s toll revenue reached Rs 421 crore, marking a significant increase from the Rs 328 crore reported in the same month the previous fiscal year.
This robust trend in toll collections was also evident throughout the July-September quarter, with revenue surging 22 percent year-on-year to reach Rs 1,203 crore, compared to Rs 984 crore in the corresponding quarter of the previous year.
As of 09:27 am, IRB Infra shares were trading 1.4 percent lower at Rs 32.05 on the National Stock Exchange.
The increase in toll collection aligns with the company’s expectations of achieving a 20-percent revenue growth in FY24 from its toll collection business. This positive outlook remains intact despite a decline in exports and a slowdown in e-commerce sales during the April-June period, as stated by Anil Yadav, the Director of Investor Relations at IRB Infrastructure, in a conversation with Moneycontrol.
According to Yadav, the company has not witnessed any significant impact on toll collection due to reduced exports and a slowdown in e-commerce sales. He emphasized that the growth in toll collection would largely depend on the overall economic growth, and the company anticipates ending the year with approximately 20 percent growth in toll revenues.
Yadav attributed this resilient revenue growth to the commissioning of sections of the eastern and western dedicated freight corridors. In the fiscal year 2022-23, IRB Infrastructure recorded a total of Rs 4,179.50 crore in toll revenue. Additionally, the first quarter of 2023-24 witnessed an 18 percent year-on-year increase in revenues, reaching Rs 1,183 crore, compared to the approximately Rs 1,000 crore generated in the first quarter of 2022-23.