+
We continued to focus on liquidity and a strong balance sheet
Real Estate

We continued to focus on liquidity and a strong balance sheet

Virendra D Mhaiskar, Chairman & Managing Director, IRB Infrastructure Developers With a modest beginning in 1998, IRB Infrastructure Developersis among the largest private roads and highways infrastructure developers in Indiatoday, with an asset base of over Rs 450 billion. T...

Virendra D Mhaiskar, Chairman & Managing Director, IRB Infrastructure Developers With a modest beginning in 1998, IRB Infrastructure Developersis among the largest private roads and highways infrastructure developers in Indiatoday, with an asset base of over Rs 450 billion. The company has a strong track record of constructing over 12,300 lane km panIndia and has the capacity to construct over 500 km a year. It has an approximate 20 per cent share in India’s prestigious Golden Quadrilateral project, the largest by any Indian private infrastructure developer.IRB Group’s portfolio comprises 21 projects, including 19 BOT, one TOT and one HAM. Virendra D Mhaiskar, Chairman & Managing Director, IRB Infrastructure Developers, shares more…. Major challenge faced in FY2019-20 and the company’s approach to it:FY2020 was a difficult year as new opportunities were scarce and most of Q4FY2020,when a good number of tenders by NHAI were lined up, was lost owing to the pandemic. We continued to focus on liquidity and a strong balance sheet while tapping unfolding growth opportunities to the extent possible. Biggest contributor to the company’s growth in FY2020: There were two notableevents that made us stronger and provided growth visibility over the long term. One was joining hands with one of the largest Global Sovereign Funds, GIC (Government of Singapore Sovereign Fund) to launch the Private Infrastructure Trust (IRB Infrastructure Trust),with a 51:49 ownership between IRB and GIC Affiliates. We used invested funds to reduce debt by Rs 30 billion and for ongoing execution. The second was securing the largest and one of the most prestigious TOT projects in India—the Mumbai-Pune Expressway—for a fee of Rs 82.62 billion to be paid in four instalments till March 2023 for a concession tenure of 10.2 years. A decision avoided that helped impact the topline and bottomline:The company has always followed financial discipline and taken up cautious growth options based on our strengths, capabilities and balance sheet flexibility. We have and continue to refrain from aggressive bidding or commitments just to grab short-term gains by compromising on fundamentals and quality. This has insulated us from unwarranted pressures and shocks while creatinghigh trust and confidence among all stakeholders. Plans for growth in FY2020-21 amid the uncertainties the COVID-19 pandemic has brought about:The pandemic has caused delays in awarding activity from NHAI, softened traffic across projects, stretched the working cycle for construction,and introduced a new normal of operations and safety standards. Traffic is reaching pre-COVID levels gradually as the lockdown is being eased across the country. With achiselledand efficient balance sheet, strong cash-flow generating portfolio and technology-driven operations backbone, we are well poised to tap new opportunities in the sector—whether it is BOT, TOT or HAM—after due evaluations. We are keenly focused on the BOT segment in upcoming bids and have won Rs 26 billion worth of projects in West Bengal, ensuring a steady growth in the order book as well as toll revenues in the long term. IRB Infrastructure Developers Total Income EBITDA Reported PAT FY20 (Rsbillion) 70.47 31.66 7.20 Growth over FY19 (%) 2 1 -15.19* *FY20 numbers are not comparable due to transfer of nine assets to Private InvIT for part of the year and impact of COVID-19 lockdown.

Next Story
Technology

Minda, Qualcomm Join Forces for Smart Auto Cockpit Tech

Minda Corporation Limited, the flagship of the Spark Minda Group, has announced a strategic partnership with Qualcomm Technologies, Inc. to develop intelligent and connected cockpit solutions for the Indian automotive market. The upcoming smart interface will be powered by Qualcomm’s Snapdragon Cockpit Platform.Commenting on the collaboration, Suresh D, Group CTO of Minda Corporation, said, “This partnership with Qualcomm Technologies marks a major milestone in advancing Minda’s digital cockpit capabilities. By utilising Qualcomm’s cutting-edge automotive platforms, we can now offer se..

Next Story
Infrastructure Transport

Railways Spent Rs 604.7 Billion on Passenger Subsidy in FY24

New Delhi – The Indian Railways provisionally spent Rs 604.7 billion in subsidies during the financial year 2023–24, covering 45 per cent of passenger travel costs, Railway Minister Ashwini Vaishnaw informed the Lok Sabha on Wednesday.In a written response to questions from multiple Members of Parliament regarding the recent rail fare hike, Vaishnaw stated that the Indian Railways continues to offer one of the most affordable transport services globally, ferrying over 7.2 billion passengers annually."The total amount of subsidy provided in FY 2023–24 on passenger travel is provisionally ..

Next Story
Infrastructure Urban

Auto Sector Can Cut Emissions by 87% by 2050: CEEW

India’s automobile industry could reduce its manufacturing emissions by 87 per cent by 2050 through a shift to green electricity and low-carbon steel, according to a study released by the Council on Energy, Environment and Water (CEEW).The report estimates that if original equipment manufacturers (OEMs) and their suppliers target net-zero emissions by 2050, annual emissions could fall from a projected 64 million tonnes of CO₂ (under the business-as-usual scenario) to just 9 million tonnes. This would require OEMs to adopt 100 per cent green electricity and steel suppliers to source 56 per ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?