IRB Infrastructure Developers Limited analyst Q&A

The first question is from the line of Deepak Krishnan from Kotak Institutional Equities. Please go ahead.

Hi Sir, I just wanted to sort of understand we've been hoping for this BOT, TOT bids to come through and they were about INR 45,000 crores worth of projects initially expected to be bid out on BOT basis. A re we close to getting bid finalizations for L1 on any projects and what do you think is the timeline for sort of BOT wins to come through for IRB?

Yeah. Good evening. You're right. The number in terms of biddable amount of projects on BOT and TOT remains unchanged and there has been a slight delay because of some clarifications that have been sought by the prospective bidders. But otherwise, everything looks as it were, as robust as it was, and we are very much looking forward for the upcoming bids.

So maybe in Q2, is it a possibility or would it be you know Q3 and Q4 when actual awards would come through.

No no. Q2 for sure should see some activities and some awards coming through.

Sure. And similarly on the TOT, because you've indicated that you're not.

Sure. And maybe just a follow up. So obviously we've added a lot of assets to the private InvIT. The revenue growth has been pretty strong in terms of t oll collections. When does that sort of positivity start reflecting in terms of lower losses, you know adjusting for the accounting adjustments you have to do for the legacy assets. Now for the full year, like what kind of loss number do we think we will end up with?

Krishnan, I think the losses have two parts. One is the fair valuation loss, which is the book entry, there is no cash loss as such and that will be close to 40 crores for the quarter i.e. 20 crores share of IRB. Apart from that, if you look at current quarter, it's a 34 crores kind of loss and as typically, we see Q3 and Q4 toll numbers are better from there we should start seeing these losses coming down. And probably from next financial year we will have a positive number from the share of minority. Further, there is net distributable surplus in Private Invit and has started regular quarterly distribution from last year.

Sure Sir, those were my questions. Thank you.

Thank you very much. The next question is from the line of Alok Deora from Motilal Oswal Financial Services. Please go ahead.

Hi, Sir. Good evening. So just a couple of questions. One is similar to the previous question. So, you know if you look in on overall basis also there has been hardly any awarding b y NHAI till date in this financial year and typically we don't see many projects coming in during the monsoon period as well. So is it fair to assume that anything material will only come by from November, December onwards and also many people are struggling, many contractors are struggling for orders so will there be decent competition?

No. Look, I think you're very right. We have been saying this for a long time now that the EPC and the HAM part of the b idding is likely to see a considerable slowdown and that is now reflected from what you just said. But as regards to TOT and BOT pipeline is concerned, there is an active dialogue happening between the prospective bidders and NHAI and as I said, whatever deferments or delays in the bid dates has happened is primarily due to clarification that the prospective bidders have sought. And I think a better prepared bid will be a good thing for the industry as a whole and the delays that we are seeing are not anything to do with lack of push from the government, but a part of the procedural aspects regarding getting the full information in the right manner before committing a bid, given the long-term investment that it involves. So, as I said, the BOT and TOT side of the bidding remains very, very robust and we are very much going to be a part of that bidding process.

Sure. So, the consultations or you know to and fro has that been completed now or it could it's still in like a dialogue state?

So Alok as I said we expect a few weeks to see the light of the day in the Q 2. And for Q3, I think definitely there will be a lot more of it. But Q2 also, we feel that there will be some good number of outcomes on BOT plus TOT put together.

Sure. And on the toll projects, so have you taken any toll price increase in Q1? Typically, there are lot of projects where toll price gets change effective April. So just some color on that?

Yes, the tariff revision which was delayed due to model code of conduct, was finally given a go ahead and from the first week of June itself, the same has been implemented and that that's in place now for all the NHAI projects.

Sure. Just one last thing, what kind of order flows we are looking at for this financial year considering the certain delays in bidding and you know what's the order inflow target for this year?

Order inflow target from NHAI is a very big number of 2 lakh crores. Now significant part of that will be BOT and TOT is what they have talked about and if you look at our market share presently on the BOT which is close to 10% and TOT which is at 38%, we will definitely strive hard to maintain our lead in both the verticals.

Got it. Got it, Sir. That's all from my side. Thank You and all the best, Sir.

Thank you.

The next question is from the line of Ketan Jain from Aven dus Spark. Please go ahead.

Thank you. Good evening, Sir. my question is on the same BOT pipeline. So, can you quantify the value of projects in the near term in BOT mode from NHAI?

The list is already out. I think we have given it as a part of the presentation that you see, the presentation is on the website. Slide 26 if you see, we have given an exhaustive list.

Understood. OK, Sir, I'll refer to that. So, my next question is on what are the key changes in the concession agreement which N HAI has proposed and will it benefit the contractors?

It will benefit. There is a whole host of reforms that they have carried out.

Any major ones which will help us?

It's actually a small presentation. We can send out to you a small presentation on that. Slide 24 has few of those already listed on our presentation.

OK, fine, Sir.

Yeah. Thank you, Sir. there are some shares owned by the promoter, which is shown as pledge. Can you throw some light on the same?

Yeah, there is a non-disposal undertaking given by us as promoters of the Company. I want to clarify here that there is no promoter loan, or any credit availed against any of the NDU that has been given . P rimarily when GI C and Cintra made the large equity investment of five odd thousand crores in December 21, they wanted this NDU to be placed to give them the comfort that the existing sponsor interest remains aligned with them and it is a ND U given for next few years that the promoters will continue to remain aligned and continue to lead the Company in terms of project wins and take the business forward. So, this is more of a non-disposal undertaking. It is not a pledge, nor is there any credit availed against any of these shares.

OK, so there won't be any major impact on the shareholding pattern of the company from that?

No, no, no, not at all.

OK. Thanks.

The next question is from the line of V aibhav Shah from JM Financial Limited. Please go ahead.

Hi Sir. So, what would be the breakup of other income within EPC and BOT?

22 crores in BOT and balance in construction side.

And th is should be similar over the next 2/3 quarters as well. Will th e trend remain similar?

We can expect similar trend.

Ok. Thank you sir.

Thank you.

As there are no further questions from the participants, I now hand the conference over to Mr. Virendra Mhaiskar for closing comments.

I would like to thank all of you for taking time out and attending this analyst call. Look forward to catch up with you on the next quarterly results call. I wish you a very happy and good weekend. See you and connect with you soon. Thank you.

Thank you, Sir. Ladies and gentlemen, this concludes your conference for today. We thank you for your participation and for using Researchbytes conferencing services. You may please disconnect your lines now. Thank you and have a great evening ahead.