On September 19, 2019 the National Highways Authority of India (NHAI) terminated two hybrid annuity model (HAM) projects, bagged by the company, in Tamil Nadu on account of in ability to acquire land.
“IRB Infra’s revenue is expected to have a flat growth of 1 per cent year-on-year (YoY) due to completion of on-going projects and termination of two HAM projects which lead to negative growth (-3 per cent YoY) in construction vertical. Toll collection, however, is expected to post steady growth of 10 per cent YoY,” brokerage firm Narnolia Financial Advisors said in a results preview note.
“Interest cost will go up by 46 per cent YoY on account of commencement of toll collection on Goa Kundapur BOT (build-operate-transfer) projects and draw down of debt on under construction 4 to 6 lane projects. The profit after tax growth is expected to grow by 5 per cent YoY to Rs 182 crore”, it added.
According to a sector report by Anand Rathi Research dated October 10, total investments intentions of Rs 0.3 trillion were announced during the month of September which was far below the average of past 24 months of around Rs 1 trillion, aand were down 68 per cent YoY.
"Of the announced investment intentions, the decline was largely in the others segment (specifically in manufacturing). Railways and roads, too, saw their shares in announced intentions decelerating," the brokerage firm added.