IRB Infra

IRB Infra, on the face of its has posted a good performance for Q1FY15. Its consolidated net profit for the quarter rose 12% (YoY) at Rs.150 crore and this was despite an over 2% decline in its total income at Rs.1037 crore. EBITDA rose 22% at Rs.589 crore, clearly indicating that it were the lower costs which helped the company boost its bottomlines. Total operating expenses for the quarter came down from Rs.699 crore to Rs.624 crore. What also helped was that its tax outgo fell by 27% at Rs.45 crore. Thus more than operational efficiency, it was more about smart cost management which helped the company end the quarter with a higher net profit. is currently the top gainer on the BSE, up almost 6% at Rs.252.80, with an intra day high at Rs.255.50.

More than the performance, the market and analysts are enthused by its strong order book position. The company has stated that its order book currently stands at Rs.11350 crore and of this, Rs.9400 crore worth orders are to be executed in the next 3-4 years. This means that the company will have a good visibility over the next three years and the market is more enthused with this fact.