IRB Infra's SPV gets completion certificate for UP-based road project

IRB Hapur Moradabad Tollway has received completion certificate from NHAI for its Hapur to Moradabad six laning highway project in Uttar Pradesh.

Consequently, the company can now collect toll at higher tariffs, increasing by approximately 65% over existing toll tariffs.

IRB Hapur Moradabad Tollway, the special purpose vehicle of IRB Infrastructure Developers, is now a part of IRB Infrastructure Trust - Private InvIT.

IRB Infrastructure Developers had earlier bagged the project of six laning of the 99.867 Kms section of Hapur to Moradabad stretch on NH-9 in Uttar Pradesh on Design, Build, Finance, Operate & Transfer (DBFOT) basis with concession period of 22 years.

This project is a part of the IRB Infrastructure Trust, a Private InvIT, which will significantly benefit with cash-flows accruing from approximately 65% increase in toll tariffs, the company said in a statement on 1 July 2022.

Commenting on this development, Virendra D. Mhaiskar, chairman & managing director, IRB Infrastructure Developers said: "We are pleased to announce completion of the Hapur - Moradabad six lane highway project in UP. This is a remarkable feat for us and signifies strength of our team to successfully manage and overcome challenges posed during unforeseen pandemic period. The corridor will now bring congestion free, safe, time saving and more comfortable traveling experience to the commuters."

He added, "Second COD achieved after the first one in April 2022 for Vadodara to Kim HAM project in Gujarat, and start of execution for another 3 projects in the first quarter of FY23 - this speaks loads about return to normalcy as well as strengthened focus on execution by IRB team. We look forward to a robust year ahead."

IRB Infrastructure Developers is India's first multinational infrastructure player in highways segment. At present, IRB Group's portfolio (including Private and Public InvIT) has 22 road projects that include 17 BOT, 1 TOT and 4 HAM projects.

On a consolidated basis, net profit of IRB Infrastructure Developers jumped 79% to Rs 174.50 crore on 10.7% decline in revenue from operations to Rs 1433.62 crore in Q4 FY22 over Q4 FY21.

Shares of IRB Infrastructure Developers fell 2.68% to Rs 201.70 on Thursday.

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