IRB Infra gains 3% as arm executes pact for Rs 6,555-cr Ganga Expressway project

NEW DELHI – Shares of IRB Infrastructure Developers added 3.4 per cent in early trade Friday as the construction player said its wholly-owned arm had executed a concession pact with Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) for the Rs 6,555 crore Ganga Expressway project in the state.

The counter rose to a high of Rs 238.50 against the previous close of Rs 230.60 on the National Stock Exchange.

"Meerut Budaun Expressway Private Limited, wholly-owned subsidiary of the company, has now executed a concession agreement with...UPEIDA for the project of development of access controlled six-lane (expandable to eight-lane) Greenfield Ganga Expressway...in the state of Uttar Pradesh on DBFOT (Toll) basis under PPP," the filing said.

IRB Infrastructure Developers said that the viability gap funding is Rs 1,746 crore.

In July-September, the company had reported a consolidated net profit of Rs 42 crore.

The company had posted a consolidated loss of Rs 20 crore in the corresponding quarter of the previous fiscal.

Total income during the quarter under review increased to Rs 1,504 crore from Rs 1,169 crore in the year-ago period.

The company said toll collections had witnessed pre-COVID-19 levels across almost all BOT (build-operate-transfer) assets, with a meaningful pick-up in economic activity across the country.

The top management had expressed optimism about the company’s earnings prospects despite the second wave of the Covid-19 pandemic.