Shares of IRB Infrastructure Developers Ltd dropped by up to 4% in early trade on October 31, following a tepid quarterly performance in the July-September period. The company’s revenue declined over 9% year-on-year, from Rs 174.5 crore in the previous fiscal quarter to Rs 158.6 crore, primarily due to prolonged monsoon disruptions affecting project timelines and toll revenues.
By 10:20 am, IRB Infra’s stock was trading at Rs 52.19 on the National Stock Exchange (NSE). The drop extended its three-month decline to over 21%, reflecting investors’ concerns over the company’s revenue challenges and the impact of seasonal factors on its financial performance.
Despite the revenue setback, IRB Infra reported a 4.3% increase in consolidated net profit, reaching Rs 99.8 crore compared to Rs 95.7 crore in the same period last year. This marginal improvement in net profit was attributed to higher operating margins, which offset the revenue dip to some extent.
IRB Infra’s core business, centered around infrastructure projects and toll road operations, often faces revenue variability due to weather and regulatory conditions, both of which have impacted its recent performance. Looking ahead, investor sentiment may remain cautious until seasonal and operational challenges stabilize, and revenue growth shows consistent recovery.
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Source: Moneycontrol
News Desk
