BY GROUP 7-

APURV SHARMA
DEVDUTTA NANDI
HEMANTH K.
KOUSTUBH CHOUBEY
SWATI SINHA
 CONTENTS
INTRODUCTION
INDUSTRY OVERVIEW
COMPANY OVERVIEW
FINANCIAL ANALYSIS
TECHNICAL ANALYSIS
FUTURE OUTLOOK
CONCLUSION
IRB INFRASTRUCTURE DEVELOPERS LTD- An Introduction

IRB Infrastructure Developers Ltd. is country’s leading highway

construction company founded in Mumbai in 1938.
It is the part of IRB Group and is also headquartered in Mumbai,
Maharashtra.
The Company was incorporated as a private limited company “DVJ
Leasing and Finance Private Limited” on July 27, 1998 under the
Companies Act, 1956. The name of the Company was changed to
“IRB Infrastructure Developers Private Limited” on 8 th November,
2006, which was decided during the shareholder’s general meeting.
On 25th November, 2006, the Company became a Public Limited
Company and the word “private” was deleted from its name.
Mr. Virendra D. Mhaiskar is the chairman & Managing Director of
the Company.
 INDUSTRY OVERVIEW
The Indian infrastructure industry is playing the key
role in the nation's progress towards achieving the
status of "developed nation" from "developing nation".
The Indian government is aggressively focused on road
development and expects potential investments worth
US$ 70bn over 2007–12, which is close to double the
investments made in the sector during 2002–07 (Rs
1,450bn: US$ 40bn).
Out of this investments, about 55% of the funding is
expected to come from the private sector, with
government support for the balance.
 INDUSTRY OVERVIEW
 National highways, which comprise 2% of the road
network, carry 40% of the road traffic. The 11th Five Year
Plan charts out a total investment outlay of Rs 725bn for
central sector roads.
BREAK-UP OF INVESTMENTS IN THE 11TH PLAN
 COMPANY OVERVIEW
IRB Infrastructure is a Rs. 1900 crore company and is the India’s
largest toll road operators, which is constructed and maintained
over 1150 km of roads.
IRB Infrastructure has a portfolio of 14 BOT road projects, of
which 11 are operational, 2 are under construction and 1 is yet to
achieve financial closure. The capitalized cost of these projects is
Rs 64.7 billion, funded through equity of Rs 13.3 billion and the
balance through debt.
Despite the difficult market conditions, the company has been able
to achieve financial closure for its Rs 27 billion Surat-Dahisar
project, although with a delay of three months.
The aggregate size of all BOT projects (both completed and under
execution) is around Rs. 33,000.00 million.
 COMPANY OVERVIEW
SUBSIDIARIES-

BOT PROJECTS :

 IRB Surat-Dahisar Toll way Pvt. Ltd.

 IDAA Infrastructure Pvt. Ltd. (Bharuch-Surat)
 Mhaiskar Infrastructure Pvt. Ltd. (Mumbai-Pune)
 Ideal Road Builders Pvt. Ltd. (Thane-Bhiwandi etc.)
 Thane Ghodbunder Toll Road Pvt. Ltd.
 ATR Infrastructure Pvt. Ltd. (Pune-Nasik)
 Aryan Toll Road Pvt. Ltd. (Pune-Solapur)
 IRB Kolhapur Integrated Road Development Company Pvt. Ltd.
 NKT Toll Road Pvt. Ltd.
 IRB Infrastructure Pvt. Ltd.
 MK Toll Road Pvt. Ltd.
 COMPANY OVERVIEW

ENGINEERING & CONSTRUCTION :

 Modern Road Makers Pvt. Ltd.

REAL ESTATE :
 Aryan Infrastructure Investments Pvt. Ltd.

HOSPITALITY :
 Aryan Hospitality Pvt. Ltd.

IRB Infrastructure Developers Ltd has entered into a pact with

Indian Hotels Co Ltd to construct and operate a Gateway Hotel for
the latter at Kolhapur in Maharashtra.
 FINANCIAL ANALYSIS
As the company is Construction Company they do not have
long term asset, Govt is providing the interest free loan to the
company they are repaid on demand.
They also do not possess any long term liabilities. IRB has
expanded their organization; they have several government
contracts in road construction, now into the realty sector also.
New projects like Tumkur-Chitradurga project order and
contribution in Golden Quadrilateral will all lead to increase in
current assets which are increasing at a high rate for the past
few years. This will constitute the increase in loans and
advances by a substantial amount of 207.8% in 2010 as
compared to 2009. As the market rate is fluctuating so their
operation is to utilize the current asset.
 FINANCIAL ANALYSIS
IBR has significant increase in current asset year on year like
an increase of 146.1% on 2010 as compared to 2009 this is
mainly due to increase in loans and advances.
They don’t maintain any inventory as material purchased will
be immediately used for their day to day business
(construction) activities.
In case of Sundry Debtors when compared to previous year
the debtors time period has been reduced they are
maintaining the liquidity by collecting the cash from debtors
as soon as possible.
They have maintained the liquidity, increase in cash position
is moderate and in case of creditors they have increase the
creditors such that they can use the cash for business.
 FINANCIAL ANALYSIS
Their net sales increases year on year .Their profits is also
increasing, for the first time in 2009 they have given the Dividend.
Even though the company enjoys the profit growth it is not from the
operations, the profit figures are purely based to other recurring
income.
The company operations are not well because the selling expense
when compared to previous year increases personal expenses,
administrative expenses increases, even though employee cost
increases at around 41%.
The company is much focused in generating income even from other
sources in addition to its business activities. The major portion of
profit of the company is covered by the income from investments.
The share prices for the past one year fluctuate between 308-295 as
its price objective for its share has been fixed at Rs 324.
 TECHNICAL ANALYSIS
 IRB Infra share price after listing around Rs. 200 in Feb 08 had fallen
to Rs. 68 in Nov 08 since then it is in recovery mode & crossed the
earlier peak of Rs. 220 and made a new all time high of Rs. 278 in Nov
09. Since then consolidating sideways, as share price has broken out
the Head & Shoulder pattern at Rs 220 and the next target is Rs. 370. It
has a support price around Rs. 230. Long term trend is at Rs. 350.
Medium term trend is at Rs. 324, one can accumulate the share at the
level of 250.
Script IRB Infra
 
Current Price Rs 278
 Long Term Trend Rs 370.85
Target Rs 324
 FUTURE OUTLOOK
 IRB has one of the largest domestic BOT project portfolios in the
Road and Highway Sector comprising 16 projects of which 10 are
operational. In light of the immense opportunities that exist in
the Road Sector in the near future, IRB’s vast experience and
inter-dependent business model, we maintain our bullish stance
on the company’s performance.
 As predicted by Meryll Lynch, it is good growing company. We
expect a significant jump in revenues and earnings, at a CAGR of
59% and 49% respectively over FY08-FY11, once the Bharuch-
Surat and Surat-Dahisar road projects start contributing to IRB’s
toll income. Since financial closure has been achieved, revenues
from Surat-Dahisar will kick in from February ’09 at the rate of
Rs 10mn per day, post revenue sharing with the NHAI (38% of
toll revenue in the first year). BOT projects contribute ~46% of
the company’s revenues but 70% of earnings in FY10E.
 FUTURE OUTLOOK

 Of the National Highway Development Programme

(NHDP) length of 53,100 km, projects completed / under
implementation stands at 19,812 km; and balance 33,130
km is yet to be awarded.
 Has to continuously operate in an ever increasing market,
as newer players have led to tougher competition and
bidding for projects.
 New Govt. guidelines will also force IRB to rethink their
strategy in terms of the viability of projects.
 Most new projects being offered by the NHAI require very
heavy project costs.(1000 crore or more)
 FUTURE OUTLOOK

Closure occurs when there is legally binding

commitment of private sponsors to mobilize funding
or provide services. The definition of financial or
contractual closure varies among types of private
participation as a result of availability of public
information.
 CONCLUSION
IRB Infrastructure Developers Ltd. was incorporated to fund
the capital requirements of the IRB Group initiatives in the
infrastructure sector.
Liquidity position for the current year is favourable. The
solvency position of the company is existent. This can be
extracted by saying that the company used its own funds for
meeting the investments and financial costs.
Profits are mainly dependant on other income sources but not
the operation.
For the long term assets and liabilities, the debt equity ratio is
fairly well as the company is using its own funds; therefore it
faces low liquidity risk.
Net working capital is increasing over the period of time.
 REFERENCES

Websites :
http://www.irb.co.in
http://company.monsterindia.com/irbinin/
http://www.indiainfoline.com
http://profit.ndtv.com/company/notices/irb-infrastructure-
developers-ltd
http://www.business-standard.com/india/
http://money.rediff.com/
http://www.capitaline.com/user/framepage.asp?id=1
http://www.investopedia.com/
http://www.wikipedia.org/
Research Reports:
http://www.iimcal.ac.in/
http://www.bfsl.co.in/Pdf/
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