The conversation revolves around the infrastructure sector, specifically the construction and awarding of projects. The speaker, Anil Yadav, the Director of Investor Relations and former group Chief Financial Officer at IRB Infra, discusses the trends and prospects in the sector.
Yadav mentions that the government has championed a capex-led post-covered recovery, and the momentum of capex needs sustenance for a multiplier effect ahead of the central elections. He also mentions that IRB Infra is quite bullish on the stock and is in the topic of infrastructure.
Yadav provides an update on the award activity in the sector. He mentions that the award activity has been slower this year, but he expects it to pick up in the run-up to the general elections. He also mentions that there is a significant increase in the award activity expected by the end of the year, with an additional 3000 kilometers to be awarded.
Yadav discusses the bidding pipeline for the rest of the financial year. He mentions that the pipeline is expected to be around 3000 kilometers, with 40 to 45 percent of this expected to be on a Build-Operate-Transfer (BOT) basis. He also mentions that IRB Infra has a 33.5 billion order book, with 12 billion already in hand.
Yadav discusses the potential for private participation in the sector. He mentions that the National Highways Authority of India (NHAI) is borrowing, indicating a potential increase in private participation. He also mentions that this has led to an increase in the BOT pipeline to 40 to 45 percent, providing a competitive advantage for IRB Infra.
Yadav also discusses the arbitration claim of 3600 crores in Ahmedabad and Vadodara. He mentions that they are expecting a resolution before the end of the financial year.
Finally, Yadav thanks the interviewer for the opportunity to discuss the business and the way forward for the sector.
1. The government has championed a capex-led post-covered recovery.
2. The capex momentum needs sustenance for a multiplier effect ahead of the central elections.
3. The management of IRB Intra Antique is quite bullish on the stock.
4. Anil Yadav, the director of investor relations and former group Chief Financial Officer at IRB Infra, is a key figure in the discussion.
5. The trends on the ground have seen a revival in the capex cycle and in the run-up to the general elections.
6. The demand spending is shaping up.
7. This year, there has been a significant decrease in the award cycle.
8. The project will get awarded and there is a Septa in terms of award activity.
9. There will be a significantly increased bot award by the year-end.
10. The bot award will be 40 to 45 percent.
11. The bot award will be for the BoTToT and Ham project.
12. The near-term award could be closer on 800 kilometers.
13. The demand that's like to come out will be Geared for bot projects.
14. In the past, there have been around four to five players coming and bidding for the beauty.
15. The balance sheet of IRB used to have a consolidated debt to equity around 2.25.
16. The equity contribution will come down to 51, 49 will be participated by GIC.
17. The pipeline for the rest of FY24 is expected to be 3000 kilometers, which will be expected to be awarded in this financial year.
18. Out of that, 40 to 45 percent will be on Dot and balance will be EPC.
19. As far as IRB is concerned, they have a 33,500 crores of order book already in hand.
20. Out of that, roughly 12,000 crores is the executive order book.
21. The ministry of Rhodes has spent about 40 percent of its budgeted estimate till Q1.
22. In Q2, the spending has been slower.
23. The arbitration claim, which is close to 3600 crores, is expected to be resolved before the end of this financial year.