Are IRB Infra.Devl. latest results good or bad?

IRB Infrastructure Developers has reported its financial results for the quarter ending March 2025, highlighting several key operational trends. The company achieved a Profit Before Tax (PBT) of Rs 253.91 crore, which reflects a substantial growth compared to the average PBT of Rs 62.76 crore over the previous four quarters. This suggests a strong near-term outlook for the company.
The Profit After Tax (PAT) for the latest six months was Rs 532.12 crore, indicating a year-on-year growth of 41.41%, which further emphasizes the company's financial health. Additionally, IRB Infrastructure Developers recorded its highest quarterly net sales in the last five quarters at Rs 2,149.24 crore, along with an operating profit (PBDIT) of Rs 997.86 crore, also the highest in the same timeframe. The operating profit to interest ratio improved to 2.18 times, suggesting enhanced capability in managing interest payments.

However, the quarterly results also show some contrasting trends. The net sales growth for the quarter ended March 2025 was 6.11%, a decrease from the previous quarter's growth of 27.72%. Furthermore, the consolidated net profit experienced a significant decline of 96.44% compared to the previous quarter's growth of 5,933.95%. The operating profit margin (excluding other income) also saw a reduction from 48.59% to 46.43%.

Despite these mixed results, it is noted that the company experienced an adjustment in its evaluation over the last three months. Historical numbers are not directly comparable due to the transfer of assets to a Private InvIT in FY20. Additionally, IRB has provided a non-disposal undertaking to GIC and the Ferrovial Group regarding its shareholding.