Anil Yadav, Director-Investor Relations at IRB Infrastructure believes stability in raw material costs is helping profitability.

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In an interview with CNBC-TV18, he said, the company provides key raw materials required for road construction such as cement, steel, and bitumen. "In the last 12 to 18 months, we have not seen any major increase in the prices. Prices have either reduced or remained stable,” Yadav said.

He expects stable revenue from the engineering, procurement, and construction (EPC) segments.

"We have a large portion of the EPC which comes from operations and maintenance (O&M). So, we expect stable revenue from the EPC side, and probably in the second half, the revenue should improve," Yadav said.

IRB Infrastructure also expects a notable improvement in construction margins. The company expects an increase in margins by 100 to 200 basis points (bps), signifying a positive trend in its ability to manage construction projects efficiently and control costs.

On toll collection in September, he said the company witnessed a substantial 28% surge, climbing from Rs 328 crore in September 2022 to reach Rs 421 crore.

In the second quarter of FY24, IRB Infra's toll revenue amounted to Rs 1,203 crore, reflecting a 22% growth compared to the Rs 984 crores recorded in Q2FY23.

In the first half of FY24, IRB Infra achieved a toll revenue of Rs 2,386 crore, marking a 20% increase from the Rs 1,984 crore reported in H1FY23.

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(Edited by : Shweta Mungre)