IRB Infra shares zoom 6% post strong Q1 show

Shares of IRB Infrastructure developers zoomed over 6 per cent to hit an intraday high of Rs 264.8 in early trade on Monday after the company posted a strong set of numbers for the quarter ended June 2022.

The company on Friday reported a multi-fold increase in consolidated net profit at Rs 363.19 crore for the quarter ended June 30. It had clocked a consolidated net profit of Rs 71.91 crore in the corresponding period of the previous fiscal, it said in a regulatory filing.

Total consolidated income during the quarter under review rose to Rs 1,995.40 crore as against Rs 1,670.48 crore in the year-ago period.

With a market capitalisation of more than Rs 15,000 crore, the shares are trading above 5, 10, 20, 50, 100, 200 DMA. The consensus recommendation from six analysts for IRB Infrastructure Developers is 'Buy', as per Trendlyne.

According to Axis Securities, the daily and weekly strength indicator, RSI continues to remain bullish and is quoting above the 50 mark which signals sustained and rising strength.

On the weekly chart, the stock has confirmed ten months “descending triangle” breakout around Rs 225 levels on a closing basis, it said.

The company informed that the Board of Directors, at its meeting held on August 5, 2022, approved the transfer of the Vadodara Kim HAM project in the State of Gujarat at an enterprise value of Rs 1,297 crore to IRB InvIT Fund. Provisional COD for the project was received in April 2022. Post transfer of the project, debt to the extent of Rs 955 crore will be reduced from the consolidated debt of IRB. Further, IRB will receive Rs 342 crore, subject to necessary approvals, it added.

InvITs allow investors to make small investments and receive a regular income. They are considered stable cash-generation assets and are popular with pension funds globally.


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