The short term rating has been reaffirmed at 'CRISIL A1', the ratings agency said.

CRISIL said that the revision in outlook follows expectation of substantial improvement in IRBIDL's financial risk profile post recent announcement of equity infusion up to Rs 5,347 crore by GIC (Singapore's sovereign wealth fund) and Cintra (subsidiary of Ferrovial, S.A – a Spanish multinational infrastructure company).

Of the Rs 5,347 crore, about Rs 3,250 crore will be utilized to prepay IRBIDL's long term debt. Debt-to-EBITDA which had peaked to over 6 times as on 31 March 2021 is expected to reduce to below 2.5 times post deal closure.

Further, the balance funds will be available as growth capital, supporting future funding requirements of new projects without putting pressure on the company's balance sheet.

IRBIDL's promoter will continue to have management control and will remain the single largest shareholder. Funds from the deal are expected by December 2021.

The company had orders of around Rs 7,600 crore as of September 2021. While current order book-to-turnover (of fiscal 2021) ratio is 1.9 times, the same stands lower at 1.4 times of fiscal 2020 revenue, as revenue in fiscal 2021 was impacted due to the pandemic and encumbrances on land.

The order book was impacted due to cancellation of two large orders in last two fiscals and lower than expected order inflows. However, the order book position is expected to improve over the near term with substantial orders being announced in the country on the BOT-Toll model which is IRBIDL's main area of focus. Near term build-up of IRBIDL's order book is a key monitorable.

IRB Infrastructure Developers is an infrastructure development and construction company in India with extensive experience in the roads and highways sector. The company is also into other business segments in the infrastructure sector, including maintenance of roads, construction, airport development and real estate.

The company's reported a consolidated net profit of Rs 42.31 crore in the quarter ended September 2021 as against net loss of Rs 19.66 crore during the previous quarter ended September 2020. Net sales rose 30.44% YoY to Rs 1,465.24 crore in Q2 FY22.

The scrip rose 0.26% to currently trade at Rs 228.70 on the BSE.