19 June 2020 On account of the IRB-GIC InvIT deal, the reported financials of IRB have undergone a change. This results in reported gross debt and leverage declining sharply and provides IRB with room to bid for new projects. The Mumbai-Pune Phase II contract has achieved financial closure and the company has also paid the upfront equity of INR14.4b to MSRDC. We expect the projects IRR at 18%+ a major booster for IRBs fortunes. EPC business growth looks challenging and is totally dependent on new ordering. EPC order book (OB) stands at just INR47.3b with OB/rev ratio of 0.9x, the lowest since IRBs listing. Till the time, the company refills its order book (through BOT model as per company strategy), the low EPC revenue visibility is likely to remain an overhang on the stock performance. We broadly maintain our earnings estimate (<5% cut), but have incorporated new reporting structure into our model.