* (Adds quotes, details, share close)
New Delhi: Noida Toll Bridge Co Ltd , which maintains the Delhi-Noida-Delhi (DND) flyover, expects profit to grow about 40% in FY12 on increased traffic and higher toll rates, its chief executive told Reuters on Thursday.
Noida is a fast growing industrial satellite city in Uttar Pradesh state that is separated from Delhi by the Yamuna river. There are 4 bridges over Yamuna, including the DND flyover, that help commuters travel from Delhi to Noida.
The company, a special purpose vehicle promoted by IL&FS Group, expects to hike toll rates by at least 10% in April-June and sees traffic growing by 5% in FY12, Harish Mathur said in an interview.
“We are working on a micro level. We are trying to finalise the plan with the NOIDA (New Okhla Industrial Development Authority) people,” Mathur said by phone.
Noida Toll Bridge planned to hike toll rates in February, but deffered the plan after public protests.
Mathur said he is confident of overcoming those objections and reaching a solution with Noida. The company last hiked toll rates by an overall 20% in 2008.
“There is diversion of traffic (from competing bridges), there is competition from the Metro also. But still, we are growing in traffic. We expect traffic to grow this year by 5%,” he said.
Media reports had earlier said NOIDA has started constructing a 5 billion rupee 8-lane flyover near Delhi’s existing 2-lane Kalindi Kunj bridge, that may divert further traffic from DND flyover.
However, Mathur said it is still under planning stages and authorities have to consult the company before ordering construction of a new flyover.
“We do not do construction. But we may bid for operation and maintenance (when the new flyover is built),” he added.
The company owns about 35 hectares land in Delhi and Noida, and is seeking development rights for those, Mathur said.
Mathur also said that Noida Toll Bridge will declare its first-ever dividend in September.
Earlier on Thursday, the company posted a net profit of 374.9 million rupees in FY11, compared with 275.5 million rupees a year ago.
Mathur said profit for Jan-March rose about 35% to Rs 10.84 crore.
Noida Toll Bridge shares, valued at about Rs 530 crore, closed up 2.8% at 29.25 rupees on the National Stock Exchange.