One of the small-cap stocks has engaged in construction and infrastructure facilities on an EPC and BOT basis. The stock has jumped by 3.62 percent after reporting September quarter results in 2024. The company’s revenue increased by 15.53 percent YOY to Rs. 2,488.93 crore, and net profit increased by 334.12% YOY percent to Rs. 462.47 crore.
Stock movement
After announcing its quarterly results, Ashoka Buildcon Limited‘s share has jumped by 3.62 percent from the previous close of Rs. 225.05. The stock opened at Rs. 241.45 and is currently trading at Rs. 233.20, with a high of Rs. 244.45 and a low of Rs. 231.15. The market capitalization now stands at approximately Rs. 6,528.22 crore.
Q2 FY25 Result Walkthrough
Coming into the quarterly results of Ashoka Buildcon Limited, the company’s consolidated revenue from operations increased by 15.53 percent YOY, from Rs. 2,154.31 crore in Q2 FY24 to Rs. 2,488.93 crore in Q2 FY25, and slightly grew by 0.1 percent QoQ from Rs. 2,465.39 crore in Q1 FY25.
Further, the company’s EBIT has increased by 66% YOY, from 546 crore in Q2 FY24 to 905 crore in Q2 FY25. As compared to the previous quarter, the EBIT has increased by 51.09 percent, from Rs. 599 crore.
In Q2 FY25, Ashoka Buildcon Limited’s consolidated net profit increased by 334.12 percent YOY, reaching Rs. 462.47 crore compared to Rs. 106.53 crore during the same period last year. As compared to Q1 FY25, the net profit has increased by 146.61 percent, from Rs. 157.93 crore.
The basic earnings per share increased by 203.73% and stood at Rs 16.28 as against Rs 5.36 recorded in the previous quarter FY25.
In terms of return ratios, Ashoka Buildcon Limited’s share ROE and ROCE are currently at 22.7 percent and 27.1 percent, respectively. Ashoka Buildcon Limited has a debt-to-equity ratio of 1.96x.
Segment Breakup and Orderbook
Ashoka Buildcon Limited has diversified its segment, which includes road EPC by 35.7%, road HAM by 9%, building EPC by 6%, railways by 6.7%, and power T&D by 42.7%.
The company has received an order book of Rs. 11,697 crore in FY24, which is lower by 25.99% as compared to the previous year. Currently, Ashoka Buildcon Limited has maintained an order book of Rs 10,356 as of September 2024.
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Client base of Ashoka Buildcon
Ashoka Buildcon Limited serves prominent infrastructure and transportation clients, including NHAI (National Highways Authority of India), KSHIP (Karnataka State Highway Improvement Project), TNRDC (Tamil Nadu Road Development Company Limited), MoRTH (Ministry of Road Transport and Highways), PWD (Public Works Department), and various state development corporations like MPRDC.
Shareholding Pattern
In September 2024, Ashoka Buildcon Limited had a majority stake held by the promoters at 54.47 percent, foreign institutional investors at 7.95 percent, domestic institutional investors at 17.79 percent, and the public at 19.80 percent.
Company Overview
Ashoka Buildcon Limited was established in 1976 and evolved into a leading infrastructure developer in India. The company headquartered is in Nashik, Maharashtra, India. The company has constructed 14,000 lane km of highway and also power T&D projects for 30,000 villages.
Ashoka Buildcon operates as an integrated player in the Engineering, Procurement, and Construction (EPC) sector, as well as through Build-Operate-Transfer (BOT) and Hybrid Annuity Model (HAM) projects. It also engages in public-private partnerships (PPP) and provides services such as ready-mixed concrete and bitumen.
Written By – Nikhil Naik
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