Ahluwalia Contracts - Higher Provisioning Continue To Dent Q3 Margins: Prabhudas Lilladher 
A construction crane is illuminated by sunlight as it stands on a building development. (Photographer Adam Glamzman/Bloomberg)

Ahluwalia Contracts - Higher Provisioning Continue To Dent Q3 Margins: Prabhudas Lilladher 

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Prabhudas Lilladher Report

Ahluwalia Contracts India Ltd. saw strong revenues during Q3 (up 7.7% YoY) as execution picked up sharply with labour force approaching pre-Covid-19 level.

Margins were in pressure with higher provisions for doubtful debts at Rs 85 million.

The provisioning would be largely complete in Q4 FY21 which could go further to Rs 50-60 million.

On the back of healthy order book and robust bid pipeline, management guided for strong Q4 with FY21 revenues to be flat YoY and 15% growth in FY22.

With major provisioning already done, Ebitdam expected to be back to 10-11% in FY22E.

Click on the attachment to read the full report:

Prabhudas Lilladher Ahluwalia Contracts Q3FY21 Result Update.pdf

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