Ahluwalia Contracts Q4 Review - Delivering On Execution; Margins To Follow: Centrum Broking
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Centrum Broking Report
Ahluwalia Contracts India Ltd.’s Q4 FY21 results significantly beat estimates, led by strong execution.
Revenue grew 38.7% YoY to Rs 7.6 billion (estimate: Rs 5.7 billion) and profit after tax came in at Rs 371 million (estimate: Rs 227 million).
Ebitda margin grew 500 basis point YoY to 9.2% though still impacted by provisions/write-off of ~Rs 340 million.
Order backlog is robust at Rs 76.1 billion (3.8 times trailing twelve months revenues), with 58% of the backlog from the high priority healthcare sector.
The company is finally delivering on the much-awaited execution pick-up and with provisions and write-offs on legacy projects now complete, margins and earnings too should pick up.
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