Ahluwalia Contracts - Strong Execution; Balance Sheet Cleanup Largely Complete: Prabhudas Lilladher
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Prabudas Lilladher Report
Ahluwalia Contracts India Ltd. posted strong results in Q4, with beat on both revenue (up 38.7% YoY) and margin fronts.
Execution witnessed some headwinds amidst Covid-19 second wave, when labour availability across project sites fell to ~30% levels, but improved substantially with ease in lockdown restrictions and fall in cases.
Though it is yet to reach pre-Covid-19 levels in many sites.
Even with healthy order book and rising execution pace, management gave conservative guidance of 10-15% revenue growth in FY22 considering headwinds of second wave (and a possible third wave).
Earnings before interest, income taxes, depreciation, amortisation, and management fees is expected to be in 11-12% range, given major provisioning now complete.
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