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Ahluwalia Contracts - Strong Execution; Balance Sheet Cleanup Largely Complete: Prabhudas Lilladher

Ahluwalia Contracts - Strong Execution; Balance Sheet Cleanup Largely Complete: Prabhudas Lilladher

<div class="paragraphs"><p>A crane transports a slab of concrerte at a residential apartment block construction site. (Photographer: Milan Jaros/Bloomberg)</p></div>
A crane transports a slab of concrerte at a residential apartment block construction site. (Photographer: Milan Jaros/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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.

Click on the attachment to read the full report:

Prabhudas Lilladher Ahluwalia Contracts Q4FY21 Result Update.pdf

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