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Ashoka Buildcon Q2 Review - Margin Impacted By Slow Execution: IDBI Capital

Ashoka Buildcon Q2 Review - Margin Impacted By Slow Execution: IDBI Capital

<div class="paragraphs"><p>Contractors work on a portion of Highway 101 under construction.&nbsp; (Photographer: David Paul Morris/Bloomberg)</p></div>
Contractors work on a portion of Highway 101 under construction.  (Photographer: David Paul Morris/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.

IDBI Capital Report

Ashoka Buildcon Ltd.'s Q2 FY22 (standalone) revenue and Ebitda came lower than our and consensus estimate.

This is led by delay in execution due to heavy monsoon. At Ebitda level, result is lower than our and consensus estimate by 15%.

Ashoka Buildcon has revenue guidance at 20% YoY increase for FY22E and margins at ~12-12.5%. H1 FY22 order book at Rs 120 billion (equals three times trailing twelve months revenue) with roads and railway at 68%.

Year-to-date FY22 total order inflow was strong at Rs 33.5 billion. The company has renegotiated the terms of shareholders agreement regarding the Investors exit options from the proceeds of the sale of Ashoka Concessions Ltd.'s assets.

Click on the attachment to read the full report:

IDBI Capital Ashoka Buildcon Q2FY22 Result Update.pdf

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