Ashoka Buildcon Q4 Review - Execution Inline; Order Book Visibility Augurs Well For Revenue: Motilal Oswal
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Motilal Oswal Report
Ashoka Buildcon Ltd.’s Q4 FY21 revenue increased ~11% YoY, in line with our estimate.
Ebitda stood 15% above our estimate, led by a higher Ebitda margin (150 basis points above our expectation) on account of the reversal of expected credit loss provisions in some power projects.
As a result of lower depreciation, coupled with higher other income, adjusted profit after tax declined 9% YoY and was 36% above our estimate.
The order book declined 3% YoY to Rs 81.7 billion in FY21, with the order book/revenue ratio at 2.2 times.
However, including level-one orders of Rs 19 billion, order book stands at ~Rs 100 billion, with order book/revenue at ~2.8 times, which provides comfort.
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