Ashoka Buildcon Q4 Review - Execution Inline; Order Book Visibility Augurs Well For Revenue: Motilal Oswal

A crane operates at a construction site. (Photographer: Brendon O’Hagan/Bloomberg)

Ashoka Buildcon Q4 Review - Execution Inline; Order Book Visibility Augurs Well For Revenue: Motilal Oswal

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.

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.

Click on the attachment to read the full report:

Motilal Oswal Ashoka Buildcon Q4FY21 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.