Prabhudas Lilladher: Ahluwalia Contracts - Higher Provisions Dent Margins

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..Prabhudas Lilladher Report.Ahluwalia Contracts (ACIL) posted a strong quarterly performance with execution rising 4.1% YoY (vs PLe 23% decline) led by rise in labour availability. Labour availability stands 80% pre-covid levels (up from 60% in Sep’20). Margins were weak despite healthy execution and several cost control measures primarily due to provision of Rs50 million towards receivables and similar trend is expected to continue in Q3 and Q4.Considering uncertainty regarding pandemic, management cited caution on execution. However, management indicated that working capital has improved as disbursements have started from state authorities primarily in West Bengal and Bihar and expects normalcy by Dec ’20.ACIL is among few EPC companies which have turned around with significant improvement in profitability through sound business strategy, focus on asset light business model, prudent selection of orders (state and central agencies) and better working capital management..Click on the attachment to read the full report:.DISCLAIMERThis 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 brokerage 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.

Prabhudas Lilladher: Ahluwalia Contracts - Higher Provisions Dent Margins

Prabhudas Lilladher: Ahluwalia Contracts - Higher Provisions Dent Margins

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