Ashoka Buildcon Q3 Results Review - Strong Execution: Yes Securities

Yes Securities Report

Ashoka Buildcon Ltd. reported a mixed set of numbers, with strong revenue growth of 36% YoY to Rs 19.6 billion led by robust execution while Ebitda margins remained under pressure. The margin is expected to remain in the range of 9-10% in FY23E, impacted by the project mix.

The sale of five Ashoka Concessions Ltd. build-operate transfer is Rs 13.4 billion and the consideration of the same has been extended to Q2 FY24E as approvals from various authorities is yet to receive.

The Chennai outer ring road sale deal with National Investment and Infrastructure Fund Ltd is expected to fetch Rs 4.5 billion and is targeted to be completed by FY23 and the consideration of the same is expected to be received in Q4 which will be utilized to reduce the debt level thereby strengthening the balance sheet.

Ashoka Buildcon has bagged orders worth Rs 80.5 billion in nine months taking the orderbook to Rs 161.4 billion. With strong order book position and healthy execution, management has maintained its revenue guidance of 20-25% growth in FY24E.

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