Ashoka Buildcon Arm Signs Rs 1,391 Crore Pact With NHAI
The company will develop a four-lane economic corridor from Bowaichandi to Guskara-Katwa Road Section in West Bengal.
Ashoka Buildcon Ltd. announced on Monday, via an exchange filing, that its wholly owned subsidiary, Ashoka Bowaichandi Guskara Road Pvt Ltd., has executed a concession agreement with the National Highways Authority of India for a project worth Rs 1,391 crore.
The agreement pertains to the development of a four-lane economic corridor from Bowaichandi to Guskara-Katwa Road Section, spanning km 89.814 to km 133 of NH 116A in West Bengal, under the Hybrid Annuity Mode.
The Special Purpose Vehicle was incorporated specifically for the execution of this project as per the requirements of the Concession Agreement.
The project is expected to be completed within 910 days, including the monsoon period.
In another recent development, on Nov. 29, Ashoka Buildcon signed an agreement with Bangalore International Airport for a Rs 1,055 crore project. The scope included the construction of elevated western crossfield taxiways, taxiway systems, pavements, drainage works, and ancillary buildings at Kempegowda International Airport, Bengaluru. The project, executed on an engineering, procurement, and construction basis, is scheduled for completion within 24 months.
Ashoka Buildcon Q2 Highlights (Consolidated, YoY)
Revenue up 15.5% to Rs 2,488.93 crore versus Rs 2,154.31 crore.
Net profit up 334% to Rs 462.47 crore versus Rs 106.53 crore.
Ebitda up 66% to Rs 905.12 crore versus Rs 545.98 crore.
Margin at 36.4% versus 25.3%.
Shares of the company closed 8.99% lower at Rs 277.95 per share, compared to a 1.62% decline in the NSE Nifty 50. It has risen 93.49% in the last 12 months.
Five out of the ten analysts tracking the infra company have a 'buy' rating on the stock, four recommend a 'hold,' and one suggests a 'sell,' according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 281.30, implying an upside of 1.2%.
