Afcons Infrastructure (AFCONS) Q2 24/25 earnings summary

Executive summary

• Achieved record-high EBITDA margin of 13.8% in Q2 FY25 and 12.7% for H1 FY25, with PAT up 30% year-on-year for Q2 and 16.3% for H1 FY25.

• Order book as of September 2024 stands at INR 34,152 crores, with INR 8,925 crores of new orders in H1 and L1 bids of INR 10,154 crores.

• Revenue for Q2 FY25 was INR 3,090 crores and for H1 FY25 was INR 6,303 crores, reflecting a marginal year-on-year decline due to muted order book and external factors.

• Profit after tax for Q2 FY25 stood at ₹135.43 crore, and for H1 FY25 at ₹227.02 crore.

• IPO completed post-quarter, raising ₹5,430 crore, with shares listed on NSE and BSE on November 4, 2024.

Financial highlights

• Q2 FY25 EBITDA: INR 427 crores (13.8% margin), up 8.5% year-on-year; H1 FY25 EBITDA: INR 799 crores (12.7% margin), up 12.9%.

• Q2 FY25 PAT: INR 135 crores (4.4% margin), up 30% year-on-year; H1 FY25 PAT: INR 227 crores (3.6% margin), up 16.4%.

• Net worth at September 2024: INR 3,794 crores.

• Net debt at September 2024: INR 2,640 crores; debt-to-equity ratio at 0.7.

• Basic and diluted EPS for Q2 FY25 was ₹3.97; H1 FY25 EPS was ₹6.66.

Outlook and guidance

• FY25 revenue expected to be flat to nominal growth; FY26 revenue growth guidance at 20%-25%.

• Medium- to long-term revenue CAGR targeted at 15%-16%.

• EBITDA margin guidance maintained at 11%+ for the full year.

• Operating cash flow expected to turn positive for the full year as payment cycles normalize.

• Quarterly margins may vary due to project mix and quantum of work.