Ahuwalia Contracts (India) (532811) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue rose 20.4% year-over-year to INR 919.35 crore, with PAT at INR 50.60 crore, up slightly from INR 49.73 crore in Q1 FY24; unaudited results were approved by the Board with unmodified auditor opinions.

• Q1 FY25 income from operations was ₹9,193 Mn, EBITDA at ₹605 Mn, and net profit after tax at ₹497 Mn, excluding exceptional gains.

• Gross order book as of June 2024 stands at ₹214,398 Mn, with unexecuted order book at ₹131,437 Mn; order inflow for FY25 to date at ₹47,744 Mn.

• 45th Annual General Meeting scheduled for September 27, 2024, with dividend payment and book closure from September 21 to 27, 2024.

• Major projects include CSMT Mumbai redevelopment, India Jewellery Park Mumbai, and AIIMS Jammu.

Financial highlights

• Standalone revenue from operations for Q1 FY25 was ₹91,934.83 lakhs, up from ₹76,361.23 lakhs in Q1 FY24.

• Q1 FY25 EBITDA margin dropped to 6.58% from 10.83% year-over-year; net profit margin was 5.4%, down from 6.5%.

• Standalone net profit after tax for Q1 FY25 was ₹3,059.95 lakhs, compared to ₹4,973.28 lakhs in Q1 FY24.

• EPS for Q1 FY25 was INR 4.57, down from INR 7.42 in Q1 FY24.

• Gross debt at INR 100 crore, cash and bank balance at INR 456 crore.

Outlook and guidance

• Management expects muted Q2 due to monsoon impact, but anticipates double-digit EBITDA margins for FY25, with stronger H2 performance.

• Revenue growth guidance maintained at 15-20% for FY25 and FY26.

• Construction industry in India projected to reach $1.4 Tn by 2025, with real estate sector expected to hit $1 Tn by 2030.

• CapEx for FY25 projected at INR 175 crore, expected to normalize to INR 120-130 crore in FY26.

• Results reviewed and approved by the Board, with continued focus on core contract work and related segments.