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

Executive summary

• Q1 FY25 revenue rose 20.39% year-over-year to INR 919.35 crore (₹9,193 Mn), with PAT at INR 50.60 crore (₹497 Mn), up slightly from INR 49.73 crore in Q1 FY24, excluding exceptional gains.

• EBITDA margin declined to 6.58% from 10.83% year-over-year, and PAT margin fell to 3.33% from 6.51%.

• Net order book as of June 30, 2024, stands at INR 13,143.72 crore (₹131,437 Mn), with total FY25 order inflow to date at INR 4,945.54 crore (₹47,744 Mn).

• Board approved unaudited standalone and consolidated financial results for Q1 FY25, with statutory auditors issuing unmodified opinions.

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

Financial highlights

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

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

• Subcontract work charges increased 40% year-over-year, outpacing revenue growth.

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

• Inventory at INR 354 crore, retention at INR 327 crore, mobilization advance at INR 541 crore, and unbilled revenue at INR 489 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.

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

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

• Urbanization and infrastructure investments are expected to drive demand for construction services.