Ahuwalia Contracts (India) (532811) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 turnover was INR 951.95 crore (₹9,520 Mn), down 7.26% year-over-year, with PAT at INR 49.39 crore (₹494 Mn), down 30.10% year-over-year; net profit margin was 5.1%.

• Nine-month FY25 turnover reached INR 2882.79 crore (₹288,278.68 lakhs), up from INR 2691.64 crore year-over-year; PAT for the period was INR 118.35 crore (₹17,502.53 lakhs), down from INR 175.69 crore.

• EPS for Q3 FY25 was INR 7.37 (₹7.37 per share); nine-month EPS was INR 17.67.

• Order book as of 31/12/2024 stood at INR 16,258.44 crore (₹162,584 Mn unexecuted), with FY25 order inflow at INR 7,794.37 crore (₹77,944 Mn).

• Board approved unaudited standalone and consolidated financial results for Q3 and nine months ended December 31, 2024; auditors found no material misstatements.

Financial highlights

• Q3 FY25 revenue and PAT declined due to NGT bans in Delhi NCR, impacting 33% of the order book.

• Q3 FY25 EBITDA margin was 8.86%-8.9%, down from 10.9% last year; PAT margin was 5.1%.

• Cash position at INR 246 crore; bank balances INR 489 crore; retention INR 351 crore; mobilization advance INR 621 crore; unbilled revenue INR 572 crore; inventory INR 324 crore; trade payables INR 882 crore; net assets INR 772 crore.

• Gross debt at INR 11 crore; CapEx for nine months at INR 154 crore, with Q4 expected at INR 175 crore and next year at INR 125 crore.

• Standalone income from operations grew at a 3-year CAGR of 25%, EBITDA at 36%, and PAT at 69%.

Outlook and guidance

• FY25 revenue growth expected at 8.5%-9%, below earlier 15% guidance due to NGT disruptions.

• FY26 revenue growth guidance revised to 15%+, with double-digit EBITDA margin expected.

• Order inflow for FY26 projected to be similar to FY25 (~INR 7,800 crore), with a balanced public-private mix.

• Q4 FY25 expected to see margin improvement, targeting around 10%.

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