Ahuwalia Contracts (India) (532811) Q4 08/09 earnings summary

Executive summary

• FY09 turnover rose 32.19% to Rs 117,196 lacs; EBITDA increased 36.01% to Rs 14,896 lacs and standalone PAT rose 11.79% to Rs 5,772 lacs.

• Order book was Rs 414,330 lacs at 31 Mar 2009, with ~70 projects underway across 14 states; government orders were 32% of the order book.

• Strategy shifted toward infrastructure and government work, BOT projects and a diversified portfolio to reduce exposure to real estate.

Financial highlights

• Sales and other income reached Rs 117,196 lacs vs Rs 88,657 lacs in FY08; profit before tax was Rs 8,797 lacs vs Rs 7,814 lacs.

• Standalone PAT was Rs 5,772 lacs vs Rs 5,163 lacs; EPS rose 12% to Rs 9.20 from Rs 8.23.

• Consolidated revenue was Rs 120,045 lacs and consolidated PAT Rs 5,729 lacs; consolidated EPS was Rs 9.13. FY08 consolidated comparisons use standalone figures and are not comparable.

Outlook and guidance

• Management projected revenue CAGR of 34% from FY08 to FY11E, supported by execution and order visibility; infrastructure revenue was projected to grow at 69.5% CAGR over that period.

• Infrastructure’s expected revenue contribution was forecast to rise from 7% in FY09E to 19.5% in FY11E.

• Plans included expanding BOT work, targeting parking and terminal projects, pursuing niche urban infrastructure and seeking technical collaborations and alliances.