Ashoka Buildcon (ASHOKA) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw strong revenue and profit growth, with robust order book, ongoing asset monetization initiatives, and completion certificates for major NHAI HAM projects.

• Focus remains on sustainable EPC business across highways, railways, power, buildings, and water segments, with international operations expanding and contributing 15-20% of revenues.

• Emerged as lowest bidder for key EPC and MMRDA projects, and secured an EPC contract in Ivory Coast for water infrastructure.

• Unaudited standalone and consolidated financial results for Q1 FY25 were approved by the Board and reviewed by the Audit Committee, with unmodified auditor opinion.

Financial highlights

• Standalone Q1 FY25 revenue: INR 1,901 crore, up 22% year-over-year; EBITDA: INR 195 crore, up 52%; PAT: INR 41 crore, up 148%.

• Consolidated Q1 FY25 revenue: INR 2,495 crore, up 26% year-over-year; EBITDA: INR 628 crore, up 23%; PAT: INR 158 crore, up 156%.

• Gross BOT collections: INR 321 crore, up 4.8% year-over-year; standalone EBITDA margin improved by 150 bps to 7.6%; consolidated PAT margin rose to 6.3%.

• Standalone profit after tax was ₹4,083.55 lakhs; consolidated profit after tax was ₹15,793.10 lakhs.

Outlook and guidance

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

• EBITDA margin expected at 7-8% for Q2, improving to 9-10% in H2 FY25, and 10-11% in FY26.

• Order inflow target: INR 10,000-12,000 crore for FY25; order book at ₹10,356 crore as of June 30, 2024, excluding L1 projects worth ₹3,434 crore.

• Advanced stage of divestment of stakes in subsidiaries engaged in road projects, with assets classified as held for sale.