- 14 Nov 2022
- ICICIdirect Research
ASHOKA BUILDCON'S MARGIN WEAKNESS MORE THAN OFFSETS EXECUTION BEAT
ASHOKA - 277 Change: 15.94 (6.10 %)News:
Ashoka Buildcon's revenue on standalone basis has improved 39.6% YoY to Rs 1,280.3 crore largely backed by its decent order book position, pick-up in execution, and receipt of Appointed Date in most of the projects. However, EBITDA margin moderated to 8.7% (down 276 bps YoY) possibly impacted by poor project mix. Effectively, EBITDA at Rs 111.9 crore, was down 6.1% YoY. At net level, benign performance at operating level coupled with higher finance cost has translated into 31.5% YoY de-growth in PAT to Rs 65.5 crore.
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Ashoka Buildcon's performance in Q2 FY23 was clearly weak on margins. It continues to suffer from higher volatility in execution/margins than peers. We seek further detail of cost pressure/project mix on margins. Going ahead, commentary on future outlook, order inflow, progress on asset monetization, and net debt will be key monitorable.
Impact:
Negative