- 11 Aug 2022
- ICICIdirect Research
Ashoka Buildcon's weak margins offset execution led topline growthASHOKA - 76 Change: 0.70 (0.93 %)
News: Ashoka Buildcon's revenue on standalone basis during Q1FY23 improved 46.2% YoY to Rs 1,479 crore. However, operating margin moderated to 9.8% (down 208 bps YoY) possibly impacted by rise in commodity prices. Effectively, operating profit at Rs 144.6 crore, was up 20.6% YoY. At net level, PAT growth was modest at 3% YoY to Rs 104.3 crore impacted by lower other income and higher finance cost.
View: Ashoka Buildcon’s performance in Q1 FY23 was clearly weak on margins considering other EPC players have had resilient operating performance. Healthy order book position provides near term visibility. However, we seek further detail of input cost pressure on margins. Going ahead, commentary on future outlook, order inflow, progress on asset monetization and net debt will be key monitorable.