Ashoka Buildcon Soars 9% on Order Bonanza Worth Rs 2,153 Crore!

Shares of Ashoka Buildcon Ltd surged by 9% and reached a record high of Rs 200 on 3 June following the company's announcement of emerging as the lowest bidder for two projects valued at Rs 2,153 crore from the Maharashtra State Road Development Corporation.

As per the company's corporate filing, the first project involves the construction of a significant bridge across Jaigad Creek, linking Tawsal and Jaigad, on the Revas-Reddi Coastal Highway in Ratnagiri district, Maharashtra. The project, following an engineering, procurement, and construction (EPC) model, is slated to be completed within 36 months.

The second project entails the construction of another major bridge over Kundalika Creek, situated between Revdanda and Salav on the same Revas-Reddi Coastal Highway, with a similar completion timeline of 36 months.

In its quarterly earnings report for January-March, Ashoka Buildcon recorded a net profit of Rs 254.3 crore, a significant improvement from the Rs 44.7 crore net loss reported in the corresponding quarter of the previous fiscal year. The company's total revenue for the quarter witnessed a 27% year-on-year increase, reaching Rs 3,138 crore.

Furthermore, the company's earnings before interest, tax, depreciation, and amortisation (EBITDA) for the quarter witnessed a notable growth of 23% to Rs 721.3 crore. However, the EBITDA margin experienced a slight contraction of 60 basis points to 23% in Q4Fy24 compared to 23.6% in Q4FY23.

At 1:45 pm, on the National Stock Exchange (NSE), Ashoka Buildcon's shares were trading 6.43% higher at Rs 195.15.

News by Rahul Yelligetti