Ashoka Buildcon receives LOA for Nhai project worth Rs 1,391 crore

The company was declared as the lowest bidder (L-1) during the bidding procedures for the project

Ashoka Buildcon Limited has received a Letter of Award (LOA) for a Hybrid Annuity Mode (HAM) road project in West Bengal from the National Highways Authority of India (NHAI). The accepted bid project cost is Rs 1,391 crore, excluding goods and services tax (GST).

 

According to the company’s stock exchange filing on Monday, the project includes the development of a four-lane economic corridor from “Bowaichandi to Guskara-Katwa Road Section Km 89.814 to Km 133.000 of NH 116A (Package-3)” in West Bengal, under HAM.

 

Earlier, on November 18, 2024, the company was declared as the lowest bidder (L-1) during the bidding process for the above-mentioned project as well as another HAM project for the development of a “four-lane economic corridor from Kharagpur to Chandrakona Ghatal Road Crossing section Km 0.000 to Km 41.000 of NH 116A (Package-I)” in West Bengal.

 

 

The quoted bid price for the four-lane economic corridor from Kharagpur to Chandrakona Ghatal Road Crossing is Rs 1,400 crore, excluding GST. The company has not provided any updates regarding the LOA for the second project.

 

Both projects are expected to be executed within 910 days, including the monsoon period.

 

As of September 30, 2024, the company’s total order book stood at Rs 11,104 crore, with HAM road projects accounting for 7.6 per cent.

 

Ashoka Buildcon’s total income for the second quarter of the financial year 2024-25 (Q2 FY25) was Rs 1,458.9 crore, down 8 per cent year on year (YoY). Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) also declined 7 per cent YoY to Rs 160.5 crore.