Ahluwalia Contracts stock tanks 8% on weak Q2 show; profit drops 30% YoY

Ahluwalia Contracts (India) in focus: Construction major Ahluwalia Contracts (India) shares fell up to 8.09 per cent to hit an intraday low of Rs 916.25 per share on Monday, November 18, 2024.

 

The fall in the share price of Ahluwalia Contracts (India) came after the company posted a weak set of results in the September quarter of financial year 2025 (Q2FY25).

 

In Q2FY25, Ahluwalia Contracts (India) profit tanked 29.8 per cent year-on-year (Y-o-Y) to Rs 38.7 crore in the September quarter of financial year 2025 (Q2FY25), from Rs 55.1 crore in the same quarter a year ago (Q2FY24).

 

 

However, the company’s revenue from operations, also known as topline, soared 12.2 per cent year-on-year to Rs 1,011.5 crore in the September quarter of FY25, from Rs 901.5 crore in the September quarter of FY24. 

 

At the operating front, earnings before interest, tax, depreciation and amortisation (Ebitda), slipped 18.2 per cent Y-o-Y to Rs 73.4 crore in Q2FY25, from Rs 89.8 crore in the same quarter a year ago (Q2FY24). Consequently, Ebitda margin squeezed 270 basis points (bps) to 7.3 per cent in Q2FY25, from 10 per cent in Q2FY24. 

 

Established in 1965, Ahluwalia Contracts (India) Ltd began its journey as an EPC company. It was formally incorporated on June 2, 1979, acquiring the operations of four construction partnership firms the following month. By September 1990, it transitioned into a Public Limited Company. Specialising primarily in civil construction activities, Ahluwalia Contracts has expanded its scope to include developing and managing commercial complexes under licencing agreements, alongside engaging in real estate trading. It stands as one of India's foremost integrated construction firms.

 

The company boasts a diverse portfolio of high-profile projects spanning residential and commercial complexes, hotels, institutional buildings, hospitals, corporate offices, IT parks, industrial complexes, metro stations and depots, power plants, and automated car parking facilities, among others.

 

The market capitalisation of the company is Rs 6,598.27 crore, according to BSE. The company falls under the BSE SmallCap category.

 

The 52-week high of Ahluwalia Contracts stock is Rs 1,540 while its 52-week low is Rs 748.45 per share.

 

At 1:11 PM, shares of Ahluwalia Contracts were trading 1.20 per cent lower at Rs 985 per share. In comparison, BSE Sensex was trading 0.19 per cent lower at 77,431.47 levels.