Ashoka Buildcon shares fly over 7% after profit soars 337% in Q2FY25

Ashoka Buildcon share price scaled up to 7.2 per cent at Rs 241.45 per share on the BSE in Wednesday’s intraday deals after the company reported strong quarterly earnings for the second quarter of financial year 2024-25 (Q2FY25).

 

Ashoka Buildcon on Tuesday reported a net profit surge of 331.7 per cent for the September quarter at Rs 462 crore, compared to Rs 107 crore loss in the same period last year. The company’s revenue for the quarter stood at Rs 2,489 crore, reflecting an 15.5 per cent increase from Rs 2,154 crore in the previous year.  

 

Ashoka Buildcon’s earnings before interest, tax, depreciation, and amortisation (Ebitda) came in at Rs 905 crore, up 66.3 per cent versus Rs 544 crore in the same quarter last year. Ebitda margin increased 1,110 basis points year-on-year (Y-o-Y) in Q2FY25 to 36.3 per cent versus 25.2 per cent in Q2FY24.

 

 

As of September 30, the company’s total order book stood at 11,104 crore as against Rs 10,356 crore in Q2FY24, reflecting a rise 7.2 per cent Y-o-Y. 

 

The company specialises in constructing infrastructure facilities on an engineering, procurement, and construction (EPC) basis, as well as on a build, operate, and transfer (BOT) basis. It also sells ready-mix concrete. For some projects, the company has established special purpose vehicles (SPVs) to receive toll collection rights in exchange for covering construction costs.

Ashoka Buildcon share price history

The company’s stock has outperformed the market year to date as it has risen 71 per cent, while gaining 68 per cent in the last one year. In comparison BSE Sensex has risen 8.6 per cent year to date and 20.8 per cent in a year. 

 

The company has a total market capitalisation of Rs 6,584.36 crore. Ashoka Buildcon shares are trading at a price to earnings multiple of 13.52 times and at an earning per share of Rs 16.64. 

 

At 9:45 AM; the shares of the company pared some of its gains and were trading 3.64 per cent higher at Rs 233.25 a piece. By comparison, the BSE Sensex was down 0.32 per cent at 78,419.52 level.