Ashoka Buildcon (ASHOKA) Q2 24/25 earnings summary

Executive summary

• Significant industry tailwinds from increased road infrastructure investment, NHAI's monetization initiatives, and major business milestones including divestments, acquisitions, and asset monetization are driving sector growth.

• Robust order book maintained, with INR 15,424 crores as of September 2024 and additional LOAs post-quarter.

• Board approved unaudited standalone and consolidated financial results for Q2 and H1 FY25, reflecting continued operations and asset divestments in progress.

• Secured multiple large infrastructure project orders and received completion certificates for key projects.

• Ongoing regulatory investigations and asset divestments remain key uncertainties.

Financial highlights

• Consolidated Q2 FY25 revenue rose 16% year-over-year to ₹248,893.10 lakhs; H1 FY25 up 21% to ₹495,432.36 lakhs.

• Consolidated PAT surged 334% year-over-year in Q2 FY25 to ₹46,246.90 lakhs; H1 FY25 PAT was ₹62,040.00 lakhs.

• Standalone Q2 FY25 revenue was ₹141,755.85 lakhs, down 8% year-over-year; H1 FY25 revenue was ₹329,461.27 lakhs.

• Standalone PAT for Q2 FY25 was ₹2,863.01 lakhs; H1 FY25 PAT was ₹4,432.51 lakhs.

• Gross toll collection in BOT division grew 6% year-over-year to INR 316 crores.

Outlook and guidance

• FY25 revenue expected to be flattish with EBITDA margin guidance revised to 8.5% for H2 FY25; double-digit EBITDA margins anticipated from Q1/Q2 FY26 as new projects ramp up.

• FY26 revenue growth projected at 10-15% with improved margin profile.

• Advanced stage of divestment of stakes in subsidiaries engaged in road projects; high probability of sale completion.

• Agreements signed post-quarter for further asset sales and acquisition of investor stakes, subject to regulatory approvals.

• Focus on execution of new and ongoing projects, with continued emphasis on asset monetization and strategic acquisitions.