Ashoka Buildcon - Q1FY21 First Cut - ICICI Securities

(CMP - Rs. 63; MCap: Rs. 1,783 crore)

Ashoka Buildcon's performance was a mixed bag in Q1FY21. It reported weak execution, as expected, owing to Covid-19 led challenges. However, better than expected reported margins (largely due to lower other expenses) led to superior bottomline.

Q1FY21 Earnings Summary

- Revenues de-grew by ~35% YoY to Rs. 572.4 crore and were tad above our expectation of Rs. 549.9 crore. Decline in revenues were on account of weaker-than-expected execution during the quarter owing to Covid-19 led challenges such as lockdown, labour shortage and material availability

- Reported EBITDA margins were up 180 bps YoY to 14.3% and were much ahead of our expectation of 8%, largely due to sharp reduction in other expenses. We await further details to gauge if there is any one-off element in margin expansion

- RPAT grew 11.9% YoY to Rs. 68.1 crore (our estimate: Rs. 18.1 crore) on account of lower depreciation & interest charges and higher reported EBITDA

We await other details such as debt, order book and post unlock execution traction. Furthermore, the lack of clarity over Macquarie exit remains an overhang coupled with weak outlook in the near term. We will review our estimates and come out with a detailed report post the conference call tomorrow.

Shares of ASHOKA BUILDCON LTD. was last trading in BSE at Rs.63.4 as compared to the previous close of Rs. 62.8. The total number of shares traded during the day was 419496 in over 3331 trades.

The stock hit an intraday high of Rs. 65 and intraday low of 60.1. The net turnover during the day was Rs. 26418448.

Source : Equity Bulls

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