Ashoka Buildcon Expands Global Footprint with Water Wells Project in Ivory Coast

International Expansion

Ashoka Buildcon has secured a significant international project through an EPC (Engineering, Procurement, and Construction) Agreement with Serneke International Group AB, Sweden. The project, floated by Baran International Ltd, involves constructing 100 drinking water wells and installing drinking water supply units in 35 villages across Ivory Coast. This project is valued at €18.50 million (excluding duties and taxes) and is scheduled for completion by October 31, 2026. Ashoka Buildcon’s involvement in this project marks a positive step towards expanding its services globally and contributing to vital infrastructure development in Africa.

Strengthening Domestic Presence with Major Road Projects

Ashoka Buildcon further solidified its position in the Indian infrastructure sector by emerging as the lowest bidder for two EPC projects undertaken by the Maharashtra State Road Development Corporation Ltd. These projects involve the construction of major bridges across vital waterways in Maharashtra. The first project focuses on building a bridge across the Jaigad Creek, with a quoted bid price of Rs 794.85 crore plus applicable GST. The second project entails constructing a bridge across the Kundalika Creek, with a quoted bid price of Rs 1,357.87 crore plus applicable GST. Both projects have a deadline of 36 months for completion, including monsoon periods.

Financials

Ashoka Buildcon Limited, a prominent player in the integrated EPC and BOT sectors, in Q4 FY24, recorded a substantial revenue growth of 22% year-on-year, reaching Rs 2,532 crores, compared to Rs 2,068 crores in Q4 FY23. This growth trajectory is consistent with the yearly performance, with total income for FY24 standing at Rs 7,841 crores, marking a 21% increase from the previous fiscal year. Despite higher operating expenses, Ashoka Buildcon achieved an EBITDA of Rs 218.6 crores in Q4 FY24, with an EBITDA margin of 8.6%, reflecting operational efficiency and resilience.

However, the profit before tax witnessed a slight decline, attributed partly to exceptional gains recorded in the previous fiscal year. The company’s consolidated debt stands at Rs 7,139 crores, with standalone debt comprising Rs 1,143 crores, primarily in the form of working capital loans and equipment/term loans.

The BOT division recorded a notable toll collection of Rs 329 crores in Q4 FY24, indicating a 9.8% year-on-year growth, and Rs 1,247 crores in FY24, reflecting an 11.7% increase. Ashoka Buildcon’s order backlog as of March 31, 2024, amounts to Rs 11,697 crores, reflecting a diversified portfolio across segments, with notable contributions from road EPC, power T&D, and railways projects.

As of March 31, 2024, Ashoka Buildcon’s current order backlog stands at approximately Rs 11,697 crore.

About Ashoka Buildcon Ltd

Ashoka Buildcon is a Fortune India 500 company and one of the leading highway developers in India. The company is an integrated EPC, BOT and HAM player. The Company has experience of more than 28 years in the field of construction and infrastructure development. The Company has executed / been executing 41 PPP Projects and has presence over 20 states in the country. The Company has constructed various prestigious projects across the country in roads and highways sectoRs Ashoka has time and again demonstrated its ability to transform the opportunities into success especially in sectors requiring complex skill sets.

Shares of the company closed at Rs 186.35 per share, up 3.47% from the previous closing, reacting to this news. The company has delivered 33.82% returns for the year till date and 128.09% returns for the past 1 year.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.