Ashoka Buildcon Ltd. share price target

Results were impacted by multiple non-recurring items write-back of Rs 586mn on termination of the PNG project, higher share of profit from associates due to PNG termination, higher other operating income and higher other income. Adjusting for all...

ABL reported a loss of | 7.3 crore on account of an exceptional item of ~| 57 crore owing to termination of concession agreement of PNG Tollway (a subsidiary of ABL) with NHAI. Adjusting for this,...

Over the past six months, Ashoka Buildcon Ltd. (ABL) has outperformed BSE midcap by 5.2%. New roads EPC order wins, pick-up in toll revenue and BOT?s debt refinancing at lower interest rate have played a supporting role. While subdued mining/agricultural segments continue to be key toll traffic growth headwinds, new orders provide tailwinds for earnings growth.

Toll collections grew 15% yoy boosted by strong 29% growth in JaoraNayagaon and Sambalpurprojects.JaroraNayagaonreportedthethirdconsecutivequarterofstrong growth(29%,27%and21%inlast3quarters)onshiftingoftrafficfromaparallelroad....

Adjusted topline was primarily driven by capitalisation of the DhankuniKharagpur projectand32%yoygrowthinadjustedEPCtopline. AdjustedEPCEBITDAmargins,at15.6%,wereboostedbylowercommodityprices....

Interest expenses and depreciation increased significantly (yoy and qoq) due to capitalizationoftheDhankuniKharagpurproject.ThisledtoPATofRs124mn,significantly lowerthanour(Rs270mn)andconsensus(Rs255mn)estimates....

estimates of Rs5.6bn. The growth in revenues was driven primarily by the EPC division, whichreported28%YoYgrowthonthebackofstrongexecution.BOTdivisiontooreported 46% YoY growth in toll collection, with the commencement of 100% tolling at PNG and...

Ashoka Buildcons (ASBL) 3QFY15 consolidated PAT of Rs 13mn was subdued owing to higher interest costs on account of the Sambalpur project being commissioned during the quarter. While EPC revenues were flat on YoY and QoQ basis, better performance in ACL BOT projects (BOT revenues up 47% YoY, 5% traffic growth) led to 9% YoY revenue growth.