Ahluwalia Contracts (India) Limited — Investor Meet, 18-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

1. Financial Performance: Ahluwalia Contracts reported a turnover of ₹951.95 crore and a profit after tax (PAT) of ₹49.39 crore for Q3 FY25, marking a decline of 7.26% in revenue and 30.10% in PAT year-over-year. The earnings per share (EPS) decreased to ₹7.37 from ₹10.55 in Q3 FY24. The EBITDA margin fell to 8.86%, down from 10.90%, while the PAT margin decreased to 5.11% from 6.82%. For the nine-month period, the turnover was ₹2,882.79 crore, with a PAT of ₹118.35 crore, reflecting a decline in margins and earnings compared to FY24.

2. Future Outlook and Growth Drivers: Management anticipates an 8.5%-9% growth for FY25 while projecting a recovery with a 15% growth target for FY26. The order book remains robust, supported by expectations of improved execution on major projects like CSMT, as design issues are resolved.

3. Order Book and Operational Updates: The net order book stood at ₹16,258.44 crore, with total order inflow in FY25 at ₹7,794.37 crore. Management indicated that substantial inflows are anticipated as larger projects move forward.

4. Analyst Q&A Insights (Detailed):

- Revenue and Profitability: Analysts inquired about revenue projections, with management acknowledging the NGT bans impacting performance. Future growth is expected as pending orders are executed.

- Market Position and Competitive Landscape: Management suggested an optimistic view on maintaining competitive margins against peers, despite industry-wide challenges.

- Operational Challenges or Risks: Concerns over labor availability and NGT disruptions were acknowledged, but management expressed confidence in mitigating impacts.

- Capex and Capital Allocation: CAPEX for the nine months was ₹154 crore, with expectations of reduced spending moving into FY26.

- Strategic Priorities and Long-Term Vision: The ongoing digital transformation was highlighted as a key driver for increased efficiency and future profitability.

5. Market or Regulatory Updates: The managerial team discussed the impact of NGT regulations on construction activities, which had been particularly severe this past quarter.

6. Strategic Focus Areas: Management emphasized a commitment to execution efficiency, aiming to overcome past hurdles and maintain a balanced project portfolio across private and public sectors.

7. Investor Insight: Given the solid order book and management’s prudent forward guidance, the financial position and growth outlook suggest a ‘buy’ stance, provided risks associated with regulatory impacts and project execution are diligently monitored.