Afcons Infrastructure Limited — PPTs, 23-05-2025: Investor Presentation

1. Financial Highlights:

Afcons reported total income of ₹13,023 Cr for the year, down 4.6% YoY, while EBITDA rose 5% to ₹1,662 Cr, lifting the margin to 12.8%. Profit after tax grew 8% to ₹487 Cr, with a PAT margin of 3.7%. However, Q4 saw a 23.5% YoY dip in PAT to ₹111 Cr and EBITDA margin slipped to 12.2%. The order book stands strong at ₹36,869 Cr (excluding L1 bids of ₹10,662 Cr), supporting a 2.9x book-to-bill ratio. Net debt-to-equity improved to 0.3x, and returns remained healthy with ROE at 11% and ROCE at 17.3%. Working capital days increased from 63 to 113, reflecting higher capital intensity.

2. Strategic Initiatives & Growth Drivers:

Focus remains on large, complex EPC projects—especially tunneling and metro infrastructure—that command higher margins with less competition. Investments in a fleet of 17 tunnel boring machines and workforce development via the Talent Management Academy aim to enhance execution capabilities. Strategic overseas expansions target South Asia, Africa, and the Middle East. Cost control and execution efficiency are driven by value engineering and technological innovation.

3. Business Developments:

Key projects include the Mumbai-Ahmedabad High-Speed Rail’s C2 tunnel package (India’s first 7 km undersea tunnel), metro expansions in Delhi and Bengaluru, Greater Male Connectivity in the Maldives, and multiple water supply schemes. Order inflows surged to ₹15,960 Cr, more than doubling from last year, fueled by wins across urban infrastructure, hydro & underground, and marine sectors.

4. Market Position & Competitive Advantage:

Afcons is a leading Indian EPC player with 60+ years of experience and operations in over 30 countries. Its niche expertise in extreme engineering projects—long tunnels, tall bridges, underwater metros—sets high entry barriers and differentiates it from peers. The company boasts a significant indigenous equipment fleet worth ₹4,275 Cr and robust risk and contract management systems, underpinning disciplined execution on complex contracts.

5. Investor Implications:

A strong order book and focus on complex, high-margin projects signal positive growth potential. Improved leverage and capital structure lower financial risk, though rising working capital needs and recent margin softness require monitoring. Overseas expansion and technology-led efficiency gains could drive sustainable profitability going forward.