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Ashoka Buildcon Limited, a prominent player in the infrastructure sector, has won an important engineering, procurement, and construction (EPC) contract valued at ₹568.86 Crore from Central Railway. This contract is for the gauge conversion project between Pachora and Jamner, located in Maharashtra.
The company confirmed that it has received the Letter of Acceptance (LoA) for the project, signaling the official start of the contract. The scope of work for this project is substantial, covering various tasks like earthwork, constructing major and minor bridges, building road under-bridges (RUBs), laying permanent tracks, and other civil works. The project will span a distance of 53.3 kilometers, excluding the Pachora yard and road over-bridge components. Ashoka Buildcon has set a target to complete this project in 913 days. The contract value of ₹568.86 Crore is exclusive of goods and services tax (GST).
Strong Financial Performance in Q3FY25
This contract win comes on the back of strong financial results for Ashoka Buildcon in the third quarter of the fiscal year 2025 (Q3FY25). The company reported a significant 62.40% growth in profitability year-over-year, with a profit before tax of ₹306.70 Crore. This impressive profit growth was driven by improved operational efficiencies and better margins.
However, the same quarter also saw a decline in revenue from operations. The company’s revenue dropped to ₹2,387.90 Crore, marking a 10.10% decrease from ₹2,657.10 Crore in the same quarter last year. Despite the dip in revenue, Ashoka Buildcon’s earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a 7% year-over-year increase, rising to ₹638 Crore from ₹597 Crore in Q3FY24. This led to a significant improvement in the EBITDA margin, which rose to 26.8% from 22.5% in Q3FY24. This improvement in margin indicates better cost control and efficiency in executing projects.
Strong Order Book and Future Outlook
Ashoka Buildcon attributes its positive financial results to its strong order book and its expertise in infrastructure development, particularly in diverse projects like highway construction, bridge building, and urban infrastructure development. The company’s ability to manage a wide range of infrastructure projects positions it well for future growth.
Share Price Boost
