Ahluwalia Contracts trades higher after winning orders worth ₹1,307 crore

Ahluwalia Contracts (India)’s shares jumped over 5% on Tuesday after the company announced that it had won two orders amounting to ₹1,307 crore. The company received two group housing projects in Gurugram by Signature Global Homes. The company stated that it secured two orders for the civil structure, partial mechanical, engineering & plumbing (MEP), and the finishing works for all towers and basements. The contract also includes work at all other ancillary buildings.

The order for Project De-luxe DXP, Gurugram is worth ₹1,144 crore while the order for Iconic Tower, Gurugram is worth ₹163 crore. Both the orders are expected to be completed within 48 months.

Recently, the company also announced that it had won an order from Bharat Aluminium Company (BALCO) for designing and building 756 2 BHK apartments on an engineering, procurement & construction (EPC) basis at BALCO Kobra, Chhattisgarh. The order is worth ₹350 crore and is expected to be executed within 28 months.

For the quarter ended June 30, 2024, the company reported a 38.43% year-on-year (YoY) decline in net profit to ₹30.6 crore. The company’s income from operations came in higher by 20.39% YoY at ₹919.3 crore. However, it is worth noting that the company recorded exceptional gains of ₹144.9 crore during the quarter.

The company’s earnings before income before interest, taxes, depreciation, and amortisation (EBITDA) fell 26.84% YoY to ₹60.5 crore. The EBITDA margin in Q1FY25 contracted to 6.6% from 10.8% in the corresponding period last year. Meanwhile, the net profit margin shrunk to 3.3% from 6.5% in the same period last year.

As of June 24, 2024, the company’s gross order book stood at ₹21,439 crore. The unexecuted order book stood at ₹13,143 crore. Infrastructure and hospital segments contribute the most to the company’s order book at 27.8% and 23.9%, respectively.

Shares of the company have risen by nearly 61% since the beginning of the year. The stock has gained over 76% in the past year.