Ashoka Buildcon subsidiary sells land in Pune for ₹453 crore; stock rises 6%

Shares of Ashoka Buildcon Ltd gained over 6% to trade at an intraday high of ₹284.74 apiece on the NSE on Friday, September 6, after the company announced its subsidiary monetising a land parcel in Pune, Maharashtra.

Ashoka Buildcon informed the stock exchanges in a filing on September 5 that the land was owned by the company's real estate portfolio.

The company said that its wholly owned subsidiary, Viva Highways Limited (VHL) sold its land in Hinjewadi, Pune. The land parcel was sold for a total consideration of ₹453 crore.

Earlier on August 24, the company informed the exchanges about securing an order from the Mumbai Metropolitan Region Development Authority (MMRDA). As a part of the order, the company will undertake design and construction of an elevated road and slip road from Kalyan Murbad Road (Palms WaterResort) to Badlapur Road (Jagdish Dughdhalaya) to Pune Link Road over Karjat- Kasara Railway Line in Maharashtra.

The project has been awarded on an Engineering Procurement and Construction (EPC) basis. The order is ₹478 crore plus applicable GST, and it is to be executed in 36 months, including the monsoon period.

Ashoka Buildcon’s consolidated revenue from operations for the June quarter of FY25 increased over 27% to ₹2,465.39 crore against ₹1,935.16 crore in the year-ago period. Sequentially, the company’s revenue from operations decreased over 19% from ₹3,051.86 crore in the March quarter of FY24.

In Q1FY25, the company’s consolidated profit-after-tax increased more than 156% to ₹157.93 crore against ₹61.62 crore in the corresponding quarter of the preceding fiscal. The company’s profit-after-tax for Q1FY25 declined nearly 38% from ₹254.3 crore in Q4FY24.

Shares of Ashoka Buildcon were trading 0.6% higher at ₹269.15 apiece on the NSE at 1:00 pm.