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Execution of projects to pick up from Q4; see revenue growth of 20% for FY22: Ashoka Buildcon

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Paresh Mehta, CFO of Ashoka Buildcon, said the firm saw subdued numbers in Q2 due to a delay in executing certain projects owing to the monsoon season.

Ashoka Buildcon expects execution of major projects to pick up from the fourth quarter of financial year 2022, said Paresh Mehta, CFO of the company, adding that this would lead to an estimated revenue growth of around 20 percent for the year.
Mehta said the firm saw subdued numbers in Q2 due to a delay in executing certain projects owing to the monsoon season. "The revenues were lower because of delays in execution of certain projects due to the monsoon season in the quarter gone by," he said in an interview with CNBC-TV18.
Ashoka Buildcon's year-on-year revenue growth in Q2 was about 6.4 percent and the EBITDA was up about 4 percent. There was some pressure on the margins as well. As of September 30, the order book stood at Rs 11,880 crore.
"The company is sitting on a good order book of almost Rs 12,000 crore, of which Rs 3500 crore was in the past seven months. We believe that execution level would be good going forward," said Mehta.
He is of the belief that the execution will pick up substantially by Q4.
"In view of certain projects kicking off slightly later, the major execution would appear in quarter one of next year. So the estimated revenue growth year on year would be around in the range of 20 percent. While margins would settle somewhere around 15-15.5 percent including other incomes and in the range of 12 percent without the other income," said Mehta, adding that these margins are generally standard for the industry unless there are some abnormal events.
For the full interview, watch the accompanying video