Ahluwalia Contracts Q3 Results Review

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Ahluwalia Contracts India Ltd.’s Q3 FY23 profit after tax came lower than our estimates by 9%. Miss was mainly due to lower execution (revenue) at +9% YoY versus our estimate of +15%.

Having said this, company is eyeing 10-15% YoY revenue growth in FY23E, FY24E is expected to grow at +15% YoY. This implies execution to improve in Q4 FY23.

Ebitda margin including other income is currently at 10.5% and is guided to improve in Q4 FY23 and close FY23 at +11% and for FY24 at +12%.

Order book at Rs 81 billion provides visibility of ~three years; and further build up is expected as Ahluwalia Contracts has bid pipeline of Rs 30 billion.

Nine months-FY23 order inflow is at Rs 47 billion (including level one of Rs 7 billion), inflow in Q4 FY23 is expected at Rs 5 billion plus.

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