Mumbai, June 5, 2025 – Infrastructure major Ashoka Buildcon Limited (BSE: 533271, NSE: ASHOKA) unveiled its audited financial results for Q4 and FY25, showcasing a tale of two segments: a resilient concessions business driving spectacular consolidated growth, offsetting softer standalone EPC performance, alongside significant strategic portfolio restructuring.
Consolidated Performance Soars:
The highlight of FY25 was the explosive growth in consolidated profitability:
- Profit After Tax (PAT) surged 233% YoY to ₹1,733.6 crores (FY24: ₹521.2 crores).
- Revenue grew modestly by 2% YoY to ₹10,205.4 crores.
- EBITDA jumped 26% YoY to ₹3,088.9 crores, with margins expanding impressively to 30.3% (FY24: 24.6%).
- Profit Before Tax (Before Exceptional Items) more than doubled (104% growth) to ₹1,554.8 crores.
This remarkable performance was significantly fueled by the company’s road concessions arm, Ashoka Concessions Ltd (ACL), and strategic financial moves.
Standalone EPC Faces Headwinds:
In contrast, the core EPC (Engineering, Procurement, Construction) business faced challenges:
- Standalone Revenue declined 8% YoY to ₹7,187.8 crores.
- Standalone PAT fell 56% YoY to ₹197.2 crores.
- EBITDA dipped 3% YoY to ₹673.3 crores, although margins improved slightly to 9.4% (FY24: 8.8%).
Management attributed the standalone dip to project execution timelines and market conditions, while highlighting margin resilience.
Strategic Restructuring Takes Center Stage:
A key driver of the consolidated profit surge and a signal of strategic refocusing was the near-completion of a major divestment:
- Sale of Road Subsidiaries: The company entered agreements to sell its entire stake in five wholly-owned road BOT (Build-Operate-Transfer) subsidiaries. These assets were classified as “Held for Sale” in Q4 FY25.
- Accounting Impact: This classification led to the recognition of a Deferred Tax Asset of ₹424.27 crores and the discontinuation of intangible asset amortization for these subsidiaries, boosting consolidated profits.
- Renewables Exit: Reflecting a sharper focus, Ashoka sold 51% of its stake in renewable energy subsidiary Prakashmaan Renewable Energy Pvt Ltd for ₹1.98 crores, reclassifying it as an Associate (retaining 49%).
Order Book Strength & New Wins:
Despite the standalone revenue dip, Ashoka demonstrated robust order inflow and a healthy backlog:
- Order Book stood strong at ₹14,905 crores as of March 31, 2025 (excluding ₹795 crores won post-quarter-end).
- Significant New Orders Secured in Q4:
- Central Railway Gauge Conversion (₹568.86 Cr): Pachora to Jamner (53.3 km).
- MSETCL Substation (₹311.92 Cr): 400/220 KV substation at Nandgaon Peth, Amravati (Turnkey).
- HAM Project Award: The wholly-owned SPV signed the Concession Agreement for the Bowalchandi to Guskara-Katwa Economic Corridor (NH-116A) in West Bengal (₹1,391 Cr, HAM mode).
Debt Management & Cash Flow:
Ashoka maintained a focus on prudent financial management:
- Standalone Debt: Remained stable at approximately ₹1,405 crores (Mar’25). Debt primarily comprised Working Capital Loans (₹1,004 Cr) and NCDs (₹300 Cr).
- Consolidated Debt: Showed a downward trend, decreasing to ₹6,796 crores (Mar’25) excluding cash. Including cash (₹384 Cr), Net Debt was lower.
- Substantial Cash with Sale Entities: Entities classified as “Held for Sale” held significant cash reserves (₹997 Cr), which will likely bolster the balance sheet post-divestment closure.
- Standalone Cash Flow: Operating cash flow was negative (-₹591 Cr in Q4), impacted by working capital changes, but this was partially offset by financing activities.
Concessions (ACL) Performance:
The concessions business continued its steady contribution:
- Toll Collection Growth: Most ACL BOT projects reported YoY growth in toll revenue for FY25 (e.g., Dhankuni Kharagpur +5%, Durg +9%, Jaora Nayagaon +11%).
- Project Completion: Received Provisional Completion Certificate (PCOD 2) for the Tumkur-Shivamogga NH-206 (Karnataka) HAM project, making it eligible for additional annuity payments.
Management Outlook:
Ashoka Buildcon’s strategic moves point towards a focused future. The divestment of mature BOT assets and the exit from renewables streamline the portfolio. The strong consolidated results, healthy order book spanning roads, buildings, railways, and power T&D, and new project wins position the company for continued involvement in India’s infrastructure development, potentially with a sharper focus on EPC and HAM projects post the BOT subsidiary sales.
About Ashoka Buildcon:
A leading diversified infrastructure player with over 45 years of experience, Ashoka specializes in Roads (EPC & HAM), Power T&D, Buildings, and Railways. It boasts a strong order book and a proven track record of executing complex projects across India and internationally.
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