Ashoka Buildcon emerges as lowest bidder for Rs 569-crore railway project

Ashoka Buildcon shares have crashed over 27 percent in the last six months.

Ashoka Buildcon Ltd has emerged as the lowest bidder for the Central Railway's gauge conversion project worth Rs 568.86 crore, excluding GST. The project scope includes the construction of earthwork, major and minor bridges, RUBs, P-Way work, and other civil works along the 53.3-km stretch between Pachora and Jamner, excluding Pachora Yard and road over bridges. The project is expected to be completed in 30 months.

This marks the second major order win in just over a month for the construction engineering firm. On March 10, Ashoka Buildcon announced that it had secured a Letter of Acceptance from Maharashtra State Electricity Transmission Co Ltd (MSETCL) for a turnkey substation and transmission line project valued at Rs 311.92 crore, including GST.

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The contract involves setting up a 400/220 KV substation at Nandgaon Peth in Amravati, along with associated transmission lines. The project timeline is 18 months, excluding the monsoon period, the company said.

Operationally, Ashoka Buildcon reported a strong third quarter despite a decline in revenue. Profit before tax rose 62.4 percent year-on-year to Rs 306.7 crore, supported by improved project execution and operational efficiencies. Revenue for the quarter dropped 10.1 percent to Rs 2,387.9 crore, but EBITDA climbed 7 percent to Rs 638 crore. EBITDA margins expanded sharply to 26.8 percent from 22.5 percent in the year-ago quarter.

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Shares of the company closed at Rs 182, higher by 0.4 percent from the last close on the NSE on Friday. Ashoka Buildcon shares have crashed over 27 percent in the last six months.

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