Motilal Oswal's research report on Ashoka Buildcon
Standalone revenue grew 102% YoY to INR7.6b in 2QFY19, ahead of our estimate of INR4.3b. Sales were supported by better-than-estimated execution of projects in hand. Construction revenue grow 111% YoY supported by strong growth in the power T&D segment (+152% YoY to INR3.3b). EBIDTA grew 127% YoY to INR1.0b, ahead of our estimate of INR518m, with margin improvement of 160bp to 13.6% from 12.0% in the year-ago period. Adj. PAT of INR621m, ahead of our estimate of INR362m, grew by 124% YoY.
OutlookWe increase our operating profit estimate for FY19/20 by 4%/3%, respectively, to factor in better-than-estimated margins in the EPC business and raise our earnings estimate by 223%/62% for FY19/20. We maintain our Buy rating with SOTP-based TP of INR175.
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