ASHOKA BUILDCON

Ashoka Buildcon, a highway concessionaire and engineering, procurement and construction (EPC) company had hit a new 52-week high on the back of its ‘robust’ performance for Q4FY14. It recorded a whopping 111% (YoY) jump in consolidated net profit at Rs.13 crore though there was an over 6% decline in its net income at Rs.608 crore. Thus the surge in net profit was more on account of operational efficiency and less due to increase in topline. It reduced its operating costs by 10%, over two times surge in other income at Rs.11 crore and 11% drop in tax outgo. The company also has an exceptional expense of Rs.16 crore, which is impairment charges – starting 12th Nov’12, PWD of Maharashtra has directed the company to stop collecting toll for its Ahmednagar project and the company has challenged this order, with the matter under arbitration.

For the fiscal FY14, its consolidated net profit was at Rs.97 crore, up 15% on a net income of Rs.1795 crore, down 3%. Recently, in April’14, the company announced financial closure for its highway project in Tamil Nadu, the Thiruvottiyur-Ponneri-Pancheti road. The total project cost of this project is Rs.1440 crore, with a concession period of 20 years.