Ahluwalia Contracts jumps 15 per cent on securing NBCC order worth Rs 290 crore

Ahluwalia Contracts (India) Limited on Thursday after the market hours informed the bourses that the company has secured an order worth Rs 290 crore.

This order has been awarded to Ahluwalia Contracts from NBCC (India) Ltd for the construction of a new Building of Pt. Jawaharlal Medical College and Hospital, Chamba (Himachal Pradesh).

The company’s order book as on March 31, 2020, stood at Rs 7,462 crore (4x of FY20 revenue), which is likely to be executed over the next two and a half years. The total order inflow so far in FY21 stands at Rs 290 crore. This inflow, combined with a healthy order book, provides strong revenue visibility. Order book mix comprises of hospital- 48 per cent, institutional- 27 per cent, residential- 12 per cent, commercial- 7 per cent and infrastructure- 6 per cent.

Looking at the impact of COVID-19, the company has maintained its liquidity position and has not availed any moratorium facility. Also, the company does not plan to raise any capital in the near future. The company is very comfortably leveraged on the debt front and most of the fund-based working capital limits are still unutilised. However, profitability has been affected due to a halt in the construction activities because of which, fixed costs have been increased.

On Friday, the stock of Ahluwalia Contracts opened at Rs 235. In the morning trading session, it surged nearly fifteen per cent to Rs 270 on BSE.