Ashoka Buildcon surges on bagging order from NHAI

Ashoka Buildcon has won a huge order from NHAI after emerging as the highest bidder for the toll-operate-transfer (TOT) projects. The company in joint venture with Macquarie had bided for this project. The company has quoted the bid project cost at Rs. 860.10 crore. This bidding was for the first batch of TOT and has 9 projects under it.

The NHAI was expecting the price of Rs, 6,258 crore, but post bidding. The price came up to Rs. 9,681 crore, which was almost 55 per cent above its expectations.

The company will be responsible for looking after the operation and maintenance of the project for the next 30 years. The construction contract cost for the first two years will be Rs. 1,025 crore. It owns and operates 17 BOT road projects across seven states. For the period ending December 31, 2017, the company’s order book stood at Rs. 5,943 crore. For FY19, it is expecting order inflow worth Rs. 5,000 crore.

In Q3FY18, company’s revenue was up by 25.8 per cent YoY. EBITDA grew by 28.3 per cent YoY and EBITDA margin stood at 24 per cent. Net profit increased by 21.5 per cent YoY.

On Thursday, the stock of Ashoka Buildcon opened at Rs. 224.90 per share and surged by 7.9 per cent and touched intra-day high of Rs. 236. It closed at Rs 228.75.