Ashoka Buildcon has been awarded a turnkey project worth Rs 3.11 billion (including GST) by Maharashtra State Electricity Transmission (MSETCL). The project involves the development of a 400/220 KV sub-station at Nandgaon Peth in Amravati district, along with associated transmission lines under the Amravati zone.

The scope of work includes the supply, erection, testing, commissioning, and civil works necessary for establishing a reliable power transmission infrastructure. The construction timeline is set for 18 calendar months from the date of the contract award, excluding the monsoon period to ensure seamless execution.

Despite a decline in revenue, Ashoka Buildcon reported a 62.4 per cent year-on-year (YoY) increase in profit before tax, reaching Rs 3.06 billion in Q3 FY24. The growth in profitability was driven by operational efficiencies and improved project margins. During the quarter, revenue stood at Rs 23.87 billion, reflecting a 10.1 per cent decrease compared to Rs 26.57 billion in the corresponding period of the previous year.

However, effective cost management contributed to a 7 per cent Y-o-Y growth in EBITDA, which rose to Rs 6.38 billion from Rs 5.97 billion. The EBITDA margin also saw a notable expansion, improving from 22.5 per cent in Q3 FY23 to 26.8 per cent in Q3 FY24. This performance highlights the company’s strong execution capabilities and financial resilience despite revenue fluctuations.

With the new project from MSETCL, Ashoka Buildcon continues to strengthen its presence in the power transmission sector, reinforcing its position as a key infrastructure player in India.

News source: IIFL Capital