Ahluwalia Contracts Secures Rs.572 Crore Deal from Airports Authority of India

Shares of Ahluwalia Contracts, a leading construction-engineering company, soared by approximately 16%, reaching a record high of Rs.1,520 per share today following the announcement of a contract win from the Airports Authority of India (AAI). Ahluwalia Contracts’ shares have exhibited a remarkable 91% increase year-to-date, reflecting an impressive 336% gain over the past five years.

Major Contract Win

In a recent filing, Ahluwalia Contracts revealed it had secured a Rs.572 crore order from AAI. The company will develop a new civil enclave at Darbhanga Airport in Bihar. The  project includes the construction of a new terminal building, allied developments, and some external work under the Engineering Procurement and Construction (EPC) model,  slated for completion within 24 months.

Financial Performance

Ahluwalia Contracts reported robust financial results for Q4FY24, with revenue soaring 35% and net profit skyrocketing 177% year-on-year. The operating income increased by 175% quarterly and 170% annually, with earnings per share (EPS) at Rs.8.21. The company’s market capitalization now stands at Rs.10,060 crore.

Recent Orders

This contract is part of a series of wins for Ahluwalia Contracts. In June, the company secured an order worth Rs.98.80 crore from Indian Financial Technology and Allied Services for MEP work at the Enterprise Computing and Cybersecurity Training Institute in Bhubaneshwar. Additionally, the company received a Rs.88.15 crore order from Daffodil Hotel Private Limited for civil work at Park Hyatt Goa.

Expanding Order Book

In FY24, Ahluwalia Contracts’ gross order book grew to Rs.11,179.9 crore, up 37% from Rs.8,162.7 crore in FY23. The order book distribution includes 38% from central government projects, 23.5% from state governments, 34.9% from the private sector, and 3.4% from international government projects.

Conclusion: The Indian construction sector is set for substantial growth, projected to reach $1.4 trillion by 2025. Ahluwalia Contracts, with over five decades of expertise, seems well-positioned to capitalize on this expanding market as the company’s diverse portfolio and recent contracts bring out its industry position and growth potential.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.