Ashoka Buildcon Limited (ASHOKA) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Ashoka Bullcoin Q2FY27 earnings call hosted by Anand Rafi Share and Stockbrokers Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand this conference over to Bhavin Modi from Anandrathi Shell and Stock Brokers Limited. Thank you, and over to you, sir.

Thank you. Hello, everyone. On behalf of Anandrathi Institutional Equities, I extend a warm welcome to the Ashoka Build Con Limited Q2 and H1 FY27 earnings conference call. We are pleased to have with us today Mr. Satish Parak, Managing Director, and Mr. Paresh Mitha, Chief Financial Officer. Without further delay, I invite Mr. Satish, sir, to share his opening remarks, following which we will open the floor for a Q&A session. Over to you, sir.

Thank you, Bavin. Good afternoon, everyone. A very warm welcome to all who are joining this call for Ashoka Bilkorn for earnings conference call for the quarter ended 30th September, 2026. Joining me on today's call is our CFO, Mr. Parish Mehta. I hope everyone had an opportunity to review financial results. Investors' presentation, which have been uploaded on the stock exchanges and company's website. Let me begin by giving you a perspective on the industry environment, and then take you through the key highlights of the company. Industry environment, Q2.27 has commenced a positive note for infrastructure sector, supported by an increase in Domestic Highway Project Awards. Additionally, encouraging opportunities are emerging across other key segments including railways, power transmission, power distribution, international infrastructure projects, providing further impetus to the sectoral growth. As far as fresh project awarding is concerned, there is a significant improvement. In July 2026, NHI awarded approximately 127 kilometers of highway. In August, NHI awarded around 95 kilometers of highway. NHRA's awards reached 329 km by August end. More importantly, Ministry reported that National Highway Project awards reached 2236.3 km during April to September F527, up by 62.9%. NHRA plans to award 5200 km in F527. Which is up by 66% compared to last year. If you look at construction progress, we still see a weakness. Despite the improvement in awarding, construction activity remained under pressure. August 2026, construction declined by 12% and 21% month-on-month to approximately 182 kilometers. Similar to construction during April-September, spread at approximately 206.9 Down by 18%, and it has targeted construction, targeted to construct 4950 km of world in FY27. So, while we remain positive on long-term fundamentals of road infrastructure, we believe the sector is currently undergoing a period where the focus is shifting from simply awarding more kilometers to ensuring these projects are properly appraised, land is made available, and execution can proceed efficiently. For us, this makes diversity efficient particularly important. At the same time, the medium- to long-term opportunity infrastructure remains very strong. The union budget has provided a significant push to the railway sector, which is our focus now, with a record capital expenditure allocation of approximately 2.93 lakh crores. We have also announced seven new highway speed rail corridors, covering around 4,000 kilometers. Because the opportunity in railways is no longer limited. If that represents our entry into TBCB framework in transmission sector, Or the book?

to data INR1609.2 In our beauty division, the company recorded a gross total.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of web of Shafram J.M. Financial. Please go ahead.

Yeah, sir. What has been the ordering flow in first half and year to date in terms of VPC value?

So, in Q2, the ordering thing was 1096 with... And for Q1, I will just...

Mr. Weber. Mr. Weber, we are not audible.

Am I audible now? Yes. Sir, what was Q1 include? I didn't get the number.

Q1 was 362 crores.

And what have you received in October so far?

So that is 391 plus 865 crores. So around 200 crores.

Okay. So, in the presentation, we have mentioned that there are two STV projects over 2019-28 crores. So, that won't be called in the standalone order backlog?

So, they are in the backlog of the, but the revenue will be recognized at the SPV level.

It won't come as standalone?

The revenue will not be recognized as standalone. It will be recognized as CFS.

That's all. Secondly, what is our CAPEX target for the year?

Up to date, CAPEX was around 62 crores, and target is approximately 125 crores for the whole year.

Okay, and what is the equity to be invested now, Penney?

Equity to be invested is around 340 crores for the I am projects, including Bhavai Jendi, to be invested for 26, 27, 153 crores, 27, 28, 114 crores, and 72 crores for 28, 29.

163 is in second half.

153, 153.

153 is in second half of this year.

Yeah, yeah. Because we have received the Bhavachanti content just recently. So, they will be doing major infusion of equity of around 25 crores.

And how much of infusion first half in hand projects?

In the first half, 68 crores.

Okay. And lastly, on the monetization of HAMS, the remaining HAMS, what is the timeline and when do we expect to receive the proceeds?

So, we are on the round, around the corner for monetizing the four HAMS projects. The two HAMS projects will probably happen in the Q4 or Q1 of next year. That is Basmanpur and Tupkorshimoga 4. So, of the 6, 4.

And the proceeds from the four assets

will be in the next two weeks' time, and we have already signed off on the... Sale of the transactions, the actual monetization will happen in Q4 or Q1 of FR27.

And then what will be the amount we expect to receive from 4 and 2 assets?

So 4 and 2 assets approximately 1000 odd crores will be received. The first trans will be approximately 600 crores.

So from 4, 600 and the last to 400 crores? Okay, okay. And sir, one more, one last booking question. What are we, what debt target are we having for March 27?

March 27, the four assets will be sold. So, today we have a total debt of 2781 crores. The four assets debt will go off the console of IBL. So, we will be left with 2000 crores off. which would be split into project date of 800 crores and balance would be working capital.

So, standard will be target roughly 200 crores by year end.

Standalone debt will be approximately 1,000 crores, which based on today's numbers, actual, which will transpire would be substantially less because there will be realization of monetization also, but there will be some investment in new projects also, Bawai Chendi and others. So the estimated standalone debt as of March 27 would be in the range of 6 to 700 crores.

Even after practicing these investments.

Pardon?

Even after practicing the investments, we will be doing it in a second.

Yeah, yeah, yeah.

Okay. Thank you, sir. I will fall back in the queue.

Thank you very much, ladies and gentlemen. In order to ask a question, please press star and one on your touchtone telephone. I repeat, in order to ask a question, please press star and one on your touchtone telephone. The next question is from the line of Weber. Shafun, GM Financial, please go ahead.

Thanks for the follow-up. We have some, so out of the 2100 crores of debt, we have on standalone basis as of September. So, of debt, what would have been third-party and what is from the SPVs that we have taken?

Third-party total gross rate is 2781 crores.

We're not on standalone.

Yes, standalone 1169 is the lender's debt. Balance is inter company.

When we say that we are targeting roughly 700 crores of debt by March, that is only third party we are targeting or including everything?

No, this is third party, that is outside debt from lenders. Sir, the sister-consult dates are owned by the sister-consult, their own networks. True concept, it's not a...

Sir, but we will be getting interest on that, right? So, the interest also will be there, even on the system for general.

I agree, agreed, but then that will remain in the system. These are all 100% old companies of ABL.

Sir, but from finance, from numbers point of view in modeling, so the interest portion will be still remaining higher, something around that interest on 16-17% of debt, even at March 27th.

Yes, that interest will be there.

Okay. Okay. And so lastly, execution was quite fine in the first half, but margins have been quite weak at around 7.1% in the first half. So how do you see the margins for the entire year of FY27 and revenue growth?

So we expect the margin to inch up by a percent and a half by the year end, but we will have to see from perspective of the next two.

So, for the second half, we expect something around 9-0%.

Yeah, 9-0.5%.

And what will lead this improvement from 7% to 9.5% in second half?

So, the existing projects which we are executing, where CADOR is yet to ramp up, like the road projects in Maharashtra and other projects, international projects, they will contribute to the increase in the ramp up.

And our revenue guidance for this year?

Revenue will be as flat as last year. At present, what we see, we will target around to achieve at least 5% out. But at least we will have to move more from a larger period, typically because the execution sometimes gets delayed due to various reasons. In the larger framework of 3 years, we will be in the range of 50% CAGR.

So, 20, it will be a much higher number in terms of growth. With 27 being fattish. Because earlier we were targeting much better numbers in terms of revenue growth, targeting 10-15% for this year. So now, given the current scenario, we are looking for a flattish growth.

Yeah, based on the order intake which is coming late, we may achieve 10%, which is approximately 6600 revenue by March end, but we will have to probably see how the execution happens. Based on existing, we may have around 10% growth overall.

On standalone, right? And so lastly, on order inflows, what do you have ride-in for the year?

So, another C to 5000 is what we are now expecting.

Because now, bidding has started at a good pace. So, orders, of course, bidding will happen, but how fast the order is depends upon the government. So, what we are targeting is C to 5000, of course.

That is beyond what we have received till October. The last 4 months we are targeting C to 5000. 4-5 months.

Okay. Thank you.

Thank you.

Thank you very much. The next question is from the line of Vasudev from Novama. Please go ahead.

Yeah, thank you for the opportunity. So, from the DOT stateful that we have done, we have received the entire amount or something is still pending to be received?

Largely, we have received most of it. Some amount is expected to be received by merchant. Approximately We have 15 outcrores, and there is a deferral based on toll collection which will be received over the next two to three years time, but two portions of it.

Okay, and sir, how much have we received in total until now?

So, we have received approximately 1,700 crores on the BOT plus another 20 crores which we received in the last two quarters.

Okay. And, sir, then do we have any plans right now for Chennai-Oraran and Jauranaigaus take sale?

So, we are pursuing both the projects for sale, and we are talking to potential investors, and then when we have a concrete plan, we will come back to the investors for.

Okay, and sir, what would be a bid pipeline right now if you can, you know, break it up across segments?

The total bid pipeline for Ashoka Bilkoan is 51,000 crores immediately, which includes NHIMRTH railway seats. Thank you.

Okay, got it, sir. Have you bidded for any projects? Yeah, make your pardon. Have you bidded for any projects where bids are yet to open?

Around 800 crore bids or 8000 crore bids are yet to be opened on 70 kilometers.

Okay. Sure, sir. That's it from myself. Thank you and happy to add it to yours.

Thank you very much. The next question is from the line of Bhavan Modi from Anandrathi Share and Stop Glucose Limited. Please go ahead.

Sir, can you just, you know, help us, you know, how are we placed with respect to the, you know, BOT road projects? I see, you know, a lot of big tickets, you know, BOT projects are coming in. So, even if we win, you know, one or two projects, you know, our order book may shoot by, you know, 6,000 to 12,000 per road. So, are we like open to the BOT projects and how are we placed when it comes to the network, you know, or the technical, you know, qualifications?

So, BOT projects, we are very well placed. We are also evaluating various projects. And definitely we will target these projects where, you know, traffic risk is within our visibility. There is a team in place already. We are working with investors on various BOTC.

Second, sir, with respect to, you know, apart from the road, you know, which segment do you foresee, you know, the growth to be coming in, you know. So, I believe there are, you know, a lot of opportunities coming in the railway sector as well as the metro projects. So, should we see, you know, those segments where the growth will be coming in?

Yes, we are participating in railways, metros, TBCV. So, all these three sectors are very promising. Other than this, international markets are also good, so that vertical is also good.

Right, got it. So, sir, do we have any strategy, you know, like, that, you know, with respect to our domestic and overseas mix, how much, you know, are we planning, you know, to have our order book proportion, you know, in the next two, three years, how much would be the overseas and how much would be the domestic?

So, today, if you say it is 90-10, 10% is overseas and 90% is domestic. Going ahead, it would be 20-80-20. And we'll see how we move ahead with our experience. But India itself is growing up a lot of opportunities, India opportunities grow up, it again may remain 90 times.

Right. But sir, when it comes to the overseas, you know, which segment are we, you know, targeting apart from the roads, or road is

only... ...we have whether it is roads, railways, transmission, distribution, all.

Got it.

Same what we do in India, we will do abroad.

Got it, got it. Yeah, sir, that is from my side.

Thank you very much. Ladies and gentlemen, in order to ask a question, please press star and 1 on your touchtone telephone. I repeat, in order to ask a question, please press star and 1 on your touchtone telephone. As there are no further questions, I would now like to hand the comments over to management for closing comments.

We thank all the attendees for this conference call, and we wish everybody a very happy Diwali and prosperous new year, and we are available for any queries on a one-to-one basis. You can call me on my number in the presentation already shared, and thanks everybody again.

Thank you very much. On behalf of Ashoka of WorldCoin Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.