Infra stock jumps 8% after winning ₹1,006 Cr order from Madhya Pradesh Govt.

Shares of this infrastructure engineering and construction company surged 8 percent on BSE to reach a record high of Rs. 564.4 on Monday, after the company announced securing an order worth Rs. 1,006.74 crores from Madhya Pradesh Metro Rail Co. Ltd. 

With a market cap of Rs. 19,786.8 crores, at 12:16 p.m., the shares of Afcons Infrastructure Limited were trading in the green at Rs. 538, up by around 3 percent, as against its previous closing price of Rs. 522.65. 

What’s the news: 

Afcons Infrastructure Limited, as per its latest regulatory filings with the stock exchanges, has been declared the Lowest Bidder (L1) and received a Letter of Acceptance (LoA) from Madhya Pradesh Metro Rail Co. Ltd. 

The contract, valued at Rs. 1,006.74 crores, is part of the Bhopal Metro Rail Project on an EPC mode and is scheduled for completion within 36 months. 

The project entails the design and construction of an elevated viaduct and 13 elevated metro stations, connecting Bhadbhada Chauraha to Ratnagiri Tiraha, spanning a chainage of 50+000 to 62+915. It also includes the construction of access to the depot between chainages 00+143 and 01+080 for the Blue Line of the Bhopal Metro Rail Project. 

Previous Orders: 

On 21st November, Afcons Infra secured an order worth Rs. 1,274 crores from Uttarakhand Project Development and Construction Corporation Ltd. The project involved civil and HM works for constructing a 130.6-meter-high concrete gravity dam and appurtenant structures across the River Song in Dehradun, Uttarakhand. 

On 11th December, Afcons – Hindustan JV, a joint venture between Afcons Infra and Hindustan Project, was declared the lowest bidder (L1) for a water supply project worth around Rs. 504 crores under Jal Jeevan Mission in Dungarpur, Rajasthan. 

The project involved the development of intake wells, water treatment plants, and transmission systems, with a 10-year O&M contract post-completion. 

Financials: 

Afcons Infrastructure reported a decline in revenue from operations, experiencing a year-on-year fall of nearly 11.2 percent, from Rs. 3,334 crores in Q2 FY24 to Rs. 2,960 crores in Q2 FY25. In contrast, its net profit increased during the same period from Rs. 104 crores to Rs. 135 crores, representing a growth of nearly 30 percent YoY.

EBITDA for Q2 FY25 increased by about 8.5 percent YoY to Rs. 427 crores, up from Rs. 394 crores in Q2 FY24, while recording the highest ever EBITDA margin which stood at 13.8 percent, as against 11.5 percent, over the same period. 

Post the IPO fundraising, Afcons Infra has utilized the IPO proceeds to the extent of Rs. 600 crores for repayment of debt and Rs. 320 crores towards working capital requirements. 

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Order Book: 

As of September 2024, the company’s order book stood at Rs. 34,152 crores, reflecting a strong revenue visibility. In H1 FY25, the order momentum of Afcons Infrastructure was robust as the company received orders worth Rs. 8,925 crores. 

Additionally, the company has emerged as the L1 bidder for orders amounting to Rs. 10,154 crores of which LoAs have been received for orders worth Rs. 3,752 post-September 2024. 

Key Financial Ratios: 

In terms of key financial metrics, Afcons Infrastructure has a Return on Equity (RoE) of 14.5 percent and a return on capital employed (RoCE) of 23.1 percent. Additionally, the company’s debt-to-equity ratio stands at 0.92. 

About the company: 

Afcons Infrastructure Limited, a flagship infrastructure engineering and construction company of the Shapoorji Pallonji Group, is engaged in delivering projects ranging from expressways, underground and elevated metros, railways, bridges, dams, irrigation systems, hydro, water supply, ports, breakwaters, and oil & gas around the world. 

Written by Shivani Singh 

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