Q1 2027 Ahluwalia Contracts (India) Ltd Earnings Call Transcript
Key Points
- Ahluwalia Contracts (India) Ltd (BOM:532811) reported a 12.03% year-over-year growth in turnover, reaching Rs. 1,125.81 crore in Q1 FY27.
- The company maintains a robust net order book of Rs. 20,663.52 crore, providing strong revenue visibility for the next three and a half years.
- Management is actively engaging with clients to secure compensation for the significant increase in labor costs, with clients showing a favorable response.
- The company is incorporating higher labor and staff costs into its bidding for new projects, which is expected to help restore historical margins in the future.
- Despite challenges, the company maintains its top-line growth guidance of 12-15% for the fiscal year, with major projects like Central Vista and Dalia expected to ramp up billing significantly.
- EBITDA margin declined sharply to 4.29% in Q1 FY27 from 8.59% in Q1 FY26, primarily due to a Rs. 29 crore reduction in the final bill for the AIMS Jammu project.
- A substantial 35-40% increase in minimum wages in the NCR region, which constitutes about 50% of the order book, has led to a significant rise in labor costs.
- The company faces an adverse impact on margins due to increased staff costs from mobilizing resources for its enlarged project portfolio.
- Execution in West Bengal and Assam was negatively impacted by the SIR drive and elections, leading to higher IDC costs and reduced turnover.
- Management has ruled out achieving double-digit EBITDA margins for the current fiscal year due to ongoing volatility, including potential impacts from NGT regulations and supply chain disruptions.
Ladies and gentlemen, good day and welcome to the Alu Alia Contracts India Limited Q15527 Earnings Conference Call hosted by Ambit Capital Private 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 then zero on a touch-tone phone.
Please note that this conference has been recorded.
I now hand the conference over to Mr. Sudipoda.
Thank you, and over to you, sir.
Good evening, everyone.
On behalf of Ambit Capital, I thank the management of Alwalia Contracts India Limited for the opportunity to host the Q1FY27 Earnings Conference Call.
To discuss the result, I'm pleased to welcome Mr. Shobhit Upal. Deputy Managing Director, Mr. Vikas Ahluwalia, Detector, and Mr. Sadi Singh, Chief Financial Officer.
Now, I invite the management to take
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