Top Challengers - Ashoka Buildcon Ltd
ROADS & HIGHWAYS

Top Challengers - Ashoka Buildcon Ltd

In the past three years, road construction companies faced several challenges such as slower awarding of contracts and higher interest costs, making many projects unviable, and contraction of margins from increased competition. Ashoka Buildcon was no exception and FY13 was difficult. However, the recent decision of the Cabinet Committee on Investments has helped the order inflow increase and led to its strong performance for FY14.

¨Selection of the right projects helped us,¨ says Satish Parakh, Managing Director, Ashoka Buildcon Ltd. ¨Execution challenges must be analysed well before bidding for the project such as quarrying, sourcing of raw materials, land acquisition and any local political issue. By ensuring these factors, one can protect both the topline and bottomline.¨ Besides, the parent company being well-funded and having low debt helped tremendously.

In terms of safety measures, Parakh shares, ¨While the entire market was very aggressive in bidding, we have been conservative about bidding and traffic estimate as well as being highly accurate in estimating project cost.¨ Going forward, he avers that the company´s proven capability in project execution and design as well as complete control over the entire value chain of BOT projects will help immensely.

Particulars Net sales PBDIT Net profit
FY14 (Rs. crore) 4,042.51 499.15 80.64
Growth %
over FY13
5.49 131.98 158.59
Orderbook for 2013-14: Rs. 3,550 crore

In the past three years, road construction companies faced several challenges such as slower awarding of contracts and higher interest costs, making many projects unviable, and contraction of margins from increased competition. Ashoka Buildcon was no exception and FY13 was difficult. However, the recent decision of the Cabinet Committee on Investments has helped the order inflow increase and led to its strong performance for FY14. ¨Selection of the right projects helped us,¨ says Satish Parakh, Managing Director, Ashoka Buildcon Ltd. ¨Execution challenges must be analysed well before bidding for the project such as quarrying, sourcing of raw materials, land acquisition and any local political issue. By ensuring these factors, one can protect both the topline and bottomline.¨ Besides, the parent company being well-funded and having low debt helped tremendously. In terms of safety measures, Parakh shares, ¨While the entire market was very aggressive in bidding, we have been conservative about bidding and traffic estimate as well as being highly accurate in estimating project cost.¨ Going forward, he avers that the company´s proven capability in project execution and design as well as complete control over the entire value chain of BOT projects will help immensely. Particulars Net sales PBDIT Net profit FY14 (Rs. crore) 4,042.51 499.15 80.64 Growth % over FY13 5.49 131.98 158.59 Orderbook for 2013-14: Rs. 3,550 crore

Next Story
Infrastructure Transport

HG Infra Receives Key Bihar Project Approval from East Central Railway

HG Infra Engineering Ltd has recently received a crucial approval letter from East Central Railway (ECR) for a major railway project in Bihar. This development is expected to boost the company's growth prospects and strengthen its position in the infrastructure sector. The project involves significant infrastructure work, including the construction and enhancement of railway facilities in Bihar, a region known for its strategic importance in India?s rail network. The approval from ECR is a vital step in advancing the project, which is anticipated to contribute to improved transportation and re..

Next Story
Real Estate

Pune Railway Station to Get Heritage Redevelopment, Announces Minister

Railway Minister Ashwini Vaishnaw recently visited Pune Railway Station to announce a major redevelopment project focused on preserving and enhancing the station's heritage. The initiative aims to modernise the station while maintaining its historical charm and significance. The redevelopment project will involve extensive renovations and upgrades, including the restoration of historical architecture and the introduction of modern amenities. The plan includes enhancing passenger facilities, improving accessibility, and upgrading infrastructure to better handle the increasing passenger traffic..

Next Story
Infrastructure Energy

North Western Railway to Install 2 MW Rooftop Solar Power

The North Western Railway (NWR) is set to enhance its sustainability efforts by installing 2 megawatts (MW) of rooftop solar power across its facilities. This initiative marks a significant step in the railway's commitment to reducing its carbon footprint and embracing renewable energy sources. The project will involve the installation of solar panels on the rooftops of various railway buildings, including stations and administrative offices. By harnessing solar energy, the railway aims to offset a substantial portion of its electricity consumption, leading to both cost savings and environment..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000