Ahluwalia Contracts Q4FY21 - Strong results; Superior fundamentals - Patience rewarded at last!
1. Topline at Rs 7.6bn (+39% yoy, +42% qoq) – significantly ahead of expectations of Rs 6.1bn.
2. EBITDA margin at 9.2% (+500bps yoy / +330bps qoq) – beating expectations of 8%. EBITDA at Rs 698mn– HUGE beat to our (Rs 527mn) and street (Rs 452mn) expectations.
3. Order inflows of Rs 21bn took order book at Rs 76bn – strong 3.8x book-to-sales.
4. Gross debt at Rs 150mn (Rs 350mn in Q3FY21). Cash reserves of Rs 4.2bn make it one of few ‘NET CASH’ companies in the sector.
5. Guidance – The Company maintained guidance of 10-15% growth in topline & 11-12% margins. Capex to be in range of Rs 250-400mn & Order inflows of Rs 25bn are expected.
6. We have upgraded our FY22/FY23 estimates (+18%/+15%) on higher topline, slightly higher margins and lower interest expense (on lower debt).
7. We also upgrade our target multiple for ACIL to 13x FY23 PE (earlier 12x). Maintain BUY with price target of Rs 450 (earlier Rs 360).