AHLUWALIA CONT IND LTD

During the 1QFY27 earnings conference call, management of Ahluwalia Contracts (India) Limited reported a turnover of INR1,125.81 crores and a profit after tax (PAT) of INR11.42 crores, reflecting a 12.03% increase in turnover but a 77.65% decrease in PAT compared to 1QFY26. The earnings per share (EPS) dropped to INR1.70 from INR7.63. Management attributed the decline in EBITDA margin to several factors, including a finalized bill dispute for the AIIMS Jammu project, increased labor costs due to a 35%-40% rise in minimum wages, and disruptions from state elections affecting project execution. The net order book stood at INR20,663.52 crores, with total order inflow for FY27 reported at INR512.81 crores. Management expressed a goal of achieving a top-line growth of 12%-15% for the year, while acknowledging challenges in margin recovery due to external factors like labor shortages and regulatory impacts.

Management highlighted both growth in turnover and significant challenges impacting profitability.