Afcons Infrastructure sets new record with Rs 34,152cr order book and strong H1 FY25 performance

Afcons Infrastructure Limited, a leading name in India’s infrastructure sector, has once again demonstrated its resilience and strategic prowess. For the quarter and half-year ending 30 September 2024, the company reported its highest-ever quarterly EBITDA margin and showcased a substantial order book, signalling robust growth amid challenging market conditions.

In Q2 FY25, the company recorded a total income of ₹3,090 crore, reflecting a 10% decline compared to the ₹3,434 crore achieved in Q2 FY24. However, profitability surged, with EBITDA reaching ₹427 crore, an 8.5% increase year-on-year, and an industry-leading EBITDA margin of 13.8%. Profit after tax (PAT) also saw impressive growth, climbing 30% year-on-year to ₹135 crore.

Afcons’ diversified order book stood at a record ₹34,152 crore, excluding additional projects worth ₹10,154 crore where it emerged as the lowest bidder (L1). This portfolio spans urban infrastructure, hydro and underground projects, marine and industrial ventures, and oil and gas developments. Executive Vice Chairman Subramanian Krishnamurthy stated that this strong pipeline underscores the company’s ability to secure high-value projects while maintaining a focus on sustainable profitability.

The first half of FY25 reflected similar momentum. While total income for H1 FY25 dipped slightly to ₹6,303 crore from ₹6,655 crore in H1 FY24, EBITDA for the period rose to ₹799 crore, a 12.8% increase. PAT for the half-year stood at ₹227 crore, marking a 16.3% year-on-year increase. Krishnamurthy attributed these gains to disciplined financial management, strategic investments, and a focus on operational efficiency.

Afcons utilised ₹600 crore from its IPO proceeds to reduce debt, bringing net debt to ₹2,640 crore as of September 2024, down significantly from the close of FY24. A further ₹320 crore was allocated for working capital, reflecting the company’s commitment to financial prudence and liquidity enhancement.

Afcons has built a legacy of over 60 years, delivering transformative infrastructure projects in India and across 17 countries. Its recent successes include the completion of high-value projects in metro rail, bridges, and surface transport systems. Krishnamurthy emphasised that Afcons remains dedicated to contributing to national development while strengthening its global footprint.

The company’s consistent focus on innovation and quality execution has positioned it as a trusted partner for infrastructure development. With a strong order book and a clear growth trajectory, Afcons is poised to drive long-term value creation for stakeholders.

The growth trajectory of Afcons Infrastructure reflects a strategic focus on operational efficiency and prudent financial management, aligning with industry expectations for long-term sustainability. Analysts note that the company’s diversification across sectors and its ability to maintain profitability despite external challenges position it as a market leader in infrastructure development.