Afcons Infrastructure Ltd5442805:53 pm IST
Afcons Infrastructure Q1 FY27: revenue down y/y; healthy order book; guidance intact for ₹30,000 crore inflows
Financial Performance
- Q1 FY27 total income ₹2,727 crore, down from ₹3,419 crore in Q1 FY26.
- EBITDA ₹263 crore, margin 9.6% for the quarter.
- PAT ₹30 crore; PBT ₹51 crore; weaker due to lower turnover.
- ₹57 crore other operating income included; TBM depreciation largely absent this quarter.
- End-Q1 order book ₹43,290 crore; Q1 inflows ₹13,219 crore.
- FY27 YTD orders booked ₹15,695 crore; pending book over ₹45,000 crore.
- Overseas revenue share was 16% in Q1; domestic 84%.
- Capex in Q1 ₹150 crore; FY27 capex guidance ₹700–800 crore; FY28 ₹600–650 crore.
- Net debt to equity around 0.68x; debt-related pressures influenced by capex funding.
Operating Update
- Mumbai-Ahmedabad HSR TBM drives commenced; main tunneling to start in coming months.
- Croatia railway is the largest single order; Vadhvan port breakwater opportunity.
- Overseas projects tend to yield higher margins; delta of 200–300 bps vs domestic.
- Bid pipeline remains robust: ₹1.5 lakh crores for 9 months; ₹3.96 lakh crores long-term.
- Geopolitical uncertainty weighing award activity; momentum expected as uncertainties ease.
Balance Sheet and Cash Flow
- Net working capital elevated due to project funding and certification delays.
- Cash flow from operations negative in Q1, typical due to March-year-end payments.
- Capex payments contributed to higher debt in the quarter.
- Tax rate elevated due to JV and overseas entity contributions.
- Collections and stuck receivables expected to improve gradually through year.
Projects and Capex
- Q1 capex about ₹150 crore; CWIP around ₹900 crore.
- TBM depreciation expected to rise in H2 as TBMs capitalize.
- Croatia turnover expected to be minuscule this year; Vadhvan geotech/design work this year.
- Strategic equipment base around ₹4,300 crores; selective, high-utilization investments.
Guidance and Q&A
- FY27 full-year order inflow guidance ₹30,000 crore; execution ramp expected in H2.
- Pipeline supports steady growth; Q&A indicates ramp in Q3/Q4 and FY28 strength.
- Overseas revenue target around 30% again as order book diversifies.
- Net debt target discussed: around ₹2,700–₹2,800 crores; capex pacing outlined.
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