Ashoka Buildcon Limited witnessed a sharp decline of over 2% in its share price following the release of its Q3 FY2025 earnings. As of 11:57 AM, the shares were trading 2.06% lower at Rs 232.55.
Despite reporting a remarkable 570% surge in net profit, the stock faced selling pressure as investors reacted to the drop in total income.
For the quarter ended December 31, 2024, Ashoka Buildcon posted a net profit of ₹661.49 crore, a substantial rise from ₹98.76 crore in the same period last year. This impressive growth was fueled by strong operational efficiencies and cost-cutting measures. The company’s EBITDA increased by 7% YoY to ₹638.86 crore, with EBITDA margins improving significantly to 26.8% from 22.5% last year.
However, the company’s total income saw a decline of 10.1% YoY, coming in at ₹2,426.36 crore compared to ₹2,698.94 crore in the previous year’s quarter.
Despite the revenue dip, Ashoka Buildcon managed to control expenses, which fell to ₹2,119.79 crore from ₹2,500.47 crore YoY. A notable factor contributing to the bottom-line boost was a negative tax expense of ₹354.84 crore due to deferred tax benefits, further strengthening its financial position.
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