Ahluwalia Contracts' Shares Tumble After Q1 Profit Dips

Shares of Ahluwalia Contracts (India) Ltd. were down almost 10% on Wednesday after the company's net profit fell in the first quarter of fiscal 2025.

Net profit fell 38.4% year-on-year to Rs 30.56 crore for the quarter ended June 30, 2024, compared to Rs 49.70 crore in the same period a year ago. Company's net sales rose 20.4% to Rs 9.19 crore during the period as against Rs 7.63 crore in first quarter of fiscal 2024.

The company's revenue from operations stood at Rs 919 crore, which was up 20% year-on-year. But, Ebitda margins at 6.6% was down 420 bps year-on-year, owing to higher operating expenses. Ebitda at Rs 60 crore was down 72% year-on-year. Profit after tax was also down 62% year-on-year to Rs 30.59 crore.

Shares of the company fell as much as 9.99%, before paring loss to trade 7.88% lower at Rs 1,224.10 apiece, as of 11:07 a.m., compared to a 0.24% advance in the NSE Nifty 50.

The stock has risen 67.24% in the last 12 months and 57.81% year-to-date. Total traded volume so far in the day stood at 1.8 times its 30-day average. The relative strength index was at 35.69.

Out of 13 analysts tracking the company, six maintain a 'buy' rating, two recommend a 'hold' and five suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies a downside of 0.3%.