Afcons Infra Targets ₹25,000 Crore Order Intake for FY25.

Afcons Infrastructure has surpassed its initial FY25 order intake target of ₹20,000 crore, achieving this milestone early in the fiscal year. With additional projects where it is the lowest bidder, the company expects to book at least ₹5,000 crore more by the end of the fiscal year, according to Managing Director Paramasivan Srinivasan. Speaking during the company’s first quarterly results call post-IPO, Srinivasan highlighted that this achievement ensures revenue visibility for FY26 and beyond.

As of the September quarter, Afcons Infra reported an outstanding order book of ₹34,152 crore, excluding ₹10,154 crore worth of projects where it is the lowest bidder. Known for taking on complex projects with limited competition, the company maintains a strategy of holding projects sufficient for two years of revenue visibility.

The company’s bidding pipeline stands at ₹3.2 lakh crore, with urban infrastructure projects like metros and bridges accounting for ₹1 lakh crore, surface transport contributing ₹60,000 crore, and marine and hydro projects adding ₹50,000-55,000 crore each.

Afcons Infra posted a net profit of ₹135 crore in Q2 FY25, a 30% year-on-year increase, despite a 10% drop in revenue to ₹3,090 crore. The decline was attributed to muted order book growth over the last two years, partly due to bank guarantee constraints. Delayed bill payments, linked to the General Elections in May, and severe monsoon disruptions further impacted the company’s performance.

Looking ahead, company officials anticipate a stronger second half, projecting flat revenue growth for FY25 and a robust 20-25% increase in FY26.

Srinivasan also noted the company’s cautious approach to hydrocarbon projects, citing losses incurred by peers in the oil and gas sector due to unfavorable contracting methodologies. The company’s exposure to oil and gas projects is limited to 5% of its order book, with underground and elevated metro projects making up the largest share at 38%.

HBL