Ashoka Buildcon corrects on profit booking

Ashoka Buildcon slumped 6.03% to Rs 64.65 amid profit booking after a recent steep surge.

Shares of the construction company surged 39.09% in four sessions to end at Rs 68.85 on Monday (20 April 2020) from its recent closing low of Rs 49.50 recorded on 13 April 2020.

Ashoka Buildcon after market hours on Monday (20 April) said it has commenced toll collection on the toll projects of the company and its subsidiaries. The National Highways Authority of India (NHAI) allowed resuming collection of user fee at all toll plazas on national highways/ expressway with effect from 20 April 2020 by ensuring compliance with preventive measures in terms of guidelines issued by Government of India to contain spread of COVID-19.

The company has also received permissions at various locations to resume construction activities and/or road and power projects related work and has also started operations at most of its projects.

The firm had temporarily shutdown operations from 28 March 2020 in the light of Covid-19 outbreak.

Ashoka Buildcon reported a consolidated net profit of Rs 32.41 crore in Q3 December 2019 as against a net loss of Rs 15.72 crore in Q3 December 2019. Net sales declined 6.3% YoY to Rs 1280.36 crore in the third quarter of FY20.

Ashoka Buildcon is engaged in construction & maintenance of roads and supporting services to land support-operation of toll roads.

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