Ashoka Buildcon gains after subsidiary achieves financial closure of road project

Ashoka Buildcon rose 1.26% to Rs 64.15 after the company said its wholly-owned subsidiary achieved financial closure of a road project in Telangana.

Ashoka Kandi Ramsanpalle Road, a wholly owned subsidiary of Ashoka Buildcon, is in receipt of letter from National Highways Authority of India (NHAI) dated 23 October 2020 for the approval of achievement of financial closure as on 5 October 2020 for a road project.

The project entails four laning of NH-161 from Kandi to Ramsanpalle in Telangana under Bharatmala Pariyojna on Hybrid Annuity Mode. The bid project cost is Rs 1,000 crore. The announcement was made on 24 October 2020.

On a consolidated basis, Ashoka Buildcon reported net loss of Rs 37.67 crore in Q1 June 2020 compared with net loss of Rs 23.22 crore in Q1 June 2019. Net sales declined 34.8% to Rs 761.33 crore in Q1 June 2020 over Q1 June 2019.

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

The scrip has surged 73.37% from its 52-week low of Rs 37 hit on 3 April 2020.

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