Synopsis:
Afcons Infrastructure secured a ₹6,800 crore railway project in Croatia, significantly expanding its international order book and project portfolio.
A prominent infrastructure firm, recognized for executing complex construction projects globally, has secured a landmark international railway contract in Croatia. This article details the multi-crore deal’s scope and immediate market impact, including a notable stock surge following the project announcement.
Afcons Infrastructure Limited’s stock, with a market capitalisation of Rs. 15,651 crores, rose to Rs. 434.30, hitting a high of up to 3.7 percent from its previous closing price of Rs. 418.80. However, the stock over the past year has given a negative return of 10.3 percent.
Order Details
Afcons Infrastructure has been declared the lowest bidder (L1) for a railway project in Croatia by HŽ Infrastructure Ltd. The project involves reconstructing an existing line and building a second track on the Dugo Selo–Novska railway, including electrification, signalling, and telecom works. The contract is valued at EUR 677 million (around Rs. 6,800 crore) and will be executed on a BOQ/item-rate basis, with a completion timeline of 72 months.
Order Book
As of March 2025, Afcons reported a robust order book of Rs. 36,869 crore (excluding L1 orders worth Rs. 10,662 crore). During FY25 alone, the company secured fresh orders amounting to Rs. 15,960 crore, further strengthening its project pipeline.
The order book is well-diversified across segments, geographies, and client types. By segment, Urban Infra – Underground & Elevated Metro contributed the highest share at 33%, followed by Hydro & Underground with 24% and Urban Infra – Bridges & Elevated Corridor (22%). Geographically, 86% of the orders are domestic, while 14% are from overseas. In terms of clients, government projects dominate with a 79% share, while multilateral and private sector clients account for 10% and 11%, respectively.
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Q4 Financial Highlight
In Q4FY25, the company reported revenue of Rs. 3,223 crore, marginally up 0.4 percent QoQ from Rs. 3,211 crore in Q3FY25 but down 11.4 percent YoY compared to Rs. 3,636 crore in Q4FY24. Despite short-term softness, the company has maintained a 3-year sales CAGR of 4 percent, indicating modest long-term revenue growth.
Net profit for Q4FY25 came in at Rs. 111 crore, declining 23.4 percent YoY from Rs. 145 crore and 25.5 percent QoQ from Rs. 149 crore. Over a 3-year period, however, the company has delivered a profit CAGR of 11 percent and an ROE CAGR of 14 percent, reflecting consistent improvement in profitability and return ratios over the longer term.
Written By Fazal Ul Vahab C H
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