Ashoka Buildcon announces dividend post December quarter results

MUMBAI: The announcement of proposed dividend comes as a respite for investors of Ashoka Buildcon, as its stock has underperformed its peers over the last one year.

The company announced a dividend of Rs 2 per share, which was the first time since listing. A key development in this quarter was the commencement of toll in Pimpalgaon - Nasik highway project.

With this, the company now has 21 operational project out of the total 25 projects. In the quarter ending December 2012, healthy execution of its projects led to 29% growth in revenues in its EPC segment.

At present, the company's order book stands at Rs 4072 crore. This is over thrice its FY12 revenues from construction segment.

During the quarter, the company's subsidiary Ashoka Concessions received its first tranche of Rs 240 cr from SBI-Macquarie in January 2013.

In August last year, the company divested 34% stake in Ashoka Concessions, a portfolio of seven BOT projects, to SBI-Macquire for Rs 700 crore.

The equity infusion comes at a right time as many infrastructure companies are grappling for funds to complete projects.

The proceeds from the divestment will help the company in bidding for new projects. At current market price of Rs 221, the stock is trading at a Price to book value of 1.1.