In view of the renewed focus on the new government on infrastructure, the sector has caught the market's eye in the hope that the infra sector will benefit from the relentless reforms drive. As a matter of fact, it is among the few infrastructure companies that have a reasonably sound balance sheet with its debt-equity ratio of 2.5 times, interest cover of 3 times, and a steady working capital cycle all offer comfort. The player has a large portfolio of completed road projects. With revenues beginning to flow in from recent projects such as Pimpalgaon-Gonde and improved contributions from its main toll roads, total toll revenues were up 14% in fiscal 2014. In the three-year period, the annualized growth in toll collections has been at an impressive 48%, as several new projects were commissioned.
It is worth mentioning here that thirty-seven% of Ashoka's Rs. 3,042cr order book comes from plain vanilla construction contracts or engineering-procurement-construction (EPC) in the power transmission and distribution sector. Orders from this segment have been strong, accounting for half the flows last fiscal. With several projects now being bid out on EPC basis and the player stands to gain as this model has shorter execution periods and working capital cycles and require lower capital investments. The infra builder currently has two large road projects under development which will be completed over the next two years. These projects are on annuity basis and have lower risk element than those on toll. The company is reasonably well-placed on the funding side, with finances tied up for all projects, claimed official sources.