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HBL Power Systems surges on bagging orders worth more than Rs 600 crore

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Capital Market
Last Updated : Sep 02 2022 | 4:16 PM IST

HBL Power Systems zoomed 10.07% to Rs 88 after the company bagged multiple orders from various divisions of the Indian Railways.

The company, as the lead member of a consortium with Siemens, has signed the first contract under Mission Raftar Project with Eastern Railway for deployment of 'Kavach' [train collision avoidance system (TCAS)] over 260 kms of track and 120 locomotives, from Howrah to Pradhankhanta.

The contract price is Rs 286.69 crore, including taxes, of which HBL's work share is Rs 205.88 crore; the contract is scheduled to be completed in 700 days.

Further, the company said that the Integral Coach Factory (ICF) is manufacturing the Vande Bharat trainsets, designed to run at 160 kmph. HBL received a purchase order from ICF for the supply of 46 sets of Kavach, to be installed at the time of manufacture of the trainsets, at a total price of Rs 31.66 crore.

The deliveries will begin in November 2022 and are scheduled to be completed by July 2023.

It further informed that HBL, as the lead member of a consortium with Shivakriti International, is also declared as the lowest bidder in two other tenders in West Central Railway and Western Railway, on the Delhi-Mumbai route.

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The tender in West Central Railway is for deployment of Kavach over 549 kms of track and 87 locomotives, for a bid price of Rs 353.84 crore. The tender in Western Railway is for deployment of Kavach over 96 kms of track, for a bid price of Rs 81.67 crore.

"The contracts for these tenders are expected to be awarded shortly, the company said in a statement.

HBL Power Systems (HBL) specializes in developing and manufacturing products and solutions for telecom, industrial, railways and defence applications. The company has seven fully integrated facilities manufacture batteries, electronics and engineered products based on in-house developed technologies. In addition to catering to niche sectors namely telecom, UPS, solar, defence and railways in India, HBL's products are marketed across the globe spanning 80+ countries.

The company's consolidated net profit declined 3.05% to Rs 20.03 crore despite a 38.69% rise in sales to Rs 319.70 crore in Q1 FY23 over Q1 FY22.

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First Published: Sep 02 2022 | 3:22 PM IST

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