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MBL Infrastructures spurts after securing highway contract

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Capital Market
Last Updated : Jun 27 2016 | 3:01 PM IST

MBL Infrastructures jumped 7.03% to Rs 117.25 at 14:20 IST on BSE after the company was awarded a highway project worth Rs 779 crore on from National Highways Authority of India.

The announcement was made during market hours today, 27 June 2016.

Meanwhile, the BSE Sensex was down 20.36 points, or 0.08%, to 26,377.35

On BSE, so far 1.24 lakh shares were traded in the counter, compared with an average volume of 41,571 shares in the past one quarter. The stock hit a high of Rs 118.05 and a low of Rs 109.10 so far during the day. The stock hit a 52-week high of Rs 299.50 on 24 July 2015. The stock hit a 52-week low of Rs 104.25 on 24 June 2016. The stock had underperformed the market over the past 30 days till 24 June 2016, falling 14.95% compared with 0.12% rise in the Sensex. The scrip also underperformed the market in past one quarter, sliding 31.53% as against Sensex's 4.18% rise.

The small-cap company has an equity capital of Rs 41.45 crore. Face value per share is Rs 10.

MBL Infrastructures said that the company has been awarded project worth Rs 779 crore on design-build-finance-operate-transfer (DBFOT) hybrid annuity basis by National Highways Authority of India (NHAI). The projects is for six laning of greenfield proposed Udaipur bypass road in Rajasthan. During construction, 40% of the bid project cost amounting to Rs 311.60 crore will be funded by NHAI and the balance 60% amounting to Rs 467.40 crore will be arranged by the concessionaire. During the operation period, NHAI will pay concessionaire this 60% (adjusted for inflation during construction period) in semi-annual payments along with interest thereon at bank rate plus 3% and also semi-annual payments for operations and maintenance totaling Rs 63.75 crore for project (which will be further adjusted for inflation). The projects will be operational within 15 years commencing from commercial operation date (COD), MBL Infrastructures said.

On a consolidated basis, MBL Infrastructures' net profit rose 5.28% to Rs 14.76 crore on 12.58% rise in net sales to Rs 625.16 crore in Q4 March 2016 over Q4 March 2015.

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MBL Infrastructures is engaged in execution of civil engineering projects with specialisation in roads & highways. The company has a rich experience in road building and maintenance. The company has an integrated business model for engineering, procurement and construction (EPC) and BOT (build-operate-transfer) projects.

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First Published: Jun 27 2016 | 2:34 PM IST

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