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Nelco hits the roof on turnaround Q3 results

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Capital Market
Last Updated : Jul 31 2014 | 11:37 PM IST

Nelco was locked at 5% upper circuit at Rs 60.05 at 13:41 IST on BSE after the company reported turnaround Q3 result after market hours on Wednesday, 30 July 2014.

Meanwhile, the S&P BSE Sensex was down 66.94 points or 0.26% at 26,020.48

On BSE, so far 11,120 shares were traded in the counter with pending buy orders of 26,075 at upper circuit. The stock has an average daily volume of 26,194 shares in the past one quarter.

The stock opened with an upward gap, surging by the maximum 5% daily circuit and remained locked at the 5% level at Rs 60.05 so far in the day. The stock had hit a 52-week high of Rs 69 on 8 July 2014. The stock had hit a 52-week low of Rs 27.50 on 31 July 2013.

The stock had underperformed the market over the past one month till 30 July 2014, falling 4.98% compared with 2.65% rise in the Sensex. The scrip, however, outperformed the market in past one quarter, surging 35.22% as against Sensex's 16.37% rise.

The small-cap company has equity capital of Rs 22.82 crore. Face value per share is Rs 10.

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Nelco reported consolidated net profit of Rs 7.83 crore in Q3 June 2014 as compared to net loss of Rs 2.73 crore in Q3 June 2013. Net sales fell 21.7% to Rs 28.67 crore in Q3 June 2014 over Q3 June 2013. The Q3 June 2014 net profit was boosted by an exceptional item of Rs 12.41 crore.

In the year 2006, Nelco had filed arbitration proceedings against Jawaharlal Nehru Port Trust (JNPT) for enforcement of its claim in respect of the additional work carried out, wrongful deduction of liquidated damages and encashment of bank guarantee by JNPT. The Arbitration award was passed in favour of the company on 6 February 2012. The said award, however, was challenged by JNPT in the Hon'ble Bombay High Court which dismissed the plea on 6 February 2014 and awarded the claim to the company. Subsequently, JNPT had in June 2014 paid Rs 13.03 crore as decretal dues (including interest and costs) to the company (of which Rs 0.62 crore is included in other income as provision no longer required written back).

Nelco offers solutions in the areas of integrated security & surveillance, VSAT connectivity (Tatanet VSAT), managed services, satcom projects and meteorological solutions. The company offers a range of innovative and customized solutions for businesses and government institutions under one roof.

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First Published: Jul 31 2014 | 1:49 PM IST

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