Kalpataru Power Transmission on Tuesday (8 December 2020) said its board approved capital expenditure towards construction of corporate office of the company.
The board of directors of the company has approved capital expenditure of approximately Rs 207 crore towards purchase of land and will further incur approximately Rs 170 crore towards construction, municipal charges, taxes and for other approvals for development & construction of corporate office of about 1,79,000 square feet of leasable area near its existing office at Santacruz, Mumbai. The total cost per square feet would be in the range of approximately Rs 21,000. The company is expecting to complete the construction within a period of 24-30 months.The plan is aimed at meeting long term space requirement of the company to accommodate its growth plans and to consolidate businesses of the company and its subsidiaries' at a single location. The construction of corporate office will help the company to reduce rental costs, bring better efficiency and synergy of working together at a single location.
The company said it had appointed independent international real estate consultants, valuation agencies and legal advisors to assist in identification and evaluation of various options.
Kalapataru Power Transmission is one of the largest specialized EPC companies in India engaged in power transmission & distribution. On a consolidated basis, the company's net profit rose 1.5% to Rs 139 crore on a 5.7% decline in net sales to Rs 3,032 crore in Q2 September 2020 over Q2 September 2019.
The scrip was down 5.08% at Rs 337.05 amid profit selling. The stock advanced 11.11% in the past four sessions to end at Rs 355.10 on Tuesday (8 December 2020) from its recent closing low of Rs 319.60 on 2 December 2020.
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