Patel Engineering (PEL) jumped 2.62 % to Rs 14.86 after the company along with joint venture partner were declared as lowest bidder (L-1) for two micro irrigation projects worth Rs 1,265 crore in Madhya Pradesh and Karnataka.
Water Resources Department, Government of Madhya Pradesh and Visvesvaraya Jala Nigam (VJNL) respectively have declared Patel Engineering ("PEL") as L1 for a Rs 998.75 crore contract for the works including survey, investigation, designing, and construction of SHER Dams (4 No. of Dams) with all ancillary works including rising / gravity main and pipe distribution network works in Madhya Pradesh ("Sher Irrigation Project") and a Rs 266.38 crore contract for the works including survey, design, supply, installation, testing and commissioning of micro irrigation system under Tumkur Branch Canal Package - III in Karnataka (Tumkur Branch Canal project). The company's share in these orders is Rs 485 crore.The works for Sher Irrigation Project are scheduled to be completed in a period of 60 months and further includes Management, Operation and Maintenance (MOM) for a period of 60 months after completion. The said project is to executed in a joint venture, of which PEL's share is 35%.
Similarly, works for Tumkur Branch Canal project are scheduled to be completed in 24 months post which the Company will undertake Operations and Maintenance works for a further period of 60 months. The said project is to executed in a joint venture, of which PEL's share is 51%.
Rupen Patel, chairman and managing director, Patel Engineering, said, In the recent past, we are declared L1 for four other irrigation projects located in Maharashtra, Madhya Pradesh and Karnataka. Further these two new projects will help strategically deploy and utilise resources more efficiently. With these two new L1 projects, our share of order wins including L1 in this financial year is around 5,900 crore.
Patel Engineering is a construction company specializing in the hydro power generation and irrigation segments. it is engaged in the construction of dams, bridges, tunnels, roads, piling works, industrial structures and other kinds of heavy civil engineering works and have executed a variety of infrastructure projects in the hydro power, irrigation and water supply, urban infrastructure and transportation segments primarily as civil contractors.
The company's consolidated net profit rose 13.5% to Rs 31.19 crore on 18.1% increase in net sales to Rs 1,036.98 crore in Q3 FY23 over Q3 FY22.
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