Patel Engineering surged 9.82% to Rs 15.10 after the company along with its joint venture partners (JV) has been declared as the lowest bidder (L1) for Rs 1,567 crore projects in Madhya Pradesh and Maharashtra state.
The company share in these new orders is worth Rs 1,006 crore.
These orders include construction of a pressure irrigation system to supply water through the rising/ gravity mains by pressurized pipeline system for micro irrigation under Rihand Micro Irrigation Project, State of Madhya Pradesh and investigation, design, construction, testing, commissioning of works comprising of civil and allied works under lift irrigation scheme no.1 and 2 of Krishna Marathwada Irrigation Project, Dist. Osmanabad, State Maharashtra.
The civil construction company stated that all the projects are scheduled to be completed in a period of 36 months.
The continuous order inflows shall give a visibility of growth of revenues for the coming years and shall enable the company to increase the bottom line, said the company.
Further, the firm recently received fresh funds of around Rs 90 crore under Niti Aayog guidelines against bank guarantee for an Arbitration Award. The funds received has been utilized for reduction of debt, it added.
Rupen Patel, chairman & managing director, Patel Engineering, said, Projects worth Rs 1,567 crore are a further testimony to our commitment to construction and heavy civil engineering works, as the Infrastructure sector is a key driver for the Indian economy. The projects underscores the trust and confidence reposed in us and going forward, it will spur expansion of our business as we continue to work on our strategic roadmap for the future.
He further added, Over the last two years, post pandemic the company has more than doubled its employee base to approximately 4,300 employees. In the last 3 years we have received new orders of about Rs 12,000 crore. Plans for debt reduction through monetization of non-core assets continues to be a key focus area for us. The new draft guidelines announced on Contractual Disputes in the Budget will safe guard the company's interest and efforts.
As on 31 December 2022, Patel Engineering's order book stood at Rs 16,809 crore and with the addition of these new orders which are currently L1, the order book will improve further, the company stated.
Patel Engineering 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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