Salasar Techno Engineering rallied 3.95% to Rs 22.36 after the company has received Letter of Intent (LoI) for acquisition of EMC for Rs 178 crore.
EMC has grown into a major EPC firm with a history of successfully delivering substantial projects. Since the 1970s, the company has exported galvanized steel towers, conductors, & hardware and of late has diversified its presence by taking up EPC projects in power transmission and substation sectors. Its turnover was Rs 707.03 crore in FY23.The acquisition will strengthen the company's foothold in the EPC sector, particularly in the power transmission and substation segments, thereby expanding its market reach. With EMC's expertise in turnkey projects, the EPC firm can offer a broader range of services to its clients, catering to their evolving needs comprehensively. The synergies between the company and EMC will lead to operational efficiencies, cost optimization, and streamlined processes, enhancing overall productivity and profitability.
The management team of Salasar said: "We are pleased to announce that we have received an LOI for the acquisition of EMC for Rs 178 crore, a strategic move that will strengthen our presence and position in the EPC industry, underscoring our commitment to growth and innovation.
Through this acquisition, we aim to capitalize on the synergies between the two companies and leverage EMC's expertise to enhance our service offerings. The addition of EMCs capabilities will position us as a qualified bidder for executing 765 kV transmission line, substations, and industrial power system projects- a healthy margin business segment with limited competitors. This strategic move enables us to meet the evolving needs of our clients more comprehensively and deliver unparalleled value in the power transmission and substation sectors."
Salasar Techno Engineering is a provider of customized steel fabrication and infrastructure solutions in India. It provides 360-degree solutions by carrying out engineering, designing, fabrication, galvanization and deployment.
The company's consolidated net profit jumped 56.20% to Rs 16.76 crore on a 26.20% increase in sales to Rs 303.88 crore in Q3 FY24 over Q3 FY23.
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