RBM Infracon hits upper circuit after winning order worth ₹3,498 crore from ONGC

RBM Infracon’s shares were locked in a 5% upper-circuit at ₹800.50 per share after the company announced that it had received a service order from Oil and Natural Gas Corporation (ONGC) worth ₹3,498 crore. The company reported that the service order includes ₹3,371 crore for crude and ₹127 crore for gas at Nandej.

The company reported that the contract has a validity of 15 years or 180 months from the effective date.

Additionally, the company also reported that it received an order worth ₹69 lakh for repairs and maintenance at Redi Port, in Sindhudurg, Maharashtra.

For the quarter ended June 30, 2024, RBM Infracon reported a 248.86% year-on-year (YoY) surge in net profit to ₹3.29 crore. The company’s total income for the quarter jumped 98.17% YoY to ₹38.86 crore.

The earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter skyrocketed 237.05% YoY to ₹4.79 crore. The EBITDA margin in Q1FY25 came in at 12.31% compared to 7.24% in the corresponding period last year. Meanwhile, the net profit margin expanded to 8.46% from 4.81% in the same quarter last year.

The company’s earnings per share (EPS) grew by 187.50% YoY to ₹3.22.

At the end of 31 July 2024, the company’s top 5 ongoing projects had a value of ₹1,253 crore. From the ongoing projects, the company had booked revenue of ₹72.39 crore while ₹1,181.07 crore remained unbooked.

Jay Bajrang Mani, chairman and managing director of RBM InfracoN stated that the company’s quarterly results were pushed higher due to strong demand and efficient project execution. The company expects growth to be sustained in the future on the back of positive industry trends and a strong order book. “Looking ahead, we are well-positioned for continued success. Our robust order book, strategic initiatives, and positive industry trends provide a strong foundation for sustained growth,” he said.

Shares of the company have risen by nearly 72% since the beginning of the year. The stock has gained over 621.50% in the past year.