Ceigall India shares surge over 5% after arm emerges as lowest (L1) bidder Indore-Ujjain highway project

Shares of Ceigall India rose as much as 5.24% to hit an intraday high of ₹248 on the National Stock Exchange (NSE) after its subsidiary emerged as the lowest (L1) bidder for a highway project. On the BSE, Ceigall India shares advanced as much as 4.88%.

Ceigall Infra Projects Private Limited, a wholly owned subsidiary of the company, emerged as the L1 bidder for construction of Indore Ujjain Green field highway project from Madhya Pradesh Road Development Corporation Limited.

The project includes construction of Indore Ujjain Green field (Access Control) 4 lane with paved shoulder project highway (length 48.10 Km.) Starting from Km. 0.000 near Pitra Parvat and terminating at Km. 48.100 (Simhastha bypass km 2.600) on Hybrid Annuity Mode (HAM).

The said order has to be completed within 24 months from the date of appointment and the bid cost is estimated at ₹1,089 crore, Ceigall India said in an exchange filing.

In a separate filing on Thursday, Ceigall India said that it received a letter of acceptance from office of executive engineer drainage cum mining and geology Ropar division WRD Punjab for Desilting of Siswan Nadi to save the abadies and land of Village Dulchi Majra to Khizarpur of Tehsil Shri Chamkaur Sahib in Punjab.

Ceigall India Q2 earnings

Ceigall India's net profit in September quarter declined 13% to ₹58 crore from ₹67 crore in the same period last year.

Its revenue from operations in July-September period rose 4.5% to ₹806.57 crore as against ₹699 crore in the tear-ago period.

The company reported weak operational performance as its EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) also known as operating profit declined 7.7% to ₹113.52 crore and its EBITDA margin contracted by 180 basis points to 14.97% in the second quarter of current financial year.

As of 2:10 pm, Ceigall India shares traded 3.93% higher at ₹244.90, outperforming the NIFty50 index which was 0.07%.