GR Infraprojects emerges lowest bidder for transmission project in Karnataka

Following the announcement, shares of the company were trading lower by 0.21% at ₹1,595 per share

The company stated that the project will be on a build, own, operate, and transfer (BOOT) basis. REC Power Development and Consultancy was the bid process coordinator (BPC) and conducted an e-reverse auction for the project.

The project entails establishing a 400/220 kilovolt (kV) MVA Pooling Station near Tumkur, Karnataka. Additionally, a 400kV DC Line for Tummkur II – Tumkur (Pavagada) with two 400kV Line Bays and 2x125 MVAr 420kV bus reactors with bays at Tumkur-11 PS will be established as well.

For the quarter ended June 30, 2024, the G R Infraprojects reported a 49.32% year-on-year (YoY) decline in its net profit to ₹156 crore. The company’s consolidated total income during Q1FY25 fell by 17.93% YoY to ₹2,051 crore.

The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter were lower by 39.39% YoY at ₹368 crore. G R Infraprojects’ EBITDA margin for the quarter shrunk to 18.13% from 24.51% in the corresponding period last year. Meanwhile, the net profit margin contracted to 7.69% from 12.50% in the previous year.

At the end of Q1FY25, the company’s order book stood at ₹14,974 crore. The company had also emerged as the lowest bidder for two road projects by the Maharashtra State Road Development Corporation amounting to ₹4,346 crore.

Road projects make up 77% of the company’s order book while transmission projects only account for 2% of the company’s order book. Uttar Pradesh and Maharashtra account for 18% and 17% of the company’s projects, respectively. Meanwhile, Karnataka-based projects stand at 9%.

Shares of the company have risen by nearly 41% since the beginning of the year. The stock has gained over 18% in the past year.