Power Mech Projects gains over 3% on ₹396 crore order from Indian Railways
Upstox
2 min read • Updated: February 27, 2024, 2:06 PM
Summary
Last month, the company secured a ₹381.34 crore order from the Rail Vikas Nigam Limited (RVNL) and another ₹263.57 crore from the Neyveli Uttar Pradesh Power Limited.
Power Mech projects share price gained more than 3% on Tuesday after the company announced receiving an order worth ₹396.25 crore from Indian Railways.
The order pertains to the construction of electrified 4th railway BG line between Dadhapara- SelahaDagori and Nipania- Bhatapara-Hathbandh stations in Chhattisgarh. The order has been received on an engineering, procurement and construction basis from the South East Central Railway, the company informed the stock exchanges in a filing.
The order is scheduled to be executed in 30 months.
After the announcement, Power Mech Projects share price increased as much as 3.66% to an intraday high of ₹5,398 apiece on NSE. Power Mech Projects’ shares have gained over 158% in the last one year and 31% in the past three months.
Last month, the company secured a ₹381.34 crore order from the Rail Vikas Nigam Limited (RVNL) and another ₹263.57 crore from the Neyveli Uttar Pradesh Power Limited.
The contract from RVNL involved various construction works for Yavatmal Nanded new BG Line from KM 207 to KM 253 of Central Railway in Maharashtra. The order is scheduled to be delivered over 36 months.
The NUPPL order pertained to comprehensive operation and maintenance (O&M) service of the 3x660 MW Ghatampur Thermal Power Project in Kanpur, Uttar Pradesh. This order is scheduled to be completed in 3 years.
Power Mech Projects reported strong growth in its financial performance during the third quarter of the current financial year.
On a consolidated basis, the firm's net sales jumped over 21.82% to ₹1,107.5 crore in Q3FY24 from ₹909.11 crore in the year-ago period. Power Mech Projects’ net profit for the December 2023 quarter increased over 21.53% to ₹61.52 crore from ₹50.62 crore in the corresponding period a year ago.
Its EBITDA (earnings before interest, tax, depreciation and amortisation) stood at ₹141.30 crore in Q3FY24, up 33.77% from ₹105.63 crore in the year-ago period.
Power Mech Projects shares were trading 0.43% higher at ₹5,230 apiece on NSE at 2:00 pm.