Patel Engineering Shares Surge Over 16% On Rs 798-Crore Order Win

Patel Engineering’s share price surged over 16% on Thursday after the company announced receiving two Letters of Intent from Saidax Engineers and Infrastructure.

The orders cover excavation, composite work, overburden removal with rehandling, coal cutting using surface miners, loading and transportation of coal, along with hiring all necessary plant and equipment, supplying the required diesel, and complete maintenance of equipment, including staff and labor for execution. The total value of these contracts is Rs 798.19 crore, according to the company’s filing.

The duration of these projects is nine years. Patel Engineering clarified that neither the promoters nor promoter group companies have any interest in the awarding entity, and the orders do not qualify as related-party transactions.

Managing Director Kavita Shirvaikar commented, “These new projects are a natural extension of the large-scale infrastructure works we undertake and open up new avenues. Importantly, they come alongside a robust tender pipeline of over Rs 34,000 crore already bid and under evaluation, with additional opportunities worth Rs 18,000 crore expected for bidding before the end of this financial year.”

For the September quarter, the company reported consolidated revenue from operations of Rs 1,208 crore, up 2.91% year-on-year from Rs 1,174 crore in the corresponding quarter of the last fiscal. However, consolidated operating Ebitda declined slightly by 2% annually to Rs 159 crore from Rs 162 crore in the previous year.

As a result, the operating Ebitda margin fell to 13.31% from 13.81%, while net profit dropped to Rs 77 crore compared to Rs 80.7 crore a year earlier.

The scrip rose as much as 16.37% to Rs 38.60 apiece, paring gains to trade 13.66% higher at Rs 37.70 apiece, as of 12:04 p.m. This compares to a 0.15% advance in the NSE Nifty 50 Index.

It has fallen 27.42% on a year-to-date basis and 28.78% in the last 12 months. The relative strength index was at 55.69.