Afcons Infrastructure Secures Rs 1,084-Crore Infrastructure Project From DRDO

Afcons Infrastructure Ltd. received a Letter of Intent from Defence Research and Development Organisation—research and development arm of Ministry of Defence for infrastructure work.

The Rs 1,084.54-crore infrastructure project will be carried out on engineering, procurement, and construction basis, within a timeframe of 36 months, according to an exchange filing on Wednesday.

Earlier in December 2024, Afcons-Hindustan JV, a joint venture between Afcons Infrastructure Ltd. and Hindustan Project was announced as the lowest bidder for a Rs 503.9-crore water supply project under the Jal Jeevan Mission.

The JV secured the project from the Rajasthan Public Health Engineer Department via an e-procurement system. The project will help to serve 353 villages in Dungarpur district.

Afcons Infrastructure's net profit rose 30% to Rs 135 crore, in the second quarter of fiscal 2025, as compared to Rs 104 crore for the same period last year.

The Mumbai based infrastructure firm posted a total income of Rs 3,090 crore in July-September quarter, against Rs 3,434 crore in the same term last year.

The company's earnings before interest, tax, depreciation and amortisation were up 8.5% for Rs 427 crore for the three months ended Sept. 30, 2024, as against Rs 394 crore for the same quarter in the previous financial year.

Margins for the quarter expanded to 13.8% in the second quarter, as against 11.5% for the year ago period.

Shares of Afcons Infrastructure closed 0.21% higher at Rs 527.90 apiece on the National Stock Exchange, compared to a 0.08% fall in the benchmark Nifty. The share price has risen 11.32% in the last 12 months.

Of the two analysts tracking the company, both have a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 18.4%.