NESCO Wins Bid For Wayside Amenities Project On Hyderabad-Visakhapatnam Expressway
The Hyderabad-Visakhapatnam Expressway project by NESCO includes four sites with a 30-year lease, targeting an annual revenue of Rs 300 crore from the fourth year of operations.
NESCO Ltd. has been declared as the highest bidder for a project by the National Highways Logistics Management Ltd.—a special purpose vehicle of the National Highways Authority of India.
The project includes the development, operations, and maintenance of wayside amenities on the Hyderabad Visakhapatnam Expressway in the Khammam Devarapalle section, according to an exchange on Thursday.
The constructed amenities will be put out on lease for a period of 30 years, which includes four sites, and the project is expected to be completed within 10 months from the appointed date.
The company will infuse Rs 50 crore for the development of the wayside amenities for each of the four sites, the filings said.
The expected annual revenue from the four sites is around Rs 300 crores starting from the 4th year of operations. Additionally, the yearly lease rent for the four sites is Rs 4.29 crore, with an annual increase based on changes in the wholesale price index and consumer price index.
NESCO reported a profit of Rs 107 crore, indicating a 21.7% surge in the second quarter of fiscal 2025 as compared to Rs 87.8 crore in the same period last year.
The company's revenue rose to Rs 192 crore, denoting a 9.9% rise for the July-September period of the current fiscal as against Rs 175 crore for the year-ago period.
NESCO share price closed 0.82% lower at Rs 1,018.60 apiece on the National Stock Exchange, compared to a 0.38% fall in the benchmark Nifty 50. The stock has risen 23.50% in the last 12 months and 15.4% on a year-to-date basis.
The one analyst tracking the company recommended a 'buy' rating, according to Bloomberg data. The average of 12-month analysts' price targets implies a potential downside of 3.4%.
