MBL bags two orders worth Rs 609 crores

MBL Infrastructure bagged a new project worth Rs 609.12 crores from the Ministry of Road Transport & Highways. The company will work on rehabilitation and upgradation from Goharganj to Bhopal section of NH-12 in the state of Madhya Pradesh for Rs 583.50 crores. MBL Infrastructures’ new order falls under NHDP - III (National Highways Development Project) through the engineering, procurement & construction (EPC) basis contract. The project has been awarded to a consortium led by MBL infrastructure. The company's awarded order comes with an execution period of 24 months from the appointed date.

With this the company also bagged an order worth Rs 25.62 crores from the National Highway Authority of India in the state of Assam for the maintenance of Guwahati bypass on NH-37. The execution period of the project is 12 months.  

MBL Infrastructure is in the business of execution of civil engineering projects. The company has integrated a business model for EPC and BOT projects. It is executing several construction, O&M and BOT projects of Roads & Highways,buildings and other civil engineering projects across PAN India.

On the financial front, MBL infrastructure's new order constitutes 31.04 per cent of its Rs 1962 crore revenue base in FY15. The company's total order book stood at Rs 3724 crore as of Q2FY16. The company has a total debt of Rs 1287 crore as of Q2FY16. The company's debt to equity stood at 1.69x which is quite low and healthy as compared to debt laden industry. It also had a cash, and cash equivalent of Rs 28.77 crore as of Q2FY16.

It has diversified the order book from government agencies which includes highways,railways and buildings. MBL Infrastructures’ order book contributes to 71 per cent in the roads and highways segment. Geographically, the company's 20 per cent order book is from Madhya Pradesh, 42 per cent from North & West and the remaining 37 per cent from East.

On December 19, Union Minister Nitin Gadkari declared a package of Rs 80000 crore for various infrastructure works in Madhya Pradesh. Out of the total package, different roads measuring 3782 km will be turned into national highways with an investment of Rs 30000 crore. The entire package to the state is primarily for the conversion of state roads into national highways and for the laying of a railway line. The government's infrastructure boost cheers the sector with proposed orders.

The share price of MBL Infrastructure decreased by 1.97 per cent and is trading at Rs 218.50 on an intraday basis.