RPP Infrastructure surged 2.7 per cent owing to news of 2 new orders

RPP Infra projects (RPP Infra) on Thursday February 18, informed stock exchanges that they bagged 2 orders worth Rs 59 crores. The order is from state-owned company Engineering Projects India Ltd. It is a government of India enterprise. RPP Infra is engaged in business of infrastructure development such as highway roads, bridges, civil construction works, irrigation and water supply projects, and power plants.

The first order is for the construction of combined administration blocks, quarter guards, master stores and men's barracks among others for proposed ITBP Complex at Kalikiri, Chittoor, Andhra Pradesh worth Rs 34.2 crore, the company said in a press release. The second order is for construction of various types of quarters and boundary walls, entrance gateways, guard rooms and sentry posts for the aforesaid complex, amounting to Rs 24.3 crore, the release added.

On the financial front, RPP Infra's total revenue from operations increased by 10.67 per cent to Rs 266 crores in FY15 from Rs 240 crores in FY14. The EBITDA stands at Rs 35.08 crores, a decrease of 2.03 per cent from the previous year. The net profit stands at Rs 16.58 crores, an increase of 21.91 per cent from the previous year. The company has total debt of Rs 85.49 crore as of FY15. The debt burden is 20.46 per cent of total assets of the company.

The company's new order constitutes 22.18 per cent of its Rs 266 crores revenue base in FY15. This is the second order for RPP this month. On 5 th February RPP bagged an order of Rs 112 crores. Its total order book stands at around Rs 925 crores post the current project.

On valuation front the trailing twelve month P/E of company is at 13.86 compared to industry P/E of 20.80. The share price of RPP Infra surged by 2.77 per cent to Rs 111.40 on Thursday after the news of 2 new orders came in.