RPP Infrastructure surged 3.8 per cent owing to new order

RPP Infra Projects Ltd. (RPP Infra) on Wednesday March 16, informed stock exchanges that they bagged an order worth Rs 31 crores. The order is from Karnataka State Police Housing and Infrastructure Development Corporation. RPP Infra is engaged in business of infrastructure development such as construction of highway roads, bridges, civil construction works, irrigation and water supply projects, and power plants.

The order calls for the construction of total 160 quarters in Mangalore and Panambur in Dakshana Kannada District under Police Gruha 2020 scheme for Rs 31 crores, the company said in a press release. The said work is to be completed within 20 months. This is the second order for RPP Infra this month. On 8th March RPP Infra bagged an order of Rs 56.5 crores. Its total order book stands at around Rs 1012 crores post the current project.

Mr. Atul Sundaram-chairman and managing director of RPP Infra said- “India envisages a big growth for infrastructure in coming days as announced in union budget for rural and urban areas, the company is poised to garner a sizable growth from this by winning orders currently and few more orders going ahead. We are happy that the revenue and profit of our company will touch new heights in coming years.”

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.

On valuation front the Trailing Twelve Month (TTM) P/E of company is at 14.46 compared to industry P/E of 21.98. The stock of company is trading at Rs 109.80, an increase of 3.78 per cent from the previous close.