Rs 62.94 Crore Order Book Update: Infra Company Secures EPC Contract from NHAI
The project involves the construction of three vehicle underpasses along with approach and service roads on the NH-16 stretch in Odisha.
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Shares of A B Infrabuild Limited are in focus after the company announced that it has secured a new infrastructure project from the National Highways Authority of India (NHAI). The company received a Letter of Acceptance (LoA) for the project, and the development was disclosed to the stock exchanges through a regulatory filing. The project adds to the company’s order pipeline and strengthens its presence in the road infrastructure segment.
Order Details
According to the filing, the company has been awarded a contract worth Rs 62.94 crore for the Construction of three Vehicle Underpasses (VUPs) at Km 430+380 on the Puintola to Ichhapuram section of NH-16 in Odisha. The project includes the construction of approach roads and service roads near College Square and DRDA Square.
The project has been awarded under the Engineering, Procurement, and Construction (EPC) model, under which the company shall be responsible for executing the construction work. As per the disclosure, the execution of the project shall take 18 months.
Impact on the Company
The new order is also expected to improve the company’s Order Book and increase the visibility of the revenues for the coming quarters. The projects received from the government departments, such as the National Highways Authority of India, also reflect the presence of the company in the infrastructure business. The execution of the project will also contribute positively to the future revenues of the company.
About the Company
A B Infrabuild Limited is an infrastructure and construction company involved in the execution of civil engineering and EPC (Engineering, Procurement, and Construction) contracts in India. The company mainly undertakes road construction, highway works, and urban infrastructure projects for various government departments and public sector undertakings.
A B Infrabuild Limited has a market capitalisation of around Rs 1,129 crore. The company has shown good profitability growth, with its profit growing at a compound rate of around 40 percent over the past five years. Over the past five years, the company has shown a revenue growth rate of around 27 percent compound annually. The stock has touched a 52-week high of Rs 23.56 and a 52-week low of Rs 7.02, resulting in the range in which it has traded over the past year.
Disclaimer: The article is for informational purposes only and not investment advice.