During Thursday’s trading session, shares of this micro-cap company involved in executing civil engineering infrastructure projects surged nearly 3.4 percent on BSE, after the court orders PWD Uttarakhand to pay the arbitration award of Rs. 172.4 million.
With a market cap of Rs. 513.6 crores, at 11:54 a.m., the shares of MBL Infrastructure Limited were trading in the green at Rs. 41.92 on BSE, up by nearly 0.4 percent, as against its previous closing price of Rs. 41.77. The stock has delivered positive returns of more than 3 percent in one year, and has gained by around 4.4 percent in the last one month.
What’s the News
As per the latest regulatory filings with the stock exchanges, the Commercial Court in Dehradun, Uttarakhand, has passed an order directing the Public Works Department (PWD), Government of Uttarakhand, to pay to the company the amount specified in the Arbitration Award dated 23rd March 2024. The payment is regarding a completed road project under “Improvement/Strengthening of State Roads, Contract Package No. 5”.
The Learned Arbitral Tribunal had unanimously passed the award on 23rd March 2024, in favour of the company against PWD, Uttarakhand. The award includes a sum of Rs 17.24 crores (including interest up to the date of the award), along with future interest at the rate of 12 percent per annum from the date of the award until the actual date of payment. Additionally, a declaratory award regarding applicable GST was also granted.
MBL Infrastructure reported a growth in revenue from operations, experiencing a year-on-year rise of nearly 29 percent, from Rs. 24 crores in Q4 FY24 to Rs. 31 crores in Q4 FY25. In contrast, its net loss increased during the same period from a loss of Rs. 11 crores to Rs. 47 crores, representing a decline of nearly 327 percent YoY.
MBL Infrastructure Limited provides integrated engineering, procurement and construction (EPC) services for civil construction and other infrastructure projects. It is engaged in the execution of civil engineering projects in various business segments namely: Highways (EPC), Build-Operate-Transfer (BOT) and Operation & Maintenance (O&M), building, housing and urban infrastructure, railways/ metro and other infrastructure.
Written by Shivani Singh
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