Synopsis:
DEE Development Engineers Limited secured a Letter of Intent from a leading PSU in the power sector. The order involves supplying critical piping for two major projects.
A capital goods stock saw buying interest after the company bagged a large order in the power sector. The development lifted investor sentiment, with the stock touching gaining high amid expectations of strong execution visibility in the coming quarters.
DEE Development Engineers Limited, with a market capitalization of Rs. 1,950.11 crore, opened at Rs. 271.20 against the previous close of Rs. 267.40. The stock hit an intraday high of Rs. 284, marking a gain of 6.2 percent from the last closing price.
What’s the News?
DEE Development Engineers Limited announced that it has received a Letter of Intent from a major Indian PSU in the power sector for the supply of approximately 1,900 MT of critical piping for two significant power projects. The total value of the various orders under this LOI is estimated at around Rs. 170 crore.
As per the terms, 90 percent of the payment will be released within 90 days from the date of site acknowledgment or receipt and acceptance of materials, while the remaining 10 percent will be cleared within 90 days after completion of the purchase order.
The execution timelines are staggered, with Project 1 Unit 1 scheduled for completion in 12 months, Project 1 Unit 2 in 15 months, Project 2 Unit 1 in 9 months, and pipes for FN Assembly also in 9 months from the LOI date.
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Financial Snapshot
On a quarter-on-quarter basis, the company’s revenue fell from Rs. 286 crore in Q4FY25 to Rs. 224 crore in Q1FY26, a decline of 21.7 percent. Operating profit dropped from Rs. 64 crore to Rs. 36 crore, down 43.8 percent.
Profit before tax contracted from Rs. 42 crore to Rs. 16 crore, a fall of 61.9 percent, while net profit reduced from Rs. 32 crore to Rs. 13 crore, marking a 59.4 percent decline.
On a year-on-year comparison, revenue grew from Rs. 185 crore in Q1FY25 to Rs. 224 crore in Q1FY26, an increase of 21.1 percent. Operating profit improved from Rs. 25 crore to Rs. 36 crore, higher by 44 percent. Profit before tax jumped from Rs. 4 crore to Rs. 16 crore, rising four times, while net profit surged from Rs. 3 crore to Rs. 13 crore, registering a 333 percent increase.
About the Company
DEE Development Engineers Limited is an engineering solutions provider specializing in process piping for sectors such as oil and gas, power (including nuclear), and chemicals. With over three and a half decades of experience, the company has leveraged its brand, strategically located facilities, and engineering expertise to expand across diverse industries.
Its offerings include high-pressure piping systems, spools, induction pipe bends, LSAW pipes, fittings, pressure vessels, stacks, modular skids, boiler components, and other customized manufactured products.
Written By Manan Gangwar
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