The shares of the leading Engineering, Procurement, and Construction (EPC) firm gained 4.5 percent to ₹1,043.25 per share on Tuesday after the company received a work order from Saudi Arabia’s leading energy firm, Aramco.
At 12:55 p.m., the shares of Kalpataru Projects International Ltd. were trading at ₹1,005 a share, up 0.67 percent on the National Stock Exchange, The company has a market value of ₹16,241 crore.
Kalpataru Projects received a Letter of Intent (LoI) from Saudi Arabia’s energy major, Aramco, for carrying out EPC work for three packages of the third expansion phase of the Master Gas System Network (MGS‐3) in Saudi Arabia.
The EPC scope encompasses the installation of more than 800 km of lateral gas pipelines. The specific contract value for the three packages will be determined upon the execution of the contract. The goal of MGS-3 is to enhance the current gas network, ensuring gas supply to diverse industrial consumers in the region. The company reported this in its exchange filing.
Kalpataru Power Transmission Limited (KPTL) is a global EPC player with diversified interests in Buildings and Factories, power transmission & distribution, Roads and Bridges, Water pipelines, railway track laying & electrification, civil infrastructure space, oil & gas pipelines laying, etc.
The company offers comprehensive solutions encompassing design, testing, fabrication, erection, construction, and maintenance solutions for transmission lines, oil and gas infrastructure, and railway projects on a turnkey basis.
As of December 2023, the company is active in 73 countries and has an order book totaling ₹6.2 billion. Furthermore, it is currently overseeing more than 300 projects.
The company received 39% of its orders from international markets and 61% from the domestic market. Among the total orders, the majority (24%) is attributed to buildings and factories, followed by transmission and distribution at 37%, water projects at 22%, and the oil and gas sector at 3%.
Over the course of the year, companies experienced a substantial 23 percent growth in revenues, with figures rising from ₹4,004 crores in Q3 FY23 to ₹4,896 crores in Q3 FY24. In the same timeframe, the net profit demonstrated a noteworthy 32 percent increase, climbing from ₹109 crores to ₹144 crores.
Kalpataru Power Transmission Limited shares have gained 47 percent in the last six months and a 90 percent return in a year.
Written by Omkar Chitnis
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