The shares of an Infrastructure company, specializing in engineering and construction of infrastructure projects, jumped upto 6 percent upon receiving a work order for Rs. 2,191 Crores.
Price action
With a market capitalization of Rs. 4,266.45 crores on Monday, the shares of Hindustan Construction Company Limited jumped upto 5.9 making a high of Rs. 23.95 per share compared to its previous closing price of Rs. 22.61 per share.
What Happened
Hindustan Construction Company (HCC) has partnered with Tata Projects Limited (TPL), and has won a Rs. 2,191 crore contract for the construction of an 8.65 km underground corridor, including tunnels and stations, for the Indore Metro Phase 1 project.
Now HCC holds a 55 percent stake, amounting to Rs. 1,205 crore. This Package IN-05R is the first and only underground segment of the 31.32 km Indore Metro Phase 1 project and it also involves building 11.32 km of tunnel and seven underground stations, connecting key areas in Indore.
HCC is also engaged in multiple metro projects, constructing 4 km of twin tunnels and four stations, along with two Chennai Metro packages. The company has made a significant contribution to India’s metro expansion plan, having constructed a material portion in various states.
About the Company
HCC is a business group developing and building responsible infrastructure through next practices. With an engineering heritage of nearly 100 years, HCC has executed a majority of India’s landmark infrastructure projects, having constructed 26 percent of India’s Hydro Power generation and 60 percent of India’s Nuclear Power generation capacities, over 4,036 lane km of Expressways and Highways, more than 402 km of complex Tunnelling and 403 Bridges. Today, HCC serves the infrastructure sectors of Transportation, Power, and Water.
Orderbook Segmentation (Q3 FY25)
The company has an overall order backlog of Rs. 9,773 crores, with 47 percent allocated to Transport (Rs. 4,587.31 crores), 26 percent to Hydro (Rs. 2,540.98 crores), 22 percent to Water (Rs. 2,148.06 crores), and 5 percent to Nuclear (Rs. 488.65 crores).
Financials
The company’s revenue declined by 29.5 percent from Rs. 1,512.3 crore to Rs. 1,066.16 crore in Q3FY24-25. Meanwhile, Net profit fell from a profit of Rs. 182.3 crores to a loss of Rs. 38.92 crore during the same period.
Written by Sridhar J
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