Infra stock engaged in providing construction and development services on an Engineering, Procurement, and Construction (EPC) basis jumped 8 percent in the day’s trade following the inauguration of its third cement plant to support and expand operations.
Price Action
With a market capitalization of Rs. 353 Crores, the shares of AVP Infracon Limited were trading at Rs. 141.50 per equity share, up 6 percent from its previous day’s close price of Rs. 133.55.
What Happened
AVP Infarcon Limited has announced that it has inaugurated AVP RMC’s third Ready Mix Concrete (RMC) Plant, strategically located at Merku Thottam, Tripur District, Tamil Nadu, underscoring the company’s commitment to expanding its operational footprint. AVP RMC is a partnership firm of AVP Infracon Limited with a 90 percent ownership.
The new state-of-the-art plant is poised to efficiently serve the concrete demands of key regions including Dharapuram, Palani, Oddanchatram, Udumalaipet, and Kangeyam. Its expansion not only strengthens AVP RMC’s service capabilities but also aligns with AVP Infracon’s strategic vision to support infrastructure development across these growing areas.
Managing Director Message
Commenting on the performance, Mr. Prasanna Dhandayuthapani, MD of AVP Infracon Limited, said, “The inauguration of AVP RMC’s third Ready Mix Concrete Plant marks a pivotal moment for us. This strategic expansion not only enhances our operational capabilities but also underscores our commitment to meeting the growing infrastructure demands.
By leveraging advanced technology and sustainable practices, we are poised to deliver efficient solutions that contribute significantly to regional development. This initiative aligns perfectly with our vision to strengthen AVP Infracon’s leadership in the dynamic construction landscape of Tamil Nadu.”
About the Company
AVP Infarcon Limited is engaged in the business of providing construction and development services on an Engineering, Procurement, and Construction (EPC) basis. It has a strong order book of Rs. 300 Crores.
It specializes in segments including Expressways, National Highways, State Highways, Flyovers, Bridges, Viaducts, Irrigation Projects, Urban Development – Civic Amenities, and Commercial Projects.
Financials and Ratios
Its revenue from operations grew by 42 percent from Rs. 106 Crores in FY23 to Rs. 151 Crores in FY24, accompanied by profits of Rs. 12 Crores to Rs. 18 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 73.3 percent, and a return on capital employed (ROCE) of 38.3 percent. It has reported a debt-to-equity ratio of 0.64.
Written by: Bharath K.S
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