G R Infraprojects Ltd stock opened its trading session today at a price of Rs 979.80 and is currently trading at Rs 1,043. The stock has shown an intra-day movement of up to 9 percent today. Current price levels show an upside of around 8 percent as compared to the previous closing price of Rs 965.25.
One of the core reasons for such a movement today is pertaining to a recent filing with the exchange yesterday wherein the company announced receipt of orders for a couple of projects.
First one being the Dibang Power consortium, a JV between GR Infraprojects and Patel Engineering, emerging as the L-1 bidder for Dibang Multipurpose Project in Arunachal Pradesh involving construction of civil works with regards to LOT-4 comprising head race tunnels including intake, pressure shafts, penstocks, power house & transformer cavern, tail race tunnels, pothead yard, adits, etc. Cost of the project is estimated to be Rs 3,637.12 crores and the same is to be completed in 86 months. The share of GR Infraprojects in the contract is 50 percent.
In addition to the above, the company emerged as the L-1 bidder for a project pertaining to the Surat – Nashik – Ahmednagar– Solapur – MH/KNT Border Greenfield stretch in the state of Maharashtra. The project is to be executed in Hybrid Annuity Mode under Bharatmala Pariyojana with a cost of Rs 872.17 crore. Completion period is 730 days from the appointed date and the operation period is 15 years from the commercial operation date.
G R Infraprojects is an integrated engineering, procurement and construction (EPC) company with experience in the design and construction of various road/highway projects across 14 States in India. The company’s primary business operations are broadly divided into three categories such as civil construction activities, development of roads and highways and manufacturing activities.
Having a quick glance at the financials of the company, the revenues and net profits have a contrasting effect on a QoQ basis. Revenues moved up from Rs 2,136.36 crores in Q2 to Rs 2,191.87 crores in Q3. Whereas, the net profits decreased from Rs 336.23 crores in Q2 to Rs 323.65 crores in Q3.
The profitability ratios show a downward trend over the past 3 financial years with the recent shifts being the movement of ROE from 27.25 percent in FY20-21 to 18.93 percent in FY21-22 and ROCE shifting from 23.06 percent in FY20-21 to 16.42 percent in FY21-22.
As per the quarter ending December 2022, promoters hold 79.74 percent stake in the company. FIIs have reduced their stake from 0.63 percent in Q2 to 0.38 percent in Q3.
Written by Amit Madnani
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