Shares of this engineering and contract construction, company rose almost 5 percent after it secured a contract of Rs. 57.22 Crores from Mumbai Metro Rail Corporation Limited for the construction of a Commercial Building at Kalbadevi.
Share price variations:
With a market capitalization of Rs. 1,443.53 crores, Vascon Engineers Ltd. rose to an intraday high of Rs. 64.65 representing a 4.9 percentage increase from its previous closing price of Rs. 61.61 per share.
Reason for the Rise:
According to exchange filings, Vascon Engineers Ltd. has secured a contract worth Rs. 57.22 crore from Mumbai Metro Rail Corporation Limited for the construction of a commercial building in the Bhuleshwar Division at Kalbadevi, in the ‘C’ Ward.
This project is part of the rehabilitation for Metro Line 2/3 Project Affected Persons at Kalbadevi and Girgaon. The contract has been awarded on a percentage rate basis and is expected to be completed within 28 months.
Recent Contracts Received:
In August, the company was awarded a Rs. 331.38 crore project from the Chief Engineer, Public Work, Regional Department, Konkan, Mumbai for the construction of a Medical College with a carrying capacity of 100 students, 500 bedded hospital, and an ancillary building at Sindhudurg.
Financial Performance:
For Q1FY25 the company reported a net profit decrease of 24 percent to Rs. 9.6 crore compared to Rs. 11.9 crores in Q1FY24, while revenue from operations marked an increase of 34.7 percent to Rs. 275.47 crore from Rs. 204.46 crores in comparison to the same period.
As of Q1 FY25, the company’s order book stands at Rs. 3,482 crore, with nearly 97 percent of its revenue generated in Q1 from the Engineering, Procurement, and Construction (EPC) segment, while the remainder comes from real estate development. Furthermore, 82% of its projects are government-related.
About the company:
Vascon Engineers Ltd is engaged in the business of providing Engineering, Procurement, and Construction services for Real Estate Development with operations in several states and union territories in India either directly or indirectly through their subsidiaries and other development entities.
Written By: Joseph Pv
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