Shares of this infrastructure company jumped around 5 percent in Friday’s trading session after receiving an order worth Rs. 1035.1 million for the construction of 57 MLD WTP by HSIIDC Kharkhoda, Haryana.
With a market capitalization of Rs. 1,994 crores, the shares of Vishnu Prakash R Punglia Ltd (VPRPL) started Friday’s trading session on a flatter note at Rs. 153.95 compared to its previous close of Rs. 154.95. During the trading session, the shares hit a high of Rs. 162.55, gaining around 5 percent and are currently trading at Rs. 162 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they received a Letter of Acceptance (LoA) from the Office of Assistant General Manager, HSIIDC Kharkhoda.
The LoA pertains to the construction of 57 MLD Water Treatment Plant (WTP) and all contingent works thereto in all respects along with 120 months of Operation and Maintenance at IMT Kharkhoda, District Sonipat (on EPC Mode) having a total value of Rs. 1035.1 million (Rs. 103.51 crores).
Coming onto the company’s financial statements, the revenue decreased by 18 percent from Rs. 296 crores during the September quarter to Rs. 242 crores in the December quarter. On the other hand, the net profits declined by 19 percent from Rs. 21 crores to Rs. 17 crores during the same timeframe.
Earlier, the company received a LoA from the Office of Mumbai Railway Vikas Corporation Limited (MRVCL), a PSU under the Government of India’s Ministry of Railways for the construction of a new Suburban Railway Station worth Rs. 739.28 million.
As of September 2023, the order book of Vishnu Prakash R Punglia Ltd is reported to be Rs. 4,362 and further, plans to focus on scaling up its operations and enhancing its project portfolio.
Moreover, the company aspires to attain prominence in the construction industry, consistently delivering projects that surpass global standards while ensuring customer satisfaction and aims to expand its capabilities by embracing the latest innovations, digital workflows, and skill enhancement.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 32.94 percent during FY 21-22 to 38.31 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 30.10 percent to 33.86 percent during the same timeframe. Furthermore, the net profit margin increased from 5.71 percent during FY21-22 to 7.76 percent during FY22-23.
Headquartered in Jodhpur, Vishnu Prakash R Punglia was incorporated in 2013. The company is engaged in the business of designing and constructing infrastructure projects for the Central and State Governments, autonomous bodies, and private bodies.
Written By Vaibhav Patil
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