The shares of the fast-growing infrastructure company gained up to 4 percent after the company secured a letter of Intent (LOI) from the Government of Rajasthan for Rs 313.4 million.
With a market capitalization of Rs 3,810.99 crore, the shares of Vishnu Prakash R Punglia Ltd were trading at Rs 305.75 per share, increasing around 3 percent as compared to the previous closing price of Rs 292.80 apiece.
Reason for Rise:-
The shares of the company have seen positive growth after Vishnu Prakash R Punglia Ltd secured a letter of Intent (LOI) from the Department of Information Technology and Communication, Government of Rajasthan for Elevation Works of Academic Blocks of Fintech Digital Institute, Jodhpur having a total value of Rs. 313.4 million.
Financial performance:-
The company’s revenue stretched 52%, rising from ₹96 crore in Q2FY24 to ₹146 crore in Q2FY25, while net profit pumped by 157%, growing from ₹7 crore to ₹18 crore during the same period, reflecting strong financial performance and continued business growth.
Order Book:-
The company’s current order book stands at ₹5,086 crores, with new orders worth ₹1,104 crores secured in FY’25, including ₹342 crores in water supply and ₹762 crores in railway projects. A bid pipeline of around ₹5,000 crores is being actively pursued across various sectors.
Operational Insights:-
The company operates over 500 vehicles and modern construction equipment, focusing on backward integration to reduce raw material costs with in-house facilities like Ready-Mix Concrete and material testing labs. Operational challenges arose from heavy rainfall and delayed payments, particularly from Rajasthan’s state government.
Guidance and Future Outlook:-
Management expects 10%-15% revenue growth for FY’25, adopting a conservative outlook due to budget constraints and certification delays. They anticipate strong performance in Q3 and Q4, with confidence in achieving robust growth, leveraging 38 years of experience and established operational capabilities.
Segment Performance:-
Water supply projects remain a key focus, accounting for 60% of bidding activity, while railway projects also contribute to margins. Management highlights that margins are comparable between the water supply and railway segments, emphasizing balanced performance across both areas.
Company Overview:-
Vishnu Prakash R Punglia Limited is one of India’s fastest-growing infrastructure development companies. Operating across multiple states, it focuses on government contracts, with 76% of its revenue from government projects in the first half of FY ’25.
Written by:- Abhishek Singh
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