A leading infrastructure and construction firm known for large-scale projects has secured a major irrigation contract in Maharashtra through a joint venture. This article details the Rs. 958.33 crore project, involving pipeline construction and maintenance, with insights into the company’s role as the lowest bidder and the project’s regional impact.
Patel Engineering Limited’s stock, with a market capitalisation of Rs. 3,513 crores, rose to Rs. 41.97, hitting a high of up to 0.19 percent from its previous closing price of Rs. 41.89. However, the stock over the past year has given a negative return of 34 percent.
Order Details
Patel Engineering, in a joint venture, won a Rs. 958.33 crore irrigation project from Maharashtra Krishna Valley Development Corporation. PEL’s 20 percent share amounts to Rs. 191.67 crore. The 36-month project in Satara, Maharashtra, includes pipeline construction and 5-year maintenance. PEL was the lowest bidder for this large-scale infrastructure contract.
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Industry Outlook
India’s infrastructure sector is booming with an Rs. 11.21 lakh crore budget, equal to 3.4 percent of GDP. Key focus areas include over 15,000 MW in hydro projects across Arunachal, Himachal, J&K, and Nepal, plus 60,000+ MW in pumped storage under review. Rs. 10 lakh crore is set for road and highway development.
Water projects also see strong support, with Rs. 67,000 crore for Jal Jeevan Mission and Rs. 8,259.8 crore for PMKSY. Additionally, 285+ km of tunnels span 75+ ongoing projects.
Financial Highlight
In Q4FY25, the company reported revenue of Rs. 1,612 crore, up 20 percent YoY and 34 percent QoQ, reflecting strong top-line growth. However, net profit declined sharply to Rs. 38 crore, down 73 percent YoY and 54 percent QoQ, indicating margin pressure or higher expenses.
Over the past three years, the company has delivered a robust profit CAGR of 56 percent, a sales CAGR of 15 percent, and an ROE CAGR of 8 percent, highlighting consistent long-term growth despite recent profitability headwinds.
Written By Fazal Ul Vahab C H
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