GMR Power and Urban Infra shares continued their impressive performance, hitting the 10% upper circuit limit at ₹42 apiece during Friday's trading session. Over the last ten trading sessions alone, the company's shares have surged by 53%, resulting in an overall gain of 68% in just eleven sessions. This stock boom has translated into a 107% gain in just one month.
This remarkable upward trend can be largely attributed to the company's recent string of order wins. On Wednesday (September 13), the company's subsidiary, GMR Smart Electricity Distribution Private Limited (GSEDPL), received the Letter of Award (‘LOA’) from Dakshinanchal Vidyut Vitran Nigam Limited.
This award is for the implementation of a smart metering project in the Dakshinanchal region, covering Agra and Aligarh zones in Uttar Pradesh. Under this project, GSEDPL will be responsible for the installation, integration, and maintenance of 25.52 lakh smart metres in these areas.
The total contract value for the Agra and Aligarh Zones amounts to approximately ₹2,469.71 crore. The company said the issuance of the LOA follows a competitive e-tender process conducted by UP Discoms for various regions in Uttar Pradesh, in which GSEDPL emerged as the successful bidder. The smart metering project will span over a ten-year period.
Furthermore, GSEDPL had previously received another significant LOA on September 03. This award came from Purvanchal Vidyut Vitran Nigam Limited and pertains to the smart metering project in the Purvanchal region, which covers Varanasi and Azamgarh zones as well as Prayagraj and Mirzapur zones in Uttar Pradesh. GSEDPL will install, integrate and maintain 50.17 lakh smart meters in these areas.
The total contract value, for the Prayagraj and Mirzapur Zones, is approximately ₹2,386.72 crore, while for the Varanasi and Azamgarh Zones, it amounts to about ₹2,736.65 crore.
This Advanced Metering Infrastructure (AMI) Project shall include supply, installation, integration, commissioning, and operation and maintenance of smart metres on a DBFOOT basis, backed by state-of-the-art technology and software solutions for end-to-end automated system management, according to the company's regulatory filing.
GMR Power and Urban Infra Limited, a subsidiary of GEPL, specialises in the fields of energy, urban infrastructure, and transportation.
In the most recent quarter ending in June (Q1FY24), the company reported a net loss of ₹205 crore, a significant shift from the net profit of ₹212 crore recorded during the same quarter in the previous fiscal year. Notably, in the preceding March quarter, the company had registered a net loss of ₹473 crore.
Regarding its revenue from operations in Q1FY24, GPUIL posted ₹1,124 crore, a marginal 5.24% increase compared to the ₹1,068 crore reported in Q1FY23. Furthermore, the company managed to reduce its finance costs during the quarter, bringing them down to ₹279 crore from the previous figure of ₹323 crore in Q1FY23.
Disclaimer: We advise investors to check with certified experts before taking any investment decisions.
