Vascon Engineers, one of the leading EPC companies in India, witnessed a remarkable surge of approximately 9.3%, driving its shares to hit a new 52-week high of ₹65.70 apiece, during the early trading session on Thursday. This impressive upswing came after the company bagged a ₹605.65 crore order.
In an exchange filing on Wednesday, the company said it received a Letter of Acceptance from Bihar Medical Services & Infrastructure Corporation Limited (a government of Bihar undertaking) for the construction of Lohia Medical College & Hospital, including the hospital and residential building in Supaul.
The work has been awarded on an ‘EPC basis’. The work has to be completed within 36 months from the date of receipt of the letter of acceptance, the company said in an exchange filing.
Earlier in April, the company received a tender from Maharashtra State Police Housing & Welfare Corporation Limited for the construction of residential quarters and amenity block in Pune, amounting to Rs. 382.40 crore. The work has been awarded on a ‘Lumpsum basis’.
In March, it won an order worth ₹158.09 crore from Superintending Engineer PMGSY Circle, UPPWD, Uttar Pradesh, for the design, engineering, procurement, and construction of Jila Karagar at Amethi in Uttar Pradesh.
Vascon Engineers Limited operates across three segments: engineering, procurement and construction (EPC), real estate development, and manufacturing and BMS. The EPC segment involves constructing various types of buildings, while the real estate development segment focuses on creating residential, hotel, and industrial park properties. The manufacturing & BMS segment is engaged in the manufacturing of clean room partition and building management system.
The shares over the last year zoomed from ₹23.90 to ₹62.60 apiece, translating into a fabulous return of nearly 162%, and from their March 2020 lows of ₹7.35 apiece, the shares have skyrocketed 752% to date.
During the June quarter (Q1FY24), the company recorded a net profit of ₹12.30 crore, as compared to a net profit of ₹11.55 crore in Q1FY23. Its revenue from operations for the quarter reached ₹204.58 crore, a modest improvement from ₹201.69 crore registered in Q1FY23.
The company has indicated that with a strong order book and higher capacity utilisation, profitability is expected to improve, leading to a stronger balance sheet.
Looking at the overall fiscal year 2022–23 performance, the company achieved a net profit of ₹103.20 crore, marking a significant improvement from the net profit of ₹40.36 crore in the previous fiscal year. The total revenue for FY23 stood at ₹1,019 crore, an increase from ₹656 crore in FY22.
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