Civil engineering and construction firm Patel Engineering saw some major buying on its counter a few days ago, with the stock going up over 6% in one day to Rs.375. This sudden surge in the price was on account of the huge order worth Rs.695.57 crore, it received from the Andhra Pradesh Govt. It is a massive modernisation programme of the major river delta systems to boost irrigation potentials in the state. The project is expected to be completed in 36 months. After the euphoria settled, the stock has now retreated a bit and is now at around Rs.340 levels.
Prior to this, the company’s stock price was up on reports that the company is close to acquiring a coal mine in Indonesia for Rs 100 crore.
Financial performance for the first quarter ended 30th June 2008 indicates that the company is doing well. Net sales of the company rose 34% at Rs.558.39 crore and despite a 30% rise in operating expenses, its EBIDTA was up 30% at Rs.479.83 crore. Its interest outgo rose over 3.5 times, yet it managed to show a 33% rise in PBT. Its PAT was up 29% at Rs.34.99 crore.
Prior to this, the company’s stock price was up on reports that the company is close to acquiring a coal mine in Indonesia for Rs 100 crore.
Financial performance for the first quarter ended 30th June 2008 indicates that the company is doing well. Net sales of the company rose 34% at Rs.558.39 crore and despite a 30% rise in operating expenses, its EBIDTA was up 30% at Rs.479.83 crore. Its interest outgo rose over 3.5 times, yet it managed to show a 33% rise in PBT. Its PAT was up 29% at Rs.34.99 crore.
In May 2008, Patel Engineering’s joint venture in the United States received a dam reconstruction contract worth $280 million.
The only irking fact about the company is the string of subsidiaries it has. These consolidated results include the performance of nine subsidiaries and four financially controlled integrated joint ventures. Apart from these, during the quarter, the company incorporated twelve more Indian subsidiaries and two overseas subsidiaries. Stay invested.
Source: sptulsian.com
