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Patel Engineering rallies to 52-week high after JV bags Rs 1,275-crore project

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Patel Engineering rallies to 52-week high after JV bags Rs 1,275-crore project

Patel Engineering Limited (PEL) is an Indian engineering company that began in 1949, offering a wide range of civil engineering services for various industries, including dams, tunnels, micro-runnels, hydroelectric projects, irrigation projects, highways, roads, bridges, railways, refineries, real estate, and townships. The company also provides reliable solutions to complex construction challenges.

Shares of Patel Engineering hit a 52-week high of Rs 58.54 on August 22 (today) after the joint venture bagged an urban infrastructure development project. The worth of the secured contract is Rs 1,275.30 crore from the Madhya Pradesh Jal Nigam for engineering, procurement, construction, testing, commissioning, trial run, and operation and maintenance for ten years of Narmada-Gambhir, District Ujjain, and Indore multi-village drinking water supply scheme in a single package on a turn-key basis. The company's share in the contract is 35 percent, or Rs. 446.36 crores, for the project, which has a timeframe of 24 months. The company has a strong presence in tunnels and underground works for hydroelectric and dam projects, having completed over 85 dams, 40 hydroelectric projects, and more than 300 km of tunneling for clients.

In a recent interview on Dalal Street Investment, Kavita Shirvaikar Wholetime, Director and CFO of Patel Engineering Limited, said that the Indian government is making significant efforts in infrastructure development and making progress on the path to net-zero emissions by focusing on integrated infrastructure development to maximize capital investment and foster innovation. The scheme, like PM Gati Shakti's National Master Plan and the National Infrastructure Pipeline, has a target expenditure of over USD 1.8 trillion by 2025. Carrying on from that, she said, the company order book has grown significantly over the past year, reaching around Rs. 20,800 crores, which is largely attributed to the government's focus on improving infrastructure in the country, with capital investment outlay increasing by 33% to Rs. 10 lakh crore in the recent budget.

She further said, "The company's future outlook is optimistic due to the significant increase in infrastructure capital investment, which is expected to propel growth and development in the coming years."

At the beginning of August, the company released its consolidated quarterly numbers. Net sales for the quarter that ended June 2023 were reported at Rs 1,118.61 crore, up 24.14% year over year from Rs 901 crore in June 2022. Quarterly net profit was reported at Rs. 38.28 crore in June 2023, up 22.52% from Rs. 31.25 crore in June 2022. Operating EBITDA stood at Rs. 170.05 crore in June 2023, up 27.42% from Rs. 133.86 crore in June 2022. PEL Dil. EPS has increased by four basis points to 0.60 in June 2023 from Rs. 0.56 in June 2022.

The stock made a gap-up opening on August 22 and at time of reporting was trading at Rs. 57.70.

ANNUAL P&L FY 2023 FY 2022 FY 2021 FY 2020 FY 2019
Total Revenue 4,322.32 3,496.50 2,103.93 2,788.38 2,537.31
Total Revenue Growth (%) 23.62 66.19 -24.55 9.9 0.8
Total Expenses 4,088.82 3,354.00 2,233.57 2,764.34 2,427.82
Total Expenses Growth (%) 21.91 50.16 -19.2 13.86 6.14
Profit after Tax (PAT) 183.48 71.85 -290.75 11.13 154.15
PAT Growth (%) 155.37 - -2,712.05 -92.78 47.1
Operating Profit Margin (%) 15.51 16.62 13.62 11.09 20.3
Net Profit Margin (%) 4.36 2.12 -14.57 0.42 6.52
Basic EPS (₹) 3.19 1.51 -6.78 0.39 9.71

 

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