Shares of Vascon Engineers rallied 4 percent to Rs 78 per share, trading near its 52-week high level on the BSE on October 11 after the company bagged worth Rs 262 crore from Bridge and Roof company, a government enterprise. The S&P BSE Sensex was up 413 points or 0.6 percent to 66,493 levels, as of 10:00 am.
In the past three months, the stock of this smallcap company surged 77 percent as against 1 percent rise in the Sensex benchmark.
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In an exchange filing, the company intimated that the government order would entail planning, designing, construction, IT, and maintenance of government medical college at Kanker district of Chhattisgarh. The work was awarded on engineering, procurement, and construction (EPC) basis.
The work is scheduled to be completed within 24 months from the date of commencement, said the management. The work also does not fall under the ambit of any related-party transaction.
Earlier, on August 23, 2023, the company had also received order worth Rs 605 crore from Bihar Medical Services & Infrastructure Corporation (A Government of Bihar undertaking) for construction of Lohia Medical College & Hospital, including hospital and residential building, Supaul. The work was scheduled to be completed within 36 months from the date of receipt of Letter of Acceptance.
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As of June-ended quarter of FY24 (Q1FY24), the company’s net debt rose by 336 percent sequentially to Rs 48 crore.
That apart, the company’s consolidated total income rose to Rs 208 crore in Q1FY24 from Rs 203 crore in Q1FY23. Earnings before interest, tax, depreciation, and amortisation (Ebitda), too, grew marginally to Rs 18 crore in the September-ended quarter from Rs 17 crore in Q1FY23.
Besides that, the company’s profit-after-tax (PAT) grew by 9 percent year-on-year (YoY) to Rs 12 crore in Q1FY24.
Some of the marquee clients of the company include Cipla, Dr Reddy’s, Sanofi, Tata Housing, Novotel, Global Hospitals, among others.
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