Patel Engineering shares rise 5% after NHPC contract in Sikkim

Patel Engineering shares have tanked over 17 percent in the past three months.

Patel Engineering shares rose over 5 percent to Rs 60.4 in the afternoon on September 20 after the company announced that it has secured a  Rs 240-crore NHPC contract for Teesta-V Power Station.

The contract involves civil and hydro-mechanical works for modifying the diversion tunnel into a tunnel spillway arrangement at the Teesta-V Power Station in Sikkim, the company said in a regulatory filing on Friday.

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The project, which is expected to be completed within 18 months, adds to PEL's robust portfolio in the North Eastern region, where the company is already working on NHPC’s Teesta-VI project near Singtam, Sikkim.

Last month, Patel Engineering Limited (PEL), in partnership with its JV partner, secured a Rs 317.60 crore contract from the office of the executive engineer, Government of Maharashtra. The contract involves constructing a water-lifting arrangement for the first stage of the Jigaon project, covering civil, mechanical, electrical, and allied works.

The scope of work involves the construction of water lifting arrangement work for LIS 1 to 12 of the first stage from submergence of the Jigaon project including the approach channel, rising main, pumping machinery, switchyard and all allied works of civil, mechanical, and electrical components.

The company reported a nearly 26 percent year-on-year increase in consolidated net profit for the April-June 2024 quarter, reaching Rs 48.17 crore, compared to Rs 38.29 crore in the same period last year. However, revenue from operations saw a slight dip of 1.52 percent, standing at Rs 1,101.66 crore, down from Rs 1,118.61 crore in the corresponding quarter of 2023.

Managing Director Kavita Shirvaikar emphasized the company’s commitment to driving long-term value for stakeholders while enhancing operational efficiency. She expressed confidence in Patel Engineering’s ability to contribute to India's infrastructure growth with a solid foundation in place.

At about 2 pm, shares of the company were trading at Rs 58.3, higher by 1.4 percent from the last close on the NSE. Patel Engineering shares have tanked over 17 percent in the past three months.

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