Patel Engineering Wins ₹317.60 Crore Order from Maharashtra Government
Patel Engineering shares up 3% after receiving order from Maharashtra government; company reports ₹707 crore revenue from real estate business
Patel EngineeringMaharashtra GovernmentInfrastructure DevelopmentHydropowerIrrigationReal Estate MaharashtraAug 06, 2024
The project involves the construction of a water lifting arrangement for the first stage of the Jigaon project, encompassing civil, mechanical, electrical components, and allied works. The company has stated that the project is scheduled for completion within 24 months.
Patel Engineering's share in the joint venture stands at 35%. According to Kavita Shirvaikar, Acting Managing Director of Patel Engineering, this project will play a crucial role in enhancing agricultural productivity and improving water management in the region.
Patel Engineering boasts an impressive track record in the hydropower, irrigation, tunnels, and underground works for hydroelectric and dam projects. The company has successfully completed over 85 dams, 40 hydroelectric projects, and more than 300 km of tunnelling, primarily for central public sector units (PSUs) and state government organizations.
During the fourth quarter of the fiscal year 2024, Patel Engineering reported an 11.46% year-over-year (YoY) increase in its consolidated revenue from operations, reaching ₹1,343.18 crore. Operating earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 40.62% YoY to ₹237.58 crore, with an operating EBITDA margin improvement to 17.69% from 14.02% in the same period the previous year.
Net profit from continuing operations surged by 51.72% YoY to ₹123.37 crore during the quarter, with profit margins improving to 9.19% from 6.75% in the same quarter the previous year.
The company has been focusing on monetizing non-core assets to reduce debt and plans to continue this strategy in the future. In the last fiscal year, Patel Engineering successfully reduced its net serviceable debt by ₹330.98 crore.
Despite this recent order, Patel Engineering's shares have declined by nearly 15% since the beginning of the year. However, the stock has risen by approximately 9% over the last year.
The company is poised to benefit from the growing demand for infrastructure development in India, particularly in the hydropower and irrigation sectors. With its strong track record and ongoing efforts to reduce debt, Patel Engineering is well-positioned for future growth.
Maharashtra government has been actively promoting infrastructure development in the state, with a focus on irrigation and water management projects. This order is a testament to the government's commitment to improving agricultural productivity and enhancing the overall quality of life for its citizens.
Patel Engineering Limited is a leading Indian infrastructure development company, with a strong presence in the hydropower, irrigation, tunnels, and underground works sectors. The company has a proven track record of delivering complex projects on time and has worked with various central public sector units (PSUs) and state government organizations.
Frequently Asked Questions
What is the value of the order received by Patel Engineering from the Maharashtra government?
The order is worth ₹317.60 crore.
What is the project about?
The project involves the construction of a water lifting arrangement for the first stage of the Jigaon project, encompassing civil, mechanical, electrical components, and allied works.
How long will it take to complete the project?
The project is scheduled for completion within 24 months.
What is Patel Engineering's share in the joint venture?
Patel Engineering's share in the joint venture stands at 35%.
How has Patel Engineering's stock performed recently?
Despite the recent order, Patel Engineering's shares have declined by nearly 15% since the beginning of the year. However, the stock has risen by approximately 9% over the last year.
Related News Articles
Indian Real Estate Sees Surge in Joint Development Agreements
Joint development agreements for 1546 acres of land inked in the last 18 months, with a focus on residential projects in Delhi NCR, Bengaluru, and Mumbai.
MahaRERA's New Guidelines: Enhanced Protection for Homebuyers in Maharashtra
From July 1, developers in Maharashtra will be required to maintain designated bank accounts to ensure transparency and accountability in financial operations of housing projects.
Arnya RealEstates Marks First Close of ₹375 Crore for Maiden Fund
Arnya RealEstates Fund Advisors raises ₹375 crore for its maiden real estate fund, with a focus on providing early-stage growth capital to residential projects.
Maharashtra Elections 2024: Nawab Malik Files Nomination from Mankhurd-Shivaji Nagar
Today marks the final day for candidates to submit their nominations for the Maharashtra state elections. Notable political figure Nawab Malik is set to file his nomination from the Mankhurd-Shivaji Nagar constituency.
Bombay High Court Stays REAT Order on Rs. 38.18 Cr Deposit in Real Estate Dispute
In a significant development, Justice Gauri Godse of the Bombay High Court has stayed an order by the Real Estate Appellate Tribunal (REAT) that directed a developer to deposit Rs. 38.18 crore in a real estate dispute.
India's Office Space Market Surges to 515 Lakh Sq Ft in 2024, Setting New Records
Mumbai leads the growth in new completions by 170%, while the IT-ITeS sector drives leasing activity. With demand soaring, 2025 is poised to be another year of robust growth in India's commercial real estate.