Infra stock jumps 12% after securing order worth ₹200 Cr from North Eastern Railway

Synopsis: GPT Infraprojects Limited has been declared as the lowest bidder for the major railway infrastructure project been awarded by the North Eastern Railway, Gorakhpur. 

The Shares of this infrastructure company engaged in building complex infrastructure projects such as road rail bridges, metro viaducts and railway sleeper manufacturing, jumped upto 13 percent in a day’s trade upon securing a work order from North Eastern Railway, Gorakhpur.

With the market capitalization of Rs. 1416 Crores, the shares of GPT infraprojects has reached an intraday high of Rs. 117.89 per equity share rising nearly 12.35 percent from the previous day close price of Rs. 104.93 per share. 

What is the News

GPT infraprojects has recently secured a work order worth Rs. 199.17 Crores from  North Eastern Railway, Gorakhpur. The project includes building the base structure and preparing the main steel structure for two important railway bridges that is Bridge No. 247 and 287. Each bridge has 10 spans of 61 metres. They will be built on Double D–type well foundations and will carry a double railway track designed to handle 25-ton axle loads across the Rapti River in the Khalilabad–Bahraich section.

Company Overview and Financial Highlights

GPT Infraprojects Limited is majorly engaged in infrastructure projects such as road and rail bridges, metro viaducts and railway sleeper manufacturing. The company has recently commissioned a steel grinder and component manufacturing facility as part of its backward integration strategy, with an initial capacity of 10,000 MT per annum. 

It currently holds an order book of Rs. ~3600 Crores whose clients include NHAI, RVNL, Eastern Railway, South Eastern Railway etc. It is the only concrete sleeper manufacturer company from India which also has its presence in global markets such as South-Africa, Namibia and Ghana. 

Its operations are structured across two segments, Infrastructure segment with order book of 3,153 Crores and Concrete sleeper segment with order book of 438 Crores and manufacturing capacity of 1.5 million units across India and Africa. 

Year on Year analysis: GPT infraprojects revenue has decreased  from Rs. 288 Crores to Rs. 279 Crores, down ~3 percent, its operating profit has increased from Rs 31 Crores to Rs. 40 Crores, up ~29 percent and its net profit has increased from Rs. 15 Crores to Rs. 21 Crores,up 40 percent.

Quarter on Quarter analysis: GPT infraprojects revenue has decreased from Rs. 313 Crores to Rs. 279 Crores, down ~11 percent, its operating profit has increased from Rs 37 Crores to Rs. 40 Crores, up ~8 percent and its net profit has decreased from Rs. 25 Crores to Rs. 21 Crores, down 16 percent. 

Written by Vachan Kadli

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