Shares of Welspun Enterprises jumped 3.7% to Rs 69.50 on the BSE as the infrastructure and energy company received endorsement agreement, dated 8 June, 2020, between National Highways Authority of India (NHAI) and its wholly-owned subsidiary, Welspun Infrafacility.
This completes the process of takeover of eight laning of Mukarba Chowk Panipat section of National Highway -1 (New NH-44) in Haryana. The company revealed its plan to continue exploring growth opportunities, both organic and inorganic, during the fiscal fourth quarter earnings release last week.
The company reported consolidated net sales of Rs 504.47 crore for the quarter ended 31-Dec-2019, up 62.92% from previous quarter’s Rs 309.64 crore and up 13% from the year-ago quarter’s Rs 446.45 crore.
The net profit for latest quarter stood at Rs 26.05 crore, down 39.96% from the same quarter a year ago.
In spite of the bleak macroeconomic scenario currently, Welspun Enterprises believes that it is well placed to tap opportunities in the Infrastructure space through its cautious Bid and Buy strategy. Its robust order book, strong balance sheet with healthy cash balance and focus on operational excellence will help the company tide over these challenging times.
Welspun believes that with the help of differentiated asset-light model, it will be able to create long-term sustainable value for all stakeholders.
According to Welspun, there are around 39 HAM projects of NHAI, with a total project cost of Rs 39,000 crore, whose bids have been announced.
The company is selectively targeting to participate in bidding of few projects, while preserving its threshold return expectations. Welspun is also exploring opportunities in state and municipal HAM (Hybrid Annuity Model) projects in roads.
The company further added it will continue to explore inorganic growth opportunities, through a measured evaluation of risk-return parameters.
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