Sadbhav Engineering gains 4 per cent on receiving LOA for projects worth Rs 1572.30 crore

Sadbhav Engineering today informed the bourses that the company has received Letter of Acceptance (LoA) from NHAI for two EPC road projects amounting to Rs 1572.30 crore.

The first project includes construction of Four Lane Expressway from Sardar Patel ring road to Sindhrej Village of Ahmedabad District (22 kms length) under EPC Mode. The contract value of the same is Rs 690.30 crore and the construction period will be 24 months.

The second project includes construction of Four Lane Expressway from Sindhrej Village to Vejalka village of Ahmedabad under EPC mode. The contract value of the same is Rs 882 crore and the construction period will be 24 months.

On the order book front, total order book stood at Rs 9397.38 crore as on September 30, 2020. Out of this, transport sector is the largest contributor with order book of Rs 7087.76 crore. Mining sector and Irrigation sector order book stood at Rs 1957.03 crore and Rs 352.59 crore, respectively.

Recently, the company has also announced its quarterly numbers for Q2FY21. The consolidated revenue for Q2FY21 was Rs 540.72 crore as against Rs 938.13 crore in the corresponding quarter last year, registering 42.4 per cent YoY decline. The EBITDA for the quarter fell by 50.2 per cent YoY to Rs 163.45 crore as against Rs 328.35 crore in the corresponding quarter last year, with a corresponding margin contraction of 477 bps. EBITDA margin for the quarter stood at 30.2 per cent. The net loss for the quarter came in at Rs 60.41 crore as against the net loss of Rs 39.89 crore in the corresponding quarter last year.

In today’s trading session, the stock of Sadbhav Engineering gains nearly four per cent and made an intraday high of Rs 51.10 on BSE.