Rs 258 Crore Project! Find Out Which Company To Improve Water Supply in Chennai
However, on a 12-month basis, it has delivered a return of 36.8 per cent, indicating recovery potential in this small-cap stock.
SPML Infra Limited witnessed a notable uptick in its share price after securing a Rs 258 crore water infrastructure project from the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB). The stock rose over 3 per cent to hit an intraday high of Rs 198.90 on Tuesday. As of 11:08 am IST, the stock was trading at Rs 195.12, up 1.56 per cent. Despite this recent gain, SPML Infra has declined by 23.90 per cent on a year-to-date basis. However, on a 12-month basis, it has delivered a return of 36.8 per cent, indicating recovery potential in this Small-Cap stock.
The new project was awarded to a consortium led by SPML Infra Limited and JWIL Infra Limited, where SPML holds a 26 per cent stake and JWIL the remaining 74 per cent. The consortium emerged as the lowest bidder and received the Letter of Acceptance (LoA) from the CMWSSB. This comprehensive infrastructure initiative aims to improve water supply in Chennai, with key components including the construction, testing, and commissioning of a reservoir at Porur, development of pumping stations, and other ancillary works in Perur and Porur regions.
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One of the significant aspects of the project is its long-term vision. The consortium will manage operations and maintenance (O&M) for a span of 20 years, ensuring the infrastructure’s sustained functionality and service delivery. Commenting on the development, Mr. Subhash Sethi, Chairman of SPML Infra Limited, highlighted the company’s commitment to delivering sustainable and efficient engineering solutions amid rising demand for reliable water infrastructure in urban areas.
In terms of financial performance, SPML Infra reported a 59.01 per cent year-on-year decline in Q4 FY25 revenue, which fell to Rs 189.03 crore from Rs 461.21 crore in Q4 FY24. Despite the revenue drop, the company posted a turnaround with a net profit of Rs 12.01 crore, compared to a loss of Rs 3.56 crore in the same quarter last year. For the full FY25, revenue dipped by 41.57 per cent to Rs 770.64 crore. However, net profit rose to Rs 47.93 crore from a loss of Rs 1.61 crore in FY24, marking a positive shift in profitability.
SPML Infra, a company with over four decades of experience, has executed more than 700 projects across India. It operates in sectors like water, power, environment, and technology. Its portfolio includes water treatment facilities, sewage networks, waste management systems, and power distribution infrastructure, contributing to urban development and public utilities.
Disclaimer: The article is for informational purposes only and not investment advice.