New Delhi, Feb 16, 2023: Patel Engineering on Wednesday said that the company with its joint venture partners (JV) has been declared the lowest bidder (L1) for ₹1,567 crore projects in Madhya Pradesh and Maharashtra state. The Company’s share in these new orders is ₹1,006 crore.
These orders include the construction of a Pressure irrigation system to supply water through the Rising/ Gravity mains by pressurized pipeline system for micro-irrigation under Rihand Micro Irrigation Project, State of Madhya Pradesh, and investigation, design, construction, testing, commissioning of works comprising of civil and allied works under lift irrigation scheme no.1 and 2 of Krishna Marathwada Irrigation Project, Dist. Osmanabad, State Maharashtra. All the Projects are scheduled to be completed in a period of 36 months.
The continuous order inflows shall give visibility of the growth of revenues for the coming years and shall enable the Company to increase the bottom line.
Further, the Company recently received fresh funds of ~ ₹90 crores under Niti Aayog guidelines against bank guarantee for an Arbitration Award. The funds received have been utilized for the reduction of debt.
Rupen Patel, Chairman & Managing Director, of Patel Engineering Limited, said, “We are delighted to have been declared lowest (L1) for these projects which should be converted to a Letter of Award (LOA) soon. Projects worth ₹1,567 crores are further testimony to our commitment to construction and heavy civil engineering works, as the Infrastructure sector is a key driver for the Indian economy. The project underscores the trust and confidence reposed in us and going forward, it will spur the expansion of our business as we continue to work on our strategic roadmap for the future.
Further states” Over the last two years, post-pandemic the Company has more than doubled its employee base to ~ 4,300 employees. In the last 3 years, we have received new orders of ~ ₹ 12,000 crores. Plans for debt reduction through monetization of non-core assets continue to be a key focus area for us. The new draft guidelines announced on Contractual Disputes in the Budget will safeguard the company’s interest and efforts.
As on December 31, 2022, its Order Book is ₹16,809 crore and with the addition of these new orders which are currently L1, the Order Book will improve further. The majority of the Order Book comprises of projects which are awarded by Central / State Governments or other Government undertakings/ Public Sector Undertakings.
For Fiscal 2022 consolidated revenue from operation stood at ₹3,380.29 crores against ₹1,994.79 crore, a rise of 69.46%. The company has seen a turnaround from a loss of ₹272.93 Crore in FY21 to a profit of ₹68.63 Crore in FY22.
Patel Engineering consolidated net profit for 9M FY23 rose 109.89% to ₹70.44 crore as against ₹33.56 crore during the corresponding period in the previous year. Sales rose 18.11% to ₹1036.98 crore in the quarter ended December 31, 2022 as against ₹ 877.94 crore during the previous quarter ended December 2021 and for 9M period sales rose 28% to ₹2,903.94 crore as against ₹2,268.64 crore in the corresponding 9M period in previous year.