Dilip Buildcon gains after subsidiary receives financial closure letter for road project

Dilip Buildcon rose 2.36% to Rs 635.05 after the company's subsidiary Repallewada Highways received the financial closure letter from National Highways Authority of India (NHAI) for a road project in Telangana/Maharashtra border.

According to the model concession agreement, financial closure is defined as fulfilment of all conditions precedent to the initial availability of funds under the financing agreements.

In August 2020, the company was declared as the lowest bidder for this project by NHAI. The road developer received the letter of award (LOA) for the project in September 2020.

The scope of the project includes four-laning of NH-363 from Repallewada stretched over 52.602 km (design km 42.000/existing km 288.510) to Telangana/Maharashtra border (design km 94.602/existing km 342.000) in the state of Telangana under NH (O).

The first year's operation and maintenance cost is Rs 3 crore. The estimated time given for the completion of the project is 24 months and the operation period would be 15 years from the commercial operation date (COD). The company's bid project cost is Rs 1140.50 crore.

Dilip Buildcon is one of the leading full-service infrastructure company with construction capabilities in roads & bridges, mining, water sanitation, sewage and dams with a presence in over 19 states.

The company's consolidated net profit jumped 106.27% to Rs 182.20 crore on 7.09% rise in revenue from operations to Rs 2,746.20 crore in Q3 FY21 over Q3 FY20.

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