Dilip Buildcon jumps after JV emerges lowest bidder in construction project

Dilip Buildcon surged 4.86% to Rs 301 after the company's joint venture with the engineering firm HCC (HCC-DBL) was declared as L-1 bidder for a construction project in Uttarakhand.

The construction project, the tender for which was floated by Rail Vikas Nigam, involves construction of bridges, tunnels, yard and formation work in connection with the new 125-km long broad gauge rail line between Rishikesh and Karanprayag in Uttarakhand. The project, having a length of 7.955 km with a bid cost of Rs 1334.95 crore, is to be completed within a 50-month period (equivalent to four years and two months). The announcement was made during market hours today (4 August 2020).

Separately, before market hours today, Dilip Buildcon announced that it had been declared as L-1 bidder for the tender floated by the National Highways Authority of India on Hybrid Annuity basis in the state of Telangana. The construction project entails four laning of NH-363 from Repallewada to Telangana/Maharashtra border in Telangana. The company's project bid cost is Rs 1140.5 crore. The project, having a length of 52.60 km, is to be completed in two years.

Dilip Buildcon is engaged in the business of infrastructure facilities on engineering procurement and construction (EPC) basis. The firm undertakes contracts from various government and other parties and special purpose vehicles promoted by the company. It operates through construction and engineering contracts segment.

On a consolidated basis, Dilip Buildcon's net profit jumped 127% to Rs 190.98 crore on a 6.1% rise in net sales to Rs 2729.66 crore in Q4 March 2020 over Q4 March 2019.

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