GMR Infra gains as consortium wins rail project in UP

GMR Infrastructure rose 2.21% to Rs 20.85 at 14:18 IST on BSE after a consortium led by the company has won construction package of rail line doubling between Jhansi and Bhimsen stations in Uttar Pradesh.

The company made the announcement during trading hours today, 4 March 2014.

Meanwhile, the S&P BSE Sensex was up 228.13 points or 1.09% at 21,174.78.

On BSE, so far 2.47 lakh shares were traded in the counter as against average daily volume of 5.64 lakh shares in the past one quarter.

The stock was volatile. The stock rose as much as 2.69% at the day's high of Rs 20.95 so far during the day. The stock lost as much as 1.96% at the day's low of Rs 20 so far during the day. The stock had hit a 52-week high of Rs 25.35 on 1 January 2014. The stock had hit a record low of Rs 10.65 on 6 August 2013.

The stock had outperformed the market over the past one month till 3 March 2014, advancing 4.62% compared with the Sensex's 3.65% rise. The scrip had, however, underperformed the market in past one quarter, declining 1.21% as against Sensex's 0.44% rise.

The mid-cap company has equity capital of Rs 389.24 crore. Face value per share is Re 1.

GMR Infrastructure (GMR) is the lead member of the consortium with TATA Projects & Kalindee Rail Nirman as the partner for OHE and track works, S&T works respectively. The total contract is valued at approximately Rs 267 crore of which GMR's share of work is about Rs 135 crore, the company said. The project is scheduled to commence from 2 April 2014 and duration for completion of the project is 42 months.

GMR said that Rail Vikas Nigam has issued the letter of award (LoA) to GMR consortium on 20 February 2014.

Mr. Arun Kumar Sharma, CEO, GMR Urban Infrastructure & Highways said, "As a part of our Asset Light strategy, we are very happy to announce our first foray into the very promising railway construction sector. This win reflects our long term vision of building our EPC expertise in a niche segment like Railways, and will pave the way for similar projects in future".

GMR Infrastructure reported a consolidated net loss of Rs 441.09 crore in Q3 December 2013, higher than net loss of Rs 217.45 crore in Q3 December 2012. Net sales rose 11.4% to Rs 2625.04 crore in Q3 December 2013 over Q3 December 2012.

GMR Infrastructure is a global infrastructure major with interests in airports, energy, highways and urban infrastructure sectors.

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