HCC, KEC Intl gain after order win

Hindustan Construction Co. (HCC) rose 1.73% to Rs 10.01 after the company in consortium with KEC International (KEC) won a Rs 1,309 crore contract from Chennai Metro Rail.

Meanwhile, KEC International gained 1.38% to Rs 463.30 on BSE. The scrip hovered in the range of Rs 458.75 to Rs 466.95 so far.

The project involves the construction of 11.61 km elevated viaduct section and eleven elevated stations on Corridor 5 of phase II of the Chennai Metro. This is the second order secured by the HCC-KEC consortium for Chennai Metro. HCC's share in the joint venture is 51% (i.e. Rs 668 crore).

The scope of work involves civil works, architectural works and signages, plumbing & drainage works and temporary services as per the employer's drawings and the works requirements. The eleven elevated stations include Madipakkam, Kilkattalai, Echangadu, Kovilambakkam, Vellakkal, Medavakkam Koot Road, Kamaraj Garden Street, Medavakkam Junction, Perumbakkam, Global Hospital and Elcot.

The project is to be completed in 36 months (i.e. 3 years). Currently, HCC is executing a section of Mumbai Metro Line III, one package of Delhi Metro, two contracts for Pune Metro, one package of Bangalore Metro Rail Project and one package of Chennai Metro. In the past, HCC has been associated with six packages of Delhi Metro totalling 18.14 km of tunnels and 13 underground stations. In Kolkata Metro, HCC has constructed 6.47 km tunnels in six packages that include four underground stations. In Mumbai Metro I, the company has built eight elevated stations.

HCC reported a consolidated net profit of Rs 139.23 crore in Q2 FY21 as compared to a net loss of Rs 476.61 crore in Q2 FY20. Net sales during the quarter grew 54% Y-o-Y to Rs 2,787.45 crore.

HCC is engaged in engineering and construction activities. It serves the infrastructure sectors of transportation, power and water.

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