IL&FS Engineering and Construction Co. surges on winning major contract

IL&FS Engineering and Construction Company hit 20% upper circuit at Rs 65.45 on BSE after the company said it has received a letter of award from National Highways Authority of India (NHAI) for a total value of Rs 1232 crore.

The company made the announcement after market hours on Monday, 13 October 2014.

Meanwhile, the BSE Sensex was up 1.59 points, or 0.01%, to 26,385.66.

On BSE, so far 1.72 lakh shares were traded in the counter, compared with an average volume of 11,264 shares in the past one quarter.

The stock was locked at a high of Rs 65.45 in intraday trade. The stock hit a low of Rs 63.10 so far during the day. The stock hit a 52-week high of Rs 76.10 on 21 May 2014. The stock hit a 52-week low of Rs 30.10 on 25 October 2013.

The stock had underperformed the market over the past one month till 13 October 2014, falling 14.23% compared with Sensex's 2.5% decline. The scrip had also underperformed the market in past one quarter, declining 15.36% as against Sensex's 5.43% rise.

The small-cap company has an equity capital of Rs 89.86 crore. Face value per share is Rs 10.

The contract awarded is for four laning of Patna-Gaya-Dobhi section in the state of Bihar to be executed under JICA ODA loan assistance. The project completion period is 1095 days from commencement date. The widening of this national highway will give a major boost to the tourism industry there as it falls under the Buddhist circuit. It will also provide substantial economic gain in terms of reduced vehicle operating costs and reduced travel time, company said in a statement.

The company reported net loss of Rs 37.05 crore in Q1 June 2014 compared with net profit of Rs 2 crore in Q1 June 2013. The company's total income rose 9.7% to Rs 558.56 crore in Q1 June 2014 over Q1 June 2013.

IL&FS Engineering and Construction Company is a infrastructure development, construction and project management company.

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