IL&FS Transportation gains after setting up a company in UAE

IL&FS Transportation Networks rose 2.02% to Rs 113.50 at 11:59 IST on BSE after the company said that it set up a new infrastructure company in Sharjah, UAE.

The announcement was made after market hours on Wednesday, 9 October 2013.

Meanwhile, the BSE Sensex was down 29.31 points, or 0.14%, to 20,219.95.

On BSE, 6,321 shares were traded in the counter compared with average volume of 13,537 shares in the past one quarter.

The stock hit a high of Rs 114.30 and a low of Rs 110.90 so far during the day. The stock hit a record low of Rs 98.10 on 19 September 2013. The stock hit a 52-week high of Rs 227 on 9 January 2013.

The stock had underperformed the market over the past one month till 9 October 2013, sliding 1.37% compared with the Sensex's 5.08% rise. The scrip had also underperformed the market in past one quarter, falling 22.85% as against Sensex's 4.17% rise.

The small-cap company has an equity capital of Rs 194.27 crore. Face value per share is Rs 10.

IL&FS Transportation Networks said it set up a new infrastructure company, Sharjah General Services Company ("Khadamat"), in partnership with Sheikh Sultan bin Ahmed Al Qassimi, Chairman of Sharjah Media Centre.

Khadamat aims at comprehensive and integrated development of the region through enhancing infrastructure for both the public and private sectors. Khadamat is incorporated for managing and operating facilities; creating an international infrastructure for surface transportation, logistics, industries and services sectors; and managing such an infrastructure in accordance with international standards, including the establishment of an internal and external road network and the launch of strategic real estate development and redevelopment projects.

On a consolidated basis, IL&FS Transportation Networks' net profit rose 2.3% to Rs 124.53 crore on 8.1% decline in net sales to Rs 1451.10 crore in Q1 June 2013 over Q1 June 2012.

IL&FS Transportation Networks is one of the largest private sector road operators in India. The company is engaged in the development, operation, and maintenance of national and state highways, roads, flyovers and bridges primarily in India.

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