Indian Hume Pipe jumps on receiving LoA for water supply schemes in UP

Indian Hume Pipe Company jumped 5.34% to Rs 194.35 after the company received letter of acceptance (LoA) for providing water supply schemes in 550 villages of Kanpur Division in Uttar Pradesh at an approximate value of Rs 550 crore.

In a regulatory filing, the company said that it had received letter of acceptance (LoA) from State Water & Sanitation Mission, Namami Gange & Rural Water Supply Department (SWSM), Lucknow, Government of Uttar Pradesh for providing water supply schemes in 550 villages of Kanpur Division in Uttar Pradesh at an approximate value of Rs 550 crore.

The total contract value of the work for 550 villages will be finalized and awarded after submission of detailed project report (DPR) by the company and approved by the state government.

The submission of DPR will be in tranches and need to be submitted within 180 days from the date of receipt of list of villages by the company from SWSM. Thereafter, the LoA will be issued for each scheme and multipartite agreement will be signed.

However, minimum work to the tune of Rs 400 crore is guaranteed as per tender condition, Indian Hume Pipe said in a statement.

The project is to be completed within 21 months from the date of signing of multipartite agreements and the operation & maintenance period is 10 years after completion of project. The initial agreement will be signed in due course, the company said.

Indian Hume Pipe Company is engaged in the business of construction and maintenance of projects relating to water supply, irrigation, sanitation and sewerage systems and pipe manufacturing.

The company's net profit declined by 67.3% to Rs 4.65 on a 23.1% fall in net sales to Rs 285.12 crore in Q2 FY21 over Q2 FY20.

In the past one month, the stock has added 21.58% while the benchmark S&P BSE Sensex has gained 6.16% during the same period.

Powered by Capital Market - Live News