ITNL gains after Spanish unit wins road maintenance contract

IL&FS Transportation Networks rose 2.04% to Rs 125.25 at 10:37 IST on BSE after the company said its Spain-based subsidiary received a road maintenance contract in Ukraine worth approximately Rs 427 crore.

The announcement was made during trading hours today, 29 November 2013.

Meanwhile, the BSE Sensex was up 283.09 points, or 1.38%, to 20,818.

On BSE, 12,000 shares were traded in the counter compared with average volume of 33,348 shares in the past one quarter.

The stock hit a high of Rs 128 and a low of Rs 123 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 outperformed the market over the past one month till 28 November 2013, rising 16.90% compared with the Sensex's 0.17% fall. The scrip had, however, underperformed the market in past one quarter, rising 4.38% as against Sensex's 14.11% rise.

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

IL&FS Transportation Networks (ITNL) said that Elsamex SA, a wholly-owned subsidiary of the company in Spain, has received a contract by state road agency of Ukraine for rehabilitation and improvement of a road and for executing routine and periodic maintenance of the same over a period of seven years.

The estimated total contract value is 50.5 million euros (approximately Rs 427 crore), which is being financed by the European Bank for reconstruction and development, ITNL said in a statement.

In a separate announcement today, ITNL said that its wholly-owned subsidiary, ITNL International (IIPL), in Singapore entered into an agreement with three Chinese companies to establish an equity joint venture (JV) by the name of 'Chongqing Heng Yi Project Maintenance and Technology Consultancy' in which IIPL will hold 28% equity interest. The JV will provide road construction and maintenance services.

ITNL said that the JV partners believe that there is huge market for testing and inspection of roads, tunnels and bridges and other services related to operation and maintenance of expressways in China and other countries and hence wish to work together through a strategic alliance for providing specialised services in this field.

The alliance aims at utilising the experience of Elsamex SA, a wholly-owned subsidiary of ITNL in Spain, for over 25 years in operation and maintenance of expressways across Europe, ITNL said in a statement.

ITNL's consolidated net profit fell 4% to Rs 111.27 crore on 2.2% decline in net sales to Rs 1340.70 crore in Q2 September 2013 over Q2 September 2012.

ITNL 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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