MEP Infra gains on winning toll collection rights in Tamil Nadu

MEP Infrastructure Developers rose 1.74% to Rs 41 at 15:11 IST on BSE after the company said it bagged toll collection rights in Tamil Nadu.

The announcement was made during trading hours today, 3 March 2016.

Meanwhile, the BSE Sensex was up 389.91 points, or 1.61%, to 24,632.89.

On BSE, so far 1.46 lakh shares were traded in the counter, compared with an average volume of 91,993 shares in the past one quarter. The stock hit a high of Rs 42.50 and a low of Rs 39.85 so far during the day. The stock hit a record high of Rs 67 on 17 July 2015. The stock hit a record low of Rs 34.20 on 12 February 2016. The stock had underperformed the market over the past one month till 2 March 2016, sliding 7.25% compared with 1.21% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 22.05% as against Sensex's 7.18% fall.

The small-cap company has an equity capital of Rs 162.57 crore. Face value per share is Rs 10.

MEP Infrastructure Developers said it received the Letter of Acceptance (LoA) dated 25 February 2016 from the National Highways Authority of India (NHAI) informing that MEP has been engaged as the contractor for user fee collection at Athur Toll Plaza on Tambaram to Tindivanam section of National Highway 45 in Tamil Nadu.

The company said it will commence operations from 26 March 2016 after complying statutory formalities. The period of contract is one year. The contractual amount for this project is Rs 72.36 crore payable to NHAI on a weekly basis over a period of one year, the company added.

On a consolidated basis, MEP Infrastructure Developers reported net profit Rs 5.28 crore in Q3 December 2015 as against net loss of Rs 35 in Q3 December 2014. Net sales declined 5.99% to Rs 497.28 crore in Q3 December 2015 over Q3 December 2014.

MEP Infrastructure Developers is among the leading players in tolling operations in the road infrastructure sector. The company's focus is on pure toll collection projects as well as OMT (Operation, Maintenance and Toll) collection projects, which involve maintenance obligations in addition to toll collection on operational roads including highways constructed by third parties.

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