Nelco gains after receiving payment from JNPT

Nelco rose 2.31% at Rs 57.65 at 14:43 IST on BSE after the company said it has received a sum of Rs 13.03 crore from Jawaharlal Nehru Port Trust in connection with a judgement dated 6 February 2014, by Bombay High Court.

The announcement was made during market hours today, 27 June 2014.

Meanwhile, the S&P BSE Sensex was up 51.06 points or 0.2% at 25,113.73.

On BSE, so far 12,000 shares were traded in the counter as against average daily volume of 29,551 shares in the past one quarter.

The stock hit a high of Rs 58 and a low of Rs 56.10 so far during the day. The stock had hit a 52-week high of Rs 60.90 on 10 June 2014. The stock had hit a 52-week low of Rs 27.50 on 31 July 2013.

The stock had outperformed the market over the past one month till 26 June 2014, jumping 16.43% compared with the Sensex's 1.4% rise. The scrip had also outperformed the market in past one quarter, spurting 56.09% as against Sensex's 13.43% rise.

The small-cap company has equity capital of Rs 22.82 crore. Face value per share is Rs 10.

Nelco had filed arbitration proceedings in the year 2006 against Jawaharlal Nehru Port Trust (JNPT) for enforcement of company's claims. The arbitration award was passed in favour of Nelco on 6 February 2012. The said award, however, was challenged by JNPT in Bombay High Court which dismissed the plea of JNPT on 6 February 2014 and awarded costs to the company. On demand for payment of said claims, JNPT has paid a sum of Rs 13.03 crore to Nelco as the decretal dues (including interest and costs), Nelco said.

Nelco reported a consolidated net loss of Rs 2.43 crore in Q2 March 2014, lower than net loss of Rs 3.59 crore in Q2 March 2013. Net sales rose 24.1% to Rs 34.97 crore in Q2 March 2014 over Q2 March 2013.

Nelco offers solutions in the areas of integrated security & surveillance, VSAT connectivity (Tatanet VSAT), managed services, satcom projects and meteorological solutions. The company offers a range of innovative and customized solutions for businesses and government institutions under one roof.

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