Punj Lloyd gains as unit secures large contract in Hong Kong

The company made the announcement during trading hours today, 20 December 2012.

Meanwhile, the BSE Sensex was down 17.68 points or 0.09% at 19,458.32.

The stock rose on high volumes. On BSE, 9.05 lakh shares were traded in the counter as against average daily volume of 5.79 lakh shares in the past one quarter.

The stock hit a high of Rs 61 and a low of Rs 58.40 so far during the day. The stock had hit a 52-week high of Rs 65.90 on 22 February 2012. The stock had hit a record low of Rs 37.05 on 20 December 2011.

The stock had outperformed the market over the past one month till 19 December 2012, surging 17.98% compared with the Sensex's 6.2% rise. The scrip had also outperformed the market in past one quarter, jumping 13.56% as against Sensex's 5.3% gain.

The company has equity capital of Rs 66.42 crore. Face value per share is Rs 2.

Punj Lloyd said that the hill station project in Hong Kong will be executed by its subsidiary, Sembawang Engineers and Constructors Pte. (Sembawang), along with consortium partner -- Leader Civil Engineering Corporation. The hill station will provide an important interchange between the new Shatin to Central Link and the existing Diamond Hill Station servicing the Kwun Tong Line.

Commenting on the new order, Richard Grosvenor, President and CEO of Sembawang said, "We are delighted to win this project, which is a significant breakthrough for Sembawang in Hong Kong. With extensive experience in mass rapid transit work -- having executed extensive metro train stations and tracks (MRT & LRT) in Singapore, Sembawang has accomplished a significant position in building complex landmark structures with flawless engineering and technical proficiency".

Punj Lloyd said that the work on the Diamond Hill Station will start in the first quarter of 2013, in line with the commissioning of the first phase of the Shatin to Central Link. Construction of the Shatin to Central Link is part of Hong Kong's strategic infrastructure plan to develop a railway network to meet its fast-growing future transport needs, Punj Lloyd said in a statement.

Prior to this major win, Sembawang Engineers and Constructors won significant contracts in Singapore to construct the new Changi Prison Complex and the McNair Towers, a public-housing development of four residential blocks.

Sembawang Engineers and Constructors pte. (Sembawang) is one of the leading engineering, procurement and construction (EPC) groups in South-east Asia. Sembawang has a global presence, with offices in Malaysia, Indonesia, the Hong Kong SAR, the people's Republic of China, India, the United Arab Emirates, Bahrain and Australia.

Punj Lloyd reported consolidated net loss of Rs 17.92 crore in Q2 September 2012, compared with net profit of Rs 24.74 crore in Q2 September 2011. Net sales rose 14.8% to Rs 2728.06 crore in Q2 September 2012 over Q2 September 2011

The Punj Lloyd Group is a diversified international conglomerate offering EPC services in energy and infrastructure along with engineering and manufacturing capabilities in the defence sector. The second largest engineering company in India, Punj Lloyd has operations spread across 21 countries, a mix across the Middle East, Africa, the Caspian, Europe, Asia Pacific and South Asia.

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