Simplex Projects gains after getting nod for project in Libya

Simplex Projects hit an upper circuit limit of 5% to Rs 41.10 at 10:36 IST on BSE after the company said it received an approval for resumption of its stalled project in Libya.

The company made the announcement after market hours on Wednesday, 7 May 2014.

Meanwhile, the BSE Sensex was up 95.30 points, or 0.43%, to 22,419.20.

On BSE, so far 7,655 shares were traded in the counter, compared with an average volume of 10,332 shares in the past one quarter.

The stock was currently frozen at its 52-week high level. The stock hit a low of Rs 41 so far during the day. The stock hit a 52-week low of Rs 7.21 on 10 October 2013.

The stock had outperformed the market over the past one month till 7 May 2014, rising 104.44% compared with the Sensex's 0.09% fall. The scrip had also outperformed the market in past one quarter, soaring 225.44% as against Sensex's 9.56% rise.

The small-cap company has an equity capital of Rs 12.60 crore. Face value per share is Rs 10.

Simplex Projects said it received an approval from the Government of Libya for resumption of its project for construction of 2000 housing units, service buildings and related infrastructure at Ghira, Shabiyat of Ashati, Libya which was stalled due to political unrest in Libya since February 2011.

In view of the revised agreement the project is to be completed within a period of 900 days from the date of initial payment of outstanding dues, the company said.

On a consolidated basis, Simplex Projects reported net loss of Rs 0.42 crore in Q3 December 2013, higher than net loss of Rs 0.25 crore in Q3 December 2012. Net sales fell 7.4% to Rs 104.04 crore in Q3 December 2013 over Q3 December 2012.

Simplex Projects is a civil engineering and construction company.

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