Skipper gains on bagging BSNL contract

Skipper rose 1.79% to Rs 142.45 after the company announced that it has secured fresh new order valuing Rs 2,570 crore from Bharat Sanchar Nigam (BSNL).

The contract has been awarded by BSNL for supply and erection of Ground Based Telecom Towers, Infrastructure as a Service Provider (IaaSP) for supply, installation of Infrastructure Items and subsequent O&M for 5 years, extendable to 5 more years, in the uncovered villages of India under 4G saturation projects.

The total contract value awarded to Skipper under these projects is approx. Rs 2,570 crore to be executed under capex and opex model over 5 years. The works are to be executed in the states of Rajasthan (Rs 1,350 crore) and Orissa (Rs 1,220 crore) and includes development of approx. Rs 3,350 tower location sites.

The telecom sites will be set up to provide 4G connectivity as part of the 4G saturation projects in still uncovered with any sort of mobile communication or are currently having only 2G/ 3G connectivity.

The project will be executed using the homegrown 4G Stack and will be funded through Government of India USOF (Universal Service Obligation Fund).

Sajan Kumar Bansal, managing director, Skipper said "We are glad that we are playing a crucial role and contributing our bit towards India's infrastructure development and proud to be part of government vision to provide mobile connectivity in rural areas. The project will promote the delivery of various e-governance services, banking services, telemedicine, tele education etc through mobile broadband and promote employment in rural areas."

"Our Company is the largest manufacturer of Telecom Tower in India, Backed by our forte in executing projects for the Telecom sector; this is another significant win for us. Our large engineering capacity to support captive manufacturing of telecom structures and decades of experience in building Tower sites on turnkey basis will vastly complement the execution of this prestigious project and will establish our company as a front runner in this domain."

He further added Going forward, the marketplace looks exciting and ripe with opportunities and the company has a positive outlook based on strong traction in domestic telecom on account of future 5G Rollout and a vibrant domestic & International T&D industry fuelled by a surge in renewables generation; As the global focus on renewables energy continues to grow, many countries will require new transmission lines to be built to cater to a new green energy network."

"We are well positioned to capture these opportunities and deliver continuous growth and value creation. A strong Engineering order book and strong tender pipeline in excess of Rs 10,000 Crores along with rebound in the Polymer market segment give us good visibility and confidence of achieving the desired growth and deliver up to your expectations."

Skipper is a leading manufacturer of power transmission & distribution structures and a prominent manufacturer of telecom and railway structures. It is also engaged in the Polymer pipe business. Under the brand name of 'Skipper', the company manufactures premium quality polymer pipes & fittings, which serve both the agricultural as well as plumbing sectors.

On a consolidated basis, net profit of Skipper declined 6.85% to Rs 2.99 crore on 3.61% decline in net sales to Rs 462.00 crore in Q2 September 2022 over Q2 September 2021.

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