NESCO gains on bagging Rs 200-cr Hyderabad-Vishakhapatnam Expressway project

NESCO rose 1.24% to Rs 1,028 after the company announced that it has been declared the highest bidder by National Highways Logistics Management for the Hyderabad-Vishakhapatnam Expressway project, with a bid amounting to Rs 200 crore.

National Highways Logistics Management is a 100% owned special purpose vehicle (SPV) of the National Highways Authority of India (NHAI), operating under the Ministry of Road Transport and Highways.

The project involves the development, operation, and maintenance of wayside amenities along the Hyderabad-Vishakhapatnam Expressway in the Khammam-Devarapalle section. The amenities will be developed on a lease basis, with four sites included in the project.

The constructed amenities will be leased for 30 years, with the project expected to be completed within 10 months from the appointed date. The company will invest Rs 50 crore in the development of each of the four sites.

The company expects annual revenue of around Rs 300 crore starting from the fourth year of operations. Additionally, the yearly lease rent for the four sites is Rs 4.29 crore, with an annual increase based on changes in the wholesale price index (WPI) and consumer price index (CPI).

The official correspondence on allotment of this tender was received by the company on 11 December 2024.

NESCO is mainly engaged in licensing premises in IT park buildings and providing related services, licensing premises for exhibitions and providing services to the organisers, manufacturing of machines and capital equipment, and hospitality and catering services.

The companys consolidated net profit surged 33.8% to Rs 93.75 crore in Q2 FY25 as against Rs 70.08 crore posted in Q2 FY24. Revenue from operations jumped 24.5% to Rs 177.76 in the quarter ended 30 September 2024.

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