Sattva Eng gains on securing Rs 125-cr water treatment plant contract from CMWSSB

Sattva Engineering Construction rose 2.09% to Rs 102.70 after the company has secured a significant contract from the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB).

The contract, valued at approximately Rs 125.34 crore, has been awarded under the design, build, operate and transfer (DBOT) model for the development of a 47 million litres per day (MLD) water treatment plant at Surapet, Chennai. The project includes a construction period of 21 months, followed by a 10-year operation and maintenance (O&M) commitment.

The total contract value comprises Rs 74.75 crore allocated for construction and Rs 50.59 crore for long-term O&M services. The contract is structured with performance securities, pricing as per Tamil Nadu Tender Rules, and provisions for price variation. No additional costs will be entertained for technical modifications, in line with tender conditions.

The project has been awarded by a domestic public entity, and there is no related party involvement, as confirmed by the company. Neither the promoter nor promoter group companies have any interest in CMWSSB, and the transaction does not qualify as a related party transaction.

This order win reinforces Sattva Engineering's growing presence in urban infrastructure and water management solutions. The company is expected to benefit from stable revenue over the next decade through the O&M phase of the project.

Sattva Engineering Construction is engaged in the business of providing water resource management solutions, which include Water Supply Schemes (WSS) with underground and overhead tanks, Underground Sewerage Systems (UGSS), Sewage Treatment Plants (STPs), and Water Treatment Plants (WTPs), primarily for government authorities and bodies.

The company recorded revenue from operations of Rs 93.65 crore and net profit of Rs 9.14 crore for the period ended 31 March 2025.

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