MEP Infra gains after its joint venture wins road project from road ministry | Business
29 April 2016
MEP Infrastructure Developers rose 2.96% to Rs 45.25 at 13:20 IST on BSE after the
company's joint venture received letter of acceptance from Ministry of Road Transport
& Highways for a road project.
The announcement was made during market hours today, 28 April 2016. Meanwhile, the
BSE Sensex was down 268.61 points, or 1.03%, to 25,795.51.
On BSE, so far 1.13 lakh shares were traded in the counter, compared with an average
volume of 83,863 shares in the past one quarter. The stock hit a high of Rs 46.40
and a low of Rs 44.85 so far during the day. The stock hit a record high of Rs 67
on 17 July 2015. The stock hit a record low of Rs 34.20 on 12 February 2016. The
stock had outperformed the market over the past one month till 27 April 2016, rising
13.27% compared with Sensex's 2.87% gains. The scrip had, however, underperformed
the market in past one quarter, rising 1.5% as against Sensex's 6.42% gains.
The small-cap company has an equity capital of Rs 162.57 crore. Face value per share
is Rs 10.
MEP Infrastructure Developers said that MEP Infrastructure Developers-Sanjose India
Infrastructure & Construction-joint venture (JV) has received letter of acceptance
(LOA) dated 27 April 2016 from MORTH (Ministry of Road Transport & Highways) for
a road project. The project is a rehabilitation and upgradation of NH 66, Kante-Waked
section to four lanes in Maharashtra under National Highways Development Project
(NHDP)-IV on hybrid annuity mode.
The construction period of the project is 2 years from the appointed date. The concession
period is 15 years excluding construction period of 2 years. The bid project cost
is Rs 826.28 crore and operation and maintenance bid is Rs 11.60 crore for the first
year. The joint venture will receive bi-annual annuity from MORTH post commercial
operation date. MEP Infrastructure Developers said that MEP Infrastructure Developers-Sanjose
India Infrastructure & Construction-joint venture hybrid annuity order book stands
at Rs 2589.26 crore to be executed over the next 3 years from the appointed date.
On a consolidated basis, MEP Infrastructure Developers reported net profit Rs 5.28
crore in Q3 December 2015 as against net loss of Rs 35 in Q3 December 2014. Net
sales declined 6% to Rs 497.28 crore in Q3 December 2015 over Q3 December 2014.
MEP Infrastructure Developers is among the leading players in tolling operations
in the road infrastructure sector. The company's focus is on pure toll collection
projects as well as OMT (Operation, Maintenance and Toll) collection projects, which
involve maintenance obligations in addition to toll collection on operational roads
including highways constructed by third parties.