Patel Engineering Snaps Two-Day Losing Streak After June Quarter Results
The company’s consolidated revenue from operations declined marginally by over 1% to Rs 1,101.7 crore in the June quarter of FY25.
Patel Engineering Ltd. shares rallied more than 4% in morning trade on Friday, ending a two-day losing streak after Q1 results. Despite a drop in sales and operating profit, the company reported a double-digit growth in net profit in the first quarter of the current fiscal.
The company aims to focus more on the hydroelectric power segment for future growth.
Patel Engineering’s Managing Director, Kavita Shirvaikar, told NDTV Profit on Friday that the company is in the process of securing hydroelectric power projects worth nearly Rs 1.5 lakh crore.
“We now see a huge opportunity available in the sector that we operate in. Hydropower projects of around 38,000 megawatts are coming for bid in the near future which, in value terms, will be around Rs 1.5 lakh crore,” Shirvaikar told NDTV Profit.
Shirvaikar also said that while hydropower projects contribute 60–70% to Patel Engineering’s order book, irrigation and tunneling projects are expected to be major contributors too. “Considering our success ratio, we expect that in the next one year, we should be adding around Rs 10,000– Rs 15,000 crore in our order book,” Shirvaikar said.
Shares of Patel Engineering Ltd surged as much as 4.23% to hit an intraday high of Rs 53.3 apiece on the BSE on Friday. However, the stock pared some early gains to trade at Rs 51.72, up 1.15%, on the BSE at 10:38 a.m.
Patel Engineering announced its financial numbers for the June quarter of FY25 on August 13. The company’s consolidated revenue from operations declined marginally by over 1% to Rs 1,101.7 crore as compared to Rs 1,118.6 crore in the corresponding quarter of the preceding fiscal. Sequentially, the company’s revenue from operations also fell nearly 18% from Rs 1,343.2 crore in the March quarter of FY24.
The company’s consolidated profit-after-tax for the June quarter of FY25 increased 25.8% year-on-year to Rs 48.1 crore from Rs 38.2 crore in the year ago quarter.
Its earnings before interest, tax, depreciation and amortisation stood at Rs 168.65 crore in Q1, down 1.12%, compared to Rs 170.56 crore a year ago.
Sounding upbeat on the company's performance, Shirvaikar said, “We are pleased to report a stable and consistent start to the fiscal year, despite there being a subdued order inflow in the last FY 24 and Q1 FY25 due to elections and early monsoon at few project sites.”
