Shares of Om Metals Infraprojects rallied 19 per cent in early deals on Thursday after the engineering construction company said it has secured a work order worth Rs 615.16 crore from Water Resources Department, Government of Rajasthan.
Boosted by the development, shares of the company surged as much as 19.16 per cent to touch an intra-day high of Rs 41.35 apiece on the BSE, after opening higher at Rs 37.10 against previous closing price of Rs 34.70.
In a similar trend, stocks of the hydro-mechanical engineering firm were trading at Rs 39.70, up 13.75 per cent on the National Stock Exchange.
"The company has got a letter of acceptance for the work of planning, design, drawings and construction of lsarda Dam across Banas River in Village-Banetha, District Tonk, Rajasthan on EPC basis including its operation and maintenance for 5 years," Om Metals Infraprojects said in a filing to the exchange.
Earlier in October this year, the company's road SPV project- Bhilwara Jaipur Toll Road (BJTR) has served a notice of termination on the concession agreement signed with the Rajasthan government due to material breach of the terms and conditions. Om metals has a 49 per cent stake in this SPV and has done the development of the 212 km road project in Jaipur-Bhilwara Stretch on BOT basis with a total project cost of Rs 410 crore.
The company reported net loss of Rs 0.23 crore during the quarter ended September 30, 2018 compared to net profit of Rs 16.25 crore in the same period last year.
The net sales of the company grew by 164.9 per cent year-on-year to Rs 70.60 crore in July-September quarter.
Meanwhile, the BSE Sensex was trading at 36,325.66, down 158.67 points, or by 0.43 per cent, amid lower Asian markets tracking a slump in their US peers after Federal Reserve raised interest rates again.
Edited by Chitranjan Kumar