JKumar Infra, NCC shares rise as JV wins Rs 6,301 crore order

Shares of NCC recouped losses while those of and JKumar Infra Projects (JKIL) climbed over 3 per cent in Friday's trade after a joint venture between the two companies received a contract worth Rs 6,301 crore. NCC holds 51 per cent stake in the JV while JKumar Infra held the rest. The share of works to be executed by NCC works out to Rs 3,213.55 crore approximately, the company said in a BSE filing.

Shares of NCC, which hit a low of Rs 146.10 earlier today, erased entire losses. It hit a high of Rs 151.85, up 3.94 per cent from day's low. It eventually closed the day at Rs 149.95, up 0.30 per cent.  The company recently received arbitration order in the Sembcorp dispute, which gave it a net award of Rs 200 crore. JM Financial noted that while the award amount was below the management's expectations of Rs 600-700 crore, it was nevertheless positive for the stock, as no cash inflow expectations were built-into the stock price.

In the case of JKumar Infra, the stock hit high of Rs 411.10, before closing the day at Rs 404.30, up 2.64 per cent. JKumar said its the total share in the contract stands at Rs 3,087.53 crore.

"The value of the contract awarded is Rs 6,301.08 Crores (net of GST) and in terms of the contract conditions the project will be executed by a Special Purpose Vehicle to be formed for this purpose,” NCC said.

The order was awarded by  Brihanmumbai Municipal Corporation (BMC) for designing, constructing and operating twin tunnel from Film City Goregaon to Khindipada (Amar nagar) Mulund. The work includes box tunnel at Film City, electrical, mechanical and associated works.

"The sharing ratio of the parties in the JV is NCC (51%) & JKIL (49%). The duration of the project is five years and O&M is for 10 years.

In the case of JKumar Infraprojects, the company management has retained its revenue guidance of 15 per cent growth for FY24, with EBITDA margin expectation of 14-15 per cent. The JKumar Infra management has revenue guidance of 18-20 per cent growth for FY25.

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