Shares of rallied over 7% in afternoon trade to the day’s high of Rs 1,216.9 after its engineering, procurement & construction (EPC) segment bagged a Rs 3,32.65-crore order from the (PGCIL).
“The EPC business segment of the company has been awarded a supply of goods/services contract by PGCIL, a domestic entity, under the ‘Transmission line Tower Package TW04,” the company said in an exchange filing.
The project is associated with transmission network expansion in Gujarat and will be completed within 15 months from the issue date of notice of assessment/ letter of offer and acceptance.
“None of the promoter/promoter group/group companies have any interest in the entity that awarded the order/contract. Further, the order/contract would not fall within the purview of related party transaction,” added the filing.
Domestic brokerage house ICICI Direct is bullish on the company’s prospects and iterates that, “This order will further expand the order book of the company. Over the last three years, Bajaj Electricals has limited its exposure to EPC segment (as segment contribution to overall declined from 58% in FY19 to 22% in FY22) and is focusing towards executing high-margin business. This will help drive the EPC segment revenue of the company, going forward”.
The company’s order book for power transmission stood at Rs 714 crore while power distribution was at Rs 11 crore as of Q1FY23.
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