GPT Infra declared the lowest bidder for a Rs.204 crore project South Eastern Railway

GPT Infraprojects, based out of Kolkata, recently announced that it has landed a Rs.204 crore project from South Eastern Railway, Kolkata, after being declared the lowest bidder. The project involves constructing two crucial road overbridges (ROBs) in the Howrah-Kharagpur section, which should make travel a lot easier in these parts.

What’s in the Project?

The construction project awarded by CAO Construction includes building a three-lane ROB between Andul-Sankrail stations and a two-lane ROB between Nalpur-Bauria stations. These bridges will help reduce traffic jams and make commuting a smoother experience for everyone taking the road.

How’s the Company Doing?

GPT Infraprojects, the flagship of the GPT Group, is known for taking on big infrastructure projects, especially for the Railways. Along with concrete sleepers, which are used in India and Africa.

Financially, the company is holding up well. In Q1FY25, GPT Infraprojects saw a 12.6% bump in its consolidated net profit, bringing it to Rs.17.54 crore. Revenue from operations also inched up slightly to Rs.236.22 crore.

Just before announcing this project, the company’s Executive Director and CFO, Atul Tantia, shared that they had raised Rs.175 crore through a Qualified Institutional Placement (QIP). The fresh cash is expected to cut down the company’s debt from Rs.190 crore to Rs.50 crore, which should save them about Rs.15 crore in interest payments each year. Tantia also mentioned that they’re working towards making the promoter holding pledge-free by FY26, with some progress expected by the end of FY25.

Market News

Even with all this good news, GPT Infraprojects’ shares dipped slightly, closing 1.47% lower at Rs.177.10 on August 30, 2024, Friday. Still, the stock has had a solid run, gaining 112.15% this year,  and around 325% over the last one year, which shows that investors are pretty optimistic about where the company is headed.

Conclusion: GPT Infraprojects’ Rs.204 crore project win is a big deal for the company. The small dip in stock doesn’t overshadow the impressive gains this year. With their ongoing projects and reduced debt, GPT seems set to strengthen its position in the market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.