Salasar Techno Shares Surge 7% After Bagging Order; Details Here
Salasar Techno Engineering Ltd rose nearly 7 percent in early trade on Monday after the company said it had won an engineering, procurement and construction (EPC) order from India's Tamil Nadu. The company announced the move in an exchange filing on Friday.
Salasar Techno Engineering has signed an EPC contract worth Rs 364 crore with Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO). The agreement is aimed at reducing losses in the "protection" mode, he added.
The contract is a major milestone for Salasar Techno, which includes a comprehensive scope of work aimed at improving the electrical infrastructure of the Erode district in Tamil Nadu. "The aforementioned contract further strengthens the order book and is expected to be completed within 36 months, providing a good EBITDA margin," he said.
Shares of Salasar Techno Engineering rose 7 percent to Rs 55.01 after Monday's announcement, taking its total market capitalization to Rs 1,700 crore. It was priced at Rs 51.11 in the previous trading session on Friday. The stock rose more than 50 percent to Rs 36 from its 52-week low.
According to the contract, the company was tasked with the supply and installation of feeder switchgear, high voltage distribution system, disconnection of two-distribution transformers and connection of 33 kV lines (file below).
Commenting on the contract win, Salasar management said that the award of this contract reflects our unwavering commitment to winning complex projects, thereby expanding our scope and increasing profitability.
“The contract underscores our commitment to excellence and our ability to provide end-to-end solutions for complex electrical infrastructure initiatives. Our successful bid for these contracts further strengthens our position as a reliable and innovative partner in the development of reliable energy infrastructure in the region," he added.
Founded in 2006, Salasar Techno Engineering manufactures large and heavy steel structures and provides custom steel structures and 360-degree EPC solutions to a wide range of industries including Telecom, Power, Railways, etc.
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