Power Mech Projects fell 6.54% to Rs 877.95 at 11:30 IST on BSE after cancellation of project worth Rs 512.78 crore in Andhra Pradesh.
Meanwhile, S&P BSE Sensex was down 141.81 points or 0.37% at 37,740.98.
On BSE, 2,199 shares were traded in Power Mech Projects counter, compared to a 2-week average of 2,905 shares. The stock hit an intraday high of Rs 939.05 and an intraday low of Rs 870. It hit a 52-week high of Rs 1,164.15 on 29 May 2019 and a 52-week low of Rs 775.35 on 8 October 2018.
The company announced after trading hours on Friday, 26 July 2019, that it received communication from State Project Director, Samagra Shiksha, Andhra Pradesh cancelling the order worth Rs 512.78 crore given to the company for providing necessary infrastructure facilities in all government schools on hybrid annuity mode. The order was cancelled on the ground that the project work was not commenced.
As the construction activity is not commenced, there is no implication on the financials of the company. The firm said that it was well positioned to capitalise on opportunities in the industry and will be able to increase its market share. At the same time, government reforms in the industry will help companies to continuously improve and perform better with lot of opportunities opening up going ahead. Considering healthy order book with execution momentum in all businesses, the firm is confident of further improving the current growth momentum in its revenues and profitability.
On a consolidated basis, Power Mech Projects' net profit rose 16.5% to Rs 28.41 crore on a 6.3% increase in net sales to Rs 491.22 crore in Q1 June 2019 over Q1 June 2018. The result was announced on Saturday, 27 July 2019.
Power Mech Projects is one among the leading infrastructure-construction companies based in Hyderabad, India with global presence and highly credited in providing spectrum of services in power and infrastructure sectors.
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