Shares of Salasar Techno Engineering Ltd rose nearly 7 percent in early trading Monday after the engineering, procurement and construction (EPC) company said it had bagged a contract in the engineering, procurement and manufacturing sector in Tamil Nadu, India. The company shared the information in a stock market filing on Friday.
Salasar Techno Engineering has bagged an EPC contract worth Rs 364 crore from Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), the company said in a stock exchange filing. The contract relates to the implementation of mitigation work on a turnkey basis, according to the press release.
This agreement marks an important milestone for Salasar Techno, which includes a comprehensive work package to upgrade power infrastructure in Erode district, Tamil Nadu. "The above agreement further strengthens the order book and is expected to be completed within 36 months and generate a healthy EBITDA margin," he said.
Following the announcement, shares of Salasar Techno Engineering rose 7 per cent to Rs 55.01 on Monday, with a total market capitalization of around Rs 1.7 billion. The share price closed at Rs 51.11 in the previous trading session on Friday. The stock is up over 50 per cent from its 52-week low of Rs 36.
Under the terms of the contract, the company was contracted to supply and install power line insulation, high voltage distribution system, dual distribution transformer insulation and 33kV line extension, the prospectus said.
"The award of this contract reflects our strong commitment to winning integrated projects, thereby expanding the scope of our operations and increasing our profitability," said Salasa management when commenting on the receipt of the order.
“This agreement underscores our commitment to excellence and our ability to provide complete solutions for complex electricity infrastructure projects. The successful tender for these contracts strengthens our position as a reliable and innovative partner in the development of strong energy infrastructure. throughout the region," he added.
Established in 2006, Salasar Techno Engineering is engaged in manufacturing large and heavy steel structures and provides custom steel structures and 360 degree EPC solutions for various industries including telecom, power, railways, etc.
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